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Loans (Tables)
 6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Summary of loans under portfolio
A summary of the Corporation's loans follows:
(Dollars in thousands)
 
Originated
 
Acquired(1)
 
Total Loans
June 30, 2018
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
Commercial
 
$
2,753,604

 
$
822,834

 
$
3,576,438

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
1,252,383

 
611,180

 
1,863,563

Non-owner occupied
 
1,819,535

 
908,568

 
2,728,103

Vacant land
 
46,411

 
33,195

 
79,606

Total commercial real estate
 
3,118,329

 
1,552,943

 
4,671,272

Real estate construction and land development
 
550,447

 
68,538

 
618,985

Subtotal
 
6,422,380

 
2,444,315

 
8,866,695

Consumer loan portfolio:
 
 
 
 
 
 
Residential mortgage
 
2,162,225

 
1,163,052

 
3,325,277

Consumer installment
 
1,501,900

 
85,427

 
1,587,327

Home equity
 
610,028

 
190,366

 
800,394

Subtotal
 
4,274,153

 
1,438,845

 
5,712,998

Total loans(2)
 
$
10,696,533

 
$
3,883,160

 
$
14,579,693

December 31, 2017
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
Commercial
 
$
2,407,606

 
$
978,036

 
$
3,385,642

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
1,185,614

 
627,948

 
1,813,562

Non-owner occupied
 
1,518,787

 
1,087,974

 
2,606,761

Vacant land
 
47,024

 
33,323

 
80,347

Total commercial real estate
 
2,751,425

 
1,749,245

 
4,500,670

Real estate construction and land development
 
498,155

 
76,060

 
574,215

Subtotal
 
5,657,186

 
2,803,341

 
8,460,527

Consumer loan portfolio:
 
 
 
 
 
 
Residential mortgage
 
1,967,857

 
1,284,630

 
3,252,487

Consumer installment
 
1,510,540

 
102,468

 
1,613,008

Home equity
 
611,846

 
217,399

 
829,245

Subtotal
 
4,090,243

 
1,604,497

 
5,694,740

Total loans(2)
 
$
9,747,429

 
$
4,407,838

 
$
14,155,267


(1) 
Acquired loans are accounted for under ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30)
(2) 
Reported net of deferred costs totaling $22.6 million and $26.1 million at June 30, 2018 and December 31, 2017, respectively.
Schedule of activity for accretable yield
Activity for the accretable yield, which includes contractually due interest for acquired loans that have been renewed or extended since the date of acquisition and continue to be accounted for in loan pools in accordance with ASC 310-30, follows:
(Dollars in thousands)
 
Talmer
 
Lake Michigan
 
Monarch
 
North-western
 
OAK
 
Total
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
685,830

 
$
90,156

 
$
21,154

 
$
55,400

 
$
16,158

 
$
868,698

Accretion recognized in interest income
 
(42,136
)
 
(6,302
)
 
(962
)
 
(4,618
)
 
(2,882
)
 
(56,900
)
Net reclassification (to) from nonaccretable difference(1)
 
(27,526
)
 
(3,412
)
 
(61
)
 
(1,051
)
 
1,016

 
(31,034
)
Balance at end of period
 
$
616,168

 
$
80,442

 
$
20,131

 
$
49,731

 
$
14,292

 
$
780,764

 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
774,778

 
$
113,211

 
$
26,055

 
$
64,897

 
$
21,467

 
$
1,000,408

Accretion recognized in interest income
 
(45,091
)
 
(7,583
)
 
(1,159
)
 
(5,467
)
 
(3,314
)
 
(62,614
)
Net reclassification (to) from nonaccretable difference(1)
 
71,682

 
15,944

 
(626
)
 
11,782

 
1,643

 
100,425

Balance at end of period
 
$
801,369

 
$
121,572

 
$
24,270

 
$
71,212

 
$
19,796

 
$
1,038,219

 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2018
 
 
 
 
Balance at beginning of period
 
$
731,353

 
$
95,124

 
$
22,496

 
$
60,814

 
$
17,110

 
$
926,897

Accretion recognized in interest income
 
(84,776
)
 
