XML 52 R37.htm IDEA: XBRL DOCUMENT v3.8.0.1
Loans and Leases (Tables)
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Summary of Major Loan and Lease Categories
 
At December 31, 2017
(Dollars in thousands)
Originated
 
Acquired
 
Total
Commercial, financial and agricultural
$
833,100

 
$
63,111

 
$
896,211

Real estate-commercial
1,235,681

 
306,460

 
1,542,141

Real estate-construction
171,244

 
4,592

 
175,836

Real estate-residential secured for business purpose
250,800

 
91,167

 
341,967

Real estate-residential secured for personal purpose
260,654

 
60,920

 
321,574

Real estate-home equity secured for personal purpose
171,884

 
12,386

 
184,270

Loans to individuals
28,156

 
144

 
28,300

Lease financings
129,768

 
—

 
129,768

Total loans and leases held for investment, net of deferred income
$
3,081,287

 
$
538,780

 
$
3,620,067

 
 
 
 
 
 
Unearned lease income, included in the above table
$
(14,243
)
 
$
—

 
$
(14,243
)
Net deferred costs, included in the above table
4,669

 
—

 
4,669

Overdraft deposits included in the above table
222

 
—

 
222
Schedule of Impaired Loans
The outstanding principal balance and carrying amount for acquired credit impaired loans at December 31, 2017 and 2016 were as follows:
(Dollars in thousands)
At December 31, 2017
 
At December 31, 2016
Outstanding principal balance
$
2,325

 
$
8,993

Carrying amount
1,583

 
7,352

Allowance for loan losses
—

 
—

The following table presents the changes in accretable yield on acquired credit impaired loans:
 
For the Years Ended December 31,
(Dollars in thousands)
2017
 
2016
Beginning of period
$
50

 
$
144

Acquisition of credit impaired loans
—

 
283

Reclassification from nonaccretable discount
891

 
1,329

Accretable yield amortized to interest income
(926
)
 
(1,672
)
Disposals
(4
)
 
(34
)
End of period
$
11

 
$
50

The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans, the amounts of the impaired loans for which there is not a reserve for credit losses and the amounts for which there is a reserve for credit losses at December 31, 2017 and 2016. The impaired loans exclude acquired credit impaired loans.
 
At December 31,
 
2017
 
2016
(Dollars in thousands)
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Reserve
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Reserve
Impaired loans with no related reserve recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
$
7,019

 
$
8,301

 
 
 
$
10,911

 
$
12,561

 
 
Real estate—commercial real estate
15,621

 
16,507

 
 
 
24,469

 
25,342

 
 
Real estate—construction
365

 
365

 
 
 
—

 
—

 
 
Real estate—residential secured for business purpose
3,430

 
4,620

 
 
 
5,704

 
6,253

 
 
Real estate—residential secured for personal purpose
508

 
566

 
 
 
560

 
594

 
 
Real estate—home equity secured for personal purpose
511

 
523

 
 
 
525

 
528

 
 
Total impaired loans with no related reserve recorded
$
27,454

 
$
30,882

 
 
 
$
42,169

 
$
45,278

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Impaired loans with a reserve recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
$
60

 
$
60

 
$
31

 
$
166

 
$
166

 
$
19

Real estate—commercial real estate
933

 
933

 
99

 
597

 
597

 
25

Real estate—residential secured for business purpose
35

 
37

 
1

 
983

 
1,105

 
191

Total impaired loans with a reserve recorded
$
1,028

 
$
1,030

 
$
131

 
$
1,746

 
$
1,868

 
$
235

 
 
 
 
 
 
 
 
 
 
 
 
Total impaired loans:
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
$
7,079

 
$
8,361

 
$
31

 
$
11,077

 
$
12,727

 
$
19

Real estate—commercial real estate
16,554

 
17,440

 
99

 
25,066

 
25,939

 
25

Real estate—construction
365

 
365

 
—

 
—

 
—

 
—

Real estate—residential secured for business purpose
3,465

 
4,657

 
1

 
6,687

 
7,358

 
191

Real estate—residential secured for personal purpose
508

 
566

 
—

 
560

 
594

 
—

Real estate—home equity secured for personal purpose
511

 
523

 
—

 
525

 
528

 
—

Total impaired loans
$
28,482

 
$
31,912

 
$
131

 
$
43,915

 
$
47,146

 
$
235

The following is a summary of the acquired impaired loans at July 1, 2016 resulting from the acquisition with Fox Chase:
(Dollars in thousands)
 
