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Loans and Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2016
Loans and Leases Receivable Disclosure [Abstract]  
Outstanding Balances of Loan
The following table provides outstanding balances related to each of our loan types as of December 31:
 
2016
 
2015
 
Originated Loans
 
Acquired Loans
 
Total Loans
 
Total Loans
 
(dollars in thousands)
Commercial, financial, agricultural and other
$
1,131,148

 
$
8,399

 
$
1,139,547

 
$
1,150,906

Real estate construction
217,840

 
1,781

 
219,621

 
220,736

Residential real estate
1,165,851

 
63,341

 
1,229,192

 
1,224,465

Commercial real estate
1,717,043

 
25,167

 
1,742,210

 
1,479,000

Loans to individuals
546,589

 
2,188

 
548,777

 
608,643

Total loans
$
4,778,471

 
$
100,876

 
$
4,879,347

 
$
4,683,750
Credit Risk Profile by Creditworthiness
The following tables represent our credit risk profile by creditworthiness category for the years ended December 31:
 
2016
 
Commercial, financial, agricultural and other
 
Real estate construction
 
Residential real estate
 
Commercial real estate
 
Loans to individuals
 
Total
 
(dollars in thousands)
Originated loans
 
 
 
 
 
 
 
 
 
 
 
Pass
$
1,038,844

 
$
217,565

 
$
1,152,511

 
$
1,691,220

 
$
546,316

 
$
4,646,456

Non-Pass
 
 
 
 
 
 
 
 
 
 
 
OAEM
27,387

 
275

 
5,923

 
7,596

 
—

 
41,181

Substandard
64,917

 
—

 
7,417

 
18,227

 
273

 
90,834

Doubtful
—

 
—

 
—

 
—

 
—

 
—

Total Non-Pass
92,304

 
275

 
13,340

 
25,823

 
273

 
132,015

Total
$
1,131,148

 
$
217,840

 
$
1,165,851

 
$
1,717,043

 
$
546,589

 
$
4,778,471

 
 
 
 
 
 
 
 
 
 
 
 
Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
Pass
$
7,591

 
$
1,781

 
$
62,919

 
$
24,043

 
$
2,185

 
$
98,519

Non-Pass
 
 
 
 
 
 
 
 
 
 
 
OAEM
486

 
—

 
—

 
—

 
—

 
486

Substandard
322

 
—

 
422

 
1,124

 
3

 
1,871

Doubtful
—

 
—

 
—

 
—

 
—

 
—

Total Non-Pass
808

 
—

 
422

 
1,124

 
3

 
2,357

Total
$
8,399

 
$
1,781

 
$
63,341

 
$
25,167

 
$
2,188

 
$
100,876

 
2015
 
Commercial, financial, agricultural and other
 
Real estate construction
 
Residential real estate
 
Commercial real estate
 
Loans to individuals
 
Total
 
(dollars in thousands)
Pass
$
1,074,858

 
$
220,267

 
$
1,209,606

 
$
1,436,714

 
$
608,342

 
$
4,549,787

Non-Pass
 
 
 
 
 
 
 
 
 
 
 
OAEM
11,825

 
442

 
5,244

 
30,012

 
—

 
47,523

Substandard
64,223

 
27

 
9,615

 
12,274

 
301

 
86,440

Doubtful
—

 
—

 
—

 
—

 
—

 
—

Total Non-Pass
76,048

 
469

 
14,859

 
42,286

 
301

 
133,963

Total
$
1,150,906

 
$
220,736

 
$
1,224,465

 
$
1,479,000

 
$
608,643

 
$
4,683,750
Age Analysis of Past Due Loans by Segment
The following tables delineate the aging analysis of the recorded investments in past due loans as of December 31. Also included in these tables are loans that are 90 days or more past due and still accruing because they are well-secured and in the process of collection.
 
