Loans and Allowance for Loan Losses | 3. Loans and Allowance for Loan Losses Loans, net of unearned income, consisted of the following. (in thousands) June 30, 2015 December 31, Originated loans: Commercial non-real estate $ 6,058,998 $ 5,917,728 Construction and land development 1,100,788 1,073,964 Commercial real estate 2,591,384 2,428,195 Residential mortgages 1,784,730 1,704,770 Consumer 1,854,591 1,685,542 Total originated loans $ 13,390,491 $ 12,810,199 Acquired loans: Commercial non-real estate $ 120,020 $ 120,137 Construction and land development 9,064 21,123 Commercial real estate 598,962 688,045 Residential mortgages 1,554 2,378 Consumer 24 985 Total acquired loans $ 729,624 $ 832,668 FDIC acquired loans: Commercial non-real estate $ 6,666 $ 6,195 Construction and land development 11,095 11,674 Commercial real estate 22,487 27,808 Residential mortgages 169,553 187,033 Consumer 14,836 19,699 Total FDIC acquired loans $ 224,637 $ 252,409 Total loans: Commercial non-real estate $ 6,185,684 $ 6,044,060 Construction and land development 1,120,947 1,106,761 Commercial real estate 3,212,833 3,144,048 Residential mortgages 1,955,837 1,894,181 Consumer 1,869,451 1,706,226 Total loans $ 14,344,752 $ 13,895,276 The following briefly describes the distinction among originated, acquired and FDIC acquired loans and certain significant accounting policies relevant to each category. Originated loans Loans reported as “originated” include both loans and leases originated for investment and acquired-performing loans where the discount (premium) has been fully accreted (amortized). Originated loans are reported at the principal balance outstanding, net of unearned income. Interest on loans and accretion of unearned income, including deferred loan fees, are computed in a manner that approximates a level yield on recorded principal. Interest on loans is recognized in income as earned. The accrual of interest on an originated loan is discontinued when, in management’s opinion, it is probable that the borrower will be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. When accrual of interest is discontinued on a loan, all unpaid accrued interest is reversed and payments subsequently received are applied first to recover principal. Interest income is recognized for payments received after contractual principal has been satisfied. Loans are returned to accrual status when all the principal and interest contractually due are brought current and future payment performance is reasonably assured. Acquired loans Loans reported as “acquired” are those loans that were purchased in the 2011 Whitney Holding Corporation acquisition. These loans were recorded at estimated fair value at the acquisition date with no carryover of the related allowance for loan losses. The Whitney acquired loans were segregated between those considered to be performing (“acquired-performing”) and those with evidence of credit deterioration (“acquired-impaired”) based on such factors as past due status, nonaccrual status and credit risk ratings (rated substandard or worse). The acquired loans were further segregated into loan pools designed to facilitate the development of expected cash flows to be used in estimating fair value for purchase accounting. Acquired-performing loans are accounted for under ASC 310-20 and acquired-impaired loans are accounted for under ASC 310-30. Acquired-performing loans were segregated into pools based on common risk characteristics such as loan type, credit risk ratings, and contractual interest rate and repayment terms. The major loan types included commercial and industrial loans not secured by real estate, real estate construction and land development loans, commercial real estate loans, residential mortgage loans, and consumer loans, with further segregation within certain loan types as needed. Expected cash flows, both principal and interest, from each pool were estimated based on key assumptions covering such factors as prepayments, default rates, and severity of loss given a