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Loans (Tables)
 9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Summary of loans under portfolio
A summary of the Corporation's loans follows:
(Dollars in thousands)
 
Originated
 
Acquired(1)
 
Total Loans
 
September 30, 2017
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
Commercial
 
$
2,255,444

 
$
1,064,521

 
$
3,319,965

 
Commercial real estate
 
2,472,224

 
1,843,754

 
4,315,978

 
Real estate construction and land development
 
421,764

 
79,649

 
501,413

 
Subtotal
 
5,149,432

 
2,987,924

 
8,137,356

 
Consumer loan portfolio:
 
 
 
 
 
 
 
Residential mortgage
 
1,881,285

 
1,340,022

 
3,221,307

 
Consumer installment
 
1,502,814

 
113,169

 
1,615,983

 
Home equity
 
622,565

 
236,157

 
858,722

 
Subtotal
 
4,006,664

 
1,689,348

 
5,696,012

 
Total loans
 
$
9,156,096

 
$
4,677,272

 
$
13,833,368

(2) 
December 31, 2016
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
Commercial
 
$
1,901,526

 
$
1,315,774

 
$
3,217,300

 
Commercial real estate
 
1,921,799

 
2,051,341

 
3,973,140

 
Real estate construction and land development
 
281,724

 
122,048

 
403,772

 
Subtotal
 
4,105,049

 
3,489,163

 
7,594,212

 
Consumer loan portfolio:
 
 
 
 
 
 
 
Residential mortgage
 
1,475,342

 
1,611,132

 
3,086,474

 
Consumer installment
 
1,282,588

 
151,296

 
1,433,884

 
Home equity
 
595,422

 
280,787

 
876,209

 
Subtotal
 
3,353,352

 
2,043,215

 
5,396,567

 
Total loans
 
$
7,458,401

 
$
5,532,378

 
$
12,990,779

(2) 

(1) 
Acquired loans are accounted for under ASC 310-30.
(2) 
Reported net of deferred costs totaling $25.6 million and $14.8 million at September 30, 2017 and December 31, 2016, respectively.
Schedule of activity for accretable yield
Activity for the accretable yield, which includes contractually due interest for acquired loans that have been renewed or extended since the date of acquisition and continue to be accounted for in loan pools in accordance with ASC 310-30, follows:
(Dollars in thousands)
 
Talmer
 
Lake Michigan
 
Monarch
 
North-western
 
OAK
 
Total
Three Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
801,369

 
$
121,572

 
$
24,270

 
$
71,212

 
$
19,796

 
$
1,038,219

Accretion recognized in interest income
 
(43,816
)
 
(7,201
)
 
(1,119
)
 
(5,263
)
 
(3,004
)
 
(60,403
)
Net reclassification (to) from nonaccretable difference(1)
 
11,861

 
(14,482
)
 
168

 
(1,358
)
 
1,999

 
(1,812
)
Balance at end of period
 
$
769,414

 
$
99,889

 
$
23,319

 
$
64,591

 
$
18,791

 
$
976,004

 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
—

 
$
125,343

 
$
30,859

 
$
73,746

 
$
26,592

 
$
256,540

Addition attributable to acquisitions
 
862,127

 
—

 
—

 
—

 
—

 
862,127

Accretion recognized in interest income
 
(17,415
)
 
(7,968
)
 
(1,322
)
 
(3,890
)
 
(3,423
)
 
(34,018
)
Net reclassification (to) from nonaccretable difference(1)
 
—

 
6,565

 
114

 
526

 
19

 
7,224

Balance at end of period
 
$
844,712

 
$
123,940

 
$
29,651

 
$
70,382

 
$
23,188

 
$
1,091,873

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2017
 
 
 
 
Balance at beginning of period
 
$
798,210

 
$
121,416

 
$
27,182

 
$
69,847

 
$
23,316

 
$
1,039,971

Accretion recognized in interest income
 
(133,478
)
 
