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Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRS (Tables)
 9 Months Ended
Sep. 30, 2019
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 September 30, 2019 and December 31, 2018. 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
 
90 Days or More Past Due, Still Accruing Interest
As of September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
4,537,236

 
$
20,929

 
$
12,196

 
$
33,125

 
$
4,570,361

 
 
$
26,739

 
$
1,982

Agricultural
 
404,731

 
6,966

 
6,043

 
13,009

 
417,740

 
 
6,242

 
23

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,869,816

 
7,289

 
15,772

 
23,061

 
1,892,877

 
 
26,812

 
—

Multi-family
 
813,422

 
1,870

 
2,152

 
4,022

 
817,444

 
 
2,152

 
—

Construction
 
635,270

 
1,771

 
215

 
1,986

 
637,256

 
 
152

 
63

Other commercial real estate
 
1,419,276

 
1,851

 
4,165

 
6,016

 
1,425,292

 
 
4,680

 
1,112

Total commercial real estate
 
4,737,784

 
12,781

 
22,304

 
35,085

 
4,772,869

 
 
33,796

 
1,175

Total corporate loans
 
9,679,751

 
40,676

 
40,543

 
81,219

 
9,760,970

 
 
66,777

 
3,180

Home equity
 
823,373

 
6,373

 
4,209

 
10,582

 
833,955

 
 
7,326

 
175

1-4 family mortgages
 
1,680,096

 
5,292

 
1,579

 
6,871

 
1,686,967

 
 
3,589

 
—

Installment
 
488,592

 
1,533

 
1,302

 
2,835

 
491,427

 
 
—

 
1,302

Total consumer loans
 
2,992,061

 
13,198

 
7,090

 
20,288

 
3,012,349

 
 
10,915

 
1,477

Total loans
 
$
12,671,812

 
$
53,874

 
$
47,633

 
$
101,507

 
$
12,773,319

 
 
$
77,692

 
$
4,657

As of December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
4,085,164

 
$
8,832

 
$
26,297

 
$
35,129

 
$
4,120,293

 
 
$
33,507

 
$
422

Agricultural
 
428,357

 
940

 
1,631

 
2,571

 
430,928

 
 
1,564

 
101

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,803,059

 
8,209

 
9,649

 
17,858

 
1,820,917

 
 
6,510

 
4,081

Multi-family
 
759,402

 
1,487

 
3,296

 
4,783

 
764,185

 
 
3,107

 
189

Construction
 
645,774

 
3,419

 
144

 
3,563

 
649,337

 
 
144

 
—

Other commercial real estate
 
1,353,442

 
4,921

 
3,447

 
8,368

 
1,361,810

 
 
2,854

 
2,197

Total commercial real estate
 
4,561,677

 
18,036

 
16,536

 
34,572

 
4,596,249

 
 
12,615

 
6,467

Total corporate loans
 
9,075,198

 
27,808

 
44,464

 
72,272

 
9,147,470

 
 
47,686

 
6,990

Home equity
 
843,217

 
6,285

 
2,105

 
8,390

 
851,607

 
 
5,393

 
104

1-4 family mortgages
 
1,009,925

 
4,361

 
2,895

 
7,256

 
1,017,181

 
 
3,856

 
1,147

Installment
 
428,836

 
1,648

 
41

 
1,689

 
430,525

 
 
—

 
41

Total consumer loans
 
2,281,978

 
12,294

 
5,041

 
17,335

 
2,299,313

 
 
9,249

 
1,292

Total loans
 
$
11,357,176

 
$
40,102

 
$
49,505

 
$
89,607

 
$
11,446,783

 
 
$
56,935

 
$
8,282


(1) 
PCI loans with an accretable yield are considered current.
Allowance for Credit Losses on Financing Receivables A rollforward of the allowance for credit losses by portfolio segment for the quarters and nine months ended September 30, 2019 and 2018 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, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
66,364

 
$
7,495

 
$
2,159

 
$
1,862

 
$
4,997

 
$
22,852

 
$
1,200

 
$
106,929

Charge-offs
 
(7,176
)
 
(293
)
 
—

 
—

 
(184
)
 
(3,619
)
 
—

 
(11,272
)
Recoveries
 
1,205

 
74

 
38

 
2

 
227

 
527

 
—

 
2,073

Net charge-offs
 
(5,971
)
 
(219
)
 
