Loans (Tables)

9 Months Ended

Sep. 30, 2016

A summary of loans follows:



(Dollars in thousands)	September 30, 2016		December 31, 2015
Commercial loan portfolio:
Commercial	$	3,159,936	$	1,905,879
Commercial real estate	3,773,017		2,112,162
Real estate construction and land development	500,494		232,076
Subtotal	7,433,447		4,250,117
Consumer loan portfolio:
Residential mortgage	3,046,959		1,429,636
Consumer installment	1,335,707		877,457
Home equity	899,676		713,937
Subtotal	5,282,342		3,021,030
Total loans	$	12,715,789	$	7,271,147

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, 2016 and December 31, 2015:



(Dollars in thousands)	Commercial		Commercial Real Estate		Real Estate Construction and Land Development		Total
September 30, 2016
Originated Portfolio:
Risk Grades 1-5	$	1,624,836	$	1,528,013	$	291,841	$	3,444,690
Risk Grade 6	49,934		40,710		288		90,932
Risk Grade 7	35,719		15,132		515		51,366
Risk Grade 8	12,612		19,913		80		32,605
Risk Grade 9	1,130		1		—		1,131
Subtotal	1,724,231		1,603,769		292,724		3,620,724
Acquired Portfolio:
Risk Grades 1-5	1,331,689		1,988,676		203,159		3,523,524
Risk Grade 6	49,679		94,829		742		145,250
Risk Grade 7	37,813		52,317		886		91,016
Risk Grade 8	16,524		33,426		2,983		52,933
Subtotal	1,435,705		2,169,248		207,770		3,812,723
Total	$	3,159,936	$	3,773,017	$	500,494	$	7,433,447
December 31, 2015
Originated Portfolio:
Risk Grades 1-5	$	1,418,301	$	1,341,202	$	183,323	$	2,942,826
Risk Grade 6	34,727		31,036		180		65,943
Risk Grade 7	39,933		26,658		1,123		67,714
Risk Grade 8	26,459		25,163		521		52,143
Risk Grade 9	2,095		—		—		2,095
Subtotal	1,521,515		1,424,059		185,147		3,130,721
Acquired Portfolio:
Risk Grades 1-5	340,782		629,430		41,683		1,011,895
Risk Grade 6	28,321		23,926		2,556		54,803
Risk Grade 7	11,607		29,975		1,537		43,119
Risk Grade 8	3,654		4,772		1,153		9,579
Subtotal	384,364		688,103		46,929		1,119,396
Total	$	1,905,879	$	2,112,162	$	232,076	$	4,250,117

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, 2016 and December 31, 2015:



(Dollars in thousands)	Residential Mortgage		Consumer Installment		Home Equity		Total Consumer
September 30, 2016
Originated Loans:
Performing	$	1,363,819	$	1,171,759	$	589,374	$	3,124,952
Nonperforming	7,185		378		2,692		10,255
Subtotal	1,371,004		1,172,137		592,066		3,135,207
Acquired Loans	1,675,955		163,570		307,610		2,147,135
Total	$	3,046,959	$	1,335,707	$	899,676	$	5,282,342
December 31, 2015
Originated Loans:
Performing	$	1,207,945	$	868,975	$	587,566	$	2,664,486
Nonperforming	9,030		451		3,246		12,727
Subtotal	1,216,975		869,426		590,812		2,677,213
Acquired Loans	212,661		8,031		123,125		343,817
Total	$	1,429,636	$	877,457	$	713,937	$	3,021,030

Summary of nonperforming loans

A summary of nonperforming loans follows:



(Dollars in thousands)	September 30, 2016		December 31, 2015
Nonaccrual loans:
Commercial	$	13,742	$	28,554
Commercial real estate	19,914		25,163
Real estate construction and land development	80		521
Residential mortgage	5,119		5,557
Consumer installment	378		451
Home equity	2,064		1,979
Total nonaccrual loans	41,297		62,225
Accruing loans contractually past due 90 days or more as to interest or principal payments:
Commercial	221		364
Commercial real estate	739		254
Real estate construction and land development	1,439		—
Residential mortgage	375		402
Home equity	628		1,267
Total accruing loans contractually past due 90 days or more as to interest or principal payments	3,402		2,287
Nonperforming TDRs:
Commercial loan portfolio	15,261		16,297
Consumer loan portfolio	1,691		3,071
Total nonperforming TDRs	16,952		19,368
Total nonperforming loans (1)	$	61,651	$	83,880

(1) Acquired loans that are not performing in accordance with contractual terms are not reported as nonperforming loans because these loans are recorded in pools at their net realizable value based on the principal and interest the Corporation expects to collect on these loans.

