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

12 Months Ended

Dec. 31, 2019

Receivables [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 December 31, 2019 and 2018:

As of December 31, 2019 (Dollars in thousands)	Nonaccrual		90+ days and still accruing		60-89 days past due		30-59 days past due		Current		Total Loans
Loan Balances:
Commercial
Commercial, industrial and other	$	33,983	$	—	$	1,647	$	48,840	$	5,075,335	$	5,159,805
Franchise	2,391		—		—		216		934,875		937,482
Mortgage warehouse lines of credit	—		—		—		4,189		288,592		292,781
Asset-based lending	128		—		956		5,769		982,165		989,018
Leases	722		—		249		10,996		866,561		878,528
PCI - commercial (1)	—		1,855		423		7,314		18,714		28,306
Total commercial	$	37,224	$	1,855	$	3,275	$	77,324	$	8,166,242	$	8,285,920
Commercial real estate:
Construction	1,030		—		1,499		16,656		1,004,115		1,023,300
Land	1,082		—		—		11,393		165,008		177,483
Office	8,034		—		3,692		6,127		1,026,916		1,044,769
Industrial	99		—		1,660		10,203		1,020,904		1,032,866
Retail	6,789		—		6,168		3,546		1,081,427		1,097,930
Multi-family	913		—		731		3,088		1,306,810		1,311,542
Mixed use and other	8,166		—		9,823		15,429		2,061,528		2,094,946
PCI - commercial real estate (1)	—		14,946		7,973		31,125		183,396		237,440
Total commercial real estate	$	26,113	$	14,946	$	31,546	$	97,567	$	7,850,104	$	8,020,276
Home equity	7,363		—		454		3,533		501,716		513,066
Residential real estate, including PCI	13,797		5,771		3,089		18,041		1,313,523		1,354,221
Premium finance receivables
Commercial insurance loans	20,590		11,517		12,119		18,783		3,379,018		3,442,027
Life insurance loans	590		—		—		32,559		4,902,171		4,935,320
PCI - life insurance loans (1)	—		—		—		—		139,282		139,282
Consumer and other, including PCI	231		287		40		344		109,276		110,178
Total loans, net of unearned income	$	105,908	$	34,376	$	50,523	$	248,151	$	26,361,332	$	26,800,290

(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. See Note 4, “Loans,” for further discussion of these purchased loans.

As of December 31, 2018 (Dollars in thousands)	Nonaccrual		90+ days and still accruing		60-89 days past due		30-59 days past due		Current		Total Loans
Loan Balances:
Commercial
Commercial, industrial and other	$	34,298	$	—	$	1,451	$	21,618	$	5,062,729	$	5,120,096
Franchise	16,051		—		—		8,738		924,190		948,979
Mortgage warehouse lines of credit	—		—		—		—		144,199		144,199
Asset-based lending	635		—		200		3,156		1,022,065		1,026,056
Leases	—		—		—		1,250		564,430		565,680
PCI - commercial (1)	—		3,313		—		99		20,116		23,528
Total commercial	$	50,984	$	3,313	$	1,651	$	34,861	$	7,737,729	$	7,828,538
Commercial real estate
Construction	$	1,554	$	—	$	—	$	9,424	$	749,846	$	760,824
Land	107		—		170		107		141,097		141,481
Office	3,629		—		877		5,077		929,739		939,322
Industrial	285		—		—		16,596		885,367		902,248
Retail	10,753		—		1,890		1,729		878,106		892,478
Multi-family	311		—		77		5,575		970,597		976,560
Mixed use and other	2,490		—		1,617		8,983		2,192,105		2,205,195
PCI - commercial real estate (1)	—		6,241		6,195		4,075		98,633		115,144
Total commercial real estate	$	19,129	$	6,241	$	10,826	$	51,566	$	6,845,490	$	6,933,252
Home equity	7,147		—		131		3,105		541,960		552,343
Residential real estate, including PCI	16,383		1,292		1,692		6,171		976,926		1,002,464
Premium finance receivables
Commercial insurance loans	11,335		7,799		11,382		15,085		2,796,058		2,841,659
Life insurance loans	—		—		8,407		24,628		4,340,856		4,373,891
PCI - life insurance loans (1)	—		—		—		—		167,903		167,903
Consumer and other, including PCI	348		227		87		733		119,246		120,641
Total loans, net of unearned income	$	105,326	$	18,872	$	34,176	$	136,149	$	23,526,168	$	23,820,691

(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. See Note 4, “Loans,” for further discussion of these purchased loans.

