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Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2017
Receivables [Abstract]  
Summary of total non purchased and purchased loans
The following is a summary of non purchased loans and leases as of the dates presented:
 
 
September 30,
2017
 
December 31, 2016
Commercial, financial, agricultural
$
707,835

 
$
589,290

Lease financing
54,688

 
49,250

Real estate – construction
477,638

 
483,926

Real estate – 1-4 family mortgage
1,644,060

 
1,425,730

Real estate – commercial mortgage
2,311,340

 
2,075,137

Installment loans to individuals
100,692

 
92,648

Gross loans
5,296,253

 
4,715,981

Unearned income
(2,786
)
 
(2,409
)
Loans, net of unearned income
5,293,467

 
4,713,572

The following is a summary of purchased loans as of the dates presented:
 
 
September 30,
2017
 
December 31, 2016
Commercial, financial, agricultural
$
301,100

 
$
128,200

Real estate – construction
100,082

 
68,753

Real estate – 1-4 family mortgage
651,792

 
452,447

Real estate – commercial mortgage
1,079,049

 
823,758

Installment loans to individuals
23,118

 
15,979

Gross loans
2,155,141

 
1,489,137

Unearned income
—

 
—

Loans, net of unearned income
2,155,141

 
1,489,137

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
Roll forward 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 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.
Investment in loans, net of unearned income on impairment methodology
The following table presents the fair value of loans purchased 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



The following table presents the fair value of loans purchased from Metropolitan as of the July 1, 2017 acquisition date.
At acquisition date:
 
July 1, 2017
  Contractually-required principal and interest
 
$
1,198,132

  Nonaccretable difference
 
(80,887
)
  Cash flows expected to be collected
 
1,117,245

  Accretable yield
 
(152,821
)
      Fair value
 
$
964,424

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.