10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

☑ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended September 30, 2018

or

☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the Transition period from                  to                 

Commission File Number: 000-51904

HOME BANCSHARES, INC.

(Exact Name of Registrant as Specified in Its Charter)

Arkansas	71-0682831
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

719 Harkrider, Suite 100, Conway, Arkansas	72032
(Address of principal executive offices)	(Zip Code)

(501) 339-2929

(Registrant’s telephone number, including area code)

Not Applicable

Former name, former address and former fiscal year, if changed since last report

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes  ☑    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes  ☑    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	☑	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☑

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practical date.

Common Stock Issued and Outstanding: 172,932,360 shares as of November 2, 2018.

HOME BANCSHARES, INC.

FORM 10-Q

September 30, 2018

INDEX

		Page No.
Part I:	Financial Information
Item 1:	Financial Statements
	Consolidated Balance Sheets – September  30, 2018 (Unaudited) and December 31, 2017		4
	Consolidated Statements of Income (Unaudited) – Three and nine months ended September 30, 2018 and 2017		5
	Consolidated Statements of Comprehensive Income (Unaudited) – Three and nine months ended September 30, 2018 and 2017		6
	Consolidated Statements of Stockholders’ Equity (Unaudited) – Nine months ended September 30, 2018 and 2017		6
	Consolidated Statements of Cash Flows (Unaudited) – Nine months ended September 30, 2018 and 2017		7
	Condensed Notes to Consolidated Financial Statements (Unaudited)		8-52
	Report of Independent Registered Public Accounting Firm		53
Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations		54-91
Item 3:	Quantitative and Qualitative Disclosures About Market Risk		91-94
Item 4:	Controls and Procedures		94
Part II:	Other Information
Item 1:	Legal Proceedings		94
Item 1A:	Risk Factors		95
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds		95
Item 3:	Defaults Upon Senior Securities		95
Item 4:	Mine Safety Disclosures		95
Item 5:	Other Information		95
Item 6:	Exhibits		95-97
Signatures			98

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Some of our statements contained in this document, including matters discussed under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operation,” are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements relate to future events or our future financial performance and include statements about the competitiveness of the banking industry, potential regulatory obligations, our entrance and expansion into other markets, including through potential acquisitions, our other business strategies and other statements that are not historical facts. Forward-looking statements are not guarantees of performance or results. When we use words like “may,” “plan,” “contemplate,” “anticipate,” “believe,” “intend,” “continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,” “would,” and similar expressions, you should consider them as identifying forward-looking statements, although we may use other phrasing. These forward-looking statements involve risks and uncertainties and are based on our beliefs and assumptions, and on the information available to us at the time that these disclosures were prepared. These forward-looking statements involve risks and uncertainties and may not be realized due to a variety of factors, including, but not limited to, the following:

• the effects of future local, regional, national and international economic conditions, including inflation or a decrease in commercial real estate and residential housing values;

• changes in the level of nonperforming assets and charge-offs, and credit risk generally;

• the risks of changes in interest rates or the level and composition of deposits, loan demand and the values of loan collateral, securities and interest-sensitive assets and liabilities;

• the effect of any mergers, acquisitions or other transactions to which we or our bank subsidiary may from time to time be a party, including our ability to successfully integrate any businesses that we acquire;

• the risk that expected cost savings and other benefits from acquisitions may not be fully realized or may take longer to realize than expected;

• the possibility that an acquisition does not close when expected or at all because required regulatory, shareholder or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all;

• the reaction to a proposed acquisition transaction of the respective companies’ customers, employees and counterparties;

• diversion of management time on acquisition-related issues;

• the ability to enter into and/or close additional acquisitions;

• the availability of and access to capital on terms acceptable to us;

• increased regulatory requirements and supervision that apply as a result of our exceeding $10 billion in total assets;

• legislation and regulation affecting the financial services industry as a whole, and the Company and its subsidiaries in particular, including the effects resulting from the reforms enacted by the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”) and the adoption of regulations by regulatory bodies under the Dodd-Frank Act;

• governmental monetary and fiscal policies, as well as legislative and regulatory changes, including as a result of initiatives of the administration of President Donald J. Trump;

• the effects of terrorism and efforts to combat it;

• political instability;

• risks associated with our customer relationship with the Cuban government and our correspondent banking relationship with Banco Internacional de Comercio, S.A. (BICSA), a Cuban commercial bank, through our recently completed acquisition of Stonegate Bank;

• the ability to keep pace with technological changes, including changes regarding cybersecurity;

• an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting our bank subsidiary or our customers;

• the effects of competition from other commercial banks, thrifts, mortgage banking firms, consumer finance companies, credit unions, securities brokerage firms, insurance companies, money market and other mutual funds and other financial institutions operating in our market area and elsewhere, including institutions operating regionally, nationally and internationally, together with competitors offering banking products and services by mail, telephone and the Internet;

• the effect of changes in accounting policies and practices and auditing requirements, as may be adopted by the regulatory agencies, as well as the Public Company Accounting Oversight Board, the Financial Accounting Standards Board, and other accounting standard setters;

• higher defaults on our loan portfolio than we expect; and

• the failure of assumptions underlying the establishment of our allowance for loan losses or changes in our estimate of the adequacy of the allowance for loan losses.

All written or oral forward-looking statements attributable to us are expressly qualified in their entirety by this Cautionary Note. Our actual results may differ significantly from those we discuss in these forward-looking statements. For other factors, risks and uncertainties that could cause our actual results to differ materially from estimates and projections contained in these forward-looking statements, see the “Risk Factors” sections of our Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2018.

PART I: FINANCIAL INFORMATION

Item 1:    Financial Statements

Home BancShares, Inc.

Consolidated Balance Sheets

(In thousands, except share data)	September 30, 2018			December 31, 2017
	(Unaudited)
Assets
Cash and due from banks	$	208,681		$	166,915
Interest-bearing deposits with other banks		323,376			469,018
Cash and cash equivalents		532,057			635,933
Federal funds sold		500			24,109
Investment securities – available-for-sale		1,744,430			1,663,517
Investment securities – held-to-maturity		199,266			224,756
Loans receivable		10,832,815			10,331,188
Allowance for loan losses		(110,191	)		(110,266	)
Loans receivable, net		10,722,624			10,220,922
Bank premises and equipment, net		233,652			237,439
Foreclosed assets held for sale		13,507			18,867
Cash value of life insurance		148,014			146,866
Accrued interest receivable		48,909			45,708
Deferred tax asset, net		79,548			76,564
Goodwill		958,408			927,949
Core deposit and other intangibles		44,484			49,351
Other assets		187,339			177,779
Total assets	$	14,912,738		$	14,449,760
Liabilities and Stockholders’ Equity
Deposits:
Demand and non-interest-bearing	$	2,482,857		$	2,385,252
Savings and interest-bearing transaction accounts		6,420,951			6,476,819
Time deposits		1,720,930			1,526,431
Total deposits		10,624,738			10,388,502
Securities sold under agreements to repurchase		142,146			147,789
FHLB and other borrowed funds		1,363,851			1,299,188
Accrued interest payable and other liabilities		72,381			41,959
Subordinated debentures		368,596			368,031
Total liabilities		12,571,712			12,245,469
Stockholders’ equity:
Common stock, par value $0.01; shares authorized 200,000,000 in 2018 and 2017; shares issued and outstanding 174,134,811 in 2018 and 173,632,983 in 2017		1,741			1,736
Capital surplus		1,668,106			1,675,318
Retained earnings		701,900			530,658
Accumulated other comprehensive loss		(30,721	)		(3,421	)
Total stockholders’ equity		2,341,026			2,204,291
Total liabilities and stockholders’ equity	$	14,912,738		$	14,449,760

See Condensed Notes to Consolidated Financial Statements.

4

Home BancShares, Inc.

Consolidated Statements of Income

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands, except per share data)	2018			2017			2018			2017
	(Unaudited)
Interest income:
Loans	$	166,334		$	113,269		$	467,395		$	331,763
Investment securities
Taxable		9,011			7,071			26,960			18,983
Tax-exempt		3,427			3,032			9,801			8,942
Deposits – other banks		1,273			538			3,408			1,573
Federal funds sold		6			3			24			9
Total interest income		180,051			123,913			507,588			361,270
Interest expense:
Interest on deposits		21,412			8,535			54,382			20,831
Federal funds purchased		—			—			1			—
FHLB and other borrowed funds		7,055			3,408			15,880			10,707
Securities sold under agreements to repurchase		472			232			1,220			593
Subordinated debentures		5,202			4,969			15,374			10,203
Total interest expense		34,141			17,144			86,857			42,334
Net interest income		145,910			106,769			420,731			318,936
Provision for loan losses		—			35,023			4,322			39,324
Net interest income after provision for loan losses		145,910			71,746			416,409			279,612
Non-interest income:
Service charges on deposit accounts		6,992			6,408			19,847			18,356
Other service charges and fees		9,041			8,490			28,993			25,983
Trust fees		437			365			1,262			1,130
Mortgage lending income		3,691			3,172			9,825			9,713
Insurance commissions		463			472			1,668			1,482
Increase in cash value of life insurance		735			478			2,119			1,251
Dividends from FHLB, FRB, FNBB & other		1,288			834			3,765			2,455
Gain on acquisitions		—			—			—			3,807
Gain on sale of SBA loans		47			163			491			738
Gain (loss) on sale of branches, equipment and other assets, net		(102	)		(1,337	)		(95	)		(962	)
Gain (loss) on OREO, net		836			335			2,287			849
Gain (loss) on securities, net		—			136			—			939
Other income		2,419			1,941			9,163			6,603
Total non-interest income		25,847			21,457			79,325			72,344
Non-interest expense:
Salaries and employee benefits		37,825			28,510			107,315			83,965
Occupancy and equipment		8,148			7,887			25,650			21,602
Data processing expense		3,461			2,853			10,786			8,439
Other operating expenses		16,689			31,596			48,980			62,984
Total non-interest expense		66,123			70,846			192,731			176,990
Income before income taxes		105,634			22,357			303,003			174,966
Income tax expense		25,350			7,536			73,630			63,192
Net income	$	80,284		$	14,821		$	229,373		$	111,774
Basic earnings per share	$	0.46		$	0.10		$	1.32		$	0.78
Diluted earnings per share	$	0.46		$	0.10		$	1.32		$	0.78

See Condensed Notes to Consolidated Financial Statements.

5

Home BancShares, Inc.

Consolidated Statements of Comprehensive Income

	Three Months Ended September 30,						Nine Months Ended September 30,
(In thousands)	2018			2017			2018			2017
	(Unaudited)
Net income	$	80,284		$	14,821		$	229,373		$	111,774
Net unrealized gain (loss) on available-for-sale securities		(6,979	)		(4,065	)		(35,957	)		6,681
Less: reclassification adjustment for realized (gains) losses included in income		—			(136	)		—			(939	)
Other comprehensive (loss) income, before tax effect		(6,979	)		(4,201	)		(35,957	)		5,742
Tax effect on other comprehensive income		2,867			1,648			9,647			(2,253	)
Other comprehensive income (loss)		(4,112	)		(2,553	)		(26,310	)		3,489
Comprehensive income	$	76,172		$	12,268		$	203,063		$	115,263

Home BancShares, Inc.

Consolidated Statements of Stockholders’ Equity

Nine Months Ended September 30, 2018 and 2017

(In thousands, except share data)	Common Stock			Capital Surplus			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total
Balances at January 1, 2017		1,405			869,737			455,948			400			1,327,490
Comprehensive income:
Net income		—			—			111,774			—			111,774
Other comprehensive income (loss)		—			—			—			3,489			3,489
Net issuance of 160,237 shares of common stock from exercise of stock options		2			847			—			—			849
Issuance of 2,738,038 shares of common stock from acquisition of GHI, net of issuance costs of approximately $195		27			77,290			—			—			77,317
Issuance of 30,863,658 shares of common stock from acquisition of Stonegate, net of issuance costs of approximately $630		309			741,324									741,633
Repurchase of 800,000 shares of common stock		(8	)		(19,530	)								(19,538	)
Share-based compensation net issuance of 231,766 shares of restricted common stock		2			4,974			—			—			4,976
Cash dividends – Common Stock, $0.29 per share		—			—			(41,274	)		—			(41,274	)
Balances at September 30, 2017 (unaudited)	$	1,737		$	1,674,642		$	526,448		$	3,889		$	2,206,716
Comprehensive income:
Net income		—			—			23,309			—			23,309
Other comprehensive income (loss)		—			—			—			(7,310	)		(7,310	)
Net issuance of 24,879 shares of common stock from exercise of stock options		—			233			—			—			233
Repurchase of 57,800 shares of common stock		(1	)		(1,286	)		—			—			(1,287	)
Share-based compensation		—			1,729			—			—			1,729
Cash dividends – Common Stock, $0.11 per share		—			—			(19,099	)		—			(19,099	)
Balances at December 31, 2017	$	1,736		$	1,675,318		$	530,658		$	(3,421	)	$	2,204,291
Comprehensive income:
Net Income		—			—			229,373			—			229,373
Other comprehensive income (loss)		—			—			—			(26,310	)		(26,310	)
Net issuance of 176,821 shares of common stock from exercise of stock options		2			1,255			—			—			1,257
Issuance of 1,250,000 shares of common stock from acquisition of Shore Premier Finance		13			28,188			—			—			28,201
Impact of adoption of new accounting standards(1)		—			—			990			(990	)		—
Repurchase of 1,863,400 shares of common stock		(19	)		(43,151	)		—			—			(43,170	)
Share-based compensation net issuance of 956,125 shares of restricted common stock		9			6,496			—			—			6,505
Cash dividends – Common Stock, $0.34 per share		—			—			(59,121	)		—			(59,121	)
Balances at September 30, 2018 (unaudited)	$	1,741		$	1,668,106		$	701,900		$	(30,721	)	$	2,341,026

(1) Represents the impact of adopting Accounting Standard Update (“ASU”) 2016-01. See Note 1 to the consolidated financial statements for more information.

See Condensed Notes to Consolidated Financial Statements.

6

Home BancShares, Inc.

Consolidated Statements of Cash Flows

	Nine Months Ended September 30,
(In thousands)	2018			2017
	(Unaudited)
Operating Activities
Net income	$	229,373		$	111,774
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation		9,156			8,634
Investment amortization		16,033			12,087
Accretion of purchased loans		(32,021	)		(23,319	)
Share-based compensation		6,505			4,976
Gain on assets		(3,436	)		(1,720	)
Gain on acquisitions		—			(3,807	)
Provision for loan losses		4,322			39,324
Deferred income tax effect		14,593			(15,867	)
Increase in cash value of life insurance		(2,119	)		(1,251	)
Originations of mortgage loans held for sale		(258,520	)		(243,948	)
Proceeds from sales of mortgage loans held for sale		262,900			250,784
Changes in assets and liabilities:
Accrued interest receivable		(2,377	)		(1,814	)
Other assets		(17,485	)		(22,642	)
Accrued interest payable and other liabilities		28,547			(35,436	)
Net cash provided by operating activities		255,471			77,775
Investing Activities
Net decrease (increase) in federal funds sold		23,609			(1,480	)
Net increase in loans, excluding purchased loans		(119,723	)		(92,015	)
Purchases of investment securities – available-for-sale		(380,847	)		(522,329	)
Proceeds from maturities of investment securities – available-for-sale		252,795			120,785
Proceeds from sale of investment securities – available-for-sale		1,064			28,368
Purchases of investment securities – held-to-maturity		—			(219	)
Proceeds from maturities of investment securities – held-to-maturity		25,007			48,144
Proceeds from sale of investment securities – held-to-maturity		—			491
Proceeds from foreclosed assets held for sale		17,744			13,315
Proceeds from sale of SBA Loans		7,938			13,630
Purchases of premises and equipment, net		(5,070	)		(4,383	)
Return of investment on cash value of life insurance		1,325			592
Net cash (paid) proceeds received – market acquisitions		(377,411	)		227,845
Net cash used in investing activities		(553,569	)		(167,256	)
Financing Activities
Net increase in deposits, excluding deposits acquired		236,236			536,891
Net (decrease) increase in securities sold under agreements to repurchase		(5,643	)		2,078
Net increase (decrease) in FHLB and other borrowed funds		64,663			(350,230	)
Proceeds from exercise of stock options		1,257			849
Proceeds from issuance of subordinated notes		—			297,201
Repurchase of common stock		(43,170	)		(19,538	)
Common stock issuance costs – market acquisitions		—			(825	)
Dividends paid on common stock		(59,121	)		(41,274	)
Net cash provided by used in financing activities		194,222			425,152
Net change in cash and cash equivalents		(103,876	)		335,671
Cash and cash equivalents – beginning of year		635,933			216,649
Cash and cash equivalents – end of period	$	532,057		$	552,320

See Condensed Notes to Consolidated Financial Statements.

7

Home BancShares, Inc.

Condensed Notes to Consolidated Financial Statements

(Unaudited)

1. Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

Home BancShares, Inc. (the “Company” or “HBI”) is a bank holding company headquartered in Conway, Arkansas. The Company is primarily engaged in providing a full range of banking services to individual and corporate customers through its wholly-owned community bank subsidiary – Centennial Bank (sometimes referred to as “Centennial” or the “Bank”). The Bank has branch locations in Arkansas, Florida, South Alabama and New York City. The Company is subject to competition from other financial institutions. The Company also is subject to the regulation of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.

A summary of the significant accounting policies of the Company follows:

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Bank is the only significant subsidiary upon which management makes decisions regarding how to allocate resources and assess performance. Each of the branches of the Bank provide a group of similar banking services, including such products and services as commercial, real estate and consumer loans, time deposits, checking and savings accounts. The individual bank branches have similar operating and economic characteristics. While the chief decision maker monitors the revenue streams of the various products, services and branch locations, operations are managed, and financial performance is evaluated on a Company-wide basis. Accordingly, all of the banking services and branch locations are considered by management to be aggregated into one reportable operating segment.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, the valuation of investment securities, the valuation of foreclosed assets and the valuations of assets acquired, and liabilities assumed in business combinations. In connection with the determination of the allowance for loan losses and the valuation of foreclosed assets, management obtains independent appraisals for significant properties.

Principles of Consolidation

The consolidated financial statements include the accounts of HBI and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Various items within the accompanying consolidated financial statements for previous years have been reclassified to provide more comparative information. These reclassifications had no effect on net earnings or stockholders’ equity.

Interim financial information

The accompanying unaudited consolidated financial statements as of September 30, 2018 and 2017 have been prepared in condensed format, and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

8

The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2017 Form 10-K, filed with the Securities and Exchange Commission.

Revenue Recognition.

Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as our loans, letters of credit and investment securities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC Topic 606, which are presented in our income statements as components of non-interest income are as follows:

• Service charges on deposit accounts – These represent general service fees for monthly account maintenance and activity or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.

• Other service charges and fees – These represent credit card interchange fees and Centennial CFG loan fees. The interchange fees are recorded in the period the performance obligation is satisfied which is generally the cash basis based on agreed upon contracts. The Centennial CFG loan fees are based on loan or other negotiated agreements with customers and are accounted for under ASC Topic 310.

• Mortgage lending income – This represents fee income on secondary market lending which is accounted for under ASC Topic 310 and transfer of loans based on a “bid” agreement with the investor which is accounted for under ASC Topic 860, Transfers and Servicing.

Earnings per Share

Basic earnings per share is computed based on the weighted-average number of shares outstanding during each year. Diluted earnings per share is computed using the weighted-average shares and all potential dilutive shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Net income	$	80,284	$	14,821	$	229,373	$	111,774
Average shares outstanding		174,440		144,238		173,870		143,111
Effect of common stock options		427		749		524		728
Average diluted shares outstanding		174,867		144,987		174,394		143,839
Basic earnings per share	$	0.46	$	0.10	$	1.32	$	0.78
Diluted earnings per share	$	0.46	$	0.10	$	1.32	$	0.78

9

2. Business Combinations

Acquisition of Shore Premier Finance

On June 30, 2018, the Company, completed the acquisition of Shore Premier Finance (“SPF”), a division of Union Bank & Trust of Richmond, Virginia, the bank subsidiary of Union Bankshares Corporation. The Company paid a purchase price of approximately $377.4 million in cash, subject to certain post-closing adjustments, and 1,250,000 shares of HBI common stock valued at approximately $28.2 million. SPF provides direct consumer financing for United States Coast Guard (“USCG”) registered high-end sail and power boats. Additionally, SPF provides inventory floor plan lines of credit to marine dealers, primarily those selling USCG documented vessels.

Including the effects of known purchase accounting adjustments, as of acquisition date, SPF had approximately $377.0 million in total assets, including $376.2 million in total loans and $1.9 million in assumed liabilities, which resulted in tentative goodwill of $30.5 million being recorded. The purchase price allocation and certain fair value measurements remain preliminary due to the timing of the acquisition. The Company will continue to review the estimated fair values of loans and intangible assets and to evaluate the assumed tax positions and contingencies.

This portfolio of loans is now housed in a division of Centennial known as Shore Premier Finance. The SPF division of Centennial is responsible for servicing the acquired loan portfolio and originating new loan production. In connection with this acquisition and the creation of the SPF division of Centennial, Centennial has opened a new loan production office in Chesapeake, Virginia. Through this loan production office, the SPF division of Centennial will continue its vision to build out a lending platform focusing on commercial and consumer marine loans.

The Company has determined that the acquisition of the net assets of SPF constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change.

Acquisition of Stonegate Bank

On September 26, 2017, the Company, completed the acquisition of all of the issued and outstanding shares of common stock of Stonegate Bank (“Stonegate”), and merged Stonegate into Centennial. The Company paid a purchase price to the Stonegate shareholders of approximately $792.4 million for the Stonegate acquisition. Under the terms of the merger agreement, shareholders of Stonegate received 30,863,658 shares of HBI common stock valued at approximately $742.3 million plus approximately $50.1 million in cash in exchange for all outstanding shares of Stonegate common stock. In addition, the holders of outstanding stock options of Stonegate received approximately $27.6 million in cash in connection with the cancellation of their options immediately before the acquisition closed, for a total transaction value of approximately $820.0 million.

Including the effects of the purchase accounting adjustments, as of acquisition date, Stonegate had approximately $2.89 billion in total assets, $2.37 billion in loans and $2.53 billion in customer deposits. Stonegate formerly operated its banking business from 24 locations in key Florida markets with significant presence in Broward and Sarasota counties.

The Company has determined that the acquisition of the net assets of Stonegate constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required

10

management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. The following schedule is a breakdown of the assets acquired and liabilities assumed as of the acquisition date:

	Stonegate Bank
	Acquired from Stonegate			Fair Value Adjustments			As Recorded by HBI
	(Dollars in thousands)
Assets
Cash and due from banks	$	100,958		$	—		$	100,958
Interest-bearing deposits with other banks		135,631			—			135,631
Federal funds sold		1,515			—			1,515
Investment securities		103,041			474			103,515
Loans receivable		2,446,149			(74,067	)		2,372,082
Allowance for loan losses		(21,507	)		21,507			—
Loans receivable, net		2,424,642			(52,560	)		2,372,082
Bank premises and equipment, net		38,868			(3,572	)		35,296
Foreclosed assets held for sale		4,187			(801	)		3,386
Cash value of life insurance		48,000			—			48,000
Accrued interest receivable		7,088			—			7,088
Deferred tax asset, net		27,340			11,990			39,330
Goodwill		81,452			(81,452	)		—
Core deposit and other intangibles		10,505			20,364			30,869
Other assets		9,598			255			9,853
Total assets acquired	$	2,992,825		$	(105,302	)	$	2,887,523
Liabilities
Deposits
Demand and non-interest-bearing	$	585,959		$	—		$	585,959
Savings and interest-bearing transaction accounts		1,776,256			—			1,776,256
Time deposits		163,567			(85	)		163,482
Total deposits		2,525,782			(85	)		2,525,697
FHLB borrowed funds		32,667			184			32,851
Securities sold under agreements to repurchase		26,163			—			26,163
Accrued interest payable and other liabilities		8,100			(484	)		7,616
Subordinated debentures		8,345			1,489			9,834
Total liabilities assumed		2,601,057			1,104			2,602,161
Equity
Total equity assumed		391,768			(391,768	)		—
Total liabilities and equity assumed	$	2,992,825		$	(390,664	)		2,602,161
Net assets acquired								285,362
Purchase price								792,370
Goodwill							$	507,008

11

The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above:

Cash and due from banks, interest-bearing deposits with other banks and federal funds sold – The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets.

Investment securities – Investment securities were acquired from Stonegate with an approximately $474,000 adjustment to market value based upon quoted market prices.

Loans – Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and current discount rates. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns.

The Company evaluated $2.37 billion of the loans purchased in conjunction with the acquisition in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs, which were recorded with a $73.3 million discount. As a result, the fair value discount on these loans is being accreted into interest income over the weighted average life of the loans using a constant yield method. The remaining $74.3 million of loans evaluated were considered purchased credit impaired loans within the provisions of FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and were recorded with a $23.3 million discount. These purchase credit impaired loans will recognize interest income through accretion of the difference between the carrying amount of the loans and the expected cash flows. The acquired Stonegate loan balance and the fair value adjustment on loans receivable includes $22.6 million of discount on purchased loans, respectively.

Bank premises and equipment – Bank premises and equipment were acquired from Stonegate with a $3.6 million adjustment to market value. This represents the difference between current appraisals completed in connection with the acquisition and book value acquired.

Foreclosed assets held for sale – These assets are presented at the estimated fair values that management expects to receive when the properties are sold, net of related costs of disposal.

Cash value of life insurance – Cash value of life insurance was acquired from Stonegate at market value.

Accrued interest receivable – Accrued interest receivable was acquired from Stonegate at market value.

Deferred tax asset – The current and deferred income tax assets and liabilities are recorded to reflect the differences in the carrying values of the acquired assets and assumed liabilities for financial reporting purposes and the cost basis for federal income tax purposes, at the Company’s statutory federal and state income tax rate which was 39.225% at the time of acquisition.

Core deposit intangible – This intangible asset represents the value of the relationships that Stonegate had with its deposit customers. The fair value of this intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base, and the net maintenance cost attributable to customer deposits. The Company recorded $30.9 million of core deposit intangible.

Deposits – The fair values used for the demand and savings deposits that comprise the transaction accounts acquired, by definition equal the amount payable on demand at the acquisition date. The $85,000 fair value adjustment applied for time deposits was because the weighted average interest rate of Stonegate’s certificates of deposits were estimated to be below the current market rates.

FHLB borrowed funds – The fair value of FHLB borrowed funds is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

Securities sold under agreements to repurchase – Securities sold under agreements to repurchase were acquired from Stonegate at market value.

Accrued interest payable and other liabilities – Accrued interest payable and other liabilities were acquired from Stonegate at market value.

12

Subordinated debentures – The fair value of subordinated debentures is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

The unaudited pro-forma combined consolidated financial information presents how the combined financial information of HBI and Stonegate might have appeared had the businesses actually been combined. The following schedule represents the unaudited pro forma combined financial information as of the years ended December 31, 2017 and 2016, assuming the acquisition was completed as of January 1, 2017 and 2016, respectively:

	Years Ended December 31,
	2017		2016
	(In thousands, except per share data)
Total interest income	$	610,697	$	538,258
Total non-interest income		107,179		95,555
Net income available to all shareholders		143,979		206,081
Basic earnings per common share	$	0.79	$	1.20
Diluted earnings per common share		0.79		1.20

The unaudited pro-forma consolidated financial information is presented for illustrative purposes only and does not indicate the financial results of the combined company had the companies actually been combined at the beginning of the period presented and had the impact of possible significant revenue enhancements and expense efficiencies from in-market cost savings, among other factors, been considered and, accordingly, does not attempt to predict or suggest future results. It also does not necessarily reflect what the historical results of the combined company would have been had the companies been combined during this period.

Acquisition of The Bank of Commerce

On February 28, 2017, the Company completed its acquisition of all of the issued and outstanding shares of common stock of The Bank of Commerce (“BOC”), a Florida state-chartered bank that operated in the Sarasota, Florida area, pursuant to an acquisition agreement, dated December 1, 2016, by and between HBI and Bank of Commerce Holdings, Inc. (“BCHI”), parent company of BOC. The Company merged BOC with and into Centennial effective as of the close of business on February 28, 2017.

The acquisition of BOC was conducted in accordance with the provisions of Section 363 of the United States Bankruptcy Code (the “Bankruptcy Code”) pursuant to a voluntary petition for relief under Chapter 11 of the Bankruptcy Code filed by BCHI with the United States Bankruptcy Court for the Middle District of Florida (the “Bankruptcy Court”). The sale of BOC by BCHI was subject to certain bidding procedures approved by the Bankruptcy Court, under which the Company submitted an initial bid to purchase the outstanding shares of BOC and was deemed to be the successful bidder after a subsequent auction was held. The Bankruptcy Court entered a final order on December 9, 2016 approving the sale of BOC to the Company pursuant to and in accordance with the acquisition agreement.

Under the terms of the acquisition agreement, the Company paid an aggregate of approximately $4.2 million in cash for the acquisition, which included the purchase of all outstanding shares of BOC common stock, the discounted purchase of certain subordinated debentures issued by BOC from the existing holders of the subordinated debentures, and an expense reimbursement to BCHI for approved administrative claims in connection with the bankruptcy proceeding.

BOC formerly operated three branch locations in the Sarasota, Florida area. Including the effects of the purchase accounting adjustments, as of acquisition date, BOC had approximately $178.1 million in total assets, $118.5 million in loans after $5.8 million of loan discounts, and $139.8 million in deposits.

13

The Company has determined that the acquisition of the net assets of BOC constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. The following schedule is a breakdown of the assets acquired and liabilities assumed as of the acquisition date:

	The Bank of Commerce
	Acquired from BOC			Fair Value Adjustments			As Recorded by HBI
	(Dollars in thousands)
Assets
Cash and due from banks	$	4,610		$	—		$	4,610
Interest-bearing deposits with other banks		14,360			—			14,360
Investment securities		25,926			(113	)		25,813
Loans receivable		124,289			(5,751	)		118,538
Allowance for loan losses		(2,037	)		2,037			—
Loans receivable, net		122,252			(3,714	)		118,538
Bank premises and equipment, net		1,887			—			1,887
Foreclosed assets held for sale		8,523			(3,165	)		5,358
Accrued interest receivable		481			—			481
Deferred tax asset, net		—			4,198			4,198
Core deposit intangible		—			968			968
Other assets		1,880			—			1,880
Total assets acquired	$	179,919		$	(1,826	)	$	178,093
Liabilities
Deposits
Demand and non-interest-bearing	$	27,245		$	—		$	27,245
Savings and interest-bearing transaction accounts		32,300			—			32,300
Time deposits		79,945			270			80,215
Total deposits		139,490			270			139,760
FHLB borrowed funds		30,000			42			30,042
Accrued interest payable and other liabilities		564			(255	)		309
Total liabilities assumed	$	170,054		$	57			170,111
Net assets acquired								7,982
Purchase price								4,175
Pre-tax gain on acquisition							$	3,807

The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above:

Cash and due from banks and interest-bearing deposits with other banks – The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets.

Investment securities – Investment securities were acquired from BOC with an $113,000 adjustment to market value based upon quoted market prices.

Loans – Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and current discount rates. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns.

14

The Company evaluated $106.8 million of the loans purchased in conjunction with the acquisition in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs, which were recorded with a $3.0 million discount. As a result, the fair value discount on these loans is being accreted into interest income over the weighted-average life of the loans using a constant yield method. The remaining $17.5 million of loans evaluated were considered purchased credit impaired loans within the provisions of FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and were recorded with a $2.8 million discount. These purchase credit impaired loans will recognize interest income through accretion of the difference between the carrying amount of the loans and the expected cash flows.

Bank premises and equipment – Bank premises and equipment were acquired from BOC at market value.

Foreclosed assets held for sale – These assets are presented at the estimated fair values that management expects to receive when the properties are sold, net of related costs to sell.

Accrued interest receivable – Accrued interest receivable was acquired from BOC at market value.

Deferred tax asset – The current and deferred income tax assets and liabilities are recorded to reflect the differences in the carrying values of the acquired assets and assumed liabilities for financial reporting purposes and the cost basis for federal income tax purposes, at the Company’s statutory federal and state income tax rate which was 39.225% at the time of acquisition.

Core deposit intangible – This intangible asset represents the value of the relationships that BOC had with its deposit customers. The fair value of this intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base, and the net maintenance cost attributable to customer deposits. The Company recorded $968,000 of core deposit intangible.

Deposits – The fair values used for the demand and savings deposits that comprise the transaction accounts acquired, by definition equal the amount payable on demand at the acquisition date. The $270,000 fair value adjustment applied for time deposits was because the weighted-average interest rate of BOC’s certificates of deposits was estimated to be above the current market rates.

FHLB borrowed funds – The fair value of FHLB borrowed funds is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

Accrued interest payable and other liabilities – The fair value used represents the adjustment of certain estimated liabilities from BOC.

The Company’s operating results for the period ended December 31, 2017, include the operating results of the acquired assets and assumed liabilities subsequent to the acquisition date. Due to the fair value adjustments recorded and the fact BOC total assets acquired are less than 5% of total assets as of December 31, 2017 excluding BOC as recorded by HBI as of acquisition date, historical results are not believed to be material to the Company’s results, and thus no pro-forma information is presented.

Acquisition of Giant Holdings, Inc.

On February 23, 2017, the Company completed its acquisition of Giant Holdings, Inc. (“GHI”), parent company of Landmark Bank, N.A. (“Landmark”), pursuant to a definitive agreement and plan of merger whereby GHI merged with and into HBI and, immediately thereafter, Landmark merged with and into Centennial. The Company paid a purchase price to the GHI shareholders of approximately $96.0 million for the GHI acquisition. Under the terms of the agreement, shareholders of GHI received 2,738,038 shares of the Company’s common stock valued at approximately $77.5 million as of February 23, 2017, plus approximately $18.5 million in cash in exchange for all outstanding shares of GHI common stock.

GHI formerly operated six branch locations in the Ft. Lauderdale, Florida area. Including the effects of the purchase accounting adjustments, as of acquisition date, GHI had approximately $398.1 million in total assets, $327.8 million in loans after $8.1 million of loan discounts, and $304.0 million in deposits.

15

The Company has determined that the acquisition of the net assets of GHI constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. The following schedule is a breakdown of the assets acquired and liabilities assumed as of the acquisition date:

	Giant Holdings, Inc.
	Acquired from GHI			Fair Value Adjustments			As Recorded by HBI
	(Dollars in thousands)
Assets
Cash and due from banks	$	41,019		$	—		$	41,019
Interest-bearing deposits with other banks		4,057			1			4,058
Investment securities		1,961			(5	)		1,956
Loans receivable		335,886			(6,517	)		329,369
Allowance for loan losses		(4,568	)		4,568			—
Loans receivable, net		331,318			(1,949	)		329,369
Bank premises and equipment, net		2,111			608			2,719
Cash value of life insurance		10,861			—			10,861
Accrued interest receivable		850			—			850
Deferred tax asset, net		2,286			1,807			4,093
Core deposit and other intangibles		172			3,238			3,410
Other assets		254			(489	)		(235	)
Total assets acquired	$	394,889		$	3,211		$	398,100
Liabilities
Deposits
Demand and non-interest-bearing	$	75,993		$	—		$	75,993
Savings and interest-bearing transaction accounts		139,459			—			139,459
Time deposits		88,219			324			88,543
Total deposits		303,671			324			303,995
FHLB borrowed funds		26,047			431			26,478
Accrued interest payable and other liabilities		14,552			18			14,570
Total liabilities assumed		344,270			773			345,043
Equity
Total equity assumed		50,619			(50,619	)		—
Total liabilities and equity assumed	$	394,889		$	(49,846	)		345,043
Net assets acquired								53,057
Purchase price								96,015
Goodwill							$	42,958

The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above:

Cash and due from banks and interest-bearing deposits with other banks – The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets.

Investment securities – Investment securities were acquired from GHI with an approximately $5,000 adjustment to market value based upon quoted market prices.

Loans – Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and current discount rates. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns.

16

The Company evaluated $315.6 million of the loans purchased in conjunction with the acquisition in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs, which were recorded with a $3.6 million discount. As a result, the fair value discount on these loans is being accreted into interest income over the weighted-average life of the loans using a constant yield method. The remaining $20.3 million of loans evaluated were considered purchased credit impaired loans within the provisions of FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and were recorded with a $4.5 million discount. These purchase credit impaired loans will recognize interest income through accretion of the difference between the carrying amount of the loans and the expected cash flows. The acquired GHI loan balance includes $1.6 million of discount on purchased loans.

Bank premises and equipment – Bank premises and equipment were acquired from GHI with a $608,000 adjustment to market value. This represents the difference between current appraisals completed in connection with the acquisition and book value acquired.

Cash value of life insurance – Cash value of life insurance was acquired from GHI at market value.

Accrued interest receivable – Accrued interest receivable was acquired from GHI at market value.

Deferred tax asset – The current and deferred income tax assets and liabilities are recorded to reflect the differences in the carrying values of the acquired assets and assumed liabilities for financial reporting purposes and the cost basis for federal income tax purposes, at the Company’s statutory federal and state income tax rate which was 39.225% at the time of acquisition.

Core deposit intangible – This intangible asset represents the value of the relationships that GHI had with its deposit customers. The fair value of this intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base, and the net maintenance cost attributable to customer deposits. The Company recorded $3.4 million of core deposit intangible.

Deposits – The fair values used for the demand and savings deposits that comprise the transaction accounts acquired, by definition equal the amount payable on demand at the acquisition date. The $324,000 fair value adjustment applied for time deposits was because the weighted-average interest rate of GHI’s certificates of deposits was estimated to be above the current market rates.

FHLB borrowed funds – The fair value of FHLB borrowed funds is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

Accrued interest payable and other liabilities – The fair value used represents the adjustments of certain estimated liabilities from GHI.

17

3. Investment Securities

The amortized cost and estimated fair value of investment securities that are classified as available-for-sale and held-to-maturity are as follows:

	September 30, 2018
	Available-for-Sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	427,722	$	138	$	(7,985	)	$	419,875
Residential mortgage-backed securities		533,106		294		(15,386	)		518,014
Commercial mortgage-backed securities		478,409		87		(14,636	)		463,860
State and political subdivisions		311,117		1,235		(6,202	)		306,150
Other securities		35,554		1,160		(183	)		36,531
Total	$	1,785,908	$	2,914	$	(44,392	)	$	1,744,430

	Held-to-Maturity
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	3,587	$	—	$	(87	)	$	3,500
Residential mortgage-backed securities		47,670		23		(1,395	)		46,298
Commercial mortgage-backed securities		12,705		—		(370	)		12,335
State and political subdivisions		135,304		1,368		(253	)		136,419
Total	$	199,266	$	1,391	$	(2,105	)	$	198,552

	December 31, 2017
	Available-for-Sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	407,387	$	899	$	(1,982	)	$	406,304
Residential mortgage-backed securities		481,981		538		(4,919	)		477,600
Commercial mortgage-backed securities		497,870		332		(4,430	)		493,772
State and political subdivisions		247,292		3,783		(774	)		250,301
Other securities		34,617		1,225		(302	)		35,540
Total	$	1,669,147	$	6,777	$	(12,407	)	$	1,663,517

	Held-to-Maturity
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	5,791	$	15	$	(15	)	$	5,791
Residential mortgage-backed securities		56,982		107		(402	)		56,687
Commercial mortgage-backed securities		16,625		114		(40	)		16,699
State and political subdivisions		145,358		3,031		(27	)		148,362
Total	$	224,756	$	3,267	$	(484	)	$	227,539

18

Assets, principally investment securities, having a carrying value of approximately $1.17 billion and $1.18 billion at September 30, 2018 and December 31, 2017, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. Also, investment securities pledged as collateral for repurchase agreements totaled approximately $142.1 million and $147.8 million at September 30, 2018 and December 31, 2017, respectively.

The amortized cost and estimated fair value of securities classified as available-for-sale and held-to-maturity at September 30, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	188,664	$	185,303	$	64,821	$	65,527
Due after one year through five years		997,039		975,767		89,950		89,016
Due after five years through ten years		468,969		455,579		11,773		11,472
Due after ten years		131,236		127,781		32,722		32,537
Total	$	1,785,908	$	1,744,430	$	199,266	$	198,552

For purposes of the maturity tables, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on anticipated maturities. The mortgage-backed securities may mature earlier than their weighted-average contractual maturities because of principal prepayments.

During the three-month period ended September 30, 2018, approximately $1.4 million in available-for-sale securities were sold. During nine-month period ended September 30, 2018, approximately $2.1 million in available-for-sale securities were sold. There were no realized gains or losses recorded on the sales for the three and nine-month periods ended September 30, 2018. The income tax expense/benefit to net security gains and losses was 26.135% of the gross amounts.

