Loans | Loans Major classifications of loans, including loans held for sale, are as follows: (Dollars in thousands) December 31, 2015 December 31, 2014 Non-owner occupied commercial real estate $ 866,392 $ 798,556 Other commercial construction and land 196,795 200,755 Multifamily commercial real estate 80,708 89,132 1-4 family residential construction and land 93,242 68,658 Total commercial real estate 1,237,137 1,157,101 Owner occupied commercial real estate 1,104,972 1,046,736 Commercial and industrial 1,309,704 1,073,791 Lease financing 1,256 2,005 Total commercial 2,415,932 2,122,532 1-4 family residential 1,017,791 925,698 Home equity loans 375,276 378,475 Other consumer loans 436,478 272,453 Total consumer 1,829,545 1,576,626 Other 150,102 143,960 Total loans $ 5,632,716 $ 5,000,219 Total loans include $10.6 million and $5.5 million of 1 -4 family residential loans held for sale and $17.1 million and $10.1 million of net deferred loan origination costs and fees as of December 31, 2015 and 2014 , respectively. As of December 31, 2015 , other loans include $42.8 million , $96.2 million and $1.3 million of farm land, state and political subdivision obligations and deposit customer overdrafts, respectively. As of December 31, 2014 , other loans include $41.3 million , $76.9 million and $1.7 million of farm land, state and political subdivision obligations and deposit customer overdrafts, respectively. Covered loans represent loans acquired from the FDIC subject to loss sharing agreements. Covered loans are further broken out into (i) loans acquired with evidence of credit impairment (“Purchased Credit Impaired" or "PCI Loans”) and (ii) non-PCI loans. Loans originated or purchased by the Company (“New Loans”) and loans acquired through the purchase of CBKN, GRNB, SCMF and TIBB, are not subject to the loss sharing agreements and are classified as “non covered.” Additionally, certain consumer loans acquired through the acquisition of First National Bank of the South, Metro Bank and Turnberry Bank (collectively, the “Failed Banks”) from the FDIC, are specifically excluded from the loss sharing agreements. Covered loans and OREO that were subject to the commercial shared-loss agreements which expired during the quarter ending September 30, 2015 were reclassified and are presented as non-covered. The commercial shared-loss agreements provided for FDIC loss sharing for five years and our reimbursement for recoveries to the FDIC for eight years from July 16, 2010. The single family shared-loss agreements provide for FDIC loss sharing and our reimbursement for recoveries to the FDIC for ten years from July 16, 2010. The Company designates loans as PCI by evaluating both qualitative and quantitative factors. At the time of acquisition, the Company accounted for the PCI loans by segregating each portfolio into loan pools with similar risk characteristics. Over the lives of the acquired PCI loans, the Company continues to estimate cash flows expected to be collected on each loan pool. The Company evaluates, at each balance sheet date, whether its estimates of the present value of the cash flows from the loan pools, determined using the effective interest rates, has decreased, such that the present value of such cash flows is less than the recorded investment of the pool, and if so, recognizes a provision for loan loss in its Consolidated Statement of Income, unless related to non-credit events. Additionally, if the Company has favorable changes in estimates of cash flows expected to be collected for a loan pool such that the then-present value exceeds the recorded investment of that pool, the Company will first reverse any previously established allowance for loan and lease losses for the pool. If such estimate exceeds the amount of any previously established allowance, the Company will accrete future interest income over the remaining life of the pool at a rate which, when used to discount the expected cash flows, results in the then-present value of such cash flows equaling the recorded investment of the pool at the time of the revised estimate. The table below presents a roll forward of accretable yield and income expected to be earned related to PCI loans and the amount of non-accretable difference at the end of the period. Nonaccretable difference represents estimated contractually required payments in excess of estimated cash flows