XML 52 R35.htm IDEA: XBRL DOCUMENT v3.8.0.1
Acquired Loans (Tables)
 12 Months Ended
Dec. 31, 2017
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract]  
Schedule of Acquired Loans

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

 

 

December 31,

 

 

 

2017

 

 

2016

 

Loans secured by real estate:

 

 

 

 

 

 

 

 

Construction, land development and other land

 

$

23,586

 

 

$

20,850

 

Secured by 1-4 family residential properties

 

 

61,751

 

 

 

69,540

 

Secured by nonfarm, nonresidential properties

 

 

114,694

 

 

 

103,820

 

Other real estate secured

 

 

16,746

 

 

 

19,010

 

Commercial and industrial loans

 

 

31,506

 

 

 

36,896

 

Consumer loans

 

 

2,600

 

 

 

3,365

 

Other loans

 

 

10,634

 

 

 

18,766

 

Acquired loans

 

 

261,517

 

 

 

272,247

 

Less allowance for loan losses, acquired loans

 

 

4,079

 

 

 

11,397

 

Net acquired loans

 

$

257,438

 

 

$

260,850

 

 
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):

 

 

 

Acquired

 

 

Acquired

 

 

 

Impaired

 

 

Not ASC 310-30 (1)

 

Carrying value, net at January 1, 2016

 

$

310,762

 

 

$

67,657

 

Accretion to interest income

 

 

18,405

 

 

 

40

 

Payments received, net

 

 

(111,522

)

 

 

(24,953

)

Other (2)

 

 

(134

)

 

 

—

 

Change in allowance for loan losses, acquired loans

 

 

596

 

 

 

(1

)

Carrying value, net at December 31, 2016

 

 

218,107

 

 

 

42,743

 

Transfers (3)

 

 

—

 

 

 

(36,719

)

Additions (4)

 

 

7,899

 

 

 

109,548

 

Accretion to interest income

 

 

14,924

 

 

 

1,578

 

Payments received, net

 

 

(68,317

)

 

 

(39,208

)

Other (2)

 

 

(361

)

 

 

(74

)

Change in allowance for loan losses, acquired loans

 

 

7,318

 

 

 

—

 

Carrying value, net at December 31, 2017

 

$

179,570

 

 

$

77,868

 

 

(1)

“Acquired Not ASC 310-30” loans consist of loans 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 Not ASC 310-20” loans transferred to LHFI due to the discount on these loans being fully amortized.

(4)

Loans acquired in the Reliance merger on April 7, 2017.
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,

 

 

 

2017

 

 

2016

 

 

2015

 

Accretable yield at beginning of period

 

$

(38,918

)

 

$

(52,672

)

 

$

(77,149

)

Additions due to acquisition (1)

 

 

(784

)

 

 

—

 

 

 

—

 

Accretion to interest income

 

 

14,924

 

 

 

18,405

 

 

 

30,501

 

Disposals

 

 

2,868

 

 

 

6,488

 

 

 

10,013

 

Reclassification from nonaccretable difference (2)

 

 

(9,516

)

 

 

(11,139

)

 

 

(16,037

)

Accretable yield at end of period

 

$

(31,426

)

 

$

(38,918

)

 

$

(52,672

)

 

(1)

Accretable yield on loans acquired from Reliance on April 7, 2017.

(2)

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):

 

 

Years Ended December 31,

 

 

 

2017

 

 

2016

 

 

2015

 

Balance at beginning of period

 

$

11,397

 

 

$

11,992

 

 

$

12,059

 

Provision for loan losses, acquired loans

 

 

(7,395

)

 

 

3,757

 

 

 

3,425

 

Loans charged-off

 

 

—

 

 

 

(6,616

)

 

 

(7,200

)

Recoveries

 

 

77

 

 

 

2,264

 

 

 

3,708

 

Net (charge-offs) recoveries

 

 

77

 

 

 

(4,352

)

 

 

(3,492

)

Balance at end of period

 

$

4,079

 

 

$

11,397

 

 

$

11,992

 

 
Acquired Loans by Loan Type and Credit Quality Indicator

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

 

 

 

December 31, 2017

 

 

 

 

 

Commercial Loans

 

 

 

 

 

Pass -

 

 

Special Mention -

 

 

Substandard -

 

 

Doubtful -

 

 

 

 

 

 

 

 

 

Categories 1-6

 

 

Category 7

 

 

Category 8

 

 

Category 9

 

 

Subtotal

 

Loans secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land development and other land

 

 

 

$

17,150

 

 

$

234

 

 

$

4,690

 

 

$

264

 

 

$

22,338

 

Secured by 1-4 family residential properties

 

 

 

 

14,021

 

 

 

298

 

 

 

3,029

 

 

 

—

 

 

 

17,348

 

Secured by nonfarm, nonresidential properties

 

 

 

 

95,147

 

 

 

1,400

 

