Acquired Loans (Tables)

12 Months Ended

Dec. 31, 2016

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

Schedule of Covered and Noncovered Acquired Loans by Type

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

	December 31, 2016				December 31, 2015
	Noncovered		Covered (1)		Noncovered		Covered
Loans secured by real estate:
Construction, land development and other land	$	20,850	$	—	$	41,623	$	1,021
Secured by 1-4 family residential properties		65,926		3,614		86,950		10,058
Secured by nonfarm, nonresidential properties		103,820		—		135,626		4,638
Other real estate secured		19,010		—		23,860		1,286
Commercial and industrial loans		36,896		—		55,075		624
Consumer loans		3,365		—		5,641		—
Other loans		18,766		—		23,936		73
Acquired loans		268,633		3,614		372,711		17,700
Less allowance for loan losses, acquired loans		11,312		85		11,259		733
Net acquired loans	$	257,321	$	3,529	$	361,452	$	16,967

(1)

Trustmark’s loss share agreement with the FDIC covering the acquired covered loans other than loans secured by 1-4 family residential property expired on June 30, 2016. Trustmark’s loss share agreement with the FDIC covering the acquired covered loans secured by 1-4 family residential property will expire in 2021. Effective July 1, 2016, all acquired covered loans, excluding the acquired covered loans secured by 1-4 family residential property, were reclassified to acquired noncovered loans.

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			Acquired			Acquired			Acquired
	Impaired			Not ASC 310-30 (1)			Impaired			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
Transfers (3)		9,157			446			(9,157	)		(446	)
Accretion to interest income		17,475			40			930			—
Payments received, net		(107,013	)		(24,490	)		(4,509	)		(463	)
Other (2)		307			—			(441	)		—
Less change in allowance for loan losses, acquired loans		(506	)		453			1,102			(454	)
Carrying value, net at December 31, 2016	$	214,786		$	42,535		$	3,321		$	208

(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.

(2)	Includes miscellaneous timing adjustments as well as acquired loan terminations through foreclosure, charge-off and other terminations.

(3)	Acquired covered loans transferred to acquired noncovered loans as a result of the expiration of the related loss share agreement with the FDIC on June 30, 2016.

Changes in Accretable Yield of Acquired Loans

The following table presents changes in the accretable yield for the periods presented ($ in thousands):

	Years Ended December 31,
	2016			2015
Accretable yield at beginning of period	$	(52,672	)	$	(77,149	)
Accretion to interest income		18,405			30,501
Disposals		6,488			10,013
Reclassification from nonaccretable difference (1)		(11,139	)		(16,037	)
Accretable yield at end of period	$	(38,918	)	$	(52,672	)

(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 impaired loans for the periods presented ($ in thousands):

	Noncovered			Covered			Total
Balance at January 1, 2016	$	11,259		$	733		$	11,992
Transfers (1)		215			(215	)		—
Provision for loan losses, acquired loans		4,084			(327	)		3,757
Loans charged-off		(6,534	)		(82	)		(6,616	)
Recoveries		2,288			(24	)		2,264
Net charge-offs		(4,246	)		(106	)		(4,352	)
Balance at December 31, 2016	$	11,312		$	85		$	11,397

	Noncovered			Covered			Total
Balance at January 1, 2015	$	10,541		$	1,518		$	12,059
Provision for loan losses, acquired loans		3,854			(429	)		3,425
Loans charged-off		(6,722	)		(478	)		(7,200	)
Recoveries		3,586			122			3,708
Net charge-offs		(3,136	)		(356	)		(3,492	)
Balance at December 31, 2015	$	11,259		$	733		$	11,992

	Noncovered			Covered			Total
Balance at January 1, 2014	$	7,249		$	2,387		$	9,636
Provision for loan losses, acquired loans		7,149			(978	)		6,171
Loans charged-off		(6,274	)		127			(6,147	)
Recoveries		2,417			(18	)		2,399
Net (charge-offs) recoveries		(3,857	)		109			(3,748	)
Balance at December 31, 2014	$	10,541		$	1,518		$	12,059

(1)

The allowance for loan losses on acquired covered loans, excluding the acquired covered loans secured by 1-4 family residential property, transferred to the allowance for loan losses on acquired noncovered loans as a result of the expiration of the related loss share agreement with the FDIC on June 30, 2016.

