Loans and Allowance for Loan Losses | Note 6 - Loans and Allowance for Loan Losses The following is a summary of current, accruing past due, and non-accrual loans by portfolio class as of September 30, 2017 and December 31, 2016 . Current, Accruing Past Due, and Non-accrual Loans September 30, 2017 (in thousands) Current Accruing 30-89 Days Past Due Accruing 90 Days or Greater Past Due Total Accruing Past Due Non-accrual Total Investment properties $ 5,919,393 3,454 186 3,640 2,063 5,925,096 1-4 family properties 784,520 6,588 796 7,384 2,712 794,616 Land and development 494,488 5,732 65 5,797 6,927 507,212 Total commercial real estate 7,198,401 15,774 1,047 16,821 11,702 7,226,924 Commercial, financial and agricultural 6,871,204 30,010 2,356 32,366 58,139 6,961,709 Owner-occupied 4,751,269 9,586 618 10,204 3,960 4,765,433 Total commercial and industrial 11,622,473 39,596 2,974 42,570 62,099 11,727,142 Home equity lines 1,505,556 7,535 160 7,695 15,638 1,528,889 Consumer mortgages 2,545,986 5,225 137 5,362 6,332 2,557,680 Credit cards 222,176 2,312 1,237 3,549 — 225,725 Other consumer loans 1,234,355 8,726 130 8,856 2,067 1,245,278 Total consumer 5,508,073 23,798 1,664 25,462 24,037 5,557,572 Total loans $ 24,328,947 79,168 5,685 84,853 97,838 24,511,638 (1 ) December 31, 2016 (in thousands) Current Accruing 30-89 Days Past Due Accruing 90 Days or Greater Past Due Total Accruing Past Due Non-accrual Total Investment properties $ 5,861,198 2,795 — 2,795 5,268 5,869,261 1-4 family properties 873,231 4,801 161 4,962 9,114 887,307 Land and development 598,624 1,441 — 1,441 16,233 616,298 Total commercial real estate 7,333,053 9,037 161 9,198 30,615 7,372,866 Commercial, financial and agricultural 6,839,699 9,542 720 10,262 59,074 6,909,035 Owner-occupied 4,601,356 17,913 244 18,157 16,503 4,636,016 Total commercial and industrial 11,441,055 27,455 964 28,419 75,577 11,545,051 Home equity lines 1,585,228 10,013 473 10,486 21,551 1,617,265 Consumer mortgages 2,265,966 7,876 81 7,957 22,681 2,296,604 Credit cards 229,177 1,819 1,417 3,236 — 232,413 Other consumer loans 809,419 5,771 39 5,810 2,954 818,183 Total consumer 4,889,790 25,479 2,010 27,489 47,186 4,964,465 Total loans $ 23,663,898 61,971 3,135 65,106 153,378 23,882,382 (2 ) (1) Total before net deferred fees and costs of $24.3 million . (2) Total before net deferred fees and costs of $26.0 million . The credit quality of the loan portfolio is reviewed and updated no less frequently than quarterly using the standard asset classification system utilized by the federal banking agencies. These classifications are divided into three groups – Not Criticized (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows: Pass - loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral. Special Mention - loans which have potential weaknesses that deserve management's close attention. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification. Substandard - loans which are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful - loans which have all the weaknesses inherent in loans classified as Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values. Loss - loans which are considered by management to be uncollectible and of such little value that their continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. In the following tables, consumer loans are generally assigned a risk grade similar to the classifications described above; however, upon reaching 90 days and 120 days past due, they are generally downgraded to Substandard and Loss, respectively, in accordance with the FFIEC Uniform Retail Credit Classification and Account Management Policy. Additionally, in