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Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2018
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,
2018
 
December 31, 2017
Commercial, financial, agricultural
$
817,799

 
$
763,823

Lease financing
57,576

 
57,354

Real estate – construction
624,892

 
547,658

Real estate – 1-4 family mortgage
2,000,770

 
1,729,534

Real estate – commercial mortgage
2,609,510

 
2,390,076

Installment loans to individuals
102,995

 
103,452

Gross loans
6,213,542

 
5,591,897

Unearned income
(3,304
)
 
(3,341
)
Loans, net of unearned income
$
6,210,238

 
$
5,588,556

The following is a summary of purchased loans as of the dates presented:
 
 
September 30,
2018
 
December 31, 2017
Commercial, financial, agricultural
$
495,545

 
$
275,570

Real estate – construction
112,093

 
85,731

Real estate – 1-4 family mortgage
761,913

 
614,187

Real estate – commercial mortgage
1,503,075

 
1,037,454

Installment loans to individuals
40,043

 
18,824

Gross loans
2,912,669

 
2,031,766

Unearned income
—

 
—

Loans, net of unearned income
$
2,912,669

 
$
2,031,766

The following is a summary of total non purchased and purchased loans as of the dates presented:
 
 
September 30,
2018
 
December 31, 2017
Commercial, financial, agricultural
$
1,313,344

 
$
1,039,393

Lease financing
57,576

 
57,354

Real estate – construction
736,985

 
633,389

Real estate – 1-4 family mortgage
2,762,683

 
2,343,721

Real estate – commercial mortgage
4,112,585

 
3,427,530

Installment loans to individuals
143,038

 
122,276

Gross loans
9,126,211

 
7,623,663

Unearned income
(3,304
)
 
(3,341
)
Loans, net of unearned income
9,122,907

 
7,620,322

Allowance for loan losses
(48,610
)
 
(46,211
)
Net loans
$
9,074,297

 
$
7,574,111
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, 2018
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
7,146

 
$
4,702

 
$
11,657

 
$
22,450

 
$
1,400

 
$
47,355

Charge-offs
(511
)
 
—

 
(211
)
 
(216
)
 
(402
)
 
(1,340
)
Recoveries
24

 
3

 
119

 
152

 
47

 
345

Net (charge-offs) recoveries
(487
)
 
3

 
(92
)
 
(64
)
 
(355
)
 
(995
)
Provision for loan losses charged to operations
1,448

 
8

 
(1,497
)
 
2,041

 
250

 
2,250

Ending balance
$
8,107

 
$
4,713

 
$
10,068

 
$
24,427

 
$
1,295

 
$
48,610

 
Commercial
 
Real Estate -
Construction
 
Real Estate -
1-4 Family
Mortgage
 
Real Estate  -
Commercial
Mortgage
 
Installment
and  Other(1)
 
Total
Nine Months Ended September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
5,542

 
$
3,428

 
$
12,009

 
$
23,384

 
$
1,848

 
$
46,211

Charge-offs
(1,627
)
 
—

 
(1,861
)
 
(875
)
 
(623
)
 
(4,986
)
Recoveries
373

 
10

 
335

 
756

 
101

 
1,575

Net (charge-offs) recoveries
(1,254
)
 
10

 
(1,526
)
 
(119
)
 
(522
)
 
(3,411
)
Provision for loan losses charged to operations
3,819

 
1,275

 
(415
)
 
1,162

 
(31
)
 
5,810

Ending balance
$
8,107

 
$
4,713

 
$
10,068

 
$
24,427

 
$
1,295

 
$
48,610

Period-End Amount Allocated to:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
421

 
$
70

 
$
70

 
$
715

 
$
4

 
$
1,280

Collectively evaluated for impairment
7,326

 
4,643

 
9,493

 
21,751

 
1,289

 
44,502

Purchased with deteriorated credit quality
360

 
—

 
505

 
1,961

 
2

 
2,828

Ending balance
$
8,107

 
$
4,713

 
$
10,068

 
$
24,427

 
$
1,295

 
$
48,610


 
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
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
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

(1)
Includes lease financing receivables.
Investment in loans, net of unearned income on impairment methodology
The following table presents the fair value of loans purchased from Brand as of the September 1, 2018 acquisition date.
At acquisition date:
 
September 1, 2018
  Contractually-required principal and interest
 
$
1,625,137

  Nonaccretable difference
 
(120,033
)
  Cash flows expected to be collected
 
1,505,104

  Accretable yield
 
(169,631
)
      Fair value
 
$
1,335,473


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
 
$
1,198,741

  Nonaccretable difference
 
(79,165
)
  Cash flows expected to be collected
 
1,119,576

  Accretable yield
 
(154,543
)
      Fair value
 
$
965,033

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, 2018
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
2,282

 
$
10,245

 
$
12,445

 
$
7,720

 
$
356

 
$
33,048

Collectively evaluated for impairment
1,278,423

 
726,740

 
2,701,045

 
3,959,612

 
191,976

 
8,857,796

Purchased with deteriorated credit quality
32,639

 
—

 
49,193

 
145,253

 
4,978

 
232,063

Ending balance
$
1,313,344

 
$
736,985

 
$
2,762,683

 
$
4,112,585

 
$
197,310

 
$
9,122,907

December 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
3,064

 
$
1,777

 
$
14,482

 
$
10,545

 
$
439

 
$
30,307

Collectively evaluated for impairment
1,021,014

 
631,612

 
2,275,270

 
3,260,648

 
174,211

 
7,362,755

Purchased with deteriorated credit quality
15,315

 
—

 
53,969

 
156,337

 
1,639

 
227,260

Ending balance
$
1,039,393

 
$
633,389

 
$
2,343,721

 
$
3,427,530

 
$
176,289

 
$
7,620,322

 
(1)
Includes lease financing receivables.