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ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION (Tables)
 9 Months Ended
Sep. 30, 2018
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, 2018:
(Dollars in thousands)
 
Commercial
 
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 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.



The following table provides the activity of the allowance for loan losses and loan balances for the three and nine months ended September 30, 2017:
(Dollars in thousands)
 
Commercial
 
Owner -
occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Residential(1)
 
Consumer
 
Total
Three months ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
14,224

 
$
5,816

 
$
7,335

 
$
3,432

 
$
2,050

 
$
7,148

 
$
40,005

Charge-offs
 
(1,603
)
 
(104
)
 
(1,196
)
 
(215
)
 
(59
)
 
(575
)
 
(3,752
)
Recoveries
 
417

 
12

 
16

 
301

 
11

 
295

 
1,052

Provision (credit)
 
2,128

 
(96
)
 
(231
)
 
427

 
(49
)
 
644

 
2,823

Provision for acquired loans
 
(7
)
 
104

 
(5
)
 
(28
)
 
9

 
—

 
73

Ending balance
 
$
15,159

 
$
5,732

 
$
5,919

 
$
3,917

 
$
1,962

 
$
7,512

 
$
40,201

Nine months ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
13,339

 
$
6,588

 
$
8,915

 
$
2,838

 
$
2,059

 
$
6,012

 
$
39,751

Charge-offs
 
(3,787
)
 
(296
)
 
(1,702
)
 
(346
)
 
(112
)
 
(2,606
)
 
(8,849
)
Recoveries
 
820

 
120

 
69

 
305

 
141

 
943

 
2,398

Provision (credit)
 
4,597

 
(802
)
 
(1,602
)
 
1,056

 
(146
)
 
3,177

 
6,280

Provision for acquired loans
 
190

 
122

 
239

 
64

 
20

 
(14
)
 
621

Ending balance
 
$
15,159

 
$
5,732

 
$
5,919

 
$
3,917

 
$
1,962

 
$
7,512

 
$
40,201

Period-end allowance allocated to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
 
$
1,220

 
$
—

 
$
131

 
$
—

 
$
858

 
$
198

 
$
2,407

Loans collectively evaluated for impairment
 
13,646

 
5,699

 
5,638

 
3,881

 
1,078

 
7,310

 
37,252

Acquired loans evaluated for impairment
 
293

 
33

 
150

 
36

 
26

 
4

 
542

Ending balance
 
$
15,159

 
$
5,732

 
$
5,919

 
$
3,917

 
$
1,962

 
$
7,512

 
$
40,201

Period-end loan balances:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment(2)
 
$
12,845

 
$
3,346

 
$
9,012

 
$
1,839

 
$
14,060

 
$
7,409

 
$
48,511

Loans collectively evaluated for impairment
 
1,249,027

 
941,296

 
943,699

 
271,447

 
148,715

 
472,488

 
4,026,672

Acquired nonimpaired loans
 
120,987

 
144,710

 
194,394

 
19,085

 
77,154

 
40,136

 
596,466

Acquired impaired loans
 
5,235

 
7,401

 
9,969

 
946

 
788

 
243

 
24,582

Ending balance(3)
 
$
1,388,094

 
$
1,096,753

 
$
1,157,074

 
$
293,317

 
$
240,717

 
$
520,276

 
$
4,696,231

 
(1) 
Period-end loan balance excludes reverse mortgages at fair value of $21.4 million.
(2) 
The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $14.9 million for the period ending September 30, 2017. 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, 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
 
$
1,324

 
$
144

 
$
2

 
$
1,470

 
$
1,484,007

 
$
2,070

 
$
19,128

 
$
1,506,675

Owner-occupied commercial
 
1,526

 
782

 
—

 
2,308

 
1,075,451

 
4,816

 
2,829

 
1,085,404

Commercial mortgages
 
674

 
263

 
—

 
937

 
1,117,184

 
8,951

 
6,209

 
1,133,281

Construction
 
—

 
—

 
—

 
—

 
329,847

 
737

 
2,903

 
333,487

Residential(1)
 
2,336

 
879

 
24

 
3,239

 
199,456

 
766

 
3,265

 
206,726

Consumer
 
612

 
174

 
185

 
971

 
650,226

 
153

 
2,354

 
653,704

Total(2)
 
$
6,472

 
$
2,242

 
$
211

 
$
8,925

 
$
4,856,171

 
$
17,493

 
$
36,688

 
$
4,919,277

% of Total Loans
 
0.13
%
 
0.05
%
 
—
%
 
0.18
%
 
98.72
%
 
0.36
%
 
0.75
%
 
100
%
(1) 
Residential accruing current balances excludes reverse mortgages at fair value of $16.6 million.
(2) 
The balances above include a total of $465.4 million acquired non-impaired loans.
 
