Loans and Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2018

Schedule of Loans Outstanding by Category

The following is a schedule of loans outstanding by category:

	March 31, 2018					December 31, 2017
	Amount		Percent			Amount		Percent
	(Dollars in thousands)
Commercial and financial:
Commercial and industrial	$	1,045,706		20.98	%	$	995,207		21.08	%
Oil & gas production and equipment		91,051		1.83			95,574		2.02
Agriculture		142,146		2.85			141,249		2.99
State and political subdivisions:
Taxable		70,932		1.42			73,827		1.56
Tax-exempt		51,765		1.04			48,626		1.03
Real estate:
Construction		445,744		8.94			437,277		9.26
Farmland		220,882		4.43			195,162		4.13
One to four family residences		966,006		19.38			875,766		18.55
Multifamily residential properties		59,469		1.19			46,030		0.98
Commercial		1,555,340		31.21			1,487,927		31.51
Consumer		295,148		5.92			284,373		6.02
Other (not classified above)		40,295		0.81			40,977		0.87
Total loans	$	4,984,484		100.00	%	$	4,721,995		100.00	%

Summary of Nonperforming and Restructured Assets

The following is a summary of nonperforming and restructured assets:

	March 31,		December 31,
	2018		2017
	(Dollars in thousands)
Past due 90 days or more and still accruing	$	3,900	$	2,893
Nonaccrual		31,849		31,943
Restructured		12,945		4,720
Total nonperforming and restructured loans		48,694		39,556
Other real estate owned and repossessed assets		3,676		4,424
Total nonperforming and restructured assets	$	52,370	$	43,980

Summary of Amounts Included in Nonaccrual Loans Segregated by Class of Loans

Loans are segregated into classes based upon the nature of the collateral and the borrower. These classes are used to estimate the allowance for loan losses. The following table is a summary of amounts included in nonaccrual loans, segregated by class of loans. Residential real estate refers to one-to-four family real estate.

	March 31, 2018		December 31, 2017
	(Dollars in thousands)
Real estate:
Non-residential real estate owner occupied	$	1,082	$	1,108
Non-residential real estate other		9,131		9,809
Residential real estate permanent mortgage		986		781
Residential real estate all other		3,911		3,980
Commercial and financial:
Non-consumer non-real estate		7,914		7,785
Consumer non-real estate		310		250
Other loans		2,467		5,596
Acquired loans		6,048		2,634
Total	$	31,849	$	31,943

Age Analysis of Past Due Loans Segregated by Class of Loans

Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. The following table presents an age analysis of past due loans, segregated by class of loans:

	Age Analysis of Past Due Loans
	30-59 Days Past Due		60-89 Days Past Due		90 Days and Greater		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 Days or More Past Due
	(Dollars in thousands)
As of March 31, 2018
Real estate:
Non-residential real estate owner occupied	$	1,072	$	30	$	872	$	1,974	$	670,610	$	672,584	$	—
Non-residential real estate other		1,957		32		2,148		4,137		1,108,882		1,113,019		239
Residential real estate permanent mortgage		2,599		661		1,027		4,287		326,763		331,050		711
Residential real estate all other		4,503		778		1,870		7,151		771,129		778,280		1,562
Commercial and financial:
Non-consumer non-real estate		3,481		302		2,961		6,744		1,249,968		1,256,712		116
Consumer non-real estate		1,530		359		638		2,527		282,233		284,760		440
Other loans		779		107		2,148		3,034		135,643		138,677		141
Acquired loans		3,010		1,223		2,398		6,631		402,771		409,402		691
Total	$	18,931	$	3,492	$	14,062	$	36,485	$	4,947,999	$	4,984,484	$	3,900
As of December 31, 2017
Real estate:
Non-residential real estate owner occupied	$	998	$	68	$	977	$	2,043	$	639,575	$	641,618	$	84
Non-residential real estate other		2,905		271		2,112		5,288		1,121,303		1,126,591		432
Residential real estate permanent mortgage		2,211		403		977		3,591		326,743		330,334		584
Residential real estate all other		1,739		749		1,377		3,865		781,790		785,655		973
Commercial and financial:
Non-consumer non-real estate		2,210		706		1,785		4,701		1,279,704		1,284,405		403
Consumer non-real estate		2,085		670		293		3,048		285,872		288,920		194
Other loans		506		103		3,916		4,525		139,920		144,445		—
Acquired loans		753		192		713		1,658		118,369		120,027		223
Total	$	13,407	$	3,162	$	12,150	$	28,719	$	4,693,276	$	4,721,995	$	2,893

Impaired Loans Segregated by Class of Loans

The following table presents impaired loans, segregated by class of loans. During the period ended March 31, 2017, $2.3 million of interest income was recognized on impaired loans subsequent to their classification as impaired. During the period ended March 31, 2018 no material amount of interest income was recognized on impaired loans subsequent to their classification as impaired.

