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Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS
 9 Months Ended
Sep. 30, 2018
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]  
Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS
PAST DUE LOANS, ALLOWANCE FOR CREDIT LOSSES, IMPAIRED LOANS, AND TDRS
Past Due and Non-accrual Loans
The following table presents an aging analysis of the Company's past due loans as of September 30, 2018 and December 31, 2017. 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 September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
3,966,088

 
$
15,087

 
$
12,967

 
$
28,054

 
$
3,994,142

 
 
$
37,981

 
$
1,096

Agricultural
 
427,702

 
2,156

 
2,362

 
4,518

 
432,220

 
 
2,104

 
316

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,767,366

 
9,640

 
5,751

 
15,391

 
1,782,757

 
 
6,685

 
490

Multi-family
 
691,698

 
3,729

 
3,184

 
6,913

 
698,611

 
 
3,184

 
—

Construction
 
628,976

 
3,595

 
208

 
3,803

 
632,779

 
 
208

 
—

Other commercial real estate
 
1,339,926

 
5,755

 
3,150

 
8,905

 
1,348,831

 
 
4,578

 
288

Total commercial real estate
 
4,427,966

 
22,719

 
12,293

 
35,012

 
4,462,978

 
 
14,655

 
778

Total corporate loans
 
8,821,756

 
39,962

 
27,622

 
67,584

 
8,889,340

 
 
54,740

 
2,190

Home equity
 
848,843

 
2,995

 
2,049

 
5,044

 
853,887

 
 
5,739

 
9

1-4 family mortgages
 
885,556

 
1,287

 
1,954

 
3,241

 
888,797

 
 
4,287

 
41

Installment
 
414,078

 
3,737

 
709

 
4,446

 
418,524

 
 
—

 
709

Total consumer loans
 
2,148,477

 
8,019

 
4,712

 
12,731

 
2,161,208

 
 
10,026

 
759

Total loans
 
$
10,970,233

 
$
47,981

 
$
32,334

 
$
80,315

 
$
11,050,548

 
 
$
64,766

 
$
2,949

As of December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
3,490,783

 
$
34,620

 
$
4,511

 
$
39,131

 
$
3,529,914

 
 
$
40,580

 
$
1,830

Agricultural
 
430,221

 
280

 
385

 
665

 
430,886

 
 
219

 
177

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,970,564

 
3,156

 
6,100

 
9,256

 
1,979,820

 
 
11,560

 
345

Multi-family
 
672,098

 
3,117

 
248

 
3,365

 
675,463

 
 
377

 
20

Construction
 
539,043

 
198

 
579

 
777

 
539,820

 
 
209

 
371

Other commercial real estate
 
1,353,263

 
2,545

 
2,707

 
5,252

 
1,358,515

 
 
3,621

 
317

Total commercial real estate
 
4,534,968

 
9,016

 
9,634

 
18,650

 
4,553,618

 
 
15,767

 
1,053

Total corporate loans
 
8,455,972

 
43,916

 
14,530

 
58,446

 
8,514,418

 
 
56,566

 
3,060

Home equity
 
820,099

 
4,102

 
2,854

 
6,956

 
827,055

 
 
5,946

 
98

1-4 family mortgages
 
770,120

 
2,145

 
2,092

 
4,237

 
774,357

 
 
4,412

 
—

Installment
 
319,178

 
2,407

 
397

 
2,804

 
321,982

 
 
—

 
397

Total consumer loans
 
1,909,397

 
8,654

 
5,343

 
13,997

 
1,923,394

 
 
10,358

 
495

Total loans
 
$
10,365,369

 
$
52,570

 
$
19,873

 
$
72,443

 
$
10,437,812

 
 
$
66,924

 
$
3,555


(1) 
PCI loans with an accretable yield are considered current.
(2) 
Includes PCI loans of $688,000 and $763,000 as of September 30, 2018 and December 31, 2017, 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
The Company maintains an allowance for credit losses at a level deemed adequate by management to absorb estimated losses inherent in the existing loan portfolio. See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for the allowance for credit losses. A rollforward of the allowance for credit losses by portfolio segment for the quarters and nine months ended September 30, 2018 and 2017 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 September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
60,043

 
$
9,062

 
$
2,175

 
$
2,124

 
$
4,631

 
$
18,656

 
$
1,000

 
$
97,691

Charge-offs
 
(6,277
)
 
(759
)
 
(1
)
 
(1
)
 
(177
)
 
(2,049
)
 
