XML 25 R14.htm IDEA: XBRL DOCUMENT v3.19.2
Allowance for Loan Losses
 6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
Allowance for Loan Losses Allowance for Loan Losses
(In Thousands)
The following is a summary of total non purchased and purchased loans as of the dates presented:
 
 
June 30,
2019
 
December 31, 2018
Commercial, financial, agricultural
$
1,305,076

 
$
1,295,912

Lease financing
62,026

 
64,992

Real estate – construction
781,531

 
740,668

Real estate – 1-4 family mortgage
2,765,472

 
2,795,343

Real estate – commercial mortgage
4,017,969

 
4,051,509

Installment loans to individuals
125,448

 
137,832

Gross loans
9,057,522

 
9,086,256

Unearned income
(2,868
)
 
(3,127
)
Loans, net of unearned income
9,054,654

 
9,083,129

Allowance for loan losses
(50,059
)
 
(49,026
)
Net loans
$
9,004,595

 
$
9,034,103



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 by loan category 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, 2019
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
9,622

 
$
4,778

 
$
9,491

 
$
24,643

 
$
1,301

 
$
49,835

Charge-offs
(694
)
 
—

 
(378
)
 
(167
)
 
(212
)
 
(1,451
)
Recoveries
241

 
—

 
115

 
366

 
53

 
775

Net recoveries (charge-offs)
(453
)
 
—

 
(263
)
 
199

 
(159
)
 
(676
)
Provision for loan losses charged to operations
365

 
524

 
388

 
(540
)
 
163

 
900

Ending balance
$
9,534

 
$
5,302

 
$
9,616

 
$
24,302

 
$
1,305

 
$
50,059

 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
Real Estate -
Construction
 
Real Estate -
1-4 Family
Mortgage
 
Real Estate  -
Commercial
Mortgage
 
Installment
and  Other(1)
 
Total
Six Months Ended June 30, 2019
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
8,269

 
$
4,755

 
$
10,139

 
$
24,492

 
$
1,371

 
$
49,026

Charge-offs
(952
)
 
—

 
(875
)
 
(729
)
 
(432
)
 
(2,988
)
Recoveries
615

 
7

 
312

 
611

 
76

 
1,621

Net (charge-offs) recoveries
(337
)
 
7

 
(563
)
 
(118
)
 
(356
)
 
(1,367
)
Provision for loan losses charged to operations
1,602

 
540

 
40

 
(72
)
 
290

 
2,400

Ending balance
$
9,534

 
$
5,302

 
$
9,616

 
$
24,302

 
$
1,305

 
$
50,059

Period-End Amount Allocated to:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
1,191

 
$
8

 
$
188

 
$
482

 
$
4

 
$
1,873

Collectively evaluated for impairment
8,172

 
5,294

 
8,913

 
21,842

 
1,299

 
45,520

Purchased with deteriorated credit quality
171

 
—

 
515

 
1,978

 
2

 
2,666

Ending balance
$
9,534

 
$
5,302

 
$
9,616

 
$
24,302

 
$
1,305

 
$
50,059

(1)
Includes lease financing receivables.
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
Real Estate -
Construction
 
Real Estate -
1-4 Family
Mortgage
 
Real Estate  -
Commercial
Mortgage
 
Installment
and  Other(1)
 
Total
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
7,071

 
$
4,198

 
$
11,404

 
$
21,914

 
$
1,814

 
$
46,401

Charge-offs
(457
)
 
—

 
(979
)
 
(46
)
 
(99
)
 
(1,581
)
Recoveries
114

 
3

 
83

 
496

 
29

 
725

Net (charge-offs) recoveries
(343
)
 
3

 
(896
)
 
450

 
(70
)
 
(856
)
Provision for loan losses charged to operations
418

 
501

 
1,149

 
86

 
(344
)
 
1,810

Ending balance
$
7,146

 
$
4,702

 
$
11,657

 
$
22,450

 
$
1,400

 
$
47,355

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

 
$
3,428

 
$
12,009

 
$
23,384

 
$
1,848

 
$
46,211

Charge-offs
(1,116
)
 
—

 
(1,650
)
 
(659
)
 
(221
)
 
(3,646
)
Recoveries
349

 
7

 
216

 
604

 
54

 
1,230

Net (charge-offs) recoveries
(767
)
 
7

 
(1,434
)
 
(55
)
 
(167
)
 
(2,416
)
Provision for loan losses charged to operations
2,371

 
1,267

 
1,082

 
(879
)
 
(281
)
 
3,560

Ending balance
$
7,146

 
$
4,702

 
$
11,657

 
$
22,450

 
$
1,400

 
$
47,355

Period-End Amount Allocated to:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
417

 
$
—

 
$
76

 
$
1,014

 
$
8

 
$
1,515

Collectively evaluated for impairment
6,404

 
4,702

 
11,053

 
20,036

 
1,389

 
43,584

Purchased with deteriorated credit quality
325

 
—

 
528

 
1,400

 
3

 
2,256

Ending balance
$
7,146

 
$
4,702

 
$
11,657

 
$
22,450

 
$
1,400

 
$
47,355

(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, 2019
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
6,675

 
$
9,565

 
$
15,976

 
$
7,789

 
$
525

 
$
40,530

Collectively evaluated for impairment
1,274,775

 
771,966

 
2,706,816

 
3,888,483

 
180,739

 
8,822,779

Purchased with deteriorated credit quality
23,626

 
—

 
42,680

 
121,697

 
3,342

 
191,345

Ending balance
$
1,305,076

 
$
781,531

 
$
2,765,472

 
$
4,017,969

 
$
184,606

 
$
9,054,654

December 31, 2018
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
2,445

 
$
10,043

 
$
14,238

 
$
8,059

 
$
493

 
$
35,278

Collectively evaluated for impairment
1,264,324

 
730,625

 
2,732,862

 
3,903,012

 
194,774

 
8,825,597

Purchased with deteriorated credit quality
29,143

 
—

 
48,243

 
140,438

 
4,430

 
222,254

Ending balance
$
1,295,912

 
$
740,668

 
$
2,795,343

 
$
4,051,509

 
$
199,697

 
$
9,083,129

 
(1)
Includes lease financing receivables.