Loans and Allowance for Loan Losses | Note 5 — Loans and Allowance for Loan Losses The following is a summary of non-acquired loans: March 31, December 31, March 31, (Dollars in thousands) 2019 2018 2018 Non-acquired loans: Commercial non-owner occupied real estate: Construction and land development $ 810,551 $ 841,445 $ 871,141 Commercial non-owner occupied 1,615,416 1,415,551 1,050,924 Total commercial non-owner occupied real estate 2,425,967 2,256,996 1,922,065 Consumer real estate: Consumer owner occupied 2,005,314 1,936,265 1,612,501 Home equity loans 508,326 495,148 448,582 Total consumer real estate 2,513,640 2,431,413 2,061,083 Commercial owner occupied real estate 1,601,360 1,517,551 1,296,738 Commercial and industrial 1,072,070 1,054,952 872,363 Other income producing property 214,235 214,353 198,684 Consumer 465,117 448,664 390,784 Other loans 18,224 9,357 20,795 Total non-acquired loans 8,310,613 7,933,286 6,762,512 Less allowance for loan losses (52,008) (51,194) (45,203) Non-acquired loans, net $ 8,258,605 $ 7,882,092 $ 6,717,309 The following is a summary of acquired non-credit impaired loans accounted for under FASB ASC Topic 310-20, net of related discount: March 31, December 31, March 31, (Dollars in thousands) 2019 2018 2018 FASB ASC Topic 310-20 acquired loans: Commercial non-owner occupied real estate: Construction and land development $ 113,572 $ 165,070 $ 349,532 Commercial non-owner occupied 629,394 679,253 783,466 Total commercial non-owner occupied real estate 742,966 844,323 1,132,998 Consumer real estate: Consumer owner occupied 610,376 628,813 683,614 Home equity loans 225,278 242,425 295,721 Total consumer real estate 835,654 871,238 979,335 Commercial owner occupied real estate 400,658 421,841 498,541 Commercial and industrial 173,840 212,537 344,171 Other income producing property 120,696 133,110 186,091 Consumer 104,923 111,777 133,802 Total FASB ASC Topic 310-20 acquired loans $ 2,378,737 $ 2,594,826 $ 3,274,938 The unamortized discount related to the acquired non-credit impaired loans totaled $30.2 million, $33.4 million, and $55.3 million at March 31, 2019, December 31, 2018, and March 31, 2018, respectively. In accordance with FASB ASC Topic 310-30, we aggregated acquired loans that have common risk characteristics into pools of loan categories as described in the table below. The following is a summary of acquired credit impaired loans accounted for under FASB ASC Topic 310-30 (identified as credit impaired at the time of acquisition), net of related discount: March 31, December 31, March 31, (Dollars in thousands) 2019 2018 2018 FASB ASC Topic 310-30 acquired loans: Commercial real estate $ 173,707 $ 196,764 $ 233,277 Commercial real estate—construction and development 32,257 32,942 46,219 Residential real estate 199,701 207,482 248,766 Consumer 40,182 42,492 48,801 Commercial and industrial 10,925 10,043 24,295 Total FASB ASC Topic 310-30 acquired loans 456,772 489,723 601,358 Less allowance for loan losses (4,514) (4,604) (4,084) FASB ASC Topic 310-30 acquired loans, net $ 452,258 $ 485,119 $ 597,274 The table below reflects refined contractual loan payments (principal and interest), estimates of the amounts not expected to be collected (non-accretable difference), accretable yield (interest income recognized over time), and the resulting fair values at the acquisition date for Park Sterling Corporation (“PSC”) (November 30, 2017) for loans accounted for using FASB ASC Topic 310-30. During the second quarter of 2018, the initial fair value of loans at acquisition were adjusted to reflect movement of loans between the ASC Topic 310-20 portfolio and the ASC Topic 310-30 portfolio and the movement in interest rates from the initial valuation. November 30, 2017 Loans Impaired (Dollars in thousands) at