Past Due Loans, Allowance For Credit Losses, Impaired Loans, and TDRs | PAST DUE LOANS, ALLOWANCE FOR CREDIT LOSSES, IMPAIRED LOANS, AND TDRS Past Due and Non-accrual Loans The following table presents an aging analysis of the Company's past due loans as of December 31, 2018 and 2017 . The aging is determined without regard to accrual status. The table also presents non-performing loans, consisting of non-accrual loans (the majority of which are past due) and loans 90 days or more past due and still accruing interest, as of each balance sheet date. Aging Analysis of Past Due Loans and Non-Performing Loans by Class (Dollar amounts in thousands) Aging Analysis (Accruing and Non-accrual) Non-performing Loans Current (1) 30-89 Days Past Due 90 Days or More Past Due Total Past Due Total Loans Non-accrual (2) 90 Days or More Past Due, Still Accruing Interest As of December 31, 2018 Commercial and industrial $ 4,085,164 $ 8,832 $ 26,297 $ 35,129 $ 4,120,293 $ 33,507 $ 422 Agricultural 428,357 940 1,631 2,571 430,928 1,564 101 Commercial real estate: Office, retail, and industrial 1,803,059 8,209 9,649 17,858 1,820,917 6,510 4,081 Multi-family 759,402 1,487 3,296 4,783 764,185 3,107 189 Construction 645,774 3,419 144 3,563 649,337 144 — Other commercial real estate 1,353,442 4,921 3,447 8,368 1,361,810 2,854 2,197 Total commercial real estate 4,561,677 18,036 16,536 34,572 4,596,249 12,615 6,467 Total corporate loans 9,075,198 27,808 44,464 72,272 9,147,470 47,686 6,990 Home equity 843,217 6,285 2,105 8,390 851,607 5,393 104 1-4 family mortgages 1,009,925 4,361 2,895 7,256 1,017,181 3,856 1,147 Installment 428,836 1,648 41 1,689 430,525 — 41 Total consumer loans 2,281,978 12,294 5,041 17,335 2,299,313 9,249 1,292 Total loans $ 11,357,176 $ 40,102 $ 49,505 $ 89,607 $ 11,446,783 $ 56,935 $ 8,282 As of December 31, 2017 Commercial and industrial $ 3,490,783 $ 34,620 $ 4,511 $ 39,131 $ 3,529,914 $ 40,580 $ 1,830 Agricultural 430,221 280 385 665 430,886 219 177 Commercial real estate: Office, retail, and industrial 1,970,564 3,156 6,100 9,256 1,979,820 11,560 345 Multi-family 672,098 3,117 248 3,365 675,463 377 20 Construction 539,043 198 579 777 539,820 209 371 Other commercial real estate 1,353,263 2,545 2,707 5,252 1,358,515 3,621 317 Total commercial real estate 4,534,968 9,016 9,634 18,650 4,553,618 15,767 1,053 Total corporate loans 8,455,972 43,916 14,530 58,446 8,514,418 56,566 3,060 Home equity 820,099 4,102 2,854 6,956 827,055 5,946 98 1-4 family mortgages 770,120 2,145 2,092 4,237 774,357 4,412 — Installment 319,178 2,407 397 2,804 321,982 — 397 Total consumer loans 1,909,397 8,654 5,343 13,997 1,923,394 10,358 495 Total loans $ 10,365,369 $ 52,570 $ 19,873 $ 72,443 $ 10,437,812 $ 66,924 $ 3,555 (1) PCI loans with an accretable yield are considered current. (2) Includes PCI loans of $58,000 and $763,000 as of December 31, 2018 and December 31, 2017 , respectively, which no longer have an accretable yield as estimates of expected future cash flows have decreased since the acquisition due to credit deterioration. Allowance for Credit Losses The Company maintains an allowance for credit losses at a level deemed adequate by management to absorb estimated losses inherent in the existing loan portfolio. See Note 1 , " Summary of Significant Accounting Policies ," for the accounting policy for the allowance for credit losses. A rollforward of the allowance for credit losses by portfolio segment for the years ended December 31, 2018 , 2017 , and 2016 is presented in the table below. Allowance for Credit Losses by Portfolio Segment (Dollar amounts in thousands) Commercial, Industrial, and Agricultural Office, Retail, and Industrial Multi-family Construction Other Commercial Real Estate Consumer Reserve for Unfunded Commitments Total Allowance for Credit Losses Year Ended December 31, 2018 Beginning balance $ 55,791 $ 10,996 $ 2,534 $ 3,481 $ 6,381 $ 16,546 $ 1,000 $ 96,729 Charge-offs (36,477 ) (2,286 ) (5 ) (1 ) (410 ) (8,806 ) — (47,985 ) Recoveries 2,946 334 3 125 1,532 1,681 — 6,621 Net charge-offs (33,531 ) (1,952 ) (2 ) 124 1,122 (7,125 ) — (41,364 ) Provision for loan 41,016 (1,144 ) (68 ) (1,432 ) (2,569 ) 12,051 200 48,054 Ending Balance $ 63,276 $ 7,900 $ 2,464 $ 2,173 $ 4,934 $ 21,472 $ 1,200 $ 103,419 Year Ended December 31, 2017 Beginning balance $ 40,709 $ 17,595 $ 3,261 $ 3,444 $ 7,739 $ 13,335 $ 1,000 $ 87,083 Charge-offs (22,885 ) (190 ) — (38 ) (755 ) (6,955 ) — (30,823 ) Recoveries 4,150 2,935 39 270 244 1,541 — 9,179 Net charge-offs (18,735 ) 2,745 39 232 (511 ) (5,414 ) — (21,644 ) Provision for loan losses and other 33,817 (9,344 ) (766 ) (195 ) (847 ) 8,625 — 31,290 Ending balance $ 55,791 $ 10,996 $ 2,534 $ 3,481 $ 6,381 $ 16,546 $ 1,000 $ 96,729 Year Ended December 31, 2016 Beginning balance $ 37,074 $ 13,124 $ 2,469 $ 1,440 $ 6,109 $ 13,414 $ 1,225 $ 74,855 Charge-offs (9,982 ) (4,707 ) (307 ) (134 ) (2,932 ) (5,231 ) — (23,293 ) Recoveries 2,451 337 97 56 524 1,298 — 4,763 Net charge-offs (7,531 ) (4,370 ) (210 ) (78 ) (2,408 ) (3,933 ) — (18,530 ) Provision for loan 11,166 8,841 1,002 2,082 4,038 3,854 (225 ) 30,758 Ending balance $ 40,709 $ 17,595 $ 3,261 $ 3,444 $ 7,739 $ 13,335 $ 1,000 $ 87,083 The table below provides a breakdown of loans and the related allowance for credit losses by portfolio segment as of December 31, 2018 and 2017 . Loans and Related Allowance for Credit Losses by Portfolio Segment (Dollar amounts in thousands) Loans Allowance for Credit Losses Individually Evaluated for Impairment Collectively Evaluated for Impairment PCI Total Individually Evaluated for Impairment Collectively Evaluated for Impairment PCI Total As of December 31, 2018 Commercial, industrial, and $ 32,415 $ 4,514,349 $ 4,457 $ 4,551,221 $ 3,961 $ 58,947 $ 368 $ 63,276 Commercial real estate: Office, retail, and industrial 5,057 1,799,304 16,556 1,820,917 748 5,984 1,168 7,900 Multi-family 3,492 747,030 13,663 764,185 — 2,154 310 2,464 Construction — 644,499 4,838 649,337 — 2,019 154 2,173 Other commercial real estate 1,545 1,305,444 54,821 1,361,810 — 4,180 754 4,934 Total commercial real estate 10,094 4,496,277 89,878 4,596,249 748 14,337 2,386 17,471 Total corporate loans 42,509 9,010,626 94,335 9,147,470 4,709 73,284 2,754 80,747 Consumer — 2,279,780 19,533 2,299,313 — 20,094 1,378 21,472 Reserve for unfunded — — — — — 1,200 — 1,200 Total loans $ 42,509 $ 11,290,406 $ 113,868 $ 11,446,783 $ 4,709 $ 94,578 $ 4,132 $ 103,419 As of December 31, 2017 Commercial, industrial, and $ 38,718 $ 3,909,380 $ 12,702 $ 3,960,800 $ 10,074 $ 45,293 $ 424 $ 55,791 Commercial real estate: Office, retail, and industrial 10,810 1,954,435 14,575 1,979,820 — 9,333 1,663 10,996 Multi-family 621 660,771 14,071 675,463 — 2,436 98 2,534 Construction — 530,977 8,843 539,820 — 3,331 150 3,481 Other commercial real estate 1,468 1,291,723 65,324 1,358,515 — 5,415 966 6,381 Total commercial real estate 12,899 4,437,906 102,813 4,553,618 — 20,515 2,877 23,392 Total corporate loans 51,617 8,347,286 115,515 8,514,418 10,074 65,808 3,301 79,183 Consumer — 1,901,456 21,938 1,923,394 — 15,533 1,013 16,546 Reserve for unfunded — — — — — 1,000 — 1,000 Total loans $ 51,617 $ 10,248,742 $ 137,453 $ 10,437,812 $ 10,074 $ 82,341 $ 4,314 $ 96,729 Loans Individually Evaluated for Impairment The following table presents loans individually evaluated for impairment by class of loan as of December 31, 2018 and 2017 . PCI loans are excluded from this disclosure. Impaired Loans Individually Evaluated by Class (Dollar amounts in thousands) As of December 31, 2018 2017 Recorded Investment In Recorded Investment In Loans with No Specific Reserve Loans with a Specific Reserve Unpaid Principal Balance Specific Reserve Loans with No Specific Reserve Loans with a Specific Reserve Unpaid Principal Balance Specific Reserve Commercial and industrial $ 7,550 $ 23,349 $ 49,102 $ 3,960 $ 4,234 $ 34,484 $ 53,192 $ 10,074 Agricultural 1,318 198 3,997 1 — — — — Commercial real estate: Office, retail, and industrial 