LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 2019

Financing Receivable, Modifications [Line Items]

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

The following represents loan modifications that qualify as TDRs that occurred for the periods indicated:



(In thousands, except number of contracts)	Number of Contracts		Pre-Modification Outstanding Recorded Investment				Post-Modification Outstanding Recorded Investment				Specific Reserve
(In thousands, except number of contracts)	2019	2018	2019		2018		2019		2018		2019		2018
For the three months ended
Residential real estate:
Interest rate and maturity concession	—	1	$	—	$	68	$	—	$	68	$	—	$	12
Payment deferral	—	1	—		166		—		166		—		45
Total	—	2	$	—	$	234	$	—	$	234	$	—	$	57
For the nine months ended
Residential real estate:
Interest rate and maturity concession	—	2	$	—	$	231	$	—	$	254	$	—	$	51
Payment deferral	—	1	—		166		—		166		—		45
Total	—	3	$	—	$	397	$	—	$	420	$	—	$	96

Composition of Loan Portfolio, Excluding Residential Loans Held for Sale

The composition of the Company’s loan portfolio, excluding residential loans held for sale, was as follows for the dates indicated:



(In thousands)	September 30, 2019		December 31, 2018
Residential real estate	$	1,061,898	$	992,866
Commercial real estate	1,255,519		1,269,533
Commercial	421,754		381,780
Home equity	323,564		327,763
Consumer	24,187		20,624
HPFC	23,712		33,656
Total loans	$	3,110,634	$	3,026,222

Schedule of Loan Balances by Portfolio Segment

The loan balances for each portfolio segment presented above are net of their respective unamortized fair value mark discount on acquired loans and net of unamortized loan origination costs for the dates indicated:



(In thousands)	September 30, 2019			December 31, 2018
Net unamortized fair value mark discount on acquired loans	$	2,887		$	3,936
Net unamortized loan origination costs	(2,936		)	(1,865		)
Total	$	(49	)	$	2,071

Summary of Activity in Allowance for Loan Losses

The following presents the activity in the ALL and select loan information by portfolio segment for the periods indicated:



(In thousands)	Residential Real Estate			Commercial Real Estate			Commercial			Home Equity			Consumer			HPFC			Total
For The Three and Nine Months Ended September 30, 2019
ALL for the three months ended:
Beginning balance	$	6,249		$	12,152		$	4,107		$	2,992		$	383		$	280		$	26,163
Loans charged off	(411		)	(92		)	(183		)	(348		)	(258		)	(11		)	(1,303		)
Recoveries	2			34			56			—			3			—			95
Provision (credit)⁽¹⁾	382			(18		)	124			132			145			(32		)	733
Ending balance	$	6,222		$	12,076		$	4,104		$	2,776		$	273		$	237		$	25,688
ALL for the nine months ended:
Beginning balance	$	6,071		$	11,654		$	3,620		$	2,796		$	234		$	337		$	24,712
Loans charged off	(436		)	(157		)	(636		)	(392		)	(278		)	(11		)	(1,910		)
Recoveries	6			41			167			—			14			—			228
Provision (credit)⁽¹⁾	581			538			953			372			303			(89		)	2,658
Ending balance	$	6,222		$	12,076		$	4,104		$	2,776		$	273		$	237		$	25,688
ALL balance attributable to loans:
Individually evaluated for impairment	$	337		$	29		$	303		$	69		$	—		$	—		$	738
Collectively evaluated for impairment	5,885			12,047			3,801			2,707			273			237			24,950
Total ending ALL	$	6,222		$	12,076		$	4,104		$	2,776		$	273		$	237		$	25,688
Loans:
Individually evaluated for impairment	$	3,880		$	406		$	646		$	585		$	—		$	—		$	5,517
Collectively evaluated for impairment	1,058,018			1,255,113			421,108			322,979			24,187			23,712			3,105,117
Total ending loans balance	$	1,061,898		$	1,255,519		$	421,754		$	323,564		$	24,187		$	23,712		$	3,110,634
For The Three and Nine Months Ended September 30, 2018
ALL for the three months ended:
Beginning balance	$	5,779		$	10,310		$	4,303		$	2,616		$	260		$	400		$	23,668
Loans charged off	(115		)	—			(150		)	(157		)	(28		)	(209		)	(659		)
Recoveries	37			4			117			—			3			1			162
Provision (credit)⁽¹⁾	59			268			(302		)	116			38			176			355
Ending balance	$	5,760		$	10,582		$	3,968		$	2,575		$	273		$	368		$	23,526
ALL for the nine months ended:
Beginning balance	$	5,086		$	11,863		$	4,171		$	2,367		$	233		$	451		$	24,171
Loans charged off	(231		)	(512		)	(448		)	(381		)	(70		)	(209		)	(1,851		)
Recoveries	52			19			237			44			8			1			361
Provision (credit)⁽¹⁾	853			(788		)	8			545			102			125			845
Ending balance	$	5,760		$	10,582		$	3,968		$	2,575		$	273		$	368		$	23,526
ALL balance attributable to loans:
Individually evaluated for impairment	$	619		$	23		$	—		$	114		$	—		$	—		$	756
Collectively evaluated for impairment	5,141			10,559			3,968			2,461			273			368			22,770
Total ending ALL	$	5,760		$	10,582		$	3,968		$	2,575		$	273		$	368		$	23,526
Loans:
Individually evaluated for impairment	$	5,184		$	5,007		$	1,548		$	373		$	—		$	—		$	12,112
Collectively evaluated for impairment	936,304			1,210,972			367,289			325,079			20,258			36,829			2,896,731
Total ending loans balance	$	941,488		$	1,215,979		$	368,837		$	325,452		$	20,258		$	36,829		$	2,908,843



