Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI (Tables)

9 Months Ended

Sep. 30, 2013

Loans Held for Investment (LHFI) and Allowance for Loan Losses, LHFI [Abstract]

Loan portfolio held for investment

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

	September 30, 2013		December 31, 2012
Loans secured by real estate:
Construction, land development and other land loans	$	572,057	$	468,975
Secured by 1-4 family residential properties		1,482,963		1,497,480
Secured by nonfarm, nonresidential properties		1,408,342		1,410,264
Other		196,328		189,949
Commercial and industrial loans		1,132,863		1,169,513
Consumer loans		164,612		171,660
Other loans		739,476		684,913
LHFI		5,696,641		5,592,754
Less allowance for loan losses, LHFI		68,632		78,738
Net LHFI	$	5,628,009	$	5,514,016

Summary of LHFI evaluated for impairment

The following table details LHFI individually and collectively evaluated for impairment at September 30, 2013 and December 31, 2012 ($ in thousands):

	September 30, 2013
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land loans	$	14,454	$	557,603	$	572,057
Secured by 1-4 family residential properties		23,715		1,459,248		1,482,963
Secured by nonfarm, nonresidential properties		21,290		1,387,052		1,408,342
Other		503		195,825		196,328
Commercial and industrial loans		12,196		1,120,667		1,132,863
Consumer loans		203		164,409		164,612
Other loans		1,020		738,456		739,476
Total	$	73,381	$	5,623,260	$	5,696,641

	December 31, 2012
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land loans	$	27,105	$	441,870	$	468,975
Secured by 1-4 family residential properties		27,114		1,470,366		1,497,480
Secured by nonfarm, nonresidential properties		18,289		1,391,975		1,410,264
Other		3,956		185,993		189,949
Commercial and industrial loans		4,741		1,164,772		1,169,513
Consumer loans		360		171,300		171,660
Other loans		798		684,115		684,913
Total	$	82,363	$	5,510,391	$	5,592,754

Impaired financing receivables

At September 30, 2013 and December 31, 2012, the carrying amount of LHFI individually evaluated for impairment consisted of the following ($ in thousands):

	September 30, 2013
	LHFI
	Unpaid		With No Related		With an		Total				Average
	Principal		Allowance		Allowance		Carrying		Related		Recorded
	Balance		Recorded		Recorded		Amount		Allowance		Investment
Loans secured by real estate:
Construction, land development and other land loans	$	26,139	$	11,073	$	3,381	$	14,454	$	957	$	20,779
Secured by 1-4 family residential properties		28,078		3,206		20,509		23,715		260		25,415
Secured by nonfarm, nonresidential properties		24,270		12,391		8,899		21,290		2,733		19,790
Other		543		-		503		503		37		2,229
Commercial and industrial loans		15,549		1,918		10,278		12,196		5,393		8,468
Consumer loans		392		-		203		203		2		281
Other loans		1,154		49		971		1,020		324		909
Total	$	96,125	$	28,637	$	44,744	$	73,381	$	9,706	$	77,871

	December 31, 2012
	LHFI
	Unpaid		With No Related		With an		Total				Average
	Principal		Allowance		Allowance		Carrying		Related		Recorded
	Balance		Recorded		Recorded		Amount		Allowance		Investment
Loans secured by real estate:
Construction, land development and other land loans	$	46,558	$	9,571	$	17,534	$	27,105	$	4,992	$	33,759
Secured by 1-4 family residential properties		35,155		2,533		24,581		27,114		1,469		25,731
Secured by nonfarm, nonresidential properties		23,337		8,184		10,105		18,289		2,296		21,135
Other		6,036		566		3,390		3,956		760		4,914
Commercial and industrial loans		7,251		2,336		2,405		4,741		640		9,444
Consumer loans		624		-		360		360		5		592
Other loans		857		-		798		798		342		835
Total	$	119,818	$	23,190	$	59,173	$	82,363	$	10,504	$	96,410

Impact of modifications classified as troubled debt restructurings

The following table illustrates the impact of modifications classified as TDRs for the three and nine months ended September 30, 2013 and 2012 as well as those TDRs modified within the last 12 months for which there was a payment default during the period ($ in thousands):

	Three Months Ended September 30,
	2013						2012
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Secured by 1-4 family residential properties		1	$	32	$	32		39	$	3,695	$	3,691
Other loans secured by real estate		-		-		-		1		199		199
Total		1	$	32	$	32		40	$	3,894	$	3,890

	Nine Months Ended September 30,
	2013						2012
Troubled Debt Restructurings	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Construction, land development and other land loans		-	$	-	$	-		11	$	4,078	$	4,078
Secured by 1-4 family residential properties		6		412		358		44		5,062		5,069
Secured by nonfarm, nonresidential properties		1		952		952		2		1,210		1,210
Other loans secured by real estate		-		-		-		1		199		199
Commercial and industrial		2		944		937		-		-		-
Other loans		1		2,490		2,490		-		-		-
Total		10	$	4,798	$	4,737		58	$	10,549	$	10,556

