Loans And Allowance For Loan Losses | Note 5 - Loans and Allowance for Loan Losses Loans outstanding, by classification, at December 31, 2017 and 2016 are summarized below. December 31, (in thousands) 2017 2016 Investment properties $ 5,670,065 $ 5,869,261 1-4 family properties 781,619 888,553 Land and development 483,604 616,298 Total commercial real estate 6,935,288 7,374,112 Commercial, financial and agricultural 7,179,487 6,909,036 Owner-occupied 4,844,163 4,634,770 Total commercial and industrial 12,023,650 11,543,806 Home equity lines 1,514,227 1,617,265 Consumer mortgages 2,633,503 2,296,604 Credit cards 232,676 232,413 Other consumer loans 1,473,451 818,182 Total consumer 5,853,857 4,964,464 Total loans 24,812,795 23,882,382 Deferred fees and costs, net (25,331 ) (25,991 ) Total loans, net of deferred fees and costs $ 24,787,464 $ 23,856,391 A substantial portion of the loan portfolio is secured by real estate in markets located throughout Georgia, Alabama, South Carolina, Florida, and Tennessee. Accordingly, the ultimate collectability of a substantial portion of the loan portfolio is susceptible to changes in market conditions in these areas. The following is a summary of current, accruing past due, and non-accrual loans by class as of December 31, 2017 and 2016 . Current, Accruing Past Due, and Non-accrual Loans December 31, 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 $ 5,663,665 $ 2,506 $ 90 $ 2,596 $ 3,804 $ 5,670,065 1-4 family properties 775,023 3,545 202 3,747 2,849 781,619 Land and development 476,131 1,609 67 1,676 5,797 483,604 Total commercial real estate 6,914,819 7,660 359 8,019 12,450 6,935,288 Commercial, financial and agricultural 7,097,127 11,214 1,016 12,230 70,130 7,179,487 Owner-occupied 4,830,150 6,880 479 7,359 6,654 4,844,163 Total commercial and industrial 11,927,277 18,094 1,495 19,589 76,784 12,023,650 Home equity lines 1,490,808 5,629 335 5,964 17,455 1,514,227 Consumer mortgages 2,622,061 3,971 268 4,239 7,203 2,633,503 Credit cards 229,015 1,930 1,731 3,661 — 232,676 Other consumer loans 1,461,223 10,333 226 10,559 1,669 1,473,451 Total consumer 5,803,107 21,863 2,560 24,423 26,327 5,853,857 Total loans $ 24,645,203 $ 47,617 $ 4,414 $ 52,031 $ 115,561 $ 24,812,795 (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 874,477 4,801 161 4,962 9,114 888,553 Land and development 598,624 1,441 — 1,441 16,233 616,298 Total commercial real estate 7,334,299 9,037 161 9,198 30,615 7,374,112 Commercial, financial and agricultural 6,839,700 9,542 720 10,262 59,074 6,909,036 Owner-occupied 4,600,110 17,913 244 18,157 16,503 4,634,770 Total commercial and industrial 11,439,810 27,455 964 28,419 75,577 11,543,806 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 809,418 5,771 39 5,810 2,954 818,182 Total consumer 4,889,789 25,479 2,010 27,489 47,186 4,964,464 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 $25.3 million . (2) Total before net deferred fees and costs of $26.0 million . Interest income on non-accrual loans outstanding at December 31, 2017 and 2016 that would have been recorded if the loans had been current and performed in accordance with their original terms was $9.1 million and $8.9 million , respectively. Interest income recorded on these loans for the years ended December 31, 2017 and 2016 was $2.7 million and $3.5 million , respectively. The credit quality of the loan portfolio is summarized 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 Classified (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 the associated senior lien with other financial institutions. Loan Portfolio Credit Exposure by Risk Grade December 31, 2017 (in thousands) Pass Special Mention Substandard (1) Doubtful (2) Loss Total Investment properties $ 5,586,792 $ 64,628 $ 18,645 $ — $ — $ 5,670,065 1-4 family properties 745,299 19,419 16,901 — — 781,619 Land and development 431,759 33,766 14,950 3,129 — 483,604 Total commercial real estate 6,763,850 117,813 50,496 3,129 — 6,935,288 Commercial, financial and agricultural 6,929,506 115,912 132,818 1,251 — 7,179,487 Owner-occupied 4,713,877 50,140 80,073 73 — 4,844,163 Total commercial and industrial 11,643,383 166,052 212,891 1,324 — 12,023,650 Home equity lines 1,491,105 — 21,079 285 1,758 (3) 1,514,227 Consumer mortgages 2,622,499 — 10,607 291 106 (3) 2,633,503 Credit cards 230,945 — 399 — 1,332 (4) 232,676 Other consumer loans 1,470,944 — 2,168 329 10 (3) 1,473,451 Total consumer 5,815,493 — 34,253 905 3,206 5,853,857 Total loans $ 24,222,726 $ 283,865 $ 297,640 $ 5,358 $ 3,206 $ 24,812,795 (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 827,557 33,928 26,790 278 — 888,553 Land and development 521,745 60,205 27,361 6,987 — 616,298 Total commercial real estate 7,143,928 137,469 85,450 7,265 — 7,374,112 Commercial, financial and agricultural 6,635,757 126,268 140,425 6,445 141 (3) 6,909,036 Owner-occupied 4,461,174 60,856 111,330 1,410 — (3) 4,634,770 Total commercial and industrial 11,096,931 187,124 251,755 7,855 141 11,543,806 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 814,843 — 3,233 42 64 (3) 818,182 Total consumer 4,906,955 — 49,912 4,217 3,380 4,964,464 Total loans $ 23,147,814 $ 324,593 $ 387,117 $ 19,337 $ 3,521 $ 23,882,382 (6) (1) Includes $190.6 million and $256.6 million of Substandard accruing loans at December 31, 2017 and December 31, 2016 , respectively. (2) The loans within this risk grade are on non-accrual status and 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 $25.3 million . (6) Total before net deferred fees and costs of $26.0 million . The following table details the change in the allowance for loan losses by loan segment for the years ended December 31, 2017 , 2016 and 2015 . As Of and For The Year Ended December 31, 2017 (in thousands) Commercial Real Estate Commercial & Industrial Consumer Total Allowance for loan losses Beginning balance $ 81,816 $ 125,778 $ 44,164 $ 251,758 Charge-offs (12,193 ) (49,244 ) (28,982 ) (90,419 ) Recoveries 8,026 6,685 6,033 20,744 Provision for loan losses (2,651 ) 43,584 26,252 67,185 Ending balance (4) $ 74,998 $ 126,803 $ 47,467 $ 249,268 Ending balance: individually evaluated for impairment $ 4,240 $ 9,515 $ 1,153 $ 14,908 Ending balance: collectively evaluated for impairment $ 70,758 $ 117,288 $ 46,314 $ 234,360 Loans Ending balance: total loans (1) (4) $ 6,935,288 $ 12,023,650 $ 5,853,857 $ 24,812,795 Ending balance: individually evaluated for impairment $ 56,896 $ 111,334 $ 32,056 $ 200,286 Ending balance: collectively evaluated for impairment $ 6,878,392 $ 11,912,316 $ 5,821,801 $ 24,612,509 As Of and For The Year Ended December 31, 2016 (in thousands) Commercial Real Estate Commercial & Industrial Consumer Total Allowance for loan losses Beginning balance $ 87,133 $ 122,989 $ 42,374 $ 252,496 Charge-offs (18,216 ) (25,039 ) (14,705 ) (57,960 ) Recoveries 15,226 9,071 4,925 29,222 Provision for loan losses (2,327 ) 18,757 11,570 28,000 Ending balance (4) $ 81,816 $ 125,778 $ 44,164 $ 251,758 Ending balance: individually evaluated for impairment $ 7,916 $ 8,384 $ 1,811 $ 18,111 Ending balance: collectively evaluated for impairment $ 73,900 $ 117,394 $ 42,353 $ 233,647 Loans Ending balance: total loans (2) (4) $ 7,374,112 $ 11,543,806 $ 4,964,464 $ 23,882,382 Ending balance: individually evaluated for impairment $ 91,410 $ 120,560 $ 37,526 $ 249,496 Ending balance: collectively evaluated for impairment $ 7,282,702 $ 11,423,246 $ 4,926,938 $ 23,632,886 As Of and For The Year Ended December 31, 2015 (in thousands) Commercial