Acquired Loans (Tables)

3 Months Ended

Mar. 31, 2016

Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract]

Schedule of Covered and Noncovered Acquired Loans by Type

At March 31, 2016 and December 31, 2015, acquired loans consisted of the following ($ in thousands):

	March 31, 2016				December 31, 2015
	Noncovered		Covered		Noncovered		Covered
Loans secured by real estate:
Construction, land development and other land	$	41,097	$	387	$	41,623	$	1,021
Secured by 1-4 family residential properties		81,314		8,564		86,950		10,058
Secured by nonfarm, nonresidential properties		126,177		3,679		135,626		4,638
Other real estate secured		24,374		1,132		23,860		1,286
Commercial and industrial loans		51,663		1,143		55,075		624
Consumer loans		5,027		—		5,641		—
Other loans		20,129		69		23,936		73
Acquired loans		349,781		14,974		372,711		17,700
Less allowance for loan losses, acquired loans		13,212		323		11,259		733
Net acquired loans	$	336,569	$	14,651	$	361,452	$	16,967

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, 2015	$	434,151		$	81,091		$	20,504		$	1,604
Accretion to interest income		28,193			479			2,308			—
Payments received, net		(164,671	)		(15,484	)		(8,592	)		(33	)
Other (2)		(1,589	)		—			391			—
Less change in allowance for loan losses, acquired loans		(718	)		—			785			—
Carrying value, net at December 31, 2015		295,366			66,086			15,396			1,571
Accretion to interest income		4,821			2			409			1
Payments received, net		(22,169	)		(5,700	)		(2,683	)		(60	)
Other (2)		116			—			(393	)		—
Less change in allowance for loan losses, acquired loans		(1,952	)		(1	)		410			—
Carrying value, net at March 31, 2016	$	276,182		$	60,387		$	13,139		$	1,512

(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 miscellaneous timing adjustments as well as acquired loan terminations through foreclosure, charge-off 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,
	2016			2015
Accretable yield at beginning of period	$	(52,672	)	$	(77,149	)
Accretion to interest income		5,230			10,197
Disposals		1,067			3,103
Reclassification to / (from) nonaccretable difference (1)		(3,403	)		(6,179	)
Accretable yield at end of period	$	(49,778	)	$	(70,028	)

(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 periods presented ($ in thousands):

	Noncovered			Covered			Total
Balance at January 1, 2016	$	11,259		$	733		$	11,992
Provision for loan losses, acquired loans		1,631			(322	)		1,309
Loans charged-off		(332	)		(65	)		(397	)
Recoveries		654			(23	)		631
Net recoveries (charge-offs)		322			(88	)		234
Balance at March 31, 2016	$	13,212		$	323		$	13,535

	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

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, 2016 and December 31, 2015 ($ in thousands):

	March 31, 2016
		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		$	16,624	$	241	$	18,369	$	3,621	$	38,855
Secured by 1-4 family    residential properties			20,951		25		4,860		322		26,158
Secured by nonfarm,    nonresidential properties			100,962		1,224		23,294		697		126,177
Other real estate secured			19,479		—		4,179		711		24,369
Commercial and industrial loans			35,523		841		13,657		1,642		51,663
Consumer loans			—		—		—		—		—
Other loans			13,635		—		6,333		161		20,129
Total noncovered loans			207,174		2,331		70,692		7,154		287,351
Covered Loans: (1)
Loans secured by real estate:
Construction, land development    and other land			302		—		8		—		310
Secured by 1-4 family    residential properties			723		100		381		162		1,366
Secured by nonfarm,    nonresidential properties			3,476		8		133		—		3,617
Other real estate secured			—		—		110		—		110
Commercial and industrial loans			1,107		21		15		—		1,143
Other loans			65		—		—		—		65
Total covered loans			5,673		129		647		162		6,611
Total acquired loans		$	212,847	$	2,460	$	71,339	$	7,316	$	293,962

	Consumer Loans
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual (2)		Subtotal		Total Acquired Loans
Noncovered Loans:
Loans secured by real estate:
Construction, land development    and other land	$	2,161	$	81	$	—	$	—	$	2,242	$	41,097
Secured by 1-4 family    residential properties		52,461		1,900		654		141		55,156		81,314
Secured by nonfarm,    nonresidential properties		—		—		—		—		—		126,177
Other real estate secured		5		—		—		—		5		24,374
Commercial and industrial loans		—		—		—		—		—		51,663
Consumer loans		4,985		42		—		—		5,027		5,027
Other loans		—		—		—		—		—		20,129
Total noncovered loans		59,612		2,023		654		141		62,430		349,781
Covered Loans: (1)
Loans secured by real estate:
Construction, land development    and other land		69		8		—		—		77		387
Secured by 1-4 family    residential properties		6,567		217		414		—		7,198		8,564
Secured by nonfarm,    nonresidential properties		62		—		—		—		62		3,679
Other real estate secured		1,022		—		—		—		1,022		1,132
Commercial and industrial loans		—		—		—		—		—		1,143
Other loans		4		—		—		—		4		69
Total covered loans		7,724		225		414		—		8,363		14,974
Total acquired loans	$	67,336	$	2,248	$	1,068	$	141	$	70,793	$	364,755

(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.

