Loans, Leases and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2018

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, 2018			December 31, 2017
	(in thousands)
Commercial and industrial	$	7,278,408		$	6,841,381
Commercial real estate - non-owner occupied	4,010,576			3,904,011
Commercial real estate - owner occupied	2,270,531			2,241,613
Construction and land development	1,978,287			1,632,204
Residential real estate	545,256			425,940
Consumer	55,202			48,786
Loans, net of deferred loan fees and costs	16,138,260			15,093,935
Allowance for credit losses	(147,083		)	(140,050		)
Total loans HFI	$	15,991,177		$	14,953,885

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, 2018
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 Days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	7,275,474	$	801	$	13	$	2,120	$	2,934	$	7,278,408
Commercial real estate
Owner occupied	2,268,882		156		—		1,493		1,649		2,270,531
Non-owner occupied	3,871,249		—		—		—		—		3,871,249
Multi-family	139,327		—		—		—		—		139,327
Construction and land development
Construction	1,301,199		—		—		—		—		1,301,199
Land	677,088		—		—		—		—		677,088
Residential real estate	535,914		2,492		58		6,792		9,342		545,256
Consumer	54,869		—		—		333		333		55,202
Total loans	$	16,124,002	$	3,449	$	71	$	10,738	$	14,258	$	16,138,260

	December 31, 2017
	Current		30-59 Days Past Due		60-89 Days Past Due		Over 90 days Past Due		Total Past Due		Total
	(in thousands)
Commercial and industrial	$	6,835,385	$	2,245	$	669	$	3,082	$	5,996	$	6,841,381
Commercial real estate
Owner occupied	2,240,457		1,026		—		130		1,156		2,241,613
Non-owner occupied	3,696,729		2,993		—		2,847		5,840		3,702,569
Multi-family	201,442		—		—		—		—		201,442
Construction and land development
Construction	1,090,176		—		—		—		—		1,090,176
Land	536,917		—		—		5,111		5,111		542,028
Residential real estate	411,857		6,874		1,487		5,722		14,083		425,940
Consumer	48,408		83		213		82		378		48,786
Total loans	$	15,061,371	$	13,221	$	2,369	$	16,974	$	32,564	$	15,093,935

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, 2018								December 31, 2017
	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 and industrial	$	17,231	$	2,120	$	19,351	$	—	$	17,913	$	4,113	$	22,026	$	43
Commercial real estate
Owner occupied	—		1,493		1,493		—		1,089		792		1,881		—
Non-owner occupied	—		—		—		—		—		5,840		5,840		—
Multi-family	—		—		—		—		—		—		—		—
Construction and land development
Construction	—		—		—		—		—		—		—		—
Land	—		—		—		—		868		5,111		5,979		—
Residential real estate	4,074		8,766		12,840		—		2,039		6,078		8,117		—
Consumer	—		333		333		—		—		82		82		—
Total	$	21,305	$	12,712	$	34,017	$	—	$	21,909	$	22,016	$	43,925	$	43

Loans by Risk Rating

The following tables present gross loans by risk rating: 

	June 30, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	7,093,991	$	84,327	$	98,615	$	1,475	$	—	$	7,278,408
Commercial real estate
Owner occupied	2,166,460		42,517		60,766		788		—		2,270,531
Non-owner occupied	3,848,975		13,986		8,288		—		—		3,871,249
Multi-family	139,327		—		—		—		—		139,327
Construction and land development
Construction	1,292,058		3,202		5,939		—		—		1,301,199
Land	676,005		267		816		—		—		677,088
Residential real estate	525,912		5,936		13,408		—		—		545,256
Consumer	54,578		43		581		—		—		55,202
Total	$	15,797,306	$	150,278	$	188,413	$	2,263	$	—	$	16,138,260

	June 30, 2018
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	15,796,007	$	149,817	$	176,311	$	1,867	$	—	$	16,124,002
Past due 30 - 59 days	518		459		2,472		—		—		3,449
Past due 60 - 89 days	69		2		—		—		—		71
Past due 90 days or more	712		—		9,630		396		—		10,738
Total	$	15,797,306	$	150,278	$	188,413	$	2,263	$	—	$	16,138,260

	December 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Commercial and industrial	$	6,675,574	$	85,781	$	76,328	$	3,698	$	—	$	6,841,381
Commercial real estate
Owner occupied	2,149,465		43,122		48,397		629		—		2,241,613
Non-owner occupied	3,676,711		11,166		14,692		—		—		3,702,569
Multi-family	201,442		—		—		—		—		201,442
Construction and land development
Construction	1,072,342		4,477		13,357		—		—		1,090,176
Land	535,412		637		5,979		—		—		542,028
Residential real estate	408,527		8,971		8,442		—		—		425,940
Consumer	47,824		878		84		—		—		48,786
Total	$	14,767,297	$	155,032	$	167,279	$	4,327	$	—	$	15,093,935

