Acquired Loans (Tables)

6 Months Ended

Jun. 30, 2013

Acquired Loans Disclosure [Abstract]

Schedule of covered and noncovered acquired loans by type

For the periods presented, acquired loans consisted of the following ($ in thousands):

	June 30, 2013				December 31, 2012
	Covered		Noncovered		Covered		Noncovered
Loans secured by real estate:
Construction, land development and other land loans	$	3,662	$	132,116	$	3,924	$	10,056
Secured by 1-4 family residential properties		18,899		184,928		23,990		19,404
Secured by nonfarm, nonresidential properties		13,341		318,603		18,407		45,649
Other		2,929		34,869		3,567		669
Commercial and industrial loans		543		206,338		747		3,035
Consumer loans		173		27,420		177		2,610
Other loans		1,273		18,179		1,229		100
Acquired loans		40,820		922,453		52,041		81,523
Less allowance for loan losses, acquired loans		2,578		112		4,190		1,885
Net acquired loans	$	38,242	$	922,341	$	47,851	$	79,638

Fair value of acquired loans

The following table presents the adjusted fair value of loans acquired as of the date of the BancTrust acquisition ($ in thousands):

At acquisition date:	February 15, 2013
Contractually required principal and interest	$	1,256,669
Nonaccretable difference		193,962
Cash flows expected to be collected		1,062,707
Accretable yield		99,504
FASB ASC Topic 310-20 discount		12,716
Fair value of loans at acquisition	$	950,487

Changes in the carrying value of acquired loans

The following tables present changes in the net carrying value of the acquired loans for the periods presented ($ in thousands):

	Covered						Noncovered
	Acquired			Acquired			Acquired			Acquired
	Impaired			Not ASC 310-30 (1)			Impaired			Not ASC 310-30 (1)
Carrying value, net at January 1, 2012	$	72,131		$	4,171		$	4,350		$	13
Loans acquired (2)		-			-			91,987			5,927
Accretion to interest income		8,031			367			4,138			161
Payments received, net		(27,496	)		(2,107	)		(24,330	)		868
Other		(3,085	)		29			(1,318	)		(273	)
Less allowance for loan losses, acquired loans		(4,190	)		-			(1,885	)		-
Carrying value, net at December 31, 2012		45,391			2,460			72,942			6,696
Loans acquired (3)		-			-			796,587			153,900
Accretion to interest income		2,806			157			13,834			1,719
Payments received, net		(12,595	)		(658	)		(102,206	)		(19,488	)
Other		(920	)		(11	)		(3,464	)		48
Less allowance for loan losses, acquired loans		1,612			-			1,773			-
Carrying value, net at June 30, 2013	$	36,294		$	1,948		$	779,466		$	142,875

(1) Acquired nonimpaired loans consist of revolving credit agreements and commercial leases that are not in scope for FASB ASC Topic 310-30.

(2) Fair value of loans acquired from Bay Bank on March 16, 2012.

(3) Adjusted fair value of loans acquired from BancTrust on February 15, 2013.

Changes in accretable yield of acquired loans

The following table presents changes in the accretable yield ($ in thousands):

	Six Months Ended June 30,
	2013			2012
Accretable yield at January 1,	$	(26,383	)	$	(17,653	)
Additions due to acquisition (1)		(99,504	)		(15,538	)
Accretion to interest income		16,639			5,721
Disposals		7,196			1,371
Reclassification to / (from) nonaccretable difference		(5,180	)		(965	)
Accretable yield at June 30,	$	(107,232	)	$	(27,064	)

(1) Accretable yield on loans acquired from BancTrust on February 15, 2013, and Bay Bank on March 16, 2012.

Components of the allowance for loan losses on acquired impaired loans

The following table presents the components of the allowance for loan losses on acquired impaired loans for the six months ended June 30, 2013 and 2012 ($ in thousands):

	Covered			Noncovered			Total
Balance at January 1, 2013	$	4,190		$	1,885		$	6,075
Provision for loan losses, acquired loans		(1,328	)		(94	)		(1,422	)
Loans charged-off		(302	)		(2,142	)		(2,444	)
Recoveries		18			463			481
Net charge-offs		(284	)		(1,679	)		(1,963	)
Balance at June 30, 2013	$	2,578		$	112		$	2,690

	Covered			Noncovered			Total
Balance at January 1, 2012	$	502		$	-		$	502
Provision for loan losses, acquired loans		1,380			98			1,478
Loans charged-off		(591	)		(55	)		(646	)
Recoveries		173			19			192
Net charge-offs		(418	)		(36	)		(454	)
Balance at June 30, 2012	$	1,464		$	62		$	1,526

Carrying amount of acquired loans by credit quality indicator

The tables below illustrate the carrying amount of acquired loans by credit quality indicator at June 30, 2013 and December 31, 2012 ($ in thousands):

