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Loans and the Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 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 June 30, 2015:
 
 
Impaired
Covered
Loans
 
Other
Covered
Loans
 
Not
Covered
Loans
 
Total
Contractually-required principal and interest
$
35,544

 
$
122,104

 
$
245,223

 
$
402,871

Nonaccretable difference(1)
(20,180
)
 
(15,139
)
 
(52,142
)
 
(87,461
)
Cash flows expected to be collected
15,364

 
106,965

 
193,081

 
315,410

Accretable yield(2)
(6
)
 
(697
)
 
(22,607
)
 
(23,310
)
Fair value
$
15,358

 
$
106,268

 
$
170,474

 
$
292,100

 
(1)
Represents contractual principal and interest cash flows of $82,546 and $4,915, respectively, not expected to be collected.
(2)
Represents contractual interest payments of $788 expected to be collected and purchase discount of $22,522.
Summary of loans
The following is a summary of loans as of the dates presented:
 
 
June 30,
2015
 
December 31, 2014
Commercial, financial, agricultural
$
480,559

 
$
483,283

Lease financing
17,956

 
10,427

Real estate – construction
212,576

 
212,061

Real estate – 1-4 family mortgage
1,275,914

 
1,236,360

Real estate – commercial mortgage
1,962,989

 
1,956,914

Installment loans to individuals
87,533

 
89,142

Gross loans
4,037,527

 
3,988,187

Unearned income
(323
)
 
(313
)
Loans, net of unearned income
4,037,204

 
3,987,874

Allowance for loan losses
(41,888
)
 
(42,289
)
Net loans
$
3,995,316

 
$
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
June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
417

 
$
602

 
$
478,768

 
$
479,787

 
$
17

 
$
436

 
$
319

 
$
772

 
$
480,559

Lease financing
—

 
—

 
17,541

 
17,541

 
—

 
415

 
—

 
415

 
17,956

Real estate – construction
112

 
37

 
212,427

 
212,576

 
—

 
—

 
—

 
—

 
212,576

Real estate – 1-4 family mortgage
4,782

 
1,832

 
1,256,170

 
1,262,784

 
667

 
5,903

 
6,560

 
13,130

 
1,275,914

Real estate – commercial mortgage
9,205

 
5,651

 
1,926,430

 
1,941,286

 
817

 
11,224

 
9,662

 
21,703

 
1,962,989

Installment loans to individuals
389

 
48

 
87,030

 
87,467

 
8

 
58

 
—

 
66

 
87,533

Unearned income
—

 
—

 
(323
)
 
(323
)
 
—

 
—

 
—

 
—

 
(323
)
Total
$
14,905

 
$
8,170

 
$
3,978,043

 
$
4,001,118

 
$
1,509

 
$
18,036

 
$
16,541

 
$
36,086

 
$
4,037,204

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
June 30, 2015
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
3,662

 
$
1,746

 
$
72

 
$
1,818

 
$
342

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
31,118

 
18,231

 
7,607

 
25,838

 
4,454

Real estate – commercial mortgage
62,015

 
32,352

 
11,431

 
43,783

 
3,898

Installment loans to individuals
799

 
470

 
11

 
481

 
211

Total
$
97,594

 
$
52,799

 
$
19,121

 
$
71,920

 
$
8,905

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
 
June 30, 2015
 
June 30, 2014
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
1,970

 
$
7

 
$
5,279

 
$
—

Lease financing
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
2,034

 
—

Real estate – 1-4 family mortgage
27,571

 
172

 
21,747

 
170

Real estate – commercial mortgage
45,758

 
262

 
93,402

 
752

Installment loans to individuals
506

 
—

 
—

 
—

Total
$
75,805

 
$
441

 
$
122,462

 
$
922



 
Six Months Ended
 
Six Months Ended
 
June 30, 2015
 
June 30, 2014
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
2,009

 
$
15

 
$
5,382

 
$
—

Real estate – construction
—

 
—

 
2,036

 
2

Real estate – 1-4 family mortgage
27,776

 
244

 
22,122

 
204

Real estate – commercial mortgage
46,563

 
536

 
94,641

 
816

Installment loans to individuals
513

 
—

 
—

 
—

Total
$
76,861

 
$
795

 
$
124,181

 
$
1,022
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
June 30, 2015
 
 
 
 
 