	December 31, 2017
	Pass		Special Mention		Substandard		Doubtful		Loss		Total
	(in thousands)
Current (up to 29 days past due)	$	14,758,149	$	154,295	$	145,934	$	2,993	$	—	$	15,061,371
Past due 30 - 59 days	7,966		518		4,737		—		—		13,221
Past due 60 - 89 days	1,182		219		968		—		—		2,369
Past due 90 days or more	—		—		15,640		1,334		—		16,974
Total	$	14,767,297	$	155,032	$	167,279	$	4,327	$	—	$	15,093,935

Impaired Loans by Loan Class

The following table presents impaired loans by class: 

	June 30, 2018		December 31, 2017
	(in thousands)
Commercial and industrial	$	49,737	$	34,156
Commercial real estate
Owner occupied	9,318		10,430
Non-owner occupied	17,470		21,251
Multi-family	—		—
Construction and land development
Construction	—		—
Land	9,600		15,426
Residential real estate	21,114		17,170
Consumer	368		121
Total	$	107,607	$	98,554

Recorded Investment in Loans Classified as Impaired

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,
	2018		2017		2018		2017
	(in thousands)
Average balance on impaired loans	$	104,403	$	107,816	$	98,743	$	105,504
Interest income recognized on impaired loans	1,122		1,115		1,995		2,035
Interest recognized on non-accrual loans, cash basis	436		350		874		678

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

	June 30, 2018			December 31, 2017
	(in thousands)
Impaired loans with a specific valuation allowance under ASC 310 (1)	$	3,523		$	19,315
Impaired loans without a specific valuation allowance under ASC 310 (2)	104,084			79,239
Total impaired loans	$	107,607		$	98,554
Valuation allowance related to impaired loans (3)	$	(2,349	)	$	(5,606	)

(1) Includes TDR loans of $0.4 million and $3.7 million at June 30, 2018 and December 31, 2017, respectively.

(2) Includes TDR loans of $49.6 million and $48.8 million at June 30, 2018 and December 31, 2017, respectively.

(3) Includes valuation allowance related to TDR loans of $0.4 million and $1.2 million at June 30, 2018 and December 31, 2017, respectively.

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,
	2018		2017		2018		2017
	(in thousands)
Commercial and industrial	$	49,373	$	33,900	$	43,111	$	30,001
Commercial real estate
Owner occupied	8,417		21,500		8,730		21,314
Non-owner occupied	17,524		22,149		18,225		23,274
Multi-family	—		—		—		—
Construction and land development
Construction	—		—		—		—
Land	9,603		12,956		9,942		13,694
Residential real estate	19,109		17,107		18,454		17,007
Consumer	377		204		281		214
Total	$	104,403	$	107,816	$	98,743	$	105,504

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,
	2018		2017		2018		2017
	(in thousands)
Commercial and industrial	$	489	$	337	$	739	$	480
Commercial real estate
Owner occupied	131		188		258		364
Non-owner occupied	265		280		526		519
Multi-family	—		—		—		—
Construction and land development
Construction	—		—		—		—
Land	149		166		279		388
Residential real estate	88		143		192		282
Consumer	—		1		1		2
Total	$	1,122	$	1,115	$	1,995	$	2,035

Tabular Disclosure of Nonperforming Assets

The following table summarizes nonperforming assets: 

	June 30, 2018		December 31, 2017
	(in thousands)
Non-accrual loans (1)	$	34,017	$	43,925
Loans past due 90 days or more on accrual status (2)	—		43
Accruing troubled debt restructured loans	42,407		42,431
Total nonperforming loans	76,424		86,399
Other assets acquired through foreclosure, net	27,541		28,540
Total nonperforming assets	$	103,965	$	114,939

(1) Includes non-accrual TDR loans of $7.6 million and $10.1 million at June 30, 2018 and December 31, 2017, 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,
	2018			2017			2018			2017
	(in thousands)
Balance, at beginning of period	$	8,108		$	13,812		$	9,324		$	15,177
Reclassifications from non-accretable to accretable yield (1)	—			2,086			683			2,086
Accretion to interest income	(264		)	(777		)	(578		)	(1,684		)
Reversal of fair value adjustments upon disposition of loans	(3,016		)	(874		)	(4,601		)	(1,332		)
Balance, at end of period	$	4,828		$	14,247		$	4,828		$	14,247

(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)
2018
Beginning Balance	$	22,594		$	32,868		$	5,519		$	82,878		$	800		$	144,659
Charge-offs	1			233			885			2,777			5			3,901
Recoveries	(8		)	(246		)	(141		)	(916		)	(14		)	(1,325		)
Provision	(442		)	(902		)	2,074			4,227			43			5,000
Ending balance	$	22,159		$	31,979		$	6,849		$	85,244		$	852		$	147,083
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

