Loans and Leases

6 Months Ended

Jun. 30, 2013

NOTE 4. Loans and Leases

Originated loans and leases is defined to exclude loans purchased in business combinations since September 30, 2011, and purchased loans and leases is defined to include those loans and leases excluded from the definition of originated loans.

Loans and Leases, Net of Deferred Costs and Fees
				June 30,		December 31,
				2013		2012
	Commercial, financial, and agricultural			$	2,289,159	$	2,273,611
	Real estate - construction				769,722		847,781
	Real estate secured - residential				4,098,938		4,065,818
	Real estate secured - commercial				4,029,454		3,964,608
	Consumer				908,328		842,552
	Leases				1,062,161		900,371
			Total loans and leases	$	13,157,762	$	12,894,741

	Originated loans and leases			$	11,300,821	$	10,765,458
	Purchased loans and leases				1,856,941		2,129,283
			Total loans and leases	$	13,157,762	$	12,894,741

	Nonaccrual loans and leases			$	105,110	$	97,767
	Loans and leases contractually past due 90 days
		and still accruing			7,203		8,209
	Troubled debt restructurings				63,822		67,775
	Deferred origination costs, net of fees				18,756		17,763
	All overdrawn deposit accounts, reclassified
		as loans and evaluated for collectability			2,068		15,422

	A summary of our net investment in direct lease financing is presented below.

Net Investment in Direct Financing Leases
				June 30,		December 31,
				2013		2012
		Minimum lease payments receivable		$	623,276	$	568,110
		Estimated residual value of leases			516,774		409,753
		Unearned income under lease contracts			(77,889)		(77,492)
			Total leases	$	1,062,161	$	900,371

Susquehanna monitors the credit quality of its commercial loan portfolio using internal risk ratings. These risk ratings are consistent with established regulatory guidance. Loans with a Pass rating represent those not considered a problem credit. Special mention loans are those that have a potential weakness deserving management's careful attention. Substandard loans are those where a well-defined weakness has been identified that may put the complete receipt of contractual cash flows at risk. Substandard loans are placed in nonaccrual status when Susquehanna believes it is no longer probable it will collect all contractual cash flows.

Susquehanna reviews the loan gradings on an annual basis or more frequently at any time management becomes aware of the potential for not collecting all contractual cash flows. Significant credits with ratings of special mention or substandard, and associated with a relationship greater than $1.0 million, are reviewed quarterly by the Loan Review committee.

Susquehanna monitors the credit quality of its retail loan portfolio based primarily on delinquency status, which is the primary factor considered in determining whether a retail loan should be classified as nonaccrual.

The following tables present Susquehanna's credit quality indicators by internally assigned grading and by payment activity at June 30, 2013 and December 31, 2012.


Credit Quality Indicators, at June 30, 2013

	Commercial Credit Exposure
		Credit-risk Profile by Internally Assigned Grade

									Real Estate -		Total
							Real Estate -		Secured -		Commercial
					Commercial		Construction ⁽¹⁾		Commercial ⁽²⁾		Credit Exposure
Originated loans and leases
	Grade:
		Pass ⁽³⁾		$	2,017,786	$	438,951	$	3,462,770	$	5,919,507
		Special mention ⁽⁴⁾			87,745		67,495		191,664		346,904
		Substandard ⁽⁵⁾			47,720		41,990		211,745		301,455
			Total	$	2,153,251	$	548,436	$	3,866,179	$	6,567,866
Purchased loans and leases
	Grade:
		Pass ⁽³⁾		$	115,999	$	55,799	$	818,763	$	990,561
		Special mention ⁽⁴⁾			5,936		13,904		79,364		99,204
		Substandard ⁽⁵⁾			13,973		38,325		143,624		195,922
			Total	$	135,908	$	108,028	$	1,041,751	$	1,285,687
Total loans and leases
	Grade:
		Pass ⁽³⁾		$	2,133,785	$	494,750	$	4,281,533	$	6,910,068
		Special mention ⁽⁴⁾			93,681		81,399		271,028		446,108
		Substandard ⁽⁵⁾			61,693		80,315		355,369		497,377
			Total	$	2,289,159	$	656,464	$	4,907,930	$	7,853,553


