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Loans (Tables)
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Summary of loans under portfolio
A summary of the Corporation's loans follows:
(Dollars in thousands)
 
Originated
 
Acquired(1)
 
Total loans
December 31, 2018
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
Commercial
 
$
3,287,087

 
$
715,481

 
$
4,002,568

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
1,513,532

 
546,025

 
2,059,557

Non-owner occupied
 
1,966,330

 
818,690

 
2,785,020

Vacant land
 
40,295

 
27,215

 
67,510

Total commercial real estate
 
3,520,157

 
1,391,930

 
4,912,087

Real estate construction and land development
 
566,726

 
30,486

 
597,212

Subtotal
 
7,373,970


2,137,897


9,511,867

Consumer loan portfolio:
 
 
 
 
 
 
Residential mortgage
 
2,407,305

 
1,051,361

 
3,458,666

Consumer installment
 
1,451,352

 
69,722

 
1,521,074

Home equity
 
612,129

 
166,043

 
778,172

Subtotal
 
4,470,786

 
1,287,126

 
5,757,912

Total loans(2)
 
$
11,844,756

 
$
3,425,023

 
$
15,269,779

December 31, 2017
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
Commercial
 
$
2,407,606

 
$
978,036

 
$
3,385,642

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
1,185,614

 
627,948

 
1,813,562

Non-owner occupied
 
1,518,787

 
1,087,974

 
2,606,761

Vacant land
 
47,024

 
33,323

 
80,347

Total commercial real estate
 
2,751,425


1,749,245

 
4,500,670

Real estate construction and land development
 
498,155

 
76,060

 
574,215

Subtotal
 
5,657,186

 
2,803,341

 
8,460,527

Consumer loan portfolio:
 
 
 
 
 
 
Residential mortgage
 
1,967,857

 
1,284,630

 
3,252,487

Consumer installment
 
1,510,540

 
102,468

 
1,613,008

Home equity
 
611,846

 
217,399

 
829,245

Subtotal
 
4,090,243

 
1,604,497

 
5,694,740

Total loans(2)
 
$
9,747,429

 
$
4,407,838

 
$
14,155,267


(1)
Loans acquired in the Talmer, Lake Michigan, Monarch, Northwestern and OAK acquisitions were elected to be accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality (ASC 310-30), by analogy. See Note 1, Summary of Significant Accounting Policies for further information.
(2)
Reported net of deferred costs totaling $19.7 million and $26.1 million at December 31, 2018 and 2017, respectively.
Schedule of activity for accretable yield
Activity for the accretable yield, which includes contractually due expected cash flows 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
Year Ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
731,353

 
$
95,124

 
$
22,496

 
$
60,814

 
$
17,110

 
$
926,897

Accretion recognized in interest income
 
(164,614
)
 
(24,722
)
 
(3,881
)
 
(17,988
)
 
(10,214
)
 
(221,419
)
Net reclassification (to) from nonaccretable difference(1)(2)
 
(61,407
)
 
2,730

 
(783
)
 
(1,371
)
 
2,678

 
(58,153
)
Balance at end of period
 
$
505,332

 
$
73,132

 
$
17,832

 
$
41,455

 
$
9,574

 
$
647,325

Year Ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Balance at beginning of period
 
$
798,210

 
$
121,416

 
$
27,182

 
$
69,847

 
$
23,316

 
$
1,039,971

Accretion recognized in interest income
 
(175,678
)
 
(29,077
)
 
(4,533
)
 
(20,318
)
 
(12,563
)
 
(242,169
)
Net reclassification (to) from nonaccretable difference(1)
 
108,821

 
2,785

 
(153
)
 
11,285

 
6,357

 
129,095

Balance at end of period
 
$
731,353

 
$
95,124

 
$
22,496

 
$
60,814

 
$
17,110

 
$
926,897

Year Ended December 31, 2016
 
 
 
 
Balance at beginning of period
 
$
—

 
$
152,999

 
$
34,558

 
$
82,623

 
$
28,077

 
$
298,257

Addition attributable to acquisitions
 
862,127

 
—

 
—

 
—

 
—

 
862,127

Accretion recognized in interest income
 
(63,917
)
 
(33,031
)
 
(5,468
)
 
(15,791
)
 
(13,352
)
 
(131,559
)
Net reclassification (to) from nonaccretable difference(1)
 
