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Loans and Leases and Other Real Estate (Tables)
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Composition of Lakeland`s Loan and Lease Portfolio
The following sets forth the composition of Lakeland’s loan and lease portfolio:
 
 
 
December 31,
  
 
2017
 
2016
 
 
(in thousands)
Commercial, secured by real estate
 
$
2,831,184

 
$
2,556,601

Commercial, industrial and other
 
340,400

 
350,228

Leases
 
75,039

 
67,016

Real estate - residential mortgage
 
322,880

 
349,581

Real estate - construction
 
264,908

 
211,109

Home equity and consumer
 
322,269

 
339,360

Total loans and leases
 
4,156,680

 
3,873,895

Less deferred fees
 
(3,960
)
 
(3,297
)
Loans and leases, net of deferred fees
 
$
4,152,720

 
$
3,870,598
Schedule of Changes in Accretable Yield
The following table presents changes in the accretable yield for PCI loans (in thousands):
 
 
Years Ended December 31,
  
 
2017
 
2016
Balance, beginning of period
 
$
145

 
$
—

Acquisitions
 
—

 
182

Accretion
 
(202
)
 
(98
)
Net reclassification non-accretable difference
 
186

 
61

Balance, end of period
 
$
129

 
$
145
Lakeland's Non-Accrual Loans and Leases and Its Accruing Troubled Debt Restructurings (TDRs)
The following schedule sets forth certain information regarding Lakeland’s non-accrual loans and leases, its other real estate owned and other repossessed assets, and accruing troubled debt restructurings (“TDRs”) (in thousands):
 
 
 
At December 31,
  
 
2017
 
2016
Commercial, secured by real estate
 
$
5,890

 
$
10,413

Commercial, industrial and other
 
184

 
167

Leases
 
144

 
153

Real estate - residential mortgage
 
3,860

 
6,048

Real estate - construction
 
1,472

 
1,472

Home equity and consumer
 
2,105

 
2,151

Total non-accrual loans and leases
 
13,655

 
20,404

Other real estate and other repossessed assets
 
843

 
1,072

TOTAL NON-PERFORMING ASSETS
 
$
14,498

 
$
21,476

Troubled debt restructurings, still accruing
 
$
11,462

 
$
8,802
Age Analysis of Past Due Loans, Segregated by Class of Loans
An age analysis of past due loans, segregated by class of loans as of December 31, 2017 and 2016 is as follows:
December 31, 2017
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater
Than
89 Days
 
Total
Past Due
 
Current
 
Total Loans
and Leases
 
Recorded
Investment Greater
than 89 Days and
Still Accruing
 
 
(in thousands)
Commercial, secured by real estate
 
$
3,663

 
$
1,082

 
$
3,817

 
$
8,562

 
$
2,822,622

 
$
2,831,184

 
$
—

Commercial, industrial and other
 
80

 
121

 
56

 
257

 
340,143

 
340,400

 
—

Leases
 
496

 
139

 
144

 
779

 
74,260

 
75,039

 
—

Real estate - residential mortgage
 
939

 
908

 
3,137

 
4,984

 
317,896

 
322,880

 
—

Real estate - construction
 
—

 
—

 
1,472

 
1,472

 
263,436

 
264,908

 
—

Home equity and consumer
 
1,258

 
310

 
1,386

 
2,954

 
319,315

 
322,269

 
200

 
 
$
6,436

 
$
2,560

 
$
10,012

 
$
19,008

 
$
4,137,672

 
$
4,156,680

 
$
200

December 31, 2016
 
30-59 Days
Past Due
 
60-89 Days
Past Due
 
Greater
Than
89 Days
 
Total
Past Due
 
Current
 
Total Loans
and Leases
 
Recorded
Investment Greater
than 89 Days and
Still Accruing
 
 
(in thousands)
Commercial, secured by real estate
 
$
6,082

 
$
1,234

 
$
9,313

 
$
16,629

 
$
2,539,972

 
$
2,556,601

 
$
—

Commercial, industrial and other
 
1,193

 
213

 
42

 
1,448

 
348,780

 
350,228

 
—

Leases
 
132

 
78

 
153

 
363

 
66,653

 
67,016

 
—

Real estate - residential mortgage
 
2,990

 
1,057

 
5,330

 
9,377

 
340,204

 
349,581

 
—

Real estate - construction
 
3,409

 
—

 
1,472

 
4,881

 
206,228

 
211,109

 
—

Home equity and consumer
 
1,260

 
129

 
2,049

 
3,438

 
335,922

 
339,360

 
10

 
 
$
15,066

 
$
2,711

 
$
18,359

 
$
36,136

 
$
3,837,759

 
$
3,873,895

 
$
10
Impaired Loans with and without Specific Allowances
The following tables represent the Company's impaired loans at December 31, 2017, 2016 and 2015.
 
