XML 37 R26.htm IDEA: XBRL DOCUMENT v3.20.1
Allowance for Loan and Lease Losses (Tables)
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
Schedule of originated and acquired loan and lease losses by portfolio segment Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
 
Three Months Ended March 31, 2020
 
 
 
 
 
 
 
 
(In thousands)
Commercial
and Industrial

 
Commercial
Real Estate

 
Residential
Real Estate

 
Consumer
and Other

 
Finance
Leases

 
Total

Allowance for credit losses:
Beginning balance, prior to adoption of ASC 326
$
10,541

 
$
21,608

 
$
6,381

 
$
1,362

 
$
0

 
$
39,892

Impact of adopting ASC 326
(2,008
)
 
(5,917
)
 
4,459

 
850

 
82

 
(2,534
)
Charge-offs
(1
)
 
(1,290
)
 
(2
)
 
(137
)
 
0

 
(1,430
)
Recoveries
16

 
18

 
79

 
69

 
0

 
182

Provision for credit loss expense
3,117

 
8,027

 
5,413

 
(261
)
 
(2
)
 
16,294

Ending Balance
$
11,665

 
$
22,446

 
$
16,330

 
$
1,883

 
$
80

 
$
52,404

 

Three Months Ended March 31, 2019
 
 
 
 
 
 
 
 
(In thousands)
Commercial
and Industrial

 
Commercial
Real Estate

 
Residential
Real Estate

 
Consumer
and Other

 
Finance
Leases

 
Total

Allowance for credit losses
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
11,272

 
$
23,483

 
$
7,345

 
$
1,310

 
$
0

 
43,410

 
 
 
 
 
 
 
 
 
 
 
 
Charge-offs
(380
)
 
(3,343
)
 
(18
)
 
(180
)
 
0

 
(3,921
)
Recoveries
59

 
7

 
233

 
95

 
0

 
394

Provision (credit)
572

 
923

 
(1,098
)
 
48

 
0

 
445

Ending Balance
$
11,523

 
$
21,070

 
$
6,462

 
$
1,273

 
$
0

 
$
40,328

 
 The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related allowance for credit losses allocated to these loans:

(In thousands)
Real Estate
Business Assets
Other
Total
ACL Allocation
March 31, 2020
 
 
 
 
 
Commercial and Industrial
$
0

$
631

$
93

$
724

$
131

Commercial Real Estate
7,705

0

60

7,765

225

Commercial Real Estate - Agriculture
1,559

0

0

1,559

0

Residential - Mortgages
46

0

0

46

0

Total
$
9,310

$
631

$
153

$
10,094

$
356
Schedule of the allowance for loan and lease losses based on impairment methodology
The following table presents information pertaining to the allocation of the allowance for loan and lease losses as of December 31, 2019, as determined in accordance with ASC 310, prior to the adoption of ASU 2016-13: 
(In thousands)
Commercial
and Industrial

 
Commercial
Real Estate

 
Residential
Real Estate

 
Consumer
and Other

 
Finance Leases

 
Total

Allowance for originated loans and leases
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
245

 
$
662

 
$
0

 
$
0

 
$
0

 
$
907

Collectively evaluated for impairment
10,296

 
20,895

 
6,360

 
1,356

 
0

 
38,907

Ending balance
$
10,541

 
$
21,557

 
$
6,360

 
$
1,356

 
$
0

 
$
39,814


(In thousands)
Commercial
and Industrial

 
Commercial
Real Estate

 
Residential
Real Estate

 
Consumer
and Other

 
Finance
Leases

 
Total

Allowance for acquired loans
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Collectively evaluated for impairment
$
0

 
$
51

 
$
21

 
$
6

 
$
0

 
$
78

Ending balance
$
0

 
$
51

 
$
21

 
$
6

 
$
0

 
$
78
Schedule of recorded investment in loans and leases impairment methodology
The recorded investment in loans and leases summarized on the basis of the Company’s impairment methodology as of December 31, 2019 was as follows:

(In thousands)
Commercial
and Industrial

 
Commercial
Real Estate

 
Residential
Real Estate

 
Consumer 
and Other

 
Finance Leases

 
Total

Originated loans and leases
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
2,110

 
$
13,496

 
$
3,779

 
$
0

 
$
0

 
$
19,385

Collectively evaluated for impairment
966,875

 
2,283,152

 
1,340,687

 
73,625

 
17,322

 
4,681,661

Total
$
968,985

 
$
2,296,648

 
$
1,344,466

 
$
73,625

 
$
17,322

 
$
4,701,046

 
(In thousands)
Commercial
and Industrial

 
Commercial
Real Estate

 
Residential
Real Estate

 
Consumer 
and Other

 
Finance
Leases

 
Total

Acquired loans
 
 
 