—

 
1,448

 
(1,908
)
 
3,015

 
8,591

 
11,146

Balance at end of period
 
$
798,210

 
$
121,416

 
$
27,182

 
$
69,847

 
$
23,316

 
$
1,039,971

(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.
(2)
The 2018 net reclassification from accretable to nonaccretable difference in the Talmer portfolio was primarily the result of unexpected prepayments and payoffs.
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 December 31, 2018 and 2017:
(Dollars in thousands)
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
Total
December 31, 2018
 
 
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
3,118,894

 
$
87,222

 
$
77,036

 
$
3,935

 
$
3,287,087

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
1,430,948

 
32,056

 
50,286

 
242

 
1,513,532

Non-owner occupied
 
1,901,822

 
39,416

 
25,092

 
—

 
1,966,330

Vacant land
 
36,499

 
—

 
3,741

 
55

 
40,295

Total commercial real estate
 
3,369,269

 
71,472

 
79,119

 
297

 
3,520,157

Real estate construction and land development
 
557,040

 
6,108

 
3,578

 
—

 
566,726

Subtotal
 
7,045,203

 
164,802

 
159,733

 
4,232

 
7,373,970

Acquired Portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
655,883

 
36,809

 
22,773

 
16

 
715,481

Commercial real estate:
 
 
 
 
 
 
 
 
 


Owner-occupied
 
500,072

 
28,909

 
17,033

 
11

 
546,025

Non-owner occupied
 
740,900

 
52,546

 
25,244

 
—

 
818,690

Vacant land
 
26,978

 
237

 
—

 
—

 
27,215

Total commercial real estate
 
1,267,950

 
81,692

 
42,277

 
11

 
1,391,930

Real estate construction and land development
 
29,248

 
97

 
1,141

 
—

 
30,486

Subtotal
 
1,953,081

 
118,598

 
66,191

 
27

 
2,137,897

Total
 
$
8,998,284

 
$
283,400

 
$
225,924

 
$
4,259

 
$
9,511,867

December 31, 2017
 
 
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
2,316,464

 
$
41,059

 
$
50,083

 
$
—

 
$
2,407,606

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
1,133,609

 
19,438

 
32,567

 
—

 
1,185,614

Non-owner occupied
 
1,504,195

 
4,728

 
9,864

 
—

 
1,518,787

Vacant land
 
39,775

 
38

 
7,211

 
—

 
47,024

Total commercial real estate
 
2,677,579

 
24,204

 
49,642

 
—

 
2,751,425

Real estate construction and land development
 
494,528

 
837

 
2,790

 
—

 
498,155

Subtotal
 
5,488,571

 
66,100

 
102,515

 
—

 
5,657,186

Acquired Portfolio:
 
 
 
 
 
 
 
 
 
 
Commercial
 
873,861

 
68,418

 
35,539

 
218

 
978,036

Commercial real estate:
 
 
 
 
 
 
 
 
 


Owner-occupied
 
580,127

 
23,998

 
23,036

 
787

 
627,948

Non-owner occupied
 
995,709

 
43,645

 
48,620

 
—

 
1,087,974

Vacant land
 
27,849

 
327

 
5,147

 
—

 
33,323

Total commercial real estate
 
1,603,685

 
67,970

 
76,803

 
787

 
1,749,245

Real estate construction and land development
 
72,346

 
2,218

 
1,496

 
—

 
76,060

Subtotal
 
2,549,892

 
138,606

 
113,838

 
1,005

 
2,803,341

Total
 
$
8,038,463

 
$
204,706

 
$
216,353

 
$
1,005

 
$
8,460,527
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 December 31, 2018 and 2017:
(Dollars in thousands)
 
Residential mortgage
 
Consumer
installment
 
Home equity
 
Total consumer
December 31, 2018
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
Performing
 
$
2,399,317

 
$
1,450,076

 
$
608,525

 
$
4,457,918

Nonperforming
 
7,988

 
1,276

 
3,604

 
12,868

Subtotal
 
2,407,305

 
1,451,352

 
612,129

 
4,470,786

Acquired Loans
 
1,051,361

 
69,722

 
166,043

 
1,287,126

Total
 
$
3,458,666

 
$
1,521,074

 
$
778,172

 
$
5,757,912

December 31, 2017
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
Performing
 