(13,060
)
 
(2,118
)
 
(9,522
)
 
(5,985
)
 
(115,461
)
Net reclassification (to) from nonaccretable difference(1)
 
(30,409
)
 
(1,622
)
 
(247
)
 
(1,561
)
 
3,167

 
(30,672
)
Balance at end of period
 
$
616,168

 
$
80,442

 
$
20,131

 
$
49,731

 
$
14,292

 
$
780,764

 
 
 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
798,210

 
$
121,416

 
$
27,182

 
$
69,847

 
$
23,316

 
$
1,039,971

Accretion recognized in interest income
 
(89,662
)
 
(14,849
)
 
(2,340
)
 
(9,359
)
 
(6,591
)
 
(122,801
)
Net reclassification (to) from nonaccretable difference(1)
 
92,821

 
15,005

 
(572
)
 
10,724

 
3,071

 
121,049

Balance at end of period
 
$
801,369

 
$
121,572

 
$
24,270

 
$
71,212

 
$
19,796

 
$
1,038,219


(1) 
The net reclassification results from changes in expected cash flows of the acquired loans which may include increases in the amount of contractual principal and interest expected to be collected due to improvement in credit quality, increases in balances outstanding from advances, renewals, extensions and interest rates; as well as reductions in contractual principal and interest expected to be collected due to credit deterioration, payoffs, and decreases in interest rates.
Recorded investment of loans in the commercial loan portfolio by risk rating categories
The following schedule presents the recorded investment of loans in the commercial loan portfolio by credit risk categories at June 30, 2018 and December 31, 2017:
(Dollars in thousands)
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
June 30, 2018
 
 
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
2,654,995

 
$
40,619

 
$
57,300

 
$
690

 
$
2,753,604

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
1,186,100

 
25,247

 
40,990

 
46

 
1,252,383

Non-owner occupied
 
1,800,859

 
12,891

 
5,785

 
—

 
1,819,535

Vacant land
 
40,488

 
176

 
5,746

 
1

 
46,411

Total commercial real estate
 
3,027,447

 
38,314

 
52,521

 
47

 
3,118,329

Real estate construction and land development
 
516,568

 
4,173

 
29,706

 
—

 
550,447

Subtotal
 
6,199,010

 
83,106

 
139,527

 
737

 
6,422,380

Acquired Portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
748,719

 
43,301

 
30,814

 
—

 
822,834

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
548,079

 
31,767

 
31,323

 
11

 
611,180

Non-owner occupied
 
836,864

 
32,391

 
39,313

 
—

 
908,568

Vacant land
 
28,046

 
310

 
4,839

 
—

 
33,195

Total commercial real estate
 
1,412,989

 
64,468

 
75,475

 
11

 
1,552,943

Real estate construction and land development
 
67,211

 
370

 
957

 
—

 
68,538

Subtotal
 
2,228,919

 
108,139

 
107,246

 
11

 
2,444,315

Total
 
$
8,427,929

 
$
191,245

 
$
246,773

 
$
748

 
$
8,866,695

December 31, 2017
 
 
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
2,316,464

 
$
41,059

 
$
50,083

 
$
—

 
$
2,407,606

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
1,133,609

 
19,438

 
32,567

 
—

 
1,185,614

Non-owner occupied
 
1,504,195

 
4,728

 
9,864

 
—

 
1,518,787

Vacant land
 
39,775

 
38

 
7,211

 
—

 
47,024

Total commercial real estate
 
2,677,579

 
24,204

 
49,642

 
—

 
2,751,425

Real estate construction and land development
 
494,528

 
837

 
2,790

 
—

 
498,155

Subtotal
 
5,488,571

 
66,100

 
102,515

 
—

 
5,657,186

Acquired Portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
873,861

 
68,418

 
35,539

 
218

 
978,036

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
580,127

 
23,998

 
23,036

 
787

 
627,948

Non-owner occupied
 
995,709

 
43,645

 
48,620

 
—

 
1,087,974

Vacant land
 
27,849

 
327

 
5,147

 
—

 
33,323

Total commercial real estate
 
1,603,685

 
67,970

 
76,803

 
787

 
1,749,245

Real estate construction and land development
 
72,346

 
2,218

 
1,496

 
—

 
76,060

Subtotal
 
2,549,892

 
138,606

 
113,838

 
1,005

 
2,803,341

Total
 
$
8,038,463

 
$
204,706

 
$
216,353

 
$
1,005

 
$
8,460,527
Recorded investment of loans in the consumer loan portfolio based on the credit risk profile of loans in a performing and nonperforming status
The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at June 30, 2018 and December 31, 2017:
(Dollars in thousands)
 