(22,050
)
 
(3,459
)
 
(15,222
)
 
(9,595
)
 
(183,804
)
Net reclassification (to) from nonaccretable difference(1)
 
104,682

 
523

 
(404
)
 
9,966

 
5,070

 
119,837

Balance at end of period
 
$
769,414

 
$
99,889

 
$
23,319

 
$
64,591

 
$
18,791

 
$
976,004

 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
—

 
$
152,999

 
$
34,558

 
$
82,623

 
$
28,077

 
$
298,257

Additions attributable to acquisitions
 
862,127

 
—

 
—

 
—

 
—

 
862,127

Accretion recognized in interest income
 
(17,415
)
 
(25,259
)
 
(4,158
)
 
(11,919
)
 
(9,707
)
 
(68,458
)
Net reclassification (to) from nonaccretable difference(1)
 
—

 
(3,800
)
 
(749
)
 
(322
)
 
4,818

 
(53
)
Balance at end of period
 
$
844,712

 
$
123,940

 
$
29,651

 
$
70,382

 
$
23,188

 
$
1,091,873


(1) 
The net reclassification results from changes in expected cash flows of the acquired loans which may include increases in the amount of contractual principal and interest expected to be collected due to improvement in credit quality, increases in balances outstanding from advances, renewals, extensions and interest rates; as well as reductions in contractual principal and interest expected to be collected due to credit deterioration, payoffs, and decreases in interest rates.
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 credit risk categories at September 30, 2017 and December 31, 2016:
(Dollars in thousands)
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
September 30, 2017
 
 
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
2,170,377

 
$
34,571

 
$
49,504

 
$
992

 
$
2,255,444

Commercial real estate
 
2,405,684

 
20,037

 
45,483

 
1,020

 
2,472,224

Real estate construction and land development
 
421,213

 
337

 
214

 
—

 
421,764

Subtotal
 
4,997,274

 
54,945

 
95,201

 
2,012

 
5,149,432

Acquired Portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
990,101

 
34,169

 
40,251

 
—

 
1,064,521

Commercial real estate
 
1,693,878

 
68,261

 
81,450

 
165

 
1,843,754

Real estate construction and land development
 
75,560

 
2,134

 
1,955

 
—

 
79,649

Subtotal
 
2,759,539

 
104,564

 
123,656

 
165

 
2,987,924

Total
 
$
7,756,813

 
$
159,509

 
$
218,857

 
$
2,177

 
$
8,137,356

December 31, 2016
 
 
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
1,803,750

 
$
44,809

 
$
51,898

 
$
1,069

 
$
1,901,526

Commercial real estate
 
1,849,315

 
36,981

 
35,502

 
1

 
1,921,799

Real estate construction and land development
 
280,968

 
157

 
599

 
—

 
281,724

Subtotal
 
3,934,033

 
81,947

 
87,999

 
1,070

 
4,105,049

Acquired Portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
1,218,848

 
46,643

 
50,283

 
—

 
1,315,774

Commercial real estate
 
1,897,011

 
61,441

 
92,636

 
253

 
2,051,341

Real estate construction and land development
 
117,505

 
1,982

 
2,561

 
—

 
122,048

Subtotal
 
3,233,364

 
110,066

 
145,480

 
253

 
3,489,163

Total
 
$
7,167,397

 
$
192,013

 
$
233,479

 
$
1,323

 
$
7,594,212
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, 2017 and December 31, 2016:
(Dollars in thousands)
 
Residential Mortgage
 
Consumer
Installment
 
Home Equity
 
Total
Consumer
September 30, 2017
 
 
 
 
 
 
 
 
Originated Loans:
 
 
 
 
 
 
 
