NOTE E - ALLOWANCE FOR LOAN AND LEASE LOSSES ("ALLL")

The following tables present the activity in the ALLL for non-PCI loan and lease losses by loan class for the three months ended September 30, 2015 and September 30, 2014:



	Three months ended September 30, 2015
(Dollars in thousands)	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Lease financing			Other			Residential mortgage			Revolving mortgage			Construction and land development - non- commercial			Consumer			Total
Non-PCI Loans
Allowance for loan and lease losses:
Balance at July 1	$	13,079		$	80,436		$	804		$	39,392		$	4,706		$	1,188		$	12,705		$	17,290		$	1,133		$	22,116		$	192,849
Provision	1,189			(5,664		)	291			(799		)	424			(58		)	520			871			114			450			(2,662		)
Charge-offs	(336		)	(411		)	—			(784		)	(7		)	—			(394		)	(677		)	—			(2,409		)	(5,018		)
Recoveries	129			794			15			296			16			45			314			363			3			762			2,737
Balance at September 30	$	14,061		$	75,155		$	1,110		$	38,105		$	5,139		$	1,175		$	13,145		$	17,847		$	1,250		$	20,919		$	187,906

	Three months ended September 30, 2014
	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Lease financing			Other			Residential mortgage			Revolving mortgage			Construction and land development - non- commercial			Consumer			Total
Balance at July 1	$	11,116		$	92,129		$	806		$	26,909		$	4,365		$	612		$	9,301		$	16,797		$	905		$	13,975		$	176,915
Provision	1,469			(8,082		)	61			4,361			(71		)	127			15			2,075			21			1,758			1,734
Charge-offs	—			(277		)	—			(1,414		)	(28		)	—			(231		)	(925		)	(45		)	(2,467		)	(5,387		)
Recoveries	15			476			8			227			34			—			28			174			14			867			1,843
Balance at September 30	$	12,600		$	84,246		$	875		$	30,083		$	4,300		$	739		$	9,113		$	18,121		$	895		$	14,133		$	175,105

	Nine months ended September 30, 2015
	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Lease financing			Other			Residential mortgage			Revolving mortgage			Construction and land development - non- commercial			Consumer			Total
Balance at January 1	$	11,961		$	85,189		$	732		$	30,727		$	4,286		$	3,184		$	10,661		$	18,650		$	892		$	16,555		$	182,837
Provision	2,380			(11,221		)	522			11,294			843			(2,100		)	2,495			440			306			10,029			14,988
Charge-offs	(575		)	(691		)	(178		)	(4,815		)	(28		)	—			(768		)	(2,086		)	(22		)	(7,935		)	(17,098		)
Recoveries	295			1,878			34			899			38			91			757			843			74			2,270			7,179
Balance at September 30	$	14,061		$	75,155		$	1,110		$	38,105		$	5,139		$	1,175		$	13,145		$	17,847		$	1,250		$	20,919		$	187,906

	Nine months ended September 30, 2014
	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Lease financing			Other			Residential mortgage			Revolving mortgage			Construction and land development - non- commercial			Consumer			Total
Balance at January 1	$	10,335		$	100,257		$	1,009		$	22,362		$	4,749		$	190		$	10,511		$	16,239		$	681		$	13,541		$	179,874
Provision	2,219			(17,021		)	(167		)	9,369			(420		)	562			(933		)	4,681			274			5,770			4,334
Charge-offs	—			(718		)	—			(2,440		)	(100		)	(13		)	(649		)	(3,249		)	(138		)	(7,271		)	(14,578		)
Recoveries	46			1,728			33			792			71			—			184			450			78			2,093			5,475
Balance at September 30	$	12,600		$	84,246		$	875		$	30,083		$	4,300		$	739		$	9,113		$	18,121		$	895		$	14,133		$	175,105

The net provision credits for the commercial mortgage class totaled $5.7 million and $11.2 million for the three and nine months ended September 30, 2015, respectively, compared to net provision credits of $8.1 million and $17.0 million for the same respective periods of 2014. The reduction in the net provision credits was attributable to higher 2015 loan growth compared to the prior year offsetting the impact of continued improvement in credit quality.

