ALLOWANCE FOR LOAN AND LEASE LOSSES AND CREDIT QUALITY INFORMATION (Tables)

3 Months Ended

Mar. 31, 2019

Schedule of Allowance for Loan Losses and Loan Balances

The following tables provide the activity of our allowance for loan losses and loan balances for the three months ended March 31, 2019:



(Dollars in thousands)	Commercial and Industrial⁽¹⁾			Owner-occupied Commercial			Commercial Mortgages			Construction		Residential⁽²⁾			Consumer			Total
Three months ended March 31, 2019
Allowance for loan losses
Beginning balance	$	14,211		$	5,057		$	6,806		$	3,712	$	1,428		$	8,325		$	39,539
Charge-offs	(742		)	—			(2		)	—		(122		)	(684		)	(1,550		)
Recoveries	358			3			29			1		(14		)	301			678
Provision (credit)	7,123			(111		)	(156		)	331		51			257			7,495
Provision (credit) for acquired loans	66			—			2			—		58			33			159
Ending balance	$	21,016		$	4,949		$	6,679		$	4,044	$	1,401		$	8,232		$	46,321
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	4,588		$	—		$	—		$	367	$	533		$	166		$	5,654
Loans collectively evaluated for impairment	16,427			4,856			6,600			3,663		830			8,064			40,440
Acquired loans evaluated for impairment	1			93			79			14		38			2			227
Ending balance	$	21,016		$	4,949		$	6,679		$	4,044	$	1,401		$	8,232		$	46,321
Period-end loan balances:
Loans individually evaluated for impairment⁽³⁾	$	16,109		$	5,384		$	3,999		$	2,781	$	10,590		$	8,169		$	47,032
Loans collectively evaluated for impairment	1,415,689			1,198,337			753,911			347,035		130,499			824,684			4,670,155
Acquired nonimpaired loans	782,160			105,154			1,575,527			225,245		949,804			295,450			3,933,340
Acquired impaired loans	6,130			4,070			19,715			636		8,483			3,456			42,490
Ending balance⁽⁴⁾	$	2,220,088		$	1,312,945		$	2,353,152		$	575,697	$	1,099,376		$	1,131,759		$	8,693,017


⁽¹⁾	Includes commercial small business leases.


⁽²⁾	Period-end loan balance excludes reverse mortgages at fair value of $16.2 million.


⁽³⁾	The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $15.0 million for the period ending March 31, 2019. Accruing troubled debt restructured loans are considered impaired loans.


⁽⁴⁾	Ending loan balances do not include net deferred fees.

The following table provides the activity of the allowance for loan losses and loan balances for the three months ended March 31, 2018:



(Dollars in thousands)	Commercial and Industrial			Owner - occupied Commercial			Commercial Mortgages			Construction			Residential⁽¹⁾			Consumer			Total
Three months ended March 31, 2018
Allowance for loan losses
Beginning balance	$	16,732		$	5,422		$	5,891		$	2,861		$	1,798		$	7,895		$	40,599
Charge-offs	(3,360		)	(10		)	(48		)	—			—			(462		)	(3,880		)
Recoveries	80			5			134			1			14			207			441
Provision (credit)	2,650			(58		)	617			27			(129		)	548			3,655
Provision for acquired loans	—			—			23			(25		)	(3		)	—			(5		)
Ending balance	$	16,102		$	5,359		$	6,617		$	2,864		$	1,680		$	8,188		$	40,810
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	2,632		$	—		$	—		$	—		$	643		$	186		$	3,461
Loans collectively evaluated for impairment	13,296			5,347			6,528			2,857			1,001			7,994			37,023
Acquired loans evaluated for impairment	174			12			89			7			35			9			326
Ending balance	$	16,102		$	5,359		$	6,617		$	2,864		$	1,679		$	8,189		$	40,810
Period-end loan balances:
Loans individually evaluated for impairment⁽²⁾	$	16,993		$	4,342		$	5,946		$	6,490		$	12,861		$	7,677		$	54,309
Loans collectively evaluated for impairment	1,361,517			938,166			970,750			267,293			145,753			541,644			4,225,123
Acquired nonimpaired loans	107,183			133,007			178,518			15,259			67,722			33,152			534,841
Acquired impaired loans	3,870			5,147			9,210			901			777			249			20,154
Ending balance⁽³⁾	$	1,489,563		$	1,080,662		$	1,164,424		$	289,943		$	227,113		$	582,722		$	4,834,427


⁽¹⁾	Period-end loan balance excludes reverse mortgages at fair value of $20.0 million.


⁽²⁾	The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $20.2 million for the period ending March 31, 2018. Accruing troubled debt restructured loans are considered impaired loans.


⁽³⁾	Ending loan balances do not include net deferred fees.

