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Loans, Leases and Other Real Estate (Tables)
 6 Months Ended
Jun. 30, 2018
Receivables [Abstract]  
Composition of Company`s Loan and Lease Portfolio
The following sets forth the composition of the Company’s loan and lease portfolio:
 
June 30,
2018
 
December 31,
2017
 
(in thousands)
Commercial, secured by real estate
$
2,925,104

 
$
2,831,184

Commercial, industrial and other
339,974

 
340,400

Leases
82,006

 
75,039

Real estate - residential mortgage
321,717

 
322,880

Real estate - construction
297,357

 
264,908

Home equity and consumer
315,144

 
322,269

Total loans and leases
4,281,302

 
4,156,680

Less: deferred fees
(3,763
)
 
(3,960
)
Loans and leases, net of deferred fees
$
4,277,539

 
$
4,152,720
Schedule of Changes in Accretable Yield
The following table presents changes in the accretable yield for PCI loans:
 
For the Three Months Ended
 
For the Six Months Ended
 
June 30, 2018
 
June 30, 2017
 
June 30, 2018
 
June 30, 2017
 
(in thousands)
 
(in thousands)
Balance, beginning of period
$
113

 
$
180

 
$
129

 
$
145

Acquisitions
—

 
—

 
—

 
—

Accretion
(43
)
 
(47
)
 
(87
)
 
(98
)
Net reclassification non-accretable difference
30

 
—

 
58

 
86

Balance, end of period
$
100

 
$
133

 
$
100

 
$
133
Company's Non-Performing Assets and its Accruing Troubled Debt Restructurings, Excluding PCI Loans
The following schedule sets forth certain information regarding the Company’s non-performing assets and its accruing troubled debt restructurings, excluding PCI loans:
 
June 30,
2018
 
December 31,
2017
 
(in thousands)
Commercial, secured by real estate
$
7,353

 
$
5,890

Commercial, industrial and other
1,171

 
184

Leases
834

 
144

Real estate - residential mortgage
2,992

 
3,860

Real estate - construction
—

 
1,472

Home equity and consumer
1,917

 
2,105

Total non-accrual loans and leases
$
14,267

 
$
13,655

Other real estate and other repossessed assets
2,184

 
843

TOTAL NON-PERFORMING ASSETS
$
16,451

 
$
14,498

Troubled debt restructurings, still accruing
$
7,926

 
$
11,462
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 June 30, 2018 and December 31, 2017, is as follows:
 
30-59 Days Past Due
 
60-89 Days Past Due
 
Greater Than 89 Days Past Due
 
Total Past Due
 
Current
 
Total Loans and Leases
 
Recorded Investment Greater than 89 Days and Still Accruing
 
(in thousands)
June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
$
3,727

 
$
826

 
$
3,124

 
$
7,677

 
$
2,917,427

 
$
2,925,104

 
$
—

Commercial, industrial and other
119

 
—

 
1,100

 
1,219

 
338,755

 
339,974

 
—

Leases
129

 
77

 
834

 
1,040

 
80,966

 
82,006

 
—

Real estate - residential mortgage
1,506

 
311

 
2,992

 
4,809

 
316,908

 
321,717

 
—

Real estate - construction
—

 
—

 
—

 
—

 
297,357

 
297,357

 
—

Home equity and consumer
1,202

 
3

 
1,918

 
3,123

 
312,021

 
315,144

 
—

 
$
6,683

 
$
1,217

 
$
9,968

 
$
17,868

 
$
4,263,434

 
$
4,281,302

 
$
—

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
 
 
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
Impaired Loans with and without Specific Allowances
Impaired loans as of June 30, 2018 and December 31, 2017 are as follows:
June 30, 2018
Recorded
Investment in
Impaired Loans
 
Contractual
Unpaid
Principal
Balance
 
Specific
Allowance
 
Average
Investment in
Impaired Loans
 
Interest
Income
Recognized
 
(in thousands)
Loans without specific allowance:
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
$
7,398

 
$
7,715

 
$
—

 
$
6,730

 
$
89

Commercial, industrial and other
1,525

 
1,526

 
—

 
1,381

 
10

Leases
—

 
—

 
—

 
—

 
—

Real estate - residential mortgage
—

 
—

 
—

 
478

 
4

Real estate - construction
—

 
—

 
—

 
1,463

 
—

Home equity and consumer
—

 
—

 
—

 
—

 
—

Loans with specific allowance:
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
7,787