 
Performing
 
$
1,872,639

 
$
1,501,939

 
$
618,657

 
$
3,993,235

Nonperforming
 
8,646

 
875

 
3,908

 
13,429

Subtotal
 
1,881,285

 
1,502,814

 
622,565

 
4,006,664

Acquired Loans
 
1,340,022

 
113,169

 
236,157

 
1,689,348

Total
 
$
3,221,307

 
$
1,615,983

 
$
858,722

 
$
5,696,012

December 31, 2016
 
 
 
 
 
 
 
 
Originated Loans:
 
 
 
 
 
 
 
 
Performing
 
$
1,468,373

 
$
1,281,709

 
$
592,071

 
$
3,342,153

Nonperforming
 
6,969

 
879

 
3,351

 
11,199

Subtotal
 
1,475,342

 
1,282,588

 
595,422

 
3,353,352

Acquired Loans
 
1,611,132

 
151,296

 
280,787

 
2,043,215

Total
 
$
3,086,474

 
$
1,433,884

 
$
876,209

 
$
5,396,567
Summary of nonperforming loans
A summary of nonperforming loans follows:
(Dollars in thousands)
 
September 30,
2017
 
December 31,
2016
Nonperforming assets
 
 
 
 
Nonaccrual loans:
 
 
 
 
Commercial
 
$
15,648

 
$
13,178

Commercial real estate
 
25,150

 
19,877

Real estate construction and land development
 
78

 
80

Residential mortgage
 
8,646

 
6,969

Consumer installment
 
875

 
879

Home equity
 
3,908

 
3,351

Total nonaccrual loans
 
54,305

 
44,334

Other real estate owned and repossessed assets
 
10,605

 
17,187

Total nonperforming assets
 
$
64,910

 
$
61,521

Accruing loans contractually past due 90 days or more as to interest or principal payments, excluding acquired loans accounted for under ASC 310-30
 
 
 
 
Commercial
 
3,521

 
11

Commercial real estate
 
144

 
277

Home equity
 
2,367

 
995

Total accruing loans contractually past due 90 days or more as to interest or principal payments, excluding acquired loans accounted for under ASC 310-30
 
$
6,032

 
$
1,283
Schedule representing the aging status of the recorded investment in loans by classes
Loan delinquency, excluding acquired loans accounted for under ASC 310-30, was as follows:
(Dollars in thousands)
 
30-59
days
past due
 
60-89
days
past due
 
90 days or more past due
 
Total past due
 
Current
 
Total loans
 
90 days or more past due and still accruing
September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
13,786

 
$
10,449

 
$
11,539

 
$
35,774

 
$
2,219,670

 
$
2,255,444

 
$
3,521

Commercial real estate
 
7,545

 
6,574

 
7,192

 
21,311

 
2,450,913

 
2,472,224

 
144

Real estate construction and land development
 
248

 
—

 
—

 
248

 
421,516

 
421,764

 
—

Residential mortgage
 
4,380

 
22

 
1,756

 
6,158

 
1,875,127

 
1,881,285

 
—

Consumer installment
 
3,393

 
266

 
219

 
3,878

 
1,498,936

 
1,502,814

 
—

Home equity
 
2,469

 
1,297

 
2,690

 
6,456

 
616,109

 
622,565

 
2,367

Total
 
$
31,821

 
$
18,608

 
$
23,396

 
$
73,825

 
$
9,082,271

 
$
9,156,096

 
$
6,032

December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
10,421

 
$
4,842

 
$
3,641

 
$
18,904

 
$
1,882,622

 
$
1,901,526

 
$
11

Commercial real estate
 
6,551

 
1,589

 
5,165

 
13,305

 
1,908,494

 
1,921,799

 
277

Real estate construction and land development
 
2,721

 
499

 
—

 
3,220

 
278,504

 
281,724

 
—

Residential mortgage
 
3,147

 
62

 
1,752

 
4,961

 
1,470,381

 
1,475,342

 
—

Consumer installment
 
3,991

 
675

 
238

 
4,904

 
1,277,684

 
1,282,588

 
—

Home equity
 
3,097

 
893

 
2,349

 
6,339

 
589,083

 
595,422

 
995

Total
 
$
29,928

 
$
8,560

 
$
13,145

 
$
51,633

 
$
7,406,768

 
$
7,458,401

 
$
1,283
Schedule of Impaired loans by classes
The following schedules present impaired loans by classes of loans at September 30, 2017 and December 31, 2016:
(Dollars in thousands)
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Valuation
Allowance
September 30, 2017
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 
 