Acquisition Contractual principal and interest $ 113,584 Non-accretable difference (27,248) Cash flows expected to be collected 86,336 Accretable difference (7,369) Carrying value $ 78,967 The table above excludes $2.1 billion ($2.2 billion in contractual principal less a $46.5 million fair value adjustment) in acquired loans at fair value that were identified as either performing with no discount related to the credit or as revolving lines of credit (commercial or consumer) as of the acquisition date and will be accounted for under FASB ASC Topic 310-20. The table below reflects refined contractual loan payments (principal and interest), estimates of the amounts not expected to be collected (non-accretable difference), accretable yield (interest income recognized over time), and the resulting fair values at the acquisition date for Southeastern Bank Financial Corporation (“SBFC”) (January 3, 2017) for loans accounted for using FASB ASC Topic 310-30. During the third quarter of 2017, the initial fair values of the acquired loan portfolios were adjusted to reflect movement of loans between the ASC Topic 310-20 portfolio and the ASC Topic 310-30 portfolio . January 3, 2017 Loans Impaired (Dollars in thousands) at Acquisition Contractual principal and interest $ 78,963 Non-accretable difference (13,072) Cash flows expected to be collected 65,891 Accretable difference (4,910) Carrying value $ 60,981 The table above excludes $986.5 million ($1.0 billion in contractual principal less a $18.8 million fair value adjustment) in acquired loans at fair value that were identified as either performing with no discount related to the credit or as revolving lines of credit (commercial or consumer) as of the acquisition date and will be accounted for under FASB ASC Topic 310-20. Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting carrying values of acquired credit impaired loans as of March 31, 2019, December 31, 2018 and March 31, 2018 are as follows: March 31, December 31, March 31, (Dollars in thousands) 2019 2018 2018 Contractual principal and interest $ 583,518 $ 626,691 $ 760,973 Non-accretable difference (24,282) (24,818) (33,841) Cash flows expected to be collected 559,236 601,873 727,132 Accretable yield (106,978) (116,754) (129,858) Carrying value $ 452,258 $ 485,119 $ 597,274 Income on acquired credit impaired loans that are not impaired at the acquisition date is recognized in the same manner as loans impaired at the acquisition date. A portion of the fair value discount on acquired non-impaired loans has been ascribed as an accretable yield that is accreted into interest income over the estimated remaining life of the loans. The remaining nonaccretable difference represents cash flows not expected to be collected. The following are changes in the carrying value of acquired credit impaired loans: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 485,119 $ 618,803 Net reductions for payments, foreclosures, and accretion (32,951) (22,072) Change in the allowance for loan losses on acquired loans 90 543 Balance at end of period, net of allowance for loan losses on acquired loans $ 452,258 $ 597,274 The table below reflects refined accretable yield balance for acquired credit impaired loans: Three Months Ended March 31, (Dollars in thousands) 2019 2018 Balance at beginning of period $ 116,754 $ 133,096 Contractual interest income (7,078) (8,696) Accretion on acquired loans (5,120) (3,801) Reclass of nonaccretable difference due to improvement in expected cash flows 2,474 9,335 Other changes, net (52) (76) Balance at end of period $ 106,978 $ 129,858 The table above reflects the changes in the carrying amount of accretable yield for the acquired credit impaired loans and shows both the contractual interest income and incremental accretion for