 
 
Contractually required principal and interest payments
$
—

Contractual cash flows not expected to be collected (nonaccretable difference)
—

Cash flows expected to be collected
—

Interest component of expected cash flows (accretable discount)
—

Fair value of loans acquired with a deterioration of credit quality
$
—
Schedule of Future Minimum Lease Payments for Capital Leases
At December 31, 2017 and 2016, the schedule of minimum lease payments receivable is as follows:
 
At December 31,
(Dollars in thousands)
2017
 
2016
Within 1 year
$
53,625

 
$
56,872

After 1 year through 2 years
41,351

 
41,931

After 2 years through 3 years
27,411

 
28,340

After 3 years through 4 years
15,557

 
16,369

After 4 years through 5 years
5,375

 
6,753

Thereafter
692

 
444

Total future minimum lease payments receivable
144,011

 
150,709

Less: Unearned income
(14,243
)
 
(15,970
)
Total lease financing receivables, net of unearned income
$
129,768

 
$
134,739
Schedule of Age Analysis of Past Due Loans and Leases
The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases 90 days or more past due which are accruing interest at December 31, 2017 and 2016:
(Dollars in thousands)
30-59
Days
Past Due
 
60-89
Days
Past Due
 
90 Days
or more
Past Due
 
Total
Past Due
 
Current
 
Acquired Credit Impaired
 
Total Loans
and Leases
Held for
Investment
 
Recorded
Investment 90
Days or more
Past Due and
Accruing
Interest
At December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
$
2,182

 
$
1,440

 
$
1,509

 
$
5,131

 
$
890,658

 
$
422

 
$
896,211

 
$
—

Real estate—commercial real estate and construction:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
733

 
548

 
1,410

 
2,691

 
1,539,094

 
356

 
1,542,141

 
—

Construction
1,970

 
—

 
365

 
2,335

 
173,501

 
—

 
175,836

 
—

Real estate—residential and home equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential secured for business purpose
1,651

 
315

 
1,355

 
3,321

 
338,061

 
585

 
341,967

 
162

Residential secured for personal purpose
4,368

 
1,118

 
23

 
5,509

 
315,845

 
220

 
321,574

 
—

Home equity secured for personal purpose
1,414

 
333

 
464

 
2,211

 
182,059

 
—

 
184,270

 
148

Loans to individuals
221

 
139

 
195

 
555

 
27,745

 
—

 
28,300

 
195

Lease financings
1,143

 
392

 
1,855

 
3,390

 
126,378

 
—

 
129,768

 
256

Total
$
13,682

 
$
4,285

 
$
7,176

 
$
25,143

 
$
3,593,341

 
$
1,583

 
$
3,620,067

 
$
761

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
$
1,536

 
$
256

 
$
1,335

 
$
3,127

 
$
819,550

 
$
589

 
$
823,266

 
$
—

Real estate—commercial real estate and construction:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
1,482

 
1,560

 
2,591

 
5,633

 
1,363,606

 
5,710

 
1,374,949

 
—

Construction
202

 
—

 
—

 
202

 
174,642

 
—

 
174,844

 
—

Real estate—residential and home equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential secured for business purpose
1,390

 
428

 
1,539

 
3,357

 
289,927

 
784

 
294,068

 
—

Residential secured for personal purpose
3,243

 
905

 
879

 
5,027

 
285,512

 
269

 
290,808

 
481

Home equity secured for personal purpose
717

 
142

 
521

 
1,380

 
161,459

 
—

 
162,839

 
171

Loans to individuals
324

 
95

 
142

 
561

 
29,812

 
—

 
30,373

 
142

Lease financings
1,731

 
1,418

 
729

 
3,878

 
130,861

 
—

 
134,739

 
193

Total
$
10,625

 
$
4,804

 
$
7,736

 
$
23,165

 
$
3,255,369

 
$
7,352

 
$
3,285,886

 
$
987
Schedule of Non-Performing Loans and Leases
The following presents, by class of loans and leases, nonperforming loans and leases at December 31, 2017 and 2016. Nonperforming loans exclude acquired credit impaired loans from Fox Chase and Valley Green.
 
