Loans Acquired (Tables)

9 Months Ended

Sep. 30, 2018

The various categories of loans are summarized as follows:



(In thousands)	September 30, 2018		December 31, 2017

Consumer:
Credit cards	$	182,137	$	185,422
Other consumer	259,581		280,094
Total consumer	441,718		465,516
Real Estate:
Construction	1,229,888		614,155
Single family residential	1,401,991		1,094,633
Other commercial	3,077,188		2,530,824
Total real estate	5,709,067		4,239,612
Commercial:
Commercial	1,608,342		825,217
Agricultural	218,778		148,302
Total commercial	1,827,120		973,519
Other	145,369		26,962
Loans	8,123,274		5,705,609
Loans acquired, net of discount and allowance ⁽¹⁾	3,734,921		5,074,076
Total loans	$	11,858,195	$	10,779,685

_____________________________

(1) See Note 6, Loans Acquired, for segregation of loans acquired by loan class.

The impact of these adjustments on the Company’s financial results for the three and nine months ended September 30, 2018 and 2017 is shown below:



	Three Months Ended September 30,				Nine Months Ended September 30,
(In thousands)	2018		2017		2018		2017

Impact on net interest income and pre-tax income	$	629	$	23	$	1,105	$	2,596

Impact, net of taxes	$	464	$	14	$	814	$	1,578

The following table reflects the carrying value of all loans acquired as of September 30, 2018 and December 31, 2017:



	Loans Acquired
(In thousands)	September 30, 2018		December 31, 2017
Consumer:
Other consumer	$	21,278	$	51,467
Real estate:
Construction	467,895		637,032
Single family residential	606,866		793,228
Other commercial	2,040,189		2,387,777
Total real estate	3,114,950		3,818,037
Commercial:
Commercial	596,641		995,587
Agricultural	2,052		66,576
Total commercial	598,693		1,062,163
Other	—		142,409
Total loans acquired ⁽¹⁾	$	3,734,921	$	5,074,076

_____________________________________________________________________________________

(1) Loans acquired are reported net of a $1,345,000 and $418,000 allowance at September 30, 2018 and December 31, 2017, respectively.

Changes in the carrying amount of the accretable yield for all purchased impaired loans were as follows for the three and nine months ended September 30, 2018 and 2017.



	Three Months Ended September 30, 2018						Nine Months Ended September 30, 2018
(In thousands)	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Beginning balance	$	1,382		$	13,995		$	620		$	17,116
Additions	—			—			—			—
Accretable yield adjustments	717			—			1,895			—
Accretion	(635		)	635			(1,051		)	1,051
Payments and other reductions, net	—			(9,664		)	—			(13,201		)
Balance, ending	$	1,464		$	4,966		$	1,464		$	4,966



	Three Months Ended September 30, 2017						Nine Months Ended September 30, 2017
(In thousands)	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Beginning balance	$	766		$	8,448		$	1,655		$	17,802
Additions	—			—			—			2,388
Accretable yield adjustments	52			—			2,698			—
Accretion	(408		)	408			(3,943		)	3,943
Payments and other reductions, net	—			(980		)	—			(16,257		)
Balance, ending	$	410		$	7,876		$	410		$	7,876

Nonaccrual Loans

Nonaccrual loans, excluding loans acquired, segregated by class of loans, are as follows:



(In thousands)	September 30, 2018		December 31, 2017

Consumer:
Credit cards	$	328	$	170
Other consumer	3,317		4,605
Total consumer	3,645		4,775
Real estate:
Construction	1,289		2,242
Single family residential	11,508		13,431
Other commercial	9,639		16,054
Total real estate	22,436		31,727
Commercial:
Commercial	11,932		6,980
Agricultural	2,492		2,160
Total commercial	14,424		9,140
Total	$	40,505	$	45,642

Nonaccrual loans acquired, excluding purchased credit impaired loans accounted for under ASC Topic 310-30, segregated by class of loans, are as follows (see Note 5, Loans and Allowance for Loan Losses, for discussion of nonaccrual loans):



(In thousands)	September 30, 2018		December 31, 2017

Consumer:
Other consumer	$	293	$	334
Real estate:
Construction	279		1,767
Single family residential	9,053		12,151
Other commercial	1,354		7,401
Total real estate	10,686		21,319
Commercial:
Commercial	4,964		1,748
Agricultural	38		84
Total commercial	5,002		1,832
Total	$	15,981	$	23,485

