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Allowance for Loan and Lease Losses (Tables)
 3 Months Ended
Mar. 31, 2019
Receivables [Abstract]  
Allowance for Loan and Lease Losses
for the three months ended March 31, 2019 and March 31, 2018 is summarized as follows:
(Dollars in thousands)
Three months ended March 31, 2019
 
Three months ended March 31, 2018
Allowance for loan losses:
 
 
 
Balance at January 1
$
9,144

 
$
10,026

Provision
(164
)
 
2,354

Charge-offs
—

 
(84
)
Recoveries
—

 
—

Balance at March 31
$
8,980

 
$
12,296

 
Three months ended March 31, 2019
(Dollars in thousands)
Construction
and land
development
- commercial
 
Commercial
mortgage
 
Other
commercial
real estate
 
Commercial
and industrial and leases
 
Other
 
Residential
mortgage
 
Revolving
mortgage
 
Construction
and land
development
- non - commercial
 
Consumer
 
Total
Non-PCI Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at January 1
$
35,270

 
$
43,451

 
$
2,481

 
$
55,620

 
$
2,221

 
$
15,472

 
$
21,862

 
$
2,350

 
$
35,841

 
$
214,568

Provision (credits)
2,119

 
2,371

 
(83
)
 
2,725

 
(498
)
 
1,508

 
209

 
123

 
3,440

 
11,914

Charge-offs
(44
)
 
(761
)
 
—

 
(1,858
)
 
—

 
(166
)
 
(963
)
 
—

 
(6,362
)
 
(10,154
)
Recoveries
131

 
220

 
1

 
538

 
444

 
173

 
387

 
—

 
1,573

 
3,467

Balance at March 31
$
37,476

 
$
45,281

 
$
2,399

 
$
57,025

 
$
2,167

 
$
16,987

 
$
21,495

 
$
2,473

 
$
34,492

 
$
219,795

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three months ended March 31, 2018
(Dollars in thousands)
Construction
and land
development
- commercial
 
Commercial
mortgage
 
Other
commercial
real estate
 
Commercial
and industrial and leases
 
Other
 
Residential
mortgage
 
Revolving
mortgage
 
Construction
and land
development
- non - commercial
 
Consumer
 
Total
Balance at January 1
$
24,470

 
$
45,005

 
$
4,571

 
$
59,824

 
$
4,689

 
$
15,706

 
$
22,436

 
$
3,962

 
$
31,204

 
$
211,867

Provision (credits)
2,225

 
(1,365
)
 
(1,293
)
 
562

 
114

 
1,512

 
466

 
107

 
2,923

 
5,251

Charge-offs
—

 
(46
)
 
—

 
(2,329
)
 
(3
)
 
(806
)
 
(992
)
 
(182
)
 
(5,255
)
 
(9,613
)
Recoveries
23

 
239

 
145

 
1,260

 
42

 
77

 
194

 
26

 
1,309

 
3,315

Balance at March 31
$
26,718

 
$
43,833

 
$
3,423

 
$
59,317

 
$
4,842

 
$
16,489

 
$
22,104

 
$
3,913

 
$
30,181

 
$
210,820

The following tables provide information on non-PCI impaired loans and leases, exclusive of loans and leases evaluated collectively as a homogeneous group, including interest income recognized in the period during which the loans and leases were considered impaired.
 
March 31, 2019
(Dollars in thousands)
With a
recorded
allowance
 
With no
recorded
allowance
 
Total
 
Unpaid
principal
balance
 
Related
allowance
recorded
Non-PCI impaired loans and leases:
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
$
1,932

 
$
191

 
$
2,123

 
$
2,538

 
$
533

Commercial mortgage
37,575

 
18,582

 
56,157

 
61,845

 
2,949

Other commercial real estate
222

 
319

 
541

 
629

 
16

Commercial and industrial and leases
7,613

 
2,374

 
9,987

 
14,002

 
1,420

Other
262

 
75

 
337

 
353

 
151

Residential mortgage
43,553

 
1,391

 
44,944

 
48,216

 
3,149

Revolving mortgage
26,017

 
3,199

 
29,216

 
32,074

 
2,742

Construction and land development - noncommercial
2,330

 
1,412

 
3,742

 
4,045

 
99

Consumer
2,872

 
82

 
2,954

 
3,378

 
906

Total non-PCI impaired loans and leases
$
122,376

 
$
27,625

 
$
150,001

 
$
167,080

 
$
11,965

 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
(Dollars in thousands)
With a
recorded
allowance
 
With no
recorded
allowance
 
Total
 
Unpaid
principal
balance
 
Related
allowance
recorded
Non-PCI impaired loans and leases:
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
$
1,897

