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Allowance for Loan Losses and Credit Quality Information (Tables)
 3 Months Ended
Mar. 31, 2017
Receivables [Abstract]  
Schedule of Allowance for Loan Losses and Loan Balances
The following tables provide the activity of our allowance for loan losses and loan balances for the three months ended March 31, 2017:
 
 
Three months ended March 31, 2017
(Dollars in thousands)
 
Commercial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Residential(1)
 
Consumer
 
Total
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
13,339

 
$
6,588

 
$
8,915

 
$
2,838

 
$
2,059

 
$
6,012

 
$
39,751

Charge-offs
 
(1,255
)
 
(192
)
 
(104
)
 
(14
)
 
(11
)
 
(1,143
)
 
(2,719
)
Recoveries
 
84

 
75

 
46

 
2

 
120

 
305

 
632

Provision (credit)
 
1,949

 
(441
)
 
(518
)
 
158

 
(114
)
 
1,080

 
2,114

Provision for acquired loans
 
88

 
—

 
(4
)
 
(23
)
 
—

 
(13
)
 
48

Ending balance
 
$
14,205

 
$
6,030

 
$
8,335

 
$
2,961

 
$
2,054

 
$
6,241

 
$
39,826

Period-end allowance allocated to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
 
$
1,860

 
$
—

 
$
1,395

 
$
500

 
$
887

 
$
194

 
$
4,836

Loans collectively evaluated for impairment
 
12,165

 
6,015

 
6,763

 
2,397

 
1,144

 
6,042

 
34,526

Acquired loans evaluated for impairment
 
180

 
15

 
177

 
64

 
23

 
5

 
464

Ending balance
 
$
14,205

 
$
6,030

 
$
8,335

 
$
2,961

 
$
2,054

 
$
6,241

 
$
39,826

Period-end loan balances evaluated for:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment (2)
 
$
16,767

 
$
4,020

 
$
9,771

 
$
3,130

 
$
14,280

 
$
9,029

 
$
56,997

Loans collectively evaluated for impairment
 
1,175,911

 
919,508

 
928,925

 
225,718

 
158,430

 
405,285

 
3,813,777

Acquired nonimpaired loans
 
141,933

 
156,724

 
216,410

 
24,540

 
85,679

 
50,321

 
675,607

Acquired impaired loans
 
5,256

 
12,040

 
10,450

 
2,372

 
866

 
263

 
31,247

Ending balance (3)
 
$
1,339,867

 
$
1,092,292

 
$
1,165,556

 
$
255,760

 
$
259,255

 
$
464,898

 
$
4,577,628

(1) 
Period-end loan balance excludes Reverse Mortgages, at fair value of $22.5 million.
(2) 
The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $17.3 million for the period ending March 31, 2017. Accruing troubled debt restructured loans are considered impaired loans.
(3) 
Ending loan balances do not include net deferred fees.








The following table provides the activity of the allowance for loan losses and loan balances for the three months ended March 31, 2016:
 
 
Three months ended March 31, 2016
(Dollars in thousands)
 
Commercial
 
Owner -
occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Residential(1)
 
Consumer
 
Complexity Risk(2)
 
Total
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
11,156

 
$
6,670

 
$
6,487

 
$
3,521

 
$
2,281

 
$
5,964

 
$
1,010

 
$
37,089

Charge-offs
 
(179
)
 
—

 
(17
)
 
(26
)
 
(14
)
 
(631
)
 
—

 
(867
)
Recoveries
 
110

 
38

 
79

 
46

 
22

 
259

 
—

 
554

Provision (credit)
 
484

 
(6
)
 
(37
)
 
72

 
(20
)
 
400

 
14

 
907

Provision for acquired loans
 
(89
)
 
—

 
4

 
(4
)
 
—

 
(38
)
 
—

 
(127
)
Ending balance
 
$
11,482

 
$
6,702

 
$
6,516

 
$
3,609

 
$
2,269

 
$
5,954

 
$
1,024

 
$
37,556

Period-end allowance allocated to:
Loans individually evaluated for impairment
 
$
1,473

 
$
—

 
$
—

 
$
211

 
$
911

 
$
208

 
$
—

 
$
2,803

Loans collectively evaluated for impairment
 
10,005

 
6,680

 
6,427

 
3,398

 
1,354

 
5,746

 
1,024

 
34,634

Acquired loans evaluated for impairment
 
4

 
22

 
89

 
—

 
4

 
—

 
—

 
119

Ending balance
 
$
11,482

 
$
6,702

 
$
6,516

 
$
3,609

 
$
2,269

 
$
5,954

 
$
1,024

 
$
37,556

Period-end loan balances:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment (3)
 