At December 31,
 
2017
 
2016
(Dollars in thousands)
Nonaccrual
Loans and
Leases*
 
Accruing
Troubled
Debt
Restructured
Loans and
Lease
Modifications
 
Loans and
Leases
90 Days
or more
Past Due
and
Accruing
Interest
 
Total Nonperforming
Loans and
Leases
 
Nonaccrual
Loans and
Leases*
 
Accruing
Troubled
Debt
Restructured
Loans and
Lease
Modifications
 
Loans and
Leases
90 Days
or more
Past Due
and
Accruing
Interest
 
Total Nonperforming
Loans and
Leases
Commercial, financial and agricultural
$
4,448

 
$
921

 
$
—

 
$
5,369

 
$
5,746

 
$
967

 
$
—

 
$
6,713

Real estate—commercial real estate and construction:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
4,285

 
10,266

 
—

 
14,551

 
5,651

 
1,519

 
—

 
7,170

Construction
365

 
—

 
—

 
365

 
—

 
—

 
—

 
—

Real estate—residential and home equity:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential secured for business purpose
2,843

 
206

 
162

 
3,211

 
4,898

 
766

 
—

 
5,664

Residential secured for personal purpose
466

 
42

 
—

 
508

 
560

 
—

 
481

 
1,041

Home equity secured for personal purpose
511

 
—

 
148

 
659

 
525

 
—

 
171

 
696

Loans to individuals
—

 
—

 
195

 
195

 
—

 
—

 
142

 
142

Lease financings
1,599

 
—

 
256

 
1,855

 
536

 
—

 
193

 
729

Total
$
14,517

 
$
11,435

 
$
761

 
$
26,713

 
$
17,916

 
$
3,252

 
$
987

 
$
22,155

 * Includes nonaccrual troubled debt restructured loans and lease modifications of $2.5 million and $1.8 million at December 31, 2017 and December 31, 2016, respectively.
Summary of Credit Quality Indicators
The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at December 31, 2017 and 2016.
The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with a relationship balance of less than $1 million are reviewed on a performance basis, with the primary monitored metrics being delinquency (60 days or more past due) and revolving stagnancy. Loans with relationships greater than $1 million are reviewed at least annually.  Loan relationships exceeding $15 million or classified as special mention or substandard are reviewed at least quarterly, or more frequently based on management’s discretion. 

1.
Cash Secured—No credit risk
2.
Fully Secured—Negligible credit risk
3.
Strong—Minimal credit risk
4.
Satisfactory—Nominal credit risk
5.
Acceptable—Moderate credit risk
6.
Pre-Watch—Marginal, but stable credit risk
7.
Special Mention—Potential weakness
8.
Substandard—Well-defined weakness
9.
Doubtful—Collection in-full improbable
10.
Loss—Considered uncollectible


Commercial Credit Exposure Credit Risk by Internally Assigned Grades
The following table presents classifications for originated loans:
(Dollars in thousands)
Commercial,
Financial and
Agricultural
 
Real Estate—
Commercial
 
Real Estate—
Construction
 
Real Estate—
Residential Secured
for Business Purpose
 
Total
At December 31, 2017
 
 
 
 
 
 
 
 
 
Grade:
 
 
 
 
 
 
 
 
 
1. Cash secured/ 2. Fully secured
$
2,521

 
$
—

 
$
20,420

 
$
—

 
$
22,941

3. Strong
9,206

 
1,821

 
—

 
—

 
11,027

4. Satisfactory
30,283

 
26,950

 
—

 
274

 
57,507

5. Acceptable
593,205

 
960,258

 
76,899

 
215,750

 
1,846,112

6. Pre-watch
179,990

 
209,844

 
72,168

 
29,738

 
491,740

7. Special Mention
4,027

 
12,974

 
1,392

 
296

 
18,689

8. Substandard
13,868

 
23,834

 
365

 
4,742

 
42,809

9. Doubtful
—

 
—

 
—

 
—

 
—

10. Loss
—

 
—

 
—

 
—

 
—

Total
$
833,100

 
$
1,235,681

 
$
171,244

 
$
250,800

 
$
2,490,825

 
 
