LOANS AND LEASES

Loans and leases consist of the following for the periods indicated:




(Dollars in thousands)	March 31, 2018		December 31, 2017
Commercial loans and leases:
Real estate- construction	$	1,199,625	$	1,240,396
Real estate- owner-occupied	2,612,244		2,529,885
Real estate- non-owner-occupied	5,437,082		5,167,949
Commercial and industrial ⁽¹⁾	5,325,682		5,135,067
	14,574,633		14,073,297

Residential mortgage loans:	3,971,067		3,056,352

Consumer loans:
Home equity	2,421,186		2,292,275
Indirect automobile	50,671		62,693
Credit card	93,261		96,368
Other	595,272		497,196
	3,160,390		2,948,532
Total	$	21,706,090	$	20,078,181


⁽¹⁾	Includes equipment financing leases.

Net deferred loan origination fees were $31.4 million and $29.3 million at March 31, 2018 and December 31, 2017, respectively. Total net discount on the Company's loans was $158.1 million and $159.3 million at March 31, 2018 and December 31, 2017, respectively, of which $100.8 million and $94.7 million was related to non-impaired loans. Net loan discounts include preliminary discounts recorded on Sabadell United and Gibraltar loans, which are subject to change upon receipt of final fair value estimates during the respective measurement periods.

In addition to loans issued in the normal course of business, the Company considers overdrafts on customer deposit accounts to be loans and reclassifies these overdrafts as loans in its consolidated balance sheets. At March 31, 2018 and December 31, 2017, overdrafts of $7.3 million and $7.4 million, respectively, have been reclassified to loans.

Loans with carrying values of $6.8 billion and $6.6 billion were pledged as collateral for borrowings at March 31, 2018 and December 31, 2017, respectively.

Aging Analysis

The following tables provide an analysis of the aging of loans as of March 31, 2018 and December 31, 2017. Past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.



	March 31, 2018
	Accruing
(Dollars in thousands)	Current or Less Than 30 days Past Due		30-59 days		60-89 days		> 90 days		Total Past Due		Non-accrual		Acquired Impaired		Total
Real estate- construction	$	1,157,115	$	842	$	129	$	—	$	971	$	2,634	$	38,905	$	1,199,625
Real estate- owner-occupied	2,474,611		4,767		3,461		—		8,228		35,144		94,261		2,612,244
Real estate- non-owner-occupied	5,319,962		7,269		2,526		6,789		16,584		9,378		91,158		5,437,082
Commercial and industrial	5,212,390		7,755		3,406		273		11,434		66,637		35,221		5,325,682
Residential mortgage	3,783,309		25,640		2,655		1,226		29,521		19,932		138,305		3,971,067
Consumer - home equity	2,309,222		11,860		3,191		—		15,051		16,383		80,530		2,421,186
Consumer - indirect automobile	48,581		1,166		175		—		1,341		743		6		50,671
Consumer - credit card	92,497		173		88		—		261		503		—		93,261
Consumer - other	585,969		2,484		706		—		3,190		2,621		3,492		595,272
Total	$	20,983,656	$	61,956	$	16,337	$	8,288	$	86,581	$	153,975	$	481,878	$	21,706,090



	December 31, 2017
	Accruing
(Dollars in thousands)	Current or Less Than 30 days Past Due		30-59 days		60-89 days		> 90 days		Total Past Due		Non-accrual		Acquired Impaired		Total
Real estate- construction	$	1,197,766	$	269	$	—	$	458	$	727	$	2,635	$	39,268	$	1,240,396
Real estate- owner-occupied	2,398,487		1,631		659		74		2,364		24,457		104,577		2,529,885
Real estate- non-owner-occupied	5,066,084		2,086		6,405		887		9,378		6,811		85,676		5,167,949
Commercial and industrial	5,014,438		5,788		5,726		146		11,660		77,823		31,146		5,135,067
Residential mortgage	2,877,048		10,083		8,136		5,317		23,536		17,387		138,381		3,056,352
Consumer - home equity	2,186,554		11,675		2,947		18		14,640		12,365		78,716		2,292,275
Consumer - indirect automobile	59,830		1,796		177		—		1,973		884		6		62,693
Consumer - credit card	95,264		140		374		—		514		590		—		96,368
Consumer - other	487,150		3,350		475		—		3,825		2,436		3,785		497,196
Total	$	19,382,621	$	36,818	$	24,899	$	6,900	$	68,617	$	145,388	$	481,555	$	20,078,181

Acquired Loans

As discussed in Note 3, during the third quarter of 2017, the Company acquired loans with fair values of $4.0 billion from Sabadell United. Certain loans that were acquired in this transaction were covered by loss share agreements between the FDIC and Sabadell United, which were assumed in connection with the Company's acquisition of Sabadell United and afford IBERIABANK loss protection. Covered loans were $150.0 million and $158.6 million at March 31, 2018 and December 31, 2017, respectively. Certain acquired loans from Sabadell United were to customers with addresses outside of the United States. Foreign loans, denominated in U.S. dollars, totaled $336.1 million and $325.5 million at March 31, 2018 and December 31, 2017, respectively.

