International Bancshares (IBOC) 10-Q 7 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 03, 2018
Document and Entity Information
Entity Registrant Name	INTERNATIONAL BANCSHARES CORP
Entity Central Index Key	315,709
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		66,136,936
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Consolidated Statements of Cond

Consolidated Statements of Condition - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Assets
Cash and cash equivalents	$ 265,122,000	$ 265,357,000
Investment securities:
Held to maturity debt securities (Fair value of $2,400 on June 30, 2018 and $2,400 on December 31, 2017)	2,400,000	2,400,000
Available for sale debt securities (Amortized cost of $3,822,194 on June 30, 2018 and $4,196,263 on December 31, 2017)	3,720,566,000	4,124,185,000
Equity securities with readily determinable fair values	27,054,000	27,885,000
Total investment securities	3,750,020,000	4,154,470,000
Loans	6,439,420,000	6,348,172,000
Less allowance for probable loan losses	(62,853,000)	(67,687,000)
Net loans	6,376,567,000	6,280,485,000
Bank premises and equipment, net	511,337,000	514,454,000
Accrued interest receivable	35,762,000	34,456,000
Other investments	586,338,000	571,415,000
Goodwill	282,532,000	282,532,000
Other assets	181,317,000	81,529,000
Total assets	11,988,995,000	12,184,698,000
Deposits:
Demand - non-interest bearing	3,437,023,000	3,243,255,000
Savings and interest bearing demand	3,230,386,000	3,245,131,000
Time	2,002,219,000	2,056,506,000
Total deposits	8,669,628,000	8,544,892,000
Securities sold under repurchase agreements	306,755,000	353,805,000
Other borrowed funds	852,950,000	1,195,225,000
Junior subordinated deferrable interest debentures	160,416,000	160,416,000
Other liabilities	119,516,000	91,380,000
Total liabilities	10,109,265,000	10,345,718,000
Shareholders' equity:
Common shares of $1.00 par value. Authorized 275,000,000 shares; issued 96,065,679 shares on June 30, 2018 and 96,019,028 shares on December 31, 2017	96,066,000	96,019,000
Surplus	173,057,000	171,816,000
Retained earnings	1,982,464,000	1,891,805,000
Accumulated other comprehensive loss	(79,537,000)	(28,397,000)
Total shareholders' equity before treasury stock	2,172,050,000	2,131,243,000
Less cost of shares in treasury, 29,940,843 shares on June 30, 2018 and 29,939,545 on December 31, 2017	(292,320,000)	(292,263,000)
Total shareholders' equity	1,879,730,000	1,838,980,000
Total liabilities and shareholders' equity	$ 11,988,995,000	$ 12,184,698,000

Consolidated Statements of Con3

Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Consolidated Statements of Condition
Held to maturity, Fair value (in dollars)	$ 2,400	$ 2,400
Available for sale, Amortized cost (in dollars)	$ 3,822,194	$ 4,196,263
Common shares, par value (in dollars per share)	$ 1	$ 1
Common shares, Authorized shares	275,000,000	275,000,000
Common shares, issued shares	96,065,679	96,019,028
Treasury, shares	29,940,843	29,939,545

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest income:
Loans, including fees	$ 92,083	$ 79,466	$ 179,916	$ 154,867
Investment securities:
Taxable	20,694	20,989	41,908	39,995
Tax-exempt	2,087	2,457	4,282	4,948
Other interest income	202	262	367	345
Total interest income	115,066	103,174	226,473	200,155
Interest expense:
Savings deposits	3,291	1,353	5,519	2,642
Time deposits	3,010	2,401	5,679	4,777
Securities sold under repurchase agreements	348	1,146	1,371	4,214
Other borrowings	4,379	2,575	9,068	3,838
Junior subordinated deferrable interest debentures	1,765	1,322	3,291	2,572
Total interest expense	12,793	8,797	24,928	18,043
Net interest income	102,273	94,377	201,545	182,112
Provision for probable loan losses	(2,730)	805	(1,068)	2,505
Net interest income after provision for probable loan losses	105,003	93,572	202,613	179,607
Non-interest income:
Investment securities transactions, net		(2,539)		(1,612)
Other investments, net	5,841	2,830	10,567	7,098
Other income	5,727	2,901	9,782	5,795
Total non-interest income	42,303	33,963	81,278	71,678
Non-interest expense:
Employee compensation and benefits	34,692	32,739	69,310	65,469
Occupancy	7,163	6,417	13,238	12,408
Depreciation of bank premises and equipment	6,364	6,302	12,637	12,529
Professional fees	3,375	3,850	5,947	7,566
Deposit insurance assessments	974	913	1,974	1,303
Net expense, other real estate owned	2,649	482	2,378	1,396
Amortization of identified intangible assets				25
Advertising	1,808	2,116	3,647	4,384
Early termination fee - securities sold under repurchase agreements				5,765
Software and software maintenance	4,390	4,062	8,462	7,853
Other	19,186	16,832	31,917	30,641
Total non-interest expense	80,601	73,713	149,510	149,339
Income before income taxes	66,705	53,822	134,381	101,946
Provision for income taxes	13,818	13,253	28,074	29,373
Net income	$ 52,887	$ 40,569	$ 106,307	$ 72,573
Basic earnings per common share:
Weighted average number of shares outstanding (in shares)	66,114,497	66,053,741	66,103,499	66,024,135
Net income (in dollars per share)	$ 0.80	$ 0.61	$ 1.61	$ 1.10
Fully diluted earnings per common share:
Weighted average number of shares outstanding (in shares)	66,932,113	66,715,171	66,898,065	66,731,499
Net income (in dollars per share)	$ 0.79	$ 0.61	$ 1.59	$ 1.09
Services charges on deposit accounts
Non-interest income:
Service charges	$ 17,555	$ 17,882	$ 35,267	$ 35,788
Other service charges, commissions and fees, Banking
Non-interest income:
Service charges	11,152	11,025	22,274	21,410
Other service charges, commissions and fees, Non-banking
Non-interest income:
Service charges	$ 2,028	$ 1,864	$ 3,388	$ 3,199

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Consolidated Statements of Comprehensive Income
Net income	$ 52,887	$ 40,569	$ 106,307	$ 72,573
Other comprehensive income, net of tax:
Net unrealized holding (losses) gains on securities available for sale arising during period (net of tax effects of $(2,974), $2,894, $(13,594) and $10,092)	(11,187)	5,374	(51,140)	18,742
Reclassification adjustment for losses on securities available for sale included in net income (net of tax effects of $0, $889, $0 and $564)		1,650		1,048
Other comprehensive income, net of tax	(11,187)	7,024	(51,140)	19,790
Comprehensive income	$ 41,700	$ 47,593	$ 55,167	$ 92,363

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Consolidated Statements of Comprehensive Income
Net unrealized holding (losses) gains on securities available for sale arising during period, tax effects	$ (2,974)	$ 2,894	$ (13,594)	$ 10,092
Reclassification adjustment for (losses) gains on securities available for sale included in net income, tax effects	$ 0	$ 889	$ 0	$ 564

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities:
Net income	$ 106,307,000	$ 72,573,000
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for Loan and Lease Losses	(1,068,000)	2,505,000
Specific reserve, other real estate owned	2,658,000	317,000
Depreciation of bank premises and equipment	12,637,000	12,529,000
Gain on sale of bank premises and equipment	(147,000)	(16,000)
(Gain) loss on sale of other real estate owned	(688,000)	3,000
Accretion of investment securities discounts	(133,000)	(219,000)
Amortization of investment securities premiums	10,857,000	12,577,000
Investment securities transactions, net		1,612,000
Unrealized loss on equity securities with readily determinable fair values	1,021,000
Amortization of identified intangible assets		25,000
Stock based compensation expense	470,000	484,000
Earnings from affiliates and other investments	(7,683,000)	(5,590,000)
Deferred tax expense	363,000	212,000
(Increase) decrease in accrued interest receivable	(1,306,000)	591,000
(Increase) decrease in other assets	(42,795,000)	720,000
Net increase in other liabilities	21,724,000	5,691,000
Net cash provided by operating activities	102,217,000	104,014,000
Investing activities:
Proceeds from maturities of securities	1,075,000
Proceeds from sales and calls of available for sale securities	18,145,000	272,184,000
Purchases of available for sale securities	(47,346,000)	(542,112,000)
Principal collected on mortgage backed securities	363,406,000	372,717,000
Net increase in loans	(126,153,000)	(244,855,000)
Purchases of other investments	(27,457,000)	(4,540,000)
Distributions from other investments	8,702,000	5,467,000
Purchases of bank premises and equipment	(10,274,000)	(7,615,000)
Proceeds from sales of bank premises and equipment	2,191,000	8,207,000
Proceeds from sales of other real estate owned	901,000	682,000
Net cash provided by (used in) investing activities	183,190,000	(139,865,000)
Financing activities:
Net increase in non-interest bearing demand deposits	193,768,000	124,390,000
Net (decrease) increase in savings and interest bearing demand deposits	(14,745,000)	31,011,000
Net decrease in time deposits	(54,287,000)	(59,556,000)
Net decrease in securities sold under repurchase agreements	(47,050,000)	(144,574,000)
Net (decrease) increase in other borrowed funds	(342,275,000)	153,125,000
Purchase of treasury stock	(57,000)	(121,000)
Proceeds from stock transactions	818,000	1,092,000
Payments of cash dividends - common	(21,814,000)	(21,793,000)
Net cash (used in) provided by financing activities	(285,642,000)	83,574,000
(Decrease) increase in cash and cash equivalents	(235,000)	47,723,000
Cash and cash equivalents at beginning of period	265,357,000	269,198,000
Cash and cash equivalents at end of period	265,122,000	316,921,000
Supplemental cash flow information:
Interest paid	11,593,000	10,242,000
Income taxes paid	27,948,000	34,941,000
Non-cash investing and financing activities:
Purchases of available-for-sale securities not yet settled		30,612,000
Net transfers from loans to other real estate owned	$ 31,139,000	$ 1,450,000