 
 
 
 
 
 
 
 
At December 31, 2016
 
 
 
 
 
 
 
 
 
Grade:
 
 
 
 
 
 
 
 
 
1. Cash secured/ 2. Fully secured
$
272

 
$
—

 
$
13,714

 
$
162

 
$
14,148

3. Strong
14,980

 
2,045

 
—

 
—

 
17,025

4. Satisfactory
35,529

 
38,861

 
—

 
367

 
74,757

5. Acceptable
465,675

 
676,212

 
110,650

 
133,716

 
1,386,253

6. Pre-watch
113,499

 
128,646

 
18,213

 
12,025

 
272,383

7. Special Mention
8,820

 
22,439

 
314

 
1,199

 
32,772

8. Substandard
24,446

 
41,378

 
—

 
4,462

 
70,286

9. Doubtful
—

 
—

 
—

 
—

 
—

10. Loss
—

 
—

 
—

 
—

 
—

Total
$
663,221

 
$
909,581

 
$
142,891

 
$
151,931

 
$
1,867,624

(Dollars in thousands)
Real Estate—
Residential
Secured for
Personal Purpose
 
Real Estate—
Home Equity
Secured for
Personal Purpose
 
Loans to
Individuals
 
Lease
Financings
 
Total
At December 31, 2017
 
 
 
 
 
 
 
 
 
Performing
$
260,589

 
$
171,527

 
$
27,961

 
$
127,913

 
$
587,990

Nonperforming
65

 
357

 
195

 
1,855

 
2,472

Total
$
260,654

 
$
171,884

 
$
28,156

 
$
129,768

 
$
590,462

 
 
 
 
 
 
 
 
 
 
At December 31, 2016
 
 
 
 
 
 
 
 
 
Performing
$
210,208

 
$
147,286

 
$
29,968

 
$
134,010

 
$
521,472

Nonperforming
169

 
696

 
142

 
729

 
1,736

Total
$
210,377

 
$
147,982

 
$
30,110

 
$
134,739

 
$
523,208
Summary of Activity in the Reserve for Loan and Lease Losses
The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses for the years ended December 31, 2017, 2016 and 2015:
(Dollars in thousands)
Commercial,
Financial
and
Agricultural
 
Real Estate—
Commercial
and
Construction
 
Real Estate—
Residential
Secured for
Business
Purpose
 
Real Estate—
Residential
and Home
Equity
Secured for
Personal
Purpose
 
Loans to
Individuals
 
Lease
Financings
 
Unallocated
 
Total
For the Year Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
7,037

 
$
7,505

 
$
774

 
$
993

 
$
364

 
$
788

 
$
38

 
$
17,499

Charge-offs
(1,030
)
 
(232
)
 
(1,370
)
 
(196
)
 
(317
)
 
(3,992
)
 
N/A

 
(7,137
)
Recoveries
801

 
5

 
54

 
99

 
136

 
206

 
N/A

 
1,301

(Recovery of provision) provision
(66
)
 
2,561

 
2,204

 
857

 
190

 
4,130

 
16

 
9,892

(Recovery of provision) provision for acquired credit impaired loans
—

 
—

 
(1
)
 
1

 
—

 
—

 
—

 
—

Ending balance
$
6,742

 
$
9,839

 
$
1,661

 
$
1,754

 
$
373

 
$
1,132

 
$
54

 
$
21,555

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
6,418

 
$
6,572

 
$
763

 
$
1,575

 
$
346

 
$
1,042

 
$
912

 
$
17,628

Charge-offs
(4,827
)
 
(307
)
 
(522
)
 
(178
)
 
(395
)
 
(759
)
 
N/A

 
(6,988
)
Recoveries
1,454

 
101

 
71

 
88

 
133

 
191

 
N/A

 
2,038

Provision (recovery of provision)
3,992

 
961

 
462

 
(489
)
 
280

 
314

 
(874
)
 
4,646

Provision (recovery of provision) for acquired credit impaired loans
—

 
178

 
—

 
(3
)
 
—

 
—

 
—

 
175

Ending balance
$
7,037

 
$
7,505

 
$
774

 
$
993

 
$
364

 
$
788

 
$
38

 
$
17,499

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Year Ended December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
6,920

