Loans and the Allowance for Loan Losses

6 Months Ended

Jun. 30, 2016

Receivables [Abstract]

Loans and the Allowance for Loan Losses

Loans and the Allowance for Loan Losses

(In Thousands, Except Number of Loans)

The following is a summary of loans as of the dates presented:

	June 30, 2016			December 31, 2015
Commercial, financial, agricultural	$	682,936		$	636,837
Lease financing	44,989			35,978
Real estate – construction	452,731			357,665
Real estate – 1-4 family mortgage	1,849,046			1,735,323
Real estate – commercial mortgage	2,823,676			2,533,729
Installment loans to individuals	113,924			115,093
Gross loans	5,967,302			5,414,625
Unearned income	(1,873		)	(1,163		)
Loans, net of unearned income	5,965,429			5,413,462
Allowance for loan losses	(44,098		)	(42,437		)
Net loans	$	5,921,331		$	5,371,025

Past Due and Nonaccrual Loans

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Generally, the recognition of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Consumer and other retail loans are typically charged-off no later than the time the loan is 120 days past due. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Loans may be placed on nonaccrual regardless of whether or not such loans are considered past due. All interest accrued for the current year, but not collected, for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

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, 2016
Commercial, financial, agricultural	$	1,337	$	1,466	$	678,795		$	681,598		$	—	$	758	$	580	$	1,338	$	682,936
Lease financing	—		—		44,989			44,989			—		—		—		—		44,989
Real estate – construction	1,482		675		450,574			452,731			—		—		—		—		452,731
Real estate – 1-4 family mortgage	8,736		5,926		1,823,323			1,837,985			180		3,218		7,663		11,061		1,849,046
Real estate – commercial mortgage	7,802		8,813		2,793,656			2,810,271			2,133		3,229		8,043		13,405		2,823,676
Installment loans to individuals	291		274		113,199			113,764			—		37		123		160		113,924
Unearned income	—		—		(1,873		)	(1,873		)	—		—		—		—		(1,873		)
Total	$	19,648	$	17,154	$	5,902,663		$	5,939,465		$	2,313	$	7,242	$	16,409	$	25,964	$	5,965,429
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

Impaired Loans

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Impairment is measured on a loan-by-loan basis for commercial, consumer and construction loans above a minimum dollar amount threshold by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Large groups of smaller balance homogeneous loans are evaluated collectively for impairment. When the ultimate collectability of an impaired loan’s principal is in doubt, wholly or partially, all cash receipts are applied to principal. Once the recorded balance has been reduced to zero, future cash receipts are applied to interest income, to the extent any interest has been foregone, and then they are recorded as recoveries of any amounts previously charged-off. For impaired loans, a specific reserve is established to adjust the carrying value of the loan to its estimated net realizable value.

Loans accounted for under FASB Accounting Standards Codification Topic (“ASC”) 310-20, “Nonrefundable Fees and Other Cost” (“ASC 310-20”), and which 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
June 30, 2016
Commercial, financial, agricultural	$	1,306	$	1,295	$	—	$	1,295	$	164
Lease financing	—		—		—		—		—
Real estate – construction	167		—		167		167		—
Real estate – 1-4 family mortgage	19,033		17,673		—		17,673		4,924
Real estate – commercial mortgage	16,872		13,285		—		13,285		2,531
Installment loans to individuals	78		78		—		78		—
Total	$	37,456	$	32,331	$	167	$	32,498	$	7,619
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

The following table presents the average recorded investment and interest income recognized on loans accounted for under ASC 310-20 and which are impaired loans for the periods presented:

	Three Months Ended				Three Months Ended
	June 30, 2016				June 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	1,470	$	23	$	785	$	7
Lease financing	—		—		—		—
Real estate – construction	117		2		—		—
Real estate – 1-4 family mortgage	17,800		128		17,712		140
Real estate – commercial mortgage	14,164		126		24,683		185
Installment loans to individuals	79		1		437		—
Total	$	33,630	$	280	$	43,617	$	332

	Six Months Ended				Six Months Ended
	June 30, 2016				June 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	1,506	$	25	$	803	$	14
Lease financing	—		—		—		—
Real estate – construction	58		2		—		—
Real estate – 1-4 family mortgage	18,049		209		17,869		207
Real estate – commercial mortgage	14,460		240		25,212		363
Installment loans to individuals	80		1		441		—
Total	$	34,153	$	477	$	44,325	$	584

