Loans Allowance for Loan Losses and Credit Quality | 9 Months Ended |
Sep. 30, 2014 |
Loans Allowance for Loan Losses and Credit Quality Disclosure [Line Items] | ' |
Loans, Allowance for Loan Losses, and Credit Quality | ' |
NOTE 6: Loans, Allowance for Credit Losses, and Credit Quality |
The period end loan composition was as follows. | | | | | | | | | |
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| | | | | September 30, | | | December 31, | | | | | | | | | | |
| | | | | 2014 | | | 2013 | | | | | | | | | | |
| | | | | ($ in Thousands) | | | | | | | | | | |
Commercial and industrial | $ | 5,603,899 | | $ | 4,822,680 | | | | | | | | | | |
Commercial real estate - owner occupied | | 1,014,335 | | | 1,114,715 | | | | | | | | | | |
Lease financing | | 52,600 | | | 55,483 | | | | | | | | | | |
| Commercial and business lending | | 6,670,834 | | | 5,992,878 | | | | | | | | | | |
Commercial real estate - investor | | 3,043,361 | | | 2,939,456 | | | | | | | | | | |
Real estate construction | | 982,426 | | | 896,248 | | | | | | | | | | |
| Commercial real estate lending | | 4,025,787 | | | 3,835,704 | | | | | | | | | | |
| | Total commercial | | 10,696,621 | | | 9,828,582 | | | | | | | | | | |
Home equity | | 1,676,525 | | | 1,825,014 | | | | | | | | | | |
Installment and credit cards | | 459,682 | | | 407,074 | | | | | | | | | | |
Residential mortgage | | 4,326,262 | | | 3,835,591 | | | | | | | | | | |
| | Total consumer | | 6,462,469 | | | 6,067,679 | | | | | | | | | | |
| | | Total loans | $ | 17,159,090 | | $ | 15,896,261 | | | | | | | | | | |
A summary of the changes in the allowance for credit losses was as follows. | | | | | | | | | | |
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| | Nine Months Ended | | Year Ended | | | | | | | | | | | | |
| | 30-Sep-14 | | 31-Dec-13 | | | | | | | | | | | | |
| | | ($ in Thousands) | | | | | | | | | | | | |
Allowance for Loan Losses: | | | | | | | | | | | | | | | | | |
Balance at beginning of period | $ | 268,315 | | $ | 297,409 | | | | | | | | | | | | |
Provision for loan losses | | 8,500 | | | 10,000 | | | | | | | | | | | | |
Charge offs | | -35,318 | | | -88,061 | | | | | | | | | | | | |
Recoveries | | 24,765 | | | 48,967 | | | | | | | | | | | | |
| Net charge offs | | -10,553 | | | -39,094 | | | | | | | | | | | | |
Balance at end of period | $ | 266,262 | | $ | 268,315 | | | | | | | | | | | | |
Allowance for Unfunded Commitments: | | | | | | | | | | | | | | | | | |
Balance at beginning of period | $ | 21,900 | | $ | 21,800 | | | | | | | | | | | | |
Provision for unfunded commitments | | 2,500 | | | 100 | | | | | | | | | | | | |
Balance at end of period | $ | 24,400 | | $ | 21,900 | | | | | | | | | | | | |
Allowance for Credit Losses | $ | 290,662 | | $ | 290,215 | | | | | | | | | | | | |
The level of the allowance for loan losses represents management's estimate of an amount appropriate to provide for probable credit losses in the loan portfolio at the balance sheet date. In general, the change in the allowance for loan losses is a function of a number of factors, including but not limited to changes in the loan portfolio, net charge offs, trends in past due and impaired loans, and the level of potential problem loans. Management considers the allowance for loan losses a critical accounting policy, as assessing these numerous factors involves significant judgment. |
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The allowance for unfunded commitments is maintained at a level believed by management to be sufficient to absorb estimated probable losses related to unfunded credit facilities (including unfunded loan commitments and letters of credit) and is included in accrued expenses and other liabilities on the consolidated balance sheets. The determination of the appropriate level of the allowance for unfunded commitments is based upon an evaluation of the unfunded credit facilities, including an assessment of historical commitment utilization experience and credit risk grading of the loan. Net adjustments to the allowance for unfunded commitments are included in provision for credit losses in the consolidated statements of income. See Note 12 for additional information on the allowance for unfunded commitments. |
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A summary of the changes in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2014, was as follows. |
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$ in Thousands | Commercial and industrial | Commercial real estate - owner occupied | Lease financing | Commercial real estate - investor | Real estate construction | Home equity | Installment and credit cards | Residential mortgage | | Total |
| | | | | | | | |
Balance at Dec 31, 2013 | $ | 104,501 | $ | 19,476 | $ | 1,607 | $ | 58,156 | $ | 23,418 | $ | 32,196 | $ | 2,416 | $ | 26,545 | $ | 268,315 |
Provision for loan losses | | 18,700 | | 1,098 | | 777 | | -14,292 | | -3,831 | | 1,278 | | 3,486 | | 1,284 | | 8,500 |
Charge offs | | -11,421 | | -2,963 | | -29 | | -4,358 | | -1,761 | | -9,713 | | -1,751 | | -3,322 | | -35,318 |
Recoveries | | 9,501 | | 1,427 | | 6 | | 9,693 | | 503 | | 2,546 | | 481 | | 608 | | 24,765 |
Balance at Sep 30, 2014 | $ | 121,281 | $ | 19,038 | $ | 2,361 | $ | 49,199 | $ | 18,329 | $ | 26,307 | $ | 4,632 | $ | 25,115 | $ | 266,262 |
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Allowance for loan losses: | | | | | | | | | | |
Ending balance impaired loans individually evaluated for impairment | $ | 14,006 | $ | 1,672 | $ | 735 | $ | 1,829 | $ | 1,140 | $ | 11 | $ | - | $ | 588 | $ | 19,981 |
Ending balance impaired loans collectively evaluated for impairment | $ | 3,590 | $ | 2,404 | $ | 4 | $ | 2,429 | $ | 1,021 | $ | 12,480 | $ | 339 | $ | 11,503 | $ | 33,770 |
Total impaired loans | $ | 17,596 | $ | 4,076 | $ | 739 | $ | 4,258 | $ | 2,161 | $ | 12,491 | $ | 339 | $ | 12,091 | $ | 53,751 |
