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ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION (Tables)
 3 Months Ended
Mar. 31, 2018
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, 2018:
(Dollars in thousands)
 
Commercial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Residential(1)
 
Consumer
 
Total
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
16,732

 
$
5,422

 
$
5,891

 
$
2,861

 
$
1,798

 
$
7,895

 
$
40,599

Charge-offs
 
(3,360
)
 
(10
)
 
(48
)
 
—

 
—

 
(462
)
 
(3,880
)
Recoveries
 
80

 
5

 
134

 
1

 
14

 
207

 
441

Provision (credit)
 
2,650

 
(58
)
 
617

 
27

 
(129
)
 
548

 
3,655

Provision for acquired loans
 
—

 
—

 
23

 
(25
)
 
(3
)
 
—

 
(5
)
Ending balance
 
$
16,102

 
$
5,359

 
$
6,617

 
$
2,864

 
$
1,680

 
$
8,188

 
$
40,810

 
Loans individually evaluated for impairment
 
$
2,632

 
$
—

 
$
—

 
$
—

 
$
643

 
$
186

 
$
3,461

Loans collectively evaluated for impairment
 
13,296

 
5,347

 
6,528

 
2,857

 
1,001

 
7,994

 
37,023

Acquired loans evaluated for impairment
 
174

 
12

 
89

 
7

 
35

 
9

 
326

Ending balance
 
$
16,102

 
$
5,359

 
$
6,617

 
$
2,864

 
$
1,679

 
$
8,189

 
$
40,810

 
Loans individually evaluated for impairment (2)
 
$
16,993

 
$
4,342

 
$
5,946

 
$
6,490

 
$
12,861

 
$
7,677

 
$
54,309

Loans collectively evaluated for impairment
 
1,361,517

 
938,166

 
970,750

 
267,293

 
145,753

 
541,644

 
4,225,123

Acquired nonimpaired loans
 
107,183

 
133,007

 
178,518

 
15,259

 
67,722

 
33,152

 
534,841

Acquired impaired loans
 
3,870

 
5,147

 
9,210

 
901

 
777

 
249

 
20,154

Ending balance (3)
 
$
1,489,563

 
$
1,080,662

 
$
1,164,424

 
$
289,943

 
$
227,113

 
$
582,722

 
$
4,834,427

(1) 
Period-end loan balance excludes reverse mortgages, at fair value of $20.0 million.
(2) 
The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $20.2 million for the period ending March 31, 2018. 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, 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

 
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

 
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.
Summary of Nonaccrual and Past Due Loans
The following tables show our nonaccrual and past due loans at the dates indicated:

 
 
March 31, 2018
(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
 
$
403

 
$
708

 
$
31

 
$
1,142

 
$
1,467,695

 
$
3,870

 
$
16,856

 
$
1,489,563

Owner-occupied commercial
 
1,529

 
—

 
—

 
1,529

 
1,069,644

 
5,147

 
4,342

 
1,080,662

Commercial mortgages
 
616

 
34

 
46

 
696

 
1,149,408

 
9,210

 
5,110

 
1,164,424

Construction
 
2,024

 
—

 
—

 
2,024

 
285,580

 
901

 
1,438

 
289,943

Residential(1)
 
2,446

 
211

 
155

 
2,812

 
219,366

 
777

 
4,158

 
227,113

Consumer
 
532

 
179

 
323

 
1,034

 
579,283

 
249

 
2,156

 
582,722

Total (2)
 
$
7,550

 
$
1,132

 
$
555

 
$
9,237

 
$
4,770,976

 
$
20,154

 
$
34,060

 
$
4,834,427

% of Total Loans
 
0.16
%
 
0.02
%
 
0.01
%
 
0.19
%
 
98.69
%
 
0.42
%
 
0.70
%
 
100
%
(1) 
Residential accruing current balances excludes reverse mortgages at fair value of $20.0 million.
(2) 
The balances above include a total of $534.8 million of acquired non-impaired loans.
 
