Loans and Allowance for Credit Losses (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Schedule of loans, net of unamortized net deferred fees

Loans, net of unamortized net deferred fees, at September 30, 2017, December 31, 2016, and September 30, 2016 are summarized by type as follows:

	September 30, 2017						December 31, 2016						September 30, 2016
(dollars in thousands)	Amount			%			Amount			%			Amount			%
Commercial	$	1,244,184			20	%	$	1,200,728			21	%	$	1,130,042			21	%
Income producing - commercial real estate		2,898,948			48	%		2,509,517			44	%		2,551,186			46	%
Owner occupied - commercial real estate		749,580			12	%		640,870			12	%		590,427			11	%
Real estate mortgage - residential		109,460			2	%		152,748			3	%		154,439			3	%
Construction - commercial and residential*		915,493			15	%		932,531			16	%		838,137			15	%
Construction - C&I (owner occupied)		55,828			1	%		126,038			2	%		104,676			2	%
Home equity		101,898			2	%		105,096			2	%		106,856			2	%
Other consumer		8,813			—			10,365			—			6,212			—
Total loans		6,084,204			100	%		5,677,893			100	%		5,481,975			100	%
Less: allowance for credit losses		(62,967	)					(59,074	)					(56,864	)
Net loans	$	6,021,237					$	5,618,819					$	5,425,111

*Includes land loans.

Schedule of allowance for credit losses on financing receivables

The following tables detail activity in the allowance for credit losses by portfolio segment for the three and nine months ended September 30, 2017 and 2016. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

				Income Producing -			Owner Occupied -		Real Estate			Construction -
				Commercial			Commercial		Mortgage			Commercial and			Home			Other
(dollars in thousands)	Commercial			Real Estate			Real Estate		Residential			Residential			Equity			Consumer			Total
Three months ended September 30, 2017
Allowance for credit losses:
Balance at beginning of period	$	14,225		$	23,308		$	4,189	$	1,081		$	16,727		$	1,216		$	301		$	61,047
Loans charged-off		(522	)		—			—		—			(39	)		—			(32	)		(593	)
Recoveries of loans previously charged-off		407			30			—		2			146			1			6			592
Net loans (charged-off) recoveries		(115	)		30			—		2			107			1			(26	)		(1	)
Provision for credit losses		(2,266	)		(963	)		1,273		(126	)		4,052			(120	)		71			1,921
Ending balance	$	11,844		$	22,375		$	5,462	$	957		$	20,886		$	1,097		$	346		$	62,967
Nine months ended September 30, 2017
Allowance for credit losses:
Balance at beginning of period	$	14,700		$	21,105		$	4,010	$	1,284		$	16,487		$	1,328		$	160		$	59,074
Loans charged-off		(659	)		(1,470	)		—		—			(39	)		—			(98	)		(2,266	)
Recoveries of loans previously charged-off		675			80			2		5			491			4			18			1,275
Net loans charged-off		16			(1,390	)		2		5			452			4			(80	)		(991	)
Provision for credit losses		(2,872	)		2,660			1,450		(332	)		3,947			(235	)		266			4,884
Ending balance	$	11,844		$	22,375		$	5,462	$	957		$	20,886		$	1,097		$	346		$	62,967
As of September 30, 2017
Allowance for credit losses:
Individually evaluated for impairment	$	3,246		$	1,378		$	1,005	$	—		$	2,900		$	90		$	81		$	8,700
Collectively evaluated for impairment		8,598			20,997			4,457		957			17,986			1,007			265			54,267
Ending balance	$	11,844		$	22,375		$	5,462	$	957		$	20,886		$	1,097		$	346		$	62,967
Three months ended September 30, 2016
Allowance for credit losses:
Balance at beginning of period	$	13,386		$	19,072		$	4,202	$	1,061		$	17,024		$	1,556		$	235		$	56,536
Loans charged-off		(109	)		(1,751	)		—		—			—			(121	)		(12	)		(1,993	)
Recoveries of loans previously charged-off		7			10			—		2			3			3			8			33
Net loans (charged-off) recoveries		(102	)		(1,741	)		—		2			3			(118	)		(4	)		(1,960	)
Provision for credit losses		(523	)		3,178			59		47			(513	)		(69	)		109			2,288
Ending balance	$	12,761		$	20,509		$	4,261	$	1,110		$	16,514		$	1,369		$	340		$	56,864
Nine months ended September 30, 2016
Allowance for credit losses:
Balance at beginning of period	$	11,563		$	14,122		$	3,279	$	1,268		$	21,088		$	1,292		$	75		$	52,687
Loans charged-off		(2,802	)		(2,342	)		—		—			—			(217	)		(37	)		(5,398	)
Recoveries of loans previously charged-off		93			14			2		5			207			11			24			356
Net loans charged-off		(2,709	)		(2,328	)		2		5			207			(206	)		(13	)		(5,042	)
Provision for credit losses		3,907			8,715			980		(163	)		(4,781	)		283			278			9,219
Ending balance	$	12,761		$	20,509		$	4,261	$	1,110		$	16,514		$	1,369		$	340		$	56,864
As of September 30, 2016
Allowance for credit losses:
Individually evaluated for impairment	$	1,997		$	1,714		$	360	$	—		$	300		$	—		$	100		$	4,471
Collectively evaluated for impairment		10,764			18,795			3,901		1,110			16,214			1,369			240			52,393
Ending balance	$	12,761		$	20,509		$	4,261	$	1,110		$	16,514		$	1,369		$	340		$	56,864

