LOANS | 9 Months Ended |
Sep. 30, 2014 |
LOANS | ' |
LOANS | ' |
NOTE 5. LOANS |
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The Company’s loan portfolio is segregated into the following segments: residential mortgage, commercial real estate, commercial and industrial, and consumer. Residential mortgage loans include classes for 1- 4 family owner occupied and construction loans. Commercial real estate loans include construction, single and multi-family, and other commercial real estate classes. Commercial and industrial loans include asset based lending loans, lease financing and other commercial business loan classes. Consumer loans include home equity, direct and indirect auto and other. These portfolio segments each have unique risk characteristics that are considered when determining the appropriate level for the allowance for loan losses. |
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A substantial portion of the loan portfolio is secured by real estate in western Massachusetts, southern Vermont, northeastern New York, and in the Bank’s other New England lending areas. The ability of many of the Bank’s borrowers to honor their contracts is dependent, among other things, on the specific economy and real estate markets of these areas. |
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Total loans include business activity loans and acquired loans. Acquired loans are those loans acquired from the acquisitions of the 20 acquired branches, Beacon Federal Bancorp, Inc., The Connecticut Bank and Trust Company, Legacy Bancorp, Inc., and Rome Bancorp, Inc. The following is a summary of total loans: |
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| | September 30, 2014 | | December 31, 2013 | | | | |
(In thousands) | | Business | | Acquired | | Total | | Business | | Acquired | | Total | | | | |
Activities Loans | Loans | Activities Loans | Loans | | | |
| | | | | | | | | | | | | | | | |
Residential mortgages: | | | | | | | | | | | | | | | | |
1-4 family | | $ | 1,136,351 | | $ | 284,966 | | $ | 1,421,317 | | $ | 1,027,737 | | $ | 333,367 | | $ | 1,361,104 | | | | |
Construction | | 23,512 | | 1,032 | | 24,544 | | 18,158 | | 5,012 | | 23,170 | | | | |
Total residential mortgages | | 1,159,863 | | 285,998 | | 1,445,861 | | 1,045,895 | | 338,379 | | 1,384,274 | | | | |
| | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | |
Construction | | 152,060 | | 6,601 | | 158,661 | | 125,247 | | 13,770 | | 139,017 | | | | |
Single and multi-family | | 122,239 | | 58,143 | | 180,382 | | 63,493 | | 64,827 | | 128,320 | | | | |
Other commercial real estate | | 1,032,612 | | 223,745 | | 1,256,357 | | 871,271 | | 278,512 | | 1,149,783 | | | | |
Total commercial real estate | | 1,306,911 | | 288,489 | | 1,595,400 | | 1,060,011 | | 357,109 | | 1,417,120 | | | | |
| | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | |
Asset based lending | | 341,584 | | — | | 341,584 | | 294,241 | | 3,130 | | 297,371 | | | | |
Other commercial and industrial loans | | 338,454 | | 52,922 | | 391,376 | | 323,196 | | 66,726 | | 389,922 | | | | |
Total commercial and industrial loans | | 680,038 | | 52,922 | | 732,960 | | 617,437 | | 69,856 | | 687,293 | | | | |
| | | | | | | | | | | | | | | | |
Total commercial loans | | 1,986,949 | | 341,411 | | 2,328,360 | | 1,677,448 | | 426,965 | | 2,104,413 | | | | |
| | | | | | | | | | | | | | | | |
Consumer loans: | | | | | | | | | | | | | | | | |
Home equity | | 248,500 | | 67,593 | | 316,093 | | 232,677 | | 74,154 | | 306,831 | | | | |
Auto and other | | 338,436 | | 124,032 | | 462,468 | | 213,171 | | 171,834 | | 385,005 | | | | |
Total consumer loans | | 586,936 | | 191,625 | | 778,561 | | 445,848 | | 245,988 | | 691,836 | | | | |
| | | | | | | | | | | | | | | | |
Total loans | | $ | 3,733,748 | | $ | 819,034 | | $ | 4,552,782 | | $ | 3,169,191 | | $ | 1,011,332 | | $ | 4,180,523 | | | | |
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The carrying amount of the acquired loans at September 30, 2014 totaled $819 million. These loans consisted of loans determined to be impaired at the time of acquisition, which are accounted for in accordance with ASC Topic 310-30, with a carrying amount of $19 million (and a note balance of $34 million) and loans that were considered not impaired at the acquisition date with a carrying amount of $800 million. |
