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Loans and Allowance for Credit Losses (Tables)

3 Months Ended

Mar. 31, 2019

Accounts Notes And Loans Receivable [Line Items]

Summary of Total Loans Outstanding by Portfolio Segment and Class of Financing Receivable

The following table presents total loans outstanding by portfolio segment and class of financing receivable as of March 31, 2019 and December 31, 2018. Outstanding balances include originated loans, Acquired Noncredit Impaired (“ANCI”) loans and Acquired Credit Impaired (“ACI”) loans. See Note 2 regarding the merger with State Bank on January 1, 2019. Additional information about ACI loans is presented separately in the “Acquired Credit-Impaired Loans” section of this Note.


(In thousands)	March 31, 2019			December 31, 2018
Commercial and Industrial
General C&I	$	4,423,086		$	3,275,362
Energy sector		1,380,541			1,285,775
Restaurant industry		1,137,898			1,096,366
Healthcare		540,163			539,839
Total commercial and industrial		7,481,688			6,197,342
Commercial Real Estate
Income producing		2,481,360			1,266,791
Land and development		348,835			63,948
Total commercial real estate		2,830,195			1,330,739
Consumer
Residential real estate		2,518,347			2,227,653
Other		121,171			67,100
Total consumer		2,639,518			2,294,753
Small Business Lending		758,842			266,283
Total (Gross of unearned discount and fees)		13,710,243			10,089,117
Unearned discount and fees		(85,289	)		(35,194	)
Total (Net of unearned discount and fees)	$	13,624,954		$	10,053,923

Summary of Allowance for Credit Losses

A summary of the activity in the ACL is as follows:

	For the Three Months Ended March 31, 2019
(In thousands)	Commercial and Industrial			Commercial Real Estate			Consumer			Small Business			Total
As of December 31, 2018	$	66,316		$	10,452		$	13,703		$	3,907		$	94,378
Provision for loan losses		9,299			102			1,206			603			11,210
Charge-offs		(461	)		(85	)		(234	)		(158	)		(938	)
Recoveries		372			—			15			1			388
As of March 31, 2019	$	75,526		$	10,469		$	14,690		$	4,353		$	105,038

Allocation of ending ACL
ACI loans collectively evaluated for impairment	$	89		$	1,410		$	5,983		$	—		$	7,482
ACI loans individually evaluated for impairment		—			7			45			—			52
ANCI loans collectively evaluated for impairment		301			77			557			116			1,051
ANCI loans individually evaluated for impairment		—			—			7			59			66
Originated loans collectively evaluated for impairment		60,630			8,975			8,085			4,178			81,868
Originated loans individually evaluated for impairment		14,506			—			13			—			14,519
ACL as of March 31, 2019	$	75,526		$	10,469		$	14,690		$	4,353		$	105,038
Loans
ACI loans collectively evaluated for impairment	$	39,301		$	102,074		$	131,133		$	20,337		$	292,845
ACI loans individually evaluated for impairment		3,668			6,946			324			—			10,938
ANCI loans collectively evaluated for impairment		1,105,684			1,471,679			509,600			465,083			3,552,046
ANCI loans individually evaluated for impairment		—			—			1,524			256			1,780
Originated loans collectively evaluated for impairment		6,244,068			1,249,496			1,996,683			273,166			9,763,413
Originated loans individually evaluated for impairment		88,967			—			254			—			89,221
Loans as of March 31, 2019	$	7,481,688		$	2,830,195		$	2,639,518		$	758,842		$	13,710,243

	For the Three Months Ended March 31, 2018
(In thousands)	Commercial and Industrial			Commercial Real Estate			Consumer			Small Business			Total
As of December 31, 2017	$	55,919		$	11,990		$	14,983		$	4,684		$	87,576
Provision for loan losses		5,330			(513	)		(903	)		466			4,380
Charge-offs		(58	)		—			(301	)		(453	)		(812	)
Recoveries		18			209			103			63			393
As of March 31, 2018	$	61,209		$	11,686		$	13,882		$	4,760		$	91,537

Allocation of ending ACL
Loans collectively evaluated for impairment	$	52,535		$	11,684		$	13,639		$	4,738		$	82,596
Loans individually evaluated for impairment		8,674			2			243			22			8,941
ACL as of March 31, 2018	$	61,209		$	11,686		$	13,882		$	4,760		$	91,537
Loans
Loans collectively evaluated for impairment	$	5,433,850		$	1,148,486		$	1,782,604		$	234,912		$	8,599,852
Loans individually evaluated for impairment		66,925			7,924			2,274			425			77,548
Loans as of March 31, 2018	$	5,500,775		$	1,156,410		$	1,784,878		$	235,337		$	8,677,400