default. These assumptions were developed using both historical experience and the portfolio characteristics at acquisition as well as available market research. The fair value for each acquired-performing pool was based on the estimate of expected cash flows from the pool discounted at prevailing market rates. The difference at the acquisition date between the fair value and the contractual amounts due of an acquired-performing loan pool (the “fair value discount”) is accreted into income over the estimated life of the pool. Acquired-performing loans are placed on nonaccrual status and reported as nonperforming or past due using the same criteria applied to the originated portfolio. The acquired-impaired loans were segregated into pools by identifying loans with common credit risk profiles and were based primarily on characteristics such as loan type and market area in which originated. The major loan types included commercial and industrial loans not secured by real estate, real estate construction and land development loans, commercial real estate loans, and residential mortgage loans, with further segregation within certain loan types as needed. The acquired-impaired loans were further disaggregated by geographic region in recognition of the differences in general economic conditions affecting borrowers in certain states. The fair value estimate for each pool of acquired-impaired loans was based on the estimate of expected cash flows from the pool discounted at prevailing market rates. The excess of estimated cash flows expected to be collected from an acquired-impaired loan pool over the pool’s carrying value is referred to as the accretable yield and is recognized in interest income using an effective yield method over the expected life of the loan pool. Each pool of acquired-impaired loans is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flows. Acquired-impaired loans in pools with an accretable yield and expected cash flows that are reasonably estimable are considered to be accruing and performing even though collection of contractual payments on loans within the pool may be in doubt, because the pool is the unit of accounting. Acquired-impaired loans are generally not subject to individual evaluation for impairment and are not reported with impaired loans or troubled debt restructurings even if they would otherwise qualify for such treatment. FDIC acquired loans and the related loss share receivable Loans reported as “FDIC acquired” are loans purchased in the 2009 acquisition of Peoples First Community Bank (“Peoples First”) that were covered by two loss share agreements between the FDIC and the Company. These loans are accounted for as acquired-impaired loans as described above in the section on acquired loans. The Company treated all loans for the Peoples First acquisition as impaired based on the significant amount of deteriorating and nonperforming loans, comprised mainly of adjustable rate mortgages and home equity loans, located in Florida. The loss share receivable is measured separately from the related covered loans as it is not contractually embedded in the loans and is not transferrable should the loans be sold. The fair value of the loss share receivable at acquisition was estimated by discounting expected reimbursements for losses from the loans covered by the loss share agreements, including appropriate consideration of possible true-up payments to the FDIC at the expiration of the agreements. The loss share receivable is reviewed and updated prospectively as loss estimates related to covered loan pools change. Increases in expected reimbursements under the loss sharing agreement will lead to an increase in the loss share receivable. A decrease in expected reimbursements is reflected first as a reversal of any previously recorded increase in the loss share receivable on the covered loan pool with the remainder reflected as an increase in the loss share receivable’s amortization rate. Increases and decreases in the loss share receivable related to