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

6 Months Ended

Jun. 30, 2014

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):

	June 30, 2014		December 31, 2013
Loans secured by real estate:
Construction, land development and other land loans	$	531,651	$	596,889
Secured by 1-4 family residential properties		1,581,859		1,485,564
Secured by nonfarm, nonresidential properties		1,544,516		1,415,139
Other		250,383		189,362
Commercial and industrial loans		1,250,146		1,157,614
Consumer loans		165,372		165,308
Other loans		863,073		789,005
LHFI		6,187,000		5,798,881
Less allowance for loan losses, LHFI		66,648		66,448
Net LHFI	$	6,120,352	$	5,732,433

Summary of LHFI evaluated for impairment

The following table details LHFI individually and collectively evaluated for impairment at June 30, 2014 and December 31, 2013 ($ in thousands):

	June 30, 2014
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land loans	$	21,142	$	510,509	$	531,651
Secured by 1-4 family residential properties		23,403		1,558,456		1,581,859
Secured by nonfarm, nonresidential properties		18,659		1,525,857		1,544,516
Other		1,233		249,150		250,383
Commercial and industrial loans		5,762		1,244,384		1,250,146
Consumer loans		107		165,265		165,372
Other loans		812		862,261		863,073
Total	$	71,118	$	6,115,882	$	6,187,000

	December 31, 2013
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land loans	$	13,327	$	583,562	$	596,889
Secured by 1-4 family residential properties		21,603		1,463,961		1,485,564
Secured by nonfarm, nonresidential properties		21,809		1,393,330		1,415,139
Other		1,327		188,035		189,362
Commercial and industrial loans		6,286		1,151,328		1,157,614
Consumer loans		151		165,157		165,308
Other loans		735		788,270		789,005
Total	$	65,238	$	5,733,643	$	5,798,881

Impaired financing receivables

At June 30, 2014 and December 31, 2013, the carrying amount of LHFI individually evaluated for impairment consisted of the following ($ in thousands):

	June 30, 2014
	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	$	27,637	$	8,992	$	12,150	$	21,142	$	2,895	$	17,235
Secured by 1-4 family residential properties		28,467		1,811		21,592		23,403		308		22,503
Secured by nonfarm, nonresidential properties		21,436		14,553		4,106		18,659		1,642		20,234
Other		1,489		-		1,233		1,233		53		1,280
Commercial and industrial loans		8,143		3,094		2,668		5,762		884		6,024
Consumer loans		199		-		107		107		-		129
Other loans		952		-		812		812		259		774
Total	$	88,323	$	28,450	$	42,668	$	71,118	$	6,041	$	68,179

	December 31, 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	$	24,350	$	9,817	$	3,510	$	13,327	$	989	$	20,216
Secured by 1-4 family residential properties		26,541		3,095		18,508		21,603		191		24,359
Secured by nonfarm, nonresidential properties		24,879		10,225		11,584		21,809		2,307		20,049
Other		1,375		-		1,327		1,327		122		2,641
Commercial and industrial loans		8,702		2,506		3,780		6,286		1,253		5,513
Consumer loans		286		-		151		151		2		255
Other loans		849		-		735		735		317		767
Total	$	86,982	$	25,643	$	39,595	$	65,238	$	5,181	$	73,800

Impact of modifications classified as troubled debt restructurings

The following table illustrates the impact of modifications classified as TDRs for the three and six months ended June 30, 2014 and 2013 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 June 30,
	2014						2013
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		4	$	278	$	273		3	$	131	$	133

	Six Months Ended June 30,
		2014						2013
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		14	$	981	$	967		5	$	380	$	326
Secured by nonfarm, nonresidential properties		-		-		-		1		952		952
Commercial and industrial		-		-		-		2		944		937
Other loans		-		-		-		1		2,490		2,490
Total		14	$	981	$	967		9	$	4,766	$	4,705

Troubled debt restructuring subsequently defaulted

	Six Months Ended June 30,
		2014				2013
Troubled Debt Restructurings that Subsequently Defaulted			Number of Contracts		Recorded Investment	Number of Contracts		Recorded Investment
Construction, land development and other land loans			-	$	-	1	$	10
Secured by 1-4 family residential properties			1		108	15		1,088
Total			1	$	108	16	$	1,098

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

The following tables detail LHFI classified as TDRs by loan type for the periods presented ($ in thousands):

