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Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Tables)
 6 Months Ended
Jun. 30, 2017
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, 2017 and December 31, 2016. 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 (1)
 
30-89 Days
Past Due
 
90 Days or
More Past
Due
 
Total
Past Due
 
Total
Loans
 
 
Non-
accrual (2)
 
90 Days or More Past Due, Still Accruing Interest
As of June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
3,399,763

 
$
8,282

 
$
2,703

 
$
10,985

 
$
3,410,748

 
 
$
51,400

 
$
1,550

Agricultural
 
432,672

 
379

 
373

 
752

 
433,424

 
 
387

 
—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,973,608

 
1,847

 
8,347

 
10,194

 
1,983,802

 
 
15,031

 
—

Multi-family
 
679,795

 
1,128

 
109

 
1,237

 
681,032

 
 
158

 
109

Construction
 
543,023

 
675

 
194

 
869

 
543,892

 
 
197

 
—

Other commercial real estate
 
1,378,534

 
2,363

 
3,040

 
5,403

 
1,383,937

 
 
3,736

 
64

Total commercial real
  estate
 
4,574,960

 
6,013

 
11,690

 
17,703

 
4,592,663

 
 
19,122

 
173

Total corporate loans
 
8,407,395

 
14,674

 
14,766

 
29,440

 
8,436,835

 
 
70,909

 
1,723

Home equity
 
859,362

 
4,083

 
2,211

 
6,294

 
865,656

 
 
5,126

 
41

1-4 family mortgages
 
612,669

 
1,149

 
1,000

 
2,149

 
614,818

 
 
3,161

 
—

Installment
 
312,132

 
2,423

 
295

 
2,718

 
314,850

 
 
—

 
295

Total consumer loans
 
1,784,163

 
7,655

 
3,506

 
11,161

 
1,795,324

 
 
8,287

 
336

Total loans
 
$
10,191,558

 
$
22,329

 
$
18,272

 
$
40,601

 
$
10,232,159

 
 
$
79,196

 
$
2,059

As of December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
2,816,442

 
$
6,426

 
$
4,790

 
$
11,216

 
$
2,827,658

 
 
$
29,938

 
$
374

Agricultural
 
388,596

 
—

 
900

 
900

 
389,496

 
 
181

 
736

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,564,007

 
5,327

 
12,633

 
17,960

 
1,581,967

 
 
17,277

 
1,129

Multi-family
 
612,446

 
858

 
748

 
1,606

 
614,052

 
 
311

 
604

Construction
 
450,927

 
332

 
281

 
613

 
451,540

 
 
286

 
—

Other commercial real estate
 
974,575

 
1,307

 
3,646

 
4,953

 
979,528

 
 
2,892

 
1,526

Total commercial real
  estate
 
3,601,955

 
7,824

 
17,308

 
25,132

 
3,627,087

 
 
20,766

 
3,259

Total corporate loans
 
6,806,993

 
14,250

 
22,998

 
37,248

 
6,844,241

 
 
50,885

 
4,369

Home equity
 
740,919

 
4,545

 
2,519

 
7,064

 
747,983

 
 
5,465

 
109

1-4 family mortgages
 
420,264

 
2,652

 
1,006

 
3,658

 
423,922

 
 
2,939

 
272

Installment
 
236,264

 
1,476

 
259

 
1,735

 
237,999

 
 
—

 
259

Total consumer loans
 
1,397,447

 
8,673

 
3,784

 
12,457

 
1,409,904

 
 
8,404

 
640

Total loans
 
$
8,204,440

 
$
22,923

 
$
26,782

 
$
49,705

 
$
8,254,145

 
 
$
59,289

 
$
5,009



(1) 
PCI loans with an accretable yield are considered current.
(2) 
Includes PCI loans of $243,000 and $682,000 as of June 30, 2017 and December 31, 2016, respectively, which no longer have an accretable yield as estimates of expected future cash flows have decreased since the acquisition due to credit deterioration.
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, 2017 and 2016 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
 
Reserve for
Unfunded
Commitments
 
Total
Allowance for Credit Losses
Quarter ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
41,786

 
$
17,701

 
$
2,860

 
$
4,110

 
$
6,922

 
$
14,784

 
$
1,000

 
$
89,163

Charge-offs
 
(2,957
)
 
—

 
—

 
(39
)
 
(307
)
 
(1,556
)
 
—

 
(4,859
)
Recoveries
 
400

 
8

 
6

 
12

 
79

 
323

 
—

 
828

Net charge-offs
 
(2,557
)
 
8

 
6

 
(27
)
 
(228
)
 
(1,233
)
 
—

 
(4,031
)
Provision for loan
  losses and other
 
7,042

 
(2,701
)
 
