Non-Covered Loans and Allowance for Non-Covered Loan Losses (Tables) (Non-covered loans)

9 Months Ended

Sep. 30, 2013

Non-covered loans

Non-Covered Loans and Allowance for Non-Covered Loan Losses

Summary of non-covered loans by portfolio segment

Non-covered loans summarized by portfolio segment are as follows (in thousands).

	September 30,			December 31,
	2013			2012
Commercial and industrial	$	1,625,422		$	1,660,293
Real estate	1,322,054			1,184,914
Construction and land development	310,392			280,483
Consumer	52,356			26,706
	3,310,224			3,152,396
Allowance for non-covered loan losses	(33,180		)	(3,409		)
Total non-covered loans, net of allowance	$	3,277,044		$	3,148,987

Schedule of carrying values and the outstanding contractual balances of the PCI loans

The following table presents the carrying values and the outstanding contractual balances of the non-covered PCI loans (in thousands).

	September 30,		December 31,
	2013		2012
Carrying amount	$	139,224	$	166,780
Outstanding balance	187,370		222,674

Schedule of changes in the accretable yield for the PCI loans

Changes in the accretable yield for the non-covered PCI loans were as follows (in thousands).

	Three Months Ended			Nine Months Ended
	September 30, 2013			September 30, 2013
Balance, beginning of period	$	20,118		$	17,553
Additions	1,923			1,923
Increases in expected cash flows	4,697			16,834
Disposals of loans	(441		)	(2,273		)
Accretion	(4,854		)	(12,594		)
Balance, end of period	$	21,443		$	21,443

Summary of PCI loans by class

Non-covered PCI loans are summarized by class in the following tables (in thousands).

	Unpaid						Total
	Contractual		Nonaccretable		Accretable		Recorded		Related
September 30, 2013	Principal Balance		Difference		Yield		Investment		Allowance
Commercial and industrial:
Secured	$	71,924	$	16,557	$	4,401	$	56,831	$	2,732
Unsecured	9,678		5,062		3,937		1,676		—
Real estate:
Secured by commercial properties	51,525		11,704		7,236		42,077		205
Secured by residential properties	6,141		1,140		904		4,636		73
Construction and land development:
Residential construction loans	—		—		—		—		—
Commercial construction loans and land development	35,012		9,637		3,940		24,641		1
Consumer	13,090		3,265		1,025		9,363		—
	$	187,370	$	47,365	$	21,443	$	139,224	$	3,011

	Unpaid						Total
	Contractual		Nonaccretable		Accretable		Recorded
December 31, 2012	Principal Balance		Difference		Yield		Investment
Commercial and industrial:
Secured	$	91,633	$	24,982	$	6,114	$	67,967
Unsecured	12,198		8,707		472		3,419
Real estate:
Secured by commercial properties	66,736		15,816		7,294		55,519
Secured by residential properties	8,690		2,251		557		6,728
Construction and land development:
Residential construction loans	995		493		40		708
Commercial construction loans and land development	42,330		9,113		3,067		32,362
Consumer	92		16		9		77
	$	222,674	$	61,378	$	17,553	$	166,780

Summary of average investment in PCI loans by class

Average investment in non-covered PCI loans is summarized by class in the following table (in thousands).

	Three Months Ended		Nine Months Ended
	September 30, 2013		September 30, 2013
Commercial and industrial:
Secured	$	55,797	$	62,399
Unsecured	1,826		2,548
Real estate:
Secured by commercial properties	45,114		48,798
Secured by residential properties	5,400		5,682
Construction and land development:
Residential construction loans	—		354
Commercial construction loans and land development	25,916		28,502
Consumer	4,715		4,720
	$	138,768	$	153,003

Summary of non-accrual loans by class, excluding those classified as held for sale

Non-covered non-accrual loans at September 30, 2013, excluding those classified as held for sale, are summarized by class in the following table (in thousands).

Commercial and industrial:
Secured	$	16,099
Unsecured	23
Real estate:
Secured by commercial properties	1,856
Secured by residential properties	161
Construction and land development:
Residential construction loans	—
Commercial construction loans and land development	1,073
Consumer	—
	$	19,212

Schedule of information regarding TDRs granted

Information regarding TDRs granted is shown in the following tables (in thousands).

	Recorded Investment in Loans Modified by
			Interest Rate		Payment Term		Total
Three months ended September 30, 2013	A/B Note		Adjustment		Extension		Modification
Commercial and industrial:
Secured	$	—	$	—	$	333	$	333
Unsecured	—		—		—		—
Real estate:
Secured by commercial properties	—		—		—		—
Secured by residential properties	—		—		—		—
Construction and land development:
Residential construction loans	—		—		—		—
Commercial construction loans and land development	—		—		—		—
Consumer	—		—		—		—
	$	—	$	—	$	333	$	333

	Recorded Investment in Loans Modified by
			Interest Rate		Payment Term		Total
Nine months ended September 30, 2013	A/B Note		Adjustment		Extension		Modification
Commercial and industrial:
Secured	$	—	$	—	$	9,764	$	9,764
Unsecured	—		—		—		—
Real estate:
Secured by commercial properties	—		—		276		276
Secured by residential properties	—		—		905		905
Construction and land development:
Residential construction loans	—		—		—		—
Commercial construction loans and land development	—		—		500		500
Consumer	—		—		—		—
	$	—	$	—	$	11,445	$	11,445

Schedule of analysis of the aging of the entity's loan portfolio

An analysis of the aging of the Bank’s non-covered loan portfolio is shown in the following tables (in thousands).

															Accruing Loans
	Loans Past Due		Loans Past Due		Loans Past Due		Total		Current		PCI		Total		Past Due
September 30, 2013	30-59 Days		60-89 Days		90 Days or More		Past Due Loans		Loans		Loans		Loans		90 Days or More
Commercial and industrial:
Secured	$	1,099	$	1,065	$	1,395	$	3,559	$	1,451,740	$	56,831	$	1,512,130	$	1,118
Unsecured	475		1,339		23		1,837		109,779		1,676		113,292		—
Real estate:
Secured by commercial properties	—		132		—		132		1,004,464		42,077		1,046,673		—
Secured by residential properties	698		20		—		718		270,027		4,636		275,381		—
Construction and land development:
Residential construction loans	—		—		—		—		57,205		—		57,205		—
Commercial construction loans and land development	—		112		—		112		228,434		24,641		253,187		—
Consumer	101		21		10		132		42,861		9,363		52,356		10
	$	2,373	$	2,689	$	1,428	$	6,490	$	3,164,510	$	139,224	$	3,310,224	$	1,128

															Accruing Loans
	Loans Past Due		Loans Past Due		Loans Past Due		Total		Current		PCI		Total		Past Due
December 31, 2012	30-59 Days		60-89 Days		90 Days or More		Past Due Loans		Loans		Loans		Loans		90 Days or More
Commercial and industrial:
Secured	$	7,844	$	348	$	2,131	$	10,323	$	1,473,242	$	67,967	$	1,551,532	$	2,000
Unsecured	3		—		—		3		105,339		3,419		108,761		—
Real estate:
Secured by commercial properties	714		—		—		714		868,070		55,519		924,303		—
Secured by residential properties	755		101		—		856		253,027		6,728		260,611		—
Construction and land development:
Residential construction loans	—		—		—		—		47,461		708		48,169		—
Commercial construction loans and land development	63		—		—		63		199,889		32,362		232,314		—
Consumer	84		—		—		84		26,545		77		26,706		—
	$	9,463	$	449	$	2,131	$	12,043	$	2,973,573	$	166,780	$	3,152,396	$	2,000

Schedule of internal risk grades of loans by class

The following tables present the internal risk grades of non-covered loans, as previously described, in the portfolio by class (in thousands).

September 30, 2013	Pass		Special Mention		Substandard		PCI		Total
Commercial and industrial:
Secured	$	1,430,645	$	6,269	$	18,385	$	56,831	$	1,512,130
Unsecured	111,381		13		222		1,676		113,292
Real estate:
Secured by commercial properties	1,003,771		505		320		42,077		1,046,673
Secured by residential properties	266,949		—		3,796		4,636		275,381
Construction and land development:
Residential construction loans	57,205		—		—		—		57,205
Commercial construction loans and land development	227,192		874		480		24,641		253,187
Consumer	42,950		32		11		9,363		52,356
	$	3,140,093	$	7,693	$	23,214	$	139,224	$	3,310,224

December 31, 2012	Pass		Special Mention		Substandard		PCI		Total
Commercial and industrial:
Secured	$	1,476,420	$	2,515	$	4,630	$	67,967	$	1,551,532
Unsecured	105,142		200		—		3,419		108,761
Real estate:
Secured by commercial properties	868,784		—		—		55,519		924,303
Secured by residential properties	253,883		—		—		6,728		260,611
Construction and land development:
Residential construction loans	47,461		—		—		708		48,169
Commercial construction loans and land development	199,952		—		—		32,362		232,314
Consumer	26,629		—		—		77		26,706
	$	2,978,271	$	2,715	$	4,630	$	166,780	$	3,152,396

Schedule of changes in the allowance for loan losses by portfolio segment

Changes in the allowance for non-covered loan losses, distributed by portfolio segment, are shown below (in thousands).

	Commercial and						Construction and
Three months ended September 30, 2013	Industrial			Real Estate			Land Development			Consumer			Total
Balance, beginning of period	$	13,806		$	5,339		$	7,050		$	42		$	26,237
Provision charged to operations	8,879			1,776			6			(3		)	10,658
Loans charged off	(3,220		)	(53		)	(524		)	(3		)	(3,800		)
Recoveries on charged off loans	42			26			2			15			85
Balance, end of period	$	19,507		$	7,088		$	6,534		$	51		$	33,180

	Commercial and						Construction and
Nine months ended September 30, 2013	Industrial			Real Estate			Land Development			Consumer			Total
Balance, beginning of period	$	1,845		$	977		$	582		$	5		$	3,409
Provision charged to operations	22,519			6,033			6,323			77			34,952
Loans charged off	(7,314		)	(149		)	(524		)	(74		)	(8,061		)
Recoveries on charged off loans	2,457			227			153			43			2,880
Balance, end of period	$	19,507		$	7,088		$	6,534		$	51		$	33,180

Schedule of loan portfolio distributed by portfolio segment and impairment methodology

The non-covered loan portfolio was distributed by portfolio segment and impairment methodology as shown below (in thousands).

	Commercial and				Construction and
September 30, 2013	Industrial		Real Estate		Land Development		Consumer		Total
Loans individually evaluated for impairment	$	940	$	161	$	—	$	—	$	1,101
Loans collectively evaluated for impairment	1,565,975		1,275,180		285,751		42,993		3,169,899
PCI Loans individually evaluated for impairment	58,507		46,713		24,641		9,363		139,224
	$	1,625,422	$	1,322,054	$	310,392	$	52,356	$	3,310,224

	Commercial and				Construction and
December 31, 2012	Industrial		Real Estate		Land Development		Consumer		Total
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment	1,588,907		1,122,667		247,413		26,629		2,985,616
PCI Loans individually evaluated for impairment	71,386		62,247		33,070		77		166,780
	$	1,660,293	$	1,184,914	$	280,483	$	26,706	$	3,152,396

Schedule of allowance for loan losses distributed by portfolio segment and impairment methodology

The allowance for non-covered loan losses was distributed by portfolio segment and impairment methodology as shown below (in thousands).

	Commercial and				Construction and
September 30, 2013	Industrial		Real Estate		Land Development		Consumer		Total
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment	16,775		6,810		6,533		51		30,169
PCI Loans individually evaluated for impairment	2,732		278		1		—		3,011
	$	19,507	$	7,088	$	6,534	$	51	$	33,180

	Commercial and				Construction and
December 31, 2012	Industrial		Real Estate		Land Development		Consumer		Total
Loans individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—
Loans collectively evaluated for impairment	1,845		977		582		5		3,409
PCI Loans individually evaluated for impairment	—		—		—		—		—
	$	1,845	$	977	$	582	$	5	$	3,409