Troubled debt restructuring subsequently defaulted

	Nine Months Ended September 30,
	2013				2012
Troubled Debt Restructurings that Subsequently Defaulted	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Construction, land development and other land loans		1	$	9		10	$	3,671
Secured by 1-4 family residential properties		4		389		8		1,781
Secured by nonfarm, nonresidential properties		-		-		1		870
Total		5	$	398		19	$	6,322

Troubled debt restructuring related to loans held for investment, excluding covered loans, by loan type

At September 30, 2013 and December 31, 2012, the following table details LHFI classified as TDRs by loan type ($ in thousands):

	September 30, 2013
	Accruing		Nonaccrual		Total
Construction, land development and other land loans	$	227	$	7,304	$	7,531
Secured by 1-4 family residential properties		1,255		4,965		6,220
Secured by nonfarm, nonresidential properties		-		2,349		2,349
Other loans secured by real estate		-		174		174
Commercial and industrial		-		568		568
Total Troubled Debt Restructurings by Type	$	1,482	$	15,360	$	16,842

	December 31, 2012
	Accruing		Nonaccrual		Total
Construction, land development and other land loans	$	233	$	12,073	$	12,306
Secured by 1-4 family residential properties		1,280		5,908		7,188
Secured by nonfarm, nonresidential properties		-		4,582		4,582
Other loans secured by real estate		-		197		197
Total Troubled Debt Restructurings by Type	$	1,513	$	22,760	$	24,273

Carrying amount of loans by credit quality indicator

The table below illustrates the carrying amount of LHFI by credit quality indicator at September 30, 2013 and December 31, 2012 ($ in thousands):

	September 30, 2013
	Commercial LHFI
	Pass -		Special Mention -		Substandard -		Doubtful -
	Categories 1-6		Category 7		Category 8		Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other land loans	$	444,526	$	24,211	$	56,419	$	143	$	525,299
Secured by 1-4 family residential properties		120,665		567		8,257		113		129,602
Secured by nonfarm, nonresidential properties		1,304,158		9,854		92,908		556		1,407,476
Other		185,201		2		7,361		-		192,564
Commercial and industrial loans		1,080,726		2,951		41,506		7,618		1,132,801
Consumer loans		494		-		-		-		494
Other loans		730,609		-		1,737		696		733,042
	$	3,866,379	$	37,585	$	208,188	$	9,126	$	4,121,278

	Consumer LHFI
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other land loans	$	46,473	$	71	$	-	$	214	$	46,758	$	572,057
Secured by 1-4 family residential properties		1,321,599		10,228		1,998		19,536		1,353,361		1,482,963
Secured by nonfarm, nonresidential properties		857		9		-		-		866		1,408,342
Other		3,687		77		-		-		3,764		196,328
Commercial and industrial loans		49		8		1		4		62		1,132,863
Consumer loans		161,592		2,018		306		202		164,118		164,612
Other loans		6,434		-		-		-		6,434		739,476
	$	1,540,691	$	12,411	$	2,305	$	19,956	$	1,575,363	$	5,696,641

	December 31, 2012
	Commercial LHFI
	Pass -		Special Mention -		Substandard -		Doubtful -
	Categories 1-6		Category 7		Category 8		Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other land loans	$	335,179	$	23,812	$	63,832	$	143	$	422,966
Secured by 1-4 family residential properties		110,333		1,012		13,303		432		125,080
Secured by nonfarm, nonresidential properties		1,298,820		12,156		98,082		-		1,409,058
Other		178,790		444		5,768		-		185,002
Commercial and industrial loans		1,091,356		36,992		39,479		1,334		1,169,161
Consumer loans		404		-		-		-		404
Other loans		676,618		59		1,714		784		679,175
	$	3,691,500	$	74,475	$	222,178	$	2,693	$	3,990,846

	Consumer LHFI
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other land loans	$	44,131	$	1,109	$	-	$	769	$	46,009	$	468,975
Secured by 1-4 family residential properties		1,339,000		10,332		2,630		20,438		1,372,400		1,497,480
Secured by nonfarm, nonresidential properties		1,206		-		-		-		1,206		1,410,264
Other		4,746		150		-		51		4,947		189,949
Commercial and industrial loans		313		29		-		10		352		1,169,513
Consumer loans		167,131		3,481		285		359		171,256		171,660
Other loans		5,738		-		-		-		5,738		684,913
	$	1,562,265	$	15,101	$	2,915	$	21,627	$	1,601,908	$	5,592,754

Aging analysis of past due loans and Nonaccrual Loans, excluding covered loans by class

LHFI past due 90 days or more totaled $2.3 million and $6.4 million at September 30, 2013 and December 31, 2012, respectively.  The following table provides an aging analysis of past due and nonaccrual LHFI by class at September 30, 2013 and December 31, 2012 ($ in thousands):