Commercial and industrial loans had a net provision credit of $799 thousand and provision expense of $11.3 million for the three and nine months ended September 30, 2015, respectively, compared to provision expense of $4.4 million and $9.4 million for the same respective periods of 2014. The current period quarter net provision credit is driven by a reversal of previously recorded specific reserves on impaired loans. Reserves were released as refinements were made to discount rate assumptions used in estimating cash flows based on annual back testing results.

The other loan class had net provision credits of $58 thousand and $2.1 million for the three and nine months ended September 30, 2015, respectively, compared to provision expense of $127 thousand and $562 thousand for the same respective periods of 2014. The year-to-date 2015 net provision credit was the result of the reversal of previously identified impairment on individually impaired loans due to credit quality improvement.

The provision expense for the residential mortgage loan class totaled $520 thousand and $2.5 million for the three and nine months ended September 30, 2015, respectively, compared to net provision expense of $15 thousand and a net provision credit of $933 thousand for the same respective periods of 2014. The increases in the provision expense were attributable to newly originated non-PCI loans. In 2014, improved credit quality trends resulted in a release of reserves for the nine months ended September 30, 2014.

The provision expense for the revolving mortgage loan class totaled $871 thousand and $440 thousand for the three and nine months ended September 30, 2015, respectively, compared to provision expense of $2.1 million and $4.7 million for the same respective periods of 2014. The decrease for both periods was due to lower net charge-offs.

The provision expense for the consumer loan class totaled $450 thousand and $10.0 million for the three and nine months ended September 30, 2015, respectively, compared to provision expense of $1.8 million and $5.8 million for the same respective periods of 2014. The reduction in the current period quarter provision expense was due to an adjustment to the loss rate for certain consumer loans originated during 2015. The increase in year-to-date provision expense was primarily due to higher loan growth than the prior year.

The following tables present the allowance for non-PCI loan losses and the recorded investment in loans, by loan class, based on impairment method as of September 30, 2015 and December 31, 2014:



	September 30, 2015
(Dollars in thousands)	Construction and land development - commercial		Commercial mortgage		Other commercial real estate		Commercial and industrial		Lease financing		Other		Residential mortgage		Revolving mortgage		Construction and land development - non-commercial		Consumer		Total
Allowance for loan and lease losses:
ALLL for loans and leases individually evaluated for impairment	$	417	$	4,007	$	295	$	1,154	$	291	$	67	$	1,158	$	526	$	78	$	498	$	8,491
ALLL for loans and leases collectively evaluated for impairment	13,644		71,148		815		36,951		4,848		1,108		11,987		17,321		1,172		20,421		179,415
Total allowance for loan and lease losses	$	14,061	$	75,155	$	1,110	$	38,105	$	5,139	$	1,175	$	13,145	$	17,847	$	1,250	$	20,919	$	187,906

Loans and leases:
Loans and leases individually evaluated for impairment	$	3,194	$	92,745	$	436	$	16,395	$	1,908	$	1,464	$	19,691	$	4,986	$	1,045	$	1,098	$	142,962
Loans and leases collectively evaluated for impairment	560,732		7,984,201		316,488		2,195,578		690,007		356,296		2,640,130		2,514,986		219,448		1,190,914		18,668,780
Total loan and leases	$	563,926	$	8,076,946	$	316,924	$	2,211,973	$	691,915	$	357,760	$	2,659,821	$	2,519,972	$	220,493	$	1,192,012	$	18,811,742

	December 31, 2014
(Dollars in thousands)	Construction and land development - commercial		Commercial mortgage		Other commercial real estate		Commercial and industrial		Lease financing		Other		Residential mortgage		Revolving mortgage		Construction and land development - non-commercial		Consumer		Total
Allowance for loan and lease losses:
ALLL for loans and leases individually evaluated for impairment	$	92	$	8,610	$	112	$	1,743	$	150	$	1,972	$	1,360	$	1,052	$	71	$	555	$	15,717
ALLL for loans and leases collectively evaluated for impairment	11,869		76,579		620		28,984		4,136		1,212		9,301		17,598		821		16,000		167,120
Total allowance for loan and lease losses	$	11,961	$	85,189	$	732	$	30,727	$	4,286	$	3,184	$	10,661	$	18,650	$	892	$	16,555	$	182,837