	Impaired Loans
	Unpaid Principal Balance		Recorded Investment with Allowance		Related Allowance		Average Recorded Investment
	(Dollars in thousands)
As of March 31, 2018
Real estate:
Non-residential real estate owner occupied	$	7,580	$	7,507	$	296	$	5,944
Non-residential real estate other		10,137		9,941		532		10,023
Residential real estate permanent mortgage		2,118		1,918		138		1,835
Residential real estate all other		6,906		6,611		2,372		6,241
Commercial and financial:
Non-consumer non-real estate		19,526		12,407		2,448		11,705
Consumer non-real estate		850		817		134		783
Other loans		2,991		2,608		99		2,570
Acquired loans		9,454		6,492		4		5,086
Total	$	59,562	$	48,301	$	6,023	$	44,187

As of December 31, 2017
Real estate:
Non-residential real estate owner occupied	$	2,011	$	1,945	$	141	$	1,858
Non-residential real estate other		10,323		10,240		496		3,975
Residential real estate permanent mortgage		1,745		1,542		146		1,440
Residential real estate all other		5,837		5,549		2,135		5,258
Commercial and financial:
Non-consumer non-real estate		18,101		11,158		2,412		11,131
Consumer non-real estate		545		514		127		541
Other loans		6,092		5,595		178		7,439
Acquired loans		4,737		3,145		12		3,539
Total	$	49,391	$	39,688	$	5,647	$	35,181

Internal Loan Grading by Class of Loans

The following table presents internal loan grading by class of loans:

	Internal Loan Grading
	Grade
		1		2		3		4		5	Total
	(Dollars in thousands)
As of March 31, 2018
Real estate:
Non-residential real estate owner occupied	$	530,979	$	121,730	$	18,485	$	1,390	$	—	$	672,584
Non-residential real estate other		912,482		182,611		8,645		9,281		—		1,113,019
Residential real estate permanent mortgage		287,363		34,047		7,562		2,078		—		331,050
Residential real estate all other		611,885		151,133		9,587		5,675		—		778,280
Commercial and financial:
Non-consumer non-real estate		982,927		244,432		22,054		7,270		29		1,256,712
Consumer non-real estate		263,827		18,099		1,939		895		—		284,760
Other loans		132,305		5,318		873		181		—		138,677
Acquired loans		237,669		124,669		40,793		6,271		—		409,402
Total	$	3,959,437	$	882,039	$	109,938	$	33,041	$	29	$	4,984,484

As of December 31, 2017
Real estate:
Non-residential real estate owner occupied	$	520,641	$	105,696	$	13,852	$	1,429	$	—	$	641,618
Non-residential real estate other		931,295		178,282		14,290		2,724		—		1,126,591
Residential real estate permanent mortgage		289,200		33,033		6,352		1,749		—		330,334
Residential real estate all other		621,401		149,201		9,418		5,635		—		785,655
Commercial and financial:
Non-consumer non-real estate		1,018,172		234,884		24,322		6,997		30		1,284,405
Consumer non-real estate		268,826		17,499		2,038		557		—		288,920
Other loans		136,617		5,668		1,203		957		—		144,445
Acquired loans		65,685		34,418		17,113		2,811		—		120,027
Total	$	3,851,837	$	758,681	$	88,588	$	22,859	$	30	$	4,721,995

Activity in ALL by Class of Loans

The following table details activity in the ALL by class of loans for the period presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

