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Loans and the Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2017

The following table presents loans held-for-sale by loan segment:

	March 31,		December 31,
	2017		2016
	(in thousands)
Commercial	$	61,319	$	70,105
Commercial real estate		-		7,712
Residential real estate		936		188
Total carrying amount	$	62,255	$	78,005

Activity in the valuation allowance [Table Text Block]

Activity in the valuation allowance was as follows for the following periods:

	March 31,		December 31,
	2017		2016
	(in thousands)
Beginning balance	$	-	$	-
Increase to valuation allowance		2,600		-
Ending balance	$	2,600	$	-

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The following table sets forth the composition of the Company’s loan portfolio, including net deferred loan fees, at March 31, 2017 and December 31, 2016:

	March 31,			December 31,
	2017			2016
	(in thousands)
Commercial	$	541,690		$	553,576
Commercial real estate		2,326,834			2,204,710
Commercial construction		460,611			486,228
Residential real estate		242,883			232,547
Consumer		2,811			2,380
Gross loans		3,574,829			3,479,441
Net deferred loan fees		(3,166	)		(3,609	)
Total loans receivable	$	3,571,663		$	3,475,832

Loans and Leases Receivable Purchase Credit Impaired Loans [Table Text Block]

The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The recorded investment of those loans is as follows at March 31, 2017 and December 31, 2016.

	March 31,		December 31,
	2017		2016
	(in thousands)
Commercial	$	7,827	$	7,098
Commercial real estate		290		982
Total purchased credit-impaired loans	$	8,117	$	8,080

Loans and Leases Receivable Purchased Loans [Table Text Block]

The accretable yield, or income expected to be collected, on the purchased credit-impaired loans above is as follows for the following periods:

	Three Months			Three Months
	Ended			Ended
	March 31,			March 31,
	2017			2016
	(in thousands)
Balance at beginning of period	$	2,860		$	3,599
Accretion of income		(186	)		(739	)
Balance at end of period	$	2,674		$	2,860

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

The following tables presents nonaccrual loans included in loans receivable by loan segment as of the periods presented:

	March 31,		December 31,
	2017		2016
	(in thousands)
Commercial	$	1,208	$	1,460
Commercial real estate		7,487		1,081
Residential real estate		4,095		3,193
Total loans receivable on nonaccrual status	$	12,790	$	5,734

Financing Receivable Credit Quality Indicators [Table Text Block]

The following table presents information, excluding loans held-for-sale and net deferred loan fees, about the Company’s loan credit quality at March 31, 2017 and December 31, 2016:

	March 31, 2017
			Special
	Pass		Mention		Substandard		Doubtful		Total
	(in thousands)
Commercial	$	528,596	$	3,102	$	9,992	$	-	$	541,690
Commercial real estate		2,276,333		29,930		20,571		-		2,326,834
Commercial construction		455,446		2,670		2,495		-		460,611
Residential real estate		238,643		-		4,240		-		242,883
Consumer		2,754		-		57		-		2,811
Gross loans	$	3,501,772	$	35,702	$	37,355	$	-	$	3,574,829

	December 31, 2016
			Special
	Pass		Mention		Substandard		Doubtful		Total
	(in thousands)
Commercial	$	539,961	$	3,255	$	10,360	$	-	$	553,576
Commercial real estate		2,154,343		31,173		19,194		-		2,204,710
Commercial construction		480,319		3,388		2,521		-		486,228
Residential real estate		228,990		-		3,557		-		232,547
Consumer		2,318		-		62		-		2,380
Gross loans	$	3,405,931	$	37,816	$	35,694	$	-	$	3,479,441

Impaired Financing Receivables [Table Text Block]

The following table provides an analysis of the impaired loans by segment as of March 31, 2017 and December 31, 2016:

	March 31, 2017
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(in thousands)
Commercial	$	3,175	$	3,175
Commercial real estate		16,394		16,403
Commercial construction		4,245		4,271
Residential real estate		976		1,177
Consumer		57		57
Total	$	24,847	$	25,083

With an allowance recorded
Commercial real estate	$	780	$	1,193	$	96

Total
Commercial	$	3,175	$	3,175	$	-
Commercial real estate		17,174		17,596		96
Commercial construction		4,245		4,271		-
Residential real estate		976		1,177		-
Consumer		57		57		-
Total (including allowance)	$	25,627	$	26,276	$	96

	December 31, 2016
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(in thousands)
Commercial	$	3,637	$	4,063
Commercial real estate		18,288		18,288
Commercial construction		5,909		5,909
Residential real estate		1,851		2,055
Consumer		62		62
Total	$	29,747	$	30,377

With an allowance recorded
Commercial	$	1,244	$	1,245	$	145

Total
Commercial	$	3,637	$	4,063	$	-
Commercial real estate		19,532		19,532		145
Commercial construction		5,909		5,909		-
Residential real estate		1,851		2,055		-
Consumer		62		62		-
Total (including allowance)	$	30,991	$	31,621	$	145

Schedule of Average Balance and Interest Income Recognized on Impaired Loans [Table Text Block]

The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by segment as of and for the three ended March 31, 2017 and 2016 (in thousands):

	Three Months Ended March 31,
	2017				2016
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Impaired loans with
no related allowance
recorded

Commercial	$	2,884	$	39	$	2,591	$	24
Commercial real estate		16,450		106		15,274		25
Commercial construction		4,269		50		2,307		16
Residential real estate		986		2		4,107		5
Consumer		59		1		84		1

Total	$	24,648	$	198	$	24,363	$	71

Impaired loans with
an allowance
recorded

Commercial	$	-	$	-	$	83,759	$	737
Commercial real estate		783		5		-		-

Total	$	783	$	5	$	83,759	$	737

Total impaired loans

Commercial	$	2,884	$	39	$	86,350	$	761
Commercial real estate		17,233		111		15,274		25
Commercial construction		4,269		50		2,307		16
Residential real estate		986		2		4,107		5
Consumer		59		1		84		1

Total	$	25,431	$	203	$	108,122	$	808

Past Due Financing Receivables [Table Text Block]

The following table provides an analysis of the aging of gross loans (excluding loans held-for-sale) that are past due at March 31, 2017 and December 31, 2016 by segment:

Aging Analysis

	March 31, 2017
					90 Days or
					Greater Past				Total Past
	30-59 Days		60-89 Days		Due and Still				Due and				Total Loans
	Past Due		Past Due		Accruing		Nonaccrual		Nonaccrual		Current		Receivable
	(in thousands)
Commercial	$	-	$	-	$	5,423	$	1,208	$	6,631	$	535,059	$	541,690
Commercial real
estate		3,649		444		-		7,487		11,580		2,315,254		2,326,834
Commercial
construction		-		-		-		-		-		460,611		460,611
Residential real
estate		1,670		6		-		4,095		5,711		237,112		242,883
Consumer		9		1		-		-		10		2,801		2,811
Total	$	5,328	$	451	$	5,423	$	12,790	$	23,992	$	3,550,837	$	3,574,829

	December 31, 2016
					90 Days or
					Greater Past				Total Past
	30-59 Days		60-89 Days		Due and Still				Due and				Total Loans
	Past Due		Past Due		Accruing		Nonaccrual		Nonaccrual		Current		Receivable
Commercial	$	475	$	18	$	4,630	$	1,460	$	6,583	$	546,993	$	553,576
Commercial real
estate		4,928		1,584		663		1,081		8,256		2,196,454		2,204,710
Commercial
construction		-		-		-		-		-		486,228		486,228
Residential real
estate		2,131		388		-		3,193		5,712		226,835		232,547
Consumer		-		-		-		-		-		2,380		2,380
Total	$	7,534	$	1,990	$	5,293	$	5,734	$	20,551	$	3,458,890	$	3,479,441

Schedule of Recorded Investment in Financing Receivables [Table Text Block]

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated quality, and the related portion of the allowance for loan losses that are allocated to each loan portfolio segment:

	March 31, 2017
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(in thousands)
Allowance for loan losses
Individually evaluated for impairment	$	-	$	96	$	-	$	-	$	-	$	-	$	96
Collectively evaluated for impairment		6,667		13,472		4,574		1,008		3		531		26,255
Acquired portfolio		-		550		-		-		-		-		550
Acquired with deteriorated credit quality		-		-		-		-		-		-		-
Total allowance for loan losses	$	6,667	$	14,118	$	4,574	$	1,008	$	3	$	531	$	26,901

