Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans

9 Months Ended

Sep. 30, 2015

Loans and Leases Receivable, Allowance [Abstract]

Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans

Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans

The tables below show the aging of the Company’s loan portfolio at September 30, 2015, December 31, 2014 and September 30, 2014:

As of September 30, 2015			90+ days and still accruing		60-89 days past due		30-59 days past due
(Dollars in thousands)	Nonaccrual								Current		Total Loans
Loan Balances:
Commercial
Commercial and industrial	$	12,006	$	—	$	2,731	$	9,331	$	2,622,207	$	2,646,275
Franchise	—		—		80		376		221,545		222,001
Mortgage warehouse lines of credit	—		—		—		—		136,614		136,614
Community Advantage—homeowners association	—		—		44		—		123,165		123,209
Aircraft	—		—		—		378		5,993		6,371
Asset-based lending	12		—		1,313		247		800,798		802,370
Tax exempt	—		—		—		—		232,667		232,667
Leases	—		—		—		89		205,697		205,786
Other	—		—		—		—		1,953		1,953
PCI - commercial (1)	—		217		—		39		22,683		22,939
Total commercial	12,018		217		4,168		10,460		4,373,322		4,400,185
Commercial real estate:
Residential construction	—		—		—		1,141		60,130		61,271
Commercial construction	31		—		—		2,394		283,538		285,963
Land	1,756		—		—		2,207		75,113		79,076
Office	4,045		—		10,861		2,362		773,043		790,311
Industrial	11,637		—		786		897		622,804		636,124
Retail	2,022		—		1,536		821		781,463		785,842
Multi-family	1,525		—		512		744		684,878		687,659
Mixed use and other	7,601		—		2,340		12,871		1,797,516		1,820,328
PCI - commercial real estate (1)	—		13,547		299		583		146,563		160,992
Total commercial real estate	28,617		13,547		16,334		24,020		5,225,048		5,307,566
Home equity	8,365		—		811		4,124		784,165		797,465
Residential real estate	14,557		—		1,017		1,195		551,292		568,061
PCI - residential real estate (1)	—		424		323		411		2,524		3,682
Premium finance receivables
Commercial insurance loans	13,751		8,231		6,664		13,659		2,364,770		2,407,075
Life insurance loans	—		—		9,656		2,627		2,314,406		2,326,689
PCI - life insurance loans (1)	—		—		—		—		373,586		373,586
Consumer and other	297		140		56		935		130,474		131,902
Total loans, net of unearned income, excluding covered loans	$	77,605	$	22,559	$	39,029	$	57,431	$	16,119,587	$	16,316,211
Covered loans	6,540		7,626		1,392		802		152,249		168,609
Total loans, net of unearned income	$	84,145	$	30,185	$	40,421	$	58,233	$	16,271,836	$	16,484,820

(1) PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30.Loan agings are based upon contractually required payments.

As of December 31, 2014			90+ days and still accruing		60-89 days past due		30-59 days past due
(Dollars in thousands)	Nonaccrual								Current		Total Loans
Loan Balances:
Commercial
Commercial and industrial	$	9,132	$	474	$	3,161	$	7,492	$	2,213,105	$	2,233,364
Franchise	—		—		308		1,219		231,789		233,316
Mortgage warehouse lines of credit	—		—		—		—		139,003		139,003
Community Advantage—homeowners association	—		—		—		—		106,364		106,364
Aircraft	—		—		—		—		8,065		8,065
Asset-based lending	25		—		1,375		2,394		802,608		806,402
Tax exempt	—		—		—		—		217,487		217,487
Leases	—		—		77		315		159,744		160,136
Other	—		—		—		—		11,034		11,034
PCI - commercial (1)	—		365		202		138		8,518		9,223
Total commercial	9,157		839		5,123		11,558		3,897,717		3,924,394
Commercial real estate
Residential construction	—		—		250		76		38,370		38,696
Commercial construction	230		—		—		2,023		185,513		187,766
Land	2,656		—		—		2,395		86,779		91,830
Office	7,288		—		2,621		1,374		694,149		705,432
Industrial	2,392		—		—		3,758		617,820		623,970
Retail	4,152		—		116		3,301		723,919		731,488
Multi-family	249		—		249		1,921		603,323		605,742
Mixed use and other	9,638		—		2,603		9,023		1,443,853		1,465,117
PCI - commercial real estate (1)	—		10,976		6,393		4,016		34,327		55,712
Total commercial real estate	26,605		10,976		12,232		27,887		4,428,053		4,505,753
Home equity	6,174		—		983		3,513		705,623		716,293
Residential real estate	15,502		—		267		6,315		459,224		481,308
PCI - residential real estate (1)	—		549		—		—		1,685		2,234
Premium finance receivables
Commercial insurance loans	12,705		7,665		5,995		17,328		2,307,140		2,350,833
Life insurance loans	—		—		13,084		339		1,870,669		1,884,092
PCI - life insurance loans (1)	—		—		—		—		393,479		393,479
Consumer and other	277		119		293		838		149,485		151,012
Total loans, net of unearned income, excluding covered loans	$	70,420	$	20,148	$	37,977	$	67,778	$	14,213,075	$	14,409,398
Covered loans	7,290		17,839		1,304		4,835		195,441		226,709
Total loans, net of unearned income	$	77,710	$	37,987	$	39,281	$	72,613	$	14,408,516	$	14,636,107

(1) PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30.Loan agings are based upon contractually required payments.

