LOANS AND LEASES (Tables)

9 Months Ended

Sep. 30, 2018

Summary of Loans and Leases, Net of Unearned Income

Following is a summary of loans and leases, net of unearned income:

TABLE 5.1



(in thousands)	Originated Loans and Leases		Acquired Loans		Total Loans and Leases
September 30, 2018
Commercial real estate	$	5,978,629	$	2,867,111	$	8,845,740
Commercial and industrial	3,892,822		470,635		4,363,457
Commercial leases	346,579		—		346,579
Other	34,732		—		34,732
Total commercial loans and leases	10,252,762		3,337,746		13,590,508
Direct installment	1,670,964		107,159		1,778,123
Residential mortgages	2,457,380		527,282		2,984,662
Indirect installment	1,880,487		162		1,880,649
Consumer lines of credit	1,116,376		489,085		1,605,461
Total consumer loans	7,125,207		1,123,688		8,248,895
Total loans and leases, net of unearned income	$	17,377,969	$	4,461,434	$	21,839,403
December 31, 2017
Commercial real estate	$	5,174,783	$	3,567,081	$	8,741,864
Commercial and industrial	3,495,247		675,420		4,170,667
Commercial leases	266,720		—		266,720
Other	17,063		—		17,063
Total commercial loans and leases	8,953,813		4,242,501		13,196,314
Direct installment	1,755,713		149,822		1,905,535
Residential mortgages	2,036,226		666,465		2,702,691
Indirect installment	1,448,268		165		1,448,433
Consumer lines of credit	1,151,470		594,323		1,745,793
Total consumer loans	6,391,677		1,410,775		7,802,452
Total loans and leases, net of unearned income	$	15,345,490	$	5,653,276	$	20,998,766

Certain Information Relating to Commercial Real Estate Loans

The following table shows certain information relating to commercial real estate loans:

TABLE 5.2



(dollars in thousands)	September 30, 2018			December 31, 2017
Commercial construction, acquisition and development loans	$	1,146,612		$	1,170,175
Percent of total loans and leases	5.3		%	5.6		%
Commercial real estate:
Percent owner-occupied	34.7		%	35.3		%
Percent non-owner-occupied	65.3		%	64.7		%

Summary of Outstanding Principal Balance and Carrying Amount of Acquired Loans

The outstanding balance and the carrying amount of acquired loans included in the Consolidated Balance Sheets are as follows:

TABLE 5.3



(in thousands)	September 30, 2018		December 31, 2017
Accounted for under ASC 310-30:
Outstanding balance	$	4,110,019	$	5,176,015
Carrying amount	3,830,823		4,834,256
Accounted for under ASC 310-20:
Outstanding balance	644,077		835,130
Carrying amount	626,041		812,322
Total acquired loans:
Outstanding balance	4,754,096		6,011,145
Carrying amount	4,456,864		5,646,578

Summary of Change in Accretable Yield of Acquired Loans

The following table provides changes in accretable yield for all acquired loans accounted for under ASC 310-30. Loans accounted for under ASC 310-20 are not included in this table.

TABLE 5.4



	Nine Months Ended September 30,
(in thousands)	2018			2017
Balance at beginning of period	$	708,481		$	467,070
Acquisitions	—			444,715
Reduction due to unexpected early payoffs	(117,469		)	(90,097		)
Reclass from non-accretable difference	184,545			163,714
Disposals/transfers	(444		)	(341		)
Other	(412		)	1,129
Accretion	(169,605		)	(164,219		)
Balance at end of period	$	605,096		$	821,971

Summary of Non-Performing Assets

Following is a summary of non-performing assets:

TABLE 5.5



(dollars in thousands)	September 30, 2018			December 31, 2017
Non-accrual loans	$	79,899		$	74,635
Troubled debt restructurings	22,322			23,481
Total non-performing loans	102,221			98,116
Other real estate owned	35,685			40,606
Total non-performing assets	$	137,906		$	138,722
Asset quality ratios:
Non-performing loans / total loans and leases	0.47		%	0.47		%
Non-performing loans + OREO / total loans and leases + OREO	0.63		%	0.66		%
Non-performing assets / total assets	0.42		%	0.44		%

Age Analysis of Past Due Loans, by Class

The following tables provide an analysis of the aging of loans by class segregated by loans and leases originated and loans acquired:

