Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2014 |
Receivables [Abstract] | ' |
Loans and Allowance for Loan Losses | ' |
Loans and Allowance for Loan Losses |
The following table presents the composition of the loan portfolio. |
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| September 30, 2014 | | December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
| (In Thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial and agricultural | $ | 22,510,956 | | | $ | 20,209,209 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Real estate – construction | 1,977,784 | | | 1,736,348 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial real estate – mortgage | 9,498,561 | | | 9,106,329 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Total commercial loans | 33,987,301 | | | 31,051,886 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Consumer loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate – mortgage | 13,606,816 | | | 12,706,879 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Equity lines of credit | 2,259,561 | | | 2,236,367 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Equity loans | 629,047 | | | 644,068 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Credit card | 631,000 | | | 660,073 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Consumer – direct | 609,980 | | | 516,572 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Consumer – indirect | 2,704,772 | | | 2,116,981 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Total consumer loans | 20,441,176 | | | 18,880,940 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Covered loans | 580,756 | | | 734,190 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Total loans | $ | 55,009,233 | | | $ | 50,667,016 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Purchased Impaired Loans |
Purchased Impaired Loans are recognized on the Company's Unaudited Condensed Consolidated Balance Sheets within loans, net of recorded discount. The following table presents the unpaid principal balance, discount, allowance for loan losses and carrying value of the Purchased Impaired Loans. |
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| September 30, 2014 | | December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
| (In Thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
Unpaid principal balance | $ | 393,351 | | | $ | 449,429 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Discount | (24,092 | ) | | (60,069 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | (4,198 | ) | | (243 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Carrying value | $ | 365,061 | | | $ | 389,117 | | | | | | | | | | | | | | | | | | | | | | | | | |
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An analysis of the accretable yield related to the Purchased Impaired Loans follows. |
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| Nine Months Ended September 30, | | | | | | | | | | | | | | | | | | | | | | | | |
| 2014 | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
| (In Thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at beginning of period | $ | 105,698 | | | $ | 136,992 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Transfer from nonaccretable difference | 7,229 | | | 32,831 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Accretion | (39,925 | ) | | (49,916 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Other | — | | | 1,516 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Balance at end of period | $ | 73,002 | | | $ | 121,423 | | | | | | | | | | | | | | | | | | | | | | | | | |
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The Company had allowances of $4.2 million and $243 thousand related to Purchased Impaired Loans at September 30, 2014 and December 31, 2013, respectively. During the three months ended September 30, 2014 and 2013, the Company recognized $(3.3) million and $(800) thousand, respectively, of provision for loan losses attributable to credit improvements subsequent to acquisition of these loans. During the nine months ended September 30, 2014 and 2013, the Company recognized $(800) thousand and $(5.4) million, respectively, of provision for loan losses attributable to credit improvements subsequent to acquisition of these loans. |
Purchased Nonimpaired Loans |
At acquisition, Purchased Nonimpaired Loans were determined to have fair value discounts, some of which were related to credit. The portion of the fair value discount not related to credit is being accreted to interest income over the expected remaining life of the loans based on expected cash flows. For the three months ended September 30, 2014 and 2013 approximately $19.4 million and $51.3 million, respectively, of interest income was recognized on these loans. For the nine months ended September 30, 2014 and 2013 approximately $92.6 million and $221.4 million, respectively, of interest income was recognized on these loans. The discount related to credit on the Purchased Nonimpaired Loans is reviewed for adequacy at each balance sheet date. If the expected losses exceed the credit discount, an allowance for loan losses is provided. If the expected losses are reduced, the related credit discount is accreted to interest income over the expected remaining life of the loans. |
The following table presents the unpaid principal balance, discount, allowance for loan losses, and carrying value of the Purchased Nonimpaired Loans. |
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| September 30, 2014 | | December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
| (In Thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
Unpaid principal balance | $ | 337,255 | | | $ | 520,723 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Discount | (125,758 | ) | | (175,893 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | (2,408 | ) | | (2,711 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Carrying value | $ | 209,089 | | | $ | 342,119 | | | | | | | | | | | | | | | | | | | | | | | | | |
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The following table reflects the recorded investment in all covered Purchased Impaired Loans and Purchased Nonimpaired Loans. |
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| September 30, 2014 | | December 31, 2013 | | | | | | | | |
| Purchased Impaired Loans | | Purchased Nonimpaired Loans | | Total Covered Loans | | Purchased Impaired Loans | | Purchased Nonimpaired Loans | | Total Covered Loans | | | | | | | | |