—

 
(9,264
)
Recoveries
 
416

 
163

 
—

 
5

 
154

 
512

 
—

 
1,250

Net charge-offs
 
(5,861
)
 
(596
)
 
(1
)
 
4

 
(23
)
 
(1,537
)
 
—

 
(8,014
)
Provision for loan
  losses and other
 
6,776

 
15

 
200

 
116

 
740

 
3,401

 
—

 
11,248

Ending balance
 
$
60,958

 
$
8,481

 
$
2,374

 
$
2,244

 
$
5,348

 
$
20,520

 
$
1,000

 
$
100,925

Quarter ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
46,271

 
$
15,008

 
$
2,919

 
$
4,094

 
$
7,479

 
$
16,600

 
$
1,000

 
$
93,371

Charge-offs
 
(8,935
)
 
(14
)
 
—

 
6

 
(6
)
 
(1,617
)
 
—

 
(10,566
)
Recoveries
 
698

 
1,825

 
2

 
19

 
25

 
331

 
—

 
2,900

Net charge-offs
 
(8,237
)
 
1,811

 
2

 
25

 
19

 
(1,286
)
 
—

 
(7,666
)
Provision for loan
  losses and other
 
13,994

 
(5,129
)
 
(296
)
 
161

 
(257
)
 
1,636

 
—

 
10,109

Ending balance
 
$
52,028

 
$
11,690

 
$
2,625

 
$
4,280

 
$
7,241

 
$
16,950

 
$
1,000

 
$
95,814

Nine months ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
55,791

 
$
10,996

 
$
2,534

 
$
3,481

 
$
6,381

 
$
16,546

 
$
1,000

 
$
96,729

Charge-offs
 
(29,609
)
 
(1,525
)
 
(5
)
 
(1
)
 
(247
)
 
(6,271
)
 
—

 
(37,658
)
Recoveries
 
1,707

 
286

 
—

 
26

 
552

 
1,240

 
—

 
3,811

Net charge-offs
 
(27,902
)
 
(1,239
)
 
(5
)
 
25

 
305

 
(5,031
)
 
—

 
(33,847
)
Provision for loan
  losses and other
 
33,069

 
(1,276
)
 
(155
)
 
(1,262
)
 
(1,338
)
 
9,005

 
—

 
38,043

Ending balance
 
$
60,958

 
$
8,481

 
$
2,374

 
$
2,244

 
$
5,348

 
$
20,520

 
$
1,000

 
$
100,925

Nine months ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
40,709

 
$
17,595

 
$
3,261

 
$
3,444

 
$
7,739

 
$
13,335

 
$
1,000

 
$
87,083

Charge-offs
 
(15,966
)
 
(141
)
 
—

 
(38
)
 
(721
)
 
(4,837
)
 
—

 
(21,703
)
Recoveries
 
2,764

 
2,808

 
36

 
258

 
205

 
1,097

 
—

 
7,168

Net charge-offs
 
(13,202
)
 
2,667

 
36

 
220

 
(516
)
 
(3,740
)
 
—

 
(14,535
)
Provision for loan
  losses and other
 
24,521

 
(8,572
)
 
(672
)
 
616

 
18

 
7,355

 
—

 
23,266

Ending balance
 
$
52,028

 
$
11,690

 
$
2,625

 
$
4,280

 
$
7,241

 
$
16,950

 
$
1,000

 
$
95,814




The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of September 30, 2018 and December 31, 2017.
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 September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and
  agricultural
 
$
37,309

 
$
4,385,067

 
$
3,986

 
$
4,426,362

 
$
6,659

 
$
53,919

 
$
380

 
$
60,958

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
5,639

 
1,765,584

 
11,534

 
1,782,757

 
1,223

 
6,049

 
1,209

 
8,481

Multi-family
 
3,573

 
684,275

 
10,763

 
698,611

 
—

 
2,134

 
240

 
2,374

Construction
 
—

 
629,427

 
3,352

 
632,779

 
—

 
2,089

 
155

 
2,244

Other commercial real estate
 
2,496

 
1,290,122

 
56,213

 
1,348,831

 
22

 
4,113

 
1,213

 
5,348

Total commercial real estate
 
11,708

 
4,369,408

 
81,862

 
4,462,978

 
1,245

 
14,385

 
2,817

 
18,447

Total corporate loans
 
49,017

 
8,754,475

 
85,848

 
8,889,340

 
7,904

 
68,304

 
3,197

 
79,405

Consumer
 
—

 
2,142,112

 
19,096

 
2,161,208

 
—

 
19,003

 
1,517

 
20,520

Reserve for unfunded
  commitments
 
—

 
—

 
—

 
—

 
—

 
1,000

 
—

 
1,000

Total loans
 
$
49,017

 
$
10,896,587

 
$
104,944

 
$
11,050,548

 
$
7,904

 
$
88,307

 
$
4,714

 
$
100,925

As of December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and
  agricultural
 
