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Loans, Leases and Other Real Estate (Tables)
 9 Months Ended
Sep. 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:
 
September 30,
2018
 
December 31,
2017
 
(in thousands)
Commercial, secured by real estate
$
2,984,430

 
$
2,831,184

Commercial, industrial and other
334,241

 
340,400

Leases
82,881

 
75,039

Real estate - residential mortgage
315,135

 
322,880

Real estate - construction
297,516

 
264,908

Home equity and consumer
318,035

 
322,269

Total loans and leases
4,332,238

 
4,156,680

Less: deferred fees
(4,120
)
 
(3,960
)
Loans and leases, net of deferred fees
$
4,328,118

 
$
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 Nine Months Ended
 
September 30, 2018
 
September 30, 2017
 
September 30, 2018
 
September 30, 2017
 
(in thousands)
 
(in thousands)
Balance, beginning of period
$
100

 
$
133

 
$
129

 
$
145

Accretion
(58
)
 
(40
)
 
(145
)
 
(138
)
Net reclassification non-accretable difference
41

 
35

 
99

 
121

Balance, end of period
$
83

 
$
128

 
$
83

 
$
128
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:
 
September 30,
2018
 
December 31,
2017
 
(in thousands)
Commercial, secured by real estate
$
5,737

 
$
5,890

Commercial, industrial and other
1,189

 
184

Leases
441

 
144

Real estate - residential mortgage
2,347

 
3,860

Real estate - construction
—

 
1,472

Home equity and consumer
1,410

 
2,105

Total non-accrual loans and leases
$
11,124

 
$
13,655

Other real estate and other repossessed assets
2,754

 
843

TOTAL NON-PERFORMING ASSETS
$
13,878

 
$
14,498

Troubled debt restructurings, still accruing
$
9,030

 
$
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 September 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)
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
$
6,068

 
$
1,393

 
$
1,328

 
$
8,789

 
$
2,975,641

 
$
2,984,430

 
$
—

Commercial, industrial and other
540

 
7

 
350

 
897

 
333,344

 
334,241

 
—

Leases
454

 
110

 
442

 
1,006

 
81,875

 
82,881

 
—

Real estate - residential mortgage
2,470

 
207

 
1,825

 
4,502

 
310,633

 
315,135

 
16

Real estate - construction
1,071

 
—

 
—

 
1,071

 
296,445

 
297,516

 
—

Home equity and consumer
2,051

 
616

 
1,010

 
3,677

 
314,358

 
318,035

 
—

 
$
12,654

 
$
2,333

 
$
4,955

 
$
19,942

 
$
4,312,296

 
$
4,332,238

 
$
16

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 September 30, 2018 and December 31, 2017 are as follows:
September 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
$
7,918

 
$
8,160

 
$
—

 
$
7,147

 
$
136

Commercial, industrial and other
1,329

 
1,610

 
—

 
1,799

 
14

Leases
301

 
597

 
—

 
258

 
—

Real estate - residential mortgage
—

 
—

 
—

 
323

 
4

Real estate - construction
—

 
—

 
—

 
970

 
—

Home equity and consumer
—

 
—

 
—

 
—

 
—

Loans with specific allowance:
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
6,982

 
7,309

 
322

 
7,804

 
247

Commercial, industrial and other
219

 
219

 
8

 
221

 
9

Leases
17

 
17

 
8

 
17

 
—

Real estate - residential mortgage
743

 
893

 
4

 
754

 
15

Real estate - construction
—

 
—

 
—

 
—

 
—

Home equity and consumer
871

 
986

 
7

 
907

 
25

Total:
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
$
14,900

 
$
15,469

 
$
322

 
$
14,951

 
$
383

Commercial, industrial and other
1,548

 
1,829

 
8

 
2,020

 
23

Leases
318

 
614

 
8

 
275

 
—

Real estate - residential mortgage
743

 
893

 
4

 
1,077

 
19

Real estate - construction
—

 
—

 
—

 
970

 
—

Home equity and consumer
871

 
986

 
7

 
907

 
25

 
$
18,380

 
$
19,791

 
$
349

 
$
20,200

 
$
450

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 September 30, 2018 and December 31, 2017, by the risk ratings discussed above (in thousands):
September 30, 2018
Commercial,
Secured by
Real Estate
 
Commercial,
Industrial
and Other
 
Real Estate -
Construction
RISK RATING
 
 
 
 
 
1
$
—

 
$
279

 
$
—

2
—

 
17,907

 
—

3
70,548

 
42,177

 
—

4
903,866

 
84,973

 
28,780

5
1,886,023

 
163,114

 
266,054

5W - Watch
46,537

 
8,428

 
1,611

6 - Other assets especially mentioned
41,237

 
5,444

 
—

7 - Substandard
36,219

 
11,919

 
1,071

8 - Doubtful
—

 
—

 
—

9 - Loss
—

 
—

 
—

Total
$
2,984,430

 
$
334,241

 
$
297,516

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 nine months ended September 30, 2018 and 2017:
Three Months Ended September 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
$
26,174

