Allowance for Loan and Lease Losses ("ALLL") and Credit Quality Indicators (Tables)

6 Months Ended

Jun. 30, 2015

Text Block [Abstract]

Schedule of Activity Within Allowance for Loan and Lease Losses

The following table is a summary of activity within the ALLL for the periods indicated.

	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(Dollars in thousands)
Beginning balance	$	54,147		$	43,861		$	52,918		$	42,945
Non-purchased loans and leases charged off		(1,496	)		(1,650	)		(5,575	)		(2,569	)
Recoveries of non-purchased loans and leases previously charged off		198			247			506			982
Net non-purchased loans and leases charged off		(1,298	)		(1,403	)		(5,069	)		(1,587	)
Purchased loans charged off, net		(408	)		(1,082	)		(1,723	)		(1,287	)
Net charge-offs – total loans and leases		(1,706	)		(2,485	)		(6,792	)		(2,874	)
Provision for loan and lease losses:
Non-purchased loans and leases		3,900			4,500			8,900			5,600
Purchased loans		408			1,082			1,723			1,287
Total provision		4,308			5,582			10,623			6,887
Ending balance	$	56,749		$	46,958		$	56,749		$	46,958

Summary of Company's Allowance for Loan and Lease Losses

The following tables are a summary of the Company’s ALLL for the periods indicated.

	Beginning Balance		Charge-offs			Recoveries		Provision			Ending Balance
	(Dollars in thousands)
Three months ended June 30, 2015:
Real estate:
Residential 1-4 family	$	5,657	$	(92	)	$	10	$	26		$	5,601
Non-farm/non-residential		17,766		(119	)		5		580			18,232
Construction/land development		17,580		(469	)		0		2,037			19,148
Agricultural		2,526		0			0		(66	)		2,460
Multifamily residential		2,423		(208	)		0		671			2,886
Commercial and industrial		3,301		(93	)		23		18			3,249
Consumer		824		(24	)		21		4			825
Direct financing leases		3,258		(155	)		7		444			3,554
Other		812		(336	)		132		186			794
Purchased loans		0		(408	)		0		408			0
Total	$	54,147	$	(1,904	)	$	198	$	4,308		$	56,749
Six months ended June 30, 2015:
Real estate:
Residential 1-4 family	$	5,482	$	(621	)	$	21	$	719		$	5,601
Non-farm/non-residential		17,190		(324	)		17		1,349			18,232
Construction/land development		15,960		(771	)		37		3,922			19,148
Agricultural		2,558		(13	)		0		(85	)		2,460
Multifamily residential		2,147		(208	)		0		947			2,886
Commercial and industrial		4,873		(2,540	)		39		877			3,249
Consumer		818		(69	)		42		34			825
Direct financing leases		2,989		(341	)		13		893			3,554
Other		901		(688	)		337		244			794
Purchased loans		0		(1,723	)		0		1,723			0
Total	$	52,918	$	(7,298	)	$	506	$	10,623		$	56,749
Year ended December 31, 2014:
Real estate:
Residential 1-4 family	$	4,701	$	(577	)	$	135	$	1,223		$	5,482
Non-farm/non-residential		13,633		(1,357	)		33		4,881			17,190
Construction/land development		12,306		(638	)		11		4,281			15,960
Agricultural		3,000		(214	)		14		(242	)		2,558
Multifamily residential		2,504		0			0		(357	)		2,147
Commercial and industrial		2,855		(720	)		808		1,930			4,873
Consumer		917		(222	)		80		43			818
Direct financing leases		2,266		(602	)		49		1,276			2,989
Other		763		(793	)		266		665			901
Purchased loans		0		(3,215	)		0		3,215			0
Total	$	42,945	$	(8,338	)	$	1,396	$	16,915		$	52,918
Three months ended June 30, 2014:
Real estate:
Residential 1-4 family	$	4,622	$	(142	)	$	49	$	231		$	4,760
Non-farm/non-residential		14,013		(1,181	)		1		2,003			14,836
Construction/land development		12,828		(14	)		0		2,650			15,464
Agricultural		3,018		0			6		(116	)		2,908
Multifamily residential		2,429		0			0		(657	)		1,772
Commercial and industrial		2,738		(48	)		135		23			2,848
Consumer		831		(56	)		18		133			926
Direct financing leases		2,438		(121	)		8		247			2,572
Other		944		(88	)		30		(14	)		872
Purchased loans		0		(1,082	)		0		1,082			0
Total	$	43,861	$	(2,732	)	$	247	$	5,582		$	46,958
Six months ended June 30, 2014:
Real estate:
Residential 1-4 family	$	4,701	$	(341	)	$	71	$	329		$	4,760
Non-farm/non-residential		13,633		(1,254	)		4		2,453			14,836
Construction/land development		12,306		(14	)		8		3,164			15,464
Agricultural		3,000		(15	)		11		(88	)		2,908
Multifamily residential		2,504		0			0		(732	)		1,772
Commercial and industrial		2,855		(422	)		763		(348	)		2,848
Consumer		917		(97	)		36		70			926
Direct financing leases		2,266		(267	)		14		559			2,572
Other		763		(159	)		75		193			872
Purchased loans		0		(1,287	)		0		1,287			0
Total	$	42,945	$	(3,856	)	$	982	$	6,887		$	46,958