$
1,959,222

 
$
1,509,698

 
$
607,541

 
$
4,076,461

Nonperforming
 
8,635

 
842

 
4,305

 
13,782

Subtotal
 
1,967,857

 
1,510,540

 
611,846

 
4,090,243

Acquired Loans
 
1,284,630

 
102,468

 
217,399

 
1,604,497

Total
 
$
3,252,487

 
$
1,613,008

 
$
829,245

 
$
5,694,740
Summary of nonperforming loans
A summary of nonperforming assets follows:
 
 
December 31,
(Dollars in thousands)
 
2018
 
2017
Nonperforming assets
 
 
 
 
Nonaccrual loans:
 
 
 
 
Commercial
 
$
30,139

 
$
19,691

Commercial real estate:
 
 
 
 
Owner-occupied
 
16,056

 
19,070

Non-owner occupied
 
23,021

 
5,270

Vacant land
 
3,337

 
5,205

Total commercial real estate
 
42,414

 
29,545

Real estate construction and land development
 
12

 
77

Residential mortgage
 
7,988

 
8,635

Consumer installment
 
1,276

 
842

Home equity
 
3,604

 
4,305

Total nonaccrual loans
 
85,433

 
63,095

Other real estate owned and repossessed assets
 
6,256

 
8,807

Total nonperforming assets
 
$
91,689

 
$
71,902

 
 
 
 
 
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:
 
 
Loans Past Due and Still Accruing
 
 
 
 
 
 
(Dollars in thousands)
 
30-89
days
past due
 
90 days or more past due
 
Total past due
 
Nonaccrual Loans
 
Current
 
Total loans
December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
16,835

 
$
—

 
$
16,835

 
$
30,139

 
$
3,240,113

 
$
3,287,087

Commercial real estate:
 
 
 
 
 


 
 
 
 
 


Owner-occupied
 
4,657

 
52

 
4,709

 
16,056

 
1,492,767

 
1,513,532

Non-owner occupied
 
1,793

 
887

 
2,680

 
23,021

 
1,940,629

 
1,966,330

Vacant land
 
160

 
—

 
160

 
3,337

 
36,798

 
40,295

Total commercial real estate
 
6,610

 
939

 
7,549

 
42,414

 
3,470,194

 
3,520,157

Real estate construction and land development
 
247

 
—

 
247

 
12

 
566,467

 
566,726

Residential mortgage
 
1,688

 
—

 
1,688

 
7,988

 
2,397,629

 
2,407,305

Consumer installment
 
4,731

 
—

 
4,731

 
1,276

 
1,445,345

 
1,451,352

Home equity
 
3,843

 
488

 
4,331

 
3,604

 
604,194

 
612,129

Total
 
$
33,954

 
$
1,427

 
$
35,381

 
$
85,433

 
$
11,723,942

 
$
11,844,756

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
Originated Portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
16,269

 
$
—

 
$
16,269

 
$
19,691

 
$
2,371,646

 
$
2,407,606

Commercial real estate:
 
 
 
—

 


 
 
 
 
 


Owner-occupied
 
4,078

 
—

 
4,078

 
19,070

 
1,162,466

 
1,185,614

Non-owner occupied
 
1,595

 
13

 
1,608

 
5,270

 
1,511,909

 
1,518,787

Vacant land
 
83

 
—

 
83

 
5,205

 
41,736

 
47,024

Total commercial real estate
 
5,756

 
13

 
5,769

 
29,545

 
2,716,111

 
2,751,425

Real estate construction and land development
 
—

 
—

 
—

 
77

 
498,078

 
498,155

Residential mortgage
 
2,325

 
—

 
2,325

 
8,635

 
1,956,897

 
1,967,857

Consumer installment
 
3,663

 
—

 
3,663

 
842

 
1,506,035

 
1,510,540

Home equity
 
2,891

 
1,364

 
4,255

 
4,305

 
603,286

 
611,846

Total
 
$
30,904

 
$
1,377

 
$
32,281

 
$
63,095

 
$
9,652,053

 
$
9,747,429
Schedule of Impaired loans by classes
The following schedules present impaired loans by classes of loans at December 31, 2018 and December 31, 2017:
(Dollars in thousands)
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
valuation
allowance
December 31, 2018
 
 
 
 
 
 
Impaired loans with a valuation allowance:
 
 
 
 
 
