Loans, Leases and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Schedule of Held for Investment Loan Portfolio Composition of Loans, Leases and Allowance for Credit Losses

The composition of the Company’s held for investment loan portfolio is as follows: 

	June 30, 2017			December 31, 2016
	(in thousands)
Commercial and industrial	$	6,236,083		$	5,755,021
Commercial real estate - non-owner occupied	3,649,108			3,543,956
Commercial real estate - owner occupied	2,021,226			2,013,276
Construction and land development	1,601,705			1,478,114
Residential real estate	334,800			259,432
Commercial leases	82,429			100,765
Consumer	47,908			38,963
Loans, net	13,973,259			13,189,527
Allowance for credit losses	(131,811		)	(124,704		)
Total loans HFI	$	13,841,448		$	13,064,823

Contractual Aging of Loan Portfolio by Class of Loans Including Loans Held for Sale and Excluding Deferred Fees/Costs

The following table presents the contractual aging of the recorded investment in past due loans held for investment by class of loans:

	June 30, 2017
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Total
	(in thousands)
Commercial real estate
Owner occupied	$	2,016,000	$	1,120	$	248	$	3,858	$	5,226	$	2,021,226
Non-owner occupied	3,413,497		—		594		654		1,248		3,414,745
Multi-family	234,363		—		—		—		—		234,363
Commercial and industrial
Commercial	6,230,151		668		2,465		2,799		5,932		6,236,083
Leases	82,409		—		20		—		20		82,429
Construction and land development
Construction	1,072,426		—		—		—		—		1,072,426
Land	527,996		—		—		1,283		1,283		529,279
Residential real estate	327,871		232		687		6,010		6,929		334,800
Consumer	47,690		58		5		155		218		47,908
Total loans	$	13,952,403	$	2,078	$	4,019	$	14,759	$	20,856	$	13,973,259

	December 31, 2016
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Total
	(in thousands)
Commercial real estate
Owner occupied	$	2,009,728	$	71	$	—	$	3,477	$	3,548	$	2,013,276
Non-owner occupied	3,339,121		672		2		—		674		3,339,795
Multi-family	204,161		—		—		—		—		204,161
Commercial and industrial
Commercial	5,747,368		549		584		6,520		7,653		5,755,021
Leases	100,761		—		—		4		4		100,765
Construction and land development
Construction	973,242		—		—		—		—		973,242
Land	503,588		—		—		1,284		1,284		504,872
Residential real estate	249,726		4,333		281		5,092		9,706		259,432
Consumer	38,765		26		2		170		198		38,963
Total loans	$	13,166,460	$	5,651	$	869	$	16,547	$	23,067	$	13,189,527

Summary of Recorded Investment in Nonaccrual Loans and Loans Past Due 90 Days Still Accruing Interest by Loan Class

The following table presents the recorded investment in non-accrual loans and loans past due ninety days or more and still accruing interest by class of loans: 

	June 30, 2017								December 31, 2016
	Non-accrual loans						Loans past due 90 days or more and still accruing		Non-accrual loans						Loans past due 90 days or more and still accruing
	Current		Past Due/ Delinquent		Total Non-accrual				Current		Past Due/ Delinquent		Total Non-accrual
	(in thousands)
Commercial real estate
Owner occupied	$	4,084	$	3,858	$	7,942	$	—	$	5,084	$	3,264	$	8,348	$	285
Non-owner occupied	2,474		308		2,782		345		8,317		1		8,318		—
Multi-family	—		—		—		—		—		—		—		—
Commercial and industrial
Commercial	9,566		4,716		14,282		147		10,893		6,043		16,936		775
Leases	18		—		18		—		28		3		31		—
Construction and land development
Construction	—		—		—		—		—		—		—		—
Land	—		1,284		1,284		—		—		1,284		1,284		—
Residential real estate	1,127		2,481		3,608		3,529		99		5,093		5,192		—
Consumer	—		155		155		—		—		163		163		7
Total	$	17,269	$	12,802	$	30,071	$	4,021	$	24,421	$	15,851	$	40,272	$	1,067

Loans by Risk Rating

The following tables present gross loans by risk rating: 