 
$
8,943

 
$
763

 
$
1,124

 
$
360

 
$
985

 
$
1,567

 
$
20,662

Charge-offs
(4,793
)
 
(1,895
)
 
(179
)
 
(279
)
 
(549
)
 
(801
)
 
N/A

 
(8,496
)
Recoveries
1,032

 
200

 
28

 
10

 
176

 
214

 
N/A

 
1,660

Provision (recovery of provision)
3,259

 
(684
)
 
43

 
657

 
359

 
644

 
(655
)
 
3,623

Provision for acquired credit impaired loans
—

 
8

 
108

 
63

 
—

 
—

 
—

 
179

Ending balance
$
6,418

 
$
6,572

 
$
763

 
$
1,575

 
$
346

 
$
1,042

 
$
912

 
$
17,628

N/A – Not applicable
During 2017, the Corporation recorded charge-offs of $2.8 million related to $5.0 million of software leases under a vendor referral program. These leases are personally guaranteed by 29 high net worth individuals. During 2017, the lessees stopped making payments due to disputes with the vendor, and Univest Capital, Inc., a subsidiary of the Corporation, filed legal complaints to pursue collection of all amounts owed. A complaint was subsequently filed against Univest Capital Inc. and certain other defendants by one of the lessees in federal court in Texas seeking, among other things, class action certification and a declaration that the contracts and related guarantees are null and void. On September 25, 2017, Univest Capital, Inc. entered into a Release and Settlement Agreement whereby Univest Capital, Inc. received $1.0 million based upon court approval of the Agreement and is eligible to receive up to an additional $1.3 million. Payment of the $1.3 million is subject to the individual guarantor's election of whether or not they will be subject to the Release and Settlement Agreement. It is expected this election process will be completed by March 31, 2018 and related funds are expected to be received by June 30, 2018. If a guarantor elects to be subject to the Release and Settlement Agreement, Univest Capital, Inc. shall receive a payment of $43 thousand per guarantor. If a guarantor elects not to be subject to the Release and Settlement Agreement, Univest Capital, Inc. has the right to pursue collection of the full amount owed, which ranges from $108 thousand to $228 thousand per guarantor, via the normal collection process. As of December 31, 2017, Univest Capital, Inc. has a receivable totaling $1.3 million related to this matter, which is recorded as a non-accruing lease receivable.
The following presents, by portfolio segment, the balance in the reserve for loan and lease losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method at December 31, 2017 and 2016:
(Dollars in thousands)
Commercial,
Financial
and
Agricultural
 
Real Estate—
Commercial
and
Construction
 
Real Estate—
Residential
Secured for
Business
Purpose
 
Real Estate—
Residential
and Home
Equity
Secured for
Personal
Purpose
 
Loans to
Individuals
 
Lease
Financings
 
Unallocated
 
Total
At December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
$
31

 
$
99

 
$
1

 
$
—

 
$
—

 
$
—

 
N/A

 
$
131

Ending balance: collectively evaluated for impairment
6,711

 
9,740

 
1,660

 
1,754

 
373

 
1,132

 
54

 
21,424

Total ending balance
$
6,742

 
$
9,839

 
$
1,661

 
$
1,754

 
$
373

 
$
1,132

 
$
54

 
$
21,555

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases held for investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
$
7,079

 
$
16,919

 
$
3,465

 
$
1,019

 
$
—

 
$
1,250

 
 
 
$
29,732

Ending balance: collectively evaluated for impairment
826,021

 
1,388,048

 
247,335

 
431,519

 
28,156

 
128,518

 
 
 
3,049,597

Loans measured at fair value
—

 
1,958

 
—

 
—

 
—

 
—

 
 
 
1,958

Acquired non-credit impaired loans
62,689

 
310,696

 
90,582

 
73,086

 
144

 
—

 
 
 
537,197

Acquired credit impaired loans
422

 
356

 
585

 
220

 
—

 
—

 
 
 
1,583

Total ending balance
$
896,211

 
$
1,717,977

 
$
341,967

 
$
505,844

 
$
28,300

 
$
129,768

 
 
 
$
3,620,067

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
At December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Reserve for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
$
19

