3. Loans and Allowance for Loan Losses

Loans, net of unearned income, consisted of the following.



	March 31,		December 31,
(in thousands)	2016		2015
Originated loans:
Commercial non-real estate	$	7,088,146	$	6,930,453
Construction and land development		1,086,382		1,139,743
Commercial real estate		3,504,803		3,220,509
Residential mortgages		1,839,889		1,887,256
Consumer		2,048,068		2,080,626
Total originated loans	$	15,567,288	$	15,258,587
Acquired loans:
Commercial non-real estate	$	51,949	$	59,843
Construction and land development		2,250		5,080
Commercial real estate		156,285		176,460
Residential mortgages		1,116		27
Consumer		20		20
Total acquired loans	$	211,620	$	241,430
FDIC acquired loans:
Commercial non-real estate	$	5,311	$	5,528
Construction and land development		6,782		7,127
Commercial real estate		15,004		15,582
Residential mortgages		159,962		162,241
Consumer		12,157		12,819
Total FDIC acquired loans	$	199,216	$	203,297
Total loans:
Commercial non-real estate	$	7,145,406	$	6,995,824
Construction and land development		1,095,414		1,151,950
Commercial real estate		3,676,092		3,412,551
Residential mortgages		2,000,967		2,049,524
Consumer		2,060,245		2,093,465
Total loans	$	15,978,124	$	15,703,314

The following briefly describes the distinction among originated, acquired and FDIC acquired loans and certain significant accounting policies relevant to each category.

Originated loans

Loans reported as “originated” include both loans and leases originated for investment and acquired-performing loans where the discount (premium) has been fully accreted (amortized). Originated loans are reported at the principal balance outstanding, net of unearned income. Interest on loans and accretion of unearned income, including deferred loan fees, are computed in a manner that approximates a level yield on recorded principal. Interest on loans is recognized in income as earned.

The accrual of interest on an originated loan is discontinued when, in management’s opinion, it is probable that the borrower will be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. When accrual of interest is discontinued on a loan, all unpaid accrued interest is reversed and payments subsequently received are applied first to recover principal. Interest income is recognized for payments received after contractual principal has been satisfied. Loans are returned to accrual status when all the principal and interest contractually due are brought current and future payment performance is reasonably assured.

Acquired loans

Loans reported as “acquired” are those loans that were purchased in the 2011 Whitney Holding Corporation acquisition. These loans were recorded at estimated fair value at the acquisition date with no carryover of the related allowance for loan losses. At the time of the Whitney acquisition, the Whitney acquired loans were segregated between those considered to be performing (“acquired-performing”) and those with evidence of credit deterioration (“acquired-impaired”) based on such factors as past due status, nonaccrual status and credit risk ratings (rated substandard or worse). The acquired loans were further segregated into loan pools designed to facilitate the development of expected cash flows to be used in estimating fair value for purchase accounting. Acquired-performing loans are accounted for under ASC 310-20 and acquired-impaired loans are accounted for under ASC 310-30.

Acquired-performing loans were segregated into pools based on common risk characteristics such as loan type, credit risk ratings, and contractual interest rate and repayment terms. The major loan types included commercial and industrial loans not secured by real estate, real estate construction and land development loans, commercial real estate loans, residential mortgage loans, and consumer loans, with further segregation within certain loan types as needed. Expected cash flows, both principal and interest, from each pool were estimated based on key assumptions covering such factors as prepayments, default rates, and severity of loss given a default. These assumptions were developed using both historical experience and the portfolio characteristics at acquisition as well as available market research. The fair value for each acquired-performing pool was based on the estimate of expected cash flows from the pool discounted at prevailing market rates.

The difference at the acquisition date between the fair value and the contractual amounts due of an acquired-performing loan pool (the “fair value discount”) is accreted into income over the estimated life of the pool. Acquired-performing loans are placed on nonaccrual status and reported as nonperforming or past due using the same criteria applied to the originated portfolio.

The acquired-impaired loans were segregated into pools by identifying loans with common credit risk profiles and were based primarily on characteristics such as loan type and market area in which originated. The major loan types included commercial and industrial loans not secured by real estate, real estate construction and land development loans, commercial real estate loans, and residential mortgage loans, with further segregation within certain loan types as needed. The acquired-impaired loans were further disaggregated by geographic region in recognition of the differences in general economic conditions affecting borrowers in certain states. The fair value estimate for each pool of acquired-impaired loans was based on the estimate of expected cash flows from the pool discounted at prevailing market rates.

The excess of estimated cash flows expected to be collected from an acquired-impaired loan pool over the pool’s carrying value is referred to as the accretable yield and is recognized in interest income using an effective yield method over the expected life of the loan pool. Each pool of acquired-impaired loans is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Acquired-impaired loans in pools with an accretable yield and expected cash flows that are reasonably estimable are considered to be accruing and performing even though collection of contractual payments on loans within the pool may be in doubt, because the pool is the unit of accounting. Acquired-impaired loans are generally not subject to individual evaluation for impairment and are not reported with impaired loans or troubled debt restructurings even if they would otherwise qualify for such treatment.