accordance with the Interagency Supervisory Guidance on Allowance for Loan and Lease Losses Estimation Practices for Loans and Lines of Credit Secured by Junior Liens on 1-4 Family Residential Properties, the risk grade classifications of consumer loans (home equity lines and consumer mortgages) secured by junior liens on 1-4 family residential properties also consider available information on the payment status of any associated senior liens with other financial institutions. Loan Portfolio Credit Exposure by Risk Grade September 30, 2017 (in thousands) Pass Special Mention Substandard (1) Doubtful (2) Loss Total Investment properties $ 5,847,902 60,423 16,771 — — 5,925,096 1-4 family properties 756,665 20,286 17,438 227 — 794,616 Land and development 451,141 36,523 16,419 3,129 — 507,212 Total commercial real estate 7,055,708 117,232 50,628 3,356 — 7,226,924 Commercial, financial and agricultural 6,704,805 106,117 149,456 1,250 81 (3) 6,961,709 Owner-occupied 4,632,930 52,797 79,633 73 — 4,765,433 Total commercial and industrial 11,337,735 158,914 229,089 1,323 81 11,727,142 Home equity lines 1,505,724 — 20,771 355 2,039 (3) 1,528,889 Consumer mortgages 2,547,272 — 10,125 177 106 (3) 2,557,680 Credit cards 224,488 — 523 — 714 (4) 225,725 Other consumer loans 1,242,211 — 2,754 299 14 (3) 1,245,278 Total consumer 5,519,695 — 34,173 831 2,873 5,557,572 Total loans $ 23,913,138 276,146 313,890 5,510 2,954 24,511,638 (5 ) December 31, 2016 (in thousands) Pass Special Mention Substandard (1) Doubtful (2) Loss Total Investment properties $ 5,794,626 43,336 31,299 — — 5,869,261 1-4 family properties 826,311 33,928 26,790 278 — 887,307 Land and development 521,745 60,205 27,361 6,987 — 616,298 Total commercial real estate 7,142,682 137,469 85,450 7,265 — 7,372,866 Commercial, financial and agricultural 6,635,756 126,268 140,425 6,445 141 (3) 6,909,035 Owner-occupied 4,462,420 60,856 111,330 1,410 — 4,636,016 Total commercial and industrial 11,098,176 187,124 251,755 7,855 141 11,545,051 Home equity lines 1,589,199 — 22,774 2,892 2,400 (3) 1,617,265 Consumer mortgages 2,271,916 — 23,268 1,283 137 (3) 2,296,604 Credit cards 230,997 — 637 — 779 (4) 232,413 Other consumer loans 814,844 — 3,233 42 64 (3) 818,183 Total consumer 4,906,956 — 49,912 4,217 3,380 4,964,465 Total loans $ 23,147,814 324,593 387,117 19,337 3,521 23,882,382 (6 ) (1) Includes $224.5 million and $256.6 million of Substandard accruing loans at September 30, 2017 and December 31, 2016 , respectively. (2) The loans within this risk grade are on non-accrual status. Commercial loans generally have an allowance for loan losses in accordance with ASC 310, and retail loans generally have an allowance for loan losses equal to 50% of the loan amount. (3) The loans within this risk grade are on non-accrual status and have an allowance for loan losses equal to the full loan amount. (4) Represent amounts that were 120 days past due. These credits are downgraded to the Loss category with an allowance for loan losses equal to the full loan amount and are generally charged off upon reaching 181 days past due in accordance with the FFIEC Uniform Retail Credit Classification and Account Management Policy. (5) Total before net deferred fees and costs of $24.3 million . (6) Total before net deferred fees and costs of $26.0 million . The following table details the changes in the allowance for loan losses by loan segment for the nine and three months ended September 30, 2017 . Allowance for Loan Losses and Recorded Investment in Loans As Of and For The Nine Months Ended September 30, 2017 (in thousands) Commercial Real Estate Commercial & Industrial Retail Total Allowance