 
 
 
Commercial
 
$
27,521

 
$
32,626

 
$
1,688

Commercial real estate
 
21,569

 
28,104

 
1,486

Real estate construction and land development
 
181

 
181

 
7

Residential mortgage
 
16,416

 
16,416

 
1,814

Consumer installment
 
1,041

 
1,041

 
99

Home equity
 
4,551

 
4,551

 
620

Subtotal
 
71,279

 
82,919

 
5,714

Impaired loans with no related valuation allowance:
 
 
 
 
 
 
Commercial
 
7,290

 
9,989

 
—

Commercial real estate
 
25,123

 
28,457

 
—

Real estate construction and land development
 
78

 
78

 
—

Residential mortgage
 
4,800

 
4,800

 
—

Home equity
 
1,524

 
1,524

 
—

Subtotal
 
38,815

 
44,848

 
—

Total impaired loans:
 
 
 
 
 
 
Commercial
 
34,811

 
42,615

 
1,688

Commercial real estate
 
46,692

 
56,561

 
1,486

Real estate construction and land development
 
259

 
259

 
7

Residential mortgage
 
21,216

 
21,216

 
1,814

Consumer installment
 
1,041

 
1,041

 
99

Home equity
 
6,075

 
6,075

 
620

Total
 
$
110,094

 
$
127,767

 
$
5,714

December 31, 2016
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 
 
 
 
 
Commercial
 
$
28,925

 
$
33,209

 
$
3,128

Commercial real estate
 
21,318

 
27,558

 
2,102

Real estate construction and land development
 
177

 
177

 
4

Residential mortgage
 
20,864

 
20,864

 
3,528

Consumer installment
 
879

 
879

 
240

Home equity
 
2,577

 
2,577

 
390

Subtotal
 
74,740

 
85,264

 
9,392

Impaired loans with no related valuation allowance:
 
 
 
 
 
 
Commercial
 
7,435

 
11,153

 
—

Commercial real estate
 
20,588

 
23,535

 
—

Real estate construction and land development
 
80

 
80

 
—

Residential mortgage
 
3,252

 
3,252

 
—

Home equity
 
774

 
774

 
—

Subtotal
 
32,129

 
38,794

 
—

Total impaired loans:
 
 
 
 
 
 
Commercial
 
36,360

 
44,362

 
3,128

Commercial real estate
 
41,906

 
51,093

 
2,102

Real estate construction and land development
 
257

 
257

 
4

Residential mortgage
 
24,116

 
24,116

 
3,528

Consumer installment
 
879

 
879

 
240

Home equity
 
3,351

 
3,351

 
390

Total
 
$
106,869

 
$
124,058

 
$
9,392
Schedule presents information related to impaired loans
The following schedule presents additional information regarding impaired loans by classes of loans segregated by those requiring a valuation allowance and those not requiring a valuation allowance for the three and nine months ended September 30, 2017 and 2016, and the respective interest income amounts recognized:
 
 
Three Months Ended September 30, 2017
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2017
 
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
 
Average
recorded
investment
 
Interest income
recognized
while on
impaired status
 
Average
recorded
investment
 
Interest income
recognized
while on
impaired status
Impaired loans with a valuation allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
25,628

