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

6 Months Ended

Jun. 30, 2017

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

At June 30, 2017 and December 31, 2016, LHFI consisted of the following ($ in thousands):

	June 30, 2017			December 31, 2016
Loans secured by real estate:
Construction, land development and other land	$	922,029		$	831,437
Secured by 1-4 family residential properties		1,655,968			1,660,043
Secured by nonfarm, nonresidential properties		2,109,367			2,034,176
Other real estate secured		432,208			318,148
Commercial and industrial loans		1,635,000			1,528,434
Consumer loans		170,858			170,562
State and other political subdivision loans		936,860			917,515
Other loans		433,755			390,898
LHFI (1)		8,296,045			7,851,213
Allowance for loan losses, LHFI		(76,184	)		(71,265	)
Net LHFI	$	8,219,861		$	7,779,948

(1)	During the first quarter of 2017, Trustmark reclassified $36.7 million of acquired loans not accounted for under FASB ASC Topic 310-30 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 June 30, 2017 and December 31, 2016 ($ in thousands):

	June 30, 2017		December 31, 2016
Loans secured by real estate:
Construction, land development and other land	$	2,746	$	3,323
Secured by 1-4 family residential properties		19,079		20,329
Secured by nonfarm, nonresidential properties		20,661		8,482
Other real estate secured		185		402
Commercial and industrial loans		26,086		15,824
Consumer loans		491		300
State and other political subdivision loans		—		—
Other loans		4,896		574
Total nonaccrual LHFI	$	74,144	$	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 June 30, 2017 and December 31, 2016 ($ in thousands):

	June 30, 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	$	389	$	36	$	14	$	439	$	2,746	$	918,844	$	922,029
Secured by 1-4 family residential properties		5,883		2,351		920		9,154		19,079		1,627,735		1,655,968
Secured by nonfarm, nonresidential properties		789		—		3		792		20,661		2,087,914		2,109,367
Other real estate secured		39		—		—		39		185		431,984		432,208
Commercial and industrial loans		1,071		63		10		1,144		26,086		1,607,770		1,635,000
Consumer loans		1,779		314		269		2,362		491		168,005		170,858
State and other political subdivision loans		—		—		—		—		—		936,860		936,860
Other loans		117		30		—		147		4,896		428,712		433,755
Total	$	10,067	$	2,794	$	1,216	$	14,077	$	74,144	$	8,207,824	$	8,296,045

(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 June 30, 2017 and December 31, 2016, individually evaluated impaired LHFI consisted of the following ($ in thousands):

	June 30, 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	$	4,930	$	1,645	$	335	$	1,980	$	112	$	2,210
Secured by 1-4 family residential properties		6,646		188		5,072		5,260		1,320		4,955
Secured by nonfarm, nonresidential properties		20,263		7,917		9,967		17,884		3,085		12,052
Other real estate secured		—		—		—		—		—		—
Commercial and industrial loans		24,273		11,293		12,444		23,737		1,652		18,703
Consumer loans		1		—		1		1		—		1
State and other political subdivision loans		—		—		—		—		—		—
Other loans		4,523		95		4,428		4,523		—		2,309
Total	$	60,636	$	21,138	$	32,247	$	53,385	$	6,169	$	40,230

	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	$	2,213	$	228	$	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		11,222		2,447		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	$	19,440	$	7,635	$	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 June 30,
	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	$	14	$	14
Loans secured by 1-4 family residential properties		9		834		839		6		669		669
Commercial and industrial loans		1		244		244		—		—		—
Consumer loans		—		—		—		1		2		2
Total		10	$	1,078	$	1,083		8	$	685	$	685

	Six Months Ended June 30,
	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		1	$	14	$	14
Loans secured by 1-4 family residential properties		16		1,168		1,177		8		740		740
Commercial and industrial loans		1		244		244		—		—		—
Consumer loans		—		—		—		1		2		2
Total		18	$	1,753	$	1,746		10	$	756	$	756

Troubled Debt Restructuring Subsequently Defaulted

	Six Months Ended June 30,
	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	$	16
Commercial and industrial		2		—		—		—
Total		2	$	—		1	$	16

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

The following tables detail LHFI classified as TDRs by loan type at June 30, 2017 and 2016 ($ in thousands):

	June 30, 2017
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	641	$	641
Secured by 1-4 family residential properties		—		3,589		3,589
Secured by nonfarm, nonresidential properties		—		802		802
Commercial and industrial loans		—		8,207		8,207
Consumer loans		—		1		1
Total TDRs	$	—	$	13,240	$	13,240

	June 30, 2016
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	577	$	577
Secured by 1-4 family residential properties		—		3,187		3,187
Secured by nonfarm, nonresidential properties		—		3,501		3,501
Commercial and industrial loans		—		437		437
Consumer loans		—		2		2
Total TDRs	$	—	$	7,704	$	7,704

Carrying Amount of Loans by Credit Quality Indicator

The tables below present LHFI by loan type and credit quality indicator at June 30, 2017 and December 31, 2016 ($ in thousands):

