Allowance for Credit Losses and Credit Quality (Tables)

3 Months Ended

Mar. 31, 2013

Schedule of Allowance for Loan Losses for Covered Loan and Non-Covered Loan Portfolios

A summary of changes in the allowance for credit losses for the covered loan and non-covered loan portfolios for the three months ended March 31, 2013 and 2012 follows.

(Dollars in thousands)	March 31, 2013
	Non-covered loans
	Excluding Acquired Loans			Acquired Loans			Covered loans			Total
Balance, beginning of period	$	74,211		$	8,816		$	168,576		$	251,603
(Reversal of) Provision for credit losses before benefit attributable to FDIC loss share agreements		(4,002	)		596			(45,385	)		(48,791	)
Adjustment attributable to FDIC loss share agreements		—			—			45,414			45,414
Net (reversal of) provision for credit losses		(4,002	)		596			29			(3,377	)
Decrease in FDIC loss share receivable		—			—			(45,414	)		(45,414	)
Transfer of balance to OREO		—			(559	)		(11,318	)		(11,877	)
Loans charged-off		(2,062	)		—			(41	)		(2,103	)
Recoveries		893			—			—			893
Balance, end of period	$	69,040		$	8,853		$	111,832		$	189,725

(Dollars in thousands)	March 31, 2012
	Non-covered loans
	Excluding Acquired Loans			Acquired Loans			Covered loans			Total
Balance, beginning of period	$	74,861		$	—		$	118,900		$	193,761
Provision for credit losses before benefit attributable to FDIC loss share agreements		1,004			1,106			1,431			3,541
Adjustment attributable to FDIC loss share agreements		—			—			(684	)		(684	)
Net provision for credit losses		1,004			1,106			747			2,857
Increase in FDIC loss share receivable		—			—			684			684
Transfer of balance to OREO		—			(6	)		(5,357	)		(5,363	)
Loans charged-off		(2,111	)		(160	)		(13,266	)		(15,537	)
Recoveries		772			1			17			790
Balance, end of period	$	74,526		$	941		$	101,725		$	177,192

Schedule of Allowance for Loan Losses for Non-Covered Loans, by Loan Portfolio

A summary of changes in the allowance for credit losses for non-covered loans, by loan portfolio type, for the three months ended March 31, 2013 and 2012 is as follows:

(Dollars in thousands)	Commercial Real Estate			Commercial Business			Consumer			Mortgage			Unallocated		Total
March 31, 2013
Allowance for credit losses
Balance, beginning of period	$	38,264		$	28,721		$	13,917		$	2,125		$	—	$	83,027
(Reversal of) Provision for loan losses		(1,804	)		(646	)		(1,374	)		418			—		(3,406	)
Transfer of balance to OREO		(285	)		—			(7	)		(267	)		—		(559	)
Loans charged off		(413	)		(225	)		(1,183	)		(241	)		—		(2,062	)
Recoveries		56			188			618			31			—		893
Balance, end of period	$	35,818		$	28,038		$	11,971		$	2,066		$	—	$	77,893
Allowance on loans individually evaluated for impairment	$	35		$	116		$	41		$	137		$	—	$	329
Allowance on loans collectively evaluated for impairment		35,783			27,922			11,930			1,929			—		77,564
Loans, net of unearned income
Balance, end of period	$	3,020,071		$	2,534,612		$	1,734,830		$	301,289		$	—	$	7,590,802
Balance, end of period: Loans individually evaluated for impairment		27,271			2,958			312			1,058			—		31,599
Balance, end of period: Loans collectively evaluated for impairment		2,992,800			2,531,654			1,734,518			300,231			—		7,559,203
Balance, end of period: Loans acquired with deteriorated credit quality		50,503			3,339			4,276			383			—		58,501

