XML 42 R32.htm IDEA: XBRL DOCUMENT v3.10.0.1
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY INFORMATION (Tables)
 6 Months Ended
Jun. 30, 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 and six months ended June 30, 2018:
(Dollars in thousands)
 
Commercial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Residential(1)
 
Consumer
 
Total
Three months ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
16,102

 
$
5,359

 
$
6,617

 
$
2,864

 
$
1,680

 
$
8,188

 
$
40,810

Charge-offs
 
(1,740
)
 
(341
)
 
—

 
—

 
(54
)
 
(828
)
 
(2,963
)
Recoveries
 
359

 
7

 
3

 
1

 
75

 
247

 
692

Provision (credit)
 
1,133

 
204

 
337

 
422

 
(182
)
 
537

 
2,451

Provision for acquired loans
 
(12
)
 
55

 
(6
)
 
2

 
—

 
8

 
47

Ending balance
 
$
15,842

 
$
5,284

 
$
6,951

 
$
3,289

 
$
1,519

 
$
8,152

 
$
41,037

Six months ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
16,732

 
$
5,422

 
$
5,891

 
$
2,861

 
$
1,798

 
$
7,895

 
$
40,599

Charge-offs
 
(5,100
)
 
(351
)
 
(48
)
 
—

 
(54
)
 
(1,291
)
 
(6,844
)
Recoveries
 
439

 
12

 
137

 
1

 
91

 
454

 
1,134

Provision (credit)
 
3,783

 
146

 
954

 
450

 
(313
)
 
1,086

 
6,106

Provision for acquired loans
 
(12
)
 
55

 
17

 
(23
)
 
(3
)
 
8

 
42

Ending balance
 
$
15,842

 
$
5,284

 
$
6,951

 
$
3,289

 
$
1,519

 
$
8,152

 
$
41,037

Period-end allowance allocated to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
 
$
2,208

 
$
—

 
$
63

 
$
593

 
$
592

 
$
175

 
$
3,631

Loans collectively evaluated for impairment
 
13,472

 
5,266

 
6,804

 
2,687

 
891

 
7,960

 
37,080

Acquired loans evaluated for impairment
 
162

 
18

 
84

 
9

 
36

 
17

 
326

Ending balance
 
$
15,842

 
$
5,284

 
$
6,951

 
$
3,289

 
$
1,519

 
$
8,152

 
$
41,037

Period-end loan balances:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment (2)
 
$
17,015

 
$
3,224

 
$
6,737

 
$
5,557

 
$
12,282

 
$
7,714

 
$
52,529

Loans collectively evaluated for impairment
 
1,404,662

 
952,627

 
972,684

 
283,480

 
134,323

 
581,536

 
4,329,312

Acquired nonimpaired loans
 
101,532

 
125,129

 
172,082

 
7,352

 
65,723

 
29,239

 
501,057

Acquired impaired loans
 
2,904

 
4,915

 
9,151

 
731

 
771

 
251

 
18,723

Ending balance (3)
 
$
1,526,113

 
$
1,085,895

 
$
1,160,654

 
$
297,120

 
$
213,099

 
$
618,740

 
$
4,901,621

(1) 
Period-end loan balance excludes reverse mortgages, at fair value of $16.1 million.
(2) 
The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $16.3 million for the period ending June 30, 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 and six months ended June 30, 2017:
(Dollars in thousands)
 
Commercial
 
Owner -
occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Residential(1)
 
Consumer
 
Total
Three months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
14,205

 
$
6,030

 
$
8,335

 
$
2,961

 
$
2,054

 
$
6,241

 
$
39,826

Charge-offs
 
(929
)
 
—

 
(402
)
 
(117
)
 
(42
)
 
(888
)
 
(2,378
)
Recoveries
 
319

 
33

 
7

 
2

 
10

 
343

 
714

Provision (credit)
 
520

 
(265
)
 
(853
)
 
471

 
17

 
1,453

 
1,343

Provision for acquired loans
 
109

 
18

 
248

 
115

 
11

 
(1
)
 
500

Ending balance
 
$
14,224

 
$
5,816

 
$
7,335

 
$
3,432

 
$
2,050

 
$
7,148

 
$
40,005

Six months ended June 30, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
13,339

 
$
6,588

 
$
8,915

 
$
2,838

 
$
2,059

 
$
6,012

 
$
39,751

Charge-offs
 
(2,184
)
 
(192
)
 
(506
)
 
(131
)
 
(53
)
 
(2,031
)
 
(5,097
)
Recoveries
 
403

 
108

 
53

 
4

 
130

 
648

 
1,346

Provision (credit)
 
2,469

 
(706
)
 
