Loans and Allowance for Loan Losses | Note 5 - 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, 2016 and December 31, 2015 . Current, Accruing Past Due, and Non-accrual Loans March 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 $ 5,954,011 9,484 — 9,484 23,749 5,987,244 1-4 family properties 1,113,140 3,860 234 4,094 17,358 1,134,592 Land acquisition 453,042 2,424 — 2,424 14,416 469,882 Total commercial real estate 7,520,193 15,768 234 16,002 55,523 7,591,718 Commercial, financial and agricultural 6,477,031 18,403 425 18,828 63,312 6,559,171 Owner-occupied 4,246,794 6,581 261 6,842 18,582 4,272,218 Total commercial and industrial 10,723,825 24,984 686 25,670 81,894 10,831,389 Home equity lines 1,647,483 5,321 170 5,491 16,432 1,669,406 Consumer mortgages 1,937,378 10,415 644 11,059 21,756 1,970,193 Credit cards 229,613 1,470 1,471 2,941 — 232,554 Other retail loans 487,023 2,680 9 2,689 2,562 492,274 Total retail 4,301,497 19,886 2,294 22,180 40,750 4,364,427 Total loans $ 22,545,515 60,638 3,214 63,852 178,167 22,787,534 (1 ) December 31, 2015 (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 $ 5,726,307 2,284 — 2,284 23,040 5,751,631 1-4 family properties 1,086,612 6,300 103 6,403 16,839 1,109,854 Land acquisition 495,542 639 32 671 17,768 513,981 Total commercial real estate 7,308,461 9,223 135 9,358 57,647 7,375,466 Commercial, financial and agricultural 6,410,338 12,222 785 13,007 49,137 6,472,482 Owner-occupied 4,293,308 5,254 95 5,349 20,293 4,318,950 Total commercial and industrial 10,703,646 17,476 880 18,356 69,430 10,791,432 Home equity lines 1,667,552 5,882 — 5,882 16,480 1,689,914 Consumer mortgages 1,907,644 8,657 134 8,791 22,248 1,938,683 Credit cards 237,742 1,663 1,446 3,109 — 240,851 Other retail loans 418,337 2,390 26 2,416 2,565 423,318 Total retail 4,231,275 18,592 1,606 20,198 41,293 4,292,766 Total loans $ 22,243,382 45,291 2,621 47,912 168,370 22,459,664 (2 ) (1) Total before net deferred fees and costs of $29.3 million . (2) Total before net deferred fees and costs of $30.1 million . 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 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, retail 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 retail 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 March 31, 2016 (in thousands) Pass Special Mention Substandard (1) Doubtful (2) Loss Total Investment properties $5,810,969 104,404 71,871 — — 5,987,244 1-4 family properties 1,011,558 56,557 59,284 7,193 — 1,134,592 Land acquisition 397,821 44,868 26,857 336 — 469,882 Total commercial real estate 7,220,348 205,829 158,012 7,529 — 7,591,718 Commercial, financial and agricultural 6,301,436 131,577 107,164 18,155 839 (3) 6,559,171 Owner-occupied 4,083,220 72,771 114,341 1,427 459 (3) 4,272,218 Total commercial and industrial 10,384,656 204,348 221,505 19,582 1,298 10,831,389 Home equity lines 1,645,741 — 20,906 1,109 1,650 (3) 1,669,406 Consumer mortgages 1,941,082 — 27,167 1,697 247 (3) 1,970,193 Credit cards 231,083 — 603 — 868 (4) 232,554 Other retail loans 487,912 — 4,278 — 84 (3) 492,274 Total retail 4,305,818 — 52,954 2,806 2,849 4,364,427 Total loans 21,910,822 410,177 432,471 29,917 4,147 22,787,534 (5 ) December 31, 2015 (in thousands) Pass Special Mention Substandard (1) Doubtful (2) Loss Total Investment properties $5,560,595 114,705 76,331 — — 5,751,631 1-4 family properties 976,601 64,325 61,726 7,202 — 1,109,854 Land acquisition 436,835 46,208 30,574 364 — 513,981 Total commercial real estate 6,974,031 225,238 168,631 7,566 — 7,375,466 Commercial, financial and agricultural 6,203,481 152,189 100,658 13,330 2,824 (3) 6,472,482 Owner-occupied 4,118,631 78,490 121,272 98 459 (3) 4,318,950 Total commercial and industrial 10,322,112 230,679 221,930 13,428 3,283 10,791,432 Home equity lines 1,666,586 — 20,456 1,206 1,666 (3) 1,689,914 Consumer mortgages 1,910,649 — 26,041 1,700 293 (3) 1,938,683 Credit cards 239,405 — 480 — 966 (4) 240,851 Other retail loans 418,929 — 4,315 — 74 (3) 423,318 Total retail 4,235,569 — 51,292 2,906 2,999 4,292,766 Total loans 21,531,712 455,917 441,853 23,900 6,282 22,459,664 (6 ) (1) Includes $288.4 million and $303.7 million of Substandard accruing loans at March 31, 2016 and December 31, 2015 , 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 $29.3 million . (6) Total before net deferred fees and costs of $30.1 million . The following table details the changes in the allowance for loan losses by loan segment for the three months ended March 31, 2016 and 2015 . Allowance for Loan Losses and Recorded Investment in Loans As Of and For The Three Months Ended March 31, 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 (1,822 ) (5,525 ) (3,968 ) (11,315 ) Recoveries 1,293 1,264 1,401 3,958 Provision for loan losses (2,047 ) 6,150 5,274 9,377 Ending balance (1) $ 84,557 124,878 45,081 254,516 Ending balance: individually evaluated for impairment 17,603 14,033 1,337 32,973 Ending balance: collectively evaluated for impairment $ 66,954 110,845 43,744 221,543 Loans: Ending balance: total loans (1)(2) $ 7,591,718 10,831,389 4,364,427 22,787,534 Ending balance: individually evaluated for impairment 136,826 123,557 37,402 297,785 Ending balance: collectively evaluated for impairment $ 7,454,892 10,707,832 4,327,025 22,489,749 As Of and For The Three Months Ended March 31, 2015 (in thousands) Commercial Real Estate Commercial & Industrial Retail Total Allowance for loan losses: Beginning balance $ 101,471 118,110 41,736 261,317 Charge-offs (7,440 ) (5,272 ) (7,912 ) (20,624 ) Recoveries 3,941 2,266 2,074 8,281 Provision for loan losses (3,764 ) 2,702 5,459 4,397 Ending balance (1) $ 94,208 $ 117,806 $ 41,357 $ 253,371 Ending balance: individually evaluated for impairment 18,558 9,411 1,037 29,006 Ending balance: collectively evaluated for impairment $ 75,650 108,395 40,320 224,365 Loans: Ending balance: total loans (1)(3) 6,898,159 10,316,689 3,920,733 21,135,581 Ending balance: individually evaluated for impairment 237,167 130,197 41,321 408,685 Ending balance: collectively evaluated for impairment $ 6,660,992 10,186,492 3,879,412 20,726,896 (1) As of and for the three months ended March 31, 2016 and 2015, 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 $29.3 million . (3) Total before net deferred fees and costs of $29.4 million . The tables below summarize impaired loans (including accruing TDRs) as of March 31, 2016 and December 31, 2015 . Impaired Loans (including accruing TDRs) March 31, 2016 Three Months Ended March 31, 2016 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Investment properties $ 8,557 11,192 — 9,359 — 1-4 family properties 1,504 5,525 — 1,505 — Land acquisition 3,991 10,554 — 6,005 — Total commercial real estate 14,052 27,271 — 16,869 — Commercial, financial and agricultural 6,185 8,585 — 5,715 — Owner-occupied 9,492 11,033 — 8,570 — Total commercial and industrial 15,677 19,618 — 14,285 — Home equity lines 1,044 1,044 — 1,035 — Consumer mortgages 814 2,065 — 814 — Credit cards — — — — — Other retail loans — — — — — Total retail 1,858 3,109 — 1,849 — Total impaired loans with no related allowance recorded $ 31,587 49,998 — 33,003 — With allowance recorded Investment properties $ 53,449 53,475 9,158 58,015 656 1-4 family properties 49,048 49,048 5,899 49,434 117 Land acquisition 20,277 23,094 2,546 23,088 128 Total commercial real estate 122,774 125,617 17,603 130,537 901 Commercial, financial and agricultural 58,312 61,865 12,399 49,547 189 Owner-occupied 49,568 49,760 1,634 49,404 444 Total commercial and industrial 107,880 111,625 14,033 98,951 633 Home equity lines 9,772 9,772 165 9,618 116 Consumer mortgages 21,224 21,224 1,029 21,821 262 Credit cards — — — — — Other retail loans 4,548 4,548 143 4,679 72 Total retail 35,544 35,544 1,337 36,118 450 Total impaired loans with allowance recorded $ 266,198 272,786 32,973 265,606 1,984 Total impaired loans Investment properties $ 62,006 64,667 9,158 67,374 656 1-4 family properties 50,552 54,573 5,899 50,939 117 Land acquisition 24,268 33,648 2,546 29,093 128 Total commercial real estate 136,826 152,888 17,603 147,406 901 Commercial, financial and agricultural 64,497 70,450 12,399 55,262 189 Owner-occupied 59,060 60,793 1,634 57,974 444 Total commercial and industrial 123,557 131,243 14,033 113,236 633 Home equity lines 10,816 10,816 165 10,653 116 Consumer mortgages 22,038 23,289 1,029 22,635 262 Credit cards — — — — — Other retail loans 4,548 4,548 143 4,679 72 Total retail 37,402 38,653 1,337 37,967 450 Total impaired loans $ 297,785 322,784 32,973 298,609 1,984 Impaired Loans (including accruing TDRs) December 31, 2015 Year Ended December 31, 2015 (in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded Investment properties $ 10,051 12,946 — 11,625 — 1-4 family properties 1,507 5,526 — 2,546 — Land acquisition 8,551 39,053 — 13,897 — Total commercial real estate 20,109 57,525 — 28,068 — Commercial, financial and agricultural 4,393 7,606 — 5,737 — Owner-occupied 8,762 11,210 — 14,657 — Total commercial and industrial 13,155 