	Other Credit Exposure
		Credit-risk Profile based on Payment Activity

					Real Estate -
					Secured -						Total Other
					Residential		Consumer		Leases		Credit Exposure
Originated loans and leases
	Performing			$	2,747,045	$	899,258	$	1,060,953	$	4,707,256
	Nonperforming ⁽⁶⁾				23,888		603		1,208		25,699
		Total		$	2,770,933	$	899,861	$	1,062,161	$	4,732,955

Purchased loans and leases
	Performing			$	551,803	$	8,445	$	0	$	560,248
	Nonperforming ⁽⁶⁾				10,984		22		0		11,006
		Total		$	562,787	$	8,467	$	0	$	571,254

Total loans and leases
	Performing			$	3,298,848	$	907,703	$	1,060,953	$	5,267,504
	Nonperforming ⁽⁶⁾				34,872		625		1,208		36,705
		Total		$	3,333,720	$	908,328	$	1,062,161	$	5,304,209

Credit Quality Indicators, at December 31, 2012
	Commercial Credit Exposure
		Credit-risk Profile by Internally Assigned Grade

									Real Estate -		Total
							Real Estate -		Secured -		Commercial
					Commercial		Construction ⁽¹⁾		Commercial ⁽²⁾		Credit Exposure
Originated loans and leases
	Grade:
		Pass ⁽³⁾		$	2,008,548	$	439,296	$	3,388,337	$	5,836,181
		Special mention ⁽⁴⁾			45,733		76,852		141,817		264,402
		Substandard ⁽⁵⁾			60,123		45,102		213,776		319,001
			Total	$	2,114,404	$	561,250	$	3,743,930	$	6,419,584
Purchased loans and leases
	Grade:
		Pass ⁽³⁾		$	135,308	$	95,289	$	918,119	$	1,148,716
		Special mention ⁽⁴⁾			7,685		34,519		82,021		124,225
		Substandard ⁽⁵⁾			16,214		54,162		143,629		214,005
			Total	$	159,207	$	183,970	$	1,143,769	$	1,486,946
Total loans and leases
	Grade:
		Pass ⁽³⁾		$	2,143,856	$	534,585	$	4,306,456	$	6,984,897
		Special mention ⁽⁴⁾			53,418		111,371		223,838		388,627
		Substandard ⁽⁵⁾			76,337		99,264		357,405		533,006
			Total	$	2,273,611	$	745,220	$	4,887,699	$	7,906,530

	Other Credit Exposure
		Credit-risk Profile based on Payment Activity

					Real Estate -
					Secured -						Total Other
					Residential		Consumer		Leases		Credit Exposure
Originated loans and leases
	Performing			$	2,591,349	$	830,495	$	898,781	$	4,320,625
	Nonperforming ⁽⁶⁾				23,082		577		1,590		25,249
		Total		$	2,614,431	$	831,072	$	900,371	$	4,345,874

Purchased loans and leases
	Performing			$	618,796	$	11,469	$	0	$	630,265
	Nonperforming ⁽⁶⁾				12,061		11		0		12,072
		Total		$	630,857	$	11,480	$	0	$	642,337

Total loans and leases
	Performing			$	3,210,145	$	841,964	$	898,781	$	4,950,890
	Nonperforming ⁽⁶⁾				35,143		588		1,590		37,321
		Total		$	3,245,288	$	842,552	$	900,371	$	4,988,211

⁽¹⁾	Includes only construction loans granted to commercial customers. Construction loans for individuals are included in Real Estate – Secured – Residential, below.
⁽²⁾	Includes loans obtained for commercial purposes that are also secured by residential real estate.
⁽³⁾	Includes loans identified as having acceptable risk, which are loans for which the possibility of loss is considered unlikely.
⁽⁴⁾	Includes loans considered potentially weak; however, no loss of principal or interest is anticipated.
⁽⁵⁾	Includes loans that are inadequately protected by the current net-worth and paying capacity of the borrower or by the collateral pledged, if any. Loss of principal or interest is considered reasonably possible or likely.

⁽⁶⁾	Includes loans that are on non-accrual status or past due ninety days or more.

The following tables detail the age analysis of Susquehanna's past due financing receivables as of June 30, 2013 and December 31, 2012.

