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Past Due Loans, Allowance For Credit Losses, Impaired Loans and TDRS (Tables)
 6 Months Ended
Jun. 30, 2016
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Past Due Financing Receivables
The following table presents an aging analysis of the Company's past due loans as of June 30, 2016 and December 31, 2015. The aging is determined without regard to accrual status. The table also presents non-performing loans, consisting of non-accrual loans (the majority of which are past due) and loans 90 days or more past due and still accruing interest, as of each balance sheet date.
Aging Analysis of Past Due Loans and Non-performing Loans by Class
(Dollar amounts in thousands)
 
 
Aging Analysis (Accruing and Non-accrual)
 
 
Non-performing Loans
 
 
Current
 
30-89 Days
Past Due
 
90 Days or
More Past
Due
 
Total
Past Due
 
Total
Loans
 
 
Non-
accrual
 
90 Days or More Past Due, Still Accruing Interest
As of June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
2,684,411

 
$
10,162

 
$
5,169

 
$
15,331

 
$
2,699,742

 
 
$
6,303

 
$
1,050

Agricultural
 
401,242

 
383

 
233

 
616

 
401,858

 
 
475

 
—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,516,265

 
4,677

 
8,733

 
13,410

 
1,529,675

 
 
16,815

 
34

Multi-family
 
584,040

 
2,566

 
498

 
3,064

 
587,104

 
 
321

 
354

Construction
 
370,596

 
47

 
373

 
420

 
371,016

 
 
360

 
20

Other commercial real estate
 
992,309

 
2,926

 
5,420

 
8,346

 
1,000,655

 
 
4,797

 
2,925

Total commercial real
  estate
 
3,463,210

 
10,216

 
15,024

 
25,240

 
3,488,450

 
 
22,293

 
3,333

Total corporate loans
 
6,548,863

 
20,761

 
20,426

 
41,187

 
6,590,050

 
 
29,071

 
4,383

Home equity
 
717,461

 
3,278

 
2,142

 
5,420

 
722,881

 
 
4,527

 
153

1-4 family mortgages
 
411,585

 
1,901

 
2,095

 
3,996

 
415,581

 
 
3,261

 
604

Installment
 
222,273

 
1,306

 
266

 
1,572

 
223,845

 
 
—

 
266

Total consumer loans
 
1,351,319

 
6,485

 
4,503

 
10,988

 
1,362,307

 
 
7,788

 
1,023

Covered loans
 
26,204

 
681

 
295

 
976

 
27,180

 
 
453

 
—

Total loans
 
$
7,926,386

 
$
27,927

 
$
25,224

 
$
53,151

 
$
7,979,537

 
 
$
37,312

 
$
5,406

As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
2,516,197

 
$
4,956

 
$
3,573

 
$
8,529

 
$
2,524,726

 
 
$
5,587

 
$
857

Agricultural
 
387,109

 
245

 
86

 
331

 
387,440

 
 
355

 
—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,386,383

 
2,647

 
6,424

 
9,071

 
1,395,454

 
 
6,875

 
4

Multi-family
 
526,625

 
541

 
1,158

 
1,699

 
528,324

 
 
796

 
548

Construction
 
216,377

 
—

 
505

 
505

 
216,882

 
 
905

 
—

Other commercial real estate
 
922,531

 
3,575

 
5,084

 
8,659

 
931,190

 
 
5,611

 
661

Total commercial real
  estate
 
3,051,916

 
6,763

 
13,171

 
19,934

 
3,071,850

 
 
14,187

 
1,213

Total corporate loans
 
5,955,222

 
11,964

 
16,830

 
28,794

 
5,984,016

 
 
20,129

 
2,070

Home equity
 
647,175

 
3,247

 
3,046

 
6,293

 
653,468

 
 
5,310

 
216

1-4 family mortgages
 
350,980

 
2,680

 
2,194

 
4,874

 
355,854

 
 
3,416

 
528

Installment
 
136,780

 
753

 
69

 
822

 
137,602

 
 
20

 
69

Total consumer loans
 
1,134,935

 
6,680

 
5,309

 
11,989

 
1,146,924

 
 
8,746

 
813

Covered loans
 
29,808

 
405

 
562

 
967

 
30,775

 
 
555

 
174

Total loans
 
$
7,119,965

 
$
19,049

 
$
22,701

 
$
41,750

 
$
7,161,715

 
 