 
$
222

 
$
4,350

 
$
—

 
$
25,278

 
$
647

 
$
6,256

 
$
—

Commercial real estate
 
18,300

 
197

 
2,430

 
—

 
19,120

 
602

 
4,461

 
—

Real estate construction and land development
 
175

 
3

 
—

 
—

 
159

 
8

 
—

 
—

Residential mortgage
 
15,945

 
144

 
20,238

 
321

 
16,529

 
446

 
20,725

 
987

Consumer installment
 
748

 
1

 
—

 
—

 
737

 
3

 
—

 
—

Home equity
 
4,369

 
21

 
—

 
—

 
4,154

 
58

 
—

 
—

Subtotal
 
$
65,165

 
$
588

 
$
27,018

 
$
321

 
$
65,977

 
$
1,764

 
$
31,442

 
$
987

Impaired loans with no related valuation allowance:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
10,120

 
$
14

 
$
31,717

 
$
399

 
$
10,142

 
$
92

 
$
31,874

 
$
986

Commercial real estate
 
25,435

 
101

 
41,205

 
285

 
24,697

 
304

 
44,207

 
977

Real estate construction and land development
 
71

 
—

 
385

 
5

 
86

 
—

 
720

 
13

Residential mortgage
 
5,144

 
8

 
5,173

 
—

 
4,511

 
25

 
5,139

 
—

Consumer installment
 
244

 
—

 
340

 
—

 
201

 
—

 
320

 
—

Home equity
 
1,639

 
—

 
2,124

 
—

 
1,227

 
6

 
2,166

 
—

Subtotal
 
$
42,653


$
123


$
80,944


$
689


$
40,864

 
$
427

 
$
84,426

 
$
1,976

Total impaired loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
35,748

 
$
236

 
$
36,067

 
$
399

 
$
35,420

 
$
739

 
$
38,130

 
$
986

Commercial real estate
 
43,735

 
298

 
43,635

 
285

 
43,817

 
906

 
48,668

 
977

Real estate construction and land development
 
246

 
3

 
385

 
5

 
245

 
8

 
720

 
13

Residential mortgage
 
21,089

 
152

 
25,411

 
321

 
21,040

 
471

 
25,864

 
987

Consumer installment
 
992

 
1

 
340

 
—

 
938

 
3

 
320

 
—

Home equity
 
6,008

 
21

 
2,124

 
—

 
5,381

 
64

 
2,166

 
—

Total
 
$
107,818

 
$
711

 
$
107,962


$
1,010


$
106,841

 
$
2,191

 
$
115,868

 
$
2,963
Schedule providing information on TDRs
The following schedule presents the Corporation's TDRs at September 30, 2017 and December 31, 2016:
(Dollars in thousands)
 
Accruing TDRs
 
Nonaccrual TDRs
 
Total
September 30, 2017
 
 
 
 
 
 
Commercial loan portfolio
 
$
40,886

 
$
19,342

 
$
60,228

Consumer loan portfolio
 
14,903

 
4,662

 
19,565

Total
 
$
55,789

 
$
24,004

 
$
79,793

December 31, 2016
 
 
 
 
 
 
Commercial loan portfolio
 
$
45,388

 
$
25,397

 
$
70,785

Consumer loan portfolio
 
17,147

 
5,134

 
22,281

Total
 
$
62,535

 
$
30,531

 
$
93,066


The following tables present the recorded investment of loans modified into TDRs during the three and nine months ended September 30, 2017 and 2016 by type of concession granted. In cases where more than one type of concession was granted, the loans were categorized based on the most significant concession.
 
 
Concession type
 
 
 
 
 
 
(Dollars in thousands)
 
Principal
deferral
 
Interest
rate
 
Forbearance
agreement
 
Total
number
of loans
 
Pre-modification recorded investment
 
Post-modification recorded investment
For the three months ended September 30, 2017
 
