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Loans and the Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2016
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, 2016:
 
 
Covered
Loans
 
Not
Covered
Loans
 
Total
Contractually-required principal and interest
$
38,534

 
$
415,174

 
$
453,708

Nonaccretable difference(1)
(5,121
)
 
(77,697
)
 
(82,818
)
Cash flows expected to be collected
33,413

 
337,477

 
370,890

Accretable yield(2)
(2,769
)
 
(43,112
)
 
(45,881
)
Fair value
$
30,644

 
$
294,365

 
$
325,009

 
(1)
Represents contractual principal and interest cash flows of $82,618 and $201, respectively, not expected to be collected.
(2)
Represents contractual interest payments of $2,278 expected to be collected and purchase discount of $43,603.
Impaired loans
Loans accounted for under Financial Accounting Standards Board Accounting Standards Codification Topic (“ASC”) 310-20 “Nonrefundable Fees and Other Cost” (“ASC 310-20”) and are impaired loans recognized in conformity with 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, 2016
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
328

 
$
321

 
$
—

 
$
321

 
$
6

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
—

 
—

 
—

Real estate – 1-4 family mortgage
16,052

 
14,786

 
—

 
14,786

 
4,311

Real estate – commercial mortgage
20,067

 
16,450

 
—

 
16,450

 
3,082

Installment loans to individuals
67

 
67

 
—

 
67

 
—

Total
$
36,514

 
$
31,624

 
$
—

 
$
31,624

 
$
7,399

December 31, 2015
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,308

 
$
358

 
$
12

 
$
370

 
$
6

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
2,710

 
2,698

 
—

 
2,698

 
20

Real estate – 1-4 family mortgage
18,193

 
16,650

 
—

 
16,650

 
4,475

Real estate – commercial mortgage
20,169

 
16,819

 
—

 
16,819

 
3,099

Installment loans to individuals
90

 
90

 
—

 
90

 
—

Totals
$
42,470

 
$
36,615

 
$
12

 
$
36,627

 
$
7,600
Investment and interest income recognized on impaired loans
The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-20 and are impaired loans for the periods presented:
 
 
 
 
 
 
 
 
 
Three Months Ended
 
Three Months Ended
 
March 31, 2016
 
March 31, 2015
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
326

 
$
2

 
$
950

 
$
7

Lease financing
—

 
—

 
—

 
—

Real estate – construction
—

 
—

 
104

 
—

Real estate – 1-4 family mortgage
15,252

 
90

 
13,886

 
67

Real estate – commercial mortgage
16,547

 
132

 
25,618

 
177

Installment loans to individuals
67

 
1

 
—

 
—

Total
$
32,192

 
$
225

 
$
40,558

 
$
251
Summary of loans
The following is a summary of loans as of the dates presented:
 
 
March 31,
2016
 
December 31, 2015
Commercial, financial, agricultural
$
654,934

 
$
636,837

Lease financing
43,605

 
35,978

Real estate – construction
377,574

 
357,665

Real estate – 1-4 family mortgage
1,777,495

 
1,735,323

Real estate – commercial mortgage
2,607,510

 
2,533,729

Installment loans to individuals
113,280

 
115,093

Gross loans
5,574,398

 
5,414,625

Unearned income
(1,668
)
 
(1,163
)
Loans, net of unearned income
5,572,730

 
5,413,462

Allowance for loan losses
(42,859
)
 
(42,437
)
Net loans
$
5,529,871

 
$
5,371,025
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, 2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,297

 
$
1,404

 
$
651,749

 
$
654,450

 
$
—

 
$
236

 
$
248

 
$
484

 
$
654,934

Lease financing
—

 
—

 
43,605

 
43,605

 
—

 
—

 
—

 
—

 
43,605

Real estate – construction
898

 
242

 
376,434

 
377,574

 
—

 
—

 
—

 
—

 
377,574

Real estate – 1-4 family mortgage
8,785

 
6,783

 
1,751,451

 
1,767,019

 
254

 
2,256

 
7,966

 
10,476

 
1,777,495

Real estate – commercial mortgage
6,962

 
9,057

 
2,575,720

 
2,591,739

 
10

 
1,318

 
14,443

 
15,771

 
2,607,510

Installment loans to individuals
406

 
157

 
112,682

 
113,245

 
—

 
28

 
7

 
35

 
113,280

Unearned income
—

 
—

 
(1,668
)
 