Schedule of recorded investment in loans

The Company’s recorded investments in loans as of September 30, 2017, December 31, 2016 and September 30, 2016 related to each balance in the allowance for loan losses by portfolio segment and disaggregated on the basis of the Company’s impairment methodology was as follows:

			Income Producing -		Owner occupied -		Real Estate		Construction -
			Commercial		Commercial		Mortgage		Commercial and		Home		Other
(dollars in thousands)	Commercial		Real Estate		Real Estate		Residential		Residential		Equity		Consumer		Total
September 30, 2017
Recorded investment in loans:
Individually evaluated for impairment	$	8,309	$	10,241	$	6,570	$	—	$	7,728	$	594	$	92	$	33,534
Collectively evaluated for impairment		1,235,875		2,888,707		743,010		109,460		963,593		101,304		8,721		6,050,670
Ending balance	$	1,244,184	$	2,898,948	$	749,580	$	109,460	$	971,321	$	101,898	$	8,813	$	6,084,204
December 31, 2016
Recorded investment in loans:
Individually evaluated for impairment	$	10,437	$	15,057	$	2,093	$	241	$	6,517	$	—	$	126	$	34,471
Collectively evaluated for impairment		1,190,291		2,494,460		638,777		152,507		1,052,052		105,096		10,239		5,643,422
Ending balance	$	1,200,728	$	2,509,517	$	640,870	$	152,748	$	1,058,569	$	105,096	$	10,365	$	5,677,893
September 30, 2016
Recorded investment in loans:
Individually evaluated for impairment	$	12,448	$	14,648	$	2,517	$	244	$	4,878	$	113	$	—	$	34,848
Collectively evaluated for impairment		1,117,594		2,536,538		587,910		154,195		937,935		106,743		6,212		5,447,127
Ending balance	$	1,130,042	$	2,551,186	$	590,427	$	154,439	$	942,813	$	106,856	$	6,212	$	5,481,975

Schedule of loans by class and credit quality indicators

The Company’s credit quality indicators are updated generally on a quarterly basis, but no less frequently than annually. The following table presents by class and by credit quality indicator, the recorded investment in the Company’s loans and leases as of September 30, 2017, December 31, 2016 and September 30, 2016.

			Watch and						Total
(dollars in thousands)	Pass		Special Mention		Substandard		Doubtful		Loans
September 30, 2017
Commercial	$	1,204,850	$	31,025	$	8,309	$	—	$	1,244,184
Income producing - commercial real estate		2,861,346		27,361		10,241		—		2,898,948
Owner occupied - commercial real estate		720,693		22,317		6,570		—		749,580
Real estate mortgage – residential		108,797		663		—		—		109,460
Construction - commercial and residential		963,593		—		7,728		—		971,321
Home equity		100,618		686		594		—		101,898
Other consumer		8,719		2		92		—		8,813
Total	$	5,968,616	$	82,054	$	33,534	$	—	$	6,084,204
December 31, 2016
Commercial	$	1,160,185	$	30,106	$	10,437	$	—	$	1,200,728
Income producing - commercial real estate		2,489,407		5,053		15,057		—		2,509,517
Owner occupied - commercial real estate		630,827		7,950		2,093		—		640,870
Real estate mortgage – residential		151,831		676		241		—		152,748
Construction - commercial and residential		1,051,445		607		6,517		—		1,058,569
Home equity		103,484		1,612		—		—		105,096
Other consumer		10,237		2		126		—		10,365
Total	$	5,597,416	$	46,006	$	34,471	$	—	$	5,677,893
September 30, 2016
Commercial	$	1,099,894	$	18,599	$	11,549	$	—	$	1,130,042
Income producing - commercial real estate		2,527,318		9,220		14,648		—		2,551,186
Owner occupied - commercial real estate		577,925		10,399		2,103		—		590,427
Real estate mortgage – residential		153,515		680		244		—		154,439
Construction - commercial and residential		937,198		737		4,878		—		942,813
Home equity		105,126		1,617		113		—		106,856
Other consumer		6,209		3		—		—		6,212
Total	$	5,407,185	$	41,255	$	33,535	$	—	$	5,481,975

Schedule of loans, non accrual status

The following table presents, by class of loan, information related to nonaccrual loans as of September 30, 2017, December 31, 2016 and September 30, 2016. 