$
38,718

 
$
3,909,380

 
$
12,702

 
$
3,960,800

 
$
10,074

 
$
45,293

 
$
424

 
$
55,791

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
10,810

 
1,954,435

 
14,575

 
1,979,820

 
—

 
9,333

 
1,663

 
10,996

Multi-family
 
621

 
660,771

 
14,071

 
675,463

 
—

 
2,436

 
98

 
2,534

Construction
 
—

 
530,977

 
8,843

 
539,820

 
—

 
3,331

 
150

 
3,481

Other commercial real estate
 
1,468

 
1,291,723

 
65,324

 
1,358,515

 
—

 
5,415

 
966

 
6,381

Total commercial real estate
 
12,899

 
4,437,906

 
102,813

 
4,553,618

 
—

 
20,515

 
2,877

 
23,392

Total corporate loans
 
51,617

 
8,347,286

 
115,515

 
8,514,418

 
10,074

 
65,808

 
3,301

 
79,183

Consumer
 
—

 
1,901,456

 
21,938

 
1,923,394

 
—

 
15,533

 
1,013

 
16,546

Reserve for unfunded
  commitments
 
—

 
—

 
—

 
—

 
—

 
1,000

 
—

 
1,000

Total loans
 
$
51,617

 
$
10,248,742

 
$
137,453

 
$
10,437,812

 
$
10,074

 
$
82,341

 
$
4,314

 
$
96,729


Loans Individually Evaluated for Impairment
The following table presents loans individually evaluated for impairment by class of loan as of September 30, 2018 and December 31, 2017. PCI loans are excluded from this disclosure.
Impaired Loans Individually Evaluated by Class
(Dollar amounts in thousands)
 
 
As of September 30, 2018
 
 
As of December 31, 2017
 
 
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
 
$
7,534

 
$
27,934

 
$
53,533

 
$
6,542

 
 
$
4,234

 
$
34,484

 
$
53,192

 
$
10,074

Agricultural
 
269

 
1,572

 
4,250

 
117

 
 
—

 
—

 
—

 
—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,636

 
4,003

 
6,372

 
1,223

 
 
7,154

 
3,656

 
14,246

 
—

Multi-family
 
3,573

 
—

 
3,573

 
—

 
 
621

 
—

 
621

 
—

Construction
 
—

 
—

 
—

 
—

 
 
—

 
—

 
—

 
—

Other commercial real estate
 
1,632

 
864

 
2,548

 
22

 
 
1,468

 
—

 
1,566

 
—

Total commercial real estate
 
6,841

 
4,867

 
12,493

 
1,245

 
 
9,243

 
3,656

 
16,433

 
—

Total impaired loans
  individually evaluated for
  impairment
 
$
14,644

 
$
34,373

 
$
70,276

 
$
7,904

 
 
$
13,477

 
$
38,140

 
$
69,625

 
$
10,074


The following table presents the average recorded investment and interest income recognized on impaired loans by class for the quarters and nine months ended September 30, 2018 and 2017. 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 September 30,
 
 
2018
 
2017
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized(1)
 
Average
Recorded
Investment
 
Interest
Income
Recognized(1)
Commercial and industrial
 
$
28,082

 
$
123

 
$
44,682

 
$
368

Agricultural
 
2,372

 
—

 
140

 
—

Commercial real estate:
 
 
 
 
 
 
 
 

Office, retail, and industrial
 
6,641

 
105

 
12,496

 
—

Multi-family
 
3,757

 
11

 
396

 
—

Construction
 
—

 
—

 
—

 
—

Other commercial real estate
 
2,831

 
68

 
1,415

 
—

Total commercial real estate
 
13,229

 
184

 
14,307

 
—

Total impaired loans
 
$
43,683

 
$
307

 
$
59,129

 
$
368

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
 
2018
 
2017
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized(1)
 
Average
Recorded
Investment
 
Interest
Income
Recognized(1)
Commercial and industrial
 
$
34,440

 
$
159

 
$
32,765

 
$
924

Agricultural
 
2,153

 
25

 
348

 
—

Commercial real estate:
 
