Loans (Tables)

9 Months Ended

Sep. 30, 2015

A summary of loans follows:



	September 30, 2015		December 31, 2014		September 30, 2014
	(In thousands)
Commercial loan portfolio:
Commercial	$	1,829,870	$	1,354,881	$	1,239,946
Commercial real estate	2,227,364		1,557,648		1,322,646
Real estate construction	133,405		152,745		125,782
Land development	12,176		18,750		10,434
Subtotal	4,202,815		3,084,024		2,698,808
Consumer loan portfolio:
Residential mortgage	1,394,427		1,110,390		984,049
Consumer installment	899,751		829,570		783,443
Home equity	719,202		664,246		574,620
Subtotal	3,013,380		2,604,206		2,342,112
Total loans	$	7,216,195	$	5,688,230	$	5,040,920

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 September 30, 2015, December 31, 2014 and September 30, 2014:



	Commercial		Commercial Real Estate		Real Estate Construction		Land Development		Total
	(In thousands)
September 30, 2015
Originated Portfolio:
Risk Grades 1-5	$	1,356,073	$	1,345,565	$	126,836	$	6,233	$	2,834,707
Risk Grade 6	39,781		31,303		—		433		71,517
Risk Grade 7	42,923		26,951		737		868		71,479
Risk Grade 8	24,341		24,966		247		297		49,851
Risk Grade 9	2,122		3		—		—		2,125
Subtotal	1,465,240		1,428,788		127,820		7,831		3,029,679
Acquired Portfolio:
Risk Grades 1-5	327,862		736,248		5,432		1,416		1,070,958
Risk Grade 6	18,970		28,901		—		106		47,977
Risk Grade 7	11,554		28,168		—		2,099		41,821
Risk Grade 8	6,244		5,259		153		724		12,380
Risk Grade 9	—		—		—		—		—
Subtotal	364,630		798,576		5,585		4,345		1,173,136
Total	$	1,829,870	$	2,227,364	$	133,405	$	12,176	$	4,202,815
December 31, 2014
Originated Portfolio:
Risk Grades 1-5	$	1,171,817	$	1,114,529	$	134,668	$	2,952	$	2,423,966
Risk Grade 6	37,800		34,996		1,408		738		74,942
Risk Grade 7	29,863		29,935		2,502		613		62,913
Risk Grade 8	16,417		24,958		162		225		41,762
Risk Grade 9	1		8		—		—		9
Subtotal	1,255,898		1,204,426		138,740		4,528		2,603,592
Acquired Portfolio:
Risk Grades 1-5	76,780		321,018		14,005		11,789		423,592
Risk Grade 6	12,687		8,698		—		583		21,968
Risk Grade 7	4,089		12,478		—		197		16,764
Risk Grade 8	5,427		11,028		—		1,653		18,108
Risk Grade 9	—		—		—		—		—
Subtotal	98,983		353,222		14,005		14,222		480,432
Total	$	1,354,881	$	1,557,648	$	152,745	$	18,750	$	3,084,024
September 30, 2014
Originated Portfolio:
Risk Grades 1-5	$	1,098,885	$	1,090,397	$	110,402	$	3,228	$	2,302,912
Risk Grade 6	16,469		27,087		666		943		45,165
Risk Grade 7	34,409		42,134		3,751		618		80,912
Risk Grade 8	18,006		23,847		162		1,467		43,482
Risk Grade 9	207		11		—		—		218
Subtotal	1,167,976		1,183,476		114,981		6,256		2,472,689
Acquired Portfolio:
Risk Grades 1-5	58,342		130,887		10,801		2,303		202,333
Risk Grade 6	3,909		2,086		—		—		5,995
Risk Grade 7	5,885		6,197		—		148		12,230
Risk Grade 8	3,834		—		—		1,727		5,561
Risk Grade 9	—		—		—		—		—
Subtotal	71,970		139,170		10,801		4,178		226,119
Total	$	1,239,946	$	1,322,646	$	125,782	$	10,434	$	2,698,808

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 September 30, 2015, December 31, 2014 and September 30, 2014:



	Residential Mortgage		Consumer Installment		Home Equity		Total Consumer
	(In thousands)
September 30, 2015
Originated Loans:
Performing	$	1,150,736	$	886,921	$	586,479	$	2,624,136
Nonperforming	10,374		536		2,434		13,344
Subtotal	1,161,110		887,457		588,913		2,637,480
Acquired Loans:
Performing	229,930		12,227		129,033		371,190
Nonperforming	3,387		67		1,256		4,710
Subtotal	233,317		12,294		130,289		375,900
Total	$	1,394,427	$	899,751	$	719,202	$	3,013,380
December 31, 2014
Originated Loans:
Performing	$	987,542	$	818,878	$	566,083	$	2,372,503
Nonperforming	10,459		500		3,013		13,972
Subtotal	998,001		819,378		569,096		2,386,475
Acquired Loans:
Performing	111,101		10,174		94,696		215,971
Nonperforming	1,288		18		454		1,760
Subtotal	112,389		10,192		95,150		217,731
Total	$	1,110,390	$	829,570	$	664,246	$	2,604,206
September 30, 2014
Originated Loans:
Performing	$	963,469	$	782,087	$	544,227	$	2,289,783
Nonperforming	10,720		527		3,895		15,142
Subtotal	974,189		782,614		548,122		2,304,925
Acquired Loans:
Performing	9,658		728		26,327		36,713
Nonperforming	202		101		171		474
Subtotal	9,860		829		26,498		37,187
Total	$	984,049	$	783,443	$	574,620	$	2,342,112

Summary of nonperforming loans

A summary of nonperforming loans follows:



	September 30, 2015		December 31, 2014		September 30, 2014
	(In thousands)
Nonaccrual loans:
Commercial	$	26,463	$	16,418	$	18,213
Commercial real estate	24,969		24,966		23,858
Real estate construction	247		162		162
Land development	297		225		1,467
Residential mortgage	6,248		6,706		6,693
Consumer installment	536		500		527
Home equity	1,876		1,667		2,116
Total nonaccrual loans	60,636		50,644		53,036
Accruing loans contractually past due 90 days or more as to interest or principal payments:
Commercial	122		170		16
Commercial real estate	216		—		87
Real estate construction	—		—		—
Land development	—		—		—
Residential mortgage	572		557		380
Consumer installment	—		—		—
Home equity	558		1,346		1,779
Total accruing loans contractually past due 90 days or more as to interest or principal payments	1,468		2,073		2,262
Nonperforming TDRs:
Commercial loan portfolio	15,559		15,271		11,797
Consumer loan portfolio	3,554		3,196		3,647
Total nonperforming TDRs	19,113		18,467		15,444
Total nonperforming loans	$	81,217	$	71,184	$	70,742

Schedule of Impaired loans by classes

The following schedule presents impaired loans by classes of loans at September 30, 2015, December 31, 2014 and September 30, 2014:



	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance
	(In thousands)
September 30, 2015
Impaired loans with a valuation allowance:
Commercial	$	19,784	$	20,059	$	5,711
Commercial real estate	4,634		5,481		711
Residential mortgage	21,261		21,261		226
Subtotal	45,679		46,801		6,648
Impaired loans with no related valuation allowance:
Commercial	28,742		35,072		—
Commercial real estate	52,651		72,381		—
Real estate construction	400		480		—
Land development	1,354		2,285		—
Residential mortgage	9,635		9,635		—
Consumer installment	603		603		—
Home equity	3,132		3,132		—
Subtotal	96,517		123,588		—
Total impaired loans:
Commercial	48,526		55,131		5,711
Commercial real estate	57,285		77,862		711
Real estate construction	400		480		—
Land development	1,354		2,285		—
Residential mortgage	30,896		30,896		226
Consumer installment	603		603		—
Home equity	3,132		3,132		—
Total	$	142,196	$	170,389	$	6,648
December 31, 2014
Impaired loans with a valuation allowance:
Commercial	$	966	$	1,040	$	293
Commercial real estate	2,587		2,927		710
Residential mortgage	19,681		19,681		335
Subtotal	23,234		23,648		1,338
Impaired loans with no related valuation allowance:
Commercial	38,094		44,557		—
Commercial real estate	60,616		82,693		—
Real estate construction	162		255		—
Land development	1,928		3,484		—
Residential mortgage	7,994		7,994		—
Consumer installment	518		518		—
Home equity	2,121		2,121		—
Subtotal	111,433		141,622		—
Total impaired loans:
Commercial	39,060		45,597		293
Commercial real estate	63,203		85,620		710
Real estate construction	162		255		—
Land development	1,928		3,484		—
Residential mortgage	27,675		27,675		335
Consumer installment	518		518		—
Home equity	2,121		2,121		—
Total	$	134,667	$	165,270	$	1,338