| (In Thousands) | | | | | | | | |
Commercial, financial and agricultural | $ | — | | | $ | 45,450 | | | $ | 45,450 | | | $ | — | | | $ | 40,892 | | | $ | 40,892 | | | | | | | | | |
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Commercial real estate (1) | — | | | 21,220 | | | 21,220 | | | 4,760 | | | 141,333 | | | 146,093 | | | | | | | | | |
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Residential real estate – mortgage (2) | 369,259 | | | 138,550 | | | 507,809 | | | 384,588 | | | 155,452 | | | 540,040 | | | | | | | | | |
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Consumer loans | — | | | 6,277 | | | 6,277 | | | 12 | | | 7,153 | | | 7,165 | | | | | | | | | |
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Total loans | $ | 369,259 | | | $ | 211,497 | | | $ | 580,756 | | | $ | 389,360 | | | $ | 344,830 | | | $ | 734,190 | | | | | | | | | |
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-1 | Includes real estate – construction and commercial real estate - mortgage. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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-2 | Includes residential real estate – mortgage, equity lines of credit and equity loans. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
FDIC Indemnification Asset (Liability) |
The Company has entered into loss sharing agreements with the FDIC that require the FDIC to reimburse the Bank for losses with respect to covered loans and covered OREO. In addition, the provisions of the loss sharing agreements may also require a payment by the Bank to the FDIC on October 15, 2019. Activity associated with the Company's estimate of the potential amount of this payment is included in the table below. See Note 8, Commitments, Contingencies and Guarantees, for additional information related to the loss sharing agreements. A summary of the activity in the FDIC indemnification asset (liability) is presented in the following table. |
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| Nine Months Ended September 30, | | | | | | | | | | | | | | | | | | | | | | | | |
| 2014 | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
| (In Thousands) | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at beginning of period | $ | 24,315 | | | $ | 271,928 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Increase (decrease) due to credit loss provision (benefit) recorded on FDIC covered loans | 5,374 | | | (8,489 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
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Amortization and accretion, net | (82,277 | ) | | (199,021 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Payments to FDIC for covered assets | 13,863 | | | 20,323 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Other | (3,833 | ) | | (4,196 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Balance at end of period | $ | (42,558 | ) | | $ | 80,545 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Other adjustments include those resulting from the change in loss estimates related to OREO as a result of changes in expected cash flows as well as adjustments resulting from amounts owed to the FDIC for unexpected recoveries of amounts previously charged off and loan expenses incurred and claimed. |
Allowance for Loan Losses and Credit Quality |
The following table, which excludes loans held for sale, presents a summary of the activity in the allowance for loan losses. The portion of the allowance that has not been identified by the Company as related to specific loan categories has been allocated to the individual loan categories on a pro rata basis for purposes of the table below: |
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| Commercial, Financial and Agricultural | | Commercial Real Estate (1) | | Residential Real Estate (2) | | Consumer (3) | | Covered | | Total Loans | | | | | | | | |
| (In Thousands) | | | | | | | | |
Three months ended September 30, 2014 | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 317,790 | | | $ | 142,941 | | | $ | 153,694 | | | $ | 88,784 | | | $ | 11,551 | | | $ | 714,760 | | | | | | | | | |
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Provision charged to income | (6,889 | ) | | (8,180 | ) | | 6,963 | | | 16,216 | | | (4,241 | ) | | 3,869 | | | | | | | | | |
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Loans charged off | (3,404 | ) | | (555 | ) | | (9,852 | ) | | (20,514 | ) | | (1,124 | ) | | (35,449 | ) | | | | | | | | |
Loan recoveries | 3,818 | | | 1,285 | | | 3,266 | | | 3,909 | | | 420 | | | 12,698 | | | | | | | | | |
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Net charge offs | 414 | | | 730 | | | (6,586 | ) | | (16,605 | ) | | (704 | ) | | (22,751 | ) | | | | | | | | |
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Ending balance | $ | 311,315 | | | $ | 135,491 | | | $ | 154,071 | | | $ | 88,395 | | | $ | 6,606 | | | $ | 695,878 | | | | | | | | | |
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Three months ended September 30, 2013 | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 290,188 | | | $ | 182,613 | | | $ | 158,793 | | | $ | 83,702 | | | $ | 8,215 | | | $ | 723,511 | | | | | | | | | |
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Provision charged to income | 16,690 | | | (13,901 | ) | | 19,862 | | | 17,307 | | | (2,424 | ) | | 37,534 | | | | | | | | | |
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Loans charged off | (7,833 | ) | | (6,525 | ) | | (23,996 | ) | | (17,674 | ) | | (3,019 | ) | | (59,047 | ) | | | | | | | | |
Loan recoveries | 3,685 | | | 3,120 | | | 3,926 | | | 4,064 | | | 1,144 | | | 15,939 | | | | | | | | | |
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Net charge offs | (4,148 | ) | | (3,405 | ) | | (20,070 | ) | | (13,610 | ) | | (1,875 | ) | | (43,108 | ) | | | | | | | | |
Ending balance | $ | 302,730 | | | $ | 165,307 | | | $ | 158,585 | | | $ | 87,399 | | | $ | 3,916 | | | $ | 717,937 | | | | | | | | | |
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Nine Months Ended September 30, 2014 | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 292,327 | | | $ | 158,960 | | | $ | 155,575 | | | $ | 90,903 | | | $ | 2,954 | | | $ | 700,719 | | | | | | | | | |
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Provision charged to income | 30,107 | | | (17,959 | ) | | 27,675 | | | 46,014 | | | 550 | | | 86,387 | | | | | | | | | |
