Loans and the Allowance for Loan Losses

9 Months Ended

Sep. 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:

	September 30, 2016			December 31, 2015
Commercial, financial, agricultural	$	694,126		$	636,837
Lease financing	47,695			35,978
Real estate – construction	487,638			357,665
Real estate – 1-4 family mortgage	1,870,644			1,735,323
Real estate – commercial mortgage	2,895,631			2,533,729
Installment loans to individuals	111,684			115,093
Gross loans	6,107,418			5,414,625
Unearned income	(2,185		)	(1,163		)
Loans, net of unearned income	6,105,233			5,413,462
Allowance for loan losses	(45,924		)	(42,437		)
Net loans	$	6,059,309		$	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
September 30, 2016
Commercial, financial, agricultural	$	1,657	$	1,486	$	689,042		$	692,185		$	87	$	1,123	$	731	$	1,941	$	694,126
Lease financing	—		342		47,353			47,695			—		—		—		—		47,695
Real estate – construction	1,835		559		485,096			487,490			—		148		—		148		487,638
Real estate – 1-4 family mortgage	8,124		5,059		1,847,459			1,860,642			860		3,687		5,455		10,002		1,870,644
Real estate – commercial mortgage	10,345		8,183		2,863,205			2,881,733			53		7,059		6,786		13,898		2,895,631
Installment loans to individuals	419		92		110,975			111,486					64		134		198		111,684
Unearned income					(2,185		)	(2,185		)							—		(2,185		)
Total	$	22,380	$	15,721	$	6,040,945		$	6,079,046		$	1,000	$	12,081	$	13,106	$	26,187	$	6,105,233
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
September 30, 2016
Commercial, financial, agricultural	$	2,431	$	2,245	$	135	$	2,380	$	1,004
Lease financing	—		—		—		—		—
Real estate – construction	1,042		820		222		1,042		2
Real estate – 1-4 family mortgage	20,208		18,501		—		18,501		5,144
Real estate – commercial mortgage	16,126		12,669		—		12,669		2,635
Installment loans to individuals	233		231		—		231		114
Total	$	40,040	$	34,466	$	357	$	34,823	$	8,899
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
	September 30, 2016				September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	2,387	$	28	$	1,286	$	7
Lease financing	—		—		—		—
Real estate – construction	1,010		26		—		—
Real estate – 1-4 family mortgage	18,914		115		16,906		99
Real estate – commercial mortgage	13,425		87		20,112		199
Installment loans to individuals	234		—		71		2
Total	$	35,970	$	256	$	38,375	$	307

	Nine Months Ended				Nine Months Ended
	September 30, 2016				September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	2,233	$	48	$	1,325	$	21
Lease financing	—		—		—		—
Real estate – construction	819		28		—		—
Real estate – 1-4 family mortgage	19,146		309		17,192		275
Real estate – commercial mortgage	14,271		294		20,864		472
Installment loans to individuals	239		2		71		2
Total	$	36,708	$	681	$	39,452	$	770

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
September 30, 2016
Commercial, financial, agricultural	$	21,678	$	4,729	$	7,765	$	12,494	$	448
Lease financing	—		—		—		—		—
Real estate – construction	2,041		729		993		1,722
Real estate – 1-4 family mortgage	96,394		22,308		57,924		80,232		726
Real estate – commercial mortgage	248,508		84,859		116,141		201,000		2,243
Installment loans to individuals	2,814		415		1,746		2,161		1
Total	$	371,435	$	113,040	$	184,569	$	297,609	$	3,418
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
	September 30, 2016				September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	15,317	$	252	$	12,379	$	189
Lease financing	—		—		—		—
Real estate – construction	988		15		651		43
Real estate – 1-4 family mortgage	92,830		1,056		78,933		1,129
Real estate – commercial mortgage	226,533		2,635		219,229		3,487
Installment loans to individuals	2,508		25		3,261		34
Total	$	338,176	$	3,983	$	314,453	$	4,882

	Nine Months Ended				Nine Months Ended
	September 30, 2016				September 30, 2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Commercial, financial, agricultural	$	15,768	$	839	$	12,298	$	497
Lease financing	—		—		—		—
Real estate – construction	991		48		219		43
Real estate – 1-4 family mortgage	93,900		3,000		76,851		2,974
Real estate – commercial mortgage	224,004		7,859		217,130		8,779
Installment loans to individuals	2,625		80		3,416		106
Total	$	337,288	$	11,826	$	309,914	$	12,399