(Dollars in thousands)	Commercial Real Estate			Commercial Business			Consumer			Mortgage			Unallocated		Total
March 31, 2012
Allowance for credit losses
Balance, beginning of period	$	35,604		$	25,705		$	12,655		$	897		$	—	$	74,861
(Reversal of) Provision for credit losses		(860	)		2,065			1,024			(119	)		—		2,110
Transfer of balance to OREO		(6	)		—			—			—			—		(6	)
Loans charged off		(803	)		(31	)		(1,274	)		(163	)		—		(2,271	)
Recoveries		128			31			604			10			—		773
Balance, end of period	$	34,063		$	27,770		$	13,009		$	625		$	—	$	75,467
Allowance on loans individually evaluated for impairment	$	1,590		$	202		$	—		$	168		$	—	$	1,960
Allowance on loans collectively evaluated for impairment		32,473			27,568			13,009			457			—		73,507
Loans, net of unearned income
Balance, end of period	$	2,580,727		$	2,020,510		$	1,353,404		$	263,003		$	—	$	6,217,644
Balance, end of period: Loans individually evaluated for impairment		33,952			6,486			228			1,186			—		41,852
Balance, end of period: Loans collectively evaluated for impairment		2,546,775			2,014,024			1,353,176			261,817			—		6,175,792
Balance, end of period: Loans acquired with deteriorated credit quality		15,292			24,193			5,640			—			—		45,125

Schedule of Allowance for Loan Losses for Covered Loans, by Loan Portfolio

A summary of changes in the allowance for credit losses for covered loans, by loan portfolio type, for the three months ended March 31, 2013 and 2012 is as follows:

(Dollars in thousands)	Commercial Real Estate			Commercial Business			Consumer			Mortgage			Unallocated		Total
March 31, 2013
Allowance for credit losses
Balance, beginning of period	$	100,871		$	11,375		$	33,764		$	22,566		$	—	$	168,576
(Reversal of) Provision for credit losses		29			—			—			—			—		29
Decrease in FDIC loss share receivable		(23,001	)		(1,601	)		(15,905	)		(4,907	)		—		(45,414	)
Transfer of balance to OREO		(9,729	)		—			—			(1,589	)		—		(11,318	)
Loans charged off		(41	)		—			—			—			—		(41	)
Recoveries		—			—			—			—			—		—
Balance, end of period	$	68,129		$	9,774		$	17,859		$	16,070		$	—	$	111,832
Allowance on loans individually evaluated for impairment	$	—		$	—		$	—		$	—		$	—	$	—
Allowance on loans collectively evaluated for impairment		68,129			9,774			17,859			16,070			—		111,832
Loans, net of unearned income
Balance, end of period	$	567,621		$	87,032		$	172,192		$	177,328		$	—	$	1,004,173
Balance, end of period: Loans individually evaluated for impairment		—			—			—			—			—		—
Balance, end of period: Loans collectively evaluated for impairment		567,621			87,032			172,192			177,328			—		1,004,173
Balance, end of period: Loans acquired with deteriorated credit quality		146,932			2,832			22,685			18,388			—		190,837

(Dollars in thousands)	Commercial Real Estate			Commercial Business			Consumer			Mortgage			Unallocated		Total
March 31, 2012
Allowance for credit losses
Balance, beginning of period	$	69,175		$	9,788		$	18,753		$	21,184		$	—	$	118,900
(Reversal of) Provision for credit losses		1,386			794			578			(2,011	)		—		747
Increase (decrease) in FDIC loss share receivable		1,268			728			529			(1,841	)		—		684
Transfer of balance to OREO		(3,179	)		(4	)		(797	)		(1,377	)		—		(5,357	)
Loans charged off		(13,126	)		—			(9	)		(131	)		—		(13,266	)
Recoveries		14			—			3			—			—		17
Balance, end of period	$	55,538		$	11,306		$	19,057		$	15,824		$	—	$	101,725
Allowance on loans individually evaluated for impairment	$	—		$	—		$	—		$	—		$	—	$	—
Allowance on loans collectively evaluated for impairment		55,538			11,306			19,057			15,824			—		101,725
Loans, net of unearned income
Balance, end of period	$	725,470		$	104,102		$	194,539		$	236,551		$	—	$	1,260,662
Balance, end of period: Loans individually evaluated for impairment		—			—			—			—			—		—
Balance, end of period: Loans collectively evaluated for impairment		725,470			104,102			194,539			236,551			—		1,260,662
Balance, end of period: Loans acquired with deteriorated credit quality		184,830			4,005			27,596			30,694			—		247,125

Investment in Covered Loans and Non-Covered Loans by Credit Quality Indicator

The Company’s investment in non-covered loans by credit quality indicator as of March 31, 2013 and December 31, 2012 is presented in the following tables.

