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Allowance for Credit Losses and Credit Quality (Tables)
 3 Months Ended
Mar. 31, 2018
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:
(Dollars in thousands)
 
2018
 
2017
Allowance for credit losses
 
 
 
 
Allowance for loan and lease losses at beginning of period
 
$
140,891

 
$
144,719

Provision for loan and lease losses
 
7,986

 
6,154

Transfer of balance to OREO and other
 
(47
)
 
73

Charge-offs
 
(9,116
)
 
(7,291
)
Recoveries
 
4,813

 
1,235

Allowance for loan and lease losses at end of period
 
$
144,527

 
$
144,890

 
 
 
 
 
Reserve for unfunded commitments at beginning of period
 
$
13,208

 
$
11,241

Provision for unfunded lending commitments
 
224

 
419

Reserve for unfunded commitments at end of period
 
$
13,432

 
$
11,660

Allowance for credit losses at end of period
 
$
157,959

 
$
156,550

A summary of changes in the allowance for credit losses, by loan portfolio type, for the three months ended March 31 is as follows:
 
2018
(Dollars in thousands)
Commercial Real Estate
 
Commercial and Industrial
 
Residential Mortgage
 
Consumer
 
Total
Allowance for loan and lease losses at beginning of period
$
54,201

 
$
53,916

 
$
9,117

 
$
23,657

 
$
140,891

Provision for (Reversal of) loan and lease losses
6,377

 
294

 
(686
)
 
2,001

 
7,986

Transfer of balance to OREO and other
(47
)
 
—

 
—

 
—

 
(47
)
Charge-offs
(114
)
 
(5,378
)
 
(105
)
 
(3,519
)
 
(9,116
)
Recoveries
191

 
3,698

 
22

 
902

 
4,813

Allowance for loan and lease losses at end of period
$
60,608

 
$
52,530

 
$
8,348

 
$
23,041

 
$
144,527

 
 
 
 
 
 
 
 
 
 
Reserve for unfunded commitments at beginning of period
$
4,531

 
$
5,309

 
$
555

 
$
2,813

 
$
13,208

Provision for (Reversal of) unfunded commitments
1,476

 
(1,004
)
 
(15
)
 
(233
)
 
224

Reserve for unfunded commitments at end of period
$
6,007

 
$
4,305

 
$
540

 
$
2,580

 
$
13,432

Allowance on loans individually evaluated for impairment
$
2,506

 
$
14,040

 
$
178

 
$
2,974

 
$
19,698

Allowance on loans collectively evaluated for impairment
35,871


36,208

 
2,073

 
16,544

 
90,696

Allowance on loans acquired with deteriorated credit quality
22,231

 
2,282

 
6,097

 
3,523

 
34,133

Loans and leases, net of unearned income:
 
 
 
 
 
 
 
 
 
Balance at end of period
$
9,248,951

 
$
5,325,682

 
$
3,971,067

 
$
3,160,390

 
$
21,706,090

Balance at end of period individually evaluated for impairment
78,489

 
78,725

 
6,041

 
33,277

 
196,532

Balance at end of period collectively evaluated for impairment
8,946,138

 
5,211,736

 
3,826,721

 
3,043,085

 
21,027,680

Balance at end of period acquired with deteriorated credit quality
224,324

 
35,221

 
138,305

 
84,028

 
481,878

 
2017
(Dollars in thousands)
Commercial Real Estate
 
Commercial and Industrial
 
Residential Mortgage
 
Consumer
 
Total
Allowance for loan losses at beginning of period
$
49,231

 
$
60,939

 
$
11,249

 
$
23,300

 
$
144,719

Provision for (Reversal of) loan and lease losses
1,786

 
2,557

 
(1,060
)
 
2,871

 
6,154

Transfer of balance to OREO and other
377

 
(350
)
 
2

 
44

 
73

Charge-offs
(95
)
 
(3,762
)
 
(22
)
 
(3,412
)
 
(7,291
)
Recoveries
196

 
84

 
43

 
912

 
1,235

Allowance for loan losses at end of period
$
51,495

 
$
59,468

 
$
10,212

 
$
23,715

 
$
144,890

 
 
 
 
 
 
 
 
