XML 52 R36.htm IDEA: XBRL DOCUMENT v3.10.0.1
Acquired Loans (Tables)
 12 Months Ended
Dec. 31, 2018
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract]  
Schedule of Acquired Loans

At December 31, 2018 and 2017, acquired loans consisted of the following ($ in thousands):

 

 

December 31,

 

 

 

2018

 

 

2017

 

Loans secured by real estate:

 

 

 

 

 

 

 

 

Construction, land development and other land

 

$

5,878

 

 

$

23,586

 

Secured by 1-4 family residential properties

 

 

22,556

 

 

 

61,751

 

Secured by nonfarm, nonresidential properties

 

 

47,979

 

 

 

114,694

 

Other real estate secured

 

 

8,253

 

 

 

16,746

 

Commercial and industrial loans

 

 

15,267

 

 

 

31,506

 

Consumer loans

 

 

1,356

 

 

 

2,600

 

Other loans

 

 

5,643

 

 

 

10,634

 

Acquired loans

 

 

106,932

 

 

 

261,517

 

Less allowance for loan losses, acquired loans

 

 

1,231

 

 

 

4,079

 

Net acquired loans

 

$

105,701

 

 

$

257,438

 

 
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

Impaired

 

 

Acquired

Not ASC

 310-30 (1)

 

Carrying value, net at January 1, 2017

 

$

218,107

 

 

$

42,743

 

Transfers (2)

 

 

—

 

 

 

(36,719

)

Additions (3)

 

 

7,899

 

 

 

109,548

 

Accretion to interest income

 

 

14,924

 

 

 

1,578

 

Payments received, net

 

 

(68,317

)

 

 

(39,208

)

Other (4)

 

 

(361

)

 

 

(74

)

Change in allowance for loan losses, acquired loans

 

 

7,318

 

 

 

—

 

Carrying value, net at December 31, 2017

 

 

179,570

 

 

 

77,868

 

Transfers (5)(2)

 

 

(26,497

)

 

 

(59,916

)

Accretion to interest income

 

 

9,514

 

 

 

1,019

 

Payments received, net

 

 

(62,519

)

 

 

(16,234

)

Other (4)

 

 

(26

)

 

 

74

 

Change in allowance for loan losses, acquired loans

 

 

2,848

 

 

 

—

 

Carrying value, net at December 31, 2018

 

$

102,890

 

 

$

2,811

 

 

(1)

“Acquired Not ASC 310-30” loans consist of loans that are not in scope for FASB ASC Topic 310-30.

(2)

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

(3)

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

(4)

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

(5)

During 2018, Trustmark transferred the remaining loans acquired in the Heritage acquisition on April 11, 2015, the Bay Bank merger on March 16, 2012 and the Reliance merger on April 7, 2017 from acquired impaired loans to LHFI.
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,

 

 

 

2018

 

 

2017

 

 

2016

 

Accretable yield at beginning of period

 

$

(31,426

)

 

$

(38,918

)

 

$

(52,672

)

Additions due to acquisition (1)

 

 

—

 

 

 

(784

)

 

 

—

 

Accretion to interest income

 

 

9,514

 

 

 

14,924

 

 

 

18,405

 

Disposals, net

 

 

3,926

 

 

 

2,868

 

 

 

6,488

 

Transfers (2)

 

 

5,874

 

 

 

—

 

 

 

—

 

Reclassification from nonaccretable difference (3)

 

 

(5,610

)

 

 

(9,516

)

 

 

(11,139

)

Accretable yield at end of period

 

$

(17,722

)

 

$

(31,426

)

 

$

(38,918

)

 

(1)

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

(2)

During 2018, Trustmark transferred the remaining loans acquired in the Heritage acquisition on April 11, 2015, the Bay Bank merger on March 16, 2012 and the Reliance merger on April 7, 2017 from acquired impaired loans to LHFI.

