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Acquired Loans (Tables)
 3 Months Ended
Mar. 31, 2015
Acquired Loans [Abstract]  
Schedule of covered and noncovered acquired loans by type
At March 31, 2015 and December 31, 2014, acquired loans consisted of the following ($ in thousands):
 
  
March 31, 2015
  
December 31, 2014
 
  
Noncovered
  
Covered
  
Noncovered
  
Covered
 
Loans secured by real estate:
 
  
  
  
 
Construction, land development and other land
 
$
51,363
  
$
1,447
  
$
58,309
  
$
1,197
 
Secured by 1-4 family residential properties
  
111,830
   
11,200
   
116,920
   
13,180
 
Secured by nonfarm, nonresidential properties
  
177,210
   
5,844
   
202,323
   
7,672
 
Other real estate secured
  
26,819
   
1,469
   
27,813
   
1,096
 
Commercial and industrial loans
  
81,261
   
255
   
88,256
   
277
 
Consumer loans
  
8,494
   
-
   
9,772
   
-
 
Other loans
  
21,195
   
56
   
22,390
   
204
 
Acquired loans
  
478,172
   
20,271
   
525,783
   
23,626
 
Less allowance for loan losses, acquired loans
  
11,106
   
731
   
10,541
   
1,518
 
Net acquired loans
 
$
467,066
  
$
19,540
  
$
515,242
  
$
22,108
 
Changes in the carrying value of acquired loans
The following table presents changes in the net carrying value of the acquired loans for the periods presented ($ in thousands):
 
  
Noncovered
  
Covered
 
  
Acquired
Impaired
  
Acquired
Not ASC 310-30 (1)
  
Acquired
Impaired
  
Acquired
Not ASC 310-30 (1)
 
Carrying value, net at January 1, 2014
 
$
639,656
  
$
123,085
  
$
30,166
  
$
1,663
 
Accretion to interest income
  
44,575
   
1,706
   
4,052
   
1
 
Payments received, net
  
(216,378
)
  
(42,284
)
  
(12,396
)
  
(30
)
Other (2)
  
(29,724
)
  
(2,102
)
  
(1,733
)
  
(484
)
Less change in allowance for loan losses, acquired loans
  
(3,978
)
  
686
   
415
   
454
 
Carrying value, net at December 31, 2014
  
434,151
   
81,091
   
20,504
   
1,604
 
Accretion to interest income
  
9,452
   
270
   
745
   
(1
)
Payments received, net
  
(53,314
)
  
(4,175
)
  
(4,097
)
  
(3
)
Other (2)
  
156
   
-
   
1
   
-
 
Less change in allowance for loan losses, acquired loans
  
(565
)
  
-
   
787
   
-
 
Carrying value, net at March 31, 2015
 
$
389,880
  
$
77,186
  
$
17,940
  
$
1,600
 

(1)
"Acquired Not ASC 310-30" loans consist of revolving credit agreements and commercial leases that are not in scope for FASB ASC Topic 310-30, "Loans and Debt Securities Acquired with Deteriorated Credit Quality."
(2)
Includes acquired loan terminations through foreclosure, charge-off, pool recovery and other terminations.
Changes in accretable yield of acquired loans
The following table presents changes in the accretable yield for the periods presented ($ in thousands):
 
  
Three Months Ended March 31,
 
  
2015
  
2014
 
Accretable yield at beginning of period
 
$
(77,149
)
 
$
(109,006
)
Accretion to interest income
  
10,197
   
12,709
 
Disposals
  
3,103
   
2,883
 
Reclassification to / (from) nonaccretable difference (1)
  
(6,179
)
  
(11,904
)
Accretable yield at end of period
 
$
(70,028
)
 
$
(105,318
)

(1)
Reclassifications from nonaccretable difference are due to lower loss expectations and improvements in expected cash flows.
Components of the allowance for loan losses on acquired loans
The following tables present the components of the allowance for loan losses on acquired loans for the three months ended March 31, 2015 and 2014 ($ in thousands):
 
  
Noncovered
  
Covered
  
Total
 
Balance at January 1, 2015
 
$
10,541
  
$
1,518
  
$
12,059
 
Provision for loan losses, acquired loans
  
659
   
(312
)
  
347
 
Loans charged-off
  
(502
)
  
(516
)
  
(1,018
)
Recoveries
  
408
   
41
   
449
 
Net charge-offs
  
(94
)
  
(475
)
  