38

 
2

 
43

 
(3,092
)
 
—

 
(9,199
)
Provision for loan
  losses and other
 
5,002

 
65

 
565

 
(98
)
 
1,188

 
5,776

 
—

 
12,498

Ending balance
 
$
65,395

 
$
7,341

 
$
2,762

 
$
1,766

 
$
6,228

 
$
25,536

 
$
1,200

 
$
110,228

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

Nine Months Ended September 30, 2019
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
63,276

 
$
7,900

 
$
2,464

 
$
2,173

 
$
4,934

 
$
21,472

 
$
1,200

 
$
103,419

Charge-offs
 
(20,143
)
 
(2,526
)
 
(340
)
 
(6
)
 
(723
)
 
(9,735
)
 
—

 
(33,473
)
Recoveries
 
3,764

 
235

 
39

 
18

 
293

 
1,500

 
—

 
5,849

Net charge-offs
 
(16,379
)
 
(2,291
)
 
(301
)
 
12

 
(430
)
 
(8,235
)
 
—

 
(27,624
)
Provision for loan
  losses and other
 
18,498

 
1,732

 
599

 
(419
)
 
1,724

 
12,299

 
—

 
34,433

Ending balance
 
$
65,395

 
$
7,341

 
$
2,762

 
$
1,766

 
$
6,228

 
$
25,536

 
$
1,200

 
$
110,228

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
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 September 30, 2019 and December 31, 2018.
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, 2019
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and
  agricultural
 
$
31,169

 
$
4,907,442

 
$
49,490

 
$
4,988,101

 
$
2,556

 
$
62,465

 
$
374

 
$
65,395

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
26,255

 
1,841,712

 
24,910

 
1,892,877

 
522

 
6,696

 
123

 
7,341

Multi-family
 
1,995

 
809,711

 
5,738

 
817,444

 
—

 
2,666

 
96

 
2,762

Construction
 
123

 
623,689

 
13,444

 
637,256

 
—

 
1,765

 
1

 
1,766

Other commercial real estate
 
3,657

 
1,372,354

 
49,281

 
1,425,292

 
95

 
4,579

 
1,554

 
6,228

Total commercial real estate
 
32,030

 
4,647,466

 
93,373

 
4,772,869

 
617

 
15,706

 
1,774

 
18,097

Total corporate loans
 
63,199

 
9,554,908

 
142,863

 
9,760,970

 
3,173

 
78,171

 
2,148

 
83,492

Consumer
 
—

 
2,989,386

 
22,963

 
3,012,349

 
—

 
24,460

 
1,076

 
25,536

Reserve for unfunded
  commitments
 
—

 
—

 
—

 
—

 
—

 
1,200

 
—

 
1,200

Total loans
 
$
63,199

 
$
12,544,294

 
$
165,826

 
$
12,773,319

 
$
3,173

 
$
103,831

 
$
3,224

 
$
110,228

As of December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial, and
  agricultural
 
$
32,415

 
$
4,514,349

 
$
4,457

 
$
4,551,221

 
$
3,961

 
$
58,947

 
$
368

 
$
63,276

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
5,057

 
1,799,304

 
16,556

 
1,820,917

 
748

 
5,984

 
1,168

 
7,900

Multi-family
 
3,492

 
747,030

 
13,663

 
764,185

 
—

 
2,154

 
310

 
2,464

Construction
 
—

 
644,499

 
4,838

 
649,337

 
—

 
2,019

 
154

 
2,173

Other commercial real estate
 
1,545

 
1,305,444

 
54,821

 
1,361,810

 
—

 
4,180

 
754

 
4,934

Total commercial real estate
 
10,094

 
4,496,277

 
89,878

 
4,596,249

 
748

 
14,337

 
2,386

 
17,471

Total corporate loans
 
42,509

 
9,010,626

 
94,335

 
9,147,470

 
4,709

 
73,284

 
2,754

 
80,747

Consumer
 
—

 
2,279,780

 
19,533

 
2,299,313

 
—

 
20,094

 
1,378

 
21,472

Reserve for unfunded
  commitments
 
—

 
—

 
—

 
—

 
—

 
1,200

 
—

 
1,200

Total loans
 
$
42,509

 
$
11,290,406

 
$
113,868

 
$
11,446,783

 
$
4,709

 
$
94,578

 
$
4,132

 
$
103,419
Impaired Financing Receivables
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, 2019 and 2018. 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,
 
