Loans and Leases (Tables)

3 Months Ended

Mar. 31, 2017

Summary of Loans and Leases, Net of Unearned Income

Following is a summary of loans and leases, net of unearned income:


(in thousands)	Originated Loans and Leases		Acquired Loans		Total Loans and Leases
March 31, 2017
Commercial real estate	$	4,262,270	$	4,506,087	$	8,768,357
Commercial and industrial		2,857,584		935,095		3,792,679
Commercial leases		197,071		—		197,071

Total commercial loans and leases		7,316,925		5,441,182		12,758,107
Direct installment		1,758,895		206,223		1,965,118
Residential mortgages		1,551,928		790,239		2,342,167
Indirect installment		1,259,770		177		1,259,947
Consumer lines of credit		1,100,695		705,301		1,805,996
Other		46,315		—		46,315

Total loans and leases, net of unearned income	$	13,034,528	$	7,143,122	$	20,177,650


December 31, 2016
Commercial real estate	$	4,095,817	$	1,339,345	$	5,435,162
Commercial and industrial		2,711,886		330,895		3,042,781
Commercial leases		196,636		—		196,636

Total commercial loans and leases		7,004,339		1,670,240		8,674,579
Direct installment		1,765,257		79,142		1,844,399
Residential mortgages		1,446,776		397,798		1,844,574
Indirect installment		1,196,110		203		1,196,313
Consumer lines of credit		1,099,627		201,573		1,301,200
Other		35,878		—		35,878

Total loans and leases, net of unearned income	$	12,547,987	$	2,348,956	$	14,896,943

Certain Information Relating to Regency Consumer Finance Loans

The following table shows certain information relating to the Regency consumer finance loans:


	March 31,			December 31,
(dollars in thousands)	2017			2016
Regency consumer finance loans	$	173,786		$	184,687
Percent of total loans and leases		0.9	%		1.2	%

Certain Information Relating to Commercial Real Estate Loans

The following table shows certain information relating to commercial real estate loans:


	March 31,			December 31,
(dollars in thousands)	2017			2016
Commercial construction loans	$	1,050,129		$	459,995
Percent of total loans and leases		5.2	%		3.1	%

Commercial real estate:
Percent owner-occupied		37.4	%		36.2	%
Percent non-owner-occupied		62.6	%		63.8	%

Summary of Outstanding Principal Balance and Carrying Amount of Acquired Loans

The outstanding balance and the carrying amount of acquired loans included in the consolidated balance sheets are as follows:


(in thousands)	March 31, 2017		December 31, 2016
Accounted for under ASC 310-30:
Outstanding balance	$	7,205,696	$	2,346,687
Carrying amount		6,644,633		2,015,904

Accounted for under ASC 310-20:
Outstanding balance		502,001		342,015
Carrying amount		491,921		325,784

Total acquired loans:
Outstanding balance		7,707,697		2,688,702
Carrying amount		7,136,554		2,341,688

Summary of Change in Accretable Yield of Acquired Loans

The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table.


	Three Months Ended
	March 31,
(in thousands)	2017			2016
Balance at beginning of period	$	467,070		$	256,120
Acquisitions		443,261			284,092
Reduction due to unexpected early payoffs		(20,560	)		(9,375	)
Reclass from non-accretable difference		23,106			10,494
Disposals/transfers		(36	)		(260	)
Accretion		(25,241	)		(13,204	)

Balance at end of period	$	887,600		$	527,867

Summary of Acquisition of Purchased Loans

The following table reflects amounts at acquisition for all purchased loans subject to ASC 310-30 (impaired and non-impaired loans with deteriorated credit quality) acquired from YDKN in 2017 based on the preliminary estimate of fair value as described in Note 3.