During the three and nine-month periods ended September 30, 2017, approximately $234,000 and $27.4 million, respectively, in available-for-sale securities were sold. The gross realized gains on the sale for the three-month period ended September 30, 2017 totaled approximately $136,000. The gross realized gains and losses on the sales for the nine-month period ended September 30, 2017 totaled approximately $1.1 million and $127,000, respectively. The income tax expense/benefit to net security gains and losses was 39.225% of the gross amounts.

During the three-month and nine-month periods ended September 30, 2018, no held-to-maturity securities were sold. During the nine-month period ended September 30, 2017, one held-to-maturity security experienced its second downgrade in its credit rating. The Company made a strategic decision to sell this held-to-maturity security for approximately $483,000, which resulted in a gross realized loss on the sale for the nine-month period ended September 30, 2017 of approximately $7,000.

The Company evaluates all securities quarterly to determine if any unrealized losses are deemed to be other than temporary. In completing these evaluations, the Company follows the requirements of FASB ASC 320, Investments—Debt and Equity Securities. Certain investment securities are valued less than their historical cost. These declines are primarily the result of the rate for these investments yielding less than current market rates. Based on evaluation of available evidence, management believes the declines in fair value for these securities are temporary. The Company does not intend to sell or believe it will be required to sell these investments before recovery of their amortized cost basis, which may be maturity. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced, and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

During the three and nine-month periods ended September 30, 2018, no securities were deemed to have other-than-temporary impairment.

19

At September 30, 2018, the Company had investment securities with approximately $26.9 million in unrealized losses, which have been in continuous loss positions for more than twelve months. Excluding impairment write downs taken in prior periods, the Company’s assessments indicated that the cause of the market depreciation was primarily the change in interest rates and not the issuer’s financial condition, or downgrades by rating agencies. In addition, approximately 67.7% of the Company’s investment portfolio matures in five years or less. As a result, the Company has the ability and intent to hold such securities until maturity.

The following shows gross unrealized losses and estimated fair value of investment securities classified as available-for-sale and held-to-maturity with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
U.S. government-sponsored enterprises	$	253,980	$	(3,686	)	$	135,156	$	(4,386	)	$	389,136	$	(8,072	)
Residential mortgage-backed securities		212,531		(4,745	)		315,803		(12,036	)		528,334		(16,781	)
Commercial mortgage-backed securities		233,726		(6,738	)		226,854		(8,268	)		460,580		(15,006	)
State and political subdivisions		174,397		(4,385	)		42,238		(2,070	)		216,635		(6,455	)
Other securities		—		—			9,792		(183	)		9,792		(183	)
Total	$	874,634	$	(19,554	)	$	729,843	$	(26,943	)	$	1,604,477	$	(46,497	)

	December 31, 2017
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
U.S. government-sponsored enterprises	$	234,213	$	(1,288	)	$	40,122	$	(709	)	$	274,335	$	(1,997	)
Residential mortgage-backed securities		389,541		(3,656	)		99,989		(1,665	)		489,530		(5,321	)
Commercial mortgage-backed securities		314,301		(2,343	)		120,365		(2,127	)		434,666		(4,470	)
State and political subdivisions		41,299		(331	)		20,980		(470	)		62,279		(801	)
Other securities		—		—			9,852		(302	)		9,852		(302	)
Total	$	979,354	$	(7,618	)	$	291,308	$	(5,273	)	$	1,270,662	$	(12,891	)

Income earned on securities for the three and nine months ended September 30, 2018 and 2017, is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Taxable:	(In thousands)
Available-for-sale	$	8,578	$	6,527	$	25,571	$	17,001
Held-to-maturity		433		544		1,389		1,982
Non-taxable:
Available-for-sale		2,205		1,627		6,006		4,757
Held-to-maturity		1,222		1,405		3,795		4,185
Total	$	12,438	$	10,103	$	36,761	$	27,925

20

4. Loans Receivable

The various categories of loans receivable are summarized as follows:

	September 30, 2018		December 31, 2017
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	4,685,827	$	4,600,117
Construction/land development		1,550,910		1,700,491
Agricultural		72,930		82,229
Residential real estate loans
Residential 1-4 family		1,982,666		1,970,311
Multifamily residential		608,608		441,303
Total real estate		8,900,941		8,794,451
Consumer		428,192		46,148
Commercial and industrial		1,303,841		1,297,397
Agricultural		58,644		49,815
Other		141,197		143,377
Total loans receivable	$	10,832,815	$	10,331,188

During the three and nine-month periods ended September 30, 2018, the Company sold $836,000 and $7.4 million, respectively, of the guaranteed portion of certain SBA loans, which resulted in a gain of approximately $47,000 and $491,000, respectively. During the three and nine-month periods ended September 30, 2017, the Company sold $3.1 million and $12.9 million, respectively, of the guaranteed portion of certain SBA loans, which resulted in a gain of approximately $163,000 and $738,000, respectively.

Mortgage loans held for sale of approximately $39.9 million and $44.3 million at September 30, 2018 and December 31, 2017, respectively, are included in residential 1-4 family loans. Mortgage loans held for sale are carried at the lower of cost or fair value, determined using an aggregate basis. Gains and losses resulting from sales of mortgage loans are recognized when the respective loans are sold to investors. Gains and losses are determined by the difference between the selling price and the carrying amount of the loans sold, net of discounts collected or paid. The Company obtains forward commitments to sell mortgage loans to reduce market risk on mortgage loans in the process of origination and mortgage loans held for sale. The forward commitments acquired by the Company for mortgage loans in process of origination are considered mandatory forward commitments. Because these commitments are structured on a mandatory basis, the Company is required to substitute another loan or to buy back the commitment if the original loan does not fund. These commitments are derivative instruments and their fair values at September 30, 2018 and December 31, 2017 were not material.

The Company had $3.08 billion of purchased loans, which includes $120.8 million of discount for credit losses on purchased loans, at September 30, 2018. The Company had $40.5 million and $80.3 million remaining of non-accretable discount for credit losses on purchased loans and accretable discount for credit losses on purchased loans, respectively, as of September 30, 2018. The Company had $3.46 billion of purchased loans, which includes $146.6 million of discount for credit losses on purchased loans, at December 31, 2017. The Company had $51.9 million and $94.7 million remaining of non-accretable discount for credit losses on purchased loans and accretable discount for credit losses on purchased loans, respectively, as of December 31, 2017.

A description of our accounting policies for loans, impaired loans, non-accrual loans and allowance for loan losses are set forth in our 2017 Form 10-K filed with the SEC on February 27, 2018. There have been no significant changes to these policies since December 31, 2017.

21

5. Allowance for Loan Losses, Credit Quality and Other

The Company’s allowance for loan loss as of September 30, 2018 and December 31, 2017 was significantly impacted by Hurricane Irma which made initial landfall in the Florida Keys and a second landfall just south of Naples, Florida, as a Category 4 hurricane on September 10, 2017. Based on initial assessments of the potential credit impact and damage to the approximately $2.41 billion in legacy loans receivable we have in the disaster area, the Company established a $32.9 million storm-related provision for loan losses as of December 31, 2017. As of September 30, 2018, charge-offs of $2.5 million have been taken against the storm-related provision for loan losses.

The following table presents a summary of changes in the allowance for loan losses:

	Nine Months Ended September 30, 2018
Allowance for loan losses:	(In thousands)
Beginning balance	$	110,266
Loans charged off		(7,173	)
Recoveries of loans previously charged off		2,776
Net loans recovered (charged off)		(4,397	)
Provision for loan losses		4,322
Balance, September 30, 2018	$	110,191

22

The following tables present the balance in the allowance for loan losses for the three and nine-month period ended September 30, 2018, and the allowance for loan losses and recorded investment in loans based on portfolio segment by impairment method as of September 30, 2018. Allocation of a portion of the allowance to one type of loans does not preclude its availability to absorb losses in other categories.

	Three Months Ended September 30, 2018
	Construction/ Land Development			Other Commercial Real Estate			Residential Real Estate			Commercial & Industrial			Consumer & Other			Unallocated		Total
Allowance for loan losses:	(In thousands)
Beginning balance	$	20,243		$	45,985		$	24,205		$	16,193		$	3,518		$	1,372	$	111,516
Loans charged off		(337	)		(144	)		(608	)		(744	)		(668	)		—		(2,501	)
Recoveries of loans previously charged off		90			195			309			251			331			—		1,176
Net loans recovered (charged off)		(247	)		51			(299	)		(493	)		(337	)		—		(1,325	)
Provision for loan losses		(982	)		(683	)		193			(1,923	)		479			2,916		—
Balance, September 30	$	19,014		$	45,353		$	24,099		$	13,777		$	3,660		$	4,288	$	110,191

	Nine Months Ended September 30, 2018
	Construction/ Land Development			Other Commercial Real Estate			Residential Real Estate			Commercial & Industrial			Consumer & Other			Unallocated		Total
Allowance for loan losses:	(In thousands)
Beginning balance	$	20,343		$	43,939		$	24,506		$	15,292		$	3,334		$	2,852	$	110,266
Loans charged off		(399	)		(981	)		(2,339	)		(1,816	)		(1,638	)		—		(7,173	)
Recoveries of loans previously charged off		209			383			844			568			772			—		2,776
Net loans recovered (charged off)		(190	)		(598	)		(1,495	)		(1,248	)		(866	)		—		(4,397	)
Provision for loan losses		(1,139	)		2,012			1,088			(267	)		1,192			1,436		4,322
Balance, September 30	$	19,014		$	45,353		$	24,099		$	13,777		$	3,660		$	4,288	$	110,191

	As of September 30, 2018
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Unallocated		Total
Allowance for loan losses:	(In thousands)
Period end amount allocated to:
Loans individually evaluated for impairment	$	854	$	533	$	115	$	9	$	—	$	—	$	1,511
Loans collectively evaluated for impairment		18,150		44,590		23,355		13,672		3,660		4,288		107,715
Loans evaluated for impairment balance, September 30		19,004		45,123		23,470		13,681		3,660		4,288		109,226
Purchased credit impaired loans		10		230		629		96		—		—		965
Balance, September 30	$	19,014	$	45,353	$	24,099	$	13,777	$	3,660	$	4,288	$	110,191
Loans receivable:
Period end amount allocated to:
Loans individually evaluated for impairment	$	14,876	$	60,572	$	19,933	$	30,716	$	2,064	$	—	$	128,161
Loans collectively evaluated for impairment		1,526,689		4,613,352		2,534,630		1,256,796		623,747		—		10,555,214
Loans evaluated for impairment balance, September 30		1,541,565		4,673,924		2,554,563		1,287,512		625,811		—		10,683,375
Purchased credit impaired loans		9,345		84,833		36,711		16,329		2,222		—		149,440
Balance, September 30	$	1,550,910	$	4,758,757	$	2,591,274	$	1,303,841	$	628,033	$	—	$	10,832,815

23

The following tables present the balances in the allowance for loan losses for the nine-month period ended September 30, 2017 and the year ended December 31, 2017, and the allowance for loan losses and recorded investment in loans receivable based on portfolio segment by impairment method as of December 31, 2017. Allocation of a portion of the allowance to one type of loans does not preclude its availability to absorb losses in other categories.

	Year Ended December 31, 2017
	Construction/ Land Development			Other Commercial Real Estate			Residential Real Estate			Commercial & Industrial			Consumer & Other			Unallocated			Total
Allowance for loan losses:	(In thousands)
Beginning balance	$	11,522		$	28,188		$	16,517		$	12,756		$	4,188		$	6,831		$	80,002
Loans charged off		(326	)		(1,655	)		(2,288	)		(779	)		(1,063	)		—			(6,111	)
Recoveries of loans previously charged off		227			710			254			252			503			—			1,946
Net loans recovered (charged off)		(99	)		(945	)		(2,034	)		(527	)		(560	)		—			(4,165	)
Provision for loan losses		1,419			600			3,232			599			(565	)		(984	)		4,301
Balance, September 30		12,842			27,843			17,715			12,828			3,063			5,847			80,138
Loans charged off		(1,306	)		(2,094	)		(1,692	)		(4,799	)		(1,469	)		—			(11,360	)
Recoveries of loans previously charged off		235			332			422			212			338			—			1,539
Net loans recovered (charged off)		(1,071	)		(1,762	)		(1,270	)		(4,587	)		(1,131	)		—			(9,821	)
Provision for loan losses		8,572			17,858			8,061			7,051			1,402			(2,995	)		39,949
Balance, December 31	$	20,343		$	43,939		$	24,506		$	15,292		$	3,334		$	2,852		$	110,266

	As of December 31, 2017
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Unallocated		Total
Allowance for loan losses:	(In thousands)
Period end amount allocated to:
Loans individually evaluated for impairment	$	1,378	$	768	$	188	$	843	$	7	$	—	$	3,184
Loans collectively evaluated for impairment		18,954		42,824		23,341		14,290		3,310		2,852		105,571
Loans evaluated for impairment balance, December 31		20,332		43,592		23,529		15,133		3,317		2,852		108,755
Purchased credit impaired loans		11		347		977		159		17		—		1,511
Balance, December 31	$	20,343	$	43,939	$	24,506	$	15,292	$	3,334	$	2,852	$	110,266
Loans receivable:
Period end amount allocated to:
Loans individually evaluated for impairment	$	26,860	$	124,124	$	20,431	$	21,867	$	500	$	—	$	193,782
Loans collectively evaluated for impairment		1,658,519		4,442,201		2,341,081		1,261,161		236,392		—		9,939,354
Loans evaluated for impairment balance, December 31		1,685,379		4,566,325		2,361,512		1,283,028		236,892		—		10,133,136
Purchased credit impaired loans		15,112		116,021		50,102		14,369		2,448		—		198,052
Balance, December 31	$	1,700,491	$	4,682,346	$	2,411,614	$	1,297,397	$	239,340	$	—	$	10,331,188

24

The following is an aging analysis for loans receivable as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	6,496	$	4,411	$	22,628	$	33,535	$	4,652,292	$	4,685,827	$	11,405
Construction/land development		803		584		8,517		9,904		1,541,006		1,550,910		3,551
Agricultural		—		—		30		30		72,900		72,930		—
Residential real estate loans
Residential 1-4 family		9,141		2,441		15,821		27,403		1,955,263		1,982,666		1,509
Multifamily residential		482		—		983		1,465		607,143		608,608		—
Total real estate		16,922		7,436		47,979		72,337		8,828,604		8,900,941		16,465
Consumer		784		73		2,004		2,861		425,331		428,192		1,796
Commercial and industrial		4,868		384		6,449		11,701		1,292,140		1,303,841		2,006
Agricultural and other		1,260		23		33		1,316		198,525		199,841		—
Total	$	23,834	$	7,916	$	56,465	$	88,215	$	10,744,600	$	10,832,815	$	20,267

	December 31, 2017
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	6,331	$	1,480	$	12,719	$	20,530	$	4,579,587	$	4,600,117	$	3,119
Construction/land development		834		13		8,258		9,105		1,691,386		1,700,491		3,247
Agricultural		—		221		19		240		81,989		82,229		—
Residential real estate loans
Residential 1-4 family		9,066		2,013		16,612		27,691		1,942,620		1,970,311		2,175
Multifamily residential		—		—		253		253		441,050		441,303		100
Total real estate		16,231		3,727		37,861		57,819		8,736,632		8,794,451		8,641
Consumer		252		51		171		474		45,674		46,148		26
Commercial and industrial		2,073		1,030		6,528		9,631		1,287,766		1,297,397		1,944
Agricultural and other		288		113		137		538		192,654		193,192		54
Total	$	18,844	$	4,921	$	44,697	$	68,462	$	10,262,726	$	10,331,188	$	10,665

Non-accruing loans at September 30, 2018 and December 31, 2017 were $36.2 million and $34.0 million, respectively.

25

The following is a summary of the impaired loans as of September 30, 2018 and December 31, 2017:

	September 30, 2018
							Three Months Ended				Nine Months Ended
	Unpaid Contractual Principal Balance		Total Recorded Investment		Allocation of Allowance for Loan Losses		Average Recorded Investment		Interest Recognized		Average Recorded Investment		Interest Recognized
Loans without a specific valuation allowance	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	44	$	44	$	—	$	36	$	1	$	33	$	2
Construction/land development		18		18		—		18		—		30		1
Agricultural		13		13		—		14		—		16		1
Residential real estate loans
Residential 1-4 family		286		286		—		237		5		186		14
Multifamily residential		—		—		—		—		—		—		—
Total real estate		361		361		—		305		6		265		18
Consumer		27		28		—		29		1		23		2
Commercial and industrial		202		202		—		225		3		189		8
Agricultural and other		—		—		—		—		—		—		—
Total loans without a specific valuation allowance		590		591		—		559		10		477		28
Loans with a specific valuation allowance
Real estate:
Commercial real estate loans
Non-farm/non-residential		41,299		37,365		524		37,770		375		33,965		1,107
Construction/land development		13,509		12,446		854		12,614		75		12,398		234
Agricultural		299		303		9		410		4		412		14
Residential real estate loans
Residential 1-4 family		19,248		17,241		67		17,678		51		18,639		429
Multifamily residential		2,405		2,405		48		2,561		16		2,116		66
Total real estate		76,760		69,760		1,502		71,033		521		67,530		1,850
Consumer		2,245		2,003		—		1,092		24		638		42
Commercial and industrial		10,269		6,619		9		8,276		35		11,361		223
Agricultural and other		33		33		—		103		—		174		3
Total loans with a specific valuation allowance		89,307		78,415		1,511		80,504		580		79,703		2,118
Total impaired loans
Real estate:
Commercial real estate loans
Non-farm/non-residential		41,343		37,409		524		37,806		376		33,998		1,109
Construction/land development		13,527		12,464		854		12,632		75		12,428		235
Agricultural		312		316		9		424		4		428		15
Residential real estate loans
Residential 1-4 family		19,534		17,527		67		17,915		56		18,825		443
Multifamily residential		2,405		2,405		48		2,561		16		2,116		66
Total real estate		77,121		70,121		1,502		71,338		527		67,795		1,868
Consumer		2,272		2,031		—		1,121		25		661		44
Commercial and industrial		10,471		6,821		9		8,501		38		11,550		231
Agricultural and other		33		33		—		103		—		174		3
Total impaired loans	$	89,897	$	79,006	$	1,511	$	81,063	$	590	$	80,180	$	2,146

Note: Purchased credit impaired loans are accounted for on a pooled basis under ASC 310-30. All of these pools are currently considered to be performing, resulting in none of the purchased credit impaired loans being classified as impaired loans as of September 30, 2018.

26

	December 31, 2017
							Year Ended
	Unpaid Contractual Principal Balance		Total Recorded Investment		Allocation of Allowance for Loan Losses		Average Recorded Investment		Interest Recognized
Loans without a specific valuation allowance	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	29	$	29	$	—	$	23	$	2
Construction/land development		64		64		—		31		3
Agricultural		19		—		—		—		1
Residential real estate loans
Residential 1-4 family		115		115		—		135		7
Multifamily residential		—		—		—		—		—
Total real estate		227		208		—		189		13
Consumer		18		—		—		—		1
Commercial and industrial		105		105		—		85		7
Agricultural and other		—		—		—		—		—
Total loans without a specific valuation allowance		350		313		—		274		21
Loans with a specific valuation allowance
Real estate:
Commercial real estate loans
Non-farm/non-residential		29,666		29,040		757		41,772		1,498
Construction/land development		12,976		12,157		1,378		10,556		262
Agricultural		281		303		11		268		11
Residential real estate loans
Residential 1-4 family		19,770		18,689		124		22,347		363
Multifamily residential		1,627		1,627		64		1,412		81
Total real estate		64,320		61,816		2,334		76,355		2,215
Consumer		179		191		—		163		—
Commercial and industrial		16,777		13,007		843		9,726		121
Agricultural and other		297		309		7		644		8
Total loans with a specific valuation allowance		81,573		75,323		3,184		86,888		2,344
Total impaired loans
Real estate:
Commercial real estate loans
Non-farm/non-residential		29,695		29,069		757		41,795		1,500
Construction/land development		13,040		12,221		1,378		10,587		265
Agricultural		300		303		11		268		12
Residential real estate loans
Residential 1-4 family		19,885		18,804		124		22,482		370
Multifamily residential		1,627		1,627		64		1,412		81
Total real estate		64,547		62,024		2,334		76,544		2,228
Consumer		197		191		—		163		1
Commercial and industrial		16,882		13,112		843		9,811		128
Agricultural and other		297		309		7		644		8
Total impaired loans	$	81,923	$	75,636	$	3,184	$	87,162	$	2,365

Note: Purchased credit impaired loans are accounted for on a pooled basis under ASC 310-30. All of these pools are currently considered to be performing resulting in none of the purchased credit impaired loans being classified as impaired loans as of December 31, 2017.

Interest recognized on impaired loans during the three months ended September 30, 2018 and 2017 was approximately $590,000 and $957,000, respectively. Interest recognized on impaired loans during the nine months ended September 30, 2018 and 2017 was approximately $2.1 million and $2.0 million, respectively. The amount of interest recognized on impaired loans on the cash basis is not materially different than the accrual basis.

27

Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk rating of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) non-performing loans and (v) the general economic conditions in Arkansas, Florida, Alabama and New York.

The Company utilizes a risk rating matrix to assign a risk rating to each of its loans. Loans are rated on a scale from 1 to 8. Descriptions of the general characteristics of the 8 risk ratings are as follows:

• Risk rating 1 – Excellent. Loans in this category are to persons or entities of unquestionable financial strength, a highly liquid financial position, with collateral that is liquid and well margined. These borrowers have performed without question on past obligations, and the Bank expects their performance to continue. Internally generated cash flow covers current maturities of long-term debt by a substantial margin. Loans secured by bank certificates of deposit and savings accounts, with appropriate holds placed on the accounts, are to be rated in this category.

• Risk rating 2 – Good. These are loans to persons or entities with strong financial condition and above-average liquidity that have previously satisfactorily handled their obligations with the Bank. Collateral securing the Bank’s debt is margined in accordance with policy guidelines. Internally generated cash flow covers current maturities of long-term debt more than adequately. Unsecured loans to individuals supported by strong financial statements and on which repayment is satisfactory may be included in this classification.

• Risk rating 3 – Satisfactory. Loans to persons or entities with an average financial condition, adequate collateral margins, adequate cash flow to service long-term debt, and net worth comprised mainly of fixed assets are included in this category. These entities are minimally profitable now, with projections indicating continued profitability into the foreseeable future. Closely held corporations or businesses where a majority of the profits are withdrawn by the owners or paid in dividends are included in this rating category. Overall, these loans are basically sound.

• Risk rating 4 – Watch. Borrowers who have marginal cash flow, marginal profitability or have experienced an unprofitable year and a declining financial condition characterize these loans. The borrower has in the past satisfactorily handled debts with the Bank, but in recent months has either been late, delinquent in making payments, or made sporadic payments. While the Bank continues to be adequately secured, margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement and repayment capacity, but with collateral that appears to limit exposure. Included in this category are loans to borrowers in industries that are experiencing elevated risk.

• Risk rating 5 – Other Loans Especially Mentioned (“OLEM”). A loan criticized as OLEM has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. OLEM assets are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification.

• Risk rating 6 – Substandard. A loan classified as substandard is inadequately protected by the sound worth and paying capacity of the borrower or the collateral pledged. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual assets.

• Risk rating 7 – Doubtful. A loan classified as doubtful has all the weaknesses inherent in a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time; in fact, there is permanent impairment in the collateral securing the loan.

• Risk rating 8 – Loss. Assets classified as loss are considered uncollectible and of such little value that the continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may occur in the future. This classification is based upon current facts, not probabilities. Assets classified as loss should be charged-off in the period in which they became uncollectible.

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The Company’s classified loans include loans in risk ratings 6, 7 and 8. The following is a presentation of classified loans (excluding loans accounted for under ASC Topic 310-30) by class as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Risk Rated 6		Risk Rated 7		Risk Rated 8		Classified Total
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	41,424	$	484	$	—	$	41,908
Construction/land development		14,502		860		—		15,362
Agricultural		315		3		—		318
Residential real estate loans
Residential 1-4 family		23,782		253		—		24,035
Multifamily residential		983		—		—		983
Total real estate		81,006		1,600		—		82,606
Consumer		1,117		1		—		1,118
Commercial and industrial		11,237		881		—		12,118
Agricultural and other		50		—		—		50
Total risk rated loans	$	93,410	$	2,482	$	—	$	95,892

	December 31, 2017
	Risk Rated 6		Risk Rated 7		Risk Rated 8		Classified Total
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	20,933	$	518	$	—	$	21,451
Construction/land development		24,013		204		—		24,217
Agricultural		321		—		—		321
Residential real estate loans
Residential 1-4 family		23,420		564		—		23,984
Multifamily residential		939		—		—		939
Total real estate		69,626		1,286		—		70,912
Consumer		159		9		—		168
Commercial and industrial		12,818		80		—		12,898
Agricultural and other		136		—		—		136
Total risk rated loans	$	82,739	$	1,375	$	—	$	84,114

Loans may be classified, but not considered impaired, due to one of the following reasons: (1) The Company has established minimum dollar amount thresholds for loan impairment testing. All loans over $2.0 million that are rated 5 – 8 are individually assessed for impairment on a quarterly basis. Loans rated 5 – 8 that fall under the threshold amount are not individually tested for impairment and therefore are not included in impaired loans; (2) of the loans that are above the threshold amount and tested for impairment, after testing, some are considered to not be impaired and are not included in impaired loans.

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The following is a presentation of loans receivable by class and risk rating as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Risk Rated 1		Risk Rated 2		Risk Rated 3		Risk Rated 4		Risk Rated 5		Classified Total		Total
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	993	$	299	$	2,660,482	$	1,863,651	$	33,857	$	41,908	$	4,601,190
Construction/land development		20		736		261,009		1,263,515		923		15,362		1,541,565
Agricultural		—		—		35,336		36,099		981		318		72,734
Residential real estate loans
Residential 1-4 family		770		750		1,454,690		461,225		7,536		24,035		1,949,006
Multifamily residential		—		—		398,294		206,280		—		983		605,557
Total real estate		1,783		1,785		4,809,811		3,830,770		43,297		82,606		8,770,052
Consumer		13,051		995		397,060		13,617		129		1,118		425,970
Commercial and industrial		21,669		8,805		589,856		624,100		30,964		12,118		1,287,512
Agricultural and other		1,045		3,388		134,301		60,520		537		50		199,841
Total risk rated loans	$	37,548	$	14,973	$	5,931,028	$	4,529,007	$	74,927	$	95,892		10,683,375
Purchased credit impaired loans														149,440
Total loans receivable													$	10,832,815

	December 31, 2017
	Risk Rated 1		Risk Rated 2		Risk Rated 3		Risk Rated 4		Risk Rated 5		Classified Total		Total
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	1,015	$	558	$	2,595,844	$	1,745,778	$	119,656	$	21,451	$	4,484,302
Construction/land development		28		583		280,980		1,373,133		6,438		24,217		1,685,379
Agricultural		—		19		53,018		27,515		1,150		321		82,023
Residential real estate loans
Residential 1-4 family		1,140		969		1,414,849		475,619		11,658		23,984		1,928,219
Multifamily residential		—		—		329,070		103,071		213		939		433,293
Total real estate		2,183		2,129		4,673,761		3,725,116		139,115		70,912		8,613,216
Consumer		13,106		808		22,479		8,532		70		168		45,163
Commercial and industrial		20,870		7,543		627,316		592,088		22,313		12,898		1,283,028
Agricultural and other		1,986		3,914		147,323		38,370		—		136		191,729
Total risk rated loans	$	38,145	$	14,394	$	5,470,879	$	4,364,106	$	161,498	$	84,114		10,133,136
Purchased credit impaired loans														198,052
Total loans receivable													$	10,331,188

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The following is a presentation of troubled debt restructurings (“TDRs”) by class as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Number of Loans		Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
Real estate:	(Dollars in thousands)
Commercial real estate loans
Non-farm/non-residential		16	$	16,018	$	8,177	$	742	$	4,494	$	13,413
Construction/land development		3		641		546		69		—		615
Agricultural		2		345		283		16		—		299
Residential real estate loans
Residential 1-4 family		24		4,494		1,105		353		1,035		2,493
Multifamily residential		3		1,701		1,281		—		287		1,568
Total real estate		48		23,199		11,392		1,180		5,816		18,388
Consumer		4		36		17		11		—		28
Commercial and industrial		13		1,062		396		105		—		501
Total		65	$	24,297	$	11,805	$	1,296	$	5,816	$	18,917

	December 31, 2017
	Number of Loans		Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
Real estate:	(Dollars in thousands)
Commercial real estate loans
Non-farm/non-residential		16	$	16,853	$	8,815	$	250	$	5,513	$	14,578
Construction/land development		5		782		689		75		—		764
Agricultural		2		345		282		22		—		304
Residential real estate loans
Residential 1-4 family		21		5,607		1,926		81		1,238		3,245
Multifamily residential		3		1,701		1,340		—		287		1,627
Total real estate		47		25,288		13,052		428		7,038		20,518
Consumer		3		19		—		18		—		18
Commercial and industrial		11		951		445		50		1		496
Agricultural and other		1		166		166		—		—		166
Total		62	$	26,424	$	13,663	$	496	$	7,039	$	21,198

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The following is a presentation of TDRs on non-accrual status as of September 30, 2018 and December 31, 2017 because they are not in compliance with the modified terms:

	September 30, 2018				December 31, 2017
	Number of Loans		Recorded Balance		Number of Loans		Recorded Balance
Real estate:	(Dollars in thousands)
Commercial real estate loans
Non-farm/non-residential		3	$	758		2	$	1,161
Agricultural		1		16		1		22
Residential real estate loans
Residential 1-4 family		9		787		8		850
Multifamily residential		1		146		1		153
Total real estate		14		1,707		12		2,186
Commercial and industrial		6		128		1		—
Total		20	$	1,835		13	$	2,186

The following is a presentation of total foreclosed assets as of September 30, 2018 and December 31, 2017:

	September 30, 2018		December 31, 2017
	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	5,858	$	9,766
Construction/land development		3,539		5,920
Agriculture		155
Residential real estate loans
Residential 1-4 family		3,885		2,654
Multifamily residential		70		527
Total foreclosed assets held for sale	$	13,507	$	18,867

The following is a summary of the purchased credit impaired loans acquired in the SPF, GHI, BOC and Stonegate acquisitions as of the dates of acquisition:

	SPF		GHI		BOC		Stonegate
	(In thousands)
Contractually required principal and interest at acquisition	$	3,496	$	22,379	$	18,586	$	98,444
Non-accretable difference (expected losses and foregone interest)		285		4,462		2,811		23,297
Cash flows expected to be collected at acquisition		3,211		17,917		15,775		75,147
Accretable yield		808		2,071		1,043		11,761
Basis in purchased credit impaired loans at acquisition	$	2,403	$	15,846	$	14,732	$	63,386

Changes in the carrying amount of the accretable yield for purchased credit impaired loans were as follows for the nine-month period ended September 30, 2018 for the Company’s acquisitions:

	Accretable Yield			Carrying Amount of Loans
	(In thousands)
Balance at beginning of period	$	41,803		$	198,052
Reforecasted future interest payments for loan pools		(459	)		—
Contractual accretion recorded to interest income		(13,206	)		13,206
Acquisitions		808			2,403
Adjustment to yield		8,519			—
Transfers to foreclosed assets held for sale		—			(2,156	)
Payments received, net		—			(62,065	)
Balance at end of period	$	37,465		$	149,440

32

The loan pools were evaluated by the Company and are currently forecasted to have a slower run-off than originally expected. As a result, the Company has reforecast the total accretable yield expectations for those loan pools by $459,000. This updated forecast does not change the expected weighted average yields on the loan pools.

During the 2018 impairment tests on the estimated cash flows of loans, the Company established that several loan pools were determined to have a materially projected credit improvement. As a result of this improvement, the Company will recognize approximately $8.5 million as an additional adjustment to yield over the weighted average life of the loans.

6. Goodwill and Core Deposits and Other Intangibles

Changes in the carrying amount and accumulated amortization of the Company’s goodwill and core deposits and other intangibles at September 30, 2018 and December 31, 2017, were as follows:

	September 30, 2018		December 31, 2017
Goodwill	(In thousands)
Balance, beginning of period	$	927,949	$	377,983
Acquisitions		30,459		549,966
Balance, end of period	$	958,408	$	927,949

	September 30, 2018			December 31, 2017
Core Deposit and Other Intangibles	(In thousands)
Balance, beginning of period	$	49,351		$	18,311
Acquisition		—			35,247
Amortization expense		(4,867	)		(2,576	)
Balance, September 30	$	44,484			50,982
Acquisitions					—
Amortization expense					(1,631	)
Balance, end of year				$	49,351

The carrying basis and accumulated amortization of core deposits and other intangibles at September 30, 2018 and December 31, 2017 were:

	September 30, 2018			December 31, 2017
	(In thousands)
Gross carrying basis	$	86,625		$	86,625
Accumulated amortization		(42,141	)		(37,274	)
Net carrying amount	$	44,484		$	49,351

Core deposit and other intangible amortization expense was approximately $1.6 million and $906,000 for the three months ended September 30, 2018 and 2017, respectively. Core deposit and other intangible amortization expense was approximately $4.9 million and $2.6 million for the nine months ended September 30, 2018 and 2017, respectively. Including all of the mergers completed as of December 31, 2017, HBI’s estimated amortization expense of core deposits and other intangibles for each of the years 2018 through 2023 is approximately: 2018 – $6.6 million; 2019 – $6.5 million; 2020 – $5.9 million; 2021 – $5.7 million; 2022 – $5.7 million; 2023 – $5.5 million.

The carrying amount of the Company’s goodwill was $958.4 million and $927.9 million at September 30, 2018 and December 31, 2017, respectively. Goodwill is tested annually for impairment during the fourth quarter. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements.

33

7. Other Assets

Other assets consist primarily of equity securities without a readily determinable fair value and other miscellaneous assets. As of September 30, 2018 and December 31, 2017, other assets were $187.3 million and $177.8 million, respectively.

The Company has equity securities without readily determinable fair values such as stock holdings in the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“Federal Reserve”) which are outside the scope of ASC Topic 321, Investments – Equity Securities (“ASC Topic 321”). These equity securities without a readily determinable fair value were $134.1 million and $132.1 million at September 30, 2018 and December 31, 2017, respectively, and are accounted for at cost.

The Company has equity securities such as stock holdings in First National Bankers’ Bank and other miscellaneous holdings which are accounted for under ASC Topic 321. These equity securities without a readily determinable fair value were $24.5 million and $23.9 million at September 30, 2018 and December 31, 2017, respectively. There were no transactions during the period that would indicate a material change in fair value. Therefore, these investments were accounted for at cost.

8. Deposits

The aggregate amount of time deposits with a minimum denomination of $250,000 was $784.8 million and $636.9 million at September 30, 2018 and December 31, 2017, respectively. The aggregate amount of time deposits with a minimum denomination of $100,000 was $1.25 billion and $998.3 million at September 30, 2018 and December 31, 2017, respectively. Interest expense applicable to certificates in excess of $100,000 totaled $4.9 million and $2.2 million for the three months ended September 30, 2018 and 2017, respectively. Interest expense applicable to certificates in excess of $100,000 totaled $11.5 million and $5.8 million for the nine months ended September 30, 2018 and 2017, respectively. As of September 30, 2018 and December 31, 2017, brokered deposits were $591.6 million and $1.03 billion, respectively.

Deposits totaling approximately $1.84 billion and $1.51 billion at September 30, 2018 and December 31, 2017, respectively, were public funds obtained primarily from state and political subdivisions in the United States.

9. Securities Sold Under Agreements to Repurchase

At September 30, 2018 and December 31, 2017, securities sold under agreements to repurchase totaled $142.1 million and $147.8 million, respectively. For the three-month periods ended September 30, 2018 and 2017, securities sold under agreements to repurchase daily weighted-average totaled $148.8 million and $135.9 million, respectively. For the nine-month periods ended September 30, 2018 and 2017, securities sold under agreements to repurchase daily weighted-average totaled $148.5 million and $129.6 million, respectively.

The remaining contractual maturity of securities sold under agreements to repurchase in the consolidated balance sheets as of September 30, 2018 and December 31, 2017 is presented in the following tables:

	September 30, 2018
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	26,134	$	—	$	—	$	—	$	26,134
Mortgage-backed securities		9,694		—		—		—		9,694
State and political subdivisions		90,715		—		—		—		90,715
Other securities		15,603		—		—		—		15,603
Total borrowings	$	142,146	$	—	$	—	$	—	$	142,146

34

	December 31, 2017
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	11,525	$	—	$	—	$	10,000	$	21,525
Mortgage-backed securities		21,255		—		—		—		21,255
State and political subdivisions		85,428		—		—		—		85,428
Other securities		19,581		—		—		—		19,581
Total borrowings	$	137,789	$	—	$	—	$	10,000	$	147,789

10. FHLB Borrowed Funds

The Company’s FHLB borrowed funds, which are secured by our loan portfolio, were $    1.36 billion and $1.30 billion at September 30, 2018 and December 31, 2017, respectively. At September 30, 2018, $750.0 million and $609.9 million of the outstanding balance were issued as short-term and long-term advances, respectively. At December 31, 2017, $525.0 million and $774.2 million of the outstanding balance were issued as short-term and long-term advances, respectively. The FHLB advances mature from the current year to 2033 with fixed interest rates ranging from 1.00% to 4.80% and are secured by loans and investments securities. Maturities of borrowings as of September 30, 2018 include: 2018 – $770.0 million; 2019 – $143.0 million; 2020 – $146.4 million; 2021 – zero; 2022 – zero; 2023 – zero; after 2023 – $300.4 million. Expected maturities will differ from contractual maturities because FHLB may have the right to call or HBI the right to prepay certain obligations. $300 million of the borrowings maturing after 2023 are callable by the FHLB within one year.

Additionally, the Company had $941.3 million and $695.3 million at September 30, 2018 and December 31, 2017, respectively, in letters of credit under a FHLB blanket borrowing line of credit, which are used to collateralize public deposits at September 30, 2018 and December 31, 2017, respectively.

11. Other Borrowings

The Company had zero other borrowings at September 30, 2018. The Parent Company took out a $20.0 million unsecured line of credit for general corporate purposes during 2015. The balance on this line of credit at September 30, 2018 and December 31, 2017 was zero.

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12. Subordinated Debentures

Subordinated debentures at September 30, 2018 and December 31, 2017 consisted of guaranteed payments on trust preferred securities with the following components:

	As of September 30, 2018		As of December 31, 2017
	(In thousands)
Trust preferred securities
Subordinated debentures, issued in 2006, due 2036, fixed rate of 6.75% during the first five years and at a floating rate of 1.85% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	$	3,093	$	3,093
Subordinated debentures, issued in 2004, due 2034, fixed rate of 6.00% during the first five years and at a floating rate of 2.00% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty		15,464		15,464
Subordinated debentures, issued in 2005, due 2035, fixed rate of 5.84% during the first five years and at a floating rate of 1.45% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty		25,774		25,774
Subordinated debentures, issued in 2004, due 2034, fixed rate of 4.29% during the first five years and at a floating rate of 2.50% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty		16,495		16,495
Subordinated debentures, issued in 2005, due 2035, floating rate of 2.15% above the three-month LIBOR rate, reset quarterly, currently callable without penalty		4,341		4,304
Subordinated debentures, issued in 2006, due 2036, fixed rate of 7.38% during the first five years and at a floating rate of 1.62% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty		5,638		5,569
Subordinated debt securities
Subordinated notes, net of issuance costs, issued in 2017, due 2027, fixed rate of 5.625% during the first five years and at a floating rate of 3.575% above the then three-month LIBOR rate, reset quarterly, thereafter, callable in 2022 without penalty		297,791		297,332
Total	$	368,596	$	368,031

The Company holds trust preferred securities with a face amount of $73.3 million which are currently callable without penalty based on the terms of the specific agreements. The trust preferred securities are tax-advantaged issues that qualify for Tier 1 capital treatment subject to certain limitations. Distributions on these securities are included in interest expense. Each of the trusts is a statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s subordinated debentures, the sole asset of each trust. The trust preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the subordinated debentures held by the trust. The Company wholly owns the common securities of each trust. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related subordinated debentures. The Company’s obligations under the subordinated securities and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each respective trust’s obligations under the trust securities issued by each respective trust.