$
5,278

 
$
1,270

 
$
2,678

 
$
1,419

 
$
15,260

 
$
7,795

 
$
—

 
$
33,700

Loans collectively evaluated for impairment
 
957,863

 
839,819

 
893,036

 
194,654

 
161,610

 
336,053

 
—

 
3,383,035

Acquired nonimpaired loans
 
107,380

 
49,765

 
80,795

 
27,711

 
73,240

 
15,803

 
—

 
354,694

Acquired impaired loans
 
12,600

 
4,603

 
10,557

 
3,564

 
955

 
5

 
—

 
32,284

Ending balance (4)
 
$
1,083,121

 
$
895,457

 
$
987,066

 
$
227,348

 
$
251,065

 
$
359,656

 
$
—

 
$
3,803,713

 
(1) 
Period-end loan balance excludes Reverse Mortgages, at fair value of $24.7 million.
(2) 
Represents the portion of the allowance for loan losses established to capture factors not already included in other components in our allowance for loan losses methodology.
(3) 
The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $13.9 million for the period ending March 31, 2016. Accruing troubled debt restructured loans are considered impaired loans.
(4) 
Ending loan balances do not include net deferred fees.
Summary of Nonaccrual and Past Due Loans
The following tables show our nonaccrual and past due loans at the dates indicated:

 
 
March 31, 2017
(Dollars in thousands)
 
30–59 Days
Past Due 
and
Still 
Accruing
 
60–89 Days
Past Due and
Still 
Accruing
 
Greater 
Than
90 Days
Past Due and
Still Accruing
 
Total Past
Due
And Still
Accruing
 
Accruing
Current
Balances
 
Acquired
Impaired
Loans
 
Nonaccrual
Loans
 
Total
Loans
Commercial
 
$
783

 
$
467

 
$
—

 
$
1,250

 
$
1,316,841

 
$
5,256

 
$
16,520

 
$
1,339,867

Owner-occupied commercial
 
341

 
500

 
—

 
841

 
1,075,391

 
12,040

 
4,020

 
1,092,292

Commercial mortgages
 
451

 
—

 
343

 
794

 
1,144,617

 
10,450

 
9,695

 
1,165,556

Construction
 
37

 
—

 
466

 
503

 
252,885

 
2,372

 
—

 
255,760

Residential(1)
 
2,020

 
119

 
850

 
2,989

 
250,443

 
866

 
4,957

 
259,255

Consumer
 
374

 
612

 
106

 
1,092

 
459,057

 
263

 
4,486

 
464,898

Total (2)
 
$
4,006

 
$
1,698

 
$
1,765

 
$
7,469

 
$
4,499,234

 
$
31,247

 
$
39,678

 
$
4,577,628

% of Total Loans
 
0.08
%
 
0.04
%
 
0.04
%
 
0.16
%
 
98.29
%
 
0.68
%
 
0.87
%
 
100
%
(1) 
Residential accruing current balances excludes Reverse Mortgages at fair value of $22.5 million.
(2) 
The balances above include a total of $675.6 million of acquired nonimpaired loans.
 
 
December 31, 2016
(Dollars in thousands)
 
30–59 Days
Past Due 
and
Still 
Accruing
 
60–89 Days
Past Due 
and
Still 
Accruing
 
Greater 
Than
90 Days Past
Due and Still
Accruing
 
Total Past
Due And
Still
Accruing
 
Accruing
Current
Balances
 
Acquired
Impaired
Loans
 
Nonaccrual
Loans
 
Total
Loans
Commercial
 
$
1,507

 
$
278

 
$
—

 
$
1,785

 
$
1,277,748

 
$
6,183

 
$
2,015

 
$
1,287,731

Owner-occupied commercial
 
116

 
540

 
—

 
656

 
1,063,306

 
12,122

 
2,078

 
1,078,162

Commercial mortgages
 
167

 
—

 
—

 
167

 
1,143,180

 
10,386

 
9,821

 
1,163,554

Construction
 
132

 
—

 
—

 
132

 
218,886

 
3,694

 
—

 
222,712

Residential(1)
 
3,176

 
638

 
153

 
3,967

 
257,234

 
860

 
4,967

 
267,028

Consumer
 
392

 
346

 
285

 
1,023

 
444,642

 
369

 
3,995

 
450,029

Total(2)
 