(in thousands)

Acquired
Impaired
Loans

Acquired
Performing
Loans

Total

Contractually required cash flows at acquisition

48,941

5,084,475

5,133,416

Non-accretable difference (expected losses and foregone interest)

(25,673

)

(406,802

)

(432,475

)

Cash flows expected to be collected at acquisition

23,268

4,677,673

4,700,941

Accretable yield

(3,323

)

(439,938

)

(443,261

)

Fair value of acquired loans at acquisition

19,945

4,237,735

4,257,680

Summary of Non-Performing Assets

Following is a summary of non-performing assets:


(dollars in thousands)	March 31, 2017			December 31, 2016
Non-accrual loans	$	81,390		$	65,479
Troubled debt restructurings		23,988			20,428

Total non-performing loans		105,378			85,907
Other real estate owned (OREO)		50,088			32,490

Total non-performing assets	$	155,466		$	118,397


Asset quality ratios:
Non-performing loans / total loans and leases		0.52	%		0.58	%
Non-performing loans + OREO / total loans and leases + OREO		0.77	%		0.79	%
Non-performing assets / of total assets		0.51	%		0.54	%

Age Analysis of Past Due Loans, by Class

The following tables provide an analysis of the aging of loans by class segregated by loans and leases originated and loans acquired:


(in thousands)	30-89 Days Past Due		³ 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due		Current		Total Loans and Leases
Originated Loans and Leases
March 31, 2017
Commercial real estate	$	5,923	$	1	$	23,040	$	28,964	$	4,233,306	$	4,262,270
Commercial and industrial		5,007		3		34,826		39,836		2,817,748		2,857,584
Commercial leases		1,039		—		2,017		3,056		194,015		197,071

Total commercial loans and leases		11,969		4		59,883		71,856		7,245,069		7,316,925
Direct installment		7,973		4,092		7,675		19,740		1,739,155		1,758,895
Residential mortgages		9,797		1,966		4,466		16,229		1,535,699		1,551,928
Indirect installment		5,678		374		1,488		7,540		1,252,230		1,259,770
Consumer lines of credit		2,739		375		1,782		4,896		1,095,799		1,100,695
Other		242		121		1,000		1,363		44,952		46,315

Total originated loans and leases	$	38,398	$	6,932	$	76,294	$	121,624	$	12,912,904	$	13,034,528


December 31, 2016
Commercial real estate	$	8,452	$	1	$	20,114	$	28,567	$	4,067,250	$	4,095,817
Commercial and industrial		16,019		3		24,141		40,163		2,671,723		2,711,886
Commercial leases		973		1		3,429		4,403		192,233		196,636

Total commercial loans and leases		25,444		5		47,684		73,133		6,931,206		7,004,339
Direct installment		10,573		4,386		6,484		21,443		1,743,814		1,765,257
Residential mortgages		10,594		3,014		3,316		16,924		1,429,852		1,446,776
Indirect installment		9,312		513		1,983		11,808		1,184,302		1,196,110
Consumer lines of credit		3,529		1,112		1,616		6,257		1,093,370		1,099,627
Other		398		83		1,000		1,481		34,397		35,878

Total originated loans and leases	$	59,850	$	9,113	$	62,083	$	131,046	$	12,416,941	$	12,547,987


(in thousands)	30-89 Days Past Due		³ 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due (1) (2)		Current		Discount			Total Loans
Acquired Loans
March 31, 2017
Commercial real estate	$	41,450	$	39,243	$	1,414	$	82,107	$	4,630,159	$	(206,179	)	$	4,506,087
Commercial and industrial		7,587		7,736		2,854		18,177		977,012		(60,094	)		935,095

Total commercial loans		49,037		46,979		4,268		100,284		5,607,171		(266,273	)		5,441,182
Direct installment		5,669		2,183		81		7,933		196,563		1,727			206,223
Residential mortgages		19,069		14,075		—		33,144		800,460		(43,365	)		790,239
Indirect installment		—		2		—		2		75		100			177
Consumer lines of credit		11,395		5,974		747		18,116		703,422		(16,237	)		705,301

Total acquired loans	$	85,170	$	69,213	$	5,096	$	159,479	$	7,307,691	$	(324,048	)	$	7,143,122


December 31, 2016
Commercial real estate	$	9,501	$	23,890	$	949	$	34,340	$	1,384,752	$	(79,747	)	$	1,339,345
Commercial and industrial		1,789		2,942		2,111		6,842		353,494		(29,441	)		330,895

Total commercial loans		11,290		26,832		3,060		41,182		1,738,246		(109,188	)		1,670,240
Direct installment		2,317		1,344		—		3,661		73,479		2,002			79,142
Residential mortgages		8,428		10,816		—		19,244		416,561		(38,007	)		397,798
Indirect installment		19		4		—		23		96		84			203
Consumer lines of credit		2,156		1,528		336		4,020		201,958		(4,405	)		201,573

Total acquired loans	$	24,210	$	40,524	$	3,396	$	68,130	$	2,430,340	$	(149,514	)	$	2,348,956

(1)	Past due information for acquired loans is based on the contractual balance outstanding at March 31, 2017 and December 31, 2016.