Age Analysis of Past Due Financing Receivables, as of June 30, 2013

	Financing Receivables that are Accruing

												Total
		30-59 Days		60-89 Days		90 Days		Total				Financing
		Past Due		Past Due		and Greater		Past Due		Current		Receivables
Commercial		$	2,535	$	511	$	161	$	3,207	$	2,275,142	$	2,278,349
Real estate - construction			483		1,990		416		2,889		753,590		756,479
Real estate secured - residential			11,173		4,894		4,972		21,039		4,045,954		4,066,993
Real estate secured - commercial			4,342		3,517		945		8,804		3,972,640		3,981,444
Consumer			6,485		1,633		563		8,681		899,607		908,288
Leases			938		412		146		1,496		1,059,603		1,061,099
	Total	$	25,956	$	12,957	$	7,203	$	46,116	$	13,006,536	$	13,052,652

Originated loans and leases			21,464		9,809		5,294		36,567		11,171,909		11,208,476
Purchased loans and leases			4,492		3,148		1,909		9,549		1,834,627		1,844,176
	Total	$	25,956	$	12,957	$	7,203	$	46,116	$	13,006,536	$	13,052,652


	Financing Receivables that are Nonaccruing

												Total
		30-59 Days		60-89 Days		90 Days		Total				Financing
		Past Due		Past Due		and Greater		Past Due		Current		Receivables
Commercial		$	1,487	$	382	$	5,014	$	6,883	$	3,927	$	10,810
Real estate - construction			0		0		11,981		11,981		1,262		13,243
Real estate secured - residential			461		84		19,823		20,368		11,577		31,945
Real estate secured - commercial			5,439		3,936		24,464		33,839		14,171		48,010
Consumer			0		0		0		0		40		40
Leases			0		171		227		398		664		1,062
	Total	$	7,387	$	4,573	$	61,509	$	73,469	$	31,641	$	105,110

Originated loans and leases			5,177		4,573		56,712		66,462		25,883		92,345
Purchased loans and leases			2,210		0		4,797		7,007		5,758		12,765
	Total	$	7,387	$	4,573	$	61,509	$	73,469	$	31,641	$	105,110

Age Analysis of Past Due Financing Receivables, as of December 31, 2012

	Financing Receivables that are Accruing

												Total
		30-59 Days		60-89 Days		90 Days		Total				Financing
		Past Due		Past Due		and Greater		Past Due		Current		Receivables
Commercial		$	5,163	$	762	$	359	$	6,284	$	2,256,863	$	2,263,147
Real estate - construction			8,568		1,614		157		10,339		822,625		832,964
Real estate secured - residential			19,544		4,467		5,547		29,558		4,007,820		4,037,378
Real estate secured - commercial			9,623		13,746		1,394		24,763		3,897,224		3,921,987
Consumer			8,898		1,678		545		11,121		831,388		842,509
Leases			5,445		487		207		6,139		892,850		898,989
	Total	$	57,241	$	22,754	$	8,209	$	88,204	$	12,708,770	$	12,796,974

Originated loans and leases			51,679		21,471		5,720		78,870		10,596,166		10,675,036
Purchased loans and leases			5,562		1,283		2,489		9,334		2,112,604		2,121,938
	Total	$	57,241	$	22,754	$	8,209	$	88,204	$	12,708,770	$	12,796,974


	Financing Receivables that are Nonaccruing

												Total
		30-59 Days		60-89 Days		90 Days		Total				Financing
		Past Due		Past Due		and Greater		Past Due		Current		Receivables
Commercial		$	631	$	649	$	6,068	$	7,348	$	3,116	$	10,464
Real estate - construction			0		405		14,047		14,452		365		14,817
Real estate secured - residential			953		452		19,551		20,956		7,484		28,440
Real estate secured - commercial			2,483		622		30,433		33,538		9,083		42,621
Consumer			0		0		0		0		43		43
Leases			0		656		408		1,064		318		1,382
	Total	$	4,067	$	2,784	$	70,507	$	77,358	$	20,409	$	97,767

Originated loans and leases			4,067		2,379		65,830		72,276		18,146		90,422
Purchased loans and leases			0		405		4,677		5,082		2,263		7,345
	Total	$	4,067	$	2,784	$	70,507	$	77,358	$	20,409	$	97,767

The following tables provide information about Susquehanna's impaired loans, including principal balance, recorded investment, and related specific allowance amounts at the dates indicated. Loans with no specific allowance for loan losses have adequate collateral securing their carrying value and in some circumstances have been charged down to their current carrying value based on the fair value of the collateral less selling costs.