 
 
Reserve for unfunded commitments at beginning of period
$
3,207

 
$
4,537

 
$
657

 
$
2,840

 
$
11,241

Provision for (Reversal of) unfunded commitments
1,379

 
(885
)
 
(49
)
 
(26
)
 
419

Reserve for unfunded commitments at end of period
$
4,586

 
$
3,652

 
$
608

 
$
2,814

 
$
11,660

Allowance on loans individually evaluated for impairment
$
1,916

 
$
25,056

 
$
113

 
$
1,724

 
$
28,809

Allowance on loans collectively evaluated for impairment
26,872

 
32,383

 
3,907

 
17,764

 
80,926

Allowance on loans acquired with deteriorated credit quality
22,707

 
2,029

 
6,192

 
4,227

 
35,155

 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income:
 
 
 
 
 
 
 
 
 
Balance at end of period
$
7,021,341

 
$
3,975,734

 
$
1,296,358

 
$
2,838,769

 
$
15,132,202

Balance at end of period individually evaluated for impairment
74,351

 
164,405

 
5,048

 
25,308

 
269,112

Balance at end of period collectively evaluated for impairment
6,687,651

 
3,778,775

 
1,176,017

 
2,723,308

 
14,365,751

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

 
32,554

 
115,293

 
90,153

 
497,339
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. Asset risk classifications for commercial loans and leases reflect the classification as of March 31, 2018 and December 31, 2017. Credit quality information in the tables below includes total loans acquired (including acquired impaired loans) at the net loan balance, after the application of premiums/discounts, at March 31, 2018 and December 31, 2017. Loan premiums/discounts 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. Loan premiums/discounts include preliminary discounts recorded on acquired Sabadell United and Gibraltar loans, which are subject to change upon receipt of final fair value estimates during the measurement period.
Loan delinquency is the primary credit quality indicator that the Company utilizes to monitor consumer asset quality.
 

 
March 31, 2018
 
December 31, 2017
(Dollars in thousands)
Pass
 
Special Mention
 
Sub-
standard
 
Doubtful
 
Total
 
Pass
 
Special Mention
 
Sub-
standard
 
Doubtful
 
Loss
 
Total
Commercial real estate - construction
$
1,153,604

 
$
16,399

 
$
29,610

 
$
12

 
$
1,199,625

 
$
1,189,490

 
$
20,351

 
$
30,541

 
$
14

 
$
—

 
$
1,240,396

Commercial real estate - owner-occupied
2,464,072

 
83,356

 
56,409

 
8,407

 
2,612,244

 
2,388,715

 
82,114

 
56,590

 
2,466

 
—

 
2,529,885

Commercial real estate- non-owner-occupied
5,335,816

 
45,905

 
51,089

 
4,272

 
5,437,082

 
5,104,074

 
19,311

 
42,702

 
1,744

 
118

 
5,167,949

Commercial and industrial
5,124,676

 
55,041

 
107,126

 
38,839

 
5,325,682

 
4,882,554

 
88,149

 
128,961

 
35,403

 
—

 
5,135,067

Total
$
14,078,168

 
$
200,701

 
$
244,234

 
$
51,530

 
$
14,574,633

 
$
13,564,833

 
$
209,925

 
$
258,794

 
$
39,627

 
$
118

 
$
14,073,297

 

 
March 31, 2018
 
December 31, 2017
(Dollars in thousands)
Current
 
30+ Days Past Due
 
Total
 
Current
 
30+ Days Past Due
 
Total
Residential mortgage
$
3,859,751

 
$
111,316

 
$
3,971,067

 
$
2,962,043

 
$
94,309

 
$
3,056,352

Consumer - home equity
2,376,171

 
45,015

 
2,421,186

 
2,250,205

 
42,070

 
2,292,275

Consumer - indirect automobile
48,587

 
2,084

 
50,671

 
59,836

 
2,857

 
62,693

Consumer - credit card
92,497

 
764

 
93,261

 
95,263

 
1,105

 
96,368

Consumer - other
589,098

 
6,174

 
595,272

 
490,399

 
6,797

 
497,196

Total
$
6,966,104

 
$
165,353

 
$
7,131,457

 
$
5,857,746

 
$
147,138

 
$
6,004,884
Schedule of Investment in Legacy Impaired Loans
Information on the Company’s investment in impaired loans, which include all TDRs and all other non-accrual loans evaluated or measured individually for impairment for purposes of determining the ALLL, is presented in the following tables as of and for the periods indicated.
 
