LOANS AND LEASES

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



(Dollars in thousands)	June 30, 2018		December 31, 2017
Commercial loans and leases:
Real estate- construction	$	1,183,367	$	1,240,396
Real estate- owner-occupied	2,641,824		2,529,885
Real estate- non-owner-occupied	5,467,113		5,167,949
Commercial and industrial ⁽¹⁾	5,512,416		5,135,067
	14,804,720		14,073,297

Residential mortgage loans:	4,124,538		3,056,352

Consumer loans:
Home equity	2,410,617		2,292,275
Other	735,908		656,257
	3,146,525		2,948,532
Total	$	22,075,783	$	20,078,181


⁽¹⁾	Includes equipment financing leases.

Net deferred loan origination fees were $37.7 million and $29.3 million at June 30, 2018 and December 31, 2017, respectively. Total net discount on the Company's loans was $159.0 million and $159.3 million at June 30, 2018 and December 31, 2017, respectively, of which $83.3 million and $94.7 million was related to non-impaired loans. Net loan discounts include preliminary discounts recorded on 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 June 30, 2018 and December 31, 2017, overdrafts of $10.0 million and $7.4 million, respectively, have been reclassified to loans.

Loans with carrying values of $7.6 billion and $6.6 billion were pledged as collateral for borrowings at June 30, 2018 and December 31, 2017, respectively.

Aging Analysis

The following tables provide an analysis of the aging of loans as of June 30, 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.



	June 30, 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	$	1,161,597	$	698	$	—	$	—	$	698	$	1,164	$	19,908	$	1,183,367
Real estate- owner-occupied	2,521,815		1,644		1,840		220		3,704		27,730		88,575		2,641,824
Real estate- non-owner-occupied	5,370,268		4,086		502		—		4,588		10,409		81,848		5,467,113
Commercial and industrial	5,413,419		3,944		2,944		728		7,616		60,741		30,640		5,512,416
Residential mortgage	3,956,674		5,274		7,029		7,916		20,219		13,066		134,579		4,124,538
Consumer - home equity	2,305,534		8,175		2,421		450		11,046		15,369		78,668		2,410,617
Consumer - other	725,350		3,853		749		—		4,602		2,676		3,280		735,908
Total	$	21,454,657	$	27,674	$	15,485	$	9,314	$	52,473	$	131,155	$	437,498	$	22,075,783



	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 - other	642,244		5,286		1,026		—		6,312		3,910		3,791		656,257
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 $143.8 million and $158.6 million at June 30, 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 $356.4 million and $325.5 million at June 30, 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 based on preliminary purchase accounting adjustments.

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 fair value estimates of loans acquired from Gibraltar 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	$	1,455,044



(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 six months ended June 30:



(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	(467		)	2,544
Accretion	(25,140		)	(28,496		)
Changes in expected cash flows not affecting non-accretable differences⁽¹⁾	7,597			2,439
Balance at end of period	$	136,984		$	151,541


⁽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 June 30, 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 $46.7 million and $28.4 million occurred during the six months ended June 30, 2018 and June 30, 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 June 30				Six Months Ended June 30,
(Dollars in thousands)	2018		2017		2018		2017
Extended maturities	$	1,790	$	8,488	$	7,193	$	15,014
Maturity and interest rate adjustment	—		3,886		102		6,502
Movement to or extension of interest-rate only payments	1,316		38		1,364		138
Interest rate adjustment	—		26		103		26
Forbearance	1,405		3,466		13,936		4,687
Other concession(s) ⁽¹⁾	15,597		1,988		23,993		2,031
Total	$	20,108	$	17,892	$	46,691	$	28,398


⁽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 $46.7 million of TDRs occurring during the six months ended June 30, 2018, $20.6 million are on accrual status and $26.1 million are on non-accrual status. Of the $28.4 million of TDRs occurring during the six months ended June 30, 2017, $22.8 million were on accrual status and $5.6 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 June 30,
	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	$	275	$	275
Real estate- owner-occupied	5	2,230		2,201		1	32		31
Real estate- non-owner-occupied	5	823		780		6	2,721		2,795
Commercial and industrial	16	21,103		13,618		24	9,028		8,551
Residential mortgage	7	688		633		6	521		492
Consumer - home equity	19	2,361		2,350		33	4,820		4,807
Consumer - other	35	556		526		53	1,056		941
Total	87	$	27,761	$	20,108	124	$	18,453	$	17,892



	Six Months Ended June 30,
	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	$	1,013	1	$	275	$	275
Real estate- owner-occupied	7	12,921		11,290		2	1,730		1,698
Real estate- non-owner-occupied	14	1,912		1,854		11	4,409		4,465
Commercial and industrial	32	35,338		26,684		33	9,254		8,747
Residential mortgage	7	688		633		10	780		730
Consumer - home equity	33	4,170		4,133		66	10,851		10,771
Consumer - other	51	1,126		1,084		83	1,907		1,712
Total	145	$	58,105	$	46,691	206	$	29,206	$	28,398

Information detailing TDRs that defaulted during the three-month and six-month periods ended June 30, 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 June 30,
	2018			2017
(In thousands, except number of loans)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Real estate- construction	—	$	—	—	$	—
Real estate- owner-occupied	5	461		5	2,297
Real estate- non-owner-occupied	9	1,448		9	5,640
Commercial and industrial	8	1,437		17	8,081
Residential mortgage	7	775		5	454
Consumer - home equity	11	1,129		19	1,532
Consumer - other	21	232		26	667
Total	61	$	5,482	81	$	18,671



	Six Months Ended June 30,
	2018			2017
(In thousands, except number of loans)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Real estate- construction	—	$	—	2	$	132
Real estate- owner-occupied	6	9,455		7	2,404
Real estate- non-owner-occupied	15	1,813		14	6,406
Commercial and industrial	21	7,100		25	8,239
Residential mortgage	10	1,081		21	1,854
Consumer - home equity	26	2,242		37	2,488
Consumer - other	48	1,003		62	1,221
Total	126	$	22,694	168	$	22,744