Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments nd Impaired Loans |
Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans The tables below show the aging of the Company’s loan portfolio at December 31, 2013 and 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2013 (Dollars in thousands) | | Nonaccrual | | 90+ days and still accruing | | 60-89 days past due | | 30-59 days past due | | Current | | Total Loans | Loan Balances: | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | Commercial and industrial | | $ | 10,143 |
| | $ | — |
| | $ | 4,938 |
| | $ | 7,404 |
| | $ | 1,813,721 |
| | $ | 1,836,206 |
| Franchise | | — |
| | — |
| | 400 |
| | — |
| | 219,983 |
| | 220,383 |
| Mortgage warehouse lines of credit | | — |
| | — |
| | — |
| | — |
| | 67,470 |
| | 67,470 |
| Community Advantage — homeowners association | | — |
| | — |
| | — |
| | — |
| | 90,894 |
| | 90,894 |
| Aircraft | | — |
| | — |
| | — |
| | — |
| | 10,241 |
| | 10,241 |
| Asset-based lending | | 637 |
| | — |
| | 388 |
| | 1,878 |
| | 732,190 |
| | 735,093 |
| Tax exempt | | — |
| | — |
| | — |
| | — |
| | 161,239 |
| | 161,239 |
| Leases | | — |
| | — |
| | — |
| | 788 |
| | 109,043 |
| | 109,831 |
| Other | | — |
| | — |
| | — |
| | — |
| | 11,147 |
| | 11,147 |
| Purchased non-covered commercial (1) | | — |
| | 274 |
| | 156 |
| | 1,685 |
| | 9,068 |
| | 11,183 |
| Total commercial | | 10,780 |
| | 274 |
| | 5,882 |
| | 11,755 |
| | 3,224,996 |
| | 3,253,687 |
| Commercial real-estate: | | | | | | | | | | | | | Residential construction | | 149 |
| | — |
| | — |
| | — |
| | 38,351 |
| | 38,500 |
| Commercial construction | | 6,969 |
| | — |
| | — |
| | 505 |
| | 129,232 |
| | 136,706 |
| Land | | 2,814 |
| | — |
| | 4,224 |
| | 619 |
| | 99,128 |
| | 106,785 |
| Office | | 10,087 |
| | — |
| | 2,265 |
| | 3,862 |
| | 626,027 |
| | 642,241 |
| Industrial | | 5,654 |
| | — |
| | 585 |
| | 914 |
| | 626,785 |
| | 633,938 |
| Retail | | 10,862 |
| | — |
| | 837 |
| | 2,435 |
| | 642,125 |
| | 656,259 |
| Multi-family | | 2,035 |
| | — |
| | — |
| | 348 |
| | 564,154 |
| | 566,537 |
| Mixed use and other | | 8,088 |
| | 230 |
| | 3,943 |
| | 15,949 |
| | 1,344,244 |
| | 1,372,454 |
| Purchased non-covered commercial real-estate (1) | | — |
| | 18,582 |
| | 3,540 |
| | 5,238 |
| | 49,255 |
| | 76,615 |
| Total commercial real-estate | | 46,658 |
| | 18,812 |
| | 15,394 |
| | 29,870 |
| | 4,119,301 |
| | 4,230,035 |
| Home equity | | 10,071 |
| | — |
| | 1,344 |
| | 3,060 |
| | 704,662 |
| | 719,137 |
| Residential real estate | | 14,974 |
| | — |
| | 1,689 |
| | 5,032 |
| | 410,430 |
| | 432,125 |
| Purchased non-covered residential real estate (1) | | — |
| | 1,988 |
| | — |
| | — |
| | 879 |
| | 2,867 |
| Premium finance receivables | | | | | | | | | | | | | Commercial insurance loans | | 10,537 |
| | 8,842 |
| | 6,912 |
| | 24,094 |
| | 2,117,180 |
| | 2,167,565 |
| Life insurance loans | | — |
| | — |
| | 2,524 |
| | 1,808 |
| | 1,495,460 |
| | 1,499,792 |
| Purchased life insurance loans (1) | | — |
| | — |
| | — |
| | — |
| | 423,906 |
| | 423,906 |
| Indirect consumer | | 55 |
| | 105 |
| | 29 |
| | 353 |
| | 50,138 |
| | 50,680 |
| Consumer and other | | 1,082 |
| | — |
| | 47 |
| | 657 |
| | 113,818 |
| | 115,604 |
| Purchased non-covered consumer and other (1) | | — |
| | 181 |
| | — |
| | — |
| | 1,023 |
| | 1,204 |
| Total loans, net of unearned income, excluding covered loans | | $ | 94,157 |
| | $ | 30,202 |
| | $ | 33,821 |
| | $ | 76,629 |
| | $ | 12,661,793 |
| | $ | 12,896,602 |
| Covered loans | | 9,425 |
| | 56,282 |
| | 5,877 |
| | 7,937 |
| | 266,910 |
| | 346,431 |
| Total loans, net of unearned income | | $ | 103,582 |
| | $ | 86,484 |
| | $ | 39,698 |
| | $ | 84,566 |
| | $ | 12,928,703 |
| | $ | 13,243,033 |
|
| | (1) | Purchased loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. See Note 4 - Loans for further discussion of these purchased loans. |
| | | | | | | | | | | | | | | | | | | | | | | | | | As of December 31, 2012 (Dollars in thousands) | | Nonaccrual | | 90+ days and still accruing | | 60-89 days past due | | 30-59 days past due | | Current | | Total Loans | Loan Balances: | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | Commercial and industrial | | $ | 19,409 |
| | $ | — |
| | $ | 5,520 |
| | $ | 15,410 |
| | $ | 1,587,864 |
| | $ | 1,628,203 |
| Franchise | | 1,792 |
| | — |
| | — |
| | — |
| | 194,603 |
| | 196,395 |
| Mortgage warehouse lines of credit | | — |
| | — |
| | — |
| | — |
| | 215,076 |
| | 215,076 |
| Community Advantage — homeowners association | | — |
| | — |
| | — |
| | — |
| | 81,496 |
| | 81,496 |
| Aircraft | | — |
| | — |
| | 148 |
| | — |
| | 17,216 |
| | 17,364 |
| Asset-based lending | | 536 |
| | — |
| | 1,126 |
| | 6,622 |
| | 564,154 |
| | 572,438 |
| Tax exempt | | — |
| | — |
| | — |
| | — |
| | 91,824 |
| | 91,824 |
| Leases | | — |
| | — |
| | — |
| | 896 |
| | 89,547 |
| | 90,443 |
| Other | | — |
| | — |
| | — |
| | — |
| | 16,549 |
| | 16,549 |
| Purchased non-covered commercial (1) | | — |
| | 496 |
| | 432 |
| | 7 |
| | 4,075 |
| | 5,010 |
| Total commercial | | 21,737 |
| | 496 |
| | 7,226 |
| | 22,935 |
| | 2,862,404 |
| | 2,914,798 |
| Commercial real-estate | | | | | | | | | | | | | Residential construction | | 3,110 |
| | — |
| | 4 |
| | 41 |
| | 37,246 |
| | 40,401 |
| Commercial construction | | 2,159 |
| | — |
| | 885 |
| | 386 |
| | 167,525 |
| | 170,955 |
| Land | | 11,299 |