(Dollars in thousands)	Non-covered loans excluding acquired loans
	Commercial Real Estate Construction				Commercial Real Estate- Other				Commercial Business
Credit quality indicator by asset risk classification	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Pass	$	307,334	$	269,842	$	2,197,301	$	2,162,989	$	2,405,197	$	2,295,788
Special Mention		14,016		16,767		33,328		40,547		19,896		21,640
Substandard		7,516		7,067		40,113		47,710		42,240		49,958
Doubtful		—		—		398		398		48		48
Total		328,866		293,676		2,271,140		2,251,644		2,467,381		2,367,434
Discount		—		—		—		—		—		—
Non-covered commercial loans, net	$	328,866	$	293,676	$	2,271,140	$	2,251,644	$	2,467,381	$	2,367,434

	Mortgage - Prime				Mortgage - Subprime
Credit risk by payment status	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Current	$	176,807	$	185,843	$	88,799	$	60,454
Past due greater than 30 days		11,871		10,986		7		—
Total		188,678		196,829		88,806		60,454
Discount		—		—		—		—
Non-covered mortgage loans, net	$	188,678	$	196,829	$	88,806	$	60,454

	Indirect Automobile				Credit Card
Credit risk by payment status	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Current	$	335,953	$	320,148	$	50,169	$	51,117
Past due greater than 30 days		2,236		2,818		654		605
Total	$	338,189	$	322,966	$	50,823	$	51,722

	Home Equity				Consumer - Other
Credit risk by payment status	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Current	$	1,016,663	$	991,766	$	231,139	$	201,161
Past due greater than 30 days		8,553		8,872		745		981
Total		1,025,216		1,000,638		231,884		202,142
Discount		—		—		—		—
Non-covered consumer loans, net	$	1,025,216	$	1,000,638	$	231,884	$	202,142

Schedule of Investment in Impaired Loan

Information on the Company’s investment in impaired loans is presented in the following tables as of and for the periods indicated.

(Dollars in thousands)	At March 31, 2013							At December 31, 2012
	Recorded Investment		Unpaid Principal Balance		Related Allowance			Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Commercial Loans
Real Estate	$	29,043	$	29,043	$	—		$	26,151	$	26,151	$	—
Business		2,926		2,926		—			1,824		1,824		—
With an allowance recorded
Mortgage Loans
Residential - Prime	$	9,037	$	9,216	$	(179	)	$	9,861	$	10,070	$	(209	)
Residential - Subprime		—		—		—			—		—		—
Commercial Loans
Real Estate		145		156		(11	)		3,464		3,663		(199	)
Business		309		449		(140	)		1,334		1,810		(476	)
Consumer Loans
Indirect automobile		978		982		(4	)		865		868		(3	)
Credit card		394		403		(9	)		413		424		(11	)
Home equity		7,343		7,434		(91	)		5,860		5,951		(91	)
Other		346		349		(3	)		307		310		(3	)
Total
Mortgage Loans	$	9,037	$	9,216	$	(179	)	$	9,861	$	10,070		(209	)
Commercial Loans		32,423		32,574		(151	)		32,773		33,448		(675	)
Consumer Loans		9,061		9,168		(107	)		7,445		7,553		(108	)

(Dollars in thousands)	For the Three Months Ended March 31, 2013				For the Three Months Ended March 31, 2012
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial Loans
Real Estate	$	30,510	$	28	$	32,007	$	—
Business		3,030		24		6,530		—
With an allowance recorded
Mortgage Loans
Residential - Prime		9,213		—		5,389		—
Residential - Subprime		—		—		—		—
Commercial Loans
Real Estate		157		2		4,657		32
Business		451		5		246		1
Consumer Loans
Indirect automobile		1,267		—		862		—
Credit card		405		—		423		—
Home equity		6,910		—		6,575		—
Other		497		—		748		—
Total
Mortgage Loans		9,213		—		5,389		—
Commercial Loans		34,148		59		43,440		33
Consumer Loans		9,079		—		8,608		—

Covered Loans [Member]

Investment in Covered Loans and Non-Covered Loans by Credit Quality Indicator

The Company’s investment in covered loans by credit quality indicator as of March 31, 2013 and December 31, 2012 is presented in the following table.

