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 March 31, 2018 and December 31, 2017 . Current, Accruing Past Due, and Non-accrual Loans March 31, 2018 (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 $ 5,613,811 $ 1,986 $ 323 $ 2,309 $ 2,930 $ 5,619,050 1-4 family properties 753,255 2,232 783 3,015 2,634 758,904 Land and development 449,700 3,450 49 3,499 4,574 457,773 Total commercial real estate 6,816,766 7,668 1,155 8,823 10,138 6,835,727 Commercial, financial and agricultural 7,093,270 15,872 783 16,655 81,606 7,191,531 Owner-occupied 4,901,542 3,841 936 4,777 4,067 4,910,386 Total commercial and industrial 11,994,812 19,713 1,719 21,432 85,673 12,101,917 Home equity lines 1,450,454 6,718 431 7,149 14,868 1,472,471 Consumer mortgages 2,651,758 3,905 — 3,905 7,708 2,663,371 Credit cards 223,232 1,599 1,882 3,481 — 226,713 Other consumer loans 1,595,745 9,131 229 9,360 1,694 1,606,799 Total consumer 5,921,189 21,353 2,542 23,895 24,270 5,969,354 Total loans $ 24,732,767 $ 48,734 $ 5,416 $ 54,150 $ 120,081 $ 24,906,998 (1 ) 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 (2 ) (1) Total before net deferred fees and costs of $24.0 million . (2) Total before net deferred fees and costs of $25.3 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 March 31, 2018 (in thousands) Pass Special Mention Substandard (1) Doubtful (2) Loss Total Investment properties $ 5,545,689 $ 53,193 $ 20,168 $ — $ — $ 5,619,050 1-4 family properties 729,023 14,331 15,550 — — 758,904 Land and development 408,128 33,858 12,654 3,133 — 457,773 Total commercial real estate 6,682,840 101,382 48,372 3,133 — 6,835,727 Commercial, financial and agricultural 6,895,133 132,582 154,863 8,953 — 7,191,531 Owner-occupied 4,778,913 55,627 75,773 73 — 4,910,386 Total commercial and industrial 11,674,046 188,209 230,636 9,026 — 12,101,917 Home equity lines 1,452,171 — 18,421 271 1,608 (3) 1,472,471 Consumer mortgages 2,654,285 — 8,951 103 32 (3) 2,663,371 Credit cards 224,831 — 564 — 1,318 (4) 226,713 Other consumer loans 1,604,979 — 1,556 257 7 (3) 1,606,799 Total consumer 5,936,266 — 29,492 631 2,965 5,969,354 Total loans $ 24,293,152 $ 289,591 $ 308,500 $ 12,790 $ 2,965 $ 24,906,998 (5 ) 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 (6 ) (1) Includes $204.2 million and $190.6 million of Substandard accruing loans at March 31, 2018 and December 31, 2017 , 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 $24.0 million . (6) Total before net deferred fees and costs of $25.3 million . The following table details the changes in the allowance for loan losses by loan segment for the three months ended March 31, 2018 . Allowance for Loan Losses and Recorded Investment in Loans As Of and For The Three Months Ended March 31, 2018 (in thousands) Commercial Real Estate Commercial & Industrial Consumer Total Allowance for loan losses: Beginning balance $ 74,998 $ 126,803 $ 47,467 $ 249,268 Charge-offs (1,911 ) (8,015 ) (4,455 ) (14,381 ) Recoveries 5,723 3,112 1,266 10,101 Provision for loan losses (4,819 ) 12,845 4,750 12,776 Ending balance (1) $ 73,991 $ 134,745 $ 49,028 $ 257,764 Ending balance: individually evaluated for impairment 3,740 14,405 797 18,942 Ending balance: collectively evaluated for impairment $ 70,251 $ 120,340 $ 48,231 $ 238,822 Loans: Ending balance: total loans (1)(2) $ 6,835,727 $ 12,101,917 $ 5,969,354 $ 24,906,998 Ending balance: individually evaluated for impairment 49,221 112,823 29,608 191,652 Ending balance: collectively evaluated for impairment $ 6,786,506 $ 11,989,094 $ 5,939,746 $ 24,715,346 As Of and For The Three Months Ended March 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 (1,908 ) (6,893 ) (3,934 ) (12,735 ) Recoveries 2,889 1,824 1,104 5,817 Provision for loan losses (4,483 ) 6,387 6,770 8,674 Ending balance (1) $ 78,314 $ 127,096 $ 48,104 $ 253,514 Ending balance: individually evaluated for impairment 6,917 11,085 1,705 19,707 Ending balance: collectively evaluated for impairment $ 71,397 $ 116,011 $ 46,399 $ 233,807 Loans: Ending balance: total loans (1)(3) $ 7,467,288 $ 11,732,701 $ 5,084,199 $ 24,284,188 Ending balance: individually evaluated for impairment 79,203 120,470 35,083 234,756 Ending balance: collectively evaluated for impairment $ 7,388,085 $ 11,612,231 $ 5,049,116 $ 24,049,432 (1 ) As of and for the three months ended March 31, 2018 and 2017 , 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 $24.0 million . (3) Total before net deferred fees and costs of $25.7 million . The tables below summarize impaired loans (including accruing TDRs) as of March 31, 2018 and December 31, 2017 . Impaired Loans (including accruing TDRs) March 31, 2018 Three Months Ended March 31, 2018 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Investment properties $ — $ — $ — $ — $ — 1-4 