Loans and leases:
Loans and leases individually evaluated for impairment	$	1,620	$	82,803	$	584	$	11,040	$	623	$	2,000	$	14,913	$	3,675	$	1,340	$	995	$	119,593
Loans and leases collectively evaluated for impairment	491,513		7,470,145		244,291		1,977,894		571,293		351,833		2,478,145		2,558,125		203,676		1,116,459		17,463,374
Total loan and leases	$	493,133	$	7,552,948	$	244,875	$	1,988,934	$	571,916	$	353,833	$	2,493,058	$	2,561,800	$	205,016	$	1,117,454	$	17,582,967

The following tables show the activity in the allowance for PCI loan and lease losses by loan class for the three months and nine months ended September 30, 2015 and September 30, 2014.



	Three months ended September 30, 2015
(Dollars in thousands)	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Residential mortgage			Revolving mortgage			Construction and land development - noncommercial			Consumer and other			Total
PCI Loans
Allowance for loan and lease losses:
Balance at July 1	$	569		$	6,428		$	69		$	323		$	5,842		$	2,051		$	—		$	186		$	15,468
Provision	632			2,187			235			118			(281		)	(151		)	—			29			2,769
Charge-offs	—			(48		)				(39		)	(15		)	(577		)	—			(1		)	(680		)
Recoveries	—			—			—			—			—			—			—			—			—
Balance at September 30	$	1,201		$	8,567		$	304		$	402		$	5,546		$	1,323		$	—		$	214		$	17,557

	Three months ended September 30, 2014
(Dollars in thousands)	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Residential mortgage			Revolving mortgage			Construction and land development - noncommercial			Consumer and other			Total
Balance at July 1	$	3,803		$	17,315		$	407		$	375		$	7,093		$	81		$	—		$	257		$	29,331
Provision	(1,815		)	(2,374		)	(435		)	182			187			3,899			239			(80		)	(197		)
Charge-offs	(1,633		)	(2,357		)	106			839			(188		)	(1		)	(83		)	(17		)	(3,334		)
Recoveries	—			—			—			—			—			—			—			—			—
Balance at September 30	$	355		$	12,584		$	78		$	1,396		$	7,092		$	3,979		$	156		$	160		$	25,800

	Nine months ended September 30, 2015
(Dollars in thousands)	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Residential mortgage			Revolving mortgage			Construction and land development - noncommercial			Consumer and other			Total
Balance at January 1	$	150		$	10,135		$	75		$	1,240		$	5,820		$	3,999		$	183		$	27		$	21,629
Provision	1,148			(803		)	229			(514		)	21			(1,918		)	(183		)	650			(1,370		)
Charge-offs	(97		)	(765		)	—			(324		)	(295		)	(758		)	—			(463		)	(2,702		)
Recoveries	—			—			—			—			—			—			—			—			—
Balance at September 30	$	1,201		$	8,567		$	304		$	402		$	5,546		$	1,323		$	—		$	214		$	17,557

	Nine months ended September 30, 2014
(Dollars in thousands)	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Residential mortgage			Revolving mortgage			Construction and land development - noncommercial			Consumer and other			Total
Balance at January 1	$	1,320		$	29,906		$	1,354		$	5,275		$	11,802		$	2,959		$	682		$	222		$	53,520
Provision	1,463			(6,946		)	(1,382		)	(1,883		)	(4,289		)	1,502			(443		)	(21		)	(11,999		)
Charge-offs	(2,428		)	(10,376		)	106			(1,996		)	(421		)	(482		)	(83		)	(41		)	(15,721		)
Recoveries	—			—			—			—			—			—			—			—			—
Balance at September 30	$	355		$	12,584		$	78		$	1,396		$	7,092		$	3,979		$	156		$	160		$	25,800

The PCI loan portfolio net provision expense totaled $2.8 million during the third quarter of 2015, compared to a net provision credit of $197 thousand during the same period of 2014. The increase in the current period quarter provision for loan and lease losses on PCI loans resulted from a $3.9 million reclassification increasing provision expense. In the current quarter, $3.9 million was reclassified between accretable yield and the allowance for loan and lease losses that increased both accretion income and provision expense. There was no net impact on earnings as a result of this reclassification.