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Loans charged off | (23,855 | ) | | (10,506 | ) | | (39,421 | ) | | (62,887 | ) | | (2,131 | ) | | (138,800 | ) | | | | | | | | |
Loan recoveries | 12,736 | | | 4,996 | | | 10,242 | | | 14,365 | | | 5,233 | | | 47,572 | | | | | | | | | |
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Net charge offs | (11,119 | ) | | (5,510 | ) | | (29,179 | ) | | (48,522 | ) | | 3,102 | | | (91,228 | ) | | | | | | | | |
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Ending balance | $ | 311,315 | | | $ | 135,491 | | | $ | 154,071 | | | $ | 88,395 | | | $ | 6,606 | | | $ | 695,878 | | | | | | | | | |
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Nine Months Ended September 30, 2013 | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 283,058 | | | $ | 254,324 | | | $ | 172,265 | | | $ | 75,403 | | | $ | 17,803 | | | $ | 802,853 | | | | | | | | | |
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Provision charged to income | 37,167 | | | (70,315 | ) | | 73,709 | | | 50,936 | | | (10,111 | ) | | 81,386 | | | | | | | | | |
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Loans charged off | (31,044 | ) | | (34,268 | ) | | (96,289 | ) | | (52,744 | ) | | (6,444 | ) | | (220,789 | ) | | | | | | | | |
Loan recoveries | 13,549 | | | 15,566 | | | 8,900 | | | 13,804 | | | 2,668 | | | 54,487 | | | | | | | | | |
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Net charge offs | (17,495 | ) | | (18,702 | ) | | (87,389 | ) | | (38,940 | ) | | (3,776 | ) | | (166,302 | ) | | | | | | | | |
Ending balance | $ | 302,730 | | | $ | 165,307 | | | $ | 158,585 | | | $ | 87,399 | | | $ | 3,916 | | | $ | 717,937 | | | | | | | | | |
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-1 | Includes commercial real estate – mortgage and real estate – construction loans. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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-2 | Includes residential real estate – mortgage, equity lines of credit and equity loans. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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-3 | Includes credit card, consumer – direct and consumer – indirect loans. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The table below provides a summary of the allowance for loan losses and related loan balances by portfolio. |
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| Commercial, Financial and Agricultural | | Commercial Real Estate (1) | | Residential Real Estate (2) | | Consumer (3) | | Covered | | Total Loans | | | | | | | | |
| (In Thousands) | | | | | | | | |
September 30, 2014 | | | | | | | | | | | | | | | | | | | |
Ending balance of allowance attributable to loans: | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 20,620 | | | $ | 6,403 | | | $ | 39,683 | | | $ | 1,031 | | | $ | — | | | $ | 67,737 | | | | | | | | | |
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Collectively evaluated for impairment | 290,695 | | | 129,088 | | | 114,388 | | | 87,364 | | | — | | | 621,535 | | | | | | | | | |
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Covered purchased impaired | — | | | — | | | — | | | — | | | 4,198 | | | 4,198 | | | | | | | | | |
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Covered purchased nonimpaired | — | | | — | | | — | | | — | | | 2,408 | | | 2,408 | | | | | | | | | |
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Total allowance for loan losses | $ | 311,315 | | | $ | 135,491 | | | $ | 154,071 | | | $ | 88,395 | | | $ | 6,606 | | | $ | 695,878 | | | | | | | | | |
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Loans: | | | | | | | | | | | | | | | | | | | |
Ending balance of loans: | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 70,086 | | | $ | 114,165 | | | $ | 192,909 | | | $ | 1,431 | | | $ | — | | | $ | 378,591 | | | | | | | | | |
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Collectively evaluated for impairment | 22,440,870 | | | 11,362,180 | | | 16,302,515 | | | 3,944,321 | | | — | | | 54,049,886 | | | | | | | | | |
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Covered purchased impaired | — | | | — | | | — | | | — | | | 369,259 | | | 369,259 | | | | | | | | | |
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Covered purchased nonimpaired | — | | | — | | | — | | | — | | | 211,497 | | | 211,497 | | | | | | | | | |
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Total loans | $ | 22,510,956 | | | $ | 11,476,345 | | | $ | 16,495,424 | | | $ | 3,945,752 | | | $ | 580,756 | | | $ | 55,009,233 | | | | | | | | | |
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December 31, 2013 | | | | | | | | | | | | | | | | | | | |
Ending balance of allowance attributable to loans: | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 28,828 | | | $ | 9,408 | | | $ | 41,989 | | | $ | 1,526 | | | $ | — | | | $ | 81,751 | | | | | | | | | |
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Collectively evaluated for impairment | 263,499 | | | 149,552 | | | 113,586 | | | 89,377 | | | — | | | 616,014 | | | | | | | | | |
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Covered purchased impaired | — | | | — | | | — | | | — | | | 243 | | | 243 | | | | | | | | | |
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Covered purchased nonimpaired | — | | | — | | | — | | | — | | | 2,711 | | | 2,711 | | | | | | | | | |
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Total allowance for loan losses | $ | 292,327 | | | $ | 158,960 | | | $ | 155,575 | | | $ | 90,903 | | | $ | 2,954 | | | $ | 700,719 | | | | | | | | | |
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Loans: | | | | | | | | | | | | | | | | | | | |
Ending balance of loans: | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 138,047 | | | $ | 167,598 | | | $ | 196,723 | | | $ | 1,625 | | | $ | — | | | $ | 503,993 | | | | | | | | | |
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Collectively evaluated for impairment | 20,071,162 | | | 10,675,079 | | | 15,390,591 | | | 3,292,001 | | | — | | | 49,428,833 | | | | | | | | | |
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Covered purchased impaired | — | | | — | | | — | | | — | | | 389,360 | | | 389,360 | | | | | | | | | |
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Covered purchased nonimpaired | — | | | — | | | — | | | — | | | 344,830 | | | 344,830 | | | | | | | | | |