18,816 — 20,394 — Home equity lines 1,030 1,030 — 573 — Consumer mortgages 814 941 — 995 — Credit cards — — — — — Other retail loans — — — — — Total retail 1,844 1,971 — 1,568 — Total impaired loans with no related allowance recorded $ 35,108 78,312 — 50,030 — With allowance recorded Investment properties $ 62,305 62,305 10,070 73,211 2,131 1-4 family properties 51,376 51,376 6,184 61,690 1,618 Land acquisition 24,168 24,738 2,715 34,793 936 Total commercial real estate 137,849 138,419 18,969 169,694 4,685 Commercial, financial and agricultural 42,914 44,374 8,339 43,740 1,125 Owner-occupied 49,530 49,688 2,138 55,323 1,814 Total commercial and industrial 92,444 94,062 10,477 99,063 2,939 Home equity lines 9,575 9,575 206 8,318 346 Consumer mortgages 22,173 23,297 651 26,044 1,229 Credit cards — — — — — Other retail loans 4,651 4,651 132 5,105 323 Total retail 36,399 37,523 989 39,467 1,898 Total impaired loans with allowance recorded $ 266,692 270,004 30,435 308,224 9,522 Total impaired loans Investment properties $ 72,356 75,251 10,070 84,836 2,131 1-4 family properties 52,883 56,902 6,184 64,236 1,618 Land acquisition 32,719 63,791 2,715 48,690 936 Total commercial real estate 157,958 195,944 18,969 197,762 4,685 Commercial, financial and agricultural 47,307 51,980 8,339 49,477 1,125 Owner-occupied 58,292 60,898 2,138 69,980 1,814 Total commercial and industrial 105,599 112,878 10,477 119,457 2,939 Home equity lines 10,605 10,605 206 8,891 346 Consumer mortgages 22,987 24,238 651 27,039 1,229 Credit cards — — — — — Other retail loans 4,651 4,651 132 5,105 323 Total retail 38,243 39,494 989 41,035 1,898 Total impaired loans $ 301,800 348,316 30,435 358,254 9,522 The average recorded investment in impaired loans was $427.4 million for the three months ended March 31, 2015 . Excluding accruing TDRs, there was no interest income recognized for the investment in impaired loans for the three months ended March 31, 2015 . Interest income recognized for accruing TDRs was $2.6 million for the three months ended March 31, 2015 . At March 31, 2016 and December 31, 2015 , all impaired loans other than $209.2 million and $223.9 million , respectively, of accruing TDRs, 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 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, 2016 and 2015 that were reported as accruing or non-accruing TDRs. TDRs by Concession Type Three Months Ended March 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 2 $ — 437 148 585 1-4 family properties 7 — 395 840 1,235 Land acquisition 6 — — 535 535 Total commercial real estate 15 — 832 1,523 2,355 Commercial, financial and agricultural 30 — 12,014 3,387 15,401 Owner-occupied 4 — 1,535 448 1,983 Total commercial and industrial 34 — 13,549 3,835 17,384 Home equity lines 2 — 196 — 196 Consumer mortgages 3 — 154 — 154 Credit cards — — — — — Other retail loans 7 — 230 85 315 Total retail 12 — 580 85 665 Total TDRs 61 $ — 14,961 5,443 20,404 (1 ) (1) No net charge-offs were recorded during the three months ended March 31, 2016 upon restructuring of these loans. TDRs by Concession Type Three Months Ended March 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 3 $ — 16,932 3,604 20,536 1-4 family properties 13 14,823 2,856 150 17,829 Land acquisition 3 — 255 708 963 Total commercial real estate 19 14,823 20,043 4,462 39,328 Commercial, financial and agricultural 25 — 1,015 1,890 2,905 Owner-occupied 2 — 1,739 — 1,739 Total commercial and industrial 27 — 2,754 1,890 4,644 Home equity lines 11 — 975 135 1,110 Consumer mortgages 11 — 245 786 1,031 Credit cards — — — — — Other retail loans 6 — 257 64 321 Total retail 28 — 1,477 985 2,462 Total TDRs 74 $ 14,823 24,274 7,337 46,434 (2 ) (2) Net charge-offs of $4.0 million were recorded during the three months ended March 31, 2015 upon restructuring of these loans. For the three months ended March 31, 2016 , there were no defaults on accruing TDRs restructured during the previous twelve months (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 $115 thousand for the three months ended March 31, 2015 . 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 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 TDR designation is not significant. At March 31, 2016 , the allowance for loan losses allocated to accruing TDRs totaling $209.2 million was $12.2 million compared to accruing TDRs of $223.9 million with an allocated allowance for loan losses of $12.6 million at December 31, 2015 . 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. |