 
$
2,012

 
$
1,264

 
$
1,585

 
$
3,063

 
$
2,506

 
$
36,604

Charge-offs
(24
)
 
(151
)
 
(368
)
 
(38
)
 
—

 
(172
)
 
(753
)
Recoveries
135

 
177

 
2

 
2

 
4

 
76

 
396

Provision
1,361

 
(70
)
 
(12
)
 
(62
)
 
(166
)
 
(5
)
 
1,046

Ending Balance
$
27,646

 
$
1,968

 
$
886

 
$
1,487

 
$
2,901

 
$
2,405

 
$
37,293

Three Months Ended September 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
$
23,344

 
$
1,688

 
$
529

 
$
1,754

 
$
2,596

 
$
2,912

 
$
32,823

Charge-offs
(315
)
 
(196
)
 
(87
)
 
(98
)
 
—

 
(173
)
 
(869
)
Recoveries
26

 
28

 
7

 
3

 
4

 
76

 
144

Provision
1,673

 
572

 
65

 
(90
)
 
(135
)
 
(258
)
 
1,827

Ending Balance
$
24,728

 
$
2,092

 
$
514

 
$
1,569

 
$
2,465

 
$
2,557

 
$
33,925

Nine Months Ended September 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
(256
)
 
(1,452
)
 
(463
)
 
(131
)
 
(248
)
 
(416
)
 
(2,966
)
Recoveries
440

 
273

 
7

 
7

 
12

 
243

 
982

Provision
1,758

 
834

 
712

 
54

 
406

 
58

 
3,822

Ending Balance
$
27,646

 
$
1,968

 
$
886

 
$
1,487

 
$
2,901

 
$
2,405

 
$
37,293

Nine Months Ended September 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
(618
)
 
(430
)
 
(250
)
 
(408
)
 
(609
)
 
(784
)
 
(3,099
)
Recoveries
390

 
150

 
39

 
3

 
24

 
301

 
907

Provision
3,733

 
649

 
177

 
10

 
698

 
(395
)
 
4,872

Ending Balance
$
24,728

 
$
2,092

 
$
514

 
$
1,569

 
$
2,465

 
$
2,557

 
$
33,925
Loans Receivable Summarized by Portfolio Segment and Impairment Method
Loans receivable summarized by portfolio segment and impairment method are as follows:
September 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
$
14,900

 
$
1,548

 
$
318

 
$
743

 
$
—

 
$
871

 
$
18,380

Ending Balance: Collectively evaluated for impairment
2,968,859

 
332,693

 
82,563

 
314,392

 
297,516

 
317,162

 
4,313,185

Ending Balance: Loans acquired with deteriorated credit quality
671

 
—

 
—

 
—

 
—

 
2

 
673

Ending Balance (1)
$
2,984,430

 
$
334,241

 
$
82,881

 
$
315,135

 
$
297,516

 
$
318,035

 
$
4,332,238

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:
September 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
$
322

 
$
8

 
$
8

 
$
4

 
$
—

 
$
7

 
$
349

Ending Balance: Collectively evaluated for impairment
27,324

 
1,960

 
878

 
1,483

 
2,901

 
2,398

 
36,944

Ending Balance
$
27,646

 
$
1,968

 
$
886

 
$
1,487

 
$
2,901

 
$
2,405

 
$
37,293

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 nine months ended September 30, 2018 and 2017:
 
For the Three Months Ended September 30, 2018
 
For the Three Months Ended September 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

 
$
1,175

 
$
1,175

 
1

 
$
473

 
$
473

 
1

 
$
1,175

 
$
1,175

 
1

 
$
473

 
$
473

 
For the Nine Months Ended September 30, 2018
 
For the Nine Months Ended September 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
4

 
$
3,002

 
$
3,002

 
5

 
$
3,511

 
$
3,511

Commercial, industrial and other
1

 
950

 
950

 
2

 
124

 
124

 
5

 
$
3,952

 
$
3,952

 
7

 
$
3,635

 
$
3,635
Summary of Restructured Loans within Previous Twelve Months that have Subsequently Defaulted
The following table summarizes as of September 30, 2018 and 2017, loans that were restructured within the previous twelve months that have subsequently defaulted:
 
September 30, 2018
 
September 30, 2017
 
Number of
Contracts
 
Recorded
Investment
 
Number of
Contracts
 
Recorded
Investment
 
(dollars in thousands)
Commercial, secured by real estate
1

 
$
171

 
—

 
$
—

 
1

 
$
171

 
—

 
$
—