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Loans and the Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2018

Loans held-for-sale - The following table sets forth the composition of the Company’s loans held-for-sale portfolio at June 30, 2018 and December 31, 2017:

	June 30,		December 31,
	2018		2017
	(dollars in thousands)
Commercial real estate	$	-	$	24,475
Increase in valuation allowance		-		370
Total carrying amount	$	-	$	24,845

Activity in the valuation allowance [Table Text Block]

The following table sets forth the composition of the Company’s valuation allowance within the loans held-for-sale portfolio during the three and six months ended June 30, 2018 and June 30, 2017:

	Three Months		Three Months
	Ended		Ended
	June 30, 2018		June 30, 2017
	(dollars in thousands)
Balance at April 1,	$	-	$	2,600
Increase in valuation allowance		-		9,725
Balance at June 30,	$	-	$	12,325

	Six Months		Six Months
	Ended		Ended
	June 30, 2018		June 30, 2017
	(dollars in thousands)
Balance at January 1,	$	-	$	-
Residential real estate		-		12,325
Balance at June 30,	$	-	$	12,325

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 June 30, 2018 and December 31, 2017:

	June 30,			December 31,
	2018			2017
	(dollars in thousands)
Commercial	$	853,629		$	824,082
Commercial real estate		2,717,644			2,592,909
Commercial construction		498,607			483,216
Residential real estate		288,449			271,795
Consumer		5,637			2,808
Gross loans		4,363,966			4,174,810
Net deferred loan fees		(3,112	)		(3,354	)
Total loans receivable	$	4,360,854		$	4,171,456

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

The recorded investment of those loans is as follows at June 30, 2018 and December 31, 2017.

	June 30,		December 31,
	2018		2017
	(dollars in thousands)
Commercial	$	2,629	$	2,683

Loans and Leases Receivable Purchased Loans [Table Text Block]

The following table presents the accretable yield, or income expected to be collected, on the purchased credit-impaired loans for three and six months ended June 30, 2018 and June 30, 2017:

	Three Months			Three Months
	Ended			Ended
	June 30, 2018			June 30, 2017
	(dollars in thousands)
Balance at April 1,	$	1,322		$	2,674
Accretion of income		(63	)		(178	)
Balance at June 30,	$	1,259		$	2,496

	Six Months			Six Months
	Ended			Ended
	June 30, 2018			June 30, 2017
	(dollars in thousands)
Balance at January 1,	$	1,387		$	2,860
Accretion of income		(128	)		(364	)
Balance at June 30,	$	1,259		$	2,496

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

The following table sets forth the composition of the Company’s nonaccrual loans as of June 30, 2018 and December 31, 2017:

	June 30,		December 31,
	2018		2017
	(dollars in thousands)
Commercial	$	29,205	$	47,363
Commercial real estate		15,657		12,757
Residential real estate		4,853		5,493
Total nonaccrual loans	$	49,715	$	65,613

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 June 30, 2018 and December 31, 2017:

	June 30, 2018
			Special
	Pass		Mention			Substandard	Doubtful		Total
	(dollars in thousands)
Commercial	$	806,912	$	13,301	$	33,416	$	-	$	853,629
Commercial real estate		2,671,130		16,376		30,138		-		2,717,644
Commercial construction		491,007		3,167		4,433		-		498,607
Residential real estate		282,784		-		5,665		-		288,449
Consumer		5,609		-		28		-		5,637
Gross loans	$	4,257,442	$	32,844	$	73,680	$	-	$	4,363,966

	December 31, 2017
			Special
	Pass		Mention		Substandard		Doubtful		Total
	(dollars in thousands)
Commercial	$	767,020	$	3,764	$	53,298	$	-	$	824,082
Commercial real estate		2,534,973		34,335		23,601		-		2,592,909
Commercial construction		475,066		5,521		2,629		-		483,216
Residential real estate		266,163		-		5,632		-		271,795
Consumer		2,767		-		41		-		2,808
Gross loans	$	4,045,989	$	43,620	$	85,201	$	-	$	4,174,810

Impaired Financing Receivables [Table Text Block]

The following table provides an analysis of the impaired loans by segment as of June 30, 2018 and December 31, 2017:

	June 30, 2018
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(dollars in thousands)
Commercial	$	31,301	$	91,966
Commercial real estate		23,354		23,477
Commercial construction		7,600		7,600
Residential real estate		2,528		2,811
Consumer		-		-
Total	$	64,783	$	125,854