The Bank acquired $12.5 million in trust preferred securities with a carrying value of $9.9 million and $9.8 million at September 30, 2018 and December 31, 2017, respectively, from the Stonegate acquisition. The difference between the fair value purchased of $9.9 million and the $12.5 million face amount, will be amortized into interest expense over the remaining life of the debentures. The associated subordinated debentures are redeemable, in whole or in part, prior to maturity at our option on a quarterly basis when interest is due and payable and in whole at any time within 90 days following the occurrence and continuation of certain changes in the tax treatment or capital treatment of the debentures.

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13. Income Taxes

On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law. The TCJA makes broad and complex changes to the U.S. tax code that affected our income tax rate in 2017. The TCJA reduced the U.S. federal corporate income tax rate from 35% to 21%. The TCJA also established new tax laws that will affect 2018.

On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the 2017 Act. SAB 118 provides a measurement period that should not extend beyond one year from the 2017 Act enactment date for companies to complete the accounting under ASC 740, Income Taxes. As such, the company’s 2017 financial results reflect the income tax effects for the 2017 Act for which the accounting under ASC 740 is complete and provisional amounts for those specific income tax effects of the 2017 Act for which the accounting under ASC 740 is incomplete, but a reasonable estimate could be determined. The company did not identify items for which the income tax effects of the 2017 Act have not been completed and a reasonable estimate could not be determined as of December 31, 2017. The tax expense recorded in 2017 is a reasonable estimate based on published guidance available at this time and is considered provisional. The ultimate impact of the 2017 Act may differ from these estimates due to changes in interpretations and assumptions made by the Company, as well as additional regulatory guidance. Any adjustments will be reflected in the Company’s financial statements in future periods.

The following is a summary of the components of the provision (benefit) for income taxes for the three and nine-month periods ended September 30, 2018 and 2017:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018		2017
	(In thousands)
Current:
Federal	$	17,999	$	17,289		$	44,354	$	65,958
State		5,958		3,434			14,683		13,101
Total current		23,957		20,723			59,037		79,059
Deferred:
Federal		1,047		(11,002	)		10,964		(13,238	)
State		346		(2,185	)		3,629		(2,629	)
Total deferred		1,393		(13,187	)		14,593		(15,867	)
Income tax expense	$	25,350	$	7,536		$	73,630	$	63,192

The reconciliation between the statutory federal income tax rate and effective income tax rate is as follows for the three and nine-month periods ended September 30, 2018 and 2017:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Statutory federal income tax rate		21.00	%		35.00	%		21.00	%		35.00	%
Effect of non-taxable interest income		(0.84	)		(4.48	)		(0.80	)		(1.82	)
Effect of gain on acquisitions		—			—			—			(0.76	)
Stock compensation		(0.12	)		(0.09	)		(0.18	)		(0.49	)
State income taxes, net of federal benefit		3.30			3.91			3.60			4.01
Other		0.66			(0.63	)		0.68			0.18
Effective income tax rate		24.00	%		33.71	%		24.30	%		36.12	%

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The types of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:

	September 30, 2018		December 31, 2017
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	30,023	$	29,515
Deferred compensation		2,868		1,142
Stock compensation		3,674		2,731
Real estate owned		1,419		1,731
Unrealized loss on securities available-for-sale		11,118		1,471
Loan discounts		25,144		32,784
Tax basis premium/discount on acquisitions		8,387		8,802
Investments		1,008		1,155
Other		10,552		11,663
Gross deferred tax assets		94,193		90,994
Deferred tax liabilities:
Accelerated depreciation on premises and equipment		1,157		291
Core deposit intangibles		10,163		11,258
FHLB dividends		1,712		1,625
Other		1,613		1,256
Gross deferred tax liabilities		14,645		14,430
Net deferred tax assets	$	79,548	$	76,564

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and the states of Arkansas, Alabama, Florida and New York. The Company is no longer subject to U.S. federal and state tax examinations by tax authorities for years before 2013.

14. Common Stock, Compensation Plans and Other

Common Stock

The Company’s Restated Articles of Incorporation, as amended, authorize the issuance of up to 200,000,000 shares of common stock, par value $0.01 per share.

The Company also has the authority to issue up to 5,500,000 shares of preferred stock, par value $0.01 per share under the Company’s Restated Articles of Incorporation.

Stock Repurchases

On February 21, 2018, the Company’s Board of Directors authorized the repurchase of up to an additional 5,000,000 shares of its common stock under the previously approved stock repurchase program, which brought the total amount of authorized shares to repurchase to 14,752,000 shares. During 2018, the Company utilized a portion of this stock repurchase program.

During the first nine months of 2018, the Company repurchased a total of 1,863,400 shares with a weighted-average stock price of $23.14 per share. The 2018 earnings were used to fund the repurchases during the year. Shares repurchased under the program as of September 30, 2018 total 6,388,264 shares. The remaining balance available for repurchase is 8,363,736 shares at September 30, 2018.

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Stock Compensation Plans

The Company has a stock option and performance incentive plan known as the Amended and Restated 2006 Stock Option and Performance Incentive Plan (the “Plan”). The purpose of the Plan is to attract and retain highly qualified officers, directors, key employees, and other persons, and to motivate those persons to improve the Company’s business results. On April 19, 2018 at the Annual Meeting of Shareholders of the Company, the shareholders approved, as proposed in the Proxy Statement, an amendment to the Plan to increase the number of shares of the Company’s common stock available for issuance under the Plan by 2,000,000 shares to 13,288,000 shares. The Plan provides for the granting of incentive and non-qualified stock options and other equity awards, including the issuance of restricted shares. As of September 30, 2018, the maximum total number of shares of the Company’s common stock available for issuance under the Plan was 13,288,000. At September 30, 2018, the Company had approximately 1,841,443 shares of common stock remaining available for future grants and approximately 5,477,700 shares of common stock reserved for issuance pursuant to outstanding awards under the Plan.

During the third quarter of 2018, the Company granted 1,452,000 stock options and 843,500 shares of restricted stock to certain employees under the HOMB $2.00 program (“HOMB $2.00”). The purpose of the performance-based incentive plan is to motivate employees to help the Company achieve $2.00 of diluted earnings per share over a consecutive four-quarter period.

The intrinsic value of the stock options outstanding and stock options vested at September 30, 2018 was $11.0 million and $8.0 million, respectively. Total unrecognized compensation cost, net of income tax benefit, related to non-vested stock option awards, which are expected to be recognized over the vesting periods, was approximately $13.3 million as of September 30, 2018. For the first nine months of 2018, the Company has expensed approximately $1.4 million for the non-vested awards.

The table below summarizes the stock option transactions under the Plan at September 30, 2018 and December 31, 2017 and changes during the nine-month period and year then ended:

	For the Nine Months Ended September 30, 2018					For the Year Ended December 31, 2017
	Shares (000)			Weighted- Average Exercisable Price		Shares (000)			Weighted- Average Exercisable Price
Outstanding, beginning of year		2,274		$	16.23		2,397		$	15.19
Granted		1,576			23.24		80			25.96
Forfeited/Expired		(37	)		22.30		—			—
Exercised		(177	)		9.42		(203	)		7.82
Outstanding, end of period		3,636			19.54		2,274			16.23
Exercisable, end of period		1,171			15.10		1,016		$	13.55

Stock-based compensation expense for stock-based compensation awards granted is based on the grant-date fair value. For stock option awards, the fair value is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Accordingly, while management believes that the Black-Scholes option-pricing model provides a reasonable estimate of fair value, the model does not necessarily provide the best single measure of fair value for the Company’s employee stock options. The weighted-average fair value of options granted during the nine months ended September 30, 2018 was $5.58 per share. The weighted-average fair value of options granted during the year ended December 31, 2017 was $7.10 per share. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model based on the weighted-average assumptions for expected dividend yield, expected stock price volatility, risk-free interest rate, and expected life of options granted.

	For the Nine Months Ended September 30, 2018			For the Year Ended December 31, 2017
Expected dividend yield		2.05	%		1.39	%
Expected stock price volatility		25.59	%		28.47	%
Risk-free interest rate		2.82	%		2.06	%
Expected life of options		6.5 years			6.5 years

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The following is a summary of currently outstanding and exercisable options at September 30, 2018:

Options Outstanding				Options Exercisable
Exercise Prices	Options Outstanding Shares (000)	Weighted- Average Remaining Contractual Life (in years)	Weighted- Average Exercise Price	Options Exercisable Shares (000)	Weighted- Average Exercise Price
$2.10 to $2.66	12	0.73	2.60	12	2.60
$5.68 to $6.56	89	3.22	6.54	89	6.54
$8.62 to $9.54	259	4.41	9.04	259	9.04
$14.71 to $16.86	252	6.02	15.97	168	16.05
$17.12 to $17.40	195	6.15	17.20	118	17.22
$18.46	1,010	6.90	18.46	433	18.46
$20.16 to $20.58	68	7.02	20.41	28	20.34
$21.25 to $22.22	230	8.51	21.71	48	21.25
$22.70 to $23.51	1,441	9.81	23.32	—	—
$25.96	80	8.56	25.96	16	25.96
	3,636			1,171

The table below summarized the activity for the Company’s restricted stock issued and outstanding at September 30, 2018 and December 31, 2017 and changes during the period and year then ended:

	As of September 30, 2018			As of December 31, 2017
	(In thousands)
Beginning of year		1,145			958
Issued		1,005			232
Vested		(229	)		(45	)
Forfeited		(49	)		—
End of period		1,872			1,145
Amount of expense for nine months and twelve months ended, respectively	$	5,153		$	5,237

Total unrecognized compensation cost, net of income tax benefit, related to non-vested restricted stock awards, which are expected to be recognized over the 7.8 weighted average remaining contractual life, was approximately $30.2 million as of September 30, 2018.

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15. Non-Interest Expense

The table below shows the components of non-interest expense for the three and nine months ended September 30, 2018 and 2017:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Salaries and employee benefits	$	37,825	$	28,510	$	107,315	$	83,965
Occupancy and equipment		8,148		7,887		25,650		21,602
Data processing expense		3,461		2,853		10,786		8,439
Other operating expenses:
Advertising		1,154		795		3,258		2,305
Merger and acquisition expenses		—		18,227		—		25,743
Amortization of intangibles		1,617		906		4,867		2,576
Electronic banking expense		1,947		1,712		5,653		4,885
Directors’ fees		314		309		962		946
Due from bank service charges		253		472		714		1,348
FDIC and state assessment		2,293		1,293		6,689		3,763
Insurance		762		577		2,363		1,698
Legal and accounting		761		698		2,397		1,799
Other professional fees		1,748		1,436		4,988		3,822
Operating supplies		510		432		1,712		1,376
Postage		311		280		978		861
Telephone		337		305		1,081		1,027
Other expense		4,682		4,154		13,318		10,835
Total other operating expenses		16,689		31,596		48,980		62,984
Total non-interest expense	$	66,123	$	70,846	$	192,731	$	176,990

16. Significant Estimates and Concentrations of Credit Risks

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses and certain concentrations of credit risk are reflected in Note 5, while deposit concentrations are reflected in Note 8.

The Company’s primary market areas are in Arkansas, Florida, South Alabama and New York. The Company primarily grants loans to customers located within these markets unless the borrower has an established relationship with the Company.

The diversity of the Company’s economic base tends to provide a stable lending environment. Although the Company has a loan portfolio that is diversified in both industry and geographic area, a substantial portion of its debtors’ ability to honor their contracts is dependent upon real estate values, tourism demand and the economic conditions prevailing in its market areas.

Although the Company has a diversified loan portfolio, commercial real estate loans represented 58.3% and 61.8% of total loans receivable at September 30, 2018 and December 31, 2017, respectively, and 269.5% and 289.6% of total stockholders’ equity at September 30, 2018 and December 31, 2017, respectively. Residential real estate loans represented 23.9% and 23.3% of total loans receivable and 110.7% and 109.4% of total stockholders’ equity at September 30, 2018 and December 31, 2017, respectively.

Approximately 89.1% of the Company’s total loans and 91.1% of the Company’s real estate loans as of September 30, 2018, are to borrowers whose collateral is located in Alabama, Arkansas, Florida and New York, the states in which the Company has its branch locations.

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Although general economic conditions in our market areas have improved, both nationally and locally, in recent years and have shown signs of continued improvement, financial institutions still face circumstances and challenges which, in some cases, have resulted and could potentially result, in large declines in the fair values of investments and other assets, constraints on liquidity and significant credit quality problems, including severe volatility in the valuation of real estate and other collateral supporting loans. The financial statements have been prepared using values and information currently available to the Company.

Any future volatility in the economy could cause the values of assets and liabilities recorded in the financial statements to change rapidly, resulting in material future adjustments in asset values, the allowance for loan losses and capital that could negatively impact the Company’s ability to meet regulatory capital requirements and maintain sufficient liquidity.

17. Commitments and Contingencies

In the ordinary course of business, the Company makes various commitments and incurs certain contingent liabilities to fulfill the financing needs of their customers. These commitments and contingent liabilities include lines of credit and commitments to extend credit and issue standby letters of credit. The Company applies the same credit policies and standards as they do in the lending process when making these commitments. The collateral obtained is based on the assessed creditworthiness of the borrower.

At September 30, 2018 and December 31, 2017, commitments to extend credit of $2.25 billion and $2.38 billion, respectively, were outstanding. A percentage of these balances are participated out to other banks; therefore, the Company can call on the participating banks to fund future draws. Since some of these commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

Outstanding standby letters of credit are contingent commitments issued by the Company, generally to guarantee the performance of a customer in third-party borrowing arrangements. The term of the guarantee is dependent upon the creditworthiness of the borrower, some of which are long-term. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. The maximum amount of future payments the Company could be required to make under these guarantees at September 30, 2018 and December 31, 2017, is $55.0 million and $70.5 million, respectively.

The Company and/or its bank subsidiary have various unrelated legal proceedings, most of which involve loan foreclosure activity pending, which, in the aggregate, are not expected to have a material adverse effect on the financial position or results of operations or cash flows of the Company and its subsidiary.

18. Regulatory Matters

The Bank is subject to a legal limitation on dividends that can be paid to the parent company without prior approval of the applicable regulatory agencies. Arkansas bank regulators have specified that the maximum dividend limit state banks may pay to the parent company without prior approval is 75% of the current year earnings plus 75% of the retained net earnings of the preceding year. Since the Bank is also under supervision of the Federal Reserve, it is further limited if the total of all dividends declared in any calendar year by the Bank exceeds the Bank’s net profits to date for that year combined with its retained net profits for the preceding two years. During the first nine months of 2018, the Company requested approximately $155.5 million in regular dividends from its banking subsidiary. This dividend is equal to approximately 63.0% of the Company’s banking subsidiary’s year-to-date 2018 earnings.

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The Company’s banking subsidiary is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s regulators could require adjustments to regulatory capital not reflected in the consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total, common Tier 1 equity and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes that, as of September 30, 2018, the Company meets all capital adequacy requirements to which it is subject.

In July 2013, the Federal Reserve Board and the other federal bank regulatory agencies issued a final rule to revise their risk-based and leverage capital requirements and their method for calculating risk-weighted assets to make them consistent with the agreements that were reached by the Basel Committee on Banking Supervision in “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” and certain provisions of the Dodd-Frank Act (“Basel III”). Basel III applies to all depository institutions, bank holding companies with total consolidated assets of $500 million or more, and savings and loan holding companies. Basel III became effective for the Company and its bank subsidiary on January 1, 2015. The capital conservation buffer requirement began being phased in beginning January 1, 2016 at the 0.625% level and will increase by 0.625% on each subsequent January 1, until it reaches 2.5% on January 1, 2019 when the phase-in period ends and the full capital conservation buffer requirement becomes effective.

Basel III amended the prompt corrective action rules to incorporate a “common equity Tier 1 capital” requirement and to raise the capital requirements for certain capital categories. In order to be adequately capitalized for purposes of the prompt corrective action rules, a banking organization will be required to have at least a 4.5% “common equity Tier 1 risk-based capital” ratio, a 4% “Tier 1 leverage capital” ratio, a 6% “Tier 1 risk-based capital” ratio and an 8% “total risk-based capital” ratio.

The Federal Reserve Board’s risk-based capital guidelines include the definitions for (1) a well-capitalized institution, (2) an adequately-capitalized institution, and (3) an undercapitalized institution. Under Basel III, the criteria for a well-capitalized institution are now: a 6.5% “common equity Tier 1 risk-based capital” ratio, a 5% “Tier 1 leverage capital” ratio, an 8% “Tier 1 risk-based capital” ratio, and a 10% “total risk-based capital” ratio. As of September 30, 2018, the Bank met the capital standards for a well-capitalized institution. The Company’s “common equity Tier 1 risk-based capital” ratio, “Tier 1 leverage capital” ratio, “Tier 1 risk-based capital” ratio, and “total risk-based capital” ratio were 11.65%, 10.38%, 12.25%, and 15.73%, respectively, as of September 30, 2018.

19. Additional Cash Flow Information

In connection with the GHI acquisition, accounted for using the purchase method, the Company acquired approximately $398.1 million in assets, including $41.0 million in cash and cash equivalents, assumed $345.0 million in liabilities, issued 2,738,038 shares of its common stock valued at approximately $77.5 million as of February 23, 2017, and paid approximately $18.5 million in cash in exchange for all outstanding shares of GHI common stock.

In connection with the BOC acquisition, accounted for using the purchase method, the Company acquired approximately $178.1 million in assets, including $4.6 million in cash and cash equivalents, assumed $170.1 million in liabilities, issued no equity and paid approximately $4.2 million in cash. As a result, the Company recorded a bargain purchase gain of $3.8 million.

In connection with the Stonegate acquisition, accounted for using the purchase method, the Company acquired approximately $2.89 billion in assets, including $101.0 million in cash and cash equivalents, assumed $2.60 billion in liabilities, issued 30,863,658 shares of its common stock valued at approximately $742.3 million as of September 26, 2017, and paid $50.1 million in cash in exchange for all outstanding shares of Stonegate common stock.

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In connection with the SPF acquisition, accounted for using the purchase method, the Company acquired approximately $377.0 million in assets, including $376.2 million in loans, issued 1,250,000 shares of its common stock valued at approximately $28.2 million as of June 30, 2018, and paid $377.4 million in cash.

The following is a summary of the Company’s additional cash flow information during the nine-month periods ended:

	September 30,
	2018		2017
	(In thousands)
Interest paid	$	80,057	$	34,573
Income taxes paid		47,682		117,025
Assets acquired by foreclosure		10,098		9,255

20. Financial Instruments

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a hierarchy of three levels of inputs that may be used to measure fair values:

Level 1	Quoted prices in active markets for identical assets or liabilities
Level 2	Observable inputs other than Level 1 prices, 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	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Transfers of financial instruments between levels within the fair value hierarchy are recognized on the date management determines that the underlying circumstances or assumptions have changed.

Financial Assets and Liabilities Measured on a Recurring Basis

Available-for-sale securities are the only material financial instruments valued on a recurring basis which are held by the Company at fair value. The Company does not have any Level 1 securities. Primarily all of the Company’s securities are considered to be Level 2 securities. These Level 2 securities consist primarily of U.S. government-sponsored enterprises, mortgage-backed securities plus state and political subdivisions. For these securities, 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. As of September 30, 2018 and December 31, 2017, Level 3 securities were immaterial. In addition, there were no material transfers between hierarchy levels during 2018 and 2017. See Note 3 for additional detail related to investment securities.

The Company reviews the prices supplied by the independent pricing service, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In general, the Company does not purchase investment portfolio securities with complicated structures. Pricing for the Company’s investment securities is fairly generic and is easily obtained.

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Financial Assets and Liabilities Measured on a Nonrecurring Basis

Impaired loans that are collateral dependent are the only material financial assets valued on a non-recurring basis which are held by the Company at fair value. Loan impairment is reported when full payment under the loan terms is not expected. Impaired loans are carried at the net realizable value of the collateral if the loan is collateral dependent. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to require an increase, such increase is reported as a component of the provision for loan losses. The fair value of loans with specific allocated losses was $77.5 million and $72.5 million as of September 30, 2018 and December 31, 2017, respectively. This valuation is considered Level 3, consisting of appraisals of underlying collateral. The Company reversed approximately $164,000 and $314,000 of accrued interest receivable when non-covered impaired loans were put on non-accrual status during the three months ended September 30, 2018 and 2017, respectively. The Company reversed approximately $728,000 and $523,000 of accrued interest receivable when non-covered impaired loans were put on non-accrual status during the nine months ended September 30, 2018 and 2017, respectively.

Nonfinancial Assets and Liabilities Measured on a Nonrecurring Basis

Foreclosed assets held for sale are the only material non-financial assets valued on a non-recurring basis which are held by the Company at fair value, less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. Additionally, valuations are periodically performed by management and any subsequent reduction in value is recognized by a charge to income. The fair value of foreclosed assets held for sale is estimated using Level 3 inputs based on appraisals of underlying collateral. As of September 30, 2018 and December 31, 2017, the fair value of foreclosed assets held for sale, less estimated costs to sell, was $13.5 million and $18.9 million, respectively.

No foreclosed assets held for sale were remeasured during the nine months ended September 30, 2018. Regulatory guidelines require the Company to reevaluate the fair value of foreclosed assets held for sale on at least an annual basis. The Company’s policy is to comply with the regulatory guidelines.

The significant unobservable (Level 3) inputs used in the fair value measurement of collateral for collateral-dependent impaired loans and foreclosed assets primarily relate to customized discounting criteria applied to the customer’s reported amount of collateral. The amount of the collateral discount depends upon the condition and marketability of the underlying collateral. As the Company’s primary objective in the event of default would be to monetize the collateral to settle the outstanding balance of the loan, less marketable collateral would receive a larger discount. During the reported periods, collateral discounts ranged from 20% to 30% for commercial and residential real estate collateral.

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Fair Values of Financial Instruments

The following table presents the estimated fair values of the Company’s financial instruments. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

	September 30, 2018
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	532,057	$	532,057		1
Federal funds sold		500		500		1
Investment securities – held-to-maturity		199,266		198,552		2
Loans receivable, net of impaired loans and allowance		10,645,129		10,429,379		3
Accrued interest receivable		48,909		48,909		1
Financial liabilities:
Deposits:
Demand and non-interest-bearing	$	2,482,857	$	2,482,857		1
Savings and interest-bearing transaction accounts		6,420,951		6,420,951		1
Time deposits		1,720,930		1,696,005		3
Securities sold under agreements to repurchase		142,146		142,146		1
FHLB and other borrowed funds		1,363,851		1,291,287		2
Accrued interest payable		12,383		12,383		1
Subordinated debentures		368,596		374,338		3

	December 31, 2017
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	635,933	$	635,933		1
Federal funds sold		24,109		24,109		1
Investment securities – held-to-maturity		224,756		227,539		2
Loans receivable, net of impaired loans and allowance		10,148,470		10,055,901		3
Accrued interest receivable		45,708		45,708		1
Financial liabilities:
Deposits:
Demand and non-interest-bearing	$	2,385,252	$	2,385,252		1
Savings and interest-bearing transaction accounts		6,476,819		6,476,819		1
Time deposits		1,526,431		1,514,670		3
Securities sold under agreements to repurchase		147,789		147,789		1
FHLB and other borrowed funds		1,299,188		1,299,961		2
Accrued interest payable		5,583		5,583		1
Subordinated debentures		368,031		379,146		3

46

21. Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides guidance that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), which defers the effective date of this standard to annual and interim periods beginning after December 15, 2017; however, early adoption was permitted for annual and interim reporting periods beginning after December 15, 2016. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which amends certain aspects of the guidance in ASU 2014-09 (FASB’s new revenue standard) on (1) identifying performance obligations and (2) licensing. ASU 2014-10’s effective date and transition provisions are aligned with the requirements in ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the FASB’s new revenue standard, ASU 2014-09. ASU 2016-12’s effective date and transition provisions are aligned with the requirements in ASU 2014-09.

The guidance issued in ASU 2014-09, ASU 2015-14, ASU 2016-10 and ASU 2016-12 permit two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on our financial position or financial statement disclosures.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Changes to the current GAAP model primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in accumulated other comprehensive income (“AOCI”). In addition, ASU 2016-01 clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale securities. The new guidance is effective for annual reporting period and interim reporting periods within those annual periods, beginning after December 15, 2017. The Company adopted the guidance effective January 1, 2018 and recorded a cumulative-effect adjustment to retained earnings of $990,000 to reclassify the cumulative change in fair value of equity securities previously recognized in AOCI. For additional information on fair value of assets and liabilities, see Note 20.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in ASU 2016-02 address several aspects of lease accounting with the significant change being the recognition of lease assets and lease liabilities for leases previously classified as operating leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in ASU 2016-02 is permitted for all entities. The Company has several lease agreements for which the amendments will require the Company to recognize a lease liability to make lease payments and a right-of-use asset which will represent its right to use the underlying asset for the lease term. The Company is currently reviewing the amendments to ensure it is fully compliant by the adoption date and does not expect to early adopt. The impact is not expected to have a material effect on the Company’s financial position or results of operations as the Company does not have a material amount of lease agreements. In addition, the Company will change its current accounting policies to comply with the amendments with such changes as mentioned above. For additional information on the Company’s leases, see Note 18 “Leases” in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.

In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update), which rescinds certain SEC guidance from the FASB Accounting Standards Codification in response to announcements made by the SEC staff at the Emerging Issues Task Force’s (“EITF”) March 3, 2016, meeting. ASU 2016-11 is effective at the same time as ASU 2014-09 and ASU 2014-16. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

47

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which amends the FASB’s guidance on the impairment of financial instruments. The amendments in ASU 2016-13 replace the incurred loss model with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates, known as the current expected credit loss (“CECL”) model. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. ASU 2016-13 is also intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The allowance for loan losses is a material estimate of the Company, and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the allowance for loan losses at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the allowance for loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The Company will also develop new procedures for determining an allowance for credit losses relating to held-to-maturity investment securities. In addition, the current accounting policy and procedures for other-than-temporary impairment on available-for-sale investment securities will be replaced with an allowance approach. The Company is currently evaluating the impact, if any, ASU 2016-13 will have on its financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. It is too early to assess the impact that the implementation of this guidance will have on the Company’s consolidated financial statements; however, the Company has begun developing processes and procedures to ensure it is fully compliant with the amendments at the required adoption date. Among other things, the Company has initiated data gathering and assessment to support forecasting of asset quality, loan balances, and portfolio net charge-offs and has developed an in-house data warehouse, developed asset quality forecast models and evaluated potential software vendors in preparation for the implementation of this standard. For additional information on the allowance for loan losses, see Note 5.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, which amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of ASU 2016-15 is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. ASU 2016-15’s amendments add or clarify guidance on eight cash flow issues including debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies; including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted and the guidance must be applied retrospectively to all periods presented but may be applied prospectively from the earliest date practicable if retrospective application would be impracticable. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s statement of cash flows or financial statement disclosures.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning period of adoption. Early adoption is permitted in the first interim period of an annual reporting period for which financial statements have not been issued. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

48

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force), which clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows, and, as a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, and the new guidance must be applied retrospectively to all periods presented. The Company adopted the guidance effective January 1, 2018 and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which provides guidance to entities to assist with evaluating when a set of transferred assets and activities (collectively, the “set”) is a business and provides a screen to determine when a set is not a business. Under the new guidance, when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset, or group of similar assets, the assets acquired would not represent a business. Also, to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to produce outputs. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied on a prospective basis to any transactions occurring within the period of adoption. Early adoption is permitted for interim or annual periods in which the financial statements have not been issued. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323). The amendments in the update relate to SEC paragraphs pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF meetings related to disclosure of the impact of recently issued accounting standards. The SEC staff’s view that a registrant should evaluate ASC updates that have not yet been adopted to determine the appropriate financial disclosures about the potential material effects of the updates on the financial statements when adopted. If a registrant does not know or cannot reasonably estimate the impact of an update, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact. The staff expects the additional qualitative disclosures to include a description of the effect of the accounting policies expected to be applied compared to current accounting policies. Also, the registrant should describe the status of its process to implement the new standards and the significant implementation matters yet to be addressed. The amendments specifically addressed recent ASC amendments to ASU 2016-02, Leases, and ASU 2014-09, Revenue from Contracts with Customers, although, the amendments apply to any subsequent amendments to guidance in the ASC. The Company adopted the amendments in this update during the fourth quarter of 2016, and appropriate disclosures have been included in this Note for each recently issued accounting standard.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The Company has goodwill from prior business combinations and performs an annual impairment test or more frequently if changes or circumstances occur that would more-likely-than-not reduce the fair value of the reporting unit below its carrying value. During 2017, the Company performed its impairment assessment and determined the fair value of the aggregated reporting units exceed the carrying value, such that the Company’s goodwill was not considered impaired. Although the Company cannot anticipate future goodwill impairment assessments, based on the most recent assessment it is unlikely that an impairment amount would need to be calculated, and, therefore, the Company does not anticipate a material impact from these amendments to the Company’s financial position and results of operations. The current accounting policies and processes are not anticipated to change, except for the elimination of the Step 2 analysis.

49

In February 2017, the FASB issued ASU 2017-05, Other Income: Gains and Losses from the Derecognition of Nonfinancial Assets, which clarifies the scope of the FASB’s guidance on nonfinancial asset derecognition (ASC 610-20) as well as the accounting for partial sales of nonfinancial assets. The ASU conforms the derecognition guidance on nonfinancial assets with the model for transactions in the new revenue standard (ASC 606, as amended). The ASU requires an entity to derecognize the nonfinancial asset or in-substance nonfinancial asset in a partial sale transaction when (1) the entity ceases to have a controlling financial interest in a subsidiary under ASC 810 and (2) control of the asset is transferred in accordance with ASC 606. The entity therefore has to consider repurchase agreements (e.g., a call option to repurchase the ownership interest in a subsidiary) in its assessment and may not be able to derecognize the nonfinancial assets, even though it no longer has a controlling financial interest in a subsidiary in accordance with ASC 810. The ASU illustrates the application of this guidance in ASC 610-20-55-15 and 55-16. The effective date of the new guidance is aligned with the requirements in the new revenue standard, which is effective for public entities for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017, and for nonpublic entities for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Topic 310): Premium Amortization on Purchased Callable Debt Securities, which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU will shorten the amortization period for the premium to be amortized to the earliest call date. This ASU does not apply to securities held at a discount, which will continue to be amortized to maturity. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018. The guidance should be applied using a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted, including adoption in an interim period. The Company early adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The amendments in ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company adopted the guidance effective January 1, 2018. The Company does not anticipate any modifications to its existing awards, and therefore, the adoption of ASU 2017-09 is not expected to have a significant impact on the Company’s financial position, results of operations, or its financial statement disclosures.

50

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-Controlling Interests with a Scope Exception. Part I of this update addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Part II of this update addresses the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity, because of the existence of extensive pending content in the FASB Accounting Standards Codification. This pending content is the result of the indefinite deferral of accounting requirements about mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable non-controlling interests. The amendments in Part II of this update do not have an accounting effect. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact, if any, ASU 2017-11 will have on its financial position, results of operations, and its financial statement disclosures. The Company’s evaluation process includes, but is not limited to, identifying transactions and accounts within the scope of the guidance, reviewing its accounting and disclosures for these transactions and accounts, and identifying and implementing any necessary changes to its accounting and disclosures as a result of the guidance. The Company is also identifying and implementing changes to its business processes, systems and controls to support adoption of the new standard in 2019.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting model to provide better insight to risk management activities in the financial statements, reduces the complexity in cash flow hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, requires the entire change in the fair value of a hedging instrument included in the assessment of the hedge effectiveness to be recorded in other comprehensive income, with amounts reclassified to earnings to be presented in the same line item used to present the earnings effect of the hedged item when the hedged item affects earnings and allows the initial prospective quantitative assessment of hedge effectiveness to be performed at any time after hedge designation, but no later than the first quarterly effectiveness testing date. This ASU is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The amendments in this standard must be applied using the modified retrospective approach for cash flow and net investment hedge relationships existing on the date of adoption. The Company is currently evaluating the impact, if any, ASU 2017-12 will have on its financial position, results of operations, and its financial statement disclosures. The Company’s evaluation process includes, but is not limited to, identifying transactions and accounts within the scope of the guidance, reviewing its accounting and disclosures for these transactions and accounts, and identifying and implementing any necessary changes to its accounting and disclosures as a result of the guidance. The Company is also identifying and implementing changes to its business processes, systems and controls to support adoption of the new standard in 2019.

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the TCJA on December 22, 2017 that changed the Company’s federal income tax rate from 35% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The amendments in this ASU are effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. Adoption of this ASU is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the tax laws or rates were recognized. The Company plans to adopt the guidance January 1, 2019. As of September 30, 2018, the balance of the stranded tax effects within other comprehensive income was $534,000.

51

In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in ASU 2018-03 make technical corrections to certain aspects of ASU 2016-01 (on recognition of financial assets and financial liabilities), including the following:

• Equity securities without a readily determinable fair value – discontinuation.

• Equity securities without a readily determinable fair value – adjustments.

• Forward contracts and purchased options.

• Presentation requirements for certain fair value option liabilities.

• Fair value option liabilities denominated in a foreign currency.

• Transition guidance for equity securities without a readily determinable fair value.

The amendments in ASU 2018-03 are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Early adoption of ASU 2018-03 is permitted for all entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, if they have adopted ASU 2016-01. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on our financial position or financial statement disclosures.

In March 2018, the FASB issued ASU 2018-04, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273. The ASU adds, amends, and supersedes various paragraphs that contain SEC guidance in ASC 320, Investments – Debt Securities, and ASC 980, Regulated Operations. The effective date for the amendments to ASC 320 is the same as the effective date of ASU 2016-01. Other amendments are effective upon issuance. The Company has adopted the amendments to ASC 320 effective January 1, 2018, and the adoption did not have a significant impact on our financial position or financial statement disclosures. The Company has adopted the other amendments effective March 9, 2018, and the adoption did not have a significant impact on our financial position or financial statement disclosures.

In March 2018, the FASB issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. The ASU adds seven paragraphs to ASC 740, Income Taxes, that contain SEC guidance related to SAB 118 (codified as SEC SAB Topic 5.EE, Income Tax Accounting Implications of the Tax Cuts and Jobs Act. This ASU was effective upon issuance. The Company adopted the guidance effective March 13, 2018, and its adoption did not have a significant impact on our financial position or financial statement disclosures.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance also specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. This guidance is applicable to the Company beginning January 1, 2019. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. This guidance is applicable to the Company beginning January 1, 2020. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements.

22. Subsequent Events

Hurricane Michael made landfall in the Florida Panhandle as a Category 4 hurricane on October 10, 2018. The total impact of this hurricane may not be known for some time; however, the Company is currently evaluating the potential impact of this hurricane on the Company’s financial condition and results of operation for the fourth quarter of 2018.

52

Report of Independent Registered Public Accounting Firm

Audit Committee, Board of Directors and Stockholders

Home BancShares, Inc.

Conway, Arkansas

Results of Review of Interim Consolidated Financial Statements

We have reviewed the condensed consolidated balance sheet of Home BancShares, Inc. (“the Company”) as of September 30, 2018, and the related condensed consolidated statements of income and comprehensive income for the three-month and nine-month periods ended September 30, 2018 and 2017, and stockholders’ equity and cash flows for the nine-month periods ended September 30, 2018 and 2017, and the related notes (collectively referred to as the “interim financial statements”). Based on our reviews, we are not aware of any material modifications that should be made to the condensed financial statements referred to above for them to be in conformity with accounting principles generally accepted in the United States of America.

We have previously audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (“PCAOB”), the consolidated balance sheet of the Company and subsidiaries as of December 31, 2017, and the related consolidated statements of income, comprehensive income, stockholders’ equity and cash flows for the year then ended (not presented herein), and in our report dated February 27, 2018, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying condensed consolidated balance sheet as of December 31, 2017, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

Basis for Review Results

These financial statements are the responsibility of the Company’s management. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our review in accordance with the standards of the PCAOB. A review of interim financial information consists principally of applying analytical procedures and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with the standards of the PCAOB, the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

/s/ BKD, LLP

Little Rock, Arkansas

November 5, 2018

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Item 2: MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with our Form 10-K, filed with the Securities and Exchange Commission on February 27, 2018, which includes the audited financial statements for the year ended December 31, 2017. Unless the context requires otherwise, the terms “Company”, “us”, “we”, and “our” refer to Home BancShares, Inc. on a consolidated basis.

General

We are a bank holding company headquartered in Conway, Arkansas, offering a broad array of financial services through our wholly-owned bank subsidiary, Centennial Bank (sometimes referred to as “Centennial” or the “Bank”). As of September 30, 2018, we had, on a consolidated basis, total assets of $14.91 billion, loans receivable, net, of $10.72 billion, total deposits of $10.62 billion, and stockholders’ equity of $2.34 billion.

We generate most of our revenue from interest on loans and investments, service charges, and mortgage banking income. Deposits and Federal Home Loan Bank (“FHLB”) and other borrowed funds are our primary source of funding. Our largest expenses are interest on our funding sources, salaries and related employee benefits and occupancy and equipment. We measure our performance by calculating our return on average common equity, return on average assets and net interest margin. We also measure our performance by our efficiency ratio, which is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income. The efficiency ratio, as adjusted, is a non-GAAP measure and is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income excluding adjustments such as merger expenses and/or gains and losses.

Table 1: Key Financial Measures

	As of or for the Three Months Ended September 30,						As of or for the Nine Months Ended September 30,
	2018			2017			2018			2017
	(Dollars in thousands, except per share data)
Total assets	$	14,912,738		$	14,255,967		$	14,912,738		$	14,255,967
Loans receivable		10,832,815			10,286,193			10,832,815			10,286,193
Allowance for loan losses		110,191			111,620			110,191			111,620
Total deposits		10,624,738			10,448,770			10,624,738			10,448,770
Total stockholders’ equity		2,341,026			2,206,716			2,341,026			2,206,716
Net income		80,284			14,821			229,373			111,774
Basic earnings per share		0.46			0.10			1.32			0.78
Diluted earnings per share		0.46			0.10			1.32			0.78
Book value per share		13.44			12.71			13.44			12.71
Tangible book value per share (non-GAAP)		7.68			7.06			7.68			7.06
Annualized net interest margin – FTE		4.46	%		4.40	%		4.46	%		4.53	%
Efficiency ratio		37.23			53.77			37.26			43.92
Efficiency ratio, as adjusted (non-GAAP)		37.40			39.12			37.46			37.79
Annualized return on average assets		2.14			0.54			2.12			1.41
Annualized return on average common equity		13.74			3.88			13.56			10.33

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Overview

Results of Operations for the Three Months Ended September 30, 2018 and 2017

Our net income increased $65.5 million, or 441.7%, to $80.3 million for the three-month period ended September 30, 2018, from $14.8 million for the same period in 2017. On a diluted earnings per share basis, our earnings were $0.46 per share and $0.10 per share for the three-month periods ended September 30, 2018 and 2017, respectively. Excluding the $18.2 million of merger expenses associated with the Stonegate Bank ( “Stonegate”) acquisition and $33.4 million of hurricane expenses, our net income increased $33.8 million, or 72.8%, to $80.3 million for the three-month period ended September 30, 2018, from $46.4 million for the same period in 2017 (See Table 18 for the non-GAAP tabular reconciliation). The $33.8 million increase in net income includes $13.4 million from tax savings of the TCJA. The remaining $20.4 million is primarily associated with additional net income from the acquisition of Stonegate, increased profitability of Centennial CFG and the acquisition of Shore Premier Finance.

Our net interest margin increased from 4.40% for the three-month period ended September 30, 2017 to 4.46% for the three-month period ended September 30, 2018. The yield on loans was 6.06% and 5.66% for the three months ended September 30, 2018 and 2017, respectively, as average loans increased from $7.94 billion to $10.91 billion. The increase in loan balances is primarily due to the acquisition of Stonegate. For the three months ended September 30, 2018 and 2017, we recognized $10.7 million and $7.2 million in total net accretion for acquired loans and deposits. The rate on interest-bearing deposits increased from 0.57% for the three months ended September 30, 2017 to 1.05% for the three months ended September 30, 2018 with average balances of $5.96 billion and $8.07 billion, respectively.

Our efficiency ratio was 37.23% for the three months ended September 30, 2018, compared to 53.77% for the same period in 2017. For the third quarter of 2018, our efficiency ratio, as adjusted (non-GAAP), was 37.40%, an improvement of 172 basis points from the 39.12% reported for third quarter of 2017 (See Table 23 for the non-GAAP tabular reconciliation). Even though acquisitions tend to increase our efficiency ratio in the short term, we had a slight improvement in the efficiency ratio, as adjusted, as a result of cost savings from our Stonegate acquisition being realized soon after conversion, which was completed on February 9, 2018.