Ending balance all other loans collectively evaluated for impairment | $ | 103,685 | $ | 14,962 | $ | 1,622 | $ | 44,941 | $ | 16,168 | $ | 13,816 | $ | 4,293 | $ | 13,024 | $ | 212,511 |
Total | $ | 121,281 | $ | 19,038 | $ | 2,361 | $ | 49,199 | $ | 18,329 | $ | 26,307 | $ | 4,632 | $ | 25,115 | $ | 266,262 |
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Loans: | | | | | | | | | | | | | | | | | | |
Ending balance impaired loans individually evaluated for impairment | $ | 45,242 | $ | 17,927 | $ | 1,938 | $ | 21,204 | $ | 6,026 | $ | 1,025 | $ | - | $ | 10,390 | $ | 103,752 |
Ending balance impaired loans collectively evaluated for impairment | $ | 42,856 | $ | 17,987 | $ | 9 | $ | 28,342 | $ | 2,966 | $ | 30,818 | $ | 1,759 | $ | 60,252 | $ | 184,989 |
Total impaired loans | $ | 88,098 | $ | 35,914 | $ | 1,947 | $ | 49,546 | $ | 8,992 | $ | 31,843 | $ | 1,759 | $ | 70,642 | $ | 288,741 |
Ending balance all other loans collectively evaluated for impairment | $ | 5,515,801 | $ | 978,421 | $ | 50,653 | $ | 2,993,815 | $ | 973,434 | $ | 1,644,682 | $ | 457,923 | $ | 4,255,620 | $ | 16,870,349 |
Total | $ | 5,603,899 | $ | 1,014,335 | $ | 52,600 | $ | 3,043,361 | $ | 982,426 | $ | 1,676,525 | $ | 459,682 | $ | 4,326,262 | $ | 17,159,090 |
The allocation methodology used by the Corporation includes allocations for specifically identified impaired loans and loss factor allocations (used for both criticized and non-criticized loan categories), with a component primarily based on historical loss rates and a component primarily based on other qualitative factors. Management allocates the allowance for loan losses by pools of risk within each loan portfolio. The allocation of the allowance for loan losses by loan portfolio is made for analytical purposes and is not necessarily indicative of the trend of future loan losses in any particular category. The total allowance for loan losses is available to absorb losses from any segment of the loan portfolio. |
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For comparison purposes, a summary of the changes in the allowance for loan losses by portfolio segment for the year ended December 31, 2013, was as follows. |
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| | | | | | | | | | | | | | | | | | |
$ in Thousands | Commercial and industrial | Commercial real estate - owner occupied | Lease financing | Commercial real estate - investor | Real estate construction | Home equity | Installment | Residential mortgage | | Total |
Balance at Dec 31, 2012 | $ | 97,852 | $ | 27,389 | $ | 3,024 | $ | 63,181 | $ | 20,741 | $ | 56,826 | $ | 4,299 | $ | 24,097 | $ | 297,409 |
Provision for loan losses | | 12,930 | | -1,778 | | -1,429 | | -2,140 | | 541 | | -8,213 | | -2,127 | | 12,216 | | 10,000 |
Charge offs | | -35,146 | | -6,474 | | -206 | | -9,846 | | -3,375 | | -20,629 | | -1,389 | | -10,996 | | -88,061 |
Recoveries | | 28,865 | | 339 | | 218 | | 6,961 | | 5,511 | | 4,212 | | 1,633 | | 1,228 | | 48,967 |
Balance at Dec 31, 2013 | $ | 104,501 | $ | 19,476 | $ | 1,607 | $ | 58,156 | $ | 23,418 | $ | 32,196 | $ | 2,416 | $ | 26,545 | $ | 268,315 |
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Allowance for loan losses: | | | | | | | | | | | | | | |
Ending balance impaired loans individually evaluated for impairment | $ | 7,994 | $ | 1,019 | $ | - | $ | 3,932 | $ | 254 | $ | 123 | $ | - | $ | 315 | $ | 13,637 |
Ending balance impaired loans collectively evaluated for impairment | $ | 3,923 | $ | 1,936 | $ | 29 | $ | 3,963 | $ | 2,162 | $ | 13,866 | $ | 487 | $ | 11,872 | $ | 38,238 |
Total impaired loans | $ | 11,917 | $ | 2,955 | $ | 29 | $ | 7,895 | $ | 2,416 | $ | 13,989 | $ | 487 | $ | 12,187 | $ | 51,875 |
Ending balance all other loans collectively evaluated for impairment | $ | 92,584 | $ | 16,521 | $ | 1,578 | $ | 50,261 | $ | 21,002 | $ | 18,207 | $ | 1,929 | $ | 14,358 | $ | 216,440 |
Total | $ | 104,501 | $ | 19,476 | $ | 1,607 | $ | 58,156 | $ | 23,418 | $ | 32,196 | $ | 2,416 | $ | 26,545 | $ | 268,315 |
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Loans: | | | | | | | | | | | | | | | | | | |
Ending balance impaired loans individually evaluated for impairment | $ | 29,343 | $ | 24,744 | $ | - | $ | 32,367 | $ | 3,777 | $ | 929 | $ | - | $ | 10,526 | $ | 101,686 |
Ending balance impaired loans collectively evaluated for impairment | $ | 40,893 | $ | 17,929 | $ | 69 | $ | 50,175 | $ | 6,483 | $ | 33,871 | $ | 1,360 | $ | 56,947 | $ | 207,727 |
Total impaired loans | $ | 70,236 | $ | 42,673 | $ | 69 | $ | 82,542 | $ | 10,260 | $ | 34,800 | $ | 1,360 | $ | 67,473 | $ | 309,413 |
Ending balance all other loans collectively evaluated for impairment | $ | 4,752,444 | $ | 1,072,042 | $ | 55,414 | $ | 2,856,914 | $ | 885,988 | $ | 1,790,214 | $ | 405,714 | $ | 3,768,118 | $ | 15,586,848 |
Total | $ | 4,822,680 | $ | 1,114,715 | $ | 55,483 | $ | 2,939,456 | $ | 896,248 | $ | 1,825,014 | $ | 407,074 | $ | 3,835,591 | $ | 15,896,261 |
The following table presents commercial loans by credit quality indicator at September 30, 2014. | | | | | | | | |
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| | Pass | | Special Mention | | Potential Problem | | Impaired | | Total | | | | | | | | |
| | ($ in Thousands) | | | | | | | | |
Commercial and industrial | $ | 5,268,521 | $ | 113,864 | $ | 133,416 | $ | 88,098 | $ | 5,603,899 | | | | | | | | |
Commercial real estate - owner occupied | | 900,306 | | 29,107 | | 49,008 | | 35,914 | | 1,014,335 | | | | | | | | |
Lease financing | | 45,506 | | 1,360 | | 3,787 | | 1,947 | | 52,600 | | | | | | | | |
Commercial and business lending | | 6,214,333 | | 144,331 | | 186,211 | | 125,959 | | 6,670,834 | | | | | | | | |
Commercial real estate - investor | | 2,930,817 | | 34,524 | | 28,474 | | 49,546 | | 3,043,361 | | | | | | | | |
