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

6 Months Ended

Jun. 30, 2019

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

At June 30, 2019 and December 31, 2018, LHFI consisted of the following ($ in thousands):

	June 30, 2019		December 31, 2018
Loans secured by real estate:
Construction, land development and other land	$	1,111,297	$	1,056,601
Secured by 1-4 family residential properties		1,818,126		1,825,492
Secured by nonfarm, nonresidential properties		2,326,312		2,220,914
Other real estate secured		635,839		543,820
Commercial and industrial loans		1,533,318		1,538,715
Consumer loans		176,133		182,448
State and other political subdivision loans		982,187		973,818
Other loans		533,547		494,060
LHFI		9,116,759		8,835,868
Less allowance for loan losses, LHFI		80,399		79,290
Net LHFI	$	9,036,360	$	8,756,578

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, 2019 and December 31, 2018 ($ in thousands):

	June 30, 2019
	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	$	639	$	—	$	—	$	639	$	1,263	$	1,109,395	$	1,111,297
Secured by 1-4 family residential properties		3,600		927		999		5,526		17,591		1,795,009		1,818,126
Secured by nonfarm, nonresidential properties		1,600		75		43		1,718		7,870		2,316,724		2,326,312
Other real estate secured		11		1		—		12		739		635,088		635,839
Commercial and industrial loans		2,429		890		—		3,319		15,708		1,514,291		1,533,318
Consumer loans		1,534		183		203		1,920		152		174,061		176,133
State and other political subdivision loans		—		—		—		—		8,303		973,884		982,187
Other loans		335		—		—		335		1,262		531,950		533,547
Total	$	10,148	$	2,076	$	1,245	$	13,469	$	52,888	$	9,050,402	$	9,116,759

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

	December 31, 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	$	284	$	—	$	—	$	284	$	2,218	$	1,054,099	$	1,056,601
Secured by 1-4 family residential properties		8,600		1,700		569		10,869		14,718		1,799,905		1,825,492
Secured by nonfarm, nonresidential properties		1,887		—		—		1,887		9,621		2,209,406		2,220,914
Other real estate secured		197		99		—		296		927		542,597		543,820
Commercial and industrial loans		1,346		300		—		1,646		23,938		1,513,131		1,538,715
Consumer loans		1,800		353		287		2,440		205		179,803		182,448
State and other political subdivision loans		186		—		—		186		8,595		965,037		973,818
Other loans		83		—		—		83		1,402		492,575		494,060
Total	$	14,383	$	2,452	$	856	$	17,691	$	61,624	$	8,756,553	$	8,835,868

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

Impaired Financing Receivables

At June 30, 2019 and December 31, 2018, individually evaluated impaired LHFI consisted of the following ($ in thousands):

	June 30, 2019
	LHFI
	Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Total Recorded Investment		Related Allowance		Average Recorded Investment
Loans secured by real estate:
Construction, land development and other land	$	945	$	652	$	20	$	672	$	—	$	1,112
Secured by 1-4 family residential properties		5,652		1,688		3,010		4,698		30		4,330
Secured by nonfarm, nonresidential properties		7,088		6,518		255		6,773		191		8,124
Other real estate secured		—		—		—		—		—		124
Commercial and industrial loans		31,463		12,192		17,197		29,389		3,139		30,053
Consumer loans		30		—		30		30		—		16
State and other political subdivision loans		8,533		8,303		—		8,303		—		8,449
Other loans		1,378		230		974		1,204		974		1,244
Total	$	55,089	$	29,583	$	21,486	$	51,069	$	4,334	$	53,452

	December 31, 2018
	LHFI
	Unpaid Principal Balance		With No Related Allowance Recorded		With an Allowance Recorded		Total Recorded Investment		Related Allowance		Average Recorded Investment
Loans secured by real estate:
Construction, land development and other land	$	1,794	$	1,528	$	24	$	1,552	$	—	$	1,738
Secured by 1-4 family residential properties		4,951		95		3,868		3,963		39		4,328
Secured by nonfarm, nonresidential properties		8,282		6,728		2,748		9,476		413		8,898
Other real estate secured		—		—		248		248		—		124
Commercial and industrial loans		37,786		12,893		17,824		30,717		4,334		26,725
Consumer loans		2		—		2		2		—		6
State and other political subdivision loans		8,688		4,079		4,516		8,595		516		4,297
Other loans		1,418		230		1,052		1,282		1,052		804
Total	$	62,921	$	25,553	$	30,282	$	55,835	$	6,354	$	46,920

