(5) LOANS AND LEASES

The Company’s loan and lease portfolio is disaggregated into the following segments: commercial and industrial; real estate; credit card; and all other loans and leases. The real estate segment is further disaggregated into the following classes: consumer mortgage; home equity; agricultural; commercial and industrial-owner occupied; construction, acquisition and development and commercial. A summary of gross loans and leases by segment and class at December 31, 2013 and 2012 follows:


	2013	2012
	(In thousands)

Commercial and industrial	$ 1,538,302	$ 1,484,788
Real estate
Consumer mortgages	1,976,073	1,873,875
Home equity	494,339	486,074
Agricultural	234,576	256,196
Commercial and industrial-owner occupied	1,473,320	1,333,103
Construction, acquisition and development	741,458	735,808
Commercial real estate	1,846,039	1,748,881
Credit cards	111,328	104,884
All other	578,453	649,143
Total gross loans and leases	$ 8,993,888	$ 8,672,752

The following table shows the Company’s loans and leases, net of unearned income, as of December 31, 2013 by geographical location:


	Alabama				Greater			Corporate
	and Florida				Memphis		Texas and	Banking
	Panhandle	Arkansas*	Mississippi*	Missouri	Area	Tennessee*	Louisiana	and Other	Total
	(In thousands)
Commercial and industrial	$ 83,078	$ 164,113	$ 280,964	$ 36,018	$ 23,551	$ 81,253	$ 266,358	$ 593,914	$ 1,529,249
Real estate
Consumer mortgages	127,619	260,013	688,228	61,471	101,167	158,714	487,931	90,930	1,976,073
Home equity	64,438	39,785	165,421	20,997	67,170	70,517	64,027	1,984	494,339
Agricultural	8,416	71,200	58,042	3,575	14,547	11,129	63,155	4,512	234,576
Commercial and industrial-owner occupied	176,162	173,027	472,646	64,911	91,790	88,710	282,816	123,258	1,473,320
Construction, acquisition and development	99,980	70,508	190,990	28,024	80,339	101,782	134,551	35,284	741,458
Commercial real estate	266,963	311,504	275,601	212,869	93,079	104,034	425,933	156,056	1,846,039
Credit cards**	-	-	-	-	-	-	-	111,328	111,328
All other	32,101	59,247	147,163	2,590	48,056	39,404	86,039	137,033	551,633
Total	$ 858,757	$ 1,149,397	$ 2,279,055	$ 430,455	$ 519,699	$ 655,543	$ 1,810,810	$ 1,254,299	$ 8,958,015

*Excludes the Greater Memphis Area

**Credit card receivables are spread across all geographic regions but are not viewed by the Company’s management as part of the geographic breakdown.

The Company’s loan concentrations which exceed 10% of total loans are reflected in the preceding tables. A substantial portion of construction, acquisition and development loans are secured by real estate in markets in which the Company is located. The Company’s loan policy generally prohibits the use of interest reserves on loans made after March 2010. Certain of the construction, acquisition and development loans were structured with interest-only terms. A portion of the consumer mortgage and commercial real estate portfolios originated through the permanent financing of construction, acquisition and development loans. The prolonged economic downturn has negatively impacted many borrowers’ and guarantors’ ability to make payments under the terms of the loans as their liquidity has been depleted. Accordingly, the ultimate collectability of a substantial portion of these loans and the recovery of a substantial portion of the carrying amount of OREO are susceptible to changes in real estate values in these areas. Continued economic distress could negatively impact additional borrowers’ and guarantors’ ability to repay their debt which will make more of the Company’s loans collateral dependent.