Real estate construction | | 967,914 | | 3,293 | | 2,227 | | 8,992 | | 982,426 | | | | | | | | |
Commercial real estate lending | | 3,898,731 | | 37,817 | | 30,701 | | 58,538 | | 4,025,787 | | | | | | | | |
Total commercial | $ | 10,113,064 | $ | 182,148 | $ | 216,912 | $ | 184,497 | $ | 10,696,621 | | | | | | | | |
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The following table presents commercial loans by credit quality indicator at December 31, 2013. | | | | | | | | |
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| | Pass | | Special Mention | | Potential Problem | | Impaired | | Total | | | | | | | | |
| | ($ in Thousands) | | | | | | | | |
Commercial and industrial | $ | 4,485,160 | $ | 153,615 | $ | 113,669 | $ | 70,236 | $ | 4,822,680 | | | | | | | | |
Commercial real estate - owner occupied | | 959,849 | | 55,404 | | 56,789 | | 42,673 | | 1,114,715 | | | | | | | | |
Lease financing | | 52,733 | | 897 | | 1,784 | | 69 | | 55,483 | | | | | | | | |
Commercial and business lending | | 5,497,742 | | 209,916 | | 172,242 | | 112,978 | | 5,992,878 | | | | | | | | |
Commercial real estate - investor | | 2,740,255 | | 64,230 | | 52,429 | | 82,542 | | 2,939,456 | | | | | | | | |
Real estate construction | | 877,911 | | 2,814 | | 5,263 | | 10,260 | | 896,248 | | | | | | | | |
Commercial real estate lending | | 3,618,166 | | 67,044 | | 57,692 | | 92,802 | | 3,835,704 | | | | | | | | |
Total commercial | $ | 9,115,908 | $ | 276,960 | $ | 229,934 | $ | 205,780 | $ | 9,828,582 | | | | | | | | |
The following table presents consumer loans by credit quality indicator at September 30, 2014. | | | | | | | | |
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| | Performing | | 30-89 Days Past Due | | Potential Problem | | Impaired | | Total | | | | | | | | |
| | ($ in Thousands) | | | | | | | | |
Home equity | $ | 1,633,033 | $ | 10,738 | $ | 911 | $ | 31,843 | $ | 1,676,525 | | | | | | | | |
Installment and credit cards | | 456,101 | | 1,818 | | 4 | | 1,759 | | 459,682 | | | | | | | | |
Residential mortgage | | 4,250,223 | | 3,231 | | 2,166 | | 70,642 | | 4,326,262 | | | | | | | | |
Total consumer | $ | 6,339,357 | $ | 15,787 | $ | 3,081 | $ | 104,244 | $ | 6,462,469 | | | | | | | | |
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The following table presents consumer loans by credit quality indicator at December 31, 2013. | | | | | | | | |
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| | Performing | | 30-89 Days Past Due | | Potential Problem | | Impaired | | Total | | | | | | | | |
| | ($ in Thousands) | | | | | | | | |
Home equity | $ | 1,777,421 | $ | 10,680 | $ | 2,113 | $ | 34,800 | $ | 1,825,014 | | | | | | | | |
Installment | | 404,514 | | 1,150 | | 50 | | 1,360 | | 407,074 | | | | | | | | |
Residential mortgage | | 3,758,688 | | 6,118 | | 3,312 | | 67,473 | | 3,835,591 | | | | | | | | |
Total consumer | $ | 5,940,623 | $ | 17,948 | $ | 5,475 | $ | 103,633 | $ | 6,067,679 | | | | | | | | |
Factors that are important to managing overall credit quality are sound loan underwriting and administration, systematic monitoring of existing loans and commitments, effective loan review on an ongoing basis, early identification of potential problems, and appropriate allowance for credit losses, nonaccrual and charge off policies. |
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For commercial loans, management has determined the pass credit quality indicator to include credits that exhibit acceptable financial statements, cash flow, and leverage. If any risk exists, it is mitigated by the loan structure, collateral, monitoring, or control. For consumer loans, performing loans include credits that are performing in accordance with the original contractual terms. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Special mention credits have potential weaknesses that deserve management's attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the credit. Potential problem loans are considered inadequately protected by the current net worth and paying capacity of the obligor or the collateral pledged. These loans generally have a well-defined weakness, or weaknesses that may jeopardize liquidation of the debt and are characterized by the distinct possibility that the Corporation will sustain some loss if the deficiencies are not corrected. Lastly, management considers a loan to be impaired when it is probable that the Corporation will be unable to collect all amounts due according to the original contractual terms of the note agreement, including both principal and interest. Management has determined that commercial and consumer loan relationships that have nonaccrual status or have had their terms restructured in a troubled debt restructuring meet this impaired loan definition. Commercial loans classified as special mention, potential problem, and impaired are reviewed at a minimum on a quarterly basis, while pass and performing rated credits are reviewed on an annual basis or more frequently if the loan renewal is less than one year or if otherwise warranted. |
The following table presents loans by past due status at September 30, 2014. | | | | | | |
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| | 30-59 Days Past Due | | 60-89 Days Past Due | 90 Days or More Past Due * | Total Past Due | | Current | | Total | | | | | | |
| ($ in Thousands) | | | | | | |
Accruing loans | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 2,035 | $ | 1,912 | $ | 269 | $ | 4,216 | $ | 5,548,540 | $ | 5,552,756 | | | | | | |
Commercial real estate - owner occupied | | 1,024 | | 1,651 | | - | | 2,675 | | 987,320 | | 989,995 | | | | | | |
Lease financing | | - | | - | | - | | - | | 50,653 | | 50,653 | | | | | | |
Commercial and business lending | | 3,059 | | 3,563 | | 269 | | 6,891 | | 6,586,513 | | 6,593,404 | | | | | | |
Commercial real estate - investor | | 15,869 | | - | | - | | 15,869 | | 3,002,386 | | 3,018,255 | | | | | | |