 
December 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
 
$
1,050

 
$
—

 
$
—

 
$
1,050

 
$
1,440,291

 
$
4,156

 
$
19,057

 
$
1,464,554

Owner-occupied commercial
 
2,069

 
233

 
—

 
2,302

 
1,067,488

 
5,803

 
3,654

 
1,079,247

Commercial mortgages
 
320

 
90

 
—

 
410

 
1,171,701

 
9,724

 
5,870

 
1,187,705

Construction
 
—

 
—

 
—

 
—

 
278,864

 
940

 
1,804

 
281,608

Residential(1)
 
2,058

 
731

 
356

 
3,145

 
225,434

 
784

 
4,124

 
233,487

Consumer
 
1,117

 
463

 
105

 
1,685

 
554,634

 
247

 
1,927

 
558,493

Total(2)
 
$
6,614

 
$
1,517

 
$
461

 
$
8,592

 
$
4,738,412

 
$
21,654

 
$
36,436

 
$
4,805,094

% of Total Loans
 
0.14
%
 
0.03
%
 
0.01
%
 
0.18
%
 
98.61
%
 
0.45
%
 
0.76
%
 
100
%
(1) 
Residential accruing current balances excludes reverse mortgages, at fair value of $19.8 million.
(2) 
The balances above include a total of $565.5 million of acquired non-impaired loans
Analysis of Impaired Loans
The following tables provide an analysis of our impaired loans at March 31, 2018 and December 31, 2017:
 
 
 
March 31, 2018
(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
 
$
18,592

 
$
3,038

 
$
15,554

 
$
2,806

 
$
24,842

 
$
17,941

Owner-occupied commercial
 
6,032

 
4,342

 
1,690

 
12

 
6,360

 
6,103

Commercial mortgages
 
7,427

 
5,946

 
1,481

 
89

 
16,370

 
11,103

Construction
 
6,718

 
6,490

 
228

 
7

 
7,239

 
5,134

Residential
 
13,261

 
8,195

 
5,066

 
679

 
15,992

 
14,334

Consumer
 
7,911

 
6,480

 
1,431

 
194

 
8,953

 
8,136

Total (2)
 
$
59,941

 
$
34,491

 
$
25,450

 
$
3,787

 
$
79,756

 
$
62,751

(1) 
Reflects loan balances at or written down to their remaining book balance.
(2) 
The above includes acquired impaired loans totaling $5.6 million in the ending loan balance and $6.6 million in the contractual principal balance.
 
 
December 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
 
$
20,842

 
$
3,422

 
$
17,420

 
$
3,861

 
$
23,815

 
$
15,072

Owner-occupied commercial
 
5,374

 
3,654

 
1,720

 
12

 
5,717

 
5,827

Commercial mortgages
 
7,598

 
4,487

 
3,111

 
112

 
16,658

 
12,630

Construction
 
6,292

 
6,023

 
269

 
33

 
6,800

 
4,523

Residential
 
14,181

 
8,282

 
5,899

 
796

 
17,015

 
14,533

Consumer
 
7,819

 
6,304

 
1,515

 
203

 
8,977

 
8,158

Total (2)
 
$
62,106

 
$
32,172

 
$
29,934

 
$
5,017

 
$
78,982

 
$
60,743

(1) 
Reflects loan balances at or written down to their remaining book balance.
(2) 
The above includes acquired impaired loans totaling $5.8 million in the ending loan balance and $6.8 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, 2018
(Dollars in thousands)
 
Commercial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Total
Commercial(1)
 
 
 
 
 
 
 
 
 
 
Amount
 
%
Risk Rating:
 
 
 
 
 
 
 
 
 
 
 
 
Special mention
 
$
24,871

 
$
15,874

 
$
4,346

 
$
—

 
$
45,091

 
 
Substandard:
 
 
 
 
 
 
 
 
 
 
 
 
Accrual
 
33,960

 
18,055

 
2,399

 
5,796

 
60,210

 
 
Nonaccrual
 
14,224

 
4,342

 
5,110

 
1,438

 
25,114

 
 
Doubtful
 
2,632

 
—

 
—

 
—

 
2,632

 
 
Total Special Mention and Substandard
 
75,687

 
38,271

 
11,855

 
7,234

 
133,047

 
3
%
Acquired impaired
 
3,870

 
5,147

 
9,210

 
901

 
19,128

 
1
%
Pass
 
1,410,006

 
1,037,244

 
1,143,359

 
281,808

 
3,872,417

 
96
%
Total
 
$
1,489,563

 
$
1,080,662

 
$
1,164,424

 
$
289,943

 
$
4,024,592

 
100
%
(1) 
 Table includes $434.0 million of acquired non-impaired loans as of March 31, 2018.