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2018
Basis of Presentation
Basis of Presentation	Note 1 — Basis of Presentation The accounting and reporting policies of International Bancshares Corporation (the “Corporation”) and Subsidiaries (the Corporation and Subsidiaries collectively referred to herein as the “Company”) conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. The consolidated financial statements include the accounts of the Corporation and its wholly-owned subsidiaries, International Bank of Commerce, Laredo (“IBC”), Commerce Bank, International Bank of Commerce, Zapata, International Bank of Commerce, Brownsville, International Bank of Commerce, Oklahoma and the Corporation’s wholly-owned non-bank subsidiaries, IBC Subsidiary Corporation, IBC Trading Company, Premier Tierra Holdings, Inc., IBC Charitable and Community Development Corporation, and IBC Capital Corporation. All significant inter-company balances and transactions have been eliminated in consolidation. The consolidated financial statements are unaudited, but include all adjustments, which, in the opinion of management, are necessary for a fair presentation of the results of the periods presented. All such adjustments were of a normal and recurring nature. These financial statements should be read in conjunction with the financial statements and the notes thereto in the Company’s latest Annual Report on Form 10-K. The consolidated statement of condition at December 31, 2017 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“US GAAP”) for complete financial statements. Certain reclassifications have been made to make prior periods comparable. Operating results for the three and six months ended June 30, 2018 are not necessarily indicative of the results for the year ending December 31, 2018 or any future period. The Company operates as one segment. The operating information used by the Company’s chief executive officer for purposes of assessing performance and making operating decisions about the Company is the consolidated statements presented in this report. The Company has five active operating subsidiaries, the bank subsidiaries. The Company applies the provisions of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”), FASB ASC 280, “Segment Reporting,” in determining its reportable segments and related disclosures. The Company has evaluated all events or transactions that occurred through the date the Company issued these financial statements. During this period, the Company did not have any material recognizable or non-recognizable subsequent events. On January 1, 2018, the Company adopted the provisions of ASU 2016-01, “Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities,” and ASU 2018-03, “Technical Corrections and Improvements to Financial Instruments – Overall,” which affects current US GAAP as it relates to the accounting for equity investments, financial liability under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01 also supersedes the guidance that requires: (i) the classification of equity securities with readily determinable fair values into different categories, and (ii) recognition in changes in fair value of available-for-sale securities in other comprehensive income. The main effect resulting from the adoption of the new standards is that beginning on January 1, 2018, equity securities with readily determinable fair values are now reported in a single line item on the face of the Company’s consolidated statement of condition under the caption, “Equity securities with readily determinable fair values.” Additionally, the changes in fair value of the equity securities is now recognized in net income and is included in other non-interest expense on the face of the Company’s consolidated income statement. Prior to January 1, 2018, the equity securities were classified as available-for-sale and stated at fair value with unrealized gains and losses included in accumulated comprehensive income, net of tax and had a net unrealized loss of $189,000. Other equity securities without readily determinable fair values are recorded at cost less any impairment, if any, and included in other investments in the Company’s consolidated financial statements. On January 1, 2018, the Company adopted the provisions of ASU 2014-09 to ASC 606, “Revenue from Contracts with Customers.” ASC 606 sets a common standard that defines revenue and the principles for recognizing revenue. The core principle of the accounting standards update requires an entity to recognize revenue in a manner that reflects the consideration that an entity is expected to receive in exchange for goods or services as performance obligations are satisfied. The Company’s revenue is primarily comprised of net interest income on financial assets and financial liabilities, which is explicitly excluded from the scope of ASC 606. The Company has evaluated the impact of the accounting standards update on certain other non-interest revenue streams that the provisions of the update apply to and has determined that the adoption of the new provisions to ASC 606 did not have a significant impact to the Company’s consolidated financial statements or operations. The Company adopted the provisions of ASU 2018-02 to ASC 220, “Income Statement- Reporting Comprehensive Income” in the second quarter of 2018. ASU 2018-02 amends current guidance surrounding the reclassification of certain tax effects from accumulated other comprehensive income (loss) as a result of the 2017 Tax Cuts and Jobs Act and the related impact to comprehensive income (loss) as a result of the application of existing guidance with respect to changes in tax rates. Under prior guidance, entities were to evaluate the carrying value of deferred tax assets and liabilities and adjust them for the tax effect of the rate change and record that change through earnings. The result is that the tax effects for items that normally would only be recognized in comprehensive income would be recognized through earnings and would result in stranded tax effects in other comprehensive income (loss) for the impact of the rate change. ASU 2018-02 allows for a reclassification from accumulated other comprehensive income (loss) to retained earnings for the stranded tax effects resulting from the 2017 Tax Cuts and Jobs Act. The Company recorded a one-time reclassification of $5,979,000 between accumulated comprehensive income (loss) and retained earnings as a result of the adoption of the accounting standards update.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2018
Fair Value Measurements
Fair Value Measurements	Note 2 — Fair Value Measurements ASC Topic 820, “Fair Value Measurements and Disclosures” (“ASC 820”), defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. ASC 820 applies to all financial instruments that are being measured and reported on a fair value basis. ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date; it also establishes a fair value hierarchy that prioritizes the inputs used in valuation methodologies into the following three levels: · Level 1 Inputs - Unadjusted quoted prices in active markets for identical assets or liabilities. · Level 2 Inputs - Observable inputs other than Level 1 inputs, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. · Level 3 Inputs - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or other valuation techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy is set forth below. The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of June 30, 2018 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs June 30, 2018 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale debt securities Residential mortgage-backed securities $ 3,509,643 $ — $ 3,509,643 $ — States and political subdivisions 210,923 — 210,923 — Equity Securities 27,054 27,054 — — $ 3,747,620 $ 27,054 $ 3,720,566 $ — The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of December 31, 2017 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2017 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities Residential mortgage - backed securities $ 3,891,233 $ — $ 3,891,233 $ — States and political subdivisions 232,951 — 232,951 — Equity Securities 27,886 27,886 — — $ 4,152,070 $ 27,886 $ 4,124,184 $ — Available-for-sale debt securities are classified within Level 2 of the valuation hierarchy. Equity securities with readily determinable fair values are classified within Level 1. For debt investments classified as Level 2 in the fair value hierarchy, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis. The instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended June 30, 2018 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets for Other Significant Net Provision Year ended Identical Observable Unobservable (Credit) June 30, Assets Inputs Inputs During 2018 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ 8,738 $ — $ — $ 8,738 $ 574 Other real estate owned 6,854 — — 6,854 2,658 The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended December 31, 2017 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets Other Significant Net (Credit) Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2017 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ 11,210 $ — $ — $ 11,210 $ 2,138 Other real estate owned 2,000 — — 2,000 710 The Company’s assets measured at fair value on a non-recurring basis are limited to impaired loans and other real estate owned. Impaired loans are classified within Level 3 of the valuation hierarchy. The fair value of impaired loans is derived in accordance with FASB ASC 310, “Receivables”. Impaired loans are primarily comprised of collateral-dependent commercial loans. As the primary sources of loan repayments decline, the secondary repayment source, the collateral, takes on greater significance. Correctly evaluating the fair value becomes even more important. Re-measurement of the impaired loan to fair value is done through a specific valuation allowance included in the allowance for probable loan losses. The fair value of impaired loans is based on the fair value of the collateral, as determined through either an appraisal or evaluation process. The basis for the Company’s appraisal and appraisal review process is based on regulatory guidelines and strives to comply with all regulatory appraisal laws, regulations, and the Uniform Standards of Professional Appraisal Practice. All appraisals and evaluations are “as is” (the property’s highest and best use) valuations based on the current conditions of the property/project at that point in time. The determination of the fair value of the collateral is based on the net realizable value, which is the appraised value less any closing costs, when applicable. As of June 30, 2018, the Company had $25,827,000 of impaired commercial collateral dependent loans, of which $11,922,000 had an appraisal performed within the immediately preceding twelve months, and of which $0 had an evaluation performed within the immediately preceding twelve months. As of December 31, 2017, the Company had $53,267,000 of impaired commercial collateral dependent loans, of which $18,585,000 had an appraisal performed within the immediately preceding twelve months and of which $0 had an evaluation performed within the immediately preceding twelve months. The determination to either seek an appraisal or to perform an evaluation begins in weekly credit quality meetings, where the committee analyzes the existing collateral values of the impaired loans and where obsolete appraisals are identified. In order to determine whether the Company would obtain a new appraisal or perform an internal evaluation to determine the fair value of the collateral, the credit committee reviews the existing appraisal to determine if the collateral value is reasonable in view of the current use of the collateral and the economic environment related to the collateral. If the analysis of the existing appraisal does not find that the collateral value is reasonable under the current circumstances, the Company would obtain a new appraisal on the collateral or perform an internal evaluation of the collateral. The ultimate decision to get a new appraisal rests with the independent credit administration group. A new appraisal is not required if an internal evaluation, as performed by in-house experts, is able to appropriately update the original appraisal assumptions to reflect current market conditions and provide an estimate of the collateral’s market value for impairment analysis. The internal evaluations must be in writing and contain sufficient information detailing the analysis, assumptions and conclusions, and they must support performing an evaluation in lieu of ordering a new appraisal. Other real estate owned is comprised of real estate acquired by foreclosure and deeds in lieu of foreclosure. Other real estate owned is carried at the lower of the recorded investment in the property or its fair value less estimated costs to sell such property (as determined by independent appraisal) within Level 3 of the fair value hierarchy. Prior to foreclosure, the value of the underlying loan is written down to the fair value of the real estate to be acquired by a charge to the allowance for probable loan losses, if necessary. The fair value is reviewed periodically and subsequent write-downs are made, accordingly, through a charge to operations. Other real estate owned is included in other assets on the consolidated financial statements. For the three and six months ended June 30, 2018 and the twelve months ended December 31, 2017, the Company recorded $138,000, $162,000 and $30,000, respectively, in charges to the allowance for probable loan losses in connection with loans transferred to other real estate owned. For the three and six months ended June 30, 2018 and the twelve months ended December 31, 2017, the Company recorded $2,587,000, $2,658,000 and $710,000, respectively, in adjustments to fair value in connection with other real estate owned. The fair value estimates, methods, and assumptions for the Company’s financial instruments at June 30, 2018 and December 31, 2017 are outlined below. Cash and Cash Equivalents For these short-term instruments, the carrying amount is a reasonable estimate of fair value. Time Deposits with Banks The carrying amounts of time deposits with banks approximate fair value. Investment Securities Held-to-Maturity The carrying amounts of investments held-to-maturity approximate fair value. Investment Securities For investment securities, which include U.S. Treasury securities, obligations of other U.S. government agencies, obligations of states and political subdivisions and mortgage pass-through and related securities, fair values are from an independent pricing service. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. See disclosures of fair value of investment securities in Note 6. Loans Fair values are estimated for portfolios of loans with similar financial characteristics. Loans are segregated by type, such as commercial, real estate and consumer loans, as outlined by regulatory reporting guidelines. Each category is segmented into fixed and variable interest rate terms and by performing and non-performing categories. For variable rate performing loans, the carrying amount approximates the fair value. For fixed-rate performing loans, except residential mortgage loans, the fair value is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan. For performing residential mortgage loans, fair value is estimated by discounting contractual cash flows adjusted for prepayment estimates using discount rates based on secondary market sources or the primary origination market. Fixed-rate performing loans are within Level 3 of the fair value hierarchy. At June 30, 2018, and December 31, 2017, the carrying amount of fixed-rate performing loans was $1,537,587,000 and $1,505,531,000, respectively, and the estimated fair value was $1,499,578,000 and $1,454,434,000, respectively. Accrued Interest The carrying amounts of accrued interest approximate fair value. Deposits The fair value of deposits with no stated maturity, such as non-interest bearing demand deposit accounts, savings accounts and interest bearing demand deposit accounts, was equal to the amount payable on demand as of June 30, 2018 and December 31, 2017. The fair value of time deposits is based on the discounted value of contractual cash flows. The discount rate is based on currently offered rates. Time deposits are within Level 3 of the fair value hierarchy. At June 30, 2018 and December 31, 2017, the carrying amount of time deposits was $2,002,219,000 and $2,056,506,000, respectively, and the estimated fair value was $2,004,385,000 and $2,058,621,000, respectively. Securities Sold Under Repurchase Agreements Securities sold under repurchase agreements include short- and long-term maturities. Due to the contractual terms of the short-term instruments, the carrying amounts approximated fair value at June 30, 2018 and December 31, 2017. The fair value of the long-term instruments is based on established market spreads using option adjusted spread methodology. Long-term repurchase agreements are within Level 3 of the fair value hierarchy. The only remaining long-term repurchase agreement outstanding matured in the first quarter of 2018 and was not renewed. At December 31, 2017, the carrying amount of long-term repurchase agreements was $100,000,000 and the estimated fair value was $99,504,000. Junior Subordinated Deferrable Interest Debentures The Company currently has floating-rate junior subordinated deferrable interest debentures outstanding. Due to the contractual terms of the floating-rate junior subordinated deferrable interest debentures, the carrying amounts approximated fair value at June 30, 2018 and December 31, 2017. Other Borrowed Funds The Company currently has short- and long-term borrowings issued from the Federal Home Loan Bank (“FHLB”). Due to the contractual terms of the short-term borrowings, the carrying amounts approximated fair value at June 30, 2018 and December 31, 2017. The long-term borrowings outstanding at June 30, 2018 are fixed-rate borrowings and the fair value is based on established market spreads for similar types of borrowings. The fixed rate long-term borrowings are included in Level 2 of the fair value hierarchy. At June 30, 2018 and December 31, 2017, the carrying amount of the fixed rate long-term FHLB borrowings was $100,000,000 and $250,000,000, respectively, and the estimated fair value was $100,597,000 and $249,728,000, respectively. Commitments to Extend Credit and Letters of Credit Commitments to extend credit and fund letters of credit are principally at current interest rates, and, therefore, the carrying amount approximates fair value. Limitations Fair value estimates are made at a point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on- and off-statement of condition financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Other significant assets and liabilities that are not considered financial assets or liabilities include the bank premises and equipment and core deposit value. In addition, the tax ramifications related to the effect of fair value estimates have not been considered in the above estimates.

Loans

Loans	6 Months Ended
	Jun. 30, 2018
Loans
Loans	Note 3 — Loans A summary of loans, by loan type at June 30, 2018 and December 31, 2017 is as follows: June 30, December 31, 2018 2017 (Dollars in Thousands) Commercial, financial and agricultural $ 3,321,341 $ 3,322,668 Real estate - mortgage 1,136,921 1,133,525 Real estate - construction 1,781,953 1,683,550 Consumer 47,747 49,543 Foreign 151,458 158,886 Total loans $ 6,439,420 $ 6,348,172