Schedule of Impaired loans by classes

The following schedule presents impaired loans by classes of loans at September 30, 2016 and December 31, 2015:



(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Valuation Allowance
September 30, 2016
Impaired loans with a valuation allowance:
Commercial	$	4,906	$	4,911	$	2,729
Commercial real estate	2,741		2,741		516
Residential mortgage	19,864		19,864		154
Subtotal	27,511		27,516		3,399
Impaired loans with no related valuation allowance:
Commercial	53,542		78,494		—
Commercial real estate	69,713		118,751		—
Real estate construction and land development	3,362		8,894		—
Residential mortgage	34,310		54,414		—
Consumer installment	1,004		1,538		—
Home equity	7,573		10,245		—
Subtotal	169,504		272,336		—
Total impaired loans:
Commercial	58,448		83,405		2,729
Commercial real estate	72,454		121,492		516
Real estate construction and land development	3,362		8,894		—
Residential mortgage	54,174		74,278		154
Consumer installment	1,004		1,538		—
Home equity	7,573		10,245		—
Total	$	197,015	$	299,852	$	3,399
December 31, 2015
Impaired loans with a valuation allowance:
Commercial	$	18,898	$	19,426	$	5,700
Commercial real estate	4,448		4,688		497
Residential mortgage	21,037		21,037		192
Subtotal	44,383		45,151		6,389
Impaired loans with no related valuation allowance:
Commercial	31,039		37,703		—
Commercial real estate	53,518		69,130		—
Real estate construction and land development	2,136		3,108		—
Residential mortgage	7,638		8,644		—
Consumer installment	498		512		—
Home equity	2,986		3,270		—
Subtotal	97,815		122,367		—
Total impaired loans:
Commercial	49,937		57,129		5,700
Commercial real estate	57,966		73,818		497
Real estate construction and land development	2,136		3,108		—
Residential mortgage	28,675		29,681		192
Consumer installment	498		512		—
Home equity	2,986		3,270		—
Total	$	142,198	$	167,518	$	6,389

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, 2016 and 2015, respectively:



	Three Months Ended September 30, 2016				Nine Months Ended September 30, 2016
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status
Commercial	$	43,812	$	1,073	$	42,478	$	1,750
Commercial real estate	58,658		1,219		56,779		2,068
Real estate construction and land development	2,400		64		2,243		115
Residential mortgage	35,986		818		30,499		1,540
Consumer installment	601		17		439		19
Home equity	4,466		95		3,504		123
Total	$	145,923	$	3,286	$	135,942	$	5,615



	Three Months Ended September 30, 2015				Nine months ended September 30, 2015
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized While on Impaired Status		Average Recorded Investment		Interest Income Recognized While on Impaired Status
Commercial	$	42,847	$	310	$	39,387	$	862
Commercial real estate	59,150		470		59,927		1,453
Real estate construction and land development	2,210		26		2,338		89
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

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, 2016 and December 31, 2015:



(Dollars in thousands)	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
September 30, 2016
Originated Portfolio:
Commercial	$	6,313	$	2,675	$	221	$	13,742	$	22,951	$	1,701,280	$	1,724,231
Commercial real estate	11,913		726		739		19,914		33,292		1,570,477		1,603,769
Real estate construction and land development	3,003		—		1,439		80		4,522		288,202		292,724
Residential mortgage	2,627		—		375		5,119		8,121		1,362,883		1,371,004
Consumer installment	2,425		448		—		378		3,251		1,168,886		1,172,137
Home equity	3,097		940		628		2,064		6,729		585,337		592,066
Total	$	29,378	$	4,789	$	3,402	$	41,297	$	78,866	$	6,677,065	$	6,755,931
Acquired Portfolio:
Commercial	$	3,116	$	1,146	$	11,984	$	—	$	16,246	$	1,419,459	$	1,435,705
Commercial real estate	4,315		2,844		25,444		—		32,603		2,136,645		2,169,248
Real estate construction and land development	208		153		2,902		—		3,263		204,507		207,770
Residential mortgage	1,452		2,895		10,719		—		15,066		1,660,889		1,675,955
Consumer installment	1,367		200		203		—		1,770		161,800		163,570
Home equity	1,082		1,143		1,461		—		3,686		303,924		307,610
Total	$	11,540	$	8,381	$	52,713	$	—	$	72,634	$	5,887,224	$	5,959,858
December 31, 2015
Originated Portfolio:
Commercial	$	3,685	$	1,230	$	364	$	28,554	$	33,833	$	1,487,682	$	1,521,515
Commercial real estate	4,168		1,603		254		25,163		31,188		1,392,871		1,424,059
Real estate construction and land development	—		—		—		521		521		184,626		185,147
Residential mortgage	1,737		—		402		5,557		7,696		1,209,279		1,216,975
Consumer installment	3,145		644		—		451		4,240		865,186		869,426
Home equity	1,767		788		1,267		1,979		5,801		585,011		590,812
Total	$	14,502	$	4,265	$	2,287	$	62,225	$	83,279	$	5,724,655	$	5,807,934
Acquired Portfolio:
Commercial	$	490	$	532	$	3,735	$	—	$	4,757	$	379,607	$	384,364
Commercial real estate	3,557		691		4,771		—		9,019		679,084		688,103
Real estate construction and land development	—		—		1,154		—		1,154		45,775		46,929
Residential mortgage	1,370		—		2,081		—		3,451		209,210		212,661
Consumer installment	55		—		47		—		102		7,929		8,031
Home equity	847		78		1,007		—		1,932		121,193		123,125
Total	$	6,319	$	1,301	$	12,795	$	—	$	20,415	$	1,442,798	$	1,463,213