$
29,430

 
$
3,057
Allowance for Credit Losses on Financing Receivables
A rollforward of the allowance for credit losses by portfolio segment for the quarters and six months ended June 30, 2016 and 2015 is presented in the table below.
Allowance for Credit Losses by Portfolio Segment
(Dollar amounts in thousands)
 
 
Commercial,
Industrial,
and
Agricultural
 
Office,
Retail, and
Industrial
 
Multi-
family
 
Construction
 
Other
Commercial
Real Estate
 
Consumer
 
Covered
Loans
 
Reserve for
Unfunded
Commitments
 
Total
Allowance for Credit Losses
Quarter ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
37,736

 
$
14,412

 
$
2,540

 
$
2,433

 
$
6,567

 
$
11,894

 
$
1,568

 
$
1,225

 
$
78,375

Charge-offs
 
(2,026
)
 
(1,641
)
 
(84
)
 
(8
)
 
(879
)
 
(1,493
)
 
(2
)
 
—

 
(6,133
)
Recoveries
 
576

 
8

 
1

 
20

 
69

 
329

 
—

 
—

 
1,003

Net charge-offs
 
(1,450
)
 
(1,633
)
 
(83
)
 
12

 
(810
)
 
(1,164
)
 
(2
)
 
—

 
(5,130
)
Provision for loan
  losses and other
 
3,798

 
206

 
469

 
(206
)
 
1,717

 
2,273

 
(172
)
 
175

 
8,260

Ending balance
 
$
40,084

 
$
12,985

 
$
2,926

 
$
2,239

 
$
7,474

 
$
13,003

 
$
1,394

 
$
1,400

 
$
81,505

Quarter ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
32,096

 
$
10,831

 
$
2,355

 
$
2,076

 
$
6,298

 
$
11,655

 
$
5,679

 
$
1,816

 
$
72,806

Charge-offs
 
(4,127
)
 
(1,894
)
 
(469
)
 
(15
)
 
(527
)
 
(751
)
 
(323
)
 
—

 
(8,106
)
Recoveries
 
854

 
32

 
3

 
203

 
1,130

 
319

 
38

 
—

 
2,579

Net charge-offs
 
(3,273
)
 
(1,862
)
 
(466
)
 
188

 
603

 
(432
)
 
(285
)
 
—

 
(5,527
)
Provision for loan
  losses and other
 
4,906

 
2,376

 
562

 
(374
)
 
(534
)
 
(403
)
 
(533
)
 
—

 
6,000

Ending balance
 
$
33,729

 
$
11,345

 
$
2,451

 
$
1,890

 
$
6,367

 
$
10,820

 
$
4,861

 
$
1,816

 
$
73,279

Six months ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
37,074

 
$
13,116

 
$
2,462

 
$
1,440

 
$
6,088

 
$
11,812

 
$
1,638

 
$
1,225

 
$
74,855

Charge-offs
 
(3,924
)
 
(2,165
)
 
(288
)
 
(134
)
 
(2,324
)
 
(2,485
)
 
(2
)
 
—

 
(11,322
)
Recoveries
 
1,078

 
111

 
26

 
35

 
220

 
649

 
—

 
—

 
2,119

Net charge-offs
 
(2,846
)
 
(2,054
)
 
(262
)
 
(99
)
 
(2,104
)
 
(1,836
)
 
(2
)
 
—

 
(9,203
)
Provision for loan
  losses and other
 
5,856

 
1,923

 
726

 
898

 
3,490

 
3,027

 
(242
)
 
175

 
15,853

Ending balance
 
$
40,084

 
$
12,985

 
$
2,926

 
$
2,239

 
$
7,474

 
$
13,003

 
$
1,394

 
$
1,400

 
$
81,505

Six months ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
29,458

 
$
10,992

 
$
2,249

 
$
2,297

 
$
8,327

 
$
12,145

 
$
7,226

 
$
1,816

 
$
74,510

Charge-offs
 
(11,576
)
 
(2,050
)
 
(497
)
 
(15
)
 
(1,844
)
 
(1,551
)
 
(626
)
 
—

 
(18,159
)
Recoveries
 
1,646

 
354

 
7

 
220

 
1,396

 
640

 
113

 
—

 
4,376

Net charge-offs
 
(9,930
)
 
(1,696
)
 
(490
)
 
205

 
(448
)
 
(911
)
 
(513
)
 
—

 
(13,783
)
Provision for loan
  losses and other
 
14,201

 
2,049

 
692

 
(612
)
 
(1,512
)
 
(414
)
 
