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Allowance for Loan Losses and Credit Quality Information (Tables)
 6 Months Ended
Jun. 30, 2017
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 six months ended June 30, 2017:
(Dollars in thousands)
 
Commercial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Residential(1)
 
Consumer
 
Total
Three months ended June 30, 2017
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
14,205

 
$
6,030

 
$
8,335

 
$
2,961

 
$
2,054

 
$
6,241

 
$
39,826

Charge-offs
 
(929
)
 
—

 
(402
)
 
(117
)
 
(42
)
 
(888
)
 
(2,378
)
Recoveries
 
319

 
33

 
7

 
2

 
10

 
343

 
714

Provision (credit)
 
520

 
(265
)
 
(853
)
 
471

 
17

 
1,453

 
1,343

Provision for acquired loans
 
109

 
18

 
248

 
115

 
11

 
(1
)
 
500

Ending balance
 
$
14,224

 
$
5,816

 
$
7,335

 
$
3,432

 
$
2,050

 
$
7,148

 
$
40,005

Six months ended June 30, 2017
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
13,339

 
$
6,588

 
$
8,915

 
$
2,838

 
$
2,059

 
$
6,012

 
$
39,751

Charge-offs
 
(2,184
)
 
(192
)
 
(506
)
 
(131
)
 
(53
)
 
(2,031
)
 
(5,097
)
Recoveries
 
403

 
108

 
53

 
4

 
130

 
648

 
1,346

Provision (credit)
 
2,469

 
(706
)
 
(1,371
)
 
629

 
(97
)
 
2,533

 
3,457

Provision for acquired loans
 
197

 
18

 
244

 
92

 
11

 
(14
)
 
548

Ending balance
 
$
14,224

 
$
5,816

 
$
7,335

 
$
3,432

 
$
2,050

 
$
7,148

 
$
40,005

Period-end allowance allocated to:
Loans individually evaluated for impairment
 
$
1,342

 
$
—

 
$
1,464

 
$
772

 
$
869

 
$
195

 
$
4,642

Loans collectively evaluated for impairment
 
12,587

 
5,783

 
5,714

 
2,595

 
1,147

 
6,949

 
34,775

Acquired loans evaluated for impairment
 
295

 
33

 
157

 
65

 
34

 
4

 
588

Ending balance
 
$
14,224

 
$
5,816

 
$
7,335

 
$
3,432

 
$
2,050

 
$
7,148

 
$
40,005

Period-end loan balances evaluated for:
Loans individually evaluated for impairment (2)
 
$
14,845

 
$
3,432

 
$
10,941

 
$
4,808

 
$
14,023

 
$
8,396

 
$
56,445

Loans collectively evaluated for impairment
 
1,171,831

 
945,919

 
921,069

 
252,637

 
157,653

 
439,273

 
3,888,382

Acquired nonimpaired loans
 
130,986

 
148,686

 
204,809

 
20,340

 
80,074

 
44,902

 
629,797

Acquired impaired loans
 
6,002

 
11,839

 
10,187

 
2,021

 
852

 
246

 
31,147

Ending balance (3)
 
$
1,323,664

 
$
1,109,876

 
$
1,147,006

 
$
279,806

 
$
252,602

 
$
492,817

 
$
4,605,771

(1) 
Period-end loan balance excludes reverse mortgages, at fair value of $21.6 million.
(2) 
The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $18.1 million for the period ending June 30, 2017. Accruing troubled debt restructured loans are considered impaired loans.
(3) 
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 six months ended June 30, 2016:
(Dollars in thousands)
 
Commercial
 
Owner -
occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Residential(1)
 
Consumer
 
Complexity Risk(2)
 
Total
Three months ended June 30, 2016
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
11,482

 
$
6,702

 
$
6,516

 
$
3,609

 
$
2,269

 
$
5,954

 
$
1,024

 
$
37,556

Charge-offs
 
(727
)
 
(141
)
 
(61
)
 
(3
)
 
(15
)
 
(818
)
 
—

 
(1,765
)
Recoveries
 
224

 
13

 
34

 
—

 
57

 
373

 
—

 
701

Provision (credit)
 
353

 
133

 
1,598

 
(352
)
 
22

 
317

 
(1,024
)
 
1,047

Provision for acquired loans
 
70

 
16

 
48

 
54

 
19

 
—

 
—

 
207

Ending balance
 
$
11,402

 
$
6,723

 
$
8,135

 
$
3,308

 
$
2,352

 
$
5,826

 
$
—

 
$
37,746

Six months ended June 30, 2016
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
11,156

 
$
6,670

 
$
6,487

 
$
3,521

 
$
2,281

 
$
5,964

 
$
1,010

 
$
37,089

Charge-offs
 
(906
)
 