Summary of Allowance for Loan and Lease Losses and Recorded Investment in Non-Purchased Loans and Leases

The following table is a summary of the Company’s ALLL and recorded investment in non-purchased loans and leases as of the dates indicated.

	ALLL						Non-Purchased Loans and Leases
	ALLL for Individually Evaluated Impaired Loans and Leases		ALLL for All Other Loans and Leases		Total ALLL		Individually Evaluated Impaired Loans and Leases		All Other Loans and Leases		Total Loans and Leases
	(Dollars in thousands)
June 30, 2015:
Real estate:
Residential 1-4 family	$	345	$	5,256	$	5,601	$	1,908	$	316,328	$	318,236
Non-farm/non-residential		3		18,229		18,232		809		1,687,994		1,688,803
Construction/land development		49		19,099		19,148		9,065		1,890,960		1,900,025
Agricultural		470		1,990		2,460		1,450		49,333		50,783
Multifamily residential		0		2,886		2,886		345		296,529		296,874
Commercial and industrial		487		2,762		3,249		547		259,073		259,620
Consumer		3		822		825		33		25,499		25,532
Direct financing leases		0		3,554		3,554		0		137,146		137,146
Other		0		794		794		7		90,097		90,104
Total	$	1,357	$	55,392	$	56,749	$	14,164	$	4,752,959	$	4,767,123
December 31, 2014:
Real estate:
Residential 1-4 family	$	356	$	5,126	$	5,482	$	2,734	$	280,519	$	283,253
Non-farm/non-residential		18		17,172		17,190		2,507		1,501,034		1,503,541
Construction/land development		68		15,892		15,960		14,304		1,397,534		1,411,838
Agricultural		6		2,552		2,558		365		46,870		47,235
Multifamily residential		0		2,147		2,147		0		211,156		211,156
Commercial and industrial		644		4,229		4,873		623		287,084		287,707
Consumer		3		815		818		34		25,635		25,669
Direct financing leases		0		2,989		2,989		0		115,475		115,475
Other		0		901		901		8		93,988		93,996
Total	$	1,095	$	51,823	$	52,918	$	20,575	$	3,959,295	$	3,979,870
June 30, 2014:
Real estate:
Residential 1-4 family	$	411	$	4,349	$	4,760	$	3,245	$	263,252	$	266,497
Non-farm/non-residential		13		14,823		14,836		2,363		1,287,811		1,290,174
Construction/land development		2		15,462		15,464		9,738		1,039,420		1,049,158
Agricultural		200		2,708		2,908		845		44,696		45,541
Multifamily residential		0		1,772		1,772		491		136,462		136,953
Commercial and industrial		553		2,295		2,848		689		166,195		166,884
Consumer		3		923		926		42		28,632		28,674
Direct financing leases		0		2,572		2,572		0		98,768		98,768
Other		0		872		872		9		88,927		88,936
Total	$	1,182	$	45,776	$	46,958	$	17,422	$	3,154,163	$	3,171,585

Schedule of Impaired Non-purchased Loans and Leases, FDIC Loss Share Agreements

The following table is a summary of impaired non-purchased loans and leases as of and for the three months and six months ended June 30, 2015.