Our annualized return on average assets was 2.14% for the three months ended September 30, 2018, compared to 0.54% for the same period in 2017. Excluding merger expenses and hurricane expenses, our annualized return on average assets was 2.14% for the three months ended September 30, 2018 compared to 1.70% for the same period in 2017 (See Table 20 for the non-GAAP tabular reconciliation). Our annualized return on average common equity was 13.74% for the three months ended September 30, 2018, compared to 3.88% for the same period in 2017. Excluding merger expenses and hurricane expenses, our annualized return on average common equity was 13.74% for the three months ended September 30, 2018 compared to 12.17% for the same period in 2017 (See Table 21 for the non-GAAP tabular reconciliation). Excluding the $13.4 million tax effect of the TCJA, our annualized return on average assets was 1.78% for the three months ended September 30, 2018 (See Table 20 for the non-GAAP tabular reconciliation) and our annualized return on average common equity was 11.45% (See Table 21 for the non-GAAP tabular reconciliation).

Results of Operations for Nine Months Ended September 30, 2018 and 2017

Our net income increased $117.6 million, or 105.2%, to $229.4 million for the nine-month period ended September 30, 2018, from $111.8 million for the same period in 2017. On a diluted earnings per share basis, our earnings were $1.32 per share and $0.78 per share for the nine-month periods ended September 30, 2018 and 2017, respectively. Excluding the $3.8 million of non-taxable gain on acquisition, $25.7 million of merger expenses associated with the 2017 acquisitions and $33.4 million of hurricane expenses, our net income increased $84.8 million, or 58.7%, to $229.4 million for the nine-month period ended September 30, 2018, from $144.5 million for the same period in 2017 (See Table 18 for the non-GAAP tabular reconciliation). The $84.8 million increase in net income includes $38.0 million from tax savings of the TCJA. The remaining $46.8 million increase in net income from the 2017 acquisitions, increased profitability of Centennial CFG and the acquisition of Shore Premier Finance.

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Our net interest margin decreased from 4.53% for the nine-month period ended September 30, 2017 to 4.46% for the nine-month period ended September 30, 2018. The yield on loans was 5.95% and 5.70% for the nine months ended September 30, 2018 and 2017, respectively, as average loans increased from $7.79 billion to $10.53 billion. The increase in loan balances is primarily due to the acquisitions we completed during 2017. For the nine months ended September 30, 2018 and 2017, we recognized $32.0 million and $23.3 million, respectively, in total net accretion for acquired loans and deposits. The rate on interest-bearing deposits increased from 0.49% for the nine months ended September 30, 2017, to 0.91% for the nine months ended September 30, 2018, with average balances of $5.73 billion and $8.02 billion, respectively.

Our efficiency ratio was 37.26% for the nine months ended September 30, 2018, compared to 43.92% for the same period in 2017. For the first nine months of 2018, our efficiency ratio, as adjusted (non-GAAP), was 37.46%, which decreased from the 37.79% reported for first nine months of 2017. (See Table 23 for the non-GAAP tabular reconciliation). Even though acquisitions tend to increase our efficiency ratio in the short term, we had a slight improvement in the efficiency ratio, as adjusted, as a result of cost savings from our Stonegate acquisition being realized soon after conversion, which was completed on February 9, 2018.

Our annualized return on average assets was 2.12% for the nine months ended September 30, 2018, compared to 1.41% for the same period in 2017. Excluding merger expenses and hurricane expenses, our annualized return on average assets was 2.12% for the nine months ended September 30, 2018 compared to 1.82% for the same period in 2017 (See Table 20 for the non-GAAP tabular reconciliation). Our annualized return on average common equity was 13.56% for the nine months ended September 30, 2018, compared to 10.33% for the same period in 2017. Excluding merger expenses and hurricane expenses, our annualized return on average common equity was 13.56% for the nine months ended September 30, 2018 compared to 13.36% for the same period in 2017 (See Table 21 for the non-GAAP tabular reconciliation). Excluding the $38.0 million tax effect of the TCJA, our annualized return on average assets was 1.77% for the nine months ended September 30, 2018 (See Table 20 for the non-GAAP tabular reconciliation) and our annualized return on average common equity was 11.32% (See Table 21 for the non-GAAP tabular reconciliation).

Financial Condition as of and for the Period Ended September 30, 2018 and December 31, 2017

Our total assets as of September 30, 2018 increased $463.0 million to $14.91 billion from the $14.45 billion reported as of December 31, 2017. Our loan portfolio increased $501.6 million or 4.86% for the quarter ended September 30, 2018 from $10.33 billion as of December 31, 2017 to $10.83 billion as of September 30, 2018. The increase is primarily due to the acquisition of $376.2 million of loans as part of the acquisition of Shore Premier Finance (“SPF”) as well as $125.4 million of organic loan growth the nine months ended September 30, 2018. Total deposits increased $236.2 million to $10.62 billion as of September 30, 2018 from $10.39 billion as of December 31, 2017. Stockholders’ equity increased $136.7 million to $2.34 billion as of September 30, 2018, compared to $2.20 billion as of December 31, 2017. The increase in stockholders’ equity is primarily associated with the $171.2 million increase in retained earnings, the issuance of 1,250,000 shares of stock with a value of $28.2 million as part of the acquisition of SPF, and the issuance of $6.5 million of share-based compensation, which were partially offset by $27.3 million of comprehensive loss and the repurchase of $43.2 million of our common stock during 2018.

As of September 30, 2018, our non-performing loans increased to $56.5 million, or 0.52%, of total loans from $44.7 million, or 0.43%, of total loans as of December 31, 2017. The allowance for loan losses as a percent of non-performing loans decreased to 195.15% as of September 30, 2018, from 246.70% as of December 31, 2017. Non-performing loans from our Arkansas franchise were $14.5 million at September 30, 2018 compared to $15.5 million as of December 31, 2017. Non-performing loans from our Florida franchise were $40.0 million at September 30, 2018 compared to $28.2 million as of December 31, 2017. Non-performing loans from our Alabama franchise were $133,000 at September 30, 2018 compared to $929,000 as of December 31, 2017. Non-performing loans from our SPF franchise were $1.8 million, and there were no non-performing loans from our Centennial CFG franchise as of September 30, 2018 or December 31, 2017.

As of September 30, 2018, our non-performing assets increased to $70.4 million, or 0.47% of total assets from $63.6 million, or 0.44%, of total assets as of December 31, 2017. Non-performing assets from our Arkansas franchise were $21.1 million at September 30, 2018 compared to $25.6 million as of December 31, 2017. Non-performing assets from our Florida franchise were $46.7 million at September 30, 2018 compared to $36.4 million as of December 31, 2017. Non-performing assets from our Alabama franchise were $774,000 at September 30, 2018 compared to $1.6 million as of December 31, 2017. Non-performing assets from our SPF franchise were $1.8 million, and there were no non-performing assets from our Centennial CFG franchise as of September 30, 2018 or December 31, 2017.

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Critical Accounting Policies

Overview. We prepare our consolidated financial statements based on the selection of certain accounting policies, generally accepted accounting principles and customary practices in the banking industry. These policies, in certain areas, require us to make significant estimates and assumptions. Our accounting policies are described in detail in the notes to our consolidated financial statements included as part of this document.

We consider a policy critical if (i) the accounting estimate requires assumptions about matters that are highly uncertain at the time of the accounting estimate; and (ii) different estimates that could reasonably have been used in the current period, or changes in the accounting estimate that are reasonably likely to occur from period to period, would have a material impact on our financial statements. Using these criteria, we believe that the accounting policies most critical to us are those associated with our lending practices, including the accounting for the allowance for loan losses, foreclosed assets, investments, intangible assets, income taxes and stock options.

Revenue Recognition. Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as our loans, letters of credit and investment securities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC Topic 606, which are presented in our income statements as components of non-interest income are as follows:

• Service charges on deposit accounts – These represent general service fees for monthly account maintenance and activity or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed, which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.

• Other service charges and fees – These represent credit card interchange fees and Centennial CFG loan fees. The interchange fees are recorded in the period the performance obligation is satisfied which is generally the cash basis based on agreed upon contracts. Centennial CFG loan fees are based on loan or other negotiated agreements with customers and are accounted for under ASC Topic 310. Interchange fees were $4.0 million, $17.3 million, $5.6 million and $17.4 million for the three and nine-month periods ended September 30, 2018 and September 30, 2017, respectively. Centennial CFG loan fees were $3.3 million, $6.5 million, $1.7 million and $4.7 million for the three and nine-month periods ended September 30, 2018 and September 30, 2017, respectively.

• Mortgage lending income – This represents fee income on secondary market lending which is accounted for under ASC Topic 310 and transfer of loans based on a “bid” agreement with the investor which is accounted for under ASC Topic 860, Transfers and Servicing.

Financial Instruments. ASU 2016-01 “Financial Instruments – Overall (Subtopic 825-10): Recognition of Financial Assets and Financial Liabilities, (“ASU 2016-01”) makes targeted amendments to the guidance for recognition, measurement, presentation and disclosure of financial instruments. ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in accumulated other comprehensive income (“AOCI”). ASU 2016-01 became effective for us on January 1, 2018. The adoption of the guidance resulted in a $990,000 cumulative-effect adjustment that increased retained earnings, with offsetting related adjustments to deferred taxes and AOCI. ASU 2016-01 also emphasizes the existing requirement to use exit prices to measure fair value for disclosure purposes and clarifies that entities should not make use of a practicability exception in determining the fair value of loans. Accordingly, we refined the calculation used to determine the disclosed fair value of our loans held for investment portfolio as part of adopting this standard. The refined calculation did not have a significant impact on our fair value disclosures.

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Investments – Available-for-sale. Securities available-for-sale are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity and other comprehensive income (loss), net of taxes. Securities that are held as available-for-sale are used as a part of our asset/liability management strategy. Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale.

Investments – Held-to-Maturity. Securities held-to-maturity, which include any security for which we have the positive intent and ability to hold until maturity, are reported at historical cost adjusted for amortization of premiums and accretion of discounts. Premiums and discounts are amortized and accreted, respectively, to interest income using the constant yield method over the period to maturity.

Loans Receivable and Allowance for Loan Losses. Except for loans acquired during our acquisitions, substantially all of our loans receivable are reported at their outstanding principal balance adjusted for any charge-offs, as it is management’s intent to hold them for the foreseeable future or until maturity or payoff, except for mortgage loans held for sale. Interest income on loans is accrued over the term of the loans based on the principal balance outstanding.

The allowance for loan losses is established through a provision for loan losses charged against income. The allowance represents an amount that, in management’s judgment, will be adequate to absorb probable credit losses on identifiable loans that may become uncollectible and probable credit losses inherent in the remainder of the loan portfolio. The amounts of provisions for loan losses are based on management’s analysis and evaluation of the loan portfolio for identification of problem credits, internal and external factors that may affect collectability, relevant credit exposure, particular risks inherent in different kinds of lending, current collateral values and other relevant factors.

The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows, collateral value or observable market price of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical charge-off experience and expected loss given default derived from the bank’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data.

Loans considered impaired, under FASB ASC 310-10-35, are loans for which, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. The aggregate amount of impairment of loans is utilized in evaluating the adequacy of the allowance for loan losses and amount of provisions thereto. Losses on impaired loans are charged against the allowance for loan losses when in the process of collection, it appears likely that such losses will be realized. The accrual of interest on impaired loans is discontinued when, in management’s opinion the collection of interest is doubtful, or generally when loans are 90 days or more past due. When accrual of interest is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans.

Loans are placed on non-accrual status when management believes that the borrower’s financial condition, after giving consideration to economic and business conditions and collection efforts, is such that collection of interest is doubtful, or generally when loans are 90 days or more past due. Loans are charged against the allowance for loan losses when management believes that the collectability of the principal is unlikely. Accrued interest related to non-accrual loans is generally charged against the allowance for loan losses when accrued in prior years and reversed from interest income if accrued in the current year. Interest income on non-accrual loans may be recognized to the extent cash payments are received, although the majority of payments received are usually applied to principal. Non-accrual loans are generally returned to accrual status when principal and interest payments are less than 90 days past due, the customer has made required payments for at least six months, and we reasonably expect to collect all principal and interest.

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Acquisition Accounting and Acquired Loans. We account for our acquisitions under FASB ASC Topic 805, Business Combinations, which requires the use of the acquisition method of accounting. All identifiable assets acquired, including loans, are recorded at fair value. No allowance for loan losses related to the acquired loans is recorded on the acquisition date as the fair value of the purchased loans incorporates assumptions regarding credit risk. All purchased loans are recorded at fair value in accordance with the fair value methodology prescribed in FASB ASC Topic 820, Fair Value Measurements. The fair value estimates associated with the loans include estimates related to expected prepayments and the amount and timing of undiscounted expected principal, interest and other cash flows.

Over the life of the purchased credit impaired loans, we continue to estimate cash flows expected to be collected on pools of loans sharing common risk characteristics, which are treated in the aggregate when applying various valuation techniques. We evaluate at each balance sheet date whether the present value of our pools of loans determined using the effective interest rates has decreased and if so, recognize a provision for loan loss in its consolidated statement of income. For any increases in cash flows expected to be collected, we adjust the amount of accretable yield recognized on a prospective basis over the pool’s remaining life.

Foreclosed Assets Held for Sale. Real estate and personal properties acquired through or in lieu of loan foreclosure are to be sold and are initially recorded at fair value at the date of foreclosure, establishing a new cost basis. Valuations are periodically performed by management, and the real estate and personal properties are carried at fair value less costs to sell. Gains and losses from the sale of other real estate and personal properties are recorded in non-interest income, and expenses used to maintain the properties are included in non-interest expenses.

Intangible Assets. Intangible assets consist of goodwill and core deposit intangibles. Goodwill represents the excess purchase price over the fair value of net assets acquired in business acquisitions. The core deposit intangible represents the excess intangible value of acquired deposit customer relationships as determined by valuation specialists. The core deposit intangibles are being amortized over 48 to 121 months on a straight-line basis. Goodwill is not amortized but rather is evaluated for impairment on at least an annual basis. We perform an annual impairment test of goodwill and core deposit intangibles as required by FASB ASC 350, Intangibles – Goodwill and Other, in the fourth quarter.

Income Taxes. We account for income taxes in accordance with income tax accounting guidance (ASC 740, Income Taxes). The income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. We determine deferred income taxes using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is based on the tax effects of the differences between the book and tax basis of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.

Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term “more likely than not” means a likelihood of more than 50 percent; the terms “examined” and “upon examination” also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances and information available at the reporting date and is subject to the management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized.

Both we and our subsidiary file consolidated tax returns. Our subsidiary provides for income taxes on a separate return basis, and remits to us amounts determined to be currently payable.

Stock Compensation. In accordance with FASB ASC 718, Compensation – Stock Compensation, and FASB ASC 505-50, Equity-Based Payments to Non-Employees, the fair value of each option award is estimated on the date of grant. We recognize compensation expense for the grant-date fair value of the option award over the vesting period of the award.

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Acquisitions

Acquisition of Shore Premier Finance

On June 30, 2018, the Company, completed the acquisition of Shore Premier Finance (“SPF”), a division of Union Bank & Trust of Richmond, Virginia (“Union”), the bank subsidiary of Union Bankshares Corporation. The Company paid a purchase price of approximately $377.4 million in cash, subject to certain post-closing adjustments, and 1,250,000 shares of HBI common stock. SPF provides direct consumer financing for United States Coast Guard (“USCG”) registered high-end sail and power boats. Additionally, SPF provides inventory floor plan lines of credit to marine dealers, primarily those selling USCG documented vessels.

Including the effects of known purchase accounting adjustments, as of acquisition date, SPF had approximately $377.0 million in total assets, including $376.2 million in total loans and $1.9 million in assumed liabilities, which resulted in tentative goodwill of $30.5 million being recorded. The purchase price allocation and certain fair value measurements remain preliminary due to the timing of the acquisition. The Company will continue to review the estimated fair values of loans and intangible assets and to evaluate the assumed tax positions and contingencies.

This portfolio of loans is now housed in a division of Centennial known as Shore Premier Finance. The SPF division of Centennial is responsible for servicing the acquired loan portfolio and originating new loan production. In connection with this acquisition and the creation of the SPF division of Centennial, Centennial has opened a new loan production office in Chesapeake, Virginia. Through this loan production office, the SPF division of Centennial will continue its vision to build out a lending platform focusing on commercial and consumer marine loans.

See Note 2 “Business Combinations” in the Notes to Consolidated Financial Statements for additional information regarding the acquisition of SPF.

Acquisition of Stonegate Bank

On September 26, 2017, the Company completed the acquisition of all of the issued and outstanding shares of common stock of Stonegate Bank (“Stonegate”), and merged Stonegate into Centennial. The Company paid a purchase price to the Stonegate shareholders of approximately $792.4 million for the Stonegate acquisition. Under the terms of the merger agreement, shareholders of Stonegate received 30,863,658 shares of HBI common stock valued at approximately $742.3 million plus approximately $50.1 million in cash in exchange for all outstanding shares of Stonegate common stock. In addition, the holders of outstanding stock options of Stonegate received approximately $27.6 million in cash in connection with the cancellation of their options immediately before the acquisition closed, for a total transaction value of approximately $820.0 million.

Including the effects of the purchase accounting adjustments, as of acquisition date, Stonegate had approximately $2.89 billion in total assets, $2.37 billion in loans and $2.53 billion in customer deposits. Stonegate formerly operated its banking business from 24 locations in key Florida markets with significant presence in Broward and Sarasota counties.

Through our acquisition and merger of Stonegate into Centennial, we maintain a customer relationship to handle the accounts for Cuba’s diplomatic missions at the United Nations and for the Cuban Interests Section (now the Cuban Embassy) in Washington, D.C. This relationship was established in May 2015 pursuant to a special license granted to Stonegate by the U.S. Treasury Department’s Office of Foreign Assets Control in connection with the reestablishment of diplomatic relations between the U.S. and Cuba. In July 2015, Stonegate established a correspondent banking relationship with Banco Internacional de Comercio, S.A. in Havana, Cuba.

See Note 2 “Business Combinations” in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2017, for additional information regarding the acquisition of Stonegate.

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Acquisition of The Bank of Commerce

On February 28, 2017, the Company completed its acquisition of all of the issued and outstanding shares of common stock of The Bank of Commerce, a Florida state-chartered bank that operated in the Sarasota, Florida area (“BOC”), pursuant to an acquisition agreement, dated December 1, 2016, by and between the Company and Bank of Commerce Holdings, Inc. (“BCHI”), parent company of BOC. The Company merged BOC with and into Centennial effective as of the close of business on February 28, 2017.

The acquisition of BOC was conducted in accordance with the provisions of Section 363 of the United States Bankruptcy Code (the “Bankruptcy Code”) pursuant to a voluntary petition for relief under Chapter 11 of the Bankruptcy Code filed by BCHI with the United States Bankruptcy Court for the Middle District of Florida (the “Bankruptcy Court”). The sale of BOC by BCHI was subject to certain bidding procedures approved by the Bankruptcy Court, under which the Company submitted an initial bid to purchase the outstanding shares of BOC and was deemed to be the successful bidder after a subsequent auction was held. The Bankruptcy Court entered a final order on December 9, 2016 approving the sale of BOC to the Company pursuant to and in accordance with the acquisition agreement.

Under the terms of the acquisition agreement, the Company paid an aggregate of approximately $4.2 million in cash for the acquisition, which included the purchase of all outstanding shares of BOC common stock, the discounted purchase of certain subordinated debentures issued by BOC from the existing holders of the subordinated debentures, and an expense reimbursement to BCHI for approved administrative claims in connection with the bankruptcy proceeding.

BOC formerly operated three branch locations in the Sarasota, Florida area. Including the effects of the purchase accounting adjustments, as of acquisition date, BOC had approximately $178.1 million in total assets, $118.5 million in loans after $5.8 million of loan discounts, and $139.8 million in deposits.

See Note 2 “Business Combinations” in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2017, for additional information regarding the acquisition of BOC.

Acquisition of Giant Holdings, Inc.

On February 23, 2017, the Company completed its acquisition of Giant Holdings, Inc. (“GHI”), parent company of Landmark Bank, N.A. (“Landmark”), pursuant to a definitive agreement and plan of merger whereby GHI merged with and into HBI and, immediately thereafter, Landmark merged with and into Centennial. The Company paid a purchase price to the GHI shareholders of approximately $96.0 million for the GHI acquisition. Under the terms of the agreement, shareholders of GHI received 2,738,038 shares of its common stock valued at approximately $77.5 million as of February 23, 2017, plus approximately $18.5 million in cash in exchange for all outstanding shares of GHI common stock.

GHI formerly operated six branch locations in the Ft. Lauderdale, Florida area. Including the effects of the purchase accounting adjustments, as of acquisition date, GHI had approximately $398.1 million in total assets, $327.8 million in loans after $8.1 million of loan discounts, and $304.0 million in deposits.

See Note 2 “Business Combinations” in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2017, for additional information regarding the acquisition of GHI.

Future Acquisitions

In our continuing evaluation of our growth plans, we believe properly priced bank acquisitions can complement our organic growth and de novo branching growth strategies. In the near term, our principal acquisition focus will be to continue to expand our presence in Arkansas, Florida and Alabama and into other contiguous markets through pursuing both non-FDIC-assisted and FDIC-assisted bank acquisitions. However, as financial opportunities in other market areas arise, we may expand into those areas.

We will continue evaluating all types of potential bank acquisitions and monitoring market conditions to determine what opportunities, if any, are feasible and in the best interest of our Company. Our goal in making these decisions is to maximize the return to our investors. We cannot assure that we will be able to identify suitable acquisition candidates or successfully complete any future acquisitions that we may consider.

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Branches

As opportunities arise, we will continue to open new (commonly referred to as de novo) branches in our current markets and in other attractive market areas.

During the third quarter of 2018, we opened a loan production office in Dallas, Texas. As of September 30, 2018, we had 159 branch locations. There were 77 branches in Arkansas, 76 branches in Florida, five branches in Alabama and one branch in New York City.

Results of Operations

For the Three and Nine Months Ended September 30, 2018 and 2017

Our net income increased $65.5 million, or 441.7%, to $80.3 million for the three-month period ended September 30, 2018, from $14.8 million for the same period in 2017. On a diluted earnings per share basis, our earnings were $0.46 per share and $0.10 per share for the three-month periods ended September 30, 2018 and 2017, respectively. Excluding the $18.2 million of merger expenses associated with the Stonegate Bank ( “Stonegate”) acquisition and $33.4 million of hurricane expenses, our net income increased $33.8 million, or 72.8%, to $80.3 million for the three-month period ended September 30, 2018, from $46.4 million for the same period in 2017 (See Table 18 for the non-GAAP tabular reconciliation). The $33.8 million increase in net income includes $13.4 million from tax savings of the TCJA. The remaining $20.4 million is primarily associated with additional net income from the acquisition of Stonegate, increased profitability of Centennial CFG and the acquisition of Shore Premier Finance.

Our net income increased $117.6 million, or 105.2%, to $229.4 million for the nine-month period ended September 30, 2018, from $111.8 million for the same period in 2017. On a diluted earnings per share basis, our earnings were $1.32 per share and $0.78 per share for the nine-month periods ended September 30, 2018 and 2017, respectively. Excluding the $3.8 million of non-taxable gain on acquisition, $25.7 million of merger expenses associated with the 2017 acquisitions and $33.4 million of hurricane expenses, our net income increased $84.8 million, or 58.7%, to $229.4 million for the nine-month period ended September 30, 2018, from $144.5 million for the same period in 2017 (See Table 18 for the non-GAAP tabular reconciliation). The $84.8 million increase in net income includes $38.0 million from tax savings of the TCJA. The remaining $46.8 million increase in net income from the 2017 acquisitions, increased profitability of Centennial CFG and the acquisition of Shore Premier Finance.

Net Interest Income

Net interest income, our principal source of earnings, is the difference between the interest income generated by earning assets and the total interest cost of the deposits and borrowings obtained to fund those assets. Factors affecting the level of net interest income include the volume of earning assets and interest-bearing liabilities, yields earned on loans and investments, rates paid on deposits and other borrowings, the level of non-performing loans and the amount of non-interest-bearing liabilities supporting earning assets. Net interest income is analyzed in the discussion and tables below on a fully taxable equivalent basis. The adjustment to convert certain income to a fully taxable equivalent basis consists of dividing tax-exempt income by one minus the combined federal and state income tax rate (26.135% and 39.225% for the three and nine-month periods ended September 30, 2018 and 2017, respectively).

The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the deposit and loan rates offered by financial institutions. The Federal Funds target rate, which is the cost to banks of immediately available overnight funds, has increased 75 basis points since December 31, 2017, and is currently at 2.00% to 2.25%.

For the three months ended September 30, 2018 and 2017, we recognized $10.7 million and $7.2 million in total net accretion for acquired loans and deposits. Purchase accounting accretion on acquired loans was $10.6 million and $7.1 million and average purchase accounting loan discounts were $151.4 million and $98.0 million for the three-month periods ended September 30, 2018 and September 30, 2017, respectively. Net accretion of time deposit premiums was $66,000 and $106,000 and net average unamortized CD premiums were $448,000 and $733,000 for the three-month periods ended September 30, 2018 and September 30, 2017, respectively.

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For the nine months ended September 30, 2018 and 2017, we recognized $32.0 million and $23.3 million, respectively, in total net accretion for acquired loans and deposits. Purchase accounting accretion on acquired loans was $31.7 million and $23.0 million and average purchase accounting loan discounts were $156.9 million and $97.2 million for the nine-month periods ended September 30, 2018 and September 30, 2017, respectively. Net accretion of time deposit premiums was $270,000 and $300,000 and net average unamortized CD premiums were $542,000 and $721,000 for the nine-month periods ended September 30, 2018 and September 30, 2017, respectively.

Our net interest margin increased from 4.40% for the three-month period ended September 30, 2017 to 4.46% for the three-month period ended September 30, 2018. The yield on loans was 6.06% and 5.66% for the three months ended September 30, 2018 and 2017, respectively as average loans increased from $7.94 billion to $10.91 billion. The increase in loan balances is primarily due to the acquisition of Stonegate. For the three months ended September 30, 2018 and 2017, we recognized $10.7 million and $7.2 million in total net accretion for acquired loans and deposits. The rate on interest-bearing deposits increased from 0.57% for the three months ended September 30, 2017 to 1.05% for the three months ended September 30, 2018 with average balances of $5.96 billion and $8.07 billion, respectively.

Our net interest margin decreased from 4.53% for the nine-month period ended September 30, 2017 to 4.46% for the nine-month period ended September 30, 2018. The yield on loans was 5.95% and 5.70% for the nine months ended September 30, 2018 and 2017, respectively as average loans increased from $7.79 billion to $10.53 billion. The increase in loan balances is primarily due to the acquisitions we completed during 2017. For the nine months ended September 30, 2018 and 2017, we recognized $32.0 million and $23.3 million, respectively, in total net accretion for acquired loans and deposits. The rate on interest-bearing deposits increased from 0.49% for the nine months ended September 30, 2017, to 0.91% for the nine months ended September 30, 2018, with average balances of $5.73 billion and $8.02 billion, respectively.

Net interest income on a fully taxable equivalent basis increased $38.8 million, or 35.7%, to $147.4 million for the three-month period ended September 30, 2018, from $108.6 million for the same period in 2017. This increase in net interest income for the three-month period ended September 30, 2018 was the result of a $55.8 million increase in interest income partially offset by a $17.0 million increase in interest expense. The $55.8 million increase in interest income was primarily the result of a higher level of earning assets accompanied by higher yields on our loans. The higher level of earning assets resulted in an increase in interest income of approximately $47.1 million. The higher yield on our interest earning assets resulted in an approximately $8.7 million increase in interest income. The repricing of our interest-bearing liabilities in a higher interest rate environment resulted in an approximately $11.1 million increase in interest expense. The higher level of our interest-bearing liabilities resulted in an increase in interest expense of approximately $5.9 million.

Net interest income on a fully taxable equivalent basis increased $100.0 million, or 30.8%, to $424.8 million for the nine-month period ended September 30, 2018, from $324.8 million for the same period in 2017. This increase in net interest income for the nine-month period ended September 30, 2018 was the result of a $144.5 million increase in interest income partially offset by a $44.5 million increase in interest expense. The $144.5 million increase in interest income was primarily the result of a higher level of earning assets accompanied by higher yields on our loans. The higher level of earning assets resulted in an increase in interest income of approximately $128.4 million. The higher yield on our interest earning assets resulted in an approximately $16.1 million increase in interest income. The repricing of our interest-bearing liabilities in a higher interest rate environment resulted in an approximately $30.0 million increase in interest expense. The higher level of our interest-bearing liabilities resulted in an increase in interest expense of approximately $14.5 million.

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Tables 2 and 3 reflect an analysis of net interest income on a fully taxable equivalent basis for the three and nine-month periods ended September 30, 2018 and 2017, as well as changes in fully taxable equivalent net interest margin for the three and nine-month periods ended September 30, 2018 compared to the same period in 2017.

Table 2: Analysis of Net Interest Income

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(Dollars in thousands)
Interest income	$	180,051		$	123,913		$	507,588		$	361,270
Fully taxable equivalent adjustment		1,489			1,846			4,101			5,873
Interest income – fully taxable equivalent		181,540			125,759			511,689			367,143
Interest expense		34,141			17,144			86,857			42,334
Net interest income – fully taxable equivalent		147,399		$	108,615			424,832		$	324,809
Yield on earning assets – fully taxable equivalent		5.49	%		5.09	%		5.38	%		5.12	%
Cost of interest-bearing liabilities		1.36			0.92			1.20			0.78
Net interest spread – fully taxable equivalent		4.13			4.17			4.18			4.34
Net interest margin – fully taxable equivalent		4.46			4.40			4.46			4.53

Table 3: Changes in Fully Taxable Equivalent Net Interest Margin

	Three Months Ended September 30, 2018 vs. 2017			Nine Months Ended September 30, 2018 vs. 2017
	(In thousands)
Increase (decrease) in interest income due to change in earning assets	$	47,124		$	128,435
Increase (decrease) in interest income due to change in earning asset yields		8,657			16,111
(Increase) decrease in interest expense due to change in interest-bearing liabilities		(5,890	)		(14,483	)
(Increase) decrease in interest expense due to change in interest rates paid on interest-bearing liabilities		(11,107	)		(30,040	)
Increase (decrease) in net interest income	$	38,784		$	100,023

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Table 4 shows, for each major category of earning assets and interest-bearing liabilities, the average amount outstanding, the interest income or expense on that amount and the average rate earned or expensed for the three and nine-month periods ended September 30, 2018 and 2017, respectively. The table also shows the average rate earned on all earning assets, the average rate expensed on all interest-bearing liabilities, the net interest spread and the net interest margin for the same periods. The analysis is presented on a fully taxable equivalent basis. Non-accrual loans were included in average loans for the purpose of calculating the rate earned on total loans.

Table 4: Average Balance Sheets and Net Interest Income Analysis

	Three Months Ended September 30,
	2018							2017
	Average Balance		Income / Expense		Yield / Rate			Average Balance		Income / Expense		Yield / Rate
	(Dollars in thousands)
ASSETS
Earnings assets
Interest-bearing balances due from banks	$	281,115	$	1,273		1.80	%	$	180,368	$	538		1.18	%
Federal funds sold		524		6		4.54			878		3		1.36
Investment securities – taxable		1,526,455		9,011		2.34			1,326,117		7,071		2.12
Investment securities – non-taxable		402,355		4,507		4.44			348,920		4,908		5.58
Loans receivable		10,909,646		166,743		6.06			7,938,716		113,239		5.66
Total interest-earning assets		13,120,095	$	181,540		5.49			9,794,999	$	125,759		5.09
Non-earning assets		1,760,836							1,058,560
Total assets	$	14,880,931						$	10,853,559
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	6,406,711	$	15,596		0.97	%	$	4,512,785	$	5,755		0.51	%
Time deposits		1,661,129		5,816		1.39			1,444,662		2,780		0.76
Total interest-bearing deposits		8,067,840		21,412		1.05			5,957,447		8,535		0.57
Federal funds purchased		—		—		—			—		—		—
Securities sold under agreement to repurchase		148,791		472		1.26			135,855		232		0.68
FHLB and other borrowed funds		1,398,738		7,055		2.00			920,754		3,408		1.47
Subordinated debentures		368,501		5,202		5.60			358,347		4,969		5.50
Total interest-bearing liabilities		9,983,870		34,141		1.36			7,372,403		17,144		0.92
Non-interest-bearing liabilities
Non-interest-bearing deposits		2,512,690							1,924,933
Other liabilities		66,441							42,394
Total liabilities		12,563,001							9,339,730
Stockholders’ equity		2,317,930							1,513,829
Total liabilities and stockholders’ equity	$	14,880,931						$	10,853,559
Net interest spread						4.13	%						4.17	%
Net interest income and margin			$	147,399		4.46	%			$	108,615		4.40	%

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Table 4: Average Balance Sheets and Net Interest Income Analysis

	Nine Months Ended September 30,
	2018							2017
	Average Balance		Income / Expense		Yield / Rate			Average Balance		Income / Expense		Yield / Rate
	(Dollars in thousands)
ASSETS
Earnings assets
Interest-bearing balances due from banks	$	271,987	$	3,408		1.68	%	$	218,324	$	1,573		0.96	%
Federal funds sold		3,595		24		0.89			1,161		9		1.04
Investment securities – taxable		1,538,387		26,960		2.34			1,231,619		18,983		2.06
Investment securities – non-taxable		382,088		12,981		4.54			347,578		14,506		5.58
Loans receivable		10,529,117		468,316		5.95			7,785,925		332,072		5.70
Total interest-earning assets		12,725,174	$	511,689		5.38			9,584,607	$	367,143		5.12
Non-earning assets		1,750,456							1,033,310
Total assets	$	14,475,630						$	10,617,917
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Interest-bearing liabilities
Savings and interest-bearing transaction accounts	$	6,422,489	$	40,327		0.84	%	$	4,316,032	$	13,445		0.42	%
Time deposits		1,595,985		14,055		1.18			1,415,383		7,386		0.70
Total interest-bearing deposits		8,018,474		54,382		0.91			5,731,415		20,831		0.49
Federal funds purchased		41		1		3.26			—		—		—
Securities sold under agreement to repurchase		148,472		1,220		1.10			129,580		593		0.61
FHLB and other borrowed funds		1,159,973		15,880		1.83			1,155,503		10,707		1.24
Subordinated debentures		368,313		15,374		5.58			258,032		10,203		5.29
Total interest-bearing liabilities		9,695,273		86,857		1.20			7,274,530		42,334		0.78
Non-interest-bearing liabilities
Non-interest-bearing deposits		2,464,032							1,847,843
Other liabilities		54,731							48,804
Total liabilities		12,214,036							9,171,177
Stockholders’ equity		2,261,594							1,446,740
Total liabilities and stockholders’ equity	$	14,475,630						$	10,617,917
Net interest spread						4.18	%						4.34	%
Net interest income and margin			$	424,832		4.46	%			$	324,809		4.53	%

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Table 5 shows changes in interest income and interest expense resulting from changes in volume and changes in interest rates for the three and nine-month periods ended September 30, 2018 compared to the same period in 2017, on a fully taxable basis. The changes in interest rate and volume have been allocated to changes in average volume and changes in average rates, in proportion to the relationship of absolute dollar amounts of the changes in rates and volume.

Table 5: Volume/Rate Analysis

	Three Months Ended September 30, 2018 over 2017									Nine Months Ended September 30, 2018 over 2017
	Volume			Yield/Rate			Total			Volume		Yield/Rate			Total
	(In thousands)
Increase (decrease) in:
Interest income:
Interest-bearing balances due from banks	$	382		$	353		$	735		$	458	$	1,377		$	1,835
Federal funds sold		(1	)		4			3			16		(1	)		15
Investment securities – taxable		1,135			805			1,940			5,146		2,831			7,977
Investment securities – non-taxable		686			(1,087	)		(401	)		1,347		(2,872	)		(1,525	)
Loans receivable		44,922			8,582			53,504			121,468		14,776			136,244
Total interest income		47,124			8,657			55,781			128,435		16,111			144,546
Interest expense:
Interest-bearing transaction and savings deposits		3,108			6,733			9,841			8,725		18,157			26,882
Time deposits		470			2,566			3,036			1,044		5,625			6,669
Federal funds purchased		—			—			—			1		—			1
Securities sold under agreement to repurchase		23			217			240			97		530			627
FHLB borrowed funds		2,147			1,500			3,647			41		5,132			5,173
Subordinated debentures		142			91			233			4,575		596			5,171
Total interest expense		5,890			11,107			16,997			14,483		30,040			44,523
Increase (decrease) in net interest income	$	41,234		$	(2,450	)	$	38,784		$	113,952	$	(13,929	)	$	100,023

Provision for Loan Losses

Our management assesses the adequacy of the allowance for loan losses by applying the provisions of FASB ASC 310-10-35. Specific allocations are determined for loans considered to be impaired and loss factors are assigned to the remainder of the loan portfolio to determine an appropriate level in the allowance for loan losses. The allowance is increased, as necessary, by making a provision for loan losses. The specific allocations for impaired loans are assigned based on an estimated net realizable value after a thorough review of the credit relationship. The potential loss factors associated with the remainder of the loan portfolio are based on an internal net loss experience, as well as management’s review of trends within the portfolio and related industries.

While general economic trends have continued to improve, we cannot be certain that the current economic conditions will continue in the future. Recent and ongoing events at the national and international levels can create uncertainty in the financial markets. Despite the current positive economic conditions, we continue to follow our historically conservative procedures for lending and evaluating the provision and allowance for loan losses. Our practice continues to be primarily traditional real estate lending with strong loan-to-value ratios.

Generally, commercial, commercial real estate, and residential real estate loans are assigned a level of risk at origination. Thereafter, these loans are reviewed on a regular basis. The periodic reviews generally include loan payment and collateral status, the borrowers’ financial data, and key ratios such as cash flows, operating income, liquidity, and leverage. A material change in the borrower’s credit analysis can result in an increase or decrease in the loan’s assigned risk grade. Aggregate dollar volume by risk grade is monitored on an on-going basis.

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Our management reviews certain key loan quality indicators on a monthly basis, including current economic conditions, delinquency trends and ratios, portfolio mix changes, and other information management deems necessary. This review process provides a degree of objective measurement that is used in conjunction with periodic internal evaluations. To the extent that this review process yields differences between estimated and actual observed losses, adjustments are made to the loss factors used to determine the appropriate level of the allowance for loan losses.

Our Company is primarily a real estate lender in the markets we serve. As such, we are subject to declines in asset quality when real estate prices fall. The recession in the latter years of the last decade harshly impacted the real estate market in Florida. The economic conditions in virtually every asset class, particularly in our Florida markets, have improved in recent years. Our Arkansas markets’ economies remained relatively stable during and after the recession with no significant boom or bust.

The provision for loan losses represents management’s determination of the amount necessary to be charged against the current period’s earnings, to maintain the allowance for loan losses at a level that is considered adequate in relation to the estimated risk inherent in the loan portfolio.

We had zero and $35.0 million of provision for loan losses for the three months ended September 30, 2018 and 2017, respectively, reflecting a $35.0 million decrease in the provision for loan losses during the third quarter of 2018 versus the third quarter of 2017. This $35.0 million decrease is primarily a result of the $33.4 hurricane reserve recorded in the third quarter of 2017, decreased net charge-offs and negative organic loan growth.

We had $4.3 million and $39.3 million of provision for loan losses for the nine months ended September 30, 2018 and 2017, respectively, reflecting a $35.0 million decrease in the provision for loan losses for the nine months ended September 30, 2018 versus the nine months ended September 30, 2017. This $35.0 million decrease is primarily a result of the $33.4 hurricane reserve recorded in the third quarter of 2017, decreased net charge-offs and lower organic loan growth.

Based upon current accounting guidance, the allowance for loan losses is not carried over in an acquisition. As a result, none of the acquired loans had any allocation of the allowance for loan losses at merger date. This is the result of all purchased loans being recorded at fair value in accordance with the fair value methodology prescribed in ASC Topic 820. However, as the acquired loans payoff or renew and the acquired footprint originates new loan production, it is necessary to establish an allowance which represents an amount that, in management’s judgment, will be adequate to absorb credit losses. The allowance for loan loss methodology for all originated loans as disclosed in Note 1 to the Notes to Consolidated Financial Statements in our Form 10-K was used for these loans. Our current or historical provision levels should not be relied upon as a predictor or indicator of future levels going forward.

Non-Interest Income

Total non-interest income was $25.8 million and $79.3 million for the three and nine-month periods ended September 30, 2018, compared to $21.5 million and $72.3 million for the same periods in 2017, respectively. Our recurring non-interest income includes service charges on deposit accounts, other service charges and fees, trust fees, mortgage lending, insurance, increase in cash value of life insurance and dividends.

