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

3 Months Ended

Mar. 31, 2017

Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract]

At March 31, 2017 and December 31, 2016, LHFI consisted of the following ($ in thousands):

	March 31, 2017		December 31, 2016
Loans secured by real estate:
Construction, land development and other land	$	859,927	$	831,437
Secured by 1-4 family residential properties		1,656,837		1,660,043
Secured by nonfarm, nonresidential properties		2,064,352		2,034,176
Other real estate secured		399,636		318,148
Commercial and industrial loans		1,540,783		1,528,434
Consumer loans		166,314		170,562
State and other political subdivision loans		910,493		917,515
Other loans		406,315		390,898
LHFI (1)		8,004,657		7,851,213
Less allowance for loan losses, LHFI		72,445		71,265
Net LHFI	$	7,932,212	$	7,779,948

(1)

During the first quarter of 2017, Trustmark reclassified $36.7 million of acquired loans not accounted for under Financial Accounting Standards Board (FASB) Accounting Standard Codification (ASC) Topic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” to LHFI due to the discount on these loans being fully amortized.

Nonaccrual LHFI by Loan Type

The following table details nonaccrual LHFI by loan type at March 31, 2017 and December 31, 2016 ($ in thousands):

	March 31, 2017		December 31, 2016
Loans secured by real estate:
Construction, land development and other land	$	2,856	$	3,323
Secured by 1-4 family residential properties		20,537		20,329
Secured by nonfarm, nonresidential properties		11,492		8,482
Other real estate secured		191		402
Commercial and industrial loans		25,410		15,824
Consumer loans		325		300
State and other political subdivision loans		—		—
Other loans		496		574
Total nonaccrual LHFI	$	61,307	$	49,234

Aging Analysis of Past Due Loans and Nonaccrual Loans

The following tables provide an aging analysis of past due and nonaccrual LHFI by loan type at March 31, 2017 and December 31, 2016 ($ in thousands):

	March 31, 2017
	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	$	504	$	35	$	217	$	756	$	2,856	$	856,315	$	859,927
Secured by 1-4 family residential properties		5,738		1,814		612		8,164		20,537		1,628,136		1,656,837
Secured by nonfarm, nonresidential properties		626		214		—		840		11,492		2,052,020		2,064,352
Other real estate secured		61		—		228		289		191		399,156		399,636
Commercial and industrial loans		813		51		12		876		25,410		1,514,497		1,540,783
Consumer loans		1,495		194		238		1,927		325		164,062		166,314
State and other political subdivision loans		—		—		—		—		—		910,493		910,493
Other loans		1		40		—		41		496		405,778		406,315
Total	$	9,238	$	2,348	$	1,307	$	12,893	$	61,307	$	7,930,457	$	8,004,657

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

	December 31, 2016
	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	$	37	$	54	$	339	$	3,323	$	827,775	$	831,437
Secured by 1-4 family residential properties		5,308		2,434		1,436		9,178		20,329		1,630,536		1,660,043
Secured by nonfarm, nonresidential properties		606		100		—		706		8,482		2,024,988		2,034,176
Other real estate secured		179		—		—		179		402		317,567		318,148
Commercial and industrial loans		571		213		—		784		15,824		1,511,826		1,528,434
Consumer loans		1,561		330		341		2,232		300		168,030		170,562
State and other political subdivision loans		1,035		—		—		1,035		—		916,480		917,515
Other loans		178		53		—		231		574		390,093		390,898
Total	$	9,686	$	3,167	$	1,831	$	14,684	$	49,234	$	7,787,295	$	7,851,213

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

Impaired Financing Receivables

At March 31, 2017 and December 31, 2016, individually evaluated impaired LHFI consisted of the following ($ in thousands):

	March 31, 2017
	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	$	4,977	$	1,661	$	336	$	1,997	$	111	$	2,219
Secured by 1-4 family residential properties		6,351		203		4,589		4,792		1,357		4,720
Secured by nonfarm, nonresidential properties		11,512		6,438		2,753		9,191		852		7,705
Other real estate secured		—		—		—		—		—		—
Commercial and industrial loans		23,343		13,130		9,877		23,007		1,562		18,338
Consumer loans		1		—		1		1		—		2
State and other political subdivision loans		—		—		—		—		—		—
Other loans		95		95		—		95		—		95
Total	$	46,279	$	21,527	$	17,556	$	39,083	$	3,882	$	33,079

	December 31, 2016
	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	$	5,691	$	2,260	$	181	$	2,441	$	103	$	2,943
Secured by 1-4 family residential properties		6,134		221		4,428		4,649		960		4,639
Secured by nonfarm, nonresidential properties		8,562		5,784		435		6,219		221		6,703
Other real estate secured		—		—		—		—		—		500
Commercial and industrial loans		14,593		11,461		2,208		13,669		1,976		14,258
Consumer loans		2		—		2		2		—		2
State and other political subdivision loans		—		—		—		—		—		—
Other loans		95		95		—		95		—		95
Total	$	35,077	$	19,821	$	7,254	$	27,075	$	3,260	$	29,140