for loan losses: Beginning balance $ 81,816 125,778 44,164 251,758 Charge-offs (11,336 ) (41,390 ) (24,023 ) (76,749 ) Recoveries 6,191 5,181 4,682 16,054 Provision for loan losses 1,289 36,934 20,397 58,620 Ending balance (1) $ 77,960 126,503 45,220 249,683 Ending balance: individually evaluated for impairment 4,108 7,360 783 12,251 Ending balance: collectively evaluated for impairment $ 73,852 119,143 44,437 237,432 Loans: Ending balance: total loans (1)(2) $ 7,226,924 11,727,142 5,557,572 24,511,638 Ending balance: individually evaluated for impairment 64,909 109,434 30,132 204,475 Ending balance: collectively evaluated for impairment $ 7,162,015 11,617,708 5,527,440 24,307,163 As Of and For The Nine Months Ended September 30, 2016 (in thousands) Commercial Real Estate Commercial & Industrial Retail Total Allowance for loan losses: Beginning balance $ 87,133 122,989 42,374 252,496 Charge-offs (13,361 ) (17,098 ) (10,611 ) (41,070 ) Recoveries 10,927 6,122 3,601 20,650 Provision for loan losses (3,597 ) 18,875 6,463 21,741 Ending balance (1) $ 81,102 130,888 41,827 253,817 Ending balance: individually evaluated for impairment 11,066 11,474 1,724 24,264 Ending balance: collectively evaluated for impairment $ 70,036 119,414 40,103 229,553 Loans: Ending balance: total loans (1)(3) $7,472,551 11,009,021 4,807,511 23,289,083 Ending balance: individually evaluated for impairment 102,837 118,442 37,820 259,099 Ending balance: collectively evaluated for impairment $ 7,369,714 10,890,579 4,769,691 23,029,984 (1) As of and for the nine months ended September 30, 2017 and 2016 , there were no purchased credit-impaired loans and no allowance for loan losses for purchased credit-impaired loans. (2) Total before net deferred fees and costs of $24.3 million . (3) Total before net deferred fees and costs of $26.2 million . Allowance for Loan Losses and Recorded Investment in Loans As Of and For The Three Months Ended September 30, 2017 (in thousands) Commercial Real Estate Commercial & Industrial Consumer Total Allowance for loan losses: Beginning balance $ 77,527 123,437 47,131 248,095 Charge-offs (8,129 ) (21,855 ) (14,367 ) (44,351 ) Recoveries 2,543 1,899 1,811 6,253 Provision for loan losses 6,019 23,022 10,645 39,686 Ending balance (1) $ 77,960 126,503 45,220 249,683 Ending balance: individually evaluated for impairment 4,108 7,360 783 12,251 Ending balance: collectively evaluated for impairment $ 73,852 119,143 44,437 237,432 Loans: Ending balance: total loans (1)(2) $ 7,226,924 11,727,142 5,557,572 24,511,638 Ending balance: individually evaluated for impairment 64,909 109,434 30,132 204,475 Ending balance: collectively evaluated for impairment $ 7,162,015 11,617,708 5,527,440 24,307,163 As Of and For The Three Months Ended September 30, 2016 (in thousands) Commercial Real Estate Commercial & Industrial Consumer Total Allowance for loan losses: Beginning balance $ 79,359 129,633 46,084 255,076 Charge-offs (4,084 ) (6,437 ) (3,463 ) (13,984 ) Recoveries 4,237 1,780 1,037 7,054 Provision for loan losses 1,590 5,912 (1,831 ) 5,671 Ending balance (1) $ 81,102 130,888 41,827 253,817 Ending balance: individually evaluated for impairment 11,066 11,474 1,724 24,264 Ending balance: collectively evaluated for impairment $ 70,036 119,414 40,103 229,553 Loans: Ending balance: total loans (1)(3) $ 7,472,551 11,009,021 4,807,511 23,289,083 Ending balance: individually evaluated for impairment 102,837 118,442 37,820 259,099 Ending balance: collectively evaluated for impairment $ 7,369,714 10,890,579 4,769,691 23,029,984 (1 ) As of and for the three months ended September 30, 2017 and 2016 , there were no purchased credit-impaired