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Allowance for Loan Losses, Allowance for Losses on Lending-Related Commitments and Impaired Loans (Tables)
 6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Schedule of Aging of the Company's Loan Portfolio
The tables below show the aging of the Company’s loan portfolio at June 30, 2018, December 31, 2017 and June 30, 2017:
As of June 30, 2018
 
 
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, industrial and other
$
13,543

 
$
—

 
$
1,384

 
$
9,196

 
$
4,597,666

 
$
4,621,789

Franchise
2,438

 
—

 
408

 
—

 
954,493

 
957,339

Mortgage warehouse lines of credit
—

 
—

 
—

 
—

 
200,060

 
200,060

Asset-based lending
2,158

 
—

 
1,146

 
6,411

 
1,033,040

 
1,042,755

Leases
249

 
—

 
—

 
89

 
458,276

 
458,614

PCI - commercial (1)
—

 
882

 
126

 
227

 
7,268

 
8,503

Total commercial
18,388

 
882

 
3,064

 
15,923

 
7,250,803

 
7,289,060

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
Construction
1,554

 
—

 
—

 
1,098

 
804,583

 
807,235

Land
228

 
—

 
—

 
478

 
114,651

 
115,357

Office
1,333

 
—

 
207

 
1,403

 
891,406

 
894,349

Industrial
185

 
—

 
—

 
1,126

 
881,214

 
882,525

Retail
11,540

 
—

 
372

 
5,473

 
850,254

 
867,639

Multi-family
342

 
—

 
—

 
611

 
951,095

 
952,048

Mixed use and other
4,013

 
—

 
408

 
9,856

 
1,934,965

 
1,949,242

PCI - commercial real estate (1)
—

 
3,194

 
3,132

 
7,637

 
92,726

 
106,689

Total commercial real estate
19,195

 
3,194

 
4,119

 
27,682

 
6,520,894

 
6,575,084

Home equity
9,096

 
—

 
—

 
3,226

 
581,178

 
593,500

Residential real estate, including PCI
15,825

 
1,472

 
3,637

 
1,534

 
873,002

 
895,470

Premium finance receivables
 
 
 
 
 
 
 
 
 
 
 
Commercial insurance loans
14,832

 
5,159

 
8,848

 
10,535

 
2,794,078

 
2,833,452

Life insurance loans
—

 
—

 
26,770

 
17,211

 
4,074,685

 
4,118,666

PCI - life insurance loans (1)
—

 
—

 
—

 
—

 
183,622

 
183,622

Consumer and other, including PCI
563

 
286

 
150

 
310

 
120,397

 
121,706

Total loans, net of unearned income
$
77,899

 
$
10,993

 
$
46,588

 
$
76,421

 
$
22,398,659

 
$
22,610,560



As of December 31, 2017
 
 
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, industrial and other
$
11,260

 
$
—

 
$
3,746

 
$
13,392

 
$
4,314,107

 
$
4,342,505

Franchise
2,447

 
—

 
—

 
—

 
845,150

 
847,597

Mortgage warehouse lines of credit
—

 
—

 
—

 
4,000

 
190,523

 
194,523

Asset-based lending
1,550

 
—

 
283

 
10,057

 
968,576

 
980,466

Leases
439

 
—

 
3

 
1,958

 
410,772

 
413,172

PCI - commercial (1)
—

 
877

 
186

 
—

 
8,351

 
9,414

Total commercial
15,696

 
877

 
4,218

 
29,407

 
6,737,479

 
6,787,677

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Construction
3,143

 
—

 
—

 
200

 
742,171

 
745,514

Land
188

 
—

 
—

 
5,156

 
121,140

 
126,484

Office
2,438

 
—

 
—

 
4,458

 
887,937

 
894,833

Industrial
811

 
—

 
—

 
2,412

 
879,796

 
883,019

Retail
12,328

 
—

 
668

 
148

 
938,383

 
951,527

Multi-family
—

 
—

 
—

 
1,034

 
914,610

 
915,644

Mixed use and other
3,140

 
—

 
1,423

 
9,641

 
1,921,501

 
1,935,705

PCI - commercial real estate (1)
—

 
7,135

 
2,255

 
6,277

 
112,225

 
127,892

Total commercial real estate
22,048

 
7,135

 
4,346

 
29,326

 
6,517,763

 
6,580,618

Home equity
8,978

 
—

 
518

 
4,634

 
648,915

 
663,045

Residential real estate, including PCI
17,977

 
5,304

 
1,303

 
8,378

 
799,158

 
832,120

Premium finance receivables
 
 
 