Real Estate Commercial & Industrial Consumer Total Allowance for loan losses Beginning balance $ 101,471 $ 118,110 $ 41,736 $ 261,317 Allowance for loan losses of sold Memphis loans — — — — Charge-offs (13,998 ) (22,583 ) (20,758 ) (57,339 ) Recoveries 13,644 8,611 7,253 29,508 Provision for loan losses (13,984 ) 18,851 14,143 19,010 Ending balance (4) $ 87,133 $ 122,989 $ 42,374 $ 252,496 Ending balance: individually evaluated for impairment $ 18,969 $ 10,477 $ 989 $ 30,435 Ending balance: collectively evaluated for impairment $ 68,164 $ 112,512 $ 41,385 $ 222,061 Loans Ending balance: total loans (3) (4) $ 7,394,768 $ 10,772,130 $ 4,292,766 $ 22,459,664 Ending balance: individually evaluated for impairment $ 157,958 $ 105,599 $ 38,243 $ 301,800 Ending balance: collectively evaluated for impairment $ 7,236,810 $ 10,666,531 $ 4,254,523 $ 22,157,864 (1) Total before net deferred fees and costs of $25.3 million . (2) Total before net deferred fees and costs of $26.0 million . (3) Total before net deferred fees and costs of $30.1 million . (4) As of and for the years ended December 31, 2017, 2016, and 2015, there were no purchased credit-impaired loans and no allowance for loan losses for purchased credit-impaired loans. Below is a detailed summary of impaired loans (including accruing TDRs) by class as of and for the years ended December 31, 2017 and 2016 . Impaired Loans (including accruing TDRs) December 31, 2017 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Investment properties $ — $ — $ — $ 123 $ — 1-4 family properties — — — 323 — Land and development 56 1,740 — 1,816 — Total commercial real estate 56 1,740 — 2,262 — Commercial, financial and agricultural 8,220 9,576 — 21,686 — Owner-occupied — — — 6,665 — Total commercial and industrial 8,220 9,576 — 28,351 — Home equity lines 2,746 2,943 — 1,205 — Consumer mortgages — — — 496 — Credit cards — — — — — Other consumer loans — — — — — Total consumer 2,746 2,943 — 1,701 — Total 11,022 14,259 — 32,314 — With allowance recorded Investment properties 23,364 23,364 1,100 28,749 1,144 1-4 family properties 15,056 15,056 504 16,257 925 Land and development 18,420 18,476 2,636 23,338 404 Total commercial real estate 56,840 56,896 4,240 68,344 2,473 Commercial, financial and agricultural 65,715 65,851 7,406 50,468 1,610 Owner-occupied 37,399 37,441 2,109 40,498 1,382 Total commercial and industrial 103,114 103,292 9,515 90,966 2,992 Home equity lines 5,096 5,096 114 7,476 334 Consumer mortgages 18,668 18,668 569 19,144 896 Credit cards — — — — — Other consumer loans 5,546 5,546 470 4,765 266 Total consumer 29,310 29,310 1,153 31,385 1,496 Total 189,264 189,498 14,908 190,695 6,961 Total Investment properties 23,364 23,364 1,100 28,872 1,144 1-4 family properties 15,056 15,056 504 16,580 925 Land and development 18,476 20,216 2,636 25,154 404 Total commercial real estate 56,896 58,636 4,240 70,606 2,473 Commercial, financial and agricultural 73,935 75,427 7,406 72,154 1,610 Owner-occupied 37,399 37,441 2,109 47,163 1,382 Total commercial and industrial 111,334 112,868 9,515 119,317 2,992 Home equity lines 7,842 8,039 114 8,681 334 Consumer mortgages 18,668 18,668 569 19,640 896 Credit cards — — — — — Other consumer loans 5,546 5,546 470 4,765 266 Total consumer 32,056 32,253 1,153 33,086 1,496 Total impaired loans $ 200,286 $ 203,757 $ 14,908 $ 223,009 $ 6,961 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 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 220,745 223,512 18,111 248,082 8,196 Total 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 $358.3 million for the year ended December 31, 2015 . Excluding accruing TDRs, there was no interest income recognized for the investment in impaired loans for the years ended December 