FDIC acquired loans and the related loss share receivable

Loans reported as “FDIC acquired” are loans purchased in the 2009 acquisition of Peoples First Community Bank (“Peoples First”) that were covered by two loss share agreements between the FDIC and the Company. These loans are accounted for as acquired-impaired loans as described above in the section on acquired loans. The Company treated all loans for the Peoples First acquisition as impaired based on the significant amount of deteriorating and nonperforming loans, comprised mainly of adjustable rate mortgages and home equity loans, located in Florida. The loss share receivable is measured separately from the related covered loans as it is not contractually embedded in the loans and is not transferrable should the loans be sold. The fair value of the loss share receivable at acquisition was estimated by discounting expected reimbursements for losses from the loans covered by the loss share agreements, including appropriate consideration of possible true-up payments to the FDIC at the expiration of the agreements.

The loss share receivable is reviewed and updated prospectively as loss estimates related to covered loan pools change. Increases in expected reimbursements under the loss sharing agreement will lead to an increase in the loss share receivable. A decrease in expected reimbursements is reflected first as a reversal of any previously recorded increase in the loss share receivable on the covered loan pools with the remainder reflected as an increase in the loss share receivable’s amortization rate. The loss share receivable serves to offset the impact on provision due to impairments or impairment reversals that occur as a result of changes in loss estimates on the underlying covered loan pools. The excess (or shortfall) of expected claims compared to the carrying value of the loss share receivable is accreted (amortized) into noninterest income over the shorter of the remaining life of the covered loan pool or the life of the loss share agreement. The impact on operations of an increase in the loss share receivable’s amortization rate is associated with an increase in the accretable yield on the underlying loan pool. The loss share receivable is reduced as cash is received from the FDIC related to losses incurred on covered assets.

The following schedule shows activity in the loss share receivable for the three months ended March 31, 2016 and 2015.



	Three Months Ended
	March 31,		March 31,
(in thousands)	2016		2015
Balance, January 1	$	29,868	$	60,272
Amortization		(1,613)		(1,197)
Charge-offs, write-downs and other recoveries		(1,005)		(1,475)
External expenses qualifying under loss share agreement		465		298
Changes due to changes in cash flow projections		(2,189)		(421)
Net payments to (from) FDIC		302		(7,580)
Ending balance	$	25,828	$	49,897

The loss share agreement covering the non-single family FDIC acquired portfolio expired in December 2014. The loss share agreement covering the single family portfolio expires in December 2019.

The following schedule shows activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2016 and 2015, as well as the corresponding recorded investment in loans at the end of each period.



			Construction
	Commercial		and land		Commercial		Residential
(in thousands)	non-real estate		development		real estate		mortgages		Consumer		Total
	Three Months Ended March 31, 2016
Originated loans
Allowance for loan losses:
Beginning balance	$	108,982	$	4,985	$	14,059	$	7,690	$	22,310	$	158,026
Charge-offs		(17,667)		(110)		(898)		(175)		(5,843)		(24,693)
Recoveries		809		605		185		301		1,494		3,394
Net provision for loan losses		52,096		(1,627)		7,325		235		2,529		60,558
Ending balance	$	144,220	$	3,853	$	20,671	$	8,051	$	20,490	$	197,285
Ending balance:
Individually evaluated for impairment	$	26,502	$	185	$	1,332	$	125	$	16	$	28,160
Collectively evaluated for impairment		117,718		3,668		19,339		7,926		20,474		169,125
Loans:
Ending balance:	$	7,088,146	$	1,086,382	$	3,504,803	$	1,839,889	$	2,048,068	$	15,567,288
Individually evaluated for impairment		201,029		14,072		12,393		883		58		228,435
Collectively evaluated for impairment		6,887,117		1,072,310		3,492,410		1,839,006		2,048,010		15,338,853
Acquired loans
Allowance for loan losses:
Beginning balance	$	—	$	—	$	33	$	—	$	—	$	33
Charge-offs		—		—		—		—		—		—
Recoveries		—		—		—		—		—		—
Net provision for loan losses		—		—		(26)		—		—		(26)
Ending balance	$	—	$	—	$	7	$	—	$	—	$	7
Ending balance:
Individually evaluated for impairment	$	—	$	—	$	7	$	—	$	—	$	7
Amounts related to acquired-impaired loans		—		—		—		—		—		—
Collectively evaluated for impairment		—		—		—		—		—		—
Loans:
Ending balance:	$	51,949	$	2,250	$	156,285	$	1,116	$	20	$	211,620
Individually evaluated for impairment		—		—		2,306		—		—		2,306
Acquired-impaired loans		7,348		2,148		12,045		1,116		20		22,677
Collectively evaluated for impairment		44,601		102		141,934		—		—		186,637