Gross loans
Individually evaluated for impairment	$	2,862	$	17,174	$	4,245	$	976	$	57			$	25,314
Collectively evaluated for impairment		510,263		1,806,502		455,574		175,973		2,243				2,950,555
Acquired portfolio		20,738		502,868		792		65,934		511				590,843
Acquired with deteriorated credit quality		7,827		290		-		-		-				8,117
Total gross loans	$	541,690	$	2,326,834	$	460,611	$	242,883	$	2,811			$	3,574,829

	December 31, 2016
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(in thousands)
Allowance for loan losses
Individually evaluated for impairment	$	-	$	145	$	-	$	-	$	-	$	-	$	145
Collectively evaluated for impairment		6,632		12,438		4,789		958		3		779		25,599
Acquired portfolio		-		-		-		-		-		-		-
Acquired with deteriorated credit quality		-		-		-		-		-		-		-
Total allowance for loan losses	$	6,632	$	12,583	$	4,789	$	958	$	3	$	779	$	25,744

Gross loans
Individually evaluated for impairment	$	3,637	$	19,532	$	5,909	$	1,851	$	62			$	30,991
Collectively evaluated for impairment		517,869		1,621,745		478,865		163,686		1,757				2,783,922
Acquired portfolio		24,972		562,451		1,454		67,010		561				656,448
Acquired with deteriorated credit quality		7,098		982		-		-		-				8,080
Total gross loans	$	553,576	$	2,204,710	$	486,228	$	232,547	$	2,380			$	3,479,441

Allowance for Credit Losses on Financing Receivables [Table Text Block]

A summary of the activity in the allowance for loan losses is as follows:

	Three Months Ended March 31, 2017
	Commercial			Commercial real estate			Commercial construction			Residential real estate			Consumer			Unallocated			Total
	(in thousands)
Balance at December 31,
2016	$	6,632		$	12,583		$	4,789		$	958		$	3		$	779		$	25,744

Charge-offs		-			(71	)		-			-			(1	)		-			(72	)

Recoveries		126			3			-			-			-			-			129

Provision		(91	)		1,603			(215	)		50			1			(248	)		1,100

Balance at March 31, 2017	$	6,667		$	14,118		$	4,574		$	1,008		$	3		$	531		$	26,901

	Three Months Ended March 31, 2016
	Commercial			Commercial real estate			Commercial construction			Residential real estate			Consumer			Unallocated			Total
	(in thousands)
Balance at December 31,
2015	$	10,949		$	10,926		$	3,253		$	976		$	4		$	464		$	26,572

Charge-offs		(445	)		-			-			(67	)		-			-			(512	)

Recoveries		1			13			-			-			-			-			14

Provision		2,592			2			364			165			-			(123	)		3,000

Balance at March 31, 2016	$	13,097		$	10,941		$	3,617		$	1,074		$	4		$	341		$	29,074

Allowance for Loan and Lease Losses [Table Text Block]

The following table presents a rollforward of loans modified as troubled debt restructurings and the related changes to the allowance for loan losses that occurred during the three months ended March 31, 2017 and for the year ended December 31, 2016 (dollars in thousands):

	March 31, 2017					December 31, 2016
	Recorded					Recorded
	Investment			ALLL		Investment			ALLL
Trouble Debt
Restructurings

Beginning balance	$	13,818		$	-	$	86,629		$	4,500
Additions		2,793			-		26,325			8,250
Payoffs/paydowns		(1,133	)		-		(2,616	)		-
Transfers		(580	)		-		(96,520	)		-
Other		-			-		-			(12,750	)
Ending balance		14,898			-	$	13,818		$	-

Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block]

The following table presents loans by segment modified as troubled debt restructurings that occurred during the three months ended March 31, 2017 (dollars in thousands):

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Loans	Investment		Investment
Troubled debt restructurings:
Commercial real estate	1	$	2,775	$	2,775
Residential real estate	1		18		18

Total	2	$	2,793	$	2,793

The following table presents loans by class modified as troubled debt restructurings that occurred during the three months ended March 31, 2016 (dollars in thousands):

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Loans	Investment		Investment
Troubled debt restructurings:
Commercial	9	$	9,555	$	9,555