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Loans and the Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2013
Receivables [Abstract]  
Summary of loans
The following is a summary of loans at December 31:
 
 
2013
 
2012
Commercial, financial, agricultural
$
468,963

 
$
317,050

Lease financing
53

 
195

Real estate – construction
161,436

 
105,706

Real estate – 1-4 family mortgage
1,208,233

 
903,423

Real estate – commercial mortgage
1,950,572

 
1,426,643

Installment loans to individuals
91,762

 
57,241

Gross loans
3,881,019

 
2,810,258

Unearned income
(1
)
 
(5
)
Loans, net of unearned income
3,881,018

 
2,810,253

Allowance for loan losses
(47,665
)
 
(44,347
)
Net loans
$
3,833,353

 
$
2,765,906
Past due and nonaccrual loans
The following table provides an aging of past due and nonaccrual loans, segregated by class, as of the dates presented:
 
 
Accruing Loans
 
Nonaccruing Loans
 
30-89 Days
Past Due
 
90 Days
or More
Past Due
 
Current
Loans
 
Total
Loans
 
30-89 Days
Past Due
 
90 Days
or More
Past Due
 
Current
Loans
 
Total
Loans
 
Total
Loans
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
2,067

 
$
607

 
$
463,521

 
$
466,195

 
$
138

 
$
1,959

 
$
671

 
$
2,768

 
$
468,963

Lease financing
—

 
—

 
53

 
53

 
—

 
—

 
—

 
—

 
53

Real estate – construction
664

 
—

 
159,124

 
159,788

 
—

 
1,648

 
—

 
1,648

 
161,436

Real estate – 1-4 family mortgage
10,168

 
2,206

 
1,179,703

 
1,192,077

 
1,203

 
6,041

 
8,912

 
16,156

 
1,208,233

Real estate – commercial mortgage
8,870

 
1,286

 
1,888,745

 
1,898,901

 
966

 
37,439

 
13,266

 
51,671

 
1,950,572

Installment loans to individuals
706

 
88

 
90,880

 
91,674

 
—

 
80

 
8

 
88

 
91,762

Unearned income
—

 
—

 
(1
)
 
(1
)
 
—

 
—

 
—

 
—

 
(1
)
Total
$
22,475

 
$
4,187

 
$
3,782,025

 
$
3,808,687

 
$
2,307

 
$
47,167

 
$
22,857

 
$
72,331

 
$
3,881,018

December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
484

 
$
15

 
$
312,943

 
$
313,442

 
$
215

 
$
3,131

 
$
262

 
$
3,608

 
$
317,050

Lease financing
—

 
—

 
195

 
195

 
—

 
—

 
—

 
—

 
195

Real estate – construction
80

 
—

 
103,978

 
104,058

 
—

 
1,648

 
—

 
1,648

 
105,706

Real estate – 1-4 family mortgage
6,685

 
1,992

 
867,053

 
875,730

 
1,249

 
13,417

 
13,027

 
27,693

 
903,423

Real estate – commercial mortgage
5,084

 
1,250

 
1,373,470

 
1,379,804

 
325

 
38,297

 
8,217

 
46,839

 
1,426,643

Installment loans to individuals
197

 
50

 
56,715

 
56,962

 
7

 
265

 
7

 
279

 
57,241

Unearned income
—

 
—

 
(5
)
 
(5
)
 
—

 
—

 
—

 
—

 
(5
)
Total
$
12,530

 
$
3,307

 
$
2,714,349

 
$
2,730,186

 
$
1,796

 
$
56,758

 
$
21,513

 
$
80,067

 
$
2,810,253
Impaired loans
Impaired loans recognized in conformity with ASC 310, segregated by class, were as follows as of the dates and periods presented: 
 
December 31, 2013
 
Year Ended
December 31, 2013
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized(1)
With a related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
743

