XML 25 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
Allowance for Credit Losses
 3 Months Ended
Mar. 31, 2018
Receivables [Abstract]  
Allowance for Credit Losses
Allowance for Credit Losses

The allowance for credit losses consists of the allowance for loan losses and the allowance for unfunded letters of credit. Management maintains the allowance for credit losses at a level estimated to absorb probable loan losses of the loan portfolio and unfunded letter of credit commitments at the balance sheet date. The allowance for loan losses is based on ongoing evaluations of the probable estimated losses inherent in the loan portfolio, including unexpected additional credit impairment of PCI loan pools subsequent to acquisition. There was no allowance allocation for PCI loan losses at March 31, 2018 and December 31, 2017.
The following table summarizes the allowance for credit losses at March 31, 2018 and December 31, 2017: 
 
March 31,
2018
 
December 31,
2017
 
(in thousands)
Components of allowance for credit losses:
 
 
 
Allowance for loan losses
$
132,862

 
$
120,856

Allowance for unfunded letters of credit
3,842

 
3,596

Total allowance for credit losses
$
136,704

 
$
124,452


The following table summarizes the provision for credit losses for the periods indicated:
 
Three Months Ended
March 31,
 
2018
 
2017
 
(in thousands)
Components of provision for credit losses:
 
 
 
Provision for loan losses
$
10,702

 
$
2,402

Provision for unfunded letters of credit
246

 
68

Total provision for credit losses
$
10,948

 
$
2,470


The following table details activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2018 and 2017:
 
Commercial
and Industrial
 
Commercial
Real Estate
 
Residential
Mortgage
 
Consumer
 
Total
 
(in thousands)
Three Months Ended
March 31, 2018
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
57,232

 
$
54,954

 
$
3,605

 
$
5,065

 
$
120,856

Loans charged-off
(131
)
 
(310
)
 
(68
)
 
(1,211
)
 
(1,720
)
Charged-off loans recovered
2,107

 
369

 
80

 
468

 
3,024

Net recoveries (charge-offs)
1,976

 
59

 
12

 
(743
)
 
1,304

Provision for loan losses
7,338

 
1,666

 
483

 
1,215

 
10,702

Ending balance
$
66,546

 
$
56,679

 
$
4,100

 
$
5,537

 
$
132,862

Three Months Ended
March 31, 2017
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Beginning balance
$
50,820

 
$
55,851

 
$
3,702

 
$
4,046

 
$
114,419

Loans charged-off
(1,714
)
 
(414
)
 
(130
)
 
(1,121
)
 
(3,379
)
Charged-off loans recovered
848

 
142

 
448

 
563

 
2,001

Net (charge-offs) recoveries
(866
)
 
(272
)
 
318

 
(558
)
 
(1,378
)
Provision for loan losses
1,334

 
723

 
(428
)
 
773

 
2,402

Ending balance
$
51,288

 
$
56,302

 
$
3,592

 
$
4,261

 
$
115,443


The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the impairment methodology at March 31, 2018 and December 31, 2017. Loans individually evaluated for impairment represent Valley's impaired loans. Loans acquired with discounts related to credit quality represent Valley's PCI loans.
 
Commercial
and Industrial
 
Commercial
Real Estate
 
Residential
Mortgage
 
Consumer
 
Total
 
(in thousands)
March 31, 2018
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
21,664

 
$
2,672

 
$
705

 
$
60

 
$
25,101

Collectively evaluated for impairment
44,882

 
54,007

 
3,395

 
5,477

 
107,761

Total
$
66,546

 
$
56,679

 
$
4,100

 
$
5,537

 
$
132,862

Loans:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
89,668

 
$
56,947

 
$
14,030

 
$
1,888

 
$
162,533

Collectively evaluated for impairment
2,646,113

 
9,698,719

 
2,803,027

 
2,326,353

 
17,474,212

Loans acquired with discounts related to credit quality
895,427

 
3,323,270

 
504,503

 
192,633

 
4,915,833

Total
$
3,631,208

 
$
13,078,936

 
$
3,321,560

 
$
2,520,874

 
$
22,552,578

December 31, 2017
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
11,044

 
$
2,735

 
$
718

 
$
64

 
$
14,561

Collectively evaluated for impairment
46,188

 
52,219

 
2,887

 
5,001

 
106,295

Total
$
57,232

 
$
54,954

 
$
3,605

 
$
5,065

 
$
120,856

Loans:
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
85,499

 
$
60,851

 
$
14,056

 
$
3,760

 
$
164,166

Collectively evaluated for impairment
2,463,566

 
9,310,964

 
2,703,688

 
2,301,981

 
16,780,199

Loans acquired with discounts related to credit quality
192,360

 
976,067

 
141,291

 
77,497

 
1,387,215

Total
$
2,741,425

 
$
10,347,882

 
$
2,859,035

 
$
2,383,238

 
$
18,331,580