 
 
December 31, 2017
(Dollars in thousands)
 
Commercial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Total
Commercial(1)
 
 
 
 
 
 
 
 
 
 
Amount
 
%
Risk Rating:
 
 
 
 
 
 
 
 
 
 
 
 
Special mention
 
$
22,789

 
$
16,783

 
$
—

 
$
—

 
$
39,572

 
 
Substandard:
 
 
 
 
 
 
 
 
 


 
 
Accrual
 
34,332

 
19,386

 
1,967

 
4,965

 
60,650

 
 
Nonaccrual
 
15,370

 
3,654

 
5,852

 
1,804

 
26,680

 
 
Doubtful
 
3,687

 
—

 
18

 
—

 
3,705

 
 
Total Special Mention and Substandard
 
76,178

 
39,823

 
7,837

 
6,769

 
130,607

 
3
%
Acquired impaired
 
4,156

 
5,803

 
9,724

 
940

 
20,623

 
1
%
Pass
 
1,384,220

 
1,033,621

 
1,170,144

 
273,899

 
3,861,884

 
96
%
Total
 
$
1,464,554

 
$
1,079,247

 
$
1,187,705

 
$
281,608

 
$
4,013,114

 
100
%
(1) 
Table includes $457.3 million of acquired non-impaired loans as of December 31, 2017.
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, 2018
 
December 31, 2017
 
 
2018
 
2017
 
2018
 
2017
 
Amount
 
Percent
 
Amount
 
Percent
Nonperforming(1)
 
$
12,861

 
$
13,778

 
$
7,677

 
$
7,588

 
$
20,538

 
3
%
 
$
21,366

 
3
%
Acquired impaired loans
 
777

 
784

 
249

 
247

 
1,026

 
—
%
 
1,031

 
—
%
Performing
 
213,475

 
218,925

 
574,796

 
550,658

 
788,271

 
97
%
 
769,583

 
97
%
Total
 
$
227,113

 
$
233,487

 
$
582,722

 
$
558,493

 
$
809,835

 
100
%
 
$
791,980

 
100
%
(1) 
Includes $14.2 million as of March 31, 2018 and $15.3 million as of December 31, 2017 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 $20.0 million and $19.8 million of reverse mortgages at fair value as of March 31, 2018 and December 31, 2017, respectively.
(3) 
Total includes $100.9 million and $108.2 million in acquired non-impaired loans as of March 31, 2018 and December 31, 2017, respectively.
Schedule of Loans Identified as Troubled Debt Restructurings During Periods Indicated
The following table presents the balance of TDRs as of the indicated dates:
(Dollars in thousands)
 
March 31, 2018
 
December 31, 2017
Performing TDRs
 
$
20,248

 
$
20,061

Nonperforming TDRs
 
9,907

 
9,627

Total TDRs
 
$
30,155

 
$
29,688

The following table presents information regarding the types of loan modifications made for the three months ended March 31, 2018 and 2017:
 
 
March 31, 2018
 
March 31, 2017
 
 
Contractual payment reduction and term extension
 
Maturity Date Extension
 
Discharged in bankruptcy
 
Other (1)
 
Total
 
Contractual payment reduction and term extension
 
Maturity Date Extension
 
Discharged in bankruptcy
 
Other (1)
 
Total
Commercial
 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
—

 
1

Owner-occupied commercial
 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
—

 
1

Commercial Mortgages
 
—

 
1

 
—

 
—

 
1

 
—

 
—

 
—

 
—

 
—

Construction
 
—

 
1

 
—

 
—

 
1

 
—

 
2

 
—

 
—

 
2

Residential
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
1

Consumer
 
1

 
1

 
—

 
2

 
4

 
—

 
—

 
6

 
1

 
7

Total
 
1

 
3

 
—

 
2

 
6

 
—

 
4

 
7

 
1

 
12

(1) 
Other includes underwriting exceptions.
The following table presents loans identified as TDRs during the three months ended March 31, 2018 and 2017.
 
 
Three Months Ended March 31,
 
 
2018
 
2017
(Dollars in thousands)
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
Commercial
 
$
—

 
$
—

 
$
443

 
$
443

Owner-occupied commercial
 
—

 
—

 
3,071

 
3,071

Commercial mortgages
 
458

 
458

 
—

 
—

Construction
 
920

 
920

 
1,712

 
1,712

Residential
 
—

 
—

 
242

 
242

Consumer
 
262

 
262

 
584

 
584

Total
 
$
1,640

 
$
1,640

 
$
6,052

 
$
6,052