Loans (Tables)

6 Months Ended

Jun. 30, 2014

A summary of loans follows:



	June 30, 2014		December 31, 2013		June 30, 2013
	(In thousands)
Commercial loan portfolio:
Commercial	$	1,212,383	$	1,176,307	$	1,091,894
Commercial real estate	1,298,365		1,232,658		1,172,347
Real estate construction	101,168		89,795		73,448
Land development	10,956		20,066		27,181
Subtotal	2,622,872		2,518,826		2,364,870
Consumer loan portfolio:
Residential mortgage	970,397		960,423		898,816
Consumer installment	744,781		644,769		577,241
Home equity	560,754		523,603		494,944
Subtotal	2,275,932		2,128,795		1,971,001
Total loans	$	4,898,804	$	4,647,621	$	4,335,871

Recorded investment of loans in the commercial loan portfolio by risk rating categories

The following schedule presents the recorded investment of loans in the commercial loan portfolio by risk rating categories at June 30, 2014, December 31, 2013 and June 30, 2013:



	Commercial		Commercial Real Estate		Real Estate Construction		Land Development		Total
	(In thousands)
June 30, 2014
Originated Portfolio:
Risk Grades 1-5	$	1,067,000	$	1,063,555	$	85,754	$	2,514	$	2,218,823
Risk Grade 6	15,459		30,053		666		965		47,143
Risk Grade 7	37,291		35,946		1,995		627		75,859
Risk Grade 8	18,560		25,347		160		2,184		46,251
Risk Grade 9	213		14		—		—		227
Subtotal	1,138,523		1,154,915		88,575		6,290		2,388,303
Acquired Portfolio:
Risk Grades 1-5	59,993		132,898		12,593		2,546		208,030
Risk Grade 6	6,769		3,822		—		—		10,591
Risk Grade 7	3,197		6,730		—		143		10,070
Risk Grade 8	3,901		—		—		1,977		5,878
Risk Grade 9	—		—		—		—		—
Subtotal	73,860		143,450		12,593		4,666		234,569
Total	$	1,212,383	$	1,298,365	$	101,168	$	10,956	$	2,622,872
December 31, 2013
Originated Portfolio:
Risk Grades 1-5	$	1,024,461	$	991,964	$	75,696	$	6,874	$	2,098,995
Risk Grade 6	20,082		34,248		654		969		55,953
Risk Grade 7	29,776		30,377		738		3,128		64,019
Risk Grade 8	17,414		28,580		371		2,309		48,674
Risk Grade 9	960		18		—		—		978
Subtotal	1,092,693		1,085,187		77,459		13,280		2,268,619
Acquired Portfolio:
Risk Grades 1-5	73,763		133,653		12,336		4,667		224,419
Risk Grade 6	5,472		5,022		—		—		10,494
Risk Grade 7	852		7,792		—		—		8,644
Risk Grade 8	3,527		1,004		—		2,119		6,650
Risk Grade 9	—		—		—		—		—
Subtotal	83,614		147,471		12,336		6,786		250,207
Total	$	1,176,307	$	1,232,658	$	89,795	$	20,066	$	2,518,826
June 30, 2013
Originated Portfolio:
Risk Grades 1-5	$	919,985	$	897,960	$	59,575	$	9,315	$	1,886,835
Risk Grade 6	26,848		43,650		58		434		70,990
Risk Grade 7	29,025		33,464		1,058		5,751		69,298
Risk Grade 8	9,693		28,048		183		3,434		41,358
Risk Grade 9	1,359		450		—		—		1,809
Subtotal	986,910		1,003,572		60,874		18,934		2,070,290
Acquired Portfolio:
Risk Grades 1-5	100,241		152,906		12,574		5,682		271,403
Risk Grade 6	2,315		5,696		—		—		8,011
Risk Grade 7	699		8,720		—		—		9,419
Risk Grade 8	1,729		1,453		—		2,565		5,747
Risk Grade 9	—		—		—		—		—
Subtotal	104,984		168,775		12,574		8,247		294,580
Total	$	1,091,894	$	1,172,347	$	73,448	$	27,181	$	2,364,870