 
December 31, 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
 
$
1,050

 
$
—

 
$
—

 
$
1,050

 
$
1,440,291

 
$
4,156

 
$
19,057

 
$
1,464,554

Owner-occupied commercial
 
2,069

 
233

 
—

 
2,302

 
1,067,488

 
5,803

 
3,654

 
1,079,247

Commercial mortgages
 
320

 
90

 
—

 
410

 
1,171,701

 
9,724

 
5,870

 
1,187,705

Construction
 
—

 
—

 
—

 
—

 
278,864

 
940

 
1,804

 
281,608

Residential(1)
 
2,058

 
731

 
356

 
3,145

 
225,434

 
784

 
4,124

 
233,487

Consumer
 
1,117

 
463

 
105

 
1,685

 
554,634

 
247

 
1,927

 
558,493

Total(2)
 
$
6,614

 
$
1,517

 
$
461

 
$
8,592

 
$
4,738,412

 
$
21,654

 
$
36,436

 
$
4,805,094

% of Total Loans
 
0.14
%
 
0.03
%
 
0.01
%
 
0.18
%
 
98.61
%
 
0.45
%
 
0.76
%
 
100
%
(1) 
Residential accruing current balances excludes reverse mortgages, at fair value of $19.8 million.
(2) 
The balances above include a total of $565.5 million acquired non-impaired loans
Analysis of Impaired Loans
The following tables provide an analysis of our impaired loans at September 30, 2018 and December 31, 2017:
 
 
 
September 30, 2018
(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
 
$
20,211

 
$
8,713

 
$
11,498

 
$
4,050

 
$
23,609

 
$
18,479

Owner-occupied commercial
 
4,502

 
2,553

 
1,949

 
27

 
4,766

 
5,099

Commercial mortgages
 
8,114

 
6,502

 
1,612

 
84

 
16,816

 
8,740

Construction
 
3,132

 
122

 
3,010

 
453

 
5,171

 
4,808

Residential
 
11,690

 
7,509

 
4,181

 
605

 
14,109

 
13,249

Consumer
 
8,289

 
7,264

 
1,025

 
174

 
9,015

 
7,862

Total(2)
 
$
55,938

 
$
32,663

 
$
23,275

 
$
5,393

 
$
73,486

 
$
58,237

(1) 
Reflects loan balances at or written down to their remaining book balance.
(2) 
The above includes acquired impaired loans totaling $4.1 million in the ending loan balance and $4.5 million in the contractual principal balance.
 
 
December 31, 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
 
$
20,842

 
$
3,422

 
$
17,420

 
$
3,861

 
$
23,815

 
$
15,072

Owner-occupied commercial
 
5,374

 
3,654

 
1,720

 
12

 
5,717

 
5,827

Commercial mortgages
 
7,598

 
4,487

 
3,111

 
112

 
16,658

 
12,630

Construction
 
6,292

 
6,023

 
269

 
33

 
6,800

 
4,523

Residential
 
14,181

 
8,282

 
5,899

 
796

 
17,015

 
14,533

Consumer
 
7,819

 
6,304

 
1,515

 
203

 
8,977

 
8,158

Total(2)
 
$
62,106

 
$
32,172

 
$
29,934

 
$
5,017

 
$
78,982

 
$
60,743

(1) 
Reflects loan balances at or written down to their remaining book balance.
(2) 
The above includes acquired impaired loans totaling $5.8 million in the ending loan balance and $6.8 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, 2018
 
 
Commercial and Industrial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Total
Commercial(1)
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
Amount
 
%
Risk Rating:
 
 
 
 
 
 
 
 
 
 
 
 
Special mention
 
$
21,315

 
$
32,123

 
$
10,806

 
$
—

 
$
64,244

 
 
Substandard:
 
 
 
 
 
 
 
 
 
 
 
 
Accrual
 
17,247

 
24,662

 
1,546

 
169

 
43,624

 
 
Nonaccrual
 
15,158

 
2,820

 
6,209

 
2,460

 
26,647

 
 
Doubtful
 
3,970

 
9

 
—

 
444

 
4,423

 
 
Total Special Mention and Substandard
 
57,690

 
59,614

 
18,561

 
3,073

 
138,938

 
3
%
Acquired impaired
 
2,070

 
4,816

 
8,951

 
737

 
16,574

 
1
%
Pass
 
1,446,915

 
1,020,974

 
1,105,769

 
329,677

 
3,903,335

 
96
%
Total
 
$
1,506,675

 
$
1,085,404

 
$
1,133,281

 
$
333,487

 
$
4,058,847

 
100
%
(1) 
 Table includes $380.5 million of acquired non-impaired loans as of September 30, 2018.