| | — |
| | 632 |
| | 9,014 |
| | 113,252 |
| | 134,197 |
| Office | | 4,196 |
| | — |
| | 1,889 |
| | 3,280 |
| | 560,346 |
| | 569,711 |
| Industrial | | 2,089 |
| | — |
| | 6,042 |
| | 4,512 |
| | 565,294 |
| | 577,937 |
| Retail | | 7,792 |
| | — |
| | 1,372 |
| | 998 |
| | 558,734 |
| | 568,896 |
| Multi-family | | 2,586 |
| | — |
| | 3,949 |
| | 1,040 |
| | 389,116 |
| | 396,691 |
| Mixed use and other | | 16,742 |
| | — |
| | 6,660 |
| | 13,349 |
| | 1,312,503 |
| | 1,349,254 |
| Purchased non-covered commercial real-estate (1) | | — |
| | 749 |
| | 2,663 |
| | 2,508 |
| | 50,156 |
| | 56,076 |
| Total commercial real-estate | | 49,973 |
| | 749 |
| | 24,096 |
| | 35,128 |
| | 3,754,172 |
| | 3,864,118 |
| Home equity | | 13,423 |
| | 100 |
| | 1,592 |
| | 5,043 |
| | 768,316 |
| | 788,474 |
| Residential real estate | | 11,728 |
| | — |
| | 2,763 |
| | 8,250 |
| | 343,616 |
| | 366,357 |
| Purchased non-covered residential real estate (1) | | — |
| | — |
| | 200 |
| | — |
| | 656 |
| | 856 |
| Premium finance receivables | | | | | | | | | | | | | Commercial insurance loans | | 9,302 |
| | 10,008 |
| | 6,729 |
| | 19,597 |
| | 1,942,220 |
| | 1,987,856 |
| Life insurance loans | | 25 |
| | — |
| | — |
| | 5,531 |
| | 1,205,151 |
| | 1,210,707 |
| Purchased life insurance loans (1) | | — |
| | — |
| | — |
| | — |
| | 514,459 |
| | 514,459 |
| Indirect consumer | | 55 |
| | 189 |
| | 51 |
| | 442 |
| | 76,596 |
| | 77,333 |
| Consumer and other | | 1,511 |
| | 32 |
| | 167 |
| | 433 |
| | 99,010 |
| | 101,153 |
| Purchased non-covered consumer and other (1) | | — |
| | 66 |
| | 32 |
| | 101 |
| | 2,633 |
| | 2,832 |
| Total loans, net of unearned income, excluding covered loans | | $ | 107,754 |
| | $ | 11,640 |
| | $ | 42,856 |
| | $ | 97,460 |
| | $ | 11,569,233 |
| | $ | 11,828,943 |
| Covered loans | | 1,988 |
| | 122,350 |
| | 16,108 |
| | 7,999 |
| | 411,642 |
| | 560,087 |
| Total loans, net of unearned income | | $ | 109,742 |
| | $ | 133,990 |
| | $ | 58,964 |
| | $ | 105,459 |
| | $ | 11,980,875 |
| | $ | 12,389,030 |
|
| | (1) | Purchased loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. Loan agings are based upon contractually required payments. See Note 4 - Loans for further discussion of these purchased loans. |
Our ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans. To do so, we operate a credit risk rating system under which our credit management personnel assign a credit risk rating (1 to 10 rating) to each loan at the time of origination and review loans on a regular basis. Each loan officer is responsible for monitoring his or her loan portfolio, recommending a credit risk rating for each loan in his or her portfolio and ensuring the credit risk ratings are appropriate. These credit risk ratings are then ratified by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including: a borrower’s financial strength, cash flow coverage, collateral protection and guarantees. The Company’s Problem Loan Reporting system automatically includes all loans with credit risk ratings of 6 through 9. This system is designed to provide an on-going detailed tracking mechanism for each problem loan. Once management determines that a loan has deteriorated to a point where it has a credit risk rating of 6 or worse, the Company’s Managed Asset Division performs an overall credit and collateral review. As part of this review, all underlying collateral is identified and the valuation methodology is analyzed and tracked. As a result of this initial review by the Company’s Managed Asset Division, the credit risk rating is reviewed and a portion of the outstanding loan balance may be deemed uncollectible or an impairment reserve may be established. The Company’s impairment analysis utilizes an independent re-appraisal of the collateral (unless such a third-party evaluation is not possible due to the unique nature of the collateral, such as a closely-held business or thinly traded securities). In the case of commercial real estate collateral, an independent third party appraisal is ordered by the Company’s Real Estate Services Group to determine if there has been any change in the underlying collateral value. These independent appraisals are reviewed by the Real Estate Services Group and sometimes by independent third party valuation experts and may be adjusted depending upon market conditions. Through the credit risk rating process, loans are reviewed to determine if they are performing in accordance with the original contractual terms. If the borrower has failed to comply with the original contractual terms, further action may be required by the Company, including a downgrade in the credit risk rating, movement to non-accrual status, a charge-off or the establishment of a specific impairment reserve. If we determine that a loan amount or portion thereof is uncollectible the loan’s credit risk rating is immediately downgraded to an 8 or 9 and the uncollectible amount is charged-off. Any loan that has a partial charge-off continues to be assigned a credit risk rating of an 8 or 9 for the duration of time that a balance remains outstanding. The Company undertakes a thorough and ongoing analysis to determine if additional impairment and/or charge-offs are appropriate and to begin a workout plan for the credit to minimize actual losses. If, based on current information and events, it is probable that the Company will be unable to collect all amounts due