Allowance for Credit Losses and Credit Quality (Tables)

3 Months Ended

Mar. 31, 2015

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 is as follows:

	2015
	Non-covered loans
(Dollars in thousands)	Legacy Loans			Acquired Loans			Covered Loans			Total
Allowance for loans losses at beginning of period	$	76,174		$	9,193		$	44,764		$	130,131
Provision for loan losses before benefit attributable to FDIC loss share agreements		4,177			1,018			(1,702	)		3,493
Adjustment attributable to FDIC loss share arrangements		—			—			1,852			1,852
Net provision for loan losses		4,177			1,018			150			5,345
Adjustment attributable to FDIC loss share arrangements		—			—			(1,852	)		(1,852	)
Transfer of balance to OREO		—			5			(31	)		(26	)
Transfer of balance to non-covered		—			28,700			(28,700	)		—
Loans charged-off		(2,669	)		(3,650	)		(209	)		(6,528	)
Recoveries		1,091			144			8			1,243
Allowance for loans losses at end of period		78,773			35,410			14,130			128,313
Reserve for unfunded commitments at beginning of period		11,801			—			—			11,801
Provision for unfunded lending commitments		1,048			—			—			1,048
Reserve for unfunded commitments at end of period		12,849			—			—			12,849
Allowance for credit losses at end of period	$	91,622		$	35,410		$	14,130		$	141,162

	2014
	Non-covered loans
(Dollars in thousands)	Legacy Loans			Acquired Loans			Covered Loans			Total
Allowance for loans losses at beginning of period	$	67,342		$	4,557		$	71,175		$	143,074
Provision for (Reversal of) loan losses before benefit attributable to FDIC loss share agreements		1,996			(1,235	)		(3,534	)		(2,773	)
Adjustment attributable to FDIC loss share arrangements		—			—			4,876			4,876
Net (reversal of) provision for loan losses		1,996			(1,235	)		1,342			2,103
Adjustment attributable to FDIC loss share arrangements		—			—			(4,876	)		(4,876	)
Transfer of balance to OREO		—			(382	)		(4,549	)		(4,931	)
Loans charged-off		(2,544	)		(34	)		—			(2,578	)
Recoveries		1,530			242			38			1,810
Allowance for loans losses at end of period		68,324			3,148			63,130			134,602
Reserve for unfunded commitments at beginning of period		11,147			—			—			11,147
Provision for unfunded lending commitments		372			—			—			372
Reserve for unfunded commitments at end of period		11,519			—			—			11,519
Allowance for credit losses at end of period	$	79,843		$	3,148		$	63,130		$	146,121

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 is as follows:

	2015
	Commercial			Commercial			Residential
(Dollars in thousands)	Real Estate			Business			Mortgage			Consumer			Total
Allowance for loans losses at beginning of period	$	33,021			32,094			2,875			17,377		$	85,367
Provision for (Reversal of) loan losses		(1,024	)		2,205			1,539			2,475			5,195
Transfer of balance to OREO		(4	)		—			28			(19	)		5
Transfer of balance to non-covered		20,982			1,226			—			6,492			28,700
Loans charged off		(3,235	)		(565	)		(71	)		(2,448	)		(6,319	)
Recoveries		173			49			13			1,000			1,235
Allowance for loans losses at end of period		49,913			35,009			4,384			24,877			114,183
Reserve for unfunded commitments
Balance at beginning of period		3,439			5,260			168			2,934			11,801
(Reversal of) Provision for unfunded commitments		128			184			660			76			1,048
Balance at end of period		3,567			5,444			828			3,010			12,849
Allowance for credit losses at end of period	$	53,480		$	40,453		$	5,212		$	27,887		$	127,032
Allowance on loans individually evaluated for impairment	$	21		$	749		$	—		$	3		$	773
Allowance on loans collectively evaluated for impairment		49,892			34,260			4,384			24,874			113,410
Loans, net of unearned income:
Balance at end of period	$	5,132,162		$	3,739,861		$	1,032,519		$	2,717,799		$	12,622,341
Balance at end of period individually evaluated for impairment		20,077			12,593			—			693			33,363
Balance at end of period collectively evaluated for impairment		5,085,560			3,724,928			1,019,596			2,713,903			12,543,987
Balance at end of period acquired with deteriorated credit quality		26,525			2,340			12,923			3,203			44,991
	2014
	Commercial			Commercial			Residential
(Dollars in thousands)	Real Estate			Business			Mortgage			Consumer			Total
Allowance for loans losses at beginning of period	$	26,590		$	28,515		$	2,546		$	14,248		$	71,899
Provision for (Reversal of) loan losses		790			73			(278	)		176			761
Transfer of balance to OREO		(175	)		(149	)		(58	)		—			(382	)
Loans charged off		(599	)		(61	)		(48	)		(1,870	)		(2,578	)
Recoveries		846			33			13			880			1,772
Allowance for loans losses at end of period		27,452			28,411			2,175			13,434			71,472
Reserve for unfunded commitments at beginning of period		3,089			4,839			72			3,147			11,147
Provision for unfunded commitments		372			91			2,983			(3,074	)		372
Reserve for unfunded commitments at end of period		3,461			4,930			3,055			73			11,519
Allowance for credit losses at end of period	$	30,913		$	33,341		$	5,230		$	13,507		$	82,991
Allowance on loans individually evaluated for impairment	$	—		$	464		$	186		$	—		$	650
Allowance on loans collectively evaluated for impairment		27,452			27,947			1,989			13,434			70,822
Loans, net of unearned income:
Balance at end of period	$	3,607,349		$	2,948,088		$	450,881		$	1,970,681		$	8,976,999
Balance at end of period individually evaluated for impairment		7,905			5,108			1,058			253			14,324
Balance at end of period collectively evaluated for impairment		3,581,894			2,939,935			449,525			1,968,911			8,940,265
Balance at end of period acquired with deteriorated credit quality		17,550			3,045			298			1,517			22,410

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 is as follows:

	2015
	Commercial			Commercial			Residential
(Dollars in thousands)	Real Estate			Business			Mortgage			Consumer			Total
Allowance for loans losses at beginning of period	$	24,072			1,235			6,286			13,171		$	44,764
Provision for loan losses		44			—			99			7			150
(Decrease) Increase in FDIC loss share receivable		(22	)		(8	)		24			(1,846	)		(1,852	)
Transfer of balance to OREO		—			(1	)		(16	)		(14	)		(31	)
Transfer of balance to non-covered		(20,982	)		(1,226	)		—			(6,492	)		(28,700	)
Loans charged off		(209	)		—			—			—			(209	)
Recoveries		—			—			8			—			8
Allowance for loans losses at end of period	$	2,903		$	—		$	6,401		$	4,826		$	14,130
Allowance on loans individually evaluated for impairment	$	—		$	—		$	—		$	—		$	—
Allowance on loans collectively evaluated for impairment		2,903			—			6,401			4,826			14,130
Loans, net of unearned income:
Balance at end of period	$	25,508		$	12,132		$	131,767		$	81,713		$	251,120
Balance at end of period individually evaluated for impairment		—			—			—			—			—
Balance at end of period collectively evaluated for impairment		22,768			12,132			108,761			74,176			217,837
Balance at end of period acquired with deteriorated credit quality		2,740			—			23,006			7,537			33,283
	2014
	Commercial			Commercial			Residential
(Dollars in thousands)	Real Estate			Business			Mortgage			Consumer			Total
Allowance for loans losses at beginning of period	$	38,772		$	5,380		$	10,889		$	16,134		$	71,175
Provision for loan losses		731			102			205			304			1,342
(Decrease) Increase in FDIC loss share receivable		(5,629	)		(31	)		(166	)		950			(4,876	)
Transfer of balance to OREO		(1,866	)		(1,165	)		(315	)		(1,203	)		(4,549	)
Loans charged off		—			—			—			—			—
Recoveries		38			—			—			—			38
Allowance for loans losses at end of period	$	32,046		$	4,286		$	10,613		$	16,185		$	63,130
Allowance on loans individually evaluated for impairment		—			—			—			—			—
Allowance on loans collectively evaluated for impairment		32,046			4,286			10,613			16,185			63,130
Loans, net of unearned income:
Balance at end of period	$	345,384		$	41,695		$	149,202		$	128,014		$	664,295
Balance at end of period individually evaluated for impairment		—			—			—			—			—
Balance at end of period collectively evaluated for impairment		340,808			41,291			121,385			109,011			612,495
Balance at end of period acquired with deteriorated credit quality		4,576			404			27,817			19,003			51,800

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

Credit quality information in the tables below includes loans acquired at the gross loan balance, prior to the application of premiums/discounts, at March 31, 2015 and December 31, 2014.