Real estate construction | | 299 | | 100 | | - | | 399 | | 973,840 | | 974,239 | | | | | | |
Commercial real estate lending | | 16,168 | | 100 | | - | | 16,268 | | 3,976,226 | | 3,992,494 | | | | | | |
Total commercial | | 19,227 | | 3,663 | | 269 | | 23,159 | | 10,562,739 | | 10,585,898 | | | | | | |
Home equity | | 7,999 | | 2,739 | | - | | 10,738 | | 1,644,526 | | 1,655,264 | | | | | | |
Installment and credit cards | | 1,106 | | 712 | | 1,369 | | 3,187 | | 455,842 | | 459,029 | | | | | | |
Residential mortgage | | 2,944 | | 287 | | 52 | | 3,283 | | 4,271,478 | | 4,274,761 | | | | | | |
Total consumer | | 12,049 | | 3,738 | | 1,421 | | 17,208 | | 6,371,846 | | 6,389,054 | | | | | | |
Total accruing loans | $ | 31,276 | $ | 7,401 | $ | 1,690 | $ | 40,367 | $ | 16,934,585 | $ | 16,974,952 | | | | | | |
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Nonaccrual loans | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 2,061 | $ | 1,254 | $ | 7,633 | $ | 10,948 | $ | 40,195 | $ | 51,143 | | | | | | |
Commercial real estate - owner occupied | | 429 | | 582 | | 10,159 | | 11,170 | | 13,170 | | 24,340 | | | | | | |
Lease financing | | - | | - | | 550 | | 550 | | 1,397 | | 1,947 | | | | | | |
Commercial and business lending | | 2,490 | | 1,836 | | 18,342 | | 22,668 | | 54,762 | | 77,430 | | | | | | |
Commercial real estate - investor | | 140 | | 685 | | 8,418 | | 9,243 | | 15,863 | | 25,106 | | | | | | |
Real estate construction | | 64 | | 56 | | 1,061 | | 1,181 | | 7,006 | | 8,187 | | | | | | |
Commercial real estate lending | | 204 | | 741 | | 9,479 | | 10,424 | | 22,869 | | 33,293 | | | | | | |
Total commercial | | 2,694 | | 2,577 | | 27,821 | | 33,092 | | 77,631 | | 110,723 | | | | | | |
Home equity | | 1,606 | | 2,067 | | 10,607 | | 14,280 | | 6,981 | | 21,261 | | | | | | |
Installment and credit cards | | 57 | | 49 | | 138 | | 244 | | 409 | | 653 | | | | | | |
Residential mortgage | | 3,934 | | 2,657 | | 22,117 | | 28,708 | | 22,793 | | 51,501 | | | | | | |
Total consumer | | 5,597 | | 4,773 | | 32,862 | | 43,232 | | 30,183 | | 73,415 | | | | | | |
Total nonaccrual loans ** | $ | 8,291 | $ | 7,350 | $ | 60,683 | $ | 76,324 | $ | 107,814 | $ | 184,138 | | | | | | |
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Total loans | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 4,096 | $ | 3,166 | $ | 7,902 | $ | 15,164 | $ | 5,588,735 | $ | 5,603,899 | | | | | | |
Commercial real estate - owner occupied | | 1,453 | | 2,233 | | 10,159 | | 13,845 | | 1,000,490 | | 1,014,335 | | | | | | |
Lease financing | | - | | - | | 550 | | 550 | | 52,050 | | 52,600 | | | | | | |
Commercial and business lending | | 5,549 | | 5,399 | | 18,611 | | 29,559 | | 6,641,275 | | 6,670,834 | | | | | | |
Commercial real estate - investor | | 16,009 | | 685 | | 8,418 | | 25,112 | | 3,018,249 | | 3,043,361 | | | | | | |
Real estate construction | | 363 | | 156 | | 1,061 | | 1,580 | | 980,846 | | 982,426 | | | | | | |
Commercial real estate lending | | 16,372 | | 841 | | 9,479 | | 26,692 | | 3,999,095 | | 4,025,787 | | | | | | |
Total commercial | | 21,921 | | 6,240 | | 28,090 | | 56,251 | | 10,640,370 | | 10,696,621 | | | | | | |
Home equity | | 9,605 | | 4,806 | | 10,607 | | 25,018 | | 1,651,507 | | 1,676,525 | | | | | | |
Installment and credit cards | | 1,163 | | 761 | | 1,507 | | 3,431 | | 456,251 | | 459,682 | | | | | | |
Residential mortgage | | 6,878 | | 2,944 | | 22,169 | | 31,991 | | 4,294,271 | | 4,326,262 | | | | | | |
Total consumer | | 17,646 | | 8,511 | | 34,283 | | 60,440 | | 6,402,029 | | 6,462,469 | | | | | | |
Total loans | $ | 39,567 | $ | 14,751 | $ | 62,373 | $ | 116,691 | $ | 17,042,399 | $ | 17,159,090 | | | | | | |
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* The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at September 30, 2014 (the same as the reported balances for the accruing loans noted above). ** The percent of nonaccrual loans which are current was 59% at September 30, 2014. | | | | | | |
The following table presents loans by past due status at December 31, 2013. | | | | | | |
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| | 30-59 Days Past Due | | 60-89 Days Past Due | 90 Days or More Past Due * | Total Past Due | | Current | | Total | | | | | | |
| ($ in Thousands) | | | | | | |
Accruing loans | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 3,390 | $ | 3,436 | $ | 1,199 | $ | 8,025 | $ | 4,776,936 | $ | 4,784,961 | | | | | | |
Commercial real estate - owner occupied | | 1,015 | | 2,091 | | - | | 3,106 | | 1,081,945 | | 1,085,051 | | | | | | |
Lease financing | | - | | - | | - | | - | | 55,414 | | 55,414 | | | | | | |
Commercial and business lending | | 4,405 | | 5,527 | | 1,199 | | 11,131 | | 5,914,295 | | 5,925,426 | | | | | | |
Commercial real estate - investor | | 9,081 | | 14,134 | | - | | 23,215 | | 2,878,645 | | 2,901,860 | | | | | | |
Real estate construction | | 836 | | 1,118 | | - | | 1,954 | | 887,827 | | 889,781 | | | | | | |
Commercial real estate lending | | 9,917 | | 15,252 | | - | | 25,169 | | 3,766,472 | | 3,791,641 | | | | | | |
Total commercial | | 14,322 | | 20,779 | | 1,199 | | 36,300 | | 9,680,767 | | 9,717,067 | | | | | | |
Home equity | | 8,611 | | 2,069 | | 346 | | 11,026 | | 1,788,821 | | 1,799,847 | | | | | | |
Installment | | 885 | | 265 | | 637 | | 1,787 | | 404,173 | | 405,960 | | | | | | |
Residential mortgage | | 5,253 | | 865 | | 168 | | 6,286 | | 3,781,673 | | 3,787,959 | | | | | | |
Total consumer | | 14,749 | | 3,199 | | 1,151 | | 19,099 | | 5,974,667 | | 5,993,766 | | | | | | |
Total accruing loans | $ | 29,071 | $ | 23,978 | $ | 2,350 | $ | 55,399 | $ | 15,655,434 | $ | 15,710,833 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 998 | $ | 1,764 | $ | 9,765 | $ | 12,527 | $ | 25,192 | $ | 37,719 | | | | | | |
Commercial real estate - owner occupied | | 2,482 | | 1,724 | | 11,125 | | 15,331 | | 14,333 | | 29,664 | | | | | | |