Residential Mortgage
 
Consumer
Installment
 
Home Equity
 
Total
Consumer
June 30, 2018
 
 
 
 
 
 
 
 
Originated Loans:
 
 
 
 
 
 
 
 
Performing
 
$
2,154,251

 
$
1,500,955

 
$
607,056

 
$
4,262,262

Nonperforming
 
7,974

 
945

 
2,972

 
11,891

Subtotal
 
2,162,225

 
1,501,900

 
610,028

 
4,274,153

Acquired Loans
 
1,163,052

 
85,427

 
190,366

 
1,438,845

Total
 
$
3,325,277

 
$
1,587,327

 
$
800,394

 
$
5,712,998

December 31, 2017
 
 
 
 
 
 
 
 
Originated Loans:
 
 
 
 
 
 
 
 
Performing
 
$
1,959,222

 
$
1,509,698

 
$
607,541

 
$
4,076,461

Nonperforming
 
8,635

 
842

 
4,305

 
13,782

Subtotal
 
1,967,857

 
1,510,540

 
611,846

 
4,090,243

Acquired Loans
 
1,284,630

 
102,468

 
217,399

 
1,604,497

Total
 
$
3,252,487

 
$
1,613,008

 
$
829,245

 
$
5,694,740
Summary of nonperforming loans
A summary of nonperforming loans follows:
(Dollars in thousands)
 
June 30,
2018
 
December 31,
2017
Nonperforming assets
 
 
 
 
Nonaccrual loans:
 
 
 
 
Commercial
 
$
20,741

 
$
19,691

Commercial real estate:
 
 
 
 
Owner-occupied
 
16,103

 
19,070

Non-owner occupied
 
9,168

 
5,270

Vacant land
 
3,135

 
5,205

Total commercial real estate
 
28,406

 
29,545

Real estate construction and land development
 
5,704

 
77

Residential mortgage
 
7,974

 
8,635

Consumer installment
 
945

 
842

Home equity
 
2,972

 
4,305

Total nonaccrual loans
 
66,742

 
63,095

Other real estate owned and repossessed assets
 
5,828

 
8,807

Total nonperforming assets
 
$
72,570

 
$
71,902

Accruing loans contractually past due 90 days or more as to interest or principal payments, excluding acquired loans accounted for under ASC 310-30
 
 
 
 
Commercial
 
$
472

 
$
—

Commercial real estate:
 
 
 
 
Owner-occupied
 
461

 
—

Non-owner occupied
 
—

 
13

Vacant land
 
16

 
—

Total commercial real estate
 
477

 
13

Home equity
 
713

 
1,364

Total accruing loans contractually past due 90 days or more as to interest or principal payments, excluding acquired loans accounted for under ASC 310-30
 
$
1,662

 
$
1,377
Schedule representing the aging status of the recorded investment in loans by classes
Loan delinquency, excluding acquired loans accounted for under ASC 310-30, was as follows:
(Dollars in thousands)
 
30-59
days
past due
 
60-89
days
past due
 
90 days or more past due
 
Total past due
 
Current
 
Total loans
 
90 days or more past due and still accruing
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
12,421