December 31, 2017
 
Recorded
Investment in
Impaired Loans
 
Contractual
Unpaid
Principal
Balance
 
Related
Allowance
 
Interest
Income
Recognized
 
Average
Investment in
Impaired Loans
 
 
(in thousands)
Loans without related allowance:
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
 
$
12,155

 
$
12,497

 
$
—

 
$
366

 
$
12,774

Commercial, industrial and other
 
618

 
618

 
—

 
25

 
618

Leases
 
—

 
—

 
—

 
—

 
—

Real estate - residential mortgage
 
963

 
980

 
—

 
15

 
996

Real estate - construction
 
1,471

 
1,471

 
—

 
—

 
1,471

Home equity and consumer
 
—

 
—

 
—

 
—

 
6

Loans with related allowance:
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
 
5,381

 
5,721

 
454

 
206

 
5,029

Commercial, industrial and other
 
164

 
164

 
9

 
14

 
283

Leases
 
65

 
65

 
30

 
—

 
29

Real estate - residential mortgage
 
781

 
919

 
4

 
27

 
940

Real estate - construction
 
—

 
—

 
—

 
—

 
—

Home equity and consumer
 
993

 
1,026

 
8

 
52

 
1,090

Total:
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
 
$
17,536

 
$
18,218

 
$
454

 
$
572

 
$
17,803

Commercial, industrial and other
 
782

 
782

 
9

 
39

 
901

Leases
 
65

 
65

 
30

 
—

 
29

Real estate - residential mortgage
 
1,744

 
1,899

 
4

 
42

 
1,936

Real estate - construction
 
1,471

 
1,471

 
—

 
—

 
1,471

Home equity and consumer
 
993

 
1,026

 
8

 
52

 
1,096

 
 
$
22,591

 
$
23,461

 
$
505

 
$
705

 
$
23,236

December 31, 2016
 
Recorded
Investment in
Impaired Loans
 
Contractual
Unpaid
Principal
Balance
 
Related
Allowance
 
Interest
Income
Recognized
 
Average
Investment in
Impaired Loans
 
 
(in thousands)
Loans without related allowance:
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
 
$
12,764

 
$
13,195

 
$
—

 
$
229

 
$
13,631

Commercial, industrial and other
 
603

 
603

 
—

 
24

 
1,109

Leases
 
—

 
—

 
—

 
—

 
—

Real estate - residential mortgage
 
1,880

 
3,146

 
—

 
16

 
2,430

Real estate - construction
 
1,471

 
1,471

 
—

 
—

 
12

Home equity and consumer
 
139

 
139

 
—

 
—

 
388

Loans with related allowance:
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
 
5,860

 
6,142

 
392

 
273

 
6,549

Commercial, industrial and other
 
349

 
349

 
12

 
17

 
360

Leases
 
—

 
—

 
—

 
—

 
1

Real estate - residential mortgage
 
1,031

 
1,100

 
31

 
30

 
1,011

Real estate - construction
 
—

 
—

 
—

 
—

 
—

Home equity and consumer
 
1,188

 
1,211

 
94

 
59

 
1,184

Total:
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
 
$
18,624

 
$
19,337

 
$
392

 
$
502

 
$
20,180

Commercial, industrial and other
 
952

 
952

 
12

 
41

 
1,469

Leases
 
—

 
—

 
—

 
—

 
1

Real estate - residential mortgage
 
2,911

 
4,246

 
31

 
46

 
3,441

Real estate - construction
 
1,471

 
1,471

 
—

 
—

 
12

Home equity and consumer
 
1,327

 
1,350

 
94

 
59

 
1,572

 
 
$
25,285

 
$
27,356

 
$
529

 
$
648

 
$
26,675

 
December 31, 2015
 
Recorded
Investment in
Impaired Loans
 
Contractual
Unpaid
Principal
Balance
 
Related
Allowance
 
Interest
Income
Recognized
 
Average
Investment in
Impaired Loans
 
 
(in thousands)
Loans without related allowance:
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
 
$
14,065

 
$
14,712

 
$
—

 
$
344

 
$
12,928

Commercial, industrial and other
 
209

 
887

 
—

 
14

 
749

Leases
 
—

 
—

 
—

 
—

 
—

Real estate - residential mortgage
 
2,195

 
2,242

 
—

 
—

 
2,096

Real estate - construction
 
—

 
—

 
—

 
—

 
94

Home equity and consumer
 
574

 
575

 
—

 
5

 
762

Loans with related allowance:
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
 