 
 
 
 
 
 
 
 
Commercial insurance loans
12,163

 
9,242

 
17,796

 
15,849

 
2,579,515

 
2,634,565

Life insurance loans
—

 
—

 
4,837

 
10,017

 
3,820,936

 
3,835,790

PCI - life insurance loans (1)
—

 
—

 
—

 
—

 
199,269

 
199,269

Consumer and other, including PCI
740

 
101

 
242

 
727

 
105,903

 
107,713

Total loans, net of unearned income
$
77,602

 
$
22,659

 
$
33,260

 
$
98,338

 
$
21,408,938

 
$
21,640,797


(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 June 30, 2017
 
 
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, industrial and other
$
8,720

 
$
—

 
$
5,917

 
$
12,658

 
$
4,067,237

 
$
4,094,532

Franchise
—

 
—

 
—

 
—

 
838,394

 
838,394

Mortgage warehouse lines of credit
—

 
—

 
—

 
2,361

 
232,282

 
234,643

Asset-based lending
936

 
—

 
983

 
7,293

 
862,694

 
871,906

Leases
535

 
—

 
—

 
60

 
356,009

 
356,604

PCI - commercial (1)
—

 
1,572

 
162

 
—

 
8,476

 
10,210

Total commercial
10,191

 
1,572

 
7,062

 
22,372

 
6,365,092

 
6,406,289

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
Construction
2,408

 
—

 
—

 
—

 
707,179

 
709,587

Land
202

 
—

 
—

 
6,455

 
105,496

 
112,153

Office
4,806

 
—

 
607

 
7,725

 
874,546

 
887,684

Industrial
2,193

 
—

 
—

 
709

 
789,889

 
792,791

Retail
1,635

 
—

 
—

 
15,081

 
903,778

 
920,494

Multi-family
354

 
—

 
—

 
1,186

 
813,058

 
814,598

Mixed use and other
5,382

 
—

 
713

 
7,590

 
2,005,265

 
2,018,950

PCI - commercial real estate (1)
—

 
8,768

 
322

 
3,303

 
133,844

 
146,237

Total commercial real estate
16,980

 
8,768

 
1,642

 
42,049

 
6,333,055

 
6,402,494

Home equity
9,482

 
—

 
855

 
2,858

 
676,288

 
689,483

Residential real estate, including PCI
14,292

 
775

 
1,273

 
300

 
746,170

 
762,810

Premium finance receivables
 
 
 
 
 
 
 
 
 
 
 
Commercial insurance loans
10,456

 
5,922

 
4,951

 
11,713

 
2,615,344

 
2,648,386

Life insurance loans
—

 
1,046

 
—

 
16,977

 
3,474,686

 
3,492,709

PCI - life insurance loans (1)
—

 
—

 
—

 
—

 
226,334

 
226,334

Consumer and other, including PCI
439

 
125

 
331

 
515

 
113,417

 
114,827

Total loans, net of unearned income, excluding covered loans
$
61,840

 
$
18,208

 
$
16,114

 
$
96,784

 
$
20,550,386

 
$
20,743,332

Covered loans
1,961

 
2,504

 
113

 
598

 
44,943

 
50,119

Total loans, net of unearned income
$
63,801

 
$
20,712

 
$
16,227

 
$
97,382

 
$
20,595,329

 
$
20,793,451

(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.
Summary of Performance by Loan Class
The following table presents the recorded investment based on performance of loans by class, excluding covered loans, per the most recent analysis at June 30, 2018, December 31, 2017 and June 30, 2017:
 
Performing
 
Non-performing
 
Total
(Dollars in thousands)
June 30,
2018
 
December 31,
2017
 
June 30,
2017
 
June 30,
2018
 
December 31,
2017
 
June 30,
2017
 
June 30,
2018
 
December 31,
2017
 
June 30,
2017
Loan Balances:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial and other
$
4,608,246

