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

9 Months Ended

Sep. 30, 2015

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

At September 30, 2015 and December 31, 2014, LHFI consisted of the following ($ in thousands):

	September 30, 2015		December 31, 2014
Loans secured by real estate:
Construction, land development and other land	$	785,472	$	619,877
Secured by 1-4 family residential properties		1,638,639		1,634,397
Secured by nonfarm, nonresidential properties		1,604,453		1,553,193
Other real estate secured		225,523		253,787
Commercial and industrial loans		1,270,277		1,270,350
Consumer loans		169,509		167,964
State and other political subdivision loans		677,539		602,727
Other loans		420,231		347,174
LHFI		6,791,643		6,449,469
Less allowance for loan losses, LHFI		65,607		69,616
Net LHFI	$	6,726,036	$	6,379,853

Summary of LHFI evaluated for impairment

The following tables detail LHFI individually and collectively evaluated for impairment at September 30, 2015 and December 31, 2014 ($ in thousands):

	September 30, 2015
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	8,748	$	776,724	$	785,472
Secured by 1-4 family residential properties		22,342		1,616,297		1,638,639
Secured by nonfarm, nonresidential properties		20,465		1,583,988		1,604,453
Other real estate secured		434		225,089		225,523
Commercial and industrial loans		8,571		1,261,706		1,270,277
Consumer loans		45		169,464		169,509
State and other political subdivision loans		-		677,539		677,539
Other loans		526		419,705		420,231
Total	$	61,131	$	6,730,512	$	6,791,643

	December 31, 2014
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	13,867	$	606,010	$	619,877
Secured by 1-4 family residential properties		25,621		1,608,776		1,634,397
Secured by nonfarm, nonresidential properties		25,717		1,527,476		1,553,193
Other real estate secured		1,318		252,469		253,787
Commercial and industrial loans		12,104		1,258,246		1,270,350
Consumer loans		88		167,876		167,964
State and other political subdivision loans		-		602,727		602,727
Other loans		628		346,546		347,174
Total	$	79,343	$	6,370,126	$	6,449,469

Impaired financing receivables

At September 30, 2015 and December 31, 2014, the carrying amount of LHFI individually evaluated for impairment consisted of the following ($ in thousands):

	September 30, 2015
	LHFI
	Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Total Carrying Amount		Related Allowance		Average Recorded Investment
Loans secured by real estate:
Construction, land development and other land	$	13,708	$	3,054	$	5,694	$	8,748	$	2,054	$	11,307
Secured by 1-4 family residential properties		27,733		1,262		21,080		22,342		267		23,981
Secured by nonfarm, nonresidential properties		23,227		10,340		10,125		20,465		2,602		23,091
Other real estate secured		484		-		434		434		28		876
Commercial and industrial loans		15,529		2,883		5,688		8,571		2,956		10,338
Consumer loans		47		-		45		45		-		66
State and other political subdivision loans		-		-		-		-		-		-
Other loans		655		-		526		526		200		577
Total	$	81,383	$	17,539	$	43,592	$	61,131	$	8,107	$	70,236

	December 31, 2014
	LHFI
	Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Total Carrying Amount		Related Allowance		Average Recorded Investment
Loans secured by real estate:
Construction, land development and other land	$	20,849	$	7,411	$	6,456	$	13,867	$	2,767	$	13,597
Secured by 1-4 family residential properties		31,151		1,650		23,971		25,621		450		23,612
Secured by nonfarm, nonresidential properties		27,969		12,868		12,849		25,717		2,787		23,763
Other real estate secured		1,594		-		1,318		1,318		52		1,322
Commercial and industrial loans		13,916		1,206		10,898		12,104		6,449		9,195
Consumer loans		152		-		88		88		-		120
State and other political subdivision loans		-		-		-		-		-		-
Other loans		734		-		628		628		259		682
Total	$	96,365	$	23,135	$	56,208	$	79,343	$	12,764	$	72,291

Impact of modifications classified as troubled debt restructurings

The following tables illustrate the impact of modifications classified as TDRs as well as those TDRs modified within the last 12 months for which there was a payment default during the period for the periods presented ($ in thousands):

	Three Months Ended September 30,
	2015						2014
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
Loans secured by 1-4 family residential properties		2	$	35	$	35		2	$	191	$	191

	Nine Months Ended September 30,
	2015						2014
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
Loans secured by 1-4 family residential properties		10	$	495	$	495		16	$	1,172	$	1,158
Loans secured by nonfarm, nonresidential properties		4		3,512		3,512		-		-		-
Total		14	$	4,007	$	4,007		16	$	1,172	$	1,158

Troubled debt restructuring subsequently defaulted

	Nine Months Ended September 30,
	2015				2014
TDRs that Subsequently Defaulted	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Loans secured by 1-4 family residential properties		4	$	243		1	$	106