As of September 30, 2014			90+ days and still accruing		60-89 days past due		30-59 days past due
(Dollars in thousands)	Nonaccrual								Current		Total Loans
Loan Balances:
Commercial
Commercial and industrial	$	10,430	$	—	$	7,333	$	8,559	$	2,044,505	$	2,070,827
Franchise	—		—		—		1,221		237,079		238,300
Mortgage warehouse lines of credit	—		—		—		—		121,585		121,585
Community Advantage—homeowners association	—		—		—		—		99,595		99,595
Aircraft	—		—		—		—		6,146		6,146
Asset-based lending	25		—		2,959		1,220		777,723		781,927
Tax exempt	—		—		—		—		205,150		205,150
Leases	—		—		—		—		145,439		145,439
Other	—		—		—		—		11,403		11,403
PCI - commercial (1)	—		863		64		137		8,235		9,299
Total commercial	10,455		863		10,356		11,137		3,656,860		3,689,671
Commercial real estate:
Residential construction	—		—		—		—		30,237		30,237
Commercial construction	425		—		—		—		159,383		159,808
Land	2,556		—		1,316		2,918		94,449		101,239
Office	7,366		—		1,696		1,888		688,390		699,340
Industrial	2,626		—		224		367		624,669		627,886
Retail	6,205		—		—		4,117		715,568		725,890
Multi-family	249		—		793		2,319		674,610		677,971
Mixed use and other	7,936		—		1,468		10,323		1,407,659		1,427,386
PCI - commercial real estate (1)	—		14,294		—		5,807		40,517		60,618
Total commercial real estate	27,363		14,294		5,497		27,739		4,435,482		4,510,375
Home equity	5,696		—		1,181		2,597		710,584		720,058
Residential real estate	15,730		—		670		2,696		448,528		467,624
PCI - residential real estate (1)	—		930		30		—		1,735		2,695
Premium finance receivables
Commercial insurance loans	14,110		7,115		6,279		14,157		2,336,231		2,377,892
Life insurance loans	—		—		7,533		6,942		1,712,328		1,726,803
PCI - life insurance loans (1)	—		—		—		—		407,602		407,602
Consumer and other	426		175		123		1,133		147,482		149,339
Total loans, net of unearned income, excluding covered loans	$	73,780	$	23,377	$	31,669	$	66,401	$	13,856,832	$	14,052,059
Covered loans	6,042		26,170		4,289		5,655		212,449		254,605
Total loans, net of unearned income	$	79,822	$	49,547	$	35,958	$	72,056	$	14,069,281	$	14,306,664

(1) PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30.Loan agings are based upon contractually required payments.

Our ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans. To do so, the Company operates a credit risk rating system under which our credit management personnel assign a credit risk rating (1 to 10 rating) to each loan at the time of origination and review loans on a regular basis.

Each loan officer is responsible for monitoring his or her loan portfolio, recommending a credit risk rating for each loan in his or her portfolio and ensuring the credit risk ratings are appropriate. These credit risk ratings are then ratified by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including: a borrower’s financial strength, cash flow coverage, collateral protection and guarantees.

The Company’s Problem Loan Reporting system automatically includes all loans with credit risk ratings of 6 through 9. This system is designed to provide an on-going detailed tracking mechanism for each problem loan. Once management determines that a loan has deteriorated to a point where it has a credit risk rating of 6 or worse, the Company’s Managed Asset Division performs an overall credit and collateral review. As part of this review, all underlying collateral is identified and the valuation methodology is analyzed and tracked. As a result of this initial review by the Company’s Managed Asset Division, the credit risk rating is reviewed and a portion of the outstanding loan balance may be deemed uncollectible or an impairment reserve may be established. The Company’s impairment analysis utilizes an independent re-appraisal of the collateral (unless such a third-party evaluation is not possible due to the unique nature of the collateral, such as a closely-held business or thinly traded securities). In the case of commercial real estate collateral, an independent third party appraisal is ordered by the Company’s Real Estate Services Group to determine if there has been any change in the underlying collateral value. These independent appraisals are reviewed by the Real Estate Services Group and sometimes by independent third party valuation experts and may be adjusted depending upon market conditions.

Through the credit risk rating process, loans are reviewed to determine if they are performing in accordance with the original contractual terms. If the borrower has failed to comply with the original contractual terms, further action may be required by the Company, including a downgrade in the credit risk rating, movement to non-accrual status, a charge-off or the establishment of a specific impairment reserve. If we determine that a loan amount, or portion thereof, is uncollectible, the loan’s credit risk rating is immediately downgraded to an 8 or 9 and the uncollectible amount is charged-off. Any loan that has a partial charge-off continues to be assigned a credit risk rating of an 8 or 9 for the duration of time that a balance remains outstanding. The Company undertakes a thorough and ongoing analysis to determine if additional impairment and/or charge-offs are appropriate and to begin a workout plan for the credit to minimize actual losses.

If, based on current information and events, it is probable that the Company will be unable to collect all amounts due to it according to the contractual terms of the loan agreement, a specific impairment reserve is established. In determining the appropriate charge-off for collateral-dependent loans, the Company considers the results of appraisals for the associated collateral.