 
$
4,294

 
$
11,629

 
$
28,344

 
$
2,725,260

 
$
2,753,604

 
$
472

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
15,233

 
2,771

 
9,033

 
27,037

 
1,225,346

 
1,252,383

 
461

Non-owner occupied
 
1,551

 
359

 
1,160

 
3,070

 
1,816,465

 
1,819,535

 
—

Vacant land
 
58

 
—

 
225

 
283

 
46,128

 
46,411

 
16

Total commercial real estate
 
16,842

 
3,130

 
10,418

 
30,390

 
3,087,939

 
3,118,329

 
477

Real estate construction and land development
 
—

 
—

 
5,565

 
5,565

 
544,882

 
550,447

 
—

Residential mortgage
 
440

 
2,814

 
2,899

 
6,153

 
2,156,072

 
2,162,225

 
—

Consumer installment
 
2,777

 
385

 
217

 
3,379

 
1,498,521

 
1,501,900

 
—

Home equity
 
3,930

 
1,028

 
2,019

 
6,977

 
603,051

 
610,028

 
713

Total
 
$
36,410

 
$
11,651

 
$
32,747

 
$
80,808

 
$
10,615,725

 
$
10,696,533

 
$
1,662

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
13,906

 
$
3,766

 
$
9,494

 
$
27,166

 
$
2,380,440

 
$
2,407,606

 
$
—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
7,644

 
1,306

 
5,027

 
13,977

 
1,171,637

 
1,185,614

 
—

Non-owner occupied
 
1,653

 
228

 
693

 
2,574

 
1,516,213

 
1,518,787

 
13

Vacant land
 
83

 
28

 
153

 
264

 
46,760

 
47,024

 
—

Total commercial real estate
 
9,380

 
1,562

 
5,873

 
16,815

 
2,734,610

 
2,751,425

 
13

Real estate construction and land development
 
—

 
—

 
—

 
—

 
498,155

 
498,155

 
—

Residential mortgage
 
2,795

 
1,415

 
858

 
5,068

 
1,962,789

 
1,967,857

 
—

Consumer installment
 
3,324

 
442

 
226

 
3,992

 
1,506,548

 
1,510,540

 
—

Home equity
 
2,319

 
1,301

 
2,196

 
5,816

 
606,030

 
611,846

 
1,364

Total
 
$
31,724

 
$
8,486

 
$
18,647

 
$
58,857

 
$
9,688,572

 
$
9,747,429

 
$
1,377
Schedule of Impaired loans by classes
The following schedules present impaired loans by classes of loans at June 30, 2018 and December 31, 2017:
(Dollars in thousands)
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Valuation
Allowance
June 30, 2018
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 
 
 
 
 
Commercial
 
$
20,683

 
$
23,249

 
$
1,421

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
13,483

 
16,970

 
1,352

Non-owner occupied
 
2,367

 
3,619

 
116

Vacant land
 
1,313

 
1,513

 
320

Total commercial real estate
 
17,163

 
22,102

 
1,788

Real estate construction and land development
 
207

 
207

 
12

Residential mortgage
 
13,026

 
13,026

 
1,364

Consumer installment
 
1,014

 
1,014

 
99

Home equity
 
3,146

 
3,146

 
161

Subtotal
 
55,239

 
62,744

 
4,845

Impaired loans with no related valuation allowance:
 
 
 
 
 
 
Commercial
 
17,831

 
19,143

 
—

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
12,786

 
14,436

 
—

Non-owner occupied
 
10,884

 
11,896

 
—

Vacant land
 
2,921

 
4,007

 
—

Total commercial real estate
 
26,591

 
30,339

 
—

Real estate construction and land development
 
5,740

 
5,807

 
—

Residential mortgage
 
6,659

 
6,659

 
—

Consumer installment
 
—

 
—

 
—

Home equity
 
2,066

 
2,066

 
—

Subtotal
 
58,887

 
64,014

 
—

Total impaired loans:
 
 
 
 
 
 
Commercial
 
38,514

 
42,392

 
1,421

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
26,269

 
31,406

 
1,352

Non-owner occupied
 
13,251

 
15,515

 
116

Vacant land
 
4,234

 
5,520

 
320

Total commercial real estate
 
43,754

 
52,441

 
1,788

Real estate construction and land development
 
5,947

 
6,014

 
12

Residential mortgage
 
19,685

 
19,685

 
1,364

Consumer installment
 
1,014

 
1,014

 
99

Home equity
 
5,212

 
5,212

 
161

Total
 
$
114,126

 
$
126,758

 
$
4,845

(Dollars in thousands)
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Valuation
Allowance
December 31, 2017
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 
 