(1,371
)
 
629

 
(97
)
 
2,533

 
3,457

Provision for acquired loans
 
197

 
18

 
244

 
92

 
11

 
(14
)
 
548

Ending balance
 
$
14,224

 
$
5,816

 
$
7,335

 
$
3,432

 
$
2,050

 
$
7,148

 
$
40,005

Period-end allowance allocated to:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
 
$
1,342

 
$
—

 
$
1,464

 
$
772

 
$
869

 
$
195

 
$
4,642

Loans collectively evaluated for impairment
 
12,587

 
5,783

 
5,714

 
2,595

 
1,147

 
6,949

 
34,775

Acquired loans evaluated for impairment
 
295

 
33

 
157

 
65

 
34

 
4

 
588

Ending balance
 
$
14,224

 
$
5,816

 
$
7,335

 
$
3,432

 
$
2,050

 
$
7,148

 
$
40,005

Period-end loan balances:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment (2)
 
$
14,845

 
$
3,432

 
$
10,941

 
$
4,808

 
$
14,023

 
$
8,396

 
$
56,445

Loans collectively evaluated for impairment
 
1,171,831

 
945,919

 
921,069

 
252,637

 
157,653

 
439,273

 
3,888,382

Acquired nonimpaired loans
 
130,986

 
148,686

 
204,809

 
20,340

 
80,074

 
44,902

 
629,797

Acquired impaired loans
 
6,002

 
11,839

 
10,187

 
2,021

 
852

 
246

 
31,147

Ending balance (3)
 
$
1,323,664

 
$
1,109,876

 
$
1,147,006

 
$
279,806

 
$
252,602

 
$
492,817

 
$
4,605,771

 
(1) 
Period-end loan balance excludes reverse mortgages, at fair value of $21.6 million.
(2) 
The difference between this amount and nonaccruing loans represents accruing troubled debt restructured loans of $18.1 million for the period ending June 30, 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:

 
 
June 30, 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
 
$
1,437

 
$
43

 
$
—

 
$
1,480

 
$
1,505,496

 
$
2,904

 
$
16,233

 
$
1,526,113

Owner-occupied commercial
 
1,525

 
1,366

 
—

 
2,891

 
1,074,865

 
4,915

 
3,224

 
1,085,895

Commercial mortgages
 
374

 
97

 
279

 
750

 
1,144,385

 
9,151

 
6,368

 
1,160,654

Construction
 
—

 
—

 
—

 
—

 
291,752

 
731

 
4,637

 
297,120

Residential(1)
 
1,646

 
217

 
—

 
1,863

 
206,667

 
771

 
3,798

 
213,099

Consumer
 
456

 
697

 
220

 
1,373

 
615,119

 
251

 
1,997

 
618,740

Total (2)
 
$
5,438

 
$
2,420

 
$
499

 
$
8,357

 
$
4,838,284

 
$
18,723

 
$
36,257

 
$
4,901,621

% of Total Loans
 
0.11
%
 
0.05
%
 
0.01
%
 
0.17
%
 
98.71
%
 
0.38
%
 
0.74
%
 
100
%
(1) 
Residential accruing current balances excludes reverse mortgages at fair value of $16.1 million.
(2) 
The balances above include a total of $501.1 million 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 acquired non-impaired loans
Analysis of Impaired Loans
The following tables provide an analysis of our impaired loans at June 30, 2018 and December 31, 2017:
 
 
 
June 30, 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
 
$
17,935

 
$
2,781

 
$
15,154

 
$
2,369

 
$
21,035

 
$
17,818

Owner-occupied commercial
 
4,919

 
3,224

 
1,695

 
18

 
5,542

 
5,845

Commercial mortgages
 
8,372

 
6,565

 
1,807

 
147

 
17,314

 
9,882

Construction
 
5,785

 
1,346

 
4,439

 
602

 
6,254

 
5,404

Residential
 
12,493

 
7,513

 
4,980

 
628

 
14,863

 
13,832

Consumer
 
7,844

 
6,577

 
1,267

 
192

 
8,710

 
7,891

Total (2)
 
$
57,348

 
$
28,006

 
$
29,342

 
$
3,956

 
$
73,718

 
$
60,672

(1) 
Reflects loan balances at or written down to their remaining book balance.
(2) 
The above includes acquired impaired loans totaling $4.8 million in the ending loan balance and $5.5 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
 
 
June 30, 2018
(Dollars in thousands)
 
Commercial and Industrial
 
Owner-occupied
Commercial
 
Commercial
Mortgages
 
Construction
 
Total
Commercial(1)
 
 
 
 
 
 
 
 
 
 
Amount
 
%
Risk Rating:
 