(569
)
Balance at March 31, 2015
 
$
11,106
  
$
731
  
$
11,837
 

  
Noncovered
  
Covered
  
Total
 
Balance at January 1, 2014
 
$
7,249
  
$
2,387
  
$
9,636
 
Provision for loan losses, acquired loans
  
537
   
(474
)
  
63
 
Loans charged-off
  
729
   
(53
)
  
676
 
Recoveries
  
225
   
(60
)
  
165
 
Net recoveries (charge-offs)
  
954
   
(113
)
  
841
 
Balance at March 31, 2014
 
$
8,740
  
$
1,800
  
$
10,540
 
Carrying amount of acquired loans by credit quality indicator
The tables below illustrate the carrying amount of acquired loans by credit quality indicator at March 31, 2015 and December 31, 2014 ($ in thousands):
 
         
March 31, 2015
 
  
Commercial Loans
 
  
Pass -
Categories 1-6
  
Special Mention -
Category 7
  
Substandard -
Category 8
  
Doubtful -
Category 9
  
Subtotal
 
Noncovered Loans:
          
Loans secured by real estate:
          
Construction, land development and other land
 
$
17,743
  
$
273
  
$
24,410
  
$
5,624
  
$
48,050
 
Secured by 1-4 family residential properties
  
30,997
   
577
   
7,626
   
379
   
39,579
 
Secured by nonfarm, nonresidential properties
  
137,841
   
3,353
   
34,968
   
1,048
   
177,210
 
Other real estate secured
  
21,709
   
91
   
4,919
   
93
   
26,812
 
Commercial and industrial loans
  
57,852
   
11
   
19,626
   
3,772
   
81,261
 
Consumer loans
  
-
   
-
   
-
   
-
   
-
 
Other loans
  
18,613
   
45
   
2,520
   
-
   
21,178
 
Total noncovered loans
  
284,755
   
4,350
   
94,069
   
10,916
   
394,090
 
 
Covered Loans: (1)
                    
Loans secured by real estate:
                    
Construction, land development and other land
  
250
   
-
   
988
   
119
   
1,357
 
Secured by 1-4 family residential properties
  
1,096
   
214
   
612
   
-
   
1,922
 
Secured by nonfarm, nonresidential properties
  
3,993
   
85
   
1,197
   
-
   
5,275
 
Other real estate secured
  
348
   
123
   
461
   
2
   
934
 
Commercial and industrial loans
  
123
   
23
   
109
   
-
   
255
 
Other loans
  
53
   
-
   
-
   
-
   
53
 
Total covered loans
  
5,863
   
445
   
3,367
   
121
   
9,796
 
Total acquired loans
 
$
290,618
  
$
4,795
  
$
97,436
  
$
11,037
  
$
403,886
 
 
  
Consumer Loans
   
  
Current
  
Past Due
30-89 Days
  
Past Due
90 Days or More
  
Nonaccrual
  
Subtotal
  
Total
Acquired Loans
 
Noncovered Loans:
            
Loans secured by real estate:
            
Construction, land development and other land
  
3,074
   
10
   
229
  
$
-
  
$
3,313
  
$
51,363
 
Secured by 1-4 family residential properties
  
66,876
   
2,459
   
2,711
   
205
   
72,251
   
111,830
 
Secured by nonfarm, nonresidential properties
  
-
   
-
   
-
   
-
   
-
   
177,210
 
Other real estate secured
  
7
   
-
   
-
   
-
   
7
   
26,819
 
Commercial and industrial loans
  
-
   
-
   
-
   
-
   
-
   
81,261
 
Consumer loans
  
8,371
   
114
   
9
   
-
   
8,494
   
8,494
 
Other loans
  
17
   
-
   
-
   
-
   
17
   
21,195
 
Total noncovered loans
  
78,345
   
2,583
   
2,949
   
205
   
84,082
   
478,172
 
                         
Covered Loans: (1)
                        
Loans secured by real estate:
                        
Construction, land development and other land
  
90
   
-
   
-
   
-
   
90
   
1,447
 
Secured by 1-4 family residential properties
  
8,385
   
388
   
505
   
-
   
9,278
   
11,200
 
Secured by nonfarm, nonresidential properties
  
569
   
-
   
-
   
-
   
569
   
5,844
 
Other real estate secured
  
500
   
-
   
35
   
-
   
535
   
1,469
 
Commercial and industrial loans
  
-
   
-
   
-
   
-
   
-
   
255
 
Other loans
  
3
   
-
   
-
   
-
   
3
   
56
 
Total covered loans
  
9,547
   
388
   
540
   
-
   
10,475
   
20,271
 
Total acquired loans
  
87,892
  
$
2,971
  
$
3,489
  
$
205
  
$
94,557
  
$
498,443
 
 
(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, 2014
 
  
Commercial Loans
 
  
Pass -
Categories 1-6
  
Special Mention -
Category 7
  
Substandard -
Category 8
  
Doubtful -
Category 9
  
Subtotal
 
Noncovered Loans:
          