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Total loans | $ | 20,209,209 | | | $ | 10,842,677 | | | $ | 15,587,314 | | | $ | 3,293,626 | | | $ | 734,190 | | | $ | 50,667,016 | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-1 | Includes commercial real estate – mortgage and real estate – construction loans. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-2 | Includes residential real estate – mortgage, equity lines of credit and equity loans. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-3 | Includes credit card, consumer – direct and consumer – indirect loans. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table presents information on individually analyzed impaired loans, by loan class. |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| September 30, 2014 | | | | | | | | |
| Individually Analyzed Impaired Loans With No Recorded Allowance | | Individually Analyzed Impaired Loans With a Recorded Allowance | | | | | | | | |
| Recorded Investment | | Unpaid Principal Balance | | Allowance | | Recorded Investment | | Unpaid Principal Balance | | Allowance | | | | | | | | |
| (In Thousands) | | | | | | | | |
Commercial, financial and agricultural | $ | 6,098 | | | $ | 12,694 | | | $ | — | | | $ | 63,988 | | | $ | 75,458 | | | $ | 20,620 | | | | | | | | | |
| | | | | | | |
Real estate – construction | 4,509 | | | 5,040 | | | — | | | 2,851 | | | 3,420 | | | 507 | | | | | | | | | |
| | | | | | | |
Commercial real estate – mortgage | 20,144 | | | 20,940 | | | — | | | 86,661 | | | 92,631 | | | 5,896 | | | | | | | | | |
| | | | | | | |
Residential real estate – mortgage | 10,031 | | | 10,031 | | | — | | | 104,205 | | | 104,289 | | | 6,988 | | | | | | | | | |
| | | | | | | |
Equity lines of credit | — | | | — | | | — | | | 24,189 | | | 24,235 | | | 22,815 | | | | | | | | | |
| | | | | | | |
Equity loans | — | | | — | | | — | | | 54,484 | | | 54,814 | | | 9,880 | | | | | | | | | |
| | | | | | | |
Credit card | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Consumer – direct | — | | | — | | | — | | | 88 | | | 88 | | | 33 | | | | | | | | | |
| | | | | | | |
Consumer – indirect | — | | | — | | | — | | | 1,343 | | | 1,343 | | | 998 | | | | | | | | | |
| | | | | | | |
Total loans | $ | 40,782 | | | $ | 48,705 | | | $ | — | | | $ | 337,809 | | | $ | 356,278 | | | $ | 67,737 | | | | | | | | | |
| | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2013 | | | | | | | | |
| Individually Analyzed Impaired Loans With No Recorded Allowance | | Individually Analyzed Impaired Loans With a Recorded Allowance | | | | | | | | |
| Recorded Investment | | Unpaid Principal Balance | | Allowance | | Recorded Investment | | Unpaid Principal Balance | | Allowance | | | | | | | | |
| (In Thousands) | | | | | | | | |
Commercial, financial and agricultural | $ | 19,984 | | | $ | 27,639 | | | $ | — | | | $ | 118,063 | | | $ | 138,092 | | | $ | 28,828 | | | | | | | | | |
| | | | | | | |
Real estate – construction | 1,314 | | | 1,555 | | | — | | | 9,248 | | | 10,812 | | | 836 | | | | | | | | | |
| | | | | | | |
Commercial real estate – mortgage | 51,303 | | | 54,821 | | | — | | | 105,733 | | | 112,177 | | | 8,572 | | | | | | | | | |
| | | | | | | |
Residential real estate – mortgage | 1,906 | | | 1,906 | | | — | | | 115,550 | | | 115,734 | | | 7,378 | | | | | | | | | |
| | | | | | | |
Equity lines of credit | — | | | — | | | — | | | 23,593 | | | 24,021 | | | 23,190 | | | | | | | | | |
| | | | | | | |
Equity loans | — | | | — | | | — | | | 55,674 | | | 55,794 | | | 11,421 | | | | | | | | | |
| | | | | | | |
Credit card | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Consumer – direct | — | | | — | | | — | | | 182 | | | 181 | | | 83 | | | | | | | | | |
| | | | | | | |
Consumer – indirect | — | | | — | | | — | | | 1,443 | | | 1,443 | | | 1,443 | | | | | | | | | |
| | | | | | | |
Total loans | $ | 74,507 | | | $ | 85,921 | | | $ | — | | | $ | 429,486 | | | $ | 458,254 | | | $ | 81,751 | | | | | | | | | |
| | | | | | | |
The following table presents information on individually analyzed impaired loans, by loan class. |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Three Months Ended September 30, 2014 | | Three Months Ended September 30, 2013 | | | | | | | | | | | | | | | | |
| Average Recorded Investment | | Interest Income Recognized | | Average Recorded Investment | | Interest Income Recognized | | | | | | | | | | | | | | | | |
| (In Thousands) | | | | | | | | | | | | | | | | |
Commercial, financial and agricultural | $ | 70,256 | | | $ | 182 | | | $ | 151,326 | | | $ | 286 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Real estate – construction | 9,054 | | | 58 | | | 16,666 | | | 94 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Commercial real estate – mortgage | 108,323 | | | 754 | | | 196,009 | | | 1,219 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Residential real estate – mortgage | 112,912 | | | 724 | | | 125,699 | | | 773 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Equity lines of credit | 24,010 | | | 268 | | | 23,835 | | | 254 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Equity loans | 54,506 | | | 432 | | | 51,822 | | | 395 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Credit card | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Consumer – direct | 94 | | | 1 | | | 216 | | | 2 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Consumer – indirect | 1,276 | | | 1 | | | 1,735 | | | 1 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total loans | $ | 380,431 | | | $ | 2,420 | | | $ | 567,308 | | | $ | 3,024 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Nine Months Ended September 30, 2014 | | Nine Months Ended September 30, 2013 | | | | | | | | | | | | | | | | |
| Average Recorded Investment | | Interest Income Recognized | | Average Recorded Investment | | Interest Income Recognized | | | | | | | | | | | | | | | | |
| (In Thousands) | | | | | | | | | | | | | | | | |
Commercial, financial and agricultural | $ | 95,116 | | | $ | 970 | | | $ | 128,472 | | | $ | 1,007 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Real estate – construction | 9,421 | | | 177 | | | 64,136 | | | 637 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Commercial real estate – mortgage | 122,358 | | | 2,531 | | | 222,189 | | | 3,478 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Residential real estate – mortgage | 113,579 | | | 2,168 | | | 147,853 | | | 2,710 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Equity lines of credit | 23,641 | | | 773 | | | 10,527 | | | 335 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Equity loans | 54,977 | | | 1,286 | | | 40,600 | | | 1,086 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Credit card | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Consumer – direct | 131 | | | 3 | | | 170 | | | 30 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Consumer – indirect | 1,283 | | | 3 | | | 801 | | | 12 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total loans | $ | 420,506 | | | $ | 7,911 | | | $ | 614,748 | | | $ | 9,295 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