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The following table summarizes activity in the accretable yield for the acquired loan portfolio that falls under the purview of ASC 310-30, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. |
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| | Three Months Ended September 30, | | | | | | | | | | | | | | | | |
(In thousands) | | 2014 | | 2013 | | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | 2,440 | | $ | 3,328 | | | | | | | | | | | | | | | | |
Sales | | — | | — | | | | | | | | | | | | | | | | |
Change in accretable difference based on re-estimation of cash flows | | 1,214 | | 2,125 | | | | | | | | | | | | | | | | |
Accretion | | (458 | ) | (1,547 | ) | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 3,196 | | $ | 3,906 | | | | | | | | | | | | | | | | |
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| | Nine months ended September 30, | | | | | | | | | | | | | | | | |
(In thousands) | | 2014 | | 2013 | | | | | | | | | | | | | | | | |
Balance at beginning of period | | $ | 2,559 | | $ | 8,247 | | | | | | | | | | | | | | | | |
Acquisitions | | — | | — | | | | | | | | | | | | | | | | |
Sales | | — | | (301 | ) | | | | | | | | | | | | | | | |
Change in accretable difference based on re-estimation of cash flows | | 2,644 | | 2,125 | | | | | | | | | | | | | | | | |
Accretion | | (2,007 | ) | (6,165 | ) | | | | | | | | | | | | | | | |
Balance at end of period | | $ | 3,196 | | $ | 3,906 | | | | | | | | | | | | | | | | |
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The following is a summary of past due loans at September 30, 2014 and December 31, 2013: |
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Business Activities Loans |
|
(in thousands) | | 30-59 Days | | 60-89 Days | | Greater | | Total Past | | Current | | Total Loans | | Past Due > | |
Past Due | Past Due | Than 90 | Due | 90 days and |
| | Days Past | | Accruing |
| | Due | | |
September 30, 2014 | | | | | | | | | | | | | | | |
Residential mortgages: | | | | | | | | | | | | | | | |
1-4 family | | $ | 2,290 | | $ | 347 | | $ | 4,720 | | $ | 7,357 | | $ | 1,128,994 | | $ | 1,136,351 | | $ | 1,524 | |
Construction | | — | | — | | — | | — | | 23,512 | | 23,512 | | — | |
Total | | 2,290 | | 347 | | 4,720 | | 7,357 | | 1,152,506 | | 1,159,863 | | 1,524 | |
Commercial real estate: | | | | | | | | | | | | | | | |
Construction | | — | | — | | 621 | | 621 | | 151,439 | | 152,060 | | — | |
Single and multi-family | | 201 | | 160 | | 668 | | 1,029 | | 121,210 | | 122,239 | | 121 | |
Other commercial real estate | | 2,610 | | 340 | | 10,084 | | 13,034 | | 1,019,578 | | 1,032,612 | | 867 | |
Total | | 2,811 | | 500 | | 11,373 | | 14,684 | | 1,292,227 | | 1,306,911 | | 988 | |
Commercial and industrial loans: | | | | | | | | | | | | | | | |
Asset based lending | | — | | 661 | | — | | 661 | | 340,923 | | 341,584 | | — | |
Other commercial and industrial loans | | 390 | | 180 | | 1,190 | | 1,760 | | 336,694 | | 338,454 | | 6 | |
Total | | 390 | | 841 | | 1,190 | | 2,421 | | 677,617 | | 680,038 | | 6 | |
Consumer loans: | | | | | | | | | | | | | | | |
Home equity | | 431 | | 81 | | 1,821 | | 2,333 | | 246,167 | | 248,500 | | 424 | |
Auto and other | | 707 | | 75 | | 364 | | 1,146 | | 337,290 | | 338,436 | | 27 | |
Total | | 1,138 | | 156 | | 2,185 | | 3,479 | | 583,457 | | 586,936 | | 451 | |
Total | | $ | 6,629 | | $ | 1,844 | | $ | 19,468 | | $ | 27,941 | | $ | 3,705,807 | | $ | 3,733,748 | | $ | 2,969 | |
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Business Activities Loans |
|
(in thousands) | | 30-59 Days | | 60-89 Days | | Greater | | Total Past | | Current | | Total Loans | | Past Due > | |
Past Due | Past Due | Than 90 | Due | 90 days and |
| | Days Past | | Accruing |
| | Due | | |
December 31, 2013 | | | | | | | | | | | | | | | |
Residential mortgages: | | | | | | | | | | | | | | | |
1-4 family | | $ | 2,500 | | $ | 623 | | $ | 7,382 | | $ | 10,505 | | $ | 1,017,232 | | $ | 1,027,737 | | $ | 1,451 | |
Construction | | — | | — | | 41 | | 41 | | 18,117 | | 18,158 | | — | |
Total | | 2,500 | | 623 | | 7,423 | | 10,546 | | 1,035,349 | | 1,045,895 | | 1,451 | |
Commercial real estate: | | | | | | | | | | | | | | | |
Construction | | 174 | | — | | 3,176 | | 3,350 | | 121,897 | | 125,247 | | — | |
Single and multi-family | | 139 | | 654 | | 679 | | 1,472 | | 62,021 | | 63,493 | | 168 | |