Allowance for Probable Loan Los

Allowance for Probable Loan Losses	6 Months Ended
	Jun. 30, 2018
Allowance for Probable Loan Losses
Allowance for Probable Loan Losses	Note 4 — Allowance for Probable Loan Losses The allowance for probable loan losses primarily consists of the aggregate loan loss allowances of the bank subsidiaries. The allowances are established through charges to operations in the form of provisions for probable loan losses. Loan losses or recoveries are charged or credited directly to the allowances. The allowance for probable loan losses of each bank subsidiary is maintained at a level considered appropriate by management, based on estimated probable losses in the loan portfolio. The allowance for probable loan losses is derived from the following elements: (i) allowances established on specific impaired loans, which are based on a review of the individual characteristics of each loan, including the customer’s ability to repay the loan, the underlying collateral values, and the industry in which the customer operates; (ii) allowances based on actual historical loss experience for similar types of loans in the Company’s loan portfolio; and (iii) allowances based on general economic conditions, changes in the mix of loans, company resources, border risk and credit quality indicators, among other things. All segments of the loan portfolio continue to be impacted by economic uncertainty as the economy recovers from the recent prolonged downturn. The Company’s management continually reviews the allowance for loan losses of the bank subsidiaries using the amounts determined from the allowances established on specific impaired loans, the allowance established on quantitative historical loss percentages, and the allowance based on qualitative data to establish an appropriate amount to maintain in the Company’s allowance for loan losses. Should any of the factors considered by management in evaluating the adequacy of the allowance for probable loan losses change, the Company’s estimate of probable loan losses could also change, which could affect the level of future provisions for probable loan losses. While the calculation of the allowance for probable loan losses utilizes management’s best judgment and all information reasonably available, the adequacy of the allowance is dependent on a variety of factors beyond the Company’s control, including, among other things, the performance of the entire loan portfolio, the economy, changes in interest rates and the view of regulatory authorities towards loan classifications. The loan loss provision is determined using the following methods. On a weekly basis, loan past due reports are reviewed by the credit quality committee to determine if a loan has any potential problems and if a loan should be placed on the Company’s internal classified report. Additionally, the Company’s credit department reviews the majority of the Company’s loans for proper internal classification purposes, regardless of whether they are past due, and segregates any loans with potential problems for further review. The credit department will discuss the potential problem loans with the servicing loan officers to determine any relevant issues that were not discovered in the evaluation. Also, an analysis of loans that is provided through examinations by regulatory authorities is considered in the review process. After the above analysis is completed, the Company determines if a loan should be placed on an internal classified report because of issues related to the analysis of the credit, credit documents, collateral and/or payment history. A summary of the transactions in the allowance for probable loan losses by loan class is as follows: Three Months Ended June 30, 2018 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, $ 20,691 $ 11,798 $ 24,803 $ 947 $ 3,006 $ 4,689 $ 437 $ 783 $ 67,154 Losses charged to allowance (2,284) — (70) — (30) (9) (65) — (2,458) Recoveries credited to allowance 447 2 192 — 1 229 15 1 887 Net (losses) recoveries charged to allowance (1,837) 2 122 — (29) 220 (50) 1 (1,571) Provision charged to operations (2,258) 2,903 (6,629) 627 614 1,884 63 66 (2,730) Balance at June 30, $ 16,596 $ 14,703 $ 18,296 $ 1,574 $ 3,591 $ 6,793 $ 450 $ 850 $ 62,853 Three Months Ended June 30, 2017 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, $ 25,853 $ 13,789 $ 16,721 $ 818 $ 2,391 $ 3,186 $ 504 $ 924 $ 64,186 Losses charged to allowance (2,264) — (40) — (30) (33) (39) — (2,406) Recoveries credited to allowance 2,154 2 89 — 2 73 13 1 2,334 Net (losses) recoveries charged to allowance (110) 2 49 — (28) 40 (26) 1 (72) Provision charged to operations (603) (542) 702 179 (49) 1,131 10 (23) 805 Balance at June 30, $ 25,140 $ 13,249 $ 17,472 $ 997 $ 2,314 $ 4,357 $ 488 $ 902 $ 64,919 Six Months Ended June 30, 2018 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ 27,905 $ 11,675 $ 16,663 $ 1,109 $ 2,950 $ 6,103 $ 440 $ 842 $ 67,687 Losses charged to allowance (4,999) (1) (70) — (44) (39) (182) — (5,335) Recoveries credited to allowance 1,030 4 210 — 2 295 27 1 1,569 Net (losses) recoveries charged to allowance (3,969) 3 140 — (42) 256 (155) 1 (3,766) Provision charged to operations (7,340) 3,025 1,493 465 683 434 165 7 (1,068) Balance at June 30, $ 16,596 $ 14,703 $ 18,296 $ 1,574 $ 3,591 $ 6,793 $ 450 $ 850 $ 62,853 Six Months Ended June 30, 2017 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ 25,649 $ 13,889 $ 16,731 $ 806 $ 2,455 $ 3,716 $ 531 $ 884 $ 64,661 Losses charged to allowance (4,999) — (40) — (61) (138) (160) — (5,398) Recoveries credited to allowance 2,853 3 147 — 7 97 29 15 3,151 Net (losses) recoveries charged to allowance (2,146) 3 107 — (54) (41) (131) 15 (2,247) Provision charged to operations 1,637 (643) 634 191 (87) 682 88 3 2,505 Balance at June 30, $ 25,140 $ 13,249 $ 17,472 $ 997 $ 2,314 $ 4,357 $ 488 $ 902 $ 64,919 The allowance for probable loan losses is a reserve established through a provision for probable loan losses charged to expense, which represents management’s best estimate of probable loan losses when evaluating loans individually or collectively. The decreases in provision for probable loan losses charged to expense for the three and six months ended June 30, 2018 and June 30, 2017 can be attributed to a decrease in the historical loss experience in the commercial category of the calculation and a decrease in loans classified as Watch-List Substandard and Impaired. As discussed in prior periods, charge-offs increased from historical levels due to the deterioration of one relationship that is secured by multiple pieces of transportation equipment beginning in the fourth quarter of 2014. The Company uses a three year historical charge-off experience in the calculation, therefore, as those charge-offs are eliminated from the calculation, the allowance for probable loan losses is impacted. As fluctuations occur in historical loss factors, management evaluates the need to adjust the qualitative factors used in the calculation to properly reflect probable loan losses. The table below provides additional information on the balance of loans individually or collectively evaluated for impairment and their related allowance, by loan class as of June 30, 2018 and December 31, 2017: June 30, 2018 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 17,933 $ 460 $ 1,072,061 $ 16,136 Commercial real estate: other construction & land development 2,166 116 1,779,787 14,587 Commercial real estate: farmland & commercial 6,020 — 2,011,747 18,296 Commercial real estate: multifamily 664 — 212,916 1,574 Residential: first lien 6,387 — 420,951 3,591 Residential: junior lien 799 — 708,784 6,793 Consumer 1,141 — 46,606 450 Foreign 330 — 151,128 850 Total $ 35,440 $ 576 $ 6,403,980 $ 62,277 December 31, 2017 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 17,947 $ 300 $ 1,068,520 $ 27,605 Commercial real estate: other construction & land development 2,455 116 1,681,095 11,559 Commercial real estate: farmland & commercial 33,123 18 2,010,162 16,645 Commercial real estate: multifamily 476 — 192,440 1,109 Residential: first lien 6,852 — 425,925 2,950 Residential: junior lien 723 — 700,025 6,103 Consumer 1,281 — 48,262 440 Foreign 347 — 158,539 842 Total $ 63,204 $ 434 $ 6,284,968 $ 67,253 The table below provides additional information on loans accounted for on a non-accrual basis by loan class at June 30, 2018 and December 31, 2017: June 30, 2018 December 31, 2017 (Dollars in Thousands) Domestic Commercial $ 17,896 $ 17,909 Commercial real estate: other construction & land development 2,166 2,455 Commercial real estate: farmland & commercial 6,020 33,123 Commercial real estate: multifamily 664 476 Residential: first lien 485 712 Residential: junior lien — 11 Consumer 39 44 Total non-accrual loans $ 27,270 $ 54,730 The decrease in impaired and non-accrual loans at June 30, 2018 compared to December 31, 2017 can be attributed to a relationship secured by a waterpark foreclosed upon in the second quarter of 2018. The relationship was classified as Watch-List Impaired at December 31, 2017. Impaired loans are those loans where it is probable that all amounts due according to contractual terms of the loan agreement will not be collected. The Company has identified these loans through its normal loan review procedures. Impaired loans are measured based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company’s impaired loans are measured at the fair value of the collateral. In limited cases, the Company may use other methods to determine the level of impairment of a loan if such loan is not collateral dependent. The following tables detail key information regarding the Company’s impaired loans by loan class at June 30, 2018 and December 31, 2017: June 30, 2018 Quarter to Date Year to Date Unpaid Average Average Recorded Principal Related Recorded Interest Recorded Interest Investment Balance Allowance Investment Recognized Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 1,402 $ 1,992 $ 460 $ 1,604 $ — $ 1,661 $ — Commercial real estate: other construction & land development 142 169 116 143 — 144 — Total impaired loans with related allowance $ 1,544 $ 2,161 $ 576 $ 1,747 $ — $ 1,805 $ — June 30, 2018 Quarter to Date Year to Date Unpaid Average Average Recorded Principal Recorded Interest Recorded Interest Investment Balance Investment Recognized Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 16,531 $ 43,980 $ 16,594 $ 1 $ 16,738 $ 1 Commercial real estate: other construction & land development 2,024 2,230 2,148 — 2,216 — Commercial real estate: farmland & commercial 6,020 6,520 36,790 — 36,686 — Commercial real estate: multifamily 664 696 664 — 568 — Residential: first lien 6,387 6,508 6,426 76 6,864 152 Residential: junior lien 799 810 803 12 811 22 Consumer 1,141 1,144 1,145 1 1,179 2 Foreign 330 330 333 4 337 7 Total impaired loans with no related allowance $ 33,896 $ 62,218 $ 64,903 $ 94 $ 65,399 $ 184 December 31, 2017 Unpaid Average Recorded Principal Related Recorded Interest Investment Balance Allowance Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial real estate: other construction & land development $ 1,300 $ 1,577 $ 300 $ 1,346 $ — Commercial real estate: farmland & commercial 145 169 116 150 — Commercial real estate: multifamily 449 590 18 489 — Total impaired loans with related allowance $ 1,894 $ 2,336 $ 434 $ 1,985 $ — December 31, 2017 Unpaid Average Recorded Principal Recorded Interest Investment Balance Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 16,646 $ 44,095 $ 19,354 $ 3 Commercial real estate: other construction & land development 2,310 2,455 2,336 67 Commercial real estate: farmland & commercial 32,675 33,275 8,523 110 Commercial real estate: multifamily 476 505 401 — Residential: first lien 6,852 6,968 6,860 298 Residential: junior lien 723 736 1,011 52 Consumer 1,281 1,283 1,214 1 Foreign 347 347 751 16 Total impaired loans with no related allowance $ 61,310 $ 89,664 $ 40,450 $ 547 The following table details key information regarding the Company’s impaired loans by loan class at June 30, 2017: June 30, 2017 Quarter to Date Year to Date Average Average Recorded Interest Recorded Interest Investment Recognized Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 1,152 $ — $ 1,158 $ — Commercial real estate: other construction & land development 767 — 1,033 — Commercial real estate: farmland & commercial 1,314 — 1,567 — Total impaired loans with related allowance $ 3,233 $ — $ 3,758 $ — June 30, 2017 Quarter to Date Year to Date Average Average Recorded Interest Recorded Interest Investment Recognized Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 20,005 $ 1 $ 20,463 $ 1 Commercial real estate: other construction & land development 2,482 — 2,610 — Commercial real estate: farmland & commercial 8,532 30 8,774 58 Commercial real estate: multifamily 521 — 530 — Residential: first lien 6,774 81 6,874 159 Residential: junior lien 977 12 982 23 Consumer 1,156 — 1,212 1 Foreign 755 4 751 8 Total impaired loans with no related allowance $ 41,202 $ 128 $ 42,196 $ 250 A portion of the impaired loans have adequate collateral and credit enhancements not requiring a related allowance for loan loss. Management recognizes the risks associated with these impaired loans, however, management is confident the Company’s loss exposure regarding these credits will be significantly reduced due to the Company’s long-standing practices that encompass the following principles: (i) the financial strength of the borrower, including strong earnings, a high net worth, significant liquidity and an acceptable debt to worth ratio, (ii) managerial and business competence, (iii) the ability to repay, (iv) for a new business, projected cash flows, (v) loan to value, (vi) in the case of a secondary guarantor, a guarantor financial statement, and (viii) financial and/or other character references. Management’s decision to place loans in this category does not necessarily mean that the Company will experience significant losses from these loans or significant increases in impaired loans from these levels. The following table details loans accounted for as “troubled debt restructuring,” segregated by loan class. Loans accounted for as troubled debt restructuring are included in impaired loans. June 30, 2018 December 31, 2017 (Dollars in Thousands) Domestic Commercial $ 6,742 $ 6,910 Commercial real estate: farmland & commercial — — Residential: first lien 5,902 6,140 Residential: junior lien 799 712 Consumer 1,101 1,237 Foreign 330 347 Total troubled debt restructuring $ 14,874 $ 15,346 The bank subsidiaries charge-off that portion of any loan which management considers to represent a loss as well as that portion of any other loan which is classified as a “loss” by bank examiners. Commercial and industrial or real estate loans are generally considered by management to represent a loss, in whole or part, when an exposure beyond any collateral coverage is apparent and when no further collection of the loss portion is anticipated based on the borrower’s financial condition and general economic conditions in the borrower’s industry. Generally, unsecured consumer loans are charged-off when 90 days past due. While management of the Company believes that it is generally able to identify borrowers with financial problems reasonably early and to monitor credit extended to such borrowers carefully, there is no precise method of predicting loan losses. The determination that a loan is likely to be uncollectible and that it should be wholly or partially charged-off as a loss is an exercise of judgment. Similarly, the determination of the adequacy of the allowance for probable loan losses can be made only on a subjective basis. It is the judgment of the Company’s management that the allowance for probable loan losses at June 30, 2018 was adequate to absorb probable losses from loans in the portfolio at that date. The following tables present information regarding the aging of past due loans by loan class at June 30, 2018 and December 31, 2017: June 30, 2018 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 3,192 $ 833 $ 17,806 $ 618 $ 21,831 $ 1,068,163 $ 1,089,994 Commercial real estate: other construction & land development 639 124 3,452 2,638 4,215 1,777,738 1,781,953 Commercial real estate: farmland & commercial 2,069 3,336 3,394 532 8,799 2,008,968 2,017,767 Commercial real estate: multifamily 191 — 664 — 855 212,725 213,580 Residential: first lien 3,343 699 4,298 4,053 8,340 418,998 427,338 Residential: junior lien 1,230 284 994 994 2,508 707,075 709,583 Consumer 532 51 55 36 638 47,109 47,747 Foreign 2,355 1,322 14 14 3,691 147,767 151,458 Total past due loans $ 13,551 $ 6,649 $ 30,677 $ 8,885 $ 50,877 $ 6,388,543 $ 6,439,420 December 31, 2017 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 3,790 $ 398 $ 18,308 $ 537 $ 22,496 $ 1,063,971 $ 1,086,467 Commercial real estate: other construction & land development 354 308 820 6 1,482 1,682,068 1,683,550 Commercial real estate: farmland & commercial 3,925 518 31,133 954 35,576 2,007,709 2,043,285 Commercial real estate: multifamily 84 — 476 — 560 192,356 192,916 Residential: first lien 4,295 2,458 4,095 3,861 10,848 421,929 432,777 Residential: junior lien 1,310 580 1,110 1,099 3,000 697,748 700,748 Consumer 868 98 160 133 1,126 48,417 49,543 Foreign 1,229 69 667 667 1,965 156,921 158,886 Total past due loans $ 15,855 $ 4,429 $ 56,769 $ 7,257 $ 77,053 $ 6,271,119 $ 6,348,172 The decrease in the 90 days or greater Commercial real estate: farmland and commercial category can be attributed to the removal of a loan relationship primarily secured by a water park due to the foreclosure of the collateral in the second quarter of 2018. The Company’s internal classified report is segregated into the following categories: (i) “Special Review Credits,” (ii) “Watch List-Pass Credits,” and (iii) “Watch List-Substandard Credits.” The loans placed in the “Special Review Credits” category reflect management’s opinion that the loans reflect potential weakness which requires monitoring on a more frequent basis. The “Special Review Credits” are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the “Watch List-Pass Credits” category reflect the Company’s opinion that the credit contains weaknesses which represent a greater degree of risk, which warrant “extra attention.” The “Watch List-Pass Credits” are reviewed and discussed on a regular basis with the credit department and the lending staff to determine if a change in category is warranted. The loans placed in the “Watch List-Substandard Credits” classification are considered to be potentially inadequately protected by the current sound worth and debt service capacity of the borrower or of any pledged collateral. These credit obligations, even if apparently protected by collateral value, have shown defined weaknesses related to adverse financial, managerial, economic, market or political conditions which may jeopardize repayment of principal and interest. Furthermore, there is the possibility that some future loss could be sustained by the Company if such weaknesses are not corrected. For loans that are classified as impaired, management evaluates these credits in accordance with the provisions of ASC 310-10, “Receivables,” and, if deemed necessary, a specific reserve is allocated to the credit. The specific reserve allocated under ASC 310-10 is based on (i) the present value of expected future cash flows discounted at the loan’s effective interest rate; (ii) the loan’s observable market price; or (iii) the fair value of the collateral if the loan is collateral dependent. Substantially all of the Company’s loans evaluated as impaired under ASC 310-10 are measured using the fair value of collateral method. In limited cases, the Company may use other methods to determine the specific reserve of a loan under ASC 310-10 if such loan is not collateral dependent. The allowance based on historical loss experience on the Company’s remaining loan portfolio, which includes the “Special Review Credits,” “Watch List - Pass Credits,” and “Watch List - Substandard Credits” is determined by segregating the remaining loan portfolio into certain categories such as commercial loans, installment loans, international loans, loan concentrations and overdrafts. Installment loans are then further segregated by number of days past due. A historical loss percentage, adjusted for (i) management’s evaluation of changes in lending policies and procedures, (ii) current economic conditions in the market area served by the Company, (iii) other risk factors, (iv) the effectiveness of the internal loan review function, (v) changes in loan portfolios, and (vi) the composition and concentration of credit volume is applied to each category. Each category is then added together to determine the allowance allocated under ASC 450-20. A summary of the loan portfolio by credit quality indicator by loan class at June 30, 2018 and December 31, 2017 is as follows: June 30, 2018 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ 951,055 $ 256 $ 1,034 $ 119,716 $ 17,933 Commercial real estate: other construction & land development 1,715,667 1,115 7,169 55,836 2,166 Commercial real estate: farmland & commercial 1,817,420 57,123 39,372 97,832 6,020 Commercial real estate: multifamily 211,972 — — 944 664 Residential: first lien 420,198 — 129 624 6,387 Residential: junior lien 707,903 — 881 — 799 Consumer 46,606 — — — 1,141 Foreign 151,128 — — — 330 Total $ 6,021,949 $ 58,494 $ 48,585 $ 274,952 $ 35,440 December 31, 2017 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ 905,707 $ — $ 3,170 $ 159,643 $ 17,947 Commercial real estate: other construction & land development 1,616,604 1,288 672 62,531 2,455 Commercial real estate: farmland & commercial 1,863,763 5,134 41,820 99,445 33,123 Commercial real estate: multifamily 192,440 — — — 476 Residential: first lien 425,811 40 — 74 6,852 Residential: junior lien 699,875 150 — — 723 Consumer 48,262 — — — 1,281 Foreign 158,539 — — — 347 Total $ 5,911,001 $ 6,612 $ 45,662 $ 321,693 $ 63,204 The increase in Special Review credits at June 30, 2018 compared to December 31, 2017 can be attributed to the reclassification of one relationship secured by real estate used for day care facilities from Pass. The decrease in Watch List-Substandard credits at June 30, 2018 compared to December 31, 2017 can be primarily attributed to the payoff of a loan relationship secured by barges used in the transportation of petroleum products. The decrease in Watch List-Impaired at June 30, 2018 compared to December 31, 2017 can be attributed to the foreclosure of a loan relationship primarily secured by a water park.

Stock Options

Stock Options	6 Months Ended
	Jun. 30, 2018
Stock Options
Stock Options	Note 5 — Stock Options On April 5, 2012, the Board of Directors adopted the 2012 International Bancshares Corporation Stock Option Plan (the “2012 Plan”). There are 800,000 shares of common stock available for stock option grants under the 2012 Plan, which may be qualified incentive stock options (“ISOs”) or non-qualified stock options. Options granted may be exercisable for a period of up to 10 years from the date of grant, excluding ISOs granted to 10% shareholders, which may be exercisable for a period of up to only five years. As of June 30, 2018, 2,500 shares were available for future grants under the 2012 Plan. A summary of option activity under the stock option plan for the six months ended June 30, 2018 is as follows: Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2017 668,166 $ Plus: Options granted 229,700 38.30 Less: Options exercised 46,351 Options expired — — Options forfeited 15,800 Options outstanding at June 30, 2018 835,715 $ 14,436 Options fully vested and exercisable at June 30, 2018 327,341 $ $ 7,582 Stock-based compensation expense included in the consolidated statements of income for the three and six months ended June 30, 2018 was $285,000 and $470,000, respectively. Stock-based compensation expense included in the consolidated statements of income for the three and six months ended June 30, 2017 was approximately $216,000 and $484,000, respectively. As of June 30, 2018, there was approximately $3,316,000 of total unrecognized stock-based compensation cost related to non-vested options granted under the Company plans that will be recognized over a weighted average period of 1.9 years.