TABLE 5.6



(in thousands)	30-89 Days Past Due		> 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due (4)		Current		Total Loans and Leases
Originated Loans and Leases
September 30, 2018
Commercial real estate	$	12,978	$	2	$	18,243	$	31,223	$	5,947,406	$	5,978,629
Commercial and industrial	7,069		3		27,323		34,395		3,858,427		3,892,822
Commercial leases	712		—		5,526		6,238		340,341		346,579
Other	80		141		1,000		1,221		33,511		34,732
Total commercial loans and leases	20,839		146		52,092		73,077		10,179,685		10,252,762
Direct installment	7,779		663		7,888		16,330		1,654,634		1,670,964
Residential mortgages	19,274		1,754		6,110		27,138		2,430,242		2,457,380
Indirect installment	8,889		505		2,263		11,657		1,868,830		1,880,487
Consumer lines of credit	5,039		904		3,583		9,526		1,106,850		1,116,376
Total consumer loans	40,981		3,826		19,844		64,651		7,060,556		7,125,207
Total originated loans and leases	$	61,820	$	3,972	$	71,936	$	137,728	$	17,240,241	$	17,377,969
December 31, 2017
Commercial real estate	$	8,273	$	1	$	24,773	$	33,047	$	5,141,736	$	5,174,783
Commercial and industrial	8,948		3		17,077		26,028		3,469,219		3,495,247
Commercial leases	1,382		41		1,574		2,997		263,723		266,720
Other	83		153		1,000		1,236		15,827		17,063
Total commercial loans and leases	18,686		198		44,424		63,308		8,890,505		8,953,813
Direct installment	13,192		4,466		8,896		26,554		1,729,159		1,755,713
Residential mortgages	14,096		2,832		5,771		22,699		2,013,527		2,036,226
Indirect installment	10,313		611		2,240		13,164		1,435,104		1,448,268
Consumer lines of credit	5,859		1,014		2,313		9,186		1,142,284		1,151,470
Total consumer loans	43,460		8,923		19,220		71,603		6,320,074		6,391,677
Total originated loans and leases	$	62,146	$	9,121	$	63,644	$	134,911	$	15,210,579	$	15,345,490



(in thousands)	30-89 Days Past Due		> 90 Days Past Due and Still Accruing		Non- Accrual		Total Past Due (1) (2) (3)		Current		(Discount) Premium			Total Loans
Acquired Loans
September 30, 2018
Commercial real estate	$	33,024	$	48,044	$	3,030	$	84,098	$	2,956,931	$	(173,918	)	$	2,867,111
Commercial and industrial	1,704		2,801		4,252		8,757		492,430		(30,552		)	470,635
Total commercial loans	34,728		50,845		7,282		92,855		3,449,361		(204,470		)	3,337,746
Direct installment	4,168		1,798		—		5,966		101,669		(476		)	107,159
Residential mortgages	15,237		6,428		—		21,665		522,844		(17,227		)	527,282
Indirect installment	—		1		—		1		—		161			162
Consumer lines of credit	6,699		2,244		681		9,624		490,358		(10,897		)	489,085
Total consumer loans	26,104		10,471		681		37,256		1,114,871		(28,439		)	1,123,688
Total acquired loans	$	60,832	$	61,316	$	7,963	$	130,111	$	4,564,232	$	(232,909	)	$	4,461,434
December 31, 2017
Commercial real estate	$	34,928	$	63,092	$	3,975	$	101,995	$	3,657,152	$	(192,066	)	$	3,567,081
Commercial and industrial	3,187		6,452		5,663		15,302		698,265		(38,147		)	675,420
Total commercial loans	38,115		69,544		9,638		117,297		4,355,417		(230,213		)	4,242,501
Direct installment	5,267		2,013		—		7,280		141,386		1,156			149,822
Residential mortgages	17,191		15,139		—		32,330		675,499		(41,364		)	666,465
Indirect installment	—		1		—		1		10		154			165
Consumer lines of credit	6,353		3,253		1,353		10,959		596,298		(12,934		)	594,323
Total consumer loans	28,811		20,406		1,353		50,570		1,413,193		(52,988		)	1,410,775
Total acquired loans	$	66,926	$	89,950	$	10,991	$	167,867	$	5,768,610	$	(283,201	)	$	5,653,276


(1)	Past due information for acquired loans is based on the contractual balance outstanding at September 30, 2018 and December 31, 2017.

(2)

Acquired loans are considered performing upon acquisition, regardless of whether the customer is contractually delinquent, if we can reasonably estimate the timing and amount of expected cash flows on such loans. In these instances, we do not consider acquired contractually delinquent loans to be non-accrual or non-performing and continue to recognize interest income on these loans using the accretion method. Acquired loans are considered non-accrual or non-performing when, due to credit deterioration or other factors, we determine we are no longer able to reasonably estimate the timing and amount of expected cash flows on such loans. We do not recognize interest income on acquired loans considered non-accrual or non-performing.


(3)	Approximately $28.5 million of acquired past-due or non-accrual loans were sold during the second quarter of 2018.


(4)	Approximately $14.7 million of originated past-due or non-accrual loans were sold during the second quarter of 2018.