The following tables provide details regarding the aging of the Company’s loan and lease portfolio, net of unearned income, at December 31, 2013 and 2012:


	2013
							90+ Days
	30-59 Days	60-89 Days	90+ Days	Total		Total	Past Due still
	Past Due	Past Due	Past Due	Past Due	Current	Outstanding	Accruing
	(In thousands)
Commercial and industrial	$ 3,122	$ 310	$ 601	$ 4,033	$ 1,525,216	$ 1,529,249	$ 27
Real estate
Consumer mortgages	12,244	4,703	12,579	29,526	1,946,547	1,976,073	888
Home equity	1,860	869	740	3,469	490,870	494,339	-
Agricultural	319	206	883	1,408	233,168	234,576	-
Commercial and industrial-owner occupied	4,256	1,230	4,585	10,071	1,463,249	1,473,320	-
Construction, acquisition and development	2,557	2,658	7,005	12,220	729,238	741,458	-
Commercial real estate	5,597	321	2,539	8,457	1,837,582	1,846,039	311
Credit cards	455	235	350	1,040	110,288	111,328	-
All other	1,985	296	264	2,545	549,088	551,633	-
Total	$ 32,395	$ 10,828	$ 29,546	$ 72,769	$ 8,885,246	$ 8,958,015	$ 1,226


	2012
							90+ Days
	30-59 Days	60-89 Days	90+ Days	Total		Total	Past Due still
	Past Due	Past Due	Past Due	Past Due	Current	Outstanding	Accruing
	(In thousands)
Commercial and industrial	$ 3,531	$ 476	$ 4,118	$ 8,125	$ 1,468,486	$ 1,476,611	$ 414
Real estate
Consumer mortgages	11,308	3,643	13,821	28,772	1,845,103	1,873,875	512
Home equity	1,337	371	350	2,058	484,016	486,074	-
Agricultural	400	287	3,946	4,633	251,563	256,196	10
Commercial and industrial-owner occupied	2,629	3,587	2,933	9,149	1,323,954	1,333,103	19
Construction, acquisition and development	2,547	2,472	14,790	19,809	715,999	735,808	-
Commercial real estate	4,673	56	10,469	15,198	1,733,683	1,748,881	-
Credit cards	536	379	473	1,388	103,496	104,884	228
All other	2,354	253	445	3,052	618,505	621,557	27
Total	$ 29,315	$ 11,524	$ 51,345	$ 92,184	$ 8,544,805	$ 8,636,989	$ 1,210

The Company utilizes an internal loan classification system to grade loans according to certain credit quality indicators. These credit quality indicators include, but are not limited to, recent credit performance, delinquency, liquidity, cash flows, debt coverage ratios, collateral type and loan-to-value ratio. The Company’s internal loan classification system is compatible with classifications used by the FDIC, as well as other regulatory agencies. Loans may be classified as follows:

Pass: Loans which are performing as agreed with few or no signs of weakness. These loans show sufficient cash flow, capital and collateral to repay the loan as agreed.

Special Mention: Loans where potential weaknesses have developed which could cause a more serious problem if not corrected.

Substandard: Loans where well-defined weaknesses exist that require corrective action to prevent further deterioration.

Doubtful: Loans having all the characteristics of Substandard and which have deteriorated to a point where collection and liquidation in full is highly questionable.

Loss: Loans that are considered uncollectible or with limited possible recovery.

Impaired: Loans for which it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement and for which a specific impairment reserve has been considered.

The following tables provide details of the Company’s loan and lease portfolio, net of unearned income, by segment, class and internally assigned grade at December 31, 2013 and 2012:


	December 31, 2013
		Special
	Pass	Mention	Substandard	Doubtful	Loss	Impaired	Total
	(In thousands)
Commercial and industrial	$ 1,495,972	$ 978	$ 30,886	$ 99	$ -	$ 1,314	$ 1,529,249
Real estate
Consumer mortgage	1,859,094	1,531	108,615	427	-	6,406	1,976,073
Home equity	478,283	250	14,570	96	-	1,140	494,339
Agricultural	214,728	779	18,187	-	-	882	234,576
Commercial and industrial-owner occupied	1,409,757	116	50,853	849	-	11,745	1,473,320
Construction, acquisition and development	674,299	1,459	49,401	587	-	15,712	741,458
Commercial real estate	1,751,553	386	76,199	420	-	17,481	1,846,039
Credit cards	111,328	-	-	-	-	-	111,328
All other	538,467	71	12,832	-	-	263	551,633
Total	$ 8,533,481	$ 5,570	$ 361,543	$ 2,478	$ -	$ 54,943	$ 8,958,015