Lease financing | | - | | - | | 69 | | 69 | | - | | 69 | | | | | | |
Commercial and business lending | | 3,480 | | 3,488 | | 20,959 | | 27,927 | | 39,525 | | 67,452 | | | | | | |
Commercial real estate - investor | | 3,408 | | 899 | | 20,466 | | 24,773 | | 12,823 | | 37,596 | | | | | | |
Real estate construction | | 2,376 | | - | | 2,267 | | 4,643 | | 1,824 | | 6,467 | | | | | | |
Commercial real estate lending | | 5,784 | | 899 | | 22,733 | | 29,416 | | 14,647 | | 44,063 | | | | | | |
Total commercial | | 9,264 | | 4,387 | | 43,692 | | 57,343 | | 54,172 | | 111,515 | | | | | | |
Home equity | | 1,725 | | 1,635 | | 14,331 | | 17,691 | | 7,476 | | 25,167 | | | | | | |
Installment | | 129 | | 24 | | 289 | | 442 | | 672 | | 1,114 | | | | | | |
Residential mortgage | | 3,199 | | 3,257 | | 26,201 | | 32,657 | | 14,975 | | 47,632 | | | | | | |
Total consumer | | 5,053 | | 4,916 | | 40,821 | | 50,790 | | 23,123 | | 73,913 | | | | | | |
Total nonaccrual loans** | $ | 14,317 | $ | 9,303 | $ | 84,513 | $ | 108,133 | $ | 77,295 | $ | 185,428 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total loans | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 4,388 | $ | 5,200 | $ | 10,964 | $ | 20,552 | $ | 4,802,128 | $ | 4,822,680 | | | | | | |
Commercial real estate - owner occupied | | 3,497 | | 3,815 | | 11,125 | | 18,437 | | 1,096,278 | | 1,114,715 | | | | | | |
Lease financing | | - | | - | | 69 | | 69 | | 55,414 | | 55,483 | | | | | | |
Commercial and business lending | | 7,885 | | 9,015 | | 22,158 | | 39,058 | | 5,953,820 | | 5,992,878 | | | | | | |
Commercial real estate - investor | | 12,489 | | 15,033 | | 20,466 | | 47,988 | | 2,891,468 | | 2,939,456 | | | | | | |
Real estate construction | | 3,212 | | 1,118 | | 2,267 | | 6,597 | | 889,651 | | 896,248 | | | | | | |
Commercial real estate lending | | 15,701 | | 16,151 | | 22,733 | | 54,585 | | 3,781,119 | | 3,835,704 | | | | | | |
Total commercial | | 23,586 | | 25,166 | | 44,891 | | 93,643 | | 9,734,939 | | 9,828,582 | | | | | | |
Home equity | | 10,336 | | 3,704 | | 14,677 | | 28,717 | | 1,796,297 | | 1,825,014 | | | | | | |
Installment | | 1,014 | | 289 | | 926 | | 2,229 | | 404,845 | | 407,074 | | | | | | |
Residential mortgage | | 8,452 | | 4,122 | | 26,369 | | 38,943 | | 3,796,648 | | 3,835,591 | | | | | | |
Total consumer | | 19,802 | | 8,115 | | 41,972 | | 69,889 | | 5,997,790 | | 6,067,679 | | | | | | |
Total loans | $ | 43,388 | $ | 33,281 | $ | 86,863 | $ | 163,532 | $ | 15,732,729 | $ | 15,896,261 | | | | | | |
| | | | | | | | | | | | | | | | | | |
* The recorded investment in loans past due 90 days or more and still accruing totaled $2 million at December 31, 2013 (the same as the reported balances for the accruing loans noted above). ** The percent of nonaccrual loans which are current was 42% at December 31, 2013. | | | | | | |
The following table presents impaired loans at September 30, 2014. | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | YTD Average Recorded Investment | | YTD Interest Income Recognized(a) | | | | | | | | |
Loans with a related allowance | | ($ in Thousands) | | | | | | | | |
Commercial and industrial | $ | 74,410 | $ | 76,852 | $ | 17,596 | $ | 74,470 | $ | 2,548 | | | | | | | | |
Commercial real estate - owner occupied | | 23,250 | | 25,849 | | 4,076 | | 24,412 | | 585 | | | | | | | | |
Lease financing | | 1,946 | | 1,946 | | 739 | | 2,074 | | - | | | | | | | | |
Commercial and business lending | | 99,606 | | 104,647 | | 22,411 | | 100,956 | | 3,133 | | | | | | | | |
Commercial real estate - investor | | 38,566 | | 42,836 | | 4,258 | | 40,288 | | 988 | | | | | | | | |
Real estate construction | | 5,778 | | 8,576 | | 2,161 | | 6,702 | | 158 | | | | | | | | |
Commercial real estate lending | | 44,344 | | 51,412 | | 6,419 | | 46,990 | | 1,146 | | | | | | | | |
Total commercial | | 143,950 | | 156,059 | | 28,830 | | 147,946 | | 4,279 | | | | | | | | |
Home equity | | 30,996 | | 34,392 | | 12,491 | | 31,842 | | 1,105 | | | | | | | | |
Installment and credit cards | | 1,759 | | 1,979 | | 339 | | 1,864 | | 41 | | | | | | | | |
Residential mortgage | | 62,916 | | 67,457 | | 12,091 | | 63,920 | | 1,526 | | | | | | | | |
Total consumer | | 95,671 | | 103,828 | | 24,921 | | 97,626 | | 2,672 | | | | | | | | |
Total loans | $ | 239,621 | $ | 259,887 | $ | 53,751 | $ | 245,572 | $ | 6,951 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Loans with no related allowance | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 13,688 | $ | 21,230 | $ | - | $ | 16,781 | $ | 46 | | | | | | | | |
Commercial real estate - owner occupied | | 12,664 | | 14,996 | | - | | 13,775 | | 36 | | | | | | | | |
Lease financing | | 1 | | - | | - | | - | | - | | | | | | | | |
Commercial and business lending | | 26,353 | | 36,226 | | - | | 30,556 | | 82 | | | | | | | | |
Commercial real estate - investor | | 10,980 | | 17,169 | | - | | 12,556 | | 133 | | | | | | | | |
Real estate construction | | 3,214 | | 3,904 | | - | | 3,313 | | - | | | | | | | | |
Commercial real estate lending | | 14,194 | | 21,073 | | - | | 15,869 | | 133 | | | | | | | | |
Total commercial | | 40,547 | | 57,299 | | - | | 46,425 | | 215 | | | | | | | | |
Home equity | | 847 | | 859 | | - | | 864 | | 15 | | | | | | | | |
Installment and credit cards | | - | | - | | - | | - | | - | | | | | | | | |
Residential mortgage | | 7,726 | | 7,845 | | - | | 7,774 | | 104 | | | | | | | | |
Total consumer | | 8,573 | | 8,704 | | - | | 8,638 | | 119 | | | | | | | | |
Total loans | $ | 49,120 | $ | 66,003 | $ | - | $ | 55,063 | $ | 334 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 88,098 | $ | 98,082 | $ | 17,596 | $ | 91,251 | $ | 2,594 | | | | | | | | |
Commercial real estate - owner occupied | | 35,914 | | 40,845 | | 4,076 | | 38,187 | | 621 | | | | | | | | |
Lease financing | | 1,947 | | 1,946 | | 739 | | 2,074 | | - | | | | | | | | |
