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

6 Months Ended

Jun. 30, 2018

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

At June 30, 2018 and December 31, 2017, LHFI consisted of the following ($ in thousands):

	June 30, 2018			December 31, 2017
Loans secured by real estate:
Construction, land development and other land	$	1,038,745		$	987,624
Secured by 1-4 family residential properties		1,742,496			1,675,311
Secured by nonfarm, nonresidential properties		2,321,734			2,193,823
Other real estate secured		397,538			517,956
Commercial and industrial loans		1,572,764			1,570,345
Consumer loans		175,261			171,918
State and other political subdivision loans		925,452			952,483
Other loans		504,993			500,507
LHFI		8,678,983			8,569,967
Allowance for loan losses, LHFI		(83,566	)		(76,733	)
Net LHFI	$	8,595,417		$	8,493,234

Aging Analysis of Past Due and Nonaccrual LHFI by Loan Type

The following tables provide an aging analysis of past due and nonaccrual LHFI by loan type at June 30, 2018 and December 31, 2017 ($ in thousands):

	June 30, 2018
	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	$	39	$	80	$	—	$	119	$	2,566	$	1,036,060	$	1,038,745
Secured by 1-4 family residential properties		4,089		1,307		309		5,705		16,753		1,720,038		1,742,496
Secured by nonfarm, nonresidential properties		863		412		—		1,275		7,997		2,312,462		2,321,734
Other real estate secured		140		—		43		183		69		397,286		397,538
Commercial and industrial loans		1,183		204		—		1,387		32,548		1,538,829		1,572,764
Consumer loans		1,281		340		163		1,784		174		173,303		175,261
State and other political subdivision loans		—		—		—		—		—		925,452		925,452
Other loans		40		4		14		58		1,256		503,679		504,993
Total	$	7,635	$	2,347	$	529	$	10,511	$	61,363	$	8,607,109	$	8,678,983

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

	December 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	$	391	$	1	$	—	$	392	$	2,105	$	985,127	$	987,624
Secured by 1-4 family residential properties		6,412		2,084		1,917		10,413		19,022		1,645,876		1,675,311
Secured by nonfarm, nonresidential properties		2,319		256		—		2,575		12,608		2,178,640		2,193,823
Other real estate secured		—		—		—		—		212		517,744		517,956
Commercial and industrial loans		759		1,233		12		2,004		33,338		1,535,003		1,570,345
Consumer loans		2,141		255		242		2,638		135		169,145		171,918
State and other political subdivision loans		350		39		—		389		—		952,094		952,483
Other loans		18		4		—		22		155		500,330		500,507
Total	$	12,390	$	3,872	$	2,171	$	18,433	$	67,575	$	8,483,959	$	8,569,967

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

Impaired Financing Receivables

At June 30, 2018 and December 31, 2017, individually evaluated impaired LHFI consisted of the following ($ in thousands):

	June 30, 2018
	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	$	2,007	$	1,558	$	208	$	1,766	$	60	$	1,845
Secured by 1-4 family residential properties		5,885		707		3,908		4,615		42		4,654
Secured by nonfarm, nonresidential properties		6,724		6,148		370		6,518		133		7,420
Other real estate secured		—		—		—		—		—		—
Commercial and industrial loans		37,891		14,347		17,225		31,572		8,499		27,153
Consumer loans		4		—		4		4		—		6
State and other political subdivision loans		—		—		—		—		—		—
Other loans		1,206		—		1,106		1,106		1,106		716
Total	$	53,717	$	22,760	$	22,821	$	45,581	$	9,840	$	41,794

	December 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	$	1,704	$	1,206	$	199	$	1,405	$	75	$	1,923
Secured by 1-4 family residential properties		6,031		160		4,576		4,736		1,331		4,693
Secured by nonfarm, nonresidential properties		15,205		10,027		396		10,423		165		8,321
Other real estate secured		—		—		—		—		—		—
Commercial and industrial loans		36,874		31,281		518		31,799		131		22,734
Consumer loans		17		—		17		17		—		9
State and other political subdivision loans		—		—		—		—		—		—
Other loans		556		—		556		556		41		325
Total	$	60,387	$	42,674	$	6,262	$	48,936	$	1,743	$	38,005