(dollars in thousands)	September 30, 2017		December 31, 2016		September 30, 2016
Commercial	$	3,242	$	2,490	$	2,986
Income producing - commercial real estate		880		10,539		10,098
Owner occupied - commercial real estate		6,570		2,093		2,103
Real estate mortgage - residential		301		555		562
Construction - commercial and residential		4,930		2,072		6,412
Home equity		594		—		113
Other consumer		92		126		—
Total nonaccrual loans (1)(2)	$	16,609	$	17,875	$	22,274

(1) Excludes troubled debt restructurings (“TDRs”) that were performing under their restructured terms totaling $12.3 million at September 30, 2017, as compared to $7.9 million at December 31, 2016 and $2.9 million at September 30, 2016.

(2) Gross interest income of $176 thousand and $802 thousand would have been recorded for the three and nine months ended September 30, 2017, if nonaccrual loans shown above had been current and in accordance with their original terms while interest actually recorded on such loans was $31 thousand and $56 thousand for the three and nine months ended September 30, 2017. See Note 1 to the Consolidated Financial Statements for a description of the Company’s policy for placing loans on nonaccrual status.

Schedule of past due loans

The following table presents, by class of loan, an aging analysis and the recorded investments in loans past due as of September 30, 2017 and December 31, 2016.

	Loans		Loans		Loans						Total Recorded
	30-59 Days		60-89 Days		90 Days or		Total Past		Current		Investment in
(dollars in thousands)	Past Due		Past Due		More Past Due		Due Loans		Loans		Loans
September 30, 2017
Commercial	$	401	$	662	$	3,242	$	4,305	$	1,239,879	$	1,244,184
Income producing - commercial real estate		3,160		770		880		4,810		2,894,138		2,898,948
Owner occupied - commercial real estate		817		3,268		6,570		10,655		738,925		749,580
Real estate mortgage – residential		1,480		2,123		301		3,904		105,556		109,460
Construction - commercial and residential		197		—		4,930		5,127		966,194		971,321
Home equity		637		100		594		1,331		100,567		101,898
Other consumer		21		4		92		117		8,696		8,813
Total	$	6,713	$	6,927	$	16,609	$	30,249	$	6,053,955	$	6,084,204
December 31, 2016
Commercial	$	1,634	$	757	$	2,490	$	4,881	$	1,195,847	$	1,200,728
Income producing - commercial real estate		511		—		10,539		11,050		2,498,467		2,509,517
Owner occupied - commercial real estate		3,987		3,328		2,093		9,408		631,462		640,870
Real estate mortgage – residential		1,015		163		555		1,733		151,015		152,748
Construction - commercial and residential		360		1,342		2,072		3,774		1,054,795		1,058,569
Home equity		—		—		—		—		105,096		105,096
Other consumer		101		9		126		236		10,129		10,365
Total	$	7,608	$	5,599	$	17,875	$	31,082	$	5,646,811	$	5,677,893
September 30, 2016
Commercial	$	1,173	$	495	$	2,986	$	4,654	$	1,125,388	$	1,130,042
Income producing - commercial real estate		—		—		10,098		10,098		2,541,088		2,551,186
Owner occupied - commercial real estate		—		3,338		2,103		5,441		584,986		590,427
Real estate mortgage – residential		—		164		562		726		153,713		154,439
Construction - commercial and residential		—		—		6,412		6,412		936,401		942,813
Home equity		562		620		113		1,295		105,561		106,856
Other consumer		8		16		—		24		6,188		6,212
Total	$	1,743	$	4,633	$	22,274	$	28,650	$	5,453,325	$	5,481,975

Schedule of impaired loans

The following table presents, by class of loan, information related to impaired loans for the periods ended September 30, 2017, December 31, 2016 and September 30, 2016.