 
$
4,331,245

 
$
4,085,812

 
$
13,543

 
$
11,260

 
$
8,720

 
$
4,621,789

 
$
4,342,505

 
$
4,094,532

Franchise
954,901

 
845,150

 
838,394

 
2,438

 
2,447

 
—

 
957,339

 
847,597

 
838,394

Mortgage warehouse lines of credit
200,060

 
194,523

 
234,643

 
—

 
—

 
—

 
200,060

 
194,523

 
234,643

Asset-based lending
1,040,597

 
978,916

 
870,970

 
2,158

 
1,550

 
936

 
1,042,755

 
980,466

 
871,906

Leases
458,365

 
412,733

 
356,069

 
249

 
439

 
535

 
458,614

 
413,172

 
356,604

PCI - commercial (1)
8,503

 
9,414

 
10,210

 
—

 
—

 
—

 
8,503

 
9,414

 
10,210

Total commercial
7,270,672

 
6,771,981

 
6,396,098

 
18,388

 
15,696

 
10,191

 
7,289,060

 
6,787,677

 
6,406,289

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Construction
805,681

 
742,371

 
707,179

 
1,554

 
3,143

 
2,408

 
807,235

 
745,514

 
709,587

Land
115,129

 
126,296

 
111,951

 
228

 
188

 
202

 
115,357

 
126,484

 
112,153

Office
893,016

 
892,395

 
882,878

 
1,333

 
2,438

 
4,806

 
894,349

 
894,833

 
887,684

Industrial
882,340

 
882,208

 
790,598

 
185

 
811

 
2,193

 
882,525

 
883,019

 
792,791

Retail
856,099

 
939,199

 
918,859

 
11,540

 
12,328

 
1,635

 
867,639

 
951,527

 
920,494

Multi-family
951,706

 
915,644

 
814,244

 
342

 
—

 
354

 
952,048

 
915,644

 
814,598

Mixed use and other
1,945,229

 
1,932,565

 
2,013,568

 
4,013

 
3,140

 
5,382

 
1,949,242

 
1,935,705

 
2,018,950

PCI - commercial real estate(1)
106,689

 
127,892

 
146,237

 
—

 
—

 
—

 
106,689

 
127,892

 
146,237

Total commercial real estate
6,555,889

 
6,558,570

 
6,385,514

 
19,195

 
22,048

 
16,980

 
6,575,084

 
6,580,618

 
6,402,494

Home equity
584,404

 
654,067

 
680,001

 
9,096

 
8,978

 
9,482

 
593,500

 
663,045

 
689,483

Residential real estate, including PCI
879,645

 
810,865

 
748,339

 
15,825

 
21,255

 
14,471

 
895,470

 
832,120

 
762,810

Premium finance receivables
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial insurance loans
2,813,461

 
2,613,160

 
2,632,008

 
19,991

 
21,405

 
16,378

 
2,833,452

 
2,634,565

 
2,648,386

Life insurance loans
4,118,666

 
3,835,790

 
3,491,663

 
—

 
—

 
1,046

 
4,118,666

 
3,835,790

 
3,492,709

PCI - life insurance loans (1)
183,622

 
199,269

 
226,334

 
—

 
—

 
—

 
183,622

 
199,269

 
226,334

Consumer and other, including PCI
120,919

 
106,933

 
114,325

 
787

 
780

 
502

 
121,706

 
107,713

 
114,827

Total loans, net of unearned income, excluding covered loans
$
22,527,278

 
$
21,550,635

 
$
20,674,282

 
$
83,282

 
$
90,162

 
$
69,050

 
$
22,610,560

 
$
21,640,797

 
$
20,743,332

(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.
Summary of Activity in the Allowance for Credit Losses
A summary of activity in the allowance for credit losses by loan portfolio (excluding covered loans) for the six months ended June 30, 2018 and 2017 is as follows:
Three months ended June 30, 2018
 
 
Commercial Real Estate
 
Home  Equity
 
Residential Real Estate
 
Premium Finance Receivables
 
Consumer and Other
 
Total, Excluding Covered Loans
(Dollars in thousands)
Commercial
 
 
 
 
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses at beginning of period
$
57,636

 
$
57,481

 
$
9,860

 
$
6,278

 
$
7,333

 
$
915

 
$
139,503

Other adjustments
(1
)
 
(27
)
 
—

 
(2
)
 