We recorded PCI loan portfolio net provision credits of $1.4 million and $12.0 million for the nine months ended September 30, 2015 and 2014, respectively. The decrease in the net provision credit was primarily due to lower impairment reversals on the PCI loan portfolio.

The following tables show the ending balances of PCI loans and leases and related allowance by class of loans as of September 30, 2015 and December 31, 2014:



	September 30, 2015
(Dollars in thousands)	Construction and land development - commercial		Commercial mortgage		Other commercial real estate		Commercial and industrial		Residential mortgage		Revolving mortgage		Construction and land development - noncommercial		Consumer and other		Total
ALLL for loans and leases acquired with deteriorated credit quality	$	1,201	$	8,567	$	304	$	402	$	5,546	$	1,323	$	—	$	214	$	17,557

Loans and leases acquired with deteriorated credit quality	41,582		568,256		18,013		17,023		334,518		59,695		347		4,630		1,044,064

	December 31, 2014
(Dollars in thousands)	Construction and land development - commercial		Commercial mortgage		Other commercial real estate		Commercial and industrial		Residential mortgage		Revolving mortgage		Construction and land development - noncommercial		Consumer and other		Total
ALLL for loans and leases acquired with deteriorated credit quality	$	150	$	10,135	$	75	$	1,240	$	5,820	$	3,999	$	183	$	27	$	21,629

Loans and leases acquired with deteriorated credit quality	78,079		577,518		40,193		27,254		382,340		74,109		912		6,093		1,186,498

As of September 30, 2015, and December 31, 2014, $514.8 million and $285.6 million, respectively, in PCI loans experienced an adverse change in expected cash flows since the date of acquisition. The corresponding valuation reserve was $17.6 million and $21.6 million, respectively.

The following tables provide information on non-PCI impaired loans and leases, exclusive of loans and leases evaluated collectively as a homogenous group, as of September 30, 2015 and December 31, 2014 including interest income recognized in the period during which the loans and leases were considered impaired.



	September 30, 2015
(Dollars in thousands)	With a recorded allowance		With no recorded allowance		Total		Unpaid principal balance		Related allowance recorded
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	1,799	$	1,395	$	3,194	$	4,594	$	417
Commercial mortgage	42,562		50,183		92,745		100,914		4,007
Other commercial real estate	312		124		436		868		295
Commercial and industrial	5,352		11,043		16,395		19,608		1,154
Lease financing	1,610		298		1,908		1,908		291
Other	1,464		—		1,464		1,540		67
Residential mortgage	9,746		9,945		19,691		21,559		1,158
Revolving mortgage	2,852		2,134		4,986		6,137		526
Construction and land development - noncommercial	1,045		—		1,045		1,045		78
Consumer	877		221		1,098		1,134		498
Total non-PCI impaired loans and leases	$	67,619	$	75,343	$	142,962	$	159,307	$	8,491

	December 31, 2014
(Dollars in thousands)	With a recorded allowance		With no recorded allowance		Total		Unpaid principal balance		Related allowance recorded
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	996	$	624	$	1,620	$	6,945	$	92
Commercial mortgage	57,324		25,479		82,803		87,702		8,610
Other commercial real estate	112		472		584		913		112
Commercial and industrial	10,319		721		11,040		12,197		1,743
Lease financing	319		304		623		623		150
Other	2,000		—		2,000		2,000		1,972
Residential mortgage	10,198		4,715		14,913		15,746		1,360
Revolving mortgage	3,675		—		3,675		4,933		1,052
Construction and land development - noncommercial	1,077		263		1,340		1,340		71
Consumer	987		8		995		1,067		555
Total non-PCI impaired loans and leases	$	87,007	$	32,586	$	119,593	$	133,466	$	15,717