 
$
664

 
$
260

 
$
430

 
$
1

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
25,374

 
27,659

 
7,353

 
29,247

 
682

Real estate – commercial mortgage
30,624

 
32,274

 
7,036

 
31,424

 
1,001

Installment loans to individuals
183

 
183

 
1

 
185

 
3

Total
$
56,924

 
$
60,780

 
$
14,650

 
$
61,286

 
$
1,687

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
2,043

 
$
5,911

 
$
—

 
$
4,668

 
$
—

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
1,648

 
2,447

 
—

 
1,650

 
—

Real estate – 1-4 family mortgage
8,542

 
15,209

 
—

 
10,903

 
28

Real estate – commercial mortgage
38,517

 
76,688

 
—

 
44,995

 
105

Installment loans to individuals
77

 
437

 
—

 
254

 
—

Total
$
50,827

 
$
100,692

 
$
—

 
$
62,470

 
$
133

Totals
$
107,751

 
$
161,472

 
$
14,650

 
$
123,756

 
$
1,820

 
December 31, 2012
 
Year Ended
December 31, 2012
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized(1)
With a related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,620

 
$
1,767

 
$
708

 
$
1,771

 
$
7

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
28,848

 
31,079

 
9,201

 
31,300

 
922

Real estate – commercial mortgage
34,400

 
36,603

 
7,688

 
39,189

 
1,413

Installment loans to individuals
—

 
—

 
—

 
—

 
—

Total
$
64,868

 
$
69,449

 
$
17,597

 
$
72,260

 
$
2,342

With no related allowance recorded:
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,620

 
$
3,375

 
$
—

 
$
1,716

 
$
37

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
1,648

 
2,447

 
—

 
1,813

 
—

Real estate – 1-4 family mortgage
10,094

 
48,943

 
—

 
15,611

 
603

Real estate – commercial mortgage
39,450

 
81,564

 
—

 
45,950

 
926

Installment loans to individuals
—

 
—

 
—

 
—

 
—

Total
$
52,812

 
$
136,329

 
$
—

 
$
65,090

 
$
1,566

Totals
$
117,680

 
$
205,778

 
$
17,597

 
$
137,350

 
$
3,908

(1) 
Includes interest income recognized using the cash-basis method of income recognition of $0 and $1,801, respectively.
Restructured loans
The following table presents restructured loans segregated by class as of the dates presented:
 
 
Number of
Loans
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
December 31, 2013
 
 
 
 
 
Commercial, financial, agricultural
1

 
$
20

 
$
19

Lease financing
—

 
—

 
—

Real estate – construction
—

 
—

 
—

Real estate – 1-4 family mortgage
23

 
19,371

 
10,354

Real estate – commercial mortgage
16

 
12,785

 
10,934

Installment loans to individuals
1

 
182

 
171

Total
41

 
$
32,358

 
$
21,478

December 31, 2012
 
 
 
 
 
Commercial, financial, agricultural
—

 
$
—

 
$
—

Lease financing
—

 
—

 
—

Real estate – construction
—

 
—

 
—

Real estate – 1-4 family mortgage
19

 
18,450

 
10,853

Real estate – commercial mortgage
16

 
18,985

 
18,409

Installment loans to individuals
1

 
184

 
174

Total
36

 
$
37,619

 
$
29,436
Changes in restructured loans
Changes in the Company’s restructured loans are set forth in the table below.

 
Number of
Loans
 
Recorded
Investment
Totals at January 1, 2012
31

 
$
36,311

Additional loans with concessions
14

 
5,943

Reductions due to:
 
 
 
Reclassified as nonperforming
(5
)
 
(8,058
)
Charge-offs
(1
)
 
(1,682
)
Transfer to other real estate owned
(1
)
 
(419
)
Principal paydowns
 
 
(1,808
)
Lapse of concession period
(2
)
 
(851
)
Totals at December 31, 2012
36

 
$
29,436

Additional loans with concessions
13

 
4,336

Reductions due to:
 
 
 
Reclassified as nonperforming
(2
)
 
(3,227
)
Charge-offs
(3
)
 
(1,301
)
Transfer to other real estate owned
—

 
—

Principal paydowns
—

 
(2,025
)
Lapse of concession period
(3
)
 
(5,741
)
Totals at December 31, 2013
41

 
$
21,478
Loan portfolio by risk-rating grades
The following table presents the Company’s loan portfolio by risk-rating grades as of the dates presented:
 
 
Pass
 
Watch
 
Substandard
 
Total
December 31, 2013
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
328,959