 
$
25

 
$
191

 
$
—

 
$
—

 
$
—

 
N/A

 
$
235

Ending balance: collectively evaluated for impairment
7,018

 
7,480

 
583

 
993

 
364

 
788

 
38

 
17,264

Total ending balance
$
7,037

 
$
7,505

 
$
774

 
$
993

 
$
364

 
$
788

 
$
38

 
$
17,499

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases held for investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
$
11,077

 
$
25,066

 
$
6,687

 
$
1,085

 
$
—

 
$
—

 
 
 
$
43,915

Ending balance: collectively evaluated for impairment
652,144

 
1,027,406

 
145,244

 
357,274

 
30,110

 
134,739

 
 
 
2,346,917

Loans measured at fair value
—

 
2,138

 
—

 
—

 
—

 
—

 
 
 
2,138

Acquired non-credit impaired loans
159,456

 
489,473

 
141,353

 
95,019

 
263

 
—

 
 
 
885,564

Acquired credit impaired loans
589

 
5,710

 
784

 
269

 
—

 
—

 
 
 
7,352

Total ending balance
$
823,266

 
$
1,549,793

 
$
294,068

 
$
453,647

 
$
30,373

 
$
134,739

 
 
 
$
3,285,886

N/A – Not applicable
Summary of Average Recorded Investment in Impaired Loans and Leases and Analysis of Interest on Impaired Loans
The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Therefore, interest income on accruing impaired loans is recognized using the accrual method.     
 
For the Years Ended December 31,
 
2017
 
2016
 
2015
(Dollars in thousands)
Average
Recorded
Investment
 
Interest
Income
Recognized*
 
Additional
Interest Income
That Would
Have Been
Recognized
Under Original
Terms
 
Average
Recorded
Investment
 
Interest
Income
Recognized*
 
Additional
Interest Income
That Would
Have Been
Recognized
Under Original
Terms
 
Average
Recorded
Investment
 
Interest
Income
Recognized*
 
Additional
Interest Income
That Would
Have Been
Recognized
Under Original
Terms
Loans held for sale
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,832

 
$
—

 
$
110

Loans held for investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
10,456

 
200

 
347

 
13,126

 
258

 
381

 
15,383

 
423

 
481

Real estate—commercial real estate
20,054

 
792

 
289

 
26,698

 
1,106

 
272

 
23,692

 
996

 
330

Real estate—construction
253

 
—

 
19

 
—

 
—

 
—

 
3,164

 
—

 
162

Real estate—residential secured for business purpose
3,801

 
65

 
169

 
4,084

 
67

 
207

 
3,805

 
144

 
161

Real estate—residential secured for personal purpose
614

 
3

 
39

 
498

 
2

 
24

 
729

 
2

 
43

Real estate—home equity secured for personal purpose
406

 
—

 
26

 
440

 
—

 
25

 
184

 
—

 
11

Total
$
35,584

 
$
1,060

 
$
889

 
$
44,846

 
$
1,433

 
$
909

 
$
48,789

 
$
1,565

 
$
1,298

*
Includes interest income recognized on a cash basis for nonaccrual loans of $4 thousand, $8 thousand and $37 thousand for the years ended December 31, 2017, 2016 and 2015, respectively and interest income recognized on the accrual method for accruing impaired loans of $1.1 million, $1.4 million and $1.5 million for the years ended December 31, 2017, 2016 and 2015, respectively.
Schedule of Troubled Debt Restructured Loans
The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured during the years ended December 31, 2017 and 2016:
 
For the Years Ended December 31,
 
2017
 
2016
(Dollars in thousands)
Number
of
Loans
 
Pre-
Restructuring
Outstanding
Recorded
Investment
 
Post-
Restructuring
Outstanding
Recorded
Investment
 
Related
Reserve
 
Number
of
Loans
 
Pre-
Restructuring
Outstanding
Recorded
Investment
 
Post-
Restructuring
Outstanding
Recorded
Investment
 
Related
Reserve
Accruing Troubled Debt Restructured Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
—