 
 
December 31, 2017
 
 
Commercial
 and Industrial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Total
Commercial(1)
(Dollars in thousands)
 
 
 
 
 
 
 
 
 
Amount
 
%
Risk Rating:
 
 
 
 
 
 
 
 
 
 
 
 
Special mention
 
$
22,789

 
$
16,783

 
$
—

 
$
—

 
$
39,572

 
 
Substandard:
 
 
 
 
 
 
 
 
 


 
 
Accrual
 
34,332

 
19,386

 
1,967

 
4,965

 
60,650

 
 
Nonaccrual
 
15,370

 
3,654

 
5,852

 
1,804

 
26,680

 
 
Doubtful
 
3,687

 
—

 
18

 
—

 
3,705

 
 
Total Special Mention and Substandard
 
76,178

 
39,823

 
7,837

 
6,769

 
130,607

 
3
%
Acquired impaired
 
4,156

 
5,803

 
9,724

 
940

 
20,623

 
1
%
Pass
 
1,384,220

 
1,033,621

 
1,170,144

 
273,899

 
3,861,884

 
96
%
Total
 
$
1,464,554

 
$
1,079,247

 
$
1,187,705

 
$
281,608

 
$
4,013,114

 
100
%
(1) 
Table includes $457.3 million of acquired non-impaired loans as of December 31, 2017.
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, 2018
 
December 31, 2017
(Dollars in thousands)
 
2018
 
2017
 
2018
 
2017
 
Amount
 
Percent
 
Amount
 
Percent
Nonperforming(1)
 
$
11,479

 
$
13,778

 
$
8,256

 
$
7,588

 
$
19,735

 
2
%
 
$
21,366

 
3
%
Acquired impaired loans
 
766

 
784

 
153

 
247

 
919

 
—
%
 
1,031

 
—
%
Performing
 
194,481

 
218,925

 
645,295

 
550,658

 
839,776

 
98
%
 
769,583

 
97
%
Total
 
$
206,726

 
$
233,487

 
$
653,704

 
$
558,493

 
$
860,430

 
100
%
 
$
791,980

 
100
%
(1) 
Includes $14.1 million as of September 30, 2018 and $15.3 million as of December 31, 2017 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 $16.6 million and $19.8 million of reverse mortgages at fair value as of September 30, 2018 and December 31, 2017, respectively.
(3) 
Total includes $85.0 million and $108.2 million in acquired non-impaired loans as of September 30, 2018 and December 31, 2017, respectively.
Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated
The following table presents information regarding the types of loan modifications made for the nine months ended September 30, 2018 and 2017:
 
 
September 30, 2018
 
September 30, 2017
 
 
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
 
6

 
—

 
—

 
—

 
6

 
1

 
1

 
—

 
—

 
2

Owner-occupied commercial
 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
—

 
1

Commercial Mortgages
 
2

 
1

 
—

 
—

 
3

 
—

 
—

 
—

 
—

 
—

Construction
 
—

 
1

 
—

 
—

 
1

 
—

 
2

 
—

 
1

 
3

Residential
 
4

 
—

 
—

 
—

 
4

 
2

 
—

 
3

 
—

 
5

Consumer
 
8

 
1

 
4

 
2

 
15

 
1

 
—

 
11

 
6

 
18

Total
 
20

 
3

 
4

 
2

 
29

 
4

 
4

 
14

 
7

 
29

(1) 
Other includes underwriting exceptions.
The following table presents loans identified as TDRs during the three and nine months ended September 30, 2018 and 2017.
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2018
 
2017
 
2018
 
2017
(Dollars in thousands)
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
Commercial
 
$
320

 
$
320

 
$
—

 
$
—

 
$
5,102

 
$
5,102

 
$
781

 
$
781

Owner-occupied commercial
 
—

 
—

 
—

 
—

 
—

 
—

 
3,071

 
3,071

Commercial mortgages
 
168

 
168

 
—

 
—

 
2,190

 
2,190

 
—

 
—

Construction
 
—

 
—

 
—

 
—

 
920

 
920

 
1,836

 
1,836

Residential
 
—

 
—

 
1,058

 
1,058

 
469

 
469

 
1,300

 
1,300

Consumer
 
113

 
113

 
609

 
609

 
1,236

 
1,236

 
1,867

 
1,867

Total
 
$
601

 
$
601

 
$
1,667

 
$
1,667

 
$
9,917

 
$
9,917

 
$
8,855

 
$
8,855


The following table presents the balance of TDRs as of the indicated dates:
(Dollars in thousands)
 
September 30, 2018
 
December 31, 2017
Performing TDRs
 
$
15,192

 
$
20,061

Nonperforming TDRs
 
14,604

 
9,627

Total TDRs
 
$
29,796

 
$
29,688