 
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
506

 
$
281

 
$
1,332

 
14

 
$
2,173

 
$
2,119

Commercial real estate
 
—

 
69

 
335

 
4

 
418

 
404

Real estate construction and land development
 
35

 
—

 
—

 
1

 
36

 
35

Subtotal
 
541

 
350

 
1,667

 
19

 
2,627

 
2,558

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
76

 
122

 
—

 
3

 
262

 
198

Consumer installment
 
47

 
7

 
—

 
11

 
58

 
54

Home equity
 
116

 
—

 
—

 
5

 
124

 
116

Subtotal
 
239

 
129

 
—

 
19

 
444

 
368

Total loans
 
$
780

 
$
479

 
$
1,667

 
38

 
$
3,071

 
$
2,926

For the nine months ended September 30, 2017
 
 
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
841

 
$
1,648

 
$
1,911

 
26

 
$
4,476

 
$
4,400

Commercial real estate
 
447

 
209

 
457

 
10

 
1,134

 
1,113

Real estate construction and land development
 
35

 
—

 
—

 
1

 
36

 
35

Subtotal
 
1,323

 
1,857

 
2,368

 
37

 
5,646

 
5,548

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
211

 
383

 
—

 
9

 
676

 
594

Consumer installment
 
79

 
7

 
—

 
17

 
93

 
86

Home equity
 
380

 
—

 
—

 
10

 
449

 
380

Subtotal
 
670

 
390

 
—

 
36

 
1,218

 
1,060

Total loans
 
$
1,993

 
$
2,247

 
$
2,368

 
73

 
$
6,864

 
$
6,608

 
 
Concession type
 
 
 
 
 
 
(Dollars in thousands)
 
Principal
deferral
 
Interest
rate
 
Forbearance
agreement
 
Total
number
of loans
 
Pre-modification recorded investment
 
Post-modification recorded investment
For the three months ended September 30, 2016
 
 
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
4,160

 
$
—

 
$
—

 
4

 
$
4,160

 
$
4,160

Subtotal
 
4,160

 
—

 
—

 
4

 
4,160

 
4,160

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
Home equity
 
—

 
89

 
—

 
2

 
89

 
89

Subtotal
 
—

 
89

 
—

 
2

 
89

 
89

Total loans
 
$
4,160

 
$
89

 
$
—

 
6

 
$
4,249

 
$
4,249

For the nine months ended September 30, 2016
 
 
 
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
10,391

 
$
—

 
$
1,750

 
32

 
$
12,141

 
$
12,141

Commercial real estate
 
2,441

 
—

 
—

 
6

 
2,441

 
2,441

Subtotal
 
12,832

 
—

 
1,750

 
38

 
14,582

 
14,582

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
Residential mortgage
 
279

 
—

 
—

 
3

 
279

 
279

Consumer installment
 
80

 
—

 
—

 
12

 
80

 
80

Home equity
 
127

 
297

 
—

 
8

 
424

 
424

Subtotal
 
486

 
297

 
—

 
23

 
783

 
783

Total loans
 
$
13,318

 
$
297

 
$
1,750

 
61

 
$
15,365

 
$
15,365
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, 2017 and 2016, 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:
 
 
For The Three Months Ended September 30, 2017
 
For The Nine Months Ended September 30, 2017
(Dollars in thousands)
 
Number of loans
 
Principal balance
 
Number of loans
 
Principal balance
Commercial loan portfolio (commercial)
 
—

 
$
—

 
5

 
$
1,617

Consumer loan portfolio (residential mortgage)
 
—

 
—

 
5

 
163

Total
 
—

 
$
—

 
10

 
$
1,780

 
 
 
 
 
 
 
 
 
 
 
For The Three Months Ended September 30, 2016
 
For The Nine Months Ended September 30, 2016
(Dollars in thousands)
 
Number of loans
 
Principal balance
 
Number of loans
 
Principal balance
Commercial loan portfolio (commercial real estate)
 
—

 
$
—

 
2

 
$
1,721

Consumer loan portfolio (residential mortgage)
 
1

 
—

 
3

 
—

Total
 
1

 
$
—

 
5

 
$
1,721
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 originated loan portfolio for the three and nine months ended September 30, 2017 and 2016.
(Dollars in thousands)
 