Commercial and business lending | | 125,959 | | 140,873 | | 22,411 | | 131,512 | | 3,215 | | | | | | | | |
Commercial real estate - investor | | 49,546 | | 60,005 | | 4,258 | | 52,844 | | 1,121 | | | | | | | | |
Real estate construction | | 8,992 | | 12,480 | | 2,161 | | 10,015 | | 158 | | | | | | | | |
Commercial real estate lending | | 58,538 | | 72,485 | | 6,419 | | 62,859 | | 1,279 | | | | | | | | |
Total commercial | | 184,497 | | 213,358 | | 28,830 | | 194,371 | | 4,494 | | | | | | | | |
Home equity | | 31,843 | | 35,251 | | 12,491 | | 32,706 | | 1,120 | | | | | | | | |
Installment and credit cards | | 1,759 | | 1,979 | | 339 | | 1,864 | | 41 | | | | | | | | |
Residential mortgage | | 70,642 | | 75,302 | | 12,091 | | 71,694 | | 1,630 | | | | | | | | |
Total consumer | | 104,244 | | 112,532 | | 24,921 | | 106,264 | | 2,791 | | | | | | | | |
Total loans(b) | $ | 288,741 | $ | 325,890 | $ | 53,751 | $ | 300,635 | $ | 7,285 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
(a) Interest income recognized included $4 million of interest income recognized on accruing restructured loans for the nine months ended September 30, 2014. | | | | | | | | |
(b) The implied fair value mark on all impaired loans at September 30, 2014, was 72% of their unpaid principal balance. The fair value mark is calculated as the recorded investment, net of the related allowance, divided by the unpaid principal balance. | | | | | | | | |
The following table presents impaired loans at December 31, 2013. | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Recorded Investment | | Unpaid Principal Balance | | Related Allowance | | YTD Average Recorded Investment | | YTD Interest Income Recognized (a) | | | | | | | | |
Loans with a related allowance | | ($ in Thousands) | | | | | | | | |
Commercial and industrial | $ | 57,857 | $ | 65,443 | $ | 11,917 | $ | 61,000 | $ | 1,741 | | | | | | | | |
Commercial real estate - owner occupied | | 22,651 | | 25,072 | | 2,955 | | 24,549 | | 995 | | | | | | | | |
Lease financing | | 69 | | 69 | | 29 | | 76 | | - | | | | | | | | |
Commercial and business lending | | 80,577 | | 90,584 | | 14,901 | | 85,625 | | 2,736 | | | | | | | | |
Commercial real estate - investor | | 64,647 | | 68,228 | | 7,895 | | 68,776 | | 2,735 | | | | | | | | |
Real estate construction | | 8,815 | | 12,535 | | 2,416 | | 9,796 | | 236 | | | | | | | | |
Commercial real estate lending | | 73,462 | | 80,763 | | 10,311 | | 78,572 | | 2,971 | | | | | | | | |
Total commercial | | 154,039 | | 171,347 | | 25,212 | | 164,197 | | 5,707 | | | | | | | | |
Home equity | | 34,707 | | 40,344 | | 13,989 | | 36,623 | | 1,518 | | | | | | | | |
Installment | | 1,360 | | 1,676 | | 487 | | 1,753 | | 100 | | | | | | | | |
Residential mortgage | | 60,157 | | 69,699 | | 12,187 | | 62,211 | | 1,861 | | | | | | | | |
Total consumer | | 96,224 | | 111,719 | | 26,663 | | 100,587 | | 3,479 | | | | | | | | |
Total loans | $ | 250,263 | $ | 283,066 | $ | 51,875 | $ | 264,784 | $ | 9,186 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Loans with no related allowance | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 12,379 | $ | 19,556 | $ | - | $ | 14,291 | $ | 306 | | | | | | | | |
Commercial real estate - owner occupied | | 20,022 | | 22,831 | | - | | 20,602 | | 315 | | | | | | | | |
Lease financing | | - | | - | | - | | - | | - | | | | | | | | |
Commercial and business lending | | 32,401 | | 42,387 | | - | | 34,893 | | 621 | | | | | | | | |
Commercial real estate - investor | | 17,895 | | 25,449 | | - | | 19,354 | | 130 | | | | | | | | |
Real estate construction | | 1,445 | | 1,853 | | - | | 1,576 | | 13 | | | | | | | | |
Commercial real estate lending | | 19,340 | | 27,302 | | - | | 20,930 | | 143 | | | | | | | | |
Total commercial | | 51,741 | | 69,689 | | - | | 55,823 | | 764 | | | | | | | | |
Home equity | | 93 | | 92 | | - | | 94 | | 2 | | | | | | | | |
Installment | | - | | - | | - | | - | | - | | | | | | | | |
Residential mortgage | | 7,316 | | 8,847 | | - | | 7,321 | | 185 | | | | | | | | |
Total consumer | | 7,409 | | 8,939 | | - | | 7,415 | | 187 | | | | | | | | |
Total loans | $ | 59,150 | $ | 78,628 | $ | - | $ | 63,238 | $ | 951 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total | | | | | | | | | | | | | | | | | | |
Commercial and industrial | $ | 70,236 | $ | 84,999 | $ | 11,917 | $ | 75,291 | $ | 2,047 | | | | | | | | |
Commercial real estate - owner occupied | | 42,673 | | 47,903 | | 2,955 | | 45,151 | | 1,310 | | | | | | | | |
Lease financing | | 69 | | 69 | | 29 | | 76 | | - | | | | | | | | |
Commercial and business lending | | 112,978 | | 132,971 | | 14,901 | | 120,518 | | 3,357 | | | | | | | | |
Commercial real estate - investor | | 82,542 | | 93,677 | | 7,895 | | 88,130 | | 2,865 | | | | | | | | |
Real estate construction | | 10,260 | | 14,388 | | 2,416 | | 11,372 | | 249 | | | | | | | | |
Commercial real estate lending | | 92,802 | | 108,065 | | 10,311 | | 99,502 | | 3,114 | | | | | | | | |
Total commercial | | 205,780 | | 241,036 | | 25,212 | | 220,020 | | 6,471 | | | | | | | | |
Home equity | | 34,800 | | 40,436 | | 13,989 | | 36,717 | | 1,520 | | | | | | | | |
Installment | | 1,360 | | 1,676 | | 487 | | 1,753 | | 100 | | | | | | | | |
Residential mortgage | | 67,473 | | 78,546 | | 12,187 | | 69,532 | | 2,046 | | | | | | | | |
Total consumer | | 103,633 | | 120,658 | | 26,663 | | 108,002 | | 3,666 | | | | | | | | |
Total loans (b) | $ | 309,413 | $ | 361,694 | $ | 51,875 | $ | 328,022 | $ | 10,137 | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
(a) Interest income recognized included $6 million of interest income recognized on accruing restructured loans for the year ended December 31, 2013. | | | | | | | | |