Impact of Modifications Classified as Troubled Debt Restructurings

The following tables illustrate the impact of modifications classified as TDRs for the periods presented ($ in thousands):

	Three Months Ended June 30,
	2019						2018
	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
Loans secured by real estate:
Construction, land development and other land		—	$	—	$	—		1	$	22	$	22
Secured by 1-4 family residential properties		5		793		792		12		1,634		1,193
Secured by nonfarm, nonresidential properties		1		5,055		5,055		—		—		—
Commercial and industrial loans		2		113		—		5		9,275		9,258
Consumer loans		—		—		—		3		4		4
Total		8	$	5,961	$	5,847		21	$	10,935	$	10,477

	Six Months Ended June 30,
	2019						2018
	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
Loans secured by real estate:
Construction, land development and other land		—	$	—	$	—		1	$	22	$	22
Secured by 1-4 family residential properties		7		879		878		16		1,752		1,311
Secured by nonfarm, nonresidential properties		1		5,055		5,055		—		—		—
Commercial and industrial loans		8		9,167		9,054		6		11,746		11,729
Consumer loans		2		30		30		3		4		4
Total		18	$	15,131	$	15,017		26	$	13,524	$	13,066

Troubled Debt Restructuring Subsequently Defaulted

The table below includes the balances at default for TDRs modified within the last 12 months for which there was a payment default during the periods presented ($ in thousands):

	Six Months Ended June 30,
	2019				2018
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Loans secured by real estate:
Construction, land development and other land		—	$	—		1	$	22
Secured by 1-4 family residential properties		1		46		2		30
Commercial and industrial loans		10		7,957		3		7,414
Consumer loans		1		27		—		—
Total		12	$	8,030		6	$	7,466

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, 2019 and 2018 ($ in thousands):

	June 30, 2019
	Accruing		Nonaccrual		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	20	$	20
Secured by 1-4 family residential properties		50		3,563		3,613
Secured by nonfarm, nonresidential properties		—		5,311		5,311
Commercial and industrial loans		14,897		11,965		26,862
Consumer loans		—		30		30
Other loans		—		510		510
Total TDRs	$	14,947	$	21,399	$	36,346

	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

Carrying Amount of Loans by Credit Quality Indicator

The tables below present LHFI by loan type and credit quality indicator at June 30, 2019 and December 31, 2018 ($ in thousands):

	June 30, 2019
		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		$	1,030,648	$	70	$	3,992	$	193	$	1,034,903
Secured by 1-4 family residential properties			118,173		313		2,618		48		121,152
Secured by nonfarm, nonresidential properties			2,276,103		—		49,803		362		2,326,268
Other real estate secured			630,205		—		4,849		—		635,054
Commercial and industrial loans			1,452,571		15,575		64,412		760		1,533,318
Consumer loans			—		—		—		—		—
State and other political subdivision loans			967,718		4,650		9,819		—		982,187
Other loans			508,013		3,986		17,615		35		529,649
Total		$	6,983,431	$	24,594	$	153,108	$	1,398	$	7,162,531

	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	$	75,579	$	529	$	—	$	286	$	76,394	$	1,111,297
Secured by 1-4 family residential properties		1,675,107		4,240		999		16,628		1,696,974		1,818,126
Secured by nonfarm, nonresidential properties		44		—		—		—		44		2,326,312
Other real estate secured		784		1		—		—		785		635,839
Commercial and industrial loans		—		—		—		—		—		1,533,318
Consumer loans		174,061		1,717		203		152		176,133		176,133
State and other political subdivision loans		—		—		—		—		—		982,187
Other loans		3,898		—		—		—		3,898		533,547
Total	$	1,929,473	$	6,487	$	1,202	$	17,066	$	1,954,228	$	9,116,759

	December 31, 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		$	982,305	$	75	$	5,645	$	203	$	988,228
Secured by 1-4 family residential properties			123,191		216		2,731		229		126,367
Secured by nonfarm, nonresidential properties			2,182,106		1,250		37,025		473		2,220,854
Other real estate secured			537,958		323		4,610		—		542,891
Commercial and industrial loans			1,468,262		12,431		55,943		2,079		1,538,715
Consumer loans			—		—		—		—		—
State and other political subdivision loans			958,214		5,250		10,354		—		973,818
Other loans			460,568		17,842		10,323		49		488,782
Total		$	6,712,604	$	37,387	$	126,631	$	3,033	$	6,879,655