	September 30, 2013
	Past Due
			90 Days						Current
	30-89 Days		or More (1)		Total		Nonaccrual		Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other land loans	$	12,401	$	1	$	12,402	$	14,454	$	545,201	$	572,057
Secured by 1-4 family residential properties		10,925		1,996		12,921		23,715		1,446,327		1,482,963
Secured by nonfarm, nonresidential properties		6,163		-		6,163		21,290		1,380,889		1,408,342
Other		120		-		120		503		195,705		196,328
Commercial and industrial loans		2,665		41		2,706		12,196		1,117,961		1,132,863
Consumer loans		2,018		306		2,324		203		162,085		164,612
Other loans		88		-		88		1,020		738,368		739,476
Total	$	34,380	$	2,344	$	36,724	$	73,381	$	5,586,536	$	5,696,641

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

	December 31, 2012
	Past Due
			90 Days						Current
	30-89 Days		or More (1)		Total		Nonaccrual		Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other land loans	$	4,957	$	438	$	5,395	$	27,105	$	436,475	$	468,975
Secured by 1-4 family residential properties		12,626		3,131		15,757		27,114		1,454,609		1,497,480
Secured by nonfarm, nonresidential properties		9,460		-		9,460		18,289		1,382,515		1,410,264
Other		172		-		172		3,956		185,821		189,949
Commercial and industrial loans		4,317		2,525		6,842		4,741		1,157,930		1,169,513
Consumer loans		3,480		284		3,764		360		167,536		171,660
Other loans		181		-		181		798		683,934		684,913
Total	$	35,193	$	6,378	$	41,571	$	82,363	$	5,468,820	$	5,592,754

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

Change in allowance for loan losses

Changes in the allowance for loan losses, LHFI were as follows ($ in thousands):

	Nine Months Ended September 30,
	2013			2012
Balance at January 1,	$	78,738		$	89,518
Loans charged-off		(10,173	)		(22,547	)
Recoveries		11,505			9,254
Net recoveries (charge-offs)		1,332			(13,293	)
Provision for loan losses, LHFI		(11,438	)		7,301
Balance at September 30,	$	68,632		$	83,526

The followingtables detail the balance in the allowance for loan losses, LHFI by portfolio segment at September 30, 2013 and 2012, respectively ($ in thousands):

	2013
	Balance							Provision for			Balance
	January 1,		Charge-offs			Recoveries		Loan Losses			September 30,
Loans secured by real estate:
Construction, land development and other land loans	$	21,838	$	(1,091	)	$	2,561	$	(7,419	)	$	15,889
Secured by 1-4 family residential properties		12,957		(839	)		363		(3,723	)		8,758
Secured by nonfarm, nonresidential properties		21,096		(572	)		64		(1,828	)		18,760
Other		2,197		(910	)		80		497			1,864
Commercial and industrial loans		14,319		(1,225	)		2,190		2,004			17,288
Consumer loans		3,087		(1,789	)		3,561		(2,256	)		2,603
Other loans		3,244		(3,747	)		2,686		1,287			3,470
Total allowance for loan losses, LHFI	$	78,738	$	(10,173	)	$	11,505	$	(11,438	)	$	68,632

	Disaggregated by Impairment Method
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land loans	$	957	$	14,932	$	15,889
Secured by 1-4 family residential properties		260		8,498		8,758
Secured by nonfarm, nonresidential properties		2,733		16,027		18,760
Other		37		1,827		1,864
Commercial and industrial loans		5,393		11,895		17,288
Consumer loans		2		2,601		2,603
Other loans		324		3,146		3,470
Total allowance for loan losses, LHFI	$	9,706	$	58,926	$	68,632

	2012
	Balance							Provision for			Balance
	January 1,		Charge-offs			Recoveries		Loan Losses			September 30,
Loans secured by real estate:
Construction, land development and other land loans	$	27,220	$	(2,944	)	$	-	$	(1,732	)	$	22,544
Secured by 1-4 family residential properties		12,650		(3,238	)		364		2,203			11,979
Secured by nonfarm, nonresidential properties		24,358		(5,409	)		-		3,823			22,772
Other		3,079		(1,602	)		-		733			2,210
Commercial and industrial loans		15,868		(2,985	)		2,123		3,428			18,434
Consumer loans		3,656		(2,360	)		4,189		(2,620	)		2,865
Other loans		2,687		(4,009	)		2,578		1,466			2,722
Total allowance for loan losses, LHFI	$	89,518	$	(22,547	)	$	9,254	$	7,301		$	83,526

	Disaggregated by Impairment Method
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land loans	$	4,829	$	17,715	$	22,544
Secured by 1-4 family residential properties		1,373		10,606		11,979
Secured by nonfarm, nonresidential properties		3,259		19,513		22,772
Other		855		1,355		2,210
Commercial and industrial loans		2,995		15,439		18,434
Consumer loans		4		2,861		2,865
Other loans		336		2,386		2,722
Total allowance for loan losses, LHFI	$	13,651	$	69,875	$	83,526