The following tables show the average non-PCI impaired loan balance and the interest income recognized by loan class for the three and nine months ended September 30, 2015 and September 30, 2014:



	Three months ended September 30, 2015				Three months ended September 30, 2014
(Dollars in thousands)	Average balance		Interest income recognized		Average balance		Interest income recognized
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	3,257	$	37	$	2,296	$	26
Commercial mortgage	99,613		803		90,318		806
Other commercial real estate	539		6		1,980		7
Commercial and industrial	17,005		130		11,699		108
Lease financing	1,939		21		312		5
Other	1,543		20		42		1
Residential mortgage	19,945		141		15,071		111
Revolving mortgage	5,064		29		3,708		29
Construction and land development - noncommercial	1,027		12		1,942		27
Consumer	1,176		19		1,063		19
Total non-PCI impaired loans and leases	$	151,108	$	1,218	$	128,431	$	1,139

	Nine months ended September 30, 2015				Nine months ended September 30, 2014
(Dollars in thousands)	Average balance		Interest income recognized		Average balance		Interest income recognized
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	3,148	$	107	$	1,701	$	57
Commercial mortgage	88,614		2,405		86,131		2,522
Other commercial real estate	498		7		2,474		67
Commercial and industrial	13,815		379		14,227		461
Lease financing	1,664		55		589		26
Other	1,789		20		29		2
Residential mortgage	17,376		401		15,525		395
Revolving mortgage	4,022		68		4,069		105
Construction and land development - noncommercial	821		28		1,902		77
Consumer	1,117		58		1,710		70
Total non-PCI impaired loans and leases	$	132,864	$	3,528	$	128,357	$	3,782

Troubled Debt Restructurings

BancShares accounts for certain loan modifications or restructurings as troubled debt restructurings ("TDRs"). In general, the modification or restructuring of a loan is considered a TDR if, for economic reasons or legal reasons related to a borrower's financial difficulties, a concession is granted to the borrower that creditors would not otherwise grant. Concessions may relate to the contractual interest rate, maturity date, payment structure or other actions. In accordance with GAAP, acquired loans accounted for under ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, are not initially considered to be TDRs, but can be classified as such if a modification is made subsequent to acquisition. Subsequent modifications of a PCI loan accounted for in a pool that would otherwise meet the definition of a TDR is not reported, or accounted for, as a TDR since pooled PCI loans are excluded from the scope of TDR accounting.

The following table provides a summary of total TDRs by accrual status.



	September 30, 2015						December 31, 2014
(Dollars in thousands)	Accruing		Nonaccruing		Total		Accruing		Nonaccruing		Total
Commercial loans
Construction and land development - commercial	$	3,479	$	630	$	4,109	$	2,591	$	446	$	3,037
Commercial mortgage	71,885		12,884		84,769		92,184		8,937		101,121
Other commercial real estate	1,889		95		1,984		2,374		449		2,823
Commercial and industrial	9,733		4,122		13,855		9,864		664		10,528
Lease	1,082		326		1,408		258		365		623
Other	—		—		—		34		—		34
Total commercial TDRs	88,068		18,057		106,125		107,305		10,861		118,166
Noncommercial
Residential mortgage	24,103		7,000		31,103		22,597		4,655		27,252
Revolving mortgage	3,592		1,313		4,905		3,675		—		3,675
Construction and land development - noncommercial	1,045		—		1,045		1,391		—		1,391
Consumer and other	2,454		87		2,541		995		—		995
Total noncommercial TDRs	31,194		8,400		39,594		28,658		4,655		33,313
Total TDRs	$	119,262	$	26,457	$	145,719	$	135,963	$	15,516	$	151,479

The majority of TDRs are included in the special mention, substandard or doubtful grading categories. When a restructured loan subsequently defaults, it is evaluated and downgraded if appropriate. The more severely graded the loan, the lower the estimated expected cash flows and the greater the allowance recorded. Further, TDRs over $500,000 and graded substandard or lower are evaluated individually for impairment through a review of collateral values or analysis of cash flow.

The following table shows the accrual status of non-PCI and PCI TDRs.