53

 
11

 
785

 
3,049

 
—

 
8,239

Ending balance
 
$
46,271

 
$
15,008

 
$
2,919

 
$
4,094

 
$
7,479

 
$
16,600

 
$
1,000

 
$
93,371

Quarter ended June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
37,736

 
$
14,420

 
$
2,547

 
$
2,433

 
$
6,588

 
$
13,426

 
$
1,225

 
$
78,375

Charge-offs
 
(2,026
)
 
(1,641
)
 
(84
)
 
(8
)
 
(879
)
 
(1,495
)
 
—

 
(6,133
)
Recoveries
 
576

 
8

 
1

 
20

 
69

 
329

 
—

 
1,003

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

 
(810
)
 
(1,166
)
 
—

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

 
198

 
469

 
(206
)
 
1,714

 
2,112

 
175

 
8,260

Ending balance
 
$
40,084

 
$
12,985

 
$
2,933

 
$
2,239

 
$
7,492

 
$
14,372

 
$
1,400

 
$
81,505

Six months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
40,709

 
$
17,595

 
$
3,261

 
$
3,444

 
$
7,739

 
$
13,335

 
$
1,000

 
$
87,083

Charge-offs
 
(7,031
)
 
(127
)
 
—

 
(44
)
 
(715
)
 
(3,220
)
 
—

 
(11,137
)
Recoveries
 
2,066

 
983

 
34

 
239

 
180

 
766

 
—

 
4,268

Net charge-offs
 
(4,965
)
 
856

 
34

 
195

 
(535
)
 
(2,454
)
 
—

 
(6,869
)
Provision for loan
  losses and other
 
10,527

 
(3,443
)
 
(376
)
 
455

 
275

 
5,719

 
—

 
13,157

Ending balance
 
$
46,271

 
$
15,008

 
$
2,919

 
$
4,094

 
$
7,479

 
$
16,600

 
$
1,000

 
$
93,371

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

 
$
13,124

 
$
2,469

 
$
1,440

 
$
6,109

 
$
13,414

 
$
1,225

 
$
74,855

Charge-offs
 
(3,924
)
 
(2,165
)
 
(288
)
 
(134
)
 
(2,324
)
 
(2,487
)
 
—

 
(11,322
)
Recoveries
 
1,078

 
111

 
26

 
35

 
220

 
649

 
—

 
2,119

Net charge-offs
 
(2,846
)
 
(2,054
)
 
(262
)
 
(99
)
 
(2,104
)
 
(1,838
)
 
—

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

 
1,915

 
726

 
898

 
3,487

 
2,796

 
175

 
15,853

Ending balance
 
$
40,084

 
$
12,985

 
$
2,933

 
$
2,239

 
$
7,492

 
$
14,372

 
$
1,400

 
$
81,505
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, 2017 and December 31, 2016.
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, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and
  agricultural
 
$
50,521

 
$
3,763,526

 
$
30,125

 
$
3,844,172

 
$
4,859

 
$
40,922

 
$
490

 
$
46,271

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
13,781

 
1,951,097

 
18,924

 
1,983,802

 
379

 
12,970

 
1,659

 
15,008

Multi-family
 
396

 
666,237

 
14,399

 
681,032

 
—

 
2,833

 
86

 
2,919

Construction
 
—

 
528,570

 
15,322

 
543,892

 
—

 
3,945

 
149

 
4,094

Other commercial real estate
 
2,174

 
1,314,977

 
66,786

 
1,383,937

 
—

 
6,225

 
1,254

 
7,479

Total commercial real estate
 
16,351

 
4,460,881

 
115,431

 
4,592,663

 
379

 
25,973

 
3,148

 
29,500

Total corporate loans
 
66,872

 
8,224,407

 
145,556

 
8,436,835

 
5,238

 
66,895

 
3,638

 
75,771

Consumer
 
—

 
1,772,271

 
23,053

 
1,795,324

 
—

 
15,173

 
1,427

 
16,600

Reserve for unfunded
  commitments
 
—

 
—

 
—

 
—

 
—

 
1,000

 
—

 
1,000

Total loans
 
$
66,872

 
$
9,996,678

 
$
168,609

 
$
10,232,159

 
$
5,238

 
$
83,068

 
$
5,065

 
$
93,371

As of December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and
  agricultural
 