March 31, 2018
 
December 31, 2017
 
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- construction
$
11,153

 
$
11,153

 
$
—

 
$
13,763

 
$
13,013

 
$
—

Commercial real estate- owner-occupied
43,562

 
36,042

 
—

 
50,867

 
44,482

 
—

Commercial real estate- non-owner-occupied
10,575

 
10,449

 
—

 
15,370

 
14,975

 
—

Commercial and industrial
45,720

 
36,829

 
—

 
103,013

 
70,254

 
—

Residential mortgage
1,083

 
1,083

 
—

 
2,004

 
2,001

 
—

Consumer - home equity
31

 
31

 
—

 
5,906

 
5,634

 
—

Consumer -other
—

 
—

 
—

 
75

 
75

 
—

 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate- construction
236

 
154

 
(18
)
 
238

 
156

 
(19
)
Commercial real estate- owner-occupied
17,536

 
17,419

 
(1,860
)
 
13,314

 
13,287

 
(949
)
Commercial real estate- non-owner-occupied
3,399

 
3,272

 
(628
)
 
6,051

 
5,872

 
(620
)
Commercial and industrial
46,705

 
41,896

 
(14,040
)
 
35,306

 
32,162

 
(12,736
)
Residential mortgage
5,357

 
4,958

 
(178
)
 
5,179

 
4,748

 
(172
)
Consumer - home equity
28,917

 
28,187

 
(2,435
)
 
27,189

 
26,575

 
(2,358
)
Consumer - indirect automobile
1,004

 
656

 
(75
)
 
1,034

 
679

 
(79
)
Consumer - other
4,493

 
4,403

 
(464
)
 
4,320

 
4,214

 
(419
)
Total
$
219,771

 
$
196,532

 
$
(19,698
)
 
$
283,629

 
$
238,127

 
$
(17,352
)
Total commercial loans and leases
$
178,886

 
$
157,214

 
$
(16,546
)
 
$
237,922

 
$
194,201

 
$
(14,324
)
Total mortgage loans
6,440

 
6,041

 
(178
)
 
7,183

 
6,749

 
(172
)
Total consumer loans
34,445

 
33,277

 
(2,974
)
 
38,524

 
37,177

 
(2,856
)
 
Three Months Ended March 31, 2018
 
Three Months Ended March 31, 2017
 
Average
Recorded Investment
 
Interest
Income Recognized
 
Average
Recorded Investment
 
Interest
Income Recognized
(Dollars in thousands)
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
Commercial real estate- construction
$
10,470

 
$
144

 
$
—

 
$
—

Commercial real estate- owner-occupied
36,277

 
334

 
37,197

 
339

Commercial real estate- non-owner-occupied
10,557

 
98

 
5,988

 
17

Commercial and industrial
27,832

 
385

 
90,664

 
448

Residential mortgage
1,090

 
12

 
735

 
5

Consumer - home equity
32

 
—

 
4,158

 
40

With an allowance recorded:
 
 
 
 
 
 
 
Commercial real estate- construction
153

 
1

 
1,984

 
1

Commercial real estate- owner-occupied
17,608

 
112

 
20,980

 
79

Commercial real estate- non-owner-occupied
3,302

 
10

 
8,587

 
94

Commercial and industrial
44,056

 
196

 
78,695

 
220

Residential mortgage
4,974

 
44

 
4,335

 
42

Consumer - home equity
28,203

 
292

 
16,713

 
179

Consumer - indirect automobile
717

 
5

 
767

 
7

Consumer - other
4,483

 
62

 
3,328

 
52

Total
$
189,754

 
$
1,695

 
$
274,131

 
$
1,523

Total commercial loans and leases
$
150,255

 
$
1,280

 
$
244,095

 
$
1,198

Total mortgage loans
6,064

 
56

 
5,070

 
47

Total consumer loans
33,435

 
359

 
24,966

 
278