5,721

 
5,918

 
598

 
271

 
6,249

Commercial, industrial and other
 
1,023

 
1,023

 
77

 
32

 
717

Leases
 
6

 
6

 
1

 
—

 
—

Real estate - residential mortgage
 
832

 
865

 
73

 
37

 
840

Real estate - construction
 
380

 
380

 
21

 
13

 
308

Home equity and consumer
 
1,001

 
1,013

 
73

 
54

 
1,006

Total:
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
 
$
19,786

 
$
20,630

 
$
598

 
$
615

 
$
19,177

Commercial, industrial and other
 
1,232

 
1,910

 
77

 
46

 
1,466

Leases
 
6

 
6

 
1

 
—

 
—

Real estate - residential mortgage
 
3,027

 
3,107

 
73

 
37

 
2,936

Real estate - construction
 
380

 
380

 
21

 
13

 
402

Home equity and consumer
 
1,575

 
1,588

 
73

 
59

 
1,768

 
 
$
26,006

 
$
27,621

 
$
843

 
$
770

 
$
25,749
Lakeland's Commercial Loan Portfolio
The following table shows Lakeland’s commercial loan portfolio as of December 31, 2017 and 2016, by the risk ratings discussed above (in thousands):
December 31, 2017
 
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and  Other
 
 
RISK RATING
 
Real Estate -
Construction
1
 
$
—

 
$
392

 
$
—

2
 
—

 
26,968

 
—

3
 
76,824

 
35,950

 
—

4
 
862,537

 
96,426

 
15,502

5
 
1,779,908

 
150,928

 
246,806

5W - Watch
 
47,178

 
8,779

 
—

6 - Other assets especially mentioned
 
40,245

 
8,670

 
—

7 - Substandard
 
24,492

 
12,287

 
2,600

8 - Doubtful
 
—

 
—

 
—

9 - Loss
 
—

 
—

 
—

Total
 
$
2,831,184

 
$
340,400

 
$
264,908

December 31, 2016
 
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and  Other
 
 
RISK RATING
 
Real Estate -
Construction
1
 
$
—

 
$
1,449

 
$
—

2
 
—

 
26,743

 
—

3
 
82,102

 
36,644

 
—

4
 
729,281

 
135,702

 
28,177

5
 
1,615,331

 
129,366

 
175,595

5W - Watch
 
68,372

 
6,395

 
1,223

6 - Other assets especially mentioned
 
33,015

 
5,242

 
—

7 - Substandard
 
28,500

 
8,687

 
6,114

8 - Doubtful
 
—

 
—

 
—

9 - Loss
 
—

 
—

 
—

Total
 
$
2,556,601

 
$
350,228

 
$
211,109
Allowance for Loan and Lease Losses by Portfolio Segment and Related Recorded Investment in Loans and Leases
The following table details activity in the allowance for loan and lease losses by portfolio segment and the related recorded investment in loans and leases for the years ended December 31, 2017 and 2016:
 
December 31, 2017
 
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and  Other
 
Leases
 
Real
Estate  -
Residential
Mortgage
 
Real Estate -
Construction
 
Home
Equity and
Consumer
 
Total
 
 
(in thousands)
Beginning balance
 
$
21,223

 
$
1,723

 
$
548

 
$
1,964

 
$
2,352

 
$
3,435

 
$
31,245

Charge-offs
 
(762
)
 
(477
)
 
(305
)
 
(441
)
 
(609
)
 
(852
)
 
(3,446
)
Recoveries
 
396

 
172

 
59

 
5

 
31

 
903

 
1,566

Provision
 
4,847

 
895

 
328

 
29

 
957

 
(966
)
 
6,090

Ending balance
 
$
25,704

 
$
2,313

 
$
630

 
$
1,557

 
$
2,731

 
$
2,520

 
$
35,455

Ending balance: Individually evaluated for impairment
 
$
454

 
$
9

 
$
30

 
$
4

 
$
—

 
$
8

 
$
505

Ending balance: Collectively evaluated for impairment
 
25,250

 
2,304

 
600

 
1,553

 
2,731

 
2,512

 
$
34,950

Ending balance
 
$
25,704

 
$
2,313

 
$
630

 
$
1,557

 
$
2,731

 
$
2,520

 
$
35,455

LOANS AND LEASES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: Individually evaluated for impairment
 