Commercial
Loan
Portfolio
 
Consumer
Loan
Portfolio
 
Total
Originated Loan Portfolio
 
 
 
 
 
 
Changes in allowance for loan losses for the three months ended September 30, 2017:
Beginning balance
 
$
57,955

 
$
25,842

 
$
83,797

Provision for loan losses
 
664

 
4,256

 
4,920

Charge-offs
 
(3,792
)
 
(1,650
)
 
(5,442
)
Recoveries
 
1,270

 
636

 
1,906

Ending balance
 
$
56,097

 
$
29,084

 
$
85,181

Changes in allowance for loan losses for the nine months ended September 30, 2017:
Beginning balance
 
$
51,201

 
$
27,067

 
$
78,268

Provision for loan losses
 
9,140

 
6,060

 
15,200

Charge-offs
 
(7,209
)
 
(6,112
)
 
(13,321
)
Recoveries
 
2,965

 
2,069

 
5,034

Ending balance
 
$
56,097

 
$
29,084

 
$
85,181

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

The following schedule presents, by loan portfolio, the changes in the allowance for the acquired loan portfolio for the three and nine months ended September 30, 2017. There was no allowance established for the acquired loan portfolio prior to the third quarter of 2017.
(Dollars in thousands)
 
Commercial
Loan
Portfolio
 
Consumer
Loan
Portfolio
 
Total
Acquired Loan Portfolio
 
 
 
 
 
 
Changes in allowance for loan losses for the three months ended September 30, 2017:
Beginning balance
 
$
—

 
$
—

 
$
—

Provision for loan losses
 
409

 
170

 
579

Charge-offs
 
—

 
—

 
—

Recoveries
 
—

 
—

 
—

Ending balance
 
$
409

 
$
170

 
$
579

Changes in allowance for loan losses for the nine months ended September 30, 2017:
Beginning balance
 
$
—

 
$
—

 
$
—

Provision for loan losses
 
409

 
170

 
579

Charge-offs
 
—

 
—

 
—

Recoveries
 
—

 
—

 
—

Ending balance
 
$
409

 
$
170

 
$
579

The following schedule presents by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at September 30, 2017 and December 31, 2016 by impairment evaluation method.
Allowance for loan losses balance at September 30, 2017 attributable to:
Loans individually evaluated for impairment
 
$
3,181

 
$
2,533

 
$
5,714

Loans collectively evaluated for impairment
 
52,916

 
26,551

 
79,467

Loans acquired with deteriorated credit quality
 
409

 
170

 
579

Total
 
$
56,506

 
$
29,254

 
$
85,760

Recorded investment (loan balance) at September 30, 2017:
Loans individually evaluated for impairment
 
$
81,762

 
$
28,332

 
$
110,094

Loans collectively evaluated for impairment
 
5,067,670

 
3,978,332

 
9,046,002

Loans acquired with deteriorated credit quality
 
2,987,924

 
1,689,348

 
4,677,272

Total
 
$
8,137,356

 
$
5,696,012

 
$
13,833,368

Allowance for loan losses balance at December 31, 2016 attributable to:
 
 
Loans individually evaluated for impairment
 
$
5,234

 
$
4,158

 
$
9,392

Loans collectively evaluated for impairment
 
45,967

 
22,909

 
68,876

Loans acquired with deteriorated credit quality
 
—

 
—

 
—

Total
 
$
51,201

 
$
27,067

 
$
78,268

Recorded investment (loan balance) at December 31, 2016:
 
 
Loans individually evaluated for impairment
 
$
78,523

 
$
28,346

 
$
106,869

Loans collectively evaluated for impairment
 
4,026,526

 
3,325,006

 
7,351,532

Loans acquired with deteriorated credit quality
 
3,489,163

 
2,043,215

 
5,532,378

Total
 
$
7,594,212

 
$
5,396,567

 
$
12,990,779