(In thousands)	Residential Real Estate			Commercial Real Estate			Commercial			Home Equity			Consumer			HPFC			Total
For The Year Ended December 31, 2018
ALL:
Beginning balance	$	5,086		$	11,863		$	4,171		$	2,367		$	233		$	451		$	24,171
Loans charged off	(173		)	(512		)	(736		)	(476		)	(96		)	(255		)	(2,248		)
Recoveries	90			28			1,770			44			11			1			1,944
Provision (credit)⁽¹⁾	1,068			275			(1,585		)	861			86			140			845
Ending balance	$	6,071		$	11,654		$	3,620		$	2,796		$	234		$	337		$	24,712
ALL balance attributable to loans:
Individually evaluated for impairment	$	586		$	23		$	53		$	162		$	—		$	—		$	824
Collectively evaluated for impairment	5,485			11,631			3,567			2,634			234			337			23,888
Total ending ALL	$	6,071		$	11,654		$	3,620		$	2,796		$	234		$	337		$	24,712
Loans:
Individually evaluated for impairment	$	4,762		$	930		$	786		$	442		$	6		$	—		$	6,926
Collectively evaluated for impairment	988,104			1,268,603			380,994			327,321			20,618			33,656			3,019,296
Total ending loans balance	$	992,866		$	1,269,533		$	381,780		$	327,763		$	20,624		$	33,656		$	3,026,222

(1)

The provision (credit) for loan losses excludes any impact for the change in the reserve for unfunded commitments, which represents management's estimate of the amount required to reflect the probable inherent losses on outstanding letters of credit and unused lines of credit. The reserve for unfunded commitments is presented within accrued interest and other liabilities on the consolidated statements of condition. At September 30, 2019 and 2018, and December 31, 2018, the reserve for unfunded commitments was $11,000, $15,000 and $22,000, respectively.

Schedule of Provision for Credit Losses

The following reconciles the provision for loan losses to the provision for credit losses as presented on the consolidated statements of income for the periods indicated:



	Three Months Ended September 30,						Nine Months Ended September 30,						Year Ended December 31, 2018
(In thousands)	2019			2018			2019			2018			Year Ended December 31, 2018
Provision for loan losses	$	733		$	355		$	2,658		$	845		$	845
Change in reserve for unfunded commitments	(3		)	(1		)	(11		)	(5		)	2
Provision for credit losses	$	730		$	354		$	2,647		$	840		$	847

Credit Risk Exposure Indicators by Portfolio Segment

The following summarizes credit risk exposure indicators by portfolio segment as of the following dates:



(In thousands)	Residential Real Estate		Commercial Real Estate		Commercial		Home Equity		Consumer		HPFC		Total
September 30, 2019
Pass (Grades 1-6)	$	1,053,013	$	1,224,231	$	416,591	$	—	$	—	$	22,675	$	2,716,510
Performing	—		—		—		320,961		24,180		—		345,141
Special Mention (Grade 7)	477		17,047		2,591		—		—		90		20,205
Substandard (Grade 8)	8,408		14,241		2,572		—		—		947		26,168
Non-performing	—		—		—		2,603		7		—		2,610
Total	$	1,061,898	$	1,255,519	$	421,754	$	323,564	$	24,187	$	23,712	$	3,110,634
December 31, 2018
Pass (Grades 1-6)	$	983,086	$	1,247,190	$	374,429	$	—	$	—	$	32,261	$	2,636,966
Performing	—		—		—		325,917		20,595		—		346,512
Special Mention (Grade 7)	887		7,921		3,688		—		—		123		12,619
Substandard (Grade 8)	8,893		14,422		3,663		—		—		1,272		28,250
Non-performing	—		—		—		1,846		29		—		1,875
Total	$	992,866	$	1,269,533	$	381,780	$	327,763	$	20,624	$	33,656	$	3,026,222

Loan Aging Analysis by Portfolio Segment

The following is a loan aging analysis by portfolio segment (including loans past due over 90 days and non-accrual loans) and a summary of non-accrual loans, which include TDRs, and loans past due over 90 days and accruing as of the following dates:



(In thousands)	30-59 Days Past Due		60-89 Days Past Due		Greater than 90 Days		Total Past Due		Current		Total Loans Outstanding		Loans > 90 Days Past Due and Accruing		Non-Accrual Loans
September 30, 2019
Residential real estate	$	1,200	$	578	$	3,529	$	5,307	$	1,056,591	$	1,061,898	$	—	$	5,152
Commercial real estate	637		1,606		704		2,947		1,252,572		1,255,519		—		1,156
Commercial	280		855		735		1,870		419,884		421,754		—		751
Home equity	917		86		2,004		3,007		320,557		323,564		—		2,609
Consumer	65		19		6		90		24,097		24,187		—		7
HPFC	30		163		370		563		23,149		23,712		—		450
Total	$	3,129	$	3,307	$	7,348	$	13,784	$	3,096,850	$	3,110,634	$	—	$	10,125
December 31, 2018
Residential real estate	$	3,300	$	2,046	$	4,520	$	9,866	$	983,000	$	992,866	$	—	$	5,492
Commercial real estate	1,794		369		1,108		3,271		1,266,262		1,269,533		—		1,380
Commercial	150		19		799		968		380,812		381,780		—		1,279
Home equity	907		607		1,476		2,990		324,773		327,763		—		1,846
Consumer	67		15		29		111		20,513		20,624		14		15
HPFC	—		183		423		606		33,050		33,656		—		518
Total	$	6,218	$	3,239	$	8,355	$	17,812	$	3,008,410	$	3,026,222	$	14	$	10,530

Troubled Debt Restructuring and Specific Reserve Related to TDRs

The following is a summary of TDRs, by portfolio segment, and the associated specific reserve included within the ALL as of the dates indicated:



	Number of Contracts		Recorded Investment				Specific Reserve
(In thousands, except number of contracts)	September 30, 2019	December 31, 2018	September 30, 2019		December 31, 2018		September 30, 2019		December 31, 2018
Residential real estate	21	25	$	3,095	$	3,614	$	337	$	443
Commercial real estate	2	2	341		347		29		23
Commercial	2	2	128		141		—		—
Home equity	1	2	299		304		69		162
Total	26	31	$	3,863	$	4,406	$	435	$	628

Summary of Impaired Loan Balances and Associated Allowance by Portfolio Segment

The following is a summary of impaired loan balances and the associated allowance by portfolio segment as of and for the periods indicated:



							For the Three Months Ended				For the Nine Months Ended
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
September 30, 2019:
With an allowance recorded:
Residential real estate	$	2,337	$	2,337	$	337	$	3,026	$	28	$	3,137	$	84
Commercial real estate	130		130		29		130		3		130		9
Commercial	442		442		303		301		—		365		—
Home equity	318		318		69		658		—		573		—
Consumer	—		—		—		—		—		—		—
HPFC	—		—		—		—		—		—		—
Ending balance	3,227		3,227		738		4,115		31		4,205		93
Without an allowance recorded:
Residential real estate	1,543		2,007		—		1,337		11		1,325		28
Commercial real estate	276		435		—		278		3		408		10
Commercial	204		267		—		214		1		218		5
Home equity	267		705		—		131		—		130		—
Consumer	—		—		—		—		—		—		—
HPFC	—		—		—		—		—		—		—
Ending balance	2,290		3,414		—		1,960		15		2,081		43
Total impaired loans	$	5,517	$	6,641	$	738	$	6,075	$	46	$	6,286	$	136
September 30, 2018:
With an allowance recorded:
Residential real estate	$	3,577	$	3,577	$	619	$	3,541	$	27	$	2,428	$	96
Commercial real estate	349		349		23		350		6		2,428		17
Commercial	—		—		—		—		—		—		—
Home equity	318		318		114		391		—		232		—
Consumer	—		—		—		—		—		—		—
HPFC	—		—		—		—		—		—		—
Ending Balance	4,244		4,244		756		4,282		33		5,088		113
Without an allowance recorded:
Residential real estate	1,607		1,807		—		1,750		13		1,582		27
Commercial real estate	4,658		4,944		—		4,700		—		2,637		—
Commercial	1,548		2,725		—		1,580		2		1,666		6
Home equity	55		206		—		39		—		213		—
Consumer	—		—		—		—		—		—		—
HPFC	—		—		—		—		—		—		—
Ending Balance	7,868		9,682		—		8,069		15		6,098		33
Total impaired loans	$	12,112	$	13,926	$	756	$	12,351	$	48	$	11,186	$	146



							For the Year Ended
(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment		Interest Income Recognized
December 31, 2018:
With an allowance recorded:
Residential real estate	$	3,471	$	3,471	$	586	$	3,591	$	127
Commercial real estate	131		131		23		1,969		11
Commercial	556		556		53		111		—
Home equity	318		318		162		250		—
Consumer	—		—		—		—		—
HPFC	—		—		—		—		—
Ending Balance	4,476		4,476		824		5,921		138
Without an allowance recorded:
Residential real estate	1,291		1,415		—		1,524		34
Commercial real estate	799		975		—		2,269		13
Commercial	230		293		—		1,379		8
Home equity	124		305		—		195		—
Consumer	6		13		—		1		—
HPFC	—		—		—		—		—
Ending Balance	2,450		3,001		—		5,368		55
Total impaired loans	$	6,926	$	7,477	$	824	$	11,289	$	193