(1,668
)
 
—

 
—

 
—

 
—

 
(1,668
)
Total
$
18,348

 
$
17,643

 
$
5,509,973

 
$
5,545,964

 
$
264

 
$
3,838

 
$
22,664

 
$
26,766

 
$
5,572,730

December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
1,296

 
$
1,077

 
$
634,037

 
$
636,410

 
$
30

 
$
133

 
$
264

 
$
427

 
$
636,837

Lease financing
—

 
—

 
35,978

 
35,978

 
—

 
—

 
—

 
—

 
35,978

Real estate – construction
69

 
176

 
357,420

 
357,665

 
—

 
—

 
—

 
—

 
357,665

Real estate – 1-4 family mortgage
9,196

 
6,457

 
1,707,230

 
1,722,883

 
528

 
3,663

 
8,249

 
12,440

 
1,735,323

Real estate – commercial mortgage
4,849

 
8,581

 
2,504,192

 
2,517,622

 
568

 
2,263

 
13,276

 
16,107

 
2,533,729

Installment loans to individuals
260

 
102

 
114,671

 
115,033

 
—

 
53

 
7

 
60

 
115,093

Unearned income
—

 
—

 
(1,163
)
 
(1,163
)
 
—

 
—

 
—

 
—

 
(1,163
)
Total
$
15,670

 
$
16,393

 
$
5,352,365

 
$
5,384,428

 
$
1,126

 
$
6,112

 
$
21,796

 
$
29,034

 
$
5,413,462
Restructured loans
The following tables illustrate the impact of modifications classified as restructured loans and are segregated by class for the periods presented:
 
 
Number of
Loans
 
Pre-
Modification
Outstanding
Recorded
Investment
 
Post-
Modification
Outstanding
Recorded
Investment
March 31, 2016
 
 
 
 
 
Commercial, financial, agricultural
—

 
$
—

 
$
—

Real estate – construction
—

 
—

 
—

Real estate – 1-4 family mortgage
10

 
780

 
662

Real estate – commercial mortgage
2

 
612

 
605

Installment loans to individuals
—

 
—

 
—

Total
12

 
$
1,392

 
$
1,267

March 31, 2015
 
 
 
 
 
Commercial, financial, agricultural
—

 
$
—

 
$
—

Real estate – construction
—

 
—

 
—

Real estate – 1-4 family mortgage
17

 
1,198

 
1,037

Real estate – commercial mortgage
8

 
6,899

 
6,463

Installment loans to individuals
—

 
—

 
—

Total
25

 
$
8,097

 
$
7,500
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, 2016
86

 
$
13,453

Additional loans with concessions
12

 
1,267

Reductions due to:
 
 
 
Reclassified as nonperforming
(2
)
 
(134
)
Paid in full
(4
)
 
(398
)
Charge-offs
—

 
—

Transfer to other real estate owned
—

 
—

Principal paydowns
—

 
(142
)
Lapse of concession period
—

 
—

       Reclassified as performing
—

 
—

Totals at March 31, 2016
92

 
$
14,046
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, 2016
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
463,922

 
$
9,302

 
$
1,988

 
$
475,212

Lease financing
—

 
—

 
—

 
—

Real estate – construction
289,169

 
679

 
—

 
289,848

Real estate – 1-4 family mortgage
287,219

 
8,102

 
12,112

 
307,433

Real estate – commercial mortgage
2,029,759

 
21,322

 
22,509

 
2,073,590

Installment loans to individuals
75

 
—

 
116

 
191

Total
$
3,070,144

 
$
39,405

 
$
36,725

 
$
3,146,274

December 31, 2015
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
465,185

 
$
8,498

 
$
1,734

 
$
475,417

Lease financing
—

 
—

 
—

 
—

Real estate – construction
273,398

 
483

 
—

 
273,881

Real estate – 1-4 family mortgage
275,269

 
9,712

 
15,460

 
300,441

Real estate – commercial mortgage
1,968,352

 
27,175

 
20,683

 
2,016,210

Installment loans to individuals
51

 
—

 
5

 
56

Total
$
2,982,255

 
$
45,868

 
$
37,882

 
$
3,066,005
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, 2016
 
 
 
