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Allowance for Credit Losses and Credit Quality (Tables)
 3 Months Ended
Mar. 31, 2017
Mar. 31, 2016
Receivables [Abstract]    
Schedule of Allowance for Loan Losses for Covered and Non-Covered Loan Portfolios  
A summary of changes in the allowance for credit losses for the three months ended March 31 is as follows:
 
2017
(Dollars in thousands)
Legacy Loans
 
Acquired Loans
 
Total
Allowance for credit losses
 
 
 
 
 
Allowance for loan losses at beginning of period
$
105,569

 
$
39,150

 
$
144,719

Provision for (Reversal of) loan losses
6,566

 
(412
)
 
6,154

Transfer of balance to OREO and other
—

 
73

 
73

Loans charged-off
(7,202
)
 
(89
)
 
(7,291
)
Recoveries
880

 
355

 
1,235

Allowance for loan losses at end of period
$
105,813

 
$
39,077

 
$
144,890

 
 
 
 
 
 
Reserve for unfunded commitments at beginning of period
$
11,241

 
$
—

 
$
11,241

Provision for unfunded lending commitments
419

 
—

 
419

Reserve for unfunded commitments at end of period
$
11,660

 
$
—

 
$
11,660

Allowance for credit losses at end of period
$
117,473

 
$
39,077

 
$
156,550

 
2016
 
Legacy Loans
 
Acquired Loans
 
Total
Allowance for credit losses
 
 
 
 
 
Allowance for loan losses at beginning of period
$
93,808

 
$
44,570

 
$
138,378

Provision for (Reversal of) loan losses before benefit attributable to FDIC loss share agreements
15,908

 
(1,261
)
 
14,647

Adjustment attributable to FDIC loss share arrangements
—

 
258

 
258

Net provision for (Reversal of) loan losses
15,908

 
(1,003
)
 
14,905

Adjustment attributable to FDIC loss share arrangements
—

 
(258
)
 
(258
)
Transfer of balance to OREO and other
—

 
(2,459
)
 
(2,459
)
Loans charged-off
(5,389
)
 
(171
)
 
(5,560
)
Recoveries
1,247

 
304

 
1,551

Allowance for loan losses at end of period
$
105,574

 
$
40,983

 
$
146,557

 
 
 
 
 
 
Reserve for unfunded commitments at beginning of period
$
14,145

 
$
—

 
$
14,145

Provision for (Reversal of) unfunded lending commitments
(112
)
 
—

 
(112
)
Reserve for unfunded commitments at end of period
$
14,033

 
$
—

 
$
14,033

Allowance for credit losses at end of period
$
119,607

 
$
40,983

 
$
160,590

A summary of changes in the allowance for credit losses for legacy loans, by loan portfolio type, for the three months ended March 31 is as follows:
 
2017
(Dollars in thousands)
Commercial Real Estate
 
Commercial and Industrial
 
Energy-related
 
Residential Mortgage
 
Consumer
 
Total
Allowance for loan losses at beginning of period
$
25,408

 
$
35,434

 
$
22,486

 
$
3,835

 
$
18,406

 
$
105,569

Provision for (Reversal of) loan losses
1,948

 
1,951

 
490

 
(623
)
 
2,800

 
6,566

Transfer of balance to OREO and other
—

 
—

 
—

 
—

 
—

 
—

Loans charged off
(95
)
 
(917
)
 
(2,845
)
 
(22
)
 
(3,323
)
 
(7,202
)
Recoveries
87

 
49

 
—

 
43

 
701

 
880

Allowance for loan losses at end of period
$
27,348

 
$
36,517

 
$
20,131

 
$
3,233

 
$
18,584

 
$
105,813

 
 
 
 
 
 
 
 
 
 
 
 
Reserve for unfunded commitments at beginning of period
$
3,206

 
$
3,535

 
$
1,003

 
$
657

 
$
2,840

 
$
11,241

Provision for (Reversal of) unfunded commitments
1,377

 
(83
)
 
(800
)
 
(49
)
 
(26
)
 