(14
)
 
—

 
(44
)
Reclassification from allowance for unfunded lending-related commitments
—

 
—

 
—

 
—

 
—

 
—

 
—

Charge-offs
(2,210
)
 
(155
)
 
(612
)
 
(180
)
 
(3,254
)
 
(459
)
 
(6,870
)
Recoveries
666

 
2,387

 
171

 
1,522

 
975

 
49

 
5,770

Provision for credit losses
4,636

 
(2,026
)
 
132

 
(1,282
)
 
2,694

 
889

 
5,043

Allowance for loan losses at period end
$
60,727

 
$
57,660

 
$
9,551

 
$
6,336

 
$
7,734

 
$
1,394

 
$
143,402

Allowance for unfunded lending-related commitments at period end
$
—

 
$
1,243

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,243

Allowance for credit losses at period end
$
60,727

 
$
58,903

 
$
9,551

 
$
6,336

 
$
7,734

 
$
1,394

 
$
144,645

Individually evaluated for impairment
$
4,406

 
$
3,190

 
$
732

 
$
106

 
$
—

 
$
120

 
$
8,554

Collectively evaluated for impairment
55,834

 
55,611

 
8,819

 
6,199

 
7,734

 
1,274

 
135,471

Loans acquired with deteriorated credit quality
487

 
102

 
—

 
31

 
—

 
—

 
620

Loans at period end
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
55,948

 
$
34,588

 
$
9,917

 
$
19,554

 
$
—

 
$
603

 
$
120,610

Collectively evaluated for impairment
7,224,562

 
6,433,615

 
583,583

 
798,175

 
6,952,118

 
119,399

 
22,111,452

Loans acquired with deteriorated credit quality
8,550

 
106,881

 
—

 
10,560

 
183,622

 
1,704

 
311,317

Loans held at fair value
—

 
—

 
—

 
67,181

 
—

 
—

 
67,181

Three months ended June 30, 2017
Commercial
 
Commercial Real Estate
 
Home  Equity
 
Residential Real Estate
 
Premium Finance Receivables
 
Consumer and Other
 
Total, Excluding Covered Loans
(Dollars in thousands)
 
 
 
 
 
 
Allowance for credit losses
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses at beginning of period
$
46,582

 
$
52,633

 
$
12,203

 
$
5,530

 
$
7,559

 
$
1,312

 
$
125,819

Other adjustments
(2
)
 
(47
)
 
—

 
(3
)
 
22

 
—

 
(30
)
Reclassification from allowance for unfunded lending-related commitments
92

 
14

 
—

 
—

 
—

 
—

 
106

Charge-offs
(913
)
 
(1,985
)
 
(1,631
)
 
(146
)
 
(1,878
)
 
(175
)
 
(6,728
)
Recoveries
561

 
276

 
144

 
54

 
404

 
33

 
1,472

Provision for credit losses
6,038

 
1,448

 
418

 
708

 
245

 
95

 
8,952

Allowance for loan losses at period end
$
52,358

 
$
52,339

 
$
11,134

 
$
6,143

 
$
6,352

 
$
1,265

 
$
129,591

Allowance for unfunded lending-related commitments at period end
$
500

 
$
1,205

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,705

Allowance for credit losses at period end
$
52,858

 
$
53,544

 
$
11,134

 
$
6,143

 
$
6,352

 
$
1,265

 
$
131,296

Individually evaluated for impairment
$
2,528

 
$
1,473

 
$
1,296

 
$
764

 
$
—

 
$
91

 
$
6,152

Collectively evaluated for impairment
49,692

 
51,952

 
9,838

 
5,306

 
6,352

 
1,174

 
124,314

Loans acquired with deteriorated credit quality
638

 
119

 
—

 
73

 
—

 
—

 
830

Loans at period end
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
14,469

 
$
34,690

 
$
9,633

 
$
20,859

 
$
—

 
$
421

 
$
80,072

Collectively evaluated for impairment
6,381,610

 
6,221,567

 
679,850

 
708,042

 
6,141,095

 
113,319

 
20,245,483

Loans acquired with deteriorated credit quality
10,210

 
146,237

 
—

 
3,736

 
226,334

 
1,087

 
387,604

Loans held at fair value
—

 
—

 
—

 
30,173

 
—

 
—

 
30,173



Six months ended June 30, 2018
 
 
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
$
57,811

 
$
55,227

 
$
10,493

 
$
6,688

 
$
6,846

 
$
840

 
$
137,905

Other adjustments
(2
)
 