(Dollars in thousands)	September 30, 2015		December 31, 2014
Accruing TDRs:
PCI	$	32,370	$	44,647
Non-PCI	86,892		91,316
Total accruing TDRs	119,262		135,963
Nonaccruing TDRs:
PCI	717		2,225
Non-PCI	25,740		13,291
Total nonaccruing TDRs	26,457		15,516
All TDRs:
PCI	33,087		46,872
Non-PCI	112,632		104,607
Total TDRs	$	145,719	$	151,479

The following tables provide the types of TDRs made during the three and nine months ended September 30, 2015 and September 30, 2014, as well as a summary of loans that were modified as a TDR during the twelve months ended September 30, 2015 and September 30, 2014 that subsequently defaulted during the three and nine months ended September 30, 2015 and September 30, 2014. BancShares defines payment default as movement of the TDR to nonaccrual status, which is generally 90 days past due for TDRs, foreclosure or charge-off, whichever occurs first.



	Three months ended September 30, 2015						Three months ended September 30, 2014
	All restructurings			Restructurings with payment default			All restructurings			Restructurings with payment default
(Dollars in thousands)	Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end
Non-PCI loans and leases
Interest only period provided
Construction and land development - noncommercial	1	$	92	—	$	—	—	$	—	—	$	—
Total interest only	1	92		—	—		—	—		—	—

Loan term extension
Commercial mortgage	1	75		—	—		1	462		—	—
Commercial and industrial	3	1,445		—	—		—	—		—	—
Residential mortgage	—	—		—	—		3	80		—	—
Construction and land development - noncommercial	—	—		—	—		2	141		—	—
Consumer	—	—		—	—		2	81		—	—
Total loan term extension	4	1,520		—	—		8	764		—	—

Below market interest rate
Construction and land development - commercial	4	193		—	—		—	—		—	—
Commercial mortgage	8	1,248		—	—		6	3,062		1	176
Commercial and industrial	3	1,797		1	1,757		3	462		—	—
Other commercial real estate	2	124		—	—		—	—		—	—
Residential mortgage	25	1,592		4	158		11	609		1	45
Revolving mortgage	1	37		—	—		—	—		—	—
Construction and land development - noncommercial	—	—		—	—		3	173		—	—
Consumer	2	17		—	—		5	162		—	—
Total below market interest rate	45	5,008		5	1,915		28	4,468		2	221

Discharged from bankruptcy
Construction and land development - commercial	2	21		—	—		—	—		—	—
Commercial mortgage	2	965		1	275		1	—		1	—
Commercial and industrial	2	148		—	—		—	—		—	—
Residential mortgage	6	395		—	—		—	—		—	—
Revolving mortgage	9	666		2	162		2	99		1	—
Construction and land development-noncommercial	—	—		—	—		—	—		1	62
Consumer	6	91		2	39		1	13		—	—
Total discharged from bankruptcy	27	2,286		5	476		4	112		3	62
Total non-PCI restructurings	77	$	8,906	10	$	2,391	40	$	5,344	5	$	283



	Nine months ended September 30, 2015						Nine months ended September 30, 2014
	All restructurings			Restructurings with payment default			All restructurings			Restructurings with payment default
(Dollars in thousands)	Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end
Non-PCI loans and leases
Interest only period provided
Commercial mortgage	2	$	68	—	$	—	6	$	2,449	2	$	592
Commercial and industrial	2	1,112		1	—		2	375		—	—
Construction and land development - noncommercial	1	92		—	—		—	—		—	—
Lease financing	—	—		—	—		2	131		—	—
Other	—	—		—	—		1	40		—	—
Total interest only	5	1,272		1	—		11	2,995		2	592

Loan term extension
Construction and land development - commercial	1	204		1	204		2	189		—	—
Commercial mortgage	7	1,406		—	—		11	4,072		—	—
Commercial and industrial	4	1,473		—	—		4	2,040		—	—
Lease financing	—	—		—	—		2	144		—	—
Residential mortgage	—	—		—	—		15	532		—	—
Revolving mortgage	1	9		—	—		—	—		—	—
Construction and land development - noncommercial	—	—		—	—		3	175		—	—
Consumer	1	5		—	—		5	122		—	—
Total loan term extension	14	3,097		1	204		42	7,274		—	—