(1,852
)
 
—

 
12,552

Ending balance
 
$
33,729

 
$
11,345

 
$
2,451

 
$
1,890

 
$
6,367

 
$
10,820

 
$
4,861

 
$
1,816

 
$
73,279
Schedule of Loans and The Related Allowance For Credit Losses
The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of June 30, 2016 and December 31, 2015.
Loans and Related Allowance for Credit Losses by Portfolio Segment
(Dollar amounts in thousands)
 
 
Loans
 
Allowance for Credit Losses
 
 
Individually
Evaluated
for
Impairment
 
Collectively
Evaluated
for
Impairment
 
PCI
 
Total
 
Individually
Evaluated
for
Impairment
 
Collectively
Evaluated
for
Impairment
 
PCI
 
Total
As of June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and
  agricultural
 
$
3,755

 
$
3,087,338

 
$
10,507

 
$
3,101,600

 
$
198

 
$
39,220

 
$
666

 
$
40,084

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
15,742

 
1,500,762

 
13,171

 
1,529,675

 
2,086

 
9,517

 
1,382

 
12,985

Multi-family
 
399

 
574,031

 
12,674

 
587,104

 
—

 
2,724

 
202

 
2,926

Construction
 
34

 
366,057

 
4,925

 
371,016

 
—

 
2,088

 
151

 
2,239

Other commercial real estate
 
3,309

 
980,256

 
17,090

 
1,000,655

 
8

 
6,357

 
1,109

 
7,474

Total commercial real estate
 
19,484

 
3,421,106

 
47,860

 
3,488,450

 
2,094

 
20,686

 
2,844

 
25,624

Total corporate loans
 
23,239

 
6,508,444

 
58,367

 
6,590,050

 
2,292

 
59,906

 
3,510

 
65,708

Consumer
 
—

 
1,351,270

 
11,037

 
1,362,307

 
—

 
12,476

 
527

 
13,003

Covered loans
 
—

 
18,026

 
9,154

 
27,180

 
—

 
228

 
1,166

 
1,394

Reserve for unfunded
  commitments
 
—

 
—

 
—

 
—

 
—

 
1,400

 
—

 
1,400

Total loans
 
$
23,239

 
$
7,877,740

 
$
78,558

 
$
7,979,537

 
$
2,292

 
$
74,010

 
$
5,203

 
$
81,505

As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and
  agricultural
 
$
2,871

 
$
2,902,361

 
$
6,934

 
$
2,912,166

 
$
883

 
$
35,378

 
$
813

 
$
37,074

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
6,162

 
1,376,789

 
12,503

 
1,395,454

 
715

 
10,833

 
1,568

 
13,116

Multi-family
 
800

 
526,037

 
1,487

 
528,324

 
—

 
2,367

 
95

 
2,462

Construction
 
178

 
212,671

 
4,033

 
216,882

 
—

 
1,160

 
280

 
1,440

Other commercial real estate
 
3,665

 
913,161

 
14,364

 
931,190

 
—

 
5,367

 
721

 
6,088

Total commercial real estate
 
10,805

 
3,028,658

 
32,387

 
3,071,850

 
715

 
19,727

 
2,664

 
23,106

Total corporate loans
 
13,676

 
5,931,019

 
39,321

 
5,984,016

 
1,598

 
55,105

 
3,477

 
60,180

Consumer
 
—

 
1,135,959

 
10,965

 
1,146,924

 
—

 
11,425

 
387

 
11,812

Covered loans
 
—

 
20,856

 
9,919

 
30,775

 
—

 
248

 
1,390

 
1,638

Reserve for unfunded
  commitments
 
—

 
—

 
—

 
—

 
—

 
1,225

 
—

 
1,225

Total loans
 
$
13,676

 
$
7,087,834

 
$
60,205

 
$
7,161,715

 
$
1,598

 
$
68,003

 
$
5,254

 
$
74,855
Impaired Financing Receivables
The following table presents loans individually evaluated for impairment by class of loan as of June 30, 2016 and December 31, 2015. PCI loans are excluded from this disclosure.
Impaired Loans Individually Evaluated by Class
(Dollar amounts in thousands)
 
 
As of June 30, 2016
 
 
As of December 31, 2015
 
 
Recorded Investment In
 
 
 
 
Recorded Investment In
 
 
 