 
$
10,588

 
$
4,266

 
$
343,813

Real estate – construction
114,428

 
588

 
—

 
115,016

Real estate – 1-4 family mortgage
126,916

 
13,864

 
23,370

 
164,150

Real estate – commercial mortgage
1,338,340

 
32,892

 
35,121

 
1,406,353

Installment loans to individuals
19

 
—

 
—

 
19

Total
$
1,908,662

 
$
57,932

 
$
62,757

 
$
2,029,351

December 31, 2012
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
226,540

 
$
1,939

 
$
3,218

 
$
231,697

Real estate – construction
71,633

 
651

 
—

 
72,284

Real estate – 1-4 family mortgage
96,147

 
24,138

 
32,589

 
152,874

Real estate – commercial mortgage
989,095

 
46,148

 
37,996

 
1,073,239

Installment loans to individuals
7

 
—

 
—

 
7

Total
$
1,383,422

 
$
72,876

 
$
73,803

 
$
1,530,101
Loan portfolio not subject to risk rating
The following table presents the performing status of the Company’s loan portfolio not subject to risk rating as of the dates presented:
 
 
Performing
 
Non-Performing
 
Total
December 31, 2013
 
 
 
 
 
Commercial, financial, agricultural
$
89,490

 
$
176

 
$
89,666

Lease financing
53

 
—

 
53

Real estate – construction
43,535

 
—

 
43,535

Real estate – 1-4 family mortgage
938,994

 
2,527

 
941,521

Real estate – commercial mortgage
242,363

 
666

 
243,029

Installment loans to individuals
84,855

 
79

 
84,934

Total
$
1,399,290

 
$
3,448

 
$
1,402,738

December 31, 2012
 
 
 
 
 
Commercial, financial, agricultural
$
74,003

 
$
210

 
$
74,213

Lease financing
195

 
—

 
195

Real estate – construction
31,774

 
—

 
31,774

Real estate – 1-4 family mortgage
670,074

 
5,328

 
675,402

Real estate – commercial mortgage
195,086

 
449

 
195,535

Installment loans to individuals
54,918

 
91

 
55,009

Total
$
1,026,050

 
$
6,078

 
$
1,032,128
Loans acquired with deteriorated credit quality
Loans acquired in business combinations that exhibited, at the date of acquisition, evidence of deterioration of the credit quality since origination, such that it was probable that all contractually required payments would not be collected, were as follows as of the dates presented:
 
 
Impaired
Covered
Loans
 
Other
Covered
Loans
 
Not
Covered
Loans
 
Total
December 31, 2013
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
—

 
$
9,546

 
$
25,938

 
$
35,484

Lease financing
—

 
—

 
—

 
—

Real estate – construction
—

 
1,648

 
1,237

 
2,885

Real estate – 1-4 family mortgage
835

 
53,631

 
48,096

 
102,562

Real estate – commercial mortgage
23,684

 
92,302

 
185,204

 
301,190

Installment loans to individuals
—

 
28

 
6,781

 
6,809

Total
$
24,519

 
$
157,155

 
$
267,256

 
$
448,930

December 31, 2012
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
—

 
$
10,800

 
$
340

 
$
11,140

Lease financing
—

 
—

 
—

 
—

Real estate – construction
—

 
1,648

 
—

 
1,648

Real estate – 1-4 family mortgage
6,122

 
67,326

 
1,699

 
75,147

Real estate – commercial mortgage
25,782

 
125,379

 
6,708

 
157,869

Installment loans to individuals
—

 
31

 
2,194

 
2,225

Total
$
31,904

 
$
205,184

 
$
10,941

 
$
248,029
Fair value of loans determined to be impaired and not to be impaired at the time of acquisition
The following table presents the fair value of loans determined to be impaired at the time of acquisition and determined not to be impaired at the time of acquisition as of the dates presented:
 
 
Impaired
Covered
Loans
 
Other
Covered
Loans
 
Not
Covered
Loans
 
Total
December 31, 2013
 
 
 
 
 
 
 
Contractually-required principal and interest
$
67,976

 
$
201,215

 
$
354,234

 
$
623,425

Nonaccretable difference(1)
(43,456
)
 
(40,301
)
 
(50,788
)
 
(134,545
)
Cash flows expected to be collected
24,520

 
160,914

 
303,446

 
488,880

Accretable yield(2)
(1
)
 
(3,759
)
 
(36,190
)
 
(39,950
)
Fair value
$
24,519

 
$
157,155

 
$
267,256

 
$
448,930

December 31, 2012
 
 
 
 
 
 
 
Contractually-required principal and interest
$
109,054

 
$
264,406

 
$
13,253

 
$
386,713

Nonaccretable difference(1)
(77,137
)
 