loans and no allowance for loan losses for purchased credit-impaired loans. (2) Total before net deferred fees and costs of $24.3 million . (3) Total before net deferred fees and costs of $26.2 million . The tables below summarize impaired loans (including accruing TDRs) as of September 30, 2017 and December 31, 2016 . Impaired Loans (including accruing TDRs) September 30, 2017 Nine Months Ended September 30, 2017 Three Months Ended September 30, 2017 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized With no related allowance recorded Investment properties $ — — — 164 — — — 1-4 family properties 253 2,582 — 374 — 253 — Land and development 1,488 3,172 — 2,084 — 1,911 — Total commercial real estate 1,741 5,754 — 2,622 — 2,164 — Commercial, financial and agricultural 20,696 22,122 — 23,094 — 25,583 — Owner-occupied 97 744 — 8,875 — 7,164 — Total commercial and industrial 20,793 22,866 — 31,969 — 32,747 — Home equity lines 1,072 1,072 — 1,063 — 1,069 — Consumer mortgages — — — 661 — 496 — Credit cards — — — — — — — Other consumer loans — — — — — — — Total consumer 1,072 1,072 — 1,724 — 1,565 — Total impaired loans with no related allowance recorded $ 23,606 29,692 — 36,315 — 36,476 — With allowance recorded Investment properties $ 28,651 28,651 1,116 29,325 903 28,826 306 1-4 family properties 15,741 15,741 452 16,552 664 15,665 278 Land and development 18,776 18,832 2,540 24,825 347 18,544 48 Total commercial real estate 63,168 63,224 4,108 70,702 1,914 63,035 632 Commercial, financial and agricultural 51,819 52,019 5,730 48,694 1,175 53,040 388 Owner-occupied 36,822 36,855 1,630 41,627 1,002 37,004 328 Total commercial and industrial 88,641 88,874 7,360 90,321 2,177 90,044 716 Home equity lines 5,995 5,995 119 7,807 265 6,534 82 Consumer mortgages 18,336 18,336 382 19,270 687 18,369 222 Credit cards — — — — — — — Other consumer loans 4,729 4,729 282 4,507 191 4,224 59 Total consumer 29,060 29,060 783 31,584 1,143 29,127 363 Total impaired loans with allowance recorded $ 180,869 181,158 12,251 192,607 5,234 182,206 1,711 Total impaired loans Investment properties $ 28,651 28,651 1,116 29,489 903 28,826 306 1-4 family properties 15,994 18,323 452 16,926 664 15,918 278 Land and development 20,264 22,004 2,540 26,909 347 20,455 48 Total commercial real estate 64,909 68,978 4,108 73,324 1,914 65,199 632 Commercial, financial and agricultural 72,515 74,141 5,730 71,788 1,175 78,623 388 Owner-occupied 36,919 37,599 1,630 50,502 1,002 44,168 328 Total commercial and industrial 109,434 111,740 7,360 122,290 2,177 122,791 716 Home equity lines 7,067 7,067 119 8,870 265 7,603 82 Consumer mortgages 18,336 18,336 382 19,931 687 18,865 222 Credit cards — — — — — — — Other consumer loans 4,729 4,729 282 4,507 191 4,224 59 Total consumer 30,132 30,132 783 33,308 1,143 30,692 363 Total impaired loans $ 204,475 210,850 12,251 228,922 5,234 218,682 1,711 Impaired Loans (including accruing TDRs) December 31, 2016 Year Ended December 31, 2016 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Investment properties $ 748 793 — 2,013 — 1-4 family properties 643 2,939 — 1,021 — Land and development 2,099 7,243 — 6,769 — Total commercial real estate 3,490 10,975 — 9,803 — Commercial, financial and agricultural 17,958 20,577 — 6,321 — Owner-occupied 5,508 7,377 — 8,394 — Total commercial and industrial 23,466 27,954 — 14,715 — Home equity lines 1,051 1,051 — 1,045 — Consumer mortgages 744 814 — 870 — Credit cards — — — — — Other consumer loans — — — — — Total consumer 1,795 1,865 — 1,915 — Total impaired loans with no related allowance recorded $ 28,751 40,794 — 26,433 — With allowance recorded Investment properties $ 31,489 