 
Commercial
 
$
20,957

 
$
23,781

 
$
3,546

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
14,702

 
16,519

 
1,359

Non-owner occupied
 
16,833

 
17,452

 
462

Vacant land
 
1,008

 
1,208

 
96

Total commercial real estate
 
32,543

 
35,179

 
1,917

Real estate construction and land development
 
126

 
126

 
11

Residential mortgage
 
10,867

 
10,867

 
816

Consumer installment
 
1,126

 
1,126

 
186

Home equity
 
4,432

 
4,432

 
328

Subtotal
 
70,051

 
75,511

 
6,804

Impaired loans with no related valuation allowance:
 
 
 
 
 
 
Commercial
 
25,093

 
25,934

 
—

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
10,971

 
11,601

 
—

Non-owner occupied
 
12,412

 
13,411

 
—

Vacant land
 
2,825

 
3,911

 
—

Total commercial real estate
 
26,208

 
28,923

 
—

Real estate construction and land development
 
111

 
111

 
—

Residential mortgage
 
7,537

 
7,537

 
—

Consumer installment
 
377

 
377

 
—

Home equity
 
1,496

 
1,496

 
—

Subtotal
 
60,822

 
64,378

 
—

Total impaired loans:
 
 
 
 
 
 
Commercial
 
46,050

 
49,715

 
3,546

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
25,673

 
28,120

 
1,359

Non-owner occupied
 
29,245

 
30,863

 
462

Vacant land
 
3,833

 
5,119

 
96

Total commercial real estate
 
58,751

 
64,102

 
1,917

Real estate construction and land development
 
237

 
237

 
11

Residential mortgage
 
18,404

 
18,404

 
816

Consumer installment
 
1,503

 
1,503

 
186

Home equity
 
5,928

 
5,928

 
328

Total
 
$
130,873

 
$
139,889

 
$
6,804

    
(Dollars in thousands)
 
Recorded
investment
 
Unpaid
principal
balance
 
Related
valuation
allowance
December 31, 2017
 
 
Impaired loans with a valuation allowance:
 
 
 
 
 
 
Commercial
 
$
28,897

 
$
31,655

 
$
2,296

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
17,774

 
21,588

 
2,317

Non-owner occupied
 
5,307

 
7,870

 
316

Vacant land
 
4,922

 
5,122

 
594

Total commercial real estate
 
28,003

 
34,580

 
3,227

Real estate construction and land development
 
313

 
313

 
14

Residential mortgage
 
15,872

 
15,872

 
1,487

Consumer installment
 
966

 
966

 
120

Home equity
 
4,570

 
4,570

 
858

Subtotal
 
78,621

 
87,956

 
8,002

Impaired loans with no related valuation allowance:
 
 
 
 
 
 
Commercial
 
8,504

 
9,291

 
—

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
11,351

 
12,631

 
—

Non-owner occupied
 
5,977

 
6,438

 
—

Vacant land
 
752

 
792

 
—

Total commercial real estate
 
18,080

 
19,861

 
—

Residential mortgage
 
4,902

 
4,902

 
—

Home equity
 
1,770

 
1,770

 
—

Subtotal
 
33,256

 
35,824

 
—

Total impaired loans:
 
 
 
 
 
 
Commercial
 
37,401

 
40,946

 
2,296

Commercial real estate:
 
 
 
 
 
 
Owner-occupied
 
29,125

 
34,219

 
2,317

Non-owner occupied
 
11,284

 
14,308

 
316

Vacant land
 
5,674

 
5,914

 
594

Total commercial real estate
 
46,083

 
54,441

 
3,227

Real estate construction and land development
 
313

 
313

 
14

Residential mortgage
 
20,774

 
20,774

 
1,487

Consumer installment
 
966

 
966

 
120

Home equity
 
6,340

 
6,340

 
858

Total
 
$
111,877

 
$
123,780

 
$
8,002

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 at December 31, 2018, 2017 and 2016 and the respective interest income amounts recognized:
 
 
For the years ended December 31,
 
 
2018
 
2017
 
2016
(Dollars in thousands)
 
Average annual recorded investment
 
Interest income recognized while on impaired status
 
Average annual recorded investment
 
Interest income recognized while on impaired status
 
Average annual recorded investment
 
Interest income recognized while on impaired status
Impaired loans with a valuation allowance:
 
 
 
 
 
 
 
 
 