Investment Securities and Equit

Investment Securities and Equity Securities with Readily Determinable Fair Values	6 Months Ended
	Jun. 30, 2018
Investment Securities and Equity Securities with Readily Determinable Fair Values
Investment Securities and Equity Securities with Readily Determinable Fair Values	Note 6 — Investment Securities and Equity Securities with Readily Determinable Fair Values The Company classifies debt securities into one of three categories: held-to maturity, available-for-sale, or trading. Such debt securities are reassessed for appropriate classification at each reporting date. Securities classified as “held-to-maturity” are carried at amortized cost for financial statement reporting, while securities classified as “available-for-sale” and “trading” are carried at their fair value. Unrealized holding gains and losses are included in net income for those securities classified as “trading,” while unrealized holding gains and losses related to those securities classified as “available-for-sale” are excluded from net income and reported net of tax as other comprehensive income (loss) and accumulated other comprehensive income (loss) until realized, or in the case of losses, when deemed other than temporary. In accordance with the provisions of ASU 2016-01, which the Company adopted on January 1, 2018, unrealized holding gains and losses related to equity securities with readily determinable fair values are included in net income. The amortized cost and estimated fair value by type of investment security at June 30, 2018 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Total investment securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Available for Sale Debt Securities Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 3,615,831 $ 9,299 $ (115,487) $ 3,509,643 $ 3,509,643 Obligations of states and political subdivisions 206,363 4,705 (145) 210,923 210,923 Total investment securities $ 3,822,194 $ 14,004 $ (115,632) $ 3,720,566 $ 3,720,566 (1) Included in the carrying value of residential mortgage-backed securities are $571,385 of mortgage-backed securities issued by Ginnie Mae and $2,938,258 of mortgage-backed securities issued by Fannie Mae and Freddie Mac. The amortized cost and estimated fair value by type of investment security at December 31, 2017 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Total investment securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Available for Sale Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 3,943,092 $ 14,110 $ (65,969) $ 3,891,233 $ 3,891,233 Obligations of states and political subdivisions 225,096 7,871 (16) 232,951 232,951 Equity securities 28,075 293 (482) 27,886 27,886 Total investment securities $ 4,196,263 $ 22,274 $ (66,467) $ 4,152,070 $ 4,152,070 (1) Included in the carrying value of residential mortgage-backed securities are $654,063 of mortgage-backed securities issued by Ginnie Mae and $3,237,170 of mortgage-backed securities issued by Fannie Mae and Freddie. The amortized cost and estimated fair value of investment securities at June 30, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. Held to Maturity Available for Sale Amortized Estimated Amortized Estimated Cost fair value Cost fair value (Dollars in Thousands) Due in one year or less $ 1,200 $ 1,200 $ — $ — Due after one year through five years 1,200 1,200 — — Due after five years through ten years — — 1,720 1,736 Due after ten years — — 204,643 209,187 Residential mortgage-backed securities — — 3,615,831 3,509,643 Total investment securities $ 2,400 $ 2,400 $ 3,822,194 $ 3,720,566 Residential mortgage-backed securities are securities primarily issued by the Federal Home Loan Mortgage Corporation (“Freddie Mac”), Federal National Mortgage Association (“Fannie Mae”), or the Government National Mortgage Association (“Ginnie Mae”). Investments in residential mortgage-backed securities issued by Ginnie Mae are fully guaranteed by the U.S. Government. Investments in residential mortgage-backed securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. Government, however, the Company believes that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in early September 2008 and because securities issued by others that are collateralized by residential mortgage-backed securities issued by Fannie Mae or Freddie Mac are rated consistently as AAA rated securities. The amortized cost and fair value of available-for-sale debt investment securities pledged to qualify for fiduciary powers, to secure public monies as required by law, repurchase agreements and short-term fixed borrowings was $1,221,859,000 and $1,179,583,000, respectively, at June 30, 2018. Proceeds from the sale and calls of debt securities available-for-sale were $0 and $18,145,000 for the three and six months ended June 30, 2018, which included $0 and $0 of mortgage-backed securities. Gross gains of $0 and $0 and gross losses of $0 and $0 were realized on the sales and calls for the three and six months ended June 30, 2018. Proceeds from the sale and call of debt securities available-for-sale were $150,634,000 and $272,184,000 for the three and six months ended June 30, 2017, respectively, which included $150,634,000 and $266,967,000 of mortgage-backed securities, respectively. Gross gains of $10,000 and $1,186,000 and gross losses of $2,549,000 and $2,798,000 were realized on the sales and calls for the three and six months ended June 30, 2017. Gross unrealized losses on debt investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual debt securities have been in a continuous unrealized loss position at June 30, 2018, were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 1,000,142 $ (23,712) $ 2,047,402 $ (91,775) $ 3,047,544 $ (115,487) Obligations of states and political subdivisions 15,879 (137) 516 (8) 16,395 (145) $ 1,016,021 $ (23,849) $ 2,047,918 $ (91,783) $ 3,063,939 $ (115,632) Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2017 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 1,061,577 $ (13,157) $ 2,029,455 $ (52,812) $ 3,091,032 $ (65,969) Obligations of states and political subdivisions 5,534 (9) 522 (7) 6,056 (16) Equity securities 11,499 (251) 8,019 (231) 19,518 (482) $ 1,078,610 $ (13,417) $ 2,037,996 $ (53,050) $ 3,116,606 $ (66,467) The unrealized losses on investments in residential mortgage-backed securities are primarily caused by changes in market interest rates. Residential mortgage-backed securities are primarily securities issued by Freddie Mac, Fannie Mae and Ginnie Mae. The contractual cash obligations of the securities issued by Ginnie Mae are fully guaranteed by the U.S. Government. The contractual cash obligations of the securities issued by Freddie Mac and Fannie Mae are not fully guaranteed by the U.S. Government; however, the Company believes that the quality of the bonds is similar to other AAA rated bonds with limited credit risk, particularly given the placement of Fannie Mae and Freddie Mac into conservatorship by the federal government in early September 2008, and because securities issued by others that are collateralized by residential mortgage-backed securities issued by Fannie Mae and Freddie Mac are rated consistently as AAA rated securities. The decrease in fair value on residential mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae is due to market interest rates. The Company has no intent to sell and will more than likely not be required to sell before a market price recovery or maturity of the securities; therefore, it is the conclusion of the Company that the investments in residential mortgage-backed securities issued by Freddie Mac, Fannie Mae and Ginnie Mae are not considered other-than-temporarily impaired. Equity securities with readily determinable fair values consist primarily of Community Reinvestment Act funds. At June 30, 2018 and December 31, 2017, the balance in equity securities with readily determinable fair values recorded at fair value were $27,054,000 and $27,885,000, respectively. Prior to January 1, 2018, the equity securities were included in available-for-sale securities, with the related unrealized gain or loss recorded as a component of other comprehensive income. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and six months ended June 30, 2018: Three Months Ended June 30, (Dollars in Thousands) 2018 Net losses recognized during the period on equity securities $ (247) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (247) Six Months Ended June 30, (Dollars in Thousands) 2018 Net losses recognized during the period on equity securities $ (1,021) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (1,021)

Other Borrowed Funds

Other Borrowed Funds	6 Months Ended
	Jun. 30, 2018
Other Borrowed Funds
Other Borrowed Funds	Note 7 — Other Borrowed Funds Other borrowed funds include FHLB borrowings, which are short-term and long-term borrowings issued by the FHLB of Dallas at the market price offered at the time of funding. These borrowings are secured by residential mortgage-backed investment securities and a portion of the Company’s loan portfolio. At June 30, 2018, other borrowed funds totaled $852,950,000, a decrease of 28.6% from $1,195,225,000 at December 31, 2017.

Junior Subordinated Interest De

Junior Subordinated Interest Deferrable Debentures	6 Months Ended
	Jun. 30, 2018
Junior Subordinated Interest Deferrable Debentures
Junior Subordinated Interest Deferrable Debentures	Note 8 — Junior Subordinated Interest Deferrable Debentures The Company has six statutory business trusts under the laws of the State of Delaware, for the purpose of issuing trust preferred securities. The six statutory business trusts formed by the Company (the “Trusts”) have each issued Capital and Common Securities and invested the proceeds thereof in an equivalent amount of junior subordinated debentures (“Debentures”) issued by the Company. As of June 30, 2018 and December 31, 2017, the principal amount of Debentures outstanding totaled $160,416,000. The Debentures are subordinated and junior in right of payment to all present and future senior indebtedness (as defined in the respective Indentures) of the Company, and are pari passu with one another. The interest rate payable on, and the payment terms of the Debentures are the same as the distribution rate and payment terms of the respective issues of Capital and Common Securities issued by the Trusts. The Company has fully and unconditionally guaranteed the obligations of each of the Trusts with respect to the Capital and Common Securities. The Company has the right, unless an Event of Default (as defined in the Indentures) has occurred and is continuing, to defer payment of interest on the Debentures for up to twenty consecutive quarterly periods on Trusts VI, VIII, IX, X, XI and XII. If interest payments on any of the Debentures are deferred, distributions on both the Capital and Common Securities related to that Debenture would also be deferred. The redemption prior to maturity of any of the Debentures may require the prior approval of the Federal Reserve and/or other regulatory bodies. For financial reporting purposes, the Trusts are treated as investments of the Company and not consolidated in the consolidated financial statements. Although the Capital and Common Securities issued by each of the Trusts are not included as a component of shareholders’ equity on the consolidated statement of condition, the Capital and Common Securities are treated as capital for regulatory purposes. Specifically, under applicable regulatory guidelines, the Capital and Common Securities issued by the Trusts qualify as Tier 1 capital up to a maximum of 25% of Tier 1 capital on an aggregate basis. Any amount that exceeds the 25% threshold would qualify as Tier 2 capital. At June 30, 2018 and December 31, 2017, the total $160,416,000 of the Capital and Common Securities outstanding qualified as Tier 1 capital. The following table illustrates key information about each of the Capital and Common Securities and their interest rate at June 30, 2018: Junior Subordinated Deferrable Interest Repricing Interest Interest Optional Debentures Frequency Rate Rate Index(1) Maturity Date Redemption Date (1) (Dollars in Thousands) Trust VI $ 25,774 Quarterly 5.79 % LIBOR + November 2032 February 2008 Trust VIII 25,774 Quarterly 5.40 % LIBOR + October 2033 October 2008 Trust IX 41,238 Quarterly 3.93 % LIBOR + October 2036 October 2011 Trust X 21,021 Quarterly 4.01 % LIBOR + February 2037 February 2012 Trust XI 25,990 Quarterly 3.93 % LIBOR + July 2037 July 2012 Trust XII 20,619 Quarterly 3.75 % LIBOR + September 2037 September 2012 $ 160,416 (1) The Capital and Common Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date.

Common Stock and Dividends

Common Stock and Dividends	6 Months Ended
	Jun. 30, 2018
Common Stock and Dividends
Common Stock and Dividends	Note 9 — Common Stock and Dividends In connection with the Company’s participation in the Troubled Asset Relief Program Capital Purchase Program in 2008, the US Treasury received a warrant (“Warrant”) to purchase 1,326,238 shares of the Company’s common stock at $24.43 per share. The term of the Warrant is ten years and was immediately exercisable. The Warrant is included as a component of Tier 1 capital. On June 12, 2013, the U. S. Treasury sold the Warrant to a third party. As of August 3, 2018, the Warrant is still outstanding, but expires on December 23, 2018. Adjustments to the $24.43 per share Exercise Price of the Warrant will be made if the Company pays cash dividends in excess of $0.33 per semi‑annual period or makes certain other shareholder distributions before the Warrant expires. On April 16, 2018, the Company paid cash dividends of $0.33 per share to record holders of the Company’s common stock on April 2, 2018. On April 17 and October 16, 2017, the Company paid cash dividends of $0.33 per share to record holders of the Company’s common stock on April 13, and September 29, 2017, respectively. In April 2009, following receipt of the Treasury Department’s consent, the Board of Directors re‑established a formal stock repurchase program that authorized the repurchase of up to $40 million of common stock within the following 12 months. Annually since then, including on March 15, 2018, the Board of Directors extended the repurchase program and authorized the purchase of up to $40 million of common stock during each successive 12 month period commencing again on April 9, 2018. Shares of common stock may be purchased from time to time on the open market or through privately negotiated transactions. Shares purchased in this program will be held in treasury for reissue for various corporate purposes, including employee compensation plans. During the first quarter of 2018, the Board of Directors adopted a Rule 10b5‑1 trading plan, and intends to adopt additional Rule 10b5‑1 trading plans, that will allow the Company to purchase shares of its common stock during certain trading blackout periods when the Company ordinarily would not be in the market due to trading restrictions in its insider trading policy. During the term of a Rule 10b5‑1 trading plan, purchases of common stock are automatic to the extent the conditions of the plan’s trading instructions are met. Shares purchased under the Rule 10b5-1 trading plan will be held in treasury for reissue for various corporate purposes, including employee stock compensation plans. As of August 3, 2018, a total of 9,246,956 shares had been repurchased under all programs at a cost of $271,347,000. The Company is not obligated to purchase shares under its stock repurchase program outside of its Rule 10b5-1 trading plan.

Commitments, Contingent Liabili

Commitments, Contingent Liabilities and Other Tax Matters	6 Months Ended
	Jun. 30, 2018
Commitments, Contingent Liabilities and Other Tax Matters
Commitments, Contingent Liabilities and Other Tax Matters	Note 10 — Commitments and Contingent Liabilities and Other Tax Matters The Company is involved in various legal proceedings that are in various stages of litigation. The Company has determined, based on discussions with its counsel, that any material loss in such actions, individually or in the aggregate, is remote or the damages sought, even if fully recovered, would not be considered material to the consolidated financial position or results of operations of the Company. However, many of these matters are in various stages of proceedings and further developments could cause management to revise its assessment of these matters. On December 22, 2017, the Tax Cuts and Jobs Act (“Tax Act”) was signed into law. The Tax Act materially changes U. S. corporate income tax rates, among other things. The Company was in a net deferred tax liability position at the time the Tax Act was enacted and subsequently revalued the carrying value of the net deferred liability and its components to the new 21% effective tax rate. The revaluation resulted in a net benefit to the Company of $3,168,000 and was included as a reduction to income tax expense in the consolidated income statement for the year ended December 31, 2017. No adjustments to the revalued carrying value for deferred tax assets or liabilities were made during the three or six months ended June 30, 2018.

