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Portfolio Loans Covered by Loss Share ("Covered")
 12 Months Ended
Dec. 31, 2013
PORTFOLIO LOANS COVERED BY LOSS SHARE [Abstract]  
Portfolio Loans Covered by Loss Share (Covered loans)
PURCHASE CREDIT IMPAIRED ("PCI") LOANS (FORMERLY REFERRED TO AS PORTFOLIO LOANS COVERED UNDER FDIC LOSS SHARE OR COVERED LOANS)

Below is a summary of PCI loans by category at December 31, 2013 and 2012:
 
 
December 31, 2013
 
December 31, 2012
(in thousands)
Weighted-
Average
Risk Rating
Recorded
Investment
PCI Loans
 
Weighted-
Average
Risk Rating
Recorded
Investment
PCI Loans
Real Estate Loans:
 
 
 
 
 
    Construction and land development
6.84
$
14,325

 
7.06
$
30,537

    Commercial real estate - investor owned
6.81
48,146

 
6.08
57,602

    Commercial real estate - owner occupied
6.75
32,525

 
6.65
47,140

    Residential real estate
5.92
34,498

 
5.68
42,531

Total real estate loans
 
$
129,494

 
 
$
177,810

    Commercial and industrial
6.87
9,271

 
6.57
22,034

    Consumer and other
6.47
1,773

 
4.19
1,274

    Portfolio loans
 
$
140,538

 
 
$
201,118







The aging of the recorded investment in past due PCI loans by portfolio class and category at December 31, 2013 and 2012 is shown below:

 
December 31, 2013
(in thousands)
30-89 Days
 Past Due
 
90 or More
Days
Past Due
 
Total
Past Due
 
Current
 
Total
    Commercial & Industrial
$
397

 
$
573

 
$
970

 
$
8,301

 
$
9,271

    Real Estate:
 
 
 
 
 
 
 
 
 
       Commercial - Owner Occupied
255

 
6,595

 
6,850

 
25,675

 
32,525

       Commercial - Investor Owned
5,143

 
3,167

 
8,310

 
39,836

 
48,146

       Construction and Land Development
32

 
4,198

 
4,230

 
10,095

 
14,325

       Residential
639

 
5,276

 
5,915

 
28,583

 
34,498

    Consumer & Other
—

 
—

 
—

 
1,773

 
1,773

          Total
$
6,466

 
$
19,809

 
$
26,275

 
$
114,263

 
$
140,538


 
December 31, 2012
(in thousands)
30-89 Days
 Past Due
 
90 or More
Days
Past Due
 
Total
Past Due
 
Current
 
Total
    Commercial & Industrial
$
319

 
$
3,925

 
$
4,244

 
$
17,790

 
$
22,034

    Real Estate:
 
 
 
 
 
 
 
 
 
       Commercial - Owner Occupied
887

 
5,144

 
6,031

 
41,109

 
47,140

       Commercial - Investor Owned
308

 
665

 
973

 
56,629

 
57,602

       Construction and Land Development
36

 
13,532

 
13,568

 
16,969

 
30,537

       Residential
1,232

 
2,907

 
4,139

 
38,392

 
42,531

    Consumer & Other
1

 
2

 
3

 
1,271

 
1,274

          Total
$
2,783

 
$
26,175

 
$
28,958

 
$
172,160

 
$
201,118



The following table is a rollforward of PCI loans, net of the allowance for loan losses, for the twelve months ended December 31, 2013 and 2012.

(in thousands)
Contractual Cashflows
 
Less:
Non-accretable Difference
 
Less: Accretable Yield
 
Carrying Amount
Balance January 1, 2013
$
386,966

 
$
118,627

 
$
78,768

 
$
189,571

Principal reductions and interest payments
(55,736
)
 
—

 
—

 
(55,736
)
Accretion of loan discount
—

 
—

 
(25,320
)
 
25,320

Changes in contractual and expected cash flows due to remeasurement
20,358

 
(2,667
)
 
15,538

 
7,487

Reductions due to disposals
(85,520
)
 
(28,522
)
 
(15,456
)
 
(41,542
)
Balance December 31, 2013
$
266,068

 
$
87,438

 
$
53,530

 
$
125,100

 
 
 
 
 
 
 
 
Balance January 1, 2012
$
618,791

 
$
256,481

 
$
63,335

 
$
298,975

Principal reductions and interest payments
(90,011
)
 
—

 
—

 
(90,011
)
Accretion of loan discount
—

 
—

 
(29,673
)
 
29,673

Changes in contractual and expected cash flows due to remeasurement
(1,822
)
 
(72,454
)
 
62,059

 
8,573

Reductions due to disposals
(139,992
)
 
(65,400
)
 
(16,953
)
 
(57,639
)
Balance December 31, 2012
$
386,966

 
$
118,627

 
$
78,768

 
$
189,571





The accretable yield is accreted into interest income over the estimated life of the acquired loans using the effective
yield method.

A summary of activity in the FDIC loss share receivable for the twelve months ended December 31, 2013 and 2012 is as follows:

(in thousands)
December 31,
2013
 
December 31,
2012
Balance at beginning of period
$
61,475

 
$
184,554

Adjustments not reflected in income:
 
 
 
Cash received from the FDIC for covered assets
(10,981
)
 
(91,641
)
Cash received from the FDIC for acquisitions
—

 
(12,544
)
FDIC reimbursable losses, net
1,998

 
(4,025
)
Adjustments reflected in income:
 
 
 
Amortization, net
(13,931
)
 
(15,376
)
Loan impairment
3,977

 
11,242

Reductions for payments on covered assets in excess of expected cash flows
(8,219
)
 
(10,735
)
Balance at end of period
$
34,319

 
$
61,475



Outstanding balances on PCI loans were $201.7 million and $301.2 million as of December 31, 2013, and December 31, 2012, respectively.

Due to continued favorable projections in expected cash flows, the Company now anticipates it will be required to pay the FDIC at the end of two of its loss share agreements. Accordingly, a contingent liability of $1.5 million has been recorded as of December 31, 2013 with $1.0 million of expense recorded through Other Noninterest expense for the year ended December 31, 2013. See FDIC Loss Share Receivable and Clawback Liability in Note 1 - Summary of Significant Accounting Policies for additional information.