the three months ended March 31, 2019 and 2018. In the first quarter of 2019, the accretable yield balance declined by $9.8 million as total contractual interest and accretion income of $12.2 million was recognized. This was partially offset by improved expected cash flows of $2.5 million. The improved cash flows for the prior year was adjusted to accurately reflect the split between income types. As of March 31, 2019, the table above excludes $2.4 billion ($2.4 billion in contractual principal less a $30.2 million discount) in acquired loans which are accounted for under FASB ASC Topic 310-20. These loans were identified as either performing with no discount related to the credit or as a revolving lines of credit (commercial or consumer) at acquisition. As of March 31, 2018, the balance of these acquired loans totaled $3.3 billion ($3.3 billion in contractual principal less a $55.3 million remaining discount). Our loan loss policy adheres to GAAP as well as interagency guidance. The allowance for loan losses, which we sometimes refer to herein as ALLL, is based upon estimates made by management. We maintain an allowance for loan losses at a level that we believe is appropriate to cover estimated credit losses on individually evaluated loans that are determined to be impaired as well as estimated credit losses inherent in the remainder of our loan portfolio. Arriving at the allowance involves a high degree of management judgment and results in a range of estimated losses. We regularly evaluate the adequacy of the allowance through our internal risk rating system, outside credit review, and regulatory agency examinations to assess the quality of the loan portfolio and identify problem loans. The evaluation process also includes our analysis of current economic conditions, composition of the loan portfolio, past due and nonaccrual loans, concentrations of credit, lending policies and procedures, and historical loan loss experience. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on, among other factors, changes in economic conditions in our markets. In addition, regulatory agencies, as an integral part of their examination process, periodically review our allowances for losses on loans. These agencies may require management to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these and other factors, it is possible that the allowances for losses on loans may change. The provision for loan losses is charged to expense in an amount necessary to maintain the allowance at an appropriate level. The allowance for loan losses on non‑acquired loans consists of general and specific reserves. The general reserves are determined by applying loss percentages to the portfolio that are based on historical loss experience for each class of loans and management’s evaluation and “risk grading” of the loan portfolio. Additionally, the general economic and business conditions affecting key lending areas, credit quality trends, collateral values, loan volumes and concentrations, seasoning of the loan portfolio, the findings of internal and external credit reviews and results from external bank regulatory examinations are included in this evaluation. Currently, these adjustments are applied to the non‑acquired loan portfolio when estimating the level of reserve required. The specific reserves are determined on a loan‑by‑loan basis based on management’s evaluation of our exposure for each credit, given the current payment status of the loan and the value of any underlying collateral. These are loans classified by management as doubtful or substandard. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. Generally, the need for specific reserve is evaluated on impaired loans, and once a specific reserve is established for a loan, a charge off of that amount occurs in the quarter subsequent to the establishment of the specific reserve. Loans that are determined to be impaired are provided a specific reserve, if necessary, and are excluded from the calculation of the general reserves. Beginning with the First Financial Holdings, Inc. acquisition, we segregated the loan portfolio into performing loans (“non‑credit impaired) and purchased credit impaired loans. The performing loans and revolving type loans are accounted for under FASB ASC 310‑20, with each loan being accounted for individually. The allowance for loan losses on these loans will be measured and recorded consistent with non‑acquired loans. The acquired credit impaired loans will follow the description in the next paragraph. In determining the acquisition date fair value of purchased loans, and in subsequent accounting, we generally aggregate purchased loans into pools of loans with common risk characteristics. Expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level yield method if the timing and amount of the future cash flows of the pool is reasonably estimable. Subsequent to the acquisition date, increases in cash flows over those expected at the acquisition date are reclassified from the non‑accretable difference to accretable yield and recognized as interest income prospectively. Decreases in expected cash flows after the acquisition date are recognized by recording an allowance for loan losses. Management analyzes the acquired loan pools using various assessments of risk to determine an expected loss. The expected loss is derived based upon a loss given default based upon the collateral type and/or detailed review by loan officers and the probability of default that is determined based upon historical data at the loan level. All acquired loans managed by Special Asset Management are reviewed quarterly and assigned a loss given default. Acquired loans not managed by Special Asset Management are reviewed twice a year in a similar method to our originated portfolio of loans which follow review thresholds based on risk rating categories. In the fourth quarter of 2015, we modified its methodology to a more granular approach in determining loss given default on substandard loans with a net book balance between $100,000 and $500,000 by adjusting the loss given default to 90% of the most current collateral valuation based on appraised value. Substandard loans greater than $500,000 were individually assigned loss given defaults each quarter. Trends are reviewed in terms of accrual status, past due status, and weighted‑average grade of the loans within each of the accounting pools. In addition, the relationship between the change in the unpaid principal balance and change in the mark is assessed to correlate the directional consistency of the expected loss for each pool. An aggregated analysis of the changes in allowance for loan losses is as follows: Non-acquired Acquired Non-Credit Acquired Credit (Dollars in thousands) Loans Impaired Loans Impaired Loans Total Three Months Ended March 31, 2019: Balance at beginning of period $ 51,194 $ — $ 4,604 $ 55,798 Loans charged-off (1,245) (374) — (1,619) Recoveries of loans previously charged off (1) 752 206 — 958 Net charge-offs (493) (168) — (661) Provision for loan losses charged to operations 1,307 168 13 1,488 Reduction due to loan removals — — (103) (103) Balance at end of period $ 52,008 $ — $ 4,514 $ 56,522 Three Months Ended March 31, 2018: Balance at beginning of period $ 43,448 $ — $ 4,627 $ 48,075 Loans charged-off (1,169) (334) — (1,503) Recoveries of loans previously charged off (1) 802 165 — 967 Net charge-offs (367) (169) — (536) Provision for loan losses charged to operations 2,122 169 163 2,454 Reduction due to loan removals — — (706) (706) Balance at end of period $ 45,203 $ — $ 4,084 $ 49,287 (1) – Recoveries related to acquired credit impaired loans are recorded through other noninterest income on the consolidated statement of income and do not run through the ALLL. The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for non-acquired loans: Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing Other (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Loans Total Three Months Ended March 31, 2019 Allowance for loan losses: Balance, December 31, 2018 $ 5,682 $ 8,754 $ 9,369 $ 11,913 $ 3,434 $ 7,454 $ 1,446 $ 3,101 $ 41 $ 51,194 Charge-offs — — (12) (37) (15) (19) — (1,162) — (1,245) Recoveries 299 22 25 2 36 71 45 252 — 752 Provision (benefit) (610) 964 247 180 (182) (257) (104) 1,004 65 1,307 Balance, March 31, 2019 $ 5,371 $ 9,740 $ 9,629 $ 12,058 $ 3,273 $ 7,249 $ 1,387 $ 3,195 $ 106 $ 52,008 Loans individually evaluated for impairment $ 786 $ 60 $ 21 $ 37 $ 161 $ 420 $ 111 $ 3 $ — $ 1,599 Loans collectively evaluated for impairment $ 4,585 $ 9,680 $ 9,608 $ 12,021 $ 3,112 $ 6,829 $ 1,276 $ 3,192 $ 106 $ 50,409 Loans: Loans individually evaluated for impairment $ 38,257 $ 375 $ 4,220 $ 6,885 $ 2,754 $ 1,315 $ 2,357 $ 110 $ — $ 56,273 Loans collectively evaluated for impairment 772,294 1,615,041 1,597,140 1,998,429 505,572 1,070,755 211,878 465,007 18,224 8,254,340 Total non-acquired loans $ 810,551 $ 1,615,416 $ 1,601,360 $ 2,005,314 $ 508,326 $ 1,072,070 $ 214,235 $ 465,117 $ 18,224 $ 8,310,613 Three Months Ended March 31, 2018 Allowance for loan losses: Balance, December 31, 2017 $ 5,921 $ 6,525 $ 8,128 $ 9,668 $ 3,250 $ 5,488 $ 1,375 $ 2,788 $ 305 $ 43,448 Charge-offs (35) — — (4) (66) (85) — (979) — (1,169) Recoveries 442 2 8 23 101 15 8 203 — 802 Provision (benefit) (481) 271 210 506 (48) 915 10 887 (148) 2,122 Balance, March 31, 2018 $ 5,847 $ 6,798 $ 8,346 $ 10,193 $ 3,237 $ 6,333 $ 1,393 $ 2,899 $ 157 $ 45,203 Loans individually evaluated for impairment $ 767 $ 110 $ 63 $ 35 $ 73 $ 489 $ 166 $ 9 $ — $ 1,712 Loans collectively evaluated for impairment $ 5,080 $ 6,688 $ 8,283 $ 10,158 $ 3,164 $ 5,844 $ 1,227 $ 2,890 $ 157 $ 43,491 Loans: Loans individually evaluated for impairment $ 46,198 $ 1,181 $ 5,578 $ 5,493 $ 3,168 $ 1,677 $ 3,086 $ 315 $ — $ 66,696 Loans collectively evaluated for impairment 824,943 1,049,743 1,291,160 1,607,008 445,414 870,686 195,598 390,469 20,795 6,695,816 Total non-acquired loans $ 871,141 $ 1,050,924 $ 1,296,738 $ 1,612,501 $ 448,582 $ 872,363 $ 198,684 $ 390,784 $ 20,795 $ 6,762,512 The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired non-credit impaired loans: Construction Commercial Commercial Consumer Other Income & Land Non-owner Owner Owner Home Commercial Producing (Dollars in thousands) Development Occupied Occupied Occupied Equity & Industrial Property Consumer Other Total Three Months Ended March 31, 2019 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (6) — — — (72) (134) (26) (136) — (374) Recoveries 1 — — 2 22 165 — 16 — 206 Provision (benefit) 5 — — (2) 50 (31) 26 120 — 168 Balance, March 31, 2019 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 113,572 629,394 400,658 610,376 225,278 173,840 120,696 104,923 — 2,378,737 Total acquired non-credit impaired loans $ 113,572 $ 629,394 $ 400,658 $ 610,376 $ 225,278 $ 173,840 $ 120,696 $ 104,923 $ — $ 2,378,737 Three Months Ended March 31, 2018 Allowance for loan losses: Balance at beginning of period $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Charge-offs (1) — — (70) (82) (43) — (138) — (334) Recoveries 1 — — 57 51 53 — 3 — 165 Provision (benefit) — — — 13 31 (10) — 135 — 169 Balance, March 31, 2018 $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans: Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 349,532 783,466 498,541 683,614 295,721 344,171 186,091 133,802 — 