LOANS | LOANS The following table summarizes loans outstanding, net of unearned income: June 30, 2015 (dollars in thousands) Originated Loans Acquired Loans Total Commercial and industrial $ 2,621,552 $ 49,070 $ 2,670,622 CRE - permanent 1,178,149 112,910 1,291,059 CRE - construction 123,722 13,629 137,351 Commercial real estate 1,301,871 126,539 1,428,410 Residential mortgages 642,300 224,868 867,168 Home equity 788,973 114,354 903,327 All other consumer 289,136 125 289,261 Consumer 1,720,409 339,347 2,059,756 Loans $ 5,643,832 $ 514,956 $ 6,158,788 December 31, 2014 (dollars in thousands) Originated Loans Acquired Loans Total Commercial and industrial $ 2,548,438 $ 51,429 $ 2,599,867 CRE - permanent 1,092,006 137,312 1,229,318 CRE - construction 196,554 6,988 203,542 Commercial real estate 1,288,560 144,300 1,432,860 Residential mortgages 654,617 253,740 908,357 Home equity 783,248 130,582 913,830 All other consumer 287,224 141 287,365 Consumer 1,725,089 384,463 2,109,552 Loans $ 5,562,087 $ 580,192 $ 6,142,279 The carrying amount of acquired loans at June 30, 2015 totaled $515 million . The carrying value of acquired, non-impaired loans was $513 million as of June 30, 2015 , inclusive of a net fair value adjustment of $4.3 million , which will be accreted to interest income over the remaining life of the related portfolio. At June 30, 2015 , the carrying value of loans acquired with deteriorated credit quality, or purchased credit-impaired ("PCI") loans, was $1.6 million , inclusive of a $1.3 million fair value adjustment. PCI loans are accounted for in accordance with ASC 310-30. The Company continues to evaluate the credit performance of the PCI loan portfolio and its potential resolution, which may include individual and/or bulk loan settlements. 5. LOANS - Continued The following tables present classifications for originated loans: June 30, 2015 Performing (dollars in thousands) Pass Rated Special Mention Classified Non-Performing Total Commercial and industrial $ 2,528,623 $ 22,434 $ 61,281 $ 9,214 $ 2,621,552 CRE - permanent 1,158,483 3,710 8,285 7,671 1,178,149 CRE - construction 112,112 296 2,871 8,443 123,722 Commercial real estate 1,270,595 4,006 11,156 16,114 1,301,871 Residential mortgages 626,926 — 771 14,603 642,300 Home equity 782,805 — 637 5,531 788,973 All other consumer 283,606 — 4,013 1,517 289,136 Consumer 1,693,337 — 5,421 21,651 1,720,409 Originated loans $ 5,492,555 $ 26,440 $ 77,858 $ 46,979 $ 5,643,832 Percent of originated loans 97.32 % 0.47 % 1.38 % 0.83 % 100.00 % December 31, 2014 Performing (dollars in thousands) Pass Rated Special Mention Classified Non-Performing Total Commercial and industrial $ 2,431,251 $ 24,129 $ 70,765 $ 22,293 $ 2,548,438 CRE - permanent 1,065,916 4,351 13,307 8,432 1,092,006 CRE - construction 182,554 701 5,186 8,113 196,554 Commercial real estate 1,248,470 5,052 18,493 16,545 1,288,560 Residential mortgages 640,344 — 314 13,959 654,617 Home equity 778,611 — 335 4,302 783,248 All other consumer 280,975 — 4,256 1,993 287,224 Consumer 1,699,930 — 4,905 20,254 1,725,089 Originated loans $ 5,379,651 $ 29,181 $ 94,163 $ 59,092 $ 5,562,087 Percent of