Loans accounted for under ASC 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality” (“ASC 310-30”), and which 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
June 30, 2016
Commercial, financial, agricultural	$	23,495	$	4,222	$	9,199	$	13,421	$	401
Lease financing	—		—		—		—		—
Real estate – construction	3,587		—		3,157		3,157		—
Real estate – 1-4 family mortgage	103,248		17,677		68,747		86,424		344
Real estate – commercial mortgage	269,205		57,800		154,862		212,662		1,426
Installment loans to individuals	2,989		413		1,882		2,295		1
Total	$	402,524	$	80,112	$	237,847	$	317,959	$	2,172
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

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

	Three Months Ended				Three Months Ended
	June 30, 2016				June 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	16,361	$	287	$	12,651	$	81
Lease financing	—		—		—		—
Real estate – construction	3,562		39		—		—
Real estate – 1-4 family mortgage	98,200		1,083		81,492		889
Real estate – commercial mortgage	239,564		2,903		222,127		2,664
Installment loans to individuals	2,705		29		3,605		32
Total	$	360,392	$	4,341	$	319,875	$	3,666

	Six Months Ended				Six Months Ended
	June 30, 2016				June 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	16,872	$	611	$	12,672	$	314
Lease financing	—		—		—		—
Real estate – construction	3,572		65		—		—
Real estate – 1-4 family mortgage	98,874		2,030		81,541		1,932
Real estate – commercial mortgage	240,254		5,593		222,403		5,535
Installment loans to individuals	2,776		56		3,608		77
Total	$	362,348	$	8,355	$	320,224	$	7,858

Restructured Loans

Restructured loans are those for which concessions have been granted to the borrower due to a deterioration of the borrower’s financial condition and which are performing in accordance with the new terms. Such concessions may include reduction in interest rates or deferral of interest or principal payments. In evaluating whether to restructure a loan, management analyzes the long-term financial condition of the borrower, including guarantor and collateral support, to determine whether the proposed concessions will increase the likelihood of repayment of principal and interest.

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
Three months ended June 30, 2016
Commercial, financial, agricultural	—	$	—	$	—
Lease financing	—	—		—
Real estate – construction	—	—		—
Real estate – 1-4 family mortgage	5	824		809
Real estate – commercial mortgage	—	—		—
Installment loans to individuals	—	—		—
Total	5	$	824	$	809
Three months ended June 30, 2015
Commercial, financial, agricultural	—	$	—	$	—
Lease financing	—	—		—
Real estate – construction	—	—		—
Real estate – 1-4 family mortgage	12	1,495		1,479
Real estate – commercial mortgage	1	66		58
Installment loans to individuals	—	—		—
Total	13	$	1,561	$	1,537

	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Six months ended June 30, 2016
Commercial, financial, agricultural	—	$	—	$	—
Real estate – construction	—	—		—
Real estate – 1-4 family mortgage	15	1,488		1,353
Real estate – commercial mortgage	2	612		606
Installment loans to individuals	—	—		—
Total	17	$	2,100	$	1,959
Six months ended June 30, 2015
Commercial, financial, agricultural	—	$	—	$	—
Real estate – construction	—	—		—
Real estate – 1-4 family mortgage	27	2,641		2,470
Real estate – commercial mortgage	7	6,391		6,047
Installment loans to individuals	—	—		—
Total	34	$	9,032	$	8,517

Restructured loans not performing in accordance with their restructured terms that are either contractually 90 days or more past due or placed on nonaccrual status are reported as nonperforming loans. There were no restructured loans contractually 90 days past due or more and still accruing at June 30, 2016 and one restructured loan in the amount of $21 contractually 90 days past due or more and still accruing at June 30, 2015. The outstanding balance of restructured loans on nonaccrual status was $10,541 and $8,512 at June 30, 2016 and June 30, 2015, respectively.

Changes in the Company’s restructured loans are set forth in the table below:

	Number of Loans		Recorded Investment
Totals at January 1, 2016	85		$	13,453
Additional loans with concessions	18		2,114
Reductions due to:
Reclassified as nonperforming	(2	)	(134		)
Paid in full	(13	)	(3,069		)
Charge-offs	—		—
Transfer to other real estate owned	—		—
Principal paydowns	—		(757		)
Lapse of concession period	—		—
Reclassified as performing	—		—
Totals at June 30, 2016	88		$	11,607

The allocated allowance for loan losses attributable to restructured loans was $824 and $1,622 at June 30, 2016 and June 30, 2015, respectively. The Company had no remaining availability under commitments to lend additional funds on these restructured loans at June 30, 2016 or December 31, 2015.