to it according to the contractual terms of the loan agreement, a specific impairment reserve is established. In determining the appropriate charge-off for collateral-dependent loans, the Company considers the results of appraisals for the associated collateral. Non-performing loans include all non-accrual loans (8 and 9 risk ratings) as well as loans 90 days past due and still accruing interest, excluding loans acquired with evidence of credit quality deterioration since origination. The remainder of the portfolio is considered performing under the contractual terms of the loan agreement. The following table presents the recorded investment based on performance of loans by class, excluding covered loans, per the most recent analysis at December 31, 2013 and 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | | | Performing | | Non-performing | | Total | | | December 31, | | December 31, | | December 31, | | December 31, | | December 31, | | December 31, | (Dollars in thousands) | | 2013 | | 2012 | | 2013 | | 2012 | | 2013 | | 2012 | Loan Balances: | | | | | | | | | | | | | Commercial | | | | | | | | | | | | | Commercial and industrial | | $ | 1,826,063 |
| | $ | 1,608,794 |
| | $ | 10,143 |
| | $ | 19,409 |
| | $ | 1,836,206 |
| | $ | 1,628,203 |
| Franchise | | 220,383 |
| | 194,603 |
| | — |
| | 1,792 |
| | 220,383 |
| | 196,395 |
| Mortgage warehouse lines of credit | | 67,470 |
| | 215,076 |
| | — |
| | — |
| | 67,470 |
| | 215,076 |
| Community Advantage—homeowners association | | 90,894 |
| | 81,496 |
| | — |
| | — |
| | 90,894 |
| | 81,496 |
| Aircraft | | 10,241 |
| | 17,364 |
| | — |
| | — |
| | 10,241 |
| | 17,364 |
| Asset-based lending | | 734,456 |
| | 571,902 |
| | 637 |
| | 536 |
| | 735,093 |
| | 572,438 |
| Tax exempt | | 161,239 |
| | 91,824 |
| | — |
| | — |
| | 161,239 |
| | 91,824 |
| Leases | | 109,831 |
| | 90,443 |
| | — |
| | — |
| | 109,831 |
| | 90,443 |
| Other | | 11,147 |
| | 16,549 |
| | — |
| | — |
| | 11,147 |
| | 16,549 |
| Purchased non-covered commercial (1) | | 11,183 |
| | 5,010 |
| | — |
| | — |
| | 11,183 |
| | 5,010 |
| Total commercial | | 3,242,907 |
| | 2,893,061 |
| | 10,780 |
| | 21,737 |
| | 3,253,687 |
| | 2,914,798 |
| Commercial real-estate | | | | | | | | | | | | | Residential construction | | 38,351 |
| | 37,291 |
| | 149 |
| | 3,110 |
| | 38,500 |
| | 40,401 |
| Commercial construction | | 129,737 |
| | 168,796 |
| | 6,969 |
| | 2,159 |
| | 136,706 |
| | 170,955 |
| Land | | 103,971 |
| | 122,898 |
| | 2,814 |
| | 11,299 |
| | 106,785 |
| | 134,197 |
| Office | | 632,154 |
| | 565,515 |
| | 10,087 |
| | 4,196 |
| | 642,241 |
| | 569,711 |
| Industrial | | 628,284 |
| | 575,848 |
| | 5,654 |
| | 2,089 |
| | 633,938 |
| | 577,937 |
| Retail | | 645,397 |
| | 561,104 |
| | 10,862 |
| | 7,792 |
| | 656,259 |
| | 568,896 |
| Multi-family | | 564,502 |
| | 394,105 |
| | 2,035 |
| | 2,586 |
| | 566,537 |
| | 396,691 |
| Mixed use and other | | 1,364,136 |
| | 1,332,512 |
| | 8,318 |
| | 16,742 |
| | 1,372,454 |
| | 1,349,254 |
| Purchased non-covered commercial real-estate (1) | | 76,615 |
| | 56,076 |
| | — |
| | — |
| | 76,615 |
| | 56,076 |
| Total commercial real-estate | | 4,183,147 |
| | 3,814,145 |
| | 46,888 |
| | 49,973 |
| | 4,230,035 |
| | 3,864,118 |
| Home equity | | 709,066 |
| | 774,951 |
| | 10,071 |
| | 13,523 |
| | 719,137 |
| | 788,474 |
| Residential real estate | | 417,151 |
| | 354,629 |
| | 14,974 |
| | 11,728 |
| | 432,125 |
| | 366,357 |
| Purchased non-covered residential real estate (1) | | 2,867 |
| | 856 |
| | — |
| | — |
| | 2,867 |
| | 856 |
| Premium finance receivables | | | | | | | | | | | | | Commercial insurance loans | | 2,148,186 |
| | 1,968,546 |
| | 19,379 |
| | 19,310 |
| | 2,167,565 |
| | 1,987,856 |
| Life insurance loans | | 1,499,792 |
| | 1,210,682 |
| | — |
| | 25 |
| | 1,499,792 |
| | 1,210,707 |
| Purchased life insurance loans (1) | | 423,906 |
| | 514,459 |
| | — |
| | — |
| | 423,906 |
| | 514,459 |
| Indirect consumer | | 50,520 |
| | 77,089 |
| | 160 |
| | 244 |
| | 50,680 |
| | 77,333 |
| Consumer and other | | 114,522 |
| | 99,610 |
| | 1,082 |
| | 1,543 |
| | 115,604 |
| | 101,153 |
| Purchased non-covered consumer and other (1) | | 1,204 |
| | 2,832 |
| | — |
| | — |
| | 1,204 |
| | 2,832 |
| Total loans, net of unearned income, excluding covered loans | | $ | 12,793,268 |
| | $ | 11,710,860 |
| | $ | 103,334 |
| | $ | 118,083 |
| | $ | 12,896,602 |
| | $ | 11,828,943 |
|
| | (1) | Purchased loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. See Note 4 - Loans for further discussion of these purchased loans. |
A summary of the activity in the allowance for credit losses by loan portfolio (excluding covered loans) for the years ended December 31, 2013 and 2012 is as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2013 (Dollars in thousands) | | Commercial | | Commercial Real-estate | | Home Equity | | Residential Real-estate | | Premium Finance Receivable | | Indirect Consumer | | Consumer and Other | | Total, Excluding Covered Loans | Allowance for credit losses | | | | | | | | | | | | | | | | | Allowance for loan losses at beginning of period | | $ | 28,794 |
| | $ | 52,135 |
| | $ | 12,734 |
| | $ | 5,560 |
| | $ | 6,096 |
| | $ | 267 |
| | $ | 1,765 |
| | $ | 107,351 |
| Other adjustments | | (51 | ) | | (783 | ) | | 3 |
| | (88 | ) | | (19 | ) | | — |
| | — |
| | (938 | ) | Reclassification to/from allowance for unfunded lending-related commitments | | — |
