Changes in Allowance for Loan and Lease Losses |
The changes in the allowance for loan and lease losses were as follows: | | | | | | | | | | | | | | | | | | | | | Residential Mortgage Loans | | Commercial Mortgage Loans | | Commercial & Industrial Loans | | Construction Loans | | Consumer Loans | | Total | | | | | | | (In thousands) | | | | | | | | | | | | | | | | | | Quarter ended September 30, 2018 | | | | | | | | | | | | | | | | | | Allowance for loan and lease losses: | | | | | | | | | | | | | | | | | | Beginning balance | $ | 55,130 | | $ | 48,718 | | $ | 44,000 | | $ | 3,949 | | $ | 70,238 | | $ | 222,035 | Charge-offs | | (8,316) | | | (9,850) | | | (2,242) | | | (2,192) | | | (13,712) | | | (36,312) | Recoveries | | 833 | | | 291 | | | 127 | | | 14 | | | 2,051 | | | 3,316 | Provision | | 360 | | | 10,111 | | | 2,281 | | | 1,308 | | | (2,536) | | | 11,524 | Ending balance | $ | 48,007 | | $ | 49,270 | | $ | 44,166 | | $ | 3,079 | | $ | 56,041 | | $ | 200,563 | Ending balance: specific reserve for impaired loans | $ | 18,482 | | $ | 17,044 | | $ | 10,798 | | $ | 906 | | $ | 6,083 | | $ | 53,313 | Ending balance: purchased credit-impaired loans (1) | $ | 10,954 | | $ | 400 | | $ | - | | $ | - | | $ | - | | $ | 11,354 | Ending balance: general allowance | $ | 18,571 | | $ | 31,826 | | $ | 33,368 | | $ | 2,173 | | $ | 49,958 | | $ | 135,896 | Loans held for investment: | | | | | | | | | | | | | | | | | | Ending balance | $ | 3,207,981 | | $ | 1,506,502 | | $ | 2,068,256 | | $ | 82,862 | | $ | 1,851,352 | | $ | 8,716,953 | Ending balance: impaired loans | $ | 408,794 | | $ | 243,220 | | $ | 97,154 | | $ | 6,897 | | $ | 31,945 | | $ | 788,010 | Ending balance: purchased credit-impaired loans | $ | 145,203 | | $ | 3,919 | | $ | - | | $ | - | | $ | - | | $ | 149,122 | Ending balance: loans with general allowance | $ | 2,653,984 | | $ | 1,259,363 | | $ | 1,971,102 | | $ | 75,965 | | $ | 1,819,407 | | $ | 7,779,821 | | | | | | | | | | | | | | | | | | | | | Residential Mortgage Loans | | Commercial Mortgage Loans | | Commercial & Industrial Loans | | Construction Loans | | Consumer Loans | | Total | | | | | | | (In thousands) | | | | | | | | | | | | | | | | | | Nine-Month Period Ended September 30, 2018 | | | | | | | | | | | | | | | | | Allowance for loan and lease losses: | | | | | | | | | | | | | | | | | | Beginning balance | $ | 58,975 | | $ | 48,493 | | $ | 48,871 | | $ | 4,522 | | $ | 70,982 | | $ | 231,843 | Charge-offs | | (17,231) | | | (20,557) | | | (9,282) | | | (8,187) | | | (38,111) | | | (93,368) | Recoveries | | 1,857 | | | 378 | | | 1,565 | | | 165 | | | 6,519 | | | 10,484 | Provision | | 4,406 | | | 20,956 | | | 3,012 | | | 6,579 | | | 16,651 | | | 51,604 | Ending balance | $ | 48,007 | | $ | 49,270 | | $ | 44,166 | | $ | 3,079 | | $ | 56,041 | | $ | 200,563 | Ending balance: specific reserve for impaired loans | $ | 18,482 | | $ | 17,044 | | $ | 10,798 | | $ | 906 | | $ | 6,083 | | $ | 53,313 | Ending balance: purchased credit-impaired loans (1) | $ | 10,954 | | $ | 400 | | $ | - | | $ | - | | $ | - | | $ | 11,354 | Ending balance: general allowance | $ | 18,571 | | $ | 31,826 | | $ | 33,368 | | $ | 2,173 | | $ | 49,958 | | $ | 135,896 | Loans held for investment: | | | | | | | | | | | | | | | | | | Ending