The tables above do not include Purchased Impaired Loans or loans held for sale. At September 30, 2014, there were $1.4 million and $5.2 million of recorded investment and unpaid principal balance on covered Purchased Impaired Loans with credit deterioration subsequent to acquisition that were individually analyzed for impairment, respectively. There was no allowance for loan losses associated with these loans. At December 31, 2013, there were $4.8 million, $10.9 million, and $243 thousand of recorded investment, unpaid principal balance and allowance for loan losses on covered Purchased Impaired Loans with credit deterioration subsequent to acquisition that were individually analyzed for impairment, respectively. Covered Purchased Nonimpaired Loans are not included in the tables above as they are evaluated collectively on a pool basis and not on an individual basis. |
Detailed information on the Company's allowance for loan losses methodology and the Company's impaired loan policy are included in the Company's Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2013. |
The Company monitors the credit quality of its commercial portfolio using an internal dual risk rating, which considers both the obligor and the facility. The obligor risk ratings are defined by ranges of default probabilities of the borrowers (AAA through D) and the facility risk ratings are defined by ranges of the loss given default. The combination of those two approaches results in the assessment of the likelihood of loss and it is mapped to the regulatory classifications. The Company assigns internal risk ratings at loan origination and at regular intervals subsequent to origination. Loan review intervals are dependent on the size and risk grade of the loan, and are generally conducted at least annually. Additional reviews are conducted when information affecting the loan’s risk grade becomes available. The general characteristics of the risk grades are as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | The Company’s internally assigned letter grades “AAA” through “B-” correspond to the regulatory classification “Pass.” These loans do not have any identified potential or well-defined weaknesses and have a high likelihood of orderly repayment. Exceptions exist when either the facility is fully secured by a CD and held at the Company or the facility is secured by properly margined and controlled marketable securities. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Internally assigned letter grades “CCC+” through “CCC” correspond to the regulatory classification “Special Mention.” Loans within this classification have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special mention loans are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | Internally assigned letter grades “CCC-” through “D1” correspond to the regulatory classification “Substandard.” A loan classified as substandard is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the loan. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
• | The internally assigned letter grade “D2” corresponds to the regulatory classification “Doubtful.” Loans classified as doubtful have all the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable or improbable. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Company considers payment history as the best indicator of credit quality for the consumer portfolio. Nonperforming loans in the tables below include loans classified as nonaccrual, loans 90 days or more past due and loans modified in a TDR 90 days or more past due. |
The following tables, which exclude loans held for sale and covered loans, illustrate the credit quality indicators associated with the Company’s loans, by loan class. |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Commercial | | | | | | | | | | | | | | | | | | | | |
| September 30, 2014 | | | | | | | | | | | | | | | | | | | | |
| Commercial, Financial and Agricultural | | Real Estate - Construction | | Commercial Real Estate - Mortgage | | | | | | | | | | | | | | | | | | | | |
| (In Thousands) | | | | | | | | | | | | | | | | | | | | |
Noncovered loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | $ | 22,036,391 | | | $ | 1,959,687 | | | $ | 9,134,217 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Special Mention | 254,768 | | | 8,832 | | | 183,690 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Substandard | 188,293 | | | 7,891 | | | 153,722 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Doubtful | 31,504 | | | 1,374 | | | 26,932 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| $ | 22,510,956 | | | $ | 1,977,784 | | | $ | 9,498,561 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2013 | | | | | | | | | | | | | | | | | | | | |
| Commercial, Financial and Agricultural | | Real Estate - Construction | | Commercial Real Estate - Mortgage | | | | | | | | | | | | | | | | | | | | |
| (In Thousands) | | | | | | | | | | | | | | | | | | | | |
Noncovered loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | $ | 19,582,014 | | | $ | 1,707,719 | | | $ | 8,562,261 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Special Mention | 353,638 | | | 9,918 | | | 271,500 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Substandard | 261,995 | | | 17,112 | | | 243,042 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Doubtful | 11,562 | | | 1,599 | | | 29,526 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| $ | 20,209,209 | | | $ | 1,736,348 | | | $ | 9,106,329 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Consumer | | | | | | | | |
| 30-Sep-14 | | | | | | | | |
| Residential Real Estate – Mortgage | | Equity Lines of Credit | | Equity Loans | | Credit Card | | Consumer - Direct | | Consumer –Indirect | | | | | | | | |
| (In Thousands) | | | | | | | | |
Noncovered loans: | | | | | | | | | | | | | | | | | | | |