$
17,536

 
$
782

 
$
65

 
$
1,744

 
$
1,471

 
$
993

 
$
22,591

Ending balance: Collectively evaluated for impairment
 
2,812,941

 
339,618

 
74,974

 
321,136

 
263,437

 
321,273

 
$
4,133,379

Ending balance: Loans acquired with deteriorated credit quality
 
707

 
—

 
—

 
—

 
—

 
3

 
$
710

Ending balance (1)
 
$
2,831,184

 
$
340,400

 
$
75,039

 
$
322,880

 
$
264,908

 
$
322,269

 
$
4,156,680

 
(1)
Excludes deferred fees
December 31, 2016
 
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Leases
 
Real
Estate -
Residential
Mortgage
 
Real Estate -
Construction
 
Home
Equity and
Consumer
 
Total
 
 
(in thousands)
Beginning balance
 
$
20,223

 
$
2,637

 
$
460

 
$
2,588

 
$
1,591

 
$
3,375

 
$
30,874

Charge-offs
 
(410
)
 
(796
)
 
(366
)
 
(1,103
)
 
—

 
(1,980
)
 
(4,655
)
Recoveries
 
297

 
202

 
31

 
8

 
18

 
247

 
803

Provision
 
1,113

 
(320
)
 
423

 
471

 
743

 
1,793

 
4,223

Ending balance
 
$
21,223

 
$
1,723

 
$
548

 
$
1,964

 
$
2,352

 
$
3,435

 
$
31,245

Ending balance: Individually evaluated for impairment
 
$
392

 
$
12

 
$
—

 
$
31

 
$
—

 
$
94

 
$
529

Ending balance: Collectively evaluated for impairment
 
20,831

 
1,711

 
548

 
1,933

 
2,352

 
3,341

 
$
30,716

Ending balance
 
$
21,223

 
$
1,723

 
$
548

 
$
1,964

 
$
2,352

 
$
3,435

 
$
31,245

LOANS AND LEASES
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: Individually evaluated for impairment
 
$
18,624

 
$
952

 
$
—

 
$
2,911

 
$
1,471

 
$
1,327

 
$
25,285

Ending balance: Collectively evaluated for impairment
 
2,536,858

 
349,001

 
67,016

 
346,670

 
209,638

 
338,019

 
$
3,847,202

Ending balance: Loans acquired with deteriorated credit quality
 
1,119

 
275

 
—

 
—

 
—

 
14

 
$
1,408

Ending balance (1)
 
$
2,556,601

 
$
350,228

 
$
67,016

 
$
349,581

 
$
211,109

 
$
339,360

 
$
3,873,895

 
(1)
Excludes deferred fees
 
Summary of Restructured Loans
The following table summarizes loans and leases that have been restructured during the periods presented:
  
 
For the Year Ended December 31, 2017
 
For the Year Ended December 31, 2016
  
 
Number of
Contracts
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
Number of
Contracts
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
 
 
(dollars in thousands)
Commercial, secured by real estate
 
8

 
$
4,618

 
$
4,618

 
1

 
$
303

 
$
303

Commercial, industrial and other
 
2

 
124

 
124

 
—

 
—

 
—

Leases
 
6

 
65

 
65

 
—

 
—

 
—

Real estate - residential mortgage
 
—

 
—

 
—

 
1

 
255

 
255

Home equity and consumer
 
—

 
—

 
—

 
3

 
285

 
285

 
 
16

 
$
4,807

 
$
4,807

 
5

 
$
843

 
$
843
Summary of Restructured Loans within Previous 12 Months that have Subsequently Defaulted
The following table presents loans and leases modified as TDRs within the previous 12 months from December 31, 2017 and 2016 that have defaulted during the subsequent twelve months:
  
 
For the Year Ended December 31, 2017
 
For the Year Ended December 31, 2016
  
 
Number of
Contracts
 
Recorded
Investment
 
Number of
Contracts
 
Recorded
Investment
 
 
(dollars in thousands)
 
 
 
 
 
 
 
 
 
Leases
 
2

 
$
35

 
—

 
$
—

Real estate - residential mortgage
 
—

 
—

 
1

 
255

Home equity and consumer
 
—

 
—

 
1

 
162

 
 
2

 
$
35

 
2

 
$
417
Summary of Future Minimum Lease Payments of Lease Receivables
Future minimum lease payments of lease receivables are expected as follows (in thousands):
2018
$
26,796

2019
20,356

2020
15,113

2021
9,046

2022
3,280

Thereafter
448

 
$
75,039