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

9 Months Ended

Sep. 30, 2019

Receivables [Abstract]

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 and nine months ended September 30, 2019:

(Dollars in thousands)	Commercial and Industrial(1)		Owner-occupied Commercial		Commercial Mortgages		Construction		Residential(2)		Consumer		Total
Three months ended September 30, 2019
Allowance for loan losses
Beginning balance	$	22,004	$	4,480	$	6,544	$	2,984	$	1,358	$	7,994	$	45,364
Charge-offs	(1,441)		(12)		2		—		(3)		(1,042)		(2,496)
Recoveries	297		4		120		2		(60)		319		682
Provision (credit)	3,595		23		97		(105)		43		327		3,980
Provision (credit) for acquired loans	49		9		(26)		—		(8)		117		141
Ending balance	$	24,504	$	4,504	$	6,737	$	2,881	$	1,330	$	7,715	$	47,671
Nine months ended September 30, 2019
Allowance for loan losses
Beginning balance	$	14,211	$	5,057	$	6,806	$	3,712	$	1,428	$	8,325	$	39,539
Charge-offs	(15,185)		(20)		(153)		(42)		(288)		(2,686)		(18,374)
Recoveries	858		85		547		4		(76)		1,118		2,536
Provision (credit)	24,286		(614)		(533)		(787)		118		656		23,126
Provision (credit) for acquired loans	334		(4)		70		(6)		148		302		844
Ending balance	$	24,504	$	4,504	$	6,737	$	2,881	$	1,330	$	7,715	$	47,671
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	3,534	$	156	$	—	$	—	$	478	$	180	$	4,348
Loans collectively evaluated for impairment	20,969		4,269		6,690		2,873		813		7,534		43,148
Acquired loans individually evaluated for impairment	1		79		47		8		39		1		175
Ending balance	$	24,504	$	4,504	$	6,737	$	2,881	$	1,330	$	7,715	$	47,671
Period-end loan balances:
Loans individually evaluated for impairment(3)	$	21,135	$	9,263	$	2,325	$	—	$	12,031	$	7,502	$	52,256
Loans collectively evaluated for impairment	1,657,748		935,306		1,019,723		375,664		138,121		887,193		5,013,755
Acquired nonimpaired loans	605,804		322,030		1,237,282		138,251		876,089		241,633		3,421,089
Acquired impaired loans	1,664		6,809		12,655		487		7,655		2,545		31,815
Ending balance(4)	$	2,286,351	$	1,273,408	$	2,271,985	$	514,402	$	1,033,896	$	1,138,873	$	8,518,915

⁽¹⁾Includes commercial small business leases.

⁽²⁾Period-end loan balance excludes reverse mortgages at fair value of $17.7 million.

⁽³⁾The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $14.1 million for the period ending September 30, 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 and nine months ended September 30, 2018:

(Dollars in thousands)	Commercial and Industrial		Owner - occupied Commercial		Commercial Mortgages		Construction		Residential(1)		Consumer		Total
Three months ended September 30, 2018
Allowance for loan losses
Beginning balance	$	15,842	$	5,284	$	6,951	$	3,289	$	1,519	$	8,152	$	41,037
Charge-offs	(1,761)		—		—		(1,475)		—		(567)		(3,803)
Recoveries	621		16		52		1		28		144		862
Provision (credit)	1,947		273		(598)		1,657		(71)		626		3,834
Provision (credit) for acquired loans	(82)		—		(21)		—		(1)		(14)		(118)
Ending balance	$	16,567	$	5,573	$	6,384	$	3,472	$	1,475	$	8,341	$	41,812
Nine months ended September 30, 2018
Allowance for loan losses
Beginning balance	$	16,732	$	5,422	$	5,891	$	2,861	$	1,798	$	7,895	$	40,599
Charge-offs	(6,861)		(351)		(48)		(1,475)		(54)		(1,857)		(10,646)
Recoveries	1,060		28		189		3		117		598		1,995
Provision (credit)	5,730		419		356		2,106		(382)		1,711		9,940
Provision (credit) for acquired loans	(94)		55		(4)		(23)		(4)		(6)		(76)
Ending balance	$	16,567	$	5,573	$	6,384	$	3,472	$	1,475	$	8,341	$	41,812
Period-end allowance allocated to:
Loans individually evaluated for impairment	$	3,970	$	9	$	—	$	444	$	570	$	171	$	5,164
Loans collectively evaluated for impairment	12,517		5,546		6,300		3,019		870		8,167		36,419
Acquired loans individually evaluated for impairment	80		18		84		9		35		3		229
Ending balance	$	16,567	$	5,573	$	6,384	$	3,472	$	1,475	$	8,341	$	41,812
Period-end loan balances:
Loans individually evaluated for impairment(2)	$	19,910	$	2,829	$	6,502	$	2,903	$	11,479	$	8,256	$	51,879
Loans collectively evaluated for impairment	1,387,143		958,356		961,345		322,822		134,074		620,727		4,384,467
Acquired nonimpaired loans	97,552		119,403		156,483		7,025		60,407		24,568		465,438
Acquired impaired loans	2,070		4,816		8,951		737		766		153		17,493
Ending balance(3)	$	1,506,675	$	1,085,404	$	1,133,281	$	333,487	$	206,726	$	653,704	$	4,919,277

⁽¹⁾Period-end loan balance excludes reverse mortgages at fair value of $16.6 million.

⁽²⁾The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $15.2 million for the period ending September 30, 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:

	September 30, 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)	$	7,665		$	640		$	528		$	8,833		$	2,254,847		$	1,664		$	21,007		$	2,286,351
Owner-occupied commercial	2,183			1,390			—			3,573			1,253,763			6,809			9,263			1,273,408
Commercial mortgages	5,900			950			989			7,839			2,249,294			12,655			2,197			2,271,985
Construction	1,020			—			—			1,020			512,895			487			—			514,402
Residential(2)	7,475			758			248			8,481			1,013,608			7,655			4,152			1,033,896
Consumer(3)	8,152			3,104			11,944			23,200			1,111,329			2,545			1,799			1,138,873
Total(4)	$	32,395		$	6,842		$	13,709		$	52,946		$	8,395,736		$	31,815		$	38,418		$	8,518,915
% of Total Loans	0.38		%	0.08		%	0.16		%	0.62		%	98.55		%	0.37		%	0.45		%	100		%

⁽¹⁾Includes commercial small business leases.

⁽²⁾Residential accruing current balances excludes reverse mortgages at fair value of $17.7 million.

⁽³⁾Includes $18.8 million of delinquent, but still accruing, U.S. government-guaranteed student loans that carry little risk of credit loss.

⁽⁴⁾The balances above include a total of $3.4 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 September 30, 2019 and December 31, 2018:

	September 30, 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	$	21,138	$	8,666	$	12,472	$	3,534	$	25,423	$	18,695
Owner-occupied commercial	10,559		9,107		1,452		235		10,913		7,650
Commercial mortgages	3,130		2,325		805		47		7,381		5,251
Construction	487		—		487		8		561		2,226
Residential	12,214		8,320		3,894		517		14,391		11,546
Consumer	7,531		6,198		1,333		182		8,262		7,870
Total	$	55,059	$	34,616	$	20,443	$	4,523	$	66,931	$	53,238

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

⁽²⁾The above includes acquired impaired loans totaling $2.8 million in the ending loan balance and $3.1 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

	September 30, 2019
	Commercial and Industrial(1)		Owner-occupied Commercial		Commercial Mortgages		Construction		Total Commercial(2)
(Dollars in thousands)									Amount		%
Risk Rating:
Special mention	$	22,845	$	—	$	11,365	$	—	$	34,210
Substandard:
Accrual	61,158		30,436		27,167		—		118,761
Nonaccrual	17,473		9,107		2,197		—		28,777
Doubtful	3,534		156		—		—		3,690
Total Special Mention and Substandard	105,010		39,699		40,729		—		185,438		3	%
Acquired impaired	1,664		6,809		12,655		487		21,615		—	%
Pass	2,179,677		1,226,900		2,218,601		513,915		6,139,093		97	%
Total	$	2,286,351	$	1,273,408	$	2,271,985	$	514,402	$	6,346,146	100	%

⁽¹⁾Includes commercial small business leases.