expected to be collected. The accretable yield represents the excess of estimated cash flows expected to be collected over the carrying amount of the PCI loans. "Other" represents reductions of accretable yield due to non-credit events such as interest rate reductions on variable rate loans and prepayment activity. (Dollars in thousands) Years Ended December 31, 2015 December 31, 2014 December 31, 2013 Accretable Yield Balance at beginning of period $ 292,633 $ 383,775 $ 553,348 New PCI loans purchased — — — Accretion of income (96,330 ) (119,701 ) (161,867 ) Reclassification from nonaccretable difference 91,870 71,626 84,203 Other (79,329 ) (43,067 ) (91,909 ) Balance at end of period $ 208,844 $ 292,633 $ 383,775 Nonaccretable difference, balance at the end of the period $ 138,725 $ 204,033 $ 286,272 The accretable yield is accreted into interest income over the estimated life of the PCI loans using the level yield method. The accretable yield will change due to changes in: • The estimate of the remaining life of PCI loans which may change the amount of future interest income, and possibly principal, expected to be collected; • The estimate of the amount of contractually required principal and interest payments over the estimated life that will not be collected (the nonaccretable difference); and • Indices for PCI loans with variable rates of interest. For PCI loans, the impact of loan modifications is included in the evaluation of expected cash flows for subsequent decreases or increases of cash flows. For variable rate PCI loans, expected future cash flows will be recalculated as the rates adjust over the lives of the loans. At acquisition, the expected future cash flows were based on the rates that were in effect at that time. Because of the loss protection provided by the FDIC, the risks of covered loans and foreclosed real estate are significantly different from those assets not covered under loss share agreements. Refer to Note 10 – Other Real Estate Owned for the covered balances of other real estate owned. Non-covered Loans The following is a summary of the major categories of non-covered loans outstanding as of December 31, 2015 and December 31, 2014 : (Dollars in thousands) Non-PCI Loans December 31, 2015 New Acquired PCI Loans Total Non-owner occupied commercial real estate $ 517,559 $ 46,081 $ 302,752 $ 866,392 Other commercial construction and land 110,716 202 85,754 196,672 Multifamily commercial real estate 51,413 5,686 23,609 80,708 1-4 family residential construction and land 90,304 — 2,938 93,242 Total commercial real estate 769,992 51,969 415,053 1,237,014 Owner occupied commercial real estate 858,068 36,927 209,910 1,104,905 Commercial and industrial loans 1,222,320 6,255 81,129 1,309,704 Lease financing 1,256 — — 1,256 Total commercial 2,081,644 43,182 291,039 2,415,865 1-4 family residential 733,349 32,194 211,361 976,904 Home equity loans 148,855 126,547 67,449 342,851 Other consumer loans 429,346 3,911 3,221 436,478 Total consumer 1,311,550 162,652 282,031 1,756,233 Other 114,995 2,269 32,838 150,102 Total loans $ 4,278,181 $ 260,072 $ 1,020,961 $ 5,559,214 (Dollars in thousands) Non-PCI Loans December 31, 2014 New Acquired PCI Loans Total Non-covered Loans Non-owner occupied commercial real estate $ 372,793 $ 58,552 $ 333,433 $ 764,778 Other commercial construction and land 66,817 161 123,398 190,376 Multifamily commercial real estate 47,765 12,327 24,377 84,469 1-4 family residential construction and land 58,046 — 9,742 67,788 Total commercial real estate 545,421 71,040 490,950 1,107,411 Owner occupied commercial real estate 745,728 38,122 215,059 998,909 Commercial and industrial loans 958,628 10,564 97,228 1,066,420 Lease financing 2,005 — — 2,005 Total commercial 1,706,361 48,686 312,287 2,067,334 1-4 family residential 560,106 43,921 269,768 873,795 Home equity loans 103,644 152,797 82,121 338,562 Other consumer loans 261,935 4,647 5,772 272,354 Total consumer 925,685 201,365 357,661 1,484,711 Other 99,610 3,603 39,903 143,116 Total loans $ 3,277,077 $ 324,694 $ 1,200,801 $ 4,802,572 Covered Loans The following is a summary of the major categories of covered loans outstanding as of December 31, 2015 , and December 31, 2014 : (Dollars in thousands) Non-PCI Loans December 31, 2015 New Acquired PCI Loans Total Non-owner occupied commercial real estate $ — $ — $ — $ — Other commercial construction and