Allowance for Credit Losses and Credit Quality (Tables)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Schedule of Allowance for Loan Losses for Covered Loan and Non-Covered Loan Portfolios

A summary of changes in the allowance for credit losses for the covered loan and non-covered loan portfolios for the nine months ended September 30, is as follows:

	2015
	Non-covered loans
(Dollars in thousands)	Legacy Loans			Acquired Loans			Covered Loans			Total
Allowance for loans losses at beginning of period	$	76,174		$	9,193		$	44,764		$	130,131
Provision for loan losses before benefit attributable to FDIC loss share agreements	17,743			143			(31		)	17,855
Adjustment attributable to FDIC loss share arrangements	—			—			1,342			1,342
Net provision for loan losses	17,743			143			1,311			19,197
Adjustment attributable to FDIC loss share arrangements	—			—			(1,342		)	(1,342		)
Transfer of balance to OREO	—			(209		)	(357		)	(566		)
Transfer of balance to non-covered	—			28,700			(28,700		)	—
Loans charged-off	(12,073		)	(8,973		)	(1,188		)	(22,234		)
Recoveries	4,556			504			8			5,068
Allowance for loans losses at end of period	86,400			29,358			14,496			130,254
Reserve for unfunded commitments at beginning of period	11,801			—			—			11,801
Provision for unfunded lending commitments	2,724			—			—			2,724
Reserve for unfunded commitments at end of period	14,525			—			—			14,525
Allowance for credit losses at end of period	$	100,925		$	29,358		$	14,496		$	144,779

	2014
	Non-covered loans
(Dollars in thousands)	Legacy Loans			Acquired Loans			Covered Loans			Total
Allowance for loans losses at beginning of period	$	67,342		$	4,557		$	71,175		$	143,074
Provision for (Reversal of) loan losses before benefit attributable to FDIC loss share agreements	9,635			(1,795		)	5,878			13,718
Adjustment attributable to FDIC loss share arrangements	—			—			(1,153		)	(1,153		)
Net provision for (reversal of) loan losses	9,635			(1,795		)	4,725			12,565
Adjustment attributable to FDIC loss share arrangements	—			—			1,153			1,153
Transfer of balance to OREO	—			(207		)	(5,171		)	(5,378		)
Loans charged-off	(8,242		)	(586		)	(12,823		)	(21,651		)
Recoveries	4,338			401			38			4,777
Allowance for loans losses at end of period	73,073			2,370			59,097			134,540
Reserve for unfunded commitments at beginning of period	11,147			—			—			11,147
Provision for unfunded lending commitments	952			—			—			952
Reserve for unfunded commitments at end of period	12,099			—			—			12,099
Allowance for credit losses at end of period	$	85,172		$	2,370		$	59,097		$	146,639

A summary of changes in the allowance for credit losses for non-covered loans, by loan portfolio type, for the nine months ended September 30, is as follows:

	2015
	Commercial Real Estate			Commercial and Industrial			Energy-related			Residential Mortgage
(Dollars in thousands)													Consumer			Total
Allowance for loans losses at beginning of period	$	32,630		$	26,486		$	5,999		$	2,875		$	17,377		$	85,367
(Reversal of) Provision for loan losses	(356		)	1,327			9,339			1,897			5,679			17,886
Transfer of balance to OREO	174			(169		)	—			(143		)	(71		)	(209		)
Transfer of balance to non-covered	20,763			1,445			—			—			6,492			28,700
Loans charged off	(7,091		)	(1,162		)	(3		)	(283		)	(12,507		)	(21,046		)
Recoveries	1,543			164			—			48			3,305			5,060
Allowance for loans losses at end of period	47,663			28,091			15,335			4,394			20,275			115,758
Reserve for unfunded commitments
Balance at beginning of period	3,370			3,733			1,596			168			2,934			11,801
(Reversal of) Provision for unfunded commitments	218			(149		)	2,037			650			(32		)	2,724
Balance at end of period	3,588			3,584			3,633			818			2,902			14,525
Allowance for credit losses at end of period	$	51,251		$	31,675		$	18,968		$	5,212		$	23,177		$	130,283
Allowance on loans individually evaluated for impairment	$	883		$	817		$	—		$	—		$	16		$	1,716
Allowance on loans collectively evaluated for impairment	50,368			30,858			18,968			5,212			23,161			128,567
Loans, net of unearned income:
Balance at end of period	$	5,936,161		$	3,291,552		$	719,456		$	1,070,015		$	2,846,294		$	13,863,478
Balance at end of period individually evaluated for impairment	27,299			25,231			—			—			214			52,744
Balance at end of period collectively evaluated for impairment	5,874,262			3,255,580			719,456			1,056,797			2,838,500			13,744,595
Balance at end of period acquired with deteriorated credit quality	34,600			10,741			—			13,218			7,580			66,139
	2014
	Commercial Real Estate			Commercial and Industrial			Energy-related			Residential Mortgage
(Dollars in thousands)													Consumer			Total
Allowance for loans losses at beginning of period	$	26,126		$	22,101		$	6,878		$	2,546		$	14,248		$	71,899
Provision for (Reversal of) loan losses	630			3,283			(1,115		)	514			4,528			7,840
Transfer of balance to OREO	—			(130		)	—			(12		)	(65		)	(207		)
Loans charged off	(1,214		)	(1,097		)	—			(607		)	(5,910		)	(8,828		)
Recoveries	2,209			93			—			134			2,303			4,739
Allowance for loans losses at end of period	27,751			24,250			5,763			2,575			15,104			75,443
Reserve for unfunded commitments at beginning of period	3,071			1,814			3,043			72			3,147			11,147
Provision for unfunded commitments	671			1,674			(1,427		)	11			23			952
Reserve for unfunded commitments at end of period	3,742			3,488			1,616			83			3,170			12,099
Allowance for credit losses at end of period	$	31,493		$	27,738		$	7,379		$	2,658		$	18,274		$	87,542
Allowance on loans individually evaluated for impairment	$	25		$	—		$	—		$	—		$	—		$	25
Allowance on loans collectively evaluated for impairment	31,468			27,738			7,379			2,658			18,274			87,517
Loans, net of unearned income:
Balance at end of period	$	3,988,172		$	2,398,010		$	839,823		$	931,803		$	2,398,890		$	10,556,698

