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Loans and the Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2015
Business Acquisition [Line Items]  
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 at March 31, 2015:
 
 
Impaired
Covered
Loans
 
Other
Covered
Loans
 
Not
Covered
Loans
 
Total
Contractually-required principal and interest
$
29,901

 
$
141,917

 
$
275,703

 
$
447,521

Nonaccretable difference(1)
(22,104
)
 
(21,766
)
 
(52,137
)
 
(96,007
)
Cash flows expected to be collected
7,797

 
120,151

 
223,566

 
351,514

Accretable yield(2)
(1
)
 
(2,174
)
 
(27,913
)
 
(30,088
)
Fair value
$
7,796

 
$
117,977

 
$
195,653

 
$
321,426

 
(1)
Represents contractual principal and interest cash flows of $90,475 and $5,532, respectively, not expected to be collected.
(2)
Represents contractual interest payments of $2,354 expected to be collected and purchase discount of $27,734.
Summary of loans
The following is a summary of loans as of the dates presented:
 
 
March 31,
2015
 
December 31, 2014
Commercial, financial, agricultural
$
474,788

 
$
483,283

Lease financing
11,863

 
10,427

Real estate – construction
201,449

 
212,061

Real estate – 1-4 family mortgage
1,239,455

 
1,236,360

Real estate – commercial mortgage
1,938,994

 
1,956,914

Installment loans to individuals
87,415

 
89,142

Gross loans
3,953,964

 
3,988,187

Unearned income
(303
)
 
(313
)
Loans, net of unearned income
3,953,661

 
3,987,874

Allowance for loan losses
(42,302
)
 
(42,289
)
Net loans
$
3,911,359

 
$
3,945,585
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
March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
684

 
$
1,506

 
$
471,674

 
$
473,864

 
$
34

 
$
545

 
$
345

 
$
924

 
$
474,788

Lease financing
—

 
—

 
11,441

 
11,441

 
—

 
422

 
—

 
422

 
11,863

Real estate – construction
71

 
37

 
201,070

 
201,178

 
—

 
271

 
—

 
271

 
201,449

Real estate – 1-4 family mortgage
7,806

 
1,852

 
1,216,794

 
1,226,452

 
309

 
5,244

 
7,450

 
13,003

 
1,239,455

Real estate – commercial mortgage
9,655

 
7,417

 
1,899,224

 
1,916,296

 
1,063

 
12,714

 
8,921

 
22,698

 
1,938,994

Installment loans to individuals
366

 
17

 
86,964

 
87,347

 
—

 
59

 
9

 
68

 
87,415

Unearned income
—

 
—

 
(303
)
 
(303
)
 
—

 
—

 
—

 
—

 
(303
)
Total
$
18,582

 
$
10,829

 
$
3,886,864

 
$
3,916,275

 
$
1,406

 
$
19,255

 
$
16,725

 
$
37,386

 
$
3,953,661

December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,113

 
$
636

 
$
480,332

 
$
482,081

 
$
16

 
$
820

 
$
366

 
$
1,202

 
$
483,283

Lease financing
462

 
—

 
9,965

 
10,427

 
—

 
—

 
—

 
—

 
10,427

Real estate – construction
—

 
37

 
211,860

 
211,897

 
—

 
164

 
—

 
164

 
212,061

Real estate – 1-4 family mortgage
8,398

 
2,382

 
1,212,214

 
1,222,994

 
355

 
4,604

 
8,407

 
13,366

 
1,236,360

Real estate – commercial mortgage
6,924

 
7,637

 
1,912,758

 
1,927,319

 
1,826

 
16,928

 
10,841

 
29,595

 
1,956,914

Installment loans to individuals
269

 
21

 
88,782

 
89,072

 
—

 
59

 
11

 
70

 
89,142

Unearned income
—

 
—

 
(313
)
 
(313
)
 