	December 31, 2012
		Special
	Pass	Mention	Substandard	Doubtful	Loss	Impaired	Total
	(In thousands)
Commercial and industrial	$ 1,426,498	$ 14,663	$ 29,876	$ 729	$ -	$ 4,845	$ 1,476,611
Real estate
Consumer mortgage	1,691,682	32,840	131,141	2,907	198	15,107	1,873,875
Home equity	461,151	4,791	17,619	1,057	76	1,380	486,074
Agricultural	227,138	5,729	17,947	-	-	5,382	256,196
Commercial and industrial-owner occupied	1,202,111	31,087	82,816	369	-	16,720	1,333,103
Construction, acquisition and development	567,881	30,846	75,031	715	-	61,335	735,808
Commercial real estate	1,524,262	53,455	120,591	160	-	50,413	1,748,881
Credit cards	104,884	-	-	-	-	-	104,884
All other	600,807	8,397	10,196	601	10	1,546	621,557
Total	$ 7,806,414	$ 181,808	$ 485,217	$ 6,538	$ 284	$ 156,728	$ 8,636,989

Loans considered impaired under FASB ASC 310 are loans for which, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement. The Company’s recorded investment in loans considered impaired at December 31, 2013 and 2012 was $54.9 million and $156.7 million, respectively. At December 31, 2013 and 2012, $11.0 million and $41.0 million, respectively, of those impaired loans had a valuation allowance of $4.1 million and $10.5 million, respectively. The remaining balance of impaired loans of $44.0 million and $115.7 million at December 31, 2013 and 2012, respectively, were charged down to the underlying collateral’s fair value, less estimated selling costs, which approximated net realizable value. Therefore, such loans did not have an associated valuation allowance. Impaired loans that were characterized as TDRs totaled $19.1 million and $47.3 million at December 31, 2013 and 2012, respectively. The average recorded investment in impaired loans during 2013 and 2012 was $103.5 million and $196.9 million, respectively.

The following tables provide details regarding impaired loans and leases, net of unearned income, by segment and class at December 31, 2013 and 2012:


	December 31, 2013
		Unpaid
	Recorded	Principal	Related
	Investment	Balance of	Allowance	Average	Interest
	in Impaired	Impaired	for Credit	Recorded	Income
	Loans	Loans	Losses	Investment	Recognized
	(In thousands)
With no related allowance:
Commercial and industrial	$ 1,314	$ 1,314	$ -	$ 2,578	$ 16
Real estate
Consumer mortgage	5,744	6,591	-	8,943	54
Home equity	712	712	-	933	5
Agricultural	882	1,472	-	3,286	4
Commercial and industrial-owner occupied	9,938	12,681	-	8,150	76
Construction, acquisition and development	11,549	13,497	-	25,877	103
Commercial real estate	13,562	23,233	-	24,185	173
All other	263	405	-	655	6
Total	$ 43,964	$ 59,905	$ -	$ 74,607	$ 437

With an allowance:
Commercial and industrial	$ -	$ -	$ 305	$ 590	$ -
Real estate
Consumer mortgage	662	662	309	3,417	31
Home equity	428	428	37	444	3
Agricultural	-	-	15	402	2
Commercial and industrial-owner occupied	1,807	1,807	739	4,735	54
Construction, acquisition and development	4,163	5,393	1,599	7,989	67
Commercial real estate	3,919	3,919	1,138	11,280	51
All other	-	-	4	-	-
Total	$ 10,979	$ 12,209	$ 4,146	$ 28,857	$ 208