changes in loss estimates result in reductions in or additions to the provision for loan losses, which serves to offset the impact on the provision from impairments or impairment reversals recognized on the underlying covered loan pool. The excess (or shortfall) of expected claims compared to the carrying value of the loss share receivable is accreted (amortized) into noninterest income over the shorter of the remaining life of the covered loan pool or the life of the loss share agreement. The impact on operations of an increase in the loss share receivable’s amortization rate is associated with an increase in the accretable yield on the underlying loan pool. The loss share receivable is reduced as cash is received from the FDIC related to losses incurred on covered assets. The following schedule shows activity in the loss share receivable for the six months ended June 30, 2015 and 2014. Six Months Ended (in thousands) June 30, June 30, Balance, January 1 $ 60,272 $ 113,834 Amortization (2,470 ) (7,229 ) Charge-offs, write-downs and other recoveries (4,667 ) (1,048 ) External expenses qualifying under loss share agreement 482 2,841 Changes due to changes in cash flow projections (2,536 ) (7,875 ) Settlement of disallowed loss claims (1,854 ) (10,268 ) Net payments from FDIC (14,153 ) — Ending balance $ 35,074 $ 90,255 The loss share agreement covering the non-single family FDIC acquired portfolio expired in December 2014. The loss share agreement covering the single family portfolio expires in December 2019. The following schedule shows activity in the allowance for loan losses by portfolio segment for the six months ended June 30, 2015 and 2014 as well as the corresponding recorded investment in loans at the end of each period. (in thousands) Commercial non-real estate Construction Commercial Residential Consumer Total Six Months Ended June 30, 2015 Originated loans Allowance for loan losses: Beginning balance $ 50,258 $ 5,413 $ 16,544 $ 8,051 $ 17,435 $ 97,701 Charge-offs (2,215 ) (828 ) (525 ) (1,292 ) (6,729 ) (11,589 ) Recoveries 2,051 1,308 426 449 2,491 6,725 Net provision for loan losses 9,586 (982 ) 1,217 62 4,091 13,974 Ending balance $ 59,680 $ 4,911 $ 17,662 $ 7,270 $ 17,288 $ 106,811 Ending balance: Individually evaluated for impairment $ 2,903 $ 73 $ 2,203 $ 163 $ 6 $ 5,348 Collectively evaluated for impairment 56,777 4,838 15,459 7,107 17,282 101,463 Loans: Ending balance: $ 6,058,998 $ 1,100,788 $ 2,591,384 $ 1,784,730 $ 1,854,591 $ 13,390,491 Individually evaluated for impairment 32,379 4,360 31,840 1,369 116 70,064 Collectively evaluated for impairment 6,026,619 1,096,428 2,559,544 1,783,361 1,854,475 13,320,427 Acquired loans Allowance for loan losses: Beginning balance $ — $ — $ 477 $ — $ — $ 477 Charge-offs — — — — — — Recoveries — — — — — — Net provision for loan losses — — (263 ) — — (263 ) Ending balance $ — $ — $ 214 $ — $ — $ 214 Ending balance: Individually evaluated for impairment $ — $ — $ 214 $ — $ — $ 214 Amounts related to acquired-impaired loans — — — — — — Collectively evaluated for impairment — — — — — — Loans: Ending balance: $ 120,020 $ 9,064 $ 598,962 $ 1,554 $ 24 $ 729,624 Individually evaluated for impairment — — 2,543 — — 2,543 Acquired-impaired loans 7,001 8,370 17,851 1,554 24 34,800 Collectively evaluated for impairment 113,019 694 578,568 — — 692,281 (in thousands) Commercial non-real estate Construction Commercial Residential Consumer Total Six Months Ended June 30, 2015 FDIC acquired loans Allowance for loan losses: Beginning balance $ 911 $ 1,008 $ 4,061 $ 20,609 $ 3,995 $ 30,584 Charge-offs (1,099 ) (285 ) (2,368 ) (168 ) (140 ) (4,060 ) Recoveries 14 406 465 2 136 1,023 Net provision for loan losses 242 (211 ) (78 ) (682 ) (220 ) (949 ) Increase (decrease) in FDIC loss share receivable 575 (528 ) 532 (2,342 ) (773 ) (2,536 ) Ending balance $ 643 $ 390 $ 2,612 $ 17,419 $ 2,998 $ 24,062 Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Amounts related to acquired-impaired loans 643 390 2,612 17,419 2,998 24,062 Collectively