Non-performing loans include all non-accrual loans (8 and 9 risk ratings) as well as loans 90 days past due and still accruing interest, excluding PCI and covered loans. The remainder of the portfolio is considered performing under the contractual terms of the loan agreement. The following table presents the recorded investment based on performance of loans by class, excluding covered loans, per the most recent analysis at September 30, 2015, December 31, 2014 and September 30, 2014:

	Performing						Non-performing						Total
(Dollars in thousands)	September 30, 2015		December 31, 2014		September 30,  2014		September 30, 2015		December 31, 2014		September 30, 2014		September 30, 2015		December 31, 2014		September 30, 2014
Loan Balances:
Commercial
Commercial and industrial	$	2,634,269	$	2,223,758	$	2,060,397	$	12,006	$	9,606	$	10,430	$	2,646,275	$	2,233,364	$	2,070,827
Franchise	222,001		233,316		238,300		—		—		—		222,001		233,316		238,300
Mortgage warehouse lines of credit	136,614		139,003		121,585		—		—		—		136,614		139,003		121,585
Community Advantage—homeowners association	123,209		106,364		99,595		—		—		—		123,209		106,364		99,595
Aircraft	6,371		8,065		6,146		—		—		—		6,371		8,065		6,146
Asset-based lending	802,358		806,377		781,902		12		25		25		802,370		806,402		781,927
Tax exempt	232,667		217,487		205,150		—		—		—		232,667		217,487		205,150
Leases	205,786		160,136		145,439		—		—		—		205,786		160,136		145,439
Other	1,953		11,034		11,403		—		—		—		1,953		11,034		11,403
PCI - commercial (1)	22,939		9,223		9,299		—		—		—		22,939		9,223		9,299
Total commercial	4,388,167		3,914,763		3,679,216		12,018		9,631		10,455		4,400,185		3,924,394		3,689,671
Commercial real estate
Residential construction	61,271		38,696		30,237		—		—		—		61,271		38,696		30,237
Commercial construction	285,932		187,536		159,383		31		230		425		285,963		187,766		159,808
Land	77,320		89,174		98,683		1,756		2,656		2,556		79,076		91,830		101,239
Office	786,266		698,144		691,974		4,045		7,288		7,366		790,311		705,432		699,340
Industrial	624,487		621,578		625,260		11,637		2,392		2,626		636,124		623,970		627,886
Retail	783,820		727,336		719,685		2,022		4,152		6,205		785,842		731,488		725,890
Multi-family	686,134		605,493		677,722		1,525		249		249		687,659		605,742		677,971
Mixed use and other	1,812,727		1,455,479		1,419,450		7,601		9,638		7,936		1,820,328		1,465,117		1,427,386
PCI - commercial real estate(1)	160,992		55,712		60,618		—		—		—		160,992		55,712		60,618
Total commercial real estate	5,278,949		4,479,148		4,483,012		28,617		26,605		27,363		5,307,566		4,505,753		4,510,375
Home equity	789,100		710,119		714,362		8,365		6,174		5,696		797,465		716,293		720,058
Residential real estate	553,504		465,806		451,894		14,557		15,502		15,730		568,061		481,308		467,624
PCI - residential real estate (1)	3,682		2,234		2,695		—		—		—		3,682		2,234		2,695
Premium finance receivables
Commercial insurance loans	2,385,093		2,330,463		2,356,667		21,982		20,370		21,225		2,407,075		2,350,833		2,377,892
Life insurance loans	2,326,689		1,884,092		1,726,803		—		—		—		2,326,689		1,884,092		1,726,803
PCI - life insurance loans (1)	373,586		393,479		407,602		—		—		—		373,586		393,479		407,602
Consumer and other	131,465		150,617		148,738		437		395		601		131,902		151,012		149,339
Total loans, net of unearned income, excluding covered loans	$	16,230,235	$	14,330,721	$	13,970,989	$	85,976	$	78,677	$	81,070	$	16,316,211	$	14,409,398	$	14,052,059

(1) PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. See Note 6 - Loans for further discussion of these purchased loans.

A summary of activity in the allowance for credit losses by loan portfolio (excluding covered loans) for the three months ended September 30, 2015 and 2014 is as follows:

Three months ended September 30, 2015				Commercial Real Estate			Home  Equity			Residential Real Estate			Premium Finance Receivable			Consumer and Other			Total, Excluding Covered Loans
(Dollars in thousands)	Commercial
Allowance for credit losses
Allowance for loan losses at beginning of period	$	32,900		$	42,198		$	12,288		$	5,019		$	6,921		$	878		$	100,204
Other adjustments	(12		)	(85		)	—			(6		)	(50		)	—			(153		)
Reclassification from allowance for unfunded lending-related commitments	—			(42		)	—			—			—			—			(42		)
Charge-offs	(964		)	(1,948		)	(1,116		)	(1,138		)	(1,595		)	(116		)	(6,877		)
Recoveries	462			213			42			136			294			52			1,199
Provision for credit losses	1,604			3,725			1,009			575			1,511			241			8,665
Allowance for loan losses at period end	$	33,990		$	44,061		$	12,223		$	4,586		$	7,081		$	1,055		$	102,996
Allowance for unfunded lending-related commitments at period end	$	—		$	926		$	—		$	—		$	—		$	—		$	926
Allowance for credit losses at period end	$	33,990		$	44,987		$	12,223		$	4,586		$	7,081		$	1,055		$	103,922
Individually evaluated for impairment	$	1,881		$	5,832		$	239		$	544		$	—		$	30		$	8,526
Collectively evaluated for impairment	31,943			38,361			11,984			4,042			7,081			1,024			94,435
Loans acquired with deteriorated credit quality	166			794			—			—			—			1			961
Loans at period end
Individually evaluated for impairment	$	18,211		$	68,947		$	8,365		$	18,267		$	—		$	430		$	114,220
Collectively evaluated for impairment	4,359,035			5,077,627			789,100			549,794			4,733,764			131,472			15,640,792
Loans acquired with deteriorated credit quality	22,939			160,992			—			3,682			373,586			—			561,199

