Portfolio loans (Tables)

9 Months Ended

Sep. 30, 2019

Portfolio loans

Schedule of distribution of portfolio loans

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

	September 30,		December 31,
	2019		2018
Commercial	$	1,680,491	$	1,405,106
Commercial real estate		2,793,380		2,366,823
Real estate construction		426,559		288,197
Retail real estate		1,717,555		1,480,133
Retail other		51,430		28,169
Portfolio loans	$	6,669,415	$	5,568,428
Allowance for loan losses		(52,965)		(50,648)
Portfolio loans, net	$	6,616,450	$	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):

	September 30, 2019
					Special				Substandard
	Pass		Watch		Mention		Substandard		Non-accrual
Commercial	$	1,393,420	$	167,439	$	63,516	$	47,765	$	10,708
Commercial real estate		2,474,248		189,443		91,689		38,018		11,852
Real estate construction		397,377		24,050		5,151		1,130		611
Retail real estate		1,670,187		14,231		7,565		7,963		8,591
Retail other		51,752		79		—		13		65
Total	$	5,986,984	$	395,242	$	167,921	$	94,889	$	31,827

	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):

	September 30, 2019
	Loans past due, still accruing						Non-accrual
	30-59 Days		60-89 Days		90+Days		Loans
Commercial	$	464	$	584	$	698	$	10,708
Commercial real estate		474		3,040		222		11,852
Real estate construction		229		198		—		611
Retail real estate		4,119		3,252		354		8,591
Retail other		66		8		2		65
Total	$	5,352	$	7,082	$	1,276	$	31,827

	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):

	September 30,		December 31,
	2019		2018
In compliance with modified terms	$	8,778	$	8,319
30 — 89 days past due		—		127
Included in non-performing loans		3,557		392
Total	$	12,335	$	8,838

Schedule of details of impaired loans, segregated by category

	September 30, 2019
	Unpaid		Recorded
	Contractual		Investment		Recorded		Total				Average
	Principal		with No		Investment		Recorded		Related		Recorded
	Balance		Allowance		with Allowance		Investment		Allowance		Investment
Commercial	$	16,593	$	9,237	$	3,262	$	12,499	$	2,671	$	16,070
Commercial real estate		19,011		8,566		8,823		17,389		2,497		18,104
Real estate construction		1,071		929		—		929		—		759
Retail real estate		14,869		13,141		474		13,615		474		13,569
Retail other		98		67		—		67		—		37
Total	$	51,642	$	31,940	$	12,559	$	44,499	$	5,642	$	48,539

	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 September 30, 2019
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	16,733	$	20,188	$	3,305	$	10,613	$	536	$	51,375
Provision for loan losses		463		3,167		(359)		(86)		226		3,411
Charged-off		(817)		(1,168)		—		(226)		(288)		(2,499)
Recoveries		147		33		164		221		113		678
Ending balance	$	16,526	$	22,220	$	3,110	$	10,522	$	587	$	52,965
	As of and for the Nine Months Ended September 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		3,417		1,981		54		2,212		375		8,039
Charged-off		(5,187)		(1,183)		—		(943)		(596)		(7,909)
Recoveries		467		285		333		782		320		2,187
Ending balance	$	16,526	$	22,220	$	3,110	$	10,522	$	587	$	52,965

	As of and for the Three Months Ended September 30, 2018
			Commercial		Real Estate		Retail Real
	Commercial		Real Estate		Construction		Estate		Retail Other		Total
Beginning balance	$	17,586	$	23,047	$	2,915	$	9,293	$	464	$	53,305
Provision for loan losses		2,388		(1,291)		(15)		(399)		75		758
Charged-off		(1,144)		(62)		—		(695)		(286)		(2,187)
Recoveries		136		58		32		423		218		867
Ending balance	$	18,966	$	21,752	$	2,932	$	8,622	$	471	$	52,743
	As of and for the Nine Months Ended September 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		7,111		1,154		22		(4,609)		346		4,024
Charged-off		(3,841)		(1,487)		(97)		(1,637)		(608)		(7,670)
Recoveries		917		272		146		1,085		387		2,807
Ending balance	$	18,966	$	21,752	$	2,932	$	8,622	$	471	$	52,743

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 September 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	$	2,671	$	2,497	$	—	$	474	$	—	$	5,642
Loans collectively evaluated for impairment		13,855		19,723		3,110		10,048		587		47,323
Ending balance	$	16,526	$	22,220	$	3,110	$	10,522	$	587	$	52,965
Loans:
Loans individually evaluated for impairment	$	12,481	$	14,954	$	494	$	12,693	$	67	$	40,689
Loans collectively evaluated for impairment		1,667,992		2,775,991		425,630		1,703,940		51,363		6,624,916
PCI loans evaluated for impairment		18		2,435		435		922		—		3,810
Ending balance	$	1,680,491	$	2,793,380	$	426,559	$	1,717,555	$	51,430	$	6,669,415

	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