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 at September 30, 2015 and 2014 ($ in thousands):

	September 30, 2015
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	-	$	1,006	$	1,006
Secured by 1-4 family residential properties		1,385		2,921		4,306
Secured by nonfarm, nonresidential properties		819		4,503		5,322
Other real estate secured		-		62		62
Commercial and industrial loans		-		477		477
Total TDRs	$	2,204	$	8,969	$	11,173

	September 30, 2014
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	-	$	4,076	$	4,076
Secured by 1-4 family residential properties		1,373		3,940		5,313
Secured by nonfarm, nonresidential properties		-		1,923		1,923
Other real estate secured		-		156		156
Commercial and industrial loans		-		524		524
Total TDRs	$	1,373	$	10,619	$	11,992

Carrying amount of loans by credit quality indicator

The tables below illustrate the carrying amount of LHFI by credit quality indicator at September 30, 2015 and December 31, 2014 ($ in thousands):

	September 30, 2015
			Commercial LHFI
			Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other land			$	701,003	$	541	$	17,525	$	457	$	719,526
Secured by 1-4 family residential properties				122,664		435		7,761		112		130,972
Secured by nonfarm, nonresidential properties				1,539,997		2,426		60,890		361		1,603,674
Other real estate secured				219,298		200		4,535		-		224,033
Commercial and industrial loans				1,216,819		18,555		34,274		624		1,270,272
Consumer loans				-		-		-		-		-
State and other political subdivision loans				656,126		12,546		8,867		-		677,539
Other loans				412,098		-		921		386		413,405
Total			$	4,868,005	$	34,703	$	134,773	$	1,940	$	5,039,421

	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	$	65,545	$	281	$	1	$	119	$	65,946	$	785,472
Secured by 1-4 family residential properties		1,477,432		7,874		2,961		19,400		1,507,667		1,638,639
Secured by nonfarm, nonresidential properties		779		-		-		-		779		1,604,453
Other real estate secured		1,490		-		-		-		1,490		225,523
Commercial and industrial loans		-		5		-		-		5		1,270,277
Consumer loans		167,516		1,689		260		44		169,509		169,509
State and other political subdivision loans		-		-		-		-		-		677,539
Other loans		6,826		-		-		-		6,826		420,231
Total	$	1,719,588	$	9,849	$	3,222	$	19,563	$	1,752,222	$	6,791,643

	December 31, 2014
			Commercial LHFI
			Pass - Categories 1-6		Special Mention - Category 7		Substandard - Category 8		Doubtful - Category 9		Subtotal
Loans secured by real estate:
Construction, land development and other land			$	518,944	$	479	$	37,022	$	196	$	556,641
Secured by 1-4 family residential properties				125,203		1,652		7,483		213		134,551
Secured by nonfarm, nonresidential properties				1,462,226		8,431		81,661		-		1,552,318
Other real estate secured				246,099		306		4,975		-		251,380
Commercial and industrial loans				1,239,247		4,245		26,133		719		1,270,344
Consumer loans				-		-		-		-		-
State and other political subdivision loans				589,653		7,550		5,524		-		602,727
Other loans				338,598		-		1,255		564		340,417
Total			$	4,519,970	$	22,663	$	164,053	$	1,692	$	4,708,378

	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	$	62,897	$	199	$	59	$	81	$	63,236	$	619,877
Secured by 1-4 family residential properties		1,465,355		10,429		2,367		21,695		1,499,846		1,634,397
Secured by nonfarm, nonresidential properties		875		-		-		-		875		1,553,193
Other real estate secured		2,407		-		-		-		2,407		253,787
Commercial and industrial loans		-		5		1		-		6		1,270,350
Consumer loans		165,504		2,162		211		87		167,964		167,964
State and other political subdivision loans		-		-		-		-		-		602,727
Other loans		6,757		-		-		-		6,757		347,174
Total	$	1,703,795	$	12,795	$	2,638	$	21,863	$	1,741,091	$	6,449,469

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

The following tables provide an aging analysis of past due and nonaccrual LHFI by class at September 30, 2015 and December 31, 2014 ($ in thousands):

	September 30, 2015
	Past Due
	30-59 Days		60-89 Days		90 Days or More (1)		Total		Nonaccrual		Current Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other land	$	393	$	121	$	1	$	515	$	8,748	$	776,209	$	785,472
Secured by 1-4 family residential properties		6,232		2,897		2,961		12,090		22,342		1,604,207		1,638,639
Secured by nonfarm, nonresidential properties		355		76		6,002		6,433		20,465		1,577,555		1,604,453
Other real estate secured		15		-		-		15		434		225,074		225,523
Commercial and industrial loans		856		199		-		1,055		8,571		1,260,651		1,270,277
Consumer loans		1,382		307		260		1,949		45		167,515		169,509
State and other political subdivision loans		-		-		-		-		-		677,539		677,539
Other loans		107		174		-		281		526		419,424		420,231
Total	$	9,340	$	3,774	$	9,224	$	22,338	$	61,131	$	6,708,174	$	6,791,643