 

 

17,583

 

 

 

530

 

 

 

114,660

 

Other real estate secured

 

 

 

 

12,730

 

 

 

102

 

 

 

3,031

 

 

 

477

 

 

 

16,340

 

Commercial and industrial loans

 

 

 

 

22,157

 

 

 

15

 

 

 

7,585

 

 

 

1,749

 

 

 

31,506

 

Consumer loans

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other loans

 

 

 

 

5,874

 

 

 

18

 

 

 

4,742

 

 

 

—

 

 

 

10,634

 

Total acquired loans

 

 

 

$

167,079

 

 

$

2,067

 

 

$

40,660

 

 

$

3,020

 

 

$

212,826

 

 

 

 

Consumer Loans

 

 

 

 

 

 

 

 

 

 

 

Past Due

 

 

Past Due

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

Current

 

 

30-89 Days

 

 

90 Days or More

 

 

Nonaccrual (1)

 

 

Subtotal

 

 

Acquired Loans

 

Loans secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land development and other land

 

$

1,188

 

 

$

46

 

 

$

14

 

 

$

—

 

 

$

1,248

 

 

$

23,586

 

Secured by 1-4 family residential properties

 

 

42,008

 

 

 

1,687

 

 

 

584

 

 

 

124

 

 

 

44,403

 

 

 

61,751

 

Secured by nonfarm, nonresidential properties

 

 

34

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

34

 

 

 

114,694

 

Other real estate secured

 

 

406

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

406

 

 

 

16,746

 

Commercial and industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

31,506

 

Consumer loans

 

 

2,428

 

 

 

172

 

 

 

—

 

 

 

—

 

 

 

2,600

 

 

 

2,600

 

Other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

10,634

 

Total acquired loans

 

$

46,064

 

 

$

1,905

 

 

$

598

 

 

$

124

 

 

$

48,691

 

 

$

261,517

 

 

(1)

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

 

 

 

December 31, 2016

 

 

 

 

 

Commercial Loans

 

 

 

 

 

Pass -

 

 

Special Mention -

 

 

Substandard -

 

 

Doubtful -

 

 

 

 

 

 

 

 

 

Categories 1-6

 

 

Category 7

 

 

Category 8

 

 

Category 9

 

 

Subtotal

 

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

 

 

 

 

14,552

 

 

 

61

 

 

 

4,066

 

 

 

69

 

 

 

18,748

 

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 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 (1)

 

 

Subtotal

 

 

Acquired 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

 

 

48,695

 

 

 

1,364

 

 

 

709

 

 

 

24

 

 

 

50,792

 

 

 

69,540

 

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 acquired loans

 

$

54,232

 

 

$

1,415

 

 

$

784

 

 

$

24

 

 

$

56,455

 

 

$

272,247

 

 

(1)

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, 2017 and 2016 ($ in thousands):

 

 

December 31, 2017

 

 

 

Past Due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-59 Days

 

 

60-89 Days

 

 

90 Days or More (1)

 

 

Total

 

 

Nonaccrual (2)

 

 

Current Loans

 

 

Total Acquired Loans

 

Loans secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land development and other

   land

 

$

34

 

 

$

90

 

 

$

861

 

 

$

985

 

 

$

—

 

 

$

22,601

 

 

$

23,586

 

Secured by 1-4 family residential properties

 

 

1,691

 

 

 

614

 

 

 

654

 

 

 

2,959

 

 

 

302

 

 

 

58,490

 

 

 

61,751

 

Secured by nonfarm, nonresidential

   properties

 

 

467

 

 

 

73

 

 

 

898

 

 

 

1,438

 

 

 

—

 

 

 

113,256

 

 

 

114,694

 

Other real estate secured

 

 

132

 

 

 

—

 

 

 

—

 

 

 

132

 

 

 

—

 

 

 

16,614

 

 

 

16,746

 

Commercial and industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2

 

 

 

31,504

 

 

 

31,506

 

Consumer loans

 

 

16

 

 

 

156

 

 

 

—

 

 

 

172

 

 

 

—

 

 

 

2,428

 

 

 

2,600

 

Other loans

 

 

—

 

 

 

—

 

 

 

21

 

 

 

21

 

 

 

—

 

 

 

10,613

 

 

 

10,634

 

Total acquired loans

 

$

2,340

 

 

$

933

 

 

$

2,434

 

 

$

5,707

 

 

$

304

 

 

$

255,506

 

 

$

261,517

 

 

(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, 2016

 

 

 

Past Due

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-59 Days

 

 

60-89 Days

 

 

90 Days or More (1)

 

 

Total

 

 

Nonaccrual (2)

 

 

Current Loans

 

 

Total Acquired 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

 

 

1,495

 

 

 

412

 

 

 

1,057

 

 

 

2,964

 

 

 

41

 

 

 

66,535

 

 

 

69,540

 

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 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.