	June 30, 2013
	Commercial Loans
	Pass -		Special Mention -		Substandard -		Doubtful -
	Categories 1-6		Category 7		Category 8		Category 9		Subtotal
Covered Loans: (1)
Loans secured by real estate:
Construction, land development and other land loans	$	1,090	$	17	$	1,565	$	744	$	3,416
Secured by 1-4 family residential properties		1,892		489		2,223		-		4,604
Secured by nonfarm, nonresidential properties		5,532		253		6,885		-		12,670
Other		965		151		553		1		1,670
Commercial and industrial loans		367		1		175		-		543
Consumer loans		-		-		-		-		-
Other loans		260		-		377		609		1,246
Total covered loans		10,106		911		11,778		1,354		24,149
Noncovered loans:
Loans secured by real estate:
Construction, land development and other land loans		35,336		10,512		66,297		9,686		121,831
Secured by 1-4 family residential properties		26,064		19,222		18,386		1,071		64,743
Secured by nonfarm, nonresidential properties		200,350		24,534		86,652		6,982		318,518
Other		22,377		7,624		4,673		-		34,674
Commercial and industrial loans		159,783		15,895		25,925		4,735		206,338
Consumer loans		-		-		-		-		-
Other loans		16,142		1,694		263		-		18,099
Total noncovered loans		460,052		79,481		202,196		22,474		764,203
Total acquired loans	$	470,158	$	80,392	$	213,974	$	23,828	$	788,352

	Consumer Loans
			Past Due		Past Due						Total
	Current		30-89 Days		90 Days or More		Nonaccrual		Subtotal		Acquired Loans
Covered Loans: (1)
Loans secured by real estate:
Construction, land development and other land loans	$	246	$	-	$	-	$	-	$	246	$	3,662
Secured by 1-4 family residential properties		12,052		961		1,244		38		14,295		18,899
Secured by nonfarm, nonresidential properties		503		-		168		-		671		13,341
Other		1,182		75		-		2		1,259		2,929
Commercial and industrial loans		-		-		-		-		-		543
Consumer loans		173		-		-		-		173		173
Other loans		27		-		-		-		27		1,273
Total covered loans		14,183		1,036		1,412		40		16,671		40,820
Noncovered loans:
Loans secured by real estate:
Construction, land development and other land loans		8,803		305		1,177		-		10,285		132,116
Secured by 1-4 family residential properties		110,501		4,430		4,778		476		120,185		184,928
Secured by nonfarm, nonresidential properties		85		-		-		-		85		318,603
Other		195		-		-		-		195		34,869
Commercial and industrial loans		-		-		-		-		-		206,338
Consumer loans		26,622		599		199		-		27,420		27,420
Other loans		70		10		-		-		80		18,179
Total noncovered loans		146,276		5,344		6,154		476		158,250		922,453
Total acquired loans	$	160,459	$	6,380	$	7,566	$	516	$	174,921	$	963,273

(1) Total dollar balances are presented in this table; however, these loans are covered by the loss-share agreement with the FDIC.

  TNB is at risk for only 20% of the losses incurred on these loans.

	December 31, 2012
	Commercial Loans
	Pass -		Special Mention -		Substandard -		Doubtful -
	Categories 1-6		Category 7		Category 8		Category 9		Subtotal
Covered Loans: (1)
Loans secured by real estate:
Construction, land development and other land loans	$	1,341	$	18	$	1,489	$	744	$	3,592
Secured by 1-4 family residential properties		3,128		810		2,940		85		6,963
Secured by nonfarm, nonresidential properties		5,857		1,052		9,839		798		17,546
Other		443		318		1,231		-		1,992
Commercial and industrial loans		82		458		207		-		747
Consumer loans		-		-		-		-		-
Other loans		245		-		345		535		1,125
Total covered loans		11,096		2,656		16,051		2,162		31,965
Noncovered loans:
Loans secured by real estate:
Construction, land development and other land loans		3,259		119		4,915		921		9,214
Secured by 1-4 family residential properties		7,325		-		3,708		23		11,056
Secured by nonfarm, nonresidential properties		22,453		3,596		18,682		831		45,562
Other		236		-		417		-		653
Commercial and industrial loans		2,853		89		93		-		3,035
Consumer loans		-		-		-		-		-
Other loans		86		-		-		-		86
Total noncovered loans		36,212		3,804		27,815		1,775		69,606
Total acquired loans	$	47,308	$	6,460	$	43,866	$	3,937	$	101,571

	Consumer Loans
			Past Due		Past Due						Total
	Current		30-89 Days		90 Days or More		Nonaccrual		Subtotal		Acquired Loans
Covered Loans: (1)
Loans secured by real estate:
Construction, land development and other land loans	$	306	$	26	$	-	$	-	$	332	$	3,924
Secured by 1-4 family residential properties		14,311		1,028		1,650		38		17,027		23,990
Secured by nonfarm, nonresidential properties		692		169		-		-		861		18,407
Other		1,468		48		52		7		1,575		3,567
Commercial and industrial loans		-		-		-		-		-		747
Consumer loans		177		-		-		-		177		177
Other loans		104		-		-		-		104		1,229
Total covered loans		17,058		1,271		1,702		45		20,076		52,041
Noncovered loans:
Loans secured by real estate:
Construction, land development and other land loans		802		-		40		-		842		10,056
Secured by 1-4 family residential properties		7,715		357		215		61		8,348		19,404
Secured by nonfarm, nonresidential properties		87		-		-		-		87		45,649
Other		16		-		-		-		16		669
Commercial and industrial loans		-		-		-		-		-		3,035
Consumer loans		2,394		164		52		-		2,610		2,610
Other loans		14		-		-		-		14		100
Total noncovered loans		11,028		521		307		61		11,917		81,523
Total acquired loans	$	28,086	$	1,792	$	2,009	$	106	$	31,993	$	133,564

(1) Total dollar balances are presented in this table; however, these loans are covered by the loss-share agreement with the FDIC.

  TNB is at risk for only 20% of the losses incurred on these loans.

Aging analysis of past due and nonaccrual acquired loans, by class

The following table provides an aging analysis of contractually past due and nonaccrual acquired loans, by class at June 30, 2013 and December 31, 2012 ($ in thousands):

	June 30, 2013
	Past Due
			90 Days						Current		Total Acquired
	30-89 Days		or More (1)		Total		Nonaccrual (2)		Loans		Loans
Covered loans:
Loans secured by real estate:
Construction, land development and other land loans	$	260	$	428	$	688	$	445	$	2,529	$	3,662
Secured by 1-4 family residential properties		1,194		1,337		2,531		176		16,192		18,899
Secured by nonfarm, nonresidential properties		688		584		1,272		-		12,069		13,341
Other		91		1		92		2		2,835		2,929
Commercial and industrial loans		81		65		146		35		362		543
Consumer loans		-		-		-		-		173		173
Other loans		990		-		990		-		283		1,273
Total covered loans		3,304		2,415		5,719		658		34,443		40,820
Noncovered loans:
Loans secured by real estate:
Construction, land development and other land loans		8,418		49,107		57,525		75		74,516		132,116
Secured by 1-4 family residential properties		7,902		10,223		18,125		483		166,320		184,928
Secured by nonfarm, nonresidential properties		8,036		16,857		24,893		293		293,417		318,603
Other		262		1,326		1,588		247		33,034		34,869
Commercial and industrial loans		9,024		3,335		12,359		441		193,538		206,338
Consumer loans		599		199		798		-		26,622		27,420
Other loans		72		7		79		-		18,100		18,179
Total noncovered loans		34,313		81,054		115,367		1,539		805,547		922,453
Total acquired loans	$	37,617	$	83,469	$	121,086	$	2,197	$	839,990	$	963,273

(1) - Past due 90 days or more but still accruing interest.

(2) - Acquired loans not accounted for under FASB ASC Topic 310-30.

	December 31, 2012
	Past Due
			90 Days						Current		Total Acquired
	30-89 Days		or More (1)		Total		Nonaccrual (2)		Loans		Loans
Covered loans:
Loans secured by real estate:
Construction, land development and other land loans	$	240	$	246	$	486	$	445	$	2,993	$	3,924
Secured by 1-4 family residential properties		1,705		1,883		3,588		234		20,168		23,990
Secured by nonfarm, nonresidential properties		3,953		1,539		5,492		-		12,915		18,407
Other		221		52		273		9		3,285		3,567
Commercial and industrial loans		94		4		98		39		610		747
Consumer loans		-		-		-		-		177		177
Other loans		-		-		-		-		1,229		1,229
Total covered loans		6,213		3,724		9,937		727		41,377		52,041
Noncovered loans:
Loans secured by real estate:
Construction, land development and other land loans		-		3,622		3,622		-		6,434		10,056
Secured by 1-4 family residential properties		458		1,392		1,850		243		17,311		19,404
Secured by nonfarm, nonresidential properties		3,526		1,217		4,743		133		40,773		45,649
Other		30		44		74		-		595		669
Commercial and industrial loans		217		23		240		-		2,795		3,035
Consumer loans		164		52		216		-		2,394		2,610
Other loans		-		-		-		-		100		100
Total noncovered loans		4,395		6,350		10,745		376		70,402		81,523
Total acquired loans	$	10,608	$	10,074	$	20,682	$	1,103	$	111,779	$	133,564

(1) - Past due 90 days or more but still accruing interest.

(2) - Acquired loans not accounted for under FASB ASC Topic 310-30.