	June 30, 2014
	Accruing		Nonaccrual		Total
Construction, land development and other land loans	$	-	$	4,521	$	4,521
Secured by 1-4 family residential properties		1,543		3,873		5,416
Secured by nonfarm, nonresidential properties		-		1,979		1,979
Other loans secured by real estate		-		159		159
Commercial and industrial		-		531		531
Total Troubled Debt Restructurings by Type	$	1,543	$	11,063	$	12,606

	December 31, 2013
	Accruing		Nonaccrual		Total
Construction, land development and other land loans	$	-	$	6,247	$	6,247
Secured by 1-4 family residential properties		1,320		4,201		5,521
Secured by nonfarm, nonresidential properties		-		2,292		2,292
Other loans secured by real estate		-		167		167
Commercial and industrial		-		549		549
Total Troubled Debt Restructurings by Type	$	1,320	$	13,456	$	14,776

	June 30, 2013
	Accruing		Nonaccrual		Total
Construction, land development and other land loans	$	229	$	9,322	$	9,551
Secured by 1-4 family residential properties		1,263		5,275		6,538
Secured by nonfarm, nonresidential properties		-		2,419		2,419
Other loans secured by real estate		-		178		178
Commercial and industrial		-		575		575
Total Troubled Debt Restructurings by Type	$	1,492	$	17,769	$	19,261

Carrying amount of loans by credit quality indicator

The table below illustrates the carrying amount of LHFI by credit quality indicator at June 30, 2014 and December 31, 2013 ($ in thousands):

	June 30, 2014
		Commercial LHFI
Loans secured by real estate:		Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Construction, land development and other land loans		$	426,213	$	3,321	$	44,726	$	143	$	474,403
Secured by 1-4 family residential properties			125,513		1,500		7,069		181		134,263
Secured by nonfarm, nonresidential properties			1,459,068		5,988		78,187		293		1,543,536
Other			240,816		-		6,722		-		247,538
Commercial and industrial loans			1,195,331		22,591		30,694		1,520		1,250,136
Consumer loans			297		-		-		-		297
Other loans			841,860		7,798		6,707		540		856,905
		$	4,289,098	$	41,198	$	174,105	$	2,677	$	4,507,078

	Consumer LHFI
			Past Due		Past Due
	Current		30-89 Days		90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other land loans	$	56,804	$	258	$	54	$	132	$	57,248	$	531,651
Secured by 1-4 family residential properties		1,413,308		12,423		1,728		20,137		1,447,596		1,581,859
Secured by nonfarm, nonresidential properties		980		-		-		-		980		1,544,516
Other		2,845		-		-		-		2,845		250,383
Commercial and industrial loans		9		-		1		-		10		1,250,146
Consumer loans		163,360		1,456		153		106		165,075		165,372
Other loans		6,168		-		-		-		6,168		863,073
	$	1,643,474	$	14,137	$	1,936	$	20,375	$	1,679,922	$	6,187,000

	December 31, 2013
		Commercial LHFI
Loans secured by real estate:			Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Construction, land development and other land loans			$	493,380	$	4,383	$	47,610	$	318	$	545,691
Secured by 1-4 family residential properties				119,640		479		7,839		110		128,068
Secured by nonfarm, nonresidential properties				1,313,470		12,620		87,203		399		1,413,692
Other				178,951		-		6,756		235		185,942
Commercial and industrial loans				1,099,429		18,771		37,209		2,187		1,157,596
Consumer loans				496		-		-		-		496
Other loans				777,395		60		4,126		669		782,250
			$	3,982,761	$	36,313	$	190,743	$	3,918	$	4,213,735

	Consumer LHFI
			Past Due		Past Due
	Current		30-89 Days		90 Days or More		Nonaccrual		Subtotal		Total LHFI
Loans secured by real estate:
Construction, land development and other land loans	$	50,850	$	131	$	-	$	217	$	51,198	$	596,889
Secured by 1-4 family residential properties		1,327,624		8,937		2,996		17,939		1,357,496		1,485,564
Secured by nonfarm, nonresidential properties		1,439		8		-		-		1,447		1,415,139
Other		3,418		2		-		-		3,420		189,362
Commercial and industrial loans		13		5		-		-		18		1,157,614
Consumer loans		162,348		2,012		302		150		164,812		165,308
Other loans		6,755		-		-		-		6,755		789,005
	$	1,552,447	$	11,095	$	3,298	$	18,306	$	1,585,146	$	5,798,881

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

LHFI past due 90 days or more totaled $1.9 million and $3.3 million at June 30, 2014 and December 31, 2013, respectively.  The following tables provide an aging analysis of past due and nonaccrual LHFI by class at June 30, 2014 and December 31, 2013 ($ in thousands):