Impaired Loans at June 30, 2013
														Average
							Recorded							Recorded
					Unpaid		Investment							Investment		Interest
					Principal		in Impaired			Related		Related		in Impaired		Income
					Balance		Loans			Charge-offs		Allowance		Loans ⁽²⁾		Recognized
Impaired loans without a related reserve:
	Commercial, financial, and agricultural			$	19,583	$	19,550		$	33			$	18,184	$	215
	Real estate - construction				29,405		20,177			9,228				18,968		75
	Real estate secured - residential				40,999		39,279			1,720				25,199		329
	Real estate secured - commercial				95,120		87,228			7,892				99,398		1,617
	Consumer				114		114			0				110		2
		Total impaired loans without a
			related reserve		185,221		166,348	⁽¹⁾		18,873				161,859		2,238
Impaired loans with a related reserve:
	Commercial, financial, and agricultural				8,452		8,327			125	$	2,240		8,500		122
	Real estate - construction				12,735		4,126			8,609		1,060		4,115		5
	Real estate secured - residential				32,561		31,659			902		3,655		31,742		408
	Real estate secured - commercial				65,716		47,716			18,000		5,981		45,750		592
	Consumer				1,338		1,338			0		145		1,371		36
		Total impaired loans with a
			related reserve		120,802		93,166			27,636		13,081		91,478		1,163
Total impaired loans:
	Commercial, financial, and agricultural				28,035		27,877			158		2,240		26,684		337
	Real estate - construction				42,140		24,303			17,837		1,060		23,083		80
	Real estate secured - residential				73,560		70,938			2,622		3,655		56,941		737
	Real estate secured - commercial				160,836		134,944			25,892		5,981		145,148		2,209
	Consumer				1,452		1,452			0		145		1,481		38
			Total impaired loans	$	306,023	$	259,514		$	46,509	$	13,081	$	253,337	$	3,401

Impaired loans without a related reserve:
	Originated loans and leases			$	51,928	$	34,111		$	17,817			$	34,927	$	210
	Purchased loans and leases				133,293		132,237			1,056				126,932		2,028
		Total impaired loans without a
			related reserve		185,221		166,348			18,873				161,859		2,238
Impaired loans with a related reserve:
	Originated loans and leases				111,426		83,917			27,509	$	11,145		82,026		1,007
	Purchased loans and leases				9,376		9,249			127		1,936		9,452		156
		Total impaired loans with a
			related reserve		120,802		93,166			27,636		13,081		91,478		1,163
Total impaired loans:
	Originated loans and leases				163,354		118,028			45,326		11,145		116,953		1,217
	Purchased loans and leases ⁽³⁾				142,669		141,486			1,183		1,936		136,384		2,184
			Total impaired loans	$	306,023	$	259,514		$	46,509	$	13,081	$	253,337	$	3,401

⁽¹⁾	$19,666 of the $166,348 total impaired loans without a related reserve represents loans that had been written down to the fair value of the underlying collateral adjusted for selling costs through direct charge-offs of $18,873.

⁽²⁾	Average recorded investment in impaired loans is calculated on a quarterly basis using daily balances.
⁽³⁾	$9,249 of the $141,486 purchased impaired loans were subsequently impaired after being acquired.

Impaired Loans at December 31, 2012
														Average
							Recorded							Recorded
					Unpaid		Investment							Investment		Interest
					Principal		in Impaired			Related		Related		in Impaired		Income
					Balance		Loans			Charge-offs		Allowance		Loans ⁽²⁾		Recognized
Impaired loans without a related reserve:
	Commercial, financial, and agricultural			$	23,959	$	23,877		$	82			$	24,603	$	233
	Real estate - construction				48,394		32,717			15,677				34,223		882
	Real estate secured - residential				26,298		25,261			1,037				25,417		398
	Real estate secured - commercial				133,903		119,217			14,686				118,424		1,727
	Consumer				114		114			0				114		3
		Total impaired loans without a
			related reserve		232,668		201,186	⁽¹⁾		31,482				202,781		3,243
Impaired loans with a related reserve:
	Commercial, financial, and agricultural				4,240		4,184			56	$	3,267		4,278		47
	Real estate - construction				12,894		5,577			7,317		952		5,883		237
	Real estate secured - residential				32,640		32,375			265		6,633		32,498		333
	Real estate secured - commercial				49,322		39,331			9,991		4,884		40,778		486
	Consumer				0		0			0		0		0		0
		Total impaired loans with a
			related reserve		99,096		81,467			17,629		15,736		83,437		1,103
Total impaired loans:
	Commercial, financial, and agricultural				28,199		28,061			138		3,267		28,881		280
	Real estate - construction				61,288		38,294			22,994		952		40,106		1,119
	Real estate secured - residential				58,938		57,636			1,302		6,633		57,915		731
	Real estate secured - commercial				183,225		158,548			24,677		4,884		159,202		2,213
	Consumer				114		114			0		0		114		3
			Total impaired loans	$	331,764	$	282,653		$	49,111	$	15,736	$	286,218	$	4,346