(Dollars in thousands)	Covered loans
March 31, 2013	Commercial
Credit quality indicator by asset risk classification	Real Estate - Construction		Real Estate  - Other		Business		Total
Pass	$	48,695	$	185,652	$	34,212	$	268,559
Special Mention		9,568		62,980		3,039		75,587
Substandard		79,496		241,459		42,103		363,058
Doubtful		607		8,241		443		9,291
Total	$	138,366	$	498,332	$	79,797	$	716,495
Discount								(61,842	)
Covered commercial loans, net							$	654,653

	Mortgage
Credit risk by payment status	Prime		Subprime		Total
Current	$	177,811	$	—	$	177,811
Past due greater than 30 days		44,777		—		44,777
Total	$	222,588	$	—	$	222,588
Discount						(45,260	)
Covered mortgage loans, net					$	177,328

	Consumer and Other
Credit risk by payment status	Indirect Automobile		Credit Card		Home Equity		Other		Total
Current	$	—	$	784	$	166,129	$	1,084	$	167,997
Past due greater than 30 days		—		35		54,924		1,637		56,596
Total	$	—	$	819	$	221,053	$	2,721	$	224,593
Discount										(52,401	)
Covered consumer loans, net									$	172,192

(Dollars in thousands)	Covered loans
December 31, 2012	Commercial
Credit quality indicator by asset risk classification	Real Estate - Construction		Real Estate  - Other		Business		Total
Pass	$	46,201	$	201,261	$	38,552	$	286,014
Special Mention		9,888		65,498		8,600		83,986
Substandard		97,315		279,171		50,018		426,504
Doubtful		607		8,530		451		9,588
Total	$	154,011	$	554,460	$	97,621	$	806,092
Discount								(78,198	)
Covered commercial loans, net							$	727,894

	Mortgage
Credit risk by payment status	Prime		Subprime		Total
Current	$	183,795	$	—	$	183,795
Past Due greater than 30 days		52,379		—		52,379
Total	$	236,174	$	—	$	236,174
Discount						(49,010	)
Covered mortgage loans, net					$	187,164

	Consumer and Other
Credit risk by payment status	Indirect Automobile		Credit Card		Home Equity		Other		Total
Current	$	—	$	841	$	168,728	$	1,155	$	170,724
Past Due greater than 30 days		—		65		65,997		1,523		67,585
Total	$	—	$	906	$	234,725	$	2,678	$	238,309
Discount										(60,611	)
Covered consumer loans, net									$	177,698

Acquired Loans [Member]

Investment in Covered Loans and Non-Covered Loans by Credit Quality Indicator

The Company’s investment in non-covered loans by credit quality indicator as of March 31, 2013 and December 31, 2012 is presented in the following tables.

(Dollars in thousands)	Non-covered acquired loans
	Commercial Real Estate Construction						Commercial Real Estate- Other						Commercial Business
Credit quality indicator by asset risk classification	March 31, 2013			December 31, 2012			March 31, 2013			December 31, 2012			March 31, 2013			December 31, 2012
Pass	$	24,619		$	25,896		$	341,260		$	359,046		$	65,815		$	86,201
Special Mention		2,017			2,410			28,730			28,185			3,758			2,159
Substandard		5,392			5,228			76,232			85,420			3,914			4,808
Doubtful		—			—			4,409			218			931			2,209
Total		32,028			33,534			450,631			472,869			74,418			95,377
Discount		(4,154	)		(3,968	)		(58,440	)		(57,055	)		(7,187	)		(12,144	)
Non-covered commercial loans, net	$	27,874		$	29,566		$	392,191		$	415,814		$	67,231		$	83,233

	Mortgage - Prime					Mortgage - Subprime
Credit risk by payment status	March 31, 2013			December 31, 2012		March 31, 2013		December 31, 2012
Current	$	24,228		$	30,663	$	—	$	—
Past due greater than 30 days		779			779		—		—
Total		25,007			31,442		—		—
Premium (discount)		(1,202	)		1,315		—		—
Non-covered mortgage loans, net	$	23,805		$	32,757	$	—	$	—

	Indirect Automobile				Credit Card
Credit risk by payment status	March 31, 2013		December 31, 2012		March 31, 2013		December 31, 2012
Current	$	3,716	$	4,698	$	—	$	—
Past due greater than 30 days		212		321		—		—
Total		3 ,928		5,019
Premium (discount)		—		—		—		—
Non-covered consumer loans, net	$	3,928	$	5,019	$	—	$	—

	Home Equity						Consumer - Other
Credit risk by payment status	March 31, 2013			December 31, 2012			March 31, 2013			December 31, 2012
Current	$	68,305		$	73,658		$	17,631		$	21,746
Past due greater than 30 days		6,695			7,115			1,238			714
Total		75,000			80,773			18,869			22,460
Discount		(7,523	)		(4,498	)		(1,556	)		(6,805	)
Non-covered consumer loans, net	$	67,477		$	76,275		$	17,313		$	15,655