The Company's 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 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 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 the Company determines 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 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, per the most recent analysis at December 31, 2019 and 2018:

	Performing				Non-performing				Total
	December 31,		December 31,		December 31,		December 31,		December 31,		December 31,
(Dollars in thousands)	2019		2018		2019		2018		2019		2018
Loan Balances:
Commercial
Commercial, industrial and other	$	5,125,822	$	5,085,798	$	33,983	$	34,298	$	5,159,805	$	5,120,096
Franchise	935,091		932,928		2,391		16,051		937,482		948,979
Mortgage warehouse lines of credit	292,781		144,199		—		—		292,781		144,199
Asset-based lending	988,890		1,025,421		128		635		989,018		1,026,056
Leases	877,806		565,680		722		—		878,528		565,680
PCI - commercial (1)	28,306		23,528		—		—		28,306		23,528
Total commercial	$	8,248,696	$	7,777,554	$	37,224	$	50,984	$	8,285,920	$	7,828,538
Commercial real estate
Construction	1,022,270		759,270		1,030		1,554		1,023,300		760,824
Land	176,401		141,374		1,082		107		177,483		141,481
Office	1,036,735		935,693		8,034		3,629		1,044,769		939,322
Industrial	1,032,767		901,963		99		285		1,032,866		902,248
Retail	1,091,141		881,725		6,789		10,753		1,097,930		892,478
Multi-family	1,310,629		976,249		913		311		1,311,542		976,560
Mixed use and other	2,086,780		2,202,705		8,166		2,490		2,094,946		2,205,195
PCI - commercial real estate (1)	237,440		115,144		—		—		237,440		115,144
Total commercial real estate	$	7,994,163	$	6,914,123	$	26,113	$	19,129	$	8,020,276	$	6,933,252
Home equity	505,703		545,196		7,363		7,147		513,066		552,343
Residential real estate, including PCI	1,340,424		986,081		13,797		16,383		1,354,221		1,002,464
Premium finance receivables
Commercial insurance loans	3,409,920		2,822,525		32,107		19,134		3,442,027		2,841,659
Life insurance loans	4,934,730		4,373,891		590		—		4,935,320		4,373,891
PCI - life insurance loans (1)	139,282		167,903		—		—		139,282		167,903
Consumer and other, including PCI	109,784		120,184		394		457		110,178		120,641
Total loans, net of unearned income	$	26,682,702	$	23,707,457	$	117,588	$	113,234	$	26,800,290	$	23,820,691

(1) PCI loans represent loans acquired with evidence of credit quality deterioration since origination, in accordance with ASC 310-30. See Note 4, “Loans,” for further discussion of these purchased loans.

A summary of the activity in the allowance for credit losses by loan portfolio for the years ended December 31, 2019 and 2018 is as follows:

 

Year Ended  December 31, 2019 (Dollars in thousands)	Commercial			Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivable			Consumer and Other			Total Loans
Allowance for credit losses
Allowance for loan losses at beginning of period	$	67,826		$	60,267		$	8,507		$	7,194		$	7,715		$	1,261		$	152,770
Other adjustments	—			(35		)	(20		)	(15		)	49			—			(21		)
Reclassification to/from allowance for unfunded lending-related commitments	—			(238		)	—			—			—			—			(238		)
Charge-offs	(35,880		)	(5,402		)	(3,702		)	(798		)	(12,902		)	(522		)	(59,206		)
Recoveries	2,845			2,516			479			422			3,203			194			9,659
Provision for credit losses	30,129			9,770			(1,386		)	2,997			11,582			772			53,864
Allowance for loan losses at period end	$	64,920		$	66,878		$	3,878		$	9,800		$	9,647		$	1,705		156,828
Allowance for unfunded lending-related commitments at period end	—			1,633			—			—			—			—			1,633
Allowance for credit losses at period end	$	64,920		$	68,511		$	3,878		$	9,800		$	9,647		$	1,705		$	158,461
By measurement method:
Individually evaluated for impairment	5,719			5,638			450			387			—			142			12,336
Collectively evaluated for impairment	59,171			62,759			3,428			9,386			9,647			1,563			145,954
Loans acquired with deteriorated credit quality	30			114			—			27			—			—			171
Loans at period end:
Individually evaluated for impairment	$	42,130		$	35,867		$	19,108		$	22,528		$	—		$	412		$	120,045
Collectively evaluated for impairment	8,215,484			7,746,969			493,958			1,313,565			8,377,347			107,550			26,254,873
Loans acquired with deteriorated credit quality	28,306			237,440			—			18,128			139,282			2,216			425,372
Loans held at fair value	—			—			—			132,718			—			—			132,718