	ALL
	Balance at beginning of period		Charge- offs			Recoveries		Net charge-offs			Provisions charged to operations			Balance at end of period
	(Dollars in thousands)
Three Months Ended March 31, 2018
Real estate:
Non-residential real estate owner occupied	$	6,195	$	(19	)	$	1	$	(18	)	$	473		$	6,650
Non-residential real estate other		10,519		(1	)		39		38			(9	)		10,548
Residential real estate permanent mortgage		3,226		(56	)		3		(53	)		108			3,281
Residential real estate all other		9,672		(90	)		3		(87	)		246			9,831
Commercial and financial:
Non-consumer non-real estate		15,334		(156	)		13		(143	)		(406	)		14,785
Consumer non-real estate		2,793		(250	)		80		(170	)		76			2,699
Other loans		2,481		—			12		12			(157	)		2,336
Acquired loans		1,446		(27	)		18		(9	)		(17	)		1,420
Total	$	51,666	$	(599	)	$	169	$	(430	)	$	314		$	51,550

	ALL
	Balance at beginning of period		Charge- offs			Recoveries		Net charge-offs			Provisions charged to operations			Balance at end of period
	(Dollars in thousands)
Three Months Ended March 31, 2017
Real estate:
Non-residential real estate owner occupied	$	5,602	$	(32	)	$	1	$	(31	)	$	(9	)	$	5,562
Non-residential real estate other		10,793		(1	)		1		—			(5	)		10,788
Residential real estate permanent mortgage		3,129		(120	)		1		(119	)		120			3,130
Residential real estate all other		8,622		(57	)		11		(46	)		83			8,659
Commercial and financial:
Non-consumer non-real estate		12,421		(206	)		918		712			(323	)		12,810
Consumer non-real estate		2,804		(234	)		51		(183	)		104			2,725
Other loans		4,045		(1,218	)		4		(1,214	)		127			2,958
Acquired loans		1,277		(13	)		50		37			(25	)		1,289
Total	$	48,693	$	(1,881	)	$	1,037	$	(844	)	$	72		$	47,921

Allowance for Loan Losses Outstanding by Impairment Methodology

The following table details the amount of ALL by class of loans for the period presented, detailed on the basis of the impairment methodology used by the Company.

	ALL
	March 31, 2018				December 31, 2017

	Individually evaluated for impairment		Collectively evaluated for impairment		Individually evaluated for impairment		Collectively evaluated for impairment
	(Dollars in thousands)
Real estate:
Non-residential real estate owner occupied.	$	820	$	5,830	$	656	$	5,539
Non-residential real estate other		874		9,674		751		9,768
Residential real estate permanent mortgage		540		2,741		483		2,743
Residential real estate all other		2,971		6,860		2,761		6,911
Commercial and financial:
Non-consumer non-real estate		4,257		10,528		4,651		10,683
Consumer non-real estate		361		2,338		429		2,364
Other loans		66		2,270		133		2,348
Acquired loans		—		1,420		12		1,434
Total	$	9,889	$	41,661	$	9,876	$	41,790

Loans Outstanding by Impairment Methodology

The following table details the loans outstanding by class of loans for the period presented, on the basis of the impairment methodology used by the Company.

	Loans
	March 31, 2018						December 31, 2017
	Individually evaluated for impairment		Collectively evaluated for impairment		Loans acquired with deteriorated credit quality		Individually evaluated for impairment		Collectively evaluated for impairment		Loans acquired with deteriorated credit quality
	(Dollars in thousands)
Real estate:
Non-residential real estate owner occupied	$	19,875	$	652,709	$	—	$	15,281	$	626,337	$	—
Non-residential real estate other		17,926		1,095,093		—		17,013		1,109,578		—
Residential real estate permanent mortgage		9,640		321,410		—		8,100		322,234		—
Residential real estate all other		15,262		763,018		—		15,052		770,603		—
Commercial and financial:
Non-consumer non-real estate		29,378		1,227,334		—		31,349		1,253,056		—
Consumer non-real estate		2,838		281,922		—		2,600		286,320		—
Other loans		198		138,479		—		764		143,681		—
Acquired loans		39,207		362,338		7,857		14,464		100,106		5,457
Total	$	134,324	$	4,842,303	$	7,857	$	104,623	$	4,611,915	$	5,457

Transfers from Loans to Other Real Estate Owned and Repossessed Assets

Transfers from loans to other real estate owned and repossessed assets during the periods presented, are summarized as follows:

	Three Months Ended March 31,
	2018		2017
	(Dollars in thousands)
Other real estate owned	$	402	$	901
Repossessed assets		220		363
Total	$	622	$	1,264