Performing | $ | 13,499,841 | | | $ | 2,222,138 | | | $ | 608,848 | | | $ | 622,226 | | | $ | 607,594 | | | $ | 2,701,787 | | | | | | | | | |
| | | | | | | |
Nonperforming | 106,975 | | | 37,423 | | | 20,199 | | | 8,774 | | | 2,386 | | | 2,985 | | | | | | | | | |
| | | | | | | |
| $ | 13,606,816 | | | $ | 2,259,561 | | | $ | 629,047 | | | $ | 631,000 | | | $ | 609,980 | | | $ | 2,704,772 | | | | | | | | | |
| | | | | | | |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2013 | | | | | | | | |
| Residential Real Estate -Mortgage | | Equity Lines of Credit | | Equity Loans | | Credit Card | | Consumer -Direct | | Consumer –Indirect | | | | | | | | |
| (In Thousands) | | | | | | | | |
Noncovered loans: | | | | | | | | | | | | | | | | | | | |
Performing | $ | 12,601,515 | | | $ | 2,199,827 | | | $ | 621,897 | | | $ | 649,796 | | | $ | 513,630 | | | $ | 2,113,918 | | | | | | | | | |
| | | | | | | |
Nonperforming | 105,364 | | | 36,540 | | | 22,171 | | | 10,277 | | | 2,942 | | | 3,063 | | | | | | | | | |
| | | | | | | |
| $ | 12,706,879 | | | $ | 2,236,367 | | | $ | 644,068 | | | $ | 660,073 | | | $ | 516,572 | | | $ | 2,116,981 | | | | | | | | | |
| | | | | | | |
Covered loans are excluded from the table above as an initial estimate of credit losses was embedded within the initial purchase discount established at acquisition. Periodically, the Company updates its estimated cash flows related to these covered loans. Increases in these updated cash flows over those expected at the purchase date are recognized as interest income prospectively. Decreases in estimated cash flows after the purchase date are recognized by recording an allowance for credit losses. Generally, since the acquisition of these covered loans, there has been considerable improvement in the expected credit losses with some minimal deterioration in credit quality seen within specific loans and pools of loans. To account for the subsequent deterioration in credit, an allowance for loan losses of $7 million was recorded on the $581 million covered portfolio at September 30, 2014 and an allowance for loan losses of $3 million was recorded on the $734 million covered loans portfolio at December 31, 2013. |
The following tables present an aging analysis of the Company’s past due loans, excluding loans classified as held for sale and Purchased Impaired Loans. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| September 30, 2014 |
| 30-59 Days Past Due | | 60-89 Days Past Due | | 90 Days or More Past Due | | Nonaccrual | | Accruing TDRs | | Total Past Due and Impaired | | Not Past Due or Impaired | | Total |
| (In Thousands) |
Commercial, financial and agricultural | $ | 12,846 | | | $ | 3,261 | | | $ | 838 | | | $ | 79,577 | | | $ | 10,444 | | | $ | 106,966 | | | $ | 22,403,990 | | | $ | 22,510,956 | |
|
Real estate – construction | 526 | | | 109 | | | 464 | | | 9,928 | | | 672 | | | 11,699 | | | 1,966,085 | | | 1,977,784 | |
|
Commercial real estate – mortgage | 7,716 | | | 3,129 | | | 3,448 | | | 92,718 | | | 43,023 | | | 150,034 | | | 9,348,527 | | | 9,498,561 | |
|
Residential real estate – mortgage | 37,711 | | | 20,447 | | | 2,474 | | | 104,192 | | | 72,590 | | | 237,414 | | | 13,369,402 | | | 13,606,816 | |
|
Equity lines of credit | 8,046 | | | 3,966 | | | 3,308 | | | 34,115 | | | — | | | 49,435 | | | 2,210,126 | | | 2,259,561 | |
|
Equity loans | 5,624 | | | 2,746 | | | 1,068 | | | 18,637 | | | 42,595 | | | 70,670 | | | 558,377 | | | 629,047 | |
|
Credit card | 5,566 | | | 3,718 | | | 8,774 | | | — | | | — | | | 18,058 | | | 612,942 | | | 631,000 | |
|
Consumer – direct | 7,751 | | | 1,678 | | | 1,984 | | | 402 | | | 57 | | | 11,872 | | | 598,108 | | | 609,980 | |
|
Consumer – indirect | 30,348 | | | 6,379 | | | 1,389 | | | 1,596 | | | — | | | 39,712 | | | 2,665,060 | | | 2,704,772 | |
|
Covered loans | 1,057 | | | 689 | | | 4,088 | | | 3,772 | | | 2,399 | | | 12,005 | | | 199,492 | | | 211,497 | |
|
Total loans | $ | 117,191 | | | $ | 46,122 | | | $ | 27,835 | | | $ | 344,937 | | | $ | 171,780 | | | $ | 707,865 | | | $ | 53,932,109 | | | $ | 54,639,974 | |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2013 |
| 30-59 Days Past Due | | 60-89 Days Past Due | | 90 Days or More Past Due | | Nonaccrual | | Accruing TDRs | | Total Past Due and Impaired | | Not Past Due or Impaired | | Total |
| (In Thousands) |
Commercial, financial and agricultural | $ | 9,485 | | | $ | 6,111 | | | $ | 2,212 | | | $ | 128,231 | | | $ | 25,548 | | | $ | 171,587 | | | $ | 20,037,622 | | | $ | 20,209,209 | |
|
Real estate – construction | 4,258 | | | 1,862 | | | 240 | | | 14,183 | | | 3,801 | | | 24,344 | | | 1,712,004 | | | 1,736,348 | |
|
Commercial real estate – mortgage | 9,521 | | | 4,869 | | | 797 | | | 129,672 | | | 59,727 | | | 204,586 | | | 8,901,743 | | | 9,106,329 | |
|
Residential real estate – mortgage | 48,597 | | | 22,629 | | | 2,460 | | | 102,904 | | | 74,236 | | | 250,826 | | | 12,456,053 | | | 12,706,879 | |
|
Equity lines of credit | 12,230 | | | 6,252 | | | 5,109 | | | 31,431 | | | — | | | 55,022 | | | 2,181,345 | | | 2,236,367 | |
|
Equity loans | 7,630 | | | 3,170 | | | 1,167 | | | 20,447 | | | 42,850 | | | 75,264 | | | 568,804 | | | 644,068 | |
|
Credit card | 5,955 | | | 4,676 | | | 10,277 | | | — | | | — | | | 20,908 | | | 639,165 | | | 660,073 | |
|
Consumer – direct | 8,736 | | | 3,000 | | | 2,402 | | | 540 | | | 91 | | | 14,769 | | | 501,803 | | | 516,572 | |
|
Consumer – indirect | 24,945 | | | 5,276 | | | 1,540 | | | 1,523 | | | — | | | 33,284 | | | 2,083,697 | | | 2,116,981 | |
|
Covered loans | 1,247 | | | 290 | | | 4,122 | | | 5,425 | | | 3,455 | | | 14,539 | | | 330,291 | | | 344,830 | |
|
Total loans | $ | 132,604 | | | $ | 58,135 | | | $ | 30,326 | | | $ | 434,356 | | | $ | 209,708 | | | $ | 865,129 | | | $ | 49,412,527 | | | $ | 50,277,656 | |
|
Policies related to the Company's nonaccrual and past due loans are included in the Company's Consolidated Financial Statements in the Annual Report on Form 10-K for the year ended December 31, 2013. |
It is the Company’s policy to classify TDRs that are not accruing interest as nonaccrual loans. It is also the Company’s policy to classify TDR past due loans that are accruing interest as TDRs and not according to their past due status. The tables above reflect this policy. The following table provides a breakout of TDRs, including nonaccrual loans and covered loans and excluding loans classified as held for sale. |
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| September 30, 2014 | | | | |