Year Ended  December 31, 2018 (Dollars in thousands)	Commercial			Commercial Real Estate			Home Equity			Residential Real Estate			Premium Finance Receivable			Consumer and Other			Total Loans
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	(3		)	(85		)	(5		)	(25		)	(63		)	—			(181		)
Reclassification to/from allowance for unfunded lending-related commitments	—			(126		)	—			—			—			—			(126		)
Charge-offs	(14,532		)	(1,395		)	(2,245		)	(1,355		)	(12,228		)	(880		)	(32,635		)
Recoveries	1,457			5,631			541			2,075			3,069			202			12,975
Provision for credit losses	23,093			1,015			(277		)	(189		)	10,091			1,099			34,832
Allowance for loan losses at period end	$	67,826		$	60,267		$	8,507		$	7,194		$	7,715		$	1,261		$	152,770
Allowance for unfunded lending-related commitments at period end	—			1,394			—			—			—			—			1,394
Allowance for credit losses at period end	$	67,826		$	61,661		$	8,507		$	7,194		$	7,715		$	1,261		$	154,164
By measurement method:
Individually evaluated for impairment	6,558			4,287			282			204			—			116			11,447
Collectively evaluated for impairment	60,749			57,329			8,225			6,894			7,715			1,145			142,057
Loans acquired with deteriorated credit quality	519			45			—			96			—			—			660
Loans at period end:
Individually evaluated for impairment	$	59,529		$	33,274		$	12,255		$	22,064		$	—		$	397		$	127,519
Collectively evaluated for impairment	7,745,482			6,784,834			540,088			877,526			7,215,550			117,441			23,280,921
Loans acquired with deteriorated credit quality	23,527			115,144			—			9,017			167,903			2,803			318,394
Loan held at fair value	—			—			—			93,857			—			—			93,857

Impaired Loans

A summary of impaired loans, including TDRs, at December 31, 2019 and 2018 is as follows:

(Dollars in thousands)	2019		2018
Impaired loans (included in non-performing and restructured loans):
Impaired loans with an allowance for loan loss required (1)	$	62,886	$	60,219
Impaired loans with no allowance for loan loss required	57,159		67,050
Total impaired loans (2)	$	120,045	$	127,269
Allowance for loan losses related to impaired loans	$	12,336	$	11,437
TDRs	63,836		66,102
Reduction of interest income from non-accrual loans	5,202		3,422
Interest income recognized on impaired loans	9,383		7,347

(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.

The following tables present impaired loans evaluated for impairment by loan class as of December 31, 2019 and 2018:

	As of						For the Year Ended
December 31, 2019 (Dollars in thousands)	Recorded Investment		Unpaid  Principal Balance		Related Allowance		Average  Recorded Investment		Interest Income Recognized
Impaired loans with a related ASC 310 allowance recorded
Commercial
Commercial, industrial and other	$	23,821	$	29,713	$	5,593	$	30,125	$	2,450
Franchise	—		—		—		—		—
Asset-based lending	130		130		1		130		8
Leases	2,038		2,038		125		2,196		106
Commercial real estate
Construction	—		—		—		—		—
Land	88		88		7		93		7
Office	7,475		7,759		3,305		7,542		356
Industrial	—		—		—		—		—
Retail	4,993		4,993		26		5,058		229
Multi-family	1,158		1,158		22		1,174		52
Mixed use and other	7,538		7,592		2,278		7,603		357
Home equity	8,650		9,157		450		8,746		337
Residential real estate	6,816		6,936		387		6,889		224
Consumer and other	179		198		142		186		13
Impaired loans with no related ASC 310 allowance recorded
Commercial
Commercial, industrial and other	$	12,756	$	17,124	$	—	$	21,850	$	1,469
Franchise	2,391		8,845		—		9,621		855
Asset-based lending	128		1,385		—		4,876		273
Leases	866		903		—		980		58
Commercial real estate
Construction	1,030		1,554		—		1,117		84
Land	994		1,303		—		1,137		70
Office	559		645		—		1,072		59
Industrial	99		209		—		116		12
Retail	6,789		10,010		—		7,340		535
Multi-family	913		1,024		—		1,166		56
Mixed use and other	4,231		4,500		—		4,355		260
Home equity	10,458		13,265		—		11,955		666
Residential real estate	15,712		18,227		—		16,176		827
Consumer and other	233		388		—		258		20
Total loans, net of unearned income	$	120,045	$	149,144	$	12,336	$	151,761	$	9,383