	June 30, 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		$	851,746	$	116	$	7,947	$	391	$	860,200
Secured by 1-4 family residential properties			128,171		149		5,937		202		134,459
Secured by nonfarm, nonresidential properties			2,048,696		791		58,723		743		2,108,953
Other real estate secured			421,084		9,964		669		—		431,717
Commercial and industrial loans			1,483,083		13,110		137,930		877		1,635,000
Consumer loans			—		—		—		—		—
State and other political subdivision loans			920,300		5,850		10,710		—		936,860
Other loans			407,888		—		21,200		326		429,414
Total		$	6,260,968	$	29,980	$	243,116	$	2,539	$	6,536,603

	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	$	61,372	$	333	$	14	$	110	$	61,829	$	922,029
Secured by 1-4 family residential properties		1,496,922		7,929		920		15,738		1,521,509		1,655,968
Secured by nonfarm, nonresidential properties		414		—		—		—		414		2,109,367
Other real estate secured		491		—		—		—		491		432,208
Commercial and industrial loans		—		—		—		—		—		1,635,000
Consumer loans		168,005		2,093		269		491		170,858		170,858
State and other political subdivision loans		—		—		—		—		—		936,860
Other loans		4,297		44		—		—		4,341		433,755
Total	$	1,731,501	$	10,399	$	1,203	$	16,339	$	1,759,442	$	8,296,045

	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 June 30, 2017 and December 31, 2016 ($ in thousands):

	June 30, 2017
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	112	$	8,612	$	8,724
Secured by 1-4 family residential properties		1,320		9,174		10,494
Secured by nonfarm, nonresidential properties		3,085		21,565		24,650
Other real estate secured		—		3,194		3,194
Commercial and industrial loans		1,652		20,228		21,880
Consumer loans		—		3,314		3,314
State and other political subdivision loans		—		759		759
Other loans		—		3,169		3,169
Total allowance for loan losses, LHFI	$	6,169	$	70,015	$	76,184

	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 June 30,						Six Months Ended June 30,
	2017			2016			2017			2016
Balance at beginning of period	$	72,445		$	69,668		$	71,265		$	67,619
Loans charged-off		(2,118	)		(3,251	)		(6,320	)		(6,614	)
Recoveries		2,936			2,783			5,556			5,952
Net recoveries (charge-offs)		818			(468	)		(764	)		(662	)
Provision for loan losses, LHFI		2,921			2,596			5,683			4,839
Balance at end of period	$	76,184		$	71,796		$	76,184		$	71,796

The following tables detail changes in the allowance for loan losses, LHFI by loan type for the periods ended June 30, 2017 and 2016 ($ in thousands):

	2017
	Balance January 1,		Charge-offs			Recoveries		Provision for Loan Losses			Balance June 30,
Loans secured by real estate:
Construction, land development and other land	$	9,085	$	(58	)	$	753	$	(1,056	)	$	8,724
Secured by 1-4 family residential properties		10,347		(343	)		904		(414	)		10,494
Secured by nonfarm, nonresidential properties		20,967		(20	)		236		3,467			24,650
Other real estate secured		2,263		—			26		905			3,194
Commercial and industrial loans		22,011		(2,186	)		869		1,186			21,880
Consumer loans		3,241		(1,318	)		978		413			3,314
State and other political subdivision loans		859		—			—		(100	)		759
Other loans		2,492		(2,395	)		1,790		1,282			3,169
Total allowance for loan losses, LHFI	$	71,265	$	(6,320	)	$	5,556	$	5,683		$	76,184

	2016
	Balance January 1,		Charge-offs			Recoveries		Provision for Loan Losses			Balance June 30,
Loans secured by real estate:
Construction, land development and other land loans	$	11,587	$	(212	)	$	657	$	(1,314	)	$	10,718
Secured by 1-4 family residential properties		10,678		(970	)		566		(459	)		9,815
Secured by nonfarm, nonresidential properties		21,563		(105	)		802		2,090			24,350
Other real estate secured		2,467		—			3		284			2,754
Commercial and industrial loans		15,815		(1,810	)		318		3,628			17,951
Consumer loans		2,879		(889	)		1,822		(780	)		3,032
State and other political subdivision loans		809		—			—		104			913
Other loans		1,821		(2,628	)		1,784		1,286			2,263
Total allowance for loan losses, LHFI	$	67,619	$	(6,614	)	$	5,952	$	4,839		$	71,796

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 June 30, 2017 and December 31, 2016 ($ in thousands):

	June 30, 2017
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,980	$	920,049	$	922,029
Secured by 1-4 family residential properties		5,260		1,650,708		1,655,968
Secured by nonfarm, nonresidential properties		17,884		2,091,483		2,109,367
Other real estate secured		—		432,208		432,208
Commercial and industrial loans		23,737		1,611,263		1,635,000
Consumer loans		1		170,857		170,858
State and other political subdivision loans		—		936,860		936,860
Other loans		4,523		429,232		433,755
Total	$	53,385	$	8,242,660	$	8,296,045

	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