LOANS AND LEASES

Loans and leases consist of the following at December 31:




(Dollars in thousands)	2018		2017
Commercial loans and leases:
Real estate - construction	$	1,196,366	$	1,240,396
Real estate - owner-occupied	2,395,822		2,375,321
Real estate - non-owner-occupied	5,796,117		5,322,513
Commercial and industrial ⁽¹⁾	5,737,017		5,135,067
	15,125,322		14,073,297

Residential mortgage loans	4,359,156		3,056,352

Consumer loans:
Home equity	2,304,694		2,292,275
Other	730,643		656,257
	3,035,337		2,948,532
Total	$	22,519,815	$	20,078,181

⁽¹⁾ Includes equipment financing leases

Net deferred loan origination fees were $30.2 million and $29.3 million at December 31, 2018 and 2017, respectively. Total net discount on the Company's loans was $136.8 million and $159.3 million at December 31, 2018 and 2017, respectively, of which $81.6 million and $94.7 million was related to non-impaired loans.

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 December 31, 2018 and 2017, overdrafts of $9.2 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 December 31, 2018 and 2017, respectively.

Aging Analysis

The following tables provide an analysis of the aging of loans and leases as of December 31, 2018 and 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.



	December 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 Loans		Acquired Impaired Loans		Total
Real estate - construction	$	1,167,795	$	1,054	$	—	$	—	$	1,054	$	1,094	$	26,423	$	1,196,366
Real estate - owner-occupied	2,305,743		7,167		—		—		7,167		10,260		72,652		2,395,822
Real estate - non-owner-occupied	5,703,131		7,473		360		—		7,833		15,898		69,255		5,796,117
Commercial and industrial	5,645,304		5,139		1,320		553		7,012		57,860		26,841		5,737,017
Residential mortgage	4,218,146		2,768		13,063		1,575		17,406		30,396		93,208		4,359,156
Consumer - home equity	2,200,517		10,283		2,409		—		12,692		18,830		72,655		2,304,694
Consumer - other	719,122		4,695		1,601		—		6,296		2,846		2,379		730,643
Total	$	21,959,758	$	38,579	$	18,753	$	2,128	$	59,460	$	137,184	$	363,413	$	22,519,815



	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 Loans		Acquired Impaired Loans		Total
Real estate - construction	$	1,197,766	$	269	$	—	$	458	$	727	$	2,635	$	39,268	$	1,240,396
Real estate - owner-occupied	2,243,923		1,631		659		74		2,364		24,457		104,577		2,375,321
Real estate - non-owner-occupied	5,220,648		2,086		6,405		887		9,378		6,811		85,676		5,322,513
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 2017, the Company acquired loans with fair values of $4.0 billion from Sabadell United. Certain loans that were acquired in the Sabadell United transaction were covered by loss share agreements between the FDIC and Sabadell United. These FDIC loss share agreements were assumed in connection with the Company's acquisition of Sabadell United, and afforded IBERIABANK loss protection. In 2018, the Company terminated its loss share agreements with the FDIC. As a result, there were no covered loans at December 31, 2018. Covered loans were $158.6 million at December 31, 2017. Certain acquired loans from Sabadell United were to customers with addresses outside of the United States. Foreign loans, denominated in U.S. dollars, totaled $202.6 million and $325.5 million at December 31, 2018 and 2017, respectively.

During 2018, the Company acquired loans with fair values of $1.4 billion from Gibraltar. Of the total loans acquired, $1.4 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 $20.7 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.



(Dollars in thousands)	Acquired Non-Impaired Loans
Contractually required principal and interest at acquisition	$	1,593,408
Expected losses and foregone interest	(25,029		)
Cash flows expected to be collected at acquisition	1,568,379
Fair value of acquired loans at acquisition	$	1,426,756



(Dollars in thousands)	Acquired Impaired Loans
Contractually required principal and interest at acquisition	$	29,929
Non-accretable difference (expected losses and foregone interest)	(3,636		)
Cash flows expected to be collected at acquisition	26,293
Accretable yield	(5,574		)
Basis in acquired loans at acquisition	$	20,719

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



(Dollars in thousands)	2018			2017			2016
Balance at beginning of period	$	152,623		$	175,054		$	227,502
Additions	5,574			32,937			—
Transfers from non-accretable difference to accretable yield	3,623			4,912			5,490
Accretion	(47,962		)	(56,337		)	(68,211		)
Changes in expected cash flows not affecting non-accretable differences ⁽¹⁾	19,484			(3,943		)	10,273
Balance at end of period	$	133,342		$	152,623		$	175,054


⁽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 TDRs 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 $53.2 million, $70.5 million, and $222.4 million occurred during the years ended December 31, 2018, 2017, and 2016, respectively, through modification of the original loan terms.

The following table provides information on how the TDRs were modified during the years ended December 31:



(Dollars in thousands)	2018		2017		2016
Extended maturities	$	23,262	$	26,561	$	75,315
Interest rate adjustment	99		24		193
Maturity and interest rate adjustment	554		4,932		2,470
Movement to or extension of interest-rate only payments	881		4,161		27,931
Forbearance	4,432		7,226		76,819
Other concession(s) ⁽¹⁾	23,943		27,555		39,708
Total	$	53,171	$	70,459	$	222,436


⁽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 $53.2 million of TDRs occurring during the year ended December 31, 2018, $31.5 million were on accrual status and $21.7 million were on non-accrual status. Of the $70.5 million of TDRs occurring during the year ended December 31, 2017, $46.3 million were on accrual status and $24.2 million were on non-accrual status. Of the $222.4 million of TDRs occuring during the year ended December 31, 2016, $85.9 million were on accrual status and $136.5 million were on non-accrual status.

The following table presents the end of period balance for loans modified in a TDR during the years ended December 31:



	2018					2017					2016
(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		Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Commercial real estate - construction	3	$	4,819	$	3,830	4	$	9,404	$	9,628	3	$	3,024	$	3,035
Commercial real estate - owner-occupied	14	4,257		3,912		11	5,779		5,706		20	18,223		18,239
Commercial real estate - non-owner-occupied	20	3,719		3,428		19	11,974		13,738		25	16,644		10,093
Commercial and industrial	52	39,796		30,295		57	21,651		20,883		79	163,265		169,893
Residential mortgage	19	1,706		1,529		24	1,897		1,771		43	5,141		4,946
Consumer - home equity	65	10,607		8,951		123	16,346		15,862		158	13,273		12,568
Consumer - other	73	1,491		1,226		121	3,182		2,871		195	4,070		3,662
Total	246	$	66,395	$	53,171	359	$	70,233	$	70,459	523	$	223,640	$	222,436

Information detailing TDRs that defaulted during the years ended December 31, 2018, 2017, and 2016 and were modified in the previous twelve months (i.e., the twelve months prior to the default) is presented in the following table. The Company has defined a default as any loan with a loan payment that is currently past due greater than 30 days, or was past due greater than 30 days at any point during the previous twelve months, or since the date of modification, whichever is shorter.



	2018			2017			2016
(In thousands, except number of loans)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Commercial real estate - construction	—	$	—	2	$	3,572	1	$	116
Commercial real estate - owner-occupied	2	142		6	4,668		3	3,473
Commercial real estate - non-owner-occupied	5	1,039		13	8,060		6	201
Commercial and industrial	13	3,757		32	6,550		22	14,707
Residential mortgage	8	773		16	1,218		8	405
Consumer - home equity	15	1,354		32	3,285		25	1,379
Consumer - other	38	447		62	1,381		59	944
Total	81	$	7,512	163	$	28,734	124	$	21,225