 
 
 
 
 
 
 
 
 
 
 
Special mention
 
$
20,847

 
$
17,022

 
$
6,419

 
$
—

 
$
44,288

 
 
Substandard:
 
 
 
 
 
 
 
 
 
 
 
 
Accrual
 
28,530

 
18,741

 
4,532

 
1,092

 
52,895

 
 
Nonaccrual
 
14,025

 
3,224

 
6,304

 
4,044

 
27,597

 
 
Doubtful
 
2,208

 
—

 
63

 
593

 
2,864

 
 
Total Special Mention and Substandard
 
65,610

 
38,987

 
17,318

 
5,729

 
127,644

 
3
%
Acquired impaired
 
2,904

 
4,915

 
9,151

 
731

 
17,701

 
1
%
Pass
 
1,457,599

 
1,041,993

 
1,134,185

 
290,660

 
3,924,437

 
96
%
Total
 
$
1,526,113

 
$
1,085,895

 
$
1,160,654

 
$
297,120

 
$
4,069,782

 
100
%
(1) 
 Table includes $406.1 million of acquired non-impaired loans as of June 30, 2018.

 
 
December 31, 2017
(Dollars in thousands)
 
Commercial
 and Industrial
 
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)
 
 
June 30,
 
December 31,
 
June 30,
 
December 31,
 
June 30, 2018
 
December 31, 2017
 
 
2018
 
2017
 
2018
 
2017
 
Amount
 
Percent
 
Amount
 
Percent
Nonperforming(1)
 
$
12,282

 
$
13,778

 
$
7,714

 
$
7,588

 
$
19,996

 
2
%
 
$
21,366

 
3
%
Acquired impaired loans
 
771

 
784

 
251

 
247

 
1,022

 
—
%
 
1,031

 
—
%
Performing
 
200,046

 
218,925

 
610,775

 
550,658

 
810,821

 
98
%
 
769,583

 
97
%
Total
 
$
213,099

 
$
233,487

 
$
618,740

 
$
558,493

 
$
831,839

 
100
%
 
$
791,980

 
100
%
(1) 
Includes $14.2 million as of June 30, 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 $16.1 million and $19.8 million of reverse mortgages at fair value as of June 30, 2018 and December 31, 2017, respectively.
(3) 
Total includes $95.0 million and $108.2 million in acquired non-impaired loans as of June 30, 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)
 
June 30, 2018
 
December 31, 2017
Performing TDRs
 
$
16,273

 
$
20,061

Nonperforming TDRs
 
19,539

 
9,627

Total TDRs
 
$
35,812

 
$
29,688

The following table presents loans identified as TDRs during the three and six months ended June 30, 2018 and 2017.
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2018
 
2017
 
2018
 
2017
(Dollars in thousands)
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
 
Pre Modification
 
Post Modification
Commercial
 
$
4,782

 
$
4,782

 
$
338

 
$
338

 
$
4,782

 
$
4,782

 
$
781

 
$
781

Owner-occupied commercial
 
—

 
—

 
—

 
—

 
—

 
—

 
3,071

 
3,071

Commercial mortgages
 
1,564

 
1,564

 
—

 
—

 
2,022

 
2,022

 
—

 
—

Construction
 
—

 
—

 
124

 
124

 
920

 
920

 
1,836

 
1,836

Residential
 
469

 
469

 
—

 
—

 
469

 
469

 
242

 
242

Consumer
 
861

 
861

 
674

 
674

 
1,123

 
1,123

 
1,258

 
1,258

Total
 
$
7,676

 
$
7,676

 
$
1,136

 
$
1,136

 
$
9,316

 
$
9,316

 
$
7,188

 
$
7,188


The following table presents information regarding the types of loan modifications made for the six months ended June 30, 2018 and 2017:
 
 
June 30, 2018
 
June 30, 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
 
3

 
—

 
—

 
—

 
3

 
1

 
1

 
—

 
—

 
2

Owner-occupied commercial
 
—

 
—

 
—

 
—

 
—

 
—

 
1

 
—

 
—

 
1

Commercial Mortgages
 
1

 
1

 
—

 
—

 
2

 
—

 
—

 
—

 
—

 
—

Construction
 
—

 
1

 
—

 
—

 
1

 
—

 
2

 
—

 
1

 
3

Residential
 
4

 
—

 
—

 
—

 
4

 
—

 
—

 
1

 
—

 
1

Consumer
 
7

 
1

 
3

 
2

 
13

 
—

 
—

 
7

 
4

 
11

Total
 
15

 
3

 
3

 
2

 
23

 
1

 
4

 
8

 
5

 
18

(1) 
Other includes underwriting exceptions.