(52,517
)
 
(1,182
)
 
(130,836
)
Cash flows expected to be collected
31,917

 
211,889

 
12,071

 
255,877

Accretable yield(2)
(13
)
 
(6,705
)
 
(1,130
)
 
(7,848
)
Fair value
$
31,904

 
$
205,184

 
$
10,941

 
$
248,029

 
(1) 
Represents contractual principal cash flows of $125,086 and $120,572, respectively, and interest cash flows of $9,459 and $10,264, respectively, not expected to be collected.
(2) 
Represents contractual interest payments expected to be collected of $3,936 and $4,945, respectively, and purchase discount of $36,014 and $2,903, respectively.
Changes in accretable yield of loans acquired with deteriorated credit quality
Changes in the accretable yield of loans acquired with deteriorated credit quality were as follows:
 
 
Impaired
Covered
Loans
 
Other
Covered
Loans
 
Not
Covered
Loans
 
Total
Balance at January 1, 2012
$
(40
)
 
$
(9,757
)
 
$
(746
)
 
$
(10,543
)
Additions through acquisition
—

 
—

 
—

 
—

Reclasses from nonaccretable difference
(1,055
)
 
(12,178
)
 
(1,937
)
 
(15,170
)
Accretion
1,082

 
15,230

 
1,553

 
17,865

Balance at December 31, 2012
$
(13
)
 
$
(6,705
)
 
$
(1,130
)
 
$
(7,848
)
Additions through acquisition
—

 
—

 
(37,555
)
 
(37,555
)
Reclasses from nonaccretable difference
(115
)
 
(6,741
)
 
(712
)
 
(7,568
)
Accretion
127

 
9,688

 
3,206

 
13,021

Balance at December 31, 2013
$
(1
)
 
$
(3,758
)
 
$
(36,191
)
 
$
(39,950
)
Rollforward of the allowance for loan losses
The following table provides a rollforward of the allowance for loan losses and a breakdown of the ending balance of the allowance based on the Company’s impairment methodology for the periods presented:
 
 
Commercial
 
Real Estate  -
Construction
 
Real Estate -
1-4 Family
Mortgage
 
Real Estate  -
Commercial
Mortgage
 
Installment
and Other(1)
 
Total
Year Ended December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
3,307

 
$
711

 
$
18,347

 
$
21,416

 
$
566

 
$
44,347

Charge-offs
(1,184
)
 
—

 
(3,093
)
 
(4,782
)
 
(492
)
 
(9,551
)
Recoveries
356

 
75

 
1,044

 
980

 
64

 
2,519

Net charge-offs
(828
)
 
75

 
(2,049
)
 
(3,802
)
 
(428
)
 
(7,032
)
Provision for loan losses
982

 
304

 
2,496

 
6,927

 
1,029

 
11,738

Benefit attributable to FDIC loss-share agreements
(403
)
 
—

 
(1,039
)
 
(919
)
 
—

 
(2,361
)
Recoveries payable to FDIC
32

 
1

 
874

 
66

 
—

 
973

Provision for loan losses charged to operations
611

 
305

 
2,331

 
6,074

 
1,029

 
10,350

Ending balance
$
3,090

 
$
1,091

 
$
18,629

 
$
23,688

 
$
1,167

 
$
47,665

Period-End Amount Allocated to:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
260

 
$
—

 
$
7,353

 
$
7,036

 
$
1

 
$
14,650

Collectively evaluated for impairment
2,830

 
1,091

 
11,276

 
16,652

 
1,166

 
33,015

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

Ending balance
$
3,090

 
$
1,091

 
$
18,629

 
$
23,688

 
$
1,167

 
$
47,665

 
Commercial
 
Real Estate  -
Construction
 
Real Estate -
1-4 Family
Mortgage
 
Real Estate  -
Commercial
Mortgage
 
Installment
and Other(1)
 
Total
Year Ended December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
4,197

 
$
1,073

 
$
17,191

 
$
20,979

 
$
900

 
$
44,340

Charge-offs
(4,923
)
 
(187
)
 
(9,231
)
 
(5,828
)
 
(386
)
 
(20,555
)
Recoveries
531

 
34

 
1,330

 
455

 
87

 
2,437

Net charge-offs
(4,392
)
 
(153
)
 
(7,901
)
 