Capital Ratios

Capital Ratios	6 Months Ended
	Jun. 30, 2018
Capital Ratios
Capital Ratios	Note 11 — Capital Ratios Banks and bank holding companies are subject to various regulatory capital requirements administered by state and federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance sheet items calculated under regulatory accounting practices. Capital amount and classifications are also subject to qualitative judgements by regulators about components, risk-weighting and other factors. In July 2013, the Federal Deposit Insurance Corporation (“FDIC”) and other regulatory bodies established a new, comprehensive capital framework for U.S. banking organizations, consisting of minimum requirements that increase both the quantity and quality of capital held by banking organizations. The final rules are a result of the implementation of the BASEL III capital reforms and various Dodd-Frank Wall Street Reform and Consumer Protection Act (“Dodd-Frank”) related capital provisions. Consistent with the Basel international framework, the rules include a minimum ratio of Common Equity Tier 1 (“CET1”) to risk-weighted assets of 4.5% and a CET1 capital conservation buffer of 2.5% of risk-weighted assets. The capital conservation buffer began phasing-in on January 1, 2016 at .625% and will increase each year until January 1, 2019, when the Company will be required to have a 2.5% capital conservation buffer, effectively resulting in a minimum ratio of CET1 capital to risk-weighted assets of at least 7% upon full implementation. The rules also raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4% to 6% and include a minimum leverage ratio of 4% for all banking organizations. Regarding the quality of capital, the rules emphasize CET1 capital and implements strict eligibility criteria for regulatory capital instruments. The rules also improve the methodology for calculating risk-weighted assets to enhance risk sensitivity. The rules are subject to a four year phase in period for mandatory compliance and the Company was required to begin to phase in the rules beginning on January 1, 2016. Management believes, as of June 30, 2018, that the Company and each of the bank subsidiaries will meet all capital adequacy requirements once the capital conservation is fully phased-in. On May 24, 2018, the Economic Growth, Regulatory Relief, and Consumer Protection Act (“EGRRCPA”) was enacted and, among other things, it includes a simplified capital rule change which effectively exempts banks with assets of less than $10 billion that exceed the “community bank leverage ratio,” from all risk-based capital requirements, including Basel III and its predecessors. The federal banking agencies must establish the “community bank leverage ratio” (a ratio of tangible equity to average consolidated assets) between 8% and 10% before community banks can begin to take advantage of this regulatory relief provision. Some of the Company’s bank subsidiaries, with assets of less than $10 billion, may qualify for this exemption. The Company had a CET1 to risk-weighted assets ratio of 17.75% on June 30, 2018 and 17.11% on December 31, 2017. The Company had a Tier 1 capital-to-average-total-asset (leverage) ratio of 15.32% and 14.62%, risk-weighted Tier 1 capital ratio of 19.32% and 18.73% and risk-weighted total capital ratio of 20.04% and 19.51% at June 30, 2018 and December 31, 2017, respectively. The Company’s CET1 capital consists of common stock and related surplus, net of treasury stock, and retained earnings. The Company and its subsidiary banks elected to opt-out of the requirement to include most components of accumulated other comprehensive income (loss) in the calculation of CET1 capital. CET1 is reduced by goodwill and other intangible assets, net of associated deferred tax liabilities and subject to transition provisions. Tier 1 capital includes CET1 capital and additional Tier 1 capital. Additional Tier 1 capital of the Company includes the Capital and Common Securities issued by the Trusts (see Note 8 above) up to a maximum of 25% of Tier 1 capital on an aggregate basis. Any amount that exceeds the 25% threshold qualifies as Tier 2 capital. As of June 30, 2018, the total of $160,416,000 of the Capital and Common Securities outstanding qualified as Tier 1 capital. The Company actively monitors the regulatory capital ratios to ensure that the Company’s bank subsidiaries are well-capitalized under the regulatory framework. The CET1, Tier 1 and Total capital ratios are calculated by dividing the respective capital amounts by risk-weighted assets. Risk-weighted assets are calculated based on regulatory requirements and include total assets, excluding goodwill and other intangible assets, allocated by risk-weight category, and certain off-balance-sheet items, among other things. The leverage ratio is calculated by dividing Tier 1 capital by adjusted quarterly average total assets, which exclude goodwill and other intangible assets, among other things. The aforementioned capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of CET1 capital-to-risk-weighted assets above the minimum but below the conservation buffer will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. As of June 30, 2018, capital levels at the Company exceed all capital adequacy requirements under the Basel III Capital Rules as currently applicable to the Company, including the capital conservation buffer. Based on the ratios presented above, capital levels as of June 30, 2018 at the Company exceed the minimum levels necessary to be considered “well-capitalized.” The Company and its subsidiary banks are subject to the regulatory capital requirements administered by the Federal Reserve, and, for the subsidiary banks, the FDIC. Regulatory authorities can initiate certain mandatory actions if the Company or any of the subsidiary banks fail to meet the minimum capital requirements, which could have a direct material effect on our financial statements. Management believes, as of June 30, 2018, that the Company and each of its subsidiary banks meet all capital adequacy requirements to which they are subject.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
Fair Value Measurements
Assets and liabilities measured at fair value on a recurring basis	The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of June 30, 2018 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs June 30, 2018 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale debt securities Residential mortgage-backed securities $ 3,509,643 $ — $ 3,509,643 $ — States and political subdivisions 210,923 — 210,923 — Equity Securities 27,054 27,054 — — $ 3,747,620 $ 27,054 $ 3,720,566 $ — The following table represents assets and liabilities reported on the consolidated balance sheets at their fair value on a recurring basis as of December 31, 2017 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in Thousands) Quoted Prices in Active Significant Assets/Liabilities Markets for Other Significant Measured at Identical Observable Unobservable Fair Value Assets Inputs Inputs December 31, 2017 (Level 1) (Level 2) (Level 3) Measured on a recurring basis: Assets: Available for sale securities Residential mortgage - backed securities $ 3,891,233 $ — $ 3,891,233 $ — States and political subdivisions 232,951 — 232,951 — Equity Securities 27,886 27,886 — — $ 4,152,070 $ 27,886 $ 4,124,184 $ —
Assets measured at fair value on a non-recurring basis	The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended June 30, 2018 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets for Other Significant Net Provision Year ended Identical Observable Unobservable (Credit) June 30, Assets Inputs Inputs During 2018 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ 8,738 $ — $ — $ 8,738 $ 574 Other real estate owned 6,854 — — 6,854 2,658 The following table represents financial instruments measured at fair value on a non-recurring basis as of and for the period ended December 31, 2017 by level within the fair value measurement hierarchy: Fair Value Measurements at Reporting Date Using (in thousands) Quoted Assets/Liabilities Prices in Measured at Active Significant Fair Value Markets Other Significant Net (Credit) Year ended for Identical Observable Unobservable Provision December 31, Assets Inputs Inputs During 2017 (Level 1) (Level 2) (Level 3) Period Measured on a non-recurring basis: Assets: Impaired loans $ 11,210 $ — $ — $ 11,210 $ 2,138 Other real estate owned 2,000 — — 2,000 710

Loans (Tables)

Loans (Tables)	6 Months Ended
	Jun. 30, 2018
Loans
Summary of loans, by loan type	June 30, December 31, 2018 2017 (Dollars in Thousands) Commercial, financial and agricultural $ 3,321,341 $ 3,322,668 Real estate - mortgage 1,136,921 1,133,525 Real estate - construction 1,781,953 1,683,550 Consumer 47,747 49,543 Foreign 151,458 158,886 Total loans $ 6,439,420 $ 6,348,172

Allowance for Probable Loan L21

Allowance for Probable Loan Losses (Tables)	6 Months Ended
	Jun. 30, 2018
Allowance for Probable Loan Losses
Summary of the transactions in the allowance for probable loan losses by loan class	Three Months Ended June 30, 2018 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, $ 20,691 $ 11,798 $ 24,803 $ 947 $ 3,006 $ 4,689 $ 437 $ 783 $ 67,154 Losses charged to allowance (2,284) — (70) — (30) (9) (65) — (2,458) Recoveries credited to allowance 447 2 192 — 1 229 15 1 887 Net (losses) recoveries charged to allowance (1,837) 2 122 — (29) 220 (50) 1 (1,571) Provision charged to operations (2,258) 2,903 (6,629) 627 614 1,884 63 66 (2,730) Balance at June 30, $ 16,596 $ 14,703 $ 18,296 $ 1,574 $ 3,591 $ 6,793 $ 450 $ 850 $ 62,853 Three Months Ended June 30, 2017 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at March 31, $ 25,853 $ 13,789 $ 16,721 $ 818 $ 2,391 $ 3,186 $ 504 $ 924 $ 64,186 Losses charged to allowance (2,264) — (40) — (30) (33) (39) — (2,406) Recoveries credited to allowance 2,154 2 89 — 2 73 13 1 2,334 Net (losses) recoveries charged to allowance (110) 2 49 — (28) 40 (26) 1 (72) Provision charged to operations (603) (542) 702 179 (49) 1,131 10 (23) 805 Balance at June 30, $ 25,140 $ 13,249 $ 17,472 $ 997 $ 2,314 $ 4,357 $ 488 $ 902 $ 64,919 Six Months Ended June 30, 2018 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ 27,905 $ 11,675 $ 16,663 $ 1,109 $ 2,950 $ 6,103 $ 440 $ 842 $ 67,687 Losses charged to allowance (4,999) (1) (70) — (44) (39) (182) — (5,335) Recoveries credited to allowance 1,030 4 210 — 2 295 27 1 1,569 Net (losses) recoveries charged to allowance (3,969) 3 140 — (42) 256 (155) 1 (3,766) Provision charged to operations (7,340) 3,025 1,493 465 683 434 165 7 (1,068) Balance at June 30, $ 16,596 $ 14,703 $ 18,296 $ 1,574 $ 3,591 $ 6,793 $ 450 $ 850 $ 62,853 Six Months Ended June 30, 2017 Domestic Foreign Commercial Real Estate: Other Commercial Construction & Real Estate: Commercial Land Farmland & Real Estate: Residential: Residential: Commercial Development Commercial Multifamily First Lien Junior Lien Consumer Foreign Total (Dollars in Thousands) Balance at December 31, $ 25,649 $ 13,889 $ 16,731 $ 806 $ 2,455 $ 3,716 $ 531 $ 884 $ 64,661 Losses charged to allowance (4,999) — (40) — (61) (138) (160) — (5,398) Recoveries credited to allowance 2,853 3 147 — 7 97 29 15 3,151 Net (losses) recoveries charged to allowance (2,146) 3 107 — (54) (41) (131) 15 (2,247) Provision charged to operations 1,637 (643) 634 191 (87) 682 88 3 2,505 Balance at June 30, $ 25,140 $ 13,249 $ 17,472 $ 997 $ 2,314 $ 4,357 $ 488 $ 902 $ 64,919
Loans individually or collectively evaluated for their impairment and related allowance, by loan class	June 30, 2018 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 17,933 $ 460 $ 1,072,061 $ 16,136 Commercial real estate: other construction & land development 2,166 116 1,779,787 14,587 Commercial real estate: farmland & commercial 6,020 — 2,011,747 18,296 Commercial real estate: multifamily 664 — 212,916 1,574 Residential: first lien 6,387 — 420,951 3,591 Residential: junior lien 799 — 708,784 6,793 Consumer 1,141 — 46,606 450 Foreign 330 — 151,128 850 Total $ 35,440 $ 576 $ 6,403,980 $ 62,277 December 31, 2017 Loans Individually Loans Collectively Evaluated For Evaluated For Impairment Impairment Recorded Recorded Investment Allowance Investment Allowance (Dollars in Thousands) Domestic Commercial $ 17,947 $ 300 $ 1,068,520 $ 27,605 Commercial real estate: other construction & land development 2,455 116 1,681,095 11,559 Commercial real estate: farmland & commercial 33,123 18 2,010,162 16,645 Commercial real estate: multifamily 476 — 192,440 1,109 Residential: first lien 6,852 — 425,925 2,950 Residential: junior lien 723 — 700,025 6,103 Consumer 1,281 — 48,262 440 Foreign 347 — 158,539 842 Total $ 63,204 $ 434 $ 6,284,968 $ 67,253
Loans accounted on non-accrual basis, by loan class	June 30, 2018 December 31, 2017 (Dollars in Thousands) Domestic Commercial $ 17,896 $ 17,909 Commercial real estate: other construction & land development 2,166 2,455 Commercial real estate: farmland & commercial 6,020 33,123 Commercial real estate: multifamily 664 476 Residential: first lien 485 712 Residential: junior lien — 11 Consumer 39 44 Total non-accrual loans $ 27,270 $ 54,730
Impaired loans, by loan class	June 30, 2018 Quarter to Date Year to Date Unpaid Average Average Recorded Principal Related Recorded Interest Recorded Interest Investment Balance Allowance Investment Recognized Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 1,402 $ 1,992 $ 460 $ 1,604 $ — $ 1,661 $ — Commercial real estate: other construction & land development 142 169 116 143 — 144 — Total impaired loans with related allowance $ 1,544 $ 2,161 $ 576 $ 1,747 $ — $ 1,805 $ — June 30, 2018 Quarter to Date Year to Date Unpaid Average Average Recorded Principal Recorded Interest Recorded Interest Investment Balance Investment Recognized Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 16,531 $ 43,980 $ 16,594 $ 1 $ 16,738 $ 1 Commercial real estate: other construction & land development 2,024 2,230 2,148 — 2,216 — Commercial real estate: farmland & commercial 6,020 6,520 36,790 — 36,686 — Commercial real estate: multifamily 664 696 664 — 568 — Residential: first lien 6,387 6,508 6,426 76 6,864 152 Residential: junior lien 799 810 803 12 811 22 Consumer 1,141 1,144 1,145 1 1,179 2 Foreign 330 330 333 4 337 7 Total impaired loans with no related allowance $ 33,896 $ 62,218 $ 64,903 $ 94 $ 65,399 $ 184 December 31, 2017 Unpaid Average Recorded Principal Related Recorded Interest Investment Balance Allowance Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial real estate: other construction & land development $ 1,300 $ 1,577 $ 300 $ 1,346 $ — Commercial real estate: farmland & commercial 145 169 116 150 — Commercial real estate: multifamily 449 590 18 489 — Total impaired loans with related allowance $ 1,894 $ 2,336 $ 434 $ 1,985 $ — December 31, 2017 Unpaid Average Recorded Principal Recorded Interest Investment Balance Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 16,646 $ 44,095 $ 19,354 $ 3 Commercial real estate: other construction & land development 2,310 2,455 2,336 67 Commercial real estate: farmland & commercial 32,675 33,275 8,523 110 Commercial real estate: multifamily 476 505 401 — Residential: first lien 6,852 6,968 6,860 298 Residential: junior lien 723 736 1,011 52 Consumer 1,281 1,283 1,214 1 Foreign 347 347 751 16 Total impaired loans with no related allowance $ 61,310 $ 89,664 $ 40,450 $ 547 The following table details key information regarding the Company’s impaired loans by loan class at June 30, 2017: June 30, 2017 Quarter to Date Year to Date Average Average Recorded Interest Recorded Interest Investment Recognized Investment Recognized (Dollars in Thousands) Loans with Related Allowance Domestic Commercial $ 1,152 $ — $ 1,158 $ — Commercial real estate: other construction & land development 767 — 1,033 — Commercial real estate: farmland & commercial 1,314 — 1,567 — Total impaired loans with related allowance $ 3,233 $ — $ 3,758 $ — June 30, 2017 Quarter to Date Year to Date Average Average Recorded Interest Recorded Interest Investment Recognized Investment Recognized (Dollars in Thousands) Loans with No Related Allowance Domestic Commercial $ 20,005 $ 1 $ 20,463 $ 1 Commercial real estate: other construction & land development 2,482 — 2,610 — Commercial real estate: farmland & commercial 8,532 30 8,774 58 Commercial real estate: multifamily 521 — 530 — Residential: first lien 6,774 81 6,874 159 Residential: junior lien 977 12 982 23 Consumer 1,156 — 1,212 1 Foreign 755 4 751 8 Total impaired loans with no related allowance $ 41,202 $ 128 $ 42,196 $ 250
Loans accounted for as trouble debt restructuring, by loan class	June 30, 2018 December 31, 2017 (Dollars in Thousands) Domestic Commercial $ 6,742 $ 6,910 Commercial real estate: farmland & commercial — — Residential: first lien 5,902 6,140 Residential: junior lien 799 712 Consumer 1,101 1,237 Foreign 330 347 Total troubled debt restructuring $ 14,874 $ 15,346
Information regarding the aging of past due loans, by loan class	June 30, 2018 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 3,192 $ 833 $ 17,806 $ 618 $ 21,831 $ 1,068,163 $ 1,089,994 Commercial real estate: other construction & land development 639 124 3,452 2,638 4,215 1,777,738 1,781,953 Commercial real estate: farmland & commercial 2,069 3,336 3,394 532 8,799 2,008,968 2,017,767 Commercial real estate: multifamily 191 — 664 — 855 212,725 213,580 Residential: first lien 3,343 699 4,298 4,053 8,340 418,998 427,338 Residential: junior lien 1,230 284 994 994 2,508 707,075 709,583 Consumer 532 51 55 36 638 47,109 47,747 Foreign 2,355 1,322 14 14 3,691 147,767 151,458 Total past due loans $ 13,551 $ 6,649 $ 30,677 $ 8,885 $ 50,877 $ 6,388,543 $ 6,439,420 December 31, 2017 90 Days or Total 30 - 59 60 - 89 90 Days or greater & Past Total Days Days Greater still accruing Due Current Portfolio (Dollars in Thousands) Domestic Commercial $ 3,790 $ 398 $ 18,308 $ 537 $ 22,496 $ 1,063,971 $ 1,086,467 Commercial real estate: other construction & land development 354 308 820 6 1,482 1,682,068 1,683,550 Commercial real estate: farmland & commercial 3,925 518 31,133 954 35,576 2,007,709 2,043,285 Commercial real estate: multifamily 84 — 476 — 560 192,356 192,916 Residential: first lien 4,295 2,458 4,095 3,861 10,848 421,929 432,777 Residential: junior lien 1,310 580 1,110 1,099 3,000 697,748 700,748 Consumer 868 98 160 133 1,126 48,417 49,543 Foreign 1,229 69 667 667 1,965 156,921 158,886 Total past due loans $ 15,855 $ 4,429 $ 56,769 $ 7,257 $ 77,053 $ 6,271,119 $ 6,348,172
Summary of the loan portfolio by credit quality indicator, by loan class	June 30, 2018 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ 951,055 $ 256 $ 1,034 $ 119,716 $ 17,933 Commercial real estate: other construction & land development 1,715,667 1,115 7,169 55,836 2,166 Commercial real estate: farmland & commercial 1,817,420 57,123 39,372 97,832 6,020 Commercial real estate: multifamily 211,972 — — 944 664 Residential: first lien 420,198 — 129 624 6,387 Residential: junior lien 707,903 — 881 — 799 Consumer 46,606 — — — 1,141 Foreign 151,128 — — — 330 Total $ 6,021,949 $ 58,494 $ 48,585 $ 274,952 $ 35,440 December 31, 2017 Special Watch Watch List— Watch List— Pass Review List—Pass Substandard Impaired (Dollars in Thousands) Domestic Commercial $ 905,707 $ — $ 3,170 $ 159,643 $ 17,947 Commercial real estate: other construction & land development 1,616,604 1,288 672 62,531 2,455 Commercial real estate: farmland & commercial 1,863,763 5,134 41,820 99,445 33,123 Commercial real estate: multifamily 192,440 — — — 476 Residential: first lien 425,811 40 — 74 6,852 Residential: junior lien 699,875 150 — — 723 Consumer 48,262 — — — 1,281 Foreign 158,539 — — — 347 Total $ 5,911,001 $ 6,612 $ 45,662 $ 321,693 $ 63,204