originated loans 96.73 % 0.52 % 1.69 % 1.06 % 100.00 % 5. LOANS - Continued The following tables present classifications for acquired loans: June 30, 2015 Performing (dollars in thousands) Pass Rated Special Mention Classified Non-Performing PCI Total Commercial and industrial $ 48,230 $ 592 $ 188 $ 60 $ — $ 49,070 CRE - permanent 107,820 2,814 641 — 1,635 112,910 CRE - construction 13,629 — — — — 13,629 Commercial real estate 121,449 2,814 641 — 1,635 126,539 Residential mortgages 224,721 — 147 — — 224,868 Home equity 114,354 — — — — 114,354 All other consumer 125 — — — — 125 Consumer 339,200 — 147 — — 339,347 Acquired loans $ 508,879 $ 3,406 $ 976 $ 60 $ 1,635 $ 514,956 Percent of acquired loans 98.82 % 0.66 % 0.19 % 0.01 % 0.32 % 100.00 % December 31, 2014 Performing (dollars in thousands) Pass Rated Special Mention Classified Non-Performing PCI Total Commercial and industrial $ 49,091 $ 697 $ 418 $ — $ 1,223 $ 51,429 CRE - permanent 122,952 7,840 1,409 — 5,111 137,312 CRE - construction 6,931 — — — 57 6,988 Commercial real estate 129,883 7,840 1,409 — 5,168 144,300 Residential mortgages 252,454 — 31 — 1,255 253,740 Home equity 130,552 — 30 — — 130,582 All other consumer 141 — — — — 141 Consumer 383,147 — 61 — 1,255 384,463 Acquired loans $ 562,121 $ 8,537 $ 1,888 $ — $ 7,646 $ 580,192 Percent of acquired loans 96.88 % 1.47 % 0.33 % — % 1.32 % 100.00 % 5. LOANS - Continued The following table presents the details for past due loans: June 30, 2015 Past Due and Still Accruing Accruing Current Balances Non-Accrual Balances (d) Total Balances (dollars in thousands) 30-59 Days 60-89 Days 90 Days or More (c) Total PCI Loans Commercial and industrial $ 1,092 $ 288 $ — $ 1,380 $ 2,660,319 $ — $ 8,923 $ 2,670,622 CRE - permanent 979 — — 979 1,281,285 1,635 7,160 1,291,059 CRE - construction — — — — 128,908 — 8,443 137,351 Commercial real estate 979 — — 979 1,410,193 1,635 15,603 1,428,410 Residential mortgages 4,278 1,019 427 5,724 853,137 — 8,307 867,168 Home equity 3,340 1,029 393 4,762 894,538 — 4,027 903,327 All other consumer 2,323 692 1,083 4,098 283,776 — 1,387 289,261 Consumer 9,941 2,740 1,903 14,584 2,031,451 — 13,721 2,059,756 Loans $ 12,012 $ 3,028 $ 1,903 $ 16,943 $ 6,101,963 $ 1,635 $ 38,247 $ 6,158,788 Percent of loans 0.20 % 0.05 % 0.03 % 0.28 % 0.03 % 0.62 % December 31, 2014 Past Due and Still Accruing Accruing Current Balances Non-Accrual Balances (d) Total Balances (dollars in thousands) 30-59 Days 60-89 Days 90 Days or More (c) Total PCI Loans Commercial and industrial $ 738 $ 369 $ 137 $ 1,244 $ 2,575,469 $ 1,223 $ 21,931 $ 2,599,867 CRE - permanent 2,052 286 57 2,395 1,213,897 5,111 7,915 1,229,318 CRE - construction 425 — — 425 194,947 57 8,113 203,542 Commercial real estate 2,477 286 57 2,820 1,408,844 5,168 16,028 1,432,860 Residential mortgages 6,013 1,363 304 7,680 891,716 1,255 7,706 908,357 Home equity 4,596 579 365 5,540 904,864 — 3,426 913,830 All other consumer 3,039 657 1,320 5,016 280,603 — 1,746 287,365 Consumer 13,648 2,599 1,989 18,236 2,077,183 1,255 12,878 2,109,552 Loans $ 16,863 $ 3,254 $ 2,183 $ 22,300 $ 6,061,496 $ 7,646 $ 50,837 $ 6,142,279 Percent of loans 0.27 % 0.05 % 0.04 % 0.36 % 0.12 % 0.83 % (c) Loans 90 days or more past due remain on accrual status if they are well secured and collection of all principal and interest is probable. (d) At June 30, 2015, non-accrual balances included troubled debt restructurings of $6.0 million commercial and industrial, $13.9 million of commercial real estate, and $3.4 million of consumer loans. At December 31, 2014, non-accrual balances included troubled debt restructurings of $8.2 million of commercial and industrial, $14.0 million of commercial real estate, and $3.4 million of consumer loans. 5. LOANS - Continued Additional details for changes in the allowance for loan losses by loan portfolio for originated loans are as follows: June 30, 2015 (dollars in thousands) Three Months Ended Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 41,134 $ 18,176 $ 20,388 $ 10,031 $ 89,729 Charge-offs (5,949 ) (5 ) (1,835 ) — (7,789 ) Recoveries 1,075 405 396 — 1,876 Provision (177 ) (1,487 ) 1,829 835 1,000 Ending balance $ 36,083 $ 17,089 $ 20,778 $ 10,866 $ 84,816 Six Months Ended Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 39,982 $ 18,696 $ 21,390 $ 10,607 $ 90,675 Charge-offs (6,732 ) (628 ) (3,503 ) — (10,863 ) Recoveries 1,436 522 1,046 — 3,004 Provision 1,397 (1,501 ) 1,845 259 2,000 Ending balance $ 36,083 $ 17,089 $ 20,778 $ 10,866 $ 84,816 Allowance for loan losses: Individually evaluated for impairment $ 2,234 $ 3,331 $ 2,308 $ — $ 7,873 Collectively evaluated for impairment 33,849 13,758 18,470 10,866 76,943 Total allowance for loan losses $ 36,083 $ 17,089 $ 20,778 $ 10,866 $ 84,816 Originated loans: Individually evaluated for impairment $ 9,355 $ 18,828 $ 22,255 $ — $ 50,438 Collectively evaluated for impairment 2,612,197 1,283,043 1,698,154 — 5,593,394 Originated loans $ 2,621,552 $ 1,301,871 $ 1,720,409 $ — $ 5,643,832 5. LOANS - Continued June 30, 2014 (dollars in thousands) Three Months Ended Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 40,697 $ 20,197 $ 21,864 $ 10,494 $ 93,252 Charge-offs (2,892 ) (800 ) (1,433 ) — (5,125 ) Recoveries 843 111 767 — 1,721 Provision (570 ) (945 ) 372 1,143 — Ending balance $ 38,078 $ 18,563 $ 21,570 $ 11,637 $ 89,848 Six Months Ended Commercial and Industrial Commercial Real Estate Consumer Unallocated Total Allowance for loan losses: Beginning balance $ 41,288 $ 22,653 $ 21,478 $ 10,948 $ 96,367 Charge-offs (4,227 ) (1,327 ) (4,589 ) — (10,143 ) Recoveries 1,028 185 1,160 — 2,373 Provision (11 ) (2,948 ) 3,521 689 1,251 Ending balance $ 38,078 $ 18,563 $ 21,570 $ 11,637 $ 89,848 Allowance for loan losses: Individually evaluated for impairment $ 342 $ 2,180 $ 1,828 $ — $ 4,350 Collectively evaluated for impairment 37,736 16,383 19,742 11,637 85,498 Total allowance for loan losses $ 38,078 $ 18,563 $ 21,570 $ 11,637 $ 89,848 Originated loans: Individually evaluated for impairment $ 9,875 $ 17,794 $ 18,646 $ — $ 46,315 Collectively evaluated for impairment 2,479,118 1,207,640 1,670,683 — 5,357,441 Originated loans $ 2,488,993 $ 1,225,434 $ 1,689,329 $ — $ 5,403,756 5. LOANS - Continued Impaired loan details are as follows and exclude loans acquired with deteriorated