Balance at end of period individually evaluated for impairment	7,357	3,276	—	—	706	11,339
Balance at end of period collectively evaluated for impairment	3,965,754	2,392,172	839,823	931,643	2,396,477	10,525,869
Balance at end of period acquired with deteriorated credit quality	15,061	2,562	—	160	1,707	19,490

A summary of changes in the allowance for credit losses for covered loans, by loan portfolio type, for the nine months ended September 30, is as follows:

	2015
	Commercial Real Estate			Commercial and Industrial			Residential Mortgage
(Dollars in thousands)										Consumer			Total
Allowance for loans losses at beginning of period	$	24,072		$	1,235		$	6,286		$	13,171		$	44,764
Provision for loan losses	217			152			841			101			1,311
(Decrease) Increase in FDIC loss share receivable	748			59			(277		)	(1,872		)	(1,342		)
Transfer of balance to OREO	—			(1		)	(339		)	(17		)	(357		)
Transfer of balance to non-covered	(20,763		)	(1,445		)	—			(6,492		)	(28,700		)
Loans charged off	(1,188		)	—			—			—			(1,188		)
Recoveries	—			—			8			—			8
Allowance for loans losses at end of period	$	3,086		$	—		$	6,519		$	4,891		$	14,496
Allowance on loans individually evaluated for impairment	$	—		$	—		$	—		$	—		$	—
Allowance on loans collectively evaluated for impairment	3,086			—			6,519			4,891			14,496
Loans, net of unearned income:
Balance at end of period	$	43,590		$	11,419		$	119,926		$	78,606		$	253,541
Balance at end of period individually evaluated for impairment	—			—			—			—			—
Balance at end of period collectively evaluated for impairment	25,014			10,852			94,826			70,548			201,240
Balance at end of period acquired with deteriorated credit quality	18,576			567			25,100			8,058			52,301
	2014
	Commercial Real Estate			Commercial and Industrial			Residential Mortgage
(Dollars in thousands)										Consumer			Total
Allowance for loans losses at beginning of period	$	38,772		$	5,380		$	10,889		$	16,134		$	71,175
Provision for loan losses	2,544			376			971			834			4,725
(Decrease) Increase in FDIC loss share receivable	734			609			(2,911		)	2,721			1,153
Transfer of balance to OREO	(1,874		)	(1,162		)	(648		)	(1,487		)	(5,171		)
Loans charged off	(9,578		)	(2,192		)	(90		)	(963		)	(12,823		)
Recoveries	38			—			—			—			38
Allowance for loans losses at end of period	$	30,636		$	3,011		$	8,211		$	17,239		$	59,097
Allowance on loans individually evaluated for impairment	$	—		$	—		$	—		$	—		$	—
Allowance on loans collectively evaluated for impairment	30,636			3,011			8,211			17,239			59,097
Loans, net of unearned income:
Balance at end of period	$	247,156		$	34,234		$	130,976		$	111,823		$	524,189
Balance at end of period individually evaluated for impairment	—			—			—			—			—
Balance at end of period collectively evaluated for impairment	242,478			33,614			106,672			95,124			477,888
Balance at end of period acquired with deteriorated credit quality	4,678			620			24,304			16,699			46,301

