Portfolio loans (Tables)

6 Months Ended

Jun. 30, 2019

Portfolio loans

Schedule of distribution of portfolio loans

The distribution of portfolio loans is as follows (dollars in thousands):

	June 30,		December 31,
	2019		2018
Commercial	$	1,668,098	$	1,405,106
Commercial real estate		2,661,905		2,366,823
Real estate construction		429,326		288,197
Retail real estate		1,721,370		1,480,133
Retail other		51,427		28,169
Portfolio loans	$	6,532,126	$	5,568,428
Allowance for loan losses		(51,375)		(50,648)
Portfolio loans, net	$	6,480,751	$	5,517,780

Summary of risk grades segregated by category of portfolio loans (excluding accretable purchase accounting adjustments and clearings)

The following table is a summary of risk grades segregated by category of portfolio loans (excluding accretable purchase accounting adjustments and clearings) (dollars in thousands):

	June 30, 2019
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual
Commercial	$	1,378,041	$	188,282	$	48,181	$	45,599	$	10,647
Commercial real estate		2,367,741		178,859		85,837		29,926		12,780
Real estate construction		394,416		34,348		450		1,273		826
Retail real estate		1,674,105		16,038		6,317		9,235		8,529
Retail other		51,848		99		—		—		34
Total	$	5,866,151	$	417,626	$	140,785	$	86,033	$	32,816

	December 31, 2018
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual
Commercial	$	1,126,257	$	172,449	$	47,000	$	42,532	$	17,953
Commercial real estate		2,106,711		137,214		85,148		36,205		10,298
Real estate construction		268,069		14,562		3,899		1,888		18
Retail real estate		1,448,964		6,425		6,792		5,435		6,698
Retail other		26,707		—		—		—		30
Total	$	4,976,708	$	330,650	$	142,839	$	86,060	$	34,997

Summary of portfolio loans that are past due and still accruing or on a non-accrual status

An analysis of portfolio loans that are past due and still accruing or on a non-accrual status is as follows (dollars in thousands):

	June 30, 2019
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	2,745	$	593	$	—	$	10,647
Commercial real estate		4,519		608		38		12,780
Real estate construction		103		107		—		826
Retail real estate		8,140		987		220		8,529
Retail other		216		22		—		34
Total	$	15,723	$	2,317	$	258	$	32,816

	December 31, 2018
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	158	$	140	$	775	$	17,953
Commercial real estate		148		558		—		10,298
Real estate construction		121		—		58		18
Retail real estate		4,578		1,368		766		6,698
Retail other		48		2		2		30
Total	$	5,053	$	2,068	$	1,601	$	34,997

Summary of restructured loans

A summary of troubled debt restructurings (“TDR”) loans is as follows (dollars in thousands):

	June 30,		December 31,
	2019		2018
In compliance with modified terms	$	8,288	$	8,319
30 — 89 days past due		321		127
Included in non-performing loans		3,503		392
Total	$	12,112	$	8,838

Schedule of details of impaired loans, segregated by category

	June 30, 2019
	Unpaid		Recorded
	Contractual		Investment		Recorded		Total				Average
	Principal		with No		Investment		Recorded		Related		Recorded
	Balance		Allowance		with Allowance		Investment		Allowance		Investment
Commercial	$	16,668	$	7,511	$	3,856	$	11,367	$	2,358	$	15,425
Commercial real estate		19,784		10,498		7,686		18,184		1,367		17,730
Real estate construction		1,329		1,186		—		1,186		—		656
Retail real estate		15,322		13,367		474		13,841		474		13,685
Retail other		62		34		—		34		—		39
Total	$	53,165	$	32,596	$	12,016	$	44,612	$	4,199	$	47,535

	December 31, 2018
	Unpaid		Recorded
	Contractual		Investment		Recorded		Total				Average
	Principal		with No		Investment		Recorded		Related		Recorded
	Balance		Allowance		with Allowance		Investment		Allowance		Investment
Commercial	$	21,442	$	6,858	$	12,001	$	18,859	$	4,319	$	13,364
Commercial real estate		19,079		13,082		4,498		17,580		1,181		18,077
Real estate construction		478		453		—		453		—		712
Retail real estate		14,418		13,196		61		13,257		61		14,110
Retail other		117		33		—		33		—		40
Total	$	55,534	$	33,622	$	16,560	$	50,182	$	5,561	$	46,303