 
8,129

 
452

 
8,178

 
172

Commercial, industrial and other
228

 
228

 
8

 
228

 
6

Leases
663

 
663

 
393

 
279

 
—

Real estate - residential mortgage
757

 
902

 
4

 
557

 
10

Real estate - construction
—

 
—

 
—

 
—

 
—

Home equity and consumer
946

 
977

 
8

 
951

 
17

Total:
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
$
15,185

 
$
15,844

 
$
452

 
$
14,908

 
$
261

Commercial, industrial and other
1,753

 
1,754

 
8

 
1,609

 
16

Leases
663

 
663

 
393

 
279

 
—

Real estate - residential mortgage
757

 
902

 
4

 
1,035

 
14

Real estate - construction
—

 
—

 
—

 
1,463

 
—

Home equity and consumer
946

 
977

 
8

 
951

 
17

 
$
19,304

 
$
20,140

 
$
865

 
$
20,245

 
$
308

December 31, 2017
Recorded
Investment in
Impaired Loans
 
Contractual
Unpaid
Principal
Balance
 
Specific
Allowance
 
Average
Investment in
Impaired Loans
 
Interest
Income
Recognized
 
(in thousands)
Loans without specific allowance:
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
$
12,155

 
$
12,497

 
—

 
$
12,774

 
$
366

Commercial, industrial and other
618

 
618

 
—

 
618

 
25

Leases
—

 
—

 
—

 
—

 
—

Real estate - residential mortgage
963

 
980

 
—

 
996

 
15

Real estate - construction
1,471

 
1,471

 
—

 
1,471

 
—

Home equity and consumer
—

 
—

 
—

 
6

 
—

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

 
5,721

 
454

 
5,029

 
206

Commercial, industrial and other
164

 
164

 
9

 
283

 
14

Leases
65

 
65

 
30

 
29

 
—

Real estate - residential mortgage
781

 
919

 
4

 
940

 
27

Real estate - construction
—

 
—

 
—

 
—

 
—

Home equity and consumer
993

 
1,026

 
8

 
1,090

 
52

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

 
$
18,218

 
$
454

 
$
17,803

 
$
572

Commercial, industrial and other
782

 
782

 
9

 
901

 
39

Leases
65

 
65

 
30

 
29

 
—

Real estate - residential mortgage
1,744

 
1,899

 
4

 
1,936

 
42

Real estate - construction
1,471

 
1,471

 
—

 
1,471

 
—

Home equity and consumer
993

 
1,026

 
8

 
1,096

 
52

 
$
22,591

 
$
23,461

 
$
505

 
$
23,236

 
$
705
Company's Commercial Loan Portfolio
The following table shows the Company’s commercial loan portfolio as of June 30, 2018 and December 31, 2017, by the risk ratings discussed above (in thousands):
June 30, 2018
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Real Estate -
Construction
RISK RATING
 
 
 
 
 
1
$
—

 
$
331

 
$
—

2
—

 
16,766

 
—

3
67,445

 
44,690

 
—

4
907,615

 
99,290

 
23,012

5
1,841,406

 
149,975

 
262,623

5W - Watch
43,375

 
14,796

 
10,632

6 - Other assets especially mentioned
40,607

 
5,509

 
—

7 - Substandard
24,656

 
8,617

 
1,090

8 - Doubtful
—

 
—

 
—

9 - Loss
—

 
—

 
—

Total
$
2,925,104

 
$
339,974

 
$
297,357

December 31, 2017
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Real Estate -
Construction
RISK RATING
 
 
 
 
 
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
Allowance for Loan and Lease Losses by Portfolio Segment
The following table details activity in the allowance for loan and lease losses by portfolio segment for the three and six months ended June 30, 2018 and 2017:
Three Months Ended June 30, 2018
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
$
25,817

 
$
1,768

 
$
1,042

 
$
1,589

 
$
2,932

 
$
2,496

 
$
35,644

Charge-offs
(210
)
 
(289
)
 
(72
)
 
—

 
(248
)
 
(144
)
 
(963
)
Recoveries
274

 
76

 
3

 
3

 
3

 
72

 
431

Provision
293

 
457

 
291

 
(7
)
 
376

 
82

 
1,492

Ending Balance
$
26,174

 
$
2,012

 
$
1,264

 
$
1,585

 
$
3,063

 
$
2,506

 
$
36,604

Three Months Ended June 30, 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
$
22,083

 
$
1,792

 
$
502

 
$
1,825

 
$
2,378

 
$
3,010

 
$
31,590

Charge-offs
(83
)
 
(71
)
 
(120
)
 
(169
)
 
—

 
(427
)
 
(870
)
Recoveries
145

 
27

 
28

 
—

 
5

 
71

 
276

Provision
1,199

 
(60
)
 