Other commercial real estate | | 622 | | 4,801 | | 6,912 | | 12,335 | | 858,936 | | 871,271 | | 865 | |
Total | | 935 | | 5,455 | | 10,767 | | 17,157 | | 1,042,854 | | 1,060,011 | | 1,033 | |
Commercial and industrial loans: | | | | | | | | | | | | | | | |
Asset based lending | | — | | — | | — | | — | | 294,241 | | 294,241 | | — | |
Other commercial and industrial loans | | 1,136 | | 386 | | 1,477 | | 2,999 | | 320,197 | | 323,196 | | 42 | |
Total | | 1,136 | | 386 | | 1,477 | | 2,999 | | 614,438 | | 617,437 | | 42 | |
Consumer loans: | | | | | | | | | | | | | | | |
Home equity | | 732 | | 54 | | 1,655 | | 2,441 | | 230,236 | | 232,677 | | 572 | |
Auto and other | | 524 | | 231 | | 390 | | 1,145 | | 212,026 | | 213,171 | | 142 | |
Total | | 1,256 | | 285 | | 2,045 | | 3,586 | | 442,262 | | 445,848 | | 714 | |
Total | | $ | 5,827 | | $ | 6,749 | | $ | 21,712 | | $ | 34,288 | | $ | 3,134,903 | | $ | 3,169,191 | | $ | 3,240 | |
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Acquired Loans |
|
(in thousands) | | 30-59 Days | | 60-89 Days | | Greater | | Total Past | | Current | | Total Loans | | Past Due > | |
Past Due | Past Due | Than 90 | Due | 90 days and |
| | Days Past | | Accruing |
| | Due | | |
September 30, 2014 | | | | | | | | | | | | | | | |
Residential mortgages: | | | | | | | | | | | | | | | |
1-4 family | | $ | 1,047 | | $ | 301 | | $ | 2,576 | | $ | 3,924 | | $ | 281,042 | | $ | 284,966 | | $ | 962 | |
Construction | | — | | — | | — | | — | | 1,032 | | 1,032 | | — | |
Total | | 1,047 | | 301 | | 2,576 | | 3,924 | | 282,074 | | 285,998 | | 962 | |
Commercial real estate: | | | | | | | | | | | | | | | |
Construction | | 686 | | — | | 806 | | 1,492 | | 5,109 | | 6,601 | | 806 | |
Single and multi-family | | 728 | | 267 | | 579 | | 1,574 | | 56,569 | | 58,143 | | 508 | |
Other commercial real estate | | 88 | | 122 | | 1,736 | | 1,946 | | 221,799 | | 223,745 | | — | |
Total | | 1,502 | | 389 | | 3,121 | | 5,012 | | 283,477 | | 288,489 | | 1,314 | |
Commercial and industrial loans: | | | | | | | | | | | | | | | |
Asset based lending | | — | | — | | — | | — | | — | | — | | — | |
Other commercial and industrial loans | | 142 | | 97 | | 1,199 | | 1,438 | | 51,484 | | 52,922 | | 158 | |
Total | | 142 | | 97 | | 1,199 | | 1,438 | | 51,484 | | 52,922 | | 158 | |
Consumer loans: | | | | | | | | | | | | | | | |
Home equity | | 466 | | 204 | | 583 | | 1,253 | | 66,340 | | 67,593 | | 98 | |
Auto and other | | 1,593 | | 148 | | 1,507 | | 3,248 | | 120,784 | | 124,032 | | 66 | |
Total | | 2,059 | | 352 | | 2,090 | | 4,501 | | 187,124 | | 191,625 | | 164 | |
Total | | $ | 4,750 | | $ | 1,139 | | $ | 8,986 | | $ | 14,875 | | $ | 804,159 | | $ | 819,034 | | $ | 2,598 | |
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Acquired Loans |
|
(in thousands) | | 30-59 Days | | 60-89 Days | | Greater | | Total Past | | Current | | Total Loans | | Past Due > | |
Past Due | Past Due | Than 90 | Due | 90 days and |
| | Days Past | | Accruing |
| | Due | | |
December 31, 2013 | | | | | | | | | | | | | | | |
Residential mortgages: | | | | | | | | | | | | | | | |
1-4 family | | $ | 1,891 | | $ | 437 | | $ | 2,577 | | $ | 4,905 | | $ | 328,462 | | $ | 333,367 | | $ | 805 | |
Construction | | 134 | | 32 | | 625 | | 791 | | 4,221 | | 5,012 | | 501 | |
Total | | 2,025 | | 469 | | 3,202 | | 5,696 | | 332,683 | | 338,379 | | 1,306 | |
Commercial real estate: | | | | | | | | | | | | | | | |
Construction | | — | | — | | 805 | | 805 | | 12,965 | | 13,770 | | 805 | |
Single and multi-family | | 350 | | 188 | | 1,335 | | 1,873 | | 62,954 | | 64,827 | | 512 | |
Other commercial real estate | | 537 | | 518 | | 6,108 | | 7,163 | | 271,349 | | 278,512 | | 2,925 | |
Total | | 887 | | 706 | | 8,248 | | 9,841 | | 347,268 | | 357,109 | | 4,242 | |
Commercial and industrial loans: | | | | | | | | | | | | | | | |
Asset based lending | | — | | — | | — | | — | | 3,130 | | 3,130 | | — | |
Other commercial and industrial loans | | 440 | | 135 | | 1,239 | | 1,814 | | 64,912 | | 66,726 | | 318 | |
Total | | 440 | | 135 | | 1,239 | | 1,814 | | 68,042 | | 69,856 | | 318 | |
Consumer loans: | | | | | | | | | | | | | | | |
Home equity | | 425 | | 545 | | 636 | | 1,606 | | 72,548 | | 74,154 | | 35 | |
Auto and other | | 2,606 | | 641 | | 1,641 | | 4,888 | | 166,946 | | 171,834 | | 82 | |
Total | | 3,031 | | 1,186 | | 2,277 | | 6,494 | | 239,494 | | 245,988 | | 117 | |
