Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2019

Receivables [Abstract]

Summary of Major Loan and Lease Categories

	At June 30, 2019
(Dollars in thousands)	Originated			Acquired		Total
Commercial, financial and agricultural	$	921,182		$	15,967	$	937,149
Real estate-commercial	1,650,052			212,095		1,862,147
Real estate-construction	230,459			—		230,459
Real estate-residential secured for business purpose	314,629			51,011		365,640
Real estate-residential secured for personal purpose	373,792			46,017		419,809
Real estate-home equity secured for personal purpose	170,482			7,446		177,928
Loans to individuals	32,345			140		32,485
Lease financings	142,287			—		142,287
Total loans and leases held for investment, net of deferred income	$	3,835,228		$	332,676	$	4,167,904
Imputed interest on lease financings, included in the above table	$	(15,415	)	$	—	$	(15,415	)
Net deferred costs, included in the above table	4,701			—		4,701
Overdraft deposits included in the above table	127			—		127

	At December 31, 2018
(Dollars in thousands)	Originated			Acquired		Total
Commercial, financial and agricultural	$	913,166		$	24,519	$	937,685
Real estate-commercial	1,507,579			233,625		1,741,204
Real estate-construction	215,513			—		215,513
Real estate-residential secured for business purpose	302,393			60,403		362,796
Real estate-residential secured for personal purpose	338,451			49,959		388,410
Real estate-home equity secured for personal purpose	177,523			8,728		186,251
Loans to individuals	32,617			142		32,759
Lease financings	141,956			—		141,956
Total loans and leases held for investment, net of deferred income	$	3,629,198		$	377,376	$	4,006,574
Imputed interest on lease financings, included in the above table	$	(15,118	)	$	—	$	(15,118	)
Net deferred costs, included in the above table	3,930			—		3,930
Overdraft deposits included in the above table	139			—		139

Schedule of Impaired Loans

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 June 30, 2019 and December 31, 2018. The impaired loans exclude acquired credit impaired loans.

	At June 30, 2019						At December 31, 2018
(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	$	1,980	$	2,590			$	2,776	$	3,361
Real estate—commercial real estate	5,158		6,163				6,578		7,516
Real estate—construction	106		111				106		111
Real estate—residential secured for business purpose	829		1,006				1,478		1,660
Real estate—residential secured for personal purpose	1,443		1,516				863		911
Real estate—home equity secured for personal purpose	1,269		1,329				1,373		1,404
Total impaired loans with no related reserve recorded	$	10,785	$	12,715			$	13,174	$	14,963
Impaired loans with a reserve recorded:
Commercial, financial and agricultural	$	170	$	170	$	99	$	971	$	1,024	$	413
Real estate—commercial real estate	12,581		13,336		1,840		11,637		12,162		675
Real estate—residential secured for business purpose	767		769		165		—		—		—
Real estate—residential secured for personal purpose	724		724		260		724		724		252
Real estate—home equity secured for personal purpose	75		75		75		75		75		75
Total impaired loans with a reserve recorded	$	14,317	$	15,074	$	2,439	$	13,407	$	13,985	$	1,415

Total impaired loans:
Commercial, financial and agricultural	$	2,150	$	2,760	$	99	$	3,747	$	4,385	$	413
Real estate—commercial real estate	17,739		19,499		1,840		18,215		19,678		675
Real estate—construction	106		111		—		106		111		—
Real estate—residential secured for business purpose	1,596		1,775		165		1,478		1,660		—
Real estate—residential secured for personal purpose	2,167		2,240		260		1,587		1,635		252
Real estate—home equity secured for personal purpose	1,344		1,404		75		1,448		1,479		75
Total impaired loans	$	25,102	$	27,789	$	2,439	$	26,581	$	28,948	$	1,415

Impaired loans include nonaccrual loans and accruing troubled debt restructured loans for which it is probable that not all principal and interest payments due will be collectible in accordance with the original contractual terms. These loans are individually measured to determine the amount of potential impairment. The loans are reviewed for impairment based on the fair value of the collateral for collateral dependent loans and for certain loans based on discounted cash flows using the loans’ initial effective interest rates.