(51
)
 
—

 
(5
)
 
(26
)
 
—

 
(84
)
Reclassification from allowance for unfunded lending-related commitments
—

 
26

 
—

 
—

 
—

 
—

 
26

Charge-offs
(4,897
)
 
(968
)
 
(969
)
 
(751
)
 
(7,975
)
 
(588
)
 
(16,148
)
Recoveries
928

 
4,074

 
294

 
1,562

 
1,360

 
96

 
8,314

Provision for credit losses
6,887

 
(648
)
 
(267
)
 
(1,158
)
 
7,529

 
1,046

 
13,389

Allowance for loan losses at period end
$
60,727

 
$
57,660

 
$
9,551

 
$
6,336

 
$
7,734

 
$
1,394

 
$
143,402

Allowance for unfunded lending-related commitments at period end
$
—

 
$
1,243

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,243

Allowance for credit losses at period end
$
60,727

 
$
58,903

 
$
9,551

 
$
6,336

 
$
7,734

 
$
1,394

 
$
144,645


Six months ended June 30, 2017
 
 
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
$
44,493

 
$
51,422

 
$
11,774

 
$
5,714

 
$
7,625

 
$
1,263

 
$
122,291

Other adjustments
(21
)
 
(83
)
 
—

 
(7
)
 
25

 
—

 
(86
)
Reclassification from allowance for unfunded lending-related commitments
—

 
(32
)
 
—

 
—

 
—

 
—

 
(32
)
Charge-offs
(1,554
)
 
(2,246
)
 
(2,256
)
 
(475
)
 
(3,305
)
 
(309
)
 
(10,145
)
Recoveries
834

 
830

 
209

 
232

 
1,016

 
174

 
3,295

Provision for credit losses
8,606

 
2,448

 
1,407

 
679

 
991

 
137

 
14,268

Allowance for loan losses at period end
$
52,358

 
$
52,339

 
$
11,134

 
$
6,143

 
$
6,352

 
$
1,265

 
$
129,591

Allowance for unfunded lending-related commitments at period end
$
500

 
$
1,205

 
$
—

 
$
—

 
$
—

 
$
—

 
$
1,705

Allowance for credit losses at period end
$
52,858

 
$
53,544

 
$
11,134

 
$
6,143

 
$
6,352

 
$
1,265

 
$
131,296
Summary Of Activity In Allowance For Covered Loan By FDIC Loss Table
A summary of activity in the allowance for covered loan losses for the three and six months ended June 30, 2017 is as follows:
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
(Dollars in thousands)
2017
 
2017
Balance at beginning of period
$
1,319

 
$
1,322

Provision for covered loan losses before benefit attributable to FDIC loss share agreements
(303
)
 
(838
)
Benefit attributable to FDIC loss share agreements
242

 
670

Net provision for covered loan losses
(61
)
 
(168
)
Increase in FDIC indemnification liability
(242
)
 
(670
)
Loans charged-off
(120
)
 
(336
)
Recoveries of loans charged-off
178

 
926

Net (charge-offs) recoveries
58

 
590

Balance at end of period
$
1,074

 
$
1,074
Summary of Impaired Loans, Including Restructured Loans
A summary of impaired loans, including troubled debt restructurings ("TDRs"), is as follows:
 
June 30,
 
December 31,
 
June 30,
(Dollars in thousands)
2018
 
2017
 
2017
Impaired loans (included in non-performing and TDRs):
 
 
 
 
 
Impaired loans with an allowance for loan loss required (1)
$
39,956

 
$
36,084

 
$
29,037

Impaired loans with no allowance for loan loss required
80,346

 
69,004

 
50,281

Total impaired loans (2)
$
120,302

 
$
105,088

 
$
79,318

Allowance for loan losses related to impaired loans
$
8,541

 
$
8,023

 
$
5,633

TDRs
$
65,310

 
$
49,786

 
$
33,091

(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 the loan is current with all payments of principal and interest.
Summary of Impaired Loans by Loan Class
The following tables present impaired loans by loan class, excluding covered loans, for the periods ended as follows:
 
