LOANS AND LEASES

Loans and leases consist of the following for the periods indicated:



(Dollars in thousands)	September 30, 2018		December 31, 2017
Commercial loans and leases:
Real estate - construction	$	1,127,988	$	1,240,396
Real estate - owner-occupied	2,458,964		2,375,321
Real estate - non-owner-occupied	5,794,931		5,322,513
Commercial and industrial ⁽¹⁾	5,581,040		5,135,067
	14,962,923		14,073,297

Residential mortgage loans	4,300,163		3,056,352

Consumer loans:
Home equity	2,350,176		2,292,275
Other	730,644		656,257
	3,080,820		2,948,532
Total	$	22,343,906	$	20,078,181


⁽¹⁾	Includes equipment financing leases

Net deferred loan origination fees were $29.6 million and $29.3 million at September 30, 2018 and December 31, 2017, respectively. Total net discount on the Company's loans was $143.2 million and $159.3 million at September 30, 2018 and December 31, 2017, respectively, of which $75.6 million and $94.7 million was related to non-impaired loans. Net loan discounts include preliminary discounts recorded on Gibraltar loans, which are subject to change upon receipt of final fair value estimates during the measurement period.

In addition to loans issued in the normal course of business, the Company considers overdrafts on customer deposit accounts to be loans and reclassifies these overdrafts as loans in its consolidated balance sheets. At September 30, 2018 and December 31, 2017, overdrafts of $6.3 million and $7.4 million, respectively, have been reclassified to loans.

Loans with carrying values of $7.5 billion and $6.6 billion were pledged as collateral for borrowings at September 30, 2018 and December 31, 2017, respectively.

Aging Analysis

The following tables provide an analysis of the aging of loans as of September 30, 2018 and December 31, 2017. Past due and non-accrual loan amounts exclude acquired impaired loans, even if contractually past due or if the Company does not expect to receive payment in full, as the Company is currently accreting interest income over the expected life of the loans.



	September 30, 2018
	Accruing
(Dollars in thousands)	Current or Less Than 30 days Past Due		30-59 days		60-89 days		> 90 days		Total Past Due		Non-accrual		Acquired Impaired		Total
Real estate- construction	$	1,105,488	$	75	$	830	$	—	$	905	$	1,122	$	20,473	$	1,127,988
Real estate- owner-occupied	2,353,176		1,792		872		2,930		5,594		19,089		81,105		2,458,964
Real estate- non-owner-occupied	5,678,485		10,995		4,266		505		15,766		20,497		80,183		5,794,931
Commercial and industrial	5,474,922		8,083		3,568		614		12,265		66,815		27,038		5,581,040
Residential mortgage	4,132,941		4,597		18,915		8,403		31,915		15,898		119,409		4,300,163
Consumer - home equity	2,246,693		8,727		2,963		—		11,690		17,854		73,939		2,350,176
Consumer - other	720,666		3,934		1,007		—		4,941		2,320		2,717		730,644
Total	$	21,712,371	$	38,203	$	32,421	$	12,452	$	83,076	$	143,595	$	404,864	$	22,343,906



	December 31, 2017
	Accruing
(Dollars in thousands)	Current or Less Than 30 days Past Due		30-59 days		60-89 days		> 90 days		Total Past Due		Non-accrual		Acquired Impaired		Total
Real estate- construction	$	1,197,766	$	269	$	—	$	458	$	727	$	2,635	$	39,268	$	1,240,396
Real estate- owner-occupied	2,243,923		1,631		659		74		2,364		24,457		104,577		2,375,321
Real estate- non-owner-occupied	5,220,648		2,086		6,405		887		9,378		6,811		85,676		5,322,513
Commercial and industrial	5,014,438		5,788		5,726		146		11,660		77,823		31,146		5,135,067
Residential mortgage	2,877,048		10,083		8,136		5,317		23,536		17,387		138,381		3,056,352
Consumer - home equity	2,186,554		11,675		2,947		18		14,640		12,365		78,716		2,292,275
Consumer - other	642,244		5,286		1,026		—		6,312		3,910		3,791		656,257
Total	$	19,382,621	$	36,818	$	24,899	$	6,900	$	68,617	$	145,388	$	481,555	$	20,078,181

Acquired Loans

As discussed in Note 3, during the third quarter of 2017, the Company acquired loans with fair values of $4.0 billion from Sabadell United. Certain loans that were acquired in this transaction were covered by loss share agreements between the FDIC and Sabadell United, which were assumed in connection with the Company's acquisition of Sabadell United and afforded IBERIABANK loss protection. In September 2018, the Company terminated its loss share agreements with the FDIC. As a result, there were no covered loans at September 30, 2018. Covered loans were $158.6 million at December 31, 2017. Certain acquired loans from Sabadell United were to customers with addresses outside of the United States. Foreign loans, denominated in U.S. dollars, totaled $228.2 million and $325.5 million at September 30, 2018 and December 31, 2017, respectively.

During the first quarter of 2018, the Company acquired loans with fair values of $1.5 billion from Gibraltar based on preliminary purchase accounting adjustments.

Of the total loans acquired from Gibraltar, $1.46 billion were determined to have no evidence of deteriorated credit quality and are accounted for under ASC Topics 310-10 and 310-20. The remaining $10.2 million were determined to exhibit deteriorated credit quality since origination under ASC 310-30. The tables below show the fair value estimates of loans acquired from Gibraltar for these two subsections of the portfolio as of the acquisition date. These amounts are subject to change due to the finalization of purchase accounting adjustments.