	Legacy loans
	March 31, 2015										December 31, 2014
(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total		Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate - Construction	$	520,132	$	1,413	$	440	$	—	$	521,985	$	483,930	$	240	$	69	$	—	$	484,239
Commercial real estate - Other		3,228,538		53,850		28,017		208		3,310,613		3,161,593		49,847		22,217		162		3,233,819
Commercial business		3,222,102		22,163		32,112		1,889		3,278,266		3,245,912		7,330		28,965		1,933		3,284,140
Total	$	6,970,772	$	77,426	$	60,569	$	2,097	$	7,110,864	$	6,891,435	$	57,417	$	51,251	$	2,095	$	7,002,198

	Legacy loans
	March 31, 2015						December 31, 2014
(Dollars in thousands)	Current		30+ Days Past Due		Total		Current		30+ Days Past Due		Total
Residential mortgage - Prime	$	423,428	$	13,974	$	437,402	$	392,900	$	15,310	$	408,210
Residential mortgage - Subprime		112,431		3,982		116,413		115,889		3,595		119,484
Consumer - Home equity		1,322,849		12,541		1,335,390		1,278,865		12,111		1,290,976
Consumer - Indirect automobile		363,138		3,939		367,077		392,504		4,262		396,766
Consumer - Credit card		70,603		1,561		72,164		71,297		1,448		72,745
Consumer - Other		407,460		2,646		410,106		375,853		2,482		378,335
Total	$	2,699,909	$	38,643	$	2,738,552	$	2,627,308	$	39,208	$	2,666,516

Schedule of Investment in Legacy Impaired Loan

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

	March 31, 2015							December 31, 2014
			Unpaid							Unpaid
	Recorded		Principal		Related			Recorded		Principal		Related
(Dollars in thousands)	Investment		Balance		Allowance			Investment		Balance		Allowance
With no related allowance recorded:
Commercial real estate	$	16,648	$	16,648	$	—		$	6,680	$	6,680	$	—
Commercial business		1,656		1,656		—			2,483		2,483		—
Consumer - Home equity		676		676		—			682		682		—
With an allowance recorded:
Commercial real estate		2,921		2,945		(24	)		1,068		1,093		(25	)
Commercial business		11,455		12,207		(752	)		1,212		1,620		(408	)
Residential mortgage - Prime		11,103		11,166		(63	)		10,532		10,768		(236	)
Residential mortgage - Subprime		3,959		3,982		(23	)		3,579		3,595		(16	)
Consumer - Home equity		9,558		9,619		(61	)		7,121		7,165		(44	)
Consumer - Indirect automobile		1,404		1,415		(11	)		1,410		1,419		(9	)
Consumer - Credit card		1,277		1,300		(23	)		1,012		1,032		(20	)
Consumer - Other		872		883		(11	)		781		790		(9	)
Total	$	61,529	$	62,497	$	(968	)	$	36,560	$	37,327	$	(767	)
Total commercial loans	$	32,680	$	33,456	$	(776	)	$	11,443	$	11,876	$	(433	)
Total mortgage loans		15,062		15,148		(86	)		14,111		14,363		(252	)
Total consumer loans		13,787		13,893		(106	)		11,006		11,088		(82	)

