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Allowance for Loan Losses and Credit Quality Information (Tables)
 9 Months Ended
Sep. 30, 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 and nine months ended September 30, 2017:
(Dollars in thousands)
 
Commercial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Residential(1)
 
Consumer
 
Total
Three months ended September 30, 2017
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
14,224

 
$
5,816

 
$
7,335

 
$
3,432

 
$
2,050

 
$
7,148

 
$
40,005

Charge-offs
 
(1,603
)
 
(104
)
 
(1,196
)
 
(215
)
 
(59
)
 
(575
)
 
(3,752
)
Recoveries
 
417

 
12

 
16

 
301

 
11

 
295

 
1,052

Provision (credit)
 
2,128

 
(96
)
 
(231
)
 
427

 
(49
)
 
644

 
2,823

Provision for acquired loans
 
(7
)
 
104

 
(5
)
 
(28
)
 
9

 
—

 
73

Ending balance
 
$
15,159

 
$
5,732

 
$
5,919

 
$
3,917

 
$
1,962

 
$
7,512

 
$
40,201

Nine months ended September 30, 2017
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
13,339

 
$
6,588

 
$
8,915

 
$
2,838

 
$
2,059

 
$
6,012

 
$
39,751

Charge-offs
 
(3,787
)
 
(296
)
 
(1,702
)
 
(346
)
 
(112
)
 
(2,606
)
 
(8,849
)
Recoveries
 
820

 
120

 
69

 
305

 
141

 
943

 
2,398

Provision (credit)
 
4,597

 
(802
)
 
(1,602
)
 
1,056

 
(146
)
 
3,177

 
6,280

Provision for acquired loans
 
190

 
122

 
239

 
64

 
20

 
(14
)
 
621

Ending balance
 
$
15,159

 
$
5,732

 
$
5,919

 
$
3,917

 
$
1,962

 
$
7,512

 
$
40,201

Period-end allowance allocated to:
Loans individually evaluated for impairment
 
$
1,220

 
$
—

 
$
131

 
$
—

 
$
858

 
$
198

 
$
2,407

Loans collectively evaluated for impairment
 
13,646

 
5,699

 
5,638

 
3,881

 
1,078

 
7,310

 
37,252

Acquired loans evaluated for impairment
 
293

 
33

 
150

 
36

 
26

 
4

 
542

Ending balance
 
$
15,159

 
$
5,732

 
$
5,919

 
$
3,917

 
$
1,962

 
$
7,512

 
$
40,201

Period-end loan balances evaluated for:
Loans individually evaluated for impairment (2)
 
$
12,845

 
$
3,346

 
$
9,012

 
$
1,839

 
$
14,060

 
$
7,409

 
$
48,511

Loans collectively evaluated for impairment
 
1,249,027

 
941,296

 
943,699

 
271,447

 
148,715

 
472,488

 
4,026,672

Acquired nonimpaired loans
 
120,987

 
144,710

 
194,394

 
19,085

 
77,154

 
40,136

 
596,466

Acquired impaired loans
 
5,235

 
7,401

 
9,969

 
946

 
788

 
243

 
24,582

Ending balance (3)
 
$
1,388,094

 
$
1,096,753

 
$
1,157,074

 
$
293,317

 
$
240,717

 
$
520,276

 
$
4,696,231

(1) 
Period-end loan balance excludes reverse mortgages, at fair value of $21.4 million.
(2) 
The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $14.9 million for the period ending September 30, 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 and nine months ended September 30, 2016:
(Dollars in thousands)
 
Commercial
 
Owner -
occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Residential(1)
 
Consumer
 
Complexity Risk(2)
 
Total
Three months ended September 30, 2016
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
11,402

 
$
6,723

 
$
8,135

 
$
3,308

 
$
2,352

 
$
5,826

 
$
—

 
$
37,746

Charge-offs
 
(3,737
)
 
(1,415
)
 
(1
)
 
(30
)
 
(43
)
 
(518
)
 
—

 
(5,744
)
Recoveries
 
223

 
15

 
197

 
440

 
33

 
290

 
—

 
1,198

Provision (credit)
 
3,714

 
1,437

 
1,089

 
(824
)
 
(179
)
 
401

 
—

 
5,638

Provision for acquired loans
 
117

 
185

 
(48
)
 
(76
)
 
12

 
—

 
—

 
190

Ending balance
 
$
11,719

 
$
6,945

 
$
9,372

 
$
2,818

 
$
2,175

 
$
5,999

 
$
—

 
$
39,028

Nine months ended September 30, 2016
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
11,156

 
$
6,670

 
$
6,487

 
$
3,521

 
$
2,281

 
$
5,964

 
$
1,010

 
$
37,089

Charge-offs
 
(4,643
)
 