(b) The implied fair value mark on all impaired loans at December 31, 2013, was 71% of their unpaid principal balance. The fair value mark is calculated as the recorded investment, net of the related allowance, divided by the unpaid principal balance. | | | | | | | | |
Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are generally placed on nonaccrual status when contractually past due 90 days or more as to interest or principal payments, unless the loan is well secured and in the process of collection. Additionally, whenever management becomes aware of facts or circumstances that may adversely impact the collectability of principal or interest on loans, it is management's practice to place such loans on nonaccrual status immediately, rather than delaying such action until the loans become 90 days past due. When a loan is placed on nonaccrual status, previously accrued and uncollected interest is reversed, amortization of related deferred loan fees or costs is suspended, and income is recorded only to the extent that interest payments are subsequently received in cash and a determination has been made that the principal and interest of the loan is collectible. If collectability of the principal and interest is in doubt, payments received are applied to loan principal. |
|
While an asset is in nonaccrual status, some or all of the cash interest payments received may be treated as interest income on a cash basis as long as the remaining recorded investment in the asset (i.e., after charge off of identified losses, if any) is deemed to be fully collectible. The determination as to the ultimate collectability of the asset's remaining recorded investment must be supported by a current, well documented credit evaluation of the borrower's financial condition and prospects for repayment, including consideration of the borrower's sustained historical repayment performance and other relevant factors. A nonaccrual loan is returned to accrual status when all delinquent principal and interest payments become current in accordance with the terms of the loan agreement, the borrower has demonstrated a period of sustained repayment performance, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. A sustained period of repayment performance generally would be a minimum of six months. |
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Troubled Debt Restructurings (“Restructured Loans”): |
Loans are considered restructured loans if concessions have been granted to borrowers that are experiencing financial difficulty. The concessions granted generally involve the modification of terms of the loan, such as changes in payment schedule or interest rate, which generally would not otherwise be considered. Restructured loans can involve loans remaining on nonaccrual, moving to nonaccrual, or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Nonaccrual restructured loans are included and treated with all other nonaccrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings, which are considered and accounted for as impaired loans. Generally, restructured loans remain on nonaccrual until the customer has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on accrual status. If the borrower's ability to meet the revised payment schedule is not reasonably assured, the loan remains on nonaccrual status. The Corporation had a $26 million recorded investment in loans modified in a troubled debt restructuring for the nine months ended September 30, 2014, of which $10 million were in accrual status and $16 million were in nonaccrual pending a sustained period of repayment. |
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All restructured loans are considered impaired in the calendar year of restructuring. In subsequent years, a restructured loan may cease being classified as impaired if the loan was modified at a market rate and has performed according to the modified terms for at least six months. A loan that has been modified at a below market rate will return to performing status if it satisfies the six month performance requirement; however, it will remain classified as a restructured loan. The following table presents nonaccrual and performing restructured loans by loan portfolio. |
|
| | 30-Sep-14 | | | 31-Dec-13 | | | | | | | |
| | Performing Restructured Loans | | | Nonaccrual Restructured Loans * | | | Performing Restructured Loans | | | Nonaccrual Restructured Loans * | | | | | | | |
| | ($ in Thousands) | | | | | | |
Commercial and industrial | $ | 36,956 | | $ | 4,759 | | $ | 32,517 | | $ | 6,900 | | | | | | | |
Commercial real estate - owner occupied | | 11,574 | | | 8,031 | | | 13,009 | | | 10,999 | | | | | | | |
Commercial real estate - investor | | 24,439 | | | 17,472 | | | 44,946 | | | 18,069 | | | | | | | |
Real estate construction | | 805 | | | 2,833 | | | 3,793 | | | 2,065 | | | | | | | |
Home equity | | 10,582 | | | 6,729 | | | 9,633 | | | 5,419 | | | | | | | |
Installment and credit cards | | 1,106 | | | 230 | | | 246 | | | 451 | | | | | | | |
Residential mortgage | | 19,141 | | | 23,260 | | | 19,841 | | | 15,682 | | | | | | | |
Total | $ | 104,603 | | $ | 63,314 | | $ | 123,985 | | $ | 59,585 | | | | | | | |
| | | | | | | | | | | | | | | | | | |
* Nonaccrual restructured loans have been included with nonaccrual loans. | | | | | | | | | | |
The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio during the three and nine months ended September 30, 2014, and the recorded investment and unpaid principal balance as of September 30, 2014. | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2014 | | Nine Months Ended September 30, 2014 | | | | | | |
| | Number of Loans | | Recorded Investment (1) | | Unpaid Principal Balance (2) | | Number of Loans | | Recorded Investment (1) | | Unpaid Principal Balance (2) | | | | | | |
| | ($ in Thousands) | | | | | | |
Commercial and industrial | | 10 | $ | 7,383 | $ | 7,384 | | 13 | $ | 7,695 | $ | 7,707 | | | | | | |
Commercial real estate - owner occupied | | ― | | ― | | ― | | 2 | | 1,123 | | 1,260 | | | | | | |