(Dollars in thousands)	Acquired Non-Impaired Loans
Contractually required principal and interest at acquisition	$	1,695,918
Expected losses and foregone interest	(19,952		)
Cash flows expected to be collected at acquisition	1,675,966
Fair value of acquired loans at acquisition	$	1,455,044



(Dollars in thousands)	Acquired Impaired Loans
Contractually required principal and interest at acquisition	$	43,779
Non-accretable difference (expected losses and foregone interest)	(31,174		)
Cash flows expected to be collected at acquisition	12,605
Accretable yield	(2,371		)
Basis in acquired loans at acquisition	$	10,234

The following is a summary of changes in the accretable difference for all loans accounted for under ASC 310-30 during the nine months ended September 30:



(Dollars in thousands)	2018			2017
Balance at beginning of period	$	152,623		$	175,054
Additions	2,371			32,937
Transfers from non-accretable difference to accretable yield	(4		)	4,977
Accretion	(37,115		)	(42,435		)
Changes in expected cash flows not affecting non-accretable differences⁽¹⁾	21,092			(242		)
Balance at end of period	$	138,967		$	170,291


⁽¹⁾	Includes changes in cash flows expected to be collected due to the impact of changes in actual or expected timing of liquidation events, modifications, changes in interest rates and changes in prepayment assumptions.

Troubled Debt Restructurings

Information about the Company’s troubled debt restructurings ("TDRs") at September 30, 2018 and 2017 is presented in the following tables. Modifications of loans that are accounted for within a pool under ASC Topic 310-30 are excluded as TDRs. Accordingly, such modifications do not result in the removal of those loans from the pool, even if the modification of those loans would otherwise be considered a TDR. As a result, all such acquired loans that would otherwise meet the criteria for classification as a TDR are excluded from the tables below.

TDRs totaling $46.0 million and $51.5 million occurred during the nine months ended September 30, 2018 and 2017, respectively, through modification of the original loan terms.

The following table provides information on how the TDRs were modified during the periods indicated:



	Three Months Ended September 30				Nine Months Ended September 30,
(Dollars in thousands)	2018		2017		2018		2017
Extended maturities	$	3,658	$	3,184	$	10,020	$	18,177
Maturity and interest rate adjustment	267		204		368		5,151
Movement to or extension of interest-rate only payments	—		3,560		48		3,692
Interest rate adjustment	—		—		101		25
Forbearance	802		841		14,386		5,528
Other concession(s) ⁽¹⁾	1,810		16,797		21,031		18,944
Total	$	6,537	$	24,586	$	45,954	$	51,517


⁽¹⁾	Other concessions may include covenant waivers, forgiveness of principal or interest associated with a customer bankruptcy, or a combination of any of the above concessions.

Of the $46.0 million of TDRs occurring during the nine months ended September 30, 2018, $20.2 million are on accrual status and $25.8 million are on non-accrual status. Of the $51.5 million of TDRs occurring during the nine months ended September 30, 2017, $40.5 million were on accrual status and $11.0 million were on non-accrual status. The following table presents the end of period balance for loans modified in a TDR during the periods indicated:



	Three Months Ended September 30,
	2018					2017
(In thousands, except number of loans)	Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Real estate- construction	—	$	—	$	—	2	$	1,166	$	1,164
Real estate- owner-occupied	1	2,312		2,312		3	717		713
Real estate- non-owner-occupied	6	1,818		1,790		10	5,306		5,298
Commercial and industrial	9	829		804		11	11,650		12,502
Residential mortgage	3	257		255		7	409		392
Consumer - home equity	15	1,152		1,124		38	3,495		3,479
Consumer - other	11	352		252		36	1,078		1,038
Total	45	$	6,720	$	6,537	107	$	23,821	$	24,586



	Nine Months Ended September 30,
	2018					2017
(In thousands, except number of loans)	Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment		Number of Loans	Pre-modification Outstanding Recorded Investment		Post-modification Outstanding Recorded Investment
Real estate- construction	1	$	1,950	$	976	2	$	1,166	$	1,164
Real estate- owner-occupied	8	15,233		13,373		5	2,447		2,411
Real estate- non-owner-occupied	13	3,228		3,064		21	9,645		11,505
Commercial and industrial	32	32,827		22,769		44	18,743		19,399
Residential mortgage	9	898		837		16	1,126		1,030
Consumer - home equity	47	4,130		4,047		99	13,573		13,471
Consumer - other	53	1,056		888		106	2,745		2,537
Total	163	$	59,322	$	45,954	293	$	49,445	$	51,517

Information detailing TDRs that defaulted during the three-month and nine-month periods ended September 30, 2018 and 2017, and were modified in the previous twelve months (i.e., the twelve months prior to the default) is presented in the following tables. The Company has defined a default as any loan with a payment that is currently past due greater than 30 days, or was past due greater than 30 days at any point during the respective periods, or since the date of modification, whichever is shorter.



	Three Months Ended September 30,
	2018			2017
(In thousands, except number of loans)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Real estate- construction	—	$	—	2	$	1,164
Real estate- owner-occupied	1	929		4	1,304
Real estate- non-owner-occupied	1	7		11	2,206
Commercial and industrial	2	127		16	1,008
Residential mortgage	—	—		13	819
Consumer - home equity	4	380		23	2,150
Consumer - other	6	86		49	795
Total	14	$	1,529	118	$	9,446



	Nine Months Ended September 30,
	2018			2017
(In thousands, except number of loans)	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
Real estate- construction	—	$	—	2	$	1,164
Real estate- owner-occupied	6	10,101		8	3,234
Real estate- non-owner-occupied	6	1,084		16	4,929
Commercial and industrial	12	3,632		31	5,939
Residential mortgage	8	912		18	1,243
Consumer - home equity	17	1,978		34	3,215
Consumer - other	39	488		65	1,264
Total	88	$	18,195	174	$	20,988