 
 
 
Commercial
 
$
28,897

 
$
31,655

 
$
2,296

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
17,774

 
21,588

 
2,317

Non-owner occupied
 
5,307

 
7,870

 
316

Vacant land
 
4,922

 
5,122

 
594

Total commercial real estate
 
28,003

 
34,580

 
3,227

Real estate construction and land development
 
313

 
313

 
14

Residential mortgage
 
15,872

 
15,872

 
1,487

Consumer installment
 
966

 
966

 
120

Home equity
 
4,570

 
4,570

 
858

Subtotal
 
78,621

 
87,956

 
8,002

Impaired loans with no related valuation allowance:
 
 
 
 
 
 
Commercial
 
8,504

 
9,291

 
—

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
11,351

 
12,631

 
—

Non-owner occupied
 
5,977

 
6,438

 
—

Vacant land
 
752

 
792

 
—

Total commercial real estate
 
18,080

 
19,861

 
—

Residential mortgage
 
4,902

 
4,902

 
—

Home equity
 
1,770

 
1,770

 
—

Subtotal
 
33,256

 
35,824

 
—

Total impaired loans:
 
 
 
 
 
 
Commercial
 
37,401

 
40,946

 
2,296

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
29,125

 
34,219

 
2,317

Non-owner occupied
 
11,284

 
14,308

 
316

Vacant land
 
5,674

 
5,914

 
594

Total commercial real estate
 
46,083

 
54,441

 
3,227

Real estate construction and land development
 
313

 
313

 
14

Residential mortgage
 
20,774

 
20,774

 
1,487

Consumer installment
 
966

 
966

 
120

Home equity
 
6,340

 
6,340

 
858

Total
 
$
111,877

 
$
123,780

 
$
8,002
Schedule presents information related to impaired loans
The following schedule presents additional information regarding impaired loans by classes of loans segregated by those requiring a valuation allowance and those not requiring a valuation allowance for the three and six months ended June 30, 2018 and 2017, and the respective interest income amounts recognized:
 
 
Three Months Ended June 30, 2018
 
Three Months Ended June 30, 2017
 
Six Months Ended June 30, 2018
 
Six Months Ended June 30, 2017
(Dollars in thousands)
 
Average
recorded
investment
 
Interest income
recognized
while on
impaired status
 
Average
recorded
investment
 
Interest income
recognized
while on
impaired status
 
Average
recorded
investment
 
Interest income
recognized
while on
impaired status
 
Average
recorded
investment
 
Interest income
recognized
while on
impaired status
Impaired loans with a valuation allowance:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
18,139

 
$
111

 
$
24,493

 
$
201

 
$
19,271

 
$
276

 
$
25,103

 
$
425

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
12,949

 
81

 
14,188

 
150

 
13,510

 
163

 
14,423

 
304

Non-owner occupied
 
2,246

 
10

 
2,973

 
27

 
3,058

 
21

 
3,180

 
51

Vacant land
 
1,308

 
17

 
1,865

 
25

 
2,502

 
32

 
1,927

 
50

Total commercial real estate
 
16,503

 
108

 
19,026

 
202

 
19,070

 
216

 
19,530

 
405

Real estate construction and land development
 
243

 
2

 
141

 
3

 
234

 
4

 
151

 
5

Residential mortgage
 
12,762

 
115

 
16,243

 
68

 
13,183

 
232

 
16,821

 
302

Consumer installment
 
1,067

 
2

 
682

 
1

 
986

 
3

 
731

 
2

Home equity
 
2,812

 
21

 
4,024

 
16

 
3,253

 
38

 
4,047

 
37

Subtotal
 
$
51,526

 
$
359

 
$
64,609

 
$
491

 
$
55,997

 
$
769

 
$
66,383

 
$
1,176

Impaired loans with no related valuation allowance:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
20,078