	As of						For the Year Ended
December 31, 2018 (Dollars in thousands)	Recorded Investment		Unpaid  Principal Balance		Related Allowance		Average  Recorded Investment		Interest Income Recognized
Impaired loans with a related ASC 310 allowance recorded
Commercial
Commercial, industrial and other	$	16,703	$	17,029	$	4,866	$	17,868	$	1,181
Franchise	16,021		16,256		1,375		16,221		909
Asset-based lending	557		557		317		689		50
Leases	1,730		1,730		—		1,812		91
Commercial real estate
Construction	1,554		1,554		550		1,554		76
Land	—		—		—		—		—
Office	573		638		21		587		25
Industrial	—		—		—		—		—
Retail	14,633		14,633		3,413		14,694		676
Multi-family	—		—		—		—		—
Mixed use and other	1,188		1,221		293		1,354		66
Home equity	3,133		3,470		282		3,165		131
Residential real estate	4,011		4,263		204		4,056		159
Consumer and other	116		129		116		119		7
Impaired loans with no related ASC 310 allowance recorded
Commercial
Commercial, industrial and other	$	18,314	$	21,501	$	—	$	20,547	$	1,143
Franchise	5,152		5,154		—		5,320		403
Asset-based lending	207		601		—		569		51
Leases	845		879		—		936		56
Commercial real estate
Construction	1,117		1,117		—		1,218		52
Land	3,396		3,491		—		3,751		198
Office	3,629		3,642		—		3,651		184
Industrial	322		450		—		363		30
Retail	1,592		1,945		—		1,699		110
Multi-family	1,498		1,595		—		1,529		55
Mixed use and other	3,522		3,836		—		3,611		227
Home equity	9,122		12,383		—		9,323		564
Residential real estate	18,053		20,765		—		18,552		883
Consumer and other	281		407		—		293		20
Total loans, net of unearned income	$	127,269	$	139,246	$	11,437	$	133,481	$	7,347

Average recorded investment in impaired loans for the years ended December 31, 2019, 2018, and 2017 were $151.8 million, $133.5 million, and $115.3 million, respectively. Interest income recognized on impaired loans was $9.4 million, $7.3 million and $6.3 million for the years ended December 31, 2019, 2018, and 2017, respectively.

TDRs

At December 31, 2019, the Company had $63.8 million in loans modified in TDRs. The $63.8 million in TDRs represents 255 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 6 or worse or a modification of any other credit, which will result in a restructured credit risk rating of 6 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 5 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 5 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 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 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 December 31, 2019 and approximately $5.7 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. For the years ended December 31, 2019 and 2018, the Company recorded $66,000 and $113,000, respectively, in interest income representing this decrease 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. At December 31, 2019, the Company had $1.8 million of foreclosed residential real estate properties included within OREO. Further, the recorded investment in residential mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process totaled $13.5 million and $14.4 million at December 31, 2019 and 2018, respectively.

The tables below present a summary of the post-modification balance of loans restructured during the years ended December 31, 2019, 2018, and 2017, which represent TDRs:

Year ended  December 31, 2019	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to Interest-only Payments (2)			Forgiveness of Debt (2)
(Dollars in thousands)	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	23	$	26,265	11	$	6,917	2	$	605	13	$	20,872	—	$	—
Franchise	—	—		—	—		—	—		—	—		—	—
Asset-based lending	1	76		1	76		—	—		—	—		—	—
Leases	—	—		—	—		—	—		—	—		—	—
Commercial real estate
Office	2	5,382		2	5,382		—	—		1	5,070		—	—
Industrial	—	—		—	—		—	—		—	—		—	—
Mixed use and other	5	1,636		3	1,083		—	—		2	423		—	—
Residential real estate and other	145	20,206		117	17,258		28	5,415		1	311		—	—
Total loans	176	$	53,565	134	$	30,716	30	$	6,020	17	$	26,676	—	$	—
Year ended December 31, 2018	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to Interest-only Payments (2)			Forgiveness of Debt (2)
(Dollars in thousands)	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	4	$	13,441	3	$	691	—	$	—	1	$	12,750	—	$	—
Franchise	3	5,157		1	35		—	—		2	5,122		—	—
Asset-based lending	1	130		1	130		—	—		—	—		—	—
Leases	1	239		1	239		—	—		—	—		—	—
Commercial real estate
Office	1	59		1	59		—	—		—	—		—	—
Industrial	—	—		—	—		—	—		—	—		—	—
Mixed use and other	2	455		2	455		1	85		—	—		—	—
Residential real estate and other	59	9,762		58	9,523		27	2,789		—	—		1	239
Total loans	71	$	29,243	67	$	11,132	28	$	2,874	3	$	17,872	1	$	239
Year ended December 31, 2017	Total (1)(2)			Extension at Below Market Terms (2)			Reduction of Interest Rate (2)			Modification to Interest-only Payments (2)			Forgiveness of Debt (2)
(Dollars in thousands)	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	5	$	3,775	1	$	95	1	$	2,272	3	$	1,408	—	$	—
Franchise	3	16,256		—	—		—	—		3	16,256		—	—
Asset-based lending	—	—		—	—		—	—		—	—		—	—
Leases	—	—		—	—		—	—		—	—		—	—
Commercial real estate
Office	—	—		—	—		—	—		—	—		—	—
Industrial	—	—		—	—		—	—		—	—		—	—
Mixed use and other	1	1,245		1	1,245		—	—		—	—		—	—
Residential real estate and other	12	3,049		10	2,925		8	2,643		1	55		1	69
Total loans	21	$	24,325	12	$	4,265	9	$	4,915	7	$	17,719	1	$	69

 

(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 year ended December 31, 2019, $53.6 million, or 176 loans, were determined to be TDRs, compared to $29.2 million, or 71 loans, and $24.3 million, or 21 loans, in the years ended 2018 and 2017, respectively. Of these loans extended at below market terms, the weighted average extension had a term of approximately 18 months in 2019 compared to 48 months in 2018 and 35 months in 2017. Further, the weighted average decrease in the stated interest rate for loans with a reduction of interest rate during the period was approximately 218 basis points, 172 basis points and 485 basis points during the years ended December 31, 2019, 2018, and 2017, respectively. Interest-only payment terms were approximately five months during the year ended 2019 compared to seven months and 11 months for the years ended 2018 and 2017, respectively. Additionally, no principal balances were forgiven on the loans noted above in 2019 compared to $8,000 of principal balance forgiven during 2018 and $73,000 of principal balance forgiven during 2017.

The tables below present a summary of all loans restructured in TDRs during the years ended December 31, 2019, 2018, and 2017, and such loans which were in payment default under the restructured terms during the respective periods: 

	Year Ended December 31, 2019						Year Ended December 31, 2018						Year Ended December 31, 2017
	Total (1)(3)			Payments in Default  (2)(3)			Total (1)(3)			Payments in Default  (2)(3)			Total (1)(3)			Payments in Default  (2)(3)
(Dollars in thousands)	Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance		Count	Balance
Commercial
Commercial, industrial and other	23	$	26,265	11	$	22,499	4	$	13,441	2	$	174	5	$	3,775	4	$	3,681
Franchise	—	—		—	—		3	5,157		2	5,122		3	16,256		—	—
Asset-based lending	1	76		1	76		1	130		—	—		—	—		—	—
Leases	—	—		—	—		1	239		—	—		—	—		—	—
Commercial real-estate
Office	2	5,382		1	312		1	59		—	—		—	—		—	—
Industrial	—	—		—	—		—	—		—	—		—	—		—	—
Mixed use and other	5	1,636		2	553		2	455		2	455		1	1,245		1	1,245
Residential real estate and other	145	20,206		12	5,126		59	9,762		9	1,957		12	3,049		3	2,052
Total loans	176	$	53,565	27	$	28,566	71	$	29,243	15	$	7,708	21	24,325		8	6,978

(1) Total TDRs represent all loans restructured in TDRs during the year 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.