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

	December 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		$	15,839	$	253	$	19,252	$	3,874	$	39,218
Secured by 1-4 family    residential properties			22,272		27		5,033		331		27,663
Secured by nonfarm,    nonresidential properties			106,924		2,301		25,690		711		135,626
Other real estate secured			19,346		—		3,777		731		23,854
Commercial and industrial loans			36,670		844		15,526		2,035		55,075
Consumer loans			—		—		—		—		—
Other loans			17,150		—		6,624		162		23,936
Total noncovered loans			218,201		3,425		75,902		7,844		305,372
Covered Loans: (1)
Loans secured by real estate:
Construction, land development    and other land			235		—		588		119		942
Secured by 1-4 family    residential properties			869		107		534		—		1,510
Secured by nonfarm,    nonresidential properties			4,060		35		472		—		4,567
Other real estate secured			730		—		111		—		841
Commercial and industrial loans			560		22		42		—		624
Other loans			70		—		—		—		70
Total covered loans			6,524		164		1,747		119		8,554
Total acquired loans		$	224,725	$	3,589	$	77,649	$	7,963	$	313,926

	Consumer Loans
	Current		Past Due 30-89 Days		Past Due 90 Days or More		Nonaccrual (2)		Subtotal		Total Acquired Loans
Noncovered Loans:
Loans secured by real estate:
Construction, land development    and other land	$	2,353	$	24	$	28	$	—	$	2,405	$	41,623
Secured by 1-4 family    residential properties		56,371		1,841		930		145		59,287		86,950
Secured by nonfarm,    nonresidential properties		—		—		—		—		—		135,626
Other real estate secured		6		—		—		—		6		23,860
Commercial and industrial loans		—		—		—		—		—		55,075
Consumer loans		5,498		142		1		—		5,641		5,641
Other loans		—		—		—		—		—		23,936
Total noncovered loans		64,228		2,007		959		145		67,339		372,711
Covered Loans: (1)
Loans secured by real estate:
Construction, land development    and other land		70		9		—		—		79		1,021
Secured by 1-4 family    residential properties		7,472		314		762		—		8,548		10,058
Secured by nonfarm,    nonresidential properties		71		—		—		—		71		4,638
Other real estate secured		445		—		—		—		445		1,286
Commercial and industrial loans		—		—		—		—		—		624
Other loans		3		—		—		—		3		73
Total covered loans		8,061		323		762		—		9,146		17,700
Total acquired loans	$	72,289	$	2,330	$	1,721	$	145	$	76,485	$	390,411

(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.

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

Aging Analysis of Past Due and Nonaccrual Acquired Loans, by Class

The following tables provide an aging analysis of contractually past due and nonaccrual acquired loans, by loan type at March 31, 2016 and December 31, 2015 ($ in thousands):

	March 31, 2016
	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	$	411	$	—	$	13,001	$	13,412	$	—	$	27,685	$	41,097
Secured by 1-4 family residential    properties		1,842		315		828		2,985		381		77,948		81,314
Secured by nonfarm, nonresidential    properties		898		192		4,325		5,415		138		120,624		126,177
Other real estate secured		21		—		745		766		—		23,608		24,374
Commercial and industrial loans		476		2		184		662		307		50,694		51,663
Consumer loans		42		—		—		42		—		4,985		5,027
Other loans		—		—		—		—		—		20,129		20,129
Total noncovered loans		3,690		509		19,083		23,282		826		325,673		349,781
Covered loans:
Loans secured by real estate:
Construction, land development    and other land		8		—		—		8		—		379		387
Secured by 1-4 family residential    properties		226		25		767		1,018		—		7,546		8,564
Secured by nonfarm, nonresidential    properties		33		169		—		202		—		3,477		3,679
Other real estate secured		—		—		—		—		—		1,132		1,132
Commercial and industrial loans		—		—		—		—		49		1,094		1,143
Other loans		—		—		—		—		—		69		69
Total covered loans		267		194		767		1,228		49		13,697		14,974
Total acquired loans	$	3,957	$	703	$	19,850	$	24,510	$	875	$	339,370	$	364,755

(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, 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	$	24	$	114	$	13,021	$	13,159	$	—	$	28,464	$	41,623
Secured by 1-4 family residential    properties		1,544		636		1,220		3,400		387		83,163		86,950
Secured by nonfarm, nonresidential    properties		192		195		5,913		6,300		144		129,182		135,626
Other real estate secured		9		—		737		746		—		23,114		23,860
Commercial and industrial loans		82		4		184		270		429		54,376		55,075
Consumer loans		119		23		1		143		—		5,498		5,641
Other loans		85		16		—		101		—		23,835		23,936
Total noncovered loans		2,055		988		21,076		24,119		960		347,632		372,711
Covered loans:
Loans secured by real estate:
Construction, land development and    other land		9		—		119		128		—		893		1,021
Secured by 1-4 family residential    properties		428		132		978		1,538		—		8,520		10,058
Secured by nonfarm, nonresidential    properties		167		478		—		645		—		3,993		4,638
Other real estate secured		—		—		—		—		—		1,286		1,286
Commercial and industrial loans		—		—		—		—		51		573		624
Other loans		—		—		—		—		—		73		73
Total covered loans		604		610		1,097		2,311		51		15,338		17,700
Total acquired loans	$	2,659	$	1,598	$	22,173	$	26,430	$	1,011	$	362,970	$	390,411

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

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