Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2018

Receivables [Abstract]

Schedule of loans, net of unamortized net deferred fees

Loans, net of unamortized net deferred fees, at March 31, 2018 and December 31, 2017 are summarized by type as follows:

	March 31, 2018						December 31, 2017
(dollars in thousands)	Amount			%			Amount			%
Commercial	$	1,426,042			22	%	$	1,375,939			21	%
Income producing - commercial real estate		3,137,498			47	%		3,047,094			48	%
Owner occupied - commercial real estate		800,747			12	%		755,444			12	%
Real estate mortgage - residential		103,932			2	%		104,357			2	%
Construction - commercial and residential		1,000,266			15	%		973,141			15	%
Construction - C&I (owner occupied)		40,547			1	%		58,691			1	%
Home equity		90,271			1	%		93,264			1	%
Other consumer		3,223			—			3,598			—
Total loans		6,602,526			100	%		6,411,528			100	%
Less: allowance for credit losses		(65,807	)					(64,758	)
Net loans	$	6,536,719					$	6,346,770

Schedule of allowance to one category of loans does not preclude its availability to absorb losses

Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

				Income Producing -			Owner Occupied -			Real Estate			Construction - Commercial
				Commercial			Commercial			Mortgage			and		Home			Other
(dollars in thousands)	Commercial			Real Estate			Real Estate			Residential			Residential		Equity			Consumer			Total
Three months ended March 31, 2018
Allowance for credit losses:
Balance at beginning of period	$	13,102		$	25,376		$	5,934		$	944		$	18,492	$	770		$	140		$	64,758
Loans charged-off		(853	)		(121	)		(132	)		—			—		—			—			(1,106	)
Recoveries of loans previously charged-off		3			—			1			2			60		117			3			186
Net loans (charged-off) recoveries		(850	)		(121	)		(131	)		2			60		117			3			(920	)
Provision for credit losses		1,106			1,213			(332	)		(212	)		190		(188	)		192			1,969
Ending balance	$	13,358		$	26,468		$	5,471		$	734		$	18,742	$	699		$	335		$	65,807
As of March 31, 2018
Allowance for credit losses:
Individually evaluated for impairment	$	3,014		$	2,628		$	500		$	—		$	500	$	—		$	80		$	6,722
Collectively evaluated for impairment		10,344			23,840			4,971			734			18,242		699			255			59,085
Ending balance	$	13,358		$	26,468		$	5,471		$	734		$	18,742	$	699		$	335		$	65,807
Three months ended March 31, 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	)		(500	)		—			—			—		—			(63	)		(700	)
Recoveries of loans previously charged-off		13			50			1			2			3		1			7			77
Net loans (charged-off) recoveries		(124	)		(450	)		1			2			3		1			(56	)		(623	)
Provision for credit losses		7			729			15			(180	)		866		(241	)		201			1,397
Ending balance	$	14,583		$	21,384		$	4,026		$	1,106		$	17,356	$	1,088		$	305		$	59,848
As of March 31, 2017
Allowance for credit losses:
Individually evaluated for impairment	$	3,030		$	1,488		$	350		$	—		$	350	$	—		$	50		$	5,268
Collectively evaluated for impairment		11,553			19,896			3,676			1,106			17,006		1,088			255			54,580
Ending balance	$	14,583		$	21,384		$	4,026		$	1,106		$	17,356	$	1,088		$	305		$	59,848

Schedule of detail activity in the allowance for credit losses by portfolio segment

The Company’s recorded investments in loans as of March 31, 2018 and December 31, 2017 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:

			Income Producing -		Owner occupied -		Real Estate		Construction - Commercial
			Commercial		Commercial		Mortgage		and		Home		Other
(dollars in thousands)	Commercial		Real Estate		Real Estate		Residential		Residential		Equity		Consumer		Total
March 31, 2018
Recorded investment in loans:
Individually evaluated for impairment	$	15,468	$	9,394	$	7,771	$	1,451	$	4,707	$	494	$	91	$	39,376
Collectively evaluated for impairment		1,410,574		3,128,104		792,976		102,481		1,036,106		89,777		3,132		6,563,150
Ending balance	$	1,426,042	$	3,137,498	$	800,747	$	103,932	$	1,040,813	$	90,271	$	3,223	$	6,602,526
December 31, 2017
Recorded investment in loans:
Individually evaluated for impairment	$	8,726	$	10,192	$	5,501	$	478	$	4,709	$	494	$	91	$	30,191
Collectively evaluated for impairment		1,367,213		3,036,902		749,943		103,879		1,027,123		92,770		3,507		6,381,337
Ending balance	$	1,375,939	$	3,047,094	$	755,444	$	104,357	$	1,031,832	$	93,264	$	3,598	$	6,411,528

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 March 31, 2018 and December 31, 2017.

			Watch and						Total
(dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Loans
March 31, 2018
Commercial	$	1,381,816	$	28,758	$	15,468	$	—	$	1,426,042
Income producing - commercial real estate		3,123,614		4,490		9,394		—		3,137,498
Owner occupied - commercial real estate		756,551		36,425		7,771		—		800,747
Real estate mortgage – residential		101,831		650		1,451		—		103,932
Construction - commercial and residential		1,036,106		—		4,707		—		1,040,813
Home equity		89,091		686		494		—		90,271
Other consumer		3,131		1		91		—		3,223
Total	$	6,492,140	$	71,010	$	39,376	$	—	$	6,602,526
December 31, 2017
Commercial	$	1,333,050	$	34,163	$	8,726	$	—	$	1,375,939
Income producing - commercial real estate		3,033,046		3,856		10,192		—		3,047,094
Owner occupied - commercial real estate		696,754		53,189		5,501		—		755,444
Real estate mortgage – residential		103,220		659		478		—		104,357
Construction - commercial and residential		1,027,123		—		4,709		—		1,031,832
Home equity		92,084		686		494		—		93,264
Other consumer		3,505		2		91		—		3,598
Total	$	6,288,782	$	92,555	$	30,191	$	—	$	6,411,528

Schedule of information related to nonaccrual loans by class

The following table presents, by class of loan, information related to nonaccrual loans as of March 31, 2018 and December 31, 2017.

(dollars in thousands)	March 31, 2018		December 31, 2017
Commercial	$	3,595	$	3,493
Income producing - commercial real estate		50		832
Owner occupied - commercial real estate		5,361		5,501
Real estate mortgage - residential		1,745		775
Construction - commercial and residential		2,051		2,052
Home equity		494		494
Other consumer		91		91
Total nonaccrual loans (1)(2)	$	13,387	$	13,238

(1) Excludes troubled debt restructurings (“TDRs”) that were performing under their restructured terms totaling $11.5 million at March 31, 2018 and $12.3 million at December 31, 2017.

(2) Gross interest income of $205 thousand and $304 thousand would have been recorded for the three months ended March 31, 2018 and 2017, respectively, if nonaccrual loans shown above had been current and in accordance with their original terms, while the interest actually recorded on such loans was zero and $90 thousand for the three months ended March 31, 2018 and 2017, respectively. 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 March 31, 2018 and December 31, 2017.