	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance
	(In thousands)
September 30, 2014
Impaired loans with a valuation allowance:
Commercial	$	1,253	$	1,396	$	313
Commercial real estate	3,779		4,094		862
Residential mortgage	19,629		19,629		328
Subtotal	24,661		25,119		1,503
Impaired loans with no related valuation allowance:
Commercial	40,344		45,259		—
Commercial real estate	45,550		59,037		—
Real estate construction	162		369		—
Land development	3,244		5,969		—
Residential mortgage	6,693		6,693		—
Consumer installment	527		527		—
Home equity	2,116		2,116		—
Subtotal	98,636		119,970		—
Total impaired loans:
Commercial	41,597		46,655		313
Commercial real estate	49,329		63,131		862
Real estate construction	162		369		—
Land development	3,244		5,969		—
Residential mortgage	26,322		26,322		328
Consumer installment	527		527		—
Home equity	2,116		2,116		—
Total	$	123,297	$	145,089	$	1,503

Schedule presents information related to impaired loans

The following schedule presents information related to impaired loans for the three and nine months ended September 30, 2015 and 2014:



	Three Months Ended September 30, 2015				Nine Months Ended September 30, 2015
	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status
	(In thousands)
Commercial	$	42,847	$	310	$	39,387	$	862
Commercial real estate	59,150		470		59,927		1,453
Real estate construction	445		3		491		5
Land development	1,765		23		1,847		84
Residential mortgage	30,467		387		29,084		1,098
Consumer installment	497		—		474		1
Home equity	3,026		20		2,635		42
Total	$	138,197	$	1,213	$	133,845	$	3,545



	Three Months Ended September 30, 2014				Nine Months Ended September 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	$	41,903	$	346	$	42,046	$	1,026
Commercial real estate	50,133		263		51,571		990
Real estate construction	162		—		164		—
Land development	3,284		30		4,079		101
Residential mortgage	26,166		310		26,561		941
Consumer installment	481		—		630		—
Home equity	2,246		—		2,212		—
Total	$	124,375	$	949	$	127,263	$	3,058

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 September 30, 2015, December 31, 2014 and September 30, 2014:



	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)
September 30, 2015
Originated Portfolio:
Commercial	$	4,580	$	1,297	$	122	$	26,463	$	32,462	$	1,432,778	$	1,465,240
Commercial real estate	7,716		344		216		24,969		33,245		1,395,543		1,428,788
Real estate construction	—		—		—		247		247		127,573		127,820
Land development	—		—		—		297		297		7,534		7,831
Residential mortgage	1,818		85		572		6,248		8,723		1,152,387		1,161,110
Consumer installment	3,075		375		—		536		3,986		883,471		887,457
Home equity	2,427		750		558		1,876		5,611		583,302		588,913
Total	$	19,616	$	2,851	$	1,468	$	60,636	$	84,571	$	5,582,588	$	5,667,159
Acquired Portfolio:
Commercial	$	209	$	—	$	6,273	$	—	$	6,482	$	358,148	$	364,630
Commercial real estate	722		760		5,783		—		7,265		791,311		798,576
Real estate construction	—		—		153		—		153		5,432		5,585
Land development	—		—		725		—		725		3,620		4,345
Residential mortgage	908		—		3,387		—		4,295		229,022		233,317
Consumer installment	30		—		67		—		97		12,197		12,294
Home equity	675		340		1,256		—		2,271		128,018		130,289
Total	$	2,544	$	1,100	$	17,644	$	—	$	21,288	$	1,527,748	$	1,549,036