$
24,645

 
$
3,189,327

 
$
3,182

 
$
3,217,154

 
$
507

 
$
39,554

 
$
648

 
$
40,709

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
16,287

 
1,553,234

 
12,446

 
1,581,967

 
—

 
16,148

 
1,447

 
17,595

Multi-family
 
398

 
601,429

 
12,225

 
614,052

 
—

 
3,059

 
202

 
3,261

Construction
 
34

 
447,058

 
4,448

 
451,540

 
—

 
3,280

 
164

 
3,444

Other commercial real estate
 
1,286

 
965,900

 
12,342

 
979,528

 
18

 
6,613

 
1,108

 
7,739

Total commercial real estate
 
18,005

 
3,567,621

 
41,461

 
3,627,087

 
18

 
29,100

 
2,921

 
32,039

Total corporate loans
 
42,650

 
6,756,948

 
44,643

 
6,844,241

 
525

 
68,654

 
3,569

 
72,748

Consumer
 
—

 
1,392,880

 
17,024

 
1,409,904

 
—

 
12,210

 
1,125

 
13,335

Reserve for unfunded
  commitments
 
—

 
—

 
—

 
—

 
—

 
1,000

 
—

 
1,000

Total loans
 
$
42,650

 
$
8,149,828

 
$
61,667

 
$
8,254,145

 
$
525

 
$
81,864

 
$
4,694

 
$
87,083
Impaired Financing Receivables
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, 2017 and 2016. 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,
 
 
2017
 
2016
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
Commercial and industrial
 
$
33,648

 
$
342

 
$
3,236

 
$
12

Agricultural
 
697

 
—

 
—

 
—

Commercial real estate:
 
 
 
 
 
 
 
 

Office, retail, and industrial
 
13,612

 
169

 
12,712

 
29

Multi-family
 
396

 
—

 
401

 
—

Construction
 
—

 
—

 
34

 
—

Other commercial real estate
 
2,334

 
8

 
3,641

 
53

Total commercial real estate
 
16,342

 
177

 
16,788

 
82

Total impaired loans
 
$
50,687

 
$
519

 
$
20,024

 
$
94

 
 
 
 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
 
2017
 
2016
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
 
Average
Recorded
Investment
 
Interest
Income
Recognized (1)
Commercial and industrial
 
$
30,647

 
$
556

 
$
3,114

 
$
50

Agricultural
 
464

 
—

 
—

 
—

Commercial real estate:
 
 
 
 
 
 
 
 

Office, retail, and industrial
 
14,503

 
262

 
10,529

 
77

Multi-family
 
397

 
28

 
534

 
1

Construction
 
11

 
136

 
82

 
—

Other commercial real estate
 
1,984

 
20

 
3,649

 
72

Total commercial real estate
 
16,895

 
446

 
14,794

 
150

Total impaired loans
 
$
48,006

 
$
1,002

 
$
17,908

 
$
200


(1) 
Recorded using the cash basis of accounting.
The following table presents loans individually evaluated for impairment by class of loan as of June 30, 2017 and December 31, 2016. PCI loans are excluded from this disclosure.
Impaired Loans Individually Evaluated by Class
(Dollar amounts in thousands)
 
 
As of June 30, 2017
 
 
As of December 31, 2016
 
 
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
 
$
16,215

 
$
34,027

 
$
53,545

 
$
4,859

 
 
$
11,579

 
$
13,066

 
$
29,514

 
$
507

Agricultural
 
279

 
—

 
1,629

 
—

 
 
—

 
—

 
—

 
—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
10,125

 
3,656

 
16,966

 
379

 
 
16,287

 
—

 
21,057

 
—

Multi-family
 
396

 
—

 
396

 
—

 
 
398

 
—

 
398

 
—

Construction
 
—

 
—

 
—

 
—

 
 
34

 
—

 
34

 
—

Other commercial real estate
 
2,174

 
—

 
2,271

 
—

 
 
1,016

 
270

 
2,141

 
18

Total commercial real estate
 
12,695

 
3,656

 
19,633

 
379

 
 
17,735

 
270

 
23,630

 
18

Total impaired loans
   individually evaluated
   for impairment
 
$
29,189

 
$
37,683

 
$
74,807

 
$
5,238

 
 
$
29,314

 
$
13,336

 
$
53,144

 
$
525
Financing Receivable Credit Quality Indicators
Consumer Credit Quality Indicators by Class
(Dollar amounts in thousands)
 
 
Performing
 
Non-accrual
 
Total
As of June 30, 2017
 
 
 
 
 
 
Home equity
 
$
860,530

 
$
5,126

 
$
865,656

1-4 family mortgages
 
611,657

 
3,161

 
614,818

Installment
 
314,850

 
—

 
314,850

Total consumer loans
 
$
1,787,037

 
$
8,287

 
$
1,795,324

As of December 31, 2016
 
 
 
 
 
 
Home equity
 
$
727,618

 
$
4,986

 
$
732,604

1-4 family mortgages
 
413,415

 
2,939

 
416,354

Installment
 
237,999

 
—

 
237,999

Total consumer loans
 
$
1,379,032

 
$
7,925

 
$
1,386,957

The following tables present credit quality indicators by class for corporate and consumer loans, as of June 30, 2017 and December 31, 2016.
Corporate Credit Quality Indicators by Class
(Dollar amounts in thousands)
 
