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Allowance for Credit Losses and Credit Quality (Tables)
 9 Months Ended
Sep. 30, 2018
Receivables [Abstract]  
Schedule of Allowance for Loan Losses for Covered and Non-Covered Loan Portfolios
A summary of changes in the allowance for credit losses for the nine months ended September 30 is as follows:
(Dollars in thousands)
 
2018
 
2017
Allowance for credit losses
 
 
 
 
Allowance for loan and lease losses at beginning of period
 
$
140,891

 
$
144,719

Provision for loan and lease losses
 
26,678

 
36,718

Transfer of balance to OREO and other
 
(5,709
)
 
963

Charge-offs
 
(34,740
)
 
(49,939
)
Recoveries
 
9,830

 
4,167

Allowance for loan and lease losses at end of period
 
$
136,950

 
$
136,628

 
 
 
 
 
Reserve for unfunded commitments at beginning of period
 
$
13,208

 
$
11,241

Balance created in acquisition accounting
 
900

 
7,626

Provision for unfunded lending commitments
 
613

 
2,165

Reserve for unfunded commitments at end of period
 
$
14,721

 
$
21,032

Allowance for credit losses at end of period
 
$
151,671

 
$
157,660

A summary of changes in the allowance for credit losses, by loan portfolio type, for the nine months ended September 30 is as follows:
 
2018
(Dollars in thousands)
Commercial Real Estate
 
Commercial and Industrial
 
Residential Mortgage
 
Consumer
 
Total
Allowance for loan and lease losses at beginning of period
$
54,201

 
$
53,916

 
$
9,117

 
$
23,657

 
$
140,891

Provision for (Reversal of) loan and lease losses
(4,020
)
 
20,372

 
2,318

 
8,008

 
26,678

Transfer of balance to OREO and other
(1,556
)
 
(814
)
 
(45
)
 
(3,294
)
 
(5,709
)
Charge-offs
(1,281
)
 
(22,447
)
 
(365
)
 
(10,647
)
 
(34,740
)
Recoveries
1,019

 
5,665

 
53

 
3,093

 
9,830

Allowance for loan and lease losses at end of period
$
48,363

 
$
56,692

 
$
11,078

 
$
20,817

 
$
136,950

 
 
 
 
 
 
 
 
 
 
Reserve for unfunded commitments at beginning of period
$
4,531

 
$
5,309

 
$
555

 
$
2,813

 
$
13,208

Balance created in acquisition accounting
129

 
81

 
—

 
690

 
900

Provision for (Reversal of) unfunded commitments
(134
)
 
169

 
246

 
332

 
613

Reserve for unfunded commitments at end of period
$
4,526

 
$
5,559

 
$
801

 
$
3,835

 
$
14,721

Allowance on loans individually evaluated for impairment
$
2,650

 
$
10,471

 
$
154

 
$
2,973

 
$
16,248

Allowance on loans collectively evaluated for impairment
40,519


44,727

 
5,063

 
17,661

 
107,970

Allowance on loans acquired with deteriorated credit quality
5,194

 
1,494

 
5,861

 
183

 
12,732

Loans and leases, net of unearned income:
 
 
 
 
 
 
 
 
 
Balance at end of period
$
9,381,883

 
$
5,581,040

 
$
4,300,163

 
$
3,080,820

 
$
22,343,906

Balance at end of period individually evaluated for impairment
73,469

 
75,625

 
6,230

 
33,863

 
189,187

Balance at end of period collectively evaluated for impairment
9,126,653

 
5,478,377

 
4,174,524

 
2,970,301

 
21,749,855

Balance at end of period acquired with deteriorated credit quality
181,761

 
27,038

 
119,409

 
76,656

 
404,864

 
2017
(Dollars in thousands)
Commercial Real Estate
 
Commercial and Industrial
 
Residential Mortgage
 
Consumer
 
Total
Allowance for loan losses at beginning of period
$
49,231

 
$
60,939

 
$
11,249

 
$
23,300

 
$
144,719

Provision for (Reversal of) loan and lease losses
4,888

 
23,574

 
(1,333
)
 
9,589

 
36,718

Transfer of balance to OREO and other
879

 
(69
)
 
2

 
151

 
963

Charge-offs
(1,410
)
 
(37,110
)
 
(265
)
 
(11,154
)
 
(49,939
)
Recoveries
668

 
605

 
148

 
2,746

 
4,167

Allowance for loan losses at end of period
$
54,256

 
$
47,939

 
$
9,801

 
$
24,632

 
$
136,628

 
 
 
 
 
 
 
 
 
 