Carrying Amount of Acquired Loans by Credit Quality Indicator

The tables below illustrate the carrying amount of acquired loans by credit quality indicator at December 31, 2016 and 2015 ($ in thousands):

	December 31, 2016
	Commercial Loans
	Pass -		Special Mention -		Substandard -		Doubtful -
	Categories 1-6		Category 7		Category 8		Category 9		Subtotal
Noncovered Loans:
Loans secured by real estate:
Construction, land development and other land	$	12,148	$	99	$	6,469	$	322	$	19,038
Secured by 1-4 family residential properties		14,400		50		4,010		69		18,529
Secured by nonfarm, nonresidential properties		83,271		435		19,553		511		103,770
Other real estate secured		15,344		—		2,673		565		18,582
Commercial and industrial loans		22,024		18		13,494		1,354		36,890
Consumer loans		—		—		—		—		—
Other loans		12,954		—		5,649		161		18,764
Total noncovered loans		160,141		602		51,848		2,982		215,573

Covered Loans: (1)
Loans secured by real estate:
Construction, land development and other land		—		—		—		—		—
Secured by 1-4 family residential properties		152		11		56		—		219
Secured by nonfarm, nonresidential properties		—		—		—		—		—
Other real estate secured		—		—		—		—		—
Commercial and industrial loans		—		—		—		—		—
Other loans		—		—		—		—		—
Total covered loans		152		11		56		—		219
Total acquired loans	$	160,293	$	613	$	51,904	$	2,982	$	215,792

	Consumer Loans
			Past Due		Past Due						Total
	Current		30-89 Days		90 Days or More		Nonaccrual (2)		Subtotal		Acquired Loans
Noncovered Loans:
Loans secured by real estate:
Construction, land development and other land	$	1,801	$	—	$	11	$	—	$	1,812	$	20,850
Secured by 1-4 family residential properties		45,533		1,227		613		24		47,397		65,926
Secured by nonfarm, nonresidential properties		50		—		—		—		50		103,820
Other real estate secured		428		—		—		—		428		19,010
Commercial and industrial loans		6		—		—		—		6		36,896
Consumer loans		3,250		51		64		—		3,365		3,365
Other loans		2		—		—		—		2		18,766
Total noncovered loans		51,070		1,278		688		24		53,060		268,633

Covered Loans: (1)
Loans secured by real estate:
Construction, land development and other land		—		—		—		—		—		—
Secured by 1-4 family residential properties		3,162		137		96		—		3,395		3,614
Secured by nonfarm, nonresidential properties		—		—		—		—		—		—
Other real estate secured		—		—		—		—		—		—
Commercial and industrial loans		—		—		—		—		—		—
Other loans		—		—		—		—		—		—
Total covered loans		3,162		137		96		—		3,395		3,614
Total acquired loans	$	54,232	$	1,415	$	784	$	24	$	56,455	$	272,247

(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 -		Special Mention -		Substandard -		Doubtful -
	Categories 1-6		Category 7		Category 8		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
			Past Due		Past Due						Total
	Current		30-89 Days		90 Days or More		Nonaccrual (2)		Subtotal		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 December 31, 2016 and 2015 ($ in thousands):

	December 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	$	321	$	100	$	821	$	1,242	$	—	$	19,608	$	20,850
Secured by 1-4 family residential properties		1,425		322		918		2,665		41		63,220		65,926
Secured by nonfarm, nonresidential properties		1,658		38		343		2,039		328		101,453		103,820
Other real estate secured		769		—		1,445		2,214		—		16,796		19,010
Commercial and industrial loans		60		39		—		99		262		36,535		36,896
Consumer loans		51		—		64		115		—		3,250		3,365
Other loans		—		—		—		—		—		18,766		18,766
Total noncovered loans		4,284		499		3,591		8,374		631		259,628		268,633

Covered loans:
Loans secured by real estate:
Construction, land development and other land		—		—		—		—		—		—		—
Secured by 1-4 family residential properties		70		90		139		299		—		3,315		3,614
Secured by nonfarm, nonresidential properties		—		—		—		—		—		—		—
Other real estate secured		—		—		—		—		—		—		—
Commercial and industrial loans		—		—		—		—		—		—		—
Other loans		—		—		—		—		—		—		—
Total covered loans		70		90		139		299		—		3,315		3,614
Total acquired loans	$	4,354	$	589	$	3,730	$	8,673	$	631	$	262,943	$	272,247

(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.