| | 640 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 640 |
| Charge-offs | | (14,123 | ) | | (32,745 | ) | | (6,361 | ) | | (2,958 | ) | | (5,080 | ) | | (130 | ) | | (980 | ) | | (62,377 | ) | Recoveries | | 1,655 |
| | 2,526 |
| | 432 |
| | 289 |
| | 1,121 |
| | 53 |
| | 186 |
| | 6,262 |
| Provision for credit losses | | 6,817 |
| | 26,885 |
| | 5,803 |
| | 2,305 |
| | 3,465 |
| | (8 | ) | | 717 |
| | 45,984 |
| Allowance for loan losses at period end | | $ | 23,092 |
| | $ | 48,658 |
| | $ | 12,611 |
| | $ | 5,108 |
| | $ | 5,583 |
| | $ | 182 |
| | $ | 1,688 |
| | $ | 96,922 |
| Allowance for unfunded lending-related commitments at period end | | $ | — |
| | $ | 719 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 719 |
| Allowance for credit losses at period end | | $ | 23,092 |
| | $ | 49,377 |
| | $ | 12,611 |
| | $ | 5,108 |
| | $ | 5,583 |
| | $ | 182 |
| | $ | 1,688 |
| | $ | 97,641 |
| Individually evaluated for impairment | | 1,392 |
| | 4,653 |
| | 1,593 |
| | 655 |
| | — |
| | — |
| | 109 |
| | 8,402 |
| Collectively evaluated for impairment | | 21,637 |
| | 44,724 |
| | 11,018 |
| | 4,390 |
| | 5,583 |
| | 182 |
| | 1,578 |
| | 89,112 |
| Loans acquired with deteriorated credit quality | | 63 |
| | — |
| | — |
| | 63 |
| | — |
| | — |
| | 1 |
| | 127 |
| Loans at period end | | | | | | | | | | | | | | | | | Individually evaluated for impairment | | $ | 17,628 |
| | $ | 117,149 |
| | $ | 10,297 |
| | $ | 17,901 |
| | $ | — |
| | $ | 55 |
| | $ | 1,534 |
| | $ | 164,564 |
| Collectively evaluated for impairment | | 3,224,876 |
| | 4,036,271 |
| | 708,840 |
| | 414,224 |
| | 3,667,357 |
| | 50,625 |
| | 114,070 |
| | 12,216,263 |
| Loans acquired with deteriorated credit quality | | 11,183 |
| | 76,615 |
| | — |
| | 2,867 |
| | 423,906 |
| | — |
| | 1,204 |
| | 515,775 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2012 (Dollars in thousands) | | Commercial | | Commercial Real-estate | | Home Equity | | Residential Real-estate | | Premium Finance Receivable | | Indirect Consumer | | Consumer and Other | | Total, Excluding Covered Loans | Allowance for credit losses | | | | | | | | | | | | | | | | | Allowance for loan losses at beginning of period | | $ | 31,237 |
| | $ | 56,405 |
| | $ | 7,712 |
| | $ | 5,028 |
| | $ | 7,214 |
| | $ | 645 |
| | $ | 2,140 |
| | $ | 110,381 |
| Other adjustments | | (151 | ) | | (1,054 | ) | | (4 | ) | | (124 | ) | | — |
| | — |
| | — |
| | (1,333 | ) | Reclassification to/from allowance for unfunded lending-related commitments | | 45 |
| | 648 |
| | — |
| | — |
| | — |
| | — |
| | — |
| | 693 |
| Charge-offs | | (22,405 | ) | | (43,539 | ) | | (9,361 | ) | | (4,060 | ) | | (3,780 | ) | | (221 | ) | | (1,024 | ) | | (84,390 | ) | Recoveries | | 1,220 |
| | 6,635 |
| | 428 |
| | 22 |
| | 940 |
| | 103 |
| | 240 |
| | 9,588 |
| Provision for credit losses | | 18,848 |
| | 33,040 |
| | 13,959 |
| | 4,694 |
| | 1,722 |
| | (260 | ) | | 409 |
| | 72,412 |
| Allowance for loan losses at period end | | $ | 28,794 |
| | $ | 52,135 |
| | $ | 12,734 |
| | $ | 5,560 |
| | $ | 6,096 |
| | $ | 267 |
| | $ | 1,765 |
| | $ | 107,351 |
| Allowance for unfunded lending-related commitments at period end | | $ | — |
| | $ | 14,647 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 14,647 |
| Allowance for credit losses at period end | | $ | 28,794 |
| | $ | 66,782 |
| | $ | 12,734 |
| | $ | 5,560 |
| | $ | 6,096 |
| | $ | 267 |
| | $ | 1,765 |
| | $ | 121,998 |
| Individually evaluated for impairment | | $ | 3,296 |
| | $ | 20,481 |
| | $ | 2,569 |
| | $ | 1,169 |
| | $ | — |
| | $ | — |
| | $ | 142 |
| | $ | 27,657 |
| Collectively evaluated for impairment | | $ | 25,471 |
| | $ | 46,233 |
| | $ | 10,165 |
| | $ | 4,388 |
| | $ | 6,096 |
| | $ | 267 |
| | $ | 1,623 |
| | $ | 94,243 |
| Loans acquired with deteriorated credit quality | | $ | 27 |
| | $ | 68 |
| | $ | — |
| | $ | 3 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 98 |
| Loans at period end | | | | | | | | | | | | | | | | | Individually evaluated for impairment | | $ | 33,608 |
| | $ | 139,878 |
| | $ | 14,590 |
| | $ | 14,810 |
| | $ | — |
| | $ | 53 |
| | $ | 1,606 |
| | $ | 204,545 |
| Collectively evaluated for impairment | | 2,876,180 |
| | 3,668,164 |
| | 773,884 |
| | 351,547 |
| | 3,198,563 |
| | 77,280 |
| | 99,547 |
| | 11,045,165 |
| Loans acquired with deteriorated credit quality | | 5,010 |
| | 56,076 |
| | — |
| | 856 |
| | 514,459 |
| | — |
| | 2,832 |
| | 579,233 |
|
A summary of activity in the allowance for covered loan losses for the years ended December 31, 2013 and 2012 is as follows: | | | | | | | | | | | | Years Ended | | | December 31, | | December 31, | (Dollars in thousands) | | 2013 | | 2012 | Balance at beginning of period | | $ | 13,454 |
| | $ | 12,977 |
| Provision for covered loan losses before benefit attributable to FDIC loss share agreements | | 246 |
| | 20,282 |
| Benefit attributable to FDIC loss share agreements | | (197 | ) | | (16,258 | ) | Net provision for covered loan losses | | 49 |
| | 4,024 |
| Increase in FDIC indemnification asset | | 197 |
| | 16,258 |
| Loans charged-off | | (15,085 | ) | | (19,921 | ) | Recoveries of loans charged-off | | 11,477 |
| | 116 |
| Net charge-offs | | (3,608 | ) | | (19,805 | ) | Balance at end of period | | $ | 10,092 |
| | $ | 13,454 |
|