			Construction
	Commercial		and land		Commercial		Residential
(in thousands)	non-real estate		development		real estate		mortgages		Consumer		Total
	Three Months Ended March 31, 2016
FDIC acquired loans
Allowance for loan losses:
Beginning balance	$	446	$	657	$	1,807	$	17,663	$	2,547	$	23,120
Charge-offs		—		(18)		(29)		—		—		(47)
Recoveries		3		35		36		1		39		114
Net provision for loan losses		7		(151)		(303)		1,130		(1,179)		(496)
Increase (decrease) in FDIC loss share receivable		(17)		—		—		(2,153)		(19)		(2,189)
Ending balance	$	439	$	523	$	1,511	$	16,641	$	1,388	$	20,502
Ending balance:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Amounts related to acquired-impaired loans		439		523		1,511		16,641		1,388		20,502
Collectively evaluated for impairment		—		—		—		—		—		—
Loans:
Ending balance:	$	5,311	$	6,782	$	15,004	$	159,962	$	12,157	$	199,216
Individually evaluated for impairment		—		—		—		—		—		—
Acquired-impaired loans		5,311		6,782		15,004		159,962		12,157		199,216
Collectively evaluated for impairment		—		—		—		—		—		—
Total loans
Allowance for loan losses:
Beginning balance	$	109,428	$	5,642	$	15,899	$	25,353	$	24,857	$	181,179
Charge-offs		(17,667)		(128)		(927)		(175)		(5,843)		(24,740)
Recoveries		812		640		221		302		1,533		3,508
Net provision for loan losses		52,103		(1,778)		6,996		1,365		1,350		60,036
Increase (decrease) in FDIC loss share receivable		(17)		—		—		(2,153)		(19)		(2,189)
Ending balance	$	144,659	$	4,376	$	22,189	$	24,692	$	21,878	$	217,794
Ending balance:
Individually evaluated for impairment	$	26,502	$	185	$	1,339	$	125	$	16	$	28,167
Amounts related to acquired-impaired loans		439		523		1,511		16,641		1,388		20,502
Collectively evaluated for impairment		117,718		3,668		19,339		7,926		20,474		169,125
Loans:
Ending balance:	$	7,145,406	$	1,095,414	$	3,676,092	$	2,000,967	$	2,060,245	$	15,978,124
Individually evaluated for impairment		201,029		14,072		14,699		883		58		230,741
Acquired-impaired loans		12,659		8,930		27,049		161,078		12,177		221,893
Collectively evaluated for impairment		6,931,718		1,072,412		3,634,344		1,839,006		2,048,010		15,525,490



			Construction
	Commercial		and land		Commercial		Residential
(in thousands)	non-real estate		development		real estate		mortgages		Consumer		Total
	Three Months ended March 31, 2015
Originated loans
Allowance for loan losses:
Beginning balance	$	50,258	$	5,413	$	16,544	$	8,051	$	17,435	$	97,701
Charge-offs		(1,697)		(747)		(251)		(1,209)		(3,556)		(7,460)
Recoveries		981		1,243		(3)		305		1,280		3,806
Net provision for loan losses		6,754		(1,500)		(966)		738		1,421		6,447
Ending balance	$	56,296	$	4,409	$	15,324	$	7,885	$	16,580	$	100,494
Ending balance:
Individually evaluated for impairment	$	529	$	71	$	147	$	88	$	3	$	838
Collectively evaluated for impairment		55,767		4,338		15,177		7,797		16,577		99,656
Loans:
Ending balance:	$	5,861,887	$	1,087,449	$	2,492,351	$	1,736,033	$	1,742,810	$	12,920,530
Individually evaluated for impairment		14,566		4,381		17,210		2,423		120		38,700
Collectively evaluated for impairment		5,847,321		1,083,068		2,475,141		1,733,610		1,742,690		12,881,830
Acquired loans
Allowance for loan losses:
Beginning balance	$	—	$	—	$	477	$	—	$	—	$	477
Charge-offs		—		—		—		—		—		—
Recoveries		—		—		—		—		—		—
Net provision for loan losses		—		—		(223)		—		—		(223)
Ending balance	$	—	$	—	$	254	$	—	$	—	$	254
Ending balance:
Individually evaluated for impairment	$	—	$	—	$	254	$	—	$	—	$	254
Amounts related to acquired-impaired loans		—		—		—		—		—		—
Collectively evaluated for impairment		—		—		—		—		—		—
Loans:
Ending balance:	$	118,260	$	14,579	$	629,975	$	2,485	$	25	$	765,324
Individually evaluated for impairment		—		—		2,579		—		—		2,579
Acquired-impaired loans		8,708		12,801		21,226		2,485		25		45,245
Collectively evaluated for impairment		109,552		1,778		606,170		—		—		717,500