(141
)
 
(78
)
 
(29
)
 
(29
)
 
(1,449
)
 
—

 
(2,632
)
Recoveries
 
334

 
51

 
113

 
46

 
79

 
632

 
—

 
1,255

Provision (credit)
 
837

 
127

 
1,561

 
(280
)
 
2

 
717

 
(1,010
)
 
1,954

Provision for acquired loans
 
(19
)
 
16

 
52

 
50

 
19

 
(38
)
 


 
80

Ending balance
 
$
11,402

 
$
6,723

 
$
8,135

 
$
3,308

 
$
2,352

 
$
5,826

 
$
—

 
$
37,746

Period-end allowance allocated to:
Loans individually evaluated for impairment
 
$
426

 
$
—

 
$
—

 
$
211

 
$
992

 
$
205

 
$
—

 
$
1,834

Loans collectively evaluated for impairment
 
10,923

 
6,686

 
8,009

 
3,038

 
1,340

 
5,621

 
—

 
35,617

Acquired loans evaluated for impairment
 
53

 
37

 
126

 
59

 
20

 
—

 
—

 
295

Ending balance
 
$
11,402

 
$
6,723

 
$
8,135

 
$
3,308

 
$
2,352

 
$
5,826

 
$
—

 
$
37,746

Period-end loan balances:
Loans individually evaluated for impairment (3)
 
$
2,558

 
$
838

 
$
1,702

 
$
1,419

 
$
14,416

 
$
7,965

 
$
—

 
$
28,898

Loans collectively evaluated for impairment
 
1,045,918

 
857,270

 
869,771

 
181,440

 
153,811

 
352,675

 
—

 
3,460,885

Acquired nonimpaired loans
 
58,423

 
70,465

 
108,212

 
12,086

 
67,484

 
13,990

 
—

 
330,660

Acquired impaired loans
 
1,711

 
9,757

 
10,560

 
4,094

 
946

 
4

 
—

 
27,072

Ending balance (4)
 
$
1,108,610

 
$
938,330

 
$
990,245

 
$
199,039

 
$
236,657

 
$
374,634

 
$
—

 
$
3,847,515

 
(1) 
Period-end loan balance excludes reverse mortgages, at fair value of $25.3 million.
(2) 
Represents the portion of the allowance for loan losses established to capture factors not already included in other components in our allowance for loan losses methodology.
(3) 
The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $14.1 million for the period ending June 30, 2016. Accruing troubled debt restructured loans are considered impaired loans.
(4) 
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:

 
 
June 30, 2017
(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
 
$
901

 
$
6

 
$
—

 
$
907

 
$
1,302,051

 
$
6,002

 
$
14,704

 
$
1,323,664

Owner-occupied commercial
 
—

 
—

 
—

 
—

 
1,094,605

 
11,839

 
3,432

 
1,109,876

Commercial mortgages
 
237

 
—

 
—

 
237

 
1,125,854

 
10,187

 
10,728

 
1,147,006

Construction
 
—

 
—

 
—

 
—

 
276,723

 
2,021

 
1,062

 
279,806

Residential(1)
 
2,411

 
348

 
—

 
2,759

 
244,031

 
852

 
4,960

 
252,602

Consumer
 
598

 
488

 
92

 
1,178

 
487,897

 
246

 
3,496

 
492,817

Total (2)
 
$
4,147

 
$
842

 
$
92

 
$
5,081

 
$
4,531,161

 
$
31,147

 
$
38,382

 
$
4,605,771

% of Total Loans
 
0.09
%
 
0.02
%
 
—
%
 
0.11
%
 
98.38
%
 
0.68
%
 
0.83
%
 
100
%
(1) 
Residential accruing current balances excludes reverse mortgages at fair value of $21.6 million.
(2) 
The balances above include a total of $629.8 million of acquired nonimpaired loans.
 
 
December 31, 2016
(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
 
$
1,507

 
$
278

 
$
—

 
$
1,785

 
$
1,277,748

 
$
6,183

 
$
2,015

 
$
1,287,731

Owner-occupied commercial
 
116

 
540

 
—

 
656

 
1,063,306

 
12,122

 
2,078

 
1,078,162

Commercial mortgages
 
167

 
—

 
—

 
167

 
1,143,180

 
10,386

 
9,821

 
1,163,554

Construction
 
132

 
—

 
—

 
132

 
218,886

 
3,694

 
—

 
222,712

Residential(1)
 
3,176

 
638

 
153

 
3,967

 
257,234

 
860

 
4,967

 
267,028

Consumer
 
392

 
346

 
285

 
1,023

 
444,642

 
369

 
3,995

 
450,029

Total(2)
 