balance | $ | 3,207,981 | | $ | 1,506,502 | | $ | 2,068,256 | | $ | 82,862 | | $ | 1,851,352 | | $ | 8,716,953 | Ending balance: impaired loans | $ | 408,794 | | $ | 243,220 | | $ | 97,154 | | $ | 6,897 | | $ | 31,945 | | $ | 788,010 | Ending balance: purchased credit-impaired loans | $ | 145,203 | | $ | 3,919 | | $ | - | | $ | - | | $ | - | | $ | 149,122 | Ending balance: loans with general allowance | $ | 2,653,984 | | $ | 1,259,363 | | $ | 1,971,102 | | $ | 75,965 | | $ | 1,819,407 | | $ | 7,779,821 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Residential Mortgage Loans | | Commercial Mortgage Loans | | Commercial & Industrial Loans | | Construction Loans | | Consumer Loans | | Total | | | | | | | (In thousands) | | | | | | | | | | | | | | | | | | Quarter ended September 30, 2017 | | | | | | | | | | | | | | | | | | Allowance for loan and lease losses: | | | | | | | | | | | | | | | | | | Beginning balance | $ | 40,587 | | $ | 38,576 | | $ | 42,082 | | $ | 3,736 | | $ | 48,504 | | $ | 173,485 | Charge-offs | | (7,177) | | | (266) | | | (738) | | | (47) | | | (11,141) | | | (19,369) | Recoveries | | 321 | | | 43 | | | 114 | | | 16 | | | 1,247 | | | 1,741 | Provision (release) | | 23,321 | | | 17,590 | | | (1,079) | | | 242 | | | 34,939 | | | 75,013 | Ending balance | $ | 57,052 | | $ | 55,943 | | $ | 40,379 | | $ | 3,947 | | $ | 73,549 | | $ | 230,870 | Ending balance: specific reserve for impaired loans | $ | 19,417 | | $ | 10,456 | | $ | 11,240 | | $ | 1,865 | | $ | 5,177 | | $ | 48,155 | Ending balance: purchased credit-impaired loans (1) | $ | 9,863 | | $ | 372 | | $ | - | | $ | - | | $ | - | | $ | 10,235 | Ending balance: general allowance | $ | 27,772 | | $ | 45,115 | | $ | 29,139 | | $ | 2,082 | | $ | 68,372 | | $ | 172,480 | Loans held for investment: | | | | | | | | | | | | | | | | | | Ending balance | $ | 3,274,340 | | $ | 1,601,638 | | $ | 2,144,236 | | $ | 129,460 | | $ | 1,727,540 | | $ | 8,877,214 | Ending balance: impaired loans | $ | 425,835 | | $ | 153,875 | | $ | 110,939 | | $ | 50,373 | | $ | 38,237 | | $ | 779,259 | Ending balance: purchased credit-impaired loans | $ | 153,609 | | $ | 4,185 | | $ | - | | $ | - | | $ | - | | $ | 157,794 | Ending balance: loans with general allowance | $ | 2,694,896 | | $ | 1,443,578 | | $ | 2,033,297 | | $ | 79,087 | | $ | 1,689,303 | | $ | 7,940,161 | | | | | | | | | | | | | | | | | | | | | Residential Mortgage Loans | | Commercial Mortgage Loans | | Commercial & Industrial Loans | | Construction Loans | | Consumer Loans | | Total | | | | | | | (In thousands) | | | | | | | | | | | | | | | | | | Nine-Month Period Ended September 30, 2017 | | | | | | | | | | | | | | | | | | Allowance for loan and lease losses: | | | | | | | | | | | | | | | | | | Beginning balance | $ | 33,980 | | $ | 57,261 | | $ | 61,953 | | $ | 2,562 | | $ | 49,847 | | $ | 205,603 | Charge-offs | | (22,369) | | | (32,123) | | | (19,168) | | | (705) | | | (33,386) | | | (107,751) | Recoveries | | 1,961 | | | 151 | | | 5,613 | | | 594 | | | 6,148 | | | 14,467 | Provision (release) | | 43,480 | | | 30,654 | | | (8,019) | | | 1,496 | | | 50,940 | | | 118,551 | Ending balance | $ | 57,052 | | $ | 55,943 | | $ | 40,379 | | $ | 3,947 | | $ | 73,549 | | $ | 230,870 | Ending balance: specific