Summary of Commercial Loans by Credit Quality

The following tables present a summary of our commercial loans and leases by credit quality category, segregated by loans and leases originated and loans acquired:

TABLE 5.8



	Commercial Loan and Lease Credit Quality Categories
(in thousands)	Pass		Special Mention		Substandard		Doubtful		Total
Originated Loans and Leases
September 30, 2018
Commercial real estate	$	5,716,992	$	144,800	$	116,793	$	44	$	5,978,629
Commercial and industrial	3,626,199		187,032		74,879		4,712		3,892,822
Commercial leases	335,439		1,623		9,517		—		346,579
Other	33,481		110		1,141		—		34,732
Total originated commercial loans and leases	$	9,712,111	$	333,565	$	202,330	$	4,756	$	10,252,762
December 31, 2017
Commercial real estate	$	4,922,872	$	152,744	$	98,728	$	439	$	5,174,783
Commercial and industrial	3,266,966		132,975		92,091		3,215		3,495,247
Commercial leases	260,235		4,425		2,060		—		266,720
Other	15,866		43		1,154		—		17,063
Total originated commercial loans and leases	$	8,465,939	$	290,187	$	194,033	$	3,654	$	8,953,813
Acquired Loans
September 30, 2018
Commercial real estate	$	2,481,679	$	181,813	$	203,448	$	171	$	2,867,111
Commercial and industrial	408,326		20,605		41,704		—		470,635
Total acquired commercial loans	$	2,890,005	$	202,418	$	245,152	$	171	$	3,337,746
December 31, 2017
Commercial real estate	$	3,102,788	$	250,987	$	213,089	$	217	$	3,567,081
Commercial and industrial	603,611		26,059		45,661		89		675,420
Total acquired commercial loans	$	3,706,399	$	277,046	$	258,750	$	306	$	4,242,501

Summary of Consumer Loans by Payment Status

Following is a table showing consumer loans by payment status:

TABLE 5.9



	Consumer Loan Credit Quality by Payment Status
(in thousands)	Performing		Non- Performing		Total
Originated loans
September 30, 2018
Direct installment	$	1,656,375	$	14,589	$	1,670,964
Residential mortgages	2,441,374		16,006		2,457,380
Indirect installment	1,878,224		2,263		1,880,487
Consumer lines of credit	1,111,004		5,372		1,116,376
Total originated consumer loans	$	7,086,977	$	38,230	$	7,125,207
December 31, 2017
Direct installment	$	1,739,060	$	16,653	$	1,755,713
Residential mortgages	2,019,816		16,410		2,036,226
Indirect installment	1,445,833		2,435		1,448,268
Consumer lines of credit	1,147,576		3,894		1,151,470
Total originated consumer loans	$	6,352,285	$	39,392	$	6,391,677
Acquired loans
September 30, 2018
Direct installment	$	107,091	$	68	$	107,159
Residential mortgages	527,282		—		527,282
Indirect installment	162		—		162
Consumer lines of credit	487,823		1,262		489,085
Total acquired consumer loans	$	1,122,358	$	1,330	$	1,123,688
December 31, 2017
Direct installment	$	149,751	$	71	$	149,822
Residential mortgages	666,465		—		666,465
Indirect installment	165		—		165
Consumer lines of credit	592,384		1,939		594,323
Total acquired consumer loans	$	1,408,765	$	2,010	$	1,410,775

Summary of Impaired Loans and Leases, by Class

Following is a summary of information pertaining to originated loans and leases considered to be impaired, by class of loan and lease:

TABLE 5.10



(in thousands)	Unpaid Contractual Principal Balance		Recorded Investment With No Specific Reserve		Recorded Investment With Specific Reserve		Total Recorded Investment		Specific Reserve		Average Recorded Investment
At or for the Nine Months Ended September 30, 2018
Commercial real estate	$	20,051	$	17,576	$	635	$	18,211	$	44	$	16,360
Commercial and industrial	31,219		19,533		8,272		27,805		4,712		27,096
Commercial leases	5,526		5,526		—		5,526		—		3,372
Total commercial loans and leases	56,796		42,635		8,907		51,542		4,756		46,828
Direct installment	17,554		14,589		—		14,589		—		15,191
Residential mortgages	17,316		16,006		—		16,006		—		16,887
Indirect installment	4,576		2,263		—		2,263		—		2,208
Consumer lines of credit	7,330		5,372		—		5,372		—		5,172
Total consumer loans	46,776		38,230		—		38,230		—		39,458
Total	$	103,572	$	80,865	$	8,907	$	89,772	$	4,756	$	86,286
At or for the Year Ended December 31, 2017
Commercial real estate	$	27,718	$	21,748	$	2,906	$	24,654	$	439	$	24,413
Commercial and industrial	29,307		11,595		4,457		16,052		3,215		23,907
Commercial leases	1,574		1,574		—		1,574		—		1,386
Total commercial loans and leases	58,599		34,917		7,363		42,280		3,654		49,706
Direct installment	19,375		16,653		—		16,653		—		16,852
Residential mortgages	17,754		16,410		—		16,410		—		15,984
Indirect installment	5,709		2,435		—		2,435		—		2,279
Consumer lines of credit	5,039		3,894		—		3,894		—		3,815
Total consumer loans	47,877		39,392		—		39,392		—		38,930
Total	$	106,476	$	74,309	$	7,363	$	81,672	$	3,654	$	88,636