Summary of Loans Held for Sale

A summary of the loans held for sale at March 31, 2019 and December 31, 2018 is as follows:


(In thousands)	March 31, 2019		December 31, 2018
Mortgage loans held for sale	$	19,764	$	17,004
Commercial loans held for sale		189,582		42,457
Loans held for sale	$	209,346	$	59,461

Originated and Acquired Non Credit Impaired Loans

Accounts Notes And Loans Receivable [Line Items]

Summary of Impaired Loans

The following includes certain key information about individually impaired originated and ANCI loans as of March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018.

Originated and ANCI Loans Identified as Impaired

	As of March 31, 2019
(In thousands)	Recorded Investment in Impaired Loans⁽¹⁾		Unpaid Principal Balance		Related Specific Allowance		Nonaccrual Loans Included in Impaired Loans		Undisbursed Commitments
With no related allowance for credit losses
Commercial and Industrial
General C&I	$	9,063	$	8,997	$	—	$	—	$	1,333
Total commercial and industrial		9,063		8,997		—		—		1,333
Consumer
Residential real estate		1,531		1,524		—		—		—
Total	$	10,594	$	10,521	$	—	$	—	$	1,333
With allowance for credit losses recorded
Commercial and Industrial
General C&I	$	38,968	$	39,420	$	8,365	$	34,459	$	3,161
Energy sector		13,880		27,915		1,571		13,880		2,964
Restaurant industry		22,871		23,785		4,386		21,869		2,204
Healthcare		4,449		4,496		209		4,449		—
Total commercial and industrial		80,168		95,616		14,531		74,657		8,329
Consumer
Other		257		254		13		—		—
Total consumer		257		254		13		—		—
Small Business Lending		448		1,235		41		208		10
Total	$	80,873	$	97,105	$	14,585	$	74,865	$	8,339

(1)

The recorded investment of a loan also includes any interest receivable, net unearned discount or fees, and unamortized premium or discount.

	As of December 31, 2018
(In thousands)	Recorded Investment in Impaired Loans ⁽¹⁾		Unpaid Principal Balance		Related Specific Allowance		Nonaccrual Loans Included in Impaired Loans		Undisbursed Commitments
With no related allowance for credit losses
Commercial and Industrial
Energy sector	$	20,713	$	33,908	$	—	$	20,713	$	3,658
Total commercial and industrial		20,713		33,908		—		20,713		3,658
Consumer
Residential real estate		1,538		1,535		—		—		—
Total consumer		1,538		1,535		—		—		—
Total	$	22,251	$	35,443	$	—	$	20,713	$	3,658
With allowance for credit losses recorded
Commercial and Industrial
General C&I	$	28,684	$	28,677	$	3,559	$	24,103	$	930
Restaurant industry		23,043		23,698		3,485		22,042		2,329
Healthcare		4,496		4,496		256		4,496		—
Total commercial and industrial		56,223		56,871		7,300		50,641		3,259
Consumer
Other		254		254		25		—		—
Total consumer		254		254		25		—		—
Small Business Lending		476		1,249		107		229		10
Total	$	56,953	$	58,374	$	7,432	$	50,870	$	3,269

(1)The recorded investment of a loan also includes any interest receivable, net unearned discount or fees, and unamortized premium or discount.

Summary of Average Recorded Investment in Impaired Originated and ANCI Loans

Average Recorded Investment in Impaired Originated and ANCI Loans

	Three Months Ended March 31,
(In thousands)	2019		2018
Commercial and Industrial
General C&I	$	38,358	$	4,979
Energy sector		17,297		47,969
Restaurant industry		22,957		10,993
Healthcare		4,473		—
Total commercial and industrial		83,085		63,941
Consumer
Residential real estate		1,534		1,583
Other		255		398
Total consumer		1,789		1,981
Small Business Lending		462		662
Total	$	85,336	$	66,584

Summary of Originated and ANCI Loans that were modified into TDRs

Originated and ANCI Loans that were modified into TDRs

	For the Three Months Ended March 31,
	2019				2018
(In thousands)	Number of TDRs		Recorded Investment		Number of TDRs		Recorded Investment
Commercial and Industrial		1	$	24,369		—	$	—
Total		1	$	24,369		—	$	—

	For the Three Months Ended March 31,
	2019				2018
	Number of Loans Modified by:
	Rate Concession		Modified Terms and/ or Other Concessions		Rate Concession		Modified Terms and/ or Other Concessions
Commercial and Industrial		—		1		—		—
Total		—		1		—		—

Summary of Credit Exposure by Portfolio Segment and Class of Receivable

The following tables provide information regarding the credit exposure by portfolio segment and class of receivable.