Three months ended September 30, 2014	Commercial			Commercial Real Estate			Home  Equity			Residential Real Estate			Premium Finance Receivable			Consumer and Other			Total, Excluding Covered Loans
(Dollars in thousands)
Allowance for credit losses
Allowance for loan losses at beginning of period	$	26,038		$	40,702		$	13,918		$	3,733		$	6,309		$	1,553		$	92,253
Other adjustments	(32		)	(265		)	(1		)	(2		)	(35		)	—			(335		)
Reclassification from allowance for unfunded lending-related commitments	—			62			—			—			—			—			62
Charge-offs	(832		)	(4,510		)	(748		)	(205		)	(1,557		)	(250		)	(8,102		)
Recoveries	296			275			99			111			290			42			1,113
Provision for credit losses	2,442			2,395			(308		)	405			1,260			(166		)	6,028
Allowance for loan losses at period end	$	27,912		$	38,659		$	12,960		$	4,042		$	6,267		$	1,179		$	91,019
Allowance for unfunded lending-related commitments at period end	$	—		$	822		$	—		$	—		$	—		$	—		$	822
Allowance for credit losses at period end	$	27,912		$	39,481		$	12,960		$	4,042		$	6,267		$	1,179		$	91,841
Individually evaluated for impairment	$	2,296		$	3,507		$	292		$	512		$	—		$	53		$	6,660
Collectively evaluated for impairment	25,427			35,967			12,668			3,530			6,267			1,103			84,962
Loans acquired with deteriorated credit quality	189			7			—			—			—			23			219
Loans at period end
Individually evaluated for impairment	$	16,568		$	89,201		$	5,922		$	18,383		$	—		$	870		$	130,944
Collectively evaluated for impairment	3,663,804			4,360,556			714,136			449,241			4,104,695			148,469			13,440,901
Loans acquired with deteriorated credit quality	9,299			60,618			—			2,695			407,602			—			480,214

Nine months ended September 30, 2015				Commercial Real Estate			Home  Equity			Residential Real Estate			Premium Finance Receivable			Consumer and Other			Total, Excluding Covered Loans
(Dollars in thousands)	Commercial
Allowance for credit losses
Allowance for loan losses at beginning of period	$	31,699		$	35,533		$	12,500		$	4,218		$	6,513		$	1,242		$	91,705
Other adjustments	(42		)	(346		)	—			(14		)	(92		)	—			(494		)
Reclassification from allowance for unfunded lending-related commitments	—			(151		)	—			—			—			—			(151		)
Charge-offs	(2,884		)	(3,809		)	(3,547		)	(2,692		)	(4,384		)	(342		)	(17,658		)
Recoveries	1,117			2,349			129			228			1,081			139			5,043
Provision for credit losses	4,100			10,485			3,141			2,846			3,963			16			24,551
Allowance for loan losses at period end	$	33,990		$	44,061		$	12,223		$	4,586		$	7,081		$	1,055		$	102,996
Allowance for unfunded lending-related commitments at period end	$	—		$	926		$	—		$	—		$	—		$	—		$	926
Allowance for credit losses at period end	$	33,990		$	44,987		$	12,223		$	4,586		$	7,081		$	1,055		$	103,922

Nine months ended September 30, 2014	Commercial			Commercial Real Estate			Home  Equity			Residential Real Estate			Premium Finance Receivable			Consumer and Other			Total, Excluding Covered Loans
(Dollars in thousands)
Allowance for credit losses
Allowance for loan losses at beginning of period	$	23,092		$	48,658		$	12,611		$	5,108		$	5,583		$	1,870		$	96,922
Other adjustments	(69		)	(482		)	(3		)	(6		)	(28		)	—			(588		)
Reclassification from allowance for unfunded lending-related commitments	—			(102		)	—			—			—			—			(102		)
Charge-offs	(3,864		)	(11,354		)	(3,745		)	(1,120		)	(4,259		)	(636		)	(24,978		)
Recoveries	883			762			478			316			925			256			3,620
Provision for credit losses	7,870			1,177			3,619			(256		)	4,046			(311		)	16,145
Allowance for loan losses at period end	$	27,912		$	38,659		$	12,960		$	4,042		$	6,267		$	1,179		$	91,019
Allowance for unfunded lending-related commitments at period end	$	—		$	822		$	—		$	—		$	—		$	—		$	822
Allowance for credit losses at period end	$	27,912		$	39,481		$	12,960		$	4,042		$	6,267		$	1,179		$	91,841

A summary of activity in the allowance for covered loan losses for the three months ended September 30, 2015 and 2014 is as follows:

	Three Months Ended						Nine Months Ended
	September 30,			September 30,			September 30,			September 30,
(Dollars in thousands)	2015			2014			2015			2014
Balance at beginning of period	$	2,215		$	1,667		$	2,131		$	10,092
Provision for covered loan losses before benefit attributable to FDIC loss share agreements	(1,716		)	(818		)	(3,339		)	(8,703		)
Benefit attributable to FDIC loss share agreements	1,373			654			2,671			6,962
Net provision for covered loan losses	(343		)	(164		)	(668		)	(1,741		)
Decrease in FDIC indemnification asset	(1,373		)	(654		)	(2,671		)	(6,962		)
Loans charged-off	(287		)	(293		)	(664		)	(5,346		)
Recoveries of loans charged-off	2,706			2,099			4,790			6,612
Net recoveries (charge-offs)	2,419			1,806			4,126			1,266
Balance at end of period	$	2,918		$	2,655		$	2,918		$	2,655

In conjunction with FDIC-assisted transactions, the Company entered into loss share agreements with the FDIC. Additional expected losses, to the extent such expected losses result in the recognition of an allowance for loan losses, will increase the FDIC indemnification asset. The allowance for loan losses for loans acquired in FDIC-assisted transactions is determined without giving consideration to the amounts recoverable through loss share agreements (since the loss share agreements are separately accounted for and thus presented “gross” on the balance sheet). On the Consolidated Statements of Income, the provision for credit losses is reported net of changes in the amount recoverable under the loss share agreements. Reductions to expected losses, to the extent such reductions to expected losses are the result of an improvement to the actual or expected cash flows from the covered assets, will reduce the FDIC indemnification asset. Additions to expected losses will require an increase to the allowance for loan losses, and a corresponding increase to the FDIC indemnification asset. See “FDIC-Assisted Transactions” within Note 3 – Business Combinations for more detail.

Impaired Loans

A summary of impaired loans, including troubled debt restructurings ("TDRs"), is as follows:

	September 30,		December 31,		September 30,
(Dollars in thousands)	2015		2014		2014
Impaired loans (included in non-performing and TDRs):
Impaired loans with an allowance for loan loss required (1)	$	51,113	$	69,487	$	68,471
Impaired loans with no allowance for loan loss required	61,914		57,925		61,066
Total impaired loans (2)	$	113,027	$	127,412	$	129,537
Allowance for loan losses related to impaired loans	$	8,483	$	6,270	$	6,577
TDRs	$	59,320	$	82,275	$	83,385

(1) These impaired loans require an allowance for loan losses because the estimated fair value of the loans or related collateral is less than the recorded investment in the loans.

(2) Impaired loans are considered by the Company to be non-accrual loans, TDRs or loans with principal and/or interest at risk, even if theloan is current with all payments of principal and interest.

The following tables present impaired loans evaluated for impairment by loan class for the periods ended as follows:

							For the Nine Months Ended
	As of September 30, 2015						September 30, 2015
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average  Recorded Investment		Interest Income Recognized
(Dollars in thousands)
Impaired loans with a related ASC 310 allowance recorded
Commercial
Commercial and industrial	$	8,580	$	9,118	$	1,865	$	8,906	$	381
Franchise	—		—		—		—		—
Mortgage warehouse lines of credit	—		—		—		—		—
Community Advantage—homeowners association	—		—		—		—		—
Aircraft	—		—		—		—		—
Asset-based lending	—		—		—		—		—
Tax exempt	—		—		—		—		—
Leases	—		—		—		—		—
Other	—		—		—		—		—
Commercial real estate
Residential construction	—		—		—		—		—
Commercial construction	—		—		—		—		—
Land	3,559		7,309		31		3,713		362
Office	6,765		7,724		2,162		7,113		263
Industrial	10,049		10,542		1,550		10,662		421
Retail	8,899		9,596		381		8,906		306
Multi-family	1,199		1,622		203		1,210		60
Mixed use and other	7,162		7,345		1,501		7,250		224
Home equity	547		762		239		672		25
Residential real estate	4,225		4,326		521		4,280		130
Premium finance receivables
Commercial insurance	—		—		—		—		—
Life insurance	—		—		—		—		—
PCI - life insurance	—		—		—		—		—
Consumer and other	128		128		30		139		6
Impaired loans with no related ASC 310 allowance recorded
Commercial
Commercial and industrial	$	9,142	$	11,997	$	—	$	9,716	$	539
Franchise	—		—		—		—		—
Mortgage warehouse lines of credit	—		—		—		—		—
Community Advantage—homeowners association	—		—		—		—		—
Aircraft	—		—		—		—		—
Asset-based lending	12		1,573		—		4		66
Tax exempt	—		—		—		—		—
Leases	—		—		—		—		—
Other	—		—		—		—		—
Commercial real estate
Residential construction	2,023		2,023		—		2,023		73
Commercial construction	31		32		—		11		—
Land	4,114		4,874		—		4,232		130
Office	4,171		5,120		—		4,243		194
Industrial	2,255		2,448		—		2,304		141
Retail	3,140		3,302		—		3,305		104
Multi-family	1,330		1,635		—		1,522		50
Mixed use and other	13,788		16,576		—		14,668		563
Home equity	7,818		8,406		—		7,065		229
Residential real estate	13,788		15,932		—		14,387		449
Premium finance receivables
Commercial insurance	—		—		—		—		—
Life insurance	—		—		—		—		—
PCI - life insurance	—		—		—		—		—
Consumer and other	302		398		—		311		15
Total loans, net of unearned income, excluding covered loans	$	113,027	$	132,788	$	8,483	$	116,642	$	4,731