3,274,938 Total acquired non-credit impaired loans $ 349,532 $ 783,466 $ 498,541 $ 683,614 $ 295,721 $ 344,171 $ 186,091 $ 133,802 $ — $ 3,274,938 The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired credit impaired loans: Commercial Real Estate- Commercial Construction and Residential Commercial (Dollars in thousands) Real Estate Development Real Estate Consumer and Industrial Total Three Months Ended March 31, 2019 Allowance for loan losses: Balance, December 31, 2018 $ 801 $ 717 $ 2,246 $ 761 $ 79 $ 4,604 Provision (benefit) for loan losses 51 — 16 — 13 Reduction due to loan removals (5) — — — Balance, March 31, 2019 $ 847 $ 717 $ 2,164 $ 707 $ 79 $ 4,514 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 847 $ 717 $ 2,164 $ 707 $ 79 $ 4,514 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 173,707 32,257 199,701 40,182 10,925 456,772 Total acquired credit impaired loans $ 173,707 $ 32,257 $ 199,701 $ 40,182 $ 10,925 $ 456,772 Three Months Ended March 31, 2018 Allowance for loan losses: Balance , December 31, 2017 $ 288 $ 180 $ 3,553 $ 461 $ 145 $ 4,627 Provision (benefit) for loan losses (14) 88 (944) 133 900 163 Reduction due to loan removals (13) (53) (100) — (540) (706) Balance, March 31, 2018 $ 261 $ 215 $ 2,509 $ 594 $ 505 $ 4,084 Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment $ 261 $ 215 $ 2,509 $ 594 $ 505 $ 4,084 Loans:* Loans individually evaluated for impairment $ — $ — $ — $ — $ — $ — Loans collectively evaluated for impairment 233,277 46,219 248,766 48,801 24,295 601,358 Total acquired credit impaired loans $ 233,277 $ 46,219 $ 248,766 $ 48,801 $ 24,295 $ 601,358 *— The carrying value of acquired credit impaired loans includes a non-accretable difference which is primarily associated with the assessment of credit quality of acquired loans. As part of the ongoing monitoring of the credit quality of our loan portfolio, management tracks certain credit quality indicators, including trends related to (i) the level of classified loans, (ii) net charge-offs, (iii) non-performing loans (see details below), and (iv) the general economic conditions of the markets that we serve. We utilize a risk grading matrix to assign a risk grade to each of its loans. A description of the general characteristics of the risk grades is as follows: · Pass—These loans range from minimal credit risk to average, however, still acceptable credit risk. · Special mention—A special mention loan has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution’s credit position at some future date. · Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. · Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable. The following table presents the credit risk profile by risk grade of commercial loans for non-acquired loans: Construction & Development Commercial Non-owner Occupied Commercial Owner Occupied March 31, December 31, March 31, March 31, December 31, March 31, March 31, December 31, March 31, (Dollars in thousands) 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 801,949 $ 832,612 $ 857,307 $ 1,607,034 $ 1,407,744 $ 1,040,669 $ 1,564,083 $ 1,480,267 $ 1,267,759 Special mention 5,303 6,015 10,499 7,372 6,427 8,497 24,241 24,576 22,619 Substandard 3,299 2,818 3,335 1,010 1,380 1,758 13,036 12,708 6,360 Doubtful — — — — — — — — — $ 810,551 $ 841,445 $ 871,141 $ 1,615,416 $ 1,415,551 $ 1,050,924 $ 1,601,360 $ 1,517,551 $ 1,296,738 Commercial & Industrial Other Income Producing Property Commercial Total March 31, December 31, March 31, March 31, December 31, March 31, March 31, December 31, March 31, 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 1,054,732 $ 1,037,915 $ 857,567 $ 208,345 $ 208,186 $ 191,856 $ 5,236,143 $ 4,966,724 $ 4,215,158 Special mention 7,056 5,887 12,286 4,250 4,706 5,321 48,222 47,611 59,222 Substandard 