 
Commercial
 
$
17,683

 
$
457

 
$
25,099

 
$
939

 
$
7,829

 
$
—

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
13,103

 
352

 
14,143

 
531

 
3,694

 
583

Non-owner occupied
 
6,440

 
48

 
3,274

 
89

 
1,711

 
139

Vacant land
 
1,881

 
47

 
2,566

 
57

 
253

 
113

Total commercial real estate
 
21,424

 
447

 
19,983

 
677

 
5,658

 
835

Real estate construction and land development
 
4,619

 
8

 
175

 
10

 
19

 
—

Residential mortgage
 
12,179

 
457

 
16,390

 
538

 
23,958

 
1,285

Consumer installment
 
989

 
8

 
744

 
4

 
359

 
—

Home equity
 
3,262

 
80

 
4,201

 
82

 
1,759

 
—

Subtotal
 
60,156

 
1,457

 
66,592

 
2,250

 
39,582

 
2,120

Impaired loans with no related valuation allowance:
 
 
 
 
 
 
 
 
Commercial
 
21,954

 
577

 
10,196

 
28

 
29,559

 
1,343

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
13,807

 
296

 
11,999

 
—

 
20,306

 
17

Non-owner occupied
 
10,681

 
263

 
9,143

 
241

 
14,306

 
339

Vacant land
 
2,730

 
—

 
3,516

 
4

 
7,034

 
45

Total commercial real estate
 
27,218

 
559

 
24,658

 
245

 
41,646

 
401

Real estate construction and land development
 
1,520

 
7

 
78

 
—

 
585

 
22

Residential mortgage
 
7,594

 
110

 
4,622

 
38

 
1,519

 
—

Consumer installment
 
304

 
—

 
205

 
—

 
—

 
—

Home equity
 
2,217

 
25

 
1,392

 
14

 
555

 
—

Subtotal
 
60,807

 
1,278

 
41,151

 
325

 
73,864

 
1,766

Total impaired loans:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
39,637

 
1,034

 
35,295

 
967

 
37,388

 
1,343

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
 
26,910

 
648

 
26,142

 
531

 
24,000

 
600

Non-owner occupied
 
17,121

 
311

 
12,417

 
330

 
16,017

 
478

Vacant land
 
4,611

 
47

 
6,082

 
61

 
7,287

 
158

Total commercial real estate
 
48,642

 
1,006

 
44,641

 
922

 
47,304

 
1,236

Real estate construction and land development
 
6,139

 
15

 
253

 
10

 
604

 
22

Residential mortgage
 
19,773

 
567

 
21,012

 
576

 
25,477

 
1,285

Consumer installment
 
1,293

 
8

 
949

 
4

 
359

 
—

Home equity
 
5,479

 
105

 
5,593

 
96

 
2,314

 
—

Total
 
$
120,963

 
$
2,735

 
$
107,743

 
$
2,575

 
$
113,446

 
$
3,886
Schedule providing information on performing and nonperforming TDRs
The following tables present the recorded investment of loans modified into TDRs during the years ended December 31, 2018, 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
 
Principal
reduction
 
Interest
rate
 
Forbearance
agreement
 
Total
number
of loans
 
Pre-
modification
recorded
investment
 
Post-
modification
recorded
investment
For the year ended December 31, 2018
 
 
 
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
4,967

 
$
—

 
$
4,129

 
$
1,438

 
67

 
$
10,566

 
$
10,534

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
981

 
—

 
2,945

 
953

 
19

 
5,018

 
4,879

Non-owner occupied
68

 
66

 
—

 
—

 
2

 
143

 
134

Total commercial real estate
1,049

 
66

 
2,945

 
953

 
21

 
5,161

 
5,013

Subtotal
6,016

 
66


7,074


2,391


88


15,727


15,547

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
269

 
151

 
147

 
—

 
9

 
577

 
567

Consumer installment
192

 
168

 
113

 
—

 
47

 
492

 
473

Home equity
469

 
73

 
453

 
—

 
25

 
1,076

 
995

Subtotal
930

 
392

 
713

 
—

 
81

 
2,145

 
2,035

Total loans
$
6,946

 
$
458

 
$
7,787

 
$
2,391

 
169

 
$
17,872

 
$
17,582

 
Concession type
 
 
 
 
(Dollars in thousands)
Principal
deferral
 
Principal
reduction
 
Interest
rate
 
Forbearance
agreement
 
Total
number
of loans
 
Pre-
modification
recorded
investment
 
Post-
modification
recorded
investment
For the year ended December 31, 2017
 
 
 