reserve for impaired loans | $ | 19,417 | | $ | 10,456 | | $ | 11,240 | | $ | 1,865 | | $ | 5,177 | | $ | 48,155 | Ending balance: purchased credit-impaired loans (1) | $ | 9,863 | | $ | 372 | | $ | - | | $ | - | | $ | - | | $ | 10,235 | Ending balance: general allowance | $ | 27,772 | | $ | 45,115 | | $ | 29,139 | | $ | 2,082 | | $ | 68,372 | | $ | 172,480 | Loans held for investment: | | | | | | | | | | | | | | | | | | Ending balance | $ | 3,274,340 | | $ | 1,601,638 | | $ | 2,144,236 | | $ | 129,460 | | $ | 1,727,540 | | $ | 8,877,214 | Ending balance: impaired loans | $ | 425,835 | | $ | 153,875 | | $ | 110,939 | | $ | 50,373 | | $ | 38,237 | | $ | 779,259 | Ending balance: purchased credit-impaired loans | $ | 153,609 | | $ | 4,185 | | $ | - | | $ | - | | $ | - | | $ | 157,794 | Ending balance: loans with general allowance | $ | 2,694,896 | | $ | 1,443,578 | | $ | 2,033,297 | | $ | 79,087 | | $ | 1,689,303 | | $ | 7,940,161 | | | | | | | | | | | | | | | | | | | | (1) | Refer to Note 7- Loans Held For Investment-PCI Loans, for a detail of changes in the allowance for loan losses related to PCI loans. |
The tables below present the allowance for loan and lease losses and the carrying value of loans by portfolio segment as of September 30, 2018 and December 31, 2017: | | | | | | | | | | | | | | | | As of September 30, 2018 | Residential Mortgage Loans | | Commercial Mortgage Loans | | Commercial & Industrial Loans | | | | Consumer Loans | | | | | | | | | Construction Loans | | | | | | (Dollars in thousands) | | | | | | | Total | | Impaired loans without specific reserves: | | | | | | | | | | | | | | | | | | | | Principal balance of loans, net of charge-offs | $ | 117,375 | | $ | 73,433 | | $ | 34,793 | | $ | 1,116 | | $ | 2,189 | | | $ | 228,906 | | Impaired loans with specific reserves: | | | | | | | | | | | | | | | | | | | | Principal balance of loans, net of charge-offs | | 291,419 | | | 169,787 | | | 62,361 | | | 5,781 | | | 29,756 | | | | 559,104 | | Allowance for loan and lease losses | | 18,482 | | | 17,044 | | | 10,798 | | | 906 | | | 6,083 | | | | 53,313 | | Allowance for loan and lease losses to principal | | | | | | | | | | | | | | | | | | | | balance | | 6.34 | % | | 10.04 | % | | 17.32 | % | | 15.67 | % | | 20.44 | % | | | 9.54 | % | PCI loans: | | | | | | | | | | | | | | | | | | | | Carrying value of PCI loans | | 145,203 | | | 3,919 | | | - | | | - | | | - | | | | 149,122 | | Allowance for PCI loans | | 10,954 | | | 400 | | | - | | | - | | | - | | | | 11,354 | | Allowance for PCI loans to carrying value | | 7.54 | % | | 10.21 | % | | - | | | - | | | - | | | | 7.61 | % | Loans with general allowance: | | | | | | | | | | | | | | | | | | | | Principal balance of loans | | 2,653,984 | | | 1,259,363 | | | 1,971,102 | | | 75,965 | | | 1,819,407 | | | | 7,779,821 | | Allowance for loan and lease losses | | 18,571 | | | 31,826 | | | 33,368 | | | 2,173 | | | 49,958 | | | | 135,896 | | Allowance for loan and lease losses to principal | | | | | | | | | | | | | | | | | | | | balance | | 0.70 | % | | 2.53 | % | | 1.69 | % | | 2.86 | % | | 2.75 | | % | | 1.75 | % | Total loans held for investment: | | | | | | | | | | | | | | | | | | | | Principal balance of loans | $ | 3,207,981 | | $ | 1,506,502 | | $ | 2,068,256 | | $ | 82,862 | | $ | 1,851,352 | | | $ | 8,716,953 | | Allowance for loan and lease losses | | 48,007 | | | 49,270 | | | 44,166 | | | 3,079 | | | 56,041 | | | | 200,563 | | Allowance for loan and lease losses to principal | | | | | | | | | | | | | | | | | | | | balance (1) | | 1.50 | % | | 3.27 | % | | 2.14 | % | | 3.72 | % | | 3.03 | | % | | 2.30 | % | | | |