Summary of Nonaccrual and Past Due Loans

The following tables show our nonaccrual and past due loans at the dates indicated:



	March 31, 2019
(Dollars in thousands)	30–59 Days Past Due and Still Accruing			60–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial and industrial⁽¹⁾	$	2,941		$	833		$	—		$	3,774		$	2,194,854		$	6,130		$	15,330		$	2,220,088
Owner-occupied commercial	3,109			—			—			3,109			1,300,383			4,070			5,383			1,312,945
Commercial mortgages	5,848			114			—			5,962			2,323,606			19,715			3,869			2,353,152
Construction	638			1,309			—			1,947			570,333			636			2,781			575,697
Residential⁽²⁾	11,404			1,751			739			13,894			1,074,517			8,483			2,482			1,099,376
Consumer	10,470			6,017			12,237			28,724			1,097,386			3,456			2,193			1,131,759
Total⁽³⁾	$	34,410		$	10,024		$	12,976		$	57,410		$	8,561,079		$	42,490		$	32,038		$	8,693,017
% of Total Loans	0.40		%	0.11		%	0.15		%	0.66		%	98.48		%	0.49		%	0.37		%	100		%


⁽¹⁾	Includes commercial small business leases.


⁽²⁾	Residential accruing current balances excludes reverse mortgages at fair value of $16.2 million.


⁽³⁾	The balances above include a total of $3.9 billion acquired non-impaired loans.



	December 31, 2018
(Dollars in thousands)	30–59 Days Past Due and Still Accruing			60–89 Days Past Due and Still Accruing			Greater Than 90 Days Past Due and Still Accruing			Total Past Due And Still Accruing			Accruing Current Balances			Acquired Impaired Loans			Nonaccrual Loans			Total Loans
Commercial and industrial	$	3,653		$	993		$	71		$	4,717		$	1,452,185		$	1,531		$	14,056		$	1,472,489
Owner-occupied commercial	733			865			—			1,598			1,049,722			4,248			4,406			1,059,974
Commercial mortgages	1,388			908			—			2,296			1,148,988			7,504			3,951			1,162,739
Construction	157			—			—			157			312,879			749			2,781			316,566
Residential⁽¹⁾	1,970			345			660			2,975			194,960			761			2,854			201,550
Consumer	525			971			104			1,600			677,182			151			2,006			680,939
Total⁽²⁾	$	8,426		$	4,082		$	835		$	13,343		$	4,835,916		$	14,944		$	30,054		$	4,894,257
% of Total Loans	0.17		%	0.08		%	0.02		%	0.27		%	98.81		%	0.31		%	0.61		%	100		%


⁽¹⁾	Residential accruing current balances excludes reverse mortgages, at fair value of $16.5 million.


⁽²⁾	The balances above include a total of $430.0 million acquired non-impaired loans

Analysis of Impaired Loans

The following tables provide an analysis of our impaired loans at March 31, 2019 and December 31, 2018:



	March 31, 2019
(Dollars in thousands)	Ending Loan Balances		Loans with No Related Reserve⁽¹⁾		Loans with Related Reserve⁽²⁾		Related Reserve		Contractual Principal Balances⁽²⁾		Average Loan Balances
Commercial and industrial	$	16,114	$	10,200	$	5,914	$	4,590	$	22,775	$	17,539
Owner-occupied commercial	6,988		5,384		1,604		92		7,316		5,701
Commercial mortgages	5,579		3,999		1,580		79		15,321		7,034
Construction	3,432		—		3,432		382		4,970		4,519
Residential	10,892		6,877		4,015		571		13,136		11,932
Consumer	8,201		7,212		989		168		9,171		8,032
Total	$	51,206	$	33,672	$	17,534	$	5,882	$	72,689	$	54,757


⁽¹⁾	Reflects loan balances at or written down to their remaining book balance.


⁽²⁾	The above includes acquired impaired loans totaling $4.2 million in the ending loan balance and $4.6 million in the contractual principal balance.



	December 31, 2018
(Dollars in thousands)	Ending Loan Balances		Loans with No Related Reserve⁽¹⁾		Loans with Related Reserve⁽²⁾		Related Reserve		Contractual Principal Balances⁽²⁾		Average Loan Balances
Commercial and industrial	$	14,841	$	8,625	$	6,216	$	878	$	22,365	$	18,484
Owner-occupied commercial	6,065		4,406		1,659		92		6,337		5,378
Commercial mortgages	5,679		4,083		1,596		79		15,372		7,438
Construction	3,530		—		3,530		458		5,082		5,091
Residential	11,321		6,442		4,879		581		13,771		12,589
Consumer	7,916		6,899		1,017		170		8,573		7,956
Total	$	49,352	$	30,455	$	18,897	$	2,258	$	71,500	$	56,936


⁽¹⁾	Reflects loan balances at or written down to their remaining book balance.


⁽²⁾	The above includes acquired impaired loans totaling $4.3 million in the ending loan balance and $4.8 million in the contractual principal balance.

Schedule of Commercial Credit Exposure

The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the Allowance for Loan Loss.