	Principal Balance		Net Charge-offs to Date			Principal Balance, Net of Charge-offs		Specific ALLL		Weighted Average Carrying Value – Three Months Ended June 30, 2015		Weighted Average Carrying Value – Six Months Ended June 30, 2015
	(Dollars in thousands)
Impaired loans and leases for which there is a related ALLL:
Real estate:
Residential 1-4 family	$	3,147	$	(1,859	)	$	1,288	$	345	$	1,299	$	1,362
Non-farm/non-residential		145		(142	)		3		3		22		196
Construction/land development		115		0			115		49		66		1,414
Agricultural		1,148		0			1,148		470		574		413
Commercial and industrial		672		(185	)		487		487		244		343
Consumer		40		(23	)		17		3		18		18
Total impaired loans and leases with a related ALLL		5,267		(2,209	)		3,058		1,357		2,223		3,746
Impaired loans and leases for which there is not a related ALLL:
Real estate:
Residential 1-4 family		731		(111	)		620		0		910		1,022
Non-farm/non-residential		999		(193	)		806		0		651		1,089
Construction/land development		9,440		(490	)		8,950		0		9,174		9,514
Agricultural		518		(215	)		303		0		304		293
Multifamily residential		686		(341	)		345		0		173		115
Commercial and industrial		158		(98	)		60		0		95		90
Consumer		19		(5	)		14		0		15		15
Other		8		0			8		0		8		8
Total impaired loans and leases without a related ALLL		12,559		(1,453	)		11,106		0		11,330		12,146
Total impaired loans and leases	$	17,826	$	(3,662	)	$	14,164	$	1,357	$	13,553	$	15,892

The following table is a summary of impaired non-purchased loans and leases as of and for the year ended December 31, 2014.

	Principal Balance		Net Charge-offs to Date			Principal Balance, Net of Charge-offs		Specific ALLL		Weighted Average Carrying Value – Year Ended December 31, 2014
	(Dollars in thousands)
Impaired loans and leases for which there is a related ALLL:
Real estate:
Residential 1-4 family	$	3,163	$	(1,674	)	$	1,489	$	356	$	1,457
Non-farm/non-residential		762		(220	)		542		18		211
Construction/land development		4,656		(545	)		4,111		68		1,040
Agricultural		105		(12	)		93		6		217
Commercial and industrial		1,233		(691	)		542		644		554
Consumer		41		(23	)		18		3		20
Total impaired loans and leases with a related ALLL		9,960		(3,165	)		6,795		1,095		3,499
Impaired loans and leases for which there is not a related ALLL:
Real estate:
Residential 1-4 family		1,373		(128	)		1,245		0		1,581
Non-farm/non-residential		2,676		(711	)		1,965		0		1,988
Construction/land development		10,378		(185	)		10,193		0		7,600
Agricultural		474		(202	)		272		0		383
Multifamily residential		133		(133	)		0		0		123
Commercial and industrial		264		(183	)		81		0		75
Consumer		81		(65	)		16		0		18
Other		8		0			8		0		8
Total impaired loans and leases without a related ALLL		15,387		(1,607	)		13,780		0		11,776
Total impaired loans and leases	$	25,347	$	(4,772	)	$	20,575	$	1,095	$	15,275

The following table is a summary of impaired non-purchased loans and leases as of and for the three months and six months ended June 30, 2014.