| | | | | | | | | | | | | As of December 31, 2017 | Residential Mortgage Loans | | Commercial Mortgage Loans | | Commercial & Industrial Loans | | | | Consumer Loans | | | | | | | | Construction Loans | | | | | (Dollars in thousands) | | | | | | Total | | | | | | | | | | | | | | | | | | | | | Impaired loans without specific reserves: | | | | | | | | | | | | | | | | | | | Principal balance of loans, net of charge-offs | $ | 116,818 | | $ | 65,100 | | $ | 28,292 | | $ | 48 | | $ | 2,788 | | $ | 213,046 | | | | | | | | | | | | | | | | | | | | | Impaired loans with specific reserves: | | | | | | | | | | | | | | | | | | | Principal balance of loans, net of charge-offs | | 316,616 | | | 87,814 | | | 90,008 | | | 47,218 | | | 35,606 | | | 577,262 | | Allowance for loan and lease losses | | 22,086 | | | 9,783 | | | 12,359 | | | 2,017 | | | 5,165 | | | 51,410 | | Allowance for loan and lease losses to principal | | | | | | | | | | | | | | | | | | | balance | | 6.98 | % | | 11.14 | % | | 13.73 | % | | 4.27 | % | | 14.51 | % | | 8.91 | % | | | | | | | | | | | | | | | | | | | | PCI loans: | | | | | | | | | | | | | | | | | | | Carrying value of PCI loans | | 153,991 | | | 4,183 | | | - | | | - | | | - | | | 158,174 | | Allowance for PCI loans | | 10,873 | | | 378 | | | - | | | - | | | - | | | 11,251 | | Allowance for PCI loans to carrying value | | 7.06 | % | | 9.04 | % | | - | | | - | | | - | | | 7.11 | % | | | | | | | | | | | | | | | | | | | | Loans with general allowance: | | | | | | | | | | | | | | | | | | | Principal balance of loans | | 2,703,532 | | | 1,457,875 | | | 1,964,953 | | | 64,131 | | | 1,711,503 | | | 7,901,994 | | Allowance for loan and lease losses | | 26,016 | | | 38,332 | | | 36,512 | | | 2,505 | | | 65,817 | | | 169,182 | | Allowance for loan and lease losses to principal | | | | | | | | | | | | | | | | | | | balance | | 0.96 | % | | 2.63 | % | | 1.86 | % | | 3.91 | % | | 3.85 | % | | 2.14 | % | | | | | | | | | | | | | | | | | | | | Total loans held for investment: | | | | | | | | | | | | | | | | | | | Principal balance of loans | $ | 3,290,957 | | $ | 1,614,972 | | $ | 2,083,253 | | $ | 111,397 | | $ | 1,749,897 | | $ | 8,850,476 | | Allowance for loan and lease losses | | 58,975 | | | 48,493 | | | 48,871 | | | 4,522 | | | 70,982 | | | 231,843 | | Allowance for loan and lease losses to principal | | | | | | | | | | | | | | | | | | | balance (1) | | 1.79 | % | | 3.00 | % | | 2.35 | % | | 4.06 | % | | 4.06 | % | | 2.62 | % | | | | | | | | | | | | | | | | | | | | __________ | (1) Loans used in the denominator include PCI loans of $149.1 million and $158.2 million as of September 30, 2018 and December 31, 2017, respectively. However, the Corporation separately tracks and reports PCI loans and excludes these loans from the amounts of non-performing loans, impaired loans, TDRs and non-performing assets. |
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