With an allowance recorded
Commercial real estate	$	8,539	$	8,539	$	672

Total
Commercial	$	31,301	$	91,966	$	-
Commercial real estate		31,893		32,016		672
Commercial construction		7,600		7,600		-
Residential real estate		2,528		2,811		-
Consumer		-		-		-
Total (including allowance)	$	73,322	$	134,393	$	672

	December 31, 2017
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(dollars in thousands)
Commercial	$	49,761	$	101,066
Commercial real estate		23,905		23,976
Commercial construction		6,662		6,662
Residential real estate		3,203		3,442
Consumer		-		-
Total	$	83,531	$	135,146

With an allowance recorded
Commercial real estate	$	1,133	$	1,133	$	39

Total
Commercial	$	49,761	$	101,066	$	-
Commercial real estate		25,038		25,109		39
Commercial construction		6,662		6,662		-
Residential real estate		3,203		3,442		-
Consumer		-		-		-
Total (including allowance)	$	84,664	$	136,279	$	39

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 six months ended June 30, 2018 and 2017:

	Three Months Ended June 30,								Six Months Ended June 30,
	2018				2017				2018				2017
	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	$	38,770	$	35	$	3,209	$	42	$	42,056	$	66	$	3,230	$	81
Commercial real estate		23,422		127		15,456		97		23,504		370		14,526		203
Commercial construction		9,225		176		4,263		69		9,845		295		4,266		152
Residential real estate		2,569		-		1,200		2		2,599		-		1,210		4
Consumer		-		-		54		-		-		-		56		1
Total	$	73,986	$	338	$	24,182	$	210	$	78,004	$	731	$	23,288	$	441

Impaired loans (allowance):
Commercial real estate	$	8,544	$	11	$	1,933	$	33	$	8,548	$	23	$	1,941	$	38

Total impaired loans:
Commercial	$	38,770	$	35	$	3,209	$	42	$	42,056	$	66	$	3,230	$	81
Commercial real estate		31,966		138		17,389		130		32,052		393		16,467		241
Commercial construction		9,225		176		4,263		69		9,845		295		4,266		152
Residential mortgage		2,569		-		1,200		2		2,599		-		1,210		4
Consumer		-		-		54		-		-		-		56		1

Total	$	82,530	$	349	$	26,115	$	233	$	86,552	$	754	$	25,229	$	479

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 June 30, 2018 and December 31, 2017 by segment:

Aging Analysis

	June 30, 2018
					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	$	252	$	122	$	437	$	29,205	$	30,016	$	823,613	$	853,629
Commercial real estate		326		5,307		-		15,657		21,290		2,696,354		2,717,644
Commercial construction		-		-		-		-		-		498,607		498,607
Residential real estate		-		69		-		4,853		4,922		283,527		288,449
Consumer		-		6		-		-		6		5,631		5,637
Total	$	578	$	5,504	$	437	$	49,715	$	56,234	$	4,307,732	$	4,363,966

	December 31, 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	$	1,708	$	183	$	1,664	$	47,363	$	50,918	$	773,164	$	824,082
Commercial real estate		545		1,475		-		12,757		14,777		2,578,132		2,592,909
Commercial construction		-		-		-		-		-		483,216		483,216
Residential real estate		1,578		-		-		5,493		7,071		264,724		271,795
Consumer		18		-		-		-		18		2,790		2,808
Total	$	3,849	$	1,658	$	1,664	$	65,613	$	72,784	$	4,102,026	$	4,174,810

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:

	June 30, 2018
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(dollars in thousands)
ALLL
Individually evaluated for impairment	$	-	$	672	$	-	$	-	$	-	$	-	$	672
Collectively evaluated for impairment		8,760		16,399		4,812		1,167		3		431		31,572
Acquired portfolio		200		1,150		-		-		-		-		1,350
Acquired with deteriorated credit quality		-		-		-		-		-		-		-
Total	$	8,960	$	18,221	$	4,812	$	1,167	$	3	$	431	$	33,594

Gross loans
Individually evaluated for impairment	$	31,301	$	31,893	$	7,600	$	2,528	$	-			$	73,322
Collectively evaluated for impairment		809,832		2,391,316		491,007		237,726		5,233				3,935,114
Acquired portfolio		9,867		294,435		-		48,195		404				352,901
Acquired with deteriorated credit quality		2,629		-		-		-		-				2,629
Total	$	853,629	$	2,717,644	$	498,607	$	288,449	$	5,637			$	4,363,966