Recorded investment of loans in the consumer loan portfolio based on the credit risk profile of loans in a performing and nonperforming status

The following schedule presents the recorded investment of loans in the consumer loan portfolio based on loans in a performing status and loans in a nonperforming status at June 30, 2014, December 31, 2013 and June 30, 2013:



	Residential Mortgage		Consumer Installment		Home Equity		Total Consumer
	(In thousands)
June 30, 2014
Originated Loans:
Performing	$	947,768	$	743,121	$	529,093	$	2,219,982
Nonperforming	12,217		536		3,371		16,124
Subtotal	959,985		743,657		532,464		2,236,106
Acquired Loans:
Performing	10,343		1,124		28,227		39,694
Nonperforming	69		—		63		132
Subtotal	10,412		1,124		28,290		39,826
Total	$	970,397	$	744,781	$	560,754	$	2,275,932
December 31, 2013
Originated Loans:
Performing	$	934,747	$	642,370	$	488,996	$	2,066,113
Nonperforming	14,134		676		3,382		18,192
Subtotal	948,881		643,046		492,378		2,084,305
Acquired Loans:
Performing	11,481		1,723		31,182		44,386
Nonperforming	61		—		43		104
Subtotal	11,542		1,723		31,225		44,490
Total	$	960,423	$	644,769	$	523,603	$	2,128,795
June 30, 2013
Originated Loans:
Performing	$	873,543	$	574,354	$	455,490	$	1,903,387
Nonperforming	12,651		552		3,753		16,956
Subtotal	886,194		574,906		459,243		1,920,343
Acquired Loans:
Performing	12,622		2,335		35,583		50,540
Nonperforming	—		—		118		118
Subtotal	12,622		2,335		35,701		50,658
Total	$	898,816	$	577,241	$	494,944	$	1,971,001

Summary of nonperforming loans

A summary of nonperforming loans follows:



	June 30, 2014		December 31, 2013		June 30, 2013
	(In thousands)
Nonaccrual loans:
Commercial	$	18,773	$	18,374	$	11,052
Commercial real estate	25,361		28,598		28,498
Real estate construction	160		371		183
Land development	2,184		2,309		3,434
Residential mortgage	6,325		8,921		9,241
Consumer installment	536		676		552
Home equity	2,296		2,648		3,064
Total nonaccrual loans	55,635		61,897		56,024
Accruing loans contractually past due 90 days or more as to interest or principal payments:
Commercial	15		536		1
Commercial real estate	69		190		78
Real estate construction	—		—		—
Land development	—		—		—
Residential mortgage	376		537		164
Consumer installment	—		—		—
Home equity	1,075		734		689
Total accruing loans contractually past due 90 days or more as to interest or principal payments	1,535		1,997		932
Nonperforming TDRs:
Commercial loan portfolio	11,049		13,414		19,140
Consumer loan portfolio	5,516		4,676		3,246
Total nonperforming TDRs	16,565		18,090		22,386
Total nonperforming loans	$	73,735	$	81,984	$	79,342

Schedule of Impaired loans by classes

The following schedule presents impaired loans by classes of loans at June 30, 2014, December 31, 2013 and June 30, 2013:



	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance
	(In thousands)
June 30, 2014
Impaired loans with a valuation allowance:
Commercial	$	2,905	$	3,258	$	563
Commercial real estate	4,369		5,605		777
Real estate construction	—		—		—
Land development	—		—		—
Residential mortgage	20,353		20,353		379
Subtotal	27,627		29,216		1,719
Impaired loans with no related valuation allowance:
Commercial	39,420		43,463		—
Commercial real estate	46,205		58,997		—
Real estate construction	160		366		—
Land development	4,211		7,506		—
Residential mortgage	6,325		6,325		—
Consumer installment	536		536		—
Home equity	2,296		2,296		—
Subtotal	99,153		119,489		—
Total impaired loans:
Commercial	42,325		46,721		563
Commercial real estate	50,574		64,602		777
Real estate construction	160		366		—
Land development	4,211		7,506		—
Residential mortgage	26,678		26,678		379
Consumer installment	536		536		—
Home equity	2,296		2,296		—
Total	$	126,780	$	148,705	$	1,719
December 31, 2013
Impaired loans with a valuation allowance:
Commercial	$	2,517	$	2,656	$	728
Commercial real estate	2,576		2,965		353
Real estate construction	—		—		—
Land development	—		—		—
Residential mortgage	17,408		17,408		510
Subtotal	22,501		23,029		1,591
Impaired loans with no related valuation allowance:
Commercial	38,838		44,377		—
Commercial real estate	48,220		61,444		—
Real estate construction	371		478		—
Land development	7,170		11,817		—
Residential mortgage	8,921		8,921		—
Consumer installment	676		676		—
Home equity	2,648		2,648		—
Subtotal	106,844		130,361		—
Total impaired loans:
Commercial	41,355		47,033		728
Commercial real estate	50,796		64,409		353
Real estate construction	371		478		—
Land development	7,170		11,817		—
Residential mortgage	26,329		26,329		510
Consumer installment	676		676		—
Home equity	2,648		2,648		—
Total	$	129,345	$	153,390	$	1,591



	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance
	(In thousands)
June 30, 2013
Impaired loans with a valuation allowance:
Commercial	$	4,569	$	5,618	$	1,610
Commercial real estate	8,822		10,162		2,112
Real estate construction	—		—		—
Land development	2,039		2,872		130
Residential mortgage	17,406		17,406		582
Subtotal	32,836		36,058		4,434
Impaired loans with no related valuation allowance:
Commercial	21,969		25,934		—
Commercial real estate	42,913		56,117		—
Real estate construction	397		467		—
Land development	8,495		11,675		—
Residential mortgage	9,241		9,241		—
Consumer installment	552		552		—
Home equity	3,064		3,064		—
Subtotal	86,631		107,050		—
Total impaired loans:
Commercial	26,538		31,552		1,610
Commercial real estate	51,735		66,279		2,112
Real estate construction	397		467		—
Land development	10,534		14,547		130
Residential mortgage	26,647		26,647		582
Consumer installment	552		552		—
Home equity	3,064		3,064		—
Total	$	119,467	$	143,108	$	4,434

Schedule presents information related to impaired loans

The following schedule presents information related to impaired loans for the three and six months ended June 30, 2014 and 2013:



	Three Months Ended June 30, 2014				Six Months Ended June 30, 2014
	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status
	(In thousands)
Commercial	$	42,629	$	347	$	42,118	$	680
Commercial real estate	51,260		366		52,290		727
Real estate construction	163		—		165		—
Land development	4,312		34		4,478		71
Residential mortgage	26,737		328		26,758		631
Consumer installment	634		—		704		—
Home equity	2,221		—		2,194		—
Total	$	127,956	$	1,075	$	128,707	$	2,109



	Three Months Ended June 30, 2013				Six Months Ended June 30, 2013
	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status
	(In thousands)
Commercial	$	26,704	$	225	$	26,828	$	418
Commercial real estate	53,434		412		55,090		700
Real estate construction	410		3		386		5
Land development	10,879		91		10,897		182
Residential mortgage	26,903		274		27,911		569
Consumer installment	647		—		683		—
Home equity	2,878		—		2,920		—
Total	$	121,855	$	1,005	$	124,715	$	1,874

Schedule representing the aging status of the recorded investment in loans by classes

The following schedule presents the aging status of the recorded investment in loans by classes of loans at June 30, 2014, December 31, 2013 and June 30, 2013:



	31-60 Days Past Due		61-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Non-accrual Loans		Total Past Due		Current		Total Loans
	(In thousands)
June 30, 2014
Originated Portfolio:
Commercial	$	4,149	$	1,901	$	15	$	18,773	$	24,838	$	1,113,685	$	1,138,523
Commercial real estate	5,933		233		69		25,361		31,596		1,123,319		1,154,915
Real estate construction	—		—		—		160		160		88,415		88,575
Land development	—		—		—		2,184		2,184		4,106		6,290
Residential mortgage	2,515		—		376		6,325		9,216		950,769		959,985
Consumer installment	2,513		313		—		536		3,362		740,295		743,657
Home equity	2,002		985		1,075		2,296		6,358		526,106		532,464
Total	$	17,112	$	3,432	$	1,535	$	55,635	$	77,714	$	4,546,695	$	4,624,409
Acquired Portfolio:
Commercial	$	—	$	—	$	6,744	$	—	$	6,744	$	67,116	$	73,860
Commercial real estate	—		—		1,594		—		1,594		141,856		143,450
Real estate construction	—		—		—		—		—		12,593		12,593
Land development	—		—		1,977		—		1,977		2,689		4,666
Residential mortgage	—		—		69		—		69		10,343		10,412
Consumer installment	20		—		—		—		20		1,104		1,124
Home equity	325		49		63		—		437		27,853		28,290
Total	$	345	$	49	$	10,447	$	—	$	10,841	$	263,554	$	274,395



	31-60 Days Past Due		61-89 Days Past Due		Accruing Loans Past Due 90 Days or More		Non-accrual Loans		Total Past Due		Current		Total Loans
	(In thousands)
December 31, 2013
Originated Portfolio:
Commercial	$	4,748	$	865	$	536	$	18,374	$	24,523	$	1,068,170	$	1,092,693
Commercial real estate	8,560		1,604		190		28,598		38,952		1,046,235		1,085,187
Real estate construction	—		4,107		—		371		4,478		72,981		77,459
Land development	—		—		—		2,309		2,309		10,971		13,280
Residential mortgage	2,191		103		537		8,921		11,752		937,129		948,881
Consumer installment	2,630		359		—		676		3,665		639,381		643,046
Home equity	1,452		278		734		2,648		5,112		487,266		492,378
Total	$	19,581	$	7,316	$	1,997	$	61,897	$	90,791	$	4,262,133	$	4,352,924
Acquired Portfolio:
Commercial	$	—	$	—	$	5,656	$	—	$	5,656	$	77,958	$	83,614
Commercial real estate	—		133		1,695		—		1,828		145,643		147,471
Real estate construction	—		—		—		—		—		12,336		12,336
Land development	—		—		2,332		—		2,332		4,454		6,786
Residential mortgage	—		—		61		—		61		11,481		11,542
Consumer installment	3		51		—		—		54		1,669		1,723
Home equity	394		—		43		—		437		30,788		31,225
Total	$	397	$	184	$	9,787	$	—	$	10,368	$	284,329	$	294,697
June 30, 2013
Originated Portfolio:
Commercial	$	6,572	$	2,251	$	1	$	11,052	$	19,876	$	967,034	$	986,910
Commercial real estate	9,001		3,974		78		28,498		41,551		962,021		1,003,572
Real estate construction	—		—		—		183		183		60,691		60,874
Land development	—		—		—		3,434		3,434		15,500		18,934
Residential mortgage	2,871		67		164		9,241		12,343		873,851		886,194
Consumer installment	2,564		359		—		552		3,475		571,431		574,906
Home equity	1,520		349		689		3,064		5,622		453,621		459,243
Total	$	22,528	$	7,000	$	932	$	56,024	$	86,484	$	3,904,149	$	3,990,633
Acquired Portfolio:
Commercial	$	—	$	—	$	2,328	$	—	$	2,328	$	102,656	$	104,984
Commercial real estate	—		—		3,389		—		3,389		165,386		168,775
Real estate construction	—		—		—		—		—		12,574		12,574
Land development	2,080		—		2,564		—		4,644		3,603		8,247
Residential mortgage	198		78		—		—		276		12,346		12,622
Consumer installment	3		—		—		—		3		2,332		2,335
Home equity	297		—		119		—		416		35,285		35,701
Total	$	2,578	$	78	$	8,400	$	—	$	11,056	$	334,182	$	345,238