	Principal Balance		Net Charge-offs to Date			Principal Balance, Net of Charge-offs		Specific ALLL		Weighted Average Carrying Value – Three Months Ended June 30, 2014		Weighted Average Carrying Value – Six Months Ended June 30, 2014
	(Dollars in thousands)
Impaired loans and leases for which there is a related ALLL:
Real estate:
Residential 1-4 family	$	3,294	$	(1,721	)	$	1,573	$	411	$	1,505	$	1,642
Non-farm/non-residential		186		(142	)		44		13		52		50
Construction/land development		38		(22	)		16		2		16		16
Agricultural		336		(12	)		324		200		336		380
Commercial and industrial		838		(278	)		560		553		562		579
Consumer		102		(79	)		23		3		23		23
Other		0		0			0		0		0		5
Total impaired loans and leases with a related ALLL		4,794		(2,254	)		2,540		1,182		2,494		2,695
Impaired loans and leases for which there is not a related ALLL:
Real estate:
Residential 1-4 family		2,094		(421	)		1,673		0		2,023		2,059
Non-farm/non-residential		3,444		(1,125	)		2,319		0		1,942		1,999
Construction/land development		9,803		(81	)		9,722		0		5,015		3,417
Agricultural		554		(33	)		521		0		494		468
Multifamily residential		624		(133	)		491		0		246		164
Commercial and industrial		288		(159	)		129		0		95		88
Consumer		33		(14	)		19		0		22		24
Other		8		0			8		0		9		9
Total impaired loans and leases without a related ALLL		16,848		(1,966	)		14,882		0		9,846		8,228
Total impaired loans and leases	$	21,642	$	(4,220	)	$	17,422	$	1,182	$	12,340	$	10,923

Summary of Credit Quality Indicators for Loans and Leases, Including Purchased and Non-Purchased Loans and Leases

The following table is a summary of credit quality indicators for the Company’s non-purchased loans and leases as of the dates indicated.

	Satisfactory		Moderate		Watch		Substandard		Total
	(Dollars in thousands)
June 30, 2015:
Real estate:
Residential 1-4 family (1)	$	308,914	$	0	$	3,830	$	5,492	$	318,236
Non-farm/non-residential		1,442,958		169,776		67,722		8,347		1,688,803
Construction/land development		1,653,991		223,812		10,207		12,015		1,900,025
Agricultural		24,997		14,457		9,088		2,241		50,783
Multifamily residential		252,433		40,802		1,646		1,993		296,874
Commercial and industrial		185,737		70,305		2,092		1,486		259,620
Consumer (1)		25,022		0		214		296		25,532
Direct financing leases		136,605		297		100		144		137,146
Other (1)		84,271		5,648		93		92		90,104
Total	$	4,114,928	$	525,097	$	94,992	$	32,106	$	4,767,123
December 31, 2014:
Real estate:
Residential 1-4 family (1)	$	271,576	$	0	$	4,082	$	7,595	$	283,253
Non-farm/non-residential		1,300,582		142,688		53,863		6,408		1,503,541
Construction/land development		1,190,005		192,046		11,135		18,652		1,411,838
Agricultural		22,446		12,375		10,226		2,188		47,235
Multifamily residential		171,806		37,886		713		751		211,156
Commercial and industrial		208,054		59,967		18,310		1,376		287,707
Consumer (1)		25,267		0		141		261		25,669
Direct financing leases		114,586		715		117		57		115,475
Other (1)		89,364		4,312		286		34		93,996
Total	$	3,393,686	$	449,989	$	98,873	$	37,322	$	3,979,870
June 30, 2014:
Real estate:
Residential 1-4 family(1)	$	258,098	$	0	$	2,620	$	5,779	$	266,497
Non-farm/non-residential		1,090,525		139,080		53,478		7,091		1,290,174
Construction/land development		846,365		176,977		12,078		13,738		1,049,158
Agricultural		22,766		9,785		10,388		2,602		45,541
Multifamily residential		105,366		29,954		385		1,248		136,953
Commercial and industrial		127,935		35,769		1,768		1,412		166,884
Consumer(1)		28,244		0		132		298		28,674
Direct financing leases		97,967		727		34		40		98,768
Other(1)		85,684		3,036		189		27		88,936
Total	$	2,662,950	$	395,328	$	81,072	$	32,235	$	3,171,585

(1) The Company does not risk rate its residential 1-4 family loans, its consumer loans, and certain “other” loans. However, for purposes of the above table, the Company considers such loans to be (i) satisfactory – if they are performing and less than 30 days past due, (ii) watch – if they are performing and 30 to 89 days past due or (iii) substandard – if they are nonperforming or 90 days or more past due.

The following table is a summary of credit quality indicators for the Company’s purchased loans as of the dates indicated.