 
 
 
 
 
 
 
 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
2

 
$
714

 
$
2,114

 
$
0

 
$
0

 
$
2,830

Loans acquired with deteriorated credit quality
173

 
5,674

 
3,302

 
0

 
0

 
9,149

Collectively evaluated for impairment
38,901

 
140,529

 
27,955

 
785

 
0

 
208,170

Total
$
39,076

 
$
146,917

 
$
33,371

 
$
785

 
$
0

 
$
220,149
Schedule of average recorded investment and interest income on impaired loans
Impaired loans at December 31, 2019 were as follows:
 
 
December 31, 2019
(In thousands)
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
Originated loans and leases with no related allowance
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
Commercial and industrial other
$
1,865

 
$
1,965

 
$
0

Commercial real estate
 
 
 
 
 
Commercial real estate other
10,205

 
11,017

 
0

Residential real estate
 
 
 
 
 
Home equity
3,779

 
3,992

 
0

Subtotal
$
15,849

 
$
16,974

 
$
0

Originated loans and leases with related allowance
Commercial and industrial
 
 
 
 
 
Commercial and industrial other
245

 
245

 
245

Commercial real estate
 
 
 
 
 
Commercial real estate other
3,291

 
3,291

 
662

Subtotal
$
3,536

 
$
3,536

 
$
907

Total
$
19,385

 
$
20,510

 
$
907

 
 
December 31, 2019
(In thousands)
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
Acquired loans with no related allowance
 
 
 
 
 
 
Commercial and industrial
 
 
 
 
 
Commercial and industrial other
$
2

 
$
2

 
$
0

Commercial real estate
 
 
 
 
 
Commercial real estate other
714

 
714

 
0

Residential real estate
 
 
 
 
 
Home equity
2,114

 
2,217

 
0

Total
$
2,830

 
$
2,933

 
$
0



The following table presents average impaired loans, as determined in accordance with ASC 310, prior to the adoption of ASU 2016-13, and interest recognized on such loans, for the three months ended March 31, 2019:
 
 
Three Months Ended March 31, 2019
(In thousands)
Average Recorded Investment
 
Interest Income Recognized
Originated loans and leases with no related allowance
 
 
 
Commercial and industrial
 
 
 
Commercial and industrial other
$
1,468

 
$
0

Commercial real estate
 
 
 
Commercial real estate other
6,099

 
0

Residential real estate
 
 
 
Home equity
3,981

 
0

Subtotal
$
11,548

 
$
0

 
 
 
 
Originated loans and leases with related allowance
 
 
 
Commercial and industrial
 
 
 
Commercial and industrial other
581

 
0

Commercial real estate
 
 
 
Commercial real estate other
445

 
0

Subtotal
$
1,026

 
$
0

Total
$
12,574

 
$
0


 
Three Months Ended March 31, 2019
(In thousands)
Average Recorded Investment
 
Interest Income Recognized
Acquired loans and leases with no related allowance
 
 
 
 
 
 
 
Commercial and industrial
 
 
 
Commercial and industrial other
$
22

 
$
0

Commercial real estate
 
 
 
Commercial real estate other
855

 
0

Residential real estate
 
 
 
Home equity
2,577

 
0

Subtotal
$
3,454

 
$
0

Total
$
3,454

 
$
0
Schedule of recorded investments in impaired loans
The following tables present information on loans modified in troubled debt restructuring during the periods indicated and their balances immediately prior to the modification date and post-modification as of March 31, 2020 and 2019.

March 31, 2020
Three Months Ended
 
 
 
 
 
 
 
Defaulted TDRs2
(In thousands)
Number of Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
 
Number of Loans
 
Post-Modification Outstanding Recorded Investment
Commercial real estate
 
 
 
 
 
 
 
 
 
Commercial real estate other1
0

 
$
0

 
$
0

 
1

 
$
37

Residential real estate
 
 
 
 
 
 
 
 
 
Home equity1
2

 
121

 
121

 
1

 
87

Total
2

 
$
121

 
$
121

 
2

 
$
124

1 Represents the following concessions:  extension of term and reduction of rate.
2 TDRs that defaulted during the three months ended March 31, 2020 that were restructured in the prior twelve months.
 