Schedule of Corporation's TDRs

The following schedule presents the Corporation’s loans reported as TDRs at June 30, 2014, December 31, 2013 and June 30, 2013:



	Performing TDRs		Non-Performing TDRs		Nonaccrual TDRs		Total
	(In thousands)
June 30, 2014
Commercial loan portfolio	$	29,296	$	11,049	$	40,351	$	80,696
Consumer loan portfolio	14,837		5,516		3,334		23,687
Total	$	44,133	$	16,565	$	43,685	$	104,383
December 31, 2013
Commercial loan portfolio	$	26,839	$	13,414	$	31,961	$	72,214
Consumer loan portfolio	12,732		4,676		5,321		22,729
Total	$	39,571	$	18,090	$	37,282	$	94,943
June 30, 2013
Commercial loan portfolio	$	18,497	$	19,140	$	34,678	$	72,315
Consumer loan portfolio	14,160		3,246		5,378		22,784
Total	$	32,657	$	22,386	$	40,056	$	95,099

Schedule providing information on TDRs

The following schedule provides information on the Corporation's TDRs that were modified during the three and six months ended June 30, 2014 and 2013:



	Three Months Ended June 30, 2014					Six Months Ended June 30, 2014
	Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	15	$	3,575	$	3,575	27	$	11,931	$	11,931
Commercial real estate	12	3,134		3,134		21	5,924		5,924
Land development	—	—		—		1	72		72
Subtotal – commercial loan portfolio	27	6,709		6,709		49	17,927		17,927
Consumer loan portfolio	63	1,649		1,648		93	2,636		2,626
Total	90	$	8,358	$	8,357	142	$	20,563	$	20,553



	Three Months Ended June 30, 2013 (As Revised)					Six Months Ended June 30, 2013 (As Revised)
	Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	8	$	2,753	$	2,753	19	$	4,359	$	4,359
Commercial real estate	10	4,019		4,019		24	7,663		7,663
Real estate construction	—	—		—		2	364		364
Land development	2	1,526		1,526		4	1,958		1,958
Subtotal – commercial loan portfolio	20	8,298		8,298		49	14,344		14,344
Consumer loan portfolio	19	765		745		37	2,156		2,100
Total	39	$	9,063	$	9,043	86	$	16,500	$	16,444

Troubled debt restructurings on financing receivables with defaults payment

The following schedule includes TDRs for which there was a payment default during the three and six months ended June 30, 2014 and 2013, whereby the borrower was past due with respect to principal and/or interest for 90 days or more, and the loan became a TDR during the twelve-month period prior to the default:



	Three Months Ended June 30, 2014			Six Months Ended June 30, 2014
	Number of Loans	Principal Balance at End of Period		Number of Loans	Principal Balance at End of Period
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	5	$	771	6	$	875
Commercial real estate	3	603		5	2,273
Subtotal – commercial loan portfolio	8	1,374		11	3,148
Consumer loan portfolio	3	80		3	80
Total	11	$	1,454	14	$	3,228

	Three Months Ended June 30, 2013 (As Revised)			Six Months Ended June 30, 2013 (As Revised)
	Number of Loans	Principal Balance at End of Period		Number of Loans	Principal Balance at End of Period
	(Dollars in thousands)
Commercial loan portfolio:
Commercial	—	$	—	17	$	1,053
Commercial real estate	—	—		1	126
Real estate construction	—	—		1	160
Land development	2	1,526		2	1,526
Subtotal – commercial loan portfolio	2	1,526		21	2,865
Consumer loan portfolio	4	19		9	503
Total	6	$	1,545	30	$	3,368

Schedule of allowance and recorded investment related to financing receivables segregated by portfolio segment

The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2014 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2014 by impairment evaluation method.