The outstanding principal balance and carrying amount for acquired credit impaired loans at June 30, 2019 and December 31, 2018 were as follows:

(Dollars in thousands)	At June 30, 2019		At December 31, 2018
Outstanding principal balance	$	677	$	893
Carrying amount	569		695
Reserve for loan losses	—		—

The following table presents the changes in accretable yield on acquired credit impaired loans:

	Six Months Ended June 30,
(Dollars in thousands)	2019			2018
Beginning of period	$	—		$	11
Reclassification from nonaccretable discount	215			375
Accretable yield amortized to interest income	(215		)	(386		)
End of period	$	—		$	—

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, acquired credit impaired loans and nonaccrual loans and leases at June 30, 2019 and December 31, 2018:

	Accruing Loans and Leases
(Dollars in thousands)	30-59 Days Past Due		60-89 Days Past Due		90 Days or more Past Due		Total Past Due		Current		Total Accruing Loans and Leases		Acquired Credit Impaired		Nonaccrual Loans and Leases		Total Loans and Leases Held for Investment
At June 30, 2019
Commercial, financial and agricultural	$	527	$	274	$	—	$	801	$	934,198	$	934,999	$	—	$	2,150	$	937,149
Real estate—commercial real estate and construction:
Commercial real estate	2,057		6,190		516		8,763		1,835,439		1,844,202		206		17,739		1,862,147
Construction	500		1,158		230		1,888		228,465		230,353		—		106		230,459
Real estate—residential and home equity:
Residential secured for business purpose	919		2,284		434		3,637		360,105		363,742		302		1,596		365,640
Residential secured for personal purpose	1,529		258		—		1,787		415,794		417,581		61		2,167		419,809
Home equity secured for personal purpose	206		—		—		206		176,433		176,639		—		1,289		177,928
Loans to individuals	101		47		129		277		32,208		32,485		—		—		32,485
Lease financings	620		195		70		885		141,302		142,187		—		100		142,287
Total	$	6,459	$	10,406	$	1,379	$	18,244	$	4,123,944	$	4,142,188	$	569	$	25,147	$	4,167,904
At December 31, 2018
Commercial, financial and agricultural	$	1,043	$	122	$	—	$	1,165	$	933,155	$	934,320	$	—	$	3,365	$	937,685
Real estate—commercial real estate and construction:
Commercial real estate	4,995		1,538		—		6,533		1,716,251		1,722,784		206		18,214		1,741,204
Construction	2,163		—		—		2,163		213,244		215,407		—		106		215,513
Real estate—residential and home equity:
Residential secured for business purpose	2,497		728		—		3,225		357,827		361,052		426		1,318		362,796
Residential secured for personal purpose	2,334		—		—		2,334		384,426		386,760		63		1,587		388,410
Home equity secured for personal purpose	305		96		—		401		184,402		184,803		—		1,448		186,251
Loans to individuals	207		29		55		291		32,468		32,759		—		—		32,759
Lease financings	2,460		411		137		3,008		138,778		141,786		—		170		141,956
Total	$	16,004	$	2,924	$	192	$	19,120	$	3,960,551	$	3,979,671	$	695	$	26,208	$	4,006,574

Schedule of Nonperforming Loans and Leases

The following presents, by class of loans and leases, nonperforming loans and leases at June 30, 2019 and December 31, 2018. Nonperforming loans exclude acquired credit impaired loans from Fox Chase and Valley Green.

	At June 30, 2019								At December 31, 2018
(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	$	2,150	$	—	$	—	$	2,150	$	3,365	$	382	$	—	$	3,747
Real estate—commercial real estate and construction:
Commercial real estate	17,739		—		516		18,255		18,214		—		—		18,214
Construction	106		—		230		336		106		—		—		106
Real estate—residential and home equity:
Residential secured for business purpose	1,596		—		434		2,030		1,318		160		—		1,478
Residential secured for personal purpose	2,167		—		—		2,167		1,587		—		—		1,587
Home equity secured for personal purpose	1,289		55		—		1,344		1,448		—		—		1,448
Loans to individuals	—		—		129		129		—		—		55		55
Lease financings	100		—		70		170		170		—		137		307
Total	$	25,147	$	55	$	1,379	$	26,581	$	26,208	$	542	$	192	$	26,942

 * Includes nonaccrual troubled debt restructured loans of $2.6 million and $1.3 million at June 30, 2019 and December 31, 2018, respectively.

Summary of Credit Quality Indicators

The following table presents classifications for originated loans:

(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 June 30, 2019
Performing	$	372,578	$	170,172	$	32,216	$	142,117	$	717,083
Nonperforming	1,214		310		129		170		1,823
Total	$	373,792	$	170,482	$	32,345	$	142,287	$	718,906
At December 31, 2018
Performing	$	337,762	$	177,139	$	32,562	$	141,649	$	689,112
Nonperforming	689		384		55		307		1,435
Total	$	338,451	$	177,523	$	32,617	$	141,956	$	690,547

The following table presents classifications for acquired loans:

(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 June 30, 2019
Performing	$	45,064	$	6,412	$	140	$	—	$	51,616
Nonperforming	953		1,034		—		—		1,987
Total	$	46,017	$	7,446	$	140	$	—	$	53,603
At December 31, 2018
Performing	$	49,061	$	7,664	$	142	$	—	$	56,867
Nonperforming	898		1,064		—		—		1,962
Total	$	49,959	$	8,728	$	142	$	—	$	58,829

The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at June 30, 2019 and December 31, 2018.