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Table 6 measures the various components of our non-interest income for the three and nine-month periods ended September 30, 2018 and 2017, respectively, as well as changes for the three and nine-month periods ended September 30, 2018 compared to the same period in 2017.

Table 6: Non-Interest Income

	Three Months Ended September 30,						2018 Change from 2017					Nine Months Ended September 30,						2018 Change from 2017
	2018			2017								2018			2017
	(Dollars in thousands)
Service charges on deposit accounts	$	6,992		$	6,408		$	584		9.1	%	$	19,847		$	18,356		$	1,491		8.1	%
Other service charges and fees		9,041			8,490			551		6.5			28,993			25,983			3,010		11.6
Trust fees		437			365			72		19.7			1,262			1,130			132		11.7
Mortgage lending income		3,691			3,172			519		16.4			9,825			9,713			112		1.2
Insurance commissions		463			472			(9	)	(1.9	)		1,668			1,482			186		12.6
Increase in cash value of life insurance		735			478			257		53.8			2,119			1,251			868		69.4
Dividends from FHLB, FRB, FNBB & other		1,288			834			454		54.4			3,765			2,455			1,310		53.4
Gain on acquisitions		—			—			—		—			—			3,807			(3,807	)	(100.0	)
Gain on sale of SBA loans		47			163			(116	)	(71.2	)		491			738			(247	)	(33.5	)
Gain (loss) on sale of branches, equipment and other assets, net		(102	)		(1,337	)		1,235		92.4			(95	)		(962	)		867		90.1
Gain (loss) on OREO, net		836			335			501		149.6			2,287			849			1,438		169.4
Gain (loss) on securities, net		—			136			(136	)	(100.0	)		—			939			(939	)	(100.0	)
Other income		2,419			1,941			478		24.6			9,163			6,603			2,560		38.8
Total non-interest income	$	25,847		$	21,457		$	4,390		20.5	%	$	79,325		$	72,344		$	6,981		9.6	%

Non-interest income increased $4.4 million, or 20.5%, to $25.8 million for the three-month period ended September 30, 2018 from $21.5 million for the same period in 2017. Non-interest income increased $7.0 million, or 9.6%, to $79.3 million for the nine-month period ended September 30, 2018 from $72.3 million for the same period in 2017. Non-interest income excluding gain on acquisitions increased $10.8 million, or 15.7%, to $79.3 million for the nine months ended September 30, 2018 from $68.5 million for the same period in 2017.

Excluding gain on acquisitions, the primary factors that resulted in this increase were changes related to other service charges and fees, increase in cash value of life insurance, dividends, net gain on securities, net gain on OREO and other income.

Additional details for the three months ended September 30, 2018 on some of the more significant changes are as follows:

• The $584,000 increase in service charges on deposit accounts is primarily related to an increase in overdraft fees due to additional volume, the acquisition of Stonegate during the third quarter of 2017 and improved pricing.

• The $551,000 increase in other service charges and fees is primarily from the acquisition of Stonegate during the third quarter of 2017 and additional exit fees from Centennial CFG loan payoffs during the third quarter of 2018 which were partially offset by lower fee income as a result of the Company being subject to interchange fee restrictions from the Durbin Amendment, which began during the third quarter of 2018.

• The $519,000 increase in mortgage lending income is primarily related to the acquisition of Stonegate during the third quarter of 2017 which resulted in an increase in secondary market lending fees and fair market value adjustments for loan hedging which was partially offset by a decrease in the gain on sale of mortgage loans and fair market value adjustments for mortgage loans held for sale.

• The $454,000 increase in dividends from FHLB, FRB, First National Bankers’ Bank & other is primarily associated with higher dividend income from Federal Reserve and FHLB stock, which is related to an increased investment balance and improved dividend rate.

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• The $1.2 million increase in gain (loss) on branches, equipment and other assets, net is primarily due to lower levels of sales during the third quarter of 2018. The $1.3 million loss from the third quarter of 2017 was due to losses on three vacant properties sold during the third quarter of 2017.

• The $501,000 increase in gain on OREO is primarily related to realizing additional gains on sale from OREO properties during the third quarter of 2018 compared to the third quarter of 2017.

• Other income includes $1.0 million of additional income for items previously charged off, $877,000 of brokerage fee income, $435,000 of rental income and $110,000 of miscellaneous income.

We exceeded $10 billion in assets during the first quarter of 2017 and became subject to the Durbin Amendment to the Dodd-Frank Act interchange fee restrictions beginning in the third quarter of 2018. The Durbin Amendment negatively impacts debit card and ATM fees beginning in the second half of 2018. During the third quarter of 2018, we collected $3.7 million in debit card interchange fees, which was approximately $2.8 million lower from debit interchange fees of $6.6 million collected during the second quarter of 2018.

Additional details for the nine months ended September 30, 2018 on some of the more significant changes are as follows:

• The $1.5 million increase in service charges on deposit accounts is primarily related to an increase in overdraft fees due to additional volume, the acquisition of Stonegate during the third quarter of 2017 and improved pricing.

• The $3.0 million increase in other service charges and fees is primarily from the acquisition of Stonegate during the third quarter of 2017 and additional exit fees from Centennial CFG loan payoffs which were partially offset by lower fee income as a result of the Company being subject to interchange fee restrictions from the Durbin Amendment, which began during the third quarter of 2018.

• The $112,000 increase in mortgage lending income is primarily primarily related to the acquisition of Stonegate during the third quarter of 2017 which resulted in an increase in fee income which was offset by a decrease in the gain on sale of mortgage loans and fair market value adjustment for mortgage loans held for sale.

• The $1.3 million increase in dividends from FHLB, FRB, First National Bankers’ Bank & other is primarily associated with higher dividend income from Federal Reserve and FHLB stock, which is related to an increased investment balance and improved dividend rate.

• The $3.8 million decrease in gain on acquisitions is a result of no bargain purchase gain being recorded for the first nine months of 2018. During the first quarter of 2017, we acquired BOC and recorded a $3.8 million bargain purchase gain on this acquisition.

• The $867,000 increase in gain (loss) on branches, equipment and other assets, net is primarily due to lower levels of sales during the first nine months of 2018. The $962,000 loss from the first nine months of 2017 was primarily related to net losses on eleven vacant properties from closed branches.

• The $1.4 million increase in gain (loss) on OREO is primarily related to realizing additional gains on sale from OREO properties during the first nine months of 2018 and no revaluation expense for the first nine months of 2018 compared to $306,000 incurred during the first nine months of 2017.

• Other income includes $3.4 million of additional income for items previously charged off, $2.2 million of brokerage fee income, $1.2 million of rental income, $535,000 of income related to the fair value adjustment of equity securities and $1.0 million of miscellaneous income.

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Non-Interest Expense

Non-interest expense primarily consists of salaries and employee benefits, occupancy and equipment, data processing, and other expenses such as advertising, merger and acquisition expenses, amortization of intangibles, electronic banking expense, FDIC and state assessment, insurance, legal and accounting fees and other professional fees.

Table 7 below sets forth a summary of non-interest expense for the three and nine-month periods ended September 30, 2018 and 2017, as well as changes for the three and nine-month periods ended September 30, 2018 compared to the same period in 2017.

Table 7: Non-Interest Expense

	Three Months Ended September 30,				2018 Change from 2017					Nine Months Ended September 30,				2018 Change from 2017
	2018		2017							2018		2017
	(Dollars in thousands)
Salaries and employee benefits	$	37,825	$	28,510	$	9,315		32.7	%	$	107,315	$	83,965	$	23,350		27.8	%
Occupancy and equipment		8,148		7,887		261		3.3			25,650		21,602		4,048		18.7
Data processing expense		3,461		2,853		608		21.3			10,786		8,439		2,347		27.8
Other operating expenses:
Advertising		1,154		795		359		45.2			3,258		2,305		953		41.3
Merger and acquisition expenses		—		18,227		(18,227	)	(100.0	)		—		25,743		(25,743	)	(100.0	)
Amortization of intangibles		1,617		906		711		78.5			4,867		2,576		2,291		88.9
Electronic banking expense		1,947		1,712		235		13.7			5,653		4,885		768		15.7
Directors’ fees		314		309		5		1.6			962		946		16		1.7
Due from bank service charges		253		472		(219	)	(46.4	)		714		1,348		(634	)	(47.0	)
FDIC and state assessment		2,293		1,293		1,000		77.3			6,689		3,763		2,926		77.8
Insurance		762		577		185		32.1			2,363		1,698		665		39.2
Legal and accounting		761		698		63		9.0			2,397		1,799		598		33.2
Other professional fees		1,748		1,436		312		21.7			4,988		3,822		1,166		30.5
Operating supplies		510		432		78		18.1			1,712		1,376		336		24.4
Postage		311		280		31		11.1			978		861		117		13.6
Telephone		337		305		32		10.5			1,081		1,027		54		5.3
Other expense		4,682		4,154		528		12.7			13,318		10,835		2,483		22.9
Total non-interest expense	$	66,123	$	70,846	$	(4,723	)	(6.7	)%	$	192,731	$	176,990	$	15,741		8.9	%

Non-interest expense decreased $4.7 million, or 6.7%, to $66.1 million for the three months ended September 30, 2018 from $70.8 million for the same period in 2017. Non-interest expense increased $15.7 million, or 8.9%, to $192.7 million for the nine months ended September 30, 2018 from $177.0 million for the same period in 2017. Non-interest expense, excluding merger expenses, was $66.1 million and $192.7 million for the three and nine months ended September 30, 2018 compared to $52.6 million and $151.2 million for the same periods in 2017, respectively.

Included within salary and employee benefits expense is approximately $781,000 of additional expense related to performance based restricted stock and stock options granted during the third quarter of 2018 under the HOMB $2.00 program. During the third quarter of 2018, the Company granted 1,452,000 stock options and 843,500 shares of restricted stock to certain employees under HOMB $2.00. In addition, Centennial CFG incurred $1.8 million in incentive compensation paid as a result of fees collected from several large payoffs during the 3rd quarter of 2018.

The change in non-interest expense for 2018 when compared to 2017 is primarily related to the completion of the acquisition of Stonegate in the third quarter of 2017, the normal increased cost of doing business and additional costs associated with Centennial CFG.

Centennial CFG’s branch and loan production offices incurred $7.9 million and $19.0 million of non-interest expense during the three and nine months ended September 30, 2018, compared to $4.8 million and $13.8 million of non-interest expense during the three and nine months ended September 30, 2017, respectively. While the cost of doing business in New York City is significantly higher than our Arkansas, Florida and Alabama markets, we are still committed to cost-saving measures while achieving our goals of growing the Company.

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Income Taxes

In December 2017, President Trump signed into law the TCJA which lowered the Company’s corporate tax rate of 35.0% to 21.0%. Income tax expense increased $17.8 million, or 236.4%, to $25.4 million for the three-month period ended September 30, 2018, from $7.5 million for the same period in 2017. The income tax expense increased $10.4 million, or 16.5%, to $73.6 million for the nine-month period ended September 30, 2018, from $63.2 million for the same period in 2017. The effective income tax rate was 24.00% and 24.30% for the three and nine-month periods ended September 30, 2018, compared to 33.71% and 36.12% for the same periods in 2017, respectively. Since January 1, 2018, the Company has benefited from a lower marginal tax rate of 26.135% from 39.225% in previous years.

Financial Condition as of and for the Period Ended September 30, 2018 and December 31, 2017

Our total assets as of September 30, 2018 increased $463.0 million to $14.91 billion from the $14.45 billion reported as of December 31, 2017. Our loan portfolio increased $501.6 million or 4.86% for the quarter ended September 30, 2018 from $10.33 billion as of December 31, 2017 to $10.83 billion as of September 30, 2018. The increase is primarily due to the acquisition of $376.2 million of loans as part of the acquisition of Shore Premier Finance (“SPF”) as well as $125.4 million of organic loan growth for the first nine months of 2018. Total deposits increased $236.2 million to $10.62 billion as of September 30, 2018 from $10.39 billion as of December 31, 2017. Stockholders’ equity increased $136.7 million to $2.34 billion as of September 30, 2018, compared to $2.20 billion as of December 31, 2017. The increase in stockholders’ equity is primarily associated with the $171.2 million increase in retained earnings, the issuance of 1,250,000 shares of stock with a value of $28.2 million as part of the acquisition of SPF, and the issuance of $6.5 million of share-based compensation, which were partially offset by $27.3 million of comprehensive loss and the repurchase of $43.2 million of our common stock during 2018. The annualized improvement in stockholders’ equity for the first nine months of 2018, excluding the $28.2 million of common stock issued for the acquisition of SPF, was 6.6%

Loan Portfolio

Loans Receivable

Our loan portfolio averaged $10.91 billion and $7.94 billion during the three-month periods ended September 30, 2018 and 2017, respectively. Our loan portfolio averaged $10.53 billion and $7.79 billion during the nine-month periods ended September 30, 2018 and 2017, respectively. Loans receivable were $10.83 billion and $10.33 billion as of September 30, 2018 and December 31, 2017, respectively.

During the second quarter of 2018, the Company acquired $376.2 million of loans, net of known purchase accounting discounts. From December 31, 2017 to September 30, 2018, the Company produced organic loan growth of approximately $125.4 million in addition to the acquired loans. Centennial CFG produced $29.1 million of organic loan growth during the first nine months of 2018, while the legacy footprint produced $96.4 million of organic loan growth during the first nine months of 2018.

The most significant components of the loan portfolio were commercial real estate, residential real estate, consumer and commercial and industrial loans. These loans are generally secured by residential or commercial real estate or business or personal property. Although these loans are primarily originated within our Arkansas, Florida, South Alabama, SPF and Centennial CFG franchises, the property securing these loans may not physically be located within our primary market areas of Arkansas, Florida, Alabama and New York. Loans receivable were approximately $3.59 billion, $5.17 billion, $224.7 million, $382.5 million and $1.47 billion as of September 30, 2018 in our Arkansas, Florida, Alabama, SPF and Centennial CFG franchises, respectively.

As of September 30, 2018, we had approximately $508.4 million of construction land development loans which were collateralized by land. This consisted of approximately $230.8 million for raw land and approximately $277.6 million for land with commercial or residential lots.

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Table 8 presents our loans receivable balances by category as of September 30, 2018 and December 31, 2017.

Table 8: Loans Receivable

	As of September 30, 2018		As of December 31, 2017
	(In thousands)
Real estate:
Commercial real estate loans:
Non-farm/non-residential	$	4,685,827	$	4,600,117
Construction/land development		1,550,910		1,700,491
Agricultural		72,930		82,229
Residential real estate loans:
Residential 1-4 family		1,982,666		1,970,311
Multifamily residential		608,608		441,303
Total real estate		8,900,941		8,794,451
Consumer		428,192		46,148
Commercial and industrial		1,303,841		1,297,397
Agricultural		58,644		49,815
Other		141,197		143,377
Total loans receivable	$	10,832,815	$	10,331,188

Commercial Real Estate Loans. We originate non-farm and non-residential loans (primarily secured by commercial real estate), construction/land development loans, and agricultural loans, which are generally secured by real estate located in our market areas. Our commercial mortgage loans are generally collateralized by first liens on real estate and amortized over a 15 to 25-year period with balloon payments due at the end of one to five years. These loans are generally underwritten by assessing cash flow (debt service coverage), primary and secondary source of repayment, the financial strength of any guarantor, the strength of the tenant (if any), the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. Generally, we will loan up to 85% of the value of improved property, 65% of the value of raw land and 75% of the value of land to be acquired and developed. A first lien on the property and assignment of lease is required if the collateral is rental property, with second lien positions considered on a case-by-case basis.

As of September 30, 2018, commercial real estate loans totaled $6.31 billion, or 58.3% of loans receivable, as compared to $6.38 billion, or 61.8% of loans receivable, as of December 31, 2017. Commercial real estate loans originated in our Arkansas, Florida, Alabama and Centennial CFG markets were $2.02 billion, $3.21 billion, $120.2 million and $961.2 million at September 30, 2018, respectively.

Residential Real Estate Loans. We originate one to four family, residential mortgage loans generally secured by property located in our primary market areas. Approximately 29.3% and 59.6% of our residential mortgage loans consist of owner occupied 1-4 family properties and non-owner occupied 1-4 family properties (rental), respectively, as of September 30, 2018. Residential real estate loans generally have a loan-to-value ratio of up to 90%. These loans are underwritten by giving consideration to the borrower’s ability to pay, stability of employment or source of income, debt-to-income ratio, credit history and loan-to-value ratio.

As of September 30, 2018, residential real estate loans totaled $2.59 billion, or 23.9%, of loans receivable, compared to $2.41 billion, or 23.3% of loans receivable, as of December 31, 2017. Residential real estate loans originated in our Arkansas, Florida, Alabama and Centennial CFG markets were $951.0 million, $1.37 billion, $67.8 million and $198.1 million at September 30, 2018, respectively.

Consumer Loans. Our consumer loans are composed of secured and unsecured loans originated by our bank, the primary portion of which consists of loans to finance USCG registered high-end sail and power boats as a result of our acquisition of SPF on June 30, 2018. The performance of consumer loans will be affected by the local and regional economies as well as the rates of personal bankruptcies, job loss, divorce and other individual-specific characteristics.

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As of September 30, 2018, consumer loans totaled $428.2 million, or 4.0% of loans receivable, compared to $46.2 million, or 0.4% of loans receivable, as of December 31, 2017. The significant increase is due to our acquisition of SPF on June 30, 2018. Consumer loans originated in our Arkansas, Florida, Alabama, SPF and Centennial CFG markets were $26.8 million, $24.8 million, $943,000, $375.7 million and zero at September 30, 2018, respectively.

Commercial and Industrial Loans. Commercial and industrial loans are made for a variety of business purposes, including working capital, inventory, equipment and capital expansion. The terms for commercial loans are generally one to seven years. Commercial loan applications must be supported by current financial information on the borrower and, where appropriate, by adequate collateral. Commercial loans are generally underwritten by addressing cash flow (debt service coverage), primary and secondary sources of repayment, the financial strength of any guarantor, the borrower’s liquidity and leverage, management experience, ownership structure, economic conditions and industry specific trends and collateral. The loan to value ratio depends on the type of collateral. Generally speaking, accounts receivable are financed at between 50% and 80% of accounts receivable less than 60 days past due. Inventory financing will range between 50% and 60% (with no work in process) depending on the borrower and nature of inventory. We require a first lien position for those loans.

As of September 30, 2018, commercial and industrial loans totaled $1.30 billion, or 12.0% of loans receivable, which is comparable to $1.30 billion, or 12.6% of loans receivable, as of December 31, 2017. Commercial and industrial loans originated in our Arkansas, Florida, Alabama, SPF and Centennial CFG markets were $495.9 million, $456.0 million, $34.1 million, $6.8 million and $311.0 million at September 30, 2018, respectively.

Non-Performing Assets

We classify our problem loans into three categories: past due loans, special mention loans and classified loans (accruing and non-accruing).

When management determines that a loan is no longer performing, and that collection of interest appears doubtful, the loan is placed on non-accrual status. Loans that are 90 days past due are placed on non-accrual status unless they are adequately secured and there is reasonable assurance of full collection of both principal and interest. Our management closely monitors all loans that are contractually 90 days past due, treated as “special mention” or otherwise classified or on non-accrual status.

We have purchased loans with deteriorated credit quality in our September 30, 2018 financial statements as a result of our historical acquisitions. The credit metrics most heavily impacted by our acquisitions of acquired loans with deteriorated credit quality were the following credit quality indicators listed in Table 9 below:

• Allowance for loan losses to non-performing loans;

• Non-performing loans to total loans; and

• Non-performing assets to total assets.

On the date of acquisition, acquired credit-impaired loans are initially recognized at fair value, which incorporates the present value of amounts estimated to be collectible. As a result of the application of this accounting methodology, certain credit-related ratios, including those referenced above, may not necessarily be directly comparable with periods prior to the acquisition of the credit-impaired loans and non-performing assets, or comparable with other institutions.

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Table 9 sets forth information with respect to our non-performing assets as of September 30, 2018 and December 31, 2017. As of these dates, all non-performing restructured loans are included in non-accrual loans.

Table 9: Non-performing Assets

	As of September 30, 2018			As of December 31, 2017
	(Dollars in thousands)
Non-accrual loans	$	36,198		$	34,032
Loans past due 90 days or more (principal or interest payments)		20,267			10,665
Total non-performing loans		56,465			44,697
Other non-performing assets
Foreclosed assets held for sale, net		13,507			18,867
Other non-performing assets		405			3
Total other non-performing assets		13,912			18,870
Total non-performing assets		70,377		$	63,567
Allowance for loan losses to non-performing loans		195.15	%		246.70	%
Non-performing loans to total loans		0.52			0.43
Non-performing assets to total assets		0.47			0.44

Our non-performing loans are comprised of non-accrual loans and accruing loans that are contractually past due 90 days. Our bank subsidiary recognizes income principally on the accrual basis of accounting. When loans are classified as non-accrual, the accrued interest is charged off and no further interest is accrued, unless the credit characteristics of the loan improve. If a loan is determined by management to be uncollectible, the portion of the loan determined to be uncollectible is then charged to the allowance for loan losses.

Total non-performing loans were $56.5 million as of September 30, 2018, compared to $44.7 million as of December 31, 2017, an increase of $11.8 million. The $11.8 million increase in non-performing loans is the result of a $11.8 million increase in non-performing loans in our Florida market and a $1.8 increase in non-performing loans in our SPF market, which was partially offset by a $1.0 million decrease in non-performing loans in our Arkansas market and an $796,000 decrease in non-performing loans in our Alabama market. The majority of the increase in non-performing loans in our Florida market was the result of seven loans with the largest loan having a balance of $5.6 million as of September 30, 2018. Non-performing loans at September 30, 2018 are $14.5 million, $40.0 million, $133,000, $1.8 million and zero in the Arkansas, Florida, Alabama, SPF and Centennial CFG markets, respectively.

Although the current state of the real estate market has improved, uncertainties still present in the economy may continue to increase our level of non-performing loans. While we believe our allowance for loan losses is adequate and our purchased loans are adequately discounted at September 30, 2018, as additional facts become known about relevant internal and external factors that affect loan collectability and our assumptions, it may result in us making additions to the provision for loan losses during 2018. Our current or historical provision levels should not be relied upon as a predictor or indicator of future levels going forward.

Troubled debt restructurings (“TDRs”) generally occur when a borrower is experiencing, or is expected to experience, financial difficulties in the near term. As a result, we will work with the borrower to prevent further difficulties, and ultimately to improve the likelihood of recovery on the loan. In those circumstances it may be beneficial to restructure the terms of a loan and work with the borrower for the benefit of both parties, versus forcing the property into foreclosure and having to dispose of it in an unfavorable and depressed real estate market. When we have modified the terms of a loan, we usually either reduce the monthly payment and/or interest rate for generally about three to twelve months. For our TDRs that accrue interest at the time the loan is restructured, it would be a rare exception to have charged-off any portion of the loan. Only non-performing restructured loans are included in our non-performing loans. As of September 30, 2018, we had $17.1 million of restructured loans that are in compliance with the modified terms and are not reported as past due or non-accrual in Table 9. Our Florida market contains $11.8 million and our Arkansas market contains $5.3 million of these restructured loans. Our Alabama, SPF and Centennial CFG markets do not contain any restructured loans as of September 30, 2018.

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A loan modification that might not otherwise be considered may be granted resulting in classification as a TDR. These loans can involve loans remaining on non-accrual, moving to non-accrual, or continuing on an accrual status, depending on the individual facts and circumstances of the borrower. Generally, a non-accrual loan that is restructured remains on non-accrual for a period of six months to demonstrate that the borrower can meet the restructured terms. However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can pay under the new terms and may result in the loan being returned to an accrual status after a shorter performance period. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan will remain in a non-accrual status.

The majority of the Bank’s loan modifications relates to commercial lending and involves reducing the interest rate, changing from a principal and interest payment to interest-only, a lengthening of the amortization period, or a combination of some or all of the three. In addition, it is common for the Bank to seek additional collateral or guarantor support when modifying a loan. At September 30, 2018, the amount of TDRs was $18.9 million, a decrease of 10.8% from $21.2 million at December 31, 2017. As of September 30, 2018 and December 31, 2017, 90.3% and 89.7%, respectively, of all restructured loans were performing to the terms of the restructure.

Total foreclosed assets held for sale were $13.5 million as of September 30, 2018, compared to $18.9 million as of December 31, 2017, a decrease of $5.4 million. The foreclosed assets held for sale as of September 30, 2018 are comprised of $6.6 million of assets located in Arkansas, $6.3 million of assets located in Florida, $641,000 located in Alabama and zero from SPF and Centennial CFG.

During the first nine months of 2018, we had two foreclosed properties with a carrying value greater than $1.0 million. The first property was a development property in Florida acquired from BOC with a carrying value of $2.1 million at September 30, 2018. The second property was a nonfarm non-residential property in Florida acquired from SGB with a carrying value of $1.9 million at September 30, 2018. The Company does not currently anticipate any additional losses on these properties. As of September 30, 2018, no other foreclosed assets held for sale have a carrying value greater than $1.0 million.

Table 10 shows the summary of foreclosed assets held for sale as of September 30, 2018 and December 31, 2017.

Table 10: Foreclosed Assets Held For Sale

	As of September 30, 2018		As of December 31, 2017
Real estate:		(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	5,858	$	9,766
Construction/land development		3,539		5,920
Agricultural		155		—
Residential real estate loans
Residential 1-4 family		3,885		2,654
Multifamily residential		70		527
Total foreclosed assets held for sale	$	13,507	$	18,867

A loan is considered impaired when it is probable that we will not receive all amounts due according to the contracted terms of the loans. Impaired loans include non-performing loans (loans past due 90 days or more and non-accrual loans), criticized and/or classified loans with a specific allocation, loans categorized as TDRs and certain other loans identified by management that are still performing (loans included in multiple categories are only included once). As of September 30, 2018, impaired loans were $79.0 million compared to $75.6 million as of December 31, 2017, for an increase of $3.4 million. As of September 30, 2018, our Arkansas, Florida, Alabama, SPF and Centennial CFG markets accounted for approximately $25.3 million, $51.8 million, $133,000, $1.8 million and zero of the impaired loans, respectively.

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We evaluated loans purchased in conjunction with our historical acquisitions for impairment in accordance with the provisions of FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. Purchased loans are considered impaired if there is evidence of credit deterioration since origination and if it is probable that not all contractually required payments will be collected. Purchased credit impaired loans are not classified as non-performing assets for the recognition of interest income as the pools are considered to be performing. However, for the purpose of calculating the non-performing credit metrics, we have included all of the loans which are contractually 90 days past due and still accruing, including those in performing pools. Therefore, interest income, through accretion of the difference between the carrying amount of the loans and the expected cash flows, is being recognized on all purchased impaired loans.

All purchased loans with deteriorated credit quality are considered impaired loans at the date of acquisition. Since the loans are accounted for on a pooled basis under ASC 310-30, individual loans are not classified as impaired. Since the loans are accounted for on a pooled basis under ASC 310-30, individual loans subsequently restructured within the pools are not classified as TDRs in accordance with ASC 310-30-40. For purchased loans with deteriorated credit quality that were deemed TDRs prior to our acquisition of them, these loans are also not considered TDRs as they are accounted for under ASC 310-30.

As of September 30, 2018 and December 31, 2017, there was not a material amount of purchased loans with deteriorated credit quality on non-accrual status as a result of most of the loans being accounted for on the pool basis and the pools are considered to be performing for the accruing of interest income. Also, acquired loans contractually past due 90 days or more are accruing interest because the pools are considered to be performing for the purpose of accruing interest income.

Past Due and Non-Accrual Loans

Table 11 shows the summary of non-accrual loans as of September 30, 2018 and December 31, 2017:

Table 11: Total Non-Accrual Loans

	As of September 30, 2018		As of December 31, 2017
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	11,223	$	9,600
Construction/land development		4,966		5,011
Agricultural		30		19
Residential real estate loans
Residential 1-4 family		14,312		14,437
Multifamily residential		983		153
Total real estate		31,514		29,220
Consumer		208		145
Commercial and industrial		4,443		4,584
Agricultural		32		54
Other		1		29
Total non-accrual loans	$	36,198	$	34,032

If non-accrual loans had been accruing interest in accordance with the original terms of their respective agreements, interest income of approximately $560,000 and $479,000, respectively, would have been recorded for the three-month periods ended September 30, 2018 and 2017. If non-accrual loans had been accruing interest in accordance with the original terms of their respective agreements, interest income of approximately $1.6 million and $1.7 million would have been recorded for each of the nine-month periods ended September 30, 2018 and 2017, respectively. The interest income recognized on non-accrual loans for the three and nine-month periods ended September 30, 2018 and 2017 was considered immaterial.

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Table 12 shows the summary of accruing past due loans 90 days or more as of September 30, 2018 and December 31, 2017:

Table 12: Loans Accruing Past Due 90 Days or More

	As of September 30, 2018		As of December 31, 2017
Real estate:		(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	11,405	$	3,119
Construction/land development		3,551		3,247
Agricultural		—		—
Residential real estate loans
Residential 1-4 family		1,509		2,175
Multifamily residential		—		100
Total real estate		16,465		8,641
Consumer		1,796		26
Commercial and industrial		2,006		1,944
Agricultural and other		—		54
Total loans accruing past due 90 days or more	$	20,267	$	10,665

Our total loans accruing past due 90 days or more and non-accrual loans to total loans was 0.52% and 0.43% as of September 30, 2018 and December 31, 2017, respectively.

Allowance for Loan Losses

Overview. The allowance for loan losses is maintained at a level which our management believes is adequate to absorb all probable losses on loans in the loan portfolio. The amount of the allowance is affected by: (i) loan charge-offs, which decrease the allowance; (ii) recoveries on loans previously charged off, which increase the allowance; and (iii) the provision of possible loan losses charged to income, which increases the allowance. In determining the provision for possible loan losses, it is necessary for our management to monitor fluctuations in the allowance resulting from actual charge-offs and recoveries and to periodically review the size and composition of the loan portfolio in light of current and anticipated economic conditions. If actual losses exceed the amount of allowance for loan losses, our earnings could be adversely affected.

As we evaluate the allowance for loan losses, we categorize it as follows: (i) specific allocations; (ii) allocations for criticized and classified assets not individually evaluated for impairment; (iii) general allocations; and (iv) miscellaneous allocations.

Specific Allocations. As a general rule, if a specific allocation is warranted, it is the result of an analysis of a previously classified credit or relationship. Typically, when it becomes evident through the payment history or a financial statement review that a loan or relationship is no longer supported by the cash flows of the asset and/or borrower and has become collateral dependent, we will use appraisals or other collateral analysis to determine if collateral impairment has occurred. The amount or likelihood of loss on this credit may not yet be evident, so a charge-off would not be prudent. However, if the analysis indicates that an impairment has occurred, then a specific allocation will be determined for this loan. If our existing appraisal is outdated or the collateral has been subject to significant market changes, we will obtain a new appraisal for this impairment analysis. The majority of our impaired loans are collateral dependent at the present time, so third-party appraisals were used to determine the necessary impairment for these loans. Cash flow available to service debt was used for the other impaired loans. This analysis is performed each quarter in connection with the preparation of the analysis of the adequacy of the allowance for loan losses, and if necessary, adjustments are made to the specific allocation provided for a particular loan.

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For collateral dependent loans, we do not consider an appraisal outdated simply due to the passage of time. However, if an appraisal is older than 13 months and if market or other conditions have deteriorated and we believe that the current market value of the property is not within approximately 20% of the appraised value, we will consider the appraisal outdated and order either a new appraisal or an internal validation report for the impairment analysis. The recognition of any provision or related charge-off on a collateral dependent loan is either through annual credit analysis or, many times, when the relationship becomes delinquent. If the borrower is not current, we will update our credit and cash flow analysis to determine the borrower’s repayment ability. If we determine this ability does not exist and it appears that the collection of the entire principal and interest is not likely, then the loan could be placed on non-accrual status. In any case, loans are classified as non-accrual no later than 105 days past due. If the loan requires a quarterly impairment analysis, this analysis is completed in conjunction with the completion of the analysis of the adequacy of the allowance for loan losses. Any exposure identified through the impairment analysis is shown as a specific reserve on the individual impairment. If it is determined that a new appraisal or internal validation report is required, it is ordered and will be taken into consideration during completion of the next impairment analysis.

In estimating the net realizable value of the collateral, management may deem it appropriate to discount the appraisal based on the applicable circumstances. In such case, the amount charged off may result in loan principal outstanding being below fair value as presented in the appraisal.

Between the receipt of the original appraisal and the updated appraisal, we monitor the loan’s repayment history. If the loan is $1.0 million or greater or the total loan relationship is $2.0 million or greater, our policy requires an annual credit review. Our policy requires financial statements from the borrowers and guarantors at least annually. In addition, we calculate the global repayment ability of the borrower/guarantors at least annually.

As a general rule, when it becomes evident that the full principal and accrued interest of a loan may not be collected, or by law at 105 days past due, we will reflect that loan as non-performing. It will remain non-performing until it performs in a manner that it is reasonable to expect that we will collect the full principal and accrued interest.

When the amount or likelihood of a loss on a loan has been determined, a charge-off should be taken in the period it is determined. If a partial charge-off occurs, the quarterly impairment analysis will determine if the loan is still impaired, and thus continues to require a specific allocation.

Allocations for Criticized and Classified Assets Not Individually Evaluated for Impairment. We establish allocations for loans rated “special mention” through “loss” in accordance with the guidelines established by the regulatory agencies. A percentage rate is applied to each loan category to determine the level of dollar allocation.

General Allocations. We establish general allocations for each major loan category. This section also includes allocations to loans, which are collectively evaluated for loss such as residential real estate, commercial real estate, consumer loans and commercial and industrial loans that fall below $2.0 million. The allocations in this section are based on a historical review of loan loss experience and past due accounts. We give consideration to trends, changes in loan mix, delinquencies, prior losses, and other related information.

Miscellaneous Allocations. Allowance allocations other than specific, classified, and general are included in our miscellaneous section.

Loans Collectively Evaluated for Impairment. Loans receivable collectively evaluated for impairment increased by approximately $615.9 million from $9.94 billion at December 31, 2017 to $10.56 billion at September 30, 2018. The percentage of the allowance for loan losses allocated to loans receivable collectively evaluated for impairment to the total loans collectively evaluated for impairment was 1.02% and 1.06% at September 30, 2018 and December 31, 2017, respectively. This decrease is primarily the result of acquiring the SPF loans, which were not individually evaluated for impairment as a result of purchase accounting rules requiring the acquired loans to be marked to fair value at acquisition.

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Hurricane Irma. The Company’s allowance for loan losses as of September 30, 2018 and December 31, 2017 was significantly impacted by Hurricane Irma which made initial landfall in the Florida Keys and a second landfall just south of Naples, Florida, as a Category 4 hurricane on September 10, 2017. Based on initial assessments of the potential credit impact and damage to the approximately $2.41 billion in legacy loans receivable we have in the disaster area, the Company established a $32.9 million storm-related provision for loan losses as of December 31, 2017. As of September 30, 2018, charge-offs of $2.5 million have been taken against the storm-related provision for loan losses. Due to the uncertainty that still exists as to the timing of the full recovery of the disaster area, we believe that the storm-related provision recorded as of September 30, 2018 is appropriate.

Charge-offs and Recoveries. Total charge-offs decreased to $2.5 million for the three months ended September 30, 2018, compared to $4.4 million for the same period in 2017. Total charge-offs decreased to $7.2 million for the nine months ended September 30, 2018, compared to $10.5 million for the same period in 2017. Total recoveries increased to $1.2 million for the three months ended September 30, 2018, compared to $883,000 for the same period in 2017. Total recoveries remained flat at $2.8 million for the nine months ended September 30, 2018 and 2017. For the three months ended September 30, 2018, net charge-offs were $849,000 for Arkansas, $470,000 for Florida, $6,000 for Alabama and zero for SPF and Centennial CFG, equaling a net charge-off position of $1.3 million. For the nine months ended September 30, 2018, net charge-offs were $2.8 million for Arkansas, $1.5 million for Florida, $123,000 for Alabama and zero for SPF and Centennial CFG, equaling a net charge-off position of $4.4 million. While the 2018 charge-offs and recoveries consisted of many relationships, there were no individual relationships consisting of charge-offs greater than $1.0 million.

We have not charged off an amount less than what was determined to be the fair value of the collateral as presented in the appraisal, less estimated costs to sell (for collateral dependent loans), for any period presented. Loans partially charged-off are placed on non-accrual status until it is proven that the borrower’s repayment ability with respect to the remaining principal balance can be reasonably assured. This is usually established over a period of 6-12 months of timely payment performance.

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Table 13 shows the allowance for loan losses, charge-offs and recoveries as of and for the three and nine-month periods ended September 30, 2018 and 2017.

Table 13: Analysis of Allowance for Loan Losses

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(Dollars in thousands)
Balance, beginning of period	$	111,516		$	80,138		$	110,266		$	80,002
Loans charged off
Real estate:
Commercial real estate loans:
Non-farm/non-residential		144			796			981			2,324
Construction/land development		337			182			399			508
Agricultural		—			—			—			127
Residential real estate loans:
Residential 1-4 family		608			309			2,339			2,512
Multifamily residential		—			—			—			85
Total real estate		1,089			1,287			3,719			5,556
Consumer		15			14			73			158
Commercial and industrial		744			2,280			1,816			3,059
Agricultural		—			—			—			—
Other		653			843			1,565			1,762
Total loans charged off		2,501			4,424			7,173			10,535
Recoveries of loans previously charged off
Real estate:
Commercial real estate loans:
Non-farm/non-residential		195			278			383			988
Construction/land development		90			85			209			312
Agricultural		—			—			—			—
Residential real estate loans:
Residential 1-4 family		307			188			801			430
Multifamily residential		2			38			43			50
Total real estate		594			589			1,436			1,780
Consumer		108			25			168			91
Commercial and industrial		251			140			568			392
Agricultural		—			—			—			—
Other		223			129			604			566
Total recoveries		1,176			883			2,776			2,829
Net loans charged off (recovered)		1,325			3,541			4,397			7,706
Provision for loan losses		—			35,023			4,322			39,324
Balance, September 30	$	110,191		$	111,620		$	110,191		$	111,620
Net charge-offs (recoveries) to average loans receivable		0.05	%		0.18	%		0.06	%		0.13	%
Allowance for loan losses to total loans		1.02			1.09			1.02			1.09
Allowance for loan losses to net charge-offs (recoveries)		2,096			795			1,874			1,083

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Allocated Allowance for Loan Losses. We use a risk rating and specific reserve methodology in the calculation and allocation of our allowance for loan losses. While the allowance is allocated to various loan categories in assessing and evaluating the level of the allowance, the allowance is available to cover charge-offs incurred in all loan categories. Because a portion of our portfolio has not matured to the degree necessary to obtain reliable loss data from which to calculate estimated future losses, the unallocated portion of the allowance is an integral component of the total allowance. Although unassigned to a particular credit relationship or product segment, this portion of the allowance is vital to safeguard against the imprecision inherent in estimating credit losses.

The changes for the period ended September 30, 2018 and the year ended December 31, 2017 in the allocation of the allowance for loan losses for the individual types of loans are primarily associated with changes in the ASC 310 calculations, both individual and aggregate, and changes in the ASC 450 calculations. These calculations are affected by changes in individual loan impairments, changes in asset quality, net charge-offs during the period and normal changes in the outstanding loan portfolio, as well any changes to the general allocation factors due to changes within the actual characteristics of the loan portfolio.

Table 14 presents the allocation of allowance for loan losses as of September 30, 2018 and December 31, 2017.

Table 14: Allocation of Allowance for Loan Losses

	As of September 30, 2018					As of December 31, 2017
	Allowance Amount		% of loans (1)			Allowance Amount		% of loans (1)
	(Dollars in thousands)
Real estate:
Commercial real estate loans:
Non-farm/non-residential	$	44,350		43.3	%	$	42,893		44.5	%
Construction/land development		19,014		14.3			20,343		16.4
Agricultural		1,003		0.7			1,046		0.8
Residential real estate loans:
Residential 1-4 family		19,606		18.3			21,370		19.1
Multifamily residential		4,493		5.6			3,136		4.3
Total real estate		88,466		82.2			88,788		85.1
Consumer		632		4.0			462		0.4
Commercial and industrial		13,777		12.0			15,292		12.6
Agricultural		2,854		0.5			2,692		0.5
Other		174		1.3			180		1.4
Unallocated		4,288		—			2,852		—
Total allowance for loan losses	$	110,191		100.0	%	$	110,266		100.0	%

(1) Percentage of loans in each category to total loans receivable.