credit quality: June 30, 2015 Recorded Investment (dollars in thousands) With Related Allowance Without Related Allowance Total Life-to-date Charge-offs Total Unpaid Balances Related Allowance Commercial and industrial $ 4,115 $ 5,240 $ 9,355 $ 4,367 $ 13,722 $ 2,234 CRE - permanent 8,681 1,704 10,385 5,802 16,187 2,285 CRE - construction 8,443 — 8,443 970 9,413 1,046 Commercial real estate 17,124 1,704 18,828 6,772 25,600 3,331 Residential mortgages 6,434 8,658 15,092 481 15,573 1,597 Home equity 1,357 4,174 5,531 452 5,983 662 All other consumer 244 1,388 1,632 — 1,632 49 Consumer 8,035 14,220 22,255 933 23,188 2,308 Total $ 29,274 $ 21,164 $ 50,438 $ 12,072 $ 62,510 $ 7,873 December 31, 2014 Recorded Investment (dollars in thousands) With Related Allowance Without Related Allowance Total Life-to-date Charge-offs Total Unpaid Balances Related Allowance Commercial and industrial $ 17,343 $ 5,041 $ 22,384 $ 3,981 $ 26,365 $ 7,165 CRE - permanent 9,062 2,120 11,182 7,821 19,003 2,574 CRE - construction 7,585 528 8,113 970 9,083 1,332 Commercial real estate 16,647 2,648 19,295 8,791 28,086 3,906 Residential mortgages 5,894 8,109 14,003 457 14,460 1,503 Home equity 850 3,452 4,302 436 4,738 295 All other consumer 397 1,596 1,993 — 1,993 200 Consumer 7,141 13,157 20,298 893 21,191 1,998 Total $ 41,131 $ 20,846 $ 61,977 $ 13,665 $ 75,642 $ 13,069 5. LOANS - Continued The following table presents additional details related to the Company's impaired loans, excluding PCI loans. Interest income recognized for the three and six months ended June 30, 2015 and 2014 primarily represents amounts earned on accruing TDR's. Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 (dollars in thousands) Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Average Recorded Interest Income Commercial and industrial $ 16,634 $ 5 $ 11,685 $ 6 $ 19,237 $ 10 $ 13,176 $ 12 CRE - permanent 10,109 7 7,181 6 10,105 13 7,841 12 CRE - construction 8,369 — 9,929 — 8,317 — 10,242 — Commercial real estate 18,478 7 17,110 6 18,422 13 18,083 12 Residential mortgages 15,248 31 13,048 33 15,256 65 13,491 67 Home equity 5,448 9 4,700 3 5,039 14 4,937 6 All other consumer 1,609 2 1,902 4 1,710 6 1,896 6 Consumer 22,305 42 19,650 40 22,005 85 20,324 79 Total $ 57,417 $ 54 $ 48,445 $ 52 $ 59,664 $ 108 $ 51,583 $ 103 The following table presents details of the Company’s loans which experienced a troubled debt restructuring and are performing according to the modified terms. The Company’s restructured loans are included within non-performing loans and impaired loans in the preceding tables. (dollars in thousands) June 30, December 31, Commercial and industrial $ 351 $ 362 CRE - permanent 511 517 Residential mortgages 6,296 6,253 Home equity 1,504 876 All other consumer 130 247 Total restructured loans $ 8,792 $ 8,255 Undrawn commitments to lend on restructured loans $ — $ — The Company modifies loans to consumers secured by residential mortgages and home equity loans utilizing a program modeled after government assisted programs in order to help customers who are experiencing financial difficulty and are in jeopardy of losing their homes to foreclosure. |