419

Reserve for unfunded commitments at end of period
$
4,583

 
$
3,452

 
$
203

 
$
608

 
$
2,814

 
$
11,660

Allowance on loans individually evaluated for impairment
$
1,222

 
$
13,860

 
$
10,446

 
$
98

 
$
1,679

 
$
27,305

Allowance on loans collectively evaluated for impairment
26,126


22,657

 
9,685

 
3,135

 
16,905

 
78,508

Loans, net of unearned income:
 
 
 
 
 
 
 
 
 
 
 
Balance at end of period
$
5,878,509

 
$
3,140,205

 
$
562,515

 
$
901,859

 
$
2,440,356

 
$
12,923,444

Balance at end of period individually evaluated for impairment
46,203

 
40,380

 
142,398

 
4,583

 
23,468

 
257,032

Balance at end of period collectively evaluated for impairment
5,832,306

 
3,099,825

 
420,117

 
897,276

 
2,416,888

 
12,666,412

 
2016
(Dollars in thousands)
Commercial Real Estate
 
Commercial and Industrial
 
Energy-related
 
Residential Mortgage
 
Consumer
 
Total
Allowance for loan losses at beginning of period
$
24,658

 
$
23,283

 
$
23,863

 
$
3,947

 
$
18,057

 
$
93,808

Provision for (Reversal of) loan losses
1,297

 
(2,431
)
 
14,533

 
(115
)
 
2,624

 
15,908

Loans charged off
(1,738
)
 
(225
)
 
—

 
(14
)
 
(3,412
)
 
(5,389
)
Recoveries
487

 
30

 
—

 
18

 
712

 
1,247

Allowance for loan losses at end of period
$
24,704

 
$
20,657

 
$
38,396

 
$
3,836

 
$
17,981

 
$
105,574

 
 
 
 
 
 
 
 
 
 
 
 
Reserve for unfunded commitments at beginning of period
$
4,160

 
$
3,448

 
$
2,665

 
$
830

 
$
3,042

 
$
14,145

Provision for (Reversal of) unfunded commitments
(297
)
 
1,952

 
(1,766
)
 
(24
)
 
23

 
(112
)
Reserve for unfunded commitments at end of period
$
3,863

 
$
5,400

 
$
899

 
$
806

 
$
3,065

 
$
14,033

Allowance on loans individually evaluated for impairment
$
695

 
$
488

 
$
10,918

 
$
72

 
$
809

 
$
12,982

Allowance on loans collectively evaluated for impairment
24,009

 
20,169

 
27,478

 
3,764

 
17,172

 
92,592

Loans, net of unearned income:
 
 
 
 
 
 
 
 
 
 
 
Balance at end of period
$
4,771,690

 
$
2,926,686

 
$
728,778

 
$
730,621

 
$
2,370,922

 
$
11,528,697

Balance at end of period individually evaluated for impairment
26,608

 
23,302

 
79,417

 
2,724

 
5,909

 
137,960

Balance at end of period collectively evaluated for impairment
4,745,082

 
2,903,384

 
649,361

 
727,897

 
2,365,013

 
11,390,737

A summary of changes in the allowance for loan losses for acquired loans, by loan portfolio type, for the three months ended March 31 is as follows:
 
2017
(Dollars in thousands)
Commercial
Real Estate
 
Commercial
and Industrial
 
Energy-related
 
Residential
Mortgage
 
Consumer
 
Total
Allowance for loan losses at beginning of period
$
23,574

 
$
3,230

 
$
39

 
$
7,412

 
$
4,895

 
$
39,150

Provision for (Reversal of) loan losses
(84
)
 
63

 
(26
)
 
(437
)
 
72

 
(412
)
Transfer of balance to OREO and other
377

 
(350
)
 
—

 
2

 
44

 
73

Loans charged off
—

 
—

 
—

 
—

 
(89
)
 
(89
)
Recoveries
109

 
35

 
—

 
—

 
211

 
355

Allowance for loan losses at end of period
$
23,976

 
$
2,978

 
$
13

 
$
6,977

 
$
5,133

 
$
39,077

Allowance on loans individually evaluated for impairment
$
694

 
$
750

 
$
—

 
$
15

 
$
45

 
$
1,504

Allowance on loans collectively evaluated for impairment
23,282

 
2,228

 
13

 
6,962

 
5,088

 
37,573

Loans, net of unearned income:
 