evaluated for impairment — — — — — — Loans: Ending balance: $ 6,666 $ 11,095 $ 22,487 $ 169,553 $ 14,836 $ 224,637 Individually evaluated for impairment — — — — — — Acquired-impaired loans 6,666 11,095 22,487 169,553 14,836 224,637 Collectively evaluated for impairment — — — — — — Total loans Allowance for loan losses: Beginning balance $ 51,169 $ 6,421 $ 21,082 $ 28,660 $ 21,430 $ 128,762 Charge-offs (3,314 ) (1,113 ) (2,893 ) (1,460 ) (6,869 ) (15,649 ) Recoveries 2,065 1,714 891 451 2,627 7,748 Net provision for loan losses 9,828 (1,193 ) 876 (620 ) 3,871 12,762 Increase (decrease) in FDIC loss share receivable 575 (528 ) 532 (2,342 ) (773 ) (2,536 ) Ending balance $ 60,323 $ 5,301 $ 20,488 $ 24,689 $ 20,286 $ 131,087 Ending balance: Individually evaluated for impairment $ 2,903 $ 73 $ 2,417 $ 163 $ 6 $ 5,562 Amounts related to acquired-impaired loans 643 390 2,612 17,419 2,998 24,062 Collectively evaluated for impairment 56,777 4,838 15,459 7,107 17,282 101,463 Loans: Ending balance: $ 6,185,684 $ 1,120,947 $ 3,212,833 $ 1,955,837 $ 1,869,451 $ 14,344,752 Individually evaluated for impairment 32,379 4,360 34,383 1,369 116 72,607 Acquired-impaired loans 13,667 19,465 40,338 171,107 14,860 259,437 Collectively evaluated for impairment 6,139,638 1,097,122 3,138,112 1,783,361 1,854,475 14,012,708 Commercial non-real estate Construction Commercial Residential Consumer Total (In thousands) Six Months Ended June 30, 2014 Originated loans Allowance for loan losses: Beginning balance $ 33,091 $ 6,180 $ 20,649 $ 6,892 $ 12,073 $ 78,885 Charge-offs (3,658 ) (1,041 ) (1,373 ) (1,097 ) (7,622 ) (14,791 ) Recoveries 1,411 1,064 1,057 363 2,854 6,749 Net provision for loan losses 5,937 699 (5,060 ) 772 5,381 7,729 Ending balance $ 36,781 $ 6,902 $ 15,273 $ 6,930 $ 12,686 $ 78,572 Ending balance: Individually evaluated for impairment $ 640 $ 259 $ 116 $ 532 $ — $ 1,547 Collectively evaluated for impairment 36,141 6,643 15,157 6,398 12,686 77,025 Loans: Ending balance: $ 4,610,696 $ 903,610 $ 2,173,006 $ 1,469,977 $ 1,501,163 $ 10,658,452 Individually evaluated for impairment 6,765 6,702 11,198 2,532 — 27,197 Collectively evaluated for impairment 4,603,931 896,908 2,161,808 1,467,445 1,501,163 10,631,255 Acquired loans Allowance for loan losses: Beginning balance $ 1,603 $ 10 $ 34 $ — $ — $ 1,647 Charge-offs — — — — — — Recoveries — — — — — — Net provision for loan losses 6,135 210 630 14 311 7,300 Ending balance $ 7,738 $ 220 $ 664 $ 14 $ 311 $ 8,947 Ending balance: Individually evaluated for impairment $ 65 $ 24 $ 188 $ — $ — $ 277 Amounts related to acquired-impaired loans — — — — — — Collectively evaluated for impairment 7,673 196 476 14 311 8,670 Loans: Ending balance: $ 769,159 $ 119,847 $ 836,646 $ 111,724 $ 84,403 $ 1,921,779 Individually evaluated for impairment 1,957 739 2,280 — — 4,976 Acquired-impaired loans 17,410 18,976 27,993 4,547 1,057 69,983 Collectively evaluated for impairment 749,792 100,132 806,373 107,177 83,346 1,846,820 Commercial non-real estate Construction Commercial Residential Consumer Total (In thousands) Six Months Ended June 30, 2014 FDIC acquired loans Allowance for loan losses: Beginning balance $ 2,323 $ 2,655 $ 10,929 $ 27,989 $ 9,198 $ 53,094 Charge-offs (70 ) (624 ) (4,022 ) (730 ) (1,130 ) (6,576 ) Recoveries 451 896 1,371 19 148 2,885 Net provision for loan losses (57 ) (73 ) 30 (173 ) (102 ) (375 ) (Decrease) increase in FDIC loss share receivable (1,099 ) (1,302 ) 225 (3,442 ) (2,257 ) (7,875 ) Ending balance $ 1,548 $ 1,552 $ 8,533 $ 23,663 $ 5,857 $ 41,153 Ending balance: Individually evaluated for impairment $ — $ — $ — $ — $ — $ — Amounts related to acquired-impaired loans 1,548 1,552 8,533 23,663 5,857 41,153 Collectively evaluated for impairment — — — — — — Loans: Ending balance: $ 13,836 $ 17,199 $ 46,611 $ 189,570 $ 36,609 $ 303,825 Individually evaluated for impairment — — — — — — Acquired-impaired loans 13,836 17,199 46,611 189,570 36,609 303,825 Collectively evaluated for impairment — — — — — — Total loans Allowance for loan losses: Beginning balance $ 37,017 $ 8,845 $ 31,612 $ 34,881 $ 21,271 $ 133,626 Charge-offs (3,728 ) (1,665 ) (5,395 ) (1,827 ) (8,752 ) (21,367 ) Recoveries 1,862 1,960 2,428 382 3,002 9,634 Net provision for loan losses 12,015 836 (4,400 ) 613 5,590 14,654 (Decrease) increase in FDIC loss share receivable (1,099 ) (1,302 ) 225 (3,442 ) (2,257 ) (7,875 ) Ending balance $ 46,067 $ 8,674 $ 24,470 $ 30,607 $ 18,854 $ 128,672 Ending balance: Individually evaluated for impairment $ 705 $ 283 $ 304 $ 532 $ — $ 1,824 Amounts related to acquired-impaired loans 1,548 1,552 8,533 23,663 5,857 41,153 Collectively evaluated for impairment 43,814 6,839 15,633 6,412 12,997 85,695 Loans: Ending balance: $ 5,393,691 $ 1,040,656 $ 3,056,263 $ 1,771,271 $ 1,622,175 $ 12,884,056 Individually evaluated for impairment 8,722 7,441 13,478 2,532 — 32,173 Acquired-impaired loans 31,246 36,175 74,604 194,117 37,666 373,808 Collectively evaluated for impairment 5,353,723 997,040 2,968,181 1,574,622 1,584,509 12,478,075 The following table shows the composition of nonaccrual loans by portfolio segment and class. Acquired-impaired and certain FDIC acquired loans are considered to be performing due to the application of the accretion method and are excluded from the table. FDIC acquired loans accounted for using the cost recovery method do not have an accretable yield and are included below as nonaccrual loans. Acquired-performing loans that have subsequently been placed on nonaccrual status are also included below. (in thousands) June 30, December 31, Originated loans: Commercial non-real estate $ 42,454 $ 15,511 Construction and land development 5,285 6,462 Commercial real estate 38,152 22,047 Residential mortgages 20,709 21,702 Consumer 4,855 5,574 Total originated loans $ 111,455 $ 71,296 Acquired loans: Commercial non-real estate $ — $ — Construction and land development — — Commercial real estate 5,401 6,139 Residential mortgages — — Consumer — — Total acquired loans $ 5,401 $ 6,139 FDIC acquired loans: Commercial non-real estate $ — $ — Construction and land development 1,156 1,103 Commercial real estate 433 433 Residential mortgages — 392 Consumer — 174 Total FDIC acquired loans $ 1,589 $ 2,102 Total loans: Commercial non-real estate $ 42,454 $ 15,511 Construction and land development 6,441 7,565 Commercial real estate 43,986 28,619 Residential mortgages 20,709 22,094 Consumer 4,855 5,748 Total loans $ 118,445 $ 79,537 The estimated amount of interest that would have been recorded on nonaccrual loans had the loans not been classified as nonaccrual in the six months ended June 30, 2015 was approximately $1.8 million. Interest actually received and recorded as income on nonaccrual loans during that period was approximately $0.6 million. Nonaccrual loans include loans modified in troubled debt restructurings (“TDRs”) of $4.9 million and $7.0 million at June 30, 2015 and December 31, 2014, respectively. Total TDRs, both accruing and nonaccruing, were $12.8 million as of June 30, 2015 and $16.0 million at December 31, 2014. The table below details TDRs that were modified during the six months ended June 30, 2015 and June 30, 2014 by portfolio segment. Six Months Ended (in thousands) June 30, 2015 June 30, 2014 Troubled Debt Restructurings: Number of Pre-Modification Post-Modification Number of Pre-Modification Post-Modification Originated loans: Commercial non-real estate — $ — $ — — $ — $ — Construction and land development — — — — — — Commercial real estate 1 482 482 1 963 918 Residential mortgages 2 68 68 2 773 507 Consumer 1 20 20 — — — Total originated loans 4 $ 570 $ 570 3 $ 1,736 $ 1,425 Acquired loans: Commercial non-real estate — $ — $ — — $ — $ — Construction and land development — — — — — — Commercial real estate — — — — — — Residential mortgages — — — — — — Consumer — — — — — — Total acquired loans — $ — $ — — $ — $ — FDIC acquired loans: Commercial non-real estate — $ — $ — — $ — $ — Construction and land development — — — — — — Commercial real estate — — — — — — Residential mortgages — — — — — — Consumer — — — — — — Total FDIC acquired loans — $ — $ — — $ — $ — Total loans: Commercial non-real estate — $ — $ — — $ — $ — Construction and land development — — — — — — Commercial real estate 1 482 482 1 963 918 Residential mortgages 2 68 68 2 773 507 Consumer 1 20 20 — — — Total loans 4 $ 570 $ 570 3 $ 1,736 $ 1,425 The table below details TDRs that subsequently defaulted within twelve months of modification. Six Months Ended (in thousands) June 30, 2015 June 30, 2014 Troubled Debt Restructurings: Number of Recorded Number of Recorded Originated loans: Commercial non-real estate — $ — 1 $ 909 Construction and land development — — — — Commercial real estate — — 2 1,025 Residential mortgages — — — — Consumer — — — — Total originated loans — $ — 3 $ 1,934 Acquired loans: Commercial non-real estate — $ — — $ — Construction and land development — — — — Commercial real estate — — — — Residential mortgages — — — — Consumer — — — — Total acquired loans — $ — — $ — FDIC acquired loans: Commercial non-real estate — $ — — $ — Construction and land development — — — — Commercial real estate — — — — Residential mortgages — — — — Consumer — — — — Total FDIC acquired loans — $ — — $ — Total loans: Commercial non-real estate — $ — 1 $ 909 Construction and land development — — — — Commercial real estate — — 2 1,025 Residential mortgages — — — — Consumer — — — — Total loans — $ — 3 $ 1,934 The tables below present loans that are individually evaluated for impairment disaggregated by class at June 30, 2015 and December 31, 2014. Loans individually evaluated for impairment include TDRs and loans that are determined to be impaired and have aggregate relationship balances of $1 million or more. June 30, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (in thousands) Originated loans: With no related allowance recorded: Commercial non-real estate $ 12,192 $ 12,696 $ — $ 8,861 $ — Construction and land development 57 57 — 1,295 — Commercial real estate 12,001 14,005 — 10,376 20 Residential mortgages — — — 345 2 Consumer 98 98 — 66 — 24,348 26,856 — 20,943 22 With an allowance recorded: Commercial non-real estate $ 20,187 $ 20,949 $ 2,903 $ 8,116 3 Construction and land development 4,303 6,522 73 4,369 59 Commercial real estate 19,839 19,840 2,203 10,014 44 Residential mortgages 1,369 1,880 163 1,804 18 Consumer 18 18 6 15 3 45,716 49,209 5,348 24,318 127 Total: Commercial non-real estate 32,379 33,645 2,903 $ 16,977 3 Construction and land development 4,360 6,579 73 5,664 59 Commercial real estate 31,840 33,845 2,203 20,390 64 Residential mortgages 1,369 1,880 163 2,149 20 Consumer 116 116 6 81 3 Total originated loans $ 70,064 $ 76,065 $ 5,348 $ 45,261 $ 149 Acquired loans: With no related allowance recorded: Commercial non-real estate $ — $ — $ — $ — $ — Construction and land development — — — — — Commercial real estate — — — — — Residential mortgages — — — — — Consumer — — — — — — — — — — With an allowance recorded: Commercial non-real estate — — — $ — — Construction and land development — — — — — Commercial real estate 2,543 2,563 214 2,604 — Residential mortgages — — — — — Consumer — — — — — 2,543 2,563 214 2,604 — Total: Commercial non-real estate — — — $ — — Construction and land development — — — — — Commercial real estate 2,543 2,563 214 2,604 — Residential mortgages — — — — — Consumer — — — — — Total acquired loans $ 2,543 $ 2,563 $ 214 $ 2,604 $ — June 30, 2015 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (in thousands) Total loans: With no related allowance recorded: Commercial non-real estate $ 12,192 $ 12,696 $ — $ 8,861 $ — Construction and land development 57 57 — 1,295 — Commercial real estate 12,001 14,005 — 10,376 20 Residential mortgages — — — 345 2 Consumer 98 98 — 66 — 24,348 26,856 — 20,943 22 With an allowance recorded: Commercial non-real estate 20,187 20,949 2,903 $ 8,116 3 Construction and land development 4,303 6,522 73 4,369 59 Commercial real estate 22,382 22,403 2,417 12,618 44 Residential mortgages 1,369 1,880 163 1,804 18 Consumer 18 18 6 15 3 48,259 