Below market interest rate
Construction and land development - commercial	14	626		—	—		10	371		—	—
Commercial mortgage	31	7,880		1	1,757		29	11,399		3	1,276
Commercial and industrial	13	2,476		—	—		11	772		—	—
Other commercial real estate	2	124		—	—		1	347		—	—
Residential mortgage	90	4,946		7	213		29	1,402		2	95
Revolving mortgage	6	140		—	—		5	270		—	—
Construction & land development - noncommercial	2	253		—	—		11	590		—	—
Consumer	13	120		—	—		5	162		—	—
Other	1	1,464		—	—		—	—		—	—
Total below market interest rate	172	18,029		8	1,970		101	15,313		5	1,371

Discharged from bankruptcy
Construction and land development - commercial	2	21		—	—		—	—		—	—
Commercial mortgage	3	1,562		1	275		2	970		1	—
Commercial and industrial	3	148		—	—		—	—		—	—
Residential mortgage	20	938		—	—		9	691		2	288
Revolving mortgage	47	2,230		6	320		10	420		1	—
Construction & land development - noncommercial	—	—		—	—		1	62		1	62
Consumer	16	187		2	39		4	18		—	—
Total discharged from bankruptcy	91	5,086		9	634		26	2,161		5	350
Total non-PCI restructurings	282	$	27,484	19	$	2,808	180	$	27,743	12	$	2,313



	Three months ended September 30, 2015						Three months ended September 30, 2014
	All restructurings			Restructurings with payment default			All restructurings			Restructurings with payment default
(Dollars in thousands)	Number of loans	Recorded investment at period end		Number of loans	Recorded investment at period end		Number of loans	Recorded investment at period end		Number of loans	Recorded investment at period end
PCI loans
Loan term extension
Construction and land development - commercial	—	$	—	—	$	—	1	$	348	—	$	—
Residential mortgage	—	—		—	—		—	—		3	381
Total loan term extension	—	—		—	—		1	348		3	381

Below market interest rate
Commercial mortgage	—	—		—	—		6	3,377		1	67
Residential mortgage	3	223		1	47		3	227		—	—
Total below market interest rate	3	223		1	47		9	3,604		1	67

Discharged from bankruptcy
Revolving mortgage	1	105		—	—		—	—		—	—
Total discharged from bankruptcy	1	105		—	—		—	—		—	—
Total PCI restructurings	4	$	328	1	$	47	10	$	3,952	4	$	448



	Nine months ended September 30, 2015						Nine months ended September 30, 2014
	All restructurings			Restructurings with payment default			All restructurings			Restructurings with payment default
(Dollars in thousands)	Number of loans	Recorded investment at period end		Number of loans	Recorded investment at period end		Number of loans	Recorded investment at period end		Number of loans	Recorded investment at period end
PCI loans
Interest only period provided
Commercial mortgage	—	$	—	—	$	—	2	$	44	2	$	44
Total interest only	—	—		—	—		2	44		2	44

Loan term extension
Construction and land development - commercial	—	—		—	—		2	348		—	—
Residential mortgage	—	—		—	—		1	322		4	381
Total loan term extension	—	—		—	—		3	670		4	381

Below market interest rate
Construction and land development - commercial	—	—		—	—		2	308		—	—
Commercial mortgage	—	—		—	—		15	5,539		2	94
Residential mortgage	11	766		1	47		29	3,994		2	—
Total below market interest rate	11	766		1	47		46	9,841		4	94

Discharged from bankruptcy
Residential mortgage	1	78		—	—		26	1,673		2	—
Revolving mortgage	1	105		—	—		—	—		—	—
Total discharged from bankruptcy	2	183		—	—		26	1,673		2	—
Total PCI restructurings	13	$	949	1	$	47	77	$	12,228	12	$	519

For the three and nine months ended September 30, 2015 and September 30, 2014, the recorded investment in TDRs subsequent to modification was not materially impacted by the modification since forgiveness of principal is not a restructuring option frequently used by BancShares.