 
Pass
 
Special
 Mention (1) (4)
 
Substandard (2) (4)
 
Non-accrual (3)
 
Total
As of June 30, 2017
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
3,199,001

 
$
67,252

 
$
93,095

 
$
51,400

 
$
3,410,748

Agricultural
 
409,969

 
14,464

 
8,604

 
387

 
433,424

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,896,327

 
27,894

 
44,550

 
15,031

 
1,983,802

Multi-family
 
673,946

 
5,051

 
1,877

 
158

 
681,032

Construction
 
523,046

 
8,739

 
11,910

 
197

 
543,892

Other commercial real estate
 
1,338,382

 
21,137

 
20,682

 
3,736

 
1,383,937

Total commercial real estate
 
4,431,701

 
62,821

 
79,019

 
19,122

 
4,592,663

Total corporate loans
 
$
8,040,671

 
$
144,537

 
$
180,718

 
$
70,909

 
$
8,436,835

As of December 31, 2016
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
2,638,833

 
$
92,340

 
$
66,547

 
$
29,938

 
$
2,827,658

Agricultural
 
366,382

 
17,039

 
5,894

 
181

 
389,496

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,491,030

 
34,007

 
39,513

 
17,277

 
1,581,827

Multi-family
 
607,324

 
4,370

 
2,029

 
311

 
614,034

Construction
 
438,946

 
111

 
12,197

 
286

 
451,540

Other commercial real estate
 
951,115

 
11,808

 
13,544

 
2,892

 
979,359

Total commercial real estate
 
3,488,415

 
50,296

 
67,283

 
20,766

 
3,626,760

Total corporate loans
 
$
6,493,630

 
$
159,675

 
$
139,724

 
$
50,885

 
$
6,843,914


(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 $669,000 as of June 30, 2017 and $834,000 as of December 31, 2016.
Troubled Debt Restructuring Activity Rollforward
The table below presents TDRs by class as of June 30, 2017 and December 31, 2016. 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, 2017
 
As of December 31, 2016
 
 
Accruing
 
Non-accrual (1)
 
Total
 
Accruing
 
Non-accrual (1)
 
Total
Commercial and industrial
 
$
273

 
$
891

 
$
1,164

 
$
281

 
$
150

 
$
431

Agricultural
 
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
—

 
860

 
860

 
155

 
4,733

 
4,888

Multi-family
 
579

 
158

 
737

 
586

 
168

 
754

Construction
 
—

 
—

 
—

 
—

 
—

 
—

Other commercial real estate
 
197

 
—

 
197

 
268

 
48

 
316

Total commercial real estate
 
776

 
1,018

 
1,794

 
1,009

 
4,949

 
5,958

Total corporate loans
 
1,049

 
1,909

 
2,958

 
1,290

 
5,099

 
6,389

Home equity
 
168

 
771

 
939

 
177

 
820

 
997

1-4 family mortgages
 
812

 
356

 
1,168

 
824

 
378

 
1,202

Installment
 
—

 
—

 
—

 
—

 
—

 
—

Total consumer loans
 
980

 
1,127

 
2,107

 
1,001

 
1,198

 
2,199

Total loans
 
$
2,029

 
$
3,036

 
$
5,065

 
$
2,291

 
$
6,297

 
$
8,588


(1) 
These TDRs are included in non-accrual loans in the preceding tables.
A rollforward of the carrying value of TDRs for the quarters and six months ended June 30, 2017 and 2016 is presented in the following table.
TDR Rollforward
(Dollar amounts in thousands)
 
 
Quarters Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
 
2017
 
2016
 
2017
 
2016
Accruing
 
 
 
 
 
 
 
 
Beginning balance
 
$
2,112

 
$
2,702

 
$
2,291

 
$
2,743

Additions
 
—

 
—

 
922

 
—

Net payments received
 
(83
)
 
(28
)
 
(107
)
 
(69
)
Net transfers to non-accrual
 
—

 
(183
)
 
(1,077
)
 
(183
)
Ending balance
 
2,029

 
2,491

 
2,029

 
2,491

Non-accrual
 
 
 
 
 
 
 
 
Beginning balance
 
3,112

 
2,268

 
6,297

 
2,324

Net payments received
 
(75
)
 
(522
)
 
(4,225
)
 
(578
)
Charge-offs
 
(1
)
 
(239
)
 
(113
)
 
(239
)
Net transfers from accruing
 
—

 
183

 
1,077

 
183

Ending balance
 
3,036

 
1,690

 
3,036

 
1,690

Total TDRs
 
$
5,065

 
$
4,181

 
$
5,065

 
$
4,181