	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	$	67,913	$	124	$	—	$	336	$	68,373	$	1,056,601
Secured by 1-4 family residential properties		1,675,455		9,872		569		13,229		1,699,125		1,825,492
Secured by nonfarm, nonresidential properties		60		—		—		—		60		2,220,914
Other real estate secured		929		—		—		—		929		543,820
Commercial and industrial loans		—		—		—		—		—		1,538,715
Consumer loans		179,802		2,153		288		205		182,448		182,448
State and other political subdivision loans		—		—		—		—		—		973,818
Other loans		5,278		—		—		—		5,278		494,060
Total	$	1,929,437	$	12,149	$	857	$	13,770	$	1,956,213	$	8,835,868

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, 2019 and December 31, 2018 ($ in thousands):

	June 30, 2019
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	6,931	$	6,931
Secured by 1-4 family residential properties		30		8,329		8,359
Secured by nonfarm, nonresidential properties		191		24,057		24,248
Other real estate secured		—		3,721		3,721
Commercial and industrial loans		3,139		24,479		27,618
Consumer loans		—		3,248		3,248
State and other political subdivision loans		—		438		438
Other loans		974		4,862		5,836
Total allowance for loan losses, LHFI	$	4,334	$	76,065	$	80,399

	December 31, 2018
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	—	$	7,390	$	7,390
Secured by 1-4 family residential properties		39		8,602		8,641
Secured by nonfarm, nonresidential properties		413		21,963		22,376
Other real estate secured		—		3,450		3,450
Commercial and industrial loans		4,334		23,025		27,359
Consumer loans		—		2,890		2,890
State and other political subdivision loans		516		474		990
Other loans		1,052		5,142		6,194
Total allowance for loan losses, LHFI	$	6,354	$	72,936	$	79,290

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,
	2019			2018			2019			2018
Balance at beginning of period	$	79,005		$	81,235		$	79,290		$	76,733
Transfers (1)		—			782			—			782
Loans charged-off		(2,937	)		(3,421	)		(6,970	)		(5,963	)
Recoveries		1,845			1,803			3,982			4,886
Net (charge-offs) recoveries		(1,092	)		(1,618	)		(2,988	)		(1,077	)
Provision for loan losses, LHFI		2,486			3,167			4,097			7,128
Balance at end of period	$	80,399		$	83,566		$	80,399		$	83,566

(1)	The allowance for loan losses balance related to the remaining loans acquired in the Bay Bank merger, 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, 2019 and 2018 ($ in thousands):

	2019
	Balance January 1,		Charge-offs			Recoveries		Provision for Loan Losses			Balance June 30,
Loans secured by real estate:
Construction, land development and other land	$	7,390	$	(35	)	$	577	$	(1,001	)	$	6,931
Secured by 1-4 family residential properties		8,641		(281	)		336		(337	)		8,359
Secured by nonfarm, nonresidential properties		22,376		(34	)		30		1,876			24,248
Other real estate secured		3,450		—			16		255			3,721
Commercial and industrial loans		27,359		(2,831	)		329		2,761			27,618
Consumer loans		2,890		(1,269	)		954		673			3,248
State and other political subdivision loans		990		—			—		(552	)		438
Other loans		6,194		(2,520	)		1,740		422			5,836
Total allowance for loan losses, LHFI	$	79,290	$	(6,970	)	$	3,982	$	4,097		$	80,399

	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 loans	$	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, which were transferred from acquired loans to LHFI during the second quarter of 2018.

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, 2019 and December 31, 2018 ($ in thousands):

	June 30, 2019
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	672	$	1,110,625	$	1,111,297
Secured by 1-4 family residential properties		4,698		1,813,428		1,818,126
Secured by nonfarm, nonresidential properties		6,773		2,319,539		2,326,312
Other real estate secured		—		635,839		635,839
Commercial and industrial loans		29,389		1,503,929		1,533,318
Consumer loans		30		176,103		176,133
State and other political subdivision loans		8,303		973,884		982,187
Other loans		1,204		532,343		533,547
Total	$	51,069	$	9,065,690	$	9,116,759

	December 31, 2018
	LHFI Evaluated for Impairment
	Individually		Collectively		Total
Loans secured by real estate:
Construction, land development and other land	$	1,552	$	1,055,049	$	1,056,601
Secured by 1-4 family residential properties		3,963		1,821,529		1,825,492
Secured by nonfarm, nonresidential properties		9,476		2,211,438		2,220,914
Other real estate secured		248		543,572		543,820
Commercial and industrial loans		30,717		1,507,998		1,538,715
Consumer loans		2		182,446		182,448
State and other political subdivision loans		8,595		965,223		973,818
Other loans		1,282		492,778		494,060
Total	$	55,835	$	8,780,033	$	8,835,868