	March 31, 2015				March 31, 2014
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(Dollars in thousands)	Investment		Recognized		Investment		Recognized
With no related allowance recorded:
Commercial real estate	$	16,608	$	7	$	7,493	$	—
Commercial business		1,690		18		2,107		—
Consumer - Home equity		679		7		255		—
With an allowance recorded:
Commercial real estate		3,011		—		1,223		8
Commercial business		12,377		—		3,331		20
Residential mortgage - Prime		11,314		—		8,834		—
Residential mortgage - Subprime		4,017		—		1,626		—
Consumer - Home equity		9,720		—		7,331		—
Consumer - Indirect automobile		1,658		—		1,474		—
Consumer - Credit card		1,194		—		370		—
Consumer - Other		971		—		491		—
Total	$	63,239	$	32	$	34,535	$	28
Total commercial loans	$	33,686	$	25	$	14,154	$	28
Total mortgage loans		15,331		—		10,460		—
Total consumer loans		14,222		7		9,921		—

Covered Loans [Member]

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

	Non-covered acquired loans
	March 31, 2015															December 31, 2014
(Dollars in thousands)	Pass		Special Mention		Sub- standard		Doubtful		Loss		Discount			Total		Pass		Special Mention		Sub- standard		Doubtful		Discount			Total
Commercial real estate - Construction	$	54,705	$	602	$	6,447	$	909	$	—	$	(987	)	$	61,676	$	24,118	$	2,006	$	4,624	$	—	$	(1,170	)	$	29,578
Commercial real estate - Other		1,183,950		18,391		74,368		1,110		—		(39,931	)		1,237,888		445,557		12,794		49,139		—		(39,119	)		468,371
Commercial business		453,171		3,799		7,411		823		34		(3,643	)		461,595		91,837		1,861		4,818		257		(5,224	)		93,549
Total	$	1,691,826	$	22,792	$	88,226	$	2,842	$	34	$	(44,561	)	$	1,761,159	$	561,512	$	16,661	$	58,581	$	257	$	(45,513	)	$	591,498

	Non-covered acquired loans
	March 31, 2015									December 31, 2014
(Dollars in thousands)	Current		30+ Days Past Due		Premium (discount)			Total		Current		30+ Days Past Due		Premium (discount)			Total
Residential mortgage - Prime	$	477,973	$	16,779	$	(16,048	)	$	478,704	$	418,552	$	11,858	$	(5,831	)	$	424,579
Consumer - Home equity		438,938		14,507		(11,805	)		441,640		216,310		9,808		(8,419	)		217,699
Consumer - Indirect automobile		277		25		(30	)		272		393		39		(40	)		392
Consumer - Other		91,527		2,655		(3,032	)		91,150		94,315		3,520		(4,217	)		93,618
Total	$	1,008,715	$	33,966	$	(30,915	)	$	1,011,766	$	729,570	$	25,225	$	(18,507	)	$	736,288

Acquired 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 is presented in the following table. Loan premiums/discounts in the tables below represent the adjustment of covered loans to net book value before allowance at the reporting date.

	Covered loans
	March 31, 2015											December 31, 2014
(Dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Total			Pass		Special Mention		Substandard		Doubtful		Total
Commercial real estate - Construction	$	602	$	865	$	22	$	—	$	1,489		$	34,731	$	1,928	$	8,008	$	—	$	44,667
Commercial real estate - Other		20,203		6,132		20,109		—		46,444			87,509		20,422		51,252		—		159,183
Commercial business		6,754		1,201		5,647		—		13,602			23,380		395		9,275		—		33,050
	$	27,559	$	8,198	$	25,778	$	—	$	61,535		$	145,620	$	22,745	$	68,535	$	—	$	236,900
Discount										(23,895	)										(16,514	)
Total									$	37,640										$	220,386

	Covered loans
	March 31, 2015									December 31, 2014
			30+ Days		Premium							30+ Days		Premium
(Dollars in thousands)	Current		Past Due		(discount)			Total		Current		Past Due		(discount)			Total
Residential mortgage - Prime	$	133,639	$	20,976	$	(22,848	)	$	131,767	$	140,628	$	22,058	$	(34,662	)	$	128,024
Consumer - Home equity		92,599		12,017		(23,558	)		81,058		99,478		16,542		(23,590	)		92,430
Consumer - Credit card		522		25		—			547		614		34		—			648
Consumer - Other		221		17		(130	)		108		337		18		2,701			3,056
Total	$	226,981	$	33,035	$	(46,536	)	$	213,480	$	241,057	$	38,652	$	(55,551	)	$	224,158