	Unpaid		Recorded		Recorded
	Contractual		Investment		Investment		Total				Average Recorded Investment				Interest Income Recognized
	Principal		With No		With		Recorded		Related		Quarter		Year		Quarter		Year
(dollars in thousands)	Balance		Allowance		Allowance		Investment		Allowance		To Date		To Date		To Date		To Date
September 30, 2017
Commercial	$	6,047	$	2,363	$	3,640	$	6,003	$	3,246	$	5,977	$	5,790	$	31	$	97
Income producing - commercial real estate		10,092		828		9,264		10,092		1,378		10,222		11,350		121		373
Owner occupied - commercial real estate		6,890		1,612		5,278		6,890		1,005		5,623		4,182		26		46
Real estate mortgage – residential		301		301		—		301		—		304		368		—		—
Construction - commercial and residential		4,930		1,534		3,396		4,930		2,900		4,808		3,736		—		14
Home equity		594		494		100		594		90		446		223		—		2
Other consumer		92		—		92		92		81		93		101		—		—
Total	$	28,946	$	7,132	$	21,770	$	28,902	$	8,700	$	27,473	$	25,750	$	178	$	532
December 31, 2016
Commercial	$	8,296	$	2,532	$	3,095	$	5,627	$	2,671	$	12,620	$	12,755	$	79	$	191
Income producing - commercial real estate		14,936		5,048		9,888		14,936		1,943		16,742		17,533		54		198
Owner occupied - commercial real estate		2,483		1,691		792		2,483		350		2,233		2,106		—		13
Real estate mortgage – residential		555		555		—		555		—		246		249		—		—
Construction - commercial and residential		2,072		1,535		537		2,072		522		5,091		5,174		—		—
Home equity		—		—		—		—		—		78		89		—		—
Other consumer		126		—		126		126		113		42		32		2		4
Total	$	28,468	$	11,361	$	14,438	$	25,799	$	5,599	$	37,052	$	37,938	$	135	$	406
September 30, 2016
Commercial	$	15,517	$	2,370	$	10,078	$	12,448	$	1,997	$	12,838	$	12,879	$	54	$	112
Income producing - commercial real estate		14,648		—		14,648		14,648		1,714		17,584		15,298		28		144
Owner occupied - commercial real estate		2,517		—		2,517		2,517		360		2,108		1,923		13		13
Real estate mortgage – residential		244		244		—		244		—		249		271		—		—
Construction - commercial and residential		4,878		4,340		538		4,878		300		5,146		6,542		—		—
Home equity		113		—		113		113		100		117		129		2		2
Other consumer		—		—		—		—		—		—		6		—		—
Total	$	37,917	$	6,954	$	27,894	$	34,848	$	4,471	$	38,042	$	37,048	$	97	$	271

Schedule of loans modified in troubled debt restructurings

The following table presents by class, the recorded investment of loans modified in a TDR during the three months ended September 30, 2017 and 2016.

	For the Three Months Ended September 30, 2017
						Income Producing -			Owner Occupied -			Construction -
(dollars in thousands)	Number of Contracts		Commercial			Commercial Real Estate			Commercial Real Estate			Commercial Real Estate		Total
Troubled debt restructings
Restructured accruing		—	$	(356	)	$	—		$	(23	)	$	—	$	(379	)
Restructured nonaccruing		2		586			(560	)		—			—		26
Total		2	$	230		$	(560	)	$	(23	)	$	—	$	(353	)
Specific allowance			$	(185	)	$	(559	)	$	—		$	—	$	(744	)
Restructured and subsequently defaulted			$	—		$	—		$	—		$	—	$	—
	For the Three Months Ended September 30, 2016
						Income Producing -			Owner Occupied -			Construction -
(dollars in thousands)	Number of Contracts		Commercial			Commercial Real Estate			Commercial Real Estate			Commercial Real Estate		Total
Troubled debt restructings
Restructured accruing		1	$	801		$	—		$	—		$	—	$	801
Restructured nonaccruing		—		—			—			—			—		—
Total		1	$	801		$	—		$	—		$	—	$	801
Specific allowance			$	363		$	—		$	—		$	—	$	363
Restructured and subsequently defaulted			$	—		$	—		$	—		$	—	$	—

The following table presents by class, the recorded investment of loans modified in TDRs held by the Company at September 30, 2017 and September 30, 2016.

	September 30, 2017
					Income Producing -		Owner Occupied -		Construction -
(dollars in thousands)	Number of Contracts		Commercial		Commercial Real Estate		Commercial Real Estate		Commercial Real Estate		Total
Troubled debt restructings
Restructured accruing		9	$	2,761	$	9,212	$	320	$	—	$	12,293
Restructured nonaccruing		4		776		136		—		—		912
Total		13	$	3,537	$	9,348	$	320	$	—	$	13,205
Specific allowance			$	685	$	1,341	$	—	$	—	$	2,026
Restructured and subsequently defaulted			$	237	$	—	$	—	$	—	$	237

	September 30, 2016
					Income Producing -		Owner Occupied -		Construction -
(dollars in thousands)	Number of Contracts		Commercial		Commercial Real Estate		Commercial Real Estate		Commercial Real Estate		Total
Troubled debt restructings
Restructured accruing		7	$	1,725	$	742	$	414	$	—	$	2,881
Restructured nonaccruing		2		199		—		—		4,948		5,147
Total		9	$	1,924	$	742	$	414	$	4,948	$	8,028
Specific allowance			$	456	$	—	$	—	$	—	$	456
Restructured and subsequently defaulted			$	—	$	—	$	—	$	4,948	$	4,948