			Construction
	Commercial		and land		Commercial		Residential
(in thousands)	non-real estate		development		real estate		mortgages		Consumer		Total
	Three Months ended March 31, 2015
FDIC acquired loans
Allowance for loan losses:
Beginning balance	$	911	$	1,008	$	4,061	$	20,609	$	3,995	$	30,584
Charge-offs		(127)		(276)		(2,368)		(93)		(140)		(3,004)
Recoveries		14		406		113		—		16		549
Net provision for loan losses		(2)		(6)		202		(195)		(69)		(70)
Increase (decrease) in FDIC loss share receivable		(13)		(34)		1,207		(1,171)		(410)		(421)
Ending balance	$	783	$	1,098	$	3,215	$	19,150	$	3,392	$	27,638
Ending balance:
Individually evaluated for impairment	$	—	$	—	$	—	$	—	$	—	$	—
Amounts related to acquired-impaired loans		783		1,098		3,215		19,150		3,392		27,638
Collectively evaluated for impairment		—		—		—		—		—		—
Loans:												—
Ending balance:	$	6,937	$	11,482	$	27,777	$	175,367	$	16,969	$	238,532
Individually evaluated for impairment		—		—		—		—		—		—
Acquired-impaired loans		6,937		11,482		27,777		175,367		16,969		238,532
Collectively evaluated for impairment		—		—		—		—		—		—
Total loans
Allowance for loan losses:
Beginning balance	$	51,169	$	6,421	$	21,082	$	28,660	$	21,430	$	128,762
Charge-offs		(1,824)		(1,023)		(2,619)		(1,302)		(3,696)		(10,464)
Recoveries		995		1,649		110		305		1,296		4,355
Net provision for loan losses		6,752		(1,506)		(987)		543		1,352		6,154
Increase (decrease) in FDIC loss share receivable		(13)		(34)		1,207		(1,171)		(410)		(421)
Ending balance	$	57,079	$	5,507	$	18,793	$	27,035	$	19,972	$	128,386
Ending balance:
Individually evaluated for impairment	$	529	$	71	$	401	$	88	$	3	$	1,092
Amounts related to acquired-impaired loans		783		1,098		3,215		19,150		3,392		27,638
Collectively evaluated for impairment		55,767		4,338		15,177		7,797		16,577		99,656
Loans:
Ending balance:	$	5,987,084	$	1,113,510	$	3,150,103	$	1,913,885	$	1,759,804	$	13,924,386
Individually evaluated for impairment		14,566		4,381		19,789		2,423		120		41,279
Acquired-impaired loans		15,645		24,283		49,003		177,852		16,994		283,777
Collectively evaluated for impairment		5,956,873		1,084,846		3,081,311		1,733,610		1,742,690		13,599,330

The following table shows the composition of nonaccrual loans by portfolio segment and class. Acquired-impaired and certain FDIC acquired loans are considered to be performing due to the application of the accretion method and are excluded from the table. FDIC acquired loans accounted for using the cost recovery method do not have an accretable yield and are included below as nonaccrual loans. Acquired-performing loans that have subsequently been placed on nonaccrual status are also included below.



	March 31,		December 31,
(in thousands)	2016		2015
Originated loans:
Commercial non-real estate	$	165,930	$	88,743
Construction and land development		16,997		17,294
Commercial real estate		19,217		17,824
Residential mortgages		23,713		23,799
Consumer		8,538		9,061
Total originated loans	$	234,395	$	156,721
Acquired loans:
Commercial non-real estate	$	—	$	—
Construction and land development		—		—
Commercial real estate		2,908		2,992
Residential mortgages		—		—
Consumer		—		—
Total acquired loans	$	2,908	$	2,992
FDIC acquired loans:
Commercial non-real estate	$	—	$	—
Construction and land development		—		—
Commercial real estate		—		—
Residential mortgages		—		—
Consumer		—		—
Total FDIC acquired loans	$	—	$	—
Total loans:
Commercial non-real estate		165,930		88,743
Construction and land development		16,997		17,294
Commercial real estate		22,125		20,816
Residential mortgages		23,713		23,799
Consumer		8,538		9,061
Total loans	$	237,303	$	159,713

Nonaccrual loans include loans modified in troubled debt restructurings (“TDRs”) of $18.3 million and $8.8 million at March 31, 2016 and December 31, 2015, respectively. Total TDRs, both accruing and nonaccruing, were $63.9 million as of March 31, 2016 and $13.1 million at December 31, 2015.

The table below details TDRs that were modified during the three months ended March 31, 2016 and March 31, 2015 by portfolio segment. The TDRs during the three months ended March 31, 2016 and 2015 were extended amortization, other modification of payment terms, or covenant violations. All are individually evaluated for impairment.