Reserve for unfunded commitments at beginning of period
$
3,207

 
$
4,537

 
$
657

 
$
2,840

 
$
11,241

Balance created in acquisition accounting
1,358

 
4,903

 
1,303

 
62

 
7,626

Provision for (Reversal of) unfunded commitments
1,239

 
752

 
(30
)
 
204

 
2,165

Reserve for unfunded commitments at end of period
$
5,804

 
$
10,192

 
$
1,930

 
$
3,106

 
$
21,032

Allowance on loans individually evaluated for impairment
$
1,957

 
$
9,744

 
$
164

 
$
2,445

 
$
14,310

Allowance on loans collectively evaluated for impairment
30,016

 
35,964

 
3,801

 
18,768

 
88,549

Allowance on loans acquired with deteriorated credit quality
22,283

 
2,231

 
5,836

 
3,419

 
33,769

 
 
 
 
 
 
 
 
 
 
Loans, net of unearned income:
 
 
 
 
 
 
 
 
 
Balance at end of period
8,767,886

 
5,016,437

 
3,024,970

 
2,985,792

 
19,795,085

Balance at end of period individually evaluated for impairment
68,241

 
85,054

 
5,384

 
29,140

 
187,819

Balance at end of period collectively evaluated for impairment
8,457,950

 
4,899,842

 
2,890,206

 
2,877,383

 
19,125,381

Balance at end of period acquired with deteriorated credit quality
241,695

 
31,541

 
129,380

 
79,269

 
481,885
Investment in Legacy and Acquired Loans by Credit Quality Indicator
The Company’s investment in loans by credit quality indicator is presented in the following tables. Asset risk classifications for commercial loans and leases reflect the classification as of September 30, 2018 and December 31, 2017. Credit quality information in the tables below includes total loans acquired (including acquired impaired loans) at the net loan balance, after the application of premiums/discounts, at September 30, 2018 and December 31, 2017. Loan premiums/discounts represent the adjustment of acquired loans to fair value at the acquisition date, as adjusted for income accretion and changes in cash flow estimates in subsequent periods. Loan premiums/discounts include preliminary discounts recorded on acquired Gibraltar loans, which are subject to change upon receipt of final fair value estimates during the measurement period.
Loan delinquency is the primary credit quality indicator that the Company utilizes to monitor consumer asset quality.
 
September 30, 2018
 
December 31, 2017
(Dollars in thousands)
Pass
 
Special Mention
 
Sub-
standard
 
Doubtful
 
Total
 
Pass
 
Special Mention
 
Sub-
standard
 
Doubtful
 
Loss
 
Total
Commercial real estate - construction
$
1,094,240

 
$
19,033

 
$
14,704

 
$
11

 
$
1,127,988

 
$
1,189,490

 
$
20,351

 
$
30,541

 
$
14

 
$
—

 
$
1,240,396

Commercial real estate - owner-occupied
2,382,053

 
31,588

 
45,058

 
265

 
2,458,964

 
2,234,151

 
82,114

 
56,590

 
2,466

 
—

 
2,375,321

Commercial real estate - non-owner-occupied
5,692,007

 
49,121

 
49,415

 
4,388

 
5,794,931

 
5,258,638

 
19,311

 
42,702

 
1,744

 
118

 
5,322,513

Commercial and industrial
5,366,990

 
96,303

 
86,903

 
30,844

 
5,581,040

 
4,882,554

 
88,149

 
128,961

 
35,403

 
—

 
5,135,067

Total
$
14,535,290

 
$
196,045

 
$
196,080

 
$
35,508

 
$
14,962,923

 
$
13,564,833

 
$
209,925

 
$
258,794

 
$
39,627

 
$
118

 
$
14,073,297

 
September 30, 2018
 
December 31, 2017
(Dollars in thousands)
Current
 
30+ Days Past Due
 
Total
 
Current
 
30+ Days Past Due
 
Total
Residential mortgage
$
4,212,447

 
$
87,716

 
$
4,300,163

 
$
2,962,043

 
$
94,309

 
$
3,056,352

Consumer - home equity
2,306,712

 
43,464

 
2,350,176

 
2,250,205

 
42,070

 
2,292,275

Consumer - other
723,183

 
7,461

 
730,644

 
645,498

 
10,759

 
656,257

Total
$
7,242,342

 
$
138,641

 
$
7,380,983

 
$
5,857,746

 
$
147,138

 
$
6,004,884
Schedule of Investment in Legacy Impaired Loans
Information on the Company’s investment in impaired loans, which include all TDRs and all other non-accrual loans evaluated or measured individually for impairment for purposes of determining the ALLL, is presented in the following tables as of and for the periods indicated.
 