land — — 123 123 Multifamily commercial real estate — — — — 1-4 family residential construction and land — — — — Total commercial real estate — — 123 123 Owner occupied commercial real estate — — 67 67 Commercial and industrial loans — — — — Lease financing — — — — Total commercial — — 67 67 1-4 family residential — 2,265 38,622 40,887 Home equity loans — 24,890 7,535 32,425 Other consumer loans — — — — Total consumer — 27,155 46,157 73,312 Other — — — — Total loans $ — $ 27,155 $ 46,347 $ 73,502 (Dollars in thousands) Non-PCI Loans December 31, 2014 New Acquired PCI Loans Total Covered Loans Non-owner occupied commercial real estate $ — $ — $ 33,778 $ 33,778 Other commercial construction and land — — 10,379 10,379 Multifamily commercial real estate — — 4,663 4,663 1-4 family residential construction and land — — 870 870 Total commercial real estate — — 49,690 49,690 Owner occupied commercial real estate — — 47,827 47,827 Commercial and industrial loans — 214 7,157 7,371 Lease financing — — — — Total commercial — 214 54,984 55,198 1-4 family residential — 1,512 50,391 51,903 Home equity loans — 30,473 9,440 39,913 Other consumer loans — — 99 99 Total consumer — 31,985 59,930 91,915 Other — — 844 844 Total loans $ — $ 32,199 $ 165,448 $ 197,647 The following tables present the aging of the recorded investment in past due loans, based on contractual terms, as of December 31, 2015 : (Dollars in thousands) 30-89 Days Past Due Greater than 90 Days Past Due Non-accrual Non-purchased credit impaired loans Non-Covered Covered Non-Covered Covered Non-Covered Covered Total Non-owner occupied commercial real estate $ — $ — $ — $ — $ 1,406 $ — $ 1,406 Other commercial construction and land 48 — — — 186 — 234 Multifamily commercial real estate — — — — 88 — 88 1-4 family residential construction and land — — — — — — — Total commercial real estate 48 — — — 1,680 — 1,728 Owner occupied commercial real estate 220 — — — 1,107 — 1,327 Commercial and industrial loans 185 — — — 923 — 1,108 Lease financing — — — — — — — Total commercial 405 — — — 2,030 — 2,435 1-4 family residential 233 — — — 1,183 37 1,453 Home equity loans 1,141 290 — — 1,741 901 4,073 Other consumer loans 3,816 — — — 1,373 — 5,189 Total consumer 5,190 290 — — 4,297 938 10,715 Other — — — — — — — Total loans $ 5,643 $ 290 $ — $ — $ 8,007 $ 938 $ 14,878 (Dollars in thousands) 30-89 Days Past Due Greater than 90 Days Past Due Non-accrual Purchased credit impaired loans* Non-Covered Covered Non-Covered Covered Non-Covered Covered Total Non-owner occupied commercial real estate $ — $ — $ 1,744 $ — $ — $ — $ 1,744 Other commercial construction and land 934 — 3,768 — — — 4,702 Multifamily commercial real estate — — — — — — — 1-4 family residential construction and land — — — — — — — Total commercial real estate 934 — 5,512 — — — 6,446 Owner occupied commercial real estate 1,341 — 3,458 — — — 4,799 Commercial and industrial loans 205 — 1,735 — — — 1,940 Lease financing — — — — — — — Total commercial 1,546 — 5,193 — — — 6,739 1-4 family residential 2,011 351 1,962 1,245 — — 5,569 Home equity loans 1,626 220 422 80 — — 2,348 Other consumer loans 54 — 50 — — — 104 Total consumer 3,691 571 2,434 1,325 — — 8,021 Other — — 41 — — — 41 Total loans $ 6,171 $ 571 $ 13,180 $ 1,325 $ — $ — $ 21,247 The following tables present the aging of the recorded investment in past due loans, based on contractual terms, as of December 31, 2014 : (Dollars in thousands) 30-89 Days Past Due Greater than 90 Days Past Due and Still Accruing/Accreting Non-accrual Non-purchased credit impaired loans Non-Covered Covered Non-Covered Covered Non-Covered Covered Total Non-owner occupied commercial real estate $ — $ — $ — $ — $ 534 $ — $ 534 Other commercial construction and land 31 — — — 233 — 264 Multifamily commercial real estate — — — — — — — 1-4 family residential construction and land — — — — — — — Total commercial real estate 31 — — — 767 — 798 Owner occupied commercial real estate 744 — — — 2,524 — 3,268 Commercial and industrial loans 70 — — — 1,654 66 1,790 Lease financing — — — — — — — Total commercial 814 — — — 4,178 66 5,058 1-4 family residential 357 — — — 1,284 69 1,710 Home equity loans 627 225 — — 1,758 443 3,053 Other consumer loans 2,508 — — — 909 — 3,417 Total consumer 3,492 225 — — 3,951 512 8,180 Other 30 — — — 10 — 40 Total loans $ 4,367 $ 225 $ — $ — $ 8,906 $ 578 $ 14,076 (Dollars in thousands) 