Total:
Commercial and industrial	$ 1,314	$ 1,314	$ 305	$ 3,168	$ 16
Real estate
Consumer mortgage	6,406	7,253	309	12,360	85
Home equity	1,140	1,140	37	1,377	8
Agricultural	882	1,472	15	3,688	6
Commercial and industrial-owner occupied	11,745	14,488	739	12,885	130
Construction, acquisition and development	15,712	18,890	1,599	33,866	170
Commercial real estate	17,481	27,152	1,138	35,465	224
All other	263	405	4	655	6
Total	$ 54,943	$ 72,114	$ 4,146	$ 103,464	$ 645


	December 31, 2012
		Unpaid
	Recorded	Principal	Related
	Investment	Balance of	Allowance	Average	Interest
	in Impaired	Impaired	for Credit	Recorded	Income
	Loans	Loans	Losses	Investment	Recognized
	(In thousands)
With no related allowance:
Commercial and industrial	$ 2,557	$ 4,169	$ -	$ 2,779	$ 12
Real estate
Consumer mortgage	11,307	15,464	-	11,762	77
Home equity	934	1,078	-	858	6
Agricultural	4,435	6,292	-	3,527	8
Commercial and industrial-owner occupied	13,018	16,551	-	12,674	123
Construction, acquisition and development	47,982	69,331	-	54,085	324
Commercial real estate	33,952	45,722	-	19,824	199
All other	1,544	2,165	-	848	9
Total	$ 115,729	$ 160,772	$ -	$ 106,357	$ 758

With an allowance:
Commercial and industrial	$ 2,288	$ 2,288	$ 1,241	$ 5,368	$ 38
Real estate
Consumer mortgage	3,800	3,914	1,103	10,323	88
Home equity	446	446	111	569	5
Agricultural	947	947	92	1,468	12
Commercial and industrial-owner occupied	3,702	4,737	864	9,977	65
Construction, acquisition and development	13,353	16,257	4,350	45,582	377
Commercial real estate	16,461	16,709	2,720	16,953	204
All other	2	2	60	324	3
Total	$ 40,999	$ 45,300	$ 10,541	$ 90,564	$ 792

Total:
Commercial and industrial	$ 4,845	$ 6,457	$ 1,241	$ 8,147	$ 50
Real estate
Consumer mortgage	15,107	19,378	1,103	22,085	165
Home equity	1,380	1,524	111	1,427	11
Agricultural	5,382	7,239	92	4,995	20
Commercial and industrial-owner occupied	16,720	21,288	864	22,651	188
Construction, acquisition and development	61,335	85,588	4,350	99,667	701
Commercial real estate	50,413	62,431	2,720	36,777	403
All other	1,546	2,167	60	1,172	12
Total	$ 156,728	$ 206,072	$ 10,541	$ 196,921	$ 1,550

The following tables provide details regarding impaired loans and leases, net of unearned income, which include accruing TDRs, by segment and class at December 31, 2013 and 2012:


	December 31, 2013
		Unpaid
	Recorded	Principal	Related
	Investment	Balance of	Allowance	Average	Interest
	in Impaired	Impaired	for Credit	Recorded	Income
	Loans	Loans	Losses	Investment	Recognized
	(In thousands)
With no related allowance:
Commercial and industrial	$ 1,314	$ 1,314	$ -	$ 2,579	$ 16
Real estate
Consumer mortgage	5,744	6,591	-	8,943	54
Home equity	712	712	-	933	5
Agricultural	882	1,472	-	3,286	4
Commercial and industrial-owner occupied	9,938	12,681	-	8,150	76
Construction, acquisition and development	11,549	13,497	-	25,877	103
Commercial real estate	13,562	23,233	-	24,185	173
All other	263	405	-	655	6
Total	$ 43,964	$ 59,905	$ -	$ 74,608	$ 437