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 September 30, 2016
Commercial, financial, agricultural	—	$	—	$	—
Lease financing	—	—		—
Real estate – construction	1	510		510
Real estate – 1-4 family mortgage	4	326		267
Real estate – commercial mortgage	—	—		—
Installment loans to individuals	—	—		—
Total	5	$	836	$	777
Three months ended September 30, 2015
Commercial, financial, agricultural	—	$	—	$	—
Lease financing	—	—		—
Real estate – construction	—	—		—
Real estate – 1-4 family mortgage	7	545		520
Real estate – commercial mortgage	7	2,895		2,578
Installment loans to individuals	1	67		67
Total	15	$	3,507	$	3,165

	Number of Loans	Pre- Modification Outstanding Recorded Investment		Post- Modification Outstanding Recorded Investment
Nine months ended September 30, 2016
Commercial, financial, agricultural	—	$	—	$	—
Real estate – construction	1	510		510
Real estate – 1-4 family mortgage	17	1,611		1,421
Real estate – commercial mortgage	2	612		606
Installment loans to individuals	—	—		—
Total	20	$	2,733	$	2,537
Nine months ended September 30, 2015
Commercial, financial, agricultural	—	$	—	$	—
Real estate – construction	—	—		—
Real estate – 1-4 family mortgage	32	2,858		2,650
Real estate – commercial mortgage	12	6,896		6,567
Installment loans to individuals	1	67		67
Total	45	$	9,821	$	9,284

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 September 30, 2016 and one restructured loan in the amount of $35 contractually 90 days past due or more and still accruing at September 30, 2015. The outstanding balance of restructured loans on nonaccrual status was $9,764 and $13,956 at September 30, 2016 and September 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	23		2,926
Reductions due to:
Reclassified as nonperforming	(3	)	(1,336		)
Paid in full	(17	)	(3,304		)
Charge-offs	—		(32		)
Transfer to other real estate owned	(1	)	(51		)
Principal paydowns	—		(936		)
Lapse of concession period	—		—
Reclassified as performing	—		—
Totals at September 30, 2016	87		$	10,720

The allocated allowance for loan losses attributable to restructured loans was $321 and $1,343 at September 30, 2016 and September 30, 2015, respectively. The Company had $11 in remaining availability under commitments to lend additional funds on these restructured loans at September 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
September 30, 2016
Commercial, financial, agricultural	$	515,497	$	6,842	$	2,633	$	524,972
Lease financing	—		—		—		—
Real estate – construction	398,029		3,590		223		401,842
Real estate – 1-4 family mortgage	291,311		10,024		11,948		313,283
Real estate – commercial mortgage	2,332,496		25,166		13,968		2,371,630
Installment loans to individuals	95		—		114		209
Total	$	3,537,428	$	45,622	$	28,886	$	3,611,936
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
September 30, 2016
Commercial, financial, agricultural	$	155,856	$	804	$	156,660
Lease financing	45,168		342		45,510
Real estate – construction	83,537		537		84,074
Real estate – 1-4 family mortgage	1,472,268		4,861		1,477,129
Real estate – commercial mortgage	321,971		1,030		323,001
Installment loans to individuals	109,177		137		109,314
Total	$	2,187,977	$	7,711	$	2,195,688
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
September 30, 2016
Commercial, financial, agricultural	$	14	$	12,480	$	12,494
Lease financing	—		—		—
Real estate – construction	—		1,722		1,722
Real estate – 1-4 family mortgage	23,190		57,042		80,232
Real estate – commercial mortgage	120		200,880		201,000
Installment loans to individuals	20		2,141		2,161
Total	$	23,344	$	274,265	$	297,609
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 September 30, 2016:

	Covered Loans			Not Covered Loans			Total
Contractually-required principal and interest	$	27,604		$	393,329		$	420,933
Nonaccretable difference(1)	(3,626		)	(78,657		)	(82,283		)
Cash flows expected to be collected	23,978			314,672			338,650
Accretable yield(2)	(634		)	(40,407		)	(41,041		)
Fair value	$	23,344		$	274,265		$	297,609

(1) Represents contractual principal and interest cash flows of $82,248 and $35, respectively, not expected to be collected.

(2) Represents contractual interest payments of $1,862 expected to be collected and purchase discount of $39,179.

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	—			(2,311		)	(2,311		)
Transfer of balance to Not Covered Loans	2,107			(2,107		)	—
Reclasses from nonaccretable difference	(905		)	(1,696		)	(2,601		)
Accretion	1,726			8,217			9,943
Charge-offs	28			1,606			1,634
Balance at September 30, 2016	$	(634	)	$	(40,407	)	$	(41,041	)

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 September 30, 2016
Allowance for loan losses:
Beginning balance	$	4,512		$	2,269		$	14,219		$	21,683		$	1,415		$	44,098
Charge-offs	(394		)	—			(242		)	(466		)	(201		)	(1,303		)
Recoveries	85			4			188			181			21			479
Net (charge-offs) recoveries	(309		)	4			(54		)	(285		)	(180		)	(824		)
Provision for loan losses	1,308			(52		)	1,154			(87		)	353			2,676
Benefit attributable to FDIC loss-share agreements	(61		)	—			—			(47		)	(41		)	(149		)
Recoveries payable to FDIC	4			2			93			24			—			123
Provision for loan losses charged to operations	1,251			(50		)	1,247			(110		)	312			2,650
Ending balance	$	5,454		$	2,223		$	15,412		$	21,288		$	1,547		$	45,924