Investment in Covered Loans and Non-Covered Loans by Credit Quality Indicator

The Company’s investment in non-covered loans by credit quality indicator is presented in the following tables. Because of the difference in accounting for acquired loans, the tables below further segregate the Company’s non-covered loans between acquired loans and loans that were not acquired. Loan premiums/discounts in the tables below represent the adjustment of non-covered acquired loans to fair value at the acquisition date, as adjusted for income accretion and changes in cash flow estimates in subsequent periods. Asset risk classifications for commercial loans reflect the classification as of September 30, 2015 and December 31, 2014. Credit quality information in the tables below includes loans acquired at the gross loan balance, prior to the application of premiums/discounts, at September 30, 2015 and December 31, 2014.

	Legacy loans
	September 30, 2015												December 31, 2014
(Dollars in thousands)	Pass		Special Mention		Sub-standard		Doubtful		Loss		Total		Pass		Special Mention		Sub-standard		Doubtful		Total
Commercial real estate - Construction	$	557,603	$	100	$	1,503	$	—	$	2	$	559,208	$	483,930	$	240	$	69	$	—	$	484,239
Commercial real estate - Other	3,699,714		24,473		37,874		454		—		3,762,515		3,120,370		49,847		22,193		162		3,192,572
Commercial and industrial	2,732,122		18,821		27,763		579		218		2,779,503		2,414,293		7,330		28,965		1,933		2,452,521
Energy-related	656,525		15,827		41,583		—		—		713,935		872,842		—		24		—		872,866
Total	$	7,645,964	$	59,221	$	108,723	$	1,033	$	220	$	7,815,161	$	6,891,435	$	57,417	$	51,251	$	2,095	$	7,002,198

	Legacy loans
	September 30, 2015						December 31, 2014
(Dollars in thousands)	Current		30+ Days Past Due		Total		Current		30+ Days Past Due		Total
Residential mortgage	$	640,927	$	19,616	$	660,543	$	508,789	$	18,905	$	527,694
Consumer - Home equity	1,480,368		8,428		1,488,796		1,278,865		12,111		1,290,976
Consumer - Indirect automobile	277,996		3,526		281,522		392,504		4,262		396,766
Consumer - Credit card	76,018		698		76,716		71,297		1,448		72,745
Consumer - Other	454,361		2,159		456,520		375,853		2,482		378,335
Total	$	2,929,670	$	34,427	$	2,964,097	$	2,627,308	$	39,208	$	2,666,516

	Non-covered acquired loans
	September 30, 2015															December 31, 2014
(Dollars in thousands)	Pass		Special Mention		Sub- standard		Doubtful		Loss		Discount			Total		Pass		Special Mention		Sub- standard		Doubtful		Discount			Total
Commercial real estate-Construction	$	114,684	$	1,226	$	8,538	$	861	$	—	$	(1,548	)	$	123,761	$	24,118	$	2,006	$	4,624	$	—	$	(1,170	)	$	29,578
Commercial real estate - Other	1,434,860		23,421		69,084		3,256		—		(39,944		)	1,490,677		443,450		12,794		49,139		—		(39,119		)	466,264
Commercial and industrial	498,286		3,671		12,905		1,022		539		(4,374		)	512,049		86,213		1,861		4,807		257		(5,224		)	87,914
Energy-related	3,358		771		1,392		—		—		—			5,521		7,731		—		11		—		—			7,742
Total	$	2,051,188	$	29,089	$	91,919	$	5,139	$	539	$	(45,866	)	$	2,132,008	$	561,512	$	16,661	$	58,581	$	257	$	(45,513	)	$	591,498

	Non-covered acquired loans
	September 30, 2015									December 31, 2014
(Dollars in thousands)	Current		30+ Days Past Due		Premium (discount)			Total		Current		30+ Days Past Due		Premium (discount)			Total
Residential mortgage	$	407,673	$	6,401	$	(4,602	)	$	409,472	$	418,552	$	11,858	$	(5,831	)	$	424,579
Consumer - Home equity	452,928		7,381		(10,644		)	449,665		216,310		9,808		(8,419		)	217,699
Consumer - Indirect automobile	142		24		(39		)	127		393		39		(40		)	392
Consumer - Other	95,353		1,355		(3,760		)	92,948		94,315		3,520		(4,217		)	93,618
Total	$	956,096	$	15,161	$	(19,045	)	$	952,212	$	729,570	$	25,225	$	(18,507	)	$	736,288

The Company’s investment in covered loans by credit quality indicator is presented in the following table. Loan premiums/discounts in the tables below represent the adjustment of covered loans to net book value before allowance at the reporting date.

