Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses The following table presents the composition of the loan portfolio. June 30, 2015 December 31, 2014 (In Thousands) Commercial loans: Commercial, financial and agricultural $ 24,953,188 $ 23,828,537 Real estate – construction 2,436,831 2,154,652 Commercial real estate – mortgage 10,325,680 9,877,206 Total commercial loans 37,715,699 35,860,395 Consumer loans: Residential real estate – mortgage 14,203,543 13,922,656 Equity lines of credit 2,352,700 2,304,784 Equity loans 639,126 634,968 Credit card 592,369 630,456 Consumer direct 780,368 652,927 Consumer indirect 3,249,579 2,870,408 Total consumer loans 21,817,685 21,016,199 Covered loans 473,842 495,190 Total loans $ 60,007,226 $ 57,371,784 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. June 30, 2015 December 31, 2014 (In Thousands) Unpaid principal balance $ 352,847 $ 378,913 Discount (8,197 ) (17,341 ) Allowance for loan losses (1,786 ) (2,066 ) Carrying value $ 342,864 $ 359,506 An analysis of the accretable yield related to the Purchased Impaired Loans follows. Six Months Ended June 30, 2015 2014 (In Thousands) Balance at beginning of period $ 68,785 $ 105,698 Transfer to (from) nonaccretable difference (10,071 ) 6,633 Accretion (14,850 ) (29,405 ) Other — — Balance at end of period $ 43,864 $ 82,926 The Company had allowance for loan losses of $1.8 million and $2.1 million related to Purchased Impaired Loans at June 30, 2015 and December 31, 2014 , respectively. During the three months ended June 30, 2015 and 2014 , the Company recognized $1.0 million and $2.5 million , respectively, of provision for loan losses attributable to credit deterioration subsequent to acquisition of these loans. During the six months ended June 30, 2015 and 2014 , the Company recognized $105 thousand and $4.6 million , respectively, of provision for loan losses attributable to credit deterioration 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 June 30, 2015 and 2014 approximately $16.8 million and $35.4 million , respectively, of interest income was recognized on these loans. For the six months ended June 30, 2015 and 2014 approximately $53.4 million and $73.2 million , respectively, of interest income was recognized on these loans. The discount related to credit on the Purchased Nonimpaired Loans is reviewed for adequacy quarterly. 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. June 30, 2015 December 31, 2014 (In Thousands) Unpaid principal balance $ 264,142 $ 294,202 Discount (45,630 ) (88,962 ) Allowance for loan losses (291 ) (2,283 ) Carrying value $ 218,221 $ 202,957 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 if the acquired portfolio's credit improves beyond original expectations. Activity associated with the Company's estimate of the potential amount of this payment is included in the table below. The Company has chosen to net the amounts due from the FDIC and due to the FDIC into the FDIC indemnification asset (liability), which is recorded in accrued expenses and other liabilities in the Company's Unaudited Condensed Consolidated Balance Sheets. See Note 7 , 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. Six Months Ended June 30, 2015 2014 (In Thousands) Balance at beginning of period $ (78,025 ) $ 24,315 Increase (decrease) due to credit loss provision (benefit) recorded on FDIC covered loans (1,054 ) 8,726 Amortization and accretion, net (38,411 ) (67,212 ) Payments to (reimbursements from) FDIC for covered assets (905 ) 6,611 Other (1,743 ) (3,502 ) Balance at end of period $ (120,138 ) $ (31,062 ) 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: Commercial, Financial and Agricultural Commercial Real Estate (1) Residential Real Estate (2) Consumer (3) Covered Total Loans (In Thousands) Three months ended June 30, 2015 Allowance for loan losses: Beginning balance $ 323,397 $ 139,271 $ 144,947 $ 92,781 $ 1,468 $ 701,864 Provision (credit) for loan losses 29,351 (5,554 ) (6,442 ) 28,224 570 46,149 Loans charged off (4,926 ) (835 ) (8,191 ) (26,845 ) (153 ) (40,950 ) Loan recoveries 3,057 2,270 3,681 5,399 1 14,408 Net (charge-offs) recoveries (1,869 ) 1,435 (4,510 ) (21,446 ) (152 ) (26,542 ) Ending balance $ 350,879 $ 135,152 $ 133,995 $ 99,559 $ 1,886 $ 721,471 Three months ended June 30, 2014 Allowance for loan losses: Beginning balance $ 299,879 $ 153,130 $ 155,234 $ 91,357 $ 8,065 $ 707,665 Provision (credit) for loan losses 29,495 (5,057 ) 8,039 12,969 (194 ) 45,252 Loans charged off (15,517 ) (7,305 ) (13,861 ) (20,669 ) (791 ) (58,143 ) Loan recoveries 3,933 2,173 4,282 5,127 4,471 19,986 Net (charge-offs) recoveries (11,584 ) (5,132 ) (9,579 ) (15,542 ) 3,680 (38,157 ) Ending balance $ 317,790 $ 142,941 $ 153,694 $ 88,784 $ 11,551 $ 714,760 Six Months Ended June 30, 2015 Allowance for loan losses: Beginning balance $ 299,482 $ 138,233 $ 154,627 $ 89,891 $ 2,808 $ 685,041 Provision (credit) for loan losses 57,703 (5,739 ) (12,881 ) 48,994 103 88,180 Loans charged off (11,545 ) (1,470 ) (14,945 ) (51,390 ) (1,026 ) (80,376 ) Loan recoveries 5,239 4,128 7,194 12,064 1 28,626 Net (charge-offs) recoveries (6,306 ) 2,658 (7,751 ) (39,326 ) (1,025 ) (51,750 ) Ending balance $ 350,879 $ 135,152 $ 133,995 $ 99,559 $ 1,886 $ 721,471 Six Months Ended June 30, 2014 Allowance for loan losses: Beginning balance $ 292,327 $ 158,960 $ 155,575 $ 90,903 $ 2,954 $ 700,719 Provision (credit) for loan losses 36,996 (9,779 ) 20,712 29,798 4,791 82,518 Loans charged off (20,451 ) (9,951 ) (29,569 ) (42,373 ) (1,007 ) (103,351 ) Loan recoveries 8,918 3,711 6,976 10,456 4,813 34,874 Net (charge-offs) recoveries (11,533 ) (6,240 ) (22,593 ) (31,917 ) 3,806 (68,477 ) Ending balance $ 317,790 $ 142,941 $ 153,694 $ 88,784 $ 11,551 $ 714,760 (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 table below provides a summary of the allowance for loan losses and related loan balances by portfolio. Commercial, Financial and Agricultural Commercial Real Estate (1) Residential Real Estate (2) Consumer (3) Covered Total Loans (In Thousands) June 30, 2015 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ 27,131 $ 5,026 $ 36,798 $ 1,613 $ — $ 70,568 Collectively evaluated for impairment 323,557 130,126 97,197 97,946 — 648,826 Purchased impaired — — — — 1,786 1,786 Purchased nonimpaired 191 — — — 100 291 Total allowance for loan losses $ 350,879 $ 135,152 $ 133,995 $ 99,559 $ 1,886 $ 721,471 Ending balance of loans: Individually evaluated for impairment $ 134,412 $ 86,108 $ 185,089 $ 1,830 $ — $ 407,439 Collectively evaluated for impairment 24,781,003 12,631,422 17,009,236 4,614,964 — 59,036,625 Purchased impaired — — — — 344,650 344,650 Purchased nonimpaired 37,773 44,981 1,044 5,522 129,192 218,512 Total loans $ 24,953,188 $ 12,762,511 $ 17,195,369 $ 4,622,316 $ 473,842 $ 60,007,226 December 31, 2014 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ 11,158 $ 8,466 $ 42,277 $ 1,532 $ — $ 63,433 Collectively evaluated for impairment 287,105 129,767 112,350 88,037 — 617,259 Purchased impaired — — — — 2,066 2,066 Purchased nonimpaired 1,219 — — 322 742 2,283 Total allowance for loan losses $ 299,482 $ 138,233 $ 154,627 $ 89,891 $ 2,808 $ 685,041 Ending balance of loans: Individually evaluated for impairment $ 48,173 $ 105,608 $ 195,462 $ 1,827 $ — $ 351,070 Collectively evaluated for impairment 23,745,149 11,896,943 16,665,930 4,145,880 — 56,453,902 Purchased impaired — — — — 361,572 361,572 Purchased nonimpaired 35,215 29,307 1,016 6,084 133,618 205,240 Total loans $ 23,828,537 $ 12,031,858 $ 16,862,408 $ 4,153,791 $ 495,190 $ 57,371,784 (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 evaluated impaired loans, by loan class. June 30, 2015 Individually Evaluated Impaired Loans With No Recorded Allowance Individually Evaluated Impaired Loans With a Recorded Allowance Recorded Investment Unpaid Principal Balance Allowance Recorded Investment Unpaid Principal Balance Allowance (In Thousands) Commercial, financial and agricultural $ 7,751 $ 15,140 $ — $ 126,661 $ 131,299 $ 27,131 Real estate – construction 