Additional Allowance for Credit Losses Relating to Acquired Loans

Following is a summary of the allowance for credit losses required for acquired loans due to changes in credit quality subsequent to the acquisition date:

TABLE 5.11



(in thousands)	September 30, 2018			December 31, 2017
Commercial real estate	$	2,440		$	4,976
Commercial and industrial	639			(415		)
Total commercial loans	3,079			4,561
Direct installment	967			1,553
Residential mortgages	520			484
Indirect installment	226			177
Consumer lines of credit	(222		)	(77		)
Total consumer loans	1,491			2,137
Total allowance on acquired loans	$	4,570		$	6,698

Summary of the composition of total TDRs

Following is a summary of the composition of total TDRs:

TABLE 5.12



(in thousands)	Originated		Acquired		Total
September 30, 2018
Accruing:
Performing	$	16,963	$	67	$	17,030
Non-performing	19,060		3,262		22,322
Non-accrual	8,621		91		8,712
Total TDRs	$	44,644	$	3,420	$	48,064
December 31, 2017
Accruing:
Performing	$	19,538	$	266	$	19,804
Non-performing	20,173		3,308		23,481
Non-accrual	10,472		234		10,706
Total TDRs	$	50,183	$	3,808	$	53,991

Reserve for Commercial TDRs Included in Allowance for Credit Losses

The reserve for commercial TDRs included in the allowance for credit losses is presented in the following table:

TABLE 5.13



(in thousands)	September 30, 2018		December 31, 2017
Specific reserves for commercial TDRs	$	—	$	95
Pooled reserves for individual commercial loans	551		469

Summary of Troubled Debt Restructurings by Class of Loans

Following is a summary of TDR loans, by class:

TABLE 5.14



	Three Months Ended September 30, 2018					Nine Months Ended September 30, 2018
(dollars in thousands)	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate	3	$	507	$	494	4	$	656	$	614
Commercial and industrial	1	15		—		12	662		633
Total commercial loans	4	522		494		16	1,318		1,247
Direct installment	15	650		638		65	3,215		2,941
Residential mortgages	4	283		279		13	898		854
Indirect installment	—	—		—		—	—		—
Consumer lines of credit	11	540		549		25	1,199		1,004
Total consumer loans	30	1,473		1,466		103	5,312		4,799
Total	34	$	1,995	$	1,960	119	$	6,630	$	6,046



	Three Months Ended September 30, 2017					Nine Months Ended September 30, 2017
(dollars in thousands)	Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment		Number of Contracts	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Commercial real estate	—	$	—	$	—	2	$	595	$	560
Commercial and industrial	1	15		10		3	3,568		4,169
Total commercial loans	1	15		10		5	4,163		4,729
Direct installment	141	1,037		919		474	4,014		3,580
Residential mortgages	14	946		952		30	1,539		1,446
Indirect installment	3	5		4		12	36		32
Consumer lines of credit	9	77		50		51	1,080		901
Total consumer loans	167	2,065		1,925		567	6,669		5,959
Total	168	$	2,080	$	1,935	572	$	10,832	$	10,688

Summary of Originated Troubled Debt Restructurings by Class of Loans and Leases, Payment Default

Following is a summary of originated TDRs, by class, for which there was a payment default, excluding loans that were either charged-off or cured by period end. Default occurs when a loan is 90 days or more past due and is within 12 months of restructuring.

TABLE 5.15



	Three Months Ended September 30, 2018			Nine Months Ended September 30, 2018
(dollars in thousands)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Commercial real estate	3	$	1,078	3	$	1,078
Commercial and industrial	2	16		1	9
Total commercial loans	5	1,094		4	1,087
Direct installment	3	$	274	5	$	332
Residential mortgages	2	108		4	224
Indirect installment	—	—		—	—
Consumer lines of credit	—	—		3	252
Total consumer loans	5	382		12	808
Total	10	$	1,476	16	$	1,895



	Three Months Ended September 30, 2017			Nine Months Ended September 30, 2017
(dollars in thousands)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Commercial real estate	1	$	463	1	$	463
Commercial and industrial	—	—		3	326
Total commercial loans	1	463		4	789
Direct installment	39	265		91	278
Residential mortgages	1	80		4	264
Indirect installment	4	22		12	22
Consumer lines of credit	3	26		4	89
Total consumer loans	47	393		111	653
Total	48	$	856	115	$	1,442