—

 
—

 
—

 
—

 
(313
)
Total
$
17,166

 
$
10,713

 
$
3,915,598

 
$
3,943,477

 
$
2,197

 
$
22,575

 
$
19,625

 
$
44,397

 
$
3,987,874
Impaired loans
Impaired loans recognized in conformity with Financial Accounting Standards Board Accounting Standards Codification Topic ("ASC") 310, “Receivables” (“ASC 310”), segregated by class, were as follows as of the dates presented:
 
 
Unpaid
Contractual
Principal
Balance
 
Recorded
Investment
With
Allowance
 
Recorded
Investment
With No
Allowance
 
Total
Recorded
Investment
 
Related
Allowance
March 31, 2015
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
5,722

 
$
944

 
$
1,936

 
$
2,880

 
$
1,095

Real estate – construction
104

 
104

 
—

 
104

 
5

Real estate – 1-4 family mortgage
21,043

 
13,783

 
3,115

 
16,898

 
4,841

Real estate – commercial mortgage
78,688

 
25,267

 
24,583

 
49,850

 
4,459

Installment loans to individuals
—

 
—

 
—

 
—

 
—

Total
$
105,557

 
$
40,098

 
$
29,634

 
$
69,732

 
$
10,400

December 31, 2014
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
4,871

 
$
984

 
$
1,375

 
$
2,359

 
$
171

Real estate – construction
164

 
164

 
—

 
164

 
—

Real estate – 1-4 family mortgage
31,906

 
18,401

 
7,295

 
25,696

 
4,824

Real estate – commercial mortgage
90,196

 
29,079

 
28,784

 
57,863

 
5,767

Installment loans to individuals
397

 
21

 
51

 
72

 
—

Totals
$
127,534

 
$
48,649

 
$
37,505

 
$
86,154

 
$
10,762
Investment and interest income recognized on impaired loans
The following table presents the average recorded investment and interest income recognized on impaired loans for the periods presented:
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Three Months Ended
 
March 31, 2015
 
March 31, 2014
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
4,416

 
$
8

 
$
7,745

 
$
5

Real estate – construction
104

 
—

 
2,037

 
2

Real estate – 1-4 family mortgage
17,636

 
72

 
27,754

 
34

Real estate – commercial mortgage
55,420

 
274

 
91,277

 
64

Installment loans to individuals
—

 
—

 
—

 
—

Total
$
77,576

 
$
354

 
$
128,813

 
$
105
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
March 31, 2015
 
 
 
 
 
Commercial, financial, agricultural
2

 
$
507

 
$
489

Real estate – construction
—

 
—

 
—

Real estate – 1-4 family mortgage
51

 
6,177

 
5,402

Real estate – commercial mortgage
23

 
17,067

 
15,442

Installment loans to individuals
—

 
—

 
—

Total
76

 
$
23,751

 
$
21,333

December 31, 2014
 
 
 
 
 
Commercial, financial, agricultural
2

 
$
507

 
$
507

Real estate – construction
—

 
—

 
—

Real estate – 1-4 family mortgage
35

 
5,212

 
4,567

Real estate – commercial mortgage
16

 
10,590

 
9,263

Installment loans to individuals
—

 
—

 
—

Total
53

 
$
16,309

 
$
14,337
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, 2015
53

 
$
14,337

Additional loans with concessions
25

 
7,508

Reductions due to:
 
 
 
Reclassified as nonperforming
—

 
—

Paid in full
(2
)
 
(411
)
Charge-offs
—

 
—

Transfer to other real estate owned
—

 
—

Principal paydowns
—

 
(101
)
Lapse of concession period
—

 
—

Totals at March 31, 2015
76

 
$
21,333
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
March 31, 2015
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
333,160