 
 
 
 
 
 
 
 
 
 
Balance at end of period
$
1,099,365

 
$
315,373

 
$
1,108

 
$
394,499

 
$
398,413

 
$
2,208,758

Balance at end of period individually evaluated for impairment
7,966

 
1,810

 
—

 
464

 
1,840

 
12,080

Balance at end of period collectively evaluated for impairment
832,060

 
281,009

 
1,108

 
278,742

 
306,420

 
1,699,339

Balance at end of period acquired with deteriorated credit quality
259,339

 
32,554

 
—

 
115,293

 
90,153

 
497,339

 
2016
(Dollars in thousands)
Commercial
Real Estate
 
Commercial
and Industrial
 
Energy-related
 
Residential
Mortgage
 
Consumer
 
Total
Allowance for loan losses at beginning of period
$
25,979

 
$
2,819

 
$
125

 
$
7,841

 
$
7,806

 
$
44,570

Provision for (Reversal of) loan losses
(598
)
 
194

 
(25
)
 
662

 
(1,236
)
 
(1,003
)
Increase (Decrease) in FDIC loss share receivable
2

 
(34
)
 
—

 
(35
)
 
(191
)
 
(258
)
Transfer of balance to OREO and other
(1,574
)
 
(343
)
 
—

 
(70
)
 
(472
)
 
(2,459
)
Loans charged off
—

 
(30
)
 
—

 
—

 
(141
)
 
(171
)
Recoveries
55

 
108

 
—

 
25

 
116

 
304

Allowance for loan losses at end of period
$
23,864

 
$
2,714

 
$
100

 
$
8,423

 
$
5,882

 
$
40,983

Allowance on loans individually evaluated for impairment
$
41

 
$
5

 
$
—

 
$
—

 
$
50

 
$
96

Allowance on loans collectively evaluated for impairment
23,823

 
2,709

 
100

 
8,423

 
5,832

 
40,887

Loans, net of unearned income:
 
 
 
 
 
 
 
 
 
 
 
Balance at end of period
$
1,458,938

 
$
447,696

 
$
2,884

 
$
477,770

 
$
535,259

 
$
2,922,547

Balance at end of period individually evaluated for impairment
911

 
1,582

 
34

 
—

 
4,718

 
7,245

Balance at end of period collectively evaluated for impairment
1,088,713

 
409,561

 
2,850

 
340,278

 
414,902

 
2,256,304

Balance at end of period acquired with deteriorated credit quality
369,314

 
36,553

 
—

 
137,492

 
115,639

 
658,998
Investment in Legacy and Acquired Loans by Credit Quality Indicator
The Company’s investment in loans by credit quality indicator is presented in the following tables. The tables below further segregate the Company’s loans between loans that were originated, or renewed and underwritten by the Company (legacy loans) and acquired loans. Loan premiums/discounts in the tables below represent the adjustment of acquired loans to fair value at the acquisition date, as adjusted for income accretion and changes in cash flow estimates in subsequent periods. Asset risk classifications for commercial loans reflect the classification as of March 31, 2017 and December 31, 2016. Credit quality information in the tables below includes total loans acquired (including acquired impaired loans) at the gross loan balance, prior to the application of premiums/discounts, at March 31, 2017 and December 31, 2016.
Loan delinquency is the primary credit quality indicator that the Company utilizes to monitor consumer asset quality.
 