31, 2017 , 2016 , and 2015 . Interest income recognized for accruing TDRs was $9.5 million for the year ended December 31, 2015 . At December 31, 2017 , 2016 , and 2015 , impaired loans of $49.0 million , $53.7 million , and $77.9 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 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 three 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 years ended December 31, 2017 , 2016 , and 2015 that were reported as accruing or non-accruing TDRs. TDRs by Concession Type Year Ended December 31, 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 $ — $ — $ 121 $ 121 1-4 family properties 35 — 2,786 2,040 4,826 Land and development 6 — 157 1,614 1,771 Total commercial real estate 42 — 2,943 3,775 6,718 Commercial, financial and agricultural 56 — 9,434 12,145 21,579 Owner-occupied 4 — 35 1,705 1,740 Total commercial and industrial 60 — 9,469 13,850 23,319 Home equity lines — — — — — Consumer mortgages 11 — 2,539 1,190 3,729 Credit cards — — — — — Other consumer loans 38 — 1,624 1,333 2,957 Total consumer 49 — 4,163 2,523 6,686 Total loans 151 $ — $ 16,575 $ 20,148 $ 36,723 (1) (1) No charge-offs were recorded during 2017 upon restructuring of these loans. TDRs by Concession Type Year Ended December 31, 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 $ — $ 1,825 $ 3,518 $ 5,343 1-4 family properties 39 — 5,499 1,488 6,987 Land and development 14 — — 4,099 4,099 Total commercial real estate 57 — 7,324 9,105 16,429 Commercial, financial and agricultural 63 — 17,509 7,160 24,669 Owner-occupied 9 — 7,884 550 8,434 Total commercial and industrial 72 — 25,393 7,710 33,103 Home equity lines 5 — 225 123 348 Consumer mortgages 7 — 413 51 464 Credit cards — — — — — Other consumer loans 28 — 394 2,256 2,650 Total consumer 40 — 1,032 2,430 3,462 Total loans 169 $ — $ 33,749 $ 19,245 $ 52,994 (1) (1) No charge-offs were recorded during 2016 upon restructuring of these loans. TDRs by Concession Type Year Ended December 31, 2015 (in thousands, except contract data) Number of Contracts Principal Forgiveness Below Market Interest Rate Term Extensions and/or Other Concessions Total Investment properties 11 $ — $ 25,052 $ 6,973 $ 32,025 1-4 family properties 43 14,823 4,667 2,763 22,253 Land and development 12 — 614 1,532 2,146 Total commercial real estate 66 14,823 30,333 11,268 56,424 Commercial, financial and agricultural 91 29 3,191 6,477 9,697 Owner-occupied 10 — 3,417 2,064 5,481 Total commercial and industrial 101 29 6,608 8,541 15,178 Home equity lines 53 — 2,826 2,905 5,731 Consumer mortgages 15 — 1,011 895 1,906 Credit cards — — — — — Other consumer loans 27 — 444 703 1,147 Total consumer 95 — 4,281 4,503 8,784 Total loans 262 $ 14,852 $ 41,222 $ 24,312 $ 80,386 (1) (1) Charge-offs of $4.0 million were recorded during 2015 upon restructuring of these loans. For the years ended December 31, 2017, 2016 and 2015, there were eight defaults with a recorded investment of $4.0 million , two defaults with a recorded investment of $181 thousand , and seven defaults with a recorded investment of $12.5 million , 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). If at the time that a loan was designated as a TDR the loan was not already impaired, the measurement of impairment resulting from the TDR designation changes from a general pool-level reserve to a specific loan measurement of impairment in accordance with ASC 310-10-35. Generally, the change in the allowance for loan losses resulting from such a TDR is not significant. At December 31, 2017 , the allowance for loan losses allocated to accruing TDRs totaling $151.3 million was $8.7 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 loan relationships 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. |