(2)

Acquired loans are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, as long as we can reasonably estimate the timing and amount of expected cash flows on such loans. In these instances, we do not consider acquired contractually delinquent loans to be non-accrual or non-performing and continue to recognize interest income on these loans using the accretion method. Acquired loans are considered non-accrual or non-performing when, due to credit deterioration or other factors, we determine we are no longer able to reasonably estimate the timing and amount of expected cash flows on such loans. We do not recognize interest income on acquired loans considered non-accrual or non-performing.

Summary of Commercial Loans by Credit Quality

The following tables present a summary of our commercial loans and leases by credit quality category, segregated by loans and leases originated and loans acquired:


	Commercial Loan and Lease Credit Quality Categories
(in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans and Leases
March 31, 2017
Commercial real estate	$	4,068,403	$	132,700	$	60,958	$	209	$	4,262,270
Commercial and industrial		2,616,144		122,892		109,515		9,033		2,857,584
Commercial leases		190,641		3,711		2,719		—		197,071

Total originated commercial loans and leases	$	6,875,188	$	259,303	$	173,192	$	9,242	$	7,316,925


December 31, 2016
Commercial real estate	$	3,895,764	$	130,452	$	69,588	$	13	$	4,095,817
Commercial and industrial		2,475,955		104,652		128,089		3,190		2,711,886
Commercial leases		188,662		3,789		4,185		—		196,636

Total originated commercial loans and leases	$	6,560,381	$	238,893	$	201,862	$	3,203	$	7,004,339


Acquired Loans
March 31, 2017
Commercial real estate	$	3,699,904	$	531,316	$	274,506	$	361	$	4,506,087
Commercial and industrial		786,808		77,961		70,171		155		935,095

Total acquired commercial loans	$	4,486,712	$	609,277	$	344,677	$	516	$	5,441,182


December 31, 2016
Commercial real estate	$	1,144,676	$	85,894	$	108,128	$	647	$	1,339,345
Commercial and industrial		274,819		20,593		34,967		516		330,895

Total acquired commercial loans	$	1,419,495	$	106,487	$	143,095	$	1,163	$	1,670,240

Summary of Consumer Loans by Payment Status

Following is a table showing consumer loans by payment status:


	Consumer Loan Credit Quality by Payment Status
(in thousands)	Performing		Non- Performing		Total
Originated loans
March 31, 2017
Direct installment	$	1,742,702	$	16,193	$	1,758,895
Residential mortgages		1,537,779		14,149		1,551,928
Indirect installment		1,258,084		1,686		1,259,770
Consumer lines of credit		1,097,781		2,914		1,100,695

Total originated consumer loans	$	5,636,346	$	34,942	$	5,671,288


December 31, 2016
Direct installment	$	1,750,305	$	14,952	$	1,765,257
Residential mortgages		1,433,409		13,367		1,446,776
Indirect installment		1,193,930		2,180		1,196,110
Consumer lines of credit		1,096,642		2,985		1,099,627

Total originated consumer loans	$	5,474,286	$	33,484	$	5,507,770


Acquired loans
March 31, 2017
Direct installment	$	206,138	$	85	$	206,223
Residential mortgages		788,656		1,583		790,239
Indirect installment		177		—		177
Consumer lines of credit		703,972		1,329		705,301

Total acquired consumer loans	$	1,698,943	$	2,997	$	1,701,940


December 31, 2016
Direct installment	$	79,142	$	—	$	79,142
Residential mortgages		397,798		—		397,798
Indirect installment		203		—		203
Consumer lines of credit		201,061		512		201,573

Total acquired consumer loans	$	678,204	$	512	$	678,716

Summary of Impaired Loans and Leases, by Class

Following is a summary of information pertaining to originated loans and leases considered to be impaired, by class of loan and lease:


(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Specific Reserve		Recorded Investment With Specific Reserve		Total Recorded Investment		Specific Reserve		Average Recorded Investment
At or for the Three Months Ended March 31, 2017
Commercial real estate	$	27,470	$	21,266	$	1,795	$	23,061	$	209	$	21,612
Commercial and industrial		36,889		12,055		22,299		34,354		9,038		29,065
Commercial leases		2,017		2,017		—		2,017		—		2,723