In conjunction with FDIC-assisted transactions, the Company entered into loss share agreements with the FDIC. Additional expected losses, to the extent such expected losses result in the recognition of an allowance for loan losses, will increase the FDIC indemnification asset. The allowance for loan losses for loans acquired in FDIC-assisted transactions is determined without giving consideration to the amounts recoverable through loss share agreements (since the loss share agreements are separately accounted for and thus presented “gross” on the balance sheet). On the Consolidated Statements of Income, the provision for credit losses is reported net of changes in the amount recoverable under the loss share agreements. Reductions to expected losses, to the extent such reductions to expected losses are the result of an improvement to the actual or expected cash flows from the covered assets, will reduce the FDIC indemnification asset. Additions to expected losses will require an increase to the allowance for loan losses, and a corresponding increase to the FDIC indemnification asset. See "FDIC-Assisted Transactions" within Note 8 - Business Combinations for more detail. Impaired Loans A summary of impaired loans, including TDRs, at December 31, 2013 and 2012 is as follows: | | | | | | | | | | (Dollars in thousands) | | 2013 | | 2012 | Impaired loans (included in non-performing and restructured loans): | | | | | Impaired loans with an allowance for loan loss required (1) | | $ | 92,184 |
| | $ | 89,983 |
| Impaired loans with no allowance for loan loss required | | 70,045 |
| | 114,562 |
| Total impaired loans (2) | | $ | 162,229 |
| | $ | 204,545 |
| Allowance for loan losses related to impaired loans | | $ | 8,265 |
| | $ | 13,575 |
| Troubled debt restructurings | | $ | 107,103 |
| | $ | 126,473 |
| Reduction of interest income from non-accrual loans | | $ | 3,971 |
| | $ | 3,866 |
| Interest income recognized on impaired loans | | $ | 8,920 |
| | $ | 10,819 |
|
| | (1) | These impaired loans require an allowance for loan losses because the estimated fair value of the loans or related collateral is less than the recorded investment in the loans. |
| | (2) | Impaired loans are considered by the Company to be non-accrual loans, TDRs or loans with principal and/or interest at risk, even if the loan is current with all payments of principal and interest. |
The following tables present impaired loans evaluated for impairment by loan class as of December 31, 2013 and 2012: | | | | | | | | | | | | | | | | | | | | | | | | As of | | For the Year Ended | December 31, 2013 (Dollars in thousands) | | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | Average Recorded Investment | | Interest Income Recognized | Impaired loans with a related ASC 310 allowance recorded | | | | | | | | | Commercial | | | | | | | | | | | Commercial and industrial | | $ | 6,297 |
| | $ | 7,001 |
| | $ | 1,078 |
| | $ | 6,611 |
| | $ | 354 |
| Franchise | | — |
| | — |
| | — |
| | — |
| | — |
| Mortgage warehouse lines of credit | | — |
| | — |
| | — |
| | — |
| | — |
| Community Advantage—homeowners association | | — |
| | — |
| | — |
| | — |
| | — |
| Aircraft | | — |
| | — |
| | — |
| | — |
| | — |
| Asset-based lending | | 282 |
| | 294 |
| | 282 |
| | 295 |
| | 14 |
| Tax exempt | | — |
| | — |
| | — |
| | — |
| | — |
| Leases | | — |
| | — |
| | — |
| | — |
| | — |
| Other | | — |
| | — |
| | — |
| | — |
| | — |
| Commercial real-estate | | | | | | | | | | | Residential construction | | — |
| | — |
| | — |
| | — |
| | — |
| Commercial construction | | 3,099 |
| | 3,099 |
| | 18 |
| | 3,098 |
| | 115 |
| Land | | 10,518 |
| | 11,871 |
| | 259 |
| | 10,323 |
| | 411 |
| Office | | 7,792 |
| | 8,444 |
| | 1,253 |
| | 8,148 |
| | 333 |
| Industrial | | 3,385 |
| | 3,506 |
| | 193 |
| | 3,638 |
| | 179 |
| Retail | | 17,511 |
| | 17,638 |
| | 1,253 |
| | 17,678 |
| | 724 |
| Multi-family | | 3,237 |
| | 3,730 |
| | 235 |
| | 2,248 |
| | 139 |
| Mixed use and other | | 28,935 |
| | 29,051 |
| | 1,366 |
| | 26,792 |
| | 1,194 |
| Home equity | | 3,985 |
| | 5,238 |
| | 1,593 |
| | 4,855 |
| | 236 |
| Residential real estate | | 6,876 |
| | 7,023 |
| | 626 |
| | 6,335 |
| | 273 |
| Premium finance receivables | | | | | | | | | | | Commercial insurance | | — |
| | — |
| | — |
| | — |
| | — |
| Life insurance | | — |
| | — |
| | — |
| | — |
| | — |
| Purchased life insurance | | — |
| | — |
| | — |
| | — |
| | — |
| Indirect consumer | | — |
| | — |
| | — |
| | — |
| | — |
| Consumer and other | | 267 |
| | 269 |
| | 109 |
| | 273 |
| | 11 |
| Impaired loans with no related ASC 310 allowance recorded | | | | | | | | | Commercial | | | | | | | | | | | Commercial and industrial | | $ | 9,890 |
| | $ | 16,333 |
| | $ | — |
| | $ | 13,928 |
| | $ | 1,043 |
| Franchise | | — |
| | — |
| | — |
| | — |
| | — |
| Mortgage warehouse lines of credit | | — |
| | — |
| | — |
| | — |
| | — |
| Community Advantage—homeowners association | | — |
| | — |
| | — |
| | — |
| | — |
| Aircraft | | — |
| | — |
| | — |
| | — |
| | — |
| Asset-based lending | | 354 |
| | 2,311 |
| | — |
| | 2,162 |
| | 121 |
| Tax exempt | | — |
| | — |
| | — |
| | — |
| | — |
| Leases | | — |
| | — |
| | — |
| | — |
| | — |
| Other | | — |
| | — |
| | — |
| | — |
| | — |
| Commercial real-estate | | | | | | | | | | | Residential construction | | 1,463 |
| | 1,530 |
| | — |
| | 1,609 |
| | 64 |
| Commercial construction | | 7,710 |
| | 13,227 |
| | — |
| | 9,680 |
| | 722 |
| Land | | 5,035 |
| | 8,813 |
| | — |
| | 5,384 |