(5,373
)
 
(299
)
 
(18,118
)
Provision for loan losses
4,274

 
(121
)
 
13,201

 
10,938

 
(20
)
 
28,272

Benefit attributable to FDIC loss-share agreements
(777
)
 
(88
)
 
(4,326
)
 
(5,202
)
 
(15
)
 
(10,408
)
Recoveries payable to FDIC
5

 
—

 
182

 
74

 
—

 
261

Provision for loan losses charged to operations
3,502

 
(209
)
 
9,057

 
5,810

 
(35
)
 
18,125

Ending balance
$
3,307

 
$
711

 
$
18,347

 
$
21,416

 
$
566

 
$
44,347

Period-End Amount Allocated to:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
708

 
$
—

 
$
9,201

 
$
7,688

 
$
—

 
$
17,597

Collectively evaluated for impairment
2,599

 
711

 
9,146

 
13,728

 
566

 
26,750

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

Ending balance
$
3,307

 
$
711

 
$
18,347

 
$
21,416

 
$
566

 
$
44,347

Year Ended December 31, 2011
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
2,625

 
$
2,115

 
$
20,870

 
$
18,779

 
$
1,026

 
$
45,415

Charge-offs
(2,037
)
 
(836
)
 
(16,755
)
 
(5,792
)
 
(373
)
 
(25,793
)
Recoveries
272

 
110

 
767

 
1,056

 
163

 
2,368

Net charge-offs
(1,765
)
 
(726
)
 
(15,988
)
 
(4,736
)
 
(210
)
 
(23,425
)
Provision for loan losses
3,464

 
(316
)
 
12,900

 
8,289

 
90

 
24,427

Benefit attributable to FDIC loss-share agreements
(132
)
 
—

 
(597
)
 
(1,353
)
 
(6
)
 
(2,088
)
Recoveries payable to FDIC
5

 
—

 
6

 
—

 
—

 
11

Provision for loan losses charged to operations
$
3,337

 
$
(316
)
 
$
12,309

 
$
6,936

 
$
84

 
$
22,350

Ending balance
$
4,197

 
$
1,073

 
$
17,191

 
$
20,979

 
$
900

 
$
44,340

Period-End Amount Allocated to:


 


 


 


 


 


Individually evaluated for impairment
$
1,441

 
$
16

 
$
6,077

 
$
7,876

 
$
—

 
$
15,410

Collectively evaluated for impairment
2,756

 
1,057

 
11,114

 
13,103

 
900

 
28,930

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

Ending balance
$
4,197

 
$
1,073

 
$
17,191

 
$
20,979

 
$
900

 
$
44,340

(1) 
 Includes lease financing receivables.
Investment in loans, net of unearned income on impairment methodology
The following table provides recorded investment in loans, net of unearned income, based on the Company’s impairment methodology as of the dates presented:
 
 
Commercial
 
Real Estate  -
Construction
 
Real Estate -
1-4 Family
Mortgage
 
Real Estate  -
Commercial
Mortgage
 
Installment
and Other(1)
 
Total
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
743

 
$
—

 
$
25,374

 
$
30,624

 
$
183

 
$
56,924

Collectively evaluated for impairment
432,736

 
158,551

 
1,080,297

 
1,618,758

 
84,822

 
3,375,164

Acquired with deteriorated credit quality
35,484

 
2,885

 
102,562

 
301,190

 
6,809

 
448,930

Ending balance
$
468,963

 
$
161,436

 
$
1,208,233

 
$
1,950,572

 
$
91,814

 
$
3,881,018

December 31, 2012
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,620

 
$
—

 
$
28,848

 
$
34,400

 
$
—

 
$
64,868

Collectively evaluated for impairment
304,290

 
104,058

 
799,428

 
1,234,374

 
55,206

 
2,497,356

Acquired with deteriorated credit quality
11,140

 
1,648

 
75,147

 
157,869

 
2,225

 
248,029

Ending balance
$
317,050

 
$
105,706

 
$
903,423

 
$
1,426,643

 
$
57,431

 
$
2,810,253

 
(1) 
Includes lease financing receivables.
Related Party Loans
A summary of the changes in related party loans follows:
 
Loans at December 31, 2012
$
21,869

New loans and advances
15,630

Payments received
(2,435
)
Changes in related parties
(306
)
Loans at December 31, 2013
$
34,758