Loans secured by real estate:
          
Construction, land development and other land
 
$
20,224
  
$
280
  
$
28,339
  
$
5,821
  
$
54,664
 
Secured by 1-4 family residential properties
  
30,796
   
760
   
8,466
   
388
   
40,410
 
Secured by nonfarm, nonresidential properties
  
157,753
   
3,452
   
39,408
   
1,710
   
202,323
 
Other real estate secured
  
22,754
   
92
   
4,864
   
95
   
27,805
 
Commercial and industrial loans
  
64,720
   
17
   
19,706
   
3,813
   
88,256
 
Consumer loans
  
-
   
-
   
-
   
-
   
-
 
Other loans
  
19,706
   
45
   
2,617
   
-
   
22,368
 
Total noncovered loans
  
315,953
   
4,646
   
103,400
   
11,827
   
435,826
 
                     
Covered Loans: (1)
                    
Loans secured by real estate:
                    
Construction, land development and other land
  
-
   
-
   
955
   
102
   
1,057
 
Secured by 1-4 family residential properties
  
194
   
235
   
1,045
   
-
   
1,474
 
Secured by nonfarm, nonresidential properties
  
4,419
   
88
   
2,879
   
-
   
7,386
 
Other real estate secured
  
-
   
108
   
426
   
2
   
536
 
Commercial and industrial loans
  
145
   
24
   
108
   
-
   
277
 
Other loans
  
204
   
-
   
-
   
-
   
204
 
Total covered loans
  
4,962
   
455
   
5,413
   
104
   
10,934
 
Total acquired loans
 
$
320,915
  
$
5,101
  
$
108,813
  
$
11,931
  
$
446,760
 
 
  
Consumer Loans
   
  
Current
  
Past Due
30-89 Days
  
Past Due
90 Days or More
  
Nonaccrual
  
Subtotal
  
Total
Acquired Loans
 
Noncovered Loans:
            
Loans secured by real estate:
            
Construction, land development and other land
  
3,338
   
25
   
282
  
$
-
  
$
3,645
  
$
58,309
 
Secured by 1-4 family residential properties
  
71,316
   
2,335
   
2,742
   
117
   
76,510
   
116,920
 
Secured by nonfarm, nonresidential properties
  
-
   
-
   
-
   
-
   
-
   
202,323
 
Other real estate secured
  
8
   
-
   
-
   
-
   
8
   
27,813
 
Commercial and industrial loans
  
-
   
-
   
-
   
-
   
-
   
88,256
 
Consumer loans
  
9,634
   
114
   
24
   
-
   
9,772
   
9,772
 
Other loans
  
22
   
-
   
-
   
-
   
22
   
22,390
 
Total noncovered loans
  
84,318
   
2,474
   
3,048
   
117
   
89,957
   
525,783
 
                         
Covered Loans: (1)
                        
Loans secured by real estate:
                        
Construction, land development and other land
  
140
   
-
   
-
   
-
   
140
   
1,197
 
Secured by 1-4 family residential properties
  
10,925
   
473
   
308
   
-
   
11,706
   
13,180
 
Secured by nonfarm, nonresidential properties
  
286
   
-
   
-
   
-
   
286
   
7,672
 
Other real estate secured
  
525
   
-
   
35
   
-
   
560
   
1,096
 
Commercial and industrial loans
  
-
   
-
   
-
   
-
   
-
   
277
 
Other loans
  
-
   
-
   
-
   
-
   
-
   
204
 
Total covered loans
  
11,876
   
473
   
343
   
-
   
12,692
   
23,626
 
Total acquired loans
 
$
96,194
  
$
2,947
  
$
3,391
  
$
117
  
$
102,649
  
$
549,409
 
 
(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 March 31, 2015 and December 31, 2014 ($ in thousands):
 
  
March 31, 2015
 
  
Past Due
       
  
30-59 Days
  
60-89 Days
  
90 Days
or More (1)
  
Total
  
Nonaccrual (2)
  
Current
Loans
  
Total Acquired
Loans
 
Noncovered loans:
              
Loans secured by real estate:
              