Total | | $ | 6,383 | | $ | 2,496 | | $ | 14,966 | | $ | 23,845 | | $ | 987,487 | | $ | 1,011,332 | | $ | 5,983 | |
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The following is summary information pertaining to non-accrual loans at September 30, 2014 and December 31, 2013: |
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| | September 30, 2014 | | December 31, 2013 | | | | |
(In thousands) | | Business | | Acquired | | Total | | Business | | Acquired | | Total | | | | |
Activities Loans | Loans | Activities Loans | Loans | | | |
Residential mortgages: | | | | | | | | | | | | | | | | |
1-4 family | | $ | 3,196 | | $ | 1,614 | | $ | 4,810 | | $ | 5,931 | | $ | 1,772 | | $ | 7,703 | | | | |
Construction | | — | | — | | — | | 41 | | 123 | | 164 | | | | |
Total | | 3,196 | | 1,614 | | 4,810 | | 5,972 | | 1,895 | | 7,867 | | | | |
| | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | |
Construction | | 621 | | — | | 621 | | 3,176 | | — | | 3,176 | | | | |
Single and multi-family | | 547 | | 71 | | 618 | | 511 | | 823 | | 1,334 | | | | |
Other commercial real estate | | 9,217 | | 1,736 | | 10,953 | | 6,047 | | 3,183 | | 9,230 | | | | |
Total | | 10,385 | | 1,807 | | 12,192 | | 9,734 | | 4,006 | | 13,740 | | | | |
| | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | |
Other commercial and industrial loans | | 1,184 | | 1,041 | | 2,225 | | 1,434 | | 921 | | 2,355 | | | | |
Total | | 1,184 | | 1,041 | | 2,225 | | 1,434 | | 921 | | 2,355 | | | | |
| | | | | | | | | | | | | | | | |
Consumer loans: | | | | | | | | | | | | | | | | |
Home equity | | 1,397 | | 485 | | 1,882 | | 1,083 | | 602 | | 1,685 | | | | |
Auto and other | | 337 | | 1,441 | | 1,778 | | 249 | | 1,559 | | 1,808 | | | | |
Total | | 1,734 | | 1,926 | | 3,660 | | 1,332 | | 2,161 | | 3,493 | | | | |
| | | | | | | | | | | | | | | | |
Total non-accrual loans | | $ | 16,499 | | $ | 6,388 | | $ | 22,887 | | $ | 18,472 | | $ | 8,983 | | $ | 27,455 | | | | |
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Loans evaluated for impairment as of September 30, 2014 and December 31, 2013 were as follows: |
|
Business Activities Loans |
|
(In thousands) | | Residential | | Commercial | | Commercial and | | Consumer | | Total | | | | | | | |
mortgages | real estate | industrial loans | | | | | | |
30-Sep-14 | | | | | | | | | | | | | | | | | |
Loans receivable: | | | | | | | | | | | | | | | | | |
Balance at end of period | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 3,808 | | $ | 22,018 | | $ | 1,113 | | $ | 749 | | $ | 27,688 | | | | | | | |
Collectively evaluated | | 1,156,055 | | 1,284,893 | | 678,925 | | 586,187 | | 3,706,060 | | | | | | | |
Total | | $ | 1,159,863 | | $ | 1,306,911 | | $ | 680,038 | | $ | 586,936 | | $ | 3,733,748 | | | | | | | |
|
Business Activities Loans |
|
(In thousands) | | Residential | | Commercial | | Commercial and | | Consumer | | Total | | | | | | | |
mortgages | real estate | industrial loans | | | | | | |
31-Dec-13 | | | | | | | | | | | | | | | | | |
Loans receivable: | | | | | | | | | | | | | | | | | |
Balance at end of year | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 6,237 | | $ | 22,429 | | $ | 1,380 | | $ | 515 | | $ | 30,561 | | | | | | | |
Collectively evaluated for impairment | | 1,039,658 | | 1,037,582 | | 616,057 | | 445,333 | | 3,138,630 | | | | | | | |
Total | | $ | 1,045,895 | | $ | 1,060,011 | | $ | 617,437 | | $ | 445,848 | | $ | 3,169,191 | | | | | | | |
|
Acquired Loans |
|
(In thousands) | | Residential | | Commercial | | Commercial and | | Consumer | | Total | | | | | | | |
mortgages | real estate | industrial loans | | | | | | |
30-Sep-14 | | | | | | | | | | | | | | | | | |
Loans receivable: | | | | | | | | | | | | | | | | | |
Balance at end of Period | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 934 | | $ | 4,625 | | $ | 60 | | $ | 184 | | $ | 5,803 | | | | | | | |
Collectively evaluated | | 285,064 | | 283,864 | | 52,862 | | 191,441 | | 813,231 | | | | | | | |
Total | | $ | 285,998 | | $ | 288,489 | | $ | 52,922 | | $ | 191,625 | | $ | 819,034 | | | | | | | |
|
Acquired Loans |
|
(In thousands) | | Residential | | Commercial | | Commercial and | | Consumer | | Total | | | | | | | |
mortgages | real estate | industrial loans | | | | | | |
31-Dec-13 | | | | | | | | | | | | | | | | | |
Loans receivable: | | | | | | | | | | | | | | | | | |