$
5,490

 
$
1,802

 
$
438

 
$
7,730

 
$
4,404,996

 
$
33,614

 
$
22,876

 
$
4,469,216

% of Total Loans
 
0.12
%
 
0.04
%
 
0.01
%
 
0.17
%
 
98.57
%
 
0.75
%
 
0.51
%
 
100
%
(1) 
Residential accruing current balances excludes reverse mortgages, at fair value of $22.6 million.
(2) 
The balances above include a total of $724.1 million of acquired nonimpaired loans
Analysis of Impaired Loans
The following tables provide an analysis of our impaired loans at June 30, 2017 and December 31, 2016:
 
 
 
June 30, 2017
(Dollars in thousands)
 
Ending
Loan
Balances
 
Loans with
No Related
Reserve (1)
 
Loans with
Related
Reserve
 
Related Reserve
 
Contractual
Principal Balances
 
Average Loan Balances
Commercial
 
$
16,906

 
$
2,632

 
$
14,274

 
$
1,637

 
$
18,726

 
$
9,771

Owner-occupied commercial
 
8,232

 
3,432

 
4,800

 
33

 
8,662

 
5,346

Commercial mortgages
 
13,821

 
2,997

 
10,824

 
1,621

 
19,091

 
11,256

Construction
 
6,114

 
1,779

 
4,335

 
837

 
6,208

 
3,918

Residential
 
14,605

 
8,167

 
6,438

 
903

 
17,415

 
14,778

Consumer
 
8,436

 
7,234

 
1,202

 
199

 
11,300

 
8,319

Total (2)
 
$
68,114

 
$
26,241

 
$
41,873

 
$
5,230

 
$
81,402

 
$
53,388

(1) 
Reflects loan balances at or written down to their remaining book balance.
(2) 
The above includes acquired impaired loans totaling $11.7 million in the ending loan balance and $12.9 million in the contractual principal balance of the total acquired impaired loan portfolio of $31.1 million
 
 
December 31, 2016
(Dollars in thousands)
 
Ending
Loan
Balances
 
Loans with
No
Related
Reserve (1)
 
Loans with
Related
Reserve
 
Related
Reserve
 
Contractual
Principal
Balances
 
Average
Loan
Balances
Commercial
 
$
4,250

 
$
1,395

 
$
2,855

 
$
505

 
$
5,572

 
$
5,053

Owner-occupied commercial
 
4,650

 
2,078

 
2,572

 
15

 
5,129

 
3,339

Commercial mortgages
 
15,065

 
4,348

 
10,717

 
1,433

 
20,716

 
7,323

Construction
 
3,662

 
—

 
3,662

 
303

 
3,972

 
2,376

Residential
 
14,256

 
7,122

 
7,134

 
934

 
17,298

 
15,083

Consumer
 
8,021

 
6,561

 
1,460

 
215

 
11,978

 
7,910

Total (2)
 
$
49,904

 
$
21,504

 
$
28,400

 
$
3,405

 
$
64,665

 
$
41,084

(1) 
Reflects loan balances at or written down to their remaining book balance.
(2) 
The above includes acquired impaired loans totaling $12.8 million in the ending loan balance and $15.0 million in the contractual principal balance of the total acquired impaired loan portfolio of $33.6 million.
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
 
 
 
June 30, 2017
(Dollars in thousands)
 
Commercial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Total
Commercial(1)
 
 
 
 
 
 
 
 
 
 
Amount
 
%
Risk Rating:
 
 
 
 
 
 
 
 
 
 
 
 
Special mention
 
$
18,225

 
$
6,983

 
$
8,900

 
$
—

 
$
34,108

 
 
Substandard:
 
 
 
 
 
 
 
 
 
 
 
 
Accrual
 
42,217

 
20,893

 
67

 
4,506

 
67,683

 
 
Nonaccrual
 
13,362

 
3,432

 
9,264

 
289

 
26,347

 
 
Doubtful
 
1,342

 
—

 
1,464

 
772

 
3,578

 
 
Total Special Mention and Substandard
 
75,146

 
31,308

 
19,695

 
5,567

 
131,716

 
3
%
Acquired impaired
 
6,002

 
11,839

 
10,187

 
2,021

 
30,049

 
1
%
Pass
 
1,242,516

 
1,066,729

 
1,117,124

 
272,218

 
3,698,587

 
96
%
Total
 
$
1,323,664

 
$
1,109,876

 
$
1,147,006

 
$
279,806

 
$
3,860,352

 
100
%
(1) 
 Table includes $504.8 million of acquired nonimpaired loans as of June 30, 2017.