	Purchased Loans Without Evidence of Credit Deterioration at Acquisition										Purchased Loans With Evidence of Credit Deterioration at Acquisition				Total Purchased Loans
	FV 33		FV 44		FV 55		FV 36		FV 77		FV 66		FV 88
	(Dollars in thousands)
June 30, 2015:
Real estate:
Residential 1-4 family	$	61,886	$	88,824	$	30,228	$	58,905	$	83	$	85,917	$	1,888	$	327,731
Non-farm/non-residential		209,433		702,962		119,491		3,780		255		119,406		6,778		1,162,105
Construction/land development		18,084		9,638		3,397		8,724		0		19,420		2,695		61,958
Agricultural		6,903		13,465		1,901		865		108		6,377		0		29,619
Multifamily residential		23,260		117,586		25,968		706		65		12,555		0		180,140
Total real estate		319,566		932,475		180,985		72,980		511		243,675		11,361		1,761,553
Commercial and industrial		10,126		17,812		4,316		5,722		20		8,179		449		46,624
Consumer		793		261		213		7,775		2		310		4		9,358
Other		4,247		3,558		288		462		0		758		0		9,313
Total	$	334,732	$	954,106	$	185,802	$	86,939	$	533	$	252,922	$	11,814	$	1,826,848
December 31, 2014:
Real estate:
Residential 1-4 family	$	73,196	$	81,840	$	30,180	$	71,687	$	151	$	96,752	$	1,899	$	355,705
Non-farm/non-residential		166,754		180,522		32,157		4,906		505		114,217		5,828		504,889
Construction/land development		21,803		26,858		4,312		13,708		0		28,497		4,598		99,776
Agricultural		10,444		25,187		2,409		1,525		0		8,331		92		47,988
Multifamily residential		22,731		11,646		1,971		884		67		4,823		312		42,434
Total real estate		294,928		326,053		71,029		92,710		723		252,620		12,729		1,050,792
Commercial and industrial		20,340		23,048		4,900		10,659		22		9,297		559		68,825
Consumer		1,605		272		420		12,538		3		426		4		15,268
Other		4,845		5,830		597		945		0		845		0		13,062
Total	$	321,718	$	355,203	$	76,946	$	116,852	$	748	$	263,188	$	13,292	$	1,147,947
June 30, 2014:
Real estate:
Residential 1-4 family	$	81,102	$	84,839	$	32,286	$	79,449	$	10	$	111,106	$	2,306	$	391,098
Non-farm/non-residential		211,896		198,937		40,193		3,704		0		148,491		10,249		613,470
Construction/land development		32,850		37,840		12,447		10,878		9		36,031		6,032		136,087
Agricultural		15,058		29,337		3,185		1,744		0		10,984		323		60,631
Multifamily residential		10,505		13,418		7,453		1,030		67		8,754		1,090		42,317
Total real estate		351,411		364,371		95,564		96,805		86		315,366		20,000		1,243,603
Commercial and industrial		27,269		49,175		9,702		14,637		0		11,371		1,119		113,273
Consumer		3,215		1,165		670		20,204		0		615		0		25,869
Other		5,762		9,292		935		4,391		0		944		0		21,324
Total	$	387,657	$	424,003	$	106,871	$	136,037	$	86	$	328,296	$	21,119	$	1,404,069

Schedule of Aging Analysis Past Due Loans and Leases, Loans Purchased and Non-Purchased by FDIC Loss Share Agreements

The following table is an aging analysis of past due non-purchased loans and leases as of the dates indicated.