September 30, 2018
 
December 31, 2017
 
Unpaid Principal Balance
 
Recorded Investment
 
Related Allowance
 
Unpaid Principal Balance
 
Recorded Investment
 
Related Allowance
(Dollars in thousands)
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate - construction
$
11,176

 
$
11,176

 
$
—

 
$
13,763

 
$
13,013

 
$
—

Commercial real estate - owner-occupied
33,816

 
33,816

 
—

 
50,867

 
44,482

 
—

Commercial real estate - non-owner-occupied
21,996

 
21,996

 
—

 
15,370

 
14,975

 
—

Commercial and industrial
41,717

 
41,717

 
—

 
103,013

 
70,254

 
—

Residential mortgage
1,254

 
1,241

 
—

 
2,004

 
2,001

 
—

Consumer - home equity
701

 
701

 
—

 
5,906

 
5,634

 
—

Consumer - other
—

 
—

 
—

 
75

 
75

 
—

 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate - construction
146

 
146

 
(11
)
 
238

 
156

 
(19
)
Commercial real estate - owner-occupied
3,987

 
3,987

 
(535
)
 
13,314

 
13,287

 
(949
)
Commercial real estate - non-owner-occupied
2,348

 
2,348

 
(2,104
)
 
6,051

 
5,872

 
(620
)
Commercial and industrial
33,894

 
33,908

 
(10,471
)
 
35,306

 
32,162

 
(12,736
)
Residential mortgage
5,420

 
4,989

 
(154
)
 
5,179

 
4,748

 
(172
)
Consumer - home equity
28,700

 
28,695

 
(2,469
)
 
27,189

 
26,575

 
(2,358
)
Consumer - other
4,526

 
4,467

 
(504
)
 
5,354

 
4,893

 
(498
)
Total
$
189,681

 
$
189,187

 
$
(16,248
)
 
$
283,629

 
$
238,127

 
$
(17,352
)
Total commercial loans and leases
$
149,080

 
$
149,094

 
$
(13,121
)
 
$
237,922

 
$
194,201

 
$
(14,324
)
Total mortgage loans
6,674

 
6,230

 
(154
)
 
7,183

 
6,749

 
(172
)
Total consumer loans
33,927

 
33,863

 
(2,973
)
 
38,524

 
37,177

 
(2,856
)
 
Three Months Ended September 30, 2018
 
Three Months Ended September 30, 2017
 
Nine Months Ended September 30, 2018
 
Nine Months Ended September 30, 2017
 
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 - construction
$
10,806

 
$
164

 
$
2,722

 
$
11

 
$
10,371

 
$
460

 
$
2,538

 
$
57

Commercial real estate - owner-occupied
34,118

 
209

 
36,850

 
88

 
34,505

 
903

 
37,185

 
517

Commercial real estate - non-owner-occupied
22,091

 
249

 
7,858

 
83

 
22,988

 
746

 
7,908

 
231

Commercial and industrial
43,409

 
523

 
64,863

 
240

 
40,564

 
1,543

 
71,611

 
975

Residential mortgage
1,254

 
9

 
1,114

 
13

 
1,271

 
36

 
1,129

 
36

Consumer - home equity
705

 
2

 
364

 
6

 
708

 
16

 
367

 
18

With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate - construction
148

 
—

 
166

 
1

 
151

 
1

 
209

 
5

Commercial real estate - owner-occupied
4,006

 
83

 
11,154

 
89

 
4,044

 
102

 
11,206

 
269

Commercial real estate - non-owner-occupied
2,398

 
20

 
4,874

 
29

 
2,442

 
76

 
4,808

 
109

Commercial and industrial
40,357

 
150

 
55,042

 
261

 
47,098

 
720

 
57,020

 
788

Residential mortgage
5,014

 
50

 
4,290

 
38

 
5,066

 
149

 
4,338

 
115

Consumer - home equity
28,577

 
305

 
23,730

 
254

 
27,905

 
892

 
21,639

 
690

Consumer - other
4,710

 
65

 
4,330

 
64

 
4,884

 
208

 
4,010

 
180

Total
$
197,593

 
$
1,829

 
$
217,357

 
$
1,177

 
$
201,997

 
$
5,852

 
$
223,968

 
$
3,990

Total commercial loans and leases
$
157,333

 
$
1,398

 
$
183,529

 
$
802

 
$
162,163

 
$
4,551

 
$
192,485

 
$
2,951

Total mortgage loans
6,268

 
59

 
5,404

 
51

 
6,337

 
185

 
5,467

 
151

Total consumer loans
33,992

 
372

 
28,424

 
324

 
33,497

 
1,116

 
26,016

 
888