	Loans		Loans		Loans						Total Recorded
	30-59 Days		60-89 Days		90 Days or		Total Past		Current		Investment in
(dollars in thousands)	Past Due		Past Due		More Past Due		Due Loans		Loans		Loans
March 31, 2018
Commercial	$	6,179	$	1,209	$	3,595	$	10,983	$	1,415,059	$	1,426,042
Income producing - commercial real estate		13,452		4,562		50		18,064		3,119,434		3,137,498
Owner occupied - commercial real estate		3,336		1,105		5,361		9,802		790,945		800,747
Real estate mortgage – residential		6,590		—		1,745		8,335		95,597		103,932
Construction - commercial and residential		—		5,268		2,051		7,319		1,033,494		1,040,813
Home equity		—		90		494		584		89,687		90,271
Other consumer		5		17		91		113		3,110		3,223
Total	$	29,562	$	12,251	$	13,387	$	55,200	$	6,547,326	$	6,602,526
December 31, 2017
Commercial	$	2,705	$	748	$	3,493	$	6,946	$	1,368,993	$	1,375,939
Income producing - commercial real estate		4,398		6,930		832		12,160		3,034,934		3,047,094
Owner occupied - commercial real estate		522		3,906		5,501		9,929		745,515		755,444
Real estate mortgage – residential		6,993		1,244		775		9,012		95,345		104,357
Construction - commercial and residential		—		5,268		2,052		7,320		1,024,512		1,031,832
Home equity		307		—		494		801		92,463		93,264
Other consumer		45		6		91		142		3,456		3,598
Total	$	14,970	$	18,102	$	13,238	$	46,310	$	6,365,218	$	6,411,528

Schedule of impaired loans

The following table presents, by class of loan, information related to impaired loans for the periods ended March 31, 2018 and March 31, 2017.

	Unpaid		Recorded		Recorded						Average Recorded				Interest Income
	Contractual		Investment		Investment		Total				Investment				Recognized
	Principal		With No		With		Recorded		Related		Quarter		Year		Quarter		Year
(dollars in thousands)	Balance		Allowance		Allowance		Investment		Allowance		To Date		To Date		To Date		To Date
March 31, 2018
Commercial	$	4,944	$	1,132	$	3,693	$	4,825	$	3,014	$	5,175	$	5,175	$	20	$	20
Income producing - commercial real estate		9,248		—		9,248		9,248		2,628		9,646		9,646		120		120
Owner occupied - commercial real estate		6,432		5,650		782		6,432		500		6,514		6,514		11		11
Real estate mortgage – residential		1,745		1,745		—		1,745		—		1,260		1,260		—		—
Construction - commercial and residential		2,051		1,533		518		2,051		500		2,052		2,052		—		—
Home equity		494		494		—		494		—		494		494		—		—
Other consumer		91		—		91		91		80		91		91		—		—
Total	$	25,005	$	10,554	$	14,332	$	24,886	$	6,722	$	25,232	$	25,232	$	151	$	151
March 31, 2017
Commercial	$	8,249	$	2,843	$	2,737	$	5,580	$	3,030	$	5,604	$	5,604	$	42	$	42
Income producing - commercial real estate		10,019		702		9,317		10,019		1,488		12,478		12,478		48		48
Owner occupied - commercial real estate		2,998		2,207		791		2,998		350		2,741		2,741		—		—
Real estate mortgage – residential		310		310		—		310		—		433		433		—		—
Construction - commercial and residential		3,255		2,717		538		3,255		350		2,664		2,664		—		—
Other consumer		94		—		94		94		50		110		110		—		—
Total	$	24,925	$	8,779	$	13,477	$	22,256	$	5,268	$	24,030	$	24,030	$	90	$	90

Schedule of loans modified in troubled debt restructurings

The following table presents by class, the recorded investment of loans modified in TDRs held by the Company during the three months ended March 31, 2018 and 2017.

	For the Three Months Ended March 31, 2018
(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	$	1,230	$	9,198	$	1,071	$	—	$	11,499
Restructured nonaccruing		5		1,649		—		—		—		1,649
Total		13	$	2,879	$	9,198	$	1,071	$	—	$	13,148
Specific allowance			$	595	$	2,350	$	—	$	—	$	2,945
Restructured and subsequently defaulted			$	—	$	121	$	—	$	—	$	121

	For the Three Months Ended March 31, 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		7	$	3,137	$	4,397	$	367	$	—	$	7,901
Restructured non-accruing		2		193		—		—		702		895
Total		9	$	3,330	$	4,397	$	367	$	702	$	8,796
Specific allowance			$	855	$	1,100	$	—	$	—	$	1,955
Restructured and subsequently defaulted			$	237	$	—	$	—	$	—	$	237