 
$
6,731

 
$
2,259

 
$
342,150

Real estate – construction
142,470

 
556

 
—

 
143,026

Real estate – 1-4 family mortgage
124,635

 
3,497

 
12,981

 
141,113

Real estate – commercial mortgage
1,396,707

 
21,748

 
28,995

 
1,447,450

Installment loans to individuals
624

 
—

 
—

 
624

Total
$
1,997,596

 
$
32,532

 
$
44,235

 
$
2,074,363

December 31, 2014
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
337,998

 
$
5,255

 
$
1,451

 
$
344,704

Real estate – construction
150,683

 
855

 
—

 
151,538

Real estate – 1-4 family mortgage
122,608

 
6,079

 
11,479

 
140,166

Real estate – commercial mortgage
1,389,787

 
31,109

 
33,554

 
1,454,450

Installment loans to individuals
1,402

 
—

 
—

 
1,402

Total
$
2,002,478

 
$
43,298

 
$
46,484

 
$
2,092,260
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
March 31, 2015
 
 
 
 
 
Commercial, financial, agricultural
$
111,612

 
$
369

 
$
111,981

Lease financing
11,560

 
—

 
11,560

Real estate – construction
58,220

 
203

 
58,423

Real estate – 1-4 family mortgage
1,016,755

 
1,295

 
1,018,050

Real estate – commercial mortgage
273,285

 
1,408

 
274,693

Installment loans to individuals
83,126

 
39

 
83,165

Total
$
1,554,558

 
$
3,314

 
$
1,557,872

December 31, 2014
 
 
 
 
 
Commercial, financial, agricultural
$
114,996

 
$
179

 
$
115,175

Lease financing
10,114

 
—

 
10,114

Real estate – construction
60,323

 
200

 
60,523

Real estate – 1-4 family mortgage
1,010,645

 
2,730

 
1,013,375

Real estate – commercial mortgage
266,867

 
1,352

 
268,219

Installment loans to individuals
83,744

 
39

 
83,783

Total
$
1,546,689

 
$
4,500

 
$
1,551,189
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
March 31, 2015
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
—

 
$
3,917

 
$
16,740

 
$
20,657

Lease financing
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
420

 
42,338

 
37,534

 
80,292

Real estate – commercial mortgage
7,376

 
71,688

 
137,787

 
216,851

Installment loans to individuals
—

 
34

 
3,592

 
3,626

Total
$
7,796

 
$
117,977

 
$
195,653

 
$
321,426

December 31, 2014
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
—

 
$
6,684

 
$
16,720

 
$
23,404

Lease financing
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
420

 
43,597

 
38,802

 
82,819

Real estate – commercial mortgage
7,584

 
84,720

 
141,941

 
234,245

Installment loans to individuals
—

 
36

 
3,921

 
3,957

Total
$
8,004

 
$
135,037

 
$
201,384

 
$
344,425
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, 2015
$
(1
)
 
$
(2,623
)
 
$
(29,809
)
 
$
(32,433
)
Reclasses from nonaccretable difference
(23
)
 
(1,160
)
 
276

 
(907
)
Accretion
23

 
1,609

 
1,481

 
3,113

Chargeoff
—

 
—

 
139

 
139

Balance at March 31, 2015
$
(1
)
 
$
(2,174
)
 
$
(27,913
)
 
$
(30,088
)
Rollforward of the allowance for loan losses
The following table provides a roll forward 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
Three Months Ended March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
3,305

 
$
1,415

 
$
13,549

 
$
22,759

 
$
1,261

 
$
42,289

Charge-offs
(235
)
 
—

 
(485
)
 
(633
)
 
(50
)
 
(1,403
)
Recoveries
35

 
6

 
155

 
112

 
33

 
341

Net (charge-offs) recoveries
(200
)
 
6

 
(330
)
 
(521
)
 
(17
)
 
(1,062
)
Provision for loan losses
1,027

 
(63
)
 
618

 
(887
)
 
37

 
732

Benefit attributable to FDIC loss-share agreements
(25
)
 
—

 
—

 
(101
)
 
—

 
(126
)
Recoveries payable to FDIC
2

 
1

 
208

 
258

 
—

 
469

Provision for loan losses charged to operations
1,004

 
(62
)
 
