XML 44 R32.htm IDEA: XBRL DOCUMENT v3.19.2
Acquired Loans (Tables)
 6 Months Ended
Jun. 30, 2019
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract]  
Schedule of Acquired Loans

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

 

 

 

June 30, 2019

 

 

December 31, 2018

 

Loans secured by real estate:

 

 

 

 

 

 

 

 

Construction, land development and other land

 

$

5,705

 

 

$

5,878

 

Secured by 1-4 family residential properties

 

 

19,967

 

 

 

22,556

 

Secured by nonfarm, nonresidential properties

 

 

43,444

 

 

 

47,979

 

Other real estate secured

 

 

7,416

 

 

 

8,253

 

Commercial and industrial loans

 

 

6,193

 

 

 

15,267

 

Consumer loans

 

 

852

 

 

 

1,356

 

Other loans

 

 

4,307

 

 

 

5,643

 

Acquired loans

 

 

87,884

 

 

 

106,932

 

Less allowance for loan losses, acquired loans

 

 

1,398

 

 

 

1,231

 

Net acquired loans

 

$

86,486

 

 

$

105,701

 

 
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, 2018

 

$

179,570

 

 

$

77,868

 

Transfers (2)(3)

 

 

(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

 

Transfers (3)

 

 

—

 

 

 

(2,926

)

Accretion to interest income

 

 

2,983

 

 

 

115

 

Payments received, net

 

 

(19,667

)

 

 

—

 

Other (4)

 

 

447

 

 

 

—

 

Change in allowance for loan losses, acquired loans

 

 

(167

)

 

 

—

 

Carrying value, net at June 30, 2019

 

$

86,486

 

 

$

—

 

 

(1)

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

(2)

During 2018, Trustmark transferred the remaining loans acquired in the Bay Bank, Heritage and Reliance acquisitions from acquired impaired loans to LHFI.

(3)

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

(4)

Includes miscellaneous timing adjustments as well as acquired loan terminations through foreclosure, charge-off and other terminations.
Changes in Accretable Yield of Acquired Loans The following table presents changes in the accretable yield for the periods presented ($ in thousands):

 

 

Six Months Ended June 30,

 

 

 

2019

 

 

2018

 

Accretable yield at beginning of period

 

$

(17,722

)

 

$

(31,426

)

Accretion to interest income

 

 

2,983

 

 

 

5,927

 

Disposals, net

 

 

1,114

 

 

 

1,463

 

Transfers (1)

 

 

—

 

 

 

3,685

 

Reclassification from nonaccretable difference (2)

 

 

(2,280

)

 

 

(2,547

)

Accretable yield at end of period

 

$

(15,905

)

 

$

(22,898

)

 

(1)

During the second quarter of 2018, Trustmark transferred the remaining loans acquired in the Bay Bank merger from acquired impaired loans to LHFI.

(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 table presents the components of the allowance for loan losses on acquired loans 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

 

$

1,297

 

 

$

4,294

 

 

$

1,231

 

 

$

4,079

 

Transfers (1)

 

 

—

 

 

 

(782

)

 

 

—

 

 

 

(782

)

Net (charge-offs) recoveries

 

 

(5

)

 

 

(25

)

 

 

(17

)

 

 

40

 

Provision for loan losses, acquired loans

 

 

106

 

 

 

(441

)

 

 

184

 

 

 

(291

)

Balance at end of period

 

$

1,398

 

 

$

3,046

 

 

$

1,398

 

 

$

3,046

 

(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.

 
Acquired Loans by Loan Type and Credit Quality Indicator

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

 

 

June 30, 2019

 

 

 

 

 

 

 

Commercial Loans

 

 

 

 

 

 

 

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

 

 

 

 

 

$

4,781

 

 

$

27

 

 

$

235

 

 

$

—

 

 

$

5,043

 

Secured by 1-4 family

   residential properties

 

 

 

 

 

 

3,681

 

 

 

43

 

 

 

556

 

 

 

444

 

 

 

4,724

 

Secured by nonfarm,

   nonresidential properties

 

 

 

 

 

 

31,840

 

 

 

—

 

 

 

11,193

 

 

 

411

 

 

 

43,444

 

Other real estate secured

 

 

 

 

 

 

7,150

 

 

 

—

 

 

 

70

 

 

 

196

 

 

 

7,416

 

Commercial and industrial loans

 

 

 

 

 

 

4,348

 

 

 

—

 

 

 

149

 

 

 

1,696

 

 

 

6,193

 

Consumer loans

 

 

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other loans

 

 

 

 

 

 

2,946

 

 

 

—

 

 

 

1,361

 

 

 

—

 

 

 

4,307

 

Total acquired loans

 

 

 

 

 

$

54,746

 

 

$

70

 

 

$

13,564

 

 

$

2,747

 

 

$

71,127

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Loans

 

 

 

 

 

 

 

Current

 

 

Past Due

30-89 Days

 

 

Past Due

90 Days or More

 

 

Nonaccrual (1)

 

 

Subtotal

 

 

Total

Acquired Loans

 

Loans secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land development

   and other land

 

$

658

 

 

$

—

 

 

$

4

 

 

$

—

 

 

$

662

 

 

$

5,705

 

Secured by 1-4 family

   residential properties

 

 

14,287

 

 

 

858

 

 

 

98

 

 

 

—

 

 

 

15,243

 

 

 

19,967

 

Secured by nonfarm,

   nonresidential properties

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

43,444

 

Other real estate secured

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,416

 

Commercial and industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,193

 

Consumer loans

 

 

844

 

 

 

8

 

 

 

—

 

 

 

—

 

 

 

852

 

 

 

852

 

Other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,307

 

Total acquired loans

 

$

15,789

 

 

$

866

 

 

$

102

 

 

$

—

 

 

$

16,757

 

 

$

87,884

 

 

(1)

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

 

 

 

December 31, 2018

 

 

 

 

 

 

 

Commercial Loans

 

 

 

 

 

 

 

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

 

 

 

 

 

$

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

 

 

 

 

 

 

 

Current

 

 

Past Due

30-89 Days

 

 

Past Due

90 Days or More

 

 

Nonaccrual (1)

 

 

Subtotal

 

 

Total

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.
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 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 (2)

 

 

Current

Loans

 

 

Total Acquired

Loans

 

Loans secured by real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction, land development

   and other land

 

$

—

 

 

$

—

 

 

$

100

 

 

$

100

 

 

$

—

 

 

$

5,605

 

 

$

5,705

 

Secured by 1-4 family residential

   properties

 

 

723

 

 

 

244

 

 

 

132

 

 

 

1,099

 

 

 

—

 

 

 

18,868

 

 

 

19,967

 

Secured by nonfarm, nonresidential

   properties

 

 

—

 

 

 

69

 

 

 

734

 

 

 

803

 

 

 

—

 

 

 

42,641

 

 

 

43,444

 

Other real estate secured

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

7,416

 

 

 

7,416

 

Commercial and industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

6,193

 

 

 

6,193

 

Consumer loans

 

 

—

 

 

 

8

 

 

 

—

 

 

 

8

 

 

 

—

 

 

 

844

 

 

 

852

 

Other loans

 

 

—

 

 

 

—

 

 

 

1,352

 

 

 

1,352

 

 

 

—

 

 

 

2,955

 

 

 

4,307

 

Total acquired loans

 

$

723

 

 

$

321

 

 

$

2,318

 

 

$

3,362

 

 

$

—

 

 

$

84,522

 

 

$

87,884

 

 

(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, 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.