(1,556
)
 
(79
)
 
(59
)
 
(72
)
 
(1,967
)
 
—

 
(8,376
)
Recoveries
 
557

 
66

 
310

 
486

 
112

 
922

 
—

 
2,453

Provision (credit)
 
4,551

 
1,564

 
2,650

 
(1,104
)
 
(177
)
 
1,118

 
(1,010
)
 
7,592

Provision for acquired loans
 
98

 
201

 
4

 
(26
)
 
31

 
(38
)
 
—

 
270

Ending balance
 
$
11,719

 
$
6,945

 
$
9,372

 
$
2,818

 
$
2,175

 
$
5,999

 
$
—

 
$
39,028

Period-end allowance allocated to:
Loans individually evaluated for impairment
 
$
692

 
$
—

 
$
1,264

 
$
215

 
$
989

 
$
201

 
$
—

 
$
3,361

Loans collectively evaluated for impairment
 
10,974

 
6,923

 
7,982

 
2,549

 
1,167

 
5,798

 
—

 
35,393

Acquired loans evaluated for impairment
 
53

 
22

 
126

 
54

 
19

 
—

 
—

 
274

Ending balance
 
$
11,719

 
$
6,945

 
$
9,372

 
$
2,818

 
$
2,175

 
$
5,999

 
$
—

 
$
39,028

Period-end loan balances:
Loans individually evaluated for impairment (3)
 
$
4,198

 
$
2,510

 
$
7,165

 
$
1,419

 
$
13,957

 
$
8,105

 
$
—

 
$
37,354

Loans collectively evaluated for impairment
 
1,077,258

 
869,051

 
904,328

 
182,338

 
150,318

 
368,428

 
—

 
3,551,721

Acquired nonimpaired loans
 
175,570

 
175,411

 
229,530

 
21,627

 
103,537

 
61,257

 
—

 
766,932

Acquired impaired loans
 
9,691

 
10,673

 
12,880

 
3,592

 
899

 
368

 
—

 
38,103

Ending balance (4)
 
$
1,266,717

 
$
1,057,645

 
$
1,153,903

 
$
208,976

 
$
268,711

 
$
438,158

 
$
—

 
$
4,394,110

 
(1) 
Period-end loan balance excludes reverse mortgages, at fair value of $23.1 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 $14.2 million for the period ending September 30, 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:

 
 
September 30, 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
 
$
673

 
$
136

 
$
685

 
$
1,494

 
$
1,368,660

 
$
5,235

 
$
12,705

 
$
1,388,094

Owner-occupied commercial
 
998

 
—

 
—

 
998

 
1,085,008

 
7,401

 
3,346

 
1,096,753

Commercial mortgages
 
1,320

 
—

 
—

 
1,320

 
1,136,982

 
9,969

 
8,803

 
1,157,074

Construction
 
1,033

 
—

 
—

 
1,033

 
289,499

 
946

 
1,839

 
293,317

Residential(1)
 
1,708

 
364

 
557

 
2,629

 
232,567

 
788

 
4,733

 
240,717

Consumer
 
593

 
771

 
96

 
1,460

 
516,463

 
243

 
2,110

 
520,276

Total (2)
 
$
6,325

 
$
1,271

 
$
1,338

 
$
8,934

 
$
4,629,179

 
$
24,582

 
$
33,536

 
$
4,696,231

% of Total Loans
 
0.13
%
 
0.03
%
 
0.03
%
 
0.19
%
 
98.58
%
 
0.52
%
 
0.71
%
 
100
%
(1) 
Residential accruing current balances excludes reverse mortgages at fair value of $21.4 million.
(2) 
The balances above include a total of $596.5 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
%
 
98.57
%
 
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 September 30, 2017 and December 31, 2016:
 
 
 
September 30, 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
 
$
14,814

 
$
3,129

 
$
11,685

 
$
1,513

 
$
16,967

 
$
11,981

Owner-occupied commercial
 
4,669

 
3,346

 
1,323

 
33

 
4,984

 
5,583

Commercial mortgages
 
12,190

 
7,267

 
4,923

 
281

 
18,385

 
12,941

Construction
 
2,111

 
1,839

 
272

 
36

 
2,377

 
3,769

Residential
 
14,621

 
8,343

 
6,278

 
884

 
17,517

 
14,652

Consumer
 
7,447

 
5,914

 
1,533

 
202

 
9,283

 
8,216

Total (2)
 
$
55,852

 
$
29,838

 
$
26,014

 
$
2,949

 
$
69,513

 
$
57,142

(1) 
Reflects loan balances at or written down to their remaining book balance.
(2) 
The above includes acquired impaired loans totaling $7.3 million in the ending loan balance and $8.3 million in the contractual principal balance of the total acquired impaired loan portfolio of $24.6 million
 