119

 
98

 
213

 
258

 
1,827

Ending Balance
$
23,344

 
$
1,688

 
$
529

 
$
1,754

 
$
2,596

 
$
2,912

 
$
32,823

Six Months Ended June 30, 2018
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
$
25,704

 
$
2,313

 
$
630

 
$
1,557

 
$
2,731

 
$
2,520

 
$
35,455

Charge-offs
(232
)
 
(1,301
)
 
(95
)
 
(93
)
 
(248
)
 
(244
)
 
(2,213
)
Recoveries
305

 
96

 
5

 
5

 
8

 
167

 
586

Provision
397

 
904

 
724

 
116

 
572

 
63

 
2,776

Ending Balance
$
26,174

 
$
2,012

 
$
1,264

 
$
1,585

 
$
3,063

 
$
2,506

 
$
36,604

Six Months Ended June 30, 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
(303
)
 
(234
)
 
(163
)
 
(310
)
 
(609
)
 
(611
)
 
(2,230
)
Recoveries
364

 
122

 
32

 
—

 
20

 
225

 
763

Provision
2,060

 
77

 
112

 
100

 
833

 
(137
)
 
3,045

Ending Balance
$
23,344

 
$
1,688

 
$
529

 
$
1,754

 
$
2,596

 
$
2,912

 
$
32,823
Loans Receivable Summarized by Portfolio Segment and Impairment Method
Loans receivable summarized by portfolio segment and impairment method are as follows:
June 30, 2018
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Leases
 
Real Estate-
Residential
Mortgage
 
Real Estate-
Construction
 
Home
Equity and
Consumer
 
Total
 
(in thousands)
Ending Balance: Individually evaluated for impairment
$
15,185

 
$
1,753

 
$
663

 
$
757

 
$
—

 
$
946

 
$
19,304

Ending Balance: Collectively evaluated for impairment
2,909,234

 
338,221

 
81,343

 
320,960

 
297,357

 
314,197

 
4,261,312

Ending Balance: Loans acquired with deteriorated credit quality
685

 
—

 
—

 
—

 
—

 
1

 
686

Ending Balance (1)
$
2,925,104

 
$
339,974

 
$
82,006

 
$
321,717

 
$
297,357

 
$
315,144

 
$
4,281,302

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)
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
Allowance for Loan Losses Summarized by Portfolio Segment and Impairment Classification
The allowance for loan and lease losses is summarized by portfolio segment and impairment classification as follows:
June 30, 2018
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Leases
 
Real Estate-
Residential
Mortgage
 
Real Estate-
Construction
 
Home
Equity and
Consumer
 
Total
 
(in thousands)
Ending Balance: Individually evaluated for impairment
$
452

 
$
8

 
$
393

 
$
4

 
$
—

 
$
8

 
$
865

Ending Balance: Collectively evaluated for impairment
25,722

 
2,004

 
871

 
1,581

 
3,063

 
2,498

 
35,739

Ending Balance
$
26,174

 
$
2,012

 
$
1,264

 
$
1,585

 
$
3,063

 
$
2,506

 
$
36,604

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)
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
Summary of Restructured Loans
The following table summarizes loans that have been restructured during the three and six months ended June 30, 2018 and 2017:
 
For the Three Months Ended June 30, 2018
 
For the Three Months Ended June 30, 2017
 
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
1

 
$
170

 
$
170

 
2

 
$
159

 
$
159

Commercial, industrial and other
1

 
950

 
950

 
2

 
124

 
124

 
2

 
$
1,120

 
$
1,120

 
4

 
$
283

 
$
283

 
For the Six Months Ended June 30, 2018
 
For the Six Months Ended June 30, 2017
 
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
3

 
$
1,827

 
$
1,827

 
4

 
$
3,038

 
$
3,038

Commercial, industrial and other
1

 
950

 
950

 
2

 
124

 
124

 
4

 
$
2,777

 
$
2,777

 
6

 
$
3,162

 
$
3,162
Summary of Restructured Loans within Previous Twelve Months that have Subsequently Defaulted
The following table summarizes as of June 30, 2018 and 2017, loans that were restructured within the previous twelve months that have subsequently defaulted:
 
June 30, 2018
 
June 30, 2017
 
Number of
Contracts
 
Recorded
Investment
 
Number of
Contracts
 
Recorded
Investment
 
(dollars in thousands)
Commercial, secured by real estate
2

 
$
1,234

 
—

 
$
—

Commercial, industrial and other
1

 
950

 
—

 
—

Leases
1

 
11

 
—

 
—

Real estate - residential mortgage
—

 
$
—

 
1

 
$
254

 
4

 
$
2,195

 
1

 
$
254