 
2019
 
2018
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized(1)
 
Average
Recorded
Investment
 
Interest
Income
Recognized(1)
Commercial and industrial
 
$
21,111

 
$
74

 
$
28,082

 
$
123

Agricultural
 
6,249

 
9

 
2,372

 
—

Commercial real estate:
 
 
 
 
 
 
 
 

Office, retail, and industrial
 
20,773

 
2

 
6,641

 
105

Multi-family
 
3,578

 
48

 
3,757

 
11

Construction
 
123

 
—

 
—

 
—

Other commercial real estate
 
3,496

 
42

 
2,831

 
68

Total commercial real estate
 
27,970

 
92

 
13,229

 
184

Total impaired loans
 
$
55,330

 
$
175

 
$
43,683

 
$
307

 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30,
 
 
2019
 
2018
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized(1)
 
Average
Recorded
Investment
 
Interest
Income
Recognized(1)
Commercial and industrial
 
$
26,275

 
$
100

 
$
34,440

 
$
159

Agricultural
 
4,032

 
20

 
2,153

 
25

Commercial real estate:
 
 
 
 
 
 
 
 

Office, retail, and industrial
 
15,611

 
6

 
8,867

 
873

Multi-family
 
3,456

 
48

 
2,132

 
66

Construction
 
62

 
—

 
—

 
—

Other commercial real estate
 
2,517

 
84

 
2,338

 
181

Total commercial real estate
 
21,646

 
138

 
13,337

 
1,120

Total impaired loans
 
$
51,953

 
$
258

 
$
49,930

 
$
1,304

(1) 
Recorded using the cash basis of accounting.
The following table presents loans individually evaluated for impairment by class of loan as of September 30, 2019 and December 31, 2018. PCI loans are excluded from this disclosure.
Impaired Loans Individually Evaluated by Class
(Dollar amounts in thousands)
 
 
As of September 30, 2019
 
 
As of December 31, 2018
 
 
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
 
$
10,600

 
$
14,540

 
$
50,231

 
$
1,636

 
 
$
7,550

 
$
23,349

 
$
49,102

 
$
3,960

Agricultural
 
1,905

 
4,124

 
9,566

 
920

 
 
1,318

 
198

 
3,997

 
1

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
16,440

 
9,815

 
38,296

 
522

 
 
1,861

 
3,196

 
6,141

 
748

Multi-family
 
1,995

 
—

 
1,995

 
—

 
 
3,492

 
—

 
3,492

 
—

Construction
 
123

 
—

 
123

 
—

 
 
—

 
—

 
—

 
—

Other commercial real estate
 
2,562

 
1,095

 
4,008

 
95

 
 
1,545

 
—

 
1,612

 
—

Total commercial real estate
 
21,120

 
10,910

 
44,422

 
617

 
 
6,898

 
3,196

 
11,245

 
748

Total impaired loans
  individually evaluated for
  impairment
 
$
33,625

 
$
29,574

 
$
104,219

 
$
3,173

 
 
$
15,766

 
$
26,743

 
$
64,344

 
$
4,709
Financing Receivable Credit Quality Indicators
Consumer Credit Quality Indicators by Class
(Dollar amounts in thousands)
 
 
Performing
 
Non-accrual
 
Total
As of September 30, 2019
 
 
 
 
 
 
Home equity
 
$
826,629

 
$
7,326

 
$
833,955

1-4 family mortgages
 
1,683,378

 
3,589

 
1,686,967

Installment
 
491,427

 
—

 
491,427

Total consumer loans
 
$
3,001,434

 
$
10,915

 
$
3,012,349

As of December 31, 2018
 
 
 
 
 
 
Home equity
 
$
846,214

 
$
5,393

 
$
851,607

1-4 family mortgages
 
1,013,325

 
3,856

 
1,017,181

Installment
 
430,525

 
—

 
430,525

Total consumer loans
 
$
2,290,064

 
$
9,249

 
$
2,299,313


The following tables present credit quality indicators by class for corporate and consumer loans, as of September 30, 2019 and December 31, 2018.
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, 2019
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
4,404,464