Credit Quality

For loans originated for commercial purposes, internal risk-rating grades are assigned by lending, credit administration or loan review personnel, based on an analysis of the financial and collateral strength and other credit attributes underlying each loan. Management analyzes the resulting ratings, as well as other external statistics and factors such as delinquency, to track the migration performance of the portfolio balances of these loans. Loan grades range between 1 and 9, with 1 being loans with the least credit risk. Loans that migrate toward the “Pass” grade (those with a risk rating between 1 and 4) or within the “Pass” grade generally have a lower risk of loss and therefore a lower risk factor applied to the loan balances. The “Watch” grade (those with a risk rating of 5) is utilized on a temporary basis for “Pass” grade loans where a significant adverse risk-modifying action is anticipated in the near term. Loans that migrate toward the “Substandard” grade (those with a risk rating between 6 and 9) generally have a higher risk of loss and therefore a higher risk factor applied to the related loan balances. The following table presents the Company’s loan portfolio by risk-rating grades as of the dates presented:

	Pass		Watch		Substandard		Total
June 30, 2016
Commercial, financial, agricultural	$	506,028	$	7,346	$	2,031	$	515,405
Lease financing	—		—		—		—
Real estate – construction	359,523		1,192		167		360,882
Real estate – 1-4 family mortgage	297,907		9,918		12,238		320,063
Real estate – commercial mortgage	2,256,451		23,078		17,482		2,297,011
Installment loans to individuals	103		—		116		219
Total	$	3,420,012	$	41,534	$	32,034	$	3,493,580
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

For portfolio balances of consumer, small balance consumer mortgage loans, such as 1-4 family mortgage loans and certain other loans originated for other than commercial purposes, allowance factors are determined based on historical loss ratios by portfolio for the preceding eight quarters and may be adjusted by other qualitative criteria. 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, 2016
Commercial, financial, agricultural	$	153,534	$	576	$	154,110
Lease financing	43,116		—		43,116
Real estate – construction	88,189		503		88,692
Real estate – 1-4 family mortgage	1,440,427		2,132		1,442,559
Real estate – commercial mortgage	313,543		460		314,003
Installment loans to individuals	111,132		278		111,410
Total	$	2,149,941	$	3,949	$	2,153,890
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
June 30, 2016
Commercial, financial, agricultural	$	228	$	13,193	$	13,421
Lease financing	—		—		—
Real estate – construction	83		3,074		3,157
Real estate – 1-4 family mortgage	25,285		61,139		86,424
Real estate – commercial mortgage	2,774		209,888		212,662
Installment loans to individuals	35		2,260		2,295
Total	$	28,405	$	289,554	$	317,959
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

The references in the table above and elsewhere in these Notes to "covered loans" and "not covered loans" (as well as to "covered OREO" and "not covered OREO") refer to loans (or OREO, as applicable) covered and not covered, respectively, by loss-share agreements with the FDIC. See Note E, "FDIC Loss-Share Indemnification Asset," below for more information.

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, 2016:

	Covered Loans			Not Covered Loans			Total
Contractually-required principal and interest	$	35,175		$	410,756		$	445,931
Nonaccretable difference(1)	(4,539		)	(79,250		)	(83,789		)
Cash flows expected to be collected	30,636			331,506			362,142
Accretable yield(2)	(2,231		)	(41,952		)	(44,183		)
Fair value	$	28,405		$	289,554		$	317,959

(1) Represents contractual principal and interest cash flows of $79,942 and $35, respectively, not expected to be collected.

(2) Represents contractual interest payments of $1,727 expected to be collected and purchase discount of $42,456.

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	$	(3,590	)	$	(44,116	)	$	(47,706	)
Additions due to acquisition	725			(3,036		)	(2,311		)
Reclasses from nonaccretable difference	(663		)	(1,571		)	(2,234		)
Accretion	1,269			5,800			7,069
Charge-offs	28			971			999
Balance at June 30, 2016	$	(2,231	)	$	(41,952	)	$	(44,183	)

The following table presents the fair value of loans acquired from Heritage as of the July 1, 2015 acquisition date.