 
 
 
 
 
 
For the Six Months Ended
 
As of June 30, 2018
 
June 30, 2018
 
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, industrial and other
$
8,942

 
$
9,022

 
$
2,948

 
$
9,458

 
$
278

Franchise
2,399

 
2,399

 
1,208

 
2,415

 
68

Asset-based lending
469

 
469

 
225

 
529

 
20

Leases
2,062

 
2,091

 
25

 
2,126

 
54

Commercial real estate
 
 
 
 
 
 
 
 
 
Construction
1,554

 
1,554

 
390

 
1,554

 
36

Land
1,500

 
1,500

 
1

 
1,533

 
34

Office
1,002

 
1,604

 
65

 
1,010

 
37

Industrial
—

 
—

 
—

 
—

 
—

Retail
15,252

 
15,441

 
2,497

 
15,267

 
344

Multi-family
1,205

 
1,205

 
14

 
1,214

 
22

Mixed use and other
1,510

 
1,722

 
210

 
1,822

 
53

Home equity
1,305

 
1,403

 
732

 
1,315

 
32

Residential real estate
2,450

 
2,702

 
106

 
2,472

 
59

Consumer and other
306

 
328

 
120

 
309

 
9

Impaired loans with no related ASC 310 allowance recorded
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial, industrial and other
$
18,260

 
$
19,731

 
$
—

 
$
18,717

 
$
211

Franchise
21,417

 
21,418

 
—

 
21,740

 
640

Asset-based lending
1,689

 
2,494

 
—

 
2,432

 
73

Leases
710

 
710

 
—

 
738

 
22

Commercial real estate
 
 
 
 
 
 
 
 
 
Construction
1,320

 
3,663

 
—

 
2,606

 
96

Land
2,375

 
2,482

 
—

 
2,382

 
65

Office
1,380

 
2,075

 
—

 
1,387

 
58

Industrial
240

 
363

 
—

 
251

 
10

Retail
1,845

 
2,058

 
—

 
1,875

 
75

Multi-family
342

 
477

 
—

 
358

 
8

Mixed use and other
4,755

 
5,366

 
—

 
5,006

 
165

Home equity
8,612

 
12,977

 
—

 
8,818

 
324

Residential real estate
17,104

 
20,137

 
—

 
17,341

 
417

Consumer and other
297

 
421

 
—

 
304

 
10

Total impaired loans, net of unearned income
$
120,302

 
$
135,812

 
$
8,541

 
$
124,979

 
$
3,220

 
 
 
 
 
 
 
For the Twelve Months Ended
 
As of December 31, 2017
 
December 31, 2017
 
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, industrial and other
$
6,233

 
$
7,323

 
$
3,951

 
$
7,220

 
$
452

Franchise
—

 
—

 
—

 
—

 
—

Asset-based lending
948

 
949

 
355

 
1,302

 
72

Leases
2,331

 
2,337

 
158

 
2,463

 
117

Commercial real estate
 
 
 
 
 
 
 
 
 
Construction
3,097

 
3,897

 
403

 
3,690

 
197

Land
—

 
—

 
—

 
—

 
—

Office
471

 
471

 
5

 
481

 
24

Industrial
408

 
408

 
40

 
414

 
25

Retail
15,599

 
15,657

 
1,336

 
15,736

 
624

Multi-family
—

 
—

 
—

 
—

 
—

Mixed use and other
1,567

 
1,586

 
379

 
1,599

 
77

Home equity
1,606

 
1,869

 
784

 
1,626

 
81

Residential real estate
3,798

 
3,910

 
586

 
3,790

 
146

Consumer and other
26

 
28

 
26

 
27

 
2

Impaired loans with no related ASC 310 allowance recorded
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial, industrial and other
$
8,460

 
$
12,259

 
$
—

 
$
10,170

 
$
683

Franchise
16,256

 
16,256

 
—

 
17,089

 
780

Asset-based lending
602

 
602

 
—

 
688

 
40

Leases
782

 
782

 
—

 
845

 
49

Commercial real estate
 
 
 
 
 
 
 
 
 