Construction, land development and other land
 
$
874
  
$
119
  
$
18,348
  
$
19,341
  
$
190
  
$
31,832
  
$
51,363
 
Secured by 1-4 family residential properties
  
1,991
   
1,529
   
4,649
   
8,169
   
495
   
103,166
   
111,830
 
Secured by nonfarm, nonresidential properties
  
588
   
31
   
9,077
   
9,696
   
-
   
167,514
   
177,210
 
Other real estate secured
  
6
   
-
   
1,992
   
1,998
   
-
   
24,821
   
26,819
 
Commercial and industrial loans
  
2,563
   
89
   
1,434
   
4,086
   
1,035
   
76,140
   
81,261
 
Consumer loans
  
79
   
35
   
9
   
123
   
-
   
8,371
   
8,494
 
Other loans
  
34
   
-
   
-
   
34
   
-
   
21,161
   
21,195
 
Total noncovered loans
  
6,135
   
1,803
   
35,509
   
43,447
   
1,720
   
433,005
   
478,172
 
                             
Covered loans:
                            
Loans secured by real estate:
                            
Construction, land development and other land
  
-
   
-
   
119
   
119
   
-
   
1,328
   
1,447
 
Secured by 1-4 family residential properties
  
413
   
67
   
706
   
1,186
   
-
   
10,014
   
11,200
 
Secured by nonfarm, nonresidential properties
  
292
   
241
   
489
   
1,022
   
-
   
4,822
   
5,844
 
Other real estate secured
  
30
   
-
   
384
   
414
   
-
   
1,055
   
1,469
 
Commercial and industrial loans
  
5
   
-
   
42
   
47
   
67
   
141
   
255
 
Other loans
  
-
   
-
   
-
   
-
   
-
   
56
   
56
 
Total covered loans
  
740
   
308
   
1,740
   
2,788
   
67
   
17,416
   
20,271
 
Total acquired loans
 
$
6,875
  
$
2,111
  
$
37,249
  
$
46,235
  
$
1,787
  
$
450,421
  
$
498,443
 
 
(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, 2014
 
Past Due
  
30-59 Days
  
60-89 Days
  
90 Days
or More (1)
  
Total
  
Nonaccrual (2)
  
Current
Loans
  
Total Acquired
Loans
 
Noncovered loans:
              
Loans secured by real estate:
              
Construction, land development and other land
 
$
246
  
$
7
  
$
21,985
  
$
22,238
  
$
194
  
$
35,877
  
$
58,309
 
Secured by 1-4 family residential properties
  
2,576
   
981
   
5,162
   
8,719
   
422
   
107,779
   
116,920
 
Secured by nonfarm, nonresidential properties
  
89
   
865
   
13,275
   
14,229
   
-
   
188,094
   
202,323
 
Other real estate secured
  
-
   
-
   
604
   
604
   
-
   
27,209
   
27,813
 
Commercial and industrial loans
  
334
   
128
   
1,099
   
1,561
   
461
   
86,234
   
88,256
 
Consumer loans
  
86
   
29
   
24
   
139
   
-
   
9,633
   
9,772
 
Other loans
  
-
   
-
   
-
   
-
   
-
   
22,390
   
22,390
 
Total noncovered loans
  
3,331
   
2,010
   
42,149
   
47,490
   
1,077
   
477,216
   
525,783
 
                             
Covered loans:
                            
Loans secured by real estate:
                            
Construction, land development and other land
  
-
   
-
   
376
   
376
   
-
   
821
   
1,197
 
Secured by 1-4 family residential properties
  
253
   
296
   
477
   
1,026
   
-
   
12,154
   
13,180
 
Secured by nonfarm, nonresidential properties
  
239
   
488
   
-
   
727
   
-
   
6,945
   
7,672
 
Other real estate secured
  
-
   
-
   
368
   
368
   
-
   
728
   
1,096
 
Commercial and industrial loans
  
-
   
-
   
42
   
42
   
67
   
168
   
277
 
Other loans
  
-
   
-
   
-
   
-
   
-
   
204
   
204
 
Total covered loans
  
492
   
784
   
1,263
   
2,539
   
67
   
21,020
   
23,626
 
Total acquired loans
 
$
3,823
  
$
2,794
  
$
43,412
  
$
50,029
  
$
1,144
  
$
498,236
  
$
549,409
 
 
(1) Past due 90 days or more but still accruing interest.                                                                                                                         
(2) Acquired loans not accounted for under FASB ASC Topic 310-30.