1,861 3,196 6,141 748 7,154 3,656 14,246 — Multi-family 3,492 — 3,492 — 621 — 621 — Construction — — — — — — — — Other commercial real estate 1,545 — 1,612 — 1,468 — 1,566 — Total commercial real estate 6,898 3,196 11,245 748 9,243 3,656 16,433 — Total impaired loans $ 15,766 $ 26,743 $ 64,344 $ 4,709 $ 13,477 $ 38,140 $ 69,625 $ 10,074 The following table presents the average recorded investment and interest income recognized on impaired loans by class for the years ended December 31, 2018 , 2017 , and 2016 . PCI loans are excluded from this disclosure. Average Recorded Investment and Interest Income Recognized on Impaired Loans by Class (Dollar amounts in thousands) Years Ended December 31, 2018 2017 2016 Average Recorded Investment Interest Income Recognized (1) Average Recorded Investment Interest Income Recognized (1) Average Interest (1) Commercial and industrial $ 33,732 $ 225 $ 33,956 $ 1,059 $ 9,178 $ 104 Agricultural 2,026 32 279 101 — — Commercial real estate: Office, retail, and industrial 8,105 892 13,106 325 12,867 291 Multi-family 2,404 66 441 28 479 11 Construction — — 7 136 63 — Other commercial real estate 2,179 406 1,615 41 2,809 86 Total commercial real estate 12,688 1,364 15,170 530 16,218 388 Total impaired loans $ 48,445 $ 1,621 $ 49,404 $ 1,690 $ 25,396 $ 492 (1) Recorded using the cash basis of accounting. Credit Quality Indicators Corporate loans and commitments are assessed for credit risk and assigned ratings based on various characteristics, such as the borrower's cash flow, leverage, and collateral. Ratings for commercial credits are reviewed periodically. The following tables present credit quality indicators by class for corporate and consumer loans as of December 31, 2018 and 2017 . Corporate Credit Quality Indicators by Class (Dollar amounts in thousands) Pass Special (1)(4) Substandard (2)(4) Non-accrual (3) Total As of December 31, 2018 Commercial and industrial $ 3,952,066 $ 74,878 $ 59,842 $ 33,507 $ 4,120,293 Agricultural 407,542 10,070 11,752 1,564 430,928 Commercial real estate: Office, retail, and industrial 1,735,426 35,853 43,128 6,510 1,820,917 Multi-family 745,131 9,273 6,674 3,107 764,185 Construction 624,446 16,370 8,377 144 649,337 Other commercial real estate 1,294,128 47,736 17,092 2,854 1,361,810 Total commercial real estate 4,399,131 109,232 75,271 12,615 4,596,249 Total corporate loans $ 8,758,739 $ 194,180 $ 146,865 $ 47,686 $ 9,147,470 As of December 31, 2017 Commercial and industrial $ 3,388,133 $ 70,863 $ 30,338 $ 40,580 $ 3,529,914 Agricultural 413,946 10,989 5,732 219 430,886 Commercial real estate: Office, retail, and industrial 1,903,737 25,546 38,977 11,560 1,979,820 Multi-family 665,496 7,395 2,195 377 675,463 Construction 521,911 10,184 7,516 209 539,820 Other commercial real estate 1,304,337 29,624 20,933 3,621 1,358,515 Total commercial real estate 4,395,481 72,749 69,621 15,767 4,553,618 Total corporate loans $ 8,197,560 $ 154,601 $ 105,691 $ 56,566 $ 8,514,418 (1) Loans categorized as special mention exhibit potential weaknesses that require the close attention of management since these potential weaknesses may result in the deterioration of repayment prospects in the future. (2) Loans categorized as substandard exhibit a well-defined weakness that may jeopardize the liquidation of the debt. These loans continue to accrue interest because they are well-secured and collection of principal and interest is expected within a reasonable time. (3) Loans categorized as non-accrual exhibit a well-defined weakness that may jeopardize the liquidation of the debt or result in a loss if the deficiencies are not corrected. (4) Total special mention and substandard loans includes accruing TDRs of $630,000 as of December 31, 2018 and $657,000 as of December 31, 2017 . Consumer Credit Quality Indicators by Class (Dollar amounts in thousands) Performing Non-accrual Total As of December 31, 2018 Home equity $ 846,214 $ 5,393 $ 851,607 1-4 family mortgages 1,013,325 3,856 1,017,181 