	Six Months Ended June 30,
	Construction and Land Development			Commercial Real Estate			Residential Real Estate			Commercial and Industrial			Consumer			Total
	(in thousands)
2018
Beginning Balance	$	19,511		$	31,495		$	5,478		$	82,793		$	773		$	140,050
Charge-offs	1			233			992			6,295			5			7,526
Recoveries	(1,397		)	(371		)	(390		)	(1,376		)	(25		)	(3,559		)
Provision	1,252			346			1,973			7,370			59			11,000
Ending balance	$	22,159		$	31,979		$	6,849		$	85,244		$	852		$	147,083
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

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		Consumer		Total Loans
	(in thousands)
Loans as of June 30, 2018;
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	—	$	3,352	$	171	$	—	$	—	$	3,523
Impaired loans with no allowance recorded	9,319		17,470		46,385		20,942		9,600		368		104,084
Total loans individually evaluated for impairment	9,319		17,470		49,737		21,113		9,600		368		107,607
Loans collectively evaluated for impairment	2,253,581		3,911,232		7,228,671		523,553		1,968,687		54,834		15,940,558
Loans acquired with deteriorated credit quality	7,631		81,874		—		590		—		—		90,095
Total recorded investment	$	2,270,531	$	4,010,576	$	7,278,408	$	545,256	$	1,978,287	$	55,202	$	16,138,260
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	—	$	4,077	$	171	$	—	$	—	$	4,248
Impaired loans with no allowance recorded	15,855		24,247		80,810		29,948		26,228		10,823		187,911
Total loans individually evaluated for impairment	15,855		24,247		84,887		30,119		26,228		10,823		192,159
Loans collectively evaluated for impairment	2,253,581		3,911,232		7,228,671		523,553		1,968,687		54,834		15,940,558
Loans acquired with deteriorated credit quality	9,831		99,083		4,362		709		—		—		113,985
Total unpaid principal balance	$	2,279,267	$	4,034,562	$	7,317,920	$	554,381	$	1,994,915	$	65,657	$	16,246,702
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	—	$	2,178	$	171	$	—	$	—	$	2,349
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		—		2,178		171		—		—		2,349
Loans collectively evaluated for impairment	14,651		16,843		83,063		6,678		22,159		852		144,246
Loans acquired with deteriorated credit quality	—		485		3		—		—		—		488
Total allowance for credit losses	$	14,651	$	17,328	$	85,244	$	6,849	$	22,159	$	852	$	147,083

	Commercial Real Estate-Owner Occupied		Commercial Real Estate-Non-Owner Occupied		Commercial and Industrial		Residential Real Estate		Construction and Land Development		Consumer		Total Loans
	(in thousands)
Loans as of December 31, 2017;
Recorded Investment
Impaired loans with an allowance recorded	$	—	$	—	$	19,315	$	—	$	—	$	—	$	19,315
Impaired loans with no allowance recorded	10,430		21,250		14,842		17,170		15,426		121		79,239
Total loans individually evaluated for impairment	10,430		21,250		34,157		17,170		15,426		121		98,554
Loans collectively evaluated for impairment	2,221,614		3,777,219		6,807,181		408,169		1,616,778		48,665		14,879,626
Loans acquired with deteriorated credit quality	9,569		105,542		43		601		—		—		115,755
Total recorded investment	$	2,241,613	$	3,904,011	$	6,841,381	$	425,940	$	1,632,204	$	48,786	$	15,093,935
Unpaid Principal Balance
Impaired loans with an allowance recorded	$	—	$	—	$	20,795	$	—	$	—	$	—	$	20,795
Impaired loans with no allowance recorded	17,459		28,028		42,261		26,057		32,289		10,695		156,789
Total loans individually evaluated for impairment	17,459		28,028		63,056		26,057		32,289		10,695		177,584
Loans collectively evaluated for impairment	2,221,614		3,777,219		6,807,181		408,169		1,616,778		48,665		14,879,626
Loans acquired with deteriorated credit quality	12,619		128,440		3,146		720		—		—		144,925
Total unpaid principal balance	$	2,251,692	$	3,933,687	$	6,873,383	$	434,946	$	1,649,067	$	59,360	$	15,202,135
Related Allowance for Credit Losses
Impaired loans with an allowance recorded	$	—	$	—	$	5,606	$	—	$	—	$	—	$	5,606
Impaired loans with no allowance recorded	—		—		—		—		—		—		—
Total loans individually evaluated for impairment	—		—		5,606		—		—		—		5,606
Loans collectively evaluated for impairment	13,884		16,135		76,919		5,500		19,599		776		132,813
Loans acquired with deteriorated credit quality	—		1,629		2		—		—		—		1,631
Total allowance for credit losses	$	13,884	$	17,764	$	82,527	$	5,500	$	19,599	$	776	$	140,050