Past Due Loans

An age analysis of past due loans, excluding loans acquired, segregated by class of loans, is as follows:



(In thousands)	Gross 30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		90 Days Past Due & Accruing

September 30, 2018
Consumer:
Credit cards	$	777	$	517	$	1,294	$	180,843	$	182,137	$	188
Other consumer	3,341		1,921		5,262		254,319		259,581		1
Total consumer	4,118		2,438		6,556		435,162		441,718		189
Real estate:
Construction	1,033		397		1,430		1,228,458		1,229,888		—
Single family residential	5,180		4,212		9,392		1,392,599		1,401,991		92
Other commercial	4,555		4,152		8,707		3,068,481		3,077,188		—
Total real estate	10,768		8,761		19,529		5,689,538		5,709,067		92
Commercial:
Commercial	4,568		5,873		10,441		1,597,901		1,608,342		—
Agricultural	128		2,253		2,381		216,397		218,778		—
Total commercial	4,696		8,126		12,822		1,814,298		1,827,120		—
Other	—		—		—		145,369		145,369		—
Total	$	19,582	$	19,325	$	38,907	$	8,084,367	$	8,123,274	$	281

December 31, 2017
Consumer:
Credit cards	$	707	$	672	$	1,379	$	184,043	$	185,422	$	332
Other consumer	5,009		3,298		8,307		271,787		280,094		10
Total consumer	5,716		3,970		9,686		455,830		465,516		342
Real estate:
Construction	411		1,210		1,621		612,534		614,155		—
Single family residential	8,071		6,460		14,531		1,080,102		1,094,633		1
Other commercial	2,388		8,031		10,419		2,520,405		2,530,824		—
Total real estate	10,870		15,701		26,571		4,213,041		4,239,612		1
Commercial:
Commercial	1,523		6,125		7,648		817,569		825,217		—
Agricultural	50		2,120		2,170		146,132		148,302		—
Total commercial	1,573		8,245		9,818		963,701		973,519		—
Other	—		—		—		26,962		26,962		—
Total	$	18,159	$	27,916	$	46,075	$	5,659,534	$	5,705,609	$	343

An age analysis of past due loans acquired segregated by class of loans, is as follows (see Note 5, Loans and Allowance for Loan Losses, for discussion of past due loans):



(In thousands)	Gross 30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		90 Days Past Due & Accruing

September 30, 2018
Consumer:
Other consumer	$	213	$	214	$	427	$	20,851	$	21,278	$	—
Real estate:
Construction	117		207		324		467,571		467,895		—
Single family residential	2,459		5,948		8,407		598,459		606,866		1
Other commercial	2,491		4,157		6,648		2,033,541		2,040,189		—
Total real estate	5,067		10,312		15,379		3,099,571		3,114,950		1
Commercial:
Commercial	1,471		4,020		5,491		591,150		596,641		—
Agricultural	27		5		32		2,020		2,052		—
Total commercial	1,498		4,025		5,523		593,170		598,693		—

Total	$	6,778	$	14,551	$	21,329	$	3,713,592	$	3,734,921	$	1

December 31, 2017
Consumer:
Other consumer	$	889	$	260	$	1,149	$	50,318	$	51,467	$	108
Real estate:
Construction	2,577		1,448		4,025		633,007		637,032		279
Single family residential	12,936		3,302		16,238		776,990		793,228		126
Other commercial	17,176		5,647		22,823		2,364,954		2,387,777		2,565
Total real estate	32,689		10,397		43,086		3,774,951		3,818,037		2,970
Commercial:
Commercial	2,344		1,039		3,383		992,204		995,587		67
Agricultural	51		—		51		66,525		66,576		—
Total commercial	2,395		1,039		3,434		1,058,729		1,062,163		67

Other	15		—		15		142,394		142,409		—
Total	$	35,988	$	11,696	$	47,684	$	5,026,392	$	5,074,076	$	3,145

Loans by Credit Risk Ratings

The following table presents a summary of loans by credit risk rating as of September 30, 2018 and December 31, 2017, segregated by class of loans. Loans accounted for under ASC Topic 310-30 are all included in Risk Rate 1-4 in this table.