 
 
 
 
 
 
 

Office, retail, and industrial
 
8,867

 
873

 
13,680

 
262

Multi-family
 
2,132

 
66

 
396

 
28

Construction
 
—

 
—

 
9

 
136

Other commercial real estate
 
2,338

 
181

 
1,652

 
20

Total commercial real estate
 
13,337

 
1,120

 
15,737

 
446

Total impaired loans
 
$
49,930

 
$
1,304

 
$
48,850

 
$
1,370

(1) 
Recorded using the cash basis of accounting.
Credit Quality Indicators
Corporate loans and commitments are assessed for credit risk and assigned ratings based on various characteristics, such as the borrower's cash flow, leverage, and collateral. Ratings for commercial credits are reviewed periodically. The following tables present credit quality indicators by class for corporate and consumer loans, as of September 30, 2018 and December 31, 2017.
Corporate Credit Quality Indicators by Class
(Dollar amounts in thousands)
 
 
Pass
 
Special
 Mention(1)(4)
 
Substandard(2)(4)
 
Non-accrual(3)
 
Total
As of September 30, 2018
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
3,797,606

 
$
134,184

 
$
24,371

 
$
37,981

 
$
3,994,142

Agricultural
 
411,559

 
7,591

 
10,966

 
2,104

 
432,220

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,721,711

 
19,972

 
34,389

 
6,685

 
1,782,757

Multi-family
 
683,199

 
10,139

 
2,089

 
3,184

 
698,611

Construction
 
601,942

 
23,477

 
7,152

 
208

 
632,779

Other commercial real estate
 
1,277,662

 
48,845

 
17,746

 
4,578

 
1,348,831

Total commercial real estate
 
4,284,514

 
102,433

 
61,376

 
14,655

 
4,462,978

Total corporate loans
 
$
8,493,679

 
$
244,208

 
$
96,713

 
$
54,740

 
$
8,889,340

As of December 31, 2017
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
3,388,133

 
$
70,863

 
$
30,338

 
$
40,580

 
$
3,529,914

Agricultural
 
413,946

 
10,989

 
5,732

 
219

 
430,886

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,903,737

 
25,546

 
38,977

 
11,560

 
1,979,820

Multi-family
 
665,496

 
7,395

 
2,195

 
377

 
675,463

Construction
 
521,911

 
10,184

 
7,516

 
209

 
539,820

Other commercial real estate
 
1,304,337

 
29,624

 
20,933

 
3,621

 
1,358,515

Total commercial real estate
 
4,395,481

 
72,749

 
69,621

 
15,767

 
4,553,618

Total corporate loans
 
$
8,197,560

 
$
154,601

 
$
105,691

 
$
56,566

 
$
8,514,418

(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 $639,000 as of September 30, 2018 and $657,000 as of December 31, 2017.
Consumer Credit Quality Indicators by Class
(Dollar amounts in thousands)
 
 
Performing
 
Non-accrual
 
Total
As of September 30, 2018
 
 
 
 
 
 
Home equity
 
$
848,148

 
$
5,739

 
$
853,887

1-4 family mortgages
 
884,510

 
4,287

 
888,797

Installment
 
418,524

 
—

 
418,524

Total consumer loans
 
$
2,151,182

 
$
10,026

 
$
2,161,208

As of December 31, 2017
 
 
 
 
 
 
Home equity
 
$
821,109

 
$
5,946

 
$
827,055

1-4 family mortgages
 
769,945

 
4,412

 
774,357

Installment
 
321,982

 
—

 
321,982

Total consumer loans
 
$
1,913,036

 
$
10,358

 
$
1,923,394


TDRs
TDRs are generally performed at the request of the individual borrower and may include forgiveness of principal, reduction in interest rates, changes in payments, and maturity date extensions. The table below presents TDRs by class as of September 30, 2018 and December 31, 2017. See Note 1, "Summary of Significant Accounting Policies," for the accounting policy for TDRs.
TDRs by Class
(Dollar amounts in thousands)
 
 
As of September 30, 2018
 
As of December 31, 2017
 
 
Accruing
 
Non-accrual(1)
 
Total
 
Accruing
 
Non-accrual(1)
 