Legacy loans
 
March 31, 2017
 
December 31, 2016
(Dollars in thousands)
Pass
 
Special Mention
 
Sub-
standard
 
Doubtful
 
Total
 
Pass
 
Special Mention
 
Sub-
standard
 
Doubtful
 
Total
Commercial real estate - Construction
$
876,872

 
$
1,119

 
$
4,348

 
$
—

 
$
882,339

 
$
734,687

 
$
2,203

 
$
3,871

 
$
—

 
$
740,761

Commercial real estate - Other
4,882,222

 
52,083

 
61,865

 
—

 
4,996,170

 
4,801,494

 
26,159

 
54,900

 
—

 
4,882,553

Commercial and industrial
3,064,306

 
31,615

 
27,014

 
17,270

 
3,140,205

 
3,112,300

 
29,763

 
35,199

 
17,534

 
3,194,796

Energy-related
314,975

 
65,469

 
153,186

 
28,885

 
562,515

 
242,123

 
80,084

 
225,724

 
11,358

 
559,289

Total
$
9,138,375

 
$
150,286

 
$
246,413

 
$
46,155

 
$
9,581,229

 
$
8,890,604

 
$
138,209

 
$
319,694

 
$
28,892

 
$
9,377,399

 
Legacy loans
 
March 31, 2017
 
December 31, 2016
(Dollars in thousands)
Current
 
30+ Days Past Due
 
Total
 
Current
 
30+ Days Past Due
 
Total
Residential mortgage
$
884,571

 
$
17,288

 
$
901,859

 
$
836,509

 
$
17,707

 
$
854,216

Consumer - Home equity
1,779,409

 
17,714

 
1,797,123

 
1,768,763

 
14,658

 
1,783,421

Consumer - Indirect automobile
107,519

 
2,655

 
110,174

 
127,054

 
3,994

 
131,048

Consumer - Credit card
82,636

 
976

 
83,612

 
81,602

 
922

 
82,524

Consumer - Other
445,538

 
3,909

 
449,447

 
462,650

 
3,666

 
466,316

Total
$
3,299,673

 
$
42,542

 
$
3,342,215

 
$
3,276,578

 
$
40,947

 
$
3,317,525


 
Acquired loans
 
March 31, 2017
 
December 31, 2016
(Dollars in thousands)
Pass
 
Special
Mention
 
Sub-standard
 
Doubtful
 
Premium/(Discount)
 
Total
 
Pass
 
Special
Mention
 
Sub-standard
 
Doubtful
 
Loss
 
Premium/(Discount)
 
Total
Commercial real estate - Construction
$
45,192

 
$
472

 
$
2,717

 
$
2,574

 
$
11,001

 
$
61,956

 
$
46,498

 
$
459

 
$
3,118

 
$
2,574

 
$
—

 
$
8,759

 
$
61,408

Commercial real
estate - Other
1,014,057

 
15,408

 
46,451

 
1,475

 
(39,982
)
 
1,037,409

 
1,090,063

 
19,284

 
49,136

 
1,457

 
23

 
(42,419
)
 
1,117,544

Commercial and industrial
293,402

 
5,407

 
18,030

 
403

 
(1,869
)
 
315,373

 
323,154

 
1,416

 
27,749

 
494

 
—

 
(4,487
)
 
348,326

Energy-related
1,113

 
—

 
—

 
—

 
(5
)
 
1,108

 
1,910

 
—

 
—

 
—

 
—

 
(6
)
 
1,904

Total
$
1,353,764

 
$
21,287

 
$
67,198

 
$
4,452

 
$
(30,855
)
 
$
1,415,846

 
$
1,461,625

 
$
21,159

 
$
80,003

 
$
4,525

 
$
23

 
$
(38,153
)
 
$
1,529,182

 
Acquired loans
 
March 31, 2017
 
December 31, 2016
(Dollars in thousands)
Current
 
30+ Days Past Due
 
Premium (Discount)
 
Total
 
Current
 
30+ Days Past Due
 
Premium (Discount)
 
Total
Residential mortgage
$
404,276

 
$
19,268

 
$
(29,045
)
 
$
394,499

 
$
424,300

 
$
20,914

 
$
(32,030
)
 
$
413,184

Consumer - Home equity
352,836

 
12,971

 
(16,134
)
 
349,673

 
377,021

 
12,807

 
(17,323
)
 
372,505

Consumer - Indirect automobile
26

 
—

 
—

 
26

 
12

 
—

 
(8
)
 
4

Consumer - Other
52,572

 
937

 
(4,795
)
 
48,714

 
58,141

 
1,423

 
(4,392
)
 
55,172

Total
$
809,710

 
$
33,176

 
$
(49,974
)
 
$
792,912

 
$
859,474

 
$
35,144

 
$
(53,753
)
 
$
840,865

  
Schedule of Investment in Legacy Impaired Loans
Information on the Company’s investment in legacy impaired loans, which include all TDRs and all other non-accrual loans evaluated or measured individually for impairment for purposes of determining the allowance for loan losses, is presented in the following tables as of and for the periods indicated.
 