Stock Options (Tables)

Stock Options (Tables)	6 Months Ended
	Jun. 30, 2018
Stock Options
Summary of option activity under stock option plans	Weighted Weighted average average remaining Aggregate Number of exercise contractual intrinsic options price term (years) value ($) (in Thousands) Options outstanding at December 31, 2017 668,166 $ Plus: Options granted 229,700 38.30 Less: Options exercised 46,351 Options expired — — Options forfeited 15,800 Options outstanding at June 30, 2018 835,715 $ 14,436 Options fully vested and exercisable at June 30, 2018 327,341 $ $ 7,582

Investment Securities and Equ23

Investment Securities and Equity Securities with Readily Determinable Fair Values (Tables)	6 Months Ended
	Jun. 30, 2018
Investment Securities and Equity Securities with Readily Determinable Fair Values
Amortized cost and estimated fair value by type of investment security	The amortized cost and estimated fair value by type of investment security at June 30, 2018 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Total investment securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Available for Sale Debt Securities Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 3,615,831 $ 9,299 $ (115,487) $ 3,509,643 $ 3,509,643 Obligations of states and political subdivisions 206,363 4,705 (145) 210,923 210,923 Total investment securities $ 3,822,194 $ 14,004 $ (115,632) $ 3,720,566 $ 3,720,566 (1) Included in the carrying value of residential mortgage-backed securities are $571,385 of mortgage-backed securities issued by Ginnie Mae and $2,938,258 of mortgage-backed securities issued by Fannie Mae and Freddie Mac. The amortized cost and estimated fair value by type of investment security at December 31, 2017 are as follows: Held to Maturity Gross Gross Amortized unrealized unrealized Estimated Carrying cost gains losses fair value value (Dollars in Thousands) Other securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Total investment securities $ 2,400 $ — $ — $ 2,400 $ 2,400 Available for Sale Gross Gross Estimated Amortized unrealized unrealized fair Carrying cost gains losses value value (1) (Dollars in Thousands) Residential mortgage-backed securities $ 3,943,092 $ 14,110 $ (65,969) $ 3,891,233 $ 3,891,233 Obligations of states and political subdivisions 225,096 7,871 (16) 232,951 232,951 Equity securities 28,075 293 (482) 27,886 27,886 Total investment securities $ 4,196,263 $ 22,274 $ (66,467) $ 4,152,070 $ 4,152,070 (1) Included in the carrying value of residential mortgage-backed securities are $654,063 of mortgage-backed securities issued by Ginnie Mae and $3,237,170 of mortgage-backed securities issued by Fannie Mae and Freddie.
Amortized cost and fair value of investment securities, by contractual maturity	Held to Maturity Available for Sale Amortized Estimated Amortized Estimated Cost fair value Cost fair value (Dollars in Thousands) Due in one year or less $ 1,200 $ 1,200 $ — $ — Due after one year through five years 1,200 1,200 — — Due after five years through ten years — — 1,720 1,736 Due after ten years — — 204,643 209,187 Residential mortgage-backed securities — — 3,615,831 3,509,643 Total investment securities $ 2,400 $ 2,400 $ 3,822,194 $ 3,720,566
Gross unrealized losses on investment securities and the related fair value	Gross unrealized losses on debt investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual debt securities have been in a continuous unrealized loss position at June 30, 2018, were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 1,000,142 $ (23,712) $ 2,047,402 $ (91,775) $ 3,047,544 $ (115,487) Obligations of states and political subdivisions 15,879 (137) 516 (8) 16,395 (145) $ 1,016,021 $ (23,849) $ 2,047,918 $ (91,783) $ 3,063,939 $ (115,632) Gross unrealized losses on investment securities and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2017 were as follows: Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value Losses Fair Value Losses Fair Value Losses (Dollars in Thousands) Available for sale: Residential mortgage-backed securities $ 1,061,577 $ (13,157) $ 2,029,455 $ (52,812) $ 3,091,032 $ (65,969) Obligations of states and political subdivisions 5,534 (9) 522 (7) 6,056 (16) Equity securities 11,499 (251) 8,019 (231) 19,518 (482) $ 1,078,610 $ (13,417) $ 2,037,996 $ (53,050) $ 3,116,606 $ (66,467)
Summary of unrealized and realized gains and losses recognized in net income on equity securities	Three Months Ended June 30, (Dollars in Thousands) 2018 Net losses recognized during the period on equity securities $ (247) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (247) Six Months Ended June 30, (Dollars in Thousands) 2018 Net losses recognized during the period on equity securities $ (1,021) Less: Net gains and (losses) recognized during the period on equity securities sold during the period — Unrealized losses recognized during the reporting period on equity securities still held at the reporting date $ (1,021)

Junior Subordinated Interest 24

Junior Subordinated Interest Deferrable Debentures (Tables)	6 Months Ended
	Jun. 30, 2018
Junior Subordinated Interest Deferrable Debentures
Junior subordinated deferrable interest debentures, major types of business trusts	Junior Subordinated Deferrable Interest Repricing Interest Interest Optional Debentures Frequency Rate Rate Index(1) Maturity Date Redemption Date (1) (Dollars in Thousands) Trust VI $ 25,774 Quarterly 5.79 % LIBOR + November 2032 February 2008 Trust VIII 25,774 Quarterly 5.40 % LIBOR + October 2033 October 2008 Trust IX 41,238 Quarterly 3.93 % LIBOR + October 2036 October 2011 Trust X 21,021 Quarterly 4.01 % LIBOR + February 2037 February 2012 Trust XI 25,990 Quarterly 3.93 % LIBOR + July 2037 July 2012 Trust XII 20,619 Quarterly 3.75 % LIBOR + September 2037 September 2012 $ 160,416 The Capital and Common Securities may be redeemed in whole or in part on any interest payment date after the Optional Redemption Date.

Basis of Presentation (Details)

Basis of Presentation (Details)	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2018item	Dec. 31, 2017USD ($)
Basis of presentation
Number of operating segments | item		1
Number of active operating bank subsidiaries | item		5
On-time reclassification from AOCI to retained earnings, relating to the Tax Cuts and Jobs Act of 2017 | $	$ 5,979,000
Equity securities
Basis of presentation
Net unrealized loss on available-for-sale equity securities | $			$ 189,000

Fair Value (Fair Value By Level

Fair Value (Fair Value By Level) (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Assets:
Available for sale debt securities	$ 3,720,566,000	$ 4,124,185,000
Equity Securities	27,054,000	27,885,000
Marketable Securities	3,750,020,000	4,154,470,000
Assets/liabilities measured at fair value
Assets:
Available for sale debt securities	3,720,566,000
Assets/liabilities measured at fair value | Residential mortgage-backed securities
Assets:
Available for sale debt securities	3,509,643,000	3,891,233,000
Assets/liabilities measured at fair value | Obligations of states and political subdivisions
Assets:
Available for sale debt securities	210,923,000	232,951,000
Assets/liabilities measured at fair value | Equity securities
Assets:
Equity Securities		27,886,000
Measured on a recurring basis: | Assets/liabilities measured at fair value
Assets:
Marketable Securities	3,747,620,000	4,152,070,000
Measured on a recurring basis: | Assets/liabilities measured at fair value | Residential mortgage-backed securities
Assets:
Available for sale debt securities	3,509,643,000	3,891,233,000
Measured on a recurring basis: | Assets/liabilities measured at fair value | Obligations of states and political subdivisions
Assets:
Available for sale debt securities	210,923,000	232,951,000
Measured on a recurring basis: | Assets/liabilities measured at fair value | Equity securities
Assets:
Equity Securities	27,054,000	27,886,000
Measured on a recurring basis: | Assets/liabilities measured at fair value | Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Marketable Securities	27,054,000	27,886,000
Measured on a recurring basis: | Assets/liabilities measured at fair value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities
Assets:
Equity Securities	27,054,000	27,886,000
Measured on a recurring basis: | Assets/liabilities measured at fair value | Significant Other Observable Inputs (Level 2)
Assets:
Marketable Securities	3,720,566,000	4,124,184,000
Measured on a recurring basis: | Assets/liabilities measured at fair value | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities
Assets:
Available for sale debt securities	3,509,643,000	3,891,233,000
Measured on a recurring basis: | Assets/liabilities measured at fair value | Significant Other Observable Inputs (Level 2) | Obligations of states and political subdivisions
Assets:
Available for sale debt securities	$ 210,923,000	$ 232,951,000

Fair Value (Fair Value Measurem

Fair Value (Fair Value Measurement and Assumptions) (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Assets:
Impaired Loans	$ 25,827,000	$ 25,827,000	$ 53,267,000
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3
Charges to allowance for probable loan losses in connection with other real estate owned	138,000	162,000	30,000
Adjustment to fair value in connection with other real estate owned	2,587,000	2,658,000	710,000
Impaired commercial collateral dependent loans	25,827,000	25,827,000	53,267,000
Impaired commercial collateral dependent receivables appraisals to determine fair value within immediately preceding twelve months	11,922,000	11,922,000	18,585,000
Impaired collateral dependent commercial loans with internal evaluation completed within last twelve months	0	0	0
Measured on a non-recurring basis
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3
Change in net provision, impaired loans	574,000	574,000	2,138,000
Change in net provision, other real estate owned	2,658,000	2,658,000	710,000
Measured on a non-recurring basis | Significant Unobservable Inputs (Level 3)
Assets:
Impaired Loans	8,738,000	8,738,000	11,210,000
Non-financial assets:
Other real estate owned	6,854,000	6,854,000	2,000,000
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3
Impaired commercial collateral dependent loans	8,738,000	8,738,000	11,210,000
Measured on a non-recurring basis | Assets/liabilities measured at fair value
Assets:
Impaired Loans	8,738,000	8,738,000	11,210,000
Non-financial assets:
Other real estate owned	6,854,000	6,854,000	2,000,000
Assumptions used in discounted cash flow model to determine fair value of investments classified within level 3
Impaired commercial collateral dependent loans	$ 8,738,000	$ 8,738,000	$ 11,210,000

Fair Value Measurements (Other

Fair Value Measurements (Other Assumptions) (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Deposits
Carrying amount of time deposits	$ 2,002,219,000	$ 2,056,506,000
Significant Unobservable Inputs (Level 3)
Loans
Carrying amount of fixed rate performing loans	1,537,587,000	1,505,531,000
Estimated fair value of fixed rate performing loans	1,499,578,000	1,454,434,000
Deposits
Carrying amount of time deposits	2,002,219,000	2,056,506,000
Estimated fair value of time deposits	2,004,385,000	2,058,621,000
Securities Sold Under Repurchase Agreements
Carrying amount of long-term repurchase agreements	100,000,000
Estimated fair value of long-term repurchase agreements	99,504,000
Significant Other Observable Inputs (Level 2)
Other borrowed funds
Carrying amount of the long-term FHLB borrowings	100,000,000	250,000,000
Estimated fair value of long-term FHLB borrowings	$ 100,597,000	$ 249,728,000

Loans (Details)

Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Summary of loans, by loan type
Total loans	$ 6,439,420	$ 6,348,172
Commercial, financial and agricultural
Summary of loans, by loan type
Total loans	3,321,341	3,322,668
Real estate - mortgage
Summary of loans, by loan type
Total loans	1,136,921	1,133,525
Commercial Real Estate:Other Construction and Land Development
Summary of loans, by loan type
Total loans	1,781,953	1,683,550
Consumer
Summary of loans, by loan type
Total loans	47,747	49,543
Foreign
Summary of loans, by loan type
Total loans	$ 151,458	$ 158,886

Allowance for Probable Loan L30

Allowance for Probable Loan Losses (By Loan Class) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Allowance for probable loan losses
Balance at the beginning of the period	$ 67,154	$ 64,186	$ 67,687	$ 64,661
Losses charged to allowance	(2,458)	(2,406)	(5,335)	(5,398)
Recoveries credited to allowance	887	2,334	1,569	3,151
Net (losses) recoveries charged to allowance	(1,571)	(72)	(3,766)	(2,247)
Provision charged to operations	(2,730)	805	(1,068)	2,505
Balance at the end of the period	62,853	64,919	$ 62,853	64,919
Period of time for determining the historical charge-off experience			3 years
Commercial
Allowance for probable loan losses
Balance at the beginning of the period	20,691	25,853	$ 27,905	25,649
Losses charged to allowance	(2,284)	(2,264)	(4,999)	(4,999)
Recoveries credited to allowance	447	2,154	1,030	2,853
Net (losses) recoveries charged to allowance	(1,837)	(110)	(3,969)	(2,146)
Provision charged to operations	(2,258)	(603)	(7,340)	1,637
Balance at the end of the period	16,596	25,140	16,596	25,140
Commercial Real Estate:Other Construction and Land Development
Allowance for probable loan losses
Balance at the beginning of the period	11,798	13,789	11,675	13,889
Losses charged to allowance			(1)
Recoveries credited to allowance	2	2	4	3
Net (losses) recoveries charged to allowance	2	2	3	3
Provision charged to operations	2,903	(542)	3,025	(643)
Balance at the end of the period	14,703	13,249	14,703	13,249
Commercial Real Estate: Farmland and Commercial
Allowance for probable loan losses
Balance at the beginning of the period	24,803	16,721	16,663	16,731
Losses charged to allowance	(70)	(40)	(70)	(40)
Recoveries credited to allowance	192	89	210	147
Net (losses) recoveries charged to allowance	122	49	140	107
Provision charged to operations	(6,629)	702	1,493	634
Balance at the end of the period	18,296	17,472	18,296	17,472
Commercial Real Estate: Multifamily
Allowance for probable loan losses
Balance at the beginning of the period	947	818	1,109	806
Provision charged to operations	627	179	465	191
Balance at the end of the period	1,574	997	1,574	997
Residential First Lien
Allowance for probable loan losses
Balance at the beginning of the period	3,006	2,391	2,950	2,455
Losses charged to allowance	(30)	(30)	(44)	(61)
Recoveries credited to allowance	1	2	2	7
Net (losses) recoveries charged to allowance	(29)	(28)	(42)	(54)
Provision charged to operations	614	(49)	683	(87)
Balance at the end of the period	3,591	2,314	3,591	2,314
Residential Junior Lien
Allowance for probable loan losses
Balance at the beginning of the period	4,689	3,186	6,103	3,716
Losses charged to allowance	(9)	(33)	(39)	(138)
Recoveries credited to allowance	229	73	295	97
Net (losses) recoveries charged to allowance	220	40	256	(41)
Provision charged to operations	1,884	1,131	434	682
Balance at the end of the period	6,793	4,357	6,793	4,357
Consumer
Allowance for probable loan losses
Balance at the beginning of the period	437	504	440	531
Losses charged to allowance	(65)	(39)	(182)	(160)
Recoveries credited to allowance	15	13	27	29
Net (losses) recoveries charged to allowance	(50)	(26)	(155)	(131)
Provision charged to operations	63	10	165	88
Balance at the end of the period	450	488	450	488
Foreign
Allowance for probable loan losses
Balance at the beginning of the period	783	924	842	884
Recoveries credited to allowance	1	1	1	15
Net (losses) recoveries charged to allowance	1	1	1	15
Provision charged to operations	66	(23)	7	3
Balance at the end of the period	$ 850	$ 902	$ 850	$ 902