							For the Twelve Months Ended
	As of December 31, 2014						December 31, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average  Recorded Investment		Interest Income Recognized
(Dollars in thousands)
Impaired loans with a related ASC 310 allowance recorded
Commercial
Commercial and industrial	$	9,989	$	10,785	$	1,915	$	10,784	$	539
Franchise	—		—		—		—		—
Mortgage warehouse lines of credit	—		—		—		—		—
Community Advantage—homeowners association	—		—		—		—		—
Aircraft	—		—		—		—		—
Asset-based lending	—		—		—		—		—
Tax exempt	—		—		—		—		—
Leases	—		—		—		—		—
Other	—		—		—		—		—
Commercial real estate
Residential construction	—		—		—		—		—
Commercial construction	—		—		—		—		—
Land	5,011		8,626		43		5,933		544
Office	11,038		12,863		305		11,567		576
Industrial	195		277		15		214		13
Retail	11,045		14,566		487		12,116		606
Multi-family	2,808		3,321		158		2,839		145
Mixed use and other	21,777		24,076		2,240		21,483		1,017
Home equity	1,946		2,055		475		1,995		80
Residential real estate	5,467		5,600		606		5,399		241
Premium finance receivables
Commercial insurance	—		—		—		—		—
Life insurance	—		—		—		—		—
Purchased life insurance	—		—		—		—		—
Consumer and other	211		213		26		214		10
Impaired loans with no related ASC 310 allowance recorded
Commercial
Commercial and industrial	$	5,797	$	8,862	$	—	$	6,664	$	595
Franchise	—		—		—		—		—
Mortgage warehouse lines of credit	—		—		—		—		—
Community Advantage—homeowners association	—		—		—		—		—
Aircraft	—		—		—		—		—
Asset-based lending	25		1,952		—		87		100
Tax exempt	—		—		—		—		—
Leases	—		—		—		—		—
Other	—		—		—		—		—
Commercial real estate
Residential construction	—		—		—		—		—
Commercial construction	2,875		3,085		—		3,183		151
Land	10,210		10,941		—		10,268		430
Office	4,132		5,020		—		4,445		216
Industrial	4,160		4,498		—		3,807		286
Retail	5,487		7,470		—		6,915		330
Multi-family	—		—		—		—		—
Mixed use and other	7,985		8,804		—		9,533		449
Home equity	4,453		6,172		—		4,666		256
Residential real estate	12,640		14,334		—		12,682		595
Premium finance receivables
Commercial insurance	—		—		—		—		—
Life insurance	—		—		—		—		—
Purchased life insurance	—		—		—		—		—
Consumer and other	161		222		—		173		11
Total loans, net of unearned income, excluding covered loans	$	127,412	$	153,742	$	6,270	$	134,967	$	7,190

							For the Nine Months Ended
	As of September 30, 2014						September 30, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average  Recorded Investment		Interest Income Recognized
(Dollars in thousands)
Impaired loans with a related ASC 310 allowance recorded
Commercial
Commercial and industrial	$	8,384	$	11,333	$	2,273	$	9,367	$	537
Franchise	—		—		—		—		—
Mortgage warehouse lines of credit	—		—		—		—		—
Community Advantage—homeowners association	—		—		—		—		—
Aircraft	—		—		—		—		—
Asset-based lending	—		—		—		—		—
Tax exempt	—		—		—		—		—
Leases	—		—		—		—		—
Other	—		—		—		—		—
Commercial real estate
Residential construction	—		—		—		—		—
Commercial construction	425		440		195		432		15
Land	7,502		7,502		40		7,572		193
Office	8,198		9,671		322		8,493		300
Industrial	2,567		2,672		151		2,595		92
Retail	10,861		11,279		921		10,826		362
Multi-family	2,822		3,335		107		2,847		109
Mixed use and other	21,172		21,453		1,738		20,891		656
Home equity	1,438		1,533		292		1,491		42
Residential real estate	4,889		4,986		485		4,783		157
Premium finance receivables			—
Commercial insurance	—		—		—		—		—
Life insurance	—		—		—		—		—
Purchased life insurance	—		—		—		—		—
Consumer and other	213		215		53		215		6
Impaired loans with no related ASC 310 allowance recorded
Commercial
Commercial and industrial	$	7,563	$	8,285	$	—	$	7,909	$	306
Franchise	—		—		—		—		—
Mortgage warehouse lines of credit	—		—		—		—		—
Community Advantage—homeowners association	—		—		—		—		—
Aircraft	—		—		—		—		—
Asset-based lending	25		1,952		—		108		75
Tax exempt	—		—		—		—		—
Leases	—		—		—		—		—
Other	—		—		—		—		—
Commercial real estate
Residential construction	—		—		—		—		—
Commercial construction	2,803		2,803		—		2,777		98
Land	8,101		12,432		—		8,969		538
Office	5,159		6,359		—		6,679		244
Industrial	1,903		2,110		—		1,962		76
Retail	8,095		10,177		—		8,647		342
Multi-family	—		—		—		—		—
Mixed use and other	9,042		11,772		—		9,467		445
Home equity	4,484		6,490		—		4,806		207
Residential real estate	13,234		14,953		—		13,291		496
Premium finance receivables
Commercial insurance	—		—		—		—		—
Life insurance	—		—		—		—		—
Purchased life insurance	—		—		—		—		—
Consumer and other	657		721		—		665		29
Total loans, net of unearned income, excluding covered loans	$	129,537	$	152,473	$	6,577	$	134,792	$	5,325

TDRs

At September 30, 2015, the Company had $59.3 million in loans modified in TDRs. The $59.3 million in TDRs represents 114 credits in which economic concessions were granted to certain borrowers to better align the terms of their loans with their current ability to pay.