March 31, 2019
Three Months Ended
 
 
 
 
 
 
 
Defaulted TDRs2
(In thousands)
Number of Loans
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
 
Number of Loans
 
Post-Modification Outstanding Recorded Investment
Residential real estate


 


 


 


 


Home equity1
1

 
$
168

 
$
168

 
0

 
$
0

Total
1

 
$
168

 
$
168

 
0

 
$
0


1 Represents the following concessions:  extension of term and reduction of rate.
2 TDRs that defaulted during the three months ended March 31, 2019 that had been restructured in the prior twelve months.
Schedule of credit quality indicators on loans by class of commercial and industrial loans and commercial real estate loans
The following tables present credit quality indicators (internal risk grade) by class of commercial and industrial loans and commercial real estate loans as of December 31, 2019.
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial Other
 
Commercial and Industrial Agriculture
 
Commercial Real Estate Other
 
Commercial Real Estate Agriculture
 
Commercial Real Estate Construction
 
Total
Originated Loans and Leases
Internal risk grade:
 
 
 
 
 
 
 
 
 
 
 
Pass
$
851,517

 
$
89,892

 
$
1,857,142

 
$
166,888

 
$
212,302

 
$
3,177,741

Special Mention
8,306

 
1,698

 
16,623

 
3,173

 
0

 
29,800

Substandard
3,376

 
14,196

 
25,880

 
14,640

 
0

 
58,092

Total
$
863,199

 
$
105,786

 
$
1,899,645

 
$
184,701

 
$
212,302

 
$
3,265,633

 
December 31, 2019
 
 
 
 
 
 
 
 
 
 
 
(In thousands)
Commercial and Industrial Other
 
Commercial and Industrial Agriculture
 
Commercial Real Estate Other
 
Commercial Real Estate Agriculture
 
Commercial Real Estate Construction
 
Total
Acquired Loans and Leases
Internal risk grade:
 
 
 
 
 
 
 
 
 
 
 
Pass
$
38,879

 
$
0

 
$
143,175

 
$
197

 
$
1,335

 
$
183,586

Special Mention
0

 
0

 
0

 
0

 
0

 
0

Substandard
197

 
0

 
2,210

 
0

 
0

 
2,407

Total
$
39,076

 
$
0

 
$
145,385

 
$
197

 
$
1,335

 
$
185,993


The following table presents credit quality indicators by total loans amortized cost basis by origination year as of March 31, 2020.

(In thousands)
2020
2019
2018
2017
2016
Prior
Revolving Loans Amortized Cost Basis
Revolving Loans Converted to Term
Total Loans
 
 
 
 
 
 
 
 
 
 
Commercial and Industrial - Other:
 
 
 
 
 
 
Internal risk grade:
 
 
 
 
 
 
 
 
 
Pass
$
42,295

$
83,851

$
71,313

$
88,343

$
46,007

$
283,285

$
260,678

$
655

$
876,427

Special Mention
0

104

263

1,178

2,821

136

540

0

5,042

Substandard
0

112

1,240

286

626

866

3,244

0

6,374

Total Commercial and Industrial - Other
$
42,295

$
84,067

$
72,816

$
89,807

$
49,454

$
284,286

$
264,462

$
655

$
887,843

 
 
 
 
 
 
 
 
 
 
Commercial and Industrial - Agriculture:
 
 
 
 
 
 
Internal risk grade:
 
 
 
 
 
 
 
 
 
Pass
$
1,520

$
13,214

$
14,996

$
8,135

$
5,170

$
2,395

$
38,484

$
0

$
83,914

Special Mention
0

80

127

109

0

0

435

0

751

Substandard
100

107

3

894

35

2,310

7,271

0

10,720

Total Commercial and Industrial - Agriculture
$
1,620

$
13,401

$
15,126

$
9,138

$
5,205

$
4,705

$
46,190

$
0

$
95,385

 
 
 
 
 
 
 
 
 
 
Commercial Real Estate
 
 
 
 
 
 
Internal risk grade:
 
 
 
 
 
 
 
 
 
Pass
$
99,145

$
247,630

$
239,644

$
258,039

$
340,595

$
505,182

$
381,049

$
2,752

$
2,074,036

Special Mention
0

0

2,728

2,400

5,503

9,253

3,048

0

22,932

Substandard
0

1,700

764

3,334

349

9,717

8,107

0

23,971

Total Commercial Real Estate
$
99,145

$
249,330

$
243,136

$
263,773

$
346,447

$
524,152

$
392,204

$
2,752

$
2,120,939

 
 
 
 
 
 
 
 
 
 
Commercial Real Estate - Agriculture:
 
 
 
 
 
 
Internal risk grade:
 
 
 
 
 
 
 
 
 