Construction
1,367

 
1,678

 
—

 
1,555

 
84

Land
3,961

 
4,192

 
—

 
4,129

 
182

Office
2,438

 
6,140

 
—

 
3,484

 
330

Industrial
403

 
2,010

 
—

 
1,849

 
174

Retail
2,393

 
3,538

 
—

 
2,486

 
221

Multi-family
1,231

 
2,078

 
—

 
1,246

 
76

Mixed use and other
5,275

 
6,731

 
—

 
5,559

 
351

Home equity
7,648

 
11,648

 
—

 
9,114

 
603

Residential real estate
17,455

 
20,327

 
—

 
17,926

 
860

Consumer and other
733

 
890

 
—

 
773

 
48

Total impaired loans, net of unearned income
$
105,088

 
$
127,566

 
$
8,023

 
$
115,261

 
$
6,298

 
 
 
 
 
 
 
For the Six Months Ended
 
As of June 30, 2017
 
June 30, 2017
 
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, industrial and other
$
2,969

 
$
3,006

 
$
1,499

 
$
3,061

 
$
83

Franchise
—

 
—

 
—

 
—

 
—

Asset-based lending
511

 
512

 
293

 
704

 
21

Leases
2,504

 
2,508

 
235

 
2,578

 
62

Commercial real estate
 
 
 
 
 
 
 
 
 
Construction
7,632

 
7,632

 
957

 
7,665

 
165

Land
1,750

 
1,750

 
7

 
1,750

 
32

Office
1,314

 
1,418

 
32

 
1,318

 
44

Industrial
—

 
—

 
—

 
—

 
—

Retail
1,582

 
1,631

 
130

 
1,596

 
40

Multi-family
1,513

 
1,513

 
27

 
1,518

 
28

Mixed use and other
1,455

 
1,531

 
302

 
1,478

 
35

Home equity
1,901

 
1,950

 
1,296

 
1,920

 
35

Residential real estate
5,815

 
6,090

 
764

 
5,731

 
118

Consumer and other
91

 
93

 
91

 
96

 
2

Impaired loans with no related ASC 310 allowance recorded
 
 
 
 
 
 
 
 
 
Commercial
 
 
 
 
 
 
 
 
 
Commercial, industrial and other
$
6,815

 
$
7,785

 
$
—

 
$
7,285

 
$
213

Franchise
—

 
—

 
—

 
—

 
—

Asset-based lending
425

 
425

 
—

 
764

 
16

Leases
852

 
852

 
—

 
879

 
26

Commercial real estate
 
 
 
 
 
 
 
 
 
Construction
1,504

 
1,504

 
—

 
1,534

 
33

Land
2,375

 
2,472

 
—

 
2,380

 
56

Office
3,973

 
5,074

 
—

 
4,076

 
131

Industrial
2,193

 
3,622

 
—

 
4,328

 
190

Retail
1,188

 
1,273

 
—

 
1,188

 
51

Multi-family
89

 
174

 
—

 
89

 
4

Mixed use and other
7,761

 
9,299

 
—

 
8,494

 
239

Home equity
7,732

 
11,260

 
—

 
8,906

 
258

Residential real estate
15,044

 
17,068

 
—

 
15,203

 
368

Consumer and other
330

 
434

 
—

 
333

 
11

Total impaired loans, net of unearned income
$
79,318

 
$
90,876

 
$
5,633

 
$
84,874

 
$
2,261
Summary of the Post-Modification Balance of TDRs
Six months ended
June 30, 2018

(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, industrial and other
 
3

 
$
12,923

 
2

 
$
173

 
—

 
$
—

 
1

 
$
12,750

 
—

 
$
—

Franchise
 
2

 
5,122

 
—

 
—

 
—

 
—

 
2

 
5,122

 
—

 
—

Leases
 
1

 
239

 
1

 
239

 
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office
 
1

 
59

 
1

 
59

 
—

 
—

 
—

 
—

 
—

 
—

Mixed use and other
 
1

 
85

 
1

 
85

 
1

 
85

 
—

 
—

 
—

 
—

Residential real estate and other
 
11

 
2,167

 
11

 
2,167

 
5

 
796

 
—

 
—

 
—

 
—

Total loans
 
19

 
$
20,595

 
16

 
$
2,723

 
6

 
$
881

 
3

 
$
17,872

 
—

 
$
—


Six months ended
June 30, 2017

(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, industrial and other
 
1

 
$
95

 
1

 
$
95

 
—

 
$
—

 
—

 
$
—

 
—

 
$
—

Franchise
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Leases
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Mixed use and other
 