$
5,490

 
$
1,802

 
$
438

 
$
7,730

 
$
4,404,996

 
$
33,614

 
$
22,876

 
$
4,469,216

% of Total Loans
 
0.12
%
 
0.04
%
 
0.01
%
 
0.17
%
 
98.56
%
 
0.75
%
 
0.51
%
 
100
%
(1) 
Residential accruing current balances excludes Reverse Mortgages, at fair value of $22.6 million.
(2) 
The balances above include a total of $724.1 million of acquired nonimpaired loans
Analysis of Impaired Loans
The following tables provide an analysis of our impaired loans at March 31, 2017 and December 31, 2016:
 
 
 
March 31, 2017
(Dollars in thousands)
 
Ending
Loan
Balances
 
Loans with
No Related
Reserve (1)
 
Loans with
Related
Reserve
 
Related Reserve
 
Contractual
Principal Balances
 
Average Loan Balances
Commercial
 
$
18,550

 
$
2,598

 
$
15,952

 
$
2,040

 
$
20,197

 
$
7,535

Owner-occupied commercial
 
6,210

 
4,020

 
2,190

 
15

 
6,372

 
4,155

Commercial mortgages
 
14,478

 
4,220

 
10,258

 
1,572

 
19,906

 
9,288

Construction
 
4,435

 
1,117

 
3,318

 
564

 
4,546

 
2,979

Residential
 
15,000

 
8,056

 
6,944

 
910

 
17,904

 
14,941

Consumer
 
9,070

 
7,526

 
1,544

 
199

 
11,578

 
8,191

Total (2)
 
$
67,743

 
$
27,537

 
$
40,206

 
$
5,300

 
$
80,503

 
$
47,089

(1) 
Reflects loan balances at or written down to their remaining book balance.
(2) 
The above includes acquired impaired loans totaling $10.7 million in the ending loan balance and $11.8 million in the contractual principal balance.
 
 
December 31, 2016
(Dollars in thousands)
 
Ending
Loan
Balances
 
Loans with
No
Related
Reserve (1)
 
Loans with
Related
Reserve
 
Related
Reserve
 
Contractual
Principal
Balances
 
Average
Loan
Balances
Commercial
 
$
4,250

 
$
1,395

 
$
2,855

 
$
505

 
$
5,572

 
$
5,053

Owner-occupied commercial
 
4,650

 
2,078

 
2,572

 
15

 
5,129

 
3,339

Commercial mortgages
 
15,065

 
4,348

 
10,717

 
1,433

 
20,716

 
7,323

Construction
 
3,662

 
—

 
3,662

 
303

 
3,972

 
2,376

Residential
 
14,256

 
7,122

 
7,134

 
934

 
17,298

 
15,083

Consumer
 
8,021

 
6,561

 
1,460

 
215

 
11,978

 
7,910

Total (2)
 
$
49,904

 
$
21,504

 
$
28,400

 
$
3,405

 
$
64,665

 
$
41,084

(1) 
Reflects loan balances at or written down to their remaining book balance.
(2) 
The above includes acquired impaired loans totaling $12.8 million in the ending loan balance and $15.0 million in the contractual principal balance.
Schedule of Commercial Credit Exposure
The following tables provide an analysis of loans by portfolio segment based on the credit quality indicators used to determine the Allowance for Loan Loss.
Commercial Credit Exposure
 
 
 
March 31, 2017
(Dollars in thousands)
 
Commercial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Total
Commercial(1)
 
 
 
 
 
 
 
 
 
 
Amount
 
%
Risk Rating:
 
 
 
 
 
 
 
 
 
 
 
 
Special mention
 
$
17,590

 
$
6,849

 
$
21,931

 
$
1,008

 
$
47,378

 
 
Substandard:
 
 
 
 
 
 
 
 
 
 
 
 
Accrual
 
41,136

 
20,162

 
3,216

 
4,489

 
69,003

 
 
Nonaccrual
 
14,660

 
4,020

 
8,300

 
—

 
26,980

 
 
Doubtful
 
1,860

 
—

 
1,395

 
—

 
3,255

 
 
Total Special Mention and Substandard
 
75,246

 
31,031

 
34,842

 
5,497

 
146,616

 
4
%
Acquired impaired
 
5,256

 
12,040

 
10,450

 
2,372

 
30,118

 
1
%
Pass
 
1,259,365

 
1,049,221

 
1,120,264

 
247,891

 
3,676,741

 
95
%
Total
 
$
1,339,867

 
$
1,092,292

 
$
1,165,556

 
$
255,760

 
$
3,853,475

 
100
%
(1) 
 Table includes $539.6 million of acquired nonimpaired loans as of March 31, 2017.