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
2,308

 
$
—

 
$
1,827

 
$
2,176

 
36

 
$
6,416

 
$
6,311

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
512

 
—

 
311

 
582

 
13

 
1,468

 
1,405

Non-owner occupied
194

 
—

 
27

 
371

 
3

 
629

 
592

Total commercial real estate
706

 
—

 
338

 
953

 
16

 
2,097

 
1,997

Real estate construction and land development
35

 
—

 
—

 
—

 
1

 
36

 
35

Subtotal
3,049

 
—


2,165


3,129


53


8,549


8,343

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
297

 
—

 
383

 
—

 
11

 
763

 
680

Consumer installment
118

 
37

 
37

 
—

 
34

 
208

 
192

Home equity
389

 
—

 
52

 
—

 
14

 
537

 
441

Subtotal
804

 
37

 
472

 
—

 
59

 
1,508

 
1,313

Total loans
$
3,853

 
$
37

 
$
2,637

 
$
3,129

 
112

 
$
10,057

 
$
9,656

 
Concession type
 
 
 
 
(Dollars in thousands)
Principal
deferral
 
Principal
reduction
 
A/B Note Restructure(1)
 
Interest
rate
 
Forbearance
agreement
 
Total
number
of loans
 
Pre-
modification
recorded
investment
 
Post-
modification
recorded
investment
For the year ended December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
$
11,533

 
$
1,527

 
$
43

 
$
—

 
$
1,750

 
54

 
$
14,853

 
$
14,853

Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied
2,508

 
1,866

 
—

 
—

 
—

 
13

 
4,374

 
4,374

Non-owner occupied
485

 
—

 
—

 
—

 
—

 
3

 
485

 
485

Total commercial real estate
2,993

 
1,866

 
—

 
—

 
—

 
16

 
4,859

 
4,859

Subtotal
14,526

 
3,393


43


—


1,750


70


19,712


19,712

Consumer loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
477

 
—

 
—

 
—

 
—

 
4

 
477

 
477

Consumer installment
87

 
—

 
—

 
—

 
—

 
14

 
87

 
87

Home equity
179

 
—

 
—

 
364

 
—

 
10

 
543

 
543

Subtotal
743

 
—

 
—

 
364

 
—

 
28

 
1,107

 
1,107

Total loans
$
15,269

 
$
3,393

 
$
43

 
$
364

 
$
1,750

 
98

 
$
20,819

 
$
20,819

(1) 
Loan restructurings whereby the original loan is restructured into two notes: an "A" note, which generally reflects the portion of the modified loans which is expected to be collected: and a "B" note, which is fully charged off.
Schedule of Corporation's TDRs
The following schedule presents the Corporation's TDRs at December 31, 2018 and 2017:
(Dollars in thousands)
 
Accruing
 TDRs
 
Nonaccrual TDRs
 
Total
December 31, 2018
 
 
 
 
 
 
Commercial loan portfolio
 
$
32,508

 
$
24,343

 
$
56,851

Consumer loan portfolio
 
13,072

 
3,732

 
16,804

Total
 
$
45,580

 
$
28,075

 
$
73,655

December 31, 2017
 
 
 
 
 
 
Commercial loan portfolio
 
$
34,484

 
$
24,358

 
$
58,842

Consumer loan portfolio
 
14,298

 
4,748

 
19,046

Total
 
$
48,782

 
$
29,106

 
$
77,888
Troubled debt restructurings on financing receivables with defaults payment
The following schedule includes TDRs for which there was a payment default during the years ended December 31, 2018, 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 years ended December 31,
 
 
2018
 
2017
 
2016
 
 
Number of loans
 
Principal balance at year end
 
Number of loans
 
Principal balance at year end
 
Number of loans
 
Principal balance at year end
(Dollars in thousands)
 
 
 
 
 
 
Commercial loan portfolio:
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
6
 
$
700

 
5
 
$
1,617

 
—
 
$
—

Commercial real estate
 
3
 
508

 
—
 
—

 
2
 
1,721

Commercial loan portfolio
 
9
 
$
1,208

 
5
 
$
1,617

 
2
 
$
1,721

Consumer loan portfolio (residential mortgage)
 