Schedule of Corporation's TDRs

The following schedule presents the Corporation’s TDRs at September 30, 2016 and December 31, 2015:



(Dollars in thousands)	Performing TDRs		Non-Performing TDRs		Nonaccrual TDRs		Total
September 30, 2016
Commercial loan portfolio	$	30,662	$	15,261	$	26,340	$	72,263
Consumer loan portfolio	18,173		1,691		3,165		23,029
Total	$	48,835	$	16,952	$	29,505	$	95,292
December 31, 2015
Commercial loan portfolio	$	29,844	$	16,297	$	32,682	$	78,823
Consumer loan portfolio	17,966		3,071		3,251		24,288
Total	$	47,810	$	19,368	$	35,933	$	103,111

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, 2016 and 2015:



	Three Months Ended September 30, 2016					Nine Months Ended September 30, 2016
(Dollars in thousands)	Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment
Commercial loan portfolio:
Commercial	4	$	4,160	$	4,160	32	$	12,141	$	12,141
Commercial real estate	—	—		—		6	2,441		2,441
Subtotal – commercial loan portfolio	4	4,160		4,160		38	14,582		14,582
Consumer loan portfolio	2	89		89		23	783		783
Total	6	$	4,249	$	4,249	61	$	15,365	$	15,365



	Three Months Ended September 30, 2015					Nine months ended September 30, 2015
(Dollars in thousands)	Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment		Number of Loans	Pre- Modification Recorded Investment		Post- Modification Recorded Investment
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
Real estate construction and 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

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, 2016 and 2015, 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, 2016			Nine Months Ended September 30, 2016
(Dollars in thousands)	Number of Loans	Principal Balance at End of Period		Number of Loans	Principal Balance at End of Period
Commercial loan portfolio:
Commercial real estate	—	$	—	2	$	1,721
Subtotal – commercial loan portfolio	—	—		2	1,721
Consumer loan portfolio	1	—		3	—
Total	1	$	—	5	$	1,721



	Three Months Ended September 30, 2015			Nine months ended September 30, 2015
(Dollars in thousands)	Number of Loans	Principal Balance at End of Period		Number of Loans	Principal Balance at End of Period
Commercial loan portfolio:
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

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, 2016 and 2015, respectively, and details regarding the balance in the allowance and the recorded investment in loans at September 30, 2016 by impairment evaluation method.



(Dollars in thousands)	Commercial Loan Portfolio			Consumer Loan Portfolio			Unallocated			Total
Changes in allowance for loan losses for the three months ended September 30, 2016:
Beginning balance	$	44,228		$	27,278		$	—		$	71,506
Provision for loan losses	3,537			566			—			4,103
Charge-offs	(824		)	(2,037		)	—			(2,861		)
Recoveries	489			538			—			1,027
Ending balance	$	47,430		$	26,345		$	—		$	73,775
Changes in allowance for loan losses for the nine months ended September 30, 2016:
Beginning balance	$	47,234		$	26,094		$	—		$	73,328
Provision for loan losses	5,437			3,166			—			8,603
Charge-offs	(7,262		)	(4,677		)	—			(11,939		)
Recoveries	2,021			1,762			—			3,783
Ending balance	$	47,430		$	26,345		$	—		$	73,775
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, 2016 attributable to:
Loans individually evaluated for impairment	$	3,245		$	154		$	—		$	3,399
Loans collectively evaluated for impairment	44,185			26,191			—			70,376
Loans acquired with deteriorated credit quality	—			—			—			—
Total	$	47,430		$	26,345		$	—		$	73,775
Recorded investment (loan balance) at September 30, 2016:
Loans individually evaluated for impairment	$	79,659		$	19,864		$	—		$	99,523
Loans collectively evaluated for impairment	3,541,065			3,115,343			—			6,656,408
Loans acquired with deteriorated credit quality	3,812,723			2,147,135			—			5,959,858
Total	$	7,433,447		$	5,282,342		$	—		$	12,715,789

The following schedule presents, by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at December 31, 2015 by impairment evaluation method.



(Dollars in thousands)	Commercial Loan Portfolio		Consumer Loan Portfolio		Total
Allowance for loan losses balance at December 31, 2015 attributable to:
Loans individually evaluated for impairment	$	6,197	$	192	$	6,389
Loans collectively evaluated for impairment	41,037		25,902		66,939
Loans acquired with deteriorated credit quality	—		—		—
Total	$	47,234	$	26,094	$	73,328
Recorded investment (loan balance) at December 31, 2015:
Loans individually evaluated for impairment	$	100,379	$	21,037	$	121,416
Loans collectively evaluated for impairment	3,030,342		2,656,176		5,686,518
Loans acquired with deteriorated credit quality	1,119,396		343,817		1,463,213
Total	$	4,250,117	$	3,021,030	$	7,271,147