31,489 2,044 42,659 1,436 1-4 family properties 23,642 23,649 769 39,864 855 Land and development 32,789 32,788 5,103 25,568 995 Total commercial real estate 87,920 87,926 7,916 108,091 3,286 Commercial, financial and agricultural 43,386 45,913 5,687 51,968 1,215 Owner-occupied 53,708 53,942 2,697 52,300 1,946 Total commercial and industrial 97,094 99,855 8,384 104,268 3,161 Home equity lines 9,638 9,638 971 9,668 432 Consumer mortgages 20,953 20,953 673 20,993 1,014 Credit cards — — — — — Other consumer loans 5,140 5,140 167 5,062 303 Total consumer 35,731 35,731 1,811 35,723 1,749 Total impaired loans with allowance recorded $ 220,745 223,512 18,111 248,082 8,196 Total impaired loans Investment properties $ 32,237 32,282 2,044 44,672 1,436 1-4 family properties 24,285 26,588 769 40,885 855 Land and development 34,888 40,031 5,103 32,337 995 Total commercial real estate 91,410 98,901 7,916 117,894 3,286 Commercial, financial and agricultural 61,344 66,490 5,687 58,289 1,215 Owner-occupied 59,216 61,319 2,697 60,694 1,946 Total commercial and industrial 120,560 127,809 8,384 118,983 3,161 Home equity lines 10,689 10,689 971 10,713 432 Consumer mortgages 21,697 21,767 673 21,863 1,014 Credit cards — — — — — Other consumer loans 5,140 5,140 167 5,062 303 Total consumer 37,526 37,596 1,811 37,638 1,749 Total impaired loans $ 249,496 264,306 18,111 274,515 8,196 The average recorded investment in impaired loans was $281.2 million and $263.0 million , respectively, for the nine and three months ended September 30, 2016 . Excluding accruing TDRs, there was no interest income recognized for the investment in impaired loans for the nine and three months ended September 30, 2016 . Interest income recognized for accruing TDRs was $6.1 million and $2.1 million , respectively, for the nine and three months ended September 30, 2016 . At September 30, 2017 and December 31, 2016 , impaired loans of $37.6 million and $53.7 million , respectively, were on non-accrual status. Concessions provided in a TDR are primarily in the form of providing a below market interest rate given the borrower's credit risk, a period of time generally less than one year with a reduction of required principal and/or interest payments (e.g., interest only for a period of time), or an extension of the maturity of the loan generally for less than one year. Insignificant periods of reduction of principal and/or interest payments, or one-time deferrals of 3 months or less, are generally not considered to be financial concessions. The following tables represent, by concession type, the post-modification balance for loans modified or renewed during the nine and three months ended September 30, 2017 and 2016 that were reported as accruing or non-accruing TDRs. TDRs by Concession Type Nine Months Ended September 30, 2017 (in thousands, except contract data) Number of Contracts Principal Forgiveness Below Market Interest Rate Term Extensions and/or Other Concessions Total Investment properties — $ — — — — 1-4 family properties 21 — 2,090 1,477 3,567 Land acquisition 4 — 157 895 1,052 Total commercial real estate 25 — 2,247 2,372 4,619 Commercial, financial and agricultural 50 — 8,703 12,145 20,848 Owner-occupied 4 — 35 1,705 1,740 Total commercial and industrial 54 — 8,738 13,850 22,588 Home equity lines — — — — — Consumer mortgages 8 — 248 1,190 1,438 Credit cards — — — — — Other retail loans 25 — 682 958 1,640 Total retail 33 — 930 2,148 3,078 Total TDRs 112 $ — 11,915 18,370 30,285 (1 ) Three Months Ended September 30, 2017 (in thousands, except contract data) Number of Contracts Principal Forgiveness Below Market Interest Rate Term Extensions and/or Other