⁽²⁾Includes $2.3 billion of acquired non-impaired loans as of September 30, 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⁾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)
	September 30,		December 31,		September 30,		December 31,		September 30, 2019			December 31, 2018
(Dollars in thousands)	2019		2018		2019		2018		Amount		Percent	Amount		Percent
Nonperforming(1)	$	12,413	$	11,017	$	7,407	$	7,883	$	19,820	1	$	18,900	2	%
Acquired impaired loans	7,655		761		2,545		151		10,200		—	912		—	%
Performing	1,013,828		189,772		1,128,921		672,905		2,142,749		99	862,677		98	%
Total	$	1,033,896	$	201,550	$	1,138,873	$	680,939	$	2,172,769	100	$	882,489	100	%

⁽¹⁾Includes $13.9 million as of September 30, 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 $17.7 million and $16.5 million of reverse mortgages at fair value as of September 30, 2019 and December 31, 2018, respectively.

⁽³⁾Total includes $1.1 billion and $79.5 million in acquired non-impaired loans as of September 30, 2019 and December 31, 2018, respectively.

Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated

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

(Dollars in thousands)	September 30, 2019		December 31, 2018
Performing TDRs	$	14,125	$	14,953
Nonperforming TDRs	6,667		10,211
Total TDRs	$	20,792	$	25,164

Approximately $0.7 million and $1.2 million in related reserves have been established for these loans at September 30, 2019 and December 31, 2018, respectively.

The following table presents information regarding the types of loan modifications made for the three and nine months ended September 30, 2019 and 2018:

	Three months ended September 30, 2019					Nine months ended September 30, 2019
	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	—	—	—	—	—	—	1	—	2	3
Owner-occupied commercial	—	—	—	—	—	—	—	—	2	2
Commercial Mortgages	—	—	—	—	—	1	—	—	1	2
Construction	—	—	—	—	—	—	—	—	—	—
Residential	—	—	1	—	1	4	—	2	—	6
Consumer	—	2	1	2	5	5	3	2	2	12
Total	—	2	2	2	6	10	4	4	7	25

	Three months ended September 30, 2018					Nine months ended September 30, 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	3	—	—	—	3	6	—	—	—	6
Owner-occupied commercial	—	—	—	—	—	—	—	—	—	—
Commercial Mortgages	1	—	—	—	1	2	1	—	—	3
Construction	—	—	—	—	—	—	1	—	—	1
Residential	—	—	—	—	—	4	—	—	—	4
Consumer	1	—	1	—	2	8	1	4	2	15
Total	5	—	1	—	6	20	3	4	2	29

⁽¹⁾Other includes underwriting exceptions.

Principal balances are generally not forgiven when a loan is modified as a TDR. Nonaccruing restructured loans remain in nonaccrual status until there has been a period of sustained repayment performance, which is typically six months, and repayment is reasonably assured.

The following table presents loans identified as TDRs during the three and nine months ended September 30, 2019 and 2018.

	Three Months Ended September 30,								Nine Months Ended September 30,
	2019				2018				2019				2018
(Dollars in thousands)	Pre Modification		Post Modification		Pre Modification		Post Modification		Pre Modification		Post Modification		Pre Modification		Post Modification
Commercial	$	—	$	—	$	320	$	320	$	1,335	$	1,335	$	5,102	$	5,102
Owner-occupied commercial	—		—		—		—		1,413		1,413		—		—
Commercial mortgages	—		—		168		168		504		504		2,190		2,190
Construction	—		—		—		—		—		—		920		920
Residential	253		253		—		—		670		670		469		469
Consumer	500		500		113		113		1,807		1,807		1,236		1,236
Total	$	753	$	753	$	601	$	601	$	5,729	$	5,729	$	9,917	$	9,917