During the first quarter of 2018, the Company acquired loans with fair values of $1.5 billion from Gibraltar.

Of the total loans acquired from Gibraltar, $1.46 billion were determined to have no evidence of deteriorated credit quality and are accounted for under ASC Topics 310-10 and 310-20. The remaining $10.2 million were determined to exhibit deteriorated credit quality since origination under ASC 310-30. The tables below show the balances acquired during the first quarter of 2018 for these two subsections of the portfolio as of the acquisition date. These amounts are subject to change due to the finalization of purchase accounting adjustments.



(Dollars in thousands)	Acquired Non-Impaired Loans
Contractually required principal and interest at acquisition	$	1,695,918
Expected losses and foregone interest	(19,952		)
Cash flows expected to be collected at acquisition	1,675,966
Fair value of acquired loans at acquisition	$	1,455,085



(Dollars in thousands)	Acquired Impaired Loans
Contractually required principal and interest at acquisition	$	43,779
Non-accretable difference (expected losses and foregone interest)	(31,174		)
Cash flows expected to be collected at acquisition	12,605
Accretable yield	(2,371		)
Basis in acquired loans at acquisition	$	10,234

The following is a summary of changes in the accretable difference for all loans accounted for under ASC 310-30 during the three months ended March 31:



(Dollars in thousands)	2018			2017
Balance at beginning of period	$	152,623		$	175,054
Additions	2,371			—
Transfers from non-accretable difference to accretable yield	(279		)	2,071
Accretion	(13,154		)	(14,596		)
Changes in expected cash flows not affecting non-accretable differences⁽¹⁾	9,687			1,060
Balance at end of period	$	151,248		$	163,589


⁽¹⁾	Includes changes in cash flows expected to be collected due to the impact of changes in actual or expected timing of liquidation events, modifications, changes in interest rates and changes in prepayment assumptions.

Troubled Debt Restructurings

Information about the Company’s troubled debt restructurings ("TDRs") at March 31, 2018 and 2017 is presented in the following tables. Modifications of loans that are accounted for within a pool under ASC Topic 310-30 are excluded as TDRs. Accordingly, such modifications do not result in the removal of those loans from the pool, even if the modification of those loans would otherwise be considered a TDR. As a result, all such acquired loans that would otherwise meet the criteria for classification as a TDR are excluded from the tables below.

TDRs totaling $27.2 million and $13.2 million occurred during the three months ended March 31, 2018 and March 31, 2017, respectively, through modification of the original loan terms.

The following table provides information on how the TDRs were modified during the periods indicated:



	Three Months Ended March 31,
(Dollars in thousands)	2018		2017
Extended maturities	$	5,619	$	7,199
Maturity and interest rate adjustment	108		3,224
Movement to or extension of interest-rate only payments	48		1,290
Interest rate adjustment	105		—
Forbearance	12,886		1,220
Other concession(s) ⁽¹⁾	8,434		232
Total	$	27,200	$	13,165


⁽¹⁾	Other concessions may include covenant waivers, forgiveness of principal or interest associated with a customer bankruptcy, or a combination of any of the above concessions.

Of the $27.2 million of TDRs occurring during the three months ended March 31, 2018, $12.9 million are on accrual status and $14.3 million are on non-accrual status. Of the $13.2 million of TDRs occurring during the three months ended March 31, 2017, $11.8 million were on accrual status and $1.4 million were on non-accrual status. The following table presents the end of period balance for loans modified in a TDR during the periods indicated:



	Three Months Ended March 31,
	2018					2017
(In thousands, except number of loans)	Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Real estate- construction	1	$	1,950	$	1,049	—	$	—	$	—
Real estate- owner-occupied	2	10,691		9,324		3	3,004		2,999
Real estate- non-owner-occupied	9	1,089		1,091		7	1,867		1,855
Commercial and industrial	18	14,429		13,314		15	435		427
Residential mortgage	—	—		—		4	259		241
Consumer - home equity	14	1,809		1,795		37	6,622		6,607
Consumer - indirect	11	137		119		13	184		174
Consumer - other	10	511		508		22	867		862
Total	65	$	30,616	$	27,200	101	$	13,238	$	13,165

Information detailing TDRs that defaulted during the three-month periods ended March 31, 2018 and 2017, and were modified in the previous twelve months (i.e., the twelve months prior to the default) is presented in the following tables. The Company has defined a default as any loan with a payment that is currently past due greater than 30 days, or was past due greater than 30 days at any point during the respective periods, or since the date of modification, whichever is shorter.



	Three Months Ended March 31,
	2018			2017
(In thousands, except number of loans)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Real estate- construction	—	$	—	1	$	117
Real estate- owner-occupied	3	10,187		9	14,732
Real estate- non-owner-occupied	9	492		10	5,041
Commercial and industrial	29	9,708		21	4,186
Residential mortgage	6	598		22	1,793
Consumer - home equity	24	2,331		31	1,337
Consumer - indirect automobile	34	322		43	517
Consumer - other	17	1,035		25	693
Total	122	$	24,673	162	$	28,416