XML 24 R12.htm IDEA: XBRL DOCUMENT v3.8.0.1
Allowance for Loan Losses
 9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Allowance for Loan Losses
Allowance for Loan Losses
(In Thousands, Except Number of Loans)
The following is a summary of total non purchased and purchased loans as of the dates presented:
 
 
September 30,
2017
 
December 31, 2016
Commercial, financial, agricultural
$
1,008,935

 
$
717,490

Lease financing
54,688

 
49,250

Real estate – construction
577,720

 
552,679

Real estate – 1-4 family mortgage
2,295,852

 
1,878,177

Real estate – commercial mortgage
3,390,389

 
2,898,895

Installment loans to individuals
123,810

 
108,627

Gross loans
7,451,394

 
6,205,118

Unearned income
(2,786
)
 
(2,409
)
Loans, net of unearned income
7,448,608

 
6,202,709

Allowance for loan losses
(44,531
)
 
(42,737
)
Net loans
$
7,404,077

 
$
6,159,972



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, 2017
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
5,092

 
$
2,580

 
$
12,104

 
$
22,600

 
$
1,773

 
$
44,149

Charge-offs
(974
)
 
—

 
(575
)
 
(543
)
 
(124
)
 
(2,216
)
Recoveries
137

 
67

 
145

 
72

 
27

 
448

Net (charge-offs) recoveries
(837
)
 
67

 
(430
)
 
(471
)
 
(97
)
 
(1,768
)
Provision for loan losses charged to operations (2) 
938

 
161

 
439

 
481

 
131

 
2,150

Ending balance
$
5,193

 
$
2,808

 
$
12,113

 
$
22,610

 
$
1,807

 
$
44,531


 
Commercial
 
Real Estate -
Construction
 
Real Estate -
1-4 Family
Mortgage
 
Real Estate  -
Commercial
Mortgage
 
Installment
and  Other(1)
 
Total
Nine Months Ended September 30, 2017
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
5,486

 
$
2,380

 
$
14,294

 
$
19,059

 
$
1,518

 
$
42,737

Charge-offs
(2,110
)
 
—

 
(1,401
)
 
(1,204
)
 
(513
)
 
(5,228
)
Recoveries
258

 
101

 
291

 
884

 
88

 
1,622

Net (charge-offs) recoveries
(1,852
)
 
101

 
(1,110
)
 
(320
)
 
(425
)
 
(3,606
)
Provision for loan losses charged to operations (2) 
1,559

 
327

 
(1,071
)
 
3,871

 
714

 
5,400

Ending balance
$
5,193

 
$
2,808

 
$
12,113

 
$
22,610

 
$
1,807

 
$
44,531

Period-End Amount Allocated to:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
96

 
$
9

 
$
855

 
$
1,963

 
$
5

 
$
2,928

Collectively evaluated for impairment
4,772

 
2,799

 
10,644

 
19,662

 
1,801

 
39,678

Purchased with deteriorated credit quality
325

 
—

 
614

 
985

 
1

 
1,925

Ending balance
$
5,193

 
$
2,808

 
$
12,113

 
$
22,610

 
$
1,807

 
$
44,531


 
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

Purchased 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


(1)
Includes lease financing receivables.
(2)
Due to the termination of the loss-share agreements on December 8, 2016, there was no loss-share impact to the provision for loan losses in 2017.
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, 2017
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
2,291

 
$
2,730

 
$
13,347

 
$
8,078

 
$
301

 
$
26,747

Collectively evaluated for impairment
989,185

 
574,990

 
2,222,736

 
3,216,345

 
173,726

 
7,176,982

Purchased with deteriorated credit quality
17,459

 
—

 
59,769

 
165,966

 
1,685

 
244,879

Ending balance
$
1,008,935

 
$
577,720

 
$
2,295,852

 
$
3,390,389

 
$
175,712

 
$
7,448,608

December 31, 2016
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,886

 
$
662

 
$
12,088

 
$
13,079

 
$
277

 
$
27,992

Collectively evaluated for impairment
703,610

 
551,177

 
1,794,137

 
2,700,829

 
153,206

 
5,902,959

Purchased with deteriorated credit quality
11,994

 
840

 
71,952

 
184,987

 
1,985

 
271,758

Ending balance
$
717,490

 
$
552,679

 
$
1,878,177

 
$
2,898,895

 
$
155,468

 
$
6,202,709

 
(1)
Includes lease financing receivables.