Loans and the Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2018

Receivables [Abstract]

Loans held for sale [Table Text Block]

The following table sets forth the composition of the Company’s loans held-for-sale portfolio at March 31, 2018 and December 31, 2017:

	March 31,		December 31,
	2018		2017
	(dollars in thousands)
Commercial real estate	$	45,598	$	24,475
Residential real estate		288		370
Total carrying amount	$	45,886	$	24,845

Activity in the valuation allowance [Table Text Block]

The following table sets forth the composition of the Company’s valuation allowance within the loans held-for-sale portfolio during the three months ended March 31, 2018 and March 31, 2017:

	Three Months		Three Months
	Ended		Ended
	March 31,		March 31,
	2018		2017
	(dollars in thousands)
Balance at January 1,	$	-	$	-
Residential real estate		-		2,600
Balance at March 31,	$	-	$	2,600

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The following table sets forth the composition of the Company’s loan portfolio, including net deferred loan fees, at March 31, 2018 and December 31, 2017:

	March 31,			December 31,
	2018			2017
	(dollars in thousands)
Commercial	$	811,859		$	824,082
Commercial real estate		2,632,965			2,592,909
Commercial construction		479,190			483,216
Residential real estate		278,985			271,795
Consumer		2,461			2,808
Gross loans		4,205,460			4,174,810
Net deferred loan fees		(2,781	)		(3,354	)
Total loans receivable	$	4,202,679		$	4,171,456

Loans and Leases Receivable Purchase Credit Impaired Loans [Table Text Block]

The Company holds purchased loans for which there was, at their acquisition date, evidence of deterioration of credit quality since their origination and it was probable, at acquisition, that all contractually required payments would not be collected. The recorded investment of those loans is as follows at March 31, 2018 and December 31, 2017.

	March 31,		December 31,
	2018		2017
	(dollars in thousands)
Commercial	$	2,644	$	2,683

Loans and Leases Receivable Purchased Loans [Table Text Block]

The following table presents the accretable yield, or income expected to be collected, on the purchased credit-impaired loans for three months ended March 31, 2018 and March 31, 2017:

	Three Months			Three Months
	Ended			Ended
	March 31,			March 31,
	2018			2017
	(dollars in thousands)
Balance at beginning of period	$	1,387		$	2,860
Accretion of income		(65	)		(186	)
Balance at end of period	$	1,322		$	2,674

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

The following table sets forth the composition of the Company’s nonaccrual loans as of March 31, 2018 and December 31, 2017:

	March 31,		December 31,
	2018		2017
	(dollars in thousands)
Commercial	$	29,883	$	47,363
Commercial real estate		15,428		12,757
Residential real estate		4,725		5,493
Total carrying amount	$	50,036	$	65,613

Financing Receivable Credit Quality Indicators [Table Text Block]

Credit Quality Indicators - The following table presents information, excluding loans held-for-sale and net deferred loan fees, about the Company’s loan credit quality at March 31, 2018 and December 31, 2017:

	March 31, 2018
			Special
	Pass		Mention		Substandard		Doubtful		Total
	(dollars in thousands)
Commercial	$	764,418	$	13,278	$	34,163	$	-	$	811,859
Commercial real estate		2,586,173		12,350		34,442		-		2,632,965
Commercial construction		470,386		4,646		4,158		-		479,190
Residential real estate		274,123		-		4,862		-		278,985
Consumer		2,426		-		35		-		2,461
Gross loans	$	4,097,526	$	30,274	$	77,660	$	-	$	4,205,460
	December 31, 2017
			Special
	Pass		Mention		Substandard		Doubtful		Total
	(dollars in thousands)
Commercial	$	767,020	$	3,764	$	53,298	$	-	$	824,082
Commercial real estate		2,534,973		34,335		23,601		-		2,592,909
Commercial construction		475,066		5,521		2,629		-		483,216
Residential real estate		266,163		-		5,632		-		271,795
Consumer		2,767		-		41		-		2,808
Gross loans	$	4,045,989	$	43,620	$	85,201	$	-	$	4,174,810

Impaired Financing Receivables [Table Text Block]

The following table provides an analysis of the impaired loans by segment as of March 31, 2018 and December 31, 2017:

	March 31, 2018
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(dollars in thousands)
Commercial	$	32,100	$	92,584
Commercial real estate		34,911		35,008
Commercial construction		6,134		6,134
Residential real estate		2,603		2,857
Consumer		-		-
Total	$	75,748	$	136,583
With an allowance recorded
Commercial real estate	$	1,124	$	1,124	$	32
Commercial construction		2,669		2,669		115
Total (including allowance)	$	3,793	$	3,793	$	147
Total
Commercial	$	32,100	$	92,584	$	-
Commercial real estate		36,035		36,132		32
Commercial construction		8,803		8,803		115
Residential real estate		2,603		2,857		-
Consumer		-		-		-
Total (including allowance)	$	79,541	$	140,376	$	147
	December 31, 2017
			Unpaid
	Recorded		Principal		Related
	Investment		Balance		Allowance
No related allowance recorded	(dollars in thousands)
Commercial	$	49,761	$	101,066
Commercial real estate		23,905		23,976
Commercial construction		6,662		6,662
Residential real estate		3,203		3,442
Consumer		-		-
Total	$	83,531	$	135,146
With an allowance recorded
Commercial real estate	$	1,133	$	1,133	$	39
Total
Commercial	$	49,761	$	101,066	$	-
Commercial real estate		25,038		25,109		39
Commercial construction		6,662		6,662		-
Residential real estate		3,203		3,442		-
Consumer		-		-		-
Total (including allowance)	$	84,664	$	136,279	$	39

Schedule of Average Balance and Interest Income Recognized on Impaired Loans [Table Text Block]

The following table provides an analysis related to the average recorded investment and interest income recognized on impaired loans by segment as of and for the three months ended March 31, 2018 and 2017:

	Three Months Ended March 31,
	2018				2017
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance recorded
Commercial	$	45,607	$	31	$	2,884	$	39
Commercial real estate		35,010		243		16,450		106
Commercial construction		6,083		77		4,269		50
Residential real estate		2,613		-		986		2
Consumer		-		-		59		1
Total	$	89,313	$	351	$	24,648	$	198
Impaired loans with an allowance recorded
Commercial real estate	$	1,129	$	12	$	-	$	-
Commercial construction		2,649		42		783		5
Total	$	3,778	$	54	$	783	$	5
Total impaired loans
Commercial	$	45,607	$	31	$	2,884	$	39
Commercial real estate		36,139		255		17,233		111
Commercial construction		8,732		119		4,269		50
Residential real estate		2,613		-		986		2
Consumer		-		-		59		1
Total	$	93,091	$	405	$	25,431	$	203

Past Due Financing Receivables [Table Text Block]

The following table provides an analysis of the aging of gross loans (excluding loans held-for-sale) that are past due at March 31, 2018 and December 31, 2017 by segment:

Aging Analysis

	March 31, 2018
					90 Days or
					Greater Past				Total Past
	30-59 Days		60-89 Days		Due and Still				Due and
	Past Due		Past Due		Accruing		Nonaccrual		Nonaccrual		Current		Gross Loans
	(dollars in thousands)
Commercial	$	70	$	122	$	428	$	29,883	$	30,503	$	781,356	$	811,859
Commercial real estate		2,237		403		-		15,428		18,068		2,614,897		2,632,965
Commercial construction		-		-		-		-		-		479,190		479,190
Residential real estate		2,257		-		-		4,725		6,982		272,003		278,985
Consumer		19		-		-		-		19		2,442		2,461
Total	$	4,583	$	525	$	428	$	50,036	$	55,572	$	4,149,888	$	4,205,460
	December 31, 2017
					90 Days or
					Greater Past				Total Past
	30-59 Days		60-89 Days		Due and Still				Due and
	Past Due		Past Due		Accruing		Nonaccrual		Nonaccrual		Current		Gross Loans
	(dollars in thousands)
Commercial	$	1,708	$	183	$	1,664	$	47,363	$	50,918	$	773,164	$	824,082
Commercial real estate		545		1,475		-		12,757		14,777		2,578,132		2,592,909
Commercial construction		-		-		-		-		-		483,216		483,216
Residential real estate		1,578		-		-		5,493		7,071		264,724		271,795
Consumer		18		-		-		-		18		2,790		2,808
Total	$	3,849	$	1,658	$	1,664	$	65,613	$	72,784	$	4,102,026	$	4,174,810

Schedule of Recorded Investment in Financing Receivables [Table Text Block]

The following tables detail, at the period-end presented, the amount of gross loans (excluding loans held-for-sale) that are evaluated individually, and collectively, for impairment, those acquired with deteriorated credit quality, and the related portion of the allowance for loan losses (“ALLL”) that are allocated to each loan portfolio segment:

	March 31, 2018
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(dollars in thousands)
ALLL
Individually evaluated for impairment	$	-	$	32	$	115	$	-	$	-	$	-	$	147
Collectively evaluated for impairment		8,350		15,903		4,657		1,109		2		661		30,682
Acquired portfolio		200		1,500		-		-		-		-		1,700
Acquired with deteriorated credit quality		-		-		-		-		-		-		-
Total ALLL	$	8,550	$	17,435	$	4,772	$	1,109	$	2	$	661	$	32,529
Gross loans
Individually evaluated for impairment	$	32,100	$	36,035	$	8,803	$	2,603	$	-			$	79,541
Collectively evaluated for impairment		765,024		2,258,103		470,387		222,920		2,038				3,718,472
Acquired portfolio		12,091		338,827		-		53,462		423				404,803
Acquired with deteriorated credit quality		2,644		-		-		-		-				2,644
Total gross loans	$	811,859	$	2,632,965	$	479,190	$	278,985	$	2,461			$	4,205,460
	December 31, 2017
			Commercial		Commercial		Residential
	Commercial		real estate		construction		real estate		Consumer		Unallocated		Total
	(dollars in thousands)
Allowance for loan losses
Individually evaluated for impairment	$	-	$	39	$	-	$	-	$	-	$	-	$	39
Collectively evaluated for impairment		8,032		15,472		4,747		1,051		2		605		29,909
Acquired portfolio		200		1,600		-		-		-		-		1,800
Acquired with deteriorated credit quality		-		-		-		-		-		-		-
Total	$	8,232	$	17,111	$	4,747	$	1,051	$	2	$	605	$	31,748
Gross loans
Individually evaluated for impairment	$	49,761	$	25,038	$	6,662	$	3,203	$	-			$	84,664
Collectively evaluated for impairment		757,923		2,190,686		476,554		212,350		2,338				3,639,851
Acquired portfolio		13,715		377,185		-		56,242		470				447,612
Acquired with deteriorated credit quality		2,683		-		-		-		-				2,683
Total	$	824,082	$	2,592,909	$	483,216	$	271,795	$	2,808			$	4,174,810

Allowance for Credit Losses on Financing Receivables [Table Text Block]

A summary of the activity in the ALLL is as follows:

	Three Months Ended March 31, 2018
				Commercial		Commercial		Residential
	Commercial			real estate		construction		real estate			Consumer		Unallocated		Total
	(dollars in thousands)
Balance at December 31, 2017	$	8,233		$	17,112	$	4,747	$	1,050		$	1	$	605	$	31,748
Charge-offs		(17,020	)		-		-		(18	)		-		-		(17,038	)
Recoveries		19			-		-		-			-		-		19
Provision for loan losses		17,318			323		25		77			1		56		17,800
Balance at March 31, 2018	$	8,550		$	17,435	$	4,772	$	1,109		$	2	$	661	$	32,529

	Three Months Ended March 31, 2017
				Commercial			Commercial			Residential
	Commercial			real estate			construction			real estate		Consumer			Unallocated			Total
	(dollars in thousands)
Balance at December 31, 2016	$	6,632		$	12,583		$	4,789		$	958	$	3		$	779		$	25,744
Charge-offs		-			(71	)		-			-		(1	)		-			(72	)
Recoveries		126			3			-			-		-			-			129
Provision		(91	)		1,603			(215	)		50		1			(248	)		1,100
Balance at March 31, 2017	$	6,667		$	14,118		$	4,574		$	1,008	$	3		$	531		$	26,901

Allowance for Loan and Lease Losses [Table Text Block]

The following table presents a rollforward of TDRs and the related changes to the allowance for loan losses (“ALLL”) that occurred for the periods presented:

	Three Months Ended					Year Ended
	March 31, 2018					December 31, 2017
	(dollars in thousands)
	Recorded					Recorded
	Investment			ALLL		Investment			ALLL
Troubled Debt Restructurings
Beginning balance	$	20,518		$	-	$	13,818		$	-
Additions		3,976			147		10,378			-
Payoffs/paydowns		(103	)		-		(3,098	)		-
Transfers		-			-		(580	)		-
Note increases		302			-		-			-
Ending balance	$	24,693		$	147	$	20,518		$	-

Schedule of Debtor Troubled Debt Restructuring, Current Period [Table Text Block]

The following table presents loans by class modified as TDRs that occurred during the three months ended March 31, 2018 (dollars in thousands):

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Loans	Investment		Investment
Troubled debt restructurings:
Commercial	3	$	2,077	$	2,077
Commercial real estate	1		60		60
Commercial construction	2		1,839		1,839
Total	6	$	3,976	$	3,976

These six loan modifications included interest rate reductions and maturity extensions.

TDRs totaled $14.9 million at March 31, 2017, of which $4.9 million were on nonaccrual status and $10.0 million were performing under restructured terms. TDRs as of March 31, 2017 did not increase the ALLL during the three months ended March 31, 2017. There were no charge-offs in connection with a loan modification at the time of modification during the three months ended March 31, 2017. There were no TDRs for which there was a payment default within twelve months following the modification during the three months ended March 31, 2017.

The following table presents loans by segment modified as troubled debt restructurings that occurred during the three months ended March 31, 2017 (dollars in thousands):

		Pre-Modification		Post-Modification
		Outstanding		Outstanding
	Number of	Recorded		Recorded
	Loans	Investment		Investment
Troubled debt restructurings:
Commercial real estate	1	$	2,775	$	2,775
Residential	1		18		18
Total	2	$	2,793	$	2,793

These two loan modifications included interest rate reductions and maturity extensions.