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,
	2018						2017
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	$	22	$	22		—	$	—	$	—
Loans secured by 1-4 family residential properties		12		1,634		1,193		9		834		839
Commercial and industrial loans		5		9,275		9,258		1		244		244
Consumer loans		3		4		4		—		—		—
Total		21	$	10,935	$	10,477		10	$	1,078	$	1,083

	Six Months Ended June 30,
	2018						2017
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	$	22	$	22		1	$	341	$	325
Loans secured by 1-4 family residential properties		16		1,752		1,311		16		1,168		1,177
Commercial and industrial loans		6		11,746		11,729		1		244		244
Consumer loans		3		4		4		—		—		—
Total		26	$	13,524	$	13,066		18	$	1,753	$	1,746

Troubled Debt Restructuring Subsequently Defaulted

	Six Months Ended June 30,
	2018				2017
TDRs that Subsequently Defaulted	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Construction, land development and other land loans		1	$	22		—	$	—
Loans secured by 1-4 family residential properties		2		30		—		—
Commercial and industrial loans		3		7,414		2		—
Total		6	$	7,466		2	$	—

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, 2018 and 2017 ($ in thousands):

	June 30, 2018
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	208	$	208
Secured by 1-4 family residential properties		501		3,407		3,908
Secured by nonfarm, nonresidential properties		—		370		370
Commercial and industrial loans		733		28,673		29,406
Consumer loans		—		4		4
Other loans		—		556		556
Total TDRs	$	1,234	$	33,218	$	34,452

	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

Carrying Amount of Loans by Credit Quality Indicator

The tables below present LHFI by loan type and credit quality indicator at June 30, 2018 and December 31, 2017 ($ in thousands):

	June 30, 2018
		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		$	970,330	$	337	$	3,622	$	212	$	974,501
Secured by 1-4 family residential properties			126,253		100		4,098		65		130,516
Secured by nonfarm, nonresidential properties			2,282,660		3,953		34,558		495		2,321,666
Other real estate secured			396,830		—		387		—		397,217
Commercial and industrial loans			1,452,384		21,689		97,125		1,566		1,572,764
Consumer loans			—		—		—		—		—
State and other political subdivision loans			909,203		5,250		10,999		—		925,452
Other loans			494,525		509		5,139		105		500,278
Total		$	6,632,185	$	31,838	$	155,928	$	2,443	$	6,822,394

	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	$	63,761	$	83	$	—	$	400	$	64,244	$	1,038,745
Secured by 1-4 family residential properties		1,591,476		4,605		309		15,590		1,611,980		1,742,496
Secured by nonfarm, nonresidential properties		68		—		—		—		68		2,321,734
Other real estate secured		321		—		—		—		321		397,538
Commercial and industrial loans		—		—		—		—		—		1,572,764
Consumer loans		173,303		1,621		163		174		175,261		175,261
State and other political subdivision loans		—		—		—		—		—		925,452
Other loans		4,715		—		—		—		4,715		504,993
Total	$	1,833,644	$	6,309	$	472	$	16,164	$	1,856,589	$	8,678,983

	December 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		$	922,563	$	316	$	3,780	$	222	$	926,881
Secured by 1-4 family residential properties			127,405		134		4,948		76		132,563
Secured by nonfarm, nonresidential properties			2,135,749		6,684		50,785		527		2,193,745
Other real estate secured			517,036		—		517		—		517,553
Commercial and industrial loans			1,437,590		28,780		103,089		886		1,570,345
Consumer loans			—		—		—		—		—
State and other political subdivision loans			936,420		5,850		10,213		—		952,483
Other loans			478,083		—		16,390		108		494,581
Total		$	6,554,846	$	41,764	$	189,722	$	1,819	$	6,788,151

	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	$	60,240	$	342	$	—	$	161	$	60,743	$	987,624
Secured by 1-4 family residential properties		1,516,691		7,874		1,809		16,374		1,542,748		1,675,311
Secured by nonfarm, nonresidential properties		78		—		—		—		78		2,193,823
Other real estate secured		403		—		—		—		403		517,956
Commercial and industrial loans		—		—		—		—		—		1,570,345
Consumer loans		169,146		2,396		242		134		171,918		171,918
State and other political subdivision loans		—		—		—		—		—		952,483
Other loans		5,926		—		—		—		5,926		500,507
Total	$	1,752,484	$	10,612	$	2,051	$	16,669	$	1,781,816	$	8,569,967