	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, 2014
Originated Portfolio:
Commercial	$	4,033	$	743	$	170	$	16,418	$	21,364	$	1,234,534	$	1,255,898
Commercial real estate	7,515		1,383		—		24,966		33,864		1,170,562		1,204,426
Real estate construction	262		—		—		162		424		138,316		138,740
Land development	—		—		—		225		225		4,303		4,528
Residential mortgage	2,126		54		557		6,706		9,443		988,558		998,001
Consumer installment	3,620		512		—		500		4,632		814,746		819,378
Home equity	3,039		660		1,346		1,667		6,712		562,384		569,096
Total	$	20,595	$	3,352	$	2,073	$	50,644	$	76,664	$	4,913,403	$	4,990,067
Acquired Portfolio:
Commercial	$	133	$	—	$	5,427	$	—	$	5,560	$	93,423	$	98,983
Commercial real estate	2,014		352		11,052		—		13,418		339,804		353,222
Real estate construction	—		—		—		—		—		14,005		14,005
Land development	—		—		1,653		—		1,653		12,569		14,222
Residential mortgage	156		—		18		—		174		112,215		112,389
Consumer installment	55		3		454		—		512		9,680		10,192
Home equity	636		106		1,288		—		2,030		93,120		95,150
Total	$	2,994	$	461	$	19,892	$	—	$	23,347	$	674,816	$	698,163
September 30, 2014
Originated Portfolio:
Commercial	$	3,717	$	1,145	$	16	$	18,213	$	23,091	$	1,144,885	$	1,167,976
Commercial real estate	3,837		29		87		23,858		27,811		1,155,665		1,183,476
Real estate construction	1,075		—		—		162		1,237		113,744		114,981
Land development	—		—		—		1,467		1,467		4,789		6,256
Residential mortgage	1,669		—		380		6,693		8,742		965,447		974,189
Consumer installment	2,859		437		—		527		3,823		778,791		782,614
Home equity	2,592		361		1,779		2,116		6,848		541,274		548,122
Total	$	15,749	$	1,972	$	2,262	$	53,036	$	73,019	$	4,704,595	$	4,777,614
Acquired Portfolio:
Commercial	$	—	$	—	$	6,514	$	—	$	6,514	$	65,456	$	71,970
Commercial real estate	—		—		1,559		—		1,559		137,611		139,170
Real estate construction	—		—		—		—		—		10,801		10,801
Land development	—		—		1,727		—		1,727		2,451		4,178
Residential mortgage	—		—		202		—		202		9,658		9,860
Consumer installment	—		—		—		—		—		829		829
Home equity	335		—		227		—		562		25,936		26,498
Total	$	335	$	—	$	10,229	$	—	$	10,564	$	252,742	$	263,306

Schedule of Corporation's TDRs

The following schedule presents the Corporation’s loans reported as TDRs at September 30, 2015, December 31, 2014 and September 30, 2014:



	Performing TDRs		Non-Performing TDRs		Nonaccrual TDRs		Total
	(In thousands)
September 30, 2015
Commercial loan portfolio	$	27,096	$	15,559	$	31,743	$	74,398
Consumer loan portfolio	17,707		3,554		3,329		24,590
Total	$	44,803	$	19,113	$	35,072	$	98,988
December 31, 2014
Commercial loan portfolio	$	29,179	$	15,271	$	32,597	$	77,047
Consumer loan portfolio	16,485		3,196		4,594		24,275
Total	$	45,664	$	18,467	$	37,191	$	101,322
September 30, 2014
Commercial loan portfolio	$	28,606	$	11,797	$	36,549	$	76,952
Consumer loan portfolio	15,982		3,647		3,996		23,625
Total	$	44,588	$	15,444	$	40,545	$	100,577

Schedule providing information on TDRs

The following schedule provides information on the Corporation's TDRs that were modified during the three and nine months ended September 30, 2015 and 2014:



	Three Months Ended September 30, 2015					Nine Months Ended September 30, 2015
	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	3	$	882	$	882	21	$	5,146	$	5,146
Commercial real estate	3	2,044		2,044		12	5,105		5,105
Land development	—	—		—		1	305		305
Subtotal – commercial loan portfolio	6	2,926		2,926		34	10,556		10,556
Consumer loan portfolio	15	481		481		54	2,450		2,448
Total	21	$	3,407	$	3,407	88	$	13,006	$	13,004



	Three Months Ended September 30, 2014					Nine Months Ended September 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	7	$	448	$	448	34	$	12,379	$	12,379
Commercial real estate	7	1,138		1,138		28	7,062		7,062
Land development	—	—		—		1	72		72
Subtotal – commercial loan portfolio	14	1,586		1,586		63	19,513		19,513
Consumer loan portfolio	14	572		565		107	3,208		3,191
Total	28	$	2,158	$	2,151	170	$	22,721	$	22,704

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 nine months ended September 30, 2015 and 2014, 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 September 30, 2015			Nine Months Ended September 30, 2015
	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	—	$	—	—	$	—
Commercial real estate	1	74		5	1,016
Subtotal – commercial loan portfolio	1	74		5	1,016
Consumer loan portfolio	1	13		2	46
Total	2	$	87	7	$	1,062