The Corporation employs a risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose. 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). Loans with relationships greater than $1 million are reviewed at least annually.  Loan relationships with a higher risk profile or classified as special mention or substandard are reviewed at least quarterly, or more frequently based on management’s discretion. 

1. Pass—Loans considered satisfactory with no indications of deterioration

2. Special Mention—Potential weakness that deserves management's close attention

3. Substandard—Well-defined weakness or weaknesses that jeopardize the liquidation of the debt

4. Doubtful—Collection or liquidation in-full, on the basis of current existing facts, conditions and values, highly questionable and improbable

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 June 30, 2019
Grade:
1. Pass	$	874,098	$	1,622,980	$	228,421	$	309,658	$	3,035,157
2. Special Mention	27,036		17,773		1,932		1,705		48,446
3. Substandard	20,048		9,299		106		3,266		32,719
4. Doubtful	—		—		—		—		—
Total	$	921,182	$	1,650,052	$	230,459	$	314,629	$	3,116,322
At December 31, 2018
Grade:
1. Pass	$	882,736	$	1,455,234	$	215,407	$	298,356	$	2,851,733
2. Special Mention	23,287		31,791		—		721		55,799
3. Substandard	7,143		20,554		106		3,316		31,119
4. Doubtful	—		—		—		—		—
Total	$	913,166	$	1,507,579	$	215,513	$	302,393	$	2,938,651

The following table presents classifications for acquired loans:

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate— Commercial		Real Estate— Construction		Real Estate— Residential Secured for Business Purpose		Total
At June 30, 2019
Grade:
1. Pass	$	15,967	$	199,560	$	—	$	50,446	$	265,973
2. Special Mention	—		—		—		—		—
3. Substandard	—		12,535		—		565		13,100
4. Doubtful	—		—		—		—		—
Total	$	15,967	$	212,095	$	—	$	51,011	$	279,073
December 31, 2018
Grade:
1. Pass	$	24,450	$	220,911	$	—	$	59,567	$	304,928
2. Special Mention	—		—		—		—		—
3. Substandard	69		12,714		—		836		13,619
4. Doubtful	—		—		—		—		—
Total	$	24,519	$	233,625	$	—	$	60,403	$	318,547

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 three and six months ended June 30, 2019 and 2018:

(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
Three Months Ended June 30, 2019
Reserve for loan and lease losses:
Beginning balance	$	8,950		$	14,981		$	2,302	$	3,379		$	469		$	1,275		$	246		$	31,602
Charge-offs	(1,018		)	(33		)	—		(4		)	(51		)	(110		)	N/A			(1,216		)
Recoveries	19			—			6		7			16			90			N/A			138
Provision (recovery of provision)	1,178			530			170		136			47			(14		)	29			2,076
Ending balance	$	9,129		$	15,478		$	2,478	$	3,518		$	481		$	1,241		$	275		$	32,600
Three Months Ended June 30, 2018
Reserve for loan and lease losses:
Beginning balance	$	6,942		$	11,178		$	1,871	$	1,908		$	372		$	1,079		$	60		$	23,410
Charge-offs	(13,048		)	—			—		—			(79		)	(169		)	N/A			(13,296		)
Recoveries	23			—			7		8			16			75			N/A			129
Provision (recovery of provision)	13,341			1,149			126		578			138			86			(9		)	15,409
Ending balance	$	7,258		$	12,327		$	2,004	$	2,494		$	447		$	1,071		$	51		$	25,652
Six Months Ended June 30, 2019
Reserve for loan and lease losses:
Beginning balance	$	7,983		$	13,903		$	2,236	$	3,199		$	484		$	1,288		$	271		$	29,364
Charge-offs	(1,486		)	(74		)	—		(15		)	(136		)	(214		)	N/A			(1,925		)
Recoveries	101			91			10		12			38			148			N/A			400
Provision	2,531			1,558			232		321			95			19			4			4,760
Provision for acquired credit impaired loans	—			—			—		1			—			—			—			1
Ending balance	$	9,129		$	15,478		$	2,478	$	3,518		$	481		$	1,241		$	275		$	32,600
Six Months Ended June 30, 2018
Reserve for loan and lease losses:
Beginning balance	$	6,742		$	9,839		$	1,661	$	1,754		$	373		$	1,132		$	54		$	21,555
Charge-offs	(13,649		)	(40		)	—		—			(171		)	(305		)	N/A			(14,165		)
Recoveries	249			73			258		65			46			109			N/A			800
Provision (recovery of provision)	13,916			2,455			85		674			199			135			(3		)	17,461
Provision for acquired credit impaired loans	—			—			—		1			—			—			—			1
Ending balance	$	7,258		$	12,327		$	2,004	$	2,494		$	447		$	1,071		$	51		$	25,652

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 an accruing troubled debt restructured loan or 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. 