With an allowance:
Commercial and industrial	$ 937	$ 937	$ 415	$ 975	$ 14
Real estate
Consumer mortgage	4,151	4,378	771	6,921	164
Home equity	438	438	-	444	2
Agricultural	625	639	43	871	21
Commercial and industrial-owner occupied	9,590	9,997	1,371	11,895	350
Construction, acquisition and development	10,897	13,933	1,554	15,181	320
Commercial real estate	12,619	12,887	1,604	15,140	224
Credit cards	1,639	1,639	51	2,018	202
All other	1,307	1,310	198	646	24
Total	$ 42,203	$ 46,158	$ 6,007	$ 54,091	$ 1,321

Total:
Commercial and industrial	$ 2,251	$ 2,251	$ 415	$ 3,554	$ 30
Real estate
Consumer mortgage	9,895	10,969	771	15,864	218
Home equity	1,150	1,150	-	1,377	7
Agricultural	1,507	2,111	43	4,157	25
Commercial and industrial-owner occupied	19,528	22,678	1,371	20,045	426
Construction, acquisition and development	22,446	27,430	1,554	41,058	423
Commercial real estate	26,181	36,120	1,604	39,325	397
Credit cards	1,639	1,639	51	2,018	202
All other	1,570	1,715	198	1,301	30
Total	$ 86,167	$ 106,063	$ 6,007	$ 128,699	$ 1,758


	December 31, 2012
		Unpaid
	Recorded	Principal	Related
	Investment	Balance of	Allowance	Average	Interest
	in Impaired	Impaired	for Credit	Recorded	Income
	Loans	Loans	Losses	Investment	Recognized
	(In thousands)
With no related allowance:
Commercial and industrial	$ 2,557	$ 4,169	$ -	$ 2,779	$ 12
Real estate
Consumer mortgage	11,307	15,464	-	11,762	77
Home equity	934	1,078	-	858	6
Agricultural	4,435	6,292	-	3,527	8
Commercial and industrial-owner occupied	13,018	16,551	-	12,674	123
Construction, acquisition and development	47,982	69,331	-	54,085	324
Commercial real estate	33,952	45,722	-	19,824	199
All other	1,544	2,165	-	848	9
Total	$ 115,729	$ 160,772	$ -	$ 106,357	$ 758

With an allowance:
Commercial and industrial	$ 2,489	$ 2,489	$ 1,253	$ 6,001	$ 70
Real estate
Consumer mortgage	9,004	9,451	1,506	14,938	262
Home equity	446	446	111	569	5
Agricultural	1,392	1,392	128	1,934	26
Commercial and industrial-owner occupied	12,102	13,352	1,250	17,246	411
Construction, acquisition and development	19,587	22,963	4,414	52,062	641
Commercial real estate	24,855	26,294	3,297	29,668	847
Credit cards	2,397	2,397	75	2,581	258
All other	2,835	2,976	311	3,656	144
Total	$ 75,107	$ 81,760	$ 12,345	$ 128,655	$ 2,664

Total:
Commercial and industrial	$ 5,046	$ 6,658	$ 1,253	$ 8,780	$ 82
Real estate
Consumer mortgage	20,311	24,915	1,506	26,700	339
Home equity	1,380	1,524	111	1,427	11
Agricultural	5,827	7,684	128	5,461	34
Commercial and industrial-owner occupied	25,120	29,903	1,250	29,920	534
Construction, acquisition and development	67,569	92,294	4,414	106,147	965
Commercial real estate	58,807	72,016	3,297	49,492	1,046
Credit cards	2,397	2,397	75	2,581	258
All other	4,379	5,141	311	4,504	153
Total	$ 190,836	$ 242,532	$ 12,345	$ 235,012	$ 3,422

The following tables provide details regarding impaired real estate construction, acquisition and development loans and leases, net of unearned income, by collateral type at December 31, 2013 and 2012:


	December 31, 2013
		Unpaid
	Recorded	Principal	Related
	Investment	Balance of	Allowance	Average	Interest
	in Impaired	Impaired	for Credit	Recorded	Income
	Loans	Loans	Losses	Investment	Recognized
	(In thousands)
With no related allowance:
Multi-family construction	$ -	$ -	$ -	$ -	$ -
One-to-four family construction	2,530	2,855	-	5,022	27
Recreation and all other loans	728	773	-	837	1
Commercial construction	34	34	-	1,564	1
Commercial acquisition and development	6,243	7,058	-	9,176	47
Residential acquisition and development	2,014	2,777	-	9,278	27
Total	$ 11,549	$ 13,497	$ -	$ 25,877	$ 103

With an allowance:
Multi-family construction	$ -	$ -	$ -	$ -	$ -
One-to-four family construction	-	-	-	459	3
Recreation and all other loans	-	-	-	-	-
Commercial construction	831	1,461	-	818	11
Commercial acquisition and development	-	-	-	1,316	10
Residential acquisition and development	3,332	3,932	1,599	5,396	43
Total	$ 4,163	$ 5,393	$ 1,599	$ 7,989	$ 67

Total:
Multi-family construction	$ -	$ -	$ -	$ -	$ -
One-to-four family construction	2,530	2,855	-	5,481	30
Recreation and all other loans	728	773	-	837	1
Commercial construction	865	1,495	-	2,382	12
Commercial acquisition and development	6,243	7,058	-	10,492	57
Residential acquisition and development	5,346	6,709	1,599	14,674	70
Total	$ 15,712	$ 18,890	$ 1,599	$ 33,866	$ 170


	December 31, 2012
		Unpaid
	Recorded	Principal	Related
	Investment	Balance of	Allowance	Average	Interest
	in Impaired	Impaired	for Credit	Recorded	Income
	Loans	Loans	Losses	Investment	Recognized
	(In thousands)
With no related allowance:
Multi-family construction	$ -	$ -	$ -	$ -	$ -
One-to-four family construction	8,475	13,586	-	8,070	53
Recreation and all other loans	1,117	1,335	-	623	5
Commercial construction	5,714	6,646	-	3,585	51
Commercial acquisition and development	13,753	15,786	-	12,145	63
Residential acquisition and development	18,923	31,978	-	29,662	152
Total	$ 47,982	$ 69,331	$ -	$ 54,085	$ 324

With an allowance:
Multi-family construction	$ -	$ -	$ -	$ -	$ -
One-to-four family construction	1,130	1,475	290	4,094	29
Recreation and all other loans	-	-	-	69	-
Commercial construction	-	-	-	1,255	15
Commercial acquisition and development	1,711	1,960	563	9,206	74
Residential acquisition and development	10,512	12,822	3,497	30,958	259
Total	$ 13,353	$ 16,257	$ 4,350	$ 45,582	$ 377

Total:
Multi-family construction	$ -	$ -	$ -	$ -	$ -
One-to-four family construction	9,605	15,061	290	12,164	82
Recreation and all other loans	1,117	1,335	-	692	5
Commercial construction	5,714	6,646	-	4,840	66
Commercial acquisition and development	15,464	17,746	563	21,351	137
Residential acquisition and development	29,435	44,800	3,497	60,620	411
Total	$ 61,335	$ 85,588	$ 4,350	$ 99,667	$ 701

The following tables provide details regarding impaired real estate construction, acquisition and development loans and leases, net of unearned income, which include accruing TDRs, by collateral type at December 31, 2013 and 2012:


	December 31, 2013
		Unpaid
	Recorded	Principal	Related
	Investment	Balance of	Allowance	Average	Interest
	in Impaired	Impaired	for Credit	Recorded	Income
	Loans	Loans	Losses	Investment	Recognized
	(In thousands)
With no related allowance:
Multi-family construction	$ -	$ -	$ -	$ -	$ -
One-to-four family construction	2,530	2,855	-	5,022	27
Recreation and all other loans	728	773	-	837	1
Commercial construction	34	34	-	1,564	1
Commercial acquisition and development	6,243	7,058	-	9,176	47
Residential acquisition and development	2,014	2,777	-	9,278	27
Total	$ 11,549	$ 13,497	$ -	$ 25,877	$ 103