Balance at end of year | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 1,568 | | $ | 6,295 | | $ | 367 | | $ | 154 | | $ | 8,384 | | | | | | | |
Collectively evaluated for impairment | | 336,811 | | 350,814 | | 69,489 | | 245,834 | | 1,002,948 | | | | | | | |
Total | | $ | 338,379 | | $ | 357,109 | | $ | 69,856 | | $ | 245,988 | | $ | 1,011,332 | | | | | | | |
|
The following is a summary of impaired loans at September 30, 2014: |
|
Business Activities Loans |
|
| | At September 30, 2014 | | | | | | | | | | | | | |
(In thousands) | | Recorded Investment | | Unpaid Principal | | Related Allowance | | | | | | | | | | | | | |
Balance | | | | | | | | | | | | |
With no related allowance: | | | | | | | | | | | | | | | | | | | |
Residential mortgages - 1-4 family | | $ | 3,453 | | $ | 3,453 | | $ | — | | | | | | | | | | | | | |
Other commercial real estate loans | | 15,047 | | 15,047 | | — | | | | | | | | | | | | | |
Commercial real esate - construction | | 621 | | 621 | | — | | | | | | | | | | | | | |
Other commercial and industrial loans | | 552 | | 552 | | — | | | | | | | | | | | | | |
Consumer - home equity | | 630 | | 630 | | — | | | | | | | | | | | | | |
Consumer - other | | 119 | | 119 | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | |
Residential mortgages - 1-4 family | | $ | 325 | | $ | 355 | | $ | 30 | | | | | | | | | | | | | |
Other commercial real estate loans | | 3,941 | | 6,350 | | 2,409 | | | | | | | | | | | | | |
Other commercial and industrial loans | | 249 | | 561 | | 312 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | |
Residential mortgages | | $ | 3,778 | | $ | 3,808 | | $ | 30 | | | | | | | | | | | | | |
Commercial real estate | | 19,609 | | 22,018 | | 2,409 | | | | | | | | | | | | | |
Commercial and industrial loans | | 801 | | 1,113 | | 312 | | | | | | | | | | | | | |
Consumer | | 749 | | 749 | | — | | | | | | | | | | | | | |
Total impaired loans | | $ | 24,937 | | $ | 27,688 | | $ | 2,751 | | | | | | | | | | | | | |
|
Acquired Loans |
|
| | At September 30, 2014 | | | | | | | | | | | | | |
(In thousands) | | Recorded Investment | | Unpaid Principal | | Related Allowance | | | | | | | | | | | | | |
Balance | | | | | | | | | | | | |
With no related allowance: | | | | | | | | | | | | | | | | | | | |
Residential mortgages - 1-4 family | | $ | 934 | | $ | 934 | | $ | — | | | | | | | | | | | | | |
Other commercial real estate loans | | 4,625 | | 4,625 | | — | | | | | | | | | | | | | |
Other commercial and industrial loans | | 60 | | 60 | | — | | | | | | | | | | | | | |
Consumer - home equity | | 184 | | 184 | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | |
Residential mortgages - 1-4 family | | $ | — | | $ | — | | $ | — | | | | | | | | | | | | | |
Other commercial real estate loans | | — | | — | | — | | | | | | | | | | | | | |
Other commercial and industrial loans | | — | | — | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | |
Residential mortgages | | $ | 934 | | $ | 934 | | $ | — | | | | | | | | | | | | | |
Commercial real estate | | 4,625 | | 4,625 | | — | | | | | | | | | | | | | |
Commercial and industrial loans | | 60 | | 60 | | — | | | | | | | | | | | | | |
Consumer | | 184 | | 184 | | — | | | | | | | | | | | | | |
Total impaired loans | | $ | 5,803 | | $ | 5,803 | | $ | — | | | | | | | | | | | | | |
|
The following is a summary of impaired loans at December 31, 2013: |
|
Business Activities Loans |
|
| | At December 31, 2013 | | | | | | | | | | | | | |
(In thousands) | | Recorded Investment | | Unpaid Principal | | Related Allowance | | | | | | | | | | | | | |
Balance | | | | | | | | | | | | |
With no related allowance: | | | | | | | | | | | | | | | | | | | |
Residential mortgages - 1-4 family | | $ | 3,406 | | $ | 3,406 | | $ | — | | | | | | | | | | | | | |
Commercial real estate - construction | | 3,176 | | 3,176 | | — | | | | | | | | | | | | | |
Commercial real estate - single and multifamily | | — | | — | | — | | | | | | | | | | | | | |
Other commercial real estate loans | | 18,909 | | 18,909 | | — | | | | | | | | | | | | | |
Other commercial and industrial loans | | 811 | | 811 | | — | | | | | | | | | | | | | |
Consumer - home equity | | 270 | | 270 | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | |
Residential mortgages - 1-4 family | | $ | 1,926 | | $ | 2,831 | | $ | 905 | | | | | | | | | | | | | |
Commercial real estate - construction | | — | | — | | — | | | | | | | | | | | | | |