 
 
Commercial, financial, agricultural
$
165,137

 
$
135

 
$
165,272

Lease financing
41,937

 
—

 
41,937

Real estate – construction
85,153

 
69

 
85,222

Real estate – 1-4 family mortgage
1,377,078

 
4,020

 
1,381,098

Real estate – commercial mortgage
316,594

 
737

 
317,331

Installment loans to individuals
110,467

 
120

 
110,587

Total
$
2,096,366

 
$
5,081

 
$
2,101,447

December 31, 2015
 
 
 
 
 
Commercial, financial, agricultural
$
144,838

 
$
93

 
$
144,931

Lease financing
34,815

 
—

 
34,815

Real estate – construction
81,035

 
—

 
81,035

Real estate – 1-4 family mortgage
1,340,356

 
2,877

 
1,343,233

Real estate – commercial mortgage
294,042

 
867

 
294,909

Installment loans to individuals
112,275

 
94

 
112,369

Total
$
2,007,361

 
$
3,931

 
$
2,011,292
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:
 
 
Covered
Loans
 
Not
Covered
Loans
 
Total
March 31, 2016
 
 
 
 
 
Commercial, financial, agricultural
$
232

 
$
14,218

 
$
14,450

Lease financing
—

 
—

 
—

Real estate – construction
85

 
2,419

 
2,504

Real estate – 1-4 family mortgage
26,612

 
62,352

 
88,964

Real estate – commercial mortgage
3,679

 
212,910

 
216,589

Installment loans to individuals
36

 
2,466

 
2,502

Total
$
30,644

 
$
294,365

 
$
325,009

December 31, 2015
 
 
 
 
 
Commercial, financial, agricultural
$
1,759

 
$
14,730

 
$
16,489

Lease financing
—

 
—

 
—

Real estate – construction
91

 
2,658

 
2,749

Real estate – 1-4 family mortgage
31,354

 
60,295

 
91,649

Real estate – commercial mortgage
33,726

 
188,884

 
222,610

Installment loans to individuals
43

 
2,625

 
2,668

Total
$
66,973

 
$
269,192

 
$
336,165
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:
 
 
Covered
Loans
 
Not
Covered
Loans
 
Total
Balance at January 1, 2016
$
(3,700
)
 
$
(44,592
)
 
$
(48,292
)
Additions due to acquisition
725

 
(725
)
 
—

Reclasses from nonaccretable difference
(213
)
 
(1,134
)
 
(1,347
)
Accretion
391

 
3,339

 
3,730

Charge-offs
28

 
—

 
28

Balance at March 31, 2016
$
(2,769
)
 
$
(43,112
)
 
$
(45,881
)
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, 2016
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
4,186

 
$
1,852

 
$
13,908

 
$
21,111

 
$
1,380

 
$
42,437

Charge-offs
(657
)
 
—

 
(116
)
 
(1,001
)
 
(180
)
 
(1,954
)
Recoveries
53

 
6

 
395

 
92

 
30

 
576

Net (charge-offs) recoveries
(604
)
 
6

 
279

 
(909
)
 
(150
)
 
(1,378
)
Provision for loan losses
601

 
85

 
365

 
530

 
198

 
1,779

Benefit attributable to FDIC loss-share agreements
(15
)
 
—

 
(37
)
 
(118
)
 
—

 
(170
)
Recoveries payable to FDIC
3

 
—

 
27

 
161

 
—

 
191

Provision for loan losses charged to operations
589

 
85

 
355

 
573

 
198

 
1,800

Ending balance
$
4,171

 
$
1,943

 
$
14,542

 
$
20,775

 
$
1,428

 
$
42,859

Period-End Amount Allocated to:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
6

