Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Schedule of loans, net of unamortized net deferred fees

Loans, net of unamortized net deferred fees, at June 30, 2017, December 31, 2016, and June 30, 2016 are summarized by type as follows:

	June 30, 2017						December 31, 2016						June 30, 2016
(dollars in thousands)	Amount			%			Amount			%			Amount			%
Commercial	$	1,319,736			22	%	$	1,200,728			21	%	$	1,140,863			21	%
Income producing - commercial real estate		2,596,230			43	%		2,509,517			44	%		2,461,581			45	%
Owner occupied - commercial real estate		660,066			11	%		640,870			12	%		584,358			11	%
Real estate mortgage - residential		151,115			3	%		152,748			3	%		150,129			3	%
Construction - commercial and residential*		1,034,902			17	%		932,531			16	%		847,268			16	%
Construction - C&I (owner occupied)		116,577			2	%		126,038			2	%		100,063			2	%
Home equity		103,671			2	%		105,096			2	%		110,697			2	%
Other consumer		2,734			—			10,365			—			8,470			—
Total loans		5,985,031			100	%		5,677,893			100	%		5,403,429			100	%
Less: allowance for credit losses		(61,047	)					(59,074	)					(56,536	)
Net loans	$	5,923,984					$	5,618,819					$	5,346,893

*Includes land loans

Schedule of allowance for credit losses on financing receivables

The following tables detail activity in the allowance for credit losses by portfolio segment for the three and six months ended June 30, 2017 and 2016. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

(dollars in thousands)	Commercial			Income Producing Commercial Real Estate			Owner Occupied Commercial Real Estate		Real Estate Mortgage Residential			Construction Commercial and Residential			Home Equity			Other Consumer			Total
Three months ended June 30, 2017
Allowance for credit losses:
Balance at beginning of period	$	14,583		$	21,384		$	4,026	$	1,106		$	17,356		$	1,088		$	305		$	59,848
Loans charged-off		—			(970	)		—		—			—			—			(3	)		(973	)
Recoveries of loans previously charged-off		255			—			1		1			342			2			5			606
Net loans (charged-off) recoveries		255			(970	)		1		1			342			2			2			(367	)
Provision for credit losses		(613	)		2,894			162		(26	)		(971	)		126			(6	)		1,566
Ending balance	$	14,225		$	23,308		$	4,189	$	1,081		$	16,727		$	1,216		$	301		$	61,047
Six months ended June 30, 2017
Allowance for credit losses:
Balance at beginning of period	$	14,700		$	21,105		$	4,010	$	1,284		$	16,487		$	1,328		$	160		$	59,074
Loans charged-off		(137	)		(1,470	)		—		—			—			—			(66	)		(1,673	)
Recoveries of loans previously charged-off		268			50			2		3			345			3			12			683
Net loans charged-off		131			(1,420	)		2		3			345			3			(54	)		(990	)
Provision for credit losses		(606	)		3,623			177		(206	)		(105	)		(115	)		195			2,963
Ending balance	$	14,225		$	23,308		$	4,189	$	1,081		$	16,727		$	1,216		$	301		$	61,047
As of June 30, 2017
Allowance for credit losses:
Individually evaluated for impairment	$	3,070		$	2,013		$	350	$	—		$	350		$	90		$	52		$	5,925
Collectively evaluated for impairment		11,155			21,295			3,839		1,081			16,377			1,126			249			55,122
Ending balance	$	14,225		$	23,308		$	4,189	$	1,081		$	16,727		$	1,216		$	301		$	61,047
Three months ended June 30, 2016
Allowance for credit losses:
Balance at beginning of period	$	13,622		$	15,794		$	3,931	$	1,051		$	18,466		$	1,483		$	261		$	54,608
Loans charged-off		(1,888	)		(1	)		—		—			—			(92	)		(18	)		(1,999	)
Recoveries of loans previously charged-off		14			—			1		1			8			7			8			39
Net loans (charged-off) recoveries		(1,874	)		(1	)		1		1			8			(85	)		(10	)		(1,960	)
Provision for credit losses		1,638			3,279			270		9			(1,450	)		158			(16	)		3,888
Ending balance	$	13,386		$	19,072		$	4,202	$	1,061		$	17,024		$	1,556		$	235		$	56,536
Six months ended June 30, 2016
Allowance for credit losses:
Balance at beginning of period	$	11,563		$	14,122		$	3,279	$	1,268		$	21,088		$	1,292		$	75		$	52,687
Loans charged-off		(2,693	)		(591	)		—		—			—			(96	)		(25	)		(3,405	)
Recoveries of loans previously charged-off		86			4			2		3			204			8			16			323
Net loans charged-off		(2,607	)		(587	)		2		3			204			(88	)		(9	)		(3,082	)
Provision for credit losses		4,430			5,537			921		(210	)		(4,268	)		352			169			6,931
Ending balance	$	13,386		$	19,072		$	4,202	$	1,061		$	17,024		$	1,556		$	235		$	56,536
As of June 30, 2016
Allowance for credit losses:
Individually evaluated for impairment	$	2,634		$	1,697		$	450	$	—		$	350		$	88		$	—		$	5,219
Collectively evaluated for impairment		10,752			17,375			3,752		1,061			16,674			1,468			235			51,317
Ending balance	$	13,386		$	19,072		$	4,202	$	1,061		$	17,024		$	1,556		$	235		$	56,536