	As of March 31, 2019
(Recorded Investment in thousands)	Special Mention		Substandard		Doubtful		Total Criticized
Commercial and Industrial
General C&I	$	78,070	$	73,623	$	9,916	$	161,609
Restaurant industry		36,216		25,886		—		62,102
Energy sector		—		22,172		7,876		30,048
Healthcare		3,173		4,449		—		7,622
Total commercial and industrial		117,459		126,130		17,792		261,381
Commercial Real Estate
Income producing		1,752		—		—		1,752
Land and development		6,291		96		—		6,387
Total commercial real estate		8,043		96		—		8,139
Consumer
Residential real estate		—		4,181		—		4,181
Other		—		6		—		6
Total consumer		—		4,187		—		4,187
Small Business Lending		3,459		1,343		—		4,802
Total	$	128,961	$	131,756	$	17,792	$	278,509

	As of December 31, 2018
(Recorded Investment in thousands)	Special Mention		Substandard		Doubtful		Total Criticized
Commercial and Industrial
General C&I	$	74,592	$	79,815	$	—	$	154,407
Restaurant industry		24,449		26,171		—		50,620
Energy sector		11,812		6,227		14,486		32,525
Healthcare		—		4,496		—		4,496
Total commercial and industrial		110,853		116,709		14,486		242,048
Commercial Real Estate
Land and development		—		985		—		985
Total commercial real estate		—		985		—		985
Consumer
Residential real estate		—		3,315		—		3,315
Total consumer		—		3,315		—		3,315
Small Business Lending		772		2,013		—		2,785
Total	$	111,625	$	123,022	$	14,486	$	249,133

Past Due Financing Receivables

The following table provides an aging of past due loans by portfolio segment and class of receivable .

Aging of Past due Originated and ANCI Loans

	As of March 31, 2019
	Accruing Loans						Non-Accruing Loans
(Recorded Investment in thousands)	30-59 DPD		60-89 DPD		90+DPD		0-29 DPD		30-59 DPD		60-89 DPD		90+DPD
Commercial and Industrial
General C&I	$	516	$	—	$	10,029	$	34,459	$	—	$	—	$	—
Energy sector		—		—		—		6,003		—		—		7,877
Restaurant industry		—		—		—		21,869		—		—		—
Healthcare		—		—		—		4,449		—		—		—
Total commercial and industrial		516		—		10,029		66,780		—		—		7,877
Commercial Real Estate
Income producing		—		—		—		—		—		—		—
Land and development		1,120		—		—		—		—		—		—
Total commercial real estate		1,120		—		—		—		—		—		—
Consumer
Residential real estate		2,849		1,372		1,604		1,408		353		—		815
Other		1,097		273		6		—		—		—		—
Total consumer		3,946		1,645		1,610		1,408		353		—		815
Small Business Lending		5,096		968		—		332		35		—		83
Total	$	10,678	$	2,613	$	11,639	$	68,520	$	388	$	—	$	8,775

	As of December 31, 2018
	Accruing Loans						Non-Accruing Loans
(Recorded Investment in thousands)	30-59 DPD		60-89 DPD		90+DPD		0-29 DPD		30-59 DPD		60-89 DPD		90+DPD
Commercial and Industrial
General C&I	$	120	$	—	$	—	$	23,928	$	176	$	—	$	—
Restaurant industry		—		—		—		22,043		—		—		—
Energy sector		—		—		—		20,712		—		—		—
Healthcare		—		—		—		4,496		—		—		—
Total commercial and industrial		120		—		—		71,179		176		—		—
Commercial Real Estate
Land and development		—		61		—		—		—		—		—
Total commercial real estate		—		61		—		—		—		—		—
Consumer
Residential real estate		1,275		315		760		876		151		95		1,429
Other		27		112		—		—		—		—		—
Total consumer		1,302		427		760		876		151		95		1,429
Small Business Lending		491		25		—		250		29		4		50
Total	$	1,913	$	513	$	760	$	72,305	$	356	$	99	$	1,479

ACI Loans

Accounts Notes And Loans Receivable [Line Items]

Summary of Total Loans Outstanding by Portfolio Segment and Class of Financing Receivable

Acquired Credit Impaired (“ACI”) Loans

The following table presents total ACI loans outstanding by portfolio segment and class of financing receivable See Note 2 for more information regarding our merger with State Bank.