Investment Securities

Our securities portfolio is the second largest component of earning assets and provides a significant source of revenue. Securities within the portfolio are classified as held-to-maturity, available-for-sale, or trading based on the intent and objective of the investment and the ability to hold to maturity. Fair values of securities are based on quoted market prices where available. If quoted market prices are not available, estimated fair values are based on quoted market prices of comparable securities. The estimated effective duration of our securities portfolio was 3.3 years as of September 30, 2018.

As of September 30, 2018 and December 31, 2017, we had $199.3 million and $224.8 million of held-to-maturity securities, respectively. Of the $199.3 million of held-to-maturity securities as of September 30, 2018, $3.6 million were invested in U.S. Government-sponsored enterprises, $60.4 million were invested in mortgage-backed securities and $135.3 million were invested in state and political subdivisions. Of the $224.8 million of held-to-maturity securities as of December 31, 2017, $5.8 million were invested in U.S. Government-sponsored enterprises, $73.6 million were invested in mortgage-backed securities and $145.4 million were invested in state and political subdivisions.

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Securities available-for-sale are reported at fair value with unrealized holding gains and losses reported as a separate component of stockholders’ equity as other comprehensive income. Securities that are held as available-for-sale are used as a part of our asset/liability management strategy. Securities that may be sold in response to interest rate changes, changes in prepayment risk, the need to increase regulatory capital, and other similar factors are classified as available-for-sale. Available-for-sale securities were $1.74 billion and $1.66 billion as of September 30, 2018 and December 31, 2017, respectively.

As of September 30, 2018, $981.9 million, or 56.3%, of our available-for-sale securities were invested in mortgage-backed securities, compared to $971.4 million, or 58.4%, of our available-for-sale securities as of December 31, 2017. To reduce our income tax burden, $306.2 million, or 17.6%, of our available-for-sale securities portfolio as of September 30, 2018, was primarily invested in tax-exempt obligations of state and political subdivisions, compared to $250.3 million, or 15.0%, of our available-for-sale securities as of December 31, 2017. Also, we had approximately $419.9 million, or 24.1%, invested in obligations of U.S. Government-sponsored enterprises as of September 30, 2018, compared to $406.3 million, or 24.4%, of our available-for-sale securities as of December 31, 2017.

Certain investment securities are valued at less than their historical cost. These declines are primarily the result of the rate for these investments yielding less than current market rates. Based on evaluation of available evidence, we believe the declines in fair value for these securities are temporary. It is our intent to hold these securities to recovery. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced, and the resulting loss recognized in net income in the period the other than temporary impairment is identified.

See Note 3 “Investment Securities” in the Condensed Notes to Consolidated Financial Statements for the carrying value and fair value of investment securities.

Deposits

Our deposits averaged $10.58 billion and $10.48 billion for the three and nine-month periods ended September 30, 2018. Total deposits were $10.62 billion as of September 30, 2018, and $10.39 billion as of December 31, 2017. Deposits are our primary source of funds. We offer a variety of products designed to attract and retain deposit customers. Those products consist of checking accounts, regular savings deposits, NOW accounts, money market accounts and certificates of deposit. Deposits are gathered from individuals, partnerships and corporations in our market areas. In addition, we obtain deposits from state and local entities and, to a lesser extent, U.S. Government and other depository institutions.

Our policy also permits the acceptance of brokered deposits. From time to time, when appropriate in order to fund strong loan demand, we accept brokered time deposits, generally in denominations of less than $250,000, from a regional brokerage firm, and other national brokerage networks. We also participate in the One-Way Buy Insured Cash Sweep (“ICS”) service and similar services, which provide for one-way buy transactions among banks for the purpose of purchasing cost-effective floating-rate funding without collateralization or stock purchase requirements. Management believes these sources represent a reliable and cost efficient alternative funding source for the Company. However, to the extent that our condition or reputation deteriorates, or to the extent that there are significant changes in market interest rates which we do not elect to match, we may experience an outflow of brokered deposits. In that event we would be required to obtain alternate sources for funding.

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Table 15 reflects the classification of the brokered deposits as of September 30, 2018 and December 31, 2017.

Table 15: Brokered Deposits

	September 30, 2018		December 31, 2017
	(In thousands)
Time Deposits	$	84,943	$	60,022
CDARS		109		53,588
Insured Cash Sweep and Other Transaction Accounts		506,540		915,060
Total Brokered Deposits	$	591,592	$	1,028,670

The Economic Growth, Regulatory Relief and Consumer Protection Act enacted in May 2018, provides that most reciprocal deposits are no longer treated as brokered deposits. As a result of this new law, our brokered deposits as of September 30, 2018 were approximately $421.3 million lower than they would otherwise have been.

The interest rates paid are competitively priced for each particular deposit product and structured to meet our funding requirements. We will continue to manage interest expense through deposit pricing. We may allow higher rate deposits to run off during periods of limited loan demand. We believe that additional funds can be attracted, and deposit growth can be realized through deposit pricing if we experience increased loan demand or other liquidity needs.

The Federal Reserve Board sets various benchmark rates, including the Federal Funds rate, and thereby influences the general market rates of interest, including the deposit and loan rates offered by financial institutions. The Federal Funds target rate, which is the cost to banks of immediately available overnight funds, has increased 75 basis points since December 31, 2017, and is currently at 2.00% to 2.25%.

Table 16 reflects the classification of the average deposits and the average rate paid on each deposit category, which are in excess of 10 percent of average total deposits, for the three and nine-month periods ended September 30, 2018 and 2017.

Table 16: Average Deposit Balances and Rates

	Three Months Ended September 30,
	2018					2017
	Average Amount		Average Rate Paid			Average Amount		Average Rate Paid
	(Dollars in thousands)
Non-interest-bearing transaction accounts	$	2,512,690		—	%	$	1,924,933		—	%
Interest-bearing transaction accounts		5,758,161		1.05			3,973,270		0.56
Savings deposits		648,550		0.19			539,515		0.10
Time deposits:
$100,000 or more		1,183,503		1.63			989,697		0.89
Other time deposits		477,626		0.80			454,965		0.48
Total	$	10,580,530		0.80	%	$	7,882,380		0.43	%

	Nine Months Ended September 30,
	2018					2017
	Average Amount		Average Rate Paid			Average Amount		Average Rate Paid
	(Dollars in thousands)
Non-interest-bearing transaction accounts	$	2,464,032		—	%	$	1,847,843		—	%
Interest-bearing transaction accounts		5,767,190		0.91			3,792,388		0.46
Savings deposits		655,299		0.19			523,644		0.09
Time deposits:
$100,000 or more		1,101,628		1.40			949,493		0.82
Other time deposits		494,357		0.69			465,890		0.44
Total	$	10,482,506		0.69	%	$	7,579,258		0.37	%

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Securities Sold Under Agreements to Repurchase

We enter into short-term purchases of securities under agreements to resell (resale agreements) and sales of securities under agreements to repurchase (repurchase agreements) of substantially identical securities. The amounts advanced under resale agreements and the amounts borrowed under repurchase agreements are carried on the balance sheet at the amount advanced. Interest incurred on repurchase agreements is reported as interest expense. Securities sold under agreements to repurchase decreased $5.6 million, or 3.8%, from $147.8 million as of December 31, 2017 to $142.1 million as of September 30, 2018.

FHLB Borrowed Funds

The Company’s FHLB borrowed funds, which are secured by our loan portfolio, were $1.36 billion and $1.30 billion at September 30, 2018 and December 31, 2017, respectively. At September 30, 2018, $750.0 million and $609.9 million of the outstanding balance were issued as short-term and long-term advances, respectively. At December 31, 2017, $525.0 million and $774.2 million of the outstanding balance were issued as short-term and long-term advances, respectively. The FHLB advances mature from the current year to 2033 with fixed interest rates ranging from 1.00% to 4.80% and are secured by loans and investments securities. Maturities of borrowings as of September 30, 2018 include: 2018 – $770.0 million; 2019 – $143.0 million; 2020 – $146.4 million; 2021 – zero; 2022 – zero; 2023 – zero; after 2023 – $300.4 million. Expected maturities will differ from contractual maturities because FHLB may have the right to call or HBI the right to prepay certain obligations. $300 million of the borrowings maturing after 2023 are callable by the FHLB within one year.

Subordinated Debentures

Subordinated debentures, which consist of subordinated debt securities and guaranteed payments on trust preferred securities, were $368.6 million as of September 30, 2018, and $367.8 million as of September 30, 2017.

The trust preferred securities are tax-advantaged issues that qualify for Tier 1 capital treatment subject to certain limitations. Distributions on these securities are included in interest expense. Each of the trusts is a statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in our subordinated debentures, the sole asset of each trust. The trust preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the subordinated debentures held by the trust. We wholly own the common securities of each trust. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon our making payment on the related subordinated debentures. Our obligations under the subordinated securities and other relevant trust agreements, in the aggregate, constitute a full and unconditional guarantee by us of each respective trust’s obligations under the trust securities issued by each respective trust.

During 2017, we acquired $12.5 million in trust preferred securities with a fair value of $9.8 million from the Stonegate acquisition. The difference between the fair value purchased of $9.8 million and the $12.5 million face amount will be amortized into interest expense over the remaining life of the debentures. The associated subordinated debentures are redeemable, in whole or in part, prior to maturity at our option on a quarterly basis when interest is due and payable and in whole at any time within 90 days following the occurrence and continuation of certain changes in the tax treatment or capital treatment of the debentures.

On April 3, 2017, the Company completed an underwritten public offering of $300.0 million in aggregate principal amount of its 5.625% Fixed-to-Floating Rate Subordinated Notes due 2027 (the “Notes”). The Notes were issued at 99.997% of par, resulting in net proceeds, after underwriting discounts and issuance costs, of approximately $297.0 million. The Notes are unsecured, subordinated debt obligations of the Company and will mature on April 15, 2027. The Notes qualify as Tier 2 capital for regulatory purposes.

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Stockholders’ Equity

Stockholders’ equity was $2.34 billion at September 30, 2018 compared to $2.20 billion at December 31, 2017. The increase in stockholders’ equity is primarily associated with the $171.2 million increase in retained earnings for the first nine months of 2018 combined with the issuance of 1,250,000 shares of common stock with a value of $28.2 million as part of the acquisition of SPF, as well as 843,500 shares of restricted stock granted under HOMB $2.00. This was partially offset by $27.3 million of other comprehensive losses and the repurchase of $43.2 million of our common stock. The annualized improvement in stockholders’ equity for the first nine months of 2018, excluding the $28.2 million of common stock issued for the acquisition of SPF, was 6.6%. As of September 30, 2018 and December 31, 2017, our equity to asset ratio was 15.70% and 15.25%, respectively. Book value per share was $13.44 as of September 30, 2018, compared to $12.70 as of December 31, 2017, an 7.79% annualized increase.

Common Stock Cash Dividends. We declared cash dividends on our common stock of $0.12 per share and $0.11 per share for the three-month periods ended September 30, 2018 and 2017, respectively. The common stock dividend payout ratio for the three months ended September 30, 2018 and 2017 was 26.1% and 106.03%, respectively. The common stock dividend payout ratio for the nine months ended September 30, 2018 and 2017 was 25.8% and 36.93%, respectively. For the fourth quarter of 2018, the Board of Directors declared a regular $0.12 per share quarterly cash dividend payable December 5, 2018, to shareholders of record November 14, 2018.

Stock Repurchase Program. On February 21, 2018, the Company’s Board of Directors authorized the repurchase of up to an additional 5,000,000 shares of its common stock under the previously approved stock repurchase program, which brought the total amount of authorized shares to repurchase to approximately 14,752,000 shares. During the first nine months of 2018, the Company utilized a portion of this stock repurchase program. We repurchased a total of 1,214,080 shares with a weighted-average stock price of $23.18 per share during the third quarter of 2018. Shares repurchased under the program as of September 30, 2018 total 6,388,264 shares. The remaining balance available for repurchase was 8,363,736 shares at September 30, 2018.

Liquidity and Capital Adequacy Requirements

Risk-Based Capital. We, as well as our bank subsidiary, are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and other discretionary actions by regulators that, if enforced, could have a direct material effect on our financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. Our capital amounts and classifications are also subject to qualitative judgments by the regulators as to components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require us to maintain minimum amounts and ratios (set forth in the table below) of total and Tier 1 capital to risk-weighted assets, and of Tier 1 capital to average assets. Management believes that, as of September 30, 2018 and December 31, 2017, we met all regulatory capital adequacy requirements to which we were subject.

On April 3, 2017 the Company completed an underwritten public offering of $300 million in aggregate principal amount of its 5.625% Fixed-to-Floating Rate Subordinated Notes due 2027 (the “Notes”). The Notes were issued at 99.997% of par, resulting in net proceeds, after underwriting discounts, of approximately $297.2 million. The Notes are unsecured, subordinated debt obligations of the Company and will mature on April 15, 2027. The Notes qualify as Tier 2 capital for regulatory purposes.

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Table 17 presents our risk-based capital ratios on a consolidated basis as of September 30, 2018 and December 31, 2017.

Table 17: Risk-Based Capital

	As of September 30, 2018			As of December 31, 2017
	(Dollars in thousands)
Tier 1 capital
Stockholders’ equity	$	2,341,026		$	2,204,291
Goodwill and core deposit intangibles, net		(1,002,434	)		(966,890	)
Unrealized (gain) loss on available-for-sale securities		30,721			3,421
Deferred tax assets		—			—
Total common equity Tier 1 capital		1,369,313			1,240,822
Qualifying trust preferred securities		70,805			70,698
Total Tier 1 capital		1,440,118			1,311,520
Tier 2 capital
Qualifying subordinated notes		297,791			297,332
Qualifying allowance for loan losses		110,191			110,266
Total Tier 2 capital		407,982			407,598
Total risk-based capital	$	1,848,100		$	1,719,118
Average total assets for leverage ratio	$	13,878,497		$	13,147,046
Risk weighted assets	$	11,752,120		$	11,424,963
Ratios at end of period
Common equity Tier 1 capital		11.65	%		10.86	%
Leverage ratio		10.38			9.98
Tier 1 risk-based capital		12.25			11.48
Total risk-based capital		15.73			15.05
Minimum guidelines – Basel III phase-in schedule
Common equity Tier 1 capital		6.38	%		5.75	%
Leverage ratio		4.00			4.00
Tier 1 risk-based capital		7.88			7.25
Total risk-based capital		9.88			9.25
Minimum guidelines – Basel III fully phased-in
Common equity Tier 1 capital		7.00	%		7.00	%
Leverage ratio		4.00			4.00
Tier 1 risk-based capital		8.50			8.50
Total risk-based capital		10.50			10.50
Well-capitalized guidelines
Common equity Tier 1 capital		6.50	%		6.50	%
Leverage ratio		5.00			5.00
Tier 1 risk-based capital		8.00			8.00
Total risk-based capital		10.00			10.00

As of the most recent notification from regulatory agencies, our bank subsidiary was “well-capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well-capitalized”, we, as well as our banking subsidiary, must maintain minimum common equity Tier 1 capital, leverage, Tier 1 risk-based capital, and total risk-based capital ratios as set forth in the table. There are no conditions or events since that notification that we believe have changed the bank subsidiary’s category.

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Non-GAAP Financial Measurements

Our accounting and reporting policies conform to generally accepted accounting principles in the United States (“GAAP”) and the prevailing practices in the banking industry. However, this report contains financial information determined by methods other than in accordance with generally accepted accounting principles (GAAP), including earnings, as adjusted; diluted earnings per common share, as adjusted; tangible book value per share; return on average assets excluding intangible amortization; return on average tangible equity excluding intangible amortization; tangible equity to tangible assets; and efficiency ratio, as adjusted.

We believe these non-GAAP measures and ratios, when taken together with the corresponding GAAP measures and ratios, provide meaningful supplemental information regarding our performance. We believe investors benefit from referring to these non-GAAP measures and ratios in assessing our operating results and related trends, and when planning and forecasting future periods. However, these non-GAAP measures and ratios should be considered in addition to, and not as a substitute for or preferable to, ratios prepared in accordance with GAAP.

The tables below present non-GAAP reconciliations of earnings, as adjusted, and diluted earnings per share, as adjusted as well as the non-GAAP computations of tangible book value per share, return on average assets, return on average tangible equity excluding intangible amortization, tangible equity to tangible assets and the efficiency ratio, as adjusted. The items used in these calculations are included in financial results presented in accordance with generally accepted accounting principles (“GAAP”).

Earnings, as adjusted, and diluted earnings per common share, as adjusted, are meaningful non-GAAP financial measures for management, as they exclude certain items such as merger expenses and/or certain gains and losses. Management believes the exclusion of these items in expressing earnings provides a meaningful foundation for period-to-period and company-to-company comparisons, which management believes will aid both investors and analysts in analyzing our financial measures and predicting future performance. These non-GAAP financial measures are also used by management to assess the performance of our business, because management does not consider these items to be relevant to ongoing financial performance.

In Table 18 below, we have provided a reconciliation of the non-GAAP calculation of the financial measure for the periods indicated.

Table 18: Earnings, As Adjusted

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(Dollars in thousands)
GAAP net income available to common shareholders (A)	$	80,284	$	14,821	$	229,373	$	111,774
Adjustments:
Gain on acquisitions		—		—		—		(3,807	)
Merger expenses		—		18,227		—		25,743
Hurricane expenses(2)		—		33,445		—		33,445
Total adjustments		—		51,672		—		55,381
Tax-effect of adjustments (1)		—		20,045		—		22,626
Adjustments after-tax (B)		—		31,627		—		32,755
Earnings, as adjusted (C)	$	80,284	$	46,448	$	229,373	$	144,529
Average diluted shares outstanding (D)		174,867		144,987		174,394		143,839
GAAP diluted earnings per share: A/D	$	0.46	$	0.10	$	1.32	$	0.78
Adjustments after-tax B/D		—		0.22		—		0.22
Diluted earnings per common share, as adjusted: C/D	$	0.46	$	0.32	$	1.32	$	1.00

(1) Effective tax rate of 39.225%, adjusted for non-taxable gain on acquisition and non-deductible merger-related costs for the quarter ended September 30, 2017.

(2) Hurricane expenses includes $32,889 of provision for loan losses and $556 of damage expense related to Hurricane Irma.

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We had $1.00 billion, $977.3 million, and $980.1 million total goodwill, core deposit intangibles and other intangible assets as of September 30, 2018, December 31, 2017 and September 30, 2017, respectively. Because of our level of intangible assets and related amortization expenses, management believes tangible book value per share, return on average assets, return on average tangible equity excluding intangible amortization and tangible equity to tangible assets are useful in evaluating our company. These calculations, which are similar to the GAAP calculation of diluted earnings per share, tangible book value, return on average assets, return on average equity, and equity to assets, are presented in Tables 19 through 22, respectively.

Table 19: Tangible Book Value Per Share

	As of September 30, 2018		As of December 31, 2017
	(In thousands, except per share data)
Book value per share: A/B	$	13.44	$	12.70
Tangible book value per share: (A-C-D)/B		7.68		7.07
(A) Total equity	$	2,341,026	$	2,204,291
(B) Shares outstanding		174,135		173,633
(C) Goodwill	$	958,408	$	927,949
(D) Core deposit and other intangibles		44,484		49,351

Table 20: Return on Average Assets

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(Dollars in thousands)
Return on average assets: A/I		2.14	%		0.54	%		2.12	%		1.41	%
Return on average assets excluding tax effect of TCJA (A-H)/I		1.78			0.54			1.77			1.41
Return on average assets excluding intangible amortization: (A+C)/(I-J)		2.33			0.59			2.31			1.49
Return on average assets excluding gain on acquisitions, merger expenses and hurricane expenses: (A+F)/I		2.14			1.70			2.12			1.82
Return on average assets excluding intangible amortization, provision for loan losses, gain on acquisitions, merger expenses, hurricane expenses and income taxes (ROA, as adjusted): (A+B+D+E+G)/(I-J)		3.07			2.94			3.09			3.14
(A) Net income	$	80,284		$	14,821		$	229,373		$	111,774
(B) Intangible amortization		1,617			906			4,867			2,576
(C) Intangible amortization after-tax		1,194			551			3,595			1,566
(D) Provision for loan losses excluding hurricane provision	$	—		$	2,134		$	4,322		$	6,435
(E) Total adjustments		—			51,672			—			55,381
(F) Adjustments after-tax		—			31,627			—			32,755
(G) Income tax expense excluding effect of tax rate change		25,350			7,536			73,630			63,192
(H) Tax effect of TCJA		13,395			—			37,952			—
(I) Average assets		14,880,931			10,853,559			14,475,630			10,617,917
(J) Average goodwill, core deposits & other intangible assets		1,001,843			462,799			984,639			440,465

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Table 21: Return on Average Tangible Equity Excluding Intangible Amortization

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(Dollars in thousands)
Return on average equity: A/E		13.74	%		3.88	%		13.56	%		10.33	%
Return on average equity excluding tax effect of TCJA (A-C)/E		11.45			—			11.32			—
Return on average tangible equity excluding intangible amortization: B/(E-F)		24.56			5.80			24.39			15.06
Return on average equity excluding gain on acquisitions, merger expenses and hurricane expenses: (A+D)/E		13.74			12.17			13.56			13.36
(A) Net income	$	80,284		$	14,821		$	229,373		$	111,774
(B) Earnings excluding intangible amortization		81,478			15,372			232,968			113,340
(C) Tax effect of TCJA		13,395			—			37,952			—
(D) Adjustments after tax		—			31,627			—			32,755
(E) Average equity		2,317,930			1,513,829			2,261,594			1,446,740
(F) Average goodwill, core deposits and other intangible assets		1,001,843			462,799			984,639			440,465

Table 22: Tangible Equity to Tangible Assets

	As of September 30, 2018			As of December 31, 2017
	(Dollars in thousands)
Equity to assets: B/A		15.70	%		15.25	%
Tangible equity to tangible assets: (B-C-D)/(A-C-D)		9.62			9.11
(A) Total assets	$	14,912,738		$	14,449,760
(B) Total equity		2,341,026			2,204,291
(C) Goodwill		958,408			927,949
(D) Core deposit and other intangibles		44,484			49,351

The efficiency ratio is a standard measure used in the banking industry and is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income. The efficiency ratio, as adjusted, is a meaningful non-GAAP measure for management, as it excludes certain items and is calculated by dividing non-interest expense less amortization of core deposit intangibles by the sum of net interest income on a tax equivalent basis and non-interest income excluding items such as merger expenses and/or certain other gains and losses. In Table 23 below, we have provided a reconciliation of the non-GAAP calculation of the financial measure for the periods indicated.

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Table 23: Efficiency Ratio, As Adjusted

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
	(Dollars in thousands)
Net interest income (A)	$	145,910		$	106,769		$	420,731		$	318,936
Non-interest income (B)		25,847			21,457			79,325			72,344
Non-interest expense (C)		66,123			70,846			192,731			176,990
FTE Adjustment (D)		1,489			1,846			4,101			5,873
Amortization of intangibles (E)		1,617			906			4,867			2,576
Non-fundamental items:
Non-interest income:
Gain on acquisitions	$	—		$	—		$	—		$	3,807
Gain (loss) on OREO, net		836			335			2,287			849
Gain on sale of SBA loans		47			163			491			738
Gain (loss) on sale of branches, equipment and other assets, net		(102	)		(1,337	)		(95	)		(962	)
Gain (loss) on securities, net		—			136			—			939
Total non-fundamental non-interest income (F)	$	781		$		(703)	$	2,683		$	5,371
Non-interest expense:
Merger expenses	$	—		$	18,227		$	—		$	25,743
Hurricane damage expense		—			556			—			556
Other expense (1)		—			—			—			47
Total non-fundamental non-interest expense (G)		—		$	18,783			—		$	26,346
Efficiency ratio (reported): ((C-E)/(A+B+D))		37.23	%		53.77	%		37.26	%		43.92	%
Efficiency ratio, as adjusted (non-GAAP): ((C-E-G)/ (A+B+D-F))		37.40			39.12			37.46			37.79

(1) Amount includes vacant properties write-downs.

Recently Issued Accounting Pronouncements

See Note 21 in the Condensed Notes to Consolidated Financial Statements for a discussion of certain recently issued and recently adopted accounting pronouncements.

Item 3:    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Liquidity and Market Risk Management

Liquidity Management. Liquidity refers to the ability or the financial flexibility to manage future cash flows to meet the needs of depositors and borrowers and fund operations. Maintaining appropriate levels of liquidity allows us to have sufficient funds available for reserve requirements, customer demand for loans, withdrawal of deposit balances and maturities of deposits and other liabilities. Our primary source of liquidity at our holding company is dividends paid by our bank subsidiary. Applicable statutes and regulations impose restrictions on the amount of dividends that may be declared by our bank subsidiary. Further, any dividend payments are subject to the continuing ability of the bank subsidiary to maintain compliance with minimum federal regulatory capital requirements and to retain its characterization under federal regulations as a “well-capitalized” institution.

Our bank subsidiary has potential obligations resulting from the issuance of standby letters of credit and commitments to fund future borrowings to our loan customers. Many of these obligations and commitments to fund future borrowings to our loan customers are expected to expire without being drawn upon; therefore, the total commitment amounts do not necessarily represent future cash requirements affecting our liquidity position.

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Liquidity needs can be met from either assets or liabilities. On the asset side, our primary sources of liquidity include cash and due from banks, federal funds sold, available-for-sale investment securities and scheduled repayments and maturities of loans. We maintain adequate levels of cash and cash equivalents to meet our day-to-day needs. As of September 30, 2018, our cash and cash equivalents were $532.1 million, or 3.6% of total assets, compared to $635.9 million, or 4.4% of total assets, as of December 31, 2017. Our available-for-sale investment securities and federal funds sold were $1.74 billion and $1.69 billion as of September 30, 2018 and December 31, 2017, respectively.

As of September 30, 2018, our investment portfolio was comprised of approximately 67.7% or $1.32 billion of securities which mature in less than five years. As of September 30, 2018 and December 31, 2017, $1.17 billion and $1.18 billion, respectively, of securities were pledged as collateral for various public fund deposits and securities sold under agreements to repurchase.

On the liability side, our principal sources of liquidity are deposits, borrowed funds, and access to capital markets. Customer deposits are our largest sources of funds. As of September 30, 2018, our total deposits were $10.62 billion, or 71.2% of total assets, compared to $10.39 billion, or 71.9% of total assets, as of December 31, 2017. We attract our deposits primarily from individuals, business, and municipalities located in our market areas.

In the event that additional short-term liquidity is needed to temporarily satisfy our liquidity needs, we have established and currently maintain lines of credit with the Federal Reserve Bank (“Federal Reserve”) and First National Bankers’ Bank to provide short-term borrowings in the form of federal funds purchases. In addition, we maintain lines of credit with three other financial institutions.

As of September 30, 2018 and December 31, 2017, we could have borrowed up to $301.0 million and $106.4 million, respectively, on a secured basis from the Federal Reserve, up to $50.0 million from First National Bankers’ Bank on an unsecured basis, and up to $45.0 million in the aggregate from other financial institutions on an unsecured basis. The unsecured lines may be terminated by the respective institutions at any time.

The lines of credit we maintain with the FHLB can provide us with both short-term and long-term forms of liquidity on a secured basis. FHLB borrowed funds were $1.36 billion and $1.30 billion at September 30, 2018 and December 31, 2017, respectively. At September 30, 2018, $750.0 million and $609.9 million of the outstanding balance were issued as short-term and long-term advances, respectively. At December 31, 2017, $525.0 million and $774.2 million of the outstanding balance were issued as short-term and long-term advances, respectively. Our unused FHLB borrowing availability was $2.55 billion and $1.96 billion as of September 30, 2018 and December 31, 2017, respectively.

We believe that we have sufficient liquidity to satisfy our current operations.

Market Risk Management. Our primary component of market risk is interest rate volatility. Fluctuations in interest rates will ultimately impact both the level of income and expense recorded on a large portion of our assets and liabilities, and the market value of all interest-earning assets and interest-bearing liabilities, other than those which possess a short term to maturity. We do not hold market risk sensitive instruments for trading purposes.

Asset/Liability Management. Our management actively measures and manages interest rate risk. The asset/liability committees of the boards of directors of our holding company and bank subsidiary are also responsible for approving our asset/liability management policies, overseeing the formulation and implementation of strategies to improve balance sheet positioning and earnings, and reviewing our interest rate sensitivity position.

One of the tools that our management uses to measure short-term interest rate risk is a net interest income simulation model. This analysis calculates the difference between net interest income forecasted using base market rates and using a rising and a falling interest rate scenario. The income simulation model includes various assumptions regarding the re-pricing relationships for each of our products. Many of our assets are floating rate loans, which are assumed to re-price immediately, and proportionally to the change in market rates, depending on their contracted index. Some loans and investments include the opportunity of prepayment (embedded options), and accordingly the simulation model uses indexes to estimate these prepayments and reinvest their proceeds at current yields. Our non-term deposit products re-price more slowly, usually changing less than the change in market rates and at our discretion.

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This analysis indicates the impact of changes in net interest income for the given set of rate changes and assumptions. It assumes the balance sheet remains static and that its structure does not change over the course of the year. It does not account for all factors that impact this analysis, including changes by management to mitigate the impact of interest rate changes or secondary impacts such as changes to our credit risk profile as interest rates change.

Furthermore, loan prepayment rate estimates and spread relationships change regularly. Interest rate changes create changes in actual loan prepayment rates that will differ from the market estimates incorporated in this analysis. Changes that vary significantly from the assumptions may have significant effects on our net interest income.

For the rising and falling interest rate scenarios, the base market interest rate forecast was increased and decreased over twelve months by 200 and 100 basis points, respectively. At September 30, 2018, our net interest margin exposure related to these hypothetical changes in market interest rates was within the current guidelines established by us.

Table 24 presents our sensitivity to net interest income as of September 30, 2018.

Table 24: Sensitivity of Net Interest Income

Interest Rate Scenario	Percentage Change from Base
Up 200 basis points		6.21	%
Up 100 basis points		3.14
Down 100 basis points		(5.20	)
Down 200 basis points		(10.36	)

Interest Rate Sensitivity. Our primary business is banking and the resulting earnings, primarily net interest income, are susceptible to changes in market interest rates. Management’s goal is to maximize net interest income within acceptable levels of interest rate and liquidity risks.

A key element in the financial performance of financial institutions is the level and type of interest rate risk assumed. The single most significant measure of interest rate risk is the relationship of the repricing periods of earning assets and interest-bearing liabilities. The more closely the repricing periods are correlated, the less interest rate risk we assume. We use repricing gap and simulation modeling as the primary methods in analyzing and managing interest rate risk.

Gap analysis attempts to capture the amounts and timing of balances exposed to changes in interest rates at a given point in time. As of September 30, 2018, our gap position was asset sensitive with a one-year cumulative repricing gap as a percentage of total earning assets of 3.7%.

During this period, the amount of change our asset base realizes in relation to the total change in market interest rates is higher than that of the liability base. As a result, our net interest income will have a positive effect in an environment of modestly rising rates.

We have a portion of our securities portfolio invested in mortgage-backed securities. Mortgage-backed securities are included based on their final maturity date. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

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Table 25 presents a summary of the repricing schedule of our interest-earning assets and interest-bearing liabilities (gap) as of September 30, 2018.

Table 25: Interest Rate Sensitivity

	Interest Rate Sensitivity Period
	0-30 Days			31-90 Days			91-180 Days			181-365 Days			1-2 Years			2-5 Years			Over 5 Years			Total
	(Dollars in thousands)
Earning assets
Interest-bearing deposits due from banks	$	323,376		$	—		$	—		$	—		$	—		$	—		$	—		$	323,376
Federal funds sold		500			—			—			—			—			—			—			500
Investment securities		298,914			78,759			69,288			112,483			176,612			482,712			724,928			1,943,696
Loans receivable		3,262,719			634,382			784,590			1,284,728			1,698,675			2,467,054			700,667			10,832,815
Total earning assets		3,885,509			713,141			853,878			1,397,211			1,875,287			2,949,766			1,425,595			13,100,387
Interest-bearing liabilities
Interest-bearing transaction and savings deposits		1,115,690			503,425			755,138			1,510,275			870,066			633,124			1,033,233			6,420,951
Time deposits		179,639			153,019			264,598			450,935			557,087			112,564			3,088			1,720,930
Securities sold under repurchase agreements		142,146			—			—			—			—			—			—			142,146
FHLB and other borrowed funds		401,178			371,099			24			444,329			143,752			3,469			—			1,363,851
Subordinated debentures		70,805			—			—			—			—			297,791			—			368,596
Total interest-bearing liabilities		1,909,458			1,027,543			1,019,760			2,405,539			1,570,905			1,046,948			1,036,321			10,016,474
Interest rate sensitivity gap	$	1,976,051		$	(314,402	)	$	(165,882	)	$	(1,008,321	)	$	304,382		$	1,902,818		$	389,274		$	3,083,913
Cumulative interest rate sensitivity gap	$	1,976,051		$	1,661,649		$	1,495,767		$	487,439		$	791,821		$	2,694,639		$	3,083,913
Cumulative rate sensitive assets to rate sensitive liabilities		203.5	%		156.6	%		137.8	%		107.7	%		110.0	%		130.0	%		130.8	%
Cumulative gap as a % of total earning assets		15.1	%		12.7	%		11.4	%		3.7	%		6.0	%		20.6	%		23.5	%

Item 4:    CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls

Based on their evaluation as of the end of the period covered by this Quarterly Report on Form 10-Q, the Chief Executive Officer and Chief Financial Officer have concluded that the disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) are effective to ensure that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. Additionally, our disclosure controls and procedures were also effective in ensuring that information required to be disclosed in our Exchange Act report is accumulated and communicated to our management, including the Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting

There have not been any changes in the Company’s internal controls over financial reporting during the quarter ended September 30, 2018, which have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II: OTHER INFORMATION

Item 1:    Legal Proceedings

There are no material pending legal proceedings, other than ordinary routine litigation incidental to its business, to which the Company or its subsidiaries are a party or of which any of their property is the subject.

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Item 1A: Risk Factors

There were no material changes from the risk factors set forth in Part I, Item 1A, “Risk Factors,” of our Form 10-K for the year ended December 31, 2017. See the discussion of our risk factors in the Form 10-K, as filed with the SEC. The risks described are not the only risks facing the Company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition and/or operating results.

Item 2:    Unregistered Sales of Equity Securities and Use of Proceeds

In connection with the Company’s acquisition of SPF, on June 30, 2018, the Company issued 1,250,000 shares of HBI common stock to Union in partial consideration for the acquisition. The shares were issued to Union pursuant to Section 4(a)(2) of the Securities Act of 1933.

During the three months ended September 30, 2018, the Company utilized a portion of its stock repurchase program last amended and approved by the Board of Directors on February 21, 2018. This program authorized the repurchase of 14,752,000 shares of the Company’s common stock. The following table sets forth information with respect to purchases made by or on behalf of the Company of shares of the Company’s common stock during the periods indicated:

Period	Number of Shares Purchased		Average Price Paid Per Share Purchased		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs (1)
July 1 through July 31, 2018		541,700	$	23.02		541,700		9,036,116
August 1 through August 31, 2018		565,544		23.39		565,544		8,470,572
September 1 through September 30, 2018		106,836		22.82		106,836		8,363,736
Total		1,214,080		23.18		1,214,080

(1) The above described stock repurchase program has no expiration date.

Item 3:    Defaults Upon Senior Securities

Not applicable.

Item 4:    Mine Safety Disclosures

Not applicable.

Item 5:    Other Information

Not applicable.

Item 6:    Exhibits

Exhibit No.	Description
3.1	Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 3.1 of Home  BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
3.2	Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit  3.2 of Home BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)

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Exhibit No.
3.3	Second Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit  3.3 of Home BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
3.4	Third Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit  3.4 of Home BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
3.5	Fourth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit  3.1 of Home BancShares’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2007, filed on August 8, 2007)
3.6	Fifth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit 4.6 of Home BancShares’s registration statement on Form S-3 (File No. 333-157165))
3.7	Certificate of Designations of Fixed Rate Cumulative Perpetual Preferred Stock, Series  A, filed with the Secretary of State of the State of Arkansas on January 14, 2009 (incorporated by reference to Exhibit 3.1 of Home BancShares’s Current Report on Form 8-K, filed on January  21, 2009)
3.8	Seventh Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit  3.1 of Home BancShares’s Current Report on Form 8-K, filed on April 19, 2013)
3.9	Eighth Amendment to the Restated Articles of Incorporation of Home BancShares, Inc. (incorporated by reference to Exhibit  3.1 of Home BancShares Current Report on Form 8-K filed on April 22, 2016)
3.10	Restated Bylaws of Home BancShares, Inc. (incorporated by reference to Exhibit 3.5 of Home  BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
4.1	Specimen Stock Certificate representing Home BancShares, Inc. Common Stock (incorporated by reference to Exhibit  4.6 of Home BancShares’s registration statement on Form S-1 (File No. 333-132427), as amended)
4.2	Instruments defining the rights of security holders including indentures. Home BancShares hereby agrees to furnish to the SEC upon request copies of instruments defining the rights of holders of long-term debt of Home BancShares and its consolidated subsidiaries. No issuance of debt exceeds ten percent of the assets of Home BancShares and its subsidiaries on a consolidated basis.
10.1	Amended and Restated 2006 Stock Option and Performance Incentive Plan of Home BancShares, Inc. (incorporated by reference to Exhibit 10.1 of Home BancShares’s Current Report on Form 8-K filed on March 30, 2012)
10.2	Amendment to Amended and Restated 2006 Stock Option and Performance Incentive Plan of Home BancShares, Inc. (incorporated by reference to Exhibit 10.1 of Home BancShares’s Quarterly Report on Form 10-Q for the period ended June 30, 2015, filed on August 6, 2015)
10.3	Amendment to Amended and Restated 2006 Stock Option and Performance Incentive Plan of Home BancShares, Inc. (incorporated by reference to Exhibit 10.1 of Home BancShares’s Current Report on Form 8-K filed on April 22, 2016)
10.4	Amendment to Amended and Restated 2006 Stock Option and Performance Incentive Plan of Home BancShares, Inc. (incorporated by reference to Exhibit 10.1 of Home BancShares’s Current Report on Form 8-K filed on April 20, 2018)
10.5	Amendment to Amended and Restated 2006 Stock Option and Performance Incentive Plan of Home BancShares, Inc. (incorporated by reference to Exhibit 10.5 of Home BancShares’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, filed on May 7, 2018)
12.1	Computation of Ratios of Earnings to Fixed Charges*
15	Awareness of Independent Registered Public Accounting Firm*
31.1	CEO Certification Pursuant Rule 13a-14(a)/15d-14(a)*
31.2	CFO Certification Pursuant Rule 13a-14(a)/15d-14(a)*

96

Exhibit No.
32.1	CEO Certification Pursuant 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes – Oxley Act of 2002*
32.2	CFO Certification Pursuant 18 U.S.C. Section 1350, as adopted pursuant to section 906 of the Sarbanes – Oxley Act of 2002*
99.1	Asset Purchase Agreement by and among Home BancShares, Inc., Centennial Bank, and Union Bank & Trust, dated June  29, 2018 (incorporated by reference to Exhibit 99.3 of Home BancShares’s Current Report on Form 8-K filed on July 6, 2018)
101.INS	XBRL Instance Document*
101.SCH	XBRL Taxonomy Extension Schema Document*
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document*
101.LAB	XBRL Taxonomy Extension Label Linkbase Document*
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document*
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document*

* Filed herewith

97

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

HOME BANCSHARES, INC.

(Registrant)

Date:                        November 5, 2018	/s/ C. Randall Sims
	C. Randall Sims, Chief Executive Officer
Date:                        November 5, 2018	/s/ Brian S. Davis
	Brian S. Davis, Chief Financial Officer
Date:                        November 5, 2018	/s/ Jennifer C. Floyd
	Jennifer C. Floyd, Chief Accounting Officer

98

EX-12.1

Exhibit 12.1

Home BancShares, Inc.