The Company’s approach to restructuring loans, excluding PCI loans, is built on its credit risk rating system which requires credit management personnel to assign a credit risk rating to each loan. In each case, the loan officer is responsible for recommending a credit risk rating for each loan and ensuring the credit risk ratings are appropriate. These credit risk ratings are then reviewed and approved by the bank’s chief credit officer and/or concurrence credit officer. Credit risk ratings are determined by evaluating a number of factors including a borrower’s financial strength, cash flow coverage, collateral protection and guarantees. The Company’s credit risk rating scale is one through ten with higher scores indicating higher risk. In the case of loans rated six or worse following modification, the Company’s Managed Assets Division evaluates the loan and the credit risk rating and determines that the loan has been restructured to be reasonably assured of repayment and of performance according to the modified terms and is supported by a current, well-documented credit assessment of the borrower’s financial condition and prospects for repayment under the revised terms.

A modification of a loan, excluding PCI loans, with an existing credit risk rating of six or worse or a modification of any other credit which will result in a restructured credit risk rating of six or worse, must be reviewed for possible TDR classification. In that event, our Managed Assets Division conducts an overall credit and collateral review. A modification of these loans is considered to be a TDR if both (1) the borrower is experiencing financial difficulty and (2) for economic or legal reasons, the bank grants a concession to a borrower that it would not otherwise consider. The modification of a loan, excluding PCI loans, where the credit risk rating is five or better both before and after such modification is not considered to be a TDR. Based on the Company’s credit risk rating system, it considers that borrowers whose credit risk rating is five or better are not experiencing financial difficulties and therefore, are not considered TDRs.

All credits determined to be a TDR will continue to be classified as a TDR in all subsequent periods, unless at any subsequent re-modification the borrower has been in compliance with the loan’s modified terms for a period of six months (including over a calendar year-end) and the current interest rate represents a market rate at the time of restructuring. The Managed Assets Division, in consultation with the respective loan officer, determines whether the modified interest rate represented a current market rate at the time of restructuring. Using knowledge of current market conditions and rates, competitive pricing on recent loan originations, and an assessment of various characteristics of the modified loan (including collateral position and payment history), an appropriate market rate for a new borrower with similar risk is determined. If the modified interest rate meets or exceeds this market rate for a new borrower with similar risk, the modified interest rate represents a market rate at the time of restructuring. Additionally, before removing a loan from TDR classification, a review of the current or previously measured impairment on the loan and any concerns related to future performance by the borrower is conducted. If concerns exist about the future ability of the borrower to meet its obligations under the loans based on a credit review by the Managed Assets Division, the TDR classification is not removed from the loan.

TDRs are reviewed at the time of the modification and on a quarterly basis to determine if a specific reserve is necessary. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan's original rate, or for collateral dependent loans, to the fair value of the collateral. Any shortfall is recorded as a specific reserve. The Company, in accordance with ASC 310-10, continues to individually measure impairment of these loans after the TDR classification is removed.

Each TDR was reviewed for impairment at September 30, 2015 and approximately $3.4 million of impairment was present and appropriately reserved for through the Company’s normal reserving methodology in the Company’s allowance for loan losses. For TDRs in which impairment is calculated by the present value of future cash flows, the Company records interest income representing the decrease in impairment resulting from the passage of time during the respective period, which differs from interest income from contractually required interest on these specific loans.  During the three months ended September 30, 2015 and 2014, the Company recorded $98,000 and $294,000, respectively, in interest income representing this decrease in impairment. For the nine months ended September 30, 2015 and 2014, the Company recorded $385,000 and $529,000, respectively, to interest income representing the reduction in impairment.

TDRs may arise in which, due to financial difficulties experienced by the borrower, the Company obtains through physical possession one or more collateral assets in satisfaction of all or part of an existing credit. Once possession is obtained, the Company reclassifies the appropriate portion of the remaining balance of the credit from loans to OREO, which is included within other assets in the Consolidated Statements of Condition. For any residential real estate property collateralizing a consumer mortgage loan, the Company is considered to possess the related collateral only if legal title is obtained upon completion of foreclosure, or the borrower conveys all interest in the residential real estate property to the Company through completion of a deed in lieu of foreclosure or similar legal agreement. Excluding covered OREO, at September 30, 2015, the Company had $15.7 million of foreclosed residential real estate properties included within OREO.

The tables below present a summary of the post-modification balance of loans restructured during the three and nine months ended September 30, 2015 and 2014, respectively, which represent TDRs:

Three months ended September 30, 2015 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial and industrial	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Commercial real estate
Office	—	—		—	—		—	—		—	—		—	—
Industrial	—	—		—	—		—	—		—	—		—	—
Retail	—	—		—	—		—	—		—	—		—	—
Multi-family	—	—		—	—		—	—		—	—		—	—
Mixed use and other	—	—		—	—		—	—		—	—		—	—
Residential real estate and other	1	222		1	222		1	222		—	—		—	—
Total loans	1	$	222	1	$	222	1	$	222	—	$	—	—	$	—

Three months ended September 30, 2014 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial and industrial	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Commercial real estate
Office	—	—		—	—		—	—		—	—		—	—
Industrial	—	—		—	—		—	—		—	—		—	—
Retail	—	—		—	—		—	—		—	—		—	—
Multi-family	—	—		—	—		—	—		—	—		—	—
Mixed use and other	—	—		—	—		—	—		—	—		—	—
Residential real estate and other	3	667		2	456		3	667		—	—		—	—
Total loans	3	$	667	2	$	456	3	$	667	—	$	—	—	$	—

(1) TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.