Concessions Total Investment properties — $ — — — — 1-4 family properties 5 — — 964 964 Land and development 3 — 157 760 917 Total commercial real estate 8 — 157 1,724 1,881 Commercial, financial and agricultural 22 — 2,943 5,866 8,809 Owner-occupied 3 — 35 1,683 1,718 Total commercial and industrial 25 — 2,978 7,549 10,527 Home equity lines — — — — — Consumer mortgages 7 — 248 1,181 1,429 Credit cards — — — — — Other consumer loans 17 — 682 388 1,070 Total consumer 24 — 930 1,569 2,499 Total TDRs 57 $ — 4,065 10,842 14,907 (1 ) (1) No net charge-offs were recorded during the nine and three months ended September 30, 2017 upon restructuring of these loans. TDRs by Concession Type Nine Months Ended September 30, 2016 (in thousands, except contract data) Number of Contracts Principal Forgiveness Below Market Interest Rate Term Extensions and/or Other Concessions Total Investment properties 4 $ — 1,826 3,518 5,344 1-4 family properties 23 — 3,703 1,211 4,914 Land acquisition 13 — — 1,766 1,766 Total commercial real estate 40 — 5,529 6,495 12,024 Commercial, financial and agricultural 50 — 13,948 5,232 19,180 Owner-occupied 7 — 5,458 550 6,008 Total commercial and industrial 57 — 19,406 5,782 25,188 Home equity lines 5 — 224 123 347 Consumer mortgages 6 — 354 51 405 Credit cards — — — — — Other retail loans 24 — 394 1,828 2,222 Total retail 35 — 972 2,002 2,974 Total TDRs 132 $ — 25,907 14,279 40,186 (2 ) Three Months Ended September 30, 2016 (in thousands, except contract data) Number of Contracts Principal Forgiveness Below Market Interest Rate Term Extensions and/or Other Concessions Total Investment properties 1 $ — — 3,370 3,370 1-4 family properties 4 — 213 47 260 Land and development 2 — — 497 497 Total commercial real estate 7 — 213 3,914 4,127 Commercial, financial and agricultural 5 — — 387 387 Owner-occupied 1 — 2,791 — 2,791 Total commercial and industrial 6 — 2,791 387 3,178 Home equity lines 2 — — 123 123 Consumer mortgages — — — — — Credit cards — — — — — Other consumer loans 7 — 70 294 364 Total consumer 9 — 70 417 487 Total TDRs 22 $ — 3,074 4,718 7,792 (2 ) (2) No net charge-offs were recorded during the nine and three months ended September 30, 2016 upon restructuring of these loans. For the nine and three months ended September 30, 2017 , there were four defaults with a recorded investment of $498 thousand and one default with a recorded investment of $206 thousand , respectively, on accruing TDRs restructured during the previous twelve months (defaults are defined as the earlier of the TDR being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments) compared to two defaults with a recorded investment of $181 thousand and one default with a recorded investment of $89 thousand , respectively, for the nine and three months ended September 30, 2016 . If, at the time a loan was designated as a TDR, the loan was not already impaired, the measurement of impairment that resulted from the TDR designation closely approximates the reserve derived through specific loan measurement of impairment in accordance with ASC 310-10-35. Generally, the change in the allowance for loan losses resulting from such TDR designation is not significant. At September 30, 2017 , the allowance for loan losses allocated to accruing TDRs totaling $166.9 million was $8.5 million compared to accruing TDRs of $195.8 million with an allocated allowance for loan losses of $9.8 million at December 31, 2016 . Non-accrual, non-homogeneous loans (commercial-type impaired loans greater than $1 million ) that are designated as TDRs are individually measured for the amount of impairment, if any, both before and after the TDR designation . |