	Three Months Ended
($ in thousands)	March 31, 2016					March 31, 2015
		Pre-Modification		Post-Modification			Pre-Modification		Post-Modification
		Outstanding		Outstanding			Outstanding		Outstanding
	Number of	Recorded		Recorded		Number of	Recorded		Recorded
Troubled Debt Restructurings:	Contracts	Investment		Investment		Contracts	Investment		Investment
Originated loans:
Commercial non-real estate	11	$	51,246	$	51,246	—	$	—	$	—
Construction and land development	—		—		—	—		—		—
Commercial real estate	—		—		—	—		—		—
Residential mortgages	—		—		—	2		68		68
Consumer	—		—		—	1		20		20
Total originated loans	11	$	51,246	$	51,246	3	$	88	$	88
Acquired loans:
Commercial non-real estate	—	$	—	$	—	—	$	—	$	—
Construction and land development	—		—		—	—		—		—
Commercial real estate	—		—		—	—		—		—
Residential mortgages	—		—		—	—		—		—
Consumer	—		—		—	—		—		—
Total acquired loans	—	$	—	$	—	—	$	—	$	—
FDIC acquired loans:
Commercial non-real estate	—	$	—	$	—	—	$	—	$	—
Construction and land development	—		—		—	—		—		—
Commercial real estate	—		—		—	—		—		—
Residential mortgages	—		—		—	—		—		—
Consumer	—		—		—	—		—		—
Total FDIC acquired loans	—	$	—	$	—	—	$	—	$	—
Total loans:
Commercial non-real estate	11	$	51,246	$	51,246	—	$	—	$	—
Construction and land development	—		—		—	—		—		—
Commercial real estate	—		—		—	—		—		—
Residential mortgages	—		—		—	2		68		68
Consumer	—		—		—	1		20		20
Total loans	11	$	51,246	$	51,246	3	$	88	$	88

No TDRs that subsequently defaulted within twelve months of modification were recorded in the three months ended March 31, 2016 or 2015.

The tables below present loans that are individually evaluated for impairment disaggregated by class at March 31, 2016 and December 31, 2015. Loans individually evaluated for impairment include TDRs and loans that are determined to be impaired and have aggregate relationship balances of $1 million or more.



	March 31, 2016						December 31, 2015
				Unpaid						Unpaid
		Recorded		Principal		Related		Recorded		Principal		Related
(in thousands)		Investment		Balance		Allowance		Investment		Balance		Allowance
Originated loans:
With no related allowance recorded:
Commercial non-real estate	$	77,155	$	85,295	$	—	$	34,788	$	37,285	$	—
Construction and land development		12,413		12,413		—		12,461		12,461		—
Commercial real estate		5,939		6,140		—		7,785		8,499		—
Residential mortgages		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
		95,507		103,848		—		55,034		58,245		—
With an allowance recorded:
Commercial non-real estate		123,874		125,744		26,502		46,834		47,703		19,031
Construction and land development		1,659		2,315		185		1,765		2,323		392
Commercial real estate		6,454		6,521		1,332		6,406		6,413		1,372
Residential mortgages		883		1,394		125		895		1,405		127
Consumer		58		58		16		152		152		33
		132,928		136,032		28,160		56,052		57,996		20,955
Total:
Commercial non-real estate		201,029		211,039		26,502		81,622		84,988		19,031
Construction and land development		14,072		14,728		185		14,226		14,784		392
Commercial real estate		12,393		12,661		1,332		14,191		14,912		1,372
Residential mortgages		883		1,394		125		895		1,405		127
Consumer		58		58		16		152		152		33
Total originated loans	$	228,435	$	239,880	$	28,160	$	111,086	$	116,241	$	20,955

Acquired loans:
With an allowance recorded:
Commercial non-real estate	$	—	$	—	$	—	$	—	$	—	$	—
Construction and land development		—		—		—		—		—		—
Commercial real estate		2,306		2,343		7		2,340		2,382		33
Residential mortgages		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
		2,306		2,343		7		2,340		2,382		33
Total:
Commercial non-real estate		—		—		—		—		—		—
Construction and land development		—		—		—		—		—		—
Commercial real estate		2,306		2,343		7		2,340		2,382		33
Residential mortgages		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total acquired loans	$	2,306	$	2,343	$	7	$	2,340	$	2,382	$	33



	March 31, 2016						December 31, 2015
				Unpaid						Unpaid
		Recorded		Principal		Related		Recorded		Principal		Related
(in thousands)		Investment		Balance		Allowance		Investment		Balance		Allowance
Total loans:
With no related allowance recorded:
Commercial non-real estate	$	77,155	$	85,295	$	—	$	34,788	$	37,285	$	—
Construction and land development		12,413		12,413		—		12,461		12,461		—
Commercial real estate		5,939		6,140		—		7,785		8,499		—
Residential mortgages		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
		95,507		103,848		—		55,034		58,245		—
With an allowance recorded:
Commercial non-real estate		123,874		125,744		26,502		46,834		47,703		19,031
Construction and land development		1,659		2,315		185		1,765		2,323		392
Commercial real estate		8,760		8,864		1,339		8,746		8,795		1,405
Residential mortgages		883		1,394		125		895		1,405		127
Consumer		58		58		16		152		152		33
		135,234		138,375		28,167		58,392		60,378		20,988
Total:
Commercial non-real estate		201,029		211,039		26,502		81,622		84,988		19,031
Construction and land development		14,072		14,728		185		14,226		14,784		392
Commercial real estate		14,699		15,004		1,339		16,531		17,294		1,405
Residential mortgages		883		1,394		125		895		1,405		127
Consumer		58		58		16		152		152		33
Total loans	$	230,741	$	242,223	$	28,167	$	113,426	$	118,623	$	20,988