| 30-59 Days Past Due | | 60-89 Days Past Due | | 90 Days or More Past Due | | Nonaccrual | | Total Past Due and Nonaccrual | | Not Past Due or Nonaccrual | | Total | | | | |
| (In Thousands) | | | | |
Commercial, financial and agricultural | $ | — | | | $ | — | | | $ | 188 | | | $ | 18,517 | | | $ | 18,705 | | | $ | 10,256 | | | $ | 28,961 | | | | | |
| | | |
Real estate – construction | — | | | — | | | — | | | 175 | | | 175 | | | 672 | | | 847 | | | | | |
| | | |
Commercial real estate – mortgage | — | | | 21 | | | — | | | 10,208 | | | 10,229 | | | 43,002 | | | 53,231 | | | | | |
| | | |
Residential real estate – mortgage | 5,098 | | | 2,485 | | | 309 | | | 29,118 | | | 37,010 | | | 64,698 | | | 101,708 | | | | | |
| | | |
Equity lines of credit | — | | | — | | | — | | | 24,189 | | | 24,189 | | | — | | | 24,189 | | | | | |
| | | |
Equity loans | 2,094 | | | 2,069 | | | 494 | | | 11,994 | | | 16,651 | | | 37,938 | | | 54,589 | | | | | |
| | | |
Credit card | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | |
| | | |
Consumer – direct | — | | | — | | | — | | | 32 | | | 32 | | | 57 | | | 89 | | | | | |
| | | |
Consumer – indirect | — | | | — | | | — | | | 1,342 | | | 1,342 | | | — | | | 1,342 | | | | | |
| | | |
Covered loans | 6 | | | 214 | | | — | | | 1,369 | | | 1,589 | | | 2,179 | | | 3,768 | | | | | |
| | | |
Total loans | $ | 7,198 | | | $ | 4,789 | | | $ | 991 | | | $ | 96,944 | | | $ | 109,922 | | | $ | 158,802 | | | $ | 268,724 | | | | | |
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| December 31, 2013 | | | | |
| 30-59 Days Past Due | | 60-89 Days Past Due | | 90 Days or More Past Due | | Nonaccrual | | Total Past Due and Nonaccrual | | Not Past Due or Nonaccrual | | Total | | | | |
| (In Thousands) | | | | |
Commercial, financial and agricultural | $ | 5 | | | $ | — | | | $ | — | | | $ | 20,498 | | | $ | 20,503 | | | $ | 25,543 | | | $ | 46,046 | | | | | |
| | | |
Real estate – construction | 32 | | | 50 | | | — | | | 181 | | | 263 | | | 3,719 | | | 3,982 | | | | | |
| | | |
Commercial real estate – mortgage | 2,345 | | | — | | | — | | | 13,910 | | | 16,255 | | | 57,382 | | | 73,637 | | | | | |
| | | |
Residential real estate – mortgage | 3,755 | | | 2,747 | | | 760 | | | 30,492 | | | 37,754 | | | 66,974 | | | 104,728 | | | | | |
| | | |
Equity lines of credit | — | | | — | | | — | | | 24,592 | | | 24,592 | | | — | | | 24,592 | | | | | |
| | | |
Equity loans | 1,799 | | | 1,022 | | | 557 | | | 12,823 | | | 16,201 | | | 39,472 | | | 55,673 | | | | | |
| | | |
Credit card | — | | | — | | | — | | | — | | | — | | | — | | | — | | | | | |
| | | |
Consumer – direct | — | | | — | | | — | | | 90 | | | 90 | | | 91 | | | 181 | | | | | |
| | | |
Consumer – indirect | — | | | — | | | — | | | 1,443 | | | 1,443 | | | — | | | 1,443 | | | | | |
| | | |
Covered loans | 21 | | | — | | | — | | | 5,428 | | | 5,449 | | | 3,434 | | | 8,883 | | | | | |
| | | |
Total loans | $ | 7,957 | | | $ | 3,819 | | | $ | 1,317 | | | $ | 109,457 | | | $ | 122,550 | | | $ | 196,615 | | | $ | 319,165 | | | | | |
| | | |
As of September 30, 2014, there were no loans held for sale classified as TDRs. At December 31, 2013, there were $3.6 million of nonaccrual loans held for sale classified as TDRs. |
Modifications to a borrower’s loan agreement are considered TDRs if a concession is granted for economic or legal reasons related to a borrower’s financial difficulties that otherwise would not be considered. Within each of the Company’s loan classes, TDRs typically involve modification of the loan interest rate to a below market rate or an extension or deferment of the loan. During the three months ended September 30, 2014, $1.4 million of TDR modifications included an interest rate concession and $19.6 million of TDR modifications resulted from modifications to the loan’s structure. During the three months ended September 30, 2013, $5.2 million of TDR modifications included an interest rate concession and $3.3 million of TDR modifications resulted from modifications to the loan’s structure. During the nine months ended September 30, 2014, $8.3 million of TDR modifications included an interest rate concession and $33.0 million of TDR modifications resulted from modifications to the loan’s structure. During the nine months ended September 30, 2013, $24.1 million of TDR modifications included an interest rate concession and $57.9 million of TDR modifications resulted from modifications to the loan’s structure. |
The following table presents an analysis of the types of loans that were restructured and classified as TDRs, excluding loans classified as held for sale. |
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| Three Months Ended September 30, 2014 | | Three Months Ended September 30, 2013 | | | | | | | | | | | | | | | | | | |
| Number of Contracts | | Post-Modification Outstanding Recorded Investment | | Number of Contracts | | Post-Modification Outstanding Recorded Investment | | | | | | | | | | | | | | | | | | |
| (Dollars in Thousands) | | | | | | | | | | | | | | | | | | |
Commercial, financial and agricultural | 2 | | | $ | 14,118 | | | 1 | | | $ | 1,351 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Real estate – construction | 2 | | | 405 | | | — | | | — | | | | | | | | | | | | | | | | | | | |
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Commercial real estate – mortgage | — | | | — | | | 1 | | | 115 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Residential real estate – mortgage | 18 | | | 3,255 | | | 21 | | | 2,527 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Equity lines of credit | 32 | | | 1,946 | | | 22 | | | 898 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Equity loans | 13 | | | 920 | | | 31 | | | 3,388 | | | | | | | | | | | | | | | | | | | |
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Credit card | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | |
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Consumer – direct | — | | | — | | | 2 | | | 5 | | | | | | | | | | | | | | | | | | | |
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Consumer – indirect | 21 | | | 343 | | | 20 | | | 184 | | | | | | | | | | | | | | | | | | | |
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Covered loans | 1 | | | 3 | | | 1 | | | 22 | | | | | | | | | | | | | | | | | | | |
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| Nine Months Ended September 30, 2014 | | Nine Months Ended September 30, 2013 | | | | | | | | | | | | | | | | | | |