With an allowance:
Multi-family construction	$ -	$ -	$ -	$ -	$ -
One-to-four family construction	1,274	1,710	33	1,088	25
Recreation and all other loans	13	13	1	16	1
Commercial construction	1,176	1,806	4	1,022	23
Commercial acquisition and development	1,990	1,990	37	3,824	85
Residential acquisition and development	6,444	8,414	1,479	9,231	186
Total	$ 10,897	$ 13,933	$ 1,554	$ 15,181	$ 320

Total:
Multi-family construction	$ -	$ -	$ -	$ -	$ -
One-to-four family construction	3,804	4,565	33	6,110	52
Recreation and all other loans	741	786	1	853	2
Commercial construction	1,210	1,840	4	2,586	24
Commercial acquisition and development	8,233	9,048	37	13,000	132
Residential acquisition and development	8,458	11,191	1,479	18,509	213
Total	$ 22,446	$ 27,430	$ 1,554	$ 41,058	$ 423


	December 31, 2012
		Unpaid
	Recorded	Principal	Related
	Investment	Balance of	Allowance	Average	Interest
	in Impaired	Impaired	for Credit	Recorded	Income
	Loans	Loans	Losses	Investment	Recognized
	(In thousands)
With no related allowance:
Multi-family construction	$ -	$ -	$ -	$ -	$ -
One-to-four family construction	8,475	13,586	-	8,070	53
Recreation and all other loans	1,117	1,335	-	623	5
Commercial construction	5,714	6,646	-	3,585	51
Commercial acquisition and development	13,753	15,786	-	12,145	63
Residential acquisition and development	18,923	31,978	-	29,662	152
Total	$ 47,982	$ 69,331	$ -	$ 54,085	$ 324

With an allowance:
Multi-family construction	$ -	$ -	$ -	$ -	$ -
One-to-four family construction	1,911	2,308	304	4,883	58
Recreation and all other loans	17	17	1	569	25
Commercial construction	-	-	-	1,578	33
Commercial acquisition and development	3,023	3,272	590	11,282	167
Residential acquisition and development	14,636	17,366	3,519	33,750	358
Total	$ 19,587	$ 22,963	$ 4,414	$ 52,062	$ 641

Total:
Multi-family construction	$ -	$ -	$ -	$ -	$ -
One-to-four family construction	10,386	15,894	304	12,953	111
Recreation and all other loans	1,134	1,352	1	1,192	30
Commercial construction	5,714	6,646	-	5,163	84
Commercial acquisition and development	16,776	19,058	590	23,427	230
Residential acquisition and development	33,559	49,344	3,519	63,412	510
Total	$ 67,569	$ 92,294	$ 4,414	$ 106,147	$ 965

NPLs consist of non-accrual loans and leases, loans and leases 90 days or more past due and still accruing, and loans and leases that have been restructured because of the borrower's weakened financial condition. The following table presents information concerning NPLs at December 31, 2013 and 2012:


	2013	2012
	(In thousands)
Non-accrual loans and leases	$ 92,173	$ 207,241
Loans and leases 90 days or more past due, still accruing	1,226	1,210
Restructured loans and leases still accruing	27,007	25,099
Total	$ 120,406	$ 233,550

The Bank’s policy for all loan classifications provides that loans and leases are generally placed in non-accrual status if, in management’s opinion, payment in full of principal or interest is not expected or payment of principal or interest is more than 90 days past due, unless the loan or lease is both well-secured and in the process of collection. At December 31, 2013, the Company’s geographic NPL distribution was concentrated primarily in its Alabama, Mississippi and Tennessee markets, including the greater Memphis, Tennessee area, a portion of which is in northwest Mississippi and Arkansas. The following table presents the Company’s nonaccrual loans and leases by segment and class at December 31, 2013 and 2012:


	2013	2012
	(In thousands)
Commercial and industrial	$ 3,079	$ 9,311
Real estate
Consumer mortgages	25,645	36,133
Home equity	3,695	3,497
Agricultural	1,260	7,587
Commercial and industrial-owner occupied	18,568	20,910
Construction, acquisition and development	17,567	66,635
Commercial real estate	20,972	57,656
Credit cards	119	415
All other	1,268	5,097
Total	$ 92,173	$ 207,241

The total amount of interest earned on NPLs was $6.2 million, $4.3 million and $12.6 million in 2013, 2012 and 2011, respectively. The gross interest income which would have been recorded under the original terms of those loans and leases amounted to $7.3 million, $15.6 million and $18.7 million in 2013, 2012 and 2011, respectively.

In the normal course of business, management will sometimes grant concessions, which normally would not otherwise be considered, to borrowers that are experiencing financial difficulty. Restructured loans identified as meeting the criteria set out in FASB ASC 310 are identified as TDRs. The concessions granted most frequently for TDRs involve reductions or delays in required payments of principal and interest for a specified period, the rescheduling of payments in accordance with a bankruptcy plan or the charge-off of a portion of the loan. In most cases, the conditions of the credit also warrant nonaccrual status, even after the restructure occurs. As part of the credit approval process, the restructured loans are evaluated for adequate collateral protection in determining the appropriate accrual status at the time of restructure. TDR loans recorded as non-accrual may be returned to accrual status in years after the restructure if there has been at least a six-month period of sustained repayment performance by the borrower under the restructured loan terms and the interest rate at the time of restructure was at or above market for a comparable loan. During 2013, the most common concessions that were granted involved rescheduling payments of principal and interest over a longer amortization period, granting a period of reduced principal payment or interest only payment for a limited time period, or the rescheduling of payments in accordance with a bankruptcy plan.

The following tables summarize the financial effect of TDRs for the years ended December 31, 2013 and 2012:


	December 31, 2013
		Pre-Modification	Post-Modification
	Number	Outstanding	Outstanding
	of	Recorded	Recorded
	Contracts	Investment	Investment
	(Dollars in thousands)
Commercial and industrial	3	$ 919	$ 919
Real estate
Consumer mortgages	23	1,843	1,840
Home Equity	2	25	10
Commercial and industrial-owner occupied	8	3,821	3,815
Construction, acquisition and development	15	3,071	2,826
Commercial real estate	4	1,574	1,570
All other	5	1,160	1,161
Total	60	$ 12,413	$ 12,141


	December 31, 2012
		Pre-Modification	Post-Modification
	Number	Outstanding	Outstanding
	of	Recorded	Recorded
	Contracts	Investment	Investment
	(Dollars in thousands)
Commercial and industrial	8	$ 1,686	$ 1,348
Real estate
Consumer mortgages	38	9,875	9,109
Agricultural	2	853	861
Commercial and industrial-owner occupied	30	14,367	13,741
Construction, acquisition and development	37	21,583	21,159
Commercial real estate	12	8,159	8,132
All other	9	1,855	1,692
Total	136	$ 58,378	$ 56,042

The following tables summarize TDRs modified during 2013 and 2012 for which there was a payment default (i.e., 30 days or more past due at any given time during 2013 or 2012):


	Year Ended December 31, 2013
	Number of	Recorded
	Contracts	Investment
	(Dollars in thousands)
Commercial and industrial	3	$ 129
Real estate
Consumer mortgages	9	823
Commercial and industrial-owner occupied	6	877
Construction, acquisition and development	3	1,874
Commercial real estate	4	3,625
All other	1	1
Total	26	$ 7,329


	Year Ended December 31, 2012
	Number of	Recorded
	Contracts	Investment
	(Dollars in thousands)
Commercial and industrial	2	$ 179
Real estate
Consumer mortgages	18	2,096
Agricultural	1	170
Commercial and industrial-owner occupied	11	2,659
Construction, acquisition and development	21	5,503
Commercial real estate	4	2,525
All other	1	7
Total	58	$ 13,139