	Commercial Loan Portfolio			Consumer Loan Portfolio			Unallocated			Total
	(In thousands)
Changes in allowance for loan losses for the three months ended June 30, 2014:
Beginning balance	$	45,010		$	29,233		$	4,230		$	78,473
Provision for loan losses	439			1,287			(226		)	1,500
Charge-offs	(1,814		)	(1,561		)	—			(3,375		)
Recoveries	589			606			—			1,195
Ending balance	$	44,224		$	29,565		$	4,004		$	77,793
Changes in allowance for loan losses for the six months ended June 30, 2014:
Beginning balance	$	44,482		$	30,145		$	4,445		$	79,072
Provision for loan losses	1,399			2,142			(441		)	3,100
Charge-offs	(3,023		)	(3,824		)	—			(6,847		)
Recoveries	1,366			1,102			—			2,468
Ending balance	$	44,224		$	29,565		$	4,004		$	77,793
Allowance for loan losses balance at June 30, 2014 attributable to:
Loans individually evaluated for impairment	$	1,340		$	379		$	—		$	1,719
Loans collectively evaluated for impairment	42,884			28,686			4,004			75,574
Loans acquired with deteriorated credit quality	—			500			—			500
Total	$	44,224		$	29,565		$	4,004		$	77,793
Recorded investment (loan balance) at June 30, 2014:
Loans individually evaluated for impairment	$	86,823		$	20,353		$	—		$	107,176
Loans collectively evaluated for impairment	2,301,480			2,215,753			—			4,517,233
Loans acquired with deteriorated credit quality	234,569			39,826			—			274,395
Total	$	2,622,872		$	2,275,932		$	—		$	4,898,804

The following schedule presents, by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at December 31, 2013 by impairment evaluation method.



	Commercial Loan Portfolio		Consumer Loan Portfolio		Unallocated		Total
	(In thousands)
Allowance for loan losses balance at December 31, 2013 attributable to:
Loans individually evaluated for impairment	$	1,081	$	510	$	—	$	1,591
Loans collectively evaluated for impairment	43,401		29,135		4,445		76,981
Loans acquired with deteriorated credit quality	—		500		—		500
Total	$	44,482	$	30,145	$	4,445	$	79,072
Recorded investment (loan balance) at December 31, 2013:
Loans individually evaluated for impairment	$	89,905	$	17,408	$	—	$	107,313
Loans collectively evaluated for impairment	2,178,714		2,066,897		—		4,245,611
Loans acquired with deteriorated credit quality	250,207		44,490		—		294,697
Total	$	2,518,826	$	2,128,795	$	—	$	4,647,621

The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and six months ended June 30, 2013 and details regarding the balance in the allowance and the recorded investment in loans at June 30, 2013 by impairment evaluation method.



	Commercial Loan Portfolio			Consumer Loan Portfolio			Unallocated		Total
	(In thousands)
Changes in allowance for loan losses for the three months ended June 30, 2013:
Beginning balance	$	49,107		$	28,852		$	4,875	$	82,834
Provision for loan losses	568			1,648			784		3,000
Charge-offs	(3,221		)	(2,140		)	—		(5,361		)
Recoveries	1,326			385			—		1,711
Ending balance	$	47,780		$	28,745		$	5,659	$	82,184
Changes in allowance for loan losses for the six months ended June 30, 2013:
Beginning balance	$	49,975		$	29,333		$	5,183	$	84,491
Provision for loan losses	3,005			2,519			476		6,000
Charge-offs	(6,737		)	(4,098		)	—		(10,835		)
Recoveries	1,537			991			—		2,528
Ending balance	$	47,780		$	28,745		$	5,659	$	82,184
Allowance for loan losses balance at June 30, 2013 attributable to:
Loans individually evaluated for impairment	$	3,852		$	582		$	—	$	4,434
Loans collectively evaluated for impairment	43,928			27,663			5,659		77,250
Loans acquired with deteriorated credit quality	—			500			—		500
Total	$	47,780		$	28,745		$	5,659	$	82,184
Recorded investment (loan balance) at June 30, 2013:
Loans individually evaluated for impairment	$	80,804		$	17,406		$	—	$	98,210
Loans collectively evaluated for impairment	1,989,486			1,902,937			—		3,892,423
Loans acquired with deteriorated credit quality	294,580			50,658			—		345,238
Total	$	2,364,870		$	1,971,001		$	—	$	4,335,871