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 March 31,
	2017						2016
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
Construction, land development and other land loans		1	$	341	$	325		—	$	—	$	—
Loans secured by 1-4 family residential properties		7		334		338		2		71		71
Total		8	$	675	$	663		2	$	71	$	71

Troubled Debt Restructuring Subsequently Defaulted

	Three Months Ended March 31,
	2017				2016
TDRs that Subsequently Defaulted	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Loans secured by 1-4 family residential properties		1	$	—		1	$	17
Commercial and industrial		2		—		—		—
Total		3	$	—		1	$	17

Troubled Debt Restructuring Related to Loans Held for Investment by Loan Type

The following tables detail LHFI classified as TDRs by loan type at March 31, 2017 and 2016 ($ in thousands):

	March 31, 2017
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	642	$	642
Secured by 1-4 family residential properties		—		3,070		3,070
Secured by nonfarm, nonresidential properties		—		841		841
Commercial and industrial loans		—		7,845		7,845
Consumer loans		—		1		1
Total TDRs	$	—	$	12,399	$	12,399

	March 31, 2016
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	845	$	845
Secured by 1-4 family residential properties		1,444		2,086		3,530
Secured by nonfarm, nonresidential properties		799		3,566		4,365
Commercial and industrial loans		—		448		448
Total TDRs	$	2,243	$	6,945	$	9,188

Carrying Amount of Loans by Credit Quality Indicator

The tables below present LHFI by loan type and credit quality indicator at March 31, 2017 and December 31, 2016 ($ in thousands):

	March 31, 2017
		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		$	790,145	$	—	$	6,567	$	463	$	797,175
Secured by 1-4 family residential properties			129,742		219		6,610		210		136,781
Secured by nonfarm, nonresidential properties			2,012,125		9,172		41,597		760		2,063,654
Other real estate secured			388,398		9,938		680		—		399,016
Commercial and industrial loans			1,390,084		18,807		130,806		1,086		1,540,783
Consumer loans			—		—		—		—		—
State and other political subdivision loans			893,139		6,450		10,904		—		910,493
Other loans			399,144		—		2,609		347		402,100
Total		$	6,002,777	$	44,586	$	199,773	$	2,866	$	6,250,002

	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	$	62,185	$	446	$	—	$	121	$	62,752	$	859,927
Secured by 1-4 family residential properties		1,495,639		6,638		612		17,167		1,520,056		1,656,837
Secured by nonfarm, nonresidential properties		698		—		—		—		698		2,064,352
Other real estate secured		620		—		—		—		620		399,636
Commercial and industrial loans		—		—		—		—		—		1,540,783
Consumer loans		164,063		1,689		238		324		166,314		166,314
State and other political subdivision loans		—		—		—		—		—		910,493
Other loans		4,175		40		—		—		4,215		406,315
Total	$	1,727,380	$	8,813	$	850	$	17,612	$	1,754,655	$	8,004,657

	December 31, 2016
		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		$	752,318	$	9,567	$	8,086	$	465	$	770,436
Secured by 1-4 family residential properties			124,615		170		6,162		129		131,076
Secured by nonfarm, nonresidential properties			1,989,554		4,394		38,913		584		2,033,445
Other real estate secured			315,829		762		890		—		317,481
Commercial and industrial loans			1,386,155		7,095		134,199		985		1,528,434
Consumer loans			—		—		—		—		—
State and other political subdivision loans			899,935		6,450		11,130		—		917,515
Other loans			382,890		—		2,685		350		385,925
Total		$	5,851,296	$	28,438	$	202,065	$	2,513	$	6,084,312

	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	$	60,701	$	188	$	54	$	58	$	61,001	$	831,437
Secured by 1-4 family residential properties		1,503,096		7,377		1,436		17,058		1,528,967		1,660,043
Secured by nonfarm, nonresidential properties		731		—		—		—		731		2,034,176
Other real estate secured		667		—		—		—		667		318,148
Commercial and industrial loans		—		—		—		—		—		1,528,434
Consumer loans		168,031		1,891		341		299		170,562		170,562
State and other political subdivision loans		—		—		—		—		—		917,515
Other loans		4,940		33		—		—		4,973		390,898
Total	$	1,738,166	$	9,489	$	1,831	$	17,415	$	1,766,901	$	7,851,213

Change in Allowance for Loan Losses

The following tables detail the balance in the allowance for loan losses, LHFI allocated to each loan type segmented by the impairment evaluation methodology used at March 31, 2017 and December 31, 2016 ($ in thousands):