Schedule of recorded investment in loans

The Company’s recorded investments in loans as of June 30, 2017, December 31, 2016 and June 30, 2016 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the basis of the Company’s impairment methodology was as follows:

(dollars in thousands)	Commercial		Income Producing Commercial Real Estate		Owner occupied Commercial Real Estate		Real Estate Mortgage Residential		Construction Commercial and Residential		Home Equity		Other Consumer		Total
June 30, 2017
Recorded investment in loans:
Individually evaluated for impairment	$	8,929	$	12,339	$	5,370	$	—	$	9,028	$	594	$	93	$	36,353
Collectively evaluated for impairment		1,310,807		2,583,891		654,696		151,115		1,142,451		103,077		2,641		5,948,678
Ending balance	$	1,319,736	$	2,596,230	$	660,066	$	151,115	$	1,151,479	$	103,671	$	2,734	$	5,985,031
December 31, 2016
Recorded investment in loans:
Individually evaluated for impairment	$	10,437	$	15,057	$	2,093	$	241	$	6,517	$	—	$	126	$	34,471
Collectively evaluated for impairment		1,190,291		2,494,460		638,777		152,507		1,052,052		105,096		10,239		5,643,422
Ending balance	$	1,200,728	$	2,509,517	$	640,870	$	152,748	$	1,058,569	$	105,096	$	10,365	$	5,677,893
June 30, 2016
Recorded investment in loans:
Individually evaluated for impairment	$	12,402	$	19,778	$	1,699	$	254	$	5,413	$	121	$	—	$	39,667
Collectively evaluated for impairment		1,128,461		2,441,803		582,659		149,875		941,918		110,576		8,470		5,363,762
Ending balance	$	1,140,863	$	2,461,581	$	584,358	$	150,129	$	947,331	$	110,697	$	8,470	$	5,403,429

Schedule of loans by class and credit quality indicators

The following table presents by class and by credit quality indicator, the recorded investment in the Company’s loans and leases as of June 30, 2017, December 31, 2016 and June 30, 2016.

(dollars in thousands)	Pass		Watch and Special Mention		Substandard		Doubtful		Total Loans
June 30, 2017
Commercial	$	1,276,713	$	34,094	$	8,929	$	—	$	1,319,736
Income producing - commercial real estate		2,564,780		19,111		12,339		—		2,596,230
Owner occupied - commercial real estate		642,342		12,354		5,370		—		660,066
Real estate mortgage – residential		150,449		666		—		—		151,115
Construction - commercial and residential		1,139,629		2,822		9,028		—		1,151,479
Home equity		101,963		1,114		594		—		103,671
Other consumer		2,639		2		93		—		2,734
Total	$	5,878,515	$	70,163	$	36,353	$	—	$	5,985,031
December 31, 2016
Commercial	$	1,160,185	$	30,106	$	10,437	$	—	$	1,200,728
Income producing - commercial real estate		2,489,407		5,053		15,057		—		2,509,517
Owner occupied - commercial real estate		630,827		7,950		2,093		—		640,870
Real estate mortgage – residential		151,831		676		241		—		152,748
Construction - commercial and residential		1,051,445		607		6,517		—		1,058,569
Home equity		103,484		1,612		—		—		105,096
Other consumer		10,237		2		126		—		10,365
Total	$	5,597,416	$	46,006	$	34,471	$	—	$	5,677,893
June 30, 2016
Commercial	$	1,112,108	$	17,842	$	10,913	$	—	$	1,140,863
Income producing - commercial real estate		2,424,180		22,763		14,638		—		2,461,581
Owner occupied - commercial real estate		572,598		10,499		1,261		—		584,358
Real estate mortgage – residential		149,181		694		254		—		150,129
Construction - commercial and residential		938,148		3,770		5,413		—		947,331
Home equity		108,954		1,622		121		—		110,697
Other consumer		8,467		3		—		—		8,470
Total	$	5,313,636	$	57,193	$	32,600	$	—	$	5,403,429

Schedule of loans, non accrual status

The following table presents, by class of loan, information related to nonaccrual loans as of June 30, 2017, December 31, 2016 and June 30, 2016.