18
 
413

 
17
 
434

 
14
 
259

Total
 
27
 
$
1,621

 
22
 
$
2,051

 
16
 
$
1,980
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 years ended December 31, 2018, 2017 and 2016.
(Dollars in thousands)
 
Commercial
loan
portfolio
 
Consumer
loan
portfolio
 
Total
Originated Loan Portfolio
 
 
 
 
 
 
Changes in allowance for loan losses for the year ended December 31, 2018:
 
 
Beginning balance
 
$
66,133

 
$
25,754

 
$
91,887

Provision for loan losses
 
22,656

 
7,674

 
30,330

Charge-offs
 
(9,563
)
 
(8,901
)
 
(18,464
)
Recoveries
 
3,533

 
2,278

 
5,811

Ending balance
 
$
82,759

 
$
26,805

 
$
109,564

Changes in allowance for loan losses for the year ended December 31, 2017:
 
 
Beginning balance
 
$
51,201

 
$
27,067

 
$
78,268

Provision for loan losses
 
19,007

 
4,293

 
23,300

Charge-offs
 
(8,570
)
 
(8,297
)
 
(16,867
)
Recoveries
 
4,495

 
2,691

 
7,186

Ending balance
 
$
66,133

 
$
25,754

 
$
91,887

Changes in allowance for loan losses for the year ended December 31, 2016:
 
 
Beginning balance
 
$
47,234

 
$
26,094

 
$
73,328

Provision for loan losses
 
9,788

 
5,087

 
14,875

Charge-offs
 
(8,906
)
 
(6,396
)
 
(15,302
)
Recoveries
 
3,085

 
2,282

 
5,367

Ending balance
 
$
51,201

 
$
27,067

 
$
78,268


The following schedule presents, by loan portfolio segment, the changes in the allowance for the acquired loan portfolio for the year ended December 31, 2018. There was no allowance established for the acquired loan portfolio for the years ended December 31, 2017 and 2016.
(Dollars in thousands)
 
Commercial
loan
portfolio
 
Consumer
loan
portfolio
 
Total
Acquired Loan Portfolio
 
 
 
 
 
 
Changes in allowance for loan losses for the year ended December 31, 2018:
 
 
Beginning balance
 
$
—

 
$
—

 
$
—

Provision for loan losses
 
420

 
—

 
420

Charge-offs
 
—

 
—

 
—

Recoveries
 
—

 
—

 
—

Ending balance
 
$
420

 
$
—

 
$
420

The following schedule presents by loan portfolio segment, details regarding the balance in the allowance and the recorded investment in loans at December 31, 2018 and 2017 by impairment evaluation method.
(Dollars in thousands)
 
Commercial
Loan
Portfolio
 
Consumer
Loan
Portfolio
 
Total
Allowance for loan losses balance at December 31, 2018 attributable to:
Loans individually evaluated for impairment
 
$
5,474

 
$
1,330

 
$
6,804

Loans collectively evaluated for impairment
 
77,285

 
25,475

 
102,760

Loans accounted for under ASC 310-30
 
420

 
—

 
420

Total
 
$
83,179

 
$
26,805

 
$
109,984

Recorded investment (loan balance) at December 31, 2018:
Loans individually evaluated for impairment
 
$
105,038

 
$
25,835

 
$
130,873

Loans collectively evaluated for impairment
 
7,268,932

 
4,444,951

 
11,713,883

Loans accounted for under ASC 310-30
 
2,137,897

 
1,287,126

 
3,425,023

Total
 
$
9,511,867

 
$
5,757,912

 
$
15,269,779

Allowance for loan losses balance at December 31, 2017 attributable to:
 
 
Loans individually evaluated for impairment
 
$
5,537

 
$
2,465

 
$
8,002

Loans collectively evaluated for impairment
 
60,596

 
23,289

 
83,885

Loans accounted for under ASC 310-30
 
—

 
—

 
—

Total
 
$
66,133

 
$
25,754

 
$
91,887

Recorded investment (loan balance) at December 31, 2017:
 
 
Loans individually evaluated for impairment
 
$
83,797

 
$
28,080

 
$
111,877

Loans collectively evaluated for impairment
 
5,573,389

 
4,062,163

 
9,635,552

Loans accounted for under ASC 310-30
 
2,803,341

 
1,604,497

 
4,407,838

Total
 
$
8,460,527

 
$
5,694,740

 
$
14,155,267