 
$
147

 
$
11,010

 
$
48

 
$
19,102

 
$
242

 
$
10,153

 
$
78

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
14,565

 
81

 
9,712

 
12

 
14,967

 
137

 
9,789

 
12

Non-owner occupied
 
9,539

 
38

 
10,387

 
81

 
8,349

 
103

 
9,760

 
167

Vacant land
 
3,440

 
—

 
5,084

 
6

 
2,604

 
—

 
4,780

 
24

Total commercial real estate
 
27,544

 
119

 
25,183

 
99

 
25,920

 
240

 
24,329

 
203

Real estate construction and land development
 
1,994

 
2

 
106

 
—

 
1,051

 
3

 
93

 
—

Residential mortgage
 
7,075

 
25

 
4,581

 
10

 
6,606

 
48

 
4,194

 
17

Consumer installment
 
41

 
—

 
142

 
—

 
91

 
—

 
179

 
—

Home equity
 
2,487

 
2

 
1,162

 
5

 
2,266

 
9

 
1,021

 
6

Subtotal
 
$
59,219


$
295


$
42,184


$
162


$
55,036

 
$
542

 
$
39,969

 
$
304

Total impaired loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
38,217

 
$
258

 
$
35,503

 
$
249

 
$
38,373

 
$
518

 
$
35,256

 
$
503

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
27,514

 
162

 
23,900

 
162

 
28,477

 
300

 
24,212

 
316

Non-owner occupied
 
11,785

 
48

 
13,360

 
108

 
11,407

 
124

 
12,940

 
218

Vacant land
 
4,748

 
17

 
6,949

 
31

 
5,106

 
32

 
6,707

 
74

Total commercial real estate
 
44,047

 
227

 
44,209

 
301

 
44,990

 
456

 
43,859

 
608

Real estate construction and land development
 
2,237

 
4

 
247

 
3

 
1,285

 
7

 
244

 
5

Residential mortgage
 
19,837

 
140

 
20,824

 
78

 
19,789

 
280

 
21,015

 
319

Consumer installment
 
1,108

 
2

 
824

 
1

 
1,077

 
3

 
910

 
2

Home equity
 
5,299

 
23

 
5,186

 
21

 
5,519

 
47

 
5,068

 
43

Total
 
$
110,745

 
$
654

 
$
106,793


$
653


$
111,033

 
$
1,311

 
$
106,352

 
$
1,480
Schedule providing information on TDRs
The following schedule presents the Corporation's TDRs at June 30, 2018 and December 31, 2017:
(Dollars in thousands)
 
Accruing TDRs
 
Nonaccrual TDRs
 
Total
June 30, 2018
 
 
 
 
 
 
Commercial loan portfolio
 
$
34,161

 
$
21,539

 
$
55,700

Consumer loan portfolio
 
14,105

 
3,791

 
17,896

Total
 
$
48,266

 
$
25,330

 
$
73,596

December 31, 2017
 
 
 
 
 
 
Commercial loan portfolio
 
$
34,484

 
$
24,358

 
$
58,842

Consumer loan portfolio
 
14,298

 
4,748

 
19,046

Total
 
$
48,782

 
$
29,106

 
$
77,888



The following tables present the recorded investment of loans modified into TDRs during the three and six months ended June 30, 2018 and 2017 by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession.
 
Concession type
 
 
 
 
 
 
(Dollars in thousands)
Principal
deferral
 
Principal
reduction
 
Interest
rate
 
Forbearance
agreement
 
Total
number
of loans
 
Pre-modification recorded investment
 
Post-modification recorded investment
For the three months ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
740