 
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 of the total acquired impaired loan portfolio of $33.6 million.
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
 
 
 
September 30, 2017
(Dollars in thousands)
 
Commercial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Total
Commercial(1)
 
 
 
 
 
 
 
 
 
 
Amount
 
%
Risk Rating:
 
 
 
 
 
 
 
 
 
 
 
 
Special mention
 
$
12,474

 
$
2,858

 
$
—

 
$
3,644

 
$
18,976

 
 
Substandard:
 
 
 
 
 
 
 
 
 
 
 
 
Accrual
 
52,237

 
25,083

 
64

 
754

 
78,138

 
 
Nonaccrual
 
11,485

 
3,346

 
8,672

 
1,839

 
25,342

 
 
Doubtful
 
1,220

 
—

 
131

 
—

 
1,351

 
 
Total Special Mention and Substandard
 
77,416

 
31,287

 
8,867

 
6,237

 
123,807

 
3
%
Acquired impaired
 
5,235

 
7,401

 
9,969

 
946

 
23,551

 
1
%
Pass
 
1,305,443

 
1,058,065

 
1,138,238

 
286,134

 
3,787,880

 
96
%
Total
 
$
1,388,094

 
$
1,096,753

 
$
1,157,074

 
$
293,317

 
$
3,935,238

 
100
%
(1) 
 Table includes $479.2 million of acquired nonimpaired loans as of September 30, 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)
 
 
September 30,
 
December 31,
 
September 30,
 
December 31,
 
September 30, 2017
 
December 31, 2016
 
 
2017
 
2016
 
2017
 
2016
 
Amount
 
Percent
 
Amount
 
Percent
Nonperforming(1)
 
$
14,060

 
$
13,547

 
$
7,409

 
$
7,863

 
$
21,469

 
3
%
 
$
21,410

 
3
%
Acquired impaired loans
 
788

 
860

 
243

 
369

 
1,031

 
—
%
 
1,229

 
—
%
Performing
 
225,869

 
252,621

 
512,624

 
441,797

 
738,493

 
97
%
 
694,418

 
97
%
Total
 
$
240,717

 
$
267,028

 
$
520,276

 
$
450,029

 
$
760,993

 
100
%
 
$
717,057

 
100
%
(1) 
Includes $14.6 million as of September 30, 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 $21.4 million and $22.6 million of reverse mortgages at fair value as of September 30, 2017 and December 31, 2016, respectively.
(3) 
Total includes $117.3 million and $150.5 million in acquired nonimpaired loans as of September 30, 2017 and December 31, 2016, respectively.
Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated
The following table presents information regarding the types of loan modifications made for the nine months ended September 30, 2017:
 
 
Contractual payment reduction and term extension
 
Maturity Date Extension
 
Discharged in bankruptcy
 
Other (1)
 
Total
Commercial
 
1

 
1

 
—

 
—

 
2

Owner-occupied commercial
 
—

 
1

 
—

 
—

 
1

Construction
 
—

 
2

 
—

 
1

 
3

Residential
 
2

 
—

 
3

 
—

 
5

Consumer
 
1

 
—

 
11

 
6

 
18

Total
 
4

 
4

 
14

 
7

 
29

(1) 
Other includes underwriting exceptions.
The following table presents the balance of TDRs as of the indicated dates:
(Dollars in thousands)
 
September 30, 2017
 
December 31, 2016
Performing TDRs
 
$
14,905

 
$
14,336

Nonperforming TDRs
 
11,114

 
8,451

Total TDRs
 
$
26,019

 
$
22,787

The following table presents loans identified as TDRs during the three and nine months ended September 30, 2017 and 2016.
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
2017
 
2016
 
2017
 
2016
(Dollars in thousands)
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
Commercial
 
$
—

 
$
—

 
$
—

 
$
—

 
$
781

 
$
781

 
$
1,125

 
$
1,125

Owner-occupied commercial
 
—

 
—

 
—

 
—

 
3,071

 
3,071

 
—

 
—

Commercial mortgages
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Construction
 
—

 
—

 
—

 
—

 
1,836

 
1,836

 
—

 
—

Residential
 
1,058

 
1,058

 
797

 
797

 
1,300

 
1,300

 
1,523

 
1,523

Consumer
 
609

 
609

 
278

 
278

 
1,867

 
1,867

 
733

 
733

Total
 
$
1,667

 
$
1,667

 
$
1,075

 
$
1,075

 
$
8,855

 
$
8,855

 
$
3,381

 
$
3,381