Impaired loans without a related reserve:
	Originated loans and leases			$	76,120	$	45,560		$	30,560			$	49,975	$	764
	Purchased loans and leases				156,548		155,626			922				152,806		2,479
		Total impaired loans without a
			related reserve		232,668		201,186			31,482				202,781		3,243
Impaired loans with a related reserve:
	Originated loans and leases				92,471		74,842			17,629	$	14,649		76,823		1,033
	Purchased loans and leases				6,625		6,625			0		1,087		6,614		70
		Total impaired loans with a
			related reserve		99,096		81,467			17,629		15,736		83,437		1,103
Total impaired loans:
	Originated loans and leases				168,591		120,402			48,189		14,649		126,798		1,797
	Purchased loans and leases ⁽³⁾				163,173		162,251			922		1,087		159,420		2,549
			Total impaired loans	$	331,764	$	282,653		$	49,111	$	15,736	$	286,218	$	4,346

⁽¹⁾	$28,658 of the $201,186 total impaired loans without a related reserve represents loans that had been written down to the fair value of the underlying collateral adjusted for selling costs through direct charge-offs of $31,482.

⁽²⁾	Average recorded investment in impaired loans is calculated on a quarterly basis using daily balances.
⁽³⁾	$6,625 of the $162,251 purchased impaired loans were subsequently impaired after being acquired.

	The following table presents Troubled Debt Restructurings (TDR's), by class segment:

			June 30,		December 31,
			2013		2012
		Commercial, financial, and agricultural	$	9,200	$	8,744
		Real estate - construction		334		940
		Real estate secured - residential		23,207		23,224
		Real estate secured - commercial		29,482		33,589
		Consumer		1,599		1,278
		Total performing TDRs		63,822		67,775
		Non-performing TDRs ⁽¹⁾		20,500		24,603
		Total TDRs	$	84,322	$	92,378

		Performing TDRs		76%		73%
		Non-performing TDRs		24%		27%

⁽¹⁾	These loans are included in the 90 day past due and non-accrual categories.

	The following table provides detail of TDR balance and activity for the periods presented:

		Three months ended				Six months ended
		June 30,				June 30,
		2013		2012		2013		2012
Performing TDRs, beginning of period		$	65,773	$	72,081	$	67,775	$	72,852
	New TDR Status		7,187		1,698		25,069		16,110
	Paydowns		(1,013)		(6,171)		(3,250)		(6,217)
	Charge-offs post modification		(6,604)		(827)		(6,725)		(827)
	Transfer to nonaccrual, past due 90 days or greater		(1,212)		0		(6,042)		(4,796)
	Cured		(272)		0		(12,613)		(10,371)
	Other, net ⁽¹⁾		(37)		(4)		(392)		26
Performing TDRs, end of period		$	63,822	$	66,777	$	63,822	$	66,777

Non-performing TDRs ⁽²⁾, end of period		$	20,500	$	19,977	$	20,500	$	19,977

Performing TDRs			76%		77%		76%		77%
Non-performing TDRs			24%		23%		24%		23%

⁽¹⁾	Includes $203 transferred to OREO in 2013.
⁽²⁾	Included in Age Analysis of Past Due Financing Receivables.

The following tables summarize Susquehanna's loan modification activities that were considered troubled debt restructurings for the three and six month periods ended June 30, 2013 and 2012.