Commercial real estate - single and multifamily | | — | | — | | — | | | | | | | | | | | | | |
Other commercial real estate loans | | 125 | | 344 | | 219 | | | | | | | | | | | | | |
Other commercial and industrial loans | | 514 | | 569 | | 55 | | | | | | | | | | | | | |
Consumer - home equity | | 142 | | 245 | | 103 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | |
Residential mortgages | | $ | 5,332 | | $ | 6,237 | | $ | 905 | | | | | | | | | | | | | |
Commercial real estate | | 22,210 | | 22,429 | | 219 | | | | | | | | | | | | | |
Commercial and industrial loans | | 1,325 | | 1,380 | | 55 | | | | | | | | | | | | | |
Consumer | | 412 | | 515 | | 103 | | | | | | | | | | | | | |
Total impaired loans | | $ | 29,279 | | $ | 30,561 | | $ | 1,282 | | | | | | | | | | | | | |
|
Acquired Loans |
|
| | At December 31, 2013 | | | | | | | | | | | | | |
(In thousands) | | Recorded Investment | | Unpaid Principal | | Related Allowance | | | | | | | | | | | | | |
Balance | | | | | | | | | | | | |
With no related allowance: | | | | | | | | | | | | | | | | | | | |
Residential mortgages - 1-4 family | | $ | 381 | | $ | 381 | | $ | — | | | | | | | | | | | | | |
Other commercial real estate loans | | 3,853 | | 3,853 | | — | | | | | | | | | | | | | |
Other commercial and industrial loans | | 367 | | 367 | | — | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | |
Residential mortgages - 1-4 family | | $ | 957 | | $ | 1,187 | | $ | 230 | | | | | | | | | | | | | |
Other commercial real estate loans | | 1,954 | | 2,442 | | 488 | | | | | | | | | | | | | |
Consumer - home equity | | 115 | | 154 | | 39 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | | |
Residential mortgages | | $ | 1,338 | | $ | 1,568 | | $ | 230 | | | | | | | | | | | | | |
Other commercial real estate loans | | 5,807 | | 6,295 | | 488 | | | | | | | | | | | | | |
Other commercial and industrial loans | | 367 | | 367 | | — | | | | | | | | | | | | | |
Consumer - home equity | | 115 | | 154 | | 39 | | | | | | | | | | | | | |
Total impaired loans | | $ | 7,627 | | $ | 8,384 | | $ | 757 | | | | | | | | | | | | | |
|
The following is a summary of the average recorded investment and interest income recognized on impaired loans as of September 30, 2014 and 2013: |
|
Business Activities Loans |
|
| | Nine Months Ended September 30, 2014 | | Nine Months Ended September 30, 2013 | | | | | | | | | | |
(in thousands) | | Average Recorded | | Cash Basis Interest | | Average Recorded | | Cash Basis Interest | | | | | | | | | | |
Investment | Income Recognized | Investment | Income Recognized | | | | | | | | | |
With no related allowance: | | | | | | | | | | | | | | | | | | |
Residential mortgages - 1-4 family | | $ | 4,342 | | $ | 140 | | $ | 4,873 | | $ | 64 | | | | | | | | | | |
Commercial real estate - construction | | 16,765 | | 470 | | 2,332 | | 25 | | | | | | | | | | |
Other commercial real estate loans | | 2,117 | | — | | 23,538 | | 547 | | | | | | | | | | |
Commercial and industrial loans | | 1,582 | | 60 | | 1,182 | | 34 | | | | | | | | | | |
Consumer - home equity | | 411 | | 9 | | 1,145 | | 8 | | | | | | | | | | |
Consumer - other | | 122 | | 3 | | 130 | | 2 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | |
Residential mortgages - 1-4 family | | $ | 396 | | $ | 3 | | $ | 1,569 | | $ | 9 | | | | | | | | | | |
Commercial real estate - construction | | 3,776 | | 30 | | 1,938 | | — | | | | | | | | | | |
Other commercial real estate loans | | 593 | | 4 | | 86 | | — | | | | | | | | | | |
Commercial and industrial loans | | — | | — | | 759 | | — | | | | | | | | | | |
Consumer - home equity | | — | | — | | 55 | | — | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | |
Residential mortgages | | $ | 4,738 | | $ | 143 | | $ | 6,442 | | $ | 73 | | | | | | | | | | |
Commercial real estate | | 23,251 | | 504 | | 27,894 | | 572 | | | | | | | | | | |
Commercial and industrial loans | | 1,582 | | 60 | | 1,941 | | 34 | | | | | | | | | | |
Consumer loans | | 533 | | 12 | | 1,330 | | 10 | | | | | | | | | | |
Total impaired loans | | $ | 30,104 | | $ | 719 | | $ | 37,607 | | $ | 689 | | | | | | | | | | |
|
Acquired Loans |
|
| | Nine Months Ended September 30, 2014 | | Nine Months Ended September 30, 2013 | | | | | | | | | | |
(in thousands) | | Average Recorded | | Cash Basis Interest | | Average Recorded | | Cash Basis Interest | | | | | | | | | | |