Computation of Ratios of Earnings to Fixed Charges

	Three Months Ended September 30,						Nine Months Ended September 30,						Year Ended December 31,
Exhibit	2018			2017			2018			2017			2017			2016			2015			2014			2013
(Dollars in thousands)
Fixed Charges and Preferred Dividends
Interest expense	$	28,939		$	12,175		$	71,483		$	32,131		$	49,209		$	28,986		$	20,370		$	17,557		$	14,013
Capital debt expense Trust Preferred		5,202			4,969			15,374			10,203			15,137			1,593			1,354			1,313			518
Estimated interest in rent		244			237			770			648			918			784			779			751			515
Preferred dividends (E)		—			—			—			—			—			—			—			—			—
Combined fixed charges and preferred dividends (B)		34,385			17,381			87,627			42,982			65,264			31,363			22,503			19,621			15,046
Less: interest on deposits		21,412			8,535			54,382			20,831			33,777			15,926			12,971			12,796			9,744
Combined fixed charges and preferred dvidends excluding interest on deposits (D)	$	12,973		$	8,846		$	33,245		$	22,151		$	31,487		$	15,437		$	9,532		$	6,825		$	5,302
Earnings
Pre-tax income from continuing operations	$	105,634		$	22,357		$	303,003		$	174,966		$	271,083		$	282,646		$	218,491		$	177,173		$	104,473
Fixed charges and preferred dividends		34,385			17,381			87,627			42,982			65,264			31,363			22,503			19,621			15,046
Total earnings (A)		140,019			39,738			390,630			217,948			336,347			314,009			240,994			196,794			119,519
Less: interest on deposits		21,412			8,535			54,382			20,831			33,777			15,926			12,971			12,796			9,744
Total earnings excluding interest on deposits (C)	$	118,607		$	31,203		$	336,248		$	197,117		$	302,570		$	298,083		$	228,023		$	183,998		$	109,775
Ratio of earnings to fixed charges
Ratio, including interest on deposits (A/(B-E))		4.07	x		2.29	x		4.46	x		5.07	x		5.15	x		10.01	x		10.71	x		10.03	x		7.94	x
Ratio, excluding interest on deposits (C/(D-E))		9.14	x		3.53	x		10.11	x		8.90	x		9.61	x		19.31	x		23.92	x		26.96	x		20.70	x
Ratio of earnings to fixed charges & preferred dividends
Ratio, including interest on deposits (A/B)		4.07	x		2.29	x		4.46	x		5.07	x		5.15	x		10.01	x		10.71	x		10.03	x		7.94	x
Ratio, excluding interest on deposits (C/D)		9.14	x		3.53	x		10.11	x		8.90	x		9.61	x		19.31	x		23.92	x		26.96	x		20.70	x

EX-15

Exhibit 15

Awareness of Independent Registered

Public Accounting Firm

We are aware that our report dated November 5, 2018, included with the Quarterly Report on Form 10-Q for the quarter ended September 30, 2018, is incorporated by reference in Forms S-8 (Nos. 333-136645, 333-148763, 333-151843, 333-188591, 333-211116 and 333-226608) and Form S-3 (No. 333-208307). Pursuant to Rule 436(c) under the Securities Act of 1933 (the Act), this report should not be considered a part of these registration statements prepared or certified by us within the meaning of Sections 7 and 11 of that Act.

/s/ BKD, LLP

Little Rock, Arkansas

November 5, 2018

EX-31.1

Exhibit 31.1

I, C. Randall Sims, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Home BancShares, Inc. for the period ended September 30, 2018;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d) disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2018	/s/ C. Randall Sims
	C. Randall Sims
	Chief Executive Officer

EX-31.2

Exhibit 31.2

I, Brian S. Davis, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Home BancShares, Inc. for the period ended September 30, 2018;

2. Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

3. Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this quarterly report is being prepared;

b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this quarterly report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this quarterly report based on such evaluation; and

d) disclosed in this quarterly report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 5, 2018	/s/ Brian S. Davis
	Brian S. Davis
	Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report of Home BancShares, Inc. (the Company) on Form 10-Q for the period ended September 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, C. Randall Sims, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 5, 2018	/s/ C. Randall Sims
	C. Randall Sims
	Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the accompanying Quarterly Report of Home BancShares, Inc. (the Company) on Form 10-Q for the period ended September 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the Report), I, Brian S. Davis, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 5, 2018	/s/ Brian S. Davis
	Brian S. Davis
	Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2018	Nov. 02, 2018
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Trading Symbol	HOMB
Entity Registrant Name	HOME BANCSHARES INC
Entity Central Index Key	0001331520
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		172,932,360

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 208,681	$ 166,915
Interest-bearing deposits with other banks	323,376	469,018
Cash and cash equivalents	532,057	635,933
Federal funds sold	500	24,109
Investment securities - available-for-sale	1,744,430	1,663,517
Investment securities - held-to-maturity	199,266	224,756
Loans receivable	10,832,815	10,331,188
Allowance for loan losses	(110,191)	(110,266)
Loans receivable, net	10,722,624	10,220,922
Bank premises and equipment, net	233,652	237,439
Foreclosed assets held for sale	13,507	18,867
Cash value of life insurance	148,014	146,866
Accrued interest receivable	48,909	45,708
Deferred tax asset, net	79,548	76,564
Goodwill	958,408	927,949
Core deposit and other intangibles	44,484	49,351
Other assets	187,339	177,779
Total assets	14,912,738	14,449,760
Deposits:
Demand and non-interest-bearing	2,482,857	2,385,252
Savings and interest-bearing transaction accounts	6,420,951	6,476,819
Time deposits	1,720,930	1,526,431
Total deposits	10,624,738	10,388,502
Securities sold under agreements to repurchase	142,146	147,789
FHLB and other borrowed funds	1,363,851	1,299,188
Accrued interest payable and other liabilities	72,381	41,959
Subordinated debentures	368,596	368,031
Total liabilities	12,571,712	12,245,469
Stockholders' equity:
Common stock, par value $0.01; shares authorized 200,000,000 in 2018 and 2017; shares issued and outstanding 174,134,811 in 2018 and 173,632,983 in 2017	1,741	1,736
Capital surplus	1,668,106	1,675,318
Retained earnings	701,900	530,658
Accumulated other comprehensive loss	(30,721)	(3,421)
Total stockholders' equity	2,341,026	2,204,291
Total liabilities and stockholders' equity	$ 14,912,738	$ 14,449,760

XML

Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2018	Dec. 31, 2017
Statement of Financial Position [Abstract]
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	174,134,811	173,632,983
Common stock, shares outstanding	174,134,811	173,632,983

XML

Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Interest income:
Loans	$ 166,334	$ 113,269	$ 467,395	$ 331,763
Investment securities
Taxable	9,011	7,071	26,960	18,983
Tax-exempt	3,427	3,032	9,801	8,942
Deposits - other banks	1,273	538	3,408	1,573
Federal funds sold	6	3	24	9
Total interest income	180,051	123,913	507,588	361,270
Interest expense:
Interest on deposits	21,412	8,535	54,382	20,831
Federal funds purchased			1
FHLB and other borrowed funds	7,055	3,408	15,880	10,707
Securities sold under agreements to repurchase	472	232	1,220	593
Subordinated debentures	5,202	4,969	15,374	10,203
Total interest expense	34,141	17,144	86,857	42,334
Net interest income	145,910	106,769	420,731	318,936
Provision for loan losses		35,023	4,322	39,324
Net interest income after provision for loan losses	145,910	71,746	416,409	279,612
Non-interest income:
Trust fees	437	365	1,262	1,130
Mortgage lending income	3,691	3,172	9,825	9,713
Insurance commissions	463	472	1,668	1,482
Increase in cash value of life insurance	735	478	2,119	1,251
Dividends from FHLB, FRB, FNBB & other	1,288	834	3,765	2,455
Gain on acquisitions				3,807
Gain on sale of SBA loans	47	163	491	738
Gain (loss) on sale of branches, equipment and other assets, net	(102)	(1,337)	(95)	(962)
Gain (loss) on OREO, net	836	335	2,287	849
Gain (loss) on securities, net		136		939
Other income	2,419	1,941	9,163	6,603
Total non-interest income	25,847	21,457	79,325	72,344
Non-interest expense:
Salaries and employee benefits	37,825	28,510	107,315	83,965
Occupancy and equipment	8,148	7,887	25,650	21,602
Data processing expense	3,461	2,853	10,786	8,439
Other operating expenses	16,689	31,596	48,980	62,984
Total non-interest expense	66,123	70,846	192,731	176,990
Income before income taxes	105,634	22,357	303,003	174,966
Income tax expense	25,350	7,536	73,630	63,192
Net income	$ 80,284	$ 14,821	$ 229,373	$ 111,774
Basic earnings per share	$ 0.46	$ 0.10	$ 1.32	$ 0.78
Diluted earnings per share	$ 0.46	$ 0.10	$ 1.32	$ 0.78
Service Charges on Deposit Accounts [Member]
Non-interest income:
Service charges	$ 6,992	$ 6,408	$ 19,847	$ 18,356
Other Service Charges and Fees [Member]
Non-interest income:
Service charges	$ 9,041	$ 8,490	$ 28,993	$ 25,983

XML

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 80,284	$ 14,821	$ 229,373	$ 111,774
Net unrealized gain (loss) on available-for-sale securities	(6,979)	(4,065)	(35,957)	6,681
Less: reclassification adjustment for realized (gains) losses included in income		(136)		(939)
Other comprehensive (loss) income, before tax effect	(6,979)	(4,201)	(35,957)	5,742
Tax effect on other comprehensive income	2,867	1,648	9,647	(2,253)
Other comprehensive income (loss)	(4,112)	(2,553)	(26,310)	3,489
Comprehensive income	$ 76,172	$ 12,268	$ 203,063	$ 115,263

XML

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands		Total	Giant Holdings, Inc. [Member]	Stonegate Bank [Member]	Shore Premier Finance [Member]	Common Stock [Member]	Common Stock [Member] Giant Holdings, Inc. [Member]	Common Stock [Member] Stonegate Bank [Member]	Common Stock [Member] Shore Premier Finance [Member]	Capital Surplus [Member]	Capital Surplus [Member] Giant Holdings, Inc. [Member]	Capital Surplus [Member] Stonegate Bank [Member]	Capital Surplus [Member] Shore Premier Finance [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income (Loss) [Member]
Beginning Balance at Dec. 31, 2016		$ 1,327,490				$ 1,405				$ 869,737				$ 455,948	$ 400
Comprehensive income:
Net income		111,774												111,774
Other comprehensive income (loss)		3,489													3,489
Net issuance of shares of common stock from exercise of stock options		849				2				847
Issuance of common stock			$ 77,317	$ 741,633			$ 27	$ 309			$ 77,290	$ 741,324
Repurchase of shares of common stock		(19,538)				(8)				(19,530)
Share-based compensation net issuance of shares of restricted common stock		4,976				2				4,974
Cash dividends - Common Stock		(41,274)												(41,274)
Ending balance at Sep. 30, 2017		2,206,716				1,737				1,674,642				526,448	3,889
Beginning Balance at Dec. 31, 2016		1,327,490				1,405				869,737				455,948	400
Comprehensive income:
Net income		23,309												23,309
Other comprehensive income (loss)		(7,310)													(7,310)
Net issuance of shares of common stock from exercise of stock options		233								233
Repurchase of shares of common stock		(1,287)				(1)				(1,286)
Share-based compensation net issuance of shares of restricted common stock		1,729								1,729
Cash dividends - Common Stock		(19,099)												(19,099)
Ending balance at Dec. 31, 2017		2,204,291				1,736				1,675,318				530,658	(3,421)
Comprehensive income:
Net income		229,373												229,373
Other comprehensive income (loss)		(26,310)													(26,310)
Net issuance of shares of common stock from exercise of stock options		1,257				2				1,255
Issuance of common stock					$ 28,201				$ 13				$ 28,188
Impact of adoption of new accounting standards	[1]													990	(990)
Repurchase of shares of common stock		(43,170)				(19)				(43,151)
Share-based compensation net issuance of shares of restricted common stock		6,505				9				6,496
Cash dividends - Common Stock		(59,121)												(59,121)
Ending balance at Sep. 30, 2018		$ 2,341,026				$ 1,741				$ 1,668,106				$ 701,900	$ (30,721)

[1] Represents the impact of adopting Accounting Standard Update ("ASU") 2016-01. See Note 1 to the consolidated financial statements for more information.

XML

Consolidated Statements of Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Net issuance of shares of common stock from exercise of stock options	176,821	160,237	24,879
Net issuance cost of common stock		$ 825
Common stock shares repurchased	1,863,400	800,000	57,800
Issuance of restricted common stock	956,125	231,766
Common stock, cash dividends per share	$ 0.34	$ 0.29	$ 0.11
Giant Holdings, Inc. [Member]
Net issuance of shares of common stock		2,738,038
Net issuance cost of common stock		$ 195
Stonegate Bank [Member]
Net issuance of shares of common stock		30,863,658
Net issuance cost of common stock		$ 630
Shore Premier Finance [Member]
Net issuance of shares of common stock	1,250,000
Net issuance cost of common stock	$ 0

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Operating Activities
Net income	$ 80,284	$ 14,821	$ 229,373	$ 111,774	$ 23,309
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation			9,156	8,634
Investment amortization			16,033	12,087
Accretion of purchased loans			(32,021)	(23,319)
Share-based compensation			6,505	4,976
Gain on assets			(3,436)	(1,720)
Gain on acquisitions				(3,807)
Provision for loan losses		35,023	4,322	39,324
Deferred income tax effect	1,393	(13,187)	14,593	(15,867)
Increase in cash value of life insurance	(735)	(478)	(2,119)	(1,251)
Originations of mortgage loans held for sale			(258,520)	(243,948)
Proceeds from sales of mortgage loans held for sale			262,900	250,784
Changes in assets and liabilities:
Accrued interest receivable			(2,377)	(1,814)
Other assets			(17,485)	(22,642)
Accrued interest payable and other liabilities			28,547	(35,436)
Net cash provided by operating activities			255,471	77,775
Investing Activities
Net decrease (increase) in federal funds sold			23,609	(1,480)
Net increase in loans, excluding purchased loans			(119,723)	(92,015)
Purchases of investment securities - available-for-sale			(380,847)	(522,329)
Proceeds from maturities of investment securities - available-for-sale			252,795	120,785
Proceeds from sale of investment securities - available-for-sale			1,064	28,368
Purchases of investment securities - held-to-maturity				(219)
Proceeds from maturities of investment securities - held-to-maturity			25,007	48,144
Proceeds from sale of investment securities - held-to-maturity				491
Proceeds from foreclosed assets held for sale			17,744	13,315
Proceeds from sale of SBA Loans			7,938	13,630
Purchases of premises and equipment, net			(5,070)	(4,383)
Return of investment on cash value of life insurance			1,325	592
Net cash (paid) proceeds received - market acquisitions			(377,411)	227,845
Net cash used in investing activities			(553,569)	(167,256)
Financing Activities
Net increase in deposits, excluding deposits acquired			236,236	536,891
Net (decrease) increase in securities sold under agreements to repurchase			(5,643)	2,078
Net increase (decrease) in FHLB and other borrowed funds			64,663	(350,230)
Proceeds from exercise of stock options			1,257	849
Proceeds from issuance of subordinated notes				297,201
Repurchase of common stock			(43,170)	(19,538)
Common stock issuance costs - market acquisitions				(825)
Dividends paid on common stock			(59,121)	(41,274)
Net cash provided by used in financing activities			194,222	425,152
Net change in cash and cash equivalents			(103,876)	335,671
Cash and cash equivalents - beginning of year			635,933	216,649	216,649
Cash and cash equivalents - end of period	$ 532,057	$ 552,320	$ 532,057	$ 552,320	$ 635,933

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Nature of Operations and Summary of Significant Accounting Policies

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Summary of Significant Accounting Policies

1. Nature of Operations and Summary of Significant Accounting Policies

Nature of Operations

Home BancShares, Inc. (the “Company” or “HBI”) is a bank holding company headquartered in Conway, Arkansas. The Company is primarily engaged in providing a full range of banking services to individual and corporate customers through its wholly-owned community bank subsidiary – Centennial Bank (sometimes referred to as “Centennial” or the “Bank”). The Bank has branch locations in Arkansas, Florida, South Alabama and New York City. The Company is subject to competition from other financial institutions. The Company also is subject to the regulation of certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.

A summary of the significant accounting policies of the Company follows:

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Bank is the only significant subsidiary upon which management makes decisions regarding how to allocate resources and assess performance. Each of the branches of the Bank provide a group of similar banking services, including such products and services as commercial, real estate and consumer loans, time deposits, checking and savings accounts. The individual bank branches have similar operating and economic characteristics. While the chief decision maker monitors the revenue streams of the various products, services and branch locations, operations are managed, and financial performance is evaluated on a Company-wide basis. Accordingly, all of the banking services and branch locations are considered by management to be aggregated into one reportable operating segment.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, the valuation of investment securities, the valuation of foreclosed assets and the valuations of assets acquired, and liabilities assumed in business combinations. In connection with the determination of the allowance for loan losses and the valuation of foreclosed assets, management obtains independent appraisals for significant properties.

Principles of Consolidation

The consolidated financial statements include the accounts of HBI and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Various items within the accompanying consolidated financial statements for previous years have been reclassified to provide more comparative information. These reclassifications had no effect on net earnings or stockholders’ equity.

Interim financial information

The accompanying unaudited consolidated financial statements as of September 30, 2018 and 2017 have been prepared in condensed format, and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2017 Form 10-K, filed with the Securities and Exchange Commission.

Revenue Recognition.

Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as our loans, letters of credit and investment securities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC Topic 606, which are presented in our income statements as components of non-interest income are as follows:

• Service charges on deposit accounts – These represent general service fees for monthly account maintenance and activity or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.

• Other service charges and fees – These represent credit card interchange fees and Centennial CFG loan fees. The interchange fees are recorded in the period the performance obligation is satisfied which is generally the cash basis based on agreed upon contracts. The Centennial CFG loan fees are based on loan or other negotiated agreements with customers and are accounted for under ASC Topic 310.

• Mortgage lending income – This represents fee income on secondary market lending which is accounted for under ASC Topic 310 and transfer of loans based on a “bid” agreement with the investor which is accounted for under ASC Topic 860, Transfers and Servicing.

Earnings per Share

Basic earnings per share is computed based on the weighted-average number of shares outstanding during each year. Diluted earnings per share is computed using the weighted-average shares and all potential dilutive shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Net income	$	80,284	$	14,821	$	229,373	$	111,774
Average shares outstanding		174,440		144,238		173,870		143,111
Effect of common stock options		427		749		524		728
Average diluted shares outstanding		174,867		144,987		174,394		143,839
Basic earnings per share	$	0.46	$	0.10	$	1.32	$	0.78
Diluted earnings per share	$	0.46	$	0.10	$	1.32	$	0.78

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Business Combinations

9 Months Ended

Sep. 30, 2018

Business Combinations [Abstract]

Business Combinations

2. Business Combinations

Acquisition of Shore Premier Finance

On June 30, 2018, the Company, completed the acquisition of Shore Premier Finance (“SPF”), a division of Union Bank & Trust of Richmond, Virginia, the bank subsidiary of Union Bankshares Corporation. The Company paid a purchase price of approximately $377.4 million in cash, subject to certain post-closing adjustments, and 1,250,000 shares of HBI common stock valued at approximately $28.2 million. SPF provides direct consumer financing for United States Coast Guard (“USCG”) registered high-end sail and power boats. Additionally, SPF provides inventory floor plan lines of credit to marine dealers, primarily those selling USCG documented vessels.

Including the effects of known purchase accounting adjustments, as of acquisition date, SPF had approximately $377.0 million in total assets, including $376.2 million in total loans and $1.9 million in assumed liabilities, which resulted in tentative goodwill of $30.5 million being recorded. The purchase price allocation and certain fair value measurements remain preliminary due to the timing of the acquisition. The Company will continue to review the estimated fair values of loans and intangible assets and to evaluate the assumed tax positions and contingencies.

This portfolio of loans is now housed in a division of Centennial known as Shore Premier Finance. The SPF division of Centennial is responsible for servicing the acquired loan portfolio and originating new loan production. In connection with this acquisition and the creation of the SPF division of Centennial, Centennial has opened a new loan production office in Chesapeake, Virginia. Through this loan production office, the SPF division of Centennial will continue its vision to build out a lending platform focusing on commercial and consumer marine loans.

The Company has determined that the acquisition of the net assets of SPF constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change.

Acquisition of Stonegate Bank

On September 26, 2017, the Company, completed the acquisition of all of the issued and outstanding shares of common stock of Stonegate Bank (“Stonegate”), and merged Stonegate into Centennial. The Company paid a purchase price to the Stonegate shareholders of approximately $792.4 million for the Stonegate acquisition. Under the terms of the merger agreement, shareholders of Stonegate received 30,863,658 shares of HBI common stock valued at approximately $742.3 million plus approximately $50.1 million in cash in exchange for all outstanding shares of Stonegate common stock. In addition, the holders of outstanding stock options of Stonegate received approximately $27.6 million in cash in connection with the cancellation of their options immediately before the acquisition closed, for a total transaction value of approximately $820.0 million.

Including the effects of the purchase accounting adjustments, as of acquisition date, Stonegate had approximately $2.89 billion in total assets, $2.37 billion in loans and $2.53 billion in customer deposits. Stonegate formerly operated its banking business from 24 locations in key Florida markets with significant presence in Broward and Sarasota counties.

The Company has determined that the acquisition of the net assets of Stonegate constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. The following schedule is a breakdown of the assets acquired and liabilities assumed as of the acquisition date:

	Stonegate Bank
	Acquired from Stonegate			Fair Value Adjustments			As Recorded by HBI
	(Dollars in thousands)
Assets
Cash and due from banks	$	100,958		$	—		$	100,958
Interest-bearing deposits with other banks		135,631			—			135,631
Federal funds sold		1,515			—			1,515
Investment securities		103,041			474			103,515
Loans receivable		2,446,149			(74,067	)		2,372,082
Allowance for loan losses		(21,507	)		21,507			—
Loans receivable, net		2,424,642			(52,560	)		2,372,082
Bank premises and equipment, net		38,868			(3,572	)		35,296
Foreclosed assets held for sale		4,187			(801	)		3,386
Cash value of life insurance		48,000			—			48,000
Accrued interest receivable		7,088			—			7,088
Deferred tax asset, net		27,340			11,990			39,330
Goodwill		81,452			(81,452	)		—
Core deposit and other intangibles		10,505			20,364			30,869
Other assets		9,598			255			9,853
Total assets acquired	$	2,992,825		$	(105,302	)	$	2,887,523
Liabilities
Deposits
Demand and non-interest-bearing	$	585,959		$	—		$	585,959
Savings and interest-bearing transaction accounts		1,776,256			—			1,776,256
Time deposits		163,567			(85	)		163,482
Total deposits		2,525,782			(85	)		2,525,697
FHLB borrowed funds		32,667			184			32,851
Securities sold under agreements to repurchase		26,163			—			26,163
Accrued interest payable and other liabilities		8,100			(484	)		7,616
Subordinated debentures		8,345			1,489			9,834
Total liabilities assumed		2,601,057			1,104			2,602,161
Equity
Total equity assumed		391,768			(391,768	)		—
Total liabilities and equity assumed	$	2,992,825		$	(390,664	)		2,602,161
Net assets acquired								285,362
Purchase price								792,370
Goodwill							$	507,008

The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above:

Cash and due from banks, interest-bearing deposits with other banks and federal funds sold – The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets.

Investment securities – Investment securities were acquired from Stonegate with an approximately $474,000 adjustment to market value based upon quoted market prices.

Loans – Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and current discount rates. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns.

The Company evaluated $2.37 billion of the loans purchased in conjunction with the acquisition in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs, which were recorded with a $73.3 million discount. As a result, the fair value discount on these loans is being accreted into interest income over the weighted average life of the loans using a constant yield method. The remaining $74.3 million of loans evaluated were considered purchased credit impaired loans within the provisions of FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and were recorded with a $23.3 million discount. These purchase credit impaired loans will recognize interest income through accretion of the difference between the carrying amount of the loans and the expected cash flows. The acquired Stonegate loan balance and the fair value adjustment on loans receivable includes $22.6 million of discount on purchased loans, respectively.

Bank premises and equipment – Bank premises and equipment were acquired from Stonegate with a $3.6 million adjustment to market value. This represents the difference between current appraisals completed in connection with the acquisition and book value acquired.

Foreclosed assets held for sale – These assets are presented at the estimated fair values that management expects to receive when the properties are sold, net of related costs of disposal.

Cash value of life insurance – Cash value of life insurance was acquired from Stonegate at market value.

Accrued interest receivable – Accrued interest receivable was acquired from Stonegate at market value.

Deferred tax asset – The current and deferred income tax assets and liabilities are recorded to reflect the differences in the carrying values of the acquired assets and assumed liabilities for financial reporting purposes and the cost basis for federal income tax purposes, at the Company’s statutory federal and state income tax rate which was 39.225% at the time of acquisition.

Core deposit intangible – This intangible asset represents the value of the relationships that Stonegate had with its deposit customers. The fair value of this intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base, and the net maintenance cost attributable to customer deposits. The Company recorded $30.9 million of core deposit intangible.

Deposits – The fair values used for the demand and savings deposits that comprise the transaction accounts acquired, by definition equal the amount payable on demand at the acquisition date. The $85,000 fair value adjustment applied for time deposits was because the weighted average interest rate of Stonegate’s certificates of deposits were estimated to be below the current market rates.

FHLB borrowed funds – The fair value of FHLB borrowed funds is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

Securities sold under agreements to repurchase – Securities sold under agreements to repurchase were acquired from Stonegate at market value.

Accrued interest payable and other liabilities – Accrued interest payable and other liabilities were acquired from Stonegate at market value.

Subordinated debentures – The fair value of subordinated debentures is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

The unaudited pro-forma combined consolidated financial information presents how the combined financial information of HBI and Stonegate might have appeared had the businesses actually been combined. The following schedule represents the unaudited pro forma combined financial information as of the years ended December 31, 2017 and 2016, assuming the acquisition was completed as of January 1, 2017 and 2016, respectively:

	Years Ended December 31,
	2017		2016
	(In thousands, except per share data)
Total interest income	$	610,697	$	538,258
Total non-interest income		107,179		95,555
Net income available to all shareholders		143,979		206,081
Basic earnings per common share	$	0.79	$	1.20
Diluted earnings per common share		0.79		1.20

The unaudited pro-forma consolidated financial information is presented for illustrative purposes only and does not indicate the financial results of the combined company had the companies actually been combined at the beginning of the period presented and had the impact of possible significant revenue enhancements and expense efficiencies from in-market cost savings, among other factors, been considered and, accordingly, does not attempt to predict or suggest future results. It also does not necessarily reflect what the historical results of the combined company would have been had the companies been combined during this period.

Acquisition of The Bank of Commerce

On February 28, 2017, the Company completed its acquisition of all of the issued and outstanding shares of common stock of The Bank of Commerce (“BOC”), a Florida state-chartered bank that operated in the Sarasota, Florida area, pursuant to an acquisition agreement, dated December 1, 2016, by and between HBI and Bank of Commerce Holdings, Inc. (“BCHI”), parent company of BOC. The Company merged BOC with and into Centennial effective as of the close of business on February 28, 2017.

The acquisition of BOC was conducted in accordance with the provisions of Section 363 of the United States Bankruptcy Code (the “Bankruptcy Code”) pursuant to a voluntary petition for relief under Chapter 11 of the Bankruptcy Code filed by BCHI with the United States Bankruptcy Court for the Middle District of Florida (the “Bankruptcy Court”). The sale of BOC by BCHI was subject to certain bidding procedures approved by the Bankruptcy Court, under which the Company submitted an initial bid to purchase the outstanding shares of BOC and was deemed to be the successful bidder after a subsequent auction was held. The Bankruptcy Court entered a final order on December 9, 2016 approving the sale of BOC to the Company pursuant to and in accordance with the acquisition agreement.

Under the terms of the acquisition agreement, the Company paid an aggregate of approximately $4.2 million in cash for the acquisition, which included the purchase of all outstanding shares of BOC common stock, the discounted purchase of certain subordinated debentures issued by BOC from the existing holders of the subordinated debentures, and an expense reimbursement to BCHI for approved administrative claims in connection with the bankruptcy proceeding.

BOC formerly operated three branch locations in the Sarasota, Florida area. Including the effects of the purchase accounting adjustments, as of acquisition date, BOC had approximately $178.1 million in total assets, $118.5 million in loans after $5.8 million of loan discounts, and $139.8 million in deposits.

The Company has determined that the acquisition of the net assets of BOC constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. The following schedule is a breakdown of the assets acquired and liabilities assumed as of the acquisition date:

	The Bank of Commerce
	Acquired from BOC			Fair Value Adjustments			As Recorded by HBI
	(Dollars in thousands)
Assets
Cash and due from banks	$	4,610		$	—		$	4,610
Interest-bearing deposits with other banks		14,360			—			14,360
Investment securities		25,926			(113	)		25,813
Loans receivable		124,289			(5,751	)		118,538
Allowance for loan losses		(2,037	)		2,037			—
Loans receivable, net		122,252			(3,714	)		118,538
Bank premises and equipment, net		1,887			—			1,887
Foreclosed assets held for sale		8,523			(3,165	)		5,358
Accrued interest receivable		481			—			481
Deferred tax asset, net		—			4,198			4,198
Core deposit intangible		—			968			968
Other assets		1,880			—			1,880
Total assets acquired	$	179,919		$	(1,826	)	$	178,093
Liabilities
Deposits
Demand and non-interest-bearing	$	27,245		$	—		$	27,245
Savings and interest-bearing transaction accounts		32,300			—			32,300
Time deposits		79,945			270			80,215
Total deposits		139,490			270			139,760
FHLB borrowed funds		30,000			42			30,042
Accrued interest payable and other liabilities		564			(255	)		309
Total liabilities assumed	$	170,054		$	57			170,111
Net assets acquired								7,982
Purchase price								4,175
Pre-tax gain on acquisition							$	3,807

The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above:

Cash and due from banks and interest-bearing deposits with other banks – The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets.

Investment securities – Investment securities were acquired from BOC with an $113,000 adjustment to market value based upon quoted market prices.

Loans – Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and current discount rates. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns.

The Company evaluated $106.8 million of the loans purchased in conjunction with the acquisition in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs, which were recorded with a $3.0 million discount. As a result, the fair value discount on these loans is being accreted into interest income over the weighted-average life of the loans using a constant yield method. The remaining $17.5 million of loans evaluated were considered purchased credit impaired loans within the provisions of FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and were recorded with a $2.8 million discount. These purchase credit impaired loans will recognize interest income through accretion of the difference between the carrying amount of the loans and the expected cash flows.

Bank premises and equipment – Bank premises and equipment were acquired from BOC at market value.

Foreclosed assets held for sale – These assets are presented at the estimated fair values that management expects to receive when the properties are sold, net of related costs to sell.

Accrued interest receivable – Accrued interest receivable was acquired from BOC at market value.

Deferred tax asset – The current and deferred income tax assets and liabilities are recorded to reflect the differences in the carrying values of the acquired assets and assumed liabilities for financial reporting purposes and the cost basis for federal income tax purposes, at the Company’s statutory federal and state income tax rate which was 39.225% at the time of acquisition.

Core deposit intangible – This intangible asset represents the value of the relationships that BOC had with its deposit customers. The fair value of this intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base, and the net maintenance cost attributable to customer deposits. The Company recorded $968,000 of core deposit intangible.

Deposits – The fair values used for the demand and savings deposits that comprise the transaction accounts acquired, by definition equal the amount payable on demand at the acquisition date. The $270,000 fair value adjustment applied for time deposits was because the weighted-average interest rate of BOC’s certificates of deposits was estimated to be above the current market rates.

FHLB borrowed funds – The fair value of FHLB borrowed funds is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

Accrued interest payable and other liabilities – The fair value used represents the adjustment of certain estimated liabilities from BOC.

The Company’s operating results for the period ended December 31, 2017, include the operating results of the acquired assets and assumed liabilities subsequent to the acquisition date. Due to the fair value adjustments recorded and the fact BOC total assets acquired are less than 5% of total assets as of December 31, 2017 excluding BOC as recorded by HBI as of acquisition date, historical results are not believed to be material to the Company’s results, and thus no pro-forma information is presented.

Acquisition of Giant Holdings, Inc.

On February 23, 2017, the Company completed its acquisition of Giant Holdings, Inc. (“GHI”), parent company of Landmark Bank, N.A. (“Landmark”), pursuant to a definitive agreement and plan of merger whereby GHI merged with and into HBI and, immediately thereafter, Landmark merged with and into Centennial. The Company paid a purchase price to the GHI shareholders of approximately $96.0 million for the GHI acquisition. Under the terms of the agreement, shareholders of GHI received 2,738,038 shares of the Company’s common stock valued at approximately $77.5 million as of February 23, 2017, plus approximately $18.5 million in cash in exchange for all outstanding shares of GHI common stock.

GHI formerly operated six branch locations in the Ft. Lauderdale, Florida area. Including the effects of the purchase accounting adjustments, as of acquisition date, GHI had approximately $398.1 million in total assets, $327.8 million in loans after $8.1 million of loan discounts, and $304.0 million in deposits.

The Company has determined that the acquisition of the net assets of GHI constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change. The following schedule is a breakdown of the assets acquired and liabilities assumed as of the acquisition date:

	Giant Holdings, Inc.
	Acquired from GHI			Fair Value Adjustments			As Recorded by HBI
	(Dollars in thousands)
Assets
Cash and due from banks	$	41,019		$	—		$	41,019
Interest-bearing deposits with other banks		4,057			1			4,058
Investment securities		1,961			(5	)		1,956
Loans receivable		335,886			(6,517	)		329,369
Allowance for loan losses		(4,568	)		4,568			—
Loans receivable, net		331,318			(1,949	)		329,369
Bank premises and equipment, net		2,111			608			2,719
Cash value of life insurance		10,861			—			10,861
Accrued interest receivable		850			—			850
Deferred tax asset, net		2,286			1,807			4,093
Core deposit and other intangibles		172			3,238			3,410
Other assets		254			(489	)		(235	)
Total assets acquired	$	394,889		$	3,211		$	398,100
Liabilities
Deposits
Demand and non-interest-bearing	$	75,993		$	—		$	75,993
Savings and interest-bearing transaction accounts		139,459			—			139,459
Time deposits		88,219			324			88,543
Total deposits		303,671			324			303,995
FHLB borrowed funds		26,047			431			26,478
Accrued interest payable and other liabilities		14,552			18			14,570
Total liabilities assumed		344,270			773			345,043
Equity
Total equity assumed		50,619			(50,619	)		—
Total liabilities and equity assumed	$	394,889		$	(49,846	)		345,043
Net assets acquired								53,057
Purchase price								96,015
Goodwill							$	42,958

The following is a description of the methods used to determine the fair values of significant assets and liabilities presented above:

Cash and due from banks and interest-bearing deposits with other banks – The carrying amount of these assets is a reasonable estimate of fair value based on the short-term nature of these assets.

Investment securities – Investment securities were acquired from GHI with an approximately $5,000 adjustment to market value based upon quoted market prices.

Loans – Fair values for loans were based on a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, term of loan and whether or not the loan was amortizing, and current discount rates. The discount rates used for loans are based on current market rates for new originations of comparable loans and include adjustments for liquidity concerns.

The Company evaluated $315.6 million of the loans purchased in conjunction with the acquisition in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs, which were recorded with a $3.6 million discount. As a result, the fair value discount on these loans is being accreted into interest income over the weighted-average life of the loans using a constant yield method. The remaining $20.3 million of loans evaluated were considered purchased credit impaired loans within the provisions of FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and were recorded with a $4.5 million discount. These purchase credit impaired loans will recognize interest income through accretion of the difference between the carrying amount of the loans and the expected cash flows. The acquired GHI loan balance includes $1.6 million of discount on purchased loans.

Bank premises and equipment – Bank premises and equipment were acquired from GHI with a $608,000 adjustment to market value. This represents the difference between current appraisals completed in connection with the acquisition and book value acquired.

Cash value of life insurance – Cash value of life insurance was acquired from GHI at market value.

Accrued interest receivable – Accrued interest receivable was acquired from GHI at market value.

Deferred tax asset – The current and deferred income tax assets and liabilities are recorded to reflect the differences in the carrying values of the acquired assets and assumed liabilities for financial reporting purposes and the cost basis for federal income tax purposes, at the Company’s statutory federal and state income tax rate which was 39.225% at the time of acquisition.

Core deposit intangible – This intangible asset represents the value of the relationships that GHI had with its deposit customers. The fair value of this intangible asset was estimated based on a discounted cash flow methodology that gave appropriate consideration to expected customer attrition rates, cost of the deposit base, and the net maintenance cost attributable to customer deposits. The Company recorded $3.4 million of core deposit intangible.

Deposits – The fair values used for the demand and savings deposits that comprise the transaction accounts acquired, by definition equal the amount payable on demand at the acquisition date. The $324,000 fair value adjustment applied for time deposits was because the weighted-average interest rate of GHI’s certificates of deposits was estimated to be above the current market rates.

FHLB borrowed funds – The fair value of FHLB borrowed funds is estimated based on borrowing rates currently available to the Company for borrowings with similar terms and maturities.

Accrued interest payable and other liabilities – The fair value used represents the adjustments of certain estimated liabilities from GHI.

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Investment Securities

9 Months Ended

Sep. 30, 2018

Text Block [Abstract]

Investment Securities

3. Investment Securities

The amortized cost and estimated fair value of investment securities that are classified as available-for-sale and held-to-maturity are as follows:

	September 30, 2018
	Available-for-Sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	427,722	$	138	$	(7,985	)	$	419,875
Residential mortgage-backed securities		533,106		294		(15,386	)		518,014
Commercial mortgage-backed securities		478,409		87		(14,636	)		463,860
State and political subdivisions		311,117		1,235		(6,202	)		306,150
Other securities		35,554		1,160		(183	)		36,531
Total	$	1,785,908	$	2,914	$	(44,392	)	$	1,744,430

	Held-to-Maturity
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	3,587	$	—	$	(87	)	$	3,500
Residential mortgage-backed securities		47,670		23		(1,395	)		46,298
Commercial mortgage-backed securities		12,705		—		(370	)		12,335
State and political subdivisions		135,304		1,368		(253	)		136,419
Total	$	199,266	$	1,391	$	(2,105	)	$	198,552

	December 31, 2017
	Available-for-Sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	407,387	$	899	$	(1,982	)	$	406,304
Residential mortgage-backed securities		481,981		538		(4,919	)		477,600
Commercial mortgage-backed securities		497,870		332		(4,430	)		493,772
State and political subdivisions		247,292		3,783		(774	)		250,301
Other securities		34,617		1,225		(302	)		35,540
Total	$	1,669,147	$	6,777	$	(12,407	)	$	1,663,517

	Held-to-Maturity
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	5,791	$	15	$	(15	)	$	5,791
Residential mortgage-backed securities		56,982		107		(402	)		56,687
Commercial mortgage-backed securities		16,625		114		(40	)		16,699
State and political subdivisions		145,358		3,031		(27	)		148,362
Total	$	224,756	$	3,267	$	(484	)	$	227,539

Assets, principally investment securities, having a carrying value of approximately $1.17 billion and $1.18 billion at September 30, 2018 and December 31, 2017, respectively, were pledged to secure public deposits and for other purposes required or permitted by law. Also, investment securities pledged as collateral for repurchase agreements totaled approximately $142.1 million and $147.8 million at September 30, 2018 and December 31, 2017, respectively.

The amortized cost and estimated fair value of securities classified as available-for-sale and held-to-maturity at September 30, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	188,664	$	185,303	$	64,821	$	65,527
Due after one year through five years		997,039		975,767		89,950		89,016
Due after five years through ten years		468,969		455,579		11,773		11,472
Due after ten years		131,236		127,781		32,722		32,537
Total	$	1,785,908	$	1,744,430	$	199,266	$	198,552

For purposes of the maturity tables, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on anticipated maturities. The mortgage-backed securities may mature earlier than their weighted-average contractual maturities because of principal prepayments.

During the three-month period ended September 30, 2018, approximately $1.4 million in available-for-sale securities were sold. During nine-month period ended September 30, 2018, approximately $2.1 million in available-for-sale securities were sold. There were no realized gains or losses recorded on the sales for the three and nine-month periods ended September 30, 2018. The income tax expense/benefit to net security gains and losses was 26.135% of the gross amounts.

During the three and nine-month periods ended September 30, 2017, approximately $234,000 and $27.4 million, respectively, in available-for-sale securities were sold. The gross realized gains on the sale for the three-month period ended September 30, 2017 totaled approximately $136,000. The gross realized gains and losses on the sales for the nine-month period ended September 30, 2017 totaled approximately $1.1 million and $127,000, respectively. The income tax expense/benefit to net security gains and losses was 39.225% of the gross amounts.

During the three-month and nine-month periods ended September 30, 2018, no held-to-maturity securities were sold. During the nine-month period ended September 30, 2017, one held-to-maturity security experienced its second downgrade in its credit rating. The Company made a strategic decision to sell this held-to-maturity security for approximately $483,000, which resulted in a gross realized loss on the sale for the nine-month period ended September 30, 2017 of approximately $7,000.