826

 
(730
)
 
37

 
1,075

Ending balance
$
4,109

 
$
1,359

 
$
14,045

 
$
21,508

 
$
1,281

 
$
42,302

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

 
$
—

 
$
4,227

 
$
2,293

 
$
—

 
$
6,520

Collectively evaluated for impairment
2,911

 
1,359

 
9,541

 
18,102

 
1,280

 
33,193

Acquired with deteriorated credit quality
1,198

 
—

 
277

 
1,113

 
1

 
2,589

Ending balance
$
4,109

 
$
1,359

 
$
14,045

 
$
21,508

 
$
1,281

 
$
42,302

 
 
Commercial
 
Real Estate -
Construction
 
Real Estate -
1-4 Family
Mortgage
 
Real Estate  -
Commercial
Mortgage
 
Installment
and  Other(1)
 
Total
Three Months Ended March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
3,090

 
$
1,091

 
$
18,629

 
$
23,688

 
$
1,167

 
$
47,665

Charge-offs
(119
)
 
—

 
(887
)
 
(60
)
 
(231
)
 
(1,297
)
Recoveries
37

 
5

 
151

 
30

 
7

 
230

Net (charge-offs) recoveries
(82
)
 
5

 
(736
)
 
(30
)
 
(224
)
 
(1,067
)
Provision for loan losses
183

 
13

 
496

 
480

 
243

 
1,415

Benefit attributable to FDIC loss-share agreements
(68
)
 
—

 
(69
)
 
5

 
—

 
(132
)
Recoveries payable to FDIC
5

 
—

 
158

 
4

 
—

 
167

Provision for loan losses charged to operations
120

 
13

 
585

 
489

 
243

 
1,450

Ending balance
$
3,128

 
$
1,109

 
$
18,478

 
$
24,147

 
$
1,186

 
$
48,048

Period-End Amount Allocated to:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
253

 
$
—

 
$
7,285

 
$
7,724

 
$
—

 
$
15,262

Collectively evaluated for impairment
2,665

 
1,002

 
10,823

 
14,133

 
1,184

 
29,807

Acquired with deteriorated credit quality
210

 
107

 
370

 
2,290

 
2

 
2,979

Ending balance
$
3,128

 
$
1,109

 
$
18,478

 
$
24,147

 
$
1,186

 
$
48,048


(1)
Includes lease financing receivables.
Investment in loans, net of unearned income on impairment methodology
The following table provides the 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
March 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
944

 
$
104

 
$
13,783

 
$
25,267

 
$
—

 
$
40,098

Collectively evaluated for impairment
453,187

 
201,345

 
1,145,380

 
1,696,876

 
95,349

 
3,592,137

Acquired with deteriorated credit quality
20,657

 
—

 
80,292

 
216,851

 
3,626

 
321,426

Ending balance
$
474,788

 
$
201,449

 
$
1,239,455

 
$
1,938,994

 
$
98,975

 
$
3,953,661

December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
984

 
$
164

 
$
18,401

 
$
29,079

 
$
21

 
$
48,649

Collectively evaluated for impairment
458,895

 
211,897

 
1,135,140

 
1,693,590

 
95,278

 
3,594,800

Acquired with deteriorated credit quality
23,404

 
—

 
82,819

 
234,245

 
3,957

 
344,425

Ending balance
$
483,283

 
$
212,061

 
$
1,236,360

 
$
1,956,914

 
$
99,256

 
$
3,987,874

 
(1)
Includes lease financing receivables.
First M&F  
Business Acquisition [Line Items]  
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 acquired from First M&F Corporation ("First M&F") as of the September 1, 2013 acquisition date.
At acquisition date:
 
September 1, 2013
  Contractually-required principal and interest
 
$
1,112,979

  Nonaccretable difference
 
70,334

  Cash flows expected to be collected
 
1,042,645

  Accretable yield
 
143,409

      Fair value
 
$
899,236