 
$
63,434

 
$
75,724

 
$
26,739

 
$
4,570,361

Agricultural
 
373,757

 
22,495

 
15,246

 
6,242

 
417,740

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,793,811

 
41,332

 
30,922

 
26,812

 
1,892,877

Multi-family
 
799,218

 
10,068

 
6,006

 
2,152

 
817,444

Construction
 
612,810

 
14,147

 
10,147

 
152

 
637,256

Other commercial real estate
 
1,352,801

 
33,893

 
33,918

 
4,680

 
1,425,292

Total commercial real estate
 
4,558,640

 
99,440

 
80,993

 
33,796

 
4,772,869

Total corporate loans
 
$
9,336,861

 
$
185,369

 
$
171,963

 
$
66,777

 
$
9,760,970

As of December 31, 2018
 
 
 
 
 
 
 
 
 
 
Commercial and industrial
 
$
3,952,066

 
$
74,878

 
$
59,842

 
$
33,507

 
$
4,120,293

Agricultural
 
407,542

 
10,070

 
11,752

 
1,564

 
430,928

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
1,735,426

 
35,853

 
43,128

 
6,510

 
1,820,917

Multi-family
 
745,131

 
9,273

 
6,674

 
3,107

 
764,185

Construction
 
624,446

 
16,370

 
8,377

 
144

 
649,337

Other commercial real estate
 
1,294,128

 
47,736

 
17,092

 
2,854

 
1,361,810

Total commercial real estate
 
4,399,131

 
109,232

 
75,271

 
12,615

 
4,596,249

Total corporate loans
 
$
8,758,739

 
$
194,180

 
$
146,865

 
$
47,686

 
$
9,147,470

(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 $232,000 as of September 30, 2019 and $630,000 as of December 31, 2018.
Troubled Debt Restructuring Activity Rollforward The table below presents TDRs by class as of September 30, 2019 and December 31, 2018. 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, 2019
 
As of December 31, 2018
 
 
Accruing
 
Non-accrual(1)
 
Total
 
Accruing
 
Non-accrual(1)
 
Total
Commercial and industrial
 
$
232

 
$
4,561

 
$
4,793

 
$
246

 
$
5,994

 
$
6,240

Agricultural
 
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
Office, retail, and industrial
 
—

 
—

 
—

 
—

 
—

 
—

Multi-family
 
165

 
—

 
165

 
557

 
—

 
557

Construction
 
—

 
—

 
—

 
—

 
—

 
—

Other commercial real estate
 
173

 
—

 
173

 
181

 
—

 
181

Total commercial real estate
 
338

 
—

 
338

 
738

 
—

 
738

Total corporate loans
 
570

 
4,561

 
5,131

 
984

 
5,994

 
6,978

Home equity
 
107

 
249

 
356

 
113

 
327

 
440

1-4 family mortgages
 
745

 
278

 
1,023

 
769

 
291

 
1,060

Installment
 
—

 
—

 
—

 
—

 
—

 
—

Total consumer loans
 
852

 
527

 
1,379

 
882

 
618

 
1,500

Total loans
 
$
1,422

 
$
5,088

 
$
6,510

 
$
1,866

 
$
6,612

 
$
8,478

(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 nine months ended September 30, 2019 and 2018 is presented in the following table.
TDR Rollforward
(Dollar amounts in thousands)
 
 
Quarters Ended 
 September 30,
 
Nine Months Ended 
 September 30,
 
 
2019
 
2018
 
2019
 
2018
Accruing
 
 
 
 
 
 
 
 
Beginning balance
 
$
1,441

 
$
1,760

 
$
1,866

 
$
1,796

Additions
 
—

 
—

 
12

 
—

Net payments
 
(19
)
 
(19
)
 
(73
)
 
(55
)
Net transfers to non-accrual
 
—

 
—

 
(383
)
 
—

Ending balance
 
1,422

 
1,741

 
1,422

 
1,741

Non-accrual
 
 
 
 
 
 
 
 
Beginning balance
 
7,841

 
8,238

 
6,612

 
24,533

Additions
 
—

 
—

 
—

 
355

Net payments
 
(2,753
)
 
(1,620
)
 
(1,279
)
 
(14,598
)
Charge-offs
 
—

 
(253
)
 
(628
)
 
(3,925
)
Net transfers from accruing
 
—

 
—

 
383

 
—

Ending balance
 
5,088

 
6,365

 
5,088

 
6,365

Total TDRs
 
$
6,510

 
$
8,106

 
$
6,510

 
$
8,106