 
$
—

 
$
4,311

 
$
3,082

 
$
—

 
$
7,399

Collectively evaluated for impairment
3,743

 
1,943

 
9,896

 
16,429

 
1,427

 
33,438

Acquired with deteriorated credit quality
422

 
—

 
335

 
1,264

 
1

 
2,022

Ending balance
$
4,171

 
$
1,943

 
$
14,542

 
$
20,775

 
$
1,428

 
$
42,859


 
 
 
 
 
 
 
 
 
 
 
 
 

 
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



(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, 2016
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
321

 
$
—

 
$
14,786

 
$
16,450

 
$
67

 
$
31,624

Collectively evaluated for impairment
640,163

 
375,070

 
1,673,745

 
2,374,471

 
152,648

 
5,216,097

Acquired with deteriorated credit quality
14,450

 
2,504

 
88,964

 
216,589

 
2,502

 
325,009

Ending balance
$
654,934

 
$
377,574

 
$
1,777,495

 
$
2,607,510

 
$
155,217

 
$
5,572,730

December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
370

 
$
2,698

 
$
16,650

 
$
16,819

 
$
90

 
$
36,627

Collectively evaluated for impairment
619,978

 
352,218

 
1,627,024

 
2,294,300

 
147,150

 
5,040,670

Acquired with deteriorated credit quality
16,489

 
2,749

 
91,649

 
222,610

 
2,668

 
336,165

Ending balance
$
636,837

 
$
357,665

 
$
1,735,323

 
$
2,533,729

 
$
149,908

 
$
5,413,462

 
(1)
Includes lease financing receivables.
Receivables Acquired with Deteriorated Credit Quality  
Business Acquisition [Line Items]  
Impaired loans
Loans accounted for under ASC 310-30 “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”) and are impaired loans recognized in conformity with 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, 2016
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
24,323

 
$
4,807

 
$
9,643

 
$
14,450

 
$
422

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
2,635

 
—

 
2,504

 
2,504

 
—

Real estate – 1-4 family mortgage
107,167

 
16,573

 
72,391

 
88,964

 
335

Real estate – commercial mortgage
279,548

 
56,555

 
160,034

 
216,589

 
1,264

Installment loans to individuals
3,239

 
393

 
2,109

 
2,502

 
1

Total
$
416,912

 
$
78,328

 
$
246,681

 
$
325,009

 
$
2,022

December 31, 2015
 
 
 
 
 
 
 
 
 
Commercial, financial, agricultural
$
27,049

 
$
5,197

 
$
11,292

 
$
16,489

 
$
353

Lease financing
—

 
—

 
—

 
—

 
—

Real estate – construction
2,916

 
—

 
2,749

 
2,749

 
—

Real estate – 1-4 family mortgage
109,293

 
15,702

 
75,947

 
91,649

 
256

Real estate – commercial mortgage
287,821

 
53,762

 
168,848

 
222,610

 
1,096

Installment loans to individuals
3,432

 
400

 
2,268

 
2,668

 
1

Totals
$
430,511

 
$
75,061

 
$
261,104

 
$
336,165

 
$
1,706
Investment and interest income recognized on impaired loans
The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-30 and are impaired loans for the periods presented:

 
Three Months Ended
 
Three Months Ended
 
March 31, 2016
 
March 31, 2015
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
Commercial, financial, agricultural
$
18,024

 
$
327

 
$
25,978

 
$
233

Lease financing
—

 
—

 
—

 
—

Real estate – construction
2,608

 
25

 
—

 
—

Real estate – 1-4 family mortgage
101,089

 
953

 
86,713

 
1,043

Real estate – commercial mortgage
250,041

 
2,831

 
242,712

 
2,871

Installment loans to individuals
2,954

 
29

 
4,215

 
46

Total
$
374,716

 
$
4,165

 
$
359,618

 
$
4,193
Heritage Financial Group  
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 Heritage Financial Group, Inc. (“Heritage”) as of the July 1, 2015 acquisition date.
At acquisition date:
 
July 1, 2015
  Contractually-required principal and interest
 
$
1,212,372

  Nonaccretable difference
 
14,260

  Cash flows expected to be collected
 
1,198,112

  Accretable yield
 
69,465

      Fair value
 
$
1,128,647