	Three Months Ended
	March 31, 2016				March 31, 2015
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(in thousands)	Investment		Recognized		Investment		Recognized
Originated loans:
With no related allowance recorded:
Commercial non-real estate	$	55,972	$	—	$	7,196	$	—
Construction and land development		12,437		—		1,915		—
Commercial real estate		6,862		9		9,563		10
Residential mortgages		—		—		517		1
Consumer		—		—		51		—
		75,271		9		19,242		11
With an allowance recorded:
Commercial non-real estate		85,354		182		2,081		2
Construction and land development		1,712		—		4,401		32
Commercial real estate		6,430		27		5,103		17
Residential mortgages		889		2		2,023		11
Consumer		105		1		13		2
		94,490		212		13,621		64
Total:
Commercial non-real estate		141,326		182		9,277		2
Construction and land development		14,149		—		6,316		32
Commercial real estate		13,292		36		14,666		27
Residential mortgages		889		2		2,540		12
Consumer		105		1		64		2
Total originated loans	$	169,761	$	221	$	32,863	$	75

Acquired loans:
With no related allowance recorded:
Commercial non-real estate	$	—	$	—	$	—	$	—
Construction and land development		—		—		—		—
Commercial real estate		—		—		—		—
Residential mortgages		—		—		—		—
Consumer		—		—		—		—
		—		—		—		—
With an allowance recorded:
Commercial non-real estate		—		—		—		—
Construction and land development		—		—		—		—
Commercial real estate		2,323		—		2,635		—
Residential mortgages		—		—		—		—
Consumer		—		—		—		—
		2,323		—		2,635		—
Total:
Commercial non-real estate		—		—		—		—
Construction and land development		—		—		—		—
Commercial real estate		2,323		—		2,635		—
Residential mortgages		—		—		—		—
Consumer		—		—		—		—
Total acquired loans	$	2,323	$	—	$	2,635	$	—



	Three Months Ended
	March 31, 2016				March 31, 2015
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(in thousands)	Investment		Recognized		Investment		Recognized
Total loans:
With no related allowance recorded:
Commercial non-real estate	$	55,972	$	—	$	7,196	$	—
Construction and land development		12,437		—		1,915		—
Commercial real estate		6,862		9		9,563		10
Residential mortgages		—		—		517		1
Consumer		—		—		51		—
		75,271		9		19,242		11
With an allowance recorded:
Commercial non-real estate		85,354		182		2,081		2
Construction and land development		1,712		—		4,401		32
Commercial real estate		8,753		27		7,738		17
Residential mortgages		889		2		2,023		11
Consumer		105		1		13		2
		96,813		212		16,256		64
Total:
Commercial non-real estate		141,326		182		9,277		2
Construction and land development		14,149		—		6,316		32
Commercial real estate		15,615		36		17,301		27
Residential mortgages		889		2		2,540		12
Consumer		105		1		64		2
Total loans	$	172,084	$	221	$	35,498	$	75

The tables below present the age analysis of past due loans at March 31, 2016 and December 31, 2015. FDIC acquired and acquired-impaired loans accounted for in pools with an accretable yield are considered to be current.



													Recorded
					Greater than								investment
	30-59 days		60-89 days		90 days		Total				Total		> 90 days and
March 31, 2016	past due		past due		past due		past due		Current		Loans		still accruing
(in thousands)
Originated loans:
Commercial non-real estate	$	35,443	$	2,843	$	23,366	$	61,652	$	7,026,494	$	7,088,146	$	2,503
Construction and land development		6,007		126		18,684		24,817		1,061,565		1,086,382		3,610
Commercial real estate		7,873		1,042		13,789		22,704		3,482,099		3,504,803		1,892
Residential mortgages		18,644		6,615		10,375		35,634		1,804,255		1,839,889		123
Consumer		14,050		3,500		6,171		23,721		2,024,347		2,048,068		1,098
Total	$	82,017	$	14,126	$	72,385	$	168,528	$	15,398,760	$	15,567,288	$	9,226
Acquired loans:
Commercial non-real estate	$	—	$	—	$	—	$	—	$	51,949	$	51,949	$	—
Construction and land development		—		—		—		—		2,250		2,250		—
Commercial real estate		—		—		453		453		155,832		156,285		—
Residential mortgages		—		—		—		—		1,116		1,116		—
Consumer		—		—		—		—		20		20		—
Total	$	—	$	—	$	453	$	453	$	211,167	$	211,620	$	—
FDIC acquired loans:
Commercial non-real estate	$	—	$	—	$	—	$	—	$	5,311	$	5,311	$	—
Construction and land development		—		—		—		—		6,782		6,782		—
Commercial real estate		—		—		—		—		15,004		15,004		—
Residential mortgages		—		—		—		—		159,962		159,962		—
Consumer		—		—		—		—		12,157		12,157		—
Total	$	—	$	—	$	—	$	—	$	199,216	$	199,216	$	—
Total loans:
Commercial non-real estate	$	35,443	$	2,843	$	23,366	$	61,652	$	7,083,754	$	7,145,406	$	2,503
Construction and land development		6,007		126		18,684		24,817		1,070,597		1,095,414		3,610
Commercial real estate		7,873		1,042		14,242		23,157		3,652,935		3,676,092		1,892
Residential mortgages		18,644		6,615		10,375		35,634		1,965,333		2,000,967		123
Consumer		14,050		3,500		6,171		23,721		2,036,524		2,060,245		1,098
Total	$	82,017	$	14,126	$	72,838	$	168,981	$	15,809,143	$	15,978,124	$	9,226



