Transactions with Related Persons

12 Months Ended

Dec. 31, 2014

Related Party Transactions [Abstract]

Transactions with related persons

TRANSACTIONS WITH RELATED PERSONS

BancShares had, and expects to have in the future, banking transactions in the ordinary course of business with directors, officers and their associates (Related Persons) and entities that are controlled by Related Persons.

In connection with the Bancorporation merger, BancShares completed an analysis of the control ownership of BancShares and Bancorporation and determined that common control did not exist.

For those identified as Related Persons as of December 31, 2014, the following table provides an analysis of changes in the loans outstanding during 2014:

(dollars in thousands)
Balance at January 1, 2014	$	1,825
New loans	39
Repayments	(819		)
Balance at December 31, 2014	$	1,045

Unfunded loan commitments available to Related Persons totaled $1.3 million and $5.5 million as of December 31, 2014 and 2013, respectively.

During 2014, 2013 and 2012, fees from processing services included $17.2 million, $21.6 million and $33.7 million, respectively, for services rendered to entities controlled by Related Persons. The 2014 amount includes $16.8 million earned from Bancorporation prior to the merger as it was considered an entity controlled by Related Persons. Effective with the merger there are no longer any fees earned from Bancorporation. The amounts recorded from the largest individual institution totaled $16.8 million, $20.4 million and $22.8 million for 2014, 2013 and 2012, respectively. Also, prior to 2013, BancShares provided various processing and operational services to other financial institutions, some of which are controlled by Related Persons. During the first quarter of 2013, BancShares sold its rights and most of its obligations under various service agreements with client banks, including two banks that are controlled by Related Persons.

In the third quarter of 2014, BancShares purchased $25.0 million of FCB/SC Capital Trust II's outstanding Trust Preferred Securities from an unaffiliated third party. BancShares paid approximately $23.0 million, plus unpaid accrued distributions on the securities for the current distribution period, for the Trust Preferred Securities.

Investment securities available for sale include an investment in Bancorporation at December 31, 2013 with a carrying value of $21.6 million and cost of $452,000. Due to the merger with Bancorporation in the fourth quarter of 2014 these shares were canceled and ceased to exist at October 1, 2014.