Commercial real estate - investor | | 3 | | 5,603 | | 5,918 | | 4 | | 6,096 | | 6,425 | | | | | | |
Real estate construction | | 1 | | 8 | | 8 | | 2 | | 14 | | 14 | | | | | | |
Home equity | | 42 | | 1,428 | | 1,486 | | 94 | | 3,407 | | 3,593 | | | | | | |
Installment and credit cards | | 2 | | 25 | | 25 | | 3 | | 34 | | 45 | | | | | | |
Residential mortgage | | 45 | | 4,057 | | 4,347 | | 85 | | 8,004 | | 8,555 | | | | | | |
Total | | 103 | $ | 18,504 | $ | 19,168 | | 203 | $ | 26,373 | $ | 27,599 | | | | | | |
| | | | | | | | | | | | | | | | | | |
(1) Represents post-modification outstanding recorded investment. | | | | | | | | | | | | |
(2) Represents pre-modification outstanding recorded investment. | | | | | | | | | | | | |
The following table provides the number of loans modified in a troubled debt restructuring by loan portfolio during the three and nine months ended September 30, 2013, and the recorded investment and unpaid principal balance as of September 30, 2013. | | | | | | |
| | | | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2013 | | Nine Months Ended September 30, 2013 | | | | | | |
| | Number of Loans | | Recorded Investment (1) | | Unpaid Principal Balance (2) | | Number of Loans | | Recorded Investment (1) | | Unpaid Principal Balance (2) | | | | | | |
| | ($ in Thousands) | | | | | | |
Commercial and industrial | | 19 | $ | 5,479 | $ | 6,384 | | 58 | $ | 11,379 | $ | 14,028 | | | | | | |
Commercial real estate - owner occupied | | 7 | | 3,373 | | 3,488 | | 17 | | 9,313 | | 9,596 | | | | | | |
Commercial real estate - investor | | 10 | | 1,222 | | 1,304 | | 18 | | 5,013 | | 5,320 | | | | | | |
Real estate construction | | 3 | | 227 | | 248 | | 9 | | 2,006 | | 2,084 | | | | | | |
Home equity | | 16 | | 933 | | 985 | | 74 | | 4,149 | | 4,554 | | | | | | |
Installment | | ― | | ― | | ― | | 2 | | 187 | | 193 | | | | | | |
Residential mortgage | | 19 | | 1,664 | | 1,826 | | 71 | | 6,744 | | 7,619 | | | | | | |
Total | | 74 | $ | 12,898 | $ | 14,235 | | 249 | $ | 38,791 | $ | 43,394 | | | | | | |
| | | | | | | | | | | | | | | | | | |
(1) Represents post-modification outstanding recorded investment. | | | | | | | | | | | | |
(2) Represents pre-modification outstanding recorded investment. | | | | | | | | | | | | |
Restructured loan modifications may include payment schedule modifications, interest rate concessions, maturity date extensions, modification of note structure (A/B Note), non-reaffirmed Chapter 7 bankruptcies, principal reduction, or some combination of these concessions. During the three and nine months ended September 30, 2014, restructured loan modifications of commercial and industrial, commercial real estate and real estate construction loans primarily included maturity date extensions and payment schedule modifications. Restructured loan modifications of home equity and residential mortgage loans for the three and nine months ended September 30, 2014, primarily included maturity date extensions, interest rate concessions, payment schedule modifications, non-reaffirmed Chapter 7 bankruptcies, or a combination of these concessions. |
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The following table provides the number of loans modified in a troubled debt restructuring during the previous 12 months which subsequently defaulted during the three and nine months ended September 30, 2014, as well as the recorded investment in these restructured loans as of September 30, 2014. |
|
| | Three Months Ended September 30, 2014 | | Nine Months Ended September 30, 2014 | | | | | | | | | | |
| | Number of Loans | Recorded Investment | Number of Loans | | Recorded Investment | | | | | | | | | | |
| | ($ in Thousands) | | | | | | | | | | |
Commercial and industrial | | ― | $ | ― | | 1 | $ | 52 | | | | | | | | | | |
Commercial real estate - owner occupied | | ― | | ― | | 2 | | 203 | | | | | | | | | | |
Commercial real estate - investor | | 1 | | 493 | | 2 | | 1,613 | | | | | | | | | | |
Real estate construction | | ― | | ― | | 1 | | 160 | | | | | | | | | | |
Home equity | | 12 | | 367 | | 25 | | 939 | | | | | | | | | | |
Installment and credit cards | | 1 | | 10 | | 3 | | 34 | | | | | | | | | | |
Residential mortgage | | 18 | | 1,502 | | 50 | | 4,743 | | | | | | | | | | |
Total | | 32 | $ | 2,372 | | 84 | $ | 7,744 | | | | | | | | | | |
The following table provides the number of loans modified in a troubled debt restructuring during the previous 12 months which subsequently defaulted during the three and nine months ended September 30, 2013, as well as the recorded investment in these restructured loans as of September 30, 2013. |
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| | Three Months Ended September 30, 2013 | | Nine Months Ended September 30, 2013 | | | | | | | | | | |
| | Number of Loans | Recorded Investment | Number of Loans | | Recorded Investment | | | | | | | | | | |
| | ($ in Thousands) | | | | | | | | | | |
Commercial and industrial | | 8 | $ | 506 | | 18 | $ | 1,626 | | | | | | | | | | |
Commercial real estate - owner occupied | | 2 | | 464 | | 4 | | 578 | | | | | | | | | | |
Commercial real estate - investor | | 1 | | 405 | | 5 | | 1,992 | | | | | | | | | | |
Real estate construction | | 1 | | 118 | | 2 | | 158 | | | | | | | | | | |
Home equity | | 4 | | 147 | | 12 | | 699 | | | | | | | | | | |
Residential mortgage | | 8 | | 1,150 | | 15 | | 2,385 | | | | | | | | | | |
Total | | 24 | $ | 2,790 | | 56 | $ | 7,438 | | | | | | | | | | |
All loans modified in a troubled debt restructuring are evaluated for impairment. The nature and extent of the impairment of restructured loans, including those which have experienced a subsequent payment default, is considered in the determination of an appropriate level of the allowance for loan losses. |
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