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, 2018 and December 31, 2017 ($ in thousands):

	June 30, 2018
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	60	$	7,830	$	7,890
Secured by 1-4 family residential properties		42		9,620		9,662
Secured by nonfarm, nonresidential properties		133		23,869		24,002
Other real estate secured		—		2,379		2,379
Commercial and industrial loans		8,499		23,029		31,528
Consumer loans		—		2,974		2,974
State and other political subdivision loans		—		765		765
Other loans		1,106		3,260		4,366
Total allowance for loan losses, LHFI	$	9,840	$	73,726	$	83,566

	December 31, 2017
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	75	$	7,790	$	7,865
Secured by 1-4 family residential properties		1,331		9,543		10,874
Secured by nonfarm, nonresidential properties		165		23,263		23,428
Other real estate secured		—		2,790		2,790
Commercial and industrial loans		131		22,720		22,851
Consumer loans		—		3,470		3,470
State and other political subdivision loans		—		789		789
Other loans		41		4,625		4,666
Total allowance for loan losses, LHFI	$	1,743	$	74,990	$	76,733

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,
	2018			2017			2018			2017
Balance at beginning of period	$	81,235		$	72,445		$	76,733		$	71,265
Transfers (1)		782			—			782			—
Loans charged-off		(3,421	)		(2,118	)		(5,963	)		(6,320	)
Recoveries		1,803			2,936			4,886			5,556
Net (charge-offs) recoveries		(1,618	)		818			(1,077	)		(764	)
Provision for loan losses, LHFI		3,167			2,921			7,128			5,683
Balance at end of period	$	83,566		$	76,184		$	83,566		$	76,184

(1)	The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank & Trust Company (Bay Bank) merger on March 16, 2012, which were transferred from acquired loans to LHFI during the second quarter of 2018.

The following tables detail changes in the allowance for loan losses, LHFI by loan type for the periods ended June 30, 2018 and 2017 ($ in thousands):

	2018
	Balance January 1,		Transfers (1)			Charge-offs			Recoveries		Provision for Loan Losses			Balance June 30,
Loans secured by real estate:
Construction, land development and other land	$	7,865	$	573		$	(2	)	$	536	$	(1,082	)	$	7,890
Secured by 1-4 family residential properties		10,874		127			(1,302	)		342		(379	)		9,662
Secured by nonfarm, nonresidential properties		23,428		103			(1,117	)		36		1,552			24,002
Other real estate secured		2,790		(68	)		—			12		(355	)		2,379
Commercial and industrial loans		22,851		2			(178	)		1,347		7,506			31,528
Consumer loans		3,470		45			(1,007	)		1,037		(571	)		2,974
State and other political subdivision loans		789		—			—			—		(24	)		765
Other loans		4,666		—			(2,357	)		1,576		481			4,366
Total allowance for loan losses, LHFI	$	76,733	$	782		$	(5,963	)	$	4,886	$	7,128		$	83,566

(1)	The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger on March 16, 2012, which were transferred from acquired loans to LHFI during the second quarter of 2018.

	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 loans	$	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

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, 2018 and December 31, 2017 ($ in thousands):

	June 30, 2018
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,766	$	1,036,979	$	1,038,745
Secured by 1-4 family residential properties		4,615		1,737,881		1,742,496
Secured by nonfarm, nonresidential properties		6,518		2,315,216		2,321,734
Other real estate secured		—		397,538		397,538
Commercial and industrial loans		31,572		1,541,192		1,572,764
Consumer loans		4		175,257		175,261
State and other political subdivision loans		—		925,452		925,452
Other loans		1,106		503,887		504,993
Total	$	45,581	$	8,633,402	$	8,678,983

	December 31, 2017
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,405	$	986,219	$	987,624
Secured by 1-4 family residential properties		4,736		1,670,575		1,675,311
Secured by nonfarm, nonresidential properties		10,423		2,183,400		2,193,823
Other real estate secured		—		517,956		517,956
Commercial and industrial loans		31,799		1,538,546		1,570,345
Consumer loans		17		171,901		171,918
State and other political subdivision loans		—		952,483		952,483
Other loans		556		499,951		500,507
Total	$	48,936	$	8,521,031	$	8,569,967