| | 418 |
| Office | | 10,379 |
| | 11,717 |
| | — |
| | 10,925 |
| | 610 |
| Industrial | | 5,087 |
| | 5,267 |
| | — |
| | 5,160 |
| | 328 |
| Retail | | 7,047 |
| | 8,610 |
| | — |
| | 8,462 |
| | 400 |
| Multi-family | | 608 |
| | 1,030 |
| | — |
| | 903 |
| | 47 |
| Mixed use and other | | 4,077 |
| | 6,213 |
| | — |
| | 5,046 |
| | 352 |
| Home equity | | 6,312 |
| | 7,790 |
| | — |
| | 6,307 |
| | 324 |
| Residential real estate | | 10,761 |
| | 13,585 |
| | — |
| | 9,443 |
| | 393 |
| Premium finance receivables | | | | | | | | | | | Commercial insurance | | — |
| | — |
| | — |
| | — |
| | — |
| Life insurance | | — |
| | — |
| | — |
| | — |
| | — |
| Purchased life insurance | | — |
| | — |
| | — |
| | — |
| | — |
| Indirect consumer | | 55 |
| | 61 |
| | — |
| | 48 |
| | 6 |
| Consumer and other | | 1,267 |
| | 1,804 |
| | — |
| | 1,307 |
| | 109 |
| Total loans, net of unearned income, excluding covered loans | | $ | 162,229 |
| | $ | 195,455 |
| | $ | 8,265 |
| | $ | 170,658 |
| | $ | 8,920 |
|
| | | | | | | | | | | | | | | | | | | | | | | | As of | | For the Year Ended | December 31, 2012 (Dollars in thousands) | | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | Average Recorded Investment | | Interest Income Recognized | Impaired loans with a related ASC 310 allowance recorded | | | | | | | | | Commercial | | | | | | | | | | | Commercial and industrial | | $ | 11,010 |
| | $ | 12,562 |
| | $ | 1,982 |
| | $ | 13,312 |
| | $ | 881 |
| Franchise | | 1,792 |
| | 1,792 |
| | 1,259 |
| | 1,792 |
| | 122 |
| Mortgage warehouse lines of credit | | — |
| | — |
| | — |
| | — |
| | — |
| Community Advantage—homeowners association | | — |
| | — |
| | — |
| | — |
| | — |
| Aircraft | | — |
| | — |
| | — |
| | — |
| | — |
| Asset-based lending | | 511 |
| | 511 |
| | 55 |
| | 484 |
| | 26 |
| Tax exempt | | — |
| | — |
| | — |
| | — |
| | — |
| Leases | | — |
| | — |
| | — |
| | — |
| | — |
| Other | | — |
| | — |
| | — |
| | — |
| | — |
| Commercial real-estate | | | | | | | | | | | Residential construction | | 2,007 |
| | 2,007 |
| | 389 |
| | 2,007 |
| | 98 |
| Commercial construction | | 1,865 |
| | 1,865 |
| | 70 |
| | 1,865 |
| | 78 |
| Land | | 12,184 |
| | 12,860 |
| | 1,414 |
| | 12,673 |
| | 483 |
| Office | | 5,829 |
| | 5,887 |
| | 622 |
| | 5,936 |
| | 246 |
| Industrial | | 1,150 |
| | 1,200 |
| | 224 |
| | 1,208 |
| | 75 |
| Retail | | 13,240 |
| | 13,314 |
| | 343 |
| | 13,230 |
| | 584 |
| Multi-family | | 3,954 |
| | 3,954 |
| | 348 |
| | 3,972 |
| | 157 |
| Mixed use and other | | 22,249 |
| | 23,166 |
| | 2,989 |
| | 23,185 |
| | 1,165 |
| Home equity | | 7,270 |
| | 7,313 |
| | 2,569 |
| | 7,282 |
| | 271 |
| Residential real estate | | 6,420 |
| | 6,931 |
| | 1,169 |
| | 6,424 |
| | 226 |
| Premium finance receivables | | | | | | | | | | | Commercial insurance | | — |
| | — |
| | — |
| | — |
| | — |
| Life insurance | | — |
| | — |
| | — |
| | — |
| | — |
| Purchased life insurance | | — |
| | — |
| | — |
| | — |
| | — |
| Indirect consumer | | — |
| | — |
| | — |
| | — |
| | — |
| Consumer and other | | 502 |
| | 502 |
| | 142 |
| | 502 |
| | 26 |
| Impaired loans with no related ASC 310 allowance recorded | | | | | | | | | Commercial | | | | | | | | | | | Commercial and industrial | | $ | 20,270 |
| | $ | 27,574 |
| | $ | — |
| | $ | 23,877 |
| | $ | 1,259 |
| Franchise | | — |
| | — |
| | — |
| | — |
| | — |
| Mortgage warehouse lines of credit | | — |
| | — |
| | — |
| | — |
| | — |
| Community Advantage—homeowners association | | — |
| | — |
| | — |
| | — |
| | — |
| Aircraft | | — |
| | — |
| | — |
| | — |
| | — |
| Asset-based lending | | 25 |
| | 1,362 |
| | — |
| | 252 |
| | 76 |
| Tax exempt | | — |
| | — |
| | — |
| | — |
| | — |
| Leases | | — |
| | — |
| | — |
| | — |
| | — |
| Other | | — |
| | — |
| | — |
| | — |
| | — |
| Commercial real-estate | | | | | | | | | | | Residential construction | | 4,085 |
| | 4,440 |
| | — |
| | 4,507 |
| | 143 |
| Commercial construction | | 12,263 |
| | 13,395 |
| | — |
| | 13,635 |
| | 540 |
| Land | | 12,163 |
| | 17,141 |
| | — |
| | 14,646 |
| | 906 |
| Office | | 8,939 |
| | 9,521 |
| | — |
| | 9,432 |
| | 437 |
| Industrial | | 3,598 |
| | 3,776 |
| | — |
| | 3,741 |
| | 181 |
| Retail | | 18,073 |
| | 18,997 |
| | — |
| | 19,067 |
| | 892 |
| Multi-family | | 2,817 |
| | 4,494 |
| | — |
| | 4,120 |
| | 222 |
| Mixed use and other | | 15,462 |
| | 17,210 |
| | — |
| | 16,122 |
| | 912 |
| Home equity | | 7,320 |
| | 8,758 |
| | — |
| | 8,164 |
| | 376 |
| Residential real estate | | 8,390 |
| | 9,189 |
| | — |
| | 9,069 |
| | 337 |
| Premium finance receivables | | | | | | | | | | | Commercial insurance | | — |
| | — |
| | — |
| | — |
| | — |
| Life insurance | | — |
| | — |
| | — |
| | — |
| | — |
| Purchased life insurance | | — |
| | — |
| | — |
| | — |
| | — |
| Indirect consumer | | 53 |
| | 61 |
| | — |
| | 65 |
| | 6 |
| Consumer and other | | 1,104 |
| | 1,558 |
| | — |
| | 1,507 |
| | 94 |
| Total loans, net of unearned income, excluding covered loans | | $ | 204,545 |
| | $ | 231,340 |
| | $ | 13,575 |
| | $ | 222,076 |
| | $ | 10,819 |
|
Average recorded investment in impaired loans for the years ended December 31, 2013, 2012, and 2011 were $170.7 million, $222.1 million, and $247.1 million, respectively. Interest income recognized on impaired loans was $8.9 million, $10.8 million, and $12.5 million for the years ended December 31, 2013, 2012, and 2011, respectively.