 
 
December 31, 2016
(Dollars in thousands)
 
Commercial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Total
Commercial(1)
 
 
 
 
 
 
 
 
 
 
Amount
 
%
Risk Rating:
 
 
 
 
 
 
 
 
 
 
 
 
Special mention
 
$
17,630

 
$
11,419

 
$
34,198

 
$
—

 
$
63,247

 
 
Substandard:
 
 
 
 
 
 
 
 
 
 
 
 
Accrual
 
45,067

 
19,871

 
239

 
2,193

 
67,370

 
 
Nonaccrual
 
1,693

 
2,078

 
8,574

 
—

 
12,345

 
 
Doubtful
 
322

 
—

 
1,247

 
—

 
1,569

 
 
Total Special Mention and Substandard
 
64,712

 
33,368

 
44,258

 
2,193

 
144,531

 
4
%
Acquired impaired
 
6,183

 
12,122

 
10,386

 
3,694

 
32,385

 
1
%
Pass
 
1,216,836

 
1,032,672

 
1,108,910

 
216,825

 
3,575,243

 
95
%
Total
 
$
1,287,731

 
$
1,078,162

 
$
1,163,554

 
$
222,712

 
$
3,752,159

 
100
%
(1) 
Table includes $573.5 million of acquired nonimpaired loans as of December 31, 2016.
Schedule of Consumer Credit Exposure
Residential and Consumer Credit Exposure
 
(Dollars in thousands)
 
Residential(2)
 
Consumer
 
Total Residential and Consumer(3)
 
 
June 30,
 
December 31,
 
June 30,
 
December 31,
 
June 30, 2017
 
December 31, 2016
 
 
2017
 
2016
 
2017
 
2016
 
Amount
 
Percent
 
Amount
 
Percent
Nonperforming(1)
 
$
14,023

 
$
13,547

 
$
8,396

 
$
7,863

 
$
22,419

 
3
%
 
$
21,410

 
3
%
Acquired impaired loans
 
852

 
860

 
246

 
369

 
1,098

 
—
%
 
1,229

 
—
%
Performing
 
237,727

 
252,621

 
484,175

 
441,797

 
721,902

 
97
%
 
694,418

 
97
%
Total
 
$
252,602

 
$
267,028

 
$
492,817

 
$
450,029

 
$
745,419

 
100
%
 
$
717,057

 
100
%
(1) 
Includes $14.0 million as of June 30, 2017 and $12.4 million as of December 31, 2016 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 $21.6 million and $22.6 million of reverse mortgages at fair value as of June 30, 2017 and December 31, 2016, respectively.
(3) 
Total includes $125.0 million and $150.5 million in acquired nonimpaired loans as of June 30, 2017 and December 31, 2016, respectively.
Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated
The following table presents loans identified as TDRs during the three and six months ended June 30, 2017 and 2016.
 
 
 
Three Months Ended June 30,
 
 
2017
 
2016
(Dollars in thousands)
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
Commercial
 
$
338

 
$
338

 
$
141

 
$
141

Owner-occupied commercial
 
—

 
—

 
—

 
—

Commercial mortgages
 
—

 
—

 
—

 
—

Construction
 
124

 
124

 
—

 
—

Residential
 
—

 
—

 
112

 
112

Consumer
 
674

 
674

 
240

 
240

Total
 
$
1,136

 
$
1,136

 
$
493

 
$
493


 
 
Six Months Ended June 30,
 
 
2017
 
2016
(Dollars in thousands)
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
Commercial
 
$
781

 
$
781

 
$
1,125

 
$
1,125

Owner-occupied commercial
 
3,071

 
3,071

 
—

 
—

Commercial mortgages
 
—

 
—

 
—

 
—

Construction
 
1,836

 
1,836

 
—

 
—

Residential
 
242

 
242

 
726

 
726

Consumer
 
1,258

 
1,258

 
455

 
455

Total
 
$
7,188

 
$
7,188

 
$
2,306

 
$
2,306

The following table presents the balance of TDRs as of the indicated dates:
(Dollars in thousands)
 
June 30, 2017
 
December 31, 2016
Performing TDRs
 
$
18,109

 
$
14,336

Nonperforming TDRs
 
10,657

 
8,451

    Total TDRs
 
$
28,766

 
$
22,787

The following table presents information regarding the types of loan modifications made for the six months ended June 30, 2017:
 
 
Contractual payment reduction and term extension
 
Maturity Date Extension
 
Discharged in bankruptcy
 
Other (1)
 
Total
Commercial
 
1

 
1

 
—

 
—

 
2

Owner-occupied commercial
 
—

 
1

 
—

 
—

 
1

Construction
 
—

 
2

 
—

 
1

 
3

Residential
 
—

 
—

 
1

 
—

 
1

Consumer
 
—

 
—

 
7

 
4

 
11

 
 
1

 
4

 
8

 
5

 
18

(1) 
Other includes underwriting exceptions.