10,282 11,150 2,510 1,640 1,461 1,507 29,267 29,517 15,470 Doubtful — — — — — — — — — $ 1,072,070 $ 1,054,952 $ 872,363 $ 214,235 $ 214,353 $ 198,684 $ 5,313,632 $ 5,043,852 $ 4,289,850 The following table presents the credit risk profile by risk grade of consumer loans for non-acquired loans: Consumer Owner Occupied Home Equity Consumer March 31, December 31, March 31, March 31, December 31, March 31, March 31, December 31, March 31, (Dollars in thousands) 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 1,978,122 $ 1,909,427 $ 1,584,427 $ 495,127 $ 481,607 $ 435,282 $ 463,271 $ 446,823 $ 389,386 Special mention 10,769 11,304 13,329 6,915 7,293 6,767 467 437 301 Substandard 16,423 15,534 14,745 6,284 6,248 6,533 1,379 1,404 1,097 Doubtful — — — — — — — — — $ 2,005,314 $ 1,936,265 $ 1,612,501 $ 508,326 $ 495,148 $ 448,582 $ 465,117 $ 448,664 $ 390,784 Other Consumer Total March 31, 2019 December 31, 2018 March 31, 2018 March 31, 2019 December 31, 2018 March 31, 2018 Pass $ 18,224 $ 9,357 $ 20,795 $ 2,954,744 $ 2,847,214 $ 2,429,890 Special mention — — — 18,151 19,034 20,397 Substandard — — — 24,086 23,186 22,375 Doubtful — — — — — — $ 18,224 $ 9,357 $ 20,795 $ 2,996,981 $ 2,889,434 $ 2,472,662 The following table presents the credit risk profile by risk grade of total non-acquired loans: Total Non-acquired Loans March 31, December 31, March 31, (Dollars in thousands) 2019 2018 2018 Pass $ 8,190,887 $ 7,813,938 $ 6,645,048 Special mention 66,373 66,645 79,619 Substandard 53,353 52,703 37,845 Doubtful — — — $ 8,310,613 $ 7,933,286 $ 6,762,512 The following table presents the credit risk profile by risk grade of commercial loans for acquired non-credit impaired loans: Commercial Non-owner Construction & Development Occupied Commercial Owner Occupied March 31, December 31, March 31, March 31, December 31, March 31, March 31, December 31, March 31, (Dollars in thousands) 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 111,414 $ 163,777 $ 345,635 $ 615,277 $ 665,913 $ 775,924 $ 380,536 $ 411,783 $ 490,089 Special mention 845 838 2,892 13,682 13,018 7,533 15,440 5,664 8,254 Substandard 1,313 455 1,005 435 322 9 4,682 4,394 198 Doubtful — — — — — — — — — $ 113,572 $ 165,070 $ 349,532 $ 629,394 $ 679,253 $ 783,466 $ 400,658 $ 421,841 $ 498,541 Other Income Producing Commercial & Industrial Property Commercial Total March 31, December 31, March 31, March 31, December 31, March 31, March 31, December 31, March 31, 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 163,298 $ 202,399 $ 327,409 $ 113,047 $ 125,399 $ 180,825 $ 1,383,572 $ 1,569,271 $ 2,119,882 Special mention 7,897 6,523 8,049 6,333 6,419 4,369 44,197 32,462 31,097 Substandard 2,645 3,615 8,713 1,316 1,292 897 10,391 10,078 10,822 Doubtful — — — — — — — — — $ 173,840 $ 212,537 $ 344,171 $ 120,696 $ 133,110 $ 186,091 $ 1,438,160 $ 1,611,811 $ 2,161,801 The following table presents the credit risk profile by risk grade of consumer loans for acquired non-credit impaired loans: Consumer Owner Occupied Home Equity Consumer March 31, December 31, March 31, March 31, December 31, March 31, March 31, December 31, March 31, (Dollars in thousands) 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 597,220 $ 617,391 $ 676,981 $ 210,066 $ 227,515 $ 279,487 $ 101,907 $ 108,833 $ 130,915 Special mention 7,325 7,868 4,484 7,623 7,688 8,942 666 698 520 Substandard 5,831 3,554 2,149 7,589 7,222 7,292 2,350 2,246 2,367 Doubtful — — — — — — — — — $ 610,376 $ 628,813 $ 683,614 $ 225,278 $ 242,425 $ 295,721 $ 104,923 $ 111,777 $ 133,802 Consumer Total March 31, December 31, March 31, 2019 2018 2018 Pass $ 909,193 $ 953,739 $ 1,087,383 Special mention 15,614 16,254 13,946 Substandard 15,770 13,022 11,808 Doubtful — — — $ 940,577 $ 983,015 $ 1,113,137 The following table presents the credit