	Covered loans
	September 30, 2015											December 31, 2014
(Dollars in thousands)	Pass		Special Mention		Sub- standard		Doubtful		Total			Pass		Special Mention		Sub- standard		Doubtful		Total
Commercial real estate - Construction	$	113	$	820	$	23	$	1,091	$	2,047		$	34,731	$	1,928	$	8,008	$	—	$	44,667
Commercial real estate - Other	25,820		1,922		22,705		754		51,201			87,509		20,422		51,252		—		159,183
Commercial and industrial	5,637		810		6,846		2,358		15,651			23,380		395		9,275		—		33,050
	$	31,570	$	3,552	$	29,574	$	4,203	$	68,899		$	145,620	$	22,745	$	68,535	$	—	$	236,900
Discount									(13,890		)									(16,514		)
Total									$	55,009										$	220,386

	Covered loans
	September 30, 2015									December 31, 2014
			30+ Days Past Due		Premium (discount)							30+ Days Past Due		Premium (discount)
(Dollars in thousands)	Current							Total		Current							Total
Residential mortgage	$	128,804	$	20,672	$	(29,550	)	$	119,926	$	140,628	$	22,058	$	(34,662	)	$	128,024
Consumer - Home equity	85,772		9,643		(18,189		)	77,226		99,478		16,542		(23,590		)	92,430
Consumer - Credit card	542		27		—			569		614		34		—			648
Consumer - Other	216		15		580			811		337		18		2,701			3,056
Total	$	215,334	$	30,357	$	(47,159	)	$	198,532	$	241,057	$	38,652	$	(55,551	)	$	224,158

Schedule of Investment in Legacy Impaired Loan

Information on the Company’s investment in legacy impaired loans is presented in the following tables as of and for the periods indicated.

	September 30, 2015							December 31, 2014
	Recorded Investment		Unpaid Principal Balance		Related Allowance			Recorded Investment		Unpaid Principal Balance		Related Allowance
(Dollars in thousands)
With no related allowance recorded:
Commercial real estate	$	16,491	$	16,491	$	—		$	6,680	$	6,680	$	—
Commercial and industrial	20,360		20,360		—			2,483		2,483		—
Energy-related	3,384		3,384		—			—		—		—
Consumer - Home equity	214		214		—			682		682		—
With an allowance recorded:
Commercial real estate	10,681		11,566		(885		)	1,044		1,069		(25		)
Commercial and industrial	1,009		1,829		(820		)	1,209		1,617		(408		)
Energy-related	91		94		(3		)	27		27		—
Residential mortgage	14,808		14,879		(71		)	14,111		14,363		(252		)
Consumer - Home equity	5,248		5,278		(30		)	7,121		7,165		(44		)
Consumer - Indirect automobile	1,120		1,129		(9		)	1,410		1,419		(9		)
Consumer - Credit card	329		335		(6		)	1,012		1,032		(20		)
Consumer - Other	895		920		(25		)	781		790		(9		)
Total	$	74,630	$	76,479	$	(1,849	)	$	36,560	$	37,327	$	(767	)
Total commercial loans	$	52,016	$	53,724	$	(1,708	)	$	11,443	$	11,876	$	(433	)
Total mortgage loans	14,808		14,879		(71		)	14,111		14,363		(252		)
Total consumer loans	7,806		7,876		(70		)	11,006		11,088		(82		)

	Three Months Ended   September 30, 2015				Three Months Ended   September 30, 2014				Nine Months Ended   September 30, 2015				Nine Months Ended   September 30, 2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
(Dollars in thousands)
With no related allowance recorded:
Commercial real estate	$	16,018	$	37	$	7,026	$	6	$	16,036	$	79	7,114		20
Commercial and industrial	20,055		159		3,553		11		20,630		465		4,417		48
Energy-related	3,409		—		—		—		3,425		—		—		—
Consumer - Home equity	215		3		692		—		204		4		700		14
With an allowance recorded:
Commercial real estate	11,649		128		1,631		—		8,247		385		1,533		91
Commercial and industrial	2,121		—		312		—		2,634		—		584		9
Energy-related	99		—		—		—		106		—		—		—
Residential mortgage	15,008		—		17,305		—		15,100		—		16,341		119
Consumer - Home equity	5,344		—		7,177		5		5,462		—		7,404		40
Consumer - Indirect automobile	1,361		—		1,544		—		1,551		—		1,720		27
Consumer - Credit card	721		—		1,051		—		1,038		—		724		—
Consumer - Other	1,030		—		470		—		1,068		—		489		11
Total	$	77,030	$	327	$	40,761	$	22	$	75,501	$	933	$	41,026	$	379
Total commercial loans	$	53,351	$	324	$	12,522	$	17	$	51,078	$	929	$	13,648	168
Total mortgage loans	15,008		—		17,305		—		15,100		—		16,341		119
Total consumer loans	8,671		3		10,934		5		9,323		4		11,037		92