family properties — — — — — Land and development — — — 37 — Total commercial real estate — — — 37 — Commercial, financial and agricultural 9,614 12,039 — 8,682 — Owner-occupied — — — — — Total commercial and industrial 9,614 12,039 — 8,682 — Home equity lines 1,086 1,086 — 2,122 — Consumer mortgages 2,640 2,665 — 880 — Credit cards — — — — — Other consumer loans — — — — — Total consumer 3,726 3,751 — 3,002 — Total impaired loans with no related allowance recorded $ 13,340 $ 15,790 $ — $ 11,721 $ — With allowance recorded Investment properties $ 19,388 $ 19,388 $ 753 $ 22,769 $ 198 1-4 family properties 12,008 12,008 392 11,715 216 Land and development 17,825 19,565 2,595 18,133 76 Total commercial real estate 49,221 50,961 3,740 52,617 490 Commercial, financial and agricultural 65,422 65,691 12,491 67,198 273 Owner-occupied 37,787 37,841 1,914 37,715 357 Total commercial and industrial 103,209 103,532 14,405 104,913 630 Home equity lines 3,475 3,475 44 4,383 45 Consumer mortgages 17,378 17,378 447 19,106 194 Credit cards — — — — — Other consumer loans 5,029 5,031 306 5,391 71 Total consumer 25,882 25,884 797 28,880 310 Total impaired loans with allowance recorded $ 178,312 $ 180,377 $ 18,942 $ 186,410 $ 1,430 Total impaired loans Investment properties $ 19,388 $ 19,388 $ 753 $ 22,769 $ 198 1-4 family properties 12,008 12,008 392 11,715 216 Land and development 17,825 19,565 2,595 18,170 76 Total commercial real estate 49,221 50,961 3,740 52,654 490 Commercial, financial and agricultural 75,036 77,730 12,491 75,880 273 Owner-occupied 37,787 37,841 1,914 37,715 357 Total commercial and industrial 112,823 115,571 14,405 113,595 630 Home equity lines 4,561 4,561 44 6,505 45 Consumer mortgages 20,018 20,043 447 19,986 194 Credit cards — — — — — Other consumer loans 5,029 5,031 306 5,391 71 Total consumer 29,608 29,635 797 31,882 310 Total impaired loans $ 191,652 196,167 18,942 198,131 1,430 Impaired Loans (including accruing TDRs) December 31, 2017 Year Ended 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 impaired loans with no related allowance recorded $ 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 impaired loans with allowance recorded $ 189,264 189,498 14,908 190,695 6,961 Total impaired loans 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 The average recorded investment in impaired loans was $235.6 million for the three months ended March 31, 2017 . Excluding accruing TDRs, there was no interest income recognized for the investment in impaired loans for the three months ended March 31, 2017 . Interest income recognized for accruing TDRs was $1.7 million for the three months ended March 31, 2017 . At March 31, 2018 and December 31, 2017 , impaired loans of $62.2 million and $49.0 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 three months ended March 31, 2018 and 2017 that were reported as accruing or non-accruing TDRs. TDRs by Concession Type Three Months Ended March 31, 2018 (in thousands, except contract data) Number of Contracts Principal Forgiveness Below Market Interest Rate Term Extensions and/or Other Concessions Total Investment properties 1 $ — $ — $ 1,959 $ 1,959 1-4 family properties 6 — 963 — 963 Total commercial real estate 7 — 963 1,959 2,922 Commercial, financial and agricultural 9 — — 989 989 Owner-occupied 2 — 2,705 93 2,798 Total commercial and industrial 11 — 2,705 1,082 3,787 Consumer mortgages 7 — 1,733 — 1,733 Other consumer loans 14 — 537 508 1,045 Total consumer 21 — 2,270 508 2,778 Total TDRs 39 $ — $ 5,938 $ 3,549 $ 9,487 (1 ) (1) No net charge-offs were recorded during the three months ended March 31, 2018 upon restructuring of these loans. TDRs by Concession Type Three Months Ended March 31, 2017 (in thousands, except contract data) Number of Contracts Principal Forgiveness Below Market Interest Rate Term Extensions and/or Other Concessions Total 1-4 family properties 8 — 1,611 317 1,928 Total commercial real estate 8 — 1,611 317 1,928 Commercial, financial and agricultural 18 — 3,865 5,539 9,404 Total commercial and industrial 18 — 3,865 5,539 9,404 Other consumer loans 3 — — 275 275 Total consumer 3 — — 275 275 Total TDRs 29 $ — $ 5,476 $ 6,131 $ 11,607 (2 ) (2) No net charge-offs were recorded during the three months ended March 31, 2017 upon restructuring of these loans. For the three months ended March 31, 2018 and March 31, 2017 there were no defaults 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 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 March 31, 2018 , the allowance for loan losses allocated to accruing TDRs totaling $129.4 million was $6.1 million compared to accruing TDRs of $151.3 million with an allocated allowance for loan losses of $8.7 million at December 31, 2017 . 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 . |