At acquisition date:	July 1, 2015
Contractually-required principal and interest	$	1,216,173
Nonaccretable difference	14,260
Cash flows expected to be collected	1,201,913
Accretable yield	71,843
Fair value	$	1,130,070

The following table presents the fair value of loans acquired from KeyWorth as of the April 1, 2016 acquisition date.

At acquisition date:	April 1, 2016
Contractually-required principal and interest	$	289,495
Nonaccretable difference	3,848
Cash flows expected to be collected	285,647
Accretable yield	13,317
Fair value	$	272,330

Allowance for Loan Losses

The allowance for loan losses is maintained at a level believed adequate by management based on its ongoing analysis of the loan portfolio to absorb probable credit losses inherent in the entire loan portfolio, including collective impairment as recognized under ASC 450, “Contingencies”. Collective impairment is calculated based on loans grouped by grade. Another component of the allowance is losses on loans assessed as impaired under ASC 310. The balance of these loans and their related allowance is included in management’s estimation and analysis of the allowance for loan losses. Management and the internal loan review staff evaluate the adequacy of the allowance for loan losses quarterly. The allowance for loan losses is evaluated based on a continuing assessment of problem loans, the types of loans, historical loss experience, new lending products, emerging credit trends, changes in the size and character of loan categories and other factors, including its risk rating system, regulatory guidance and economic conditions. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance for loan losses is established through a provision for loan losses charged to earnings resulting from measurements of inherent credit risk in the loan portfolio and estimates of probable losses or impairments of individual loans. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.

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, 2016
Allowance for loan losses:
Beginning balance	$	4,171		$	1,943	$	14,542		$	20,775		$	1,428		$	42,859
Charge-offs	(48		)	—		(387		)	(186		)	(192		)	(813		)
Recoveries	105			5		170			309			33			622
Net (charge-offs) recoveries	57			5		(217		)	123			(159		)	(191		)
Provision for loan losses	265			315		(186		)	624			146			1,164
Benefit attributable to FDIC loss-share agreements	15			—		(78		)	117			—			54
Recoveries payable to FDIC	4			6		158			44			—			212
Provision for loan losses charged to operations	284			321		(106		)	785			146			1,430
Ending balance	$	4,512		$	2,269	$	14,219		$	21,683		$	1,415		$	44,098

	Commercial			Real Estate - Construction		Real Estate - 1-4 Family Mortgage			Real Estate  - Commercial Mortgage			Installment and  Other(1)			Total
Six Months Ended June 30, 2016
Allowance for loan losses:
Beginning balance	$	4,186		$	1,852	$	13,908		$	21,111		$	1,380		$	42,437
Charge-offs	(705		)	—		(503		)	(1,187		)	(372		)	(2,767		)
Recoveries	158			11		565			401			63			1,198
Net (charge-offs) recoveries	(547		)	11		62			(786		)	(309		)	(1,569		)
Provision for loan losses	866			400		179			1,154			344			2,943
Benefit attributable to FDIC loss-share agreements	—			—		(115		)	(1		)	—			(116		)
Recoveries payable to FDIC	7			6		185			205			—			403
Provision for loan losses charged to operations	873			406		249			1,358			344			3,230
Ending balance	$	4,512		$	2,269	$	14,219		$	21,683		$	1,415		$	44,098
Period-End Amount Allocated to:
Individually evaluated for impairment	$	164		$	—	$	4,924		$	2,531		$	—		$	7,619
Collectively evaluated for impairment	3,947			2,269		8,951			17,726			1,414			34,307
Acquired with deteriorated credit quality	401			—		344			1,426			1			2,172
Ending balance	$	4,512		$	2,269	$	14,219		$	21,683		$	1,415		$	44,098

	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

(1) Includes lease financing receivables.

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, 2016
Individually evaluated for impairment	$	1,295	$	167	$	17,673	$	13,285	$	78	$	32,498
Collectively evaluated for impairment	668,220		449,407		1,744,949		2,597,729		154,667		5,614,972
Acquired with deteriorated credit quality	13,421		3,157		86,424		212,662		2,295		317,959
Ending balance	$	682,936	$	452,731	$	1,849,046	$	2,823,676	$	157,040	$	5,965,429
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.