1

 
1,245

 
1

 
1,245

 
—

 
—

 
—

 
—

 
—

 
—

Residential real estate and other
 
6

 
2,383

 
6

 
2,383

 
5

 
2,334

 
—

 
—

 
—

 
—

Total loans
 
8

 
$
3,723

 
8

 
$
3,723

 
5

 
$
2,334

 
—

 
$
—

 
—

 
$
—

(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.
The tables below present a summary of the post-modification balance of loans restructured during the three and six months ended June 30, 2018 and 2017, respectively, which represent TDRs:
Three months ended
June 30, 2018

(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, industrial and other
 
2

 
$
12,827

 
1

 
$
77

 
—

 
$
—

 
1

 
$
12,750

 
—

 
$
—

Franchise
 
2

 
5,122

 
—

 
—

 
—

 
—

 
2

 
5,122

 
—

 
—

Leases
 
1

 
239

 
1

 
239

 
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Mixed use and other
 
1

 
85

 
1

 
85

 
1

 
85

 
—

 
—

 
—

 
—

Residential real estate and other
 
6

 
1,332

 
6

 
1,332

 
3

 
685

 
—

 
—

 
—

 
—

Total loans
 
12

 
$
19,605

 
9

 
$
1,733

 
4

 
$
770

 
3

 
$
17,872

 
—

 
$
—

(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.

Three months ended
June 30, 2017

(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, industrial and other
 
—

 
$
—

 
—

 
$
—

 
—

 
$
—

 
—

 
$
—

 
—

 
$
—

Franchise
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Leases
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Office
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Mixed use and other
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Residential real estate and other
 
4

 
2,210

 
4

 
2,210

 
3

 
2,161

 
—

 
—

 
—

 
—

Total loans
 
4

 
$
2,210

 
4

 
$
2,210

 
3

 
$
2,161

 
—

 
$
—

 
—

 
$
—

(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.
Schedule of Loans Restructured with Payments in Default
The following table presents a summary of all loans restructured in TDRs during the twelve months ended June 30, 2018 and 2017, and such loans which were in payment default under the restructured terms during the respective periods below:
(Dollars in thousands)
As of June 30, 2018
 
Three Months Ended
June 30, 2018
 
Six Months Ended
June 30, 2018
Total (1)(3)
 
Payments in Default  (2)(3)
 
Payments in Default  (2)(3)
Count
 
Balance
 
Count
 
Balance
 
Count
 
Balance
Commercial
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial and other
7

 
$
16,603

 
5

 
$
3,776

 
5

 
$
3,776

Franchise
5

 
21,378

 
—

 
—

 
—

 
—

Leases
1

 
239

 
—

 
—

 
—

 
—

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Office
1

 
59

 
—

 
—

 
—

 
—

Industrial
—

 
—

 
—

 
—

 
—

 
—

Mixed use and other
1

 
85

 
—

 
—

 
—

 
—

Residential real estate and other
17

 
2,833

 
3

 
555

 
3

 
555

Total loans
32

 
$
41,197

 
8

 
$
4,331

 
8

 
$
4,331


(Dollars in thousands)
As of June 30, 2017
 
Three Months Ended
June 30, 2017
 
Six Months Ended
June 30, 2017
Total (1)(3)
 
Payments in Default  (2)(3)
 
Payments in Default  (2)(3)
Count
 
Balance
 
Count
 
Balance
 
Count
 
Balance
Commercial
 
 
 
 
 
 
 
 
 
 
 
Commercial, industrial and other
2

 
$
123

 
1

 
$
28

 
1

 
$
28

Franchise
—

 
—

 
—

 
—

 
—

 
—

Leases
2

 
2,949

 
—

 
—

 
—

 
—

Commercial real estate
 
 
 
 
 
 
 
 
 
 
 
Office
—

 
—

 
—

 
—

 
—

 
—

Mixed use and other
1

 
1,245

 
—

 
—

 
—

 
—

Residential real estate and other
11

 
2,925

 
1

 
232

 
1

 
232

Total loans
16

 
$
7,242

 
2

 
$
260

 
2

 
$
260

(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.