2016
 
30 - 59
days
past due
 
60 - 89
days
past
due
 
90 days
and
greater
and still
accruing
 
Nonaccrual
 
Total past
due and
nonaccrual
 
Current
 
Total
 
(dollars in thousands)
Originated Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
2,380

 
$
171

 
$
75

 
$
17,928

 
$
20,554

 
$
1,110,594

 
$
1,131,148

Real estate construction
183

 
—

 
—

 
—

 
183

 
217,657

 
217,840

Residential real estate
4,133

 
1,089

 
995

 
5,792

 
12,009

 
1,153,842

 
1,165,851

Commercial real estate
265

 
327

 
57

 
3,443

 
4,092

 
1,712,951

 
1,717,043

Loans to individuals
1,640

 
776

 
970

 
273

 
3,659

 
542,930

 
546,589

Total
$
8,601

 
$
2,363

 
$
2,097

 
$
27,436

 
$
40,497

 
$
4,737,974

 
$
4,778,471

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Acquired Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
486

 
$
—

 
$
—

 
$
—

 
$
486

 
$
7,913

 
$
8,399

Real estate construction
—

 
—

 
—

 
—

 
—

 
1,781

 
1,781

Residential real estate
148

 
39

 
34

 
422

 
643

 
62,698

 
63,341

Commercial real estate
—

 
—

 
—

 
162

 
162

 
25,005

 
25,167

Loans to individuals
1

 
7

 
—

 
3

 
11

 
2,177

 
2,188

Total
$
635

 
$
46

 
$
34

 
$
587

 
$
1,302

 
$
99,574

 
$
100,876

 
2015
 
30 - 59
days
past due
 
60 - 89
days
past
due
 
90 days
and
greater
and still
accruing
 
Nonaccrual
 
Total past
due and
nonaccrual
 
Current
 
Total
 
(dollars in thousands)
Commercial, financial, agricultural and other
$
364

 
$
49

 
$
129

 
$
23,653

 
$
24,195

 
$
1,126,711

 
$
1,150,906

Real estate construction
280

 
—

 
—

 
28

 
308

 
220,428

 
220,736

Residential real estate
4,175

 
1,055

 
1,315

 
6,500

 
13,045

 
1,211,420

 
1,224,465

Commercial real estate
781

 
—

 
65

 
6,223

 
7,069

 
1,471,931

 
1,479,000

Loans to individuals
2,998

 
774

 
946

 
301

 
5,019

 
603,624

 
608,643

Total
$
8,598

 
$
1,878

 
$
2,455

 
$
36,705

 
$
49,636

 
$
4,634,114

 
$
4,683,750
Recorded Investment and Unpaid Principal Balance for Impaired Loans with Associated Allowance
The following tables include the recorded investment and unpaid principal balance for impaired loans with the associated allowance amount, if applicable, as of December 31, 2016 and 2015. Also presented are the average recorded investment in impaired loans and the related amount of interest recognized while the loan was considered impaired for the years ended December 31, 2016, 2015 and 2014. Average balances are calculated based on month-end balances of the loans for the period reported and are included in the table below based on its period end allowance position.
 
2016
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
allowance
 
Average
recorded
investment
 
Interest
Income
Recognized
 
(dollars in thousands)
Originated Loans:
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
9,549

 
$
15,369

 
 
 
$
23,146

 
$
576

Real estate construction
—

 
—

 
 
 
4

 
44

Residential real estate
10,873

 
13,004

 
 
 
10,957

 
312

Commercial real estate
5,765

 
6,905

 
 
 
6,718

 
170

Loans to individuals
382

 
507

 
 
 
409

 
15

Subtotal
26,569

 
35,785

 
 
 
41,234

 
1,117

With an allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
13,423

 
19,226

 
$
2,530

 
13,885

 
99

Real estate construction
—

 
—

 
—

 
—

 
—

Residential real estate
424

 
475

 
164

 
241

 
4

Commercial real estate
810

 
810

 
434

 
555

 
25

Loans to individuals
—

 
—

 
—

 
—

 
—

Subtotal
14,657

 
20,511

 
3,128

 
14,681

 
128

Total
$
41,226

 
$
56,296

 
$
3,128

 
$
55,915

 
$
1,245

Acquired Loans:
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
—

 
$
—

 
 
 
$
—

 
$
—

Real estate construction
—

 
—

 
 
 
—

 
—

Residential real estate
406

 
480

 
 
 
406

 
—

Commercial real estate
162

 
162

 
 
 
162

 
—

Loans to individuals
3

 
3

 
 
 
3

 
—

Subtotal
571

 
645

 
 
 
571

 
—

With an allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
—

 
—

 
$
—

 
—

 
—

Real estate construction
—

 
—

 
—

 
—

 
—

Residential real estate
16

 
16

 
16

 
16

 
—

Commercial real estate
—

 
—

 
—

 
—

 
—

Loans to individuals
—

 
—

 
—

 
—

 
—

Subtotal
16

 
16

 
16

 
16

 
—

Total
$
587

 
$
661

 
$
16

 
$
587

 
$
—

 
2015
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
allowance
 
Average
recorded
investment
 
Interest
Income
Recognized
 
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
$
11,344

 
$
15,673

 
 
 
$
17,692

 
$
216

Real estate construction
28

 
117

 
 
 
95

 
—

Residential real estate
9,952

 
11,819

 
 
 
10,635

 
172

Commercial real estate
7,562

 
9,449

 
 
 
7,890

 
90

Loans to individuals
421

 
507

 
 
 
338

 
4

Subtotal
29,307

 
37,565

 
 
 
36,650

 
482

With an allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural and other
20,132

 
22,590

 
$
6,952

 
7,731

 
129

Real estate construction
—

 
—

 
—

 
—

 
—

Residential real estate
461

 
672

 
51

 
403

 
—

Commercial real estate
944

 
1,008

 
42

 
674

 
4

Loans to individuals
—

 
—

 
—

 
—

 
—

Subtotal
21,537

 
24,270

 
7,045

 
8,808

 
133

Total
$
50,844

 
$
61,835

 
$
7,045

 
$
45,458

 
$
615

 
2014
 
Average
recorded
investment
 
Interest
Income
Recognized
 
(dollars in thousands)
With no related allowance recorded:
 
 
 
Commercial, financial, agricultural and other
$
11,536

 
$
133

Real estate construction
1,190

 
19

Residential real estate
11,592

 
210

Commercial real estate
8,830

 
98

Loans to individuals
308

 
4

Subtotal
33,456

 
464

With an allowance recorded:
 
 
 
Commercial, financial, agricultural and other
15,797

 
143

Real estate construction
—

 
—

Residential real estate
357

 
14

Commercial real estate
184

 
4

Loans to individuals
—

 
—

Subtotal
16,338

 
161

Total
$
49,794

 
$
625
Troubled Debt Restructured Loans and Commitments
The following table provides information related to restructured loans that were considered to be in default during the year ending December 31:
 
2016
 
2015
 
2014
 
Number of
Contracts
 
Recorded
Investment
 
Number of
Contracts
 
Recorded
Investment
 
Number of
Contracts
 
Recorded
Investment
 
(dollars in thousands)
Residential real estate
4

 
$
313

 
3

 
$
97

 
2

 
$
7

Commercial real estate
—

 
—

 
—

 
—

 
1

 
6

Total
4

 
$
313

 
3

 
$
97

 
3

 
$
13

The following table provides detail as to the total troubled debt restructured loans and total commitments outstanding on troubled debt restructured loans as of December 31:
 
2016
 
2015
 
2014
 
(dollars in thousands)
Troubled debt restructured loans
 
 
 
 
 
Accrual status
$
13,790

 
$
14,139

 
$
12,584

Nonaccrual status
11,569

 
12,360

 
16,952

Total
$
25,359

 
$
26,499

 
$
29,536

Commitments
 
 
 
 
 
Unused lines of credit
358

 
3,252

 
4,120
Troubled Debt Restructurings is 90 Days or More Past Due
he following tables provide detail, including specific reserve and reasons for modification, related to loans identified as troubled debt restructurings during the years ending December 31:
 
2016
 
 
 
Type of Modification
 
 
 
 
 
 
 
Number
of
Contracts
 
Extend
Maturity
 
Modify
Rate
 
Modify
Payments
 
Total
Pre-Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
Specific
Reserve
 
(dollars in thousands)
Commercial, financial, agricultural and other
5

 
$
23

 
$
6,318

 
$
3,854

 
$
10,195

 
$
6,210

 
$
317

Residential real estate
39

 
107

 
214

 
2,619

 
2,940

 
2,698

 
124

Commercial real estate
8

 
1,368

 
—

 
25

 
1,393

 
1,271

 
59

Loans to individuals
13

 
23

 
82

 
25

 
130

 
96

 
—

Total
65

 
$
1,521

 
$
6,614

 
$
6,523

 
$
14,658

 
$
10,275

 
$
500

 
 
2015
 
 
 
Type of Modification
 
 
 
 
 
 
 
Number
of
Contracts
 
Extend
Maturity
 
Modify
Rate
 
Modify
Payments
 
Total
Pre-Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
Specific
Reserve
 
(dollars in thousands)
Commercial, financial, agricultural and other
12

 
$
1,751

 
$
3,195

 
$
4,527

 
$
9,473

 
$
8,823

 
$
1,330

Residential real estate
32

 
—

 
296

 
1,414

 
1,710

 
1,575

 
2

Commercial real estate
1

 
—

 
—

 
464

 
464

 
389

 
—

Loans to individuals
16

 
3

 
167

 
35

 
205

 
169

 
—

Total
61

 
$
1,754

 
$
3,658

 
$
6,440

 
$
11,852

 
$
10,956

 
$
1,332

 
2014
 
 
 
Type of Modification
 
 
 
 
 
 
 
Number
of
Contracts
 
Extend
Maturity
 
Modify
Rate
 
Modify
Payments
 
Total
Pre-Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
Specific
Reserve
 
(dollars in thousands)
Commercial, financial, agricultural and other
9

 
$
5,487

 
$
—

 
$
14,529

 
$
20,016

 
$
13,785

 
$
4,665

Residential real estate
52

 
—

 
629

 
1,797

 
2,426

 
2,062

 
—

Commercial real estate
1

 
—

 
—

 
8

 
8

 
6

 
—

Loans to individuals
15

 
—

 
103

 
47

 
150

 
114

 
—

Total
77

 
$
5,487

 
$
732

 
$
16,381

 
$
22,600

 
$
15,967

 
$
4,665
Allowance for Credit Losses
The following tables provide detail related to the allowance for credit losses for the years ended December 31.
 
2016
 
Commercial,
financial,
agricultural
and other
 
Real estate
construction
 
Residential
real estate
 
Commercial
real estate
 
Loans to
individuals
 
Total
 
(dollars in thousands)
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance on Originated Loans
$
31,035

 
$
887

 
$
2,606

 
$
11,924

 
$
4,360

 
$
50,812

Charge-offs
(19,603
)
 
—

 
(1,189
)
 
(570
)
 
(4,943
)
 
(26,305
)
Recoveries
4,164

 
562

 
481

 
1,522

 
469

 
7,198

Provision (credit)
20,378

 
(872
)
 
594

 
(6,257
)
 
4,618

 
18,461

Ending Balance on Originated Loans
35,974

 
577

 
2,492

 
6,619

 
4,504

 
50,166

Ending Balance on Acquired Loans (1)
—

 
—

 
19

 
—

 
—

 
19

Total Ending Balance
$
35,974

 
$
577

 
$
2,511

 
$
6,619

 
$
4,504

 
$
50,185

Ending balance: individually evaluated for impairment
$
2,530

 
$
—

 
$
180

 
$
434

 
$
—

 
$
3,144

Ending balance: collectively evaluated for impairment
33,444

 
577

 
2,331

 
6,185

 
4,504

 
47,041

Loans:
 
 
 
 
 
 
 
 
 
 
 
Ending balance
1,139,547

 
219,621

 
1,229,192

 
1,742,210

 
548,777

 
4,879,347

Ending balance: individually evaluated for impairment
22,325

 
—

 
5,875

 
5,468

 
—

 
33,668

Ending balance: collectively evaluated for impairment
1,117,222

 
219,621

 
1,223,317

 
1,736,742

 
548,777

 
4,845,679

(1) Amount reflects provision expense and ending allowance balance for loans acquired in 2016 as part of the purchase of FirstMerit branches.
 
2015
 
Commercial,
financial,
agricultural
and other
 
Real estate
construction
 
Residential
real estate
 
Commercial
real estate
 
Loans to
individuals
 
Total
 
(dollars in thousands)
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
$
29,627

 
$
2,063

 
$
3,664

 
$
11,881

 
$
4,816

 
$
52,051

Charge-offs
(11,429
)
 
(8
)
 
(1,539
)
 
(1,538
)
 
(4,354
)
 
(18,868
)
Recoveries
1,097

 
84

 
587

 
229

 
684

 
2,681

Provision (credit)
11,740

 
(1,252
)
 
(106
)
 
1,352

 
3,214

 
14,948

Ending Balance
$
31,035

 
$
887

 
$
2,606

 
$
11,924

 
$
4,360

 
$
50,812

Ending balance: individually evaluated for impairment
$
6,952

 
$
—

 
$
51

 
$
42

 
$
—

 
$
7,045

Ending balance: collectively evaluated for impairment
24,083

 
887

 
2,555

 
11,882

 
4,360

 
43,767

Loans:
 
 
 
 
 
 
 
 
 
 
 
Ending balance
1,150,906

 
220,736

 
1,224,465

 
1,479,000

 
608,643

 
4,683,750

Ending balance: individually evaluated for impairment
30,767

 
—

 
6,099

 
7,143

 
—

 
44,009

Ending balance: collectively evaluated for impairment
1,120,139

 
220,736

 
1,218,366

 
1,471,857

 
608,643

 
4,639,741

 
2014
 
Commercial,
financial,
agricultural
and other
 
Real estate
construction
 
Residential
real estate
 
Commercial
real estate
 
Loans to
individuals
 
Total
 
(dollars in thousands)
Allowance for credit losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning Balance
$
22,663

 
$
6,600

 
$
7,727

 
$
11,778

 
$
5,457

 
$
54,225

Charge-offs
(8,911
)
 
(296
)
 
(3,153
)
 
(1,148
)
 
(3,964
)
 
(17,472
)
Recoveries
734

 
1,340

 
650

 
612

 
766

 
4,102

Provision (credit)
15,141

 
(5,581
)
 
(1,560
)
 
639

 
2,557

 
11,196

Ending Balance
$
29,627

 
$
2,063

 
$
3,664

 
$
11,881

 
$
4,816

 
$
52,051

Ending balance: individually evaluated for impairment
$
9,304

 
$
—

 
$
56

 
$
101

 
$
—

 
$
9,461

Ending balance: collectively evaluated for impairment
20,323

 
2,063

 
3,608

 
11,780

 
4,816

 
42,590

Loans:
 
 
 
 
 
 
 
 
 
 
 
Ending balance
1,052,109

 
120,785

 
1,226,344

 
1,405,256

 
652,814

 
4,457,308

Ending balance: individually evaluated for impairment
33,332

 
193

 
7,127

 
7,790

 
—

 
48,442

Ending balance: collectively evaluated for impairment
1,018,777

 
120,592

 
1,219,217

 
1,397,466

 
652,814

 
4,408,866