	Commercial			Real Estate - Construction		Real Estate - 1-4 Family Mortgage			Real Estate  - Commercial Mortgage			Installment and  Other(1)			Total
Nine Months Ended September 30, 2016
Allowance for loan losses:
Beginning balance	$	4,186		$	1,852	$	13,908		$	21,111		$	1,380		$	42,437
Charge-offs	(1,099		)	—		(745		)	(1,653		)	(573		)	(4,070		)
Recoveries	243			15		753			582			84			1,677
Net (charge-offs) recoveries	(856		)	15		8			(1,071		)	(489		)	(2,393		)
Provision for loan losses	2,174			348		1,333			1,067			697			5,619
Benefit attributable to FDIC loss-share agreements	(61		)	—		(115		)	(48		)	(41		)	(265		)
Recoveries payable to FDIC	11			8		278			229			—			526
Provision for loan losses charged to operations	2,124			356		1,496			1,248			656			5,880
Ending balance	$	5,454		$	2,223	$	15,412		$	21,288		$	1,547		$	45,924
Period-End Amount Allocated to:
Individually evaluated for impairment	$	1,004		$	2	$	5,144		$	2,635		$	114		$	8,899
Collectively evaluated for impairment	4,002			2,221		9,542			16,410			1,432			33,607
Acquired with deteriorated credit quality	448			—		726			2,243			1			3,418
Ending balance	$	5,454		$	2,223	$	15,412		$	21,288		$	1,547		$	45,924

	Commercial			Real Estate - Construction		Real Estate - 1-4 Family Mortgage			Real Estate  - Commercial Mortgage			Installment and  Other(1)			Total
Three Months Ended September 30, 2015
Allowance for loan losses:
Beginning balance	$	3,971		$	1,297	$	13,792		$	21,547		$	1,281		$	41,888
Charge-offs	(143		)	—		(251		)	(430		)	(132		)	(956		)
Recoveries	82			3		145			112			27			369
Net (charge-offs) recoveries	(61		)	3		(106		)	(318		)	(105		)	(587		)
Provision for loan losses	(307		)	360		165			53			358			629
Benefit attributable to FDIC loss-share agreements	(10		)	—		(39		)	(231		)	—			(280		)
Recoveries payable to FDIC	20			1		99			277			4			401
Provision for loan losses charged to operations	(297		)	361		225			99			362			750
Ending balance	$	3,613		$	1,661	$	13,911		$	21,328		$	1,538		$	42,051

	Commercial			Real Estate - Construction			Real Estate - 1-4 Family Mortgage			Real Estate  - Commercial Mortgage			Installment and  Other(1)			Total
Nine Months Ended September 30, 2015
Allowance for loan losses:
Beginning balance	$	3,305		$	1,415		$	13,549		$	22,759		$	1,261		$	42,289
Charge-offs	(501		)	(26		)	(1,605		)	(2,287		)	(238		)	(4,657		)
Recoveries	221			16			515			581			86			1,419
Net charge-offs	(280		)	(10		)	(1,090		)	(1,706		)	(152		)	(3,238		)
Provision for loan losses	624			254			653			244			425			2,200
Benefit attributable to FDIC loss-share agreements	(65		)	—			(82		)	(717		)	—			(864		)
Recoveries payable to FDIC	29			2			881			748			4			1,664
Provision for loan losses charged to operations	588			256			1,452			275			429			3,000
Ending balance	$	3,613		$	1,661		$	13,911		$	21,328		$	1,538		$	42,051
Period-End Amount Allocated to:
Individually evaluated for impairment	$	214		$	—		$	4,482		$	3,101		$	—		$	7,797
Collectively evaluated for impairment	3,014			1,661			9,137			16,955			1,537			32,304
Acquired with deteriorated credit quality	385			—			292			1,272			1			1,950
Ending balance	$	3,613		$	1,661		$	13,911		$	21,328		$	1,538		$	42,051

(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
September 30, 2016
Individually evaluated for impairment	$	2,380	$	1,042	$	18,501	$	12,669	$	231	$	34,823
Collectively evaluated for impairment	679,252		484,874		1,771,911		2,681,962		154,802		5,772,801
Acquired with deteriorated credit quality	12,494		1,722		80,232		201,000		2,161		297,609
Ending balance	$	694,126	$	487,638	$	1,870,644	$	2,895,631	$	157,194	$	6,105,233
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.