													Recorded
					Greater than								investment
	30-59 days		60-89 days		90 days		Total				Total		> 90 days and
December 31, 2015	past due		past due		past due		past due		Current		Loans		still accruing
(in thousands)
Originated loans:
Commercial non-real estate	$	17,406	$	1,468	$	25,007	$	43,881	$	6,886,572	$	6,930,453	$	3,060
Construction and land development		19,886		436		4,043		24,365		1,115,378		1,139,743		1,230
Commercial real estate		6,754		1,329		12,503		20,586		3,199,923		3,220,509		1,034
Residential mortgages		18,657		4,360		11,840		34,857		1,852,399		1,887,256		163
Consumer		16,309		4,432		8,645		29,386		2,051,240		2,080,626		2,166
Total	$	79,012	$	12,025	$	62,038	$	153,075	$	15,105,512	$	15,258,587	$	7,653
Acquired loans:
Commercial non-real estate	$	—	$	—	$	—	$	—	$	59,843	$	59,843	$	—
Construction and land development		—		—		—		—		5,080		5,080		—
Commercial real estate		15		76		525		616		175,844		176,460		—
Residential mortgages		—		—		—		—		27		27		—
Consumer		—		—		—		—		20		20		—
Total	$	15	$	76	$	525	$	616	$	240,814	$	241,430	$	—
FDIC acquired loans:
Commercial non-real estate	$	—	$	—	$	—	$	—	$	5,528	$	5,528	$	—
Construction and land development		—		—		—		—		7,127		7,127		—
Commercial real estate		—		—		—		—		15,582		15,582		—
Residential mortgages		—		—		—		—		162,241		162,241		—
Consumer		—		—		—		—		12,819		12,819		—
Total	$	—	$	—	$	—	$	—	$	203,297	$	203,297	$	—
Total loans:
Commercial non-real estate	$	17,406	$	1,468	$	25,007	$	43,881	$	6,951,943	$	6,995,824	$	3,060
Construction and land development		19,886		436		4,043		24,365		1,127,585		1,151,950		1,230
Commercial real estate		6,769		1,405		13,028		21,202		3,391,349		3,412,551		1,034
Residential mortgages		18,657		4,360		11,840		34,857		2,014,667		2,049,524		163
Consumer		16,309		4,432		8,645		29,386		2,064,079		2,093,465		2,166
Total	$	79,027	$	12,101	$	62,563	$	153,691	$	15,549,623	$	15,703,314	$	7,653

The following tables present the credit quality indicators of the Company’s various classes of loans at March 31, 2016 and December 31, 2015.

Commercial Non-Real Estate Credit Exposure

Credit Risk Profile by Internally Assigned Grade



	March 31, 2016								December 31, 2015
(in thousands)	Originated		Acquired		FDIC acquired		Total		Originated		Acquired		FDIC acquired		Total
Grade:
Pass	$	5,895,649	$	44,847	$	2,068	$	5,942,564	$	6,205,372	$	53,381	$	2,110	$	6,260,863
Pass-Watch		298,176		—		733		298,909		167,720		—		869		168,589
Special Mention		208,731		2		—		208,733		211,230		—		—		211,230
Substandard		683,449		7,100		2,510		693,059		346,087		6,462		2,549		355,098
Doubtful		2,141		—		—		2,141		44		—		—		44
Total	$	7,088,146	$	51,949	$	5,311	$	7,145,406	$	6,930,453	$	59,843	$	5,528	$	6,995,824

Construction Credit Exposure

Credit Risk Profile by Internally Assigned Grade



	March 31, 2016								December 31, 2015
(in thousands)	Originated		Acquired		FDIC acquired		Total		Originated		Acquired		FDIC acquired		Total
Grade:
Pass	$	1,036,847	$	837	$	1,455	$	1,039,139	$	1,092,299	$	910	$	2,087	$	1,095,296
Pass-Watch		22,947		150		1,885		24,982		5,709		223		909		6,841
Special Mention		592		—		21		613		12,017		—		280		12,297
Substandard		25,996		1,263		3,421		30,680		29,718		3,947		3,851		37,516
Total	$	1,086,382	$	2,250	$	6,782	$	1,095,414	$	1,139,743	$	5,080	$	7,127	$	1,151,950