Total commercial loans and leases		66,376		35,338		24,094		59,432		9,247		53,400
Direct installment		18,062		16,193		—		16,193		—		15,572
Residential mortgages		15,151		14,149		—		14,149		—		13,758
Indirect installment		4,168		1,686		—		1,686		—		1,933
Consumer lines of credit		3,831		2,914		—		2,914		—		2,950
Other		1,000		1,000		—		1,000		—		1,000

Total	$	108,588	$	71,280	$	24,094	$	95,374	$	9,247	$	88,613


At or for the Year Ended December 31, 2016
Commercial real estate	$	23,771	$	19,699	$	464	$	20,163	$	13	$	19,217
Commercial and industrial		25,719		14,781		8,996		23,777		3,190		29,730
Commercial leases		3,429		3,429		—		3,429		—		3,394

Total commercial loans and leases		52,919		37,909		9,460		47,369		3,203		52,341
Direct installment		16,440		14,952		—		14,952		—		14,997
Residential mortgages		14,090		13,367		—		13,367		—		13,200
Indirect installment		5,172		2,180		—		2,180		—		2,037
Consumer lines of credit		3,858		2,985		—		2,985		—		2,813
Other		1,000		1,000		—		1,000		—		1,000

Total	$	93,479	$	72,393	$	9,460	$	81,853	$	3,203	$	86,388

Additional Allowance for Credit Losses Relating to Acquired Loans

The above tables do not reflect the additional allowance for credit losses relating to acquired loans in the following pools and categories:


(in thousands)	March 31, 2017		December 31, 2016
Commercial real estate	$	3,734	$	4,538
Commercial and industrial		127		500

Total commercial loans		3,861		5,038
Direct installment		994		1,005
Residential mortgages		795		632
Indirect installment		221		221
Consumer lines of credit		697		372

Total allowance on acquired loans	$	6,568	$	7,268

Summary of Payment Status of TDRs

Following is a summary of the payment status of TDRs:


(in thousands)	Originated		Acquired		Total
March 31, 2017
Accruing:
Performing	$	17,552	$	272	$	17,824
Non-performing		19,659		4,329		23,988
Non-accrual		8,862		562		9,424

Total TDRs	$	46,073	$	5,163	$	51,236


December 31, 2016
Accruing:
Performing	$	17,105	$	365	$	17,470
Non-performing		20,252		176		20,428
Non-accrual		9,035		—		9,035

Total TDRs	$	46,392	$	541	$	46,933

Reserve for Commercial TDRs Included in Allowance for Credit Losses

The reserve for commercial TDRs included in the allowance for credit losses is presented in the following table:


(in thousands)	March 31, 2017		December 31, 2016
Specific reserves for commercial TDRs	$	253	$	291
Pooled reserves for individual loans under $500		234		276

Summary of Troubled Debt Restructurings by Class of Loans

The majority of TDRs are the result of interest rate concessions for a limited period of time. Following is a summary of loans, by class, that have been restructured:


	Three Months Ended March 31, 2017						Three Months Ended March 31, 2016
(dollars in thousands)	Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts		Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate		1	$	114	$	109		4	$	778	$	760
Commercial and industrial		—		—		—		2		5,565		3,279

Total commercial loans		1		114		109		6		6,343		4,039
Direct installment		171		1,488		1,412		145		1,991		1,961
Residential mortgages		8		163		176		18		968		951
Indirect installment		5		17		14		3		11		12
Consumer lines of credit		22		742		729		20		243		238

Total		207	$	2,524	$	2,440		192	$	9,556	$	7,201

Summary of Originated Troubled Debt Restructurings by Class of Loans and Leases, Payment Default

Following is a summary of originated TDRs, by class, for which there was a payment default, excluding loans that were either charged-off or cured by period end. Default occurs when a loan is 90 days or more past due and is within 12 months of restructuring.


	Three Months Ended March 31, 2017				Three Months Ended March 31, 2016
(dollars in thousands)	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Commercial real estate		—	$	—		—	$	—
Commercial and industrial		—		—		—		—

Total commercial loans		—		—		—		—
Direct installment		29		82		28		175
Residential mortgages		2		224		1		50
Indirect installment		6		10		4		5
Consumer lines of credit		1		34		1		10

Total		38	$	350		34	$	240