	June 30, 2017
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial real estate
Owner occupied	$	1,950,186	$	17,877	$	50,828	$	2,335	$	—	$	2,021,226
Non-owner occupied	3,367,136		10,658		36,951		—		—		3,414,745
Multi-family	234,363		—		—		—		—		234,363
Commercial and industrial
Commercial	6,058,156		89,063		88,864		—		—		6,236,083
Leases	82,411		—		18		—		—		82,429
Construction and land development
Construction	1,051,677		9,678		11,071		—		—		1,072,426
Land	513,966		12,879		2,434		—		—		529,279
Residential real estate	325,593		828		8,379		—		—		334,800
Consumer	47,640		53		215		—		—		47,908
Total	$	13,631,128	$	141,036	$	198,760	$	2,335	$	—	$	13,973,259

	June 30, 2017
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	13,629,028	$	140,755	$	181,028	$	1,592	$	—	$	13,952,403
Past due 30 - 59 days	550		103		1,425		—		—		2,078
Past due 60 - 89 days	1,454		31		2,534		—		—		4,019
Past due 90 days or more	96		147		13,773		743		—		14,759
Total	$	13,631,128	$	141,036	$	198,760	$	2,335	$	—	$	13,973,259

	December 31, 2016
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial real estate
Owner occupied	$	1,935,322	$	53,634	$	22,090	$	2,230	$	—	$	2,013,276
Non-owner occupied	3,278,090		22,972		38,733		—		—		3,339,795
Multi-family	203,964		197		—		—		—		204,161
Commercial and industrial
Commercial	5,621,448		70,011		58,562		5,000		—		5,755,021
Leases	100,737		—		28		—		—		100,765
Construction and land development
Construction	961,290		—		11,952		—		—		973,242
Land	501,569		337		2,966		—		—		504,872
Residential real estate	252,304		929		6,199		—		—		259,432
Consumer	38,698		64		201		—		—		38,963
Total	$	12,893,422	$	148,144	$	140,731	$	7,230	$	—	$	13,189,527

	December 31, 2016
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	12,887,308	$	147,838	$	124,084	$	7,230	$	—	$	13,166,460
Past due 30 - 59 days	5,433		96		122		—		—		5,651
Past due 60 - 89 days	410		210		249		—		—		869
Past due 90 days or more	271		—		16,276		—		—		16,547
Total	$	12,893,422	$	148,144	$	140,731	$	7,230	$	—	$	13,189,527

Impaired Loans by Loan Class

The following table presents impaired loans by class: 

	June 30, 2017		December 31, 2016
	(in thousands)
Commercial real estate
Owner occupied	$	20,928	$	20,748
Non-owner occupied	21,957		25,524
Multi-family	—		—
Commercial and industrial
Commercial	33,197		21,107
Leases	341		355
Construction and land development
Construction	—		—
Land	12,146		14,838
Residential real estate	16,867		16,391
Consumer	198		246
Total	$	105,634	$	99,209

Recorded Investment in Loans Classified as Impaired

The table below reflects the recorded investment in loans classified as impaired: 

	June 30, 2017			December 31, 2016
	(in thousands)
Impaired loans with a specific valuation allowance under ASC 310 (1)	$	8,295		$	10,909
Impaired loans without a specific valuation allowance under ASC 310 (2)	97,339			88,300
Total impaired loans	$	105,634		$	99,209
Valuation allowance related to impaired loans (3)	$	(3,878	)	$	(4,239	)

(1) Includes TDR loans of $6.9 million and $2.5 million at June 30, 2017 and December 31, 2016, respectively.

(2) Includes TDR loans of $48.3 million and $58.3 million at June 30, 2017 and December 31, 2016, respectively.

(3) Includes valuation allowance related to TDR loans of $2.6 million and $0.6 million at June 30, 2017 and December 31, 2016, respectively.

The following table presents the average investment in impaired loans and income recognized on impaired loans: 

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
	(in thousands)
Average investment in impaired loans	$	107,816	$	109,833	$	105,504	$	116,173
Interest income recognized on impaired loans	1,115		1,050		2,035		2,163
Interest recognized on non-accrual loans, cash basis	350		225		678		397

Average Investment in Impaired Loans by Loan Class

The following table presents the average investment in impaired loans by loan class: 

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
	(in thousands)
Commercial real estate
Owner occupied	$	21,500	$	19,075	$	21,314	$	20,406
Non-owner occupied	22,149		31,894		23,274		32,463
Multi-family	—		—		—		—
Commercial and industrial
Commercial	33,557		24,299		29,646		28,001
Leases	343		333		355		1,191
Construction and land development
Construction	—		—		—		—
Land	12,956		18,299		13,694		18,099
Residential real estate	17,107		15,635		17,007		15,700
Consumer	204		298		214		313
Total	$	107,816	$	109,833	$	105,504	$	116,173