| Number of Contracts | | Post-Modification Outstanding Recorded Investment | | Number of Contracts | | Post-Modification Outstanding Recorded Investment | | | | | | | | | | | | | | | | | | |
| (Dollars in Thousands) | | | | | | | | | | | | | | | | | | |
Commercial, financial and agricultural | 4 | | | $ | 14,281 | | | 7 | | | $ | 6,410 | | | | | | | | | | | | | | | | | | | |
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Real estate – construction | 2 | | | 405 | | | 3 | | | 2,409 | | | | | | | | | | | | | | | | | | | |
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Commercial real estate – mortgage | 9 | | | 6,586 | | | 14 | | | 3,947 | | | | | | | | | | | | | | | | | | | |
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Residential real estate – mortgage | 74 | | | 8,373 | | | 190 | | | 26,038 | | | | | | | | | | | | | | | | | | | |
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Equity lines of credit | 129 | | | 6,426 | | | 482 | | | 24,134 | | | | | | | | | | | | | | | | | | | |
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Equity loans | 54 | | | 4,237 | | | 390 | | | 16,648 | | | | | | | | | | | | | | | | | | | |
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Credit card | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | |
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Consumer – direct | — | | | — | | | 17 | | | 138 | | | | | | | | | | | | | | | | | | | |
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Consumer – indirect | 71 | | | 1,015 | | | 404 | | | 2,188 | | | | | | | | | | | | | | | | | | | |
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Covered loans | 1 | | | 3 | | | 3 | | | 71 | | | | | | | | | | | | | | | | | | | |
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In response to guidance issued by a national bank regulatory agency, during the second quarter of 2013, the Company concluded that $52.6 million of loans that had been discharged in bankruptcy and not reaffirmed by the borrower should be classified as nonperforming TDRs. The Company estimated the allowance for loan losses for these loans based on collateral shortfall and accordingly the allowance for loan losses was increased by $33.5 million during the second quarter of 2013. |
For the three and nine months ended September 30, 2014 and 2013, charge-offs and changes to the allowance related to modifications classified as TDRs, excluding the nonreaffirmed loans discharged in bankruptcy, were not material. |
The Company considers TDRs 90 days or more past due, charged off or classified as nonaccrual subsequent to modification, where the loan was not classified as a nonperforming loan at the time of modification, as subsequently defaulted. |
The following tables provide a summary of initial subsequent defaults that occurred within one year of the restructure date. The table excludes loans classified as held for sale as of period-end and includes loans no longer in default as of period-end. |
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| Three Months Ended September 30, 2014 | | Three Months Ended September 30, 2013 | | | | | | | | | | | | | | | | | | |
| Number of Contracts | | Recorded Investment at Default | | Number of Contracts | | Recorded Investment at Default | | | | | | | | | | | | | | | | | | |
| (Dollars in Thousands) | | | | | | | | | | | | | | | | | | |
Commercial, financial and agricultural | — | | | $ | — | | | — | | | $ | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Real estate – construction | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Commercial real estate – mortgage | — | | | — | | | 1 | | | 422 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Residential real estate – mortgage | 2 | | | 144 | | | 2 | | | 201 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Equity lines of credit | — | | | — | | | 5 | | | 309 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Equity loans | 3 | | | 381 | | | 5 | | | 370 | | | | | | | | | | | | | | | | | | | |
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Credit card | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Consumer – direct | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Consumer – indirect | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Covered loans | — | | | — | | | 1 | | | 35 | | | | | | | | | | | | | | | | | | | |
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| Nine Months Ended September 30, 2014 | | Nine Months Ended September 30, 2013 | | | | | | | | | | | | | | | | | | |
| Number of Contracts | | Recorded Investment at Default | | Number of Contracts | | Recorded Investment at Default | | | | | | | | | | | | | | | | | | |
| (Dollars in Thousands) | | | | | | | | | | | | | | | | | | |
Commercial, financial and agricultural | — | | | $ | — | | | 1 | | | $ | 9,531 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Real estate – construction | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Commercial real estate – mortgage | 1 | | | 2,198 | | | 2 | | | 529 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Residential real estate – mortgage | 2 | | | 144 | | | 12 | | | 2,336 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Equity lines of credit | 3 | | | 275 | | | 5 | | | 309 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Equity loans | 7 | | | 763 | | | 6 | | | 424 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Credit card | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Consumer – direct | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Consumer – indirect | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Covered loans | — | | | — | | | 1 | | | 35 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
The Company’s allowance for loan losses is largely driven by updated risk ratings assigned to commercial loans, updated borrower credit scores on consumer loans, and borrower delinquency history in both commercial and consumer portfolios. As such, the provision for loan losses is impacted primarily by changes in borrower payment performance rather than TDR classification. In addition, all commercial and consumer loans modified in a TDR are considered to be impaired, even if they maintain their accrual status. |
At September 30, 2014 and December 31, 2013, there were $4.0 million and $3.9 million, respectively, of commitments to lend additional funds to borrowers whose terms have been modified in a TDR. |