	30-89 Days Past Due (1)		90 Days or More (2)		Total Past Due		Current (3)		Total
	(Dollars in thousands)
June 30, 2015:
Real estate:
Residential 1-4 family	$	4,642	$	1,031	$	5,673	$	312,563	$	318,236
Non-farm/non-residential		2,672		1,180		3,852		1,684,951		1,688,803
Construction/land development		906		9,119		10,025		1,890,000		1,900,025
Agricultural		516		1,426		1,942		48,841		50,783
Multifamily residential		1,042		0		1,042		295,832		296,874
Commercial and industrial		737		115		852		258,768		259,620
Consumer		225		35		260		25,272		25,532
Direct financing leases		140		106		246		136,900		137,146
Other		98		85		183		89,921		90,104
Total	$	10,978	$	13,097	$	24,075	$	4,743,048	$	4,767,123
December 31, 2014:
Real estate:
Residential 1-4 family	$	6,352	$	1,536	$	7,888	$	275,365	$	283,253
Non-farm/non-residential		2,708		1,445		4,153		1,499,388		1,503,541
Construction/land development		3,520		12,881		16,401		1,395,437		1,411,838
Agricultural		1,680		304		1,984		45,251		47,235
Multifamily residential		0		0		0		211,156		211,156
Commercial and industrial		586		94		680		287,027		287,707
Consumer		161		55		216		25,453		25,669
Direct financing leases		39		54		93		115,382		115,475
Other		58		12		70		93,926		93,996
Total	$	15,104	$	16,381	$	31,485	$	3,948,385	$	3,979,870
June 30, 2014:
Real estate:
Residential 1-4 family	$	2,890	$	1,521	$	4,411	$	262,086	$	266,497
Non-farm/non-residential		1,714		1,693		3,407		1,286,767		1,290,174
Construction/land development		49		10,060		10,109		1,039,049		1,049,158
Agricultural		269		436		705		44,836		45,541
Multifamily residential		491		0		491		136,462		136,953
Commercial and industrial		674		0		674		166,210		166,884
Consumer		139		54		193		28,481		28,674
Direct financing leases		10		30		40		98,728		98,768
Other		0		0		0		88,936		88,936
Total	$	6,236	$	13,794	$	20,030	$	3,151,555	$	3,171,585

(1) Includes $0.7 million, $0.9 million and $1.8 million at June 30, 2015, December 31, 2014 and June 30, 2014, respectively, of loans and leases on nonaccrual status.

(2) All loans and leases greater than 90 days past due were on nonaccrual status at June 30, 2015 and 2014 and December 31, 2014.

(3) Includes $2.5 million, $0.4 million and $2.8 million of loans and leases on nonaccrual status at June 30, 2015, December 31, 2014 and June 30, 2014, respectively.

The following table is an aging analysis of past due purchased loans as of the dates indicated.

	30-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Purchased Loans
	(Dollars in thousands)
June 30, 2015:
Real estate:
Residential 1-4 family	$	6,476	$	5,975	$	12,451	$	315,280	$	327,731
Non-farm/non-residential		16,737		9,191		25,928		1,136,177		1,162,105
Construction/land development		1,045		2,715		3,760		58,198		61,958
Agriculture		291		166		457		29,162		29,619
Multifamily residential		408		709		1,117		179,023		180,140
Commercial and industrial		936		611		1,547		45,077		46,624
Consumer		111		68		179		9,179		9,358
Other		40		11		51		9,262		9,313
Total	$	26,044	$	19,446	$	45,490	$	1,781,358	$	1,826,848
December 31, 2014:
Real estate:
Residential 1-4 family	$	8,088	$	9,043	$	17,131	$	338,574	$	355,705
Non-farm/non-residential		8,907		12,439		21,346		483,543		504,889
Construction/land development		1,197		5,464		6,661		93,115		99,776
Agriculture		237		875		1,112		46,876		47,988
Multifamily residential		515		67		582		41,852		42,434
Commercial and industrial		863		751		1,614		67,211		68,825
Consumer		199		103		302		14,966		15,268
Other		0		31		31		13,031		13,062
Total	$	20,006	$	28,773	$	48,779	$	1,099,168	$	1,147,947
June 30, 2014:
Real estate:
Residential 1-4 family	$	10,866	$	14,074	$	24,940	$	366,158	$	391,098
Non-farm/non-residential		4,929		25,570		30,499		582,971		613,470
Construction/land development		1,146		9,766		10,912		125,175		136,087
Agriculture		165		2,260		2,425		58,206		60,631
Multifamily residential		0		2,594		2,594		39,723		42,317
Commercial and industrial		392		1,733		2,125		111,148		113,273
Consumer		170		183		353		25,516		25,869
Other		16		19		35		21,289		21,324
Total	$	17,684	$	56,199	$	73,883	$	1,330,186	$	1,404,069