51,772 5,562 26,922 127 Total: Commercial non-real estate 32,379 33,645 2,903 $ 16,977 3 Construction and land development 4,360 6,579 73 5,664 59 Commercial real estate 34,383 36,408 2,417 22,995 64 Residential mortgages 1,369 1,880 163 2,149 20 Consumer 116 116 6 81 3 Total loans $ 72,607 $ 78,628 $ 5,562 $ 47,866 $ 149 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (in thousands) Originated loans: With no related allowance recorded: Commercial non-real estate $ 3,003 $ 3,646 $ — $ 1,209 $ 51 Construction and land development 3,345 6,486 — 3,330 142 Commercial real estate 8,467 10,575 — 8,461 331 Residential mortgages — — — 88 3 Consumer — — — — — 14,815 20,707 — 13,088 527 With an allowance recorded: Commercial non-real estate 984 984 14 5,522 99 Construction and land development 4,905 4,906 19 6,660 137 Commercial real estate 3,654 3,654 11 7,500 109 Residential mortgages 2,656 3,311 330 2,204 50 Consumer 6 6 3 1 — 12,205 12,861 377 21,887 395 Total: Commercial non-real estate 3,987 4,630 14 6,732 150 Construction and land development 8,250 11,392 19 9,990 279 Commercial real estate 12,121 14,229 11 15,961 439 Residential mortgages 2,656 3,311 330 2,292 53 Consumer 6 6 3 1 — Total originated loans $ 27,020 $ 33,568 $ 377 $ 34,976 $ 921 Acquired loans: With no related allowance recorded: Commercial non-real estate $ — $ — $ — $ 357 $ — Construction and land development — — — 121 — Commercial real estate — — — 311 — Residential mortgages — — — 88 — Consumer — — — — — — — — 877 — With an allowance recorded: Commercial non-real estate — — — 1,059 122 Construction and land development — — — 1,037 56 Commercial real estate 2,691 2,720 477 1,357 75 Residential mortgages — — — — — Consumer — — — — — 2,691 2,720 477 3,453 253 Total: Commercial non-real estate — — — 1,416 122 Construction and land development — — — 1,158 56 Commercial real estate 2,691 2,720 477 1,668 75 Residential mortgages — — — 88 — Consumer — — — — — Total acquired loans $ 2,691 $ 2,720 $ 477 $ 4,330 $ 253 December 31, 2014 Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (in thousands) Total loans: With no related allowance recorded: Commercial non-real estate $ 3,003 $ 3,646 $ — $ 1,566 $ 51 Construction and land development 3,345 6,486 — 3,451 142 Commercial real estate 8,467 10,575 — 8,772 331 Residential mortgages — — — 176 3 Consumer — — — — — 14,815 20,707 — 13,965 527 With an allowance recorded: Commercial non-real estate 984 984 14 6,581 221 Construction and land development 4,905 4,906 19 7,697 193 Commercial real estate 6,345 6,374 488 8,857 184 Residential mortgages 2,656 3,311 330 2,204 50 Consumer 6 6 3 1 — 14,896 15,581 854 25,340 648 Total: Commercial non-real estate 3,987 4,630 14 8,147 272 Construction and land development 8,250 11,392 19 11,148 335 Commercial real estate 14,812 16,949 488 17,629 515 Residential mortgages 2,656 3,311 330 2,380 53 Consumer 6 6 3 1 — Total loans $ 29,711 $ 36,288 $ 854 $ 39,305 $ 1,175 The tables below present the age analysis of past due loans at June 30, 2015 and December 31, 2014. FDIC acquired and acquired-impaired loans accounted for in pools with an accretable yield are considered to be current. June 30, 2015 30-59 days 60-89 days Greater than past due Total Current Total Loans Recorded (in thousands) Originated loans: Commercial non-real estate $ 5,215 $ 3,090 $ 10,250 $ 18,555 $ 6,040,443 $ 6,058,998 $ 826 Construction and land development 2,411 2,128 4,278 8,817 1,091,971 1,100,788 80 Commercial real estate 3,180 1,450 14,267 18,897 2,572,487 2,591,384 279 Residential mortgages 1,094 3,493 8,227 12,814 1,771,916 1,784,730 946 Consumer 10,414 3,286 3,228 16,928 1,837,663 1,854,591 1,347 Total $ 22,314 $ 13,447 $ 40,250 $ 76,011 $ 13,314,480 $ 13,390,491 $ 3,478 Acquired loans: Commercial non-real estate $ — $ — $ — $ — $ 120,020 $ 120,020 $ — Construction and land development — — — — 9,064 9,064 — Commercial real estate 1,954 138 2,032 4,124 594,838 598,962 — Residential mortgages — — — — 1,554 1,554 — Consumer — — — — 24 24 — Total $ 1,954 $ 