The Company evaluates all securities quarterly to determine if any unrealized losses are deemed to be other than temporary. In completing these evaluations, the Company follows the requirements of FASB ASC 320, Investments—Debt and Equity Securities. Certain investment securities are valued less than their historical cost. These declines are primarily the result of the rate for these investments yielding less than current market rates. Based on evaluation of available evidence, management believes the declines in fair value for these securities are temporary. The Company does not intend to sell or believe it will be required to sell these investments before recovery of their amortized cost basis, which may be maturity. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced, and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified.

During the three and nine-month periods ended September 30, 2018, no securities were deemed to have other-than-temporary impairment.

At September 30, 2018, the Company had investment securities with approximately $26.9 million in unrealized losses, which have been in continuous loss positions for more than twelve months. Excluding impairment write downs taken in prior periods, the Company’s assessments indicated that the cause of the market depreciation was primarily the change in interest rates and not the issuer’s financial condition, or downgrades by rating agencies. In addition, approximately 67.7% of the Company’s investment portfolio matures in five years or less. As a result, the Company has the ability and intent to hold such securities until maturity.

The following shows gross unrealized losses and estimated fair value of investment securities classified as available-for-sale and held-to-maturity with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
U.S. government-sponsored enterprises	$	253,980	$	(3,686	)	$	135,156	$	(4,386	)	$	389,136	$	(8,072	)
Residential mortgage-backed securities		212,531		(4,745	)		315,803		(12,036	)		528,334		(16,781	)
Commercial mortgage-backed securities		233,726		(6,738	)		226,854		(8,268	)		460,580		(15,006	)
State and political subdivisions		174,397		(4,385	)		42,238		(2,070	)		216,635		(6,455	)
Other securities		—		—			9,792		(183	)		9,792		(183	)
Total	$	874,634	$	(19,554	)	$	729,843	$	(26,943	)	$	1,604,477	$	(46,497	)

	December 31, 2017
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
U.S. government-sponsored enterprises	$	234,213	$	(1,288	)	$	40,122	$	(709	)	$	274,335	$	(1,997	)
Residential mortgage-backed securities		389,541		(3,656	)		99,989		(1,665	)		489,530		(5,321	)
Commercial mortgage-backed securities		314,301		(2,343	)		120,365		(2,127	)		434,666		(4,470	)
State and political subdivisions		41,299		(331	)		20,980		(470	)		62,279		(801	)
Other securities		—		—			9,852		(302	)		9,852		(302	)
Total	$	979,354	$	(7,618	)	$	291,308	$	(5,273	)	$	1,270,662	$	(12,891	)

Income earned on securities for the three and nine months ended September 30, 2018 and 2017, is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Taxable:	(In thousands)
Available-for-sale	$	8,578	$	6,527	$	25,571	$	17,001
Held-to-maturity		433		544		1,389		1,982
Non-taxable:
Available-for-sale		2,205		1,627		6,006		4,757
Held-to-maturity		1,222		1,405		3,795		4,185
Total	$	12,438	$	10,103	$	36,761	$	27,925

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Loans Receivable

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Loans Receivable

4. Loans Receivable

The various categories of loans receivable are summarized as follows:

	September 30, 2018		December 31, 2017
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	4,685,827	$	4,600,117
Construction/land development		1,550,910		1,700,491
Agricultural		72,930		82,229
Residential real estate loans
Residential 1-4 family		1,982,666		1,970,311
Multifamily residential		608,608		441,303
Total real estate		8,900,941		8,794,451
Consumer		428,192		46,148
Commercial and industrial		1,303,841		1,297,397
Agricultural		58,644		49,815
Other		141,197		143,377
Total loans receivable	$	10,832,815	$	10,331,188

During the three and nine-month periods ended September 30, 2018, the Company sold $836,000 and $7.4 million, respectively, of the guaranteed portion of certain SBA loans, which resulted in a gain of approximately $47,000 and $491,000, respectively. During the three and nine-month periods ended September 30, 2017, the Company sold $3.1 million and $12.9 million, respectively, of the guaranteed portion of certain SBA loans, which resulted in a gain of approximately $163,000 and $738,000, respectively.

Mortgage loans held for sale of approximately $39.9 million and $44.3 million at September 30, 2018 and December 31, 2017, respectively, are included in residential 1-4 family loans. Mortgage loans held for sale are carried at the lower of cost or fair value, determined using an aggregate basis. Gains and losses resulting from sales of mortgage loans are recognized when the respective loans are sold to investors. Gains and losses are determined by the difference between the selling price and the carrying amount of the loans sold, net of discounts collected or paid. The Company obtains forward commitments to sell mortgage loans to reduce market risk on mortgage loans in the process of origination and mortgage loans held for sale. The forward commitments acquired by the Company for mortgage loans in process of origination are considered mandatory forward commitments. Because these commitments are structured on a mandatory basis, the Company is required to substitute another loan or to buy back the commitment if the original loan does not fund. These commitments are derivative instruments and their fair values at September 30, 2018 and December 31, 2017 were not material.

The Company had $3.08 billion of purchased loans, which includes $120.8 million of discount for credit losses on purchased loans, at September 30, 2018. The Company had $40.5 million and $80.3 million remaining of non-accretable discount for credit losses on purchased loans and accretable discount for credit losses on purchased loans, respectively, as of September 30, 2018. The Company had $3.46 billion of purchased loans, which includes $146.6 million of discount for credit losses on purchased loans, at December 31, 2017. The Company had $51.9 million and $94.7 million remaining of non-accretable discount for credit losses on purchased loans and accretable discount for credit losses on purchased loans, respectively, as of December 31, 2017.

A description of our accounting policies for loans, impaired loans, non-accrual loans and allowance for loan losses are set forth in our 2017 Form 10-K filed with the SEC on February 27, 2018. There have been no significant changes to these policies since December 31, 2017.

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Allowance for Loan Losses, Credit Quality and Other

9 Months Ended

Sep. 30, 2018

Text Block [Abstract]

Allowance for Loan Losses, Credit Quality and Other

5. Allowance for Loan Losses, Credit Quality and Other

The Company’s allowance for loan loss as of September 30, 2018 and December 31, 2017 was significantly impacted by Hurricane Irma which made initial landfall in the Florida Keys and a second landfall just south of Naples, Florida, as a Category 4 hurricane on September 10, 2017. Based on initial assessments of the potential credit impact and damage to the approximately $2.41 billion in legacy loans receivable we have in the disaster area, the Company established a $32.9 million storm-related provision for loan losses as of December 31, 2017. As of September 30, 2018, charge-offs of $2.5 million have been taken against the storm-related provision for loan losses.

The following table presents a summary of changes in the allowance for loan losses:

	Nine Months Ended September 30, 2018
Allowance for loan losses:	(In thousands)
Beginning balance	$	110,266
Loans charged off		(7,173	)
Recoveries of loans previously charged off		2,776
Net loans recovered (charged off)		(4,397	)
Provision for loan losses		4,322
Balance, September 30, 2018	$	110,191

The following tables present the balance in the allowance for loan losses for the three and nine-month period ended September 30, 2018, and the allowance for loan losses and recorded investment in loans based on portfolio segment by impairment method as of September 30, 2018. Allocation of a portion of the allowance to one type of loans does not preclude its availability to absorb losses in other categories.

	Three Months Ended September 30, 2018
	Construction/ Land Development			Other Commercial Real Estate			Residential Real Estate			Commercial & Industrial			Consumer & Other			Unallocated		Total
Allowance for loan losses:	(In thousands)
Beginning balance	$	20,243		$	45,985		$	24,205		$	16,193		$	3,518		$	1,372	$	111,516
Loans charged off		(337	)		(144	)		(608	)		(744	)		(668	)		—		(2,501	)
Recoveries of loans previously charged off		90			195			309			251			331			—		1,176
Net loans recovered (charged off)		(247	)		51			(299	)		(493	)		(337	)		—		(1,325	)
Provision for loan losses		(982	)		(683	)		193			(1,923	)		479			2,916		—
Balance, September 30	$	19,014		$	45,353		$	24,099		$	13,777		$	3,660		$	4,288	$	110,191

	Nine Months Ended September 30, 2018
	Construction/ Land Development			Other Commercial Real Estate			Residential Real Estate			Commercial & Industrial			Consumer & Other			Unallocated		Total
Allowance for loan losses:	(In thousands)
Beginning balance	$	20,343		$	43,939		$	24,506		$	15,292		$	3,334		$	2,852	$	110,266
Loans charged off		(399	)		(981	)		(2,339	)		(1,816	)		(1,638	)		—		(7,173	)
Recoveries of loans previously charged off		209			383			844			568			772			—		2,776
Net loans recovered (charged off)		(190	)		(598	)		(1,495	)		(1,248	)		(866	)		—		(4,397	)
Provision for loan losses		(1,139	)		2,012			1,088			(267	)		1,192			1,436		4,322
Balance, September 30	$	19,014		$	45,353		$	24,099		$	13,777		$	3,660		$	4,288	$	110,191

	As of September 30, 2018
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Unallocated		Total
Allowance for loan losses:	(In thousands)
Period end amount allocated to:
Loans individually evaluated for impairment	$	854	$	533	$	115	$	9	$	—	$	—	$	1,511
Loans collectively evaluated for impairment		18,150		44,590		23,355		13,672		3,660		4,288		107,715
Loans evaluated for impairment balance, September 30		19,004		45,123		23,470		13,681		3,660		4,288		109,226
Purchased credit impaired loans		10		230		629		96		—		—		965
Balance, September 30	$	19,014	$	45,353	$	24,099	$	13,777	$	3,660	$	4,288	$	110,191
Loans receivable:
Period end amount allocated to:
Loans individually evaluated for impairment	$	14,876	$	60,572	$	19,933	$	30,716	$	2,064	$	—	$	128,161
Loans collectively evaluated for impairment		1,526,689		4,613,352		2,534,630		1,256,796		623,747		—		10,555,214
Loans evaluated for impairment balance, September 30		1,541,565		4,673,924		2,554,563		1,287,512		625,811		—		10,683,375
Purchased credit impaired loans		9,345		84,833		36,711		16,329		2,222		—		149,440
Balance, September 30	$	1,550,910	$	4,758,757	$	2,591,274	$	1,303,841	$	628,033	$	—	$	10,832,815

The following tables present the balances in the allowance for loan losses for the nine-month period ended September 30, 2017 and the year ended December 31, 2017, and the allowance for loan losses and recorded investment in loans receivable based on portfolio segment by impairment method as of December 31, 2017. Allocation of a portion of the allowance to one type of loans does not preclude its availability to absorb losses in other categories.

	Year Ended December 31, 2017
	Construction/ Land Development			Other Commercial Real Estate			Residential Real Estate			Commercial & Industrial			Consumer & Other			Unallocated			Total
Allowance for loan losses:	(In thousands)
Beginning balance	$	11,522		$	28,188		$	16,517		$	12,756		$	4,188		$	6,831		$	80,002
Loans charged off		(326	)		(1,655	)		(2,288	)		(779	)		(1,063	)		—			(6,111	)
Recoveries of loans previously charged off		227			710			254			252			503			—			1,946
Net loans recovered (charged off)		(99	)		(945	)		(2,034	)		(527	)		(560	)		—			(4,165	)
Provision for loan losses		1,419			600			3,232			599			(565	)		(984	)		4,301
Balance, September 30		12,842			27,843			17,715			12,828			3,063			5,847			80,138
Loans charged off		(1,306	)		(2,094	)		(1,692	)		(4,799	)		(1,469	)		—			(11,360	)
Recoveries of loans previously charged off		235			332			422			212			338			—			1,539
Net loans recovered (charged off)		(1,071	)		(1,762	)		(1,270	)		(4,587	)		(1,131	)		—			(9,821	)
Provision for loan losses		8,572			17,858			8,061			7,051			1,402			(2,995	)		39,949
Balance, December 31	$	20,343		$	43,939		$	24,506		$	15,292		$	3,334		$	2,852		$	110,266

	As of December 31, 2017
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Unallocated		Total
Allowance for loan losses:	(In thousands)
Period end amount allocated to:
Loans individually evaluated for impairment	$	1,378	$	768	$	188	$	843	$	7	$	—	$	3,184
Loans collectively evaluated for impairment		18,954		42,824		23,341		14,290		3,310		2,852		105,571
Loans evaluated for impairment balance, December 31		20,332		43,592		23,529		15,133		3,317		2,852		108,755
Purchased credit impaired loans		11		347		977		159		17		—		1,511
Balance, December 31	$	20,343	$	43,939	$	24,506	$	15,292	$	3,334	$	2,852	$	110,266
Loans receivable:
Period end amount allocated to:
Loans individually evaluated for impairment	$	26,860	$	124,124	$	20,431	$	21,867	$	500	$	—	$	193,782
Loans collectively evaluated for impairment		1,658,519		4,442,201		2,341,081		1,261,161		236,392		—		9,939,354
Loans evaluated for impairment balance, December 31		1,685,379		4,566,325		2,361,512		1,283,028		236,892		—		10,133,136
Purchased credit impaired loans		15,112		116,021		50,102		14,369		2,448		—		198,052
Balance, December 31	$	1,700,491	$	4,682,346	$	2,411,614	$	1,297,397	$	239,340	$	—	$	10,331,188

The following is an aging analysis for loans receivable as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	6,496	$	4,411	$	22,628	$	33,535	$	4,652,292	$	4,685,827	$	11,405
Construction/land development		803		584		8,517		9,904		1,541,006		1,550,910		3,551
Agricultural		—		—		30		30		72,900		72,930		—
Residential real estate loans
Residential 1-4 family		9,141		2,441		15,821		27,403		1,955,263		1,982,666		1,509
Multifamily residential		482		—		983		1,465		607,143		608,608		—
Total real estate		16,922		7,436		47,979		72,337		8,828,604		8,900,941		16,465
Consumer		784		73		2,004		2,861		425,331		428,192		1,796
Commercial and industrial		4,868		384		6,449		11,701		1,292,140		1,303,841		2,006
Agricultural and other		1,260		23		33		1,316		198,525		199,841		—
Total	$	23,834	$	7,916	$	56,465	$	88,215	$	10,744,600	$	10,832,815	$	20,267

	December 31, 2017
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	6,331	$	1,480	$	12,719	$	20,530	$	4,579,587	$	4,600,117	$	3,119
Construction/land development		834		13		8,258		9,105		1,691,386		1,700,491		3,247
Agricultural		—		221		19		240		81,989		82,229		—
Residential real estate loans
Residential 1-4 family		9,066		2,013		16,612		27,691		1,942,620		1,970,311		2,175
Multifamily residential		—		—		253		253		441,050		441,303		100
Total real estate		16,231		3,727		37,861		57,819		8,736,632		8,794,451		8,641
Consumer		252		51		171		474		45,674		46,148		26
Commercial and industrial		2,073		1,030		6,528		9,631		1,287,766		1,297,397		1,944
Agricultural and other		288		113		137		538		192,654		193,192		54
Total	$	18,844	$	4,921	$	44,697	$	68,462	$	10,262,726	$	10,331,188	$	10,665

Non-accruing loans at September 30, 2018 and December 31, 2017 were $36.2 million and $34.0 million, respectively.

The following is a summary of the impaired loans as of September 30, 2018 and December 31, 2017:

	September 30, 2018
							Three Months Ended				Nine Months Ended
	Unpaid Contractual Principal Balance		Total Recorded Investment		Allocation of Allowance for Loan Losses		Average Recorded Investment		Interest Recognized		Average Recorded Investment		Interest Recognized
Loans without a specific valuation allowance	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	44	$	44	$	—	$	36	$	1	$	33	$	2
Construction/land development		18		18		—		18		—		30		1
Agricultural		13		13		—		14		—		16		1
Residential real estate loans
Residential 1-4 family		286		286		—		237		5		186		14
Multifamily residential		—		—		—		—		—		—		—
Total real estate		361		361		—		305		6		265		18
Consumer		27		28		—		29		1		23		2
Commercial and industrial		202		202		—		225		3		189		8
Agricultural and other		—		—		—		—		—		—		—
Total loans without a specific valuation allowance		590		591		—		559		10		477		28
Loans with a specific valuation allowance
Real estate:
Commercial real estate loans
Non-farm/non-residential		41,299		37,365		524		37,770		375		33,965		1,107
Construction/land development		13,509		12,446		854		12,614		75		12,398		234
Agricultural		299		303		9		410		4		412		14
Residential real estate loans
Residential 1-4 family		19,248		17,241		67		17,678		51		18,639		429
Multifamily residential		2,405		2,405		48		2,561		16		2,116		66
Total real estate		76,760		69,760		1,502		71,033		521		67,530		1,850
Consumer		2,245		2,003		—		1,092		24		638		42
Commercial and industrial		10,269		6,619		9		8,276		35		11,361		223
Agricultural and other		33		33		—		103		—		174		3
Total loans with a specific valuation allowance		89,307		78,415		1,511		80,504		580		79,703		2,118
Total impaired loans
Real estate:
Commercial real estate loans
Non-farm/non-residential		41,343		37,409		524		37,806		376		33,998		1,109
Construction/land development		13,527		12,464		854		12,632		75		12,428		235
Agricultural		312		316		9		424		4		428		15
Residential real estate loans
Residential 1-4 family		19,534		17,527		67		17,915		56		18,825		443
Multifamily residential		2,405		2,405		48		2,561		16		2,116		66
Total real estate		77,121		70,121		1,502		71,338		527		67,795		1,868
Consumer		2,272		2,031		—		1,121		25		661		44
Commercial and industrial		10,471		6,821		9		8,501		38		11,550		231
Agricultural and other		33		33		—		103		—		174		3
Total impaired loans	$	89,897	$	79,006	$	1,511	$	81,063	$	590	$	80,180	$	2,146

Note: Purchased credit impaired loans are accounted for on a pooled basis under ASC 310-30. All of these pools are currently considered to be performing, resulting in none of the purchased credit impaired loans being classified as impaired loans as of September 30, 2018.

	December 31, 2017
							Year Ended
	Unpaid Contractual Principal Balance		Total Recorded Investment		Allocation of Allowance for Loan Losses		Average Recorded Investment		Interest Recognized
Loans without a specific valuation allowance	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	29	$	29	$	—	$	23	$	2
Construction/land development		64		64		—		31		3
Agricultural		19		—		—		—		1
Residential real estate loans
Residential 1-4 family		115		115		—		135		7
Multifamily residential		—		—		—		—		—
Total real estate		227		208		—		189		13
Consumer		18		—		—		—		1
Commercial and industrial		105		105		—		85		7
Agricultural and other		—		—		—		—		—
Total loans without a specific valuation allowance		350		313		—		274		21
Loans with a specific valuation allowance
Real estate:
Commercial real estate loans
Non-farm/non-residential		29,666		29,040		757		41,772		1,498
Construction/land development		12,976		12,157		1,378		10,556		262
Agricultural		281		303		11		268		11
Residential real estate loans
Residential 1-4 family		19,770		18,689		124		22,347		363
Multifamily residential		1,627		1,627		64		1,412		81
Total real estate		64,320		61,816		2,334		76,355		2,215
Consumer		179		191		—		163		—
Commercial and industrial		16,777		13,007		843		9,726		121
Agricultural and other		297		309		7		644		8
Total loans with a specific valuation allowance		81,573		75,323		3,184		86,888		2,344
Total impaired loans
Real estate:
Commercial real estate loans
Non-farm/non-residential		29,695		29,069		757		41,795		1,500
Construction/land development		13,040		12,221		1,378		10,587		265
Agricultural		300		303		11		268		12
Residential real estate loans
Residential 1-4 family		19,885		18,804		124		22,482		370
Multifamily residential		1,627		1,627		64		1,412		81
Total real estate		64,547		62,024		2,334		76,544		2,228
Consumer		197		191		—		163		1
Commercial and industrial		16,882		13,112		843		9,811		128
Agricultural and other		297		309		7		644		8
Total impaired loans	$	81,923	$	75,636	$	3,184	$	87,162	$	2,365

Note: Purchased credit impaired loans are accounted for on a pooled basis under ASC 310-30. All of these pools are currently considered to be performing resulting in none of the purchased credit impaired loans being classified as impaired loans as of December 31, 2017.

Interest recognized on impaired loans during the three months ended September 30, 2018 and 2017 was approximately $590,000 and $957,000, respectively. Interest recognized on impaired loans during the nine months ended September 30, 2018 and 2017 was approximately $2.1 million and $2.0 million, respectively. The amount of interest recognized on impaired loans on the cash basis is not materially different than the accrual basis.

Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to (i) the risk rating of loans, (ii) the level of classified loans, (iii) net charge-offs, (iv) non-performing loans and (v) the general economic conditions in Arkansas, Florida, Alabama and New York.

The Company utilizes a risk rating matrix to assign a risk rating to each of its loans. Loans are rated on a scale from 1 to 8. Descriptions of the general characteristics of the 8 risk ratings are as follows:

• Risk rating 1 – Excellent. Loans in this category are to persons or entities of unquestionable financial strength, a highly liquid financial position, with collateral that is liquid and well margined. These borrowers have performed without question on past obligations, and the Bank expects their performance to continue. Internally generated cash flow covers current maturities of long-term debt by a substantial margin. Loans secured by bank certificates of deposit and savings accounts, with appropriate holds placed on the accounts, are to be rated in this category.

• Risk rating 2 – Good. These are loans to persons or entities with strong financial condition and above-average liquidity that have previously satisfactorily handled their obligations with the Bank. Collateral securing the Bank’s debt is margined in accordance with policy guidelines. Internally generated cash flow covers current maturities of long-term debt more than adequately. Unsecured loans to individuals supported by strong financial statements and on which repayment is satisfactory may be included in this classification.

• Risk rating 3 – Satisfactory. Loans to persons or entities with an average financial condition, adequate collateral margins, adequate cash flow to service long-term debt, and net worth comprised mainly of fixed assets are included in this category. These entities are minimally profitable now, with projections indicating continued profitability into the foreseeable future. Closely held corporations or businesses where a majority of the profits are withdrawn by the owners or paid in dividends are included in this rating category. Overall, these loans are basically sound.

• Risk rating 4 – Watch. Borrowers who have marginal cash flow, marginal profitability or have experienced an unprofitable year and a declining financial condition characterize these loans. The borrower has in the past satisfactorily handled debts with the Bank, but in recent months has either been late, delinquent in making payments, or made sporadic payments. While the Bank continues to be adequately secured, margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement and repayment capacity, but with collateral that appears to limit exposure. Included in this category are loans to borrowers in industries that are experiencing elevated risk.

• Risk rating 5 – Other Loans Especially Mentioned (“OLEM”). A loan criticized as OLEM has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution’s credit position at some future date. OLEM assets are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification.

• Risk rating 6 – Substandard. A loan classified as substandard is inadequately protected by the sound worth and paying capacity of the borrower or the collateral pledged. Loss potential, while existing in the aggregate amount of substandard loans, does not have to exist in individual assets.

• Risk rating 7 – Doubtful. A loan classified as doubtful has all the weaknesses inherent in a loan classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. These are poor quality loans in which neither the collateral, if any, nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time; in fact, there is permanent impairment in the collateral securing the loan.

• Risk rating 8 – Loss. Assets classified as loss are considered uncollectible and of such little value that the continuance as bankable assets is not warranted. This classification does not mean that the asset has absolutely no recovery or salvage value, but rather, it is not practical or desirable to defer writing off this basically worthless asset, even though partial recovery may occur in the future. This classification is based upon current facts, not probabilities. Assets classified as loss should be charged-off in the period in which they became uncollectible.

The Company’s classified loans include loans in risk ratings 6, 7 and 8. The following is a presentation of classified loans (excluding loans accounted for under ASC Topic 310-30) by class as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Risk Rated 6		Risk Rated 7		Risk Rated 8		Classified Total
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	41,424	$	484	$	—	$	41,908
Construction/land development		14,502		860		—		15,362
Agricultural		315		3		—		318
Residential real estate loans
Residential 1-4 family		23,782		253		—		24,035
Multifamily residential		983		—		—		983
Total real estate		81,006		1,600		—		82,606
Consumer		1,117		1		—		1,118
Commercial and industrial		11,237		881		—		12,118
Agricultural and other		50		—		—		50
Total risk rated loans	$	93,410	$	2,482	$	—	$	95,892

	December 31, 2017
	Risk Rated 6		Risk Rated 7		Risk Rated 8		Classified Total
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	20,933	$	518	$	—	$	21,451
Construction/land development		24,013		204		—		24,217
Agricultural		321		—		—		321
Residential real estate loans
Residential 1-4 family		23,420		564		—		23,984
Multifamily residential		939		—		—		939
Total real estate		69,626		1,286		—		70,912
Consumer		159		9		—		168
Commercial and industrial		12,818		80		—		12,898
Agricultural and other		136		—		—		136
Total risk rated loans	$	82,739	$	1,375	$	—	$	84,114

Loans may be classified, but not considered impaired, due to one of the following reasons: (1) The Company has established minimum dollar amount thresholds for loan impairment testing. All loans over $2.0 million that are rated 5 – 8 are individually assessed for impairment on a quarterly basis. Loans rated 5 – 8 that fall under the threshold amount are not individually tested for impairment and therefore are not included in impaired loans; (2) of the loans that are above the threshold amount and tested for impairment, after testing, some are considered to not be impaired and are not included in impaired loans.

The following is a presentation of loans receivable by class and risk rating as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Risk Rated 1		Risk Rated 2		Risk Rated 3		Risk Rated 4		Risk Rated 5		Classified Total		Total
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	993	$	299	$	2,660,482	$	1,863,651	$	33,857	$	41,908	$	4,601,190
Construction/land development		20		736		261,009		1,263,515		923		15,362		1,541,565
Agricultural		—		—		35,336		36,099		981		318		72,734
Residential real estate loans
Residential 1-4 family		770		750		1,454,690		461,225		7,536		24,035		1,949,006
Multifamily residential		—		—		398,294		206,280		—		983		605,557
Total real estate		1,783		1,785		4,809,811		3,830,770		43,297		82,606		8,770,052
Consumer		13,051		995		397,060		13,617		129		1,118		425,970
Commercial and industrial		21,669		8,805		589,856		624,100		30,964		12,118		1,287,512
Agricultural and other		1,045		3,388		134,301		60,520		537		50		199,841
Total risk rated loans	$	37,548	$	14,973	$	5,931,028	$	4,529,007	$	74,927	$	95,892		10,683,375
Purchased credit impaired loans														149,440
Total loans receivable													$	10,832,815

	December 31, 2017
	Risk Rated 1		Risk Rated 2		Risk Rated 3		Risk Rated 4		Risk Rated 5		Classified Total		Total
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	1,015	$	558	$	2,595,844	$	1,745,778	$	119,656	$	21,451	$	4,484,302
Construction/land development		28		583		280,980		1,373,133		6,438		24,217		1,685,379
Agricultural		—		19		53,018		27,515		1,150		321		82,023
Residential real estate loans
Residential 1-4 family		1,140		969		1,414,849		475,619		11,658		23,984		1,928,219
Multifamily residential		—		—		329,070		103,071		213		939		433,293
Total real estate		2,183		2,129		4,673,761		3,725,116		139,115		70,912		8,613,216
Consumer		13,106		808		22,479		8,532		70		168		45,163
Commercial and industrial		20,870		7,543		627,316		592,088		22,313		12,898		1,283,028
Agricultural and other		1,986		3,914		147,323		38,370		—		136		191,729
Total risk rated loans	$	38,145	$	14,394	$	5,470,879	$	4,364,106	$	161,498	$	84,114		10,133,136
Purchased credit impaired loans														198,052
Total loans receivable													$	10,331,188

The following is a presentation of troubled debt restructurings (“TDRs”) by class as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Number of Loans		Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
Real estate:	(Dollars in thousands)
Commercial real estate loans
Non-farm/non-residential		16	$	16,018	$	8,177	$	742	$	4,494	$	13,413
Construction/land development		3		641		546		69		—		615
Agricultural		2		345		283		16		—		299
Residential real estate loans
Residential 1-4 family		24		4,494		1,105		353		1,035		2,493
Multifamily residential		3		1,701		1,281		—		287		1,568
Total real estate		48		23,199		11,392		1,180		5,816		18,388
Consumer		4		36		17		11		—		28
Commercial and industrial		13		1,062		396		105		—		501
Total		65	$	24,297	$	11,805	$	1,296	$	5,816	$	18,917

	December 31, 2017
	Number of Loans		Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
Real estate:	(Dollars in thousands)
Commercial real estate loans
Non-farm/non-residential		16	$	16,853	$	8,815	$	250	$	5,513	$	14,578
Construction/land development		5		782		689		75		—		764
Agricultural		2		345		282		22		—		304
Residential real estate loans
Residential 1-4 family		21		5,607		1,926		81		1,238		3,245
Multifamily residential		3		1,701		1,340		—		287		1,627
Total real estate		47		25,288		13,052		428		7,038		20,518
Consumer		3		19		—		18		—		18
Commercial and industrial		11		951		445		50		1		496
Agricultural and other		1		166		166		—		—		166
Total		62	$	26,424	$	13,663	$	496	$	7,039	$	21,198

The following is a presentation of TDRs on non-accrual status as of September 30, 2018 and December 31, 2017 because they are not in compliance with the modified terms:

	September 30, 2018				December 31, 2017
	Number of Loans		Recorded Balance		Number of Loans		Recorded Balance
Real estate:	(Dollars in thousands)
Commercial real estate loans
Non-farm/non-residential		3	$	758		2	$	1,161
Agricultural		1		16		1		22
Residential real estate loans
Residential 1-4 family		9		787		8		850
Multifamily residential		1		146		1		153
Total real estate		14		1,707		12		2,186
Commercial and industrial		6		128		1		—
Total		20	$	1,835		13	$	2,186

The following is a presentation of total foreclosed assets as of September 30, 2018 and December 31, 2017:

	September 30, 2018		December 31, 2017
	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	5,858	$	9,766
Construction/land development		3,539		5,920
Agriculture		155
Residential real estate loans
Residential 1-4 family		3,885		2,654
Multifamily residential		70		527
Total foreclosed assets held for sale	$	13,507	$	18,867

The following is a summary of the purchased credit impaired loans acquired in the SPF, GHI, BOC and Stonegate acquisitions as of the dates of acquisition:

	SPF		GHI		BOC		Stonegate
	(In thousands)
Contractually required principal and interest at acquisition	$	3,496	$	22,379	$	18,586	$	98,444
Non-accretable difference (expected losses and foregone interest)		285		4,462		2,811		23,297
Cash flows expected to be collected at acquisition		3,211		17,917		15,775		75,147
Accretable yield		808		2,071		1,043		11,761
Basis in purchased credit impaired loans at acquisition	$	2,403	$	15,846	$	14,732	$	63,386

Changes in the carrying amount of the accretable yield for purchased credit impaired loans were as follows for the nine-month period ended September 30, 2018 for the Company’s acquisitions:

	Accretable Yield			Carrying Amount of Loans
	(In thousands)
Balance at beginning of period	$	41,803		$	198,052
Reforecasted future interest payments for loan pools		(459	)		—
Contractual accretion recorded to interest income		(13,206	)		13,206
Acquisitions		808			2,403
Adjustment to yield		8,519			—
Transfers to foreclosed assets held for sale		—			(2,156	)
Payments received, net		—			(62,065	)
Balance at end of period	$	37,465		$	149,440

The loan pools were evaluated by the Company and are currently forecasted to have a slower run-off than originally expected. As a result, the Company has reforecast the total accretable yield expectations for those loan pools by $459,000. This updated forecast does not change the expected weighted average yields on the loan pools.

During the 2018 impairment tests on the estimated cash flows of loans, the Company established that several loan pools were determined to have a materially projected credit improvement. As a result of this improvement, the Company will recognize approximately $8.5 million as an additional adjustment to yield over the weighted average life of the loans.

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Goodwill and Core Deposits and Other Intangibles

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Core Deposits and Other Intangibles

6. Goodwill and Core Deposits and Other Intangibles

Changes in the carrying amount and accumulated amortization of the Company’s goodwill and core deposits and other intangibles at September 30, 2018 and December 31, 2017, were as follows:

	September 30, 2018		December 31, 2017
Goodwill	(In thousands)
Balance, beginning of period	$	927,949	$	377,983
Acquisitions		30,459		549,966
Balance, end of period	$	958,408	$	927,949

	September 30, 2018			December 31, 2017
Core Deposit and Other Intangibles	(In thousands)
Balance, beginning of period	$	49,351		$	18,311
Acquisition		—			35,247
Amortization expense		(4,867	)		(2,576	)
Balance, September 30	$	44,484			50,982
Acquisitions					—
Amortization expense					(1,631	)
Balance, end of year				$	49,351

The carrying basis and accumulated amortization of core deposits and other intangibles at September 30, 2018 and December 31, 2017 were:

	September 30, 2018			December 31, 2017
	(In thousands)
Gross carrying basis	$	86,625		$	86,625
Accumulated amortization		(42,141	)		(37,274	)
Net carrying amount	$	44,484		$	49,351

Core deposit and other intangible amortization expense was approximately $1.6 million and $906,000 for the three months ended September 30, 2018 and 2017, respectively. Core deposit and other intangible amortization expense was approximately $4.9 million and $2.6 million for the nine months ended September 30, 2018 and 2017, respectively. Including all of the mergers completed as of December 31, 2017, HBI’s estimated amortization expense of core deposits and other intangibles for each of the years 2018 through 2023 is approximately: 2018 – $6.6 million; 2019 – $6.5 million; 2020 – $5.9 million; 2021 – $5.7 million; 2022 – $5.7 million; 2023 – $5.5 million.

The carrying amount of the Company’s goodwill was $958.4 million and $927.9 million at September 30, 2018 and December 31, 2017, respectively. Goodwill is tested annually for impairment during the fourth quarter. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements.

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Other Assets

9 Months Ended

Sep. 30, 2018

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

Other Assets

7. Other Assets

Other assets consist primarily of equity securities without a readily determinable fair value and other miscellaneous assets. As of September 30, 2018 and December 31, 2017, other assets were $187.3 million and $177.8 million, respectively.

The Company has equity securities without readily determinable fair values such as stock holdings in the Federal Home Loan Bank (“FHLB”) and the Federal Reserve Bank (“Federal Reserve”) which are outside the scope of ASC Topic 321, Investments – Equity Securities (“ASC Topic 321”). These equity securities without a readily determinable fair value were $134.1 million and $132.1 million at September 30, 2018 and December 31, 2017, respectively, and are accounted for at cost.

The Company has equity securities such as stock holdings in First National Bankers’ Bank and other miscellaneous holdings which are accounted for under ASC Topic 321. These equity securities without a readily determinable fair value were $24.5 million and $23.9 million at September 30, 2018 and December 31, 2017, respectively. There were no transactions during the period that would indicate a material change in fair value. Therefore, these investments were accounted for at cost.

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Deposits

9 Months Ended

Sep. 30, 2018

Banking and Thrift [Abstract]

Deposits

8. Deposits

The aggregate amount of time deposits with a minimum denomination of $250,000 was $784.8 million and $636.9 million at September 30, 2018 and December 31, 2017, respectively. The aggregate amount of time deposits with a minimum denomination of $100,000 was $1.25 billion and $998.3 million at September 30, 2018 and December 31, 2017, respectively. Interest expense applicable to certificates in excess of $100,000 totaled $4.9 million and $2.2 million for the three months ended September 30, 2018 and 2017, respectively. Interest expense applicable to certificates in excess of $100,000 totaled $11.5 million and $5.8 million for the nine months ended September 30, 2018 and 2017, respectively. As of September 30, 2018 and December 31, 2017, brokered deposits were $591.6 million and $1.03 billion, respectively.

Deposits totaling approximately $1.84 billion and $1.51 billion at September 30, 2018 and December 31, 2017, respectively, were public funds obtained primarily from state and political subdivisions in the United States.

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Securities Sold Under Agreements to Repurchase

9 Months Ended

Sep. 30, 2018

Brokers and Dealers [Abstract]

Securities Sold Under Agreements to Repurchase

9. Securities Sold Under Agreements to Repurchase

At September 30, 2018 and December 31, 2017, securities sold under agreements to repurchase totaled $142.1 million and $147.8 million, respectively. For the three-month periods ended September 30, 2018 and 2017, securities sold under agreements to repurchase daily weighted-average totaled $148.8 million and $135.9 million, respectively. For the nine-month periods ended September 30, 2018 and 2017, securities sold under agreements to repurchase daily weighted-average totaled $148.5 million and $129.6 million, respectively.

The remaining contractual maturity of securities sold under agreements to repurchase in the consolidated balance sheets as of September 30, 2018 and December 31, 2017 is presented in the following tables:

	September 30, 2018
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	26,134	$	—	$	—	$	—	$	26,134
Mortgage-backed securities		9,694		—		—		—		9,694
State and political subdivisions		90,715		—		—		—		90,715
Other securities		15,603		—		—		—		15,603
Total borrowings	$	142,146	$	—	$	—	$	—	$	142,146

	December 31, 2017
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	11,525	$	—	$	—	$	10,000	$	21,525
Mortgage-backed securities		21,255		—		—		—		21,255
State and political subdivisions		85,428		—		—		—		85,428
Other securities		19,581		—		—		—		19,581
Total borrowings	$	137,789	$	—	$	—	$	10,000	$	147,789

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FHLB Borrowed Funds

9 Months Ended

Sep. 30, 2018

Banking and Thrift [Abstract]

FHLB Borrowed Funds

10. FHLB Borrowed Funds

The Company’s FHLB borrowed funds, which are secured by our loan portfolio, were $    1.36 billion and $1.30 billion at September 30, 2018 and December 31, 2017, respectively. At September 30, 2018, $750.0 million and $609.9 million of the outstanding balance were issued as short-term and long-term advances, respectively. At December 31, 2017, $525.0 million and $774.2 million of the outstanding balance were issued as short-term and long-term advances, respectively. The FHLB advances mature from the current year to 2033 with fixed interest rates ranging from 1.00% to 4.80% and are secured by loans and investments securities. Maturities of borrowings as of September 30, 2018 include: 2018 – $770.0 million; 2019 – $143.0 million; 2020 – $146.4 million; 2021 – zero; 2022 – zero; 2023 – zero; after 2023 – $300.4 million. Expected maturities will differ from contractual maturities because FHLB may have the right to call or HBI the right to prepay certain obligations. $300 million of the borrowings maturing after 2023 are callable by the FHLB within one year.

Additionally, the Company had $941.3 million and $695.3 million at September 30, 2018 and December 31, 2017, respectively, in letters of credit under a FHLB blanket borrowing line of credit, which are used to collateralize public deposits at September 30, 2018 and December 31, 2017, respectively.

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Other Borrowings

9 Months Ended

Sep. 30, 2018

Debt Disclosure [Abstract]

Other Borrowings

11. Other Borrowings

The Company had zero other borrowings at September 30, 2018. The Parent Company took out a $20.0 million unsecured line of credit for general corporate purposes during 2015. The balance on this line of credit at September 30, 2018 and December 31, 2017 was zero.

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Subordinated Debentures

9 Months Ended

Sep. 30, 2018

Brokers and Dealers [Abstract]

Subordinated Debentures

12. Subordinated Debentures

Subordinated debentures at September 30, 2018 and December 31, 2017 consisted of guaranteed payments on trust preferred securities with the following components:

	As of September 30, 2018		As of December 31, 2017
	(In thousands)
Trust preferred securities
Subordinated debentures, issued in 2006, due 2036, fixed rate of 6.75% during the first five years and at a floating rate of 1.85% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	$	3,093	$	3,093
Subordinated debentures, issued in 2004, due 2034, fixed rate of 6.00% during the first five years and at a floating rate of 2.00% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty		15,464		15,464
Subordinated debentures, issued in 2005, due 2035, fixed rate of 5.84% during the first five years and at a floating rate of 1.45% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty		25,774		25,774
Subordinated debentures, issued in 2004, due 2034, fixed rate of 4.29% during the first five years and at a floating rate of 2.50% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty		16,495		16,495
Subordinated debentures, issued in 2005, due 2035, floating rate of 2.15% above the three-month LIBOR rate, reset quarterly, currently callable without penalty		4,341		4,304
Subordinated debentures, issued in 2006, due 2036, fixed rate of 7.38% during the first five years and at a floating rate of 1.62% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty		5,638		5,569
Subordinated debt securities
Subordinated notes, net of issuance costs, issued in 2017, due 2027, fixed rate of 5.625% during the first five years and at a floating rate of 3.575% above the then three-month LIBOR rate, reset quarterly, thereafter, callable in 2022 without penalty		297,791		297,332
Total	$	368,596	$	368,031

The Company holds trust preferred securities with a face amount of $73.3 million which are currently callable without penalty based on the terms of the specific agreements. The trust preferred securities are tax-advantaged issues that qualify for Tier 1 capital treatment subject to certain limitations. Distributions on these securities are included in interest expense. Each of the trusts is a statutory business trust organized for the sole purpose of issuing trust securities and investