Loans and the Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Loans held for sale [Table Text Block]

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

	September 30,		December 31,
	2017		2016
	(dollars in thousands)
Commercial	$	47,430	$	70,105
Commercial real estate		41,811		7,712
Residential real estate		145		188
Total carrying amount	$	89,386	$	78,005

Activity in the valuation allowance [Table Text Block]

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

	Three Months			Three Months
	Ended			Ended
	September 30,			September 30,
	2017			2016
	(dollars in thousands)
Balance at beginning of period	$	12,325		$	-
Reduction from loans paid off		(38	)
Increase in valuation allowance		3,000			-
Balance at end of period	$	15,287		$	-
	Nine Months			Nine Months
	Ended			Ended
	September 30,			September 30,
	2017			2016
	(dollars in thousands)
Balance at beginning of period	$	-		$	-
Reduction from loans paid off		(38	)
Increase in valuation allowance		15,325			-
Balance at end of period	$	15,287		$	-

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 September 30, 2017 and December 31, 2016:

	September 30,			December 31,
	2017			2016
	(dollars in thousands)
Commercial	$	641,613		$	553,576
Commercial real estate		2,585,205			2,204,710
Commercial construction		399,453			486,228
Residential real estate		264,244			232,547
Consumer		1,912			2,380
Gross loans		3,892,427			3,479,441
Net deferred loan fees		(3,138	)		(3,609	)
Total loans receivable	$	3,889,289		$	3,475,832

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

The recorded investment of those loans is as follows at September 30, 2017 and December 31, 2016.

	September 30,		December 31,
	2017		2016
	(dollars in thousands)
Commercial	$	5,243	$	7,098
Commercial real estate		232		982
Total carrying amount	$	5,475	$	8,080

Loans and Leases Receivable Purchased Loans [Table Text Block]

The following tables presents the accretable yield, or income expected to be collected, on the purchased credit-impaired loans for the following periods:

	Three Months			Three Months
	Ended			Ended
	September 30,			September 30,
	2017			2016
	(dollars in thousands)
Balance at beginning of period	$	2,496		$	3,233
Accretion of income		(180	)		(185	)
Balance at end of period	$	2,316		$	3,048
	Nine Months			Nine Months
	Ended			Ended
	September 30,			September 30,
	2017			2016
	(dollars in thousands)
Balance at beginning of period	$	2,860		$	3,599
Accretion of income		(544	)		(551	)
Balance at end of period	$	2,316		$	3,048

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:

	September 30,		December 31,
	2017		2016
	(dollars in thousands)
Commercial	$	951	$	1,460
Commercial real estate		8,369		1,081
Residential real estate		4,435		3,193
Total loans receivable on nonaccrual status	$	13,755	$	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 September 30, 2017 and December 31, 2016:

	September 30, 2017
			Special
	Pass		Mention		Substandard		Doubtful		Total
	(dollars in thousands)
Commercial	$	630,818	$	3,882	$	6,913	$	-	$	641,613
Commercial real estate		2,535,005		30,875		19,325		-		2,585,205
Commercial construction		393,625		3,239		2,589		-		399,453
Residential real estate		264,244		-		-		-		264,244
Consumer		1,912		-		-		-		1,912
Gross loans	$	3,825,604	$	37,996	$	28,827	$	-	$	3,892,427
	December 31, 2016
			Special
	Pass		Mention		Substandard		Doubtful		Total
	(dollars 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 September 30, 2017 and December 31, 2016:

	September 30, 2017
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(dollars in thousands)
Commercial	$	3,068	$	3,073
Commercial real estate		19,221		19,283
Commercial construction		4,340		4,340
Residential real estate		2,520		2,749
Consumer		46		46
Total	$	29,195	$	29,491
With an allowance recorded
Commercial real estate	$	1,640	$	2,052	$	110
Total
Commercial	$	3,068	$	3,073	$	-
Commercial real estate		20,861		21,335		110
Commercial construction		4,340		4,340		-
Residential real estate		2,520		2,749		-
Consumer		46		46		-
Total (including allowance)	$	30,835	$	31,543	$	110
	December 31, 2016
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(dollars 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 real estate	$	1,244	$	1,244	$	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 and nine months ended September 30, 2017 and 2016:

	Three Months Ended September 30,								Nine Months Ended September 30,
	2017				2016				2017				2016
	Average		Interest		Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized		Investment		Recognized		Investment		Recognized
	(dollars in thousands)
Impaired loans (no allowance)
Commercial	$	3,100	$	34	$	6,704	$	66	$	3,149	$	115	$	4,317	$	86
Commercial real estate		19,302		221		9,129		65		18,813		424		8,167		118
Commercial construction		4,285		63		1,224		21		4,273		215		979		54
Residential real estate		2,529		2		3,271		5		2,551		6		3,247		15
Consumer		48		1		70		1		54		2		74		3
Total	$	29,264	$	321	$	20,398	$	158	$	28,840	$	762	$	16,784	$	276
Impaired loans (allowance):
Commercial	$	-	$	-	$	91,393	$	925	$	-	$	-	$	85,620	$	2,447
Commercial real estate		1,645		2		153		-		1,654		39		153		-
Total	$	1,645	$	2	$	91,546	$	925	$	1,654	$	39	$	85,773	$	2,447
Total impaired loans:
Commercial	$	3,100	$	34	$	98,097	$	991	$	3,149	$	115	$	89,937	$	2,533
Commercial real estate		20,947		223		9,282		65		20,467		463		8,320		118
Commercial construction		4,285		63		1,224		21		4,273		215		979		54
Residential mortgage		2,259		2		3,271		5		2,551		6		3,247		15
Consumer		48		1		70		1		54		2		74		3
Total	$	30,909	$	323	$	111,944	$	1,083	$	30,494	$	801	$	102,557	$	2,723

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 September 30, 2017 and December 31, 2016 by segment:

Aging Analysis

	September 30, 2017
					90 Days or
					Greater Past				Total Past
	30-59 Days		60-89 Days		Due and Still				Due and
	Past Due		Past Due		Accruing		Nonaccrual		Nonaccrual		Current		Gross Loans
	(dollars in thousands)
Commercial	$	199	$	288	$	4,209	$	951	$	5,647	$	635,966	$	641,613
Commercial real estate		586		8,057		-		8,369		17,012		2,568,193		2,585,205
Commercial construction		-		-		-		-		-		399,453		399,453
Residential real estate		918		541		-		4,435		5,894		258,350		264,244
Consumer		-		2		-		-		2		1,910		1,912
Total	$	1,703	$	8,888	$	4,209	$	13,755	$	28,555	$	3,863,872	$	3,892,427
	December 31, 2016
					90 Days or
					Greater Past				Total Past
	30-59 Days		60-89 Days		Due and Still				Due and
	Past Due		Past Due		Accruing		Nonaccrual		Nonaccrual		Current		Gross Loans
	(dollars in thousands)
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		223,835		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 credit quality, and the related portion of the allowance for loan losses (“ALLL”) that are allocated to each loan portfolio segment:

	September 30, 2017
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(dollars in thousands)
ALLL
Individually evaluated for impairment	$	-	$	110	$	-	$	-	$	-	$	-	$	110
Collectively evaluated for impairment		7,716		15,224		3,940		1,052		2		326		28,260
Acquired portfolio		-		1,500		-		-		-		-		1,500
Acquired with deteriorated credit quality		-		-		-		-		-		-		-
Total ALLL	$	7,716	$	16,834	$	3,940	$	1,052	$	2	$	326	$	29,870
Gross loans
Individually evaluated for impairment	$	3,068	$	20,861	$	4,340	$	2,520	$	46			$	30,835
Collectively evaluated for impairment		618,012		2,142,385		395,113		199,902		1,410				3,356,822
Acquired portfolio		15,290		421,727		-		61,822		456				499,295
Acquired with deteriorated credit quality		5,243		232		-		-		-				5,475
Total gross loans	$	641,613	$	2,585,205	$	399,453	$	264,244	$	1,912			$	3,892,427
	December 31, 2016
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(dollars in thousands)
ALLL
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 ALLL	$	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 ALLL is as follows:

	Three Months Ended September 30, 2017
				Commercial			Commercial			Residential
	Commercial			real estate			construction			real estate			Consumer			Unallocated			Total
	(dollars in thousands)
Balance at June 30, 2017	$	7,238		$	15,389		$	4,241		$	985		$	2		$	546		$	28,401
Charge-offs		-			-			-			-			(1	)		-			(1	)
Recoveries		17			2			-			-			1			-			20
Provision for loan losses		461			1,443			(301	)		67			-			(220	)		1,450
Balance at September 30,2017	$	7,716		$	16,834		$	3,940		$	1,052		$	2		$	326		$	29,870
	Three Months Ended September 30, 2016
				Commercial			Commercial			Residential
	Commercial			real estate			construction			real estate			Consumer			Unallocated			Total
	(dollars in thousands)
Balance at June 30, 2016	$	15,548		$	11,371		$	4,040		$	1,091		$	4		$	709		$	32,763
Charge-offs		(1,878	)		-			-			(27	)		(5	)		-			(1,910	)
Recoveries		1			10			-			-			1			-			12
Provision for loan losses		6,725			(6	)		32			110			4			(115	)		6,750
Balance at September 30, 2016	$	20,396		$	11,375		$	4,072		$	1,174		$	4		$	594		$	37,615

	Nine Months Ended September 30, 2017
				Commercial			Commercial			Residential
	Commercial			real estate			construction			real estate			Consumer			Unallocated			Total
	(dollars in thousands)
Balance at December 31, 2016	$	6,632		$	12,583		$	4,789		$	958		$	3		$	779		$	25,744
Charge-offs		-			(71	)		-			-			(12	)		-			(83	)
Recoveries		158			50			-			-			1			-			209
Provision for loan losses		926			4,272			(849	)		94			10			(453	)		4,000
Balance at September 30, 2017	$	7,716		$	16,834		$	3,940		$	1,052		$	2		$	326		$	29,870
	Nine Months Ended September 30, 2016
				Commercial			Commercial			Residential
	Commercial			real estate			construction			real estate			Consumer			Unallocated			Total
	(dollars in thousands)
Balance at December 31, 2015	$	10,949		$	10,926		$	3,253		$	976		$	4		$	464		$	26,572
Charge-offs		(2,396	)		-			-			(94	)		(10	)		-			(2,500	)
Recoveries		2			35			-			3			3			-			43
Provision for loan losses		11,841			414			819			289			7			130			13,500
Balance at September 30, 2016	$	20,396		$	11,375		$	4,072		$	1,174		$	4		$	594		$	37,615

Allowance for Loan and Lease Losses [Table Text Block]

The following table presents a rollforward of TDRs and the related changes to the allowance for loan losses (“ALLL”) that occurred for the periods presented:

	Nine Months Ended					Year Ended
	September 30, 2017					December 31, 2016
	(dollars in thousands)
	Recorded					Recorded
	Investment			ALLL		Investment			ALLL
Troubled Debt Restructurings
Beginning balance	$	13,818		$	-	$	86,629		$	4,500
Additions		5,668			-		26,325			8,250
Payoffs/paydowns		(1,309	)		-		(2,616	)		-
Transfers		(580	)		-		(96,520	)		-
Other		-			-		-			(12,750	)
Ending balance	$	17,597		$	-	$	13,818		$	-

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

The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ended September 30, 2016 (dollars in thousands):

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Loans	Investment		Investment
Troubled debt restructurings:
Commercial	16	$	19,311	$	19,311
Commercial real estate	2		581		581
Commercial construction	-		-		-
Residential real estate	-		-		-
Consumer	-		-		-
Total	18	$	19,892	$	19,892