(In thousands)	Risk Rate 1-4		Risk Rate 5		Risk Rate 6		Risk Rate 7		Risk Rate 8		Total
September 30, 2018
Consumer:
Credit cards	$	181,620	$	—	$	517	$	—	$	—	$	182,137
Other consumer	255,857		—		3,724		—		—		259,581
Total consumer	437,477		—		4,241		—		—		441,718
Real estate:
Construction	1,225,481		2,286		2,121		—		—		1,229,888
Single family residential	1,382,655		843		18,256		237		—		1,401,991
Other commercial	3,047,514		9,304		20,370		—		—		3,077,188
Total real estate	5,655,650		12,433		40,747		237		—		5,709,067
Commercial:
Commercial	1,569,357		8,250		30,735		—		—		1,608,342
Agricultural	215,742		155		2,881		—		—		218,778
Total commercial	1,785,099		8,405		33,616		—		—		1,827,120
Other	145,369		—		—		—		—		145,369
Loans acquired	3,620,803		47,672		66,087		359		—		3,734,921
Total	$	11,644,398	$	68,510	$	144,691	$	596	$	—	$	11,858,195



(In thousands)	Risk Rate 1-4		Risk Rate 5		Risk Rate 6		Risk Rate 7		Risk Rate 8		Total
December 31, 2017
Consumer:
Credit cards	$	184,920	$	—	$	502	$	—	$	—	$	185,422
Other consumer	275,160		—		4,934		—		—		280,094
Total consumer	460,080		—		5,436		—		—		465,516
Real estate:
Construction	603,126		5,795		5,218		16		—		614,155
Single family residential	1,066,902		3,954		23,490		287		—		1,094,633
Other commercial	2,480,293		19,581		30,950		—		—		2,530,824
Total real estate	4,150,321		29,330		59,658		303		—		4,239,612
Commercial:
Commercial	736,377		74,254		14,402		50		134		825,217
Agricultural	146,065		24		2,190		23		—		148,302
Total commercial	882,442		74,278		16,592		73		134		973,519
Other	26,962		—		—		—		—		26,962
Loans acquired	4,918,570		62,128		93,378		—		—		5,074,076
Total	$	10,438,375	$	165,736	$	175,064	$	376	$	134	$	10,779,685

The following table presents a summary of loans acquired by credit risk rating, segregated by class of loans (see Note 5, Loans and Allowance for Loan Losses, for discussion of loan risk rating). Loans accounted for under ASC Topic 310-30 are all included in Risk Rate 1-4 in this table.



(In thousands)	Risk Rate 1-4		Risk Rate 5		Risk Rate 6		Risk Rate 7		Risk Rate 8		Total

September 30, 2018
Consumer:
Other consumer	$	20,813	$	9	$	456	$	—	$	—	$	21,278
Real estate:
Construction	440,881		18,011		9,003		—		—		467,895
Single family residential	590,003		2,475		14,029		359		—		606,866
Other commercial	2,006,371		12,283		21,535		—		—		2,040,189
Total real estate	3,037,255		32,769		44,567		359		—		3,114,950
Commercial:
Commercial	560,791		14,894		20,956		—		—		596,641
Agricultural	1,944		—		108		—		—		2,052
Total commercial	562,735		14,894		21,064		—		—		598,693

Total	$	3,620,803	$	47,672	$	66,087	$	359	$	—	$	3,734,921

December 31, 2017
Consumer:
Other consumer	$	50,625	$	21	$	821	$	—	$	—	$	51,467
Real estate:
Construction	604,796		30,524		1,712		—		—		637,032
Single family residential	770,954		2,618		19,656		—		—		793,228
Other commercial	2,337,097		15,064		35,616		—		—		2,387,777
Total real estate	3,712,847		48,206		56,984		—		—		3,818,037
Commercial:
Commercial	946,322		13,901		35,364		—		—		995,587
Agricultural	66,367		—		209		—		—		66,576
Total commercial	1,012,689		13,901		35,573		—		—		1,062,163

Other	142,409		—		—		—		—		142,409
Total	$	4,918,570	$	62,128	$	93,378	$	—	$	—	$	5,074,076