Pass
$
2,028

$
30,493

$
42,366

$
23,728

$
14,147

$
39,835

$
16,842

$
448

$
169,887

Special Mention
1,510

0

2,418

120

1,264

361

11

0

5,684

Substandard
0

1,618

558

3,169

4,356

912

877

0

11,490

Total Commercial Real Estate - Agriculture
$
3,538

$
32,111

$
45,342

$
27,017

$
19,767

$
41,108

$
17,730

$
448

$
187,061

 
 
 
 
 
 
 
 
 
 
Commercial Real Estate - Construction
 
 
 
 
 
 
Internal risk grade:
 
 
 
 
 
 
 
 
 
Pass
$
1,194

$
22,565

$
9,552

$
3,011

$
2,165

$
4,169

$
121,760

$
983

$
165,399

Special Mention
0

0

0

0

0

603

2,109

0

2,712

Substandard
0

0

0

0

0

339

0

0

339

Total Commercial Real Estate - Construction
$
1,194

$
22,565

$
9,552

$
3,011

$
2,165

$
5,111

$
123,869

$
983

$
168,450


The following table presents credit quality indicators by total loans amortized cost basis by origination year as of March 31, 2020, continued.
(In thousands)
2020
2019
2018
2017
2016
Prior
Revolving Loans Amortized Cost Basis
Revolving Loans Converted to Term
Total Loans
 
 
 
 
 
 
 
 
 
 
Residential - Home Equity
 
 
 
 
 
 
 
 
 
Performing
$
3,948

$
28,694

$
23,181

$
25,332

$
21,014

$
40,444

$
70,006

$
406

$
213,025

Nonperforming
0

19

67

0

0

528

2,101

0

2,715

Total Residential - Home Equity
$
3,948

$
28,713

$
23,248

$
25,332

$
21,014

$
40,972

$
72,107

$
406

$
215,740

 
 
 
 
 
 
 
 
 
 
Residential - Mortgages
 
 
 
 
 
 
 
 
 
Performing
$
56,373

$
205,326

$
146,568

$
191,872

$
207,389

$
159,262

$
200,151

$
204

$
1,167,145

Nonperforming
0

266

406

453

1,291

2,385

4,027

0

8,828

Total Residential - Mortgages
$
56,373

$
205,592

$
146,974

$
192,325

$
208,680

$
161,647

$
204,178

$
204

$
1,175,973

 
 
 
 
 
 
 
 
 
 
Consumer - Direct
 
 
 
 
 
 
 
 
 
Performing
$
4,186

$
16,392

$
10,746

$
9,326

$
4,812

$
11,230

$
4,350

$
0

$
61,042

Nonperforming
0

47

44

10

0

18

0

0

119

Total Consumer - Direct
$
4,186

$
16,439

$
10,790

$
9,336

$
4,812

$
11,248

$
4,350

$
0

$
61,161

 
 
 
 
 
 
 
 
 
 
Consumer - Indirect
 
 
 
 
 
 
 
 
 
Performing
$
616

$
2,904

$
4,886

$
2,001

$
895

$
422

$
0

$
0

$
11,724

Nonperforming
0

57

25

6

39

20

0

0

147

Total Consumer Indirect
$
616

$
2,961

$
4,911

$
2,007

$
934

$
442

$
0

$
0

$
11,871
Schedule of credit quality indicators by class of residential real estate and consumer loans
The following tables present credit quality indicators by class of residential real estate loans and by class of consumer loans. Nonperforming loans include nonaccrual, impaired, and loans 90 days past due and accruing interest. All other loans are considered performing as of December 31, 2019. For purposes of this footnote, acquired loans that were recorded at fair value at the acquisition date and are 90 days or greater past due are considered performing.

December 31, 2019
(In thousands)
Residential
Home Equity
 
Residential
Mortgages
 
Consumer
Indirect
 
Consumer
Other
 
Total
Originated Loans and Leases
 
 
 
 
 
 
 
 
 
Performing
$
201,970

 
$
1,133,237

 
$
12,847

 
$
60,503

 
$
1,408,557

Nonperforming
1,924

 
7,335

 
117

 
158

 
9,534

Total
$
203,894

 
$
1,140,572

 
$
12,964

 
$
60,661

 
$
1,418,091

 
December 31, 2019
(In thousands)
Residential
Home Equity
 
Residential
Mortgages
 
Consumer
Indirect
 
Consumer
Other
 
Total
Acquired Loans and Leases
 
 
 
 
 
 
 
 
 
Performing
$
14,479

 
$
17,269

 
$
0

 
$
785

 
$
32,533

Nonperforming
872

 
751

 
0

 
0

 
1,623

Total
$
15,351

 
$
18,020

 
$
0

 
$
785

 
$
34,156