XML 91 R37.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Acquired Loans (Tables)
 12 Months Ended
Dec. 31, 2019
Certain Loans Acquired In Transfer Not Accounted For As Debt Securities [Abstract]  
Schedule of Acquired Loans

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

 

 

December 31,

 

 

 

2019

 

 

2018

 

Loans secured by real estate:

 

 

 

 

 

 

 

 

Construction, land development and other land

 

$

4,771

 

 

$

5,878

 

Secured by 1-4 family residential properties

 

 

17,525

 

 

 

22,556

 

Secured by nonfarm, nonresidential properties

 

 

38,206

 

 

 

47,979

 

Other real estate secured

 

 

3,946

 

 

 

8,253

 

Commercial and industrial loans

 

 

5,035

 

 

 

15,267

 

Consumer loans

 

 

520

 

 

 

1,356

 

Other loans

 

 

2,598

 

 

 

5,643

 

Acquired loans

 

 

72,601

 

 

 

106,932

 

Less allowance for loan losses, acquired loans

 

 

815

 

 

 

1,231

 

Net acquired loans

 

$

71,786

 

 

$

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

 

 

5,532

 

 

 

115

 

Payments received, net

 

 

(37,230

)

 

 

—

 

Other (4)

 

 

178

 

 

 

—

 

Change in allowance for loan losses, acquired loans

 

 

416

 

 

 

—

 

Carrying value, net at December 31, 2019

 

$

71,786

 

 

$

—

 

 

(1)

“Acquired Not ASC 310-30” loans consist of loans that are not in scope for FASB ASC Subtopic 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):

 

 

 

Years Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Accretable yield at beginning of period

 

$

(17,722

)

 

$

(31,426

)

 

$

(38,918

)

Additions due to acquisition (1)

 

 

—

 

 

 

—

 

 

 

(784

)

Accretion to interest income

 

 

5,532

 

 

 

9,514

 

 

 

14,924

 

Disposals, net

 

 

2,072

 

 

 

3,926

 

 

 

2,868

 

Transfers (2)

 

 

—

 

 

 

5,874

 

 

 

—

 

Reclassification from nonaccretable difference (3)

 

 

(4,698

)

 

 

(5,610

)

 

 

(9,516

)

Accretable yield at end of period

 

$

(14,816

)

 

$

(17,722

)

 

$

(31,426

)

 

(1)

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

(2)

During 2018, Trustmark transferred the remaining loans acquired in the Bay Bank, Heritage and Reliance acquisitions 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,

 

 

 

2019

 

 

2018

 

 

2017

 

Balance at beginning of period

 

$

1,231

 

 

$

4,079

 

 

$

11,397

 

Transfers (1)

 

 

—

 

 

 

(1,554

)

 

 

—

 

Provision for loan losses, acquired loans

 

 

42

 

 

 

(1,005

)

 

 

(7,395

)

Net (charge-offs) recoveries

 

 

(458

)

 

 

(289

)

 

 

77

 

Balance at end of period

 

$

815

 

 

$

1,231

 

 

$

4,079

 

 

(1)

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

 

 

 

December 31, 2019

 

 

 

 

 

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

 

 

 

$

4,022

 

 

$

—

 

 

$

192

 

 

$

—

 

 

$

4,214

 

Secured by 1-4 family residential properties

 

 

 

 

3,164

 

 

 

42

 

 

 

580

 

 

 

—

 

 

 

3,786

 

Secured by nonfarm, nonresidential properties

 

 

 

 

27,848

 

 

 

—

 

 

 

9,972

 

 

 

386

 

 

 

38,206

 

Other real estate secured

 

 

 

 

3,878

 

 

 

—

 

 

 

68

 

 

 

—

 

 

 

3,946

 

Commercial and industrial loans

 

 

 

 

3,419

 

 

 

—

 

 

 

—

 

 

 

1,616

 

 

 

5,035

 

Consumer loans

 

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Other loans

 

 

 

 

2,591

 

 

 

—

 

 

 

7

 

 

 

—

 

 

 

2,598

 

Total acquired loans

 

 

 

$

44,922

 

 

$

42

 

 

$

10,819

 

 

$

2,002

 

 

$

57,785

 

 

 

 

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

 

$

463

 

 

$

94

 

 

$

—

 

 

$

—

 

 

$

557

 

 

$

4,771

 

Secured by 1-4 family residential properties

 

 

12,843

 

 

 

615

 

 

 

281

 

 

 

—

 

 

 

13,739

 

 

 

17,525

 

Secured by nonfarm, nonresidential properties

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

38,206

 

Other real estate secured

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

3,946

 

Commercial and industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,035

 

Consumer loans

 

 

489

 

 

 

31

 

 

 

—

 

 

 

—

 

 

 

520

 

 

 

520

 

Other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,598

 

Total acquired loans

 

$

13,795

 

 

$

740

 

 

$

281

 

 

$

—

 

 

$

14,816

 

 

$

72,601

 

 

(1)

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

 

 

 

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 Subtopic 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, 2019 and 2018 ($ in thousands):

 

 

December 31, 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

 

$

94

 

 

$

—

 

 

$

38

 

 

$

132

 

 

$

—

 

 

$

4,639

 

 

$

4,771

 

Secured by 1-4 family residential properties

 

 

696

 

 

 

131

 

 

 

366

 

 

 

1,193

 

 

 

—

 

 

 

16,332

 

 

 

17,525

 

Secured by nonfarm, nonresidential

   properties

 

 

36

 

 

 

—

 

 

 

851

 

 

 

887

 

 

 

—

 

 

 

37,319

 

 

 

38,206

 

Other real estate secured

 

 

1

 

 

 

—

 

 

 

52

 

 

 

53

 

 

 

—

 

 

 

3,893

 

 

 

3,946

 

Commercial and industrial loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

5,035

 

 

 

5,035

 

Consumer loans

 

 

16

 

 

 

15

 

 

 

—

 

 

 

31

 

 

 

—

 

 

 

489

 

 

 

520

 

Other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,598

 

 

 

2,598

 

Total acquired loans

 

$

843

 

 

$

146

 

 

$

1,307

 

 

$

2,296

 

 

$

—

 

 

$

70,305

 

 

$

72,601

 

 

(1)

Past due 90 days or more but still accruing interest.

(2)

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