Commercial, financial, agricultural
2

 
$
507

 
$
479

Real estate – construction
—

 
—

 
—

Real estate – 1-4 family mortgage
58

 
7,163

 
6,581

Real estate – commercial mortgage
22

 
16,126

 
14,958

Installment loans to individuals
—

 
—

 
—

Total
82

 
$
23,796

 
$
22,018

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
38

 
9,490

Reductions due to:
 
 
 
Reclassified as nonperforming
(1
)
 
(21
)
Paid in full
(8
)
 
(1,494
)
Principal paydowns
—

 
(294
)
Totals at June 30, 2015
82

 
$
22,018
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
June 30, 2015
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
325,883

 
$
3,686

 
$
1,122

 
$
330,691

Lease financing
—

 
—

 
415

 
415

Real estate – construction
148,161

 
635

 
—

 
148,796

Real estate – 1-4 family mortgage
126,332

 
4,079

 
12,110

 
142,521

Real estate – commercial mortgage
1,430,488

 
25,347

 
23,434

 
1,479,269

Installment loans to individuals
9

 
—

 
—

 
9

Total
$
2,030,873

 
$
33,747

 
$
37,081

 
$
2,101,701

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

 
$
5,255

 
$
1,451

 
$
344,704

Lease financing
—

 
—

 
—

 
—

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
June 30, 2015
 
 
 
 
 
Commercial, financial, agricultural
$
137,693

 
$
255

 
$
137,948

Lease financing
17,218

 
—

 
17,218

Real estate – construction
63,743

 
37

 
63,780

Real estate – 1-4 family mortgage
1,055,294

 
2,750

 
1,058,044

Real estate – commercial mortgage
280,507

 
1,514

 
282,021

Installment loans to individuals
84,322

 
70

 
84,392

Total
$
1,638,777

 
$
4,626

 
$
1,643,403

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
June 30, 2015
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
15

 
$
3,711

 
$
8,194

 
$
11,920

Lease financing
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
3,233

 
37,100

 
35,016

 
75,349

Real estate – commercial mortgage
12,110

 
65,426

 
124,163

 
201,699

Installment loans to individuals
—

 
31

 
3,101

 
3,132

Total
$
15,358

 
$
106,268

 
$
170,474

 
$
292,100

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
(45
)
 
(1,144
)
 
175

 
(1,014
)
Accretion
40

 
3,070

 
5,558

 
8,668

Chargeoff
—

 
—

 
1,469

 
1,469

Balance at June 30, 2015
$
(6
)
 
$
(697
)
 
$
(22,607
)
 
$
(23,310
)
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 June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
4,109

 
$
1,359

 
$
14,045

 
$
21,508

 
$
1,281

 
$
42,302

Charge-offs
(123
)
 
(26
)
 
(869
)
 
(1,224
)
 
(56
)
 
(2,298
)
Recoveries
104

 
7

 
215

 
357

 
26

 
709

Net charge-offs
(19
)
 
(19
)
 
(654
)
 
(867
)
 
(30
)
 
(1,589
)
Provision for loan losses
(96
)
 
(43
)
 
(130
)
 
1,078

 
30

 
839

Benefit attributable to FDIC loss-share agreements
(30
)
 
—

 
(43
)
 
(385
)
 
—

 
(458
)
Recoveries payable to FDIC
7

 
—

 
574

 
213

 
—

 
794

Provision for loan losses charged to operations
(119
)
 
(43
)
 
401

 
906

 
30

 
1,175

Ending balance
$
3,971

 
$
1,297

 
$
13,792

 
$
21,547

 
$
1,281

 
$
41,888


 
Commercial
 
Real Estate -
Construction
 
Real Estate -
1-4 Family
Mortgage
 
Real Estate  -
Commercial
Mortgage
 
Installment
and  Other(1)
 
Total
Six Months Ended June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
3,305

 
$
1,415

 
$
13,549

 
$
22,759

 
$
1,261

 
$
42,289

Charge-offs
(358
)
 
(26
)
 
(1,354
)
 
(1,857
)
 
(106
)
 
(3,701
)
Recoveries
139

 
13

 
370

 
469

 
59

 
1,050

Net charge-offs
(219
)
 
(13
)
 
(984
)
 
(1,388
)
 
(47
)
 
(2,651
)
Provision for loan losses
931

 
(106
)
 