3,492 4,006 — 2,526 2,571 835 Commercial real estate – mortgage 22,249 23,330 — 57,841 62,294 4,191 Residential real estate – mortgage 6,772 6,772 — 102,577 102,577 6,523 Equity lines of credit — — — 26,659 27,071 23,103 Equity loans — — — 49,081 49,593 7,172 Credit card — — — — — — Consumer direct — — — 196 196 196 Consumer indirect — — — 1,634 1,634 1,417 Total loans $ 40,264 $ 49,248 $ — $ 367,175 $ 377,235 $ 70,568 December 31, 2014 Individually Evaluated Impaired Loans With No Recorded Allowance Individually Evaluated Impaired Loans With a Recorded Allowance Recorded Investment Unpaid Principal Balance Allowance Recorded Investment Unpaid Principal Balance Allowance (In Thousands) Commercial, financial and agricultural $ — $ — $ — $ 48,173 $ 61,552 $ 11,158 Real estate – construction 3,492 4,006 — 2,686 2,731 872 Commercial real estate – mortgage 22,822 23,781 — 76,608 82,005 7,594 Residential real estate – mortgage 8,795 8,795 — 107,223 107,306 9,236 Equity lines of credit — — — 25,743 26,124 23,394 Equity loans — — — 53,701 54,038 9,647 Credit card — — — — — — Consumer direct — — — 337 337 42 Consumer indirect — — — 1,490 1,490 1,490 Total loans $ 35,109 $ 36,582 $ — $ 315,961 $ 335,583 $ 63,433 The following table presents information on individually evaluated impaired loans, by loan class. Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In Thousands) Commercial, financial and agricultural $ 95,797 $ 366 $ 88,271 $ 543 Real estate – construction 6,036 37 9,088 56 Commercial real estate – mortgage 82,055 537 117,404 835 Residential real estate – mortgage 110,514 694 112,862 725 Equity lines of credit 26,830 276 23,511 255 Equity loans 50,023 401 55,399 429 Credit card — — — — Consumer direct 981 2 140 1 Consumer indirect 1,642 — 1,309 1 Total loans $ 373,878 $ 2,313 $ 407,984 $ 2,845 Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (In Thousands) Commercial, financial and agricultural $ 80,339 $ 705 $ 107,546 $ 788 Real estate – construction 6,076 76 9,604 119 Commercial real estate – mortgage 85,117 1,117 129,376 1,777 Residential real estate – mortgage 112,220 1,389 113,913 1,444 Equity lines of credit 26,744 559 23,457 505 Equity loans 51,229 805 55,213 854 Credit card — — — — Consumer direct 831 8 149 2 Consumer indirect 1,593 — 1,287 2 Total loans $ 364,149 $ 4,659 $ 440,545 $ 5,491 The tables above do not include Purchased Impaired Loans, Purchased Nonimpaired Loans or loans held for sale. At June 30, 2015 , there were $1.9 million and $4.7 million of recorded investment and unpaid principal balance, respectively, on Purchased Impaired Loans with credit deterioration subsequent to acquisition that were individually evaluated for impairment. There was no allowance for loan losses recorded on these loans. At December 31, 2014 , there were $1.3 million and $4.7 million of recorded investment and unpaid principal balance, respectively, on Purchased Impaired Loans with credit deterioration subsequent to acquisition that were individually evaluated for impairment. There was no allowance for loan losses recorded on these loans. 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, 2014 . 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. Substandard loans 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 a loan 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 June 30, 2015 Commercial, Financial and Agricultural Real Estate - Construction Commercial Real Estate - Mortgage (In Thousands) Noncovered loans: Pass $ 24,328,227 $ 2,406,917 $ 9,962,971 Special Mention 339,112 17,077 231,340 Substandard 227,651 12,816 119,394 Doubtful 58,198 21 11,975 $ 24,953,188 $ 2,436,831 $ 10,325,680 December 31, 2014 Commercial, Financial and Agricultural Real Estate - Construction Commercial Real Estate - Mortgage (In Thousands) Noncovered loans: Pass $ 23,380,541 $ 2,098,994 $ 9,514,917 Special Mention 280,934 42,176 210,337 Substandard 128,251 13,458 129,435 Doubtful 38,811 24 22,517 $ 23,828,537 $ 2,154,652 $ 9,877,206 Consumer June 30, 2015 