Commercial Real Estate Credit Exposure

Credit Risk Profile by Internally Assigned Grade



	March 31, 2016								December 31, 2015
(in thousands)	Originated		Acquired		FDIC acquired		Total		Originated		Acquired		FDIC acquired		Total
Grade:
Pass	$	3,293,852	$	136,879	$	3,114	$	3,433,845	$	3,058,342	$	159,750	$	3,117	$	3,221,209
Pass-Watch		60,595		1,684		2,233		64,512		41,830		2,355		2,296		46,481
Special Mention		42,170		4,804		1,143		48,117		40,576		5,112		1,364		47,052
Substandard		108,171		12,918		8,514		129,603		79,745		9,243		8,805		97,793
Doubtful		15		—		—		15		16		—		—		16
Total	$	3,504,803	$	156,285	$	15,004	$	3,676,092	$	3,220,509	$	176,460	$	15,582	$	3,412,551

Residential Mortgage Credit Exposure

Credit Risk Profile Based on Payment Activity and Accrual Status



	March 31, 2016								December 31, 2015
(in thousands)	Originated		Acquired		FDIC acquired		Total		Originated		Acquired		FDIC acquired		Total
Performing	$	1,816,053	$	1,116	$	159,962	$	1,977,131	$	1,863,295	$	27	$	162,241	$	2,025,563
Nonperforming		23,836		—		—		23,836		23,961		—		—		23,961
Total	$	1,839,889	$	1,116	$	159,962	$	2,000,967	$	1,887,256	$	27	$	162,241	$	2,049,524

Consumer Credit Exposure

Credit Risk Profile Based on Payment Activity and Accrual Status



	March 31, 2016								December 31, 2015
(in thousands)	Originated		Acquired		FDIC acquired		Total		Originated		Acquired		FDIC acquired		Total
Performing	$	2,038,432	$	20	$	12,157	$	2,050,609	$	2,069,399	$	20	$	12,819	$	2,082,238
Nonperforming		9,636		—		—		9,636		11,227		—		—		11,227
Total	$	2,048,068	$	20	$	12,157	$	2,060,245	$	2,080,626	$	20	$	12,819	$	2,093,465

Below are the definitions of the Company’s internally assigned grades:

Commercial:

Pass - loans properly approved, documented, collateralized, and performing which do not reflect an abnormal credit risk.

Pass - Watch - credits in this category have heightened risk factors that warrant additional monitoring; however, these risk factors have not manifested themselves as potential weaknesses. The “Watch” grade should be regarded as a transition category.

Special Mention – a criticized asset category defined as having potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the credit or the institution’s credit position. Special mention credits are not considered part of the Classified credit categories and do not expose an institution to sufficient risk to warrant adverse classification.

Substandard – an asset that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful – an asset that has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make collection nor liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss - credits classified as Loss are considered uncollectable and are charged off promptly once so classified.

Residential and Consumer:

Performing – loans on which payments of principal and interest are less than 90 days past due.

Nonperforming – a nonperforming loan is a loan that is in default or close to being in default and there are good reasons to doubt that payments will be made in full. All loans rated as nonaccrual loans are also classified as nonperforming.

Loan review uses a risk-focused continuous monitoring program that provides for an independent, objective and timely review of credit risk within the Company.

Changes in the carrying amount of acquired-impaired loans and accretable yield are presented in the following table for the three months ended March 31, 2016 and the year ended December 31, 2015.



	March 31, 2016								December 31, 2015
	FDIC acquired				Acquired				FDIC acquired				Acquired
	Carrying				Carrying				Carrying				Carrying
	Amount		Accretable		Amount		Accretable		Amount		Accretable		Amount		Accretable
(in thousands)	of Loans		Yield		of Loans		Yield		of Loans		Yield		of Loans		Yield
Balance at beginning of period	$	203,297	$	91,564	$	22,541	$	37,924	$	252,409	$	112,788	$	61,276	$	74,668
Payments received, net		(7,290)		(28)		(2,145)		(2,598)		(62,579)		(422)		(53,268)		(21,556)
Accretion		3,209		(3,209)		2,281		(2,281)		13,467		(13,467)		14,533		(14,533)
Increase (decrease) in expected cash flows based on actual cash flows and changes in cash flow assumptions		—		4,207		—		56		—		(3,537)		—		(701)
Net transfers to (from) nonaccretable difference to accretable yield		—		3,776		—		947		—		(3,798)		—		46
Balance at end of period	$	199,216	$	96,310	$	22,677	$	34,048	$	203,297	$	91,564	$	22,541	$	37,924

Included in loans are $6.0 million and $7.4 million of consumer loans secured by single family residential mortgage real estate that are in process of foreclosure as of March 31, 2016 and December 31, 2015, respectively. Of these loans, $4.0 million and $4.1 million, respectively, are covered by an FDIC loss share agreement that provides significant protection against losses. Loans in process of foreclosure include those for which formal foreclosure proceedings are in process according to local requirements of the applicable jurisdiction. In addition to the single family residential real estate loans in process of foreclosure, the Company also held $5.9 million and $9.3 million of foreclosed single family residential properties in other real estate owned as of March 31, 2016 and December 31, 2015, respectively. Of these foreclosed properties, $1.1 million and $1.6 million as of March 31, 2016 and December 31, 2015, respectively, are also covered by the FDIC loss share agreement.