(dollars in thousands)	June 30, 2017		December 31, 2016		June 30, 2016
Commercial	$	3,202	$	2,490	$	3,775
Income producing - commercial real estate		1,471		10,539		10,234
Owner occupied - commercial real estate		5,370		2,093		1,261
Real estate mortgage - residential		304		555		576
Construction - commercial and residential		6,115		2,072		5,413
Home equity		594		—		121
Other consumer		92		126		—
Total nonaccrual loans (1)(2)	$	17,148	$	17,875	$	21,380

(1) Excludes troubled debt restructurings (“TDRs”) that were performing under their restructured terms totaling $12.7 million at June 30, 2017, as compared to $7.9 million at December 31, 2016 and $7.3 million at June 30, 2016.

(2) Gross interest income of $322 thousand and $626 thousand would have been recorded for the three and six months ended June 30, 2017, if nonaccrual loans shown above had been current and in accordance with their original terms while interest actually recorded on such loans was $265 thousand and $355 thousand for the three and six months ended June 30, 2017. See Note 1 to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status.

Schedule of past due loans

The following table presents, by class of loan, an aging analysis and the recorded investments in loans past due as of June 30, 2017 and December 31, 2016.

(dollars in thousands)	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 Days or More Past Due		Total Past Due Loans		Current Loans		Total Recorded Investment in Loans
June 30, 2017
Commercial	$	3,366	$	1,007	$	3,202	$	7,575	$	1,312,161	$	1,319,736
Income producing - commercial real estate		4,560		4,195		1,471		10,226		2,586,004		2,596,230
Owner occupied - commercial real estate		2,080		5,195		5,370		12,645		647,421		660,066
Real estate mortgage – residential		1,011		—		304		1,315		149,800		151,115
Construction - commercial and residential		—		—		6,115		6,115		1,145,364		1,151,479
Home equity		157		—		594		751		102,920		103,671
Other consumer		11		—		92		103		2,631		2,734
Total	$	11,185	$	10,397	$	17,148	$	38,730	$	5,946,301	$	5,985,031
December 31, 2016
Commercial	$	1,634	$	757	$	2,490	$	4,881	$	1,195,847	$	1,200,728
Income producing - commercial real estate		511		—		10,539		11,050		2,498,467		2,509,517
Owner occupied - commercial real estate		3,987		3,328		2,093		9,408		631,462		640,870
Real estate mortgage – residential		1,015		163		555		1,733		151,015		152,748
Construction - commercial and residential		360		1,342		2,072		3,774		1,054,795		1,058,569
Home equity		—		—		—		—		105,096		105,096
Other consumer		101		9		126		236		10,129		10,365
Total	$	7,608	$	5,599	$	17,875	$	31,082	$	5,646,811	$	5,677,893

Schedule of impaired loans

The following table presents, by class of loan, information related to impaired loans for the periods ended June 30, 2017, December 31, 2016 and June 30, 2016.