Interest Income on Impaired Loans by Loan Class

The following table presents interest income on impaired loans by class: 

	Three Months Ended June 30,				Six Months Ended June 30,
	2017		2016		2017		2016
	(in thousands)
Commercial real estate
Owner occupied	$	188	$	247	$	364	$	542
Non-owner occupied	280		313		519		651
Multi-family	—		—		—		—
Commercial and industrial
Commercial	333		121		473		229
Leases	4		4		7		36
Construction and land development
Construction	—		—		—		—
Land	166		239		388		446
Residential real estate	143		125		282		256
Consumer	1		1		2		3
Total	$	1,115	$	1,050	$	2,035	$	2,163

Tabular Disclosure of Nonperforming Assets

The following table summarizes nonperforming assets: 

	June 30, 2017		December 31, 2016
	(in thousands)
Non-accrual loans (1)	$	30,071	$	40,272
Loans past due 90 days or more on accrual status (2)	4,021		1,067
Accruing troubled debt restructured loans	44,221		53,637
Total nonperforming loans	78,313		94,976
Other assets acquired through foreclosure, net	30,988		47,815
Total nonperforming assets	$	109,301	$	142,791

(1) Includes non-accrual TDR loans of $11.0 million and $7.1 million at June 30, 2017 and December 31, 2016, respectively.

(2)

Accretable Yield Table

Changes in the accretable yield for loans acquired with deteriorated credit quality are as follows:  

	Three Months Ended June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
	(in thousands)
Balance, at beginning of period	$	13,812		$	13,541		$	15,177		$	15,925
Additions due to acquisition	—			4,301			—			4,301
Reclassifications from non-accretable to accretable yield (1)	2,086			—			2,086			—
Accretion to interest income	(777		)	(887		)	(1,684		)	(1,669		)
Reversal of fair value adjustments upon disposition of loans	(874		)	(1,092		)	(1,332		)	(2,694		)
Balance, at end of period	$	14,247		$	15,863		$	14,247		$	15,863

(1) The primary drivers of reclassification from non-accretable to accretable yield resulted from changes in estimated cash flows.

Allowances for Credit Losses

The following table summarizes the changes in the allowance for credit losses by portfolio type: 

	Three Months Ended June 30,
	Construction and Land Development			Commercial Real Estate			Residential Real Estate			Commercial and Industrial			Consumer			Total
	(in thousands)
2017
Beginning Balance	$	21,097		$	28,004		$	4,412		$	73,429		$	707		$	127,649
Charge-offs	—			1,819			332			651			8			2,810
Recoveries	(508		)	(406		)	(1,299		)	(1,759		)	—			(3,972		)
Provision	(753		)	2,002			(541		)	2,197			95			3,000
Ending balance	$	20,852		$	28,593		$	4,838		$	76,734		$	794		$	131,811
2016
Beginning Balance	$	19,425		$	23,104		$	4,938		$	71,156		$	604		$	119,227
Charge-offs	—			244			—			1,161			46			1,451
Recoveries	(58		)	(770		)	(153		)	(804		)	(43		)	(1,828		)
Provision	1,903			1,237			(545		)	(252		)	157			2,500
Ending balance	$	21,386		$	24,867		$	4,546		$	70,547		$	758		$	122,104

	Six Months Ended June 30,
	Construction and Land Development			Commercial Real Estate			Residential Real Estate			Commercial and Industrial			Consumer			Total
	(in thousands)
2017
Beginning Balance	$	21,175		$	25,673		$	3,851		$	73,333		$	672		$	124,704
Charge-offs	—			1,819			447			3,245			42			5,553
Recoveries	(785		)	(938		)	(1,551		)	(2,087		)	(49		)	(5,410		)
Provision	(1,108		)	3,801			(117		)	4,559			115			7,250
Ending balance	$	20,852		$	28,593		$	4,838		$	76,734		$	794		$	131,811
2016
Beginning Balance	$	18,976		$	23,160		$	5,278		$	71,181		$	473		$	119,068
Charge-offs	—			654			26			8,652			120			9,452
Recoveries	(153		)	(4,435		)	(410		)	(2,380		)	(110		)	(7,488		)
Provision	2,257			(2,074		)	(1,116		)	5,638			295			5,000
Ending balance	$	21,386		$	24,867		$	4,546		$	70,547		$	758		$	122,104