TDRs At December 31, 2013, the Company had $107.1 million in loans modified in TDRs. The $107.1 million in TDRs represents 149 credits in which economic concessions were granted to certain borrowers to better align the terms of their loans with their current ability to pay. The Company’s approach to restructuring loans, excluding those acquired with evidence of credit quality deterioration since origination, is built on its credit risk rating system which requires credit management personnel to assign a credit risk rating to each loan. In each case, the loan officer is responsible for recommending a credit risk rating for each loan and ensuring the credit risk ratings are appropriate. These credit risk ratings are then reviewed and approved by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including a borrower’s financial strength, cash flow coverage, collateral protection and guarantees. The Company’s credit risk rating scale is one through ten with higher scores indicating higher risk. In the case of loans rated six or worse following modification, the Company’s Managed Assets Division evaluates the loan and the credit risk rating and determines that the loan has been restructured to be reasonably assured of repayment and of performance according to the modified terms and is supported by a current, well-documented credit assessment of the borrower’s financial condition and prospects for repayment under the revised terms. A modification of a loan, excluding those acquired with evidence of credit quality deterioration since origination, with an existing credit risk rating of six or worse or a modification of any other credit, which will result in a restructured credit risk rating of six or worse must be reviewed for possible TDR classification. In that event, our Managed Assets Division conducts an overall credit and collateral review. A modification of these loans is considered to be a TDR if both (1) the borrower is experiencing financial difficulty and (2) for economic or legal reasons, the bank grants a concession to a borrower that it would not otherwise consider. The modification of a loan, excluding those acquired with evidence of credit quality deterioration since origination, where the credit risk rating is five or better both before and after such modification is not considered to be a TDR. Based on the Company’s credit risk rating system, it considers that borrowers whose credit risk rating is five or better are not experiencing financial difficulties and therefore, are not considered TDRs. All credits determined to be a TDR will continue to be classified as a TDR in all subsequent periods, unless the borrower has been in compliance with the loan’s modified terms for a period of six months (including over a calendar year-end) and the modified interest rate represented a market rate at the time of a restructuring. The Managed Assets Division, in consultation with the respective loan officer, determines whether the modified interest rate represented a current market rate at the time of restructuring. Using knowledge of current market conditions and rates, competitive pricing on recent loan originations, and an assessment of various characteristics of the modified loan (including collateral position and payment history), an appropriate market rate for a new borrower with similar risk is determined. If the modified interest rate meets or exceeds this market rate for a new borrower with similar risk, the modified interest rate represents a market rate at the time of restructuring. Additionally, before removing a loan from TDR classification, a review of the current or previously measured impairment on the loan and any concerns related to future performance by the borrower is conducted. If concerns exist about the future ability of the borrower to meet its obligations under the loans based on a credit review by the Managed Assets Division, the TDR classification is not removed from the loan. Loans classified as TDRs that are re-modified subsequent to the initial determination will continue to be classified as a TDRs following the re-modification, unless the requirements for removal from TDR classification discussed above are satisfied at the time of the re-modification. TDRs are reviewed at the time of modification and on a quarterly basis to determine if a specific reserve is necessary. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan’s original rate, or for collateral dependent loans, to the fair value of the collateral less the estimated cost to sell. Any shortfall is recorded as a specific reserve. The Company, in accordance with ASC 310-10, continues to individually measure impairment of these loans after the TDR classification is removed. Each TDR was reviewed for impairment at December 31, 2013 and approximately $4.8 million of impairment was present and appropriately reserved for through the Company’s normal reserving methodology in the Company’s allowance for loan losses. For TDRs in which impairment is calculated by the present value of future cash flows, the Company records interest income representing the decrease in impairment resulting from the passage of time during the respective period, which differs from interest income from contractually required interest on these specific loans. For the year-ended December 31, 2013 and 2012, the Company recorded $901,000 and $1.3 million, respectively, in interest income representing this decrease in impairment.
The tables below present a summary of the post-modification balance of loans restructured during the years ended December 31, 2013, 2012, and 2011, which represent TDRs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, 2013 | | Total (1)(2) | | Extension at Below Market Terms (2) | | Reduction of Interest Rate (2) | | Modification to Interest-only Payments (2) | | Forgiveness of Debt (2) | (Dollars in thousands) | | Count | | Balance | | Count | | Balance | | Count | | Balance | | Count | | Balance | | Count | | Balance | Commercial | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | 6 |
| | $ | 708 |
| | 5 |
| | $ | 573 |
| | 4 |
| | $ | 553 |
| | 2 |
| | $ | 185 |
| | — |
| | $ | — |
| Commercial real-estate | | | | | | | | | | | | | | | | | | | | | Residential construction | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Commercial construction | | 3 |
| | 6,120 |
| | 3 |
| | 6,120 |
| | — |
| | — |
| | 3 |
| | 6,120 |
| | — |
| | — |
| Land | | 3 |
| | 2,639 |
| | 3 |
| | 2,639 |
| | 2 |
| | 287 |
| | — |
| | — |
| | 1 |
| | 73 |
| Office | | 4 |
| | 4,021 |
| | 4 |
| | 4,021 |
| | 1 |
| | 556 |
| | — |
| | — |
| | — |
| | — |
| Industrial | | 1 |
| | 949 |
| | 1 |
| | 949 |
| | 1 |
| | 949 |
| | — |
| | — |
| | — |
| | — |
| Retail | | 1 |
| | 200 |
| | 1 |
| | 200 |
| | 1 |
| | 200 |
| | — |
| | — |
| | — |
| | — |
| Multi-family | | 1 |
| | 705 |
| | 1 |
| | 705 |
| | 1 |
| | 705 |
| | — |
| | — |
| | — |
| | — |
| Mixed use and other | | 6 |
| | 5,042 |
| | 6 |
| | 5,042 |
| | 5 |
| | 4,947 |
| | 1 |
| | 932 |
| | — |
| | — |
| Residential real estate and other | | 10 |
| | 2,296 |
| | 6 |
| | 1,613 |
| | 7 |
| | 931 |
| | 2 |
| | 234 |
| | 1 |
| | 1,000 |
| Total loans | | 35 |
| | $ | 22,680 |
| | 30 |
| | $ | 21,862 |
| | 22 |
| | $ | 9,128 |
| | 8 |