 
$
—

 
$
218

 
$
—

 
13

 
$
969

 
$
958

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
370

 
—

 
162

 
31

 
6

 
575

 
563

Total commercial real estate
370

 
—

 
162

 
31

 
6

 
575

 
563

Real estate construction and land development
—

 
—

 
—

 
—

 
—

 
—

 
—

Total Commercial
1,110

 
—

 
380

 
31

 
19

 
1,544

 
1,521

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
131

 
40

 
39

 
—

 
3

 
215

 
210

Consumer installment
15

 
44

 
10

 
—

 
9

 
72

 
69

Home equity
81

 
—

 
87

 
—

 
4

 
171

 
168

Total Consumer
227

 
84

 
136

 
—

 
16

 
458

 
447

Total loans
$
1,337

 
$
84

 
$
516

 
$
31

 
35

 
$
2,002

 
$
1,968

For the six months ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
1,643

 
$
—

 
$
1,283

 
$
261

 
31

 
$
3,204

 
$
3,187

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
370

 
—

 
888

 
513

 
8

 
1,783

 
1,771

Non-owner occupied
68

 
—

 
—

 
—

 
1

 
74

 
68

Total commercial real estate
438

 
—

 
888

 
513

 
9

 
1,857

 
1,839

Real estate construction and land development
—

 
—

 
—

 
—

 
—

 
—

 
—

 Total Commercial
2,081

 
—

 
2,171

 
774

 
40

 
5,061

 
5,026

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
269

 
40

 
39

 
—

 
7

 
357

 
348

Consumer installment
86

 
67

 
38

 
—

 
25

 
200

 
191

Home equity
266

 
—

 
115

 
—

 
9

 
424

 
381

Total Consumer
621

 
107

 
192

 
—

 
41

 
981

 
920

Total loans
$
2,702

 
$
107

 
$
2,363

 
$
774

 
81

 
$
6,042

 
$
5,946

 
Concession type
 
 
 
 
 
 
(Dollars in thousands)
Principal
deferral
 
Interest
rate
 
Forbearance
agreement
 
Total
number
of loans
 
Pre-modification recorded investment
 
Post-modification recorded investment
For the three months ended June 30, 2017
 
 
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
$
285

 
$
266

 
$
—

 
7

 
$
564

 
$
551

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
—

 
65

 
122

 
3

 
194

 
187

Total commercial real estate
—

 
65

 
122

 
3

 
194

 
187

Total Commercial
285

 
331

 
122

 
10

 
758

 
738

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
Residential mortgage
37

 
261

 
—

 
5

 
316

 
298

Consumer installment
22

 
—

 
—

 
4

 
24

 
22

Home equity
153

 
—

 
—

 
4

 
160

 
153

Total Consumer
212

 
261

 
—

 
13

 
500

 
473

Total loans
$
497

 
$
592

 
$
122

 
23

 
$
1,258

 
$
1,211

For the six months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
$
335

 
$
1,367

 
$
579

 
12

 
$
2,303

 
$
2,281

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
447

 
140

 
122

 
6

 
716

 
709

Total commercial real estate
447

 
140

 
122

 
6

 
716

 
709

Total Commercial
782

 
1,507

 
701

 
18

 
3,019

 
2,990

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
Residential mortgage
135

 
261

 
—

 
6

 
414

 
396

Consumer installment
32

 
—

 
—

 
6

 
35

 
32

Home equity
264

 
—

 
—

 
5

 
325

 
264

Total Consumer
431

 
261

 
—

 
17

 
774

 
692

Total loans
$
1,213

 
$
1,768

 
$
701

 
35

 
$
3,793

 
$
3,682
Troubled debt restructurings on financing receivables with defaults payment
The following schedule includes TDRs for which there was a payment default during the three and six months ended June 30, 2018 and 2017, whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default:
 
 
For The Three Months Ended June 30, 2018
 
For The Six Months Ended June 30, 2018
(Dollars in thousands)
 
Number of loans
 
Principal balance
 
Number of loans
 
Principal balance
Commercial loan portfolio (commercial)
 
2

 
$
67

 
3

 
$
149

Consumer loan portfolio (residential mortgage)
 
7

 
42

 
8

 
45

Total
 
9

 
$
109

 
11

 
$
194

 
 
 
 
 
 
 
 
 
 
 
For The Three Months Ended June 30, 2017
 
For The Six Months Ended June 30, 2017
(Dollars in thousands)
 
Number of loans
 
Principal balance
 
Number of loans
 
Principal balance
Commercial loan portfolio (commercial)
 
2

 
$
997

 
5

 
$
1,617

Consumer loan portfolio (residential mortgage)
 