			Recorded Investment
								Financial Effect of
				Pre-Modification		Post-Modification		Modification
			Number of	Recorded		Recorded		Recorded
Three months ended June 30, 2013			Loans	Investment		Investment		Investment⁽¹⁾		Interest ⁽²⁾
Troubled Debt Restructurings
	Commercial, financial, and agricultural
		Other ⁽³⁾	11	$	1,041	$	1,041	$	0	$	0
		Combination of modification types	1		241		241		0		0
	Real estate - construction
		Other ⁽³⁾	1		117		117		0		0
		Combination of modification types	0		0		0		0		0
	Real estate secured - residential
		Other ⁽³⁾	40		2,912		2,912		0		0
		Combination of modification types	10		1,186		1,186		0		56
	Real estate secured - commercial
		Other ⁽³⁾	5		949		949		0		0
		Combination of modification types	0		0		0		0		0
	Consumer
		Other ⁽³⁾	63		741		741		0		0
		Combination of modification types	0		0		0		0		0
	Total		131	$	7,187	$	7,187	$	0	$	56

Originated loans and leases			121	$	6,458	$	6,458	$	0	$	56
Purchased loans and leases			10		729		729		0		0
	Total		131	$	7,187	$	7,187	$	0	$	56

⁽¹⁾	Financial effects impacting the recorded investment include principal payments, advances, charge-offs, and capitalized past-due amounts.
⁽²⁾	Represents the present value of interest rate concessions discounted at the effective rate of the original loan.
⁽³⁾	Bankruptcies and maturity date extensions.

					Number of		Recorded
					Loans		Investment
Troubled Debt Restructurings that Subsequently
	Defaulted during the current period
		Commercial, financial, and agricultural			5	$	6,621
		Real estate - construction			0		0
		Real estate secured - residential			5		509
		Real estate secured - commercial			0		0
		Consumer			14		66
		Total			24	$	7,196

Originated loans and leases					22	$	6,859
Purchased loans and leases					2		337
		Total			24	$	7,196

			Recorded Investment
								Financial Effect of
				Pre-Modification		Post-Modification		Modification
			Number of	Recorded		Recorded		Recorded
Three months ended June 30, 2012			Loans	Investment		Investment		Investment⁽¹⁾		Interest ⁽²⁾
Troubled Debt Restructurings
	Commercial, financial, and agricultural
		Other ⁽³⁾	1	$	22	$	22	$	0	$	0
		Combination of modification types	0		0		0		0		0
	Real estate - construction
		Other ⁽³⁾	0		0		0		0		0
		Combination of modification types	0		0		0		0		0
	Real estate secured - residential
		Other ⁽³⁾	0		0		0		0		0
		Combination of modification types	8		1,676		1,676		0		2
	Real estate secured - commercial
		Other ⁽³⁾	0		0		0		0		0
		Combination of modification types	0		0		0		0		0
	Consumer
		Other ⁽³⁾	0		0		0		0		0
		Combination of modification types	0		0		0		0		0
	Total		9	$	1,698	$	1,698	$	0	$	2

Originated loans and leases			5	$	473	$	473	$	0	$	1
Purchased loans and leases			4		1,225		1,225		0		1
	Total		9	$	1,698	$	1,698	$	0	$	2

⁽¹⁾	Financial effects impacting the recorded investment include principal payments, advances, charge-offs, and capitalized past-due amounts.
⁽²⁾	Represents the present value of interest rate concessions discounted at the effective rate of the original loan.
⁽³⁾	Bankruptcies and maturity date extensions.

	There were no troubled debt restructurings that subsequently defaulted during the three months ended June 30, 2012.

					Number of		Recorded
					Loans		Investment
Troubled Debt Restructurings that Subsequently
	Defaulted during the current period
		Commercial, financial, and agricultural			0	$	0
		Real estate - construction			0		0
		Real estate secured - residential			0		0
		Real estate secured - commercial			0		0
		Consumer			0		0
		Total			0	$	0

Originated loans and leases					0	$	0
Purchased loans and leases					0		0
		Total			0	$	0

			Recorded Investment
								Financial Effect of
				Pre-Modification		Post-Modification		Modification
			Number of	Recorded		Recorded		Recorded
Six months ended June 30, 2013			Loans	Investment		Investment		Investment⁽¹⁾		Interest ⁽²⁾
Troubled Debt Restructurings
	Commercial, financial, and agricultural
		Other ⁽³⁾	23	$	8,534	$	8,534	$	0	$	0
		Combination of modification types	1		241		241		0		0
	Real estate - construction
		Other ⁽³⁾	2		137		137		0		0
		Combination of modification types	0		0		0		0		0
	Real estate secured - residential
		Other ⁽³⁾	99		8,323		8,323		0		0
		Combination of modification types	17		2,502		2,502		0		(72)
	Real estate secured - commercial
		Other ⁽³⁾	12		2,499		2,499		0		0
		Combination of modification types	1		1,436		1,436		0		(196)
	Consumer
		Other ⁽³⁾	150		1,397		1,397		0		0
		Combination of modification types	0		0		0		0		0
	Total		305	$	25,069	$	25,069	$	0	$	(268)

Originated loans and leases			287	$	22,607	$	22,607	$	0	$	(225)
Purchased loans and leases			18		2,462		2,462		0		(43)
	Total		305	$	25,069	$	25,069	$	0	$	(268)

⁽¹⁾	Financial effects impacting the recorded investment include principal payments, advances, charge-offs, and capitalized past-due amounts.
⁽²⁾	Represents the present value of interest rate concessions discounted at the effective rate of the original loan.
⁽³⁾	Bankruptcies and maturity date extensions.