Investment | Income Recognized | Investment | Income Recognized | | | | | | | | | |
With no related allowance: | | | | | | | | | | | | | | | | | | |
Residential mortgages - 1-4 family | | $ | 1,046 | | $ | 8 | | $ | 410 | | $ | 3 | | | | | | | | | | |
Other commercial real estate loans | | 5,575 | | 146 | | 3,035 | | 53 | | | | | | | | | | |
Commercial and industrial loans | | 457 | | 13 | | 182 | | — | | | | | | | | | | |
Consumer - home equity | | 55 | | — | | — | | — | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | |
Residential mortgages - 1-4 family | | $ | 164 | | $ | 4 | | $ | 566 | | $ | 3 | | | | | | | | | | |
Other commercial real estate loans | | — | | — | | 1,163 | | 6 | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | |
Residential mortgages | | $ | 1,210 | | $ | 12 | | $ | 976 | | $ | 6 | | | | | | | | | | |
Other commercial real estate loans | | 5,575 | | 146 | | 4,198 | | 59 | | | | | | | | | | |
Commercial and industrial loans | | 457 | | 13 | | 182 | | — | | | | | | | | | | |
Consumer loans | | 55 | | — | | — | | — | | | | | | | | | | |
Total impaired loans | | $ | 7,297 | | $ | 171 | | $ | 5,356 | | $ | 65 | | | | | | | | | | |
|
Troubled Debt Restructuring Loans |
|
The Company’s loan portfolio also includes certain loans that have been modified in a Troubled Debt Restructuring (TDR), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months. TDRs are evaluated individually for impairment and may result in a specific allowance amount allocated to an individual loan. |
|
The following tables include the recorded investment and number of modifications identified during the three and nine months ended September 30, 2014 and for the nine months ended September 30, 2013, respectively. There were no modifications identified for the three months ended September 30, 2013. The table includes the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured. The modifications for the three and nine months ending September 30, 2014 were attributable to interest rate concessions, maturity date extensions and released collateral. The modifications for the nine months ending September 30, 2013 were attributable to interest rate concessions and maturity date extensions. |
|
| | Modifications by Class | | | | | | | | | | | | | | |
| | Three months ending September 30, 2014 | | | | | | | | | | | | | | |
(Dollars in thousands) | | Number of | | Pre-Modification | | Post-Modification | | | | | | | | | | | | | | |
Modifications | Outstanding Recorded | Outstanding Recorded | | | | | | | | | | | | | |
| Investment | Investment | | | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | |
Residential - 1-4 Family | | 2 | | $ | 231 | | $ | 232 | | | | | | | | | | | | | | |
Commercial - Single and multifamily | | — | | — | | — | | | | | | | | | | | | | | |
Commercial - Other | | 1 | | 1,596 | | 1,596 | | | | | | | | | | | | | | |
| | 3 | | $ | 1,827 | | $ | 1,828 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Modifications by Class | | | | | | | | | | | | | | |
| | Nine months ending September 30, 2014 | | | | | | | | | | | | | | |
(Dollars in thousands) | | Number of | | Pre-Modification | | Post-Modification | | | | | | | | | | | | | | |
Modifications | Outstanding Recorded | Outstanding Recorded | | | | | | | | | | | | | |
| Investment | Investment | | | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | |
Residential - 1-4 Family | | 5 | | $ | 600 | | $ | 598 | | | | | | | | | | | | | | |
Commercial - Single and multifamily | | 1 | | 623 | | 623 | | | | | | | | | | | | | | |
Commercial - Other | | 7 | | 6,400 | | 6,400 | | | | | | | | | | | | | | |
| | 13 | | $ | 7,623 | | $ | 7,621 | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Modifications by Class | | | | | | | | | | | | | | |
| | Nine months ending September 30, 2013 | | | | | | | | | | | | | | |
(Dollars in thousands) | | Number of | | Pre-Modification | | Post-Modification | | | | | | | | | | | | | | |
Modifications | Outstanding Recorded | Outstanding Recorded | | | | | | | | | | | | | |
| Investment | Investment | | | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | |
Residential - 1-4 Family | | 5 | | $ | 941 | | $ | 941 | | | | | | | | | | | | | | |
Residential - Construction | | 1 | | 320 | | 320 | | | | | | | | | | | | | | |
Commercial - Single and multifamily | | 2 | | 2,366 | | 2,406 | | | | | | | | | | | | | | |