| | $ | 7,471 |
| | 2 |
| | $ | 1,073 |
| | | | | | | | | | | | | | | | | | | | | | Year ended December 31, 2012 | | Total (1)(2) | | Extension at Below Market Terms (2) | | Reduction of Interest Rate (2) | | Modification to Interest-only Payments (2) | | Forgiveness of Debt (2) | (Dollars in thousands) | | Count | | Balance | | Count | | Balance | | Count | | Balance | | Count | | Balance | | Count | | Balance | Commercial | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | 18 |
| | $ | 14,311 |
| | 11 |
| | $ | 3,603 |
| | 11 |
| | $ | 13,691 |
| | 7 |
| | $ | 10,579 |
| | 3 |
| | $ | 2,311 |
| Commercial real-estate | | | | | | | | | | | | | | | | | | | | | Residential construction | | 3 |
| | 2,147 |
| | 3 |
| | 2,147 |
| | 1 |
| | 496 |
| | 1 |
| | 496 |
| | — |
| | — |
| Commercial construction | | 2 |
| | 622 |
| | 2 |
| | 622 |
| | 2 |
| | 622 |
| | 2 |
| | 622 |
| | — |
| | — |
| Land | | 17 |
| | 31,836 |
| | 17 |
| | 31,836 |
| | 14 |
| | 30,561 |
| | 13 |
| | 26,511 |
| | — |
| | — |
| Office | | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| | — |
| Industrial | | 1 |
| | 727 |
| | 1 |
| | 727 |
| | 1 |
| | 727 |
| | — |
| | — |
| | — |
| | — |
| Retail | | 8 |
| | 13,518 |
| | 8 |
| | 13,518 |
| | 6 |
| | 8,865 |
| | 6 |
| | 12,897 |
| | — |
| | — |
| Multi-family | | 1 |
| | 380 |
| | — |
| | — |
| | 1 |
| | 380 |
| | 1 |
| | 380 |
| | — |
| | — |
| Mixed use and other | | 15 |
| | 7,333 |
| | 9 |
| | 4,769 |
| | 11 |
| | 6,268 |
| | 8 |
| | 3,974 |
| | — |
| | — |
| Residential real estate and other | | 10 |
| | 1,638 |
| | 8 |
| | 1,390 |
| | 6 |
| | 631 |
| | 3 |
| | 924 |
| | 1 |
| | 29 |
| Total loans | | 75 |
| | $ | 72,512 |
| | 59 |
| | $ | 58,612 |
| | 53 |
| | $ | 62,241 |
| | 41 |
| | $ | 56,383 |
| | 4 |
| | $ | 2,340 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year ended December 31, 2011 | | Total (1)(2) | | Extension at Below Market Terms (2) | | Reduction of Interest Rate (2) | | Modification to Interest-only Payments (2) | | Forgiveness of Debt (2) | (Dollars in thousands) | | Count | | Balance | | Count | | Balance | | Count | | Balance | | Count | | Balance | | Count | | Balance | Commercial | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | 24 |
| | $ | 6,956 |
| | 11 |
| | $ | 2,273 |
| | 14 |
| | $ | 1,933 |
| | 13 |
| | $ | 3,780 |
| | 2 |
| | $ | 135 |
| Commercial real-estate | | | | | | | | | | | | | | | | | | | | | Residential construction | | 1 |
| | 1,105 |
| | 1 |
| | 1,105 |
| | — |
| | — |
| | 1 |
| | 1,105 |
| | — |
| | — |
| Commercial construction | | 8 |
| | 12,140 |
| | 7 |
| | 11,673 |
| | 3 |
| | 9,402 |
| | 1 |
| | 467 |
| | — |
| | — |
| Land | | 7 |
| | 7,971 |
| | 7 |
| | 7,971 |
| | 2 |
| | 2,981 |
| | — |
| | — |
| | — |
| | — |
| Office | | 9 |
| | 8,870 |
| | 6 |
| | 4,780 |
| | 6 |
| | 4,036 |
| | 3 |
| | 4,292 |
| | — |
| | — |
| Industrial | | 5 |
| | 5,334 |
| | 5 |
| | 5,334 |
| | 4 |
| | 3,494 |
| | 2 |
| | 2,181 |
| | — |
| | — |
| Retail | | 14 |
| | 19,113 |
| | 11 |
| | 16,981 |
| | 5 |
| | 3,963 |
| | 5 |
| | 5,191 |
| | — |
| | — |
| Multi-family | | 6 |
| | 4,415 |
| | 6 |
| | 4,415 |
| | 5 |
| | 3,866 |
| | — |
| | — |
| | — |
| | — |
| Mixed use and other | | 33 |
| | 28,708 |
| | 21 |
| | 14,775 |
| | 28 |
| | 25,921 |
| | 10 |
| | 8,068 |
| | — |
| | — |
| Residential real estate and other | | 16 |
| | 5,916 |
| | 7 |
| | 2,326 |
| | 13 |
| | 5,262 |
| | 4 |
| | 1,390 |
| | — |
| | — |
| Total loans | | 123 |
| | $ | 100,528 |
| | 82 |
| | $ | 71,633 |
| | 80 |
| | $ | 60,858 |
| | 39 |
| | $ | 26,474 |
| | 2 |
| | $ | 135 |
|
| | (1) | TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above. |
| | (2) | Balances represent the recorded investment in the loan at the time of the restructuring. |
During the year ended December 31, 2013, $22.7 million, or 35 loans, were determined to be TDRs, compared to $72.5 million, or 75 loans, and $100.5 million, or 123 loans, in the years ended 2012 and 2011, respectively. Of these loans extended at below market terms, the weighted average extension had a term of approximately 18 months in 2013 compared to nine months in 2012 and 11 months in 2011. Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 184 basis points, 157 basis points and 192 basis points during the years ended December 31, 2013, 2012, and 2011, respectively. Interest-only payment terms were approximately 11 months during the year ended 2013 compared to five months and nine months for the years ended 2012 and 2011, respectively. Additionally, approximately $1.0 million of principal balance was forgiven during 2013, compared to $800,000 and $67,000 forgiven during 2012 and 2011, respectively. The tables below present a summary of all loans restructured in TDRs during the years ended December 31, 2013, 2012, and 2011, and such loans which were in payment default under the restructured terms during the respective periods: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2013 | | Year Ended December 31, 2012 | | Year Ended December 31, 2011 | | | Total (1)(3) | | Payments in Default (2)(3) | | Total (1)(3) | | Payments in Default (2)(3) | | Total (1)(3) | | Payments in Default (2)(3) | (Dollars in thousands) | | Count | | Balance | | Count | | Balance | | Count | | Balance | | Count | | Balance | | Count | | Balance | | Count | | Balance | Commercial | | | | | | | | | | | | | | | | | | | | | | | | | Commercial and industrial | | 6 |
| | $ | 708 |
| | 1 |
| | $ | 20 |
| | 18 |
| | $ | 14,311 |
| | 4 |
| | $ | 9,925 |
| | 24 |
| | $ | 6,956 |
| | 6 |
| | $ | 1,742 |
| Commercial real-estate | | | | | | | | | | | | | | | | | | | | | | | | | Residential construction | | — |
| | — |
| | — |
| | — |
| | 3 |
| | 2,147 |
| | — |
| | — |
| | 1 |
| | 1,105 |
| | — |
| | — |
| Commercial construction | | 3 |
| | 6,120 |
| | — |
| | — |
| | 2 |
| | 622 |
| | 2 |
| | 622 |
| | 8 |
| | 12,140 |
| | 1 |
| | 467 |
| Land | | 3 |
| | 2,639 |
| | 1 |
| | 215 |
| | 17 |
| | 31,836 |
| | 2 |
| | 3,786 |
| | 7 |
| | 7,971 |
| | 2 |
| | 1,667 |
| Office | | 4 |
| | 4,021 |
| | 1 |
| | 1,648 |
| | — |
| | — |
| | — |
| | — |
| | 9 |
| | 8,870 |
| | 2 |
| | 2,239 |
| Industrial | | 1 |
| | 949 |
| | — |
| | — |
| | 1 |
| | 727 |
| | — |
| | — |
| | 5 |
| | 5,334 |
| | 2 |
| | 3,224 |
| Retail | | 1 |
| | 200 |
| | — |
| | — |
| | 8 |
| | 13,518 |
| | 1 |
| | 3,607 |
| | 14 |
| | 19,113 |
| | 2 |
| | 2,694 |
| Multi-family | | 1 |
| | 705 |
| | 1 |
| | 705 |
| | 1 |
| | 380 |
| | — |
| | — |
| | 6 |
| | 4,415 |
| | — |
| | — |
| Mixed use and other | | 6 |
| | 5,042 |
| | 1 |
| | 95 |
| | 15 |
| | 7,333 |
| | 4 |
| | 1,445 |
| | 33 |
| | 28,708 |
| | 6 |
| | 5,283 |
| Residential real estate and other | | 10 |
| | 2,296 |
| | — |
| | — |
| | 10 |
| | 1,638 |
| | 5 |
| | 1,168 |
| | 16 |
| | 5,916 |
| | 4 |
| | 908 |
| Total loans | | 35 |
| | $ | 22,680 |
| | 5 |
| | $ | 2,683 |
| | 75 |
| | $ | 72,512 |
| | 18 |
| | $ | 20,553 |
| | 123 |
| | $ | 100,528 |
| | 25 |
| | $ | 18,224 |
|
| | (1) | Total TDRs represent all loans restructured in TDRs during the year indicated. |
| | (2) | TDRs considered to be in payment default are over 30 days past-due subsequent to the restructuring. |
| | (3) | Balances represent the recorded investment in the loan at the time of the restructuring. |
|