3

 
58

 
5

 
163

Total
 
5

 
$
1,055

 
10

 
$
1,780
Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment
The following schedule presents, by loan portfolio segment, the changes in the allowance for the originated loan portfolio for the three and six months ended June 30, 2018 and 2017.
(Dollars in thousands)
 
Commercial
Loan
Portfolio
 
Consumer
Loan
Portfolio
 
Total
Originated Loan Portfolio
 
 
 
 
 
 
Changes in allowance for loan losses for the three months ended June 30, 2018:
Beginning balance
 
$
67,744

 
$
27,018

 
$
94,762

Provision for loan losses
 
7,923

 
1,649

 
9,572

Charge-offs
 
(3,890
)
 
(1,836
)
 
(5,726
)
Recoveries
 
888

 
519

 
1,407

Ending balance
 
$
72,665

 
$
27,350

 
$
100,015

Changes in allowance for loan losses for the six months ended June 30, 2018:
Beginning balance
 
$
66,133

 
$
25,754

 
$
91,887

Provision for loan losses
 
11,323

 
4,505

 
15,828

Charge-offs
 
(6,484
)
 
(4,066
)
 
(10,550
)
Recoveries
 
1,693

 
1,157

 
2,850

Ending balance
 
$
72,665

 
$
27,350

 
$
100,015

Changes in allowance for loan losses for the three months ended June 30, 2017:
Beginning balance
 
$
54,315

 
$
24,459

 
$
78,774

Provision for loan losses
 
4,084

 
2,145

 
6,229

Charge-offs
 
(726
)
 
(1,578
)
 
(2,304
)
Recoveries
 
282

 
816

 
1,098

Ending balance
 
$
57,955

 
$
25,842

 
$
83,797

Changes in allowance for loan losses for the six months ended June 30, 2017:
Beginning balance
 
$
51,201

 
$
27,067

 
$
78,268

Provision for loan losses
 
8,476

 
1,803

 
10,279

Charge-offs
 
(3,417
)
 
(4,461
)
 
(7,878
)
Recoveries
 
1,695

 
1,433

 
3,128

Ending balance
 
$
57,955

 
$
25,842

 
$
83,797

    
The following schedule presents by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at June 30, 2018 and December 31, 2017 by impairment evaluation method.
(Dollars in thousands)
 
Commercial
Loan
Portfolio
 
Consumer
Loan
Portfolio
 
Total
Allowance for loan losses balance at June 30, 2018 attributable to:
Loans individually evaluated for impairment
 
$
3,221

 
$
1,624

 
$
4,845

Loans collectively evaluated for impairment
 
69,444

 
25,726

 
95,170

Loans acquired with deteriorated credit quality
 
—

 
—

 
—

Total
 
$
72,665

 
$
27,350

 
$
100,015

Recorded investment (loan balance) at June 30, 2018:
Loans individually evaluated for impairment
 
$
88,215

 
$
25,911

 
$
114,126

Loans collectively evaluated for impairment
 
6,334,165

 
4,248,242

 
10,582,407

Loans acquired with deteriorated credit quality
 
2,444,315

 
1,438,845

 
3,883,160

Total
 
$
8,866,695

 
$
5,712,998

 
$
14,579,693

(Dollars in thousands)
 
Commercial
Loan
Portfolio
 
Consumer
Loan
Portfolio
 
Total
Allowance for loan losses balance at December 31, 2017 attributable to:
 
 
Loans individually evaluated for impairment
 
$
5,537

 
$
2,465

 
$
8,002

Loans collectively evaluated for impairment
 
60,596

 
23,289

 
83,885

Loans acquired with deteriorated credit quality
 
—

 
—

 
—

Total
 
$
66,133

 
$
25,754

 
$
91,887

Recorded investment (loan balance) at December 31, 2017:
 
 
Loans individually evaluated for impairment
 
$
83,797

 
$
28,080

 
$
111,877

Loans collectively evaluated for impairment
 
5,573,389

 
4,062,163

 
9,635,552

Loans acquired with deteriorated credit quality
 
2,803,341

 
1,604,497

 
4,407,838

Total
 
$
8,460,527

 
$
5,694,740

 
$
14,155,267