30-89 Days Past Due Greater than 90 Days Past Due and Still Accruing/Accreting Non-accrual Purchased credit impaired loans* Non-Covered Covered Non-Covered Covered Non-Covered Covered Total Non-owner occupied commercial real estate $ 1,314 $ — $ 4,036 $ 1,636 $ — $ — $ 6,986 Other commercial construction and land 2,789 — 9,928 2,696 — — 15,413 Multifamily commercial real estate 249 — 1,392 — — — 1,641 1-4 family residential construction and land — — — — — — — Total commercial real estate 4,352 — 15,356 4,332 — — 24,040 Owner occupied commercial real estate 2,531 — 3,957 1,029 — — 7,517 Commercial and industrial loans 240 — 4,485 92 — — 4,817 Lease financing — — — — — — — Total commercial 2,771 — 8,442 1,121 — — 12,334 1-4 family residential 3,480 352 5,251 2,010 — — 11,093 Home equity loans 1,524 335 788 780 — — 3,427 Other consumer loans 152 — 26 27 — — 205 Total consumer 5,156 687 6,065 2,817 — — 14,725 Other 2,012 — — — — — 2,012 Total loans $ 14,291 $ 687 $ 29,863 $ 8,270 $ — $ — $ 53,111 *Pooled PCI loans are not classified as nonaccrual as they are considered to be accruing because their interest income relates to the accretable yield recognized under accounting for purchased credit-impaired loans and not to contractual interest payments. Credit Quality Indicators The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed at origination and upon identification of a material change for all loans, on an annual basis for commercial loans exceeding $0.5 million , and at least quarterly for commercial loans not rated Pass. The Company uses the following definitions for risk ratings: • Pass —These loans range from superior quality with minimal credit risk to loans requiring heightened management attention but that are still an acceptable risk and continue to perform as contracted. • Special Mention —Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. • Substandard —Loans classified as substandard are inadequately protected by the current net 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 debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. • Doubtful —Loans classified as doubtful have all the weaknesses inherent in those 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 and improbable. The following table summarizes loans, excluding PCI loans by internal rating at December 31, 2015 : Substandard (Dollars in thousands) Pass Special Mention Accruing/ Non-accrual Doubtful Total Non-owner occupied commercial real estate $ 561,080 $ 1,154 $ — $ 1,406 $ — $ 563,640 Other commercial construction and land 110,710 — 22 186 — 110,918 Multifamily commercial real estate 57,011 — — 88 — 57,099 1-4 family residential construction and land 89,152 — 1,152 — — 90,304 Total commercial real estate 817,953 1,154 1,174 1,680 — 821,961 Owner occupied commercial real estate 880,806 6,843 6,239 1,107 — 894,995 Commercial and industrial loans 1,210,303 13,610 3,739 923 — 1,228,575 Lease financing 1,256 — — — — 1,256 Total commercial 2,092,365 20,453 9,978 2,030 — 2,124,826 1-4 family residential 764,302 126 2,160 1,220 — 767,808 Home equity loans 295,726 55 1,869 2,642 — 300,292 Other consumer loans 431,884 — — 1,373 — 433,257 Total consumer 1,491,912 181 4,029 5,235 — 1,501,357 Other 117,264 — — — — 117,264 Total loans $ 4,519,494 $ 21,788 $ 15,181 $ 8,945 $ — $ 4,565,408 The following table summarizes loans, excluding PCI loans by internal rating at December 31, 2014 : Substandard (Dollars in thousands) Pass Special Mention Accruing/ Accreting Non-accrual Doubtful Total Non-owner occupied commercial real estate $ 429,126 $ 835 $ 850 $ 534 $ — $ 431,345 Other commercial construction and land 66,667 47 31 233 — 66,978 Multifamily commercial real estate 60,092 — — — — 60,092 1-4 family residential construction and land 56,551 — 1,495 — — 58,046 Total commercial real estate 612,436 882 2,376 767 — 616,461 Owner occupied commercial real estate 766,822 6,687 7,817 2,524 — 783,850 Commercial and industrial loans 963,273 2,235 2,178 1,720 — 969,406 Lease financing 2,005 — — — — 2,005 Total commercial 1,732,100 8,922 9,995 4,244 — 1,755,261 1-4 family residential 601,738 283 2,165 1,353 — 605,539 Home equity loans 282,597 59 2,057 2,201 — 286,914 Other consumer loans 265,673 — — 909 — 266,582 Total consumer 1,150,008 342 4,222 4,463 — 1,159,035 Other 102,730 473 — 10 — 103,213 Total loans $ 3,597,274 $ 10,619 $ 16,593 $ 9,484 $ — $ 3,633,970 |