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Loans and Leases and Other Real Estate (Tables)
 12 Months Ended
Dec. 31, 2018
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,
  
 
2018
 
2017
 
 
(in thousands)
Commercial, secured by real estate
 
$
3,057,779

 
$
2,831,184

Commercial, industrial and other
 
336,735

 
340,400

Leases
 
87,925

 
75,039

Real estate - residential mortgage
 
329,854

 
322,880

Real estate - construction
 
319,545

 
264,908

Home equity and consumer
 
328,609

 
322,269

Total loans and leases
 
4,460,447

 
4,156,680

Less deferred fees
 
(3,714
)
 
(3,960
)
Loans and leases, net of deferred fees
 
$
4,456,733

 
$
4,152,720
Schedule of Changes in Accretable Yield
The following table presents changes in the accretable yield for PCI loans (in thousands):
 
 
Years Ended December 31,
  
 
2018
 
2017
Balance, beginning of period
 
$
129

 
$
145

Accretion
 
(182
)
 
(202
)
Net reclassification non-accretable difference
 
134

 
186

Balance, end of period
 
$
81

 
$
129
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,
  
 
2018
 
2017
Commercial, secured by real estate
 
$
7,192

 
$
5,890

Commercial, industrial and other
 
1,019

 
184

Leases
 
501

 
144

Real estate - residential mortgage
 
1,986

 
3,860

Real estate - construction
 
—

 
1,472

Home equity and consumer
 
1,432

 
2,105

Total non-accrual loans and leases
 
12,130

 
13,655

Other real estate and other repossessed assets
 
830

 
843

Total non-performing assets
 
$
12,960

 
$
14,498

Troubled debt restructurings, still accruing
 
$
9,293

 
$
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 December 31, 2018 and 2017, is as follows:
December 31, 2018
 
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
 
$
1,477

 
$
639

 
$
2,237

 
$
4,353

 
$
3,053,426

 
$
3,057,779

 
$
—

Commercial, industrial and other
 
173

 
243

 
750

 
1,166

 
335,569

 
336,735

 
—

Leases
 
533

 
13

 
501

 
1,047

 
86,878

 
87,925

 
—

Real estate - residential mortgage
 
743

 
111

 
1,776

 
2,630

 
327,224

 
329,854

 
—

Real estate - construction
 
—

 
—

 
—

 
—

 
319,545

 
319,545

 
—

Home equity and consumer
 
1,917

 
216

 
850

 
2,983

 
325,626

 
328,609

 
—

 
 
$
4,843

 
$
1,222

 
$
6,114

 
$
12,179

 
$
4,448,268

 
$
4,460,447

 
$
—

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
Impaired Loans with and without Specific Allowances
The following tables represent the Company's impaired loans at December 31, 2018, 2017 and 2016.
December 31, 2018
 
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
 
$
9,284

 
$
9,829

 
$
—

 
$
188

 
$
7,369

Commercial, industrial and other
 
1,151

 
1,449

 
—

 
19

 
1,834

Leases
 
301

 
597

 
—

 
—

 
376

Real estate - residential mortgage
 
—

 
—

 
—

 
4

 
242

Real estate - construction
 
—

 
—

 
—

 
—

 
726

Home equity and consumer
 
—

 
—

 
—

 
—

 
—

Loans with related allowance:
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
 
7,270

 
7,597

 
307

 
317

 
7,594

Commercial, industrial and other
 
209

 
209

 
7

 
12

 
209

Leases
 
30

 
30

 
14

 
—

 
19

Real estate - residential mortgage
 
730

 
884

 
4

 
20

 
745

Real estate - construction
 
—

 
—

 
—

 
—

 
—

Home equity and consumer
 
727

 
765

 
6

 
32

 
898

Total:
 
 
 
 
 
 
 
 
 