					Number of		Recorded
					Loans		Investment
Troubled Debt Restructurings that Subsequently
	Defaulted during the current period
		Commercial, financial, and agricultural			12	$	7,301
		Real estate - construction			2		137
		Real estate secured - residential			13		1,290
		Real estate secured - commercial			3		447
		Consumer			33		205
		Total			63	$	9,380

Originated loans and leases					58	$	8,843
Purchased loans and leases					5		537
		Total			63	$	9,380

			Recorded Investment
								Financial Effect of
				Pre-Modification		Post-Modification		Modification
			Number of	Recorded		Recorded		Recorded
Six months ended June 30, 2012			Loans	Investment		Investment		Investment⁽¹⁾		Interest ⁽²⁾
Troubled Debt Restructurings
	Commercial, financial, and agricultural
		Other ⁽³⁾	2	$	332	$	332	$	0	$	0
		Combination of modification types	0		0		0		0		0
	Real estate - construction
		Other ⁽³⁾	0		0		0		0		0
		Combination of modification types	0		0		0		0		0
	Real estate secured - residential
		Other ⁽³⁾	2		1,006		1,006		0		0
		Combination of modification types	16		4,110		4,110		0		8
	Real estate secured - commercial
		Other ⁽³⁾	4		10,662		10,662		0		0
		Combination of modification types	0		0		0		0		0
	Consumer
		Other ⁽³⁾	0		0		0		0		0
		Combination of modification types	0		0		0		0		0
	Total		24	$	16,110	$	16,110	$	0	$	8

Originated loans and leases			12	$	3,013	$	3,013	$	0	$	(74)
Purchased loans and leases			12		13,097		13,097		0		82
	Total		24	$	16,110	$	16,110	$	0	$	8

⁽¹⁾	Financial effects impacting the recorded investment include principal payments, advances, charge-offs, and capitalized past-due amounts.
⁽²⁾	Represents the present value of interest rate concessions discounted at the effective rate of the original loan.
⁽³⁾	Bankruptcies and maturity date extensions.

					Number of		Recorded
					Loans		Investment
Troubled Debt Restructurings that Subsequently
	Defaulted during the current period
		Commercial, financial, and agricultural			0	$	0
		Real estate - construction			1		908
		Real estate secured - residential			3		1,339
		Real estate secured - commercial			0		0
		Consumer			0		0
		Total			4	$	2,247

Originated loans and leases					3	$	1,339
Purchased loans and leases					1		908
		Total			4	$	2,247

The unpaid principal balance and the related carrying amount of acquired loans are as follows:

		June 30,		December 31,
		2013		2012
	Credit impaired purchased loans evaluated individually
	for incurred credit losses
	Unpaid principal balance	$	189,172	$	238,538
	Carrying amount		141,486		162,251

	Other purchased loans evaluated collectively for
	incurred credit losses
	Unpaid principal balance		1,719,061		1,976,132
	Carrying amount		1,715,455		1,967,032

	Total purchased loans
	Unpaid principal balance		1,908,233		2,214,670
	Carrying amount		1,856,941		2,129,283

The changes in the accretable discount related to the purchased credit impaired loans are as follows:

		Three Months Ended				Six Months Ended
		June 30,				June 30,
		2013		2012		2013		2012
Balance - beginning of period		$	58,817	$	56,799	$	62,868	$	4,881
	Tower acquisition		0		0		0		54,418
	Accretion to interest income		(5,723)		(6,272)		(12,293)		(8,772)
	Net reclassification to non-accretable from accretable ⁽¹⁾		(3,907)		0		(1,388)		0
Balance - end of period		$	49,187	$	50,527	$	49,187	$	50,527

⁽¹⁾	Resulting from decline in future interest earnings due to prepayments of performing loans.