 
Loans with
No Specific
Reserve
 
Loans with
a Specific
Reserve
 
Unpaid
Principal
Balance
 
Specific
Reserve
 
 
Loans with
No Specific
Reserve
 
Loans with
a Specific
Reserve
 
Unpaid
Principal
Balance
 
Specific
Reserve
Commercial and industrial
 
$
1,909

 
$
1,846

 
$
5,873

 
$
198

 
 
$
1,673

 
$
1,198

 
$
4,592

 
$
883

Agricultural
 
—

 
—

 
—

 
—

 
 
—

 
—

 
—

 
—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
8,900

 
6,842

 
21,121

 
2,086

 
 
4,654

 
1,508

 
12,083

 
715

Multi-family
 
399

 
—

 
399

 
—

 
 
800

 
—

 
941

 
—

Construction
 
34

 
—

 
34

 
—

 
 
178

 
—

 
299

 
—

Other commercial real estate
 
3,039

 
270

 
4,740

 
8

 
 
3,665

 
—

 
4,403

 
—

Total commercial real estate
 
12,372

 
7,112

 
26,294

 
2,094

 
 
9,297

 
1,508

 
17,726

 
715

Total impaired loans
   individually evaluated
   for impairment
 
$
14,281

 
$
8,958

 
$
32,167

 
$
2,292

 
 
$
10,970

 
$
2,706

 
$
22,318

 
$
1,598
Impaired Financing Receivables Continued
The following table presents the average recorded investment and interest income recognized on impaired loans by class for the quarters and six months ended June 30, 2016 and 2015. PCI loans are excluded from this disclosure.
Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class
(Dollar amounts in thousands)
 
 
Quarters Ended June 30,
 
 
2016
 
2015
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
Commercial and industrial
 
$
3,236

 
$
12

 
$
9,277

 
$
6

Agricultural
 
—

 
—

 
—

 
—

Commercial real estate:
 
 
 
 
 
 
 
 

Office, retail, and industrial
 
12,713

 
29

 
11,188

 
4

Multi-family
 
401

 
—

 
866

 
1

Construction
 
34

 
—

 
5,395

 
—

Other commercial real estate
 
3,641

 
53

 
2,822

 
8

Total commercial real estate
 
16,788

 
82

 
20,271

 
13

Total impaired loans
 
$
20,024

 
$
94

 
$
29,548

 
$
19

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
 
2016
 
2015
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
Commercial and industrial
 
$
3,114

 
$
50

 
$
12,783

 
$
76

Agricultural
 
—

 
—

 
—

 
—

Commercial real estate:
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
10,529

 
77

 
11,570

 
33

Multi-family
 
534

 
1

 
890

 
1

Construction
 
82

 
—

 
5,820

 
—

Other commercial real estate
 
3,649

 
72

 
2,970

 
19

Total commercial real estate
 
14,794

 
150

 
21,250

 
53

Total impaired loans
 
$
17,908

 
$
200

 
$
34,033

 
$
129

(1) 
Recorded using the cash basis of accounting.
Financing Receivable Credit Quality Indicators
The following tables present credit quality indicators by class for corporate and consumer loans, excluding covered loans, as of June 30, 2016 and December 31, 2015.
Corporate Credit Quality Indicators by Class, Excluding Covered Loans
(Dollar amounts in thousands)
 
 
Pass
 
Special
 Mention (1) (4)
 
Substandard (2) (4)
 
Non-accrual (3)
 
Total
As of June 30, 2016
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
2,511,957

 
$
130,476

 
$
51,006

 
$
6,303

 
$
2,699,742

Agricultural
 
366,283

 
17,130

 
17,970

 
475

 
401,858

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,441,594

 
38,902

 
32,364

 
16,815

 
1,529,675

Multi-family
 
577,991

 
4,821

 
3,971

 
321

 
587,104

Construction
 
357,969

 
4,250

 
8,437

 
360

 
371,016

Other commercial real estate
 
966,607

 
12,123

 
17,128

 
4,797

 
1,000,655

Total commercial real estate
 
3,344,161

 
60,096

 
61,900

 
22,293

 
3,488,450

Total corporate loans
 
$
6,222,401

 
$
207,702

 
$
130,876

 
$
29,071

 
$
6,590,050

As of December 31, 2015
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
2,379,992