	Three Months Ended June 30, 2019						Three Months Ended June 30, 2018
(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
Commercial, financial and agricultural	$	2,509	$	12	$	49	$	6,394	$	32	$	134
Real estate—commercial real estate	18,058		—		242		22,914		18		265
Real estate—construction	106		—		2		56		—		3
Real estate—residential secured for business purpose	1,557		—		36		1,966		5		23
Real estate—residential secured for personal purpose	1,937		—		29		889		2		33
Real estate—home equity secured for personal purpose	1,358		1		20		1,033		—		31
Total	$	25,525	$	13	$	378	$	33,252	$	57	$	489

* Includes interest income recognized on a cash basis for nonaccrual loans of $12 thousand and $2 thousand for the three months ended June 30, 2019 and 2018, respectively, and interest income recognized on the accrual method for accruing impaired loans of $1 thousand and $55 thousand for the three months ended June 30, 2019 and 2018, respectively.

	Six Months Ended June 30, 2019						Six Months Ended June 30, 2018
(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
Commercial, financial and agricultural	$	3,066	$	17	$	103	$	7,090	$	72	$	211
Real estate—commercial real estate	18,122		3		496		20,105		190		552
Real estate—construction	106		—		3		137		—		5
Real estate—residential secured for business purpose	1,443		—		56		2,107		10		47
Real estate—residential secured for personal purpose	1,792		—		54		720		3		44
Real estate—home equity secured for personal purpose	1,384		1		43		819		—		39
Total	$	25,913	$	21	$	755	$	30,978	$	275	$	898

Schedule of Troubled Debt Restructured Loans

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 June 30, 2019 and December 31, 2018:

(Dollars in thousands)	At June 30, 2019		At December 31, 2018
Real estate-residential secured for personal purpose	$	714	$	563
Real estate-home equity secured for personal purpose	1,134		1,134
Total	$	1,848	$	1,697

The following presents, by class of loans, information regarding accruing and nonaccrual loans that were restructured:

	Three Months Ended June 30, 2019							Three Months Ended June 30, 2018
(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:
Real estate—home equity secured for personal purpose	1	$	55	$	55	$	—	—	$	—	$	—	$	—
Total	1	$	55	$	55	$	—	—	$	—	$	—	$	—
Nonaccrual Troubled Debt Restructured Loans:
Real estate—residential secured for personal purpose	—	$	—	$	—	$	—	1	$	66	$	66	$	—
Total	—	$	—	$	—	$	—	1	$	66	$	66	$	—

	Six Months Ended June 30, 2019							Six Months Ended June 30, 2018
(Dollars in thousands)	Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance		Number of Loans	Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance
Accruing Troubled Debt Restructured Loans:
Real estate—home equity secured for personal purpose	1	$	55	$	55	$	—	—	$	—	$	—	$	—
Total	1	$	55	$	55	$	—	—	$	—	$	—	$	—
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural*	2	$	956	$	956	$	—	—	$	—	$	—	$	—
Real estate—commercial real estate*	1	1,313		1,313		—		—	—		—		—
Real estate—residential secured for personal purpose	—	—		—		—		1	66		66		—
Total	3	$	2,269	$	2,269	$	—	1	$	66	$	66	$	—

The Corporation held no foreclosed residential real estate property at June 30, 2019 and December 31, 2018.

Schedule of Accruing and Nonaccruing Troubled Debt Restructured Loans

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:

	Three Months Ended June 30,						Six Months Ended June 30,
	2019			2018			2019			2018
(Dollars in thousands)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural	—	$	—	—	$	—	—	$	—	1	$	953
Total	—	$	—	—	$	—	—	$	—	1	$	953
Nonaccrual Troubled Debt Restructured Loans:
Total	—	$	—	—	$	—	—	$	—	—	$	—

Lease Payments Receivables

The following presents the schedule of minimum lease payments receivable:

(Dollars in thousands)	At June 30, 2019			At December 31, 2018
2019 (excluding the six months ended June 30, 2019)	$	29,479		$	55,201
2020	49,897			43,355
2021	36,433			29,678
2022	23,877			17,687
2023	11,722			6,674
Thereafter	3,478			1,975
Total future minimum lease payments receivable	154,886			154,570
Plus: Unguaranteed residual	823			600
Plus: Initial direct costs	1,993			1,904
Less: Imputed interest	(15,415		)	(15,118		)
Lease financings	$	142,287		$	141,956