Commercial - Other | | 10 | | 3,882 | | 3,450 | | | | | | | | | | | | | | |
Commercial business - Other | | 4 | | 100 | | 100 | | | | | | | | | | | | | | |
| | 22 | | $ | 7,609 | | $ | 7,217 | | | | | | | | | | | | | | |
|
The following table discloses the recorded investment and number of modifications for TDRs within the last three and nine months where a concession has been made, that then defaulted in the respective reporting period. |
|
| | Modifications that Subsequently Defaulted | | | | | | | | | | | | | | | | | |
| | Three months ending September 30, 2014 | | | | | | | | | | | | | | | | | |
| | Number of Contracts | | Recorded Investment | | | | | | | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial - Other | | — | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | Modifications that Subsequently Defaulted | | | | | | | | | | | | | | | | | |
| | Nine months ending September 30, 2014 | | | | | | | | | | | | | | | | | |
| | Number of Contracts | | Recorded Investment | | | | | | | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial - Other | | 2 | | $ | 158 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | Modifications that Subsequently Defaulted | | | | | | | | | | | | | | | | | |
| | Three months ending September 30, 2013 | | | | | | | | | | | | | | | | | |
| | Number of Contracts | | Recorded Investment | | | | | | | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | |
Commercial - Single and multifamily | | 1 | | $ | 37 | | | | | | | | | | | | | | | | | |
Commercial - Other | | 5 | | 929 | | | | | | | | | | | | | | | | | |
Commercial and industrial - Other | | 1 | | — | | | | | | | | | | | | | | | | | |
| | 7 | | $ | 966 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | Modifications that Subsequently Defaulted | | | | | | | | | | | | | | | | | |
| | Nine months ending September 30, 2013 | | | | | | | | | | | | | | | | | |
| | Number of Contracts | | Recorded Investment | | | | | | | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | |
Commercial - Single and multifamily | | 5 | | $ | 261 | | | | | | | | | | | | | | | | | |
Commercial - Other | | 5 | | 929 | | | | | | | | | | | | | | | | | |
Commercial and industrial - Other | | 1 | | — | | | | | | | | | | | | | | | | | |
| | 11 | | $ | 1,190 | | | | | | | | | | | | | | | | | |
|
The following table presents the Company’s TDR activity for the three and nine months ended September 30, 2014 and 2013: |
|
| | Three months ending | | | | | | | | | | | | | | | | |
| | September 30, | | | | | | | | | | | | | | | | |
(In thousands) | | 2014 | | 2013 | | | | | | | | | | | | | | | | |
Balance at beginning of the period | | $ | 15,113 | | $ | 10,160 | | | | | | | | | | | | | | | | |
Principal Payments | | (339 | ) | (55 | ) | | | | | | | | | | | | | | | |
TDR Status Change (1) | | (245 | ) | — | | | | | | | | | | | | | | | | |
Other Reductions (2) | | — | | 156 | | | | | | | | | | | | | | | | |
Newly Identified TDRs | | 1,828 | | — | | | | | | | | | | | | | | | | |
Balance at end of the period | | $ | 16,357 | | $ | 10,261 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Nine months ending | | | | | | | | | | | | | | | | |
| | September 30, | | | | | | | | | | | | | | | | |
(In thousands) | | 2014 | | 2013 | | | | | | | | | | | | | | | | |
Balance at beginning of the period | | $ | 10,822 | | $ | 4,626 | | | | | | | | | | | | | | | | |
Principal Payments | | (1,299 | ) | (92 | ) | | | | | | | | | | | | | | | |
TDR Status Change (1) | | (886 | ) | (1,164 | ) | | | | | | | | | | | | | | | |
Other Reductions (2) | | 99 | | (326 | ) | | | | | | | | | | | | | | | |
Newly Identified TDRs | | 7,621 | | 7,217 | | | | | | | | | | | | | | | | |
Balance at end of the period | | $ | 16,357 | | $ | 10,261 | | | | | | | | | | | | | | | | |
|
(1) TDR Status change classification represents TDR loans with a specified interest rate equal to or greater than the rate that the Company was willing to accept at the time of the restructuring for a new loan with comparable risk and the loan was on current payment status and not impaired based on the terms specified by the restructuring agreement. |
(2) Other Reductions classification consists of transfer to other real estate owned and charge-offs and advances to loans. |
|
The evaluation of certain loans individually for specific impairment includes loans that were previously classified as TDRs or continue to be classified as TDRs. |