488

 
191

 
67

 
1,571

Benefit attributable to FDIC loss-share agreements
(55
)
 
—

 
(43
)
 
(486
)
 
—

 
(584
)
Recoveries payable to FDIC
9

 
1

 
782

 
471

 
—

 
1,263

Provision for loan losses charged to operations
885

 
(105
)
 
1,227

 
176

 
67

 
2,250

Ending balance
$
3,971

 
$
1,297

 
$
13,792

 
$
21,547

 
$
1,281

 
$
41,888

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

 
$
—

 
$
4,125

 
$
1,566

 
$
211

 
$
5,902

Collectively evaluated for impairment
3,609

 
1,297

 
9,478

 
19,121

 
1,069

 
34,574

Acquired with deteriorated credit quality
362

 
—

 
189

 
860

 
1

 
1,412

Ending balance
$
3,971

 
$
1,297

 
$
13,792

 
$
21,547

 
$
1,281

 
$
41,888


 
 
Commercial
 
Real Estate -
Construction
 
Real Estate -
1-4 Family
Mortgage
 
Real Estate  -
Commercial
Mortgage
 
Installment
and  Other(1)
 
Total
Three Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
3,128

 
$
1,109

 
$
18,478

 
$
24,147

 
$
1,186

 
$
48,048

Charge-offs
—

 
—

 
(1,985
)
 
(483
)
 
(61
)
 
(2,529
)
Recoveries
75

 
3

 
206

 
28

 
23

 
335

Net (charge-offs) recoveries
75

 
3

 
(1,779
)
 
(455
)
 
(38
)
 
(2,194
)
Provision for loan losses
(95
)
 
154

 
(5,187
)
 
7,522

 
57

 
2,451

Benefit attributable to FDIC loss-share agreements
—

 
—

 
(66
)
 
(1,476
)
 
—

 
(1,542
)
Recoveries payable to FDIC
156

 
1

 
351

 
33

 
—

 
541

Provision for loan losses charged to operations
61

 
155

 
(4,902
)
 
6,079

 
57

 
1,450

Ending balance
$
3,264

 
$
1,267

 
$
11,797

 
$
29,771

 
$
1,205

 
$
47,304



 
Commercial
 
Real Estate -
Construction
 
Real Estate -
1-4 Family
Mortgage
 
Real Estate  -
Commercial
Mortgage
 
Installment
and  Other(1)
 
Total
Six Months Ended June 30, 2014
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
3,090

 
$
1,091

 
$
18,629

 
$
23,688

 
$
1,167

 
$
47,665

Charge-offs
(119
)
 
—

 
(2,872
)
 
(543
)
 
(292
)
 
(3,826
)
Recoveries
112

 
8

 
357

 
58

 
30

 
565

Net (charge-offs) recoveries
(7
)
 
8

 
(2,515
)
 
(485
)
 
(262
)
 
(3,261
)
Provision for loan losses
88

 
167

 
(4,691
)
 
8,002

 
300

 
3,866

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

 
(135
)
 
(1,471
)
 
—

 
(1,674
)
Recoveries payable to FDIC
161

 
1

 
509

 
37

 
—

 
708

Provision for loan losses charged to operations
181

 
168

 
(4,317
)
 
6,568

 
300

 
2,900

Ending balance
$
3,264

 
$
1,267

 
$
11,797

 
$
29,771

 
$
1,205

 
$
47,304

Period-End Amount Allocated to:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
245

 
$
—

 
$
2,062

 
$
8,584

 
$
—

 
$
10,891

Collectively evaluated for impairment
3,019

 
1,267

 
9,735

 
21,187

 
1,205

 
36,413

Acquired with deteriorated credit quality
—

 
—

 
—

 
—

 
—

 
—

Ending balance
$
3,264

 
$
1,267

 
$
11,797

 
$
29,771

 
$
1,205

 
$
47,304


(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
June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
765

 
$
—

 
$
17,476

 
$
23,911

 
$
438

 
$
42,590

Collectively evaluated for impairment
467,874

 
212,576

 
1,183,089

 
1,737,379

 
101,596

 
3,702,514

Acquired with deteriorated credit quality
11,920

 
—

 
75,349

 
201,699

 
3,132

 
292,100

Ending balance
$
480,559

 
$
212,576

 
$
1,275,914

 
$
1,962,989

 
$
105,166

 
$
4,037,204

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