138 $ 2,032 $ 4,124 $ 725,500 $ 729,624 $ — FDIC acquired loans: Commercial non-real estate $ — $ — $ — $ — $ 6,666 $ 6,666 $ — Construction and land development — — 1,156 1,156 9,939 11,095 — Commercial real estate — — 433 433 22,054 22,487 — Residential mortgages — — — — 169,553 169,553 — Consumer — — — — 14,836 14,836 — Total $ — $ — $ 1,589 $ 1,589 $ 223,048 $ 224,637 $ — Total loans: Commercial non-real estate $ 5,215 $ 3,090 $ 10,250 $ 18,555 $ 6,167,129 $ 6,185,684 $ 826 Construction and land development 2,411 2,128 5,434 9,973 1,110,974 1,120,947 80 Commercial real estate 5,134 1,588 16,732 23,454 3,189,379 3,212,833 279 Residential mortgages 1,094 3,493 8,227 12,814 1,943,023 1,955,837 946 Consumer 10,414 3,286 3,228 16,928 1,852,523 1,869,451 1,347 Total $ 24,268 $ 13,585 $ 43,871 $ 81,724 $ 14,263,028 $ 14,344,752 $ 3,478 December 31, 2014 30-59 days 60-89 days Greater than past due Total past due Current Total Loans Recorded (in thousands) Originated loans: Commercial non-real estate $ 4,380 $ 1,742 $ 8,560 $ 14,682 $ 5,903,046 $ 5,917,728 $ 630 Construction and land development 6,620 1,532 4,453 12,605 1,061,359 1,073,964 142 Commercial real estate 6,527 2,964 13,234 22,725 2,405,470 2,428,195 696 Residential mortgages 14,730 3,261 11,208 29,199 1,675,571 1,704,770 1,199 Consumer 8,422 2,450 4,365 15,237 1,670,305 1,685,542 1,897 Total $ 40,679 $ 11,949 $ 41,820 $ 94,448 $ 12,715,751 $ 12,810,199 $ 4,564 Acquired loans: Commercial non-real estate $ — $ — $ — $ — $ 120,137 $ 120,137 $ — Construction and land development 111 — — 111 21,012 21,123 — Commercial real estate 3,861 282 1,591 5,734 682,311 688,045 261 Residential mortgages — — — — 2,378 2,378 — Consumer — — — — 985 985 — Total $ 3,972 $ 282 $ 1,591 $ 5,845 $ 826,823 $ 832,668 $ 261 FDIC acquired loans: Commercial non-real estate $ — $ — $ — $ — $ 6,195 $ 6,195 $ — Construction and land development — — 1,103 1,103 10,571 11,674 — Commercial real estate — — 433 433 27,375 27,808 — Residential mortgages — 272 — 272 186,761 187,033 — Consumer 1 — 34 35 19,664 19,699 — Total $ 1 $ 272 $ 1,570 $ 1,843 $ 250,566 $ 252,409 $ — Total loans: Commercial non-real estate $ 4,380 $ 1,742 $ 8,560 $ 14,682 $ 6,029,378 $ 6,044,060 $ 630 Construction and land development 6,731 1,532 5,556 13,819 1,092,942 1,106,761 142 Commercial real estate 10,388 3,246 15,258 28,892 3,115,156 3,144,048 957 Residential mortgages 14,730 3,533 11,208 29,471 1,864,710 1,894,181 1,199 Consumer 8,423 2,450 4,399 15,272 1,690,954 1,706,226 1,897 Total $ 44,652 $ 12,503 $ 44,981 $ 102,136 $ 13,793,140 $ 13,895,276 $ 4,825 The following tables present the credit quality indicators of the Company’s various classes of loans at June 30, 2015 and December 31, 2014. Commercial Non-Real Estate Credit Exposure Credit Risk Profile by Internally Assigned Grade (in thousands) June 30, 2015 December 31, 2014 Originated Acquired FDIC acquired Total Originated Acquired FDIC acquired Total Grade: Pass $ 5,522,236 $ 113,200 $ 2,648 $ 5,638,084 $ 5,577,827 $ 111,847 $ 2,027 $ 5,691,701 Pass-Watch 142,837 101 988 143,926 174,742 715 1,120 176,577 Special Mention 209,716 282 — 209,998 52,962 350 — 53,312 Substandard 184,178 6,437 3,001 193,616 112,153 7,225 3,017 122,395 Doubtful 31 — 29 60 44 — 31 75 Total $ 6,058,998 $ 120,020 $ 6,666 $ 6,185,684 $ 5,917,728 $ 120,137 $ 6,195 $ 6,044,060 Construction Credit Exposure Credit Risk Profile by Internally Assigned Grade (in thousands) June 30, 2015 December 31, 2014 Originated Acquired FDIC acquired Total Originated Acquired FDIC acquired Total Grade: Pass $ 1,048,380 $ 1,743 $ 2,789 $ 1,052,912 $ 1,012,128 $ 14,377 $ 2,468 $ 1,028,973 Pass-Watch 7,471 2,275 519 10,265 21,516 432 532 22,480 Special Mention 4,920 — 313 5,233 7,097 129 319 7,545 Substandard 40,017 5,046 7,474 52,537 33,223 6,185 8,355 47,763 Total $ 1,100,788 $ 9,064 $ 11,095 $ 1,120,947 $ 1,073,964 $ 21,123 $ 11,674 $ 1,106,761 Commercial Real Estate Credit Exposure Credit Risk Profile by Internally Assigned Grade (in thousands) June 30, 2015 Dece |