 
$
278

 
$
2,175

 
$
2,606

 
$
490

Commercial mortgage
34,177

 
21,270

 
55,447

 
61,317

 
2,671

Other commercial real estate
243

 
617

 
860

 
946

 
42

Commercial and industrial and leases
7,153

 
2,715

 
9,868

 
14,695

 
1,137

Other
216

 
75

 
291

 
301

 
105

Residential mortgage
40,359

 
1,809

 
42,168

 
45,226

 
1,901

Revolving mortgage
25,751

 
3,101

 
28,852

 
31,371

 
2,515

Construction and land development - noncommercial
2,337

 
1,412

 
3,749

 
4,035

 
81

Consumer
2,940

 
80

 
3,020

 
3,405

 
885

Total non-PCI impaired loans and leases
$
115,073

 
$
31,357

 
$
146,430

 
$
163,902

 
$
9,827

Non-PCI impaired loans less than $500,000 that were collectively evaluated for impairment totaled $44.8 million and $47.1 million at March 31, 2019 and December 31, 2018, respectively.
The following tables show the average non-PCI impaired loan balance and the interest income recognized by loan class for the three months ended March 31, 2019 and March 31, 2018:
 
Three months ended March 31, 2019
 
Three months ended March 31, 2018
(Dollars in thousands)
Average
balance
 
Interest income recognized
 
Average
balance
 
Interest income recognized
Non-PCI impaired loans and leases:
 
 
 
 
 
 
 
Construction and land development - commercial
$
2,147

 
$
28

 
$
1,155

 
$
11

Commercial mortgage
56,629

 
564

 
72,267

 
711

Other commercial real estate
685

 
8

 
1,713

 
11

Commercial and industrial and leases
10,000

 
100

 
9,762

 
87

Other
315

 
2

 
—

 
—

Residential mortgage
42,626

 
325

 
38,724

 
275

Revolving mortgage
28,742

 
247

 
24,792

 
201

Construction and land development - noncommercial
3,747

 
36

 
4,104

 
48

Consumer
3,000

 
29

 
2,508

 
28

Total non-PCI impaired loans and leases
$
147,891

 
$
1,339

 
$
155,025

 
$
1,372
Allocation of Allowance for Loan and Lease Losses
The following table presents the PCI allowance and recorded investment in loans at March 31, 2019 and December 31, 2018:
(Dollars in thousands)
March 31, 2019
 
December 31, 2018
ALLL for loans acquired with deteriorated credit quality
$
8,980

 
$
9,144

Loans acquired with deteriorated credit quality
557,356

 
606,576

The following tables present the allowance and recorded investment in loans and leases by class of loans, as well as the associated impairment method at March 31, 2019 and December 31, 2018:
 
March 31, 2019
(Dollars in thousands)
Construction
and land
development
- commercial
 
Commercial
mortgage
 
Other
commercial
real estate
 
Commercial
and industrial
and leases
 
Other
 
Residential
mortgage
 
Revolving
mortgage
 
Construction
and land
development
- non-
commercial
 
Consumer
 
Total
Non-PCI Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLL for loans and leases individually evaluated for impairment
$
533

 
$
2,949

 
$
16

 
$
1,420

 
$
151

 
$
3,149

 
$
2,742

 
$
99

 
$
906

 
$
11,965

ALLL for loans and leases collectively evaluated for impairment
36,943

 
42,332

 
2,383

 
55,605

 
2,016

 
13,838

 
18,753

 
2,374

 
33,586

 
207,830

Total allowance for loan and lease losses
$
37,476

 
$
45,281

 
$
2,399

 
$
57,025

 
$
2,167

 
$
16,987

 
$
21,495

 
$
2,473

 
$
34,492

 
$
219,795

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases individually evaluated for impairment
$
2,123

 
$
56,157

 
$
541

 
$
9,987

 
$
337

 
$
44,944

 
$
29,216

 
$
3,742

 
$
2,954

 
$
150,001

Loans and leases collectively evaluated for impairment
802,340

 
10,691,558

 
426,878

 
3,869,588

 
280,511

 
4,258,193

 
2,440,682

 
255,217

 
1,731,461

 
24,756,428

Total loan and leases
$
804,463

 
$
10,747,715

 
$
427,419

 
$
3,879,575

 
$
280,848

 
$
4,303,137

 
$
2,469,898

 
$
258,959

 
$
1,734,415

 
$
24,906,429

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2018
(Dollars in thousands)
Construction
and land
development
- commercial
 
Commercial
mortgage
 
Other
commercial
real estate
 
Commercial
and industrial
and leases
 
Other
 
Residential
mortgage
 
Revolving
mortgage
 
Construction
and land
development
- non-
commercial
 
Consumer
 
Total
Non-PCI Loans
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLL for loans and leases individually evaluated for impairment
$
490