(3)

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,

 

 

 

2018

 

 

2017

 

 

2016

 

Balance at beginning of period

 

$

4,079

 

 

$

11,397

 

 

$

11,992

 

Transfers (1)

 

 

(1,554

)

 

 

—

 

 

 

—

 

Provision for loan losses, acquired loans

 

 

(1,005

)

 

 

(7,395

)

 

 

3,757

 

Net (charge-offs) recoveries

 

 

(289

)

 

 

77

 

 

 

(4,352

)

Balance at end of period

 

$

1,231

 

 

$

4,079

 

 

$

11,397

 

 

(1)

The allowance for loan losses balance related to the remaining loans acquired in the Heritage acquisition, the Bay Bank merger and the Reliance merger, which were transferred from acquired impaired loans to LHFI during 2018.
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, 2018 and 2017 ($ in thousands):

 

 

 

December 31, 2018

 

 

 

 

 

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

 

 

 

$

4,923

 

 

$

26

 

 

$

278

 

 

$

—

 

 

$

5,227

 

Secured by 1-4 family residential properties

 

 

 

 

4,341

 

 

 

45

 

 

 

534

 

 

 

451

 

 

 

5,371

 

Secured by nonfarm, nonresidential properties

 

 

 

 

34,933

 

 

 

—

 

 

 

12,614

 

 

 

432

 

 

 

47,979

 

Other real estate secured

 

 

 

 

7,653

 

 

 

—

 

 

 

190

 

 

 

410

 

 

 

8,253

 

Commercial and industrial loans

 

 

 

 

6,560

 

 

 

—

 

 

 

6,942

 

 

 

1,765

 

 

 

15,267

 

Consumer loans

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other loans

 

 

 

 

4,027

 

 

 

—

 

 

 

1,616

 

 

 

—

 

 

 

5,643

 

Total acquired loans

 

 

 

$

62,437

 

 

$

71

 

 

$

22,174

 

 

$

3,058

 

 

$

87,740

 

 

 

 

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

 

$

642

 

 

$

5

 

 

$

4

 

 

$

—

 

 

$

651

 

 

$

5,878

 

Secured by 1-4 family residential properties

 

 

16,133

 

 

 

571

 

 

 

481

 

 

 

—

 

 

 

17,185

 

 

 

22,556

 

Secured by nonfarm, nonresidential properties

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

47,979

 

Other real estate secured

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

8,253

 

Commercial and industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,267

 

Consumer loans

 

 

1,346

 

 

 

10

 

 

 

—

 

 

 

—

 

 

 

1,356

 

 

 

1,356

 

Other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,643

 

Total acquired loans

 

$

18,121

 

 

$

586

 

 

$

485

 

 

$

—

 

 

$

19,192

 

 

$

106,932

 

 

(1)

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

 

 

 

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.
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, 2018 and 2017 ($ in thousands):

 

 

December 31, 2018

 

 

 

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

 

$

5

 

 

$

—

 

 

$

87

 

 

$

92

 

 

$

—

 

 

$

5,786

 

 

$

5,878

 

Secured by 1-4 family residential properties

 

 

664

 

 

 

108

 

 

 

481

 

 

 

1,253

 

 

 

—

 

 

 

21,303

 

 

 

22,556

 

Secured by nonfarm, nonresidential

   properties

 

 

206

 

 

 

—

 

 

 

978

 

 

 

1,184

 

 

 

—

 

 

 

46,795

 

 

 

47,979

 

Other real estate secured

 

 

2

 

 

 

14

 

 

 

—

 

 

 

16

 

 

 

—

 

 

 

8,237

 

 

 

8,253

 

Commercial and industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

15,267

 

 

 

15,267

 

Consumer loans

 

 

1

 

 

 

9

 

 

 

—

 

 

 

10

 

 

 

—

 

 

 

1,346

 

 

 

1,356

 

Other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,643

 

 

 

5,643

 

Total acquired loans

 

$

878

 

 

$

131

 

 

$

1,546

 

 

$

2,555

 

 

$

—

 

 

$

104,377

 

 

$

106,932

 

 

(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, 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.