Allowance for Probable Loan L31

Allowance for Probable Loan Losses (Impairment By Loan Class) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	$ 35,440	$ 63,204
Loans Individually Evaluated for Impairment, Allowance	576	434
Loans Collectively Evaluated for Impairment, Recorded Investment	6,403,980	6,284,968
Loans Collectively Evaluated for Impairment, Allowance	62,277	67,253
Commercial
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	17,933	17,947
Loans Individually Evaluated for Impairment, Allowance	460	300
Loans Collectively Evaluated for Impairment, Recorded Investment	1,072,061	1,068,520
Loans Collectively Evaluated for Impairment, Allowance	16,136	27,605
Commercial Real Estate:Other Construction and Land Development
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	2,166	2,455
Loans Individually Evaluated for Impairment, Allowance	116	116
Loans Collectively Evaluated for Impairment, Recorded Investment	1,779,787	1,681,095
Loans Collectively Evaluated for Impairment, Allowance	14,587	11,559
Commercial Real Estate: Farmland and Commercial
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	6,020	33,123
Loans Individually Evaluated for Impairment, Allowance		18
Loans Collectively Evaluated for Impairment, Recorded Investment	2,011,747	2,010,162
Loans Collectively Evaluated for Impairment, Allowance	18,296	16,645
Commercial Real Estate: Multifamily
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	664	476
Loans Collectively Evaluated for Impairment, Recorded Investment	212,916	192,440
Loans Collectively Evaluated for Impairment, Allowance	1,574	1,109
Residential First Lien
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	6,387	6,852
Loans Collectively Evaluated for Impairment, Recorded Investment	420,951	425,925
Loans Collectively Evaluated for Impairment, Allowance	3,591	2,950
Residential Junior Lien
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	799	723
Loans Collectively Evaluated for Impairment, Recorded Investment	708,784	700,025
Loans Collectively Evaluated for Impairment, Allowance	6,793	6,103
Consumer
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	1,141	1,281
Loans Collectively Evaluated for Impairment, Recorded Investment	46,606	48,262
Loans Collectively Evaluated for Impairment, Allowance	450	440
Foreign
Loan loss allowances, impaired financing receivable, evaluated individually or collectively
Loans Individually Evaluated for Impairment, Recorded Investment	330	347
Loans Collectively Evaluated for Impairment, Recorded Investment	151,128	158,539
Loans Collectively Evaluated for Impairment, Allowance	$ 850	$ 842

Allowance for Probable Loan L32

Allowance for Probable Loan Losses (Non-accrual Basis By Loan Class) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Loan loss allowances, financing receivable past due
Non-accrual loans, total	$ 27,270	$ 54,730
Commercial
Loan loss allowances, financing receivable past due
Non-accrual loans, total	17,896	17,909
Commercial Real Estate:Other Construction and Land Development
Loan loss allowances, financing receivable past due
Non-accrual loans, total	2,166	2,455
Commercial Real Estate: Farmland and Commercial
Loan loss allowances, financing receivable past due
Non-accrual loans, total	6,020	33,123
Commercial Real Estate: Multifamily
Loan loss allowances, financing receivable past due
Non-accrual loans, total	664	476
Residential First Lien
Loan loss allowances, financing receivable past due
Non-accrual loans, total	485	712
Residential Junior Lien
Loan loss allowances, financing receivable past due
Non-accrual loans, total		11
Consumer
Loan loss allowances, financing receivable past due
Non-accrual loans, total	$ 39	$ 44

Allowance for Probable Loan L33

Allowance for Probable Loan Losses (Impaired Loans) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Interest Recognized
Total trouble debt restructuring	$ 14,874		$ 14,874		$ 15,346
Period of time for determining the historical charge-off experience			3 years
Period of charge off for past due unsecured commercial loans			90 days
Class of Financing Receivable
Recorded investment:
Total impaired loans with related allowance	1,544		$ 1,544		1,894
Total impaired loans with no related allowance	33,896		33,896		61,310
Unpaid principal balance:
Total impaired loans with an allowance recorded	2,161		2,161		2,336
Total impaired loans with no related allowance recorded	62,218		62,218		89,664
Related Allowance	576		576		434
Average recorded investment:
Total impaired loans with an allowance recorded	1,747	$ 3,233	1,805	$ 3,758	1,985
Total impaired loans with no related allowance recorded	64,903	41,202	65,399	42,196	40,450
Interest Recognized
Total impaired loans with no related allowance recorded	94	128	184	250	547
Commercial
Interest Recognized
Total trouble debt restructuring	6,742		6,742		6,910
Commercial | Class of Financing Receivable
Recorded investment:
Total impaired loans with related allowance	1,402		1,402
Total impaired loans with no related allowance	16,531		16,531		16,646
Unpaid principal balance:
Total impaired loans with an allowance recorded	1,992		1,992
Total impaired loans with no related allowance recorded	43,980		43,980		44,095
Related Allowance	460		460
Average recorded investment:
Total impaired loans with an allowance recorded	1,604	1,152	1,661	1,158
Total impaired loans with no related allowance recorded	16,594	20,005	16,738	20,463	19,354
Interest Recognized
Total impaired loans with no related allowance recorded	1	1	1	1	3
Commercial Real Estate:Other Construction and Land Development | Class of Financing Receivable
Recorded investment:
Total impaired loans with related allowance	142		142		1,300
Total impaired loans with no related allowance	2,024		2,024		2,310
Unpaid principal balance:
Total impaired loans with an allowance recorded	169		169		1,577
Total impaired loans with no related allowance recorded	2,230		2,230		2,455
Related Allowance	116		116		300
Average recorded investment:
Total impaired loans with an allowance recorded	143	767	144	1,033	1,346
Total impaired loans with no related allowance recorded	2,148	2,482	2,216	2,610	2,336
Interest Recognized
Total impaired loans with no related allowance recorded					67
Commercial Real Estate: Farmland and Commercial | Class of Financing Receivable
Recorded investment:
Total impaired loans with related allowance					145
Total impaired loans with no related allowance	6,020		6,020		32,675
Unpaid principal balance:
Total impaired loans with an allowance recorded					169
Total impaired loans with no related allowance recorded	6,520		6,520		33,275
Related Allowance					116
Average recorded investment:
Total impaired loans with an allowance recorded		1,314		1,567	150
Total impaired loans with no related allowance recorded	36,790	8,532	36,686	8,774	8,523
Interest Recognized
Total impaired loans with no related allowance recorded		30		58	110
Commercial Real Estate: Multifamily | Class of Financing Receivable
Recorded investment:
Total impaired loans with related allowance					449
Total impaired loans with no related allowance	664		664		476
Unpaid principal balance:
Total impaired loans with an allowance recorded					590
Total impaired loans with no related allowance recorded	696		696		505
Related Allowance					18
Average recorded investment:
Total impaired loans with an allowance recorded					489
Total impaired loans with no related allowance recorded	664	521	568	530	401
Residential First Lien
Interest Recognized
Total trouble debt restructuring	5,902		5,902		6,140
Residential First Lien | Class of Financing Receivable
Recorded investment:
Total impaired loans with no related allowance	6,387		6,387		6,852
Unpaid principal balance:
Total impaired loans with no related allowance recorded	6,508		6,508		6,968
Average recorded investment:
Total impaired loans with no related allowance recorded	6,426	6,774	6,864	6,874	6,860
Interest Recognized
Total impaired loans with no related allowance recorded	76	81	152	159	298
Residential Junior Lien
Interest Recognized
Total trouble debt restructuring	799		799		712
Residential Junior Lien | Class of Financing Receivable
Recorded investment:
Total impaired loans with no related allowance	799		799		723
Unpaid principal balance:
Total impaired loans with no related allowance recorded	810		810		736
Average recorded investment:
Total impaired loans with no related allowance recorded	803	977	811	982	1,011
Interest Recognized
Total impaired loans with no related allowance recorded	12	12	22	23	52
Consumer
Interest Recognized
Total trouble debt restructuring	1,101		1,101		1,237
Consumer | Class of Financing Receivable
Recorded investment:
Total impaired loans with no related allowance	1,141		1,141		1,281
Unpaid principal balance:
Total impaired loans with no related allowance recorded	1,144		1,144		1,283
Average recorded investment:
Total impaired loans with no related allowance recorded	1,145	1,156	1,179	1,212	1,214
Interest Recognized
Total impaired loans with no related allowance recorded	1		2	1	1
Foreign
Interest Recognized
Total trouble debt restructuring	330		330		347
Foreign | Class of Financing Receivable
Recorded investment:
Total impaired loans with no related allowance	330		330		347
Unpaid principal balance:
Total impaired loans with no related allowance recorded	330		330		347
Average recorded investment:
Total impaired loans with no related allowance recorded	333	755	337	751	751
Interest Recognized
Total impaired loans with no related allowance recorded	$ 4	$ 4	$ 7	$ 8	$ 16

Allowance for Probable Loan L34

Allowance for Probable Loan Losses (Aging By Loan Class) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Financing receivable recorded investment
Past due	$ 50,877	$ 77,053
Past due 90 days or Greater and Still Accruing	8,885	7,257
Loans, current	6,388,543	6,271,119
Total loans	6,439,420	6,348,172
30 to 59 Days
Financing receivable recorded investment
Past due	13,551	15,855
60 to 89 Days
Financing receivable recorded investment
Past due	6,649	4,429
90 Days or Greater
Financing receivable recorded investment
Past due	30,677	56,769
Commercial
Financing receivable recorded investment
Past due	21,831	22,496
Past due 90 days or Greater and Still Accruing	618	537
Loans, current	1,068,163	1,063,971
Total loans	1,089,994	1,086,467
Commercial | 30 to 59 Days
Financing receivable recorded investment
Past due	3,192	3,790
Commercial | 60 to 89 Days
Financing receivable recorded investment
Past due	833	398
Commercial | 90 Days or Greater
Financing receivable recorded investment
Past due	17,806	18,308
Commercial Real Estate:Other Construction and Land Development
Financing receivable recorded investment
Past due	4,215	1,482
Past due 90 days or Greater and Still Accruing	2,638	6
Loans, current	1,777,738	1,682,068
Total loans	1,781,953	1,683,550
Commercial Real Estate:Other Construction and Land Development | 30 to 59 Days
Financing receivable recorded investment
Past due	639	354
Commercial Real Estate:Other Construction and Land Development | 60 to 89 Days
Financing receivable recorded investment
Past due	124	308
Commercial Real Estate:Other Construction and Land Development | 90 Days or Greater
Financing receivable recorded investment
Past due	3,452	820
Commercial Real Estate: Farmland and Commercial
Financing receivable recorded investment
Past due	8,799	35,576
Past due 90 days or Greater and Still Accruing	532	954
Loans, current	2,008,968	2,007,709
Total loans	2,017,767	2,043,285
Commercial Real Estate: Farmland and Commercial | 30 to 59 Days
Financing receivable recorded investment
Past due	2,069	3,925
Commercial Real Estate: Farmland and Commercial | 60 to 89 Days
Financing receivable recorded investment
Past due	3,336	518
Commercial Real Estate: Farmland and Commercial | 90 Days or Greater
Financing receivable recorded investment
Past due	3,394	31,133
Commercial Real Estate: Multifamily
Financing receivable recorded investment
Past due	855	560
Loans, current	212,725	192,356
Total loans	213,580	192,916
Commercial Real Estate: Multifamily | 30 to 59 Days
Financing receivable recorded investment
Past due	191	84
Commercial Real Estate: Multifamily | 90 Days or Greater
Financing receivable recorded investment
Past due	664	476
Residential First Lien
Financing receivable recorded investment
Past due	8,340	10,848
Past due 90 days or Greater and Still Accruing	4,053	3,861
Loans, current	418,998	421,929
Total loans	427,338	432,777
Residential First Lien | 30 to 59 Days
Financing receivable recorded investment
Past due	3,343	4,295
Residential First Lien | 60 to 89 Days
Financing receivable recorded investment
Past due	699	2,458
Residential First Lien | 90 Days or Greater
Financing receivable recorded investment
Past due	4,298	4,095
Residential Junior Lien
Financing receivable recorded investment
Past due	2,508	3,000
Past due 90 days or Greater and Still Accruing	994	1,099
Loans, current	707,075	697,748
Total loans	709,583	700,748
Residential Junior Lien | 30 to 59 Days
Financing receivable recorded investment
Past due	1,230	1,310
Residential Junior Lien | 60 to 89 Days
Financing receivable recorded investment
Past due	284	580
Residential Junior Lien | 90 Days or Greater
Financing receivable recorded investment
Past due	994	1,110
Consumer
Financing receivable recorded investment
Past due	638	1,126
Past due 90 days or Greater and Still Accruing	36	133
Loans, current	47,109	48,417
Total loans	47,747	49,543
Consumer | 30 to 59 Days
Financing receivable recorded investment
Past due	532	868
Consumer | 60 to 89 Days
Financing receivable recorded investment
Past due	51	98
Consumer | 90 Days or Greater
Financing receivable recorded investment
Past due	55	160
Foreign
Financing receivable recorded investment
Past due	3,691	1,965
Past due 90 days or Greater and Still Accruing	14	667
Loans, current	147,767	156,921
Total loans	151,458	158,886
Foreign | 30 to 59 Days
Financing receivable recorded investment
Past due	2,355	1,229
Foreign | 60 to 89 Days
Financing receivable recorded investment
Past due	1,322	69
Foreign | 90 Days or Greater
Financing receivable recorded investment
Past due	$ 14	$ 667

Allowance for Probable Loan L35

Allowance for Probable Loan Losses (Portfolio Credit Quality By Loan Class) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Loan portfolio by credit quality indicator
Portfolio, total	$ 6,439,420	$ 6,348,172
Pass
Loan portfolio by credit quality indicator
Portfolio, total	6,021,949	5,911,001
Special Review
Loan portfolio by credit quality indicator
Portfolio, total	58,494	6,612
Watch List - Pass
Loan portfolio by credit quality indicator
Portfolio, total	48,585	45,662
Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total	274,952	321,693
Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	35,440	63,204
Commercial
Loan portfolio by credit quality indicator
Portfolio, total	1,089,994	1,086,467
Commercial | Pass
Loan portfolio by credit quality indicator
Portfolio, total	951,055	905,707
Commercial | Special Review
Loan portfolio by credit quality indicator
Portfolio, total	256
Commercial | Watch List - Pass
Loan portfolio by credit quality indicator
Portfolio, total	1,034	3,170
Commercial | Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total	119,716	159,643
Commercial | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	17,933	17,947
Commercial Real Estate:Other Construction and Land Development
Loan portfolio by credit quality indicator
Portfolio, total	1,781,953	1,683,550
Commercial Real Estate:Other Construction and Land Development | Pass
Loan portfolio by credit quality indicator
Portfolio, total	1,715,667	1,616,604
Commercial Real Estate:Other Construction and Land Development | Special Review
Loan portfolio by credit quality indicator
Portfolio, total	1,115	1,288
Commercial Real Estate:Other Construction and Land Development | Watch List - Pass
Loan portfolio by credit quality indicator
Portfolio, total	7,169	672
Commercial Real Estate:Other Construction and Land Development | Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total	55,836	62,531
Commercial Real Estate:Other Construction and Land Development | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	2,166	2,455
Commercial Real Estate: Farmland and Commercial
Loan portfolio by credit quality indicator
Portfolio, total	2,017,767	2,043,285
Commercial Real Estate: Farmland and Commercial | Pass
Loan portfolio by credit quality indicator
Portfolio, total	1,817,420	1,863,763
Commercial Real Estate: Farmland and Commercial | Special Review
Loan portfolio by credit quality indicator
Portfolio, total	57,123	5,134
Commercial Real Estate: Farmland and Commercial | Watch List - Pass
Loan portfolio by credit quality indicator
Portfolio, total	39,372	41,820
Commercial Real Estate: Farmland and Commercial | Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total	97,832	99,445
Commercial Real Estate: Farmland and Commercial | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	6,020	33,123
Commercial Real Estate: Multifamily
Loan portfolio by credit quality indicator
Portfolio, total	213,580	192,916
Commercial Real Estate: Multifamily | Pass
Loan portfolio by credit quality indicator
Portfolio, total	211,972	192,440
Commercial Real Estate: Multifamily | Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total	944
Commercial Real Estate: Multifamily | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	664	476
Residential First Lien
Loan portfolio by credit quality indicator
Portfolio, total	427,338	432,777
Residential First Lien | Pass
Loan portfolio by credit quality indicator
Portfolio, total	420,198	425,811
Residential First Lien | Special Review
Loan portfolio by credit quality indicator
Portfolio, total		40
Residential First Lien | Watch List - Pass
Loan portfolio by credit quality indicator
Portfolio, total	129
Residential First Lien | Watch List - Substandard
Loan portfolio by credit quality indicator
Portfolio, total	624	74
Residential First Lien | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	6,387	6,852
Residential Junior Lien
Loan portfolio by credit quality indicator
Portfolio, total	709,583	700,748
Residential Junior Lien | Pass
Loan portfolio by credit quality indicator
Portfolio, total	707,903	699,875
Residential Junior Lien | Special Review
Loan portfolio by credit quality indicator
Portfolio, total		150
Residential Junior Lien | Watch List - Pass
Loan portfolio by credit quality indicator
Portfolio, total	881
Residential Junior Lien | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	799	723
Consumer
Loan portfolio by credit quality indicator
Portfolio, total	47,747	49,543
Consumer | Pass
Loan portfolio by credit quality indicator
Portfolio, total	46,606	48,262
Consumer | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	1,141	1,281
Foreign
Loan portfolio by credit quality indicator
Portfolio, total	151,458	158,886
Foreign | Pass
Loan portfolio by credit quality indicator
Portfolio, total	151,128	158,539
Foreign | Watch - List Impaired
Loan portfolio by credit quality indicator
Portfolio, total	$ 330	$ 347