 
$
—

 
$
—

 
$
—

 
1

 
$
1,545

 
$
1,545

 
$
—

Real estate—commercial real estate
3

 
9,206

 
9,206

 
—

 
—

 
—

 
—

 
—

Real estate—residential secured for business purpose
—

 
—

 
—

 
—

 
1

 
415

 
415

 
—

Total
3

 
$
9,206

 
$
9,206

 
$
—

 
2

 
$
1,960

 
$
1,960

 
$
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual Troubled Debt Restructured Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
2

 
$
1,127

 
$
1,127

 
$
—

 
—

 
$
—

 
$
—

 
$
—

Real estate—commercial real estate
1

 
328

 
328

 
—

 
—

 
—

 
—

 
—

Real estate—residential secured for business purpose
—

 
—

 
—

 
—

 
1

 
313

 
312

 
—

Real estate—residential secured for personal purpose
—

 
—

 
—

 
—

 
1

 
34

 
34

 
—

Real estate—home equity secured for personal purpose
—

 
—

 
—

 
—

 
1

 
152

 
152

 
—

Total
3

 
$
1,455

 
$
1,455

 
$
—

 
3

 
$
499

 
$
498

 
$
—

(Dollars in thousands)
At December 31, 2017
 
At December 31, 2016
Foreclosed residential real estate
$
80

 
$
—

The following presents, by class of loans, information regarding consumer mortgages collateralized by residential real estate property that are in the process of foreclosure at December 31, 2017 and 2016:
(Dollars in thousands)
At December 31, 2017
 
At December 31, 2016
Real estate-residential secured for personal purpose
$
31

 
$
—

Real estate-home equity secured for personal purpose
—

 
180

Total
$
31

 
$
180
Summary of Concessions Granted on Restructured Loans
The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the years ended December 31, 2017 and 2016:
 
Interest Only Term
Extension
 
Maturity Date
Extension
 
Amortization Period Extension
 
Total Concessions
Granted
(Dollars in thousands)
No. of
Loans
 
Amount
 
No. of
Loans
 
Amount
 
No. of
Loans
 
Amount
 
No. of
Loans
 
Amount
For the Year Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accruing Troubled Debt Restructured Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—commercial real estate
—

 
$
—

 
—

 
$
—

 
3

 
$
9,206

 
3

 
$
9,206

Total
—

 
$
—

 
—

 
$
—

 
3

 
$
9,206

 
3

 
$
9,206

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual Troubled Debt Restructured Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
—

 
$
—

 
—

 
$
—

 
2

 
$
1,127

 
2

 
$
1,127

Real estate—commercial real estate
—

 
—

 
1

 
328

 
—

 
—

 
1

 
328

Total
—

 
$
—

 
1

 
$
328

 
2

 
$
1,127

 
3

 
$
1,455

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
For the Year Ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Accruing Troubled Debt Restructured Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
—

 
$
—

 
—

 
$
—

 
1

 
$
1,545

 
1

 
$
1,545

Real estate—residential secured for business purpose
1

 
415

 
—

 
—

 
—

 
—

 
1

 
415

Total
1

 
$
415

 
—

 
$
—

 
1

 
$
1,545

 
2

 
$
1,960

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonaccrual Troubled Debt Restructured Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate—residential secured for business purpose
—

 
$
—

 
1

 
$
312

 
—

 
$
—

 
1

 
$
312

Real estate—residential secured for personal purpose
—

 
—

 
1

 
34

 
—

 
—

 
1

 
34

Real estate—home equity secured for personal purpose
—

 
—

 
1

 
152

 
—

 
—

 
1

 
152

Total
—

 
$
—

 
3

 
$
498

 
—

 
$
—

 
3

 
$
498
Accruing and Nonaccrual Troubled Debt Restructured Loans with Payment Defaults
The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there were payment defaults within twelve months of the restructuring date:
 
For the Years Ended December 31,
 
2017
 
2016
(Dollars in thousands)
Number
of Loans
 
Recorded
Investment
 
Number
of Loans
 
Recorded
Investment
Accruing Troubled Debt Restructured Loans:
 
 
 
 
 
 
 
Total
—

 
$
—

 
—

 
$
—

Nonaccrual Troubled Debt Restructured Loans:
 
 
 
 
 
 
 
Real estate—residential secured for personal purpose
—

 
$
—

 
1

 
$
34

Total
—

 
$
—

 
1

 
$
34