	Unpaid Contractual		Recorded Investment		Recorded Investment		Total				Average Recorded Investment				Interest Income Recognized
(dollars in thousands)	Principal Balance		With No Allowance		With Allowance		Recorded  Investment		Related Allowance		Quarter To Date		Year To Date		Quarter To Date		Year To Date
June 30, 2017
Commercial	$	8,988	$	2,805	$	3,514	$	6,319	$	3,070	$	5,950	$	5,842	$	24	$	66
Income producing - commercial real estate		10,683		6,233		4,450		10,683		2,013		10,351		11,879		204		252
Owner occupied - commercial real estate		5,713		4,927		786		5,713		350		4,356		3,731		20		20
Real estate mortgage – residential		304		304		—		304		—		307		390		—		—
Construction - commercial and residential		6,115		5,582		533		6,115		350		4,685		3,814		14		14
Home equity		594		494		100		594		90		297		198		2		2
Other consumer		92		—		92		92		52		93		104		—		—
Total	$	32,489	$	20,345	$	9,475	$	29,820	$	5,925	$	26,039	$	25,958	$	264	$	354
December 31, 2016
Commercial	$	8,296	$	2,532	$	3,095	$	5,627	$	2,671	$	12,620	$	12,755	$	79	$	191
Income producing - commercial real estate		14,936		5,048		9,888		14,936		1,943		16,742		17,533		54		198
Owner occupied - commercial real estate		2,483		1,691		792		2,483		350		2,233		2,106		—		13
Real estate mortgage – residential		555		555		—		555		—		246		249		—		—
Construction - commercial and residential		2,072		1,535		537		2,072		522		5,091		5,174		—		—
Home equity		—		—		—		—		—		78		89		—		—
Other consumer		126		—		126		126		113		42		32		2		4
Total	$	28,468	$	11,361	$	14,438	$	25,799	$	5,599	$	37,052	$	37,938	$	135	$	406
June 30, 2016
Commercial	$	17,471	$	150	$	12,252	$	12,402	$	2,634	$	12,782	$	12,747	$	42	$	58
Income producing - commercial real estate		19,778		—		19,778		19,778		1,697		19,842		15,267		58		116
Owner occupied - commercial real estate		1,699		—		1,699		1,699		450		1,712		1,725				—
Real estate mortgage – residential		254		254		—		254		—		256		280				—
Construction - commercial and residential		5,413		4,871		542		5,413		350		5,418		7,096				—
Home equity		121		—		121		121		88		122		135				—
Other consumer		—		—		—		—		—		—		7				—
Total	$	44,736	$	5,275	$	34,392	$	39,667	$	5,219	$	40,132	$	37,257	$	100	$	174

Schedule of loans modified in troubled debt restructurings

The following table presents by class, information related to loans modified in a TDR during the three months ended June 30, 2017 and 2016.

	For the Three Months Ended June 30, 2017
(dollars in thousands)	Number of Contracts		Commercial		Income Producing - Commercial Real Estate		Owner Occupied - Commercial Real Estate		Construction - Commercial Real Estate		Total
Troubled debt restructings
Restructured accruing		1	$	—	$	4,815	$	—	$	—	$	4,815
Restructured non-accruing		—		—		—		—		—		—
Total		1	$	—	$	4,815	$	—	$	—	$	4,815
Increase in allowance (as of period end)			$	15	$	800	$	—	$	—	$	815
Restructured and subsequently defaulted			$	—	$	—	$	—	$	—	$	—

	For the Three Months Ended June 30, 2016
(dollars in thousands)	Number of Contracts		Commercial		Income Producing - Commercial Real Estate		Owner Occupied - Commercial Real Estate		Construction - Commercial Real Estate		Total
Troubled debt restructings
Restructured accruing		2	$	590	$	—	$	—	$	—	$	590
Restructured non-accruing		—		—		—		—		—		—
Total		2	$	590	$	—	$	—	$	—	$	590
Increase in allowance (as of period end)			$	—	$	—	$	—	$	—	$	—
Restructured and subsequently defaulted			$	—	$	—	$	—	$	—	$	—

The following table presents by class, the recorded investment of loans modified in TDRs held by the Company during the six months ended June 30, 2017 and June 30, 2016.

	For the Six Months Ended June 30, 2017
(dollars in thousands)	Number of Contracts		Commercial		Income Producing - Commercial Real Estate		Owner Occupied - Commercial Real Estate		Construction - Commercial Real Estate		Total
Troubled debt restructings
Restructured accruing		9	$	3,117	$	9,212	$	343	$	—	$	12,672
Restructured non-accruing		2		190		696		—		—		886
Total		11	$	3,307	$	9,908	$	343	$	—	$	13,558
Specific allowance			$	870	$	1,900	$	—	$	—	$	2,770
Restructured and subsequently defaulted			$	237	$	—	$	—	$	—	$	237

	For the Six Months Ended June 30, 2016
(dollars in thousands)	Number of Contracts		Commercial		Income Producing - Commercial Real Estate		Owner Occupied - Commercial Real Estate		Construction - Commercial Real Estate		Total
Troubled debt restructings
Restructured accruing		8	$	1,751	$	5,140	$	438	$	—	$	7,329
Restructured non-accruing		2		204		—		—		4,998		5,202
Total		10	$	1,955	$	5,140	$	438	$	4,998	$	12,531
Specific allowance			$	49	$	44	$	—	$	—	$	93
Restructured and subsequently defaulted			$	—	$	—	$	—	$	4,998	$	4,998