 
 
December 31, 2016
(Dollars in thousands)
 
Commercial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Total
Commercial(1)
 
 
 
 
 
 
 
 
 
 
Amount
 
%
Risk Rating:
 
 
 
 
 
 
 
 
 
 
 
 
Special mention
 
$
17,630

 
$
11,419

 
$
34,198

 
$
—

 
$
63,247

 
 
Substandard:
 
 
 
 
 
 
 
 
 
 
 
 
Accrual
 
45,067

 
19,871

 
239

 
2,193

 
67,370

 
 
Nonaccrual
 
1,693

 
2,078

 
8,574

 
—

 
12,345

 
 
Doubtful
 
322

 
—

 
1,247

 
—

 
1,569

 
 
Total Special Mention and Substandard
 
64,712

 
33,368

 
44,258

 
2,193

 
144,531

 
4
%
Acquired impaired
 
6,183

 
12,122

 
10,386

 
3,694

 
32,385

 
1
%
Pass
 
1,216,836

 
1,032,672

 
1,108,910

 
216,825

 
3,575,243

 
95
%
Total
 
$
1,287,731

 
$
1,078,162

 
$
1,163,554

 
$
222,712

 
$
3,752,159

 
100
%
(1) 
Table includes $573.5 million of acquired nonimpaired loans as of December 31, 2016.
Schedule of Consumer Credit Exposure
Residential and Consumer Credit Exposure
 
(Dollars in thousands)
 
Residential(2)
 
Consumer
 
Total Residential and Consumer(3)
 
 
March 31,
 
December 31,
 
March 31,
 
December 31,
 
March 31, 2017
 
December 31, 2016
 
 
2017
 
2016
 
2017
 
2016
 
Amount
 
Percent
 
Amount
 
Percent
Nonperforming(1)
 
$
14,280

 
$
13,547

 
$
9,030

 
$
7,863

 
$
23,310

 
3
%
 
$
21,410

 
3
%
Acquired impaired loans
 
866

 
860

 
263

 
369

 
1,129

 
—
%
 
1,229

 
—
%
Performing
 
244,109

 
252,621

 
455,605

 
441,797

 
699,714

 
97
%
 
694,418

 
97
%
Total
 
$
259,255

 
$
267,028

 
$
464,898

 
$
450,029

 
$
724,153

 
100
%
 
$
717,057

 
100
%
(1) 
Includes $13.7 million as of March 31, 2017 and $12.4 million as of December 31, 2016 of troubled debt restructured mortgages and home equity installment loans that are performing in accordance with the loans’ modified terms and are accruing interest.
(2) 
Residential performing loans excludes $22.5 million and $22.6 million of Reverse Mortgages at fair value as of March 31, 2017 and December 31, 2016, respectively.
(3) 
Total includes $136.0 million and $150.5 million in acquired nonimpaired loans as of March 31, 2017 and December 31, 2016, respectively.
Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated
The following table presents loans identified as TDRs during the three months ended March 31, 2017 and 2016.
 
 
 
Three Months Ended March 31,
 
 
2017
 
2016
(Dollars in thousands)
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
Commercial
 
$
443

 
$
443

 
$
984

 
$
984

Owner-occupied commercial
 
3,071

 
3,071

 
—

 
—

Commercial mortgages
 
—

 
—

 
—

 
—

Construction
 
1,712

 
1,712

 
—

 
—

Residential
 
242

 
242

 
614

 
614

Consumer
 
584

 
584

 
215

 
215

Total
 
$
6,052

 
$
6,052

 
$
1,813

 
$
1,813

The following table presents information regarding the types of loan modifications made for the three months ended March 31, 2017:
(Dollars in thousands)
 
Maturity Date Extension
 
Discharged in bankruptcy
 
Other (1)
 
Total
Commercial
 
1

 
—

 
—

 
1

Owner-occupied commercial
 
1

 
—

 
—

 
1

Construction
 
2

 
—

 
—

 
2

Residential
 
—

 
1

 
—

 
1

Consumer
 
—

 
6

 
1

 
7

 
 
4

 
7

 
1

 
12

(1) 
Other includes underwriting exception.
The following table presents the balance of TDRs as of the indicated dates:
(Dollars in thousands)
 
March 31, 2017
 
December 31, 2016
Performing TDRs
 
$
17,260

 
$
14,336

Nonperforming TDRs
 
10,778

 
8,451

    Total TDRs
 
28,038

 
22,787