Installment 430,525 — 430,525 Total consumer loans $ 2,290,064 $ 9,249 $ 2,299,313 As of December 31, 2017 Home equity $ 821,109 $ 5,946 $ 827,055 1-4 family mortgages 769,945 4,412 774,357 Installment 321,982 — 321,982 Total consumer loans $ 1,913,036 $ 10,358 $ 1,923,394 TDRs TDRs are generally performed at the request of the individual borrower and may include forgiveness of principal, reduction in interest rates, changes in payments, and maturity date extensions. The table below presents TDRs by class as of December 31, 2018 and 2017 . See Note 1 , " Summary of Significant Accounting Policies ," for the accounting policy for TDRs. TDRs by Class (Dollar amounts in thousands) As of December 31, 2018 2017 Accruing Non-accrual (1) Total Accruing Non-accrual (1) Total Commercial and industrial $ 246 $ 5,994 $ 6,240 $ 264 $ 18,959 $ 19,223 Agricultural — — — — — — Commercial real estate: Office, retail, and industrial — — — — 4,236 4,236 Multi-family 557 — 557 574 149 723 Construction — — — — — — Other commercial real estate 181 — 181 192 — 192 Total commercial real estate 738 — 738 766 4,385 5,151 Total corporate loans 984 5,994 6,978 1,030 23,344 24,374 Home equity 113 327 440 86 738 824 1-4 family mortgages 769 291 1,060 680 451 1,131 Installment — — — — — — Total consumer loans 882 618 1,500 766 1,189 1,955 Total loans $ 1,866 $ 6,612 $ 8,478 $ 1,796 $ 24,533 $ 26,329 (1) These TDRs are included in non-accrual loans in the preceding tables. TDRs are included in the calculation of the allowance for credit losses in the same manner as impaired loans. There were no specific reserves related to TDRs as of December 31, 2018 , and there were $2.0 million specific reserves related to TDRs as of December 31, 2017 . There were no material restructurings during the year ended December 31, 2018 . The following table presents a summary of loans that were restructured during the years ended December 31, 2017 , and 2016 . Loans Restructured During the Period (Dollar amounts in thousands) Number of Loans Pre-Modification Recorded Investment Funds Disbursed Interest and Escrow Capitalized Charge-offs Post-Modification Recorded Investment Year Ended December 31, 2017 Commercial and industrial 12 $ 26,733 $ 9,035 $ — $ 6,232 $ 29,536 Office, retail, and industrial 2 3,656 — — — 3,656 Total loans restructured during the period 14 $ 30,389 $ 9,035 $ — $ 6,232 $ 33,192 Year Ended December 31, 2016 Office, retail, and industrial 1 $ 5,460 $ — $ — $ 1,083 $ 4,377 Other commercial real estate 1 745 — — — 745 Total loans restructured during the period 2 $ 6,205 $ — $ — $ 1,083 $ 5,122 Accruing TDRs that do not perform in accordance with their modified terms are transferred to non-accrual. No TDRs had payment defaults during the years ended December 31, 2018 , and 2017 where the default occurred within twelve months of the restructure date. For the year ended December 31, 2016, one home equity TDR totaling $119,000 defaulted within twelve months of the restructure date. A rollforward of the carrying value of TDRs for the years ended December 31, 2018 , 2017 , and 2016 is presented in the following table. TDR Rollforward (Dollar amounts in thousands) Years Ended December 31, 2018 2017 2016 Accruing Beginning balance $ 1,796 $ 2,291 $ 2,743 Additions — 15,819 — Net payments (50 ) (1,923 ) (120 ) Returned to performing status — — — Net transfers from (to) non-accrual 120 (14,391 ) (332 ) Ending balance 1,866 1,796 2,291 Non-accrual Beginning balance 24,533 6,297 2,324 Additions 527 14,570 6,205 Net payments (14,403 ) (4,380 ) (1,072 ) Charge-offs (3,925 ) (6,345 ) (1,492 ) Transfers to OREO — — — Loans sold — — — Net transfers (to) from accruing (120 ) 14,391 332 Ending balance 6,612 24,533 6,297 Total TDRs $ 8,478 $ 26,329 $ 8,588 There were $3.8 million of commitments to lend additional funds to borrowers with TDRs as of December 31, 2018 and there were no material commitments to lend additional funds to borrowers with TDRs as of December 31, 2017 . |