The following table presents impairment method information related to loans and allowance for credit losses by loan portfolio segment: 

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Commercial Leases		Consumer		Total Loans
	(in thousands)
Loans as of June 30, 2017:
Recorded Investment:
Impaired loans with an allowance recorded	$	743	$	—	$	7,552	$	—	$	—	$	—	$	—	$	8,295
Impaired loans with no allowance recorded	20,186		21,957		25,644		16,867		12,146		341		198		97,339
Total loans individually evaluated for impairment	20,929		21,957		33,196		16,867		12,146		341		198		105,634
Loans collectively evaluated for impairment	1,989,251		3,489,985		6,202,887		317,323		1,589,559		82,088		47,710		13,718,803
Loans acquired with deteriorated credit quality	11,046		137,166		—		610		—		—		—		148,822
Total recorded investment	$	2,021,226	$	3,649,108	$	6,236,083	$	334,800	$	1,601,705	$	82,429	$	47,908	$	13,973,259
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	743	$	—	$	7,568	$	—	$	—	$	—	$	—	$	8,311
Impaired loans with no allowance recorded	28,552		29,346		55,105		26,174		29,416		493		10,815		179,901
Total loans individually evaluated for impairment	29,295		29,346		62,673		26,174		29,416		493		10,815		188,212
Loans collectively evaluated for impairment	1,989,251		3,489,985		6,202,887		317,323		1,589,559		82,088		47,710		13,718,803
Loans acquired with deteriorated credit quality	14,551		166,158		4,880		729		—		—		—		186,318
Total unpaid principal balance	$	2,033,097	$	3,685,489	$	6,270,440	$	344,226	$	1,618,975	$	82,581	$	58,525	$	14,093,333
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	743	$	—	$	3,135	$	—	$	—	$	—	$	—	$	3,878
Impaired loans with no allowance recorded	—		—		—		—		—		—		—		—
Total loans individually evaluated for impairment	743		—		3,135		—		—		—		—		3,878
Loans collectively evaluated for impairment	12,553		14,455		73,597		4,838		20,014		—		794		126,251
Loans acquired with deteriorated credit quality	—		842		2		—		838		—		—		1,682
Total allowance for credit losses	$	13,296	$	15,297	$	76,734	$	4,838	$	20,852	$	—	$	794	$	131,811

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Commercial Leases		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2016:
Recorded Investment:
Impaired loans with an allowance recorded	$	3,125	$	—	$	7,766	$	—	$	—	$	—	$	18	$	10,909
Impaired loans with no allowance recorded	17,624		25,524		13,340		16,391		14,838		355		228		88,300
Total loans individually evaluated for impairment	20,749		25,524		21,106		16,391		14,838		355		246		99,209
Loans collectively evaluated for impairment	1,981,176		3,383,585		5,733,915		242,409		1,443,952		100,410		38,717		12,924,164
Loans acquired with deteriorated credit quality	11,351		134,847		—		632		19,324		—		—		166,154
Total recorded investment	$	2,013,276	$	3,543,956	$	5,755,021	$	259,432	$	1,478,114	$	100,765	$	38,963	$	13,189,527
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	3,125	$	—	$	8,019	$	—	$	—	$	—	$	18	$	11,162
Impaired loans with no allowance recorded	26,336		33,632		43,176		26,225		33,487		507		1,358		164,721
Total loans individually evaluated for impairment	29,461		33,632		51,195		26,225		33,487		507		1,376		175,883
Loans collectively evaluated for impairment	1,981,176		3,383,585		5,733,915		242,409		1,443,952		100,410		38,717		12,924,164
Loans acquired with deteriorated credit quality	14,878		165,275		925		738		19,858		—		—		201,674
Total unpaid principal balance	$	2,025,515	$	3,582,492	$	5,786,035	$	269,372	$	1,497,297	$	100,917	$	40,093	$	13,301,721
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	937	$	—	$	3,301	$	—	$	—	$	—	$	1	$	4,239
Impaired loans with no allowance recorded	—		—		—		—		—		—		—		—
Total loans individually evaluated for impairment	937		—		3,301		—		—		—		1		4,239
Loans collectively evaluated for impairment	11,403		12,646		69,673		3,851		20,398		—		671		118,642
Loans acquired with deteriorated credit quality	—		687		359		—		777		—		—		1,823
Total allowance for credit losses	$	12,340	$	13,333	$	73,333	$	3,851	$	21,175	$	—	$	672	$	124,704