Stock Options (Details)

Stock Options (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Apr. 05, 2012
Stock options under 2012 Plan
Stock option details
Shares available for future grants	2,500		2,500		800,000
Maximum exercisable period for options granted			10 years
Stock option activity
Options outstanding at the beginning of the period (in shares)			668,166
Plus: Options granted (in shares)			229,700
Less:
Options exercised (in shares)			46,351
Options forfeited (in shares)			15,800
Options outstanding at the end of the period (in shares)	835,715		835,715
Options fully vested and exercisable at the end of the period (in shares)	327,341		327,341
Stock Options, Weighted average exercise price
Options outstanding at the beginning, weighted average exercise price (in dollars per share)			$ 20.41
Plus: Options granted, weighted average exercise price (in dollars per share)			38.30
Less:
Options exercised, weighted average exercise price (in dollars per share)			17.50
Options forfeited, weighted average exercise price (in dollars per share)			18.58
Options outstanding at the end, weighted average exercise price (in dollars per share)	$ 25.53		25.53
Options fully vested and exercisable at the end, weighted average exercise price (in dollars per share)	$ 19.64		$ 19.64
Stock Options, Weighted average remaining contractual term (years)
Options outstanding at the end, weighted average remaining contractual term (years)			6 years 5 months 9 days
Options fully vested and exercisable at the end, weighted average remaining contractual term (years)			4 years 6 months 22 days
Stock Options, Aggregate intrinsic value
Options outstanding at the end, aggregate intrinsic value	$ 14,436,000		$ 14,436,000
Options fully vested and exercisable at the end, aggregate intrinsic value	7,582,000		7,582,000
Stock-based compensation expense	285,000	$ 216,000	470,000	$ 484,000
Stock-based compensation cost, unrecognized, related to non-vested options	$ 3,316,000		$ 3,316,000
Stock-based compensation cost, unrecognized, related to non-vested options, weighted-average period of recognition			1 year 10 months 24 days
Incentive stock options granted to 10% shareholders
Stock option details
Maximum exercisable period for options granted			5 years

Investment Securities and Equ37

Investment Securities and Equity Securities with Readily Determinable Fair Values (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Held-to-maturity securities
Amortized cost	$ 2,400,000	$ 2,400,000
Estimated fair value	2,400,000	2,400,000
Carrying Value	2,400,000	2,400,000
Available-for-sale securities
Amortized cost, Available-for-sale securities	3,822,194,000	4,196,263,000
Gross Unrealized Gains	14,004,000
Gross Unrealized Losses	(115,632,000)
Available for sale debt securities	3,720,566,000	4,124,185,000
Equity Securities	27,054,000	27,885,000
Total Amortized cost		4,196,263,000
Total Gross unrealized gains		22,274,000
Total Gross unrealized losses		66,467,000
Assets/liabilities measured at fair value
Available-for-sale securities
Available for sale debt securities	3,720,566,000
Available for sale debt securities and equity securities		4,152,070,000
Carrying Value
Available-for-sale securities
Available for sale debt securities	3,720,566,000
Available for sale debt securities and equity securities		4,152,070,000
Residential mortgage-backed securities
Available-for-sale securities
Amortized cost, Available-for-sale securities	3,615,831,000	3,943,092,000
Gross Unrealized Gains	9,299,000	14,110,000
Gross Unrealized Losses	(115,487,000)	(65,969,000)
Residential mortgage-backed securities | Assets/liabilities measured at fair value
Available-for-sale securities
Available for sale debt securities	3,509,643,000	3,891,233,000
Residential mortgage-backed securities | Carrying Value
Available-for-sale securities
Available for sale debt securities	3,509,643,000	3,891,233,000
Mortgage-backed securities by Ginnie Mae
Available-for-sale securities
Available for sale debt securities	571,385,000	654,063,000
Mortgage-backed securities by Fannie Mae and Freddie Mac
Available-for-sale securities
Available for sale debt securities	2,938,258,000	3,237,170,000
Obligations of states and political subdivisions
Available-for-sale securities
Amortized cost, Available-for-sale securities	206,363,000	225,096,000
Gross Unrealized Gains	4,705,000	7,871,000
Gross Unrealized Losses	(145,000)	(16,000)
Obligations of states and political subdivisions | Assets/liabilities measured at fair value
Available-for-sale securities
Available for sale debt securities	210,923,000	232,951,000
Obligations of states and political subdivisions | Carrying Value
Available-for-sale securities
Available for sale debt securities	210,923,000	232,951,000
Other securities
Held-to-maturity securities
Amortized cost	2,400,000	2,400,000
Estimated fair value	2,400,000	2,400,000
Carrying Value	$ 2,400,000	2,400,000
Equity securities
Available-for-sale securities
Gross Unrealized Gains		293,000
Amortized Cost, Equity securities		28,075,000
Gross Unrealized Losses, Equity securities		(482,000)
Equity securities | Assets/liabilities measured at fair value
Available-for-sale securities
Equity Securities		27,886,000
Equity securities | Carrying Value
Available-for-sale securities
Equity Securities		$ 27,886,000

Investment Securities and Equ38

Investment Securities and Equity Securities with Readily Determinable Fair Values (Contractual Maturities and Estimated Fair Values) (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Held-to-maturity debt securities amortized cost disclosures
Due in one year or less, held-to-maturity debt securities amortized cost	$ 1,200,000		$ 1,200,000
Due after one year through five years, held-to-maturity debt securities amortized cost	1,200,000		1,200,000
Amortized cost, held-to-maturity debt securities	2,400,000		2,400,000		$ 2,400,000
Held-to-maturity debt securities, Estimated fair value disclosures
Due in one year or less, held-to-maturity debt securities, Estimated fair value	1,200,000		1,200,000
Due after one year through five years, held-to-maturity debt securities, Estimated fair value	1,200,000		1,200,000
Estimated fair value	2,400,000		2,400,000		2,400,000
Available-for-sale debt securities amortized cost disclosures
Due after five years through ten years, available-for-sale debt securities amortized cost	1,720,000		1,720,000
Due after ten years, available-for-sale debt securities amortized cost	204,643,000		204,643,000
Residential mortgage-backed securities, amortized cost	3,615,831,000		3,615,831,000
Amortized cost, Available-for-sale securities	3,822,194,000		3,822,194,000		4,196,263,000
Available for sale debt securities, Estimated Fair Value Disclosures
Due after five years through ten years, available-for-sale debt securities, Estimated Fair Value	1,736,000		1,736,000
Due after ten years, available-for-sale debt securities, Estimated Fair Value	209,187,000		209,187,000
Residential mortgage-backed securities, Estimated Fair Value	3,509,643,000		3,509,643,000
Estimated fair value, Available for sale securities	3,720,566,000		3,720,566,000		$ 4,124,185,000
Amortized cost of available for sale investment securities pledged	1,221,859,000		1,221,859,000
Fair value of available for sale investment securities pledged	1,179,583,000		1,179,583,000
Proceeds from sales and calls of available for sale securities	0	$ 150,634,000	18,145,000	$ 272,184,000
Proceeds from sales of mortgage-backed securities	0	150,634,000	0	266,967,000
Gross gains realized on sales	0	10,000	0	1,186,000
Gross losses realized on sales	$ 0	$ 2,549,000	$ 0	$ 2,798,000

Investment Securities and Equ39

Investment Securities and Equity Securities with Readily Determinable Fair Values (Fair Value and Gross Unrealized Loss) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Available for sale:
Fair value, less than 12 months	$ 1,016,021
Marketable securities, less than 12 months		$ 1,078,610
Unrealized losses, less than 12 Months	(23,849)
Marketable securities, less than 12 Months		(13,417)
Fair value, 12 months or more	2,047,918
Marketable securities, 12 months or more		2,037,996
Unrealized losses, 12 Months or More	91,783
Marketable securities		53,050
Fair value, Total	3,063,939
Marketable securities, Total		3,116,606
Unrealized losses, Total	115,632
Marketable securities, Total		66,467
Residential mortgage-backed securities
Available for sale:
Fair value, less than 12 months	1,000,142	1,061,577
Unrealized losses, less than 12 Months	(23,712)	(13,157)
Fair value, 12 months or more	2,047,402	2,029,455
Unrealized losses, 12 Months or More	91,775	52,812
Fair value, Total	3,047,544	3,091,032
Unrealized losses, Total	115,487	65,969
Obligations of states and political subdivisions
Available for sale:
Fair value, less than 12 months	15,879	5,534
Unrealized losses, less than 12 Months	(137)	(9)
Fair value, 12 months or more	516	522
Unrealized losses, 12 Months or More	8	7
Fair value, Total	16,395	6,056
Unrealized losses, Total	$ 145	16
Equity securities
Available for sale:
Equity Securities, less than 12 months		11,499
Equity Securities, less than 12 Months		(251)
Equity Securities, 12 months or more		8,019
Equity Securities		231
Equity Securities, Total		19,518
Equity securities		$ 482

Investment Securities and Equ40

Investment Securities and Equity Securities with Readily Determinable Fair Values (Unrealized and realized gains and losses recognized in net income on equity securities ) (Details) - USD ($)	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Investment Securities and Equity Securities with Readily Determinable Fair Values
Equity Securities	$ 27,054,000	$ 27,054,000	$ 27,885,000
Summary of unrealized and realized gains and losses recognized in net income on equity securities
Net losses recognized during the period on equity securities	(247,000)	(1,021,000)
Unrealized losses recognized during the reporting period on equity securities still held at the reporting date	$ (247,000)	$ (1,021,000)

Other Borrowed Funds (Details)

Other Borrowed Funds (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Federal Home Loan Bank advances
Other borrowed funds	$ 852,950,000	$ 1,195,225,000
Percentage of decrease in other borrowed funds	28.60%

Junior Subordinated Deferrable

Junior Subordinated Deferrable Interest Debentures (Details)	6 Months Ended
	Jun. 30, 2018USD ($)item	Dec. 31, 2017USD ($)
Junior subordinated deferrable interest debentures, major types of business trusts
Number of statutory business trusts issuing trust preferred securities | item	6
Junior subordinated deferrable interest debentures	$ 160,416,000	$ 160,416,000
Maximum number of consecutive quarterly period available for deferral of interest payment on Trusts VI, VIII, IX, X, XI and XII | item	20
Percentage of capital securities issued by trust qualifying as Tier I capital, maximum	25.00%
Percentage of capital securities issued by trust qualifying as Tier II capital, minimum	25.00%
Capital securities issued by the trust, qualifying as Tier I capital	$ 160,416,000	$ 160,416,000
Trust XI
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	25,990,000
Trust X
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 21,021,000

Junior Subordinated Deferrabl43

Junior Subordinated Deferrable Interest Debentures (Key Information) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 160,416	$ 160,416
Trust VI
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 25,774
Interest rate (as a percent)	5.79%
Interest rate index	LIBOR
Spread on interest rate index (as a percent)	3.45%
Trust VIII
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 25,774
Interest rate (as a percent)	5.40%
Interest rate index	LIBOR
Spread on interest rate index (as a percent)	3.05%
Trust IX
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 41,238
Interest rate (as a percent)	3.93%
Interest rate index	LIBOR
Spread on interest rate index (as a percent)	1.62%
Trust X
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 21,021
Interest rate (as a percent)	4.01%
Interest rate index	LIBOR
Spread on interest rate index (as a percent)	1.65%
Trust XI
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 25,990
Interest rate (as a percent)	3.93%
Interest rate index	LIBOR
Spread on interest rate index (as a percent)	1.62%
Trust XII
Junior subordinated deferrable interest debentures, major types of business trusts
Junior subordinated deferrable interest debentures	$ 20,619
Interest rate (as a percent)	3.75%
Interest rate index	LIBOR
Spread on interest rate index (as a percent)	1.45%

Common Stock and Dividends (Det

Common Stock and Dividends (Details) - USD ($)	Aug. 03, 2018	Apr. 16, 2018	Oct. 16, 2017	Apr. 17, 2017	Apr. 09, 2017	Apr. 30, 2009	Jun. 30, 2018	Apr. 03, 2018
Common Stock and Dividends
Warrants to purchase entity's common stock (in shares)							1,326,238
Warrants, exercise price (in dollars per share)							$ 24.43
Warrants, term							10 years
Maximum cash dividend paid in semi-annual period (in dollars per share)							$ 0.33
Cash dividends paid to common shareholders (in dollars per share)		$ 0.33	$ 0.33	$ 0.33
Repurchase of common stock, authorized amount						$ 40,000,000		$ 40,000,000
Period of repurchase of common stock					12 months	12 months
Cumulative number of shares repurchased under all stock repurchase programs	9,246,956
Cumulative cost of shares repurchased under all stock repurchase programs	$ 271,347,000

Commitments, Contingent Liabi45

Commitments, Contingent Liabilities and Other Tax Matters (Details) - USD ($)	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Commitments, Contingent Liabilities and Other Tax Matters
Effective tax rate (in percent)		21.00%
Net benefit included as a reduction to income tax expense			$ 3,168,000
Adjustments to the revalued carrying value for deferred tax assets or liabilities	$ 0	$ 0

Capital Ratios (Details)

Capital Ratios (Details) - USD ($) $ in Thousands	Jan. 01, 2016	Jun. 30, 2018	May 24, 2018	Dec. 31, 2017	Dec. 31, 2016	Jul. 31, 2013
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)		20.04%		19.51%
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	0.625%				2.50%
Amount of assets to exempt banks		$ 11,988,995		$ 12,184,698
CET 1 ratio		17.75%		17.11%
Tier 1 capital (to Average Assets), Actual Ratio (as a percent)		15.32%		14.62%
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent)		19.32%		18.73%		6.00%
Term of mandatory compliance	4 years
Minimum
Community bank leverage ratio			8.00%
CET 1 ratio		7.00%
Tier 1 capital (to Risk Weighted Assets), Actual Ratio (as a percent)					4.50%	4.00%
Maximum
Amount of assets to exempt banks			$ 10,000,000
Community bank leverage ratio			10.00%