	June 30, 2014
	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	$	1,797	$	53	$	1,850	$	21,142	$	508,659	$	531,651
Secured by 1-4 family residential properties		13,151		1,729		14,880		23,403		1,543,576		1,581,859
Secured by nonfarm, nonresidential properties		2,990		1		2,991		18,659		1,522,866		1,544,516
Other		129		-		129		1,233		249,021		250,383
Commercial and industrial loans		2,781		-		2,781		5,762		1,241,603		1,250,146
Consumer loans		1,456		152		1,608		107		163,657		165,372
Other loans		75		-		75		812		862,186		863,073
Total	$	22,379	$	1,935	$	24,314	$	71,118	$	6,091,568	$	6,187,000

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

	December 31, 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	$	923	$	-	$	923	$	13,327	$	582,639	$	596,889
Secured by 1-4 family residential properties		9,437		2,996		12,433		21,603		1,451,528		1,485,564
Secured by nonfarm, nonresidential properties		2,044		-		2,044		21,809		1,391,286		1,415,139
Other		5		-		5		1,327		188,030		189,362
Commercial and industrial loans		1,007		-		1,007		6,286		1,150,321		1,157,614
Consumer loans		2,012		302		2,314		151		162,843		165,308
Other loans		17		-		17		735		788,253		789,005
Total	$	15,445	$	3,298	$	18,743	$	65,238	$	5,714,900	$	5,798,881

(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):

	Six Months Ended June 30,
	2014			2013
Balance at January 1,	$	66,448		$	78,738
Loans charged-off		(6,836	)		(6,356	)
Recoveries		7,490			8,257
Net recoveries		654			1,901
Provision for loan losses, LHFI		(454	)		(7,814	)
Balance at June 30,	$	66,648		$	72,825

The followingtables detail the balance in the allowance for loan losses, LHFI by portfolio segment at June 30, 2014 and 2013 ($ in thousands):

	2014
	Balance							Provision for			Balance
	January 1,		Charge-offs			Recoveries		Loan Losses			June 30,
Loans secured by real estate:
Construction, land development and other land loans	$	13,165	$	(76	)	$	3,217	$	(5,271	)	$	11,035
Secured by 1-4 family residential properties		9,633		(1,634	)		255		2,200			10,454
Secured by nonfarm, nonresidential properties		19,672		(240	)		94		(942	)		18,584
Other		2,080		(262	)		-		645			2,463
Commercial and industrial loans		15,522		(1,656	)		286		2,788			16,940
Consumer loans		2,405		(883	)		1,973		(1,161	)		2,334
Other loans		3,971		(2,085	)		1,665		1,287			4,838
Total allowance for loan losses, LHFI	$	66,448	$	(6,836	)	$	7,490	$	(454	)	$	66,648

	Disaggregated by Impairment Method
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land loans	$	2,895	$	8,140	$	11,035
Secured by 1-4 family residential properties		308		10,146		10,454
Secured by nonfarm, nonresidential properties		1,642		16,942		18,584
Other		53		2,410		2,463
Commercial and industrial loans		884		16,056		16,940
Consumer loans		-		2,334		2,334
Other loans		259		4,579		4,838
Total allowance for loan losses, LHFI	$	6,041	$	60,607	$	66,648

	2013
	Balance							Provision for			Balance
	January 1,		Charge-offs			Recoveries		Loan Losses			June 30,
Loans secured by real estate:
Construction, land development and other land loans	$	21,838	$	(412	)	$	1,462	$	(6,424	)	$	16,464
Secured by 1-4 family residential properties		12,957		(532	)		213		(2,697	)		9,941
Secured by nonfarm, nonresidential properties		21,096		(434	)		26		(996	)		19,692
Other		2,197		(891	)		30		240			1,576
Commercial and industrial loans		14,319		(658	)		2,135		1,755			17,551
Consumer loans		3,087		(1,139	)		2,505		(1,602	)		2,851
Other loans		3,244		(2,290	)		1,886		1,910			4,750
Total allowance for loan losses, LHFI	$	78,738	$	(6,356	)	$	8,257	$	(7,814	)	$	72,825

	Disaggregated by Impairment Method
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land loans	$	1,527	$	14,937	$	16,464
Secured by 1-4 family residential properties		583		9,358		9,941
Secured by nonfarm, nonresidential properties		1,936		17,756		19,692
Other		38		1,538		1,576
Commercial and industrial loans		6,273		11,278		17,551
Consumer loans		2		2,849		2,851
Other loans		331		4,419		4,750
Total allowance for loan losses, LHFI	$	10,690	$	62,135	$	72,825