Schedule of activity on the allowance for loan losses

The following table details activity in the allowance for loan losses. Allocation of a portion of the allowance to one category does not preclude its availability to absorb losses in other categories (dollars in thousands):

	As of and for the Three Months Ended June 30, 2019
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	17,998	$	20,097	$	2,807	$	9,503	$	510	$	50,915
Provision for loan losses		1,161		(97)		411		941		101		2,517
Charged-off		(2,563)		—		—		(200)		(178)		(2,941)
Recoveries		137		188		87		369		103		884
Ending balance	$	16,733	$	20,188	$	3,305	$	10,613	$	536	$	51,375
	As of and for the Six Months Ended June 30, 2019
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	17,829	$	21,137	$	2,723	$	8,471	$	488	$	50,648
Provision for loan losses		2,954		(1,186)		413		2,298		149		4,628
Charged-off		(4,370)		(15)		—		(717)		(308)		(5,410)
Recoveries		320		252		169		561		207		1,509
Ending balance	$	16,733	$	20,188	$	3,305	$	10,613	$	536	$	51,375

	As of and for the Three Months Ended June 30, 2018
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	17,577	$	22,090	$	2,799	$	9,836	$	347	$	52,649
Provision for loan losses		1,720		909		35		(548)		142		2,258
Charged-off		(1,916)		(110)		—		(412)		(115)		(2,553)
Recoveries		205		158		81		417		90		951
Ending balance	$	17,586	$	23,047	$	2,915	$	9,293	$	464	$	53,305
	As of and for the Six Months Ended June 30, 2018
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	14,779	$	21,813	$	2,861	$	13,783	$	346	$	53,582
Provision for loan losses		4,723		2,445		37		(4,210)		271		3,266
Charged-off		(2,697)		(1,425)		(97)		(942)		(322)		(5,483)
Recoveries		781		214		114		662		169		1,940
Ending balance	$	17,586	$	23,047	$	2,915	$	9,293	$	464	$	53,305

Schedule of allowance for loan losses and recorded investments in portfolio loans, by category

The following table presents the allowance for loan losses and recorded investments in portfolio loans by category (dollars in thousands):

	As of June 30, 2019
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Allowance for loan losses
Ending balance attributed to:
Loans individually evaluated for impairment	$	2,358	$	1,367	$	—	$	474	$	—	$	4,199
Loans collectively evaluated for impairment		14,375		18,821		3,305		10,139		536		47,176
Ending balance	$	16,733	$	20,188	$	3,305	$	10,613	$	536	$	51,375
Loans:
Loans individually evaluated for impairment	$	11,336	$	15,723	$	751	$	12,668	$	34	$	40,512
Loans collectively evaluated for impairment		1,656,731		2,643,721		428,140		1,707,529		51,393		6,487,514
PCI loans evaluated for impairment		31		2,461		435		1,173		—		4,100
Ending balance	$	1,668,098	$	2,661,905	$	429,326	$	1,721,370	$	51,427	$	6,532,126

	As of December 31, 2018
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Allowance for loan losses
Ending balance attributed to:
Loans individually evaluated for impairment	$	4,319	$	1,181	$	—	$	61	$	—	$	5,561
Loans collectively evaluated for impairment		13,510		19,956		2,723		8,410		488		45,087
Ending balance	$	17,829	$	21,137	$	2,723	$	8,471	$	488	$	50,648
Loans:
Loans individually evaluated for impairment	$	18,441	$	15,318	$	453	$	13,159	$	33	$	47,404
Loans collectively evaluated for impairment		1,386,247		2,349,243		287,744		1,466,876		28,136		5,518,246
PCI loans evaluated for impairment		418		2,262		—		98		—		2,778
Ending balance	$	1,405,106	$	2,366,823	$	288,197	$	1,480,133	$	28,169	$	5,568,428