	December 31, 2017
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(dollars in thousands)
Allowance for loan losses
Individually evaluated for impairment	$	-	$	39	$	-	$	-	$	-	$	-	$	39
Collectively evaluated for impairment		8,032		15,472		4,747		1,051		2		605		29,909
Acquired portfolio		200		1,600		-		-		-		-		1,800
Acquired with deteriorated credit quality		-		-		-		-		-		-		-
Total	$	8,232	$	17,111	$	4,747	$	1,051	$	2	$	605	$	31,748

Gross loans
Individually evaluated for impairment	$	49,761	$	25,038	$	6,662	$	3,203	$	-			$	84,664
Collectively evaluated for impairment		757,923		2,190,686		476,554		212,350		2,338				3,639,851
Acquired portfolio		13,715		377,185		-		56,242		470				447,612
Acquired with deteriorated credit quality		2,683		-		-		-		-				2,683
Total	$	824,082	$	2,592,909	$	483,216	$	271,795	$	2,808			$	4,174,810

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

A summary of the activity in the ALLL is as follows:

	Three Months Ended June 30, 2018
				Commercial		Commercial			Residential
	Commercial			real estate		construction			real estate			Consumer			Unallocated			Total
	(dollars in thousands)
Balance at March 31, 2018	$	8,550		$	17,435	$	4,772		$	1,109		$	2		$	661		$	32,529

Charge-offs		(46	)		-		-			-			(1	)		-			(47	)

Recoveries		12			-		-			-			-			-			12

Provision for loan losses		444			786		40			58			2			(230	)		1,100

Balance at June 30, 2018	$	8,960		$	18,221	$	4,812		$	1,167		$	3		$	431		$	33,594

	Three Months Ended June 30, 2017
				Commercial		Commercial			Residential
	Commercial			real estate		construction			real estate			Consumer			Unallocated			Total
	(dollars in thousands)
Balance at March 31, 2017	$	6,667		$	14,118	$	4,574		$	1,008		$	3		$	531		$	26,901

Charge-offs		-			-		-			-			(10	)		-			(10	)

Recoveries		15			45		-			-			-			-			60

Provision		556			1,226		(333	)		(23	)		9			15			1,450

Balance at June 30, 2017	$	7,238		$	15,389	$	4,241		$	985		$	2		$	546		$	28,401

	Six Months Ended June 30, 2018
				Commercial			Commercial			Residential
	Commercial			real estate			construction			real estate			Consumer			Unallocated			Total
	(dollars in thousands)
Balance at December 31, 2017	$	8,233		$	17,112		$	4,747		$	1,050		$	1		$	605		$	31,748

Charge-offs		(17,066	)		-			-			(18	)		(1	)		-			(17,085	)

Recoveries		31			-			-			-			-			-			31

Provision		17,762			1,109			65			135			3			(174	)		18,900

Balance at June 30, 2018	$	8,960		$	18,221		$	4,812		$	1,167		$	3		$	431		$	33,594

	Six Months Ended June 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	)		-			-			(11	)		-			(82	)

Recoveries		141			48			-			-			-			-			189

Provision		465			2,829			(548	)		27			10			(233	)		2,550

Balance at June 30, 2017	$	7,238		$	15,389		$	4,241		$	985		$	2		$	546		$	28,401

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:

	Six Months Ended						Year Ended
	June 30, 2018						December 31, 2017
	(dollars in thousands)
	Recorded						Recorded
	Investment			ALLL			Investment			ALLL
Troubled Debt Restructurings

Beginning balance	$	20,518		$	-		$	13,818		$	-
Additions		17,966			147			10,378			-
Payoffs/paydowns		(4,848	)		-			(3,098	)		-
Transfers		-			-			(580	)		-
Other		-			(125	)		-			-
Ending balance	$	33,636		$	22		$	20,518		$	-

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

The following table presents loans by class modified as TDRs that occurred during the six months ended June 30, 2018 (dollars in thousands):

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Loans	Investment		Investment
Troubled debt restructurings:
Commercial	30	$	15,613	$	15,613
Commercial real estate	1		60		60
Commercial construction	2		1,839		1,839
Residential	2		454		454

Total	35	$	17,966	$	17,966

The following table presents loans by segment modified as troubled debt restructurings that occurred during the six months ended June 30, 2017:

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Loans	Investment		Investment
	(dollars in thousands)
Troubled debt restructurings:
Commercial real estate	2	$	3,042	$	3,042
Residential	1		17		17

Total	3	$	3,059	$	3,059