March 31, 2017
 
December 31, 2016
 
Unpaid Principal Balance
 
Recorded Investment
 
Related Allowance
 
Unpaid Principal Balance
 
Recorded Investment
 
Related Allowance
(Dollars in thousands)
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
$
24,203

 
$
24,203

 
$
—

 
$
17,299

 
$
16,507

 
$
—

Commercial and industrial
10,176

 
10,176

 
—

 
14,202

 
13,189

 
—

Energy-related
93,289

 
93,289

 
—

 
152,424

 
143,239

 
—

Residential mortgage
519

 
519

 
—

 
—

 
—

 
—

Consumer - Home equity
3,480

 
3,480

 
—

 
—

 
—

 
—

Consumer -Other
—

 
—

 
—

 
—

 
—

 
—

 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate
22,000
 
22,000

 
(1,222
)
 
17,688

 
17,524

 
(641
)
Commercial and industrial
30,204

 
30,204

 
(13,860
)
 
28,829

 
28,329

 
(10,864
)
Energy-related
49,109

 
49,109

 
(10,446
)
 
53,967

 
53,088

 
(9,769
)
Residential mortgage
4,392

 
4,064

 
(98
)
 
4,627

 
4,312

 
(144
)
Consumer - Home equity
16,605

 
16,229

 
(1,263
)
 
13,906

 
13,257

 
(993
)
Consumer - Indirect automobile
724

 
724

 
(139
)
 
1,037

 
758

 
(114
)
Consumer - Other
3,124

 
3,035

 
(277
)
 
2,447

 
2,442

 
(251
)
Total
$
257,825

 
$
257,032

 
$
(27,305
)
 
$
306,426

 
$
292,645

 
$
(22,776
)
Total commercial loans
$
228,981

 
$
228,981

 
$
(25,528
)
 
$
284,409

 
$
271,876

 
$
(21,274
)
Total mortgage loans
4,911

 
4,583

 
(98
)
 
4,627

 
4,312

 
(144
)
Total consumer loans
23,933

 
23,468

 
(1,679
)
 
17,390

 
16,457

 
(1,358
)
 
Three Months Ended
March 31, 2017
 
Three Months Ended
March 31, 2016
 
Average
Recorded Investment
 
Interest
Income Recognized
 
Average
Recorded Investment
 
Interest
Income Recognized
(Dollars in thousands)
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
$
24,370

 
$
315

 
$
16,167

 
$
38

Commercial and industrial
10,408

 
92

 
27,540

 
286

Energy-related
96,664

 
365

 
53,920

 
513

Residential mortgage
519

 
4

 
1,289

 
16

Consumer - Home equity
3,480

 
34

 
—

 
—

With an allowance recorded:
 
 
 
 
 
 
 
Commercial real estate
22,076

 
115

 
10,710

 
83

Commercial and industrial
30,779

 
209

 
3,166

 
46

Energy-related
49,887

 
2

 
21,289

 
224

Residential mortgage
4,080

 
41

 
1,462

 
8

Consumer - Home equity
15,746

 
170

 
5,188

 
51

Consumer - Indirect automobile
766

 
7

 
190

 
1

Consumer - Other
3,078

 
49

 
391

 
7

Total
$
261,853

 
$
1,403

 
$
141,312

 
$
1,273

Total commercial loans
$
234,184

 
$
1,098

 
$
132,792

 
$
1,190

Total mortgage loans
4,599

 
45

 
2,751

 
24

Total consumer loans
23,070

 
260

 
5,769

 
59