Commercial Credit Exposure



	March 31, 2019
	Commercial and Industrial⁽¹⁾		Owner-occupied Commercial		Commercial Mortgages		Construction		Total Commercial⁽²⁾
(Dollars in thousands)									Amount		%
Risk Rating:
Special mention	$	8,127	$	27,030	$	—	$	—	$	35,157
Substandard:
Accrual	54,890		23,671		10,422		1,309		90,292
Nonaccrual	10,741		5,384		3,869		2,414		22,408
Doubtful	4,588		—		—		367		4,955
Total Special Mention and Substandard	78,346		56,085		14,291		4,090		152,812		2	%
Acquired impaired	6,130		4,070		19,715		636		30,551		—	%
Pass	2,135,612		1,252,790		2,319,146		570,971		6,278,519		98	%
Total	$	2,220,088	$	1,312,945	$	2,353,152	$	575,697	$	6,461,882	100	%


⁽¹⁾	Includes commercial small business leases.


⁽²⁾	Table includes $2.7 billion of acquired non-impaired loans as of March 31, 2019.



	December 31, 2018
	Commercial and Industrial		Owner-occupied Commercial		Commercial Mortgages		Construction		Total Commercial⁽¹⁾
(Dollars in thousands)									Amount		%
Risk Rating:
Special mention	$	8,710	$	21,230	$	—	$	—	$	29,940
Substandard:
Accrual	37,424		21,081		9,767		168		68,440
Nonaccrual	13,180		4,406		3,951		2,337		23,874
Doubtful	876		—		—		444		1,320
Total Special Mention and Substandard	60,190		46,717		13,718		2,949		123,574		3	%
Acquired impaired	1,531		4,248		7,504		749		14,032		—	%
Pass	1,410,768		1,009,009		1,141,517		312,868		3,874,162		97	%
Total	$	1,472,489	$	1,059,974	$	1,162,739	$	316,566	$	4,011,768	100	%


⁽¹⁾	Table includes $350.5 million of acquired non-impaired loans as of December 31, 2018.

Schedule of Consumer Credit Exposure

Residential and Consumer Credit Exposure



	Residential⁽²⁾				Consumer				Total Residential and Consumer⁽³⁾
	March 31,		December 31,		March 31,		December 31,		March 31, 2019				December 31, 2018
(Dollars in thousands)	2019		2018		2019		2018		Amount		Percent		Amount		Percent
Nonperforming⁽¹⁾	$	10,590	$	11,017	$	8,169	$	7,883	$	18,759	1	%	$	18,900	2	%
Acquired impaired loans	8,483		761		3,456		151		11,939		—	%	912		—	%
Performing	1,080,303		189,772		1,120,134		672,905		2,200,437		99	%	862,677		98	%
Total	$	1,099,376	$	201,550	$	1,131,759	$	680,939	$	2,231,135	100	%	$	882,489	100	%


⁽¹⁾	Includes $14.1 million as of March 31, 2019 and $14.0 million as of December 31, 2018 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with the loans’ modified terms and are accruing interest.


⁽²⁾	Residential performing loans excludes $16.2 million and $16.5 million of reverse mortgages at fair value as of March 31, 2019 and December 31, 2018, respectively.


⁽³⁾	Total includes $1.2 billion and $79.5 million in acquired non-impaired loans as of March 31, 2019 and December 31, 2018, respectively.

Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated

The following table presents loans identified as TDRs during the three months ended March 31, 2019 and 2018.



	Three Months Ended March 31,
	2019				2018
(Dollars in thousands)	Pre Modification		Post Modification		Pre Modification		Post Modification
Commercial	$	—	$	—	$	—	$	—
Owner-occupied commercial	—		—		—		—
Commercial mortgages	31		31		458		458
Construction	—		—		920		920
Residential	102		102		—		—
Consumer	868		868		262		262
Total	$	1,001	$	1,001	$	1,640	$	1,640

The following table presents the balance of TDRs as of the indicated dates:



(Dollars in thousands)	March 31, 2019		December 31, 2018
Performing TDRs	$	14,995	$	14,953
Nonperforming TDRs	9,401		10,211
Total TDRs	$	24,396	$	25,164

The following table presents information regarding the types of loan modifications made for the three months ended March 31, 2019 and 2018:



	March 31, 2019					March 31, 2018
	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other⁽¹⁾	Total	Contractual payment reduction and term extension	Maturity Date Extension	Discharged in bankruptcy	Other⁽¹⁾	Total
Commercial and Industrial	—	—	—	—	—	—	—	—	—	—
Owner-occupied commercial	—	—	—	—	—	—	—	—	—	—
Commercial Mortgages	1	—	—	—	1	—	1	—	—	1
Construction	—	—	—	—	—	—	1	—	—	1
Residential	—	—	1	1	2	—	—	—	—	—
Consumer	—	—	1	3	4	1	1	—	2	4
Total	1	—	2	4	7	1	3	—	2	6


⁽¹⁾	Other includes underwriting exceptions.