 
$
86,263

 
$
52,884

 
$
5,587

 
$
2,524,726

Agricultural
 
381,523

 
—

 
5,562

 
355

 
387,440

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,320,164

 
32,627

 
35,788

 
6,875

 
1,395,454

Multi-family
 
517,412

 
6,146

 
3,970

 
796

 
528,324

Construction
 
201,496

 
4,678

 
9,803

 
905

 
216,882

Other commercial real estate
 
898,746

 
13,179

 
13,654

 
5,611

 
931,190

Total commercial real estate
 
2,937,818

 
56,630

 
63,215

 
14,187

 
3,071,850

Total corporate loans
 
$
5,699,333

 
$
142,893

 
$
121,661

 
$
20,129

 
$
5,984,016

(1) 
Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future.
(2) 
Loans categorized as substandard exhibit well-defined weaknesses that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well secured and collection of principal and interest is expected within a reasonable time.
(3) 
Loans categorized as non-accrual exhibit well-defined weaknesses that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected.
(4) 
Total special mention and substandard loans includes accruing TDRs of $847,000 as of June 30, 2016 and $862,000 as of December 31, 2015.
Financing Receivable Credit Quality Indicators Continued
Consumer Credit Quality Indicators by Class, Excluding Covered Loans
(Dollar amounts in thousands)
 
 
Performing
 
Non-accrual
 
Total
As of June 30, 2016
 
 
 
 
 
 
Home equity
 
$
718,354

 
$
4,527

 
$
722,881

1-4 family mortgages
 
412,320

 
3,261

 
415,581

Installment
 
223,845

 
—

 
223,845

Total consumer loans
 
$
1,354,519

 
$
7,788

 
$
1,362,307

As of December 31, 2015
 
 
 
 
 
 
Home equity
 
$
648,158

 
$
5,310

 
$
653,468

1-4 family mortgages
 
352,438

 
3,416

 
355,854

Installment
 
137,582

 
20

 
137,602

Total consumer loans
 
$
1,138,178

 
$
8,746

 
$
1,146,924
Troubled Debt Restructuring by Class
The table below presents TDRs by class as of June 30, 2016 and December 31, 2015. See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for TDRs.
TDRs by Class
(Dollar amounts in thousands)
 
 
As of June 30, 2016
 
As of December 31, 2015
 
 
Accruing
 
Non-accrual (1)
 
Total
 
Accruing
 
Non-accrual (1)
 
Total
Commercial and industrial
 
$
289

 
$
286

 
$
575

 
$
294

 
$
1,050

 
$
1,344

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
159

 
—

 
159

 
164

 
—

 
164

Multi-family
 
591

 
177

 
768

 
598

 
186

 
784

Other commercial real estate
 
329

 
—

 
329

 
340

 
—

 
340

Total commercial real estate
 
1,079

 
177

 
1,256

 
1,102

 
186

 
1,288

Total corporate loans
 
1,368

 
463

 
1,831

 
1,396

 
1,236

 
2,632

Home equity
 
286

 
826

 
1,112

 
494

 
667

 
1,161

1-4 family mortgages
 
837

 
401

 
1,238

 
853

 
421

 
1,274

Total consumer loans
 
1,123

 
1,227

 
2,350

 
1,347

 
1,088

 
2,435

Total loans
 
$
2,491

 
$
1,690

 
$
4,181

 
$
2,743

 
$
2,324

 
$
5,067

(1) 
These TDRs are included in non-accrual loans in the preceding tables.
Troubled Debt Restructuring Activity Rollforward
A rollforward of the carrying value of TDRs for the quarters and six months ended June 30, 2016 and 2015 is presented in the following table.
TDR Rollforward
(Dollar amounts in thousands)
 
 
Quarters Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
 
2016
 
2015
 
2016
 
2015
Accruing
 
 
 
 
 
 
 
 
Beginning balance
 
$
2,702

 
$
3,581

 
$
2,743

 
$
3,704

Net payments received
 
(28
)
 
(349
)
 
(69
)
 
(391
)
Net transfers to non-accrual
 
(183
)
 
(165
)
 
(183
)
 
(246
)
Ending balance
 
2,491

 
3,067

 
2,491

 
3,067

Non-accrual
 
 
 
 
 
 
 
 
Beginning balance
 
2,268

 
1,996

 
2,324

 
19,904

Net payments received
 
(522
)
 
(55
)
 
(578
)
 
(15,454
)
Charge-offs
 
(239
)
 
(36
)
 
(239
)
 
(2,626
)
Net transfers from accruing
 
183

 
165

 
183

 
246

Ending balance
 
1,690

 
2,070

 
1,690

 
2,070

Total TDRs
 
$
4,181

 
$
5,137

 
$
4,181

 
$
5,137