risk profile by risk grade of total acquired non-credit impaired loans: Total Acquired Non-credit Impaired Loans March 31, December 31, March 31, (Dollars in thousands) 2019 2018 2018 Pass $ 2,292,765 $ 2,523,010 $ 3,207,265 Special mention 59,811 48,716 45,043 Substandard 26,161 23,100 22,630 Doubtful — — — $ 2,378,737 $ 2,594,826 $ 3,274,938 The following table presents the credit risk profile by risk grade of acquired credit impaired loans (identified as credit-impaired at the time of acquisition), net of the related discount (this table should be read in conjunction with the allowance for acquired credit impaired loan losses table found on page 24): Commercial Real Estate— Construction and Commercial Real Estate Development March 31, December 31, March 31, March 31, December 31, March 31, (Dollars in thousands) 2019 2018 2018 2019 2018 2018 Pass $ 140,785 $ 160,788 $ 171,585 $ 20,950 $ 20,293 $ 28,501 Special mention 13,025 14,393 24,550 3,500 3,001 4,654 Substandard 19,897 21,583 37,142 7,807 9,648 13,064 Doubtful — — — — — — $ 173,707 $ 196,764 $ 233,277 $ 32,257 $ 32,942 $ 46,219 Residential Real Estate Consumer Commercial & Industrial March 31, December 31, March 31, March 31, December 31, March 31, March 31, December 31, March 31, 2019 2018 2018 2019 2018 2018 2019 2018 2018 Pass $ 100,803 $ 104,181 $ 129,952 $ 5,134 $ 5,751 $ 7,247 $ 6,802 $ 5,093 $ 17,163 Special mention 40,036 41,964 50,845 13,935 14,484 16,329 530 546 1,132 Substandard 58,862 61,337 67,969 21,113 22,257 25,225 3,593 4,404 6,000 Doubtful — — — — — — — — — $ 199,701 $ 207,482 $ 248,766 $ 40,182 $ 42,492 $ 48,801 $ 10,925 $ 10,043 $ 24,295 Total Acquired Credit Impaired Loans March 31, December 31, March 31, 2019 2018 2018 Pass $ 274,474 $ 296,106 $ 354,448 Special mention 71,026 74,388 97,510 Substandard 111,272 119,229 149,400 Doubtful — — — $ 456,772 $ 489,723 $ 601,358 The risk grading of acquired credit impaired loans is determined utilizing a loan’s contractual balance, while the amount recorded in the financial statements and reflected above is the carrying value. The following table presents an aging analysis of past due loans (includes nonaccrual loans), segregated by class for non-acquired loans: 30 - 59 Days 60 - 89 Days 90+ Days Total Total (Dollars in thousands) Past Due Past Due Past Due Past Due Current Loans March 31, 2019 Commercial real estate: Construction and land development $ 563 $ 141 $ 283 $ 987 $ 809,564 $ 810,551 Commercial non-owner occupied — — 22 22 1,615,394 1,615,416 Commercial owner occupied 3,336 1,556 889 5,781 1,595,579 1,601,360 Consumer real estate: Consumer owner occupied 1,929 743 2,510 5,182 2,000,132 2,005,314 Home equity loans 333 206 1,022 1,561 506,765 508,326 Commercial and industrial 4,658 222 614 5,494 1,066,576 1,072,070 Other income producing property 658 — 372 1,030 213,205 214,235 Consumer 471 230 677 1,378 463,739 465,117 Other loans — — — — 18,224 18,224 $ 11,948 $ 3,098 $ 6,389 $ 21,435 $ 8,289,178 $ 8,310,613 December 31, 2018 Commercial real estate: Construction and land development $ 693 $ 305 $ 452 $ 1,450 $ 839,995 $ 841,445 Commercial non-owner occupied 68 18 396 482 1,415,069 1,415,551 Commercial owner occupied 1,639 1,495 904 4,038 1,513,513 1,517,551 Consumer real estate: Consumer owner occupied 1,460 789 943 3,192 1,933,073 1,936,265 Home equity loans 744 532 713 1,989 493,159 495,148 Commercial and industrial 898 120 573 1,591 1,053,361 1,054,952 Other income producing property 169 26 289 484 213,869 214,353 Consumer 437 174 718 1,329 447,335 448,664 Other loans — — — — 9,357 9,357 $ 6,108 $ 3,459 $ 4,988 $ 14,555 $ 7,918,731 $ 7,933,286 March 31, 2018 Commercial real estate: Construction and land development $ 673 $ 4 $ 133 $ 810 $ 870,331 $ 871,141 Commercial non-owner occupied 89 20 707 816 1,0 |