 
Commercial, secured by real estate
 
$
16,554

 
$
17,426

 
$
307

 
$
505

 
$
14,963

Commercial, industrial and other
 
1,360

 
1,658

 
7

 
31

 
2,043

Leases
 
331

 
627

 
14

 
—

 
395

Real estate - residential mortgage
 
730

 
884

 
4

 
24

 
987

Real estate - construction
 
—

 
—

 
—

 
—

 
726

Home equity and consumer
 
727

 
765

 
6

 
32

 
898

 
 
$
19,702

 
$
21,360

 
$
338

 
$
592

 
$
20,012

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

 
$
1,119

 
$
—

2
 
—

 
18,462

 
—

3
 
69,995

 
36,367

 
—

4
 
933,577

 
91,145

 
17,375

5
 
1,910,423

 
168,474

 
297,625

5W - Watch
 
61,626

 
7,798

 
3,493

6 - Other assets especially mentioned
 
38,844

 
2,033

 
—

7 - Substandard
 
43,314

 
11,337

 
1,052

8 - Doubtful
 
—

 
—

 
—

9 - Loss
 
—

 
—

 
—

Total
 
$
3,057,779

 
$
336,735

 
$
319,545

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
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, 2018 and 2017:
December 31, 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
 
(421
)
 
(1,452
)
 
(507
)
 
(131
)
 
(248
)
 
(588
)
 
(3,347
)
Recoveries
 
468

 
317

 
23

 
10

 
17

 
332

 
1,167

Provision
 
2,130

 
564

 
841

 
130

 
515

 
233

 
4,413

Ending balance
 
$
27,881

 
$
1,742

 
$
987

 
$
1,566

 
$
3,015

 
$
2,497

 
$
37,688

Allowance for Loan and Leases Losses
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: Individually evaluated for impairment
 
$
307

 
$
7

 
$
14

 
$
4

 
$
—

 
$
6

 
$
338

Ending balance: Collectively evaluated for impairment
 
27,574

 
1,735

 
973

 
1,562

 
3,015

 
2,491

 
37,350

Ending balance
 
$
27,881

 
$
1,742

 
$
987

 
$
1,566

 
$
3,015

 
$
2,497

 
$
37,688

Loans and Leases
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending balance: Individually evaluated for impairment
 
$
16,554

 
$
1,360

 
$
331

 
$
730

 
$
—

 
$
727

 
$
19,702

Ending balance: Collectively evaluated for impairment
 
3,040,573

 
335,375

 
87,594

 
329,124

 
319,545

 
327,882

 
4,440,093

Ending balance: Loans acquired with deteriorated credit quality
 
652

 
—

 
—

 
—

 
—

 
—

 
652

Ending balance (1)
 
$
3,057,779

 
$
336,735

 
$
87,925

 
$
329,854

 
$
319,545

 
$
328,609

 
$
4,460,447

(1)
Excludes deferred fees
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

Allowance for Loan and Leases Losses
 
 
 
 
 
 
 
 
 
 
 
 
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
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, 2018
 
For the Year Ended December 31, 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
 
5

 
$
3,348

 
$
3,348

 
8

 
$
4,618

 
$
4,618

Commercial, industrial and other
 
1

 
950

 
950

 
2

 
124

 
124

Leases
 
1

 
15

 
15

 
6

 
65

 
65

 
 
7

 
$
4,313

 
$
4,313

 
16

 
$
4,807

 
$
4,807
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, 2018 and 2017 that have defaulted during the subsequent twelve months:
  
 
For the Year Ended December 31, 2018
 
For the Year Ended December 31, 2017
  
 
Number of
Contracts
 
Recorded
Investment
 
Number of
Contracts
 
Recorded
Investment
 
 
(dollars in thousands)
Commercial, secured by real estate
 
1

 
$
171

 
—

 
$
—

Leases
 
—

 
$
—

 
2

 
$
35

 
 
1

 
$
171

 
2

 
$
35
Summary of Future Minimum Lease Payments of Lease Receivables
Future minimum lease payments of lease receivables are expected as follows (in thousands):
2019
$
30,384

2020
24,297

2021
18,089

2022
10,814

2023
3,969

Thereafter
372

 
$
87,925