	As of
(In thousands)	March 31, 2019		December 31, 2018
Commercial and Industrial
General C&I	$	41,440	$	16,807
Restaurant industry		1,529		—
Total commercial and industrial		42,969		16,807
Commercial Real Estate
Income producing		96,780		65,427
Land and development		12,240		—
Total commercial real estate		109,020		65,427
Consumer
Residential real estate		130,484		120,495
Other		973		546
Total consumer		131,457		121,041
Small Business Lending		20,337		—
Total	$	303,783	$	203,275

Summary of Credit Exposure by Portfolio Segment and Class of Receivable

The following table provides information regarding the credit exposure by portfolio segment and class of receivable.

ACI Loans by Risk Rating / Delinquency Stratification

ACI loans based on internal risk rating:

	As of
	March 31, 2019						December 31, 2018
(Recorded Investment in thousands)	Special Mention		Substandard		Doubtful		Special Mention		Substandard		Doubtful
Commercial and Industrial
General C&I	$	497	$	22,394	$	979	$	426	$	1,445	$	39
Restaurant industry		—		1,529		—		—		—		—
Total commercial and industrial		497		23,923		979		426		1,445		39
Commercial Real Estate
Income producing		1,254		15,778		—		1,207		3,080		—
Land and development		166		2,820		—		—		—		—
Total commercial real estate		1,420		18,598		—		1,207		3,080		—
Consumer
Residential real estate		84		4,950		—		89		4,442		—
Other		—		49		—		—		3		—
Total consumer		84		4,999		—		89		4,445		—
Small Business Lending		470		18,890		—		—		—		—
Total	$	2,471	$	66,410	$	979	$	1,722	$	8,970	$	39

Past Due Financing Receivables

ACI Consumer credit exposure, based on past due status:

	As of
	March 31, 2019				December 31, 2018
(Recorded Investment in thousands)	Residential Real Estate		Other		Residential Real Estate		Other
0 – 29 Days Past Due	$	122,576	$	757	$	115,404	$	845
30 – 59 Days Past Due		2,832		135		1,985		91
60 – 89 Days Past Due		798		31		1,435		—
90 – 119 Days Past Due		574		23		217		3
120 + Days Past Due		3,704		26		3,598		—
Total	$	130,484	$	972	$	122,639	$	939

Summary of Changes in Accretable Discount for ACI Loans

Changes in the amount of accretable discount for ACI loans for the three months ended March 31, 2019 and 2018 were as follows:

Changes in Accretable Yield on ACI Loans

	For the Three Months Ended March 31,
(In thousands)	2019			2018
Balance at beginning of period	$	67,405		$	78,422
Additions (See Note 2)		42,626			—
Accretion		(5,844	)		(5,192	)
Reclass from nonaccretable difference due to increases in expected cash flow		899			4,558
Other changes, net		(6,843	)		(1,714	)
Balance at end of period	$	98,243		$	76,074

Summary of Individually Impaired ACI Loans and Pooled ACI Loans

The following includes certain key information about individually impaired and pooled ACI loans as of March 31, 2019 and December 31, 2018 and for the three months ended March 31, 2019 and 2018.

ACI Loans / Pools Identified as Impaired

	As of March 31, 2019
	ACI Loans / Pools Identified as Impaired
(In thousands)	Recorded Investment in Impaired Loans⁽¹⁾		Unpaid Principal Balance		Related Specific Allowance		Nonaccrual Loans Included in Impaired Loans		Undisbursed Commitments
Commercial and Industrial	$	12,091	$	13,190	$	89	$	—	$	—
Commercial Real Estate		65,924		83,125		1,417		—		—
Consumer		12,385		10,567		6,028		—		—
Total	$	90,400	$	106,882	$	7,534	$	—	$	—

	As of December 31, 2018
	ACI Loans / Pools Identified as Impaired
(In thousands)	Recorded Investment in Impaired Loans⁽¹⁾		Unpaid Principal Balance		Related Specific Allowance		Nonaccrual Loans Included in Impaired Loans		Undisbursed Commitments
Commercial and Industrial	$	2,100	$	2,331	$	58	$	—	$	—
Commercial Real Estate		74,017		97,613		1,641		—		—
Consumer		18,301		17,888		6,225		—		—
Total	$	94,418	$	117,832	$	7,924	$	—	$	—

(1) The recorded investment of a loan also includes any interest receivable, net unearned discount or fees, and unamortized premium or discount.