Residential Real Estate – Mortgage Equity Lines of Credit Equity Loans Credit Card Consumer Direct Consumer Indirect (In Thousands) Noncovered loans: Performing $ 14,094,899 $ 2,316,428 $ 621,470 $ 584,697 $ 777,339 $ 3,241,916 Nonperforming 108,644 36,272 17,656 7,672 3,029 7,663 $ 14,203,543 $ 2,352,700 $ 639,126 $ 592,369 $ 780,368 $ 3,249,579 December 31, 2014 Residential Real Estate -Mortgage Equity Lines of Credit Equity Loans Credit Card Consumer Direct Consumer Indirect (In Thousands) Noncovered loans: Performing $ 13,810,857 $ 2,269,231 $ 614,064 $ 621,015 $ 649,832 $ 2,865,013 Nonperforming 111,799 35,553 20,904 9,441 3,095 5,395 $ 13,922,656 $ 2,304,784 $ 634,968 $ 630,456 $ 652,927 $ 2,870,408 The following tables present an aging analysis of the Company’s past due loans, excluding loans classified as held for sale. June 30, 2015 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 $ 18,524 $ 7,037 $ 3,149 $ 147,051 $ 9,693 $ 185,454 $ 24,767,734 $ 24,953,188 Real estate – construction 148 512 1,157 7,777 2,212 11,806 2,425,025 2,436,831 Commercial real estate – mortgage 7,916 1,348 2,853 78,569 34,389 125,075 10,200,605 10,325,680 Residential real estate – mortgage 45,487 14,926 1,703 106,179 71,357 239,652 13,963,891 14,203,543 Equity lines of credit 7,833 4,370 2,515 33,757 — 48,475 2,304,225 2,352,700 Equity loans 5,202 1,553 1,147 16,175 38,998 63,075 576,051 639,126 Credit card 4,840 3,361 7,672 — — 15,873 576,496 592,369 Consumer direct 7,247 2,190 2,176 853 167 12,633 767,735 780,368 Consumer indirect 47,676 8,895 2,810 4,853 — 64,234 3,185,345 3,249,579 Covered loans 5,930 3,640 44,528 136 — 54,234 419,608 473,842 Total loans $ 150,803 $ 47,832 $ 69,710 $ 395,350 $ 156,816 $ 820,511 $ 59,186,715 $ 60,007,226 December 31, 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 $ 10,829 $ 5,765 $ 1,610 $ 61,157 $ 10,127 $ 89,488 $ 23,739,049 $ 23,828,537 Real estate – construction 1,954 994 477 7,964 2,112 13,501 2,141,151 2,154,652 Commercial real estate – mortgage 9,813 4,808 628 89,736 39,841 144,826 9,732,380 9,877,206 Residential real estate – mortgage 45,279 16,510 2,598 108,357 69,408 242,152 13,680,504 13,922,656 Equity lines of credit 9,929 4,395 2,679 32,874 — 49,877 2,254,907 2,304,784 Equity loans 6,357 3,268 997 19,029 41,197 70,848 564,120 634,968 Credit card 5,692 3,921 9,441 — — 19,054 611,402 630,456 Consumer direct 9,542 1,826 2,296 799 298 14,761 638,166 652,927 Consumer indirect 35,366 7,935 2,771 2,624 — 48,696 2,821,712 2,870,408 Covered loans 6,678 4,618 47,957 114 — 59,367 435,823 495,190 Total loans $ 141,439 $ 54,040 $ 71,454 $ 322,654 $ 162,983 $ 752,570 $ 56,619,214 $ 57,371,784 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, 2014 . 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. June 30, 2015 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 $ 33 $ — $ 128 $ 1,400 $ 1,561 $ 9,532 $ 11,093 Real estate – construction — — — 516 516 2,212 2,728 Commercial real estate – mortgage — — — 4,475 4,475 34,389 38,864 Residential real estate – mortgage 3,958 311 762 27,664 32,695 66,326 99,021 Equity lines of credit — — — 25,490 25,490 — 25,490 Equity loans 2,540 491 334 10,083 13,448 35,633 49,081 Credit card — — — — — — — Consumer direct — — — 29 29 167 196 Consumer indirect — — — 1,634 1,634 — 1,634 Covered loans — — — 16 16 — 16 Total loans $ 6,531 $ 802 $ 1,224 $ 71,307 $ 79,864 $ 148,259 $ 228,123 December 31, 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 $ 11 $ — $ — $ 2,052 $ 2,063 $ 10,116 $ 12,179 Real estate – construction — — — 200 200 2,112 2,312 Commercial real estate – mortgage 371 536 — 7,068 7,975 38,934 46,909 Residential real estate – mortgage 2,440 2,688 844 32,518 38,490 63,436 101,926 Equity lines of credit — — — 24,519 24,519 — 24,519 Equity loans 2,182 1,124 878 12,504 16,688 37,013 53,701 Credit card — — — — — — — Consumer direct 105 — — 40 145 193 338 Consumer indirect — — — 1,490 1,490 — 1,490 Covered loans — — — 17 17 — 17 Total loans $ 5,109 $ 4,348 $ 1,722 $ 80,408 $ 91,587 $ 151,804 $ 243,391 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 June 30, 2015 , $600 thousand of TDR modifications included an interest rate concession and $4.8 million of TDR modifications resulted from modifications to the loan’s structure. During the three months ended June 30, 2014 , $4.5 million of TDR modifications included an interest rate concession and $6.4 million of TDR modifications resulted from modifications to the loan’s structure. During the six months ended June 30, 2015 , $900 thousand of TDR modifications included an interest rate concession and $9.3 million of TDR modifications resulted from modifications to the loan’s structure. During the six months ended June 30, 2014 , $6.9 million of TDR modifications included an interest rate concession and $13.4 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. Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Number of Contracts Post-Modification Outstanding Recorded Investment Number of Contracts Post-Modification Outstanding Recorded Investment (Dollars in Thousands) Commercial, financial and agricultural 2 $ 236 2 $ 163 Real estate – construction — — — — Commercial real estate – mortgage 1 226 3 2,656 Residential real estate – mortgage 11 2,505 46 4,124 Equity lines of credit 28 1,351 48 2,178 Equity loans 6 778 23 1,330 Credit card — — — — Consumer direct 17 302 — — Consumer indirect — — 32 470 Covered loans 1 16 — — Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Number of Contracts Post-Modification Outstanding Recorded Investment Number of Contracts Post-Modification Outstanding Recorded Investment (Dollars in Thousands) Commercial, financial and agricultural 3 $ 311 2 $ 163 Real estate – construction — — — — Commercial real estate – mortgage 1 226 9 6,586 Residential real estate – mortgage 22 4,245 56 5,118 Equity lines of credit 59 3,264 97 4,480 Equity loans 20 1,496 41 3,317 Credit card — — — — Consumer direct 17 302 — — Consumer indirect 22 379 50 672 Covered loans 2 21 — — For the three and six months ended June 30, 2015 and 2014 , charge-offs and changes to the allowance related to modifications classified as TDRs were not material. The Company considers TDRs aged 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. Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Number of Contracts Recorded Investment at Default Number of Contracts Recorded Investment at Default (Dollars in Thousands) Commercial, financial and agricultural — $ — — $ — Real estate – construction 1 377 — — Commercial real estate – mortgage — — 1 2,198 Residential real estate – mortgage 1 96 — — Equity lines of credit — — — — Equity loans — — 3 319 Credit card — — — — Consumer direct — — — — Consumer indirect — — — — Covered loans 1 6 — — Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Number of Contracts Recorded Investment at Default Number of Contracts Recorded Investment at Default (Dollars in Thousands) Commercial, financial and agricultural — $ — — $ — Real estate – construction 1 377 — — Commercial real estate – mortgage 1 178 1 2,198 Residential real estate – mortgage 5 743 — — Equity lines of credit — — 3 275 Equity loans 2 161 4 382 Credit card — — — — Consumer direct — — — — Consumer indirect 1 18 — — Covered loans 1 6 — — 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 June 30, 2015 and December 31, 2014 , there were $927 thousand and $1.1 million , respectively, of commitments to lend additional funds to borrowers whose terms have been modified in a TDR. Foreclosure Proceedings Other real estate owned totaled $20 million and $21 million at June 30, 2015 and December 31, 2014 , respectively. Other real estate owned included $15 million and $11 million of foreclosed residential real estate properties at June 30, 2015 and December 31, 2014 , respectively. As of June 30, 2015 and December 31, 2014 , there were $33 million and $26 million , respectively, of residential real estate loans secured by residential real estate properties for which formal foreclosure proceedings were in process. |