	Three Months Ended September 30, 2014			Nine Months Ended September 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	—	$	—	6	$	875
Commercial real estate	—	—		5	2,273
Subtotal – commercial loan portfolio	—	—		11	3,148
Consumer loan portfolio	4	162		7	242
Total	4	$	162	18	$	3,390

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 nine months ended September 30, 2015 and details regarding the balance in the allowance and the recorded investment in loans at September 30, 2015 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 September 30, 2015:
Beginning balance	$	45,527		$	23,321		$	6,093		$	74,941
Provision for loan losses	2,637			(351		)	(786		)	1,500
Charge-offs	(539		)	(1,656		)	—			(2,195		)
Recoveries	769			611			—			1,380
Ending balance	$	48,394		$	21,925		$	5,307		$	75,626
Changes in allowance for loan losses for the nine months ended September 30, 2015:
Beginning balance	$	44,156		$	28,803		$	2,724		$	75,683
Provision for loan losses	5,604			(3,687		)	2,583			4,500
Charge-offs	(2,958		)	(5,104		)	—			(8,062		)
Recoveries	1,592			1,913			—			3,505
Ending balance	$	48,394		$	21,925		$	5,307		$	75,626
Allowance for loan losses balance at September 30, 2015 attributable to:
Loans individually evaluated for impairment	$	6,422		$	226		$	—		$	6,648
Loans collectively evaluated for impairment	41,972			21,699			5,307			68,978
Loans acquired with deteriorated credit quality	—			—			—			—
Total	$	48,394		$	21,925		$	5,307		$	75,626
Recorded investment (loan balance) at September 30, 2015:
Loans individually evaluated for impairment	$	94,631		$	21,261		$	—		$	115,892
Loans collectively evaluated for impairment	2,935,048			2,616,219			—			5,551,267
Loans acquired with deteriorated credit quality	1,173,136			375,900			—			1,549,036
Total	$	4,202,815		$	3,013,380		$	—		$	7,216,195

The following schedule presents, by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at December 31, 2014 by impairment evaluation method.



	Commercial Loan Portfolio		Consumer Loan Portfolio		Unallocated		Total
	(In thousands)
Allowance for loan losses balance at December 31, 2014 attributable to:
Loans individually evaluated for impairment	$	1,003	$	335	$	—	$	1,338
Loans collectively evaluated for impairment	43,153		27,968		2,724		73,845
Loans acquired with deteriorated credit quality	—		500		—		500
Total	$	44,156	$	28,803	$	2,724	$	75,683
Recorded investment (loan balance) at December 31, 2014:
Loans individually evaluated for impairment	$	86,221	$	19,681	$	—	$	105,902
Loans collectively evaluated for impairment	2,517,371		2,366,794		—		4,884,165
Loans acquired with deteriorated credit quality	480,432		217,731		—		698,163
Total	$	3,084,024	$	2,604,206	$	—	$	5,688,230

The following schedule presents, by loan portfolio segment, the changes in the allowance for the three and nine months ended September 30, 2014 and details regarding the balance in the allowance and the recorded investment in loans at September 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 September 30, 2014:
Beginning balance	$	44,224		$	29,565		$	4,004		$	77,793
Provision for loan losses	715			834			(49		)	1,500
Charge-offs	(1,733		)	(1,889		)	—			(3,622		)
Recoveries	789			546			—			1,335
Ending balance	$	43,995		$	29,056		$	3,955		$	77,006
Changes in allowance for loan losses for the nine months ended September 30, 2014:
Beginning balance	$	44,482		$	30,145		$	4,445		$	79,072
Provision for loan losses	2,114			2,976			(490		)	4,600
Charge-offs	(4,756		)	(5,713		)	—			(10,469		)
Recoveries	2,155			1,648			—			3,803
Ending balance	$	43,995		$	29,056		$	3,955		$	77,006
Allowance for loan losses balance at September 30, 2014 attributable to:
Loans individually evaluated for impairment	$	1,175		$	328		$	—		$	1,503
Loans collectively evaluated for impairment	42,820			28,228			3,955			75,003
Loans acquired with deteriorated credit quality	—			500			—			500
Total	$	43,995		$	29,056		$	3,955		$	77,006
Recorded investment (loan balance) at September 30, 2014:
Loans individually evaluated for impairment	$	84,103		$	19,629		$	—		$	103,732
Loans collectively evaluated for impairment	2,388,586			2,285,296			—			4,673,882
Loans acquired with deteriorated credit quality	226,119			37,187			—			263,306
Total	$	2,698,808		$	2,342,112		$	—		$	5,040,920