 
$
2,671

 
$
42

 
$
1,137

 
$
105

 
$
1,901

 
$
2,515

 
$
81

 
$
885

 
$
9,827

ALLL for loans and leases collectively evaluated for impairment
34,780

 
40,780

 
2,439

 
54,483

 
2,116

 
13,571

 
19,347

 
2,269

 
34,956

 
204,741

Total allowance for loan and lease losses
$
35,270

 
$
43,451

 
$
2,481

 
$
55,620

 
$
2,221

 
$
15,472

 
$
21,862

 
$
2,350

 
$
35,841

 
$
214,568

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases individually evaluated for impairment
$
2,175

 
$
55,447

 
$
860

 
$
9,868

 
$
291

 
$
42,168

 
$
28,852

 
$
3,749

 
$
3,020

 
$
146,430

Loans and leases collectively evaluated for impairment
755,679

 
10,661,787

 
426,125

 
3,928,862

 
296,133

 
4,223,519

 
2,514,123

 
253,281

 
1,710,761

 
24,770,270

Total loan and leases
$
757,854

 
$
10,717,234

 
$
426,985

 
$
3,938,730

 
$
296,424

 
$
4,265,687

 
$
2,542,975

 
$
257,030

 
$
1,713,781

 
$
24,916,700
Troubled Debt Restructurings on Financing Receivables
The following table provides the types of TDRs made during the three months ended March 31, 2019 and March 31, 2018, as well as a summary of loans that were modified as a TDR during the twelve month periods ended March 31, 2019 and March 31, 2018 that subsequently defaulted during the three months ended March 31, 2019 and March 31, 2018. BancShares defines payment default as movement of the TDR to nonaccrual status, which is generally 90 days past due for TDRs, foreclosure or charge-off, whichever occurs first.
 
Three months ended March 31, 2019
 
Three months ended March 31, 2018
 
All restructurings
 
Restructurings with payment default
 
All restructurings
 
Restructurings with payment default
(Dollars in thousands)
Number of Loans
Recorded investment at period end
 
Number of Loans
Recorded investment at period end
 
Number of Loans
Recorded investment at period end
 
Number of Loans
Recorded investment at period end
Loans and leases
 
 
 
 
 
 
 
 
 
 
 
Interest only
—

$
—

 
—

$
—

 
1

$
644

 
—

$
—

Loan term extension
3

420

 
3

541

 
6

932

 
1

305

Below market interest rate
46

2,953

 
33

2,123

 
66

5,660

 
30

1,814

Discharged from bankruptcy
42

1,868

 
25

1,144

 
48

3,813

 
43

3,172

Total restructurings
91

$
5,241

 
61

$
3,808

 
121

$
11,049

 
74

$
5,291

For the three months ended March 31, 2019 and March 31, 2018, the pre-modification and post-modification outstanding recorded investments of loans modified as TDRs were not materially different.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The following table provides a summary of total TDRs by accrual status. Total TDRs included $17.9 million and $18.2 million of PCI TDRs at March 31, 2019 and December 31, 2018, respectively.
 
March 31, 2019
 
December 31, 2018
(Dollars in thousands)
Accruing
 
 Nonaccruing
 
 Total
 
 Accruing
 
 Nonaccruing
 
 Total
Commercial loans
 
 
 
 
 
 
 
 
 
 
 
Construction and land development -
commercial
$
1,914

 
$
329

 
$
2,243

 
$
1,946

 
$
352

 
$
2,298

Commercial mortgage
51,202

 
6,653

 
57,855

 
53,270

 
7,795

 
61,065

Other commercial real estate
536

 
5

 
541

 
851

 
9

 
860

Commercial and industrial and leases
8,253

 
1,792

 
10,045

 
7,986

 
2,060

 
10,046

Other
119

 
218

 
337

 
118

 
173

 
291

Total commercial loans
62,024

 
8,997

 
71,021

 
64,171

 
10,389

 
74,560

Noncommercial
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
37,111

 
10,582

 
47,693

 
37,903

 
9,621

 
47,524

Revolving mortgage
20,320

 
9,200

 
29,520

 
20,492

 
8,196

 
28,688

Construction and land development -
noncommercial
2,150

 
180

 
2,330

 
2,227

 
110

 
2,337

Consumer and other
2,106

 
847

 
2,953

 
2,300

 
721

 
3,021

Total noncommercial loans
61,687

 
20,809

 
82,496

 
62,922

 
18,648

 
81,570

Total loans
$
123,711

 
$
29,806

 
$
153,517

 
$
127,093

 
$
29,037

 
$
156,130