Total
Commercial and industrial
 
$
250

 
$
5,603

 
$
5,853

 
$
264

 
$
18,959

 
$
19,223

Agricultural
 
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
—

 
—

 
—

 
—

 
4,236

 
4,236

Multi-family
 
563

 
—

 
563

 
574

 
149

 
723

Construction
 
—

 
—

 
—

 
—

 
—

 
—

Other commercial real estate
 
184

 
—

 
184

 
192

 
—

 
192

Total commercial real estate
 
747

 
—

 
747

 
766

 
4,385

 
5,151

Total corporate loans
 
997

 
5,603

 
6,600

 
1,030

 
23,344

 
24,374

Home equity
 
83

 
352

 
435

 
86

 
738

 
824

1-4 family mortgages
 
661

 
410

 
1,071

 
680

 
451

 
1,131

Installment
 
—

 
—

 
—

 
—

 
—

 
—

Total consumer loans
 
744

 
762

 
1,506

 
766

 
1,189

 
1,955

Total loans
 
$
1,741

 
$
6,365

 
$
8,106

 
$
1,796

 
$
24,533

 
$
26,329

(1) 
These TDRs are included in non-accrual loans in the preceding tables.
TDRs are included in the calculation of the allowance for credit losses in the same manner as impaired loans. As of September 30, 2018 and December 31, 2017, respectively, there were no specific reserves and $2.0 million in specific reserves related to TDRs.
There were no material restructurings during the quarter and nine months ended September 30, 2018. The following table presents a summary of loans that were restructured during the quarter and nine months ended September 30, 2017.
Loans Restructured During the Period
(Dollar amounts in thousands)
 
 
Number
of
Loans
 
Pre-
Modification
Recorded
Investment
 
Funds
Disbursed
 
Interest
and Escrow
Capitalized
 
Charge-offs
 
Post-
Modification
Recorded
Investment
Quarter ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
10

 
$
25,811

 
$
196

 
$
—

 
$
1,736

 
$
24,271

Office, retail, and industrial
 
2

 
3,656

 
—

 
—

 
—

 
3,656

Total TDRs restructured during the period
 
12

 
$
29,467

 
$
196

 
$
—

 
$
1,736

 
$
27,927

Nine months ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
12

 
$
26,733

 
$
196

 
$
—

 
$
1,736

 
$
25,193

Office, retail, and industrial
 
2

 
3,656

 
—

 
—

 
—

 
3,656

Total TDRs restructured during the period
 
14

 
$
30,389

 
$
196

 
$
—

 
$
1,736

 
$
28,849


Accruing TDRs that do not perform in accordance with their modified terms are transferred to non-accrual. There were no material TDRs that defaulted within twelve months of the restructure date during the quarters and nine months ended September 30, 2018 and 2017.
A rollforward of the carrying value of TDRs for the quarters and nine months ended September 30, 2018 and 2017 is presented in the following table.
TDR Rollforward
(Dollar amounts in thousands)
 
 
Quarters Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
 
2018
 
2017
 
2018
 
2017
Accruing
 
 
 
 
 
 
 
 
Beginning balance
 
$
1,760

 
$
2,029

 
$
1,796

 
$
2,291

Additions
 
—

 
14,897

 
—

 
15,819

Net payments
 
(19
)
 
(1,798
)
 
(55
)
 
(1,905
)
Net transfers to non-accrual
 
—

 
(13,315
)
 
—

 
(14,392
)
Ending balance
 
1,741

 
1,813

 
1,741

 
1,813

Non-accrual
 
 
 
 
 
 
 
 
Beginning balance
 
8,238

 
3,036

 
24,533

 
6,297

Additions
 
—

 
14,570

 
355

 
14,570

Net payments
 
(1,620
)
 
(127
)
 
(14,598
)
 
(4,352
)
Charge-offs
 
(253
)
 
(2,132
)
 
(3,925
)
 
(2,245
)
Net transfers from accruing
 
—

 
13,315

 
—

 
14,392

Ending balance
 
6,365

 
28,662

 
6,365

 
28,662

Total TDRs
 
$
8,106

 
$
30,475

 
$
8,106

 
$
30,475


For TDRs to be removed from TDR status in the calendar year after the restructuring, the loans must (i) have an interest rate and terms that reflect market conditions at the time of restructuring, and (ii) be in compliance with the modified terms. Loans that were not restructured at market rates and terms, that are not in compliance with the modified terms, or for which there is a concern about the future ability of the borrower to meet its obligations under the modified terms, continue to be separately reported as restructured until paid in full or charged-off.
There were no material commitments to lend additional funds to borrowers with TDRs as of September 30, 2018 or December 31, 2017.