	March 31, 2017
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	111	$	8,415	$	8,526
Secured by 1-4 family residential properties		1,357		9,430		10,787
Secured by nonfarm, nonresidential properties		852		21,056		21,908
Other real estate secured		—		3,139		3,139
Commercial and industrial loans		1,562		20,089		21,651
Consumer loans		—		3,192		3,192
State and other political subdivision loans		—		848		848
Other loans		—		2,394		2,394
Total allowance for loan losses, LHFI	$	3,882	$	68,563	$	72,445

	December 31, 2016
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land loans	$	103	$	8,982	$	9,085
Secured by 1-4 family residential properties		960		9,387		10,347
Secured by nonfarm, nonresidential properties		221		20,746		20,967
Other real estate secured		—		2,263		2,263
Commercial and industrial loans		1,976		20,035		22,011
Consumer loans		—		3,241		3,241
State and other political subdivision loans		—		859		859
Other loans		—		2,492		2,492
Total allowance for loan losses, LHFI	$	3,260	$	68,005	$	71,265

Changes in the allowance for loan losses, LHFI were as follows for the periods presented ($ in thousands):

	Three Months Ended March 31,
	2017			2016
Balance at beginning of period	$	71,265		$	67,619
Loans charged-off		(4,202	)		(3,363	)
Recoveries		2,620			3,169
Net charge-offs		(1,582	)		(194	)
Provision for loan losses, LHFI		2,762			2,243
Balance at end of period	$	72,445		$	69,668

The following tables detail changes in the allowance for loan losses, LHFI by loan type for the periods ended March 31, 2017 and 2016 ($ in thousands):

	2017
	Balance January 1,		Charge-offs			Recoveries		Provision for Loan Losses			Balance March 31,
Loans secured by real estate:
Construction, land development and other land	$	9,085	$	(58	)	$	303	$	(804	)	$	8,526
Secured by 1-4 family residential properties		10,347		(241	)		152		529			10,787
Secured by nonfarm, nonresidential properties		20,967		—			182		759			21,908
Other real estate secured		2,263		—			20		856			3,139
Commercial and industrial loans		22,011		(1,984	)		488		1,136			21,651
Consumer loans		3,241		(745	)		480		216			3,192
State and other political subdivision loans		859		—			—		(11	)		848
Other loans		2,492		(1,174	)		995		81			2,394
Total allowance for loan losses, LHFI	$	71,265	$	(4,202	)	$	2,620	$	2,762		$	72,445

	2016
	Balance January 1,		Charge-offs			Recoveries		Provision for Loan Losses			Balance March 31,
Loans secured by real estate:
Construction, land development and other land loans	$	11,587	$	—		$	492	$	(1,937	)	$	10,142
Secured by 1-4 family residential properties		10,678		(692	)		457		30			10,473
Secured by nonfarm, nonresidential properties		21,563		(27	)		119		2,052			23,707
Other real estate secured		2,467		—			1		(395	)		2,073
Commercial and industrial loans		15,815		(770	)		123		2,481			17,649
Consumer loans		2,879		(484	)		1,010		(601	)		2,804
State and other political subdivision loans		809		—			—		7			816
Other loans		1,821		(1,390	)		967		606			2,004
Total allowance for loan losses, LHFI	$	67,619	$	(3,363	)	$	3,169	$	2,243		$	69,668

Summary Of LHFI Evaluated For Impairment

The following tables detail LHFI by loan type related to each balance in the allowance for loan losses, LHFI segregated by the impairment evaluation methodology used at March 31, 2017 and December 31, 2016 ($ in thousands):

	March 31, 2017
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,997	$	857,930	$	859,927
Secured by 1-4 family residential properties		4,792		1,652,045		1,656,837
Secured by nonfarm, nonresidential properties		9,191		2,055,161		2,064,352
Other real estate secured		—		399,636		399,636
Commercial and industrial loans		23,007		1,517,776		1,540,783
Consumer loans		1		166,313		166,314
State and other political subdivision loans		—		910,493		910,493
Other loans		95		406,220		406,315
Total	$	39,083	$	7,965,574	$	8,004,657

	December 31, 2016
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	2,441	$	828,996	$	831,437
Secured by 1-4 family residential properties		4,649		1,655,394		1,660,043
Secured by nonfarm, nonresidential properties		6,219		2,027,957		2,034,176
Other real estate secured		—		318,148		318,148
Commercial and industrial loans		13,669		1,514,765		1,528,434
Consumer loans		2		170,560		170,562
State and other political subdivision loans		—		917,515		917,515
Other loans		95		390,803		390,898
Total	$	27,075	$	7,824,138	$	7,851,213