(2) Balances represent the recorded investment in the loan at the time of the restructuring.

During the three months ended September 30, 2015, one loan totaling $222,000 was determined to be a TDR, compared to three loans totaling $667,000 in the same period of 2014. Of these loans extended at below market terms, the weighted average extension had a term of approximately 214 months during the three months ended September 30, 2015 compared to 18 months for the same period of 2014. Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 338 basis points and 261 basis points during the three months ending September 30, 2015 and 2014, respectively. Additionally, no principal balances were forgiven in the third quarter of 2015 or 2014.

Nine months ended September 30, 2015 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial and industrial	—	$	—	—	$	—	—	$	—	—	$	—	—	$	—
Commercial real estate
Office	—	—		—	—		—	—		—	—		—	—
Industrial	1	169		1	169		—	—		1	169		—	—
Retail	—	—		—	—		—	—		—	—		—	—
Multi-family	—	—		—	—		—	—		—	—		—	—
Mixed use and other	—	—		—	—		—	—		—	—		—	—
Residential real estate and other	9	1,664		9	1,664		5	674		1	50		—	—
Total loans	10	$	1,833	10	$	1,833	5	$	674	2	$	219	—	$	—

Nine months ended September 30, 2014 (Dollars in thousands)	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to  Interest-only Payments (2)			Forgiveness of Debt(2)
	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial and industrial	1	$	88	1	$	88	—	$	—	1	$	88	—	$	—
Commercial real estate
Office	1	790		1	790		—	—		—	—		—	—
Industrial	1	1,078		1	1,078		—	—		1	1,078		—	—
Retail	1	202		1	202		—	—		—	—		—	—
Multi-family	1	181		—	—		1	181		—	—		—	—
Mixed use and other	7	4,926		3	2,837		7	4,926		1	1,273		—	—
Residential real estate and other	4	887		3	676		3	667		1	220		—	—
Total loans	16	$	8,152	10	$	5,671	11	$	5,774	4	$	2,659	—	$	—

(1) TDRs may have more than one modification representing a concession. As such, TDRs during the period may be represented in more than one of the categories noted above.

(2) Balances represent the recorded investment in the loan at the time of the restructuring.

During the nine months ended September 30, 2015, ten loans totaling $1.8 million were determined to be TDRs, compared to 16 loans totaling $8.2 million in the same period of 2014. Of these loans extended at below market terms, the weighted average extension had a term of approximately 49 months during the nine months ended September 30, 2015 compared to 14 months for the same period of 2014. Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 358 basis points and 178 basis points during the nine months ending September 30, 2015 and 2014, respectively. Interest-only payment terms were approximately 28 months and 9 months during the nine months ending September 30, 2015 and 2014, respectively. Additionally, no balances were forgiven in the first nine months of 2015 or 2014.

The following table presents a summary of all loans restructured in TDRs during the twelve months ended September 30, 2015 and 2014, and such loans which were in payment default under the restructured terms during the respective periods below:

(Dollars in thousands)	As of September 30, 2015			Three Months Ended September 30, 2015			Nine Months Ended September 30, 2015
	Total (1)(3)			Payments in Default  (2)(3)			Payments in Default  (2)(3)
	Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial and industrial	1	$	1,461	—	$	—	—	$	—
Commercial real estate
Land	—	—		—	—		—	—
Office	1	720		—	—		—	—
Industrial	2	854		1	685		1	685
Retail	—	—		—	—		—	—
Multi-family	—	—		—	—		—	—
Mixed use and other	—	—		—	—		—	—
Residential real estate and other	11	2,613		2	131		3	345
Total loans	15	$	5,648	3	$	816	4	$	1,030

(1) Total TDRs represent all loans restructured in TDRs during the previous twelve months from the date indicated.

(2) TDRs considered to be in payment default are over 30 days past-due subsequent to the restructuring.

(3) Balances represent the recorded investment in the loan at the time of the restructuring.

(Dollars in thousands)	As of September 30, 2014			Three Months Ended September 30, 2014			Nine Months Ended September 30, 2014
	Total (1)(3)			Payments in Default  (2)(3)			Payments in Default  (2)(3)
	Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial and industrial	1	$	88	1	$	88	1	$	88
Commercial real estate
Land	—	—		—	—		—	—
Office	1	790		—	—		—	—
Industrial	1	1,078		1	1,078		1	1,078
Retail	1	202		—	—		—	—
Multi-family	1	181		—	—		—	—
Mixed use and other	10	6,341		2	482		2	482
Residential real estate and other	6	1,406		2	380		2	380
Total loans	21	$	10,086	6	$	2,028	6	$	2,028

(1) Total TDRs represent all loans restructured in TDRs during the previous twelve months from the date indicated.

(2) TDRs considered to be in payment default are over 30 days past-due subsequent to the restructuring.

(3) Balances represent the recorded investment in the loan at the time of the restructuring.