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

	December 31, 2014
	Past Due
	30-59 Days		60-89 Days		90 Days or More (1)		Total		Nonaccrual		Current Loans		Total LHFI
Loans secured by real estate:
Construction, land development and other land	$	248	$	17	$	60	$	325	$	13,867	$	605,685	$	619,877
Secured by 1-4 family residential properties		8,424		2,428		2,367		13,219		25,621		1,595,557		1,634,397
Secured by nonfarm, nonresidential properties		1,960		34		-		1,994		25,717		1,525,482		1,553,193
Other real estate secured		80		-		-		80		1,318		252,389		253,787
Commercial and industrial loans		2,491		306		126		2,923		12,104		1,255,323		1,270,350
Consumer loans		1,811		351		211		2,373		88		165,503		167,964
State and other political subdivision loans		-		-		-		-		-		602,727		602,727
Other loans		132		9		-		141		628		346,405		347,174
Total	$	15,146	$	3,145	$	2,764	$	21,055	$	79,343	$	6,349,071	$	6,449,469

(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 for the periods presented ($ in thousands):

	Nine Months Ended September 30,
	2015			2014
Balance at beginning of period	$	69,616		$	66,448
Loans charged-off		(18,688	)		(10,052	)
Recoveries		9,347			11,134
Net (charge-offs) recoveries		(9,341	)		1,082
Provision for loan losses, LHFI		5,332			2,604
Balance at end of period	$	65,607		$	70,134

The following tables detail the balance in the allowance for loan losses, LHFI by portfolio segment at September 30, 2015 and 2014 ($ in thousands):

	2015
	Balance January 1,		Charge-offs			Recoveries		Provision for Loan Losses			Balance September 30,
Loans secured by real estate:
Construction, land development and other land	$	13,073	$	(2,236	)	$	1,274	$	395		$	12,506
Secured by 1-4 family residential properties		9,677		(2,013	)		781		1,529			9,974
Secured by nonfarm, nonresidential properties		18,523		(1,282	)		397		(1,517	)		16,121
Other real estate secured		2,141		(24	)		6		(382	)		1,741
Commercial and industrial loans		19,917		(7,243	)		1,553		5,109			19,336
Consumer loans		2,149		(1,543	)		2,639		(1,166	)		2,079
State and other political subdivision loans		1,314		-			-		(624	)		690
Other loans		2,822		(4,347	)		2,697		1,988			3,160
Total allowance for loan losses, LHFI	$	69,616	$	(18,688	)	$	9,347	$	5,332		$	65,607

	Disaggregated by Impairment Method
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	2,054	$	10,452	$	12,506
Secured by 1-4 family residential properties		267		9,707		9,974
Secured by nonfarm, nonresidential properties		2,602		13,519		16,121
Other real estate secured		28		1,713		1,741
Commercial and industrial loans		2,956		16,380		19,336
Consumer loans		-		2,079		2,079
State and other political subdivision loans		-		690		690
Other loans		200		2,960		3,160
Total allowance for loan losses, LHFI	$	8,107	$	57,500	$	65,607

	2014
	Balance January 1,		Charge-offs			Recoveries		Provision for Loan Losses			Balance September 30,
Loans secured by real estate:
Construction, land development and other land loans	$	13,165	$	(604	)	$	3,413	$	(6,139	)	$	9,835
Secured by 1-4 family residential properties		9,633		(2,306	)		861		1,986			10,174
Secured by nonfarm, nonresidential properties		19,672		(240	)		400		1,099			20,931
Other real estate secured		2,080		(277	)		-		571			2,374
Commercial and industrial loans		15,522		(1,787	)		1,321		4,490			19,546
Consumer loans		2,405		(1,304	)		2,760		(1,631	)		2,230
State and other political subdivision loans		1,205		-			-		736			1,941
Other loans		2,766		(3,534	)		2,379		1,492			3,103
Total allowance for loan losses, LHFI	$	66,448	$	(10,052	)	$	11,134	$	2,604		$	70,134

	Disaggregated by Impairment Method
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land loans	$	2,607	$	7,228	$	9,835
Secured by 1-4 family residential properties		431		9,743		10,174
Secured by nonfarm, nonresidential properties		2,163		18,768		20,931
Other real estate secured		57		2,317		2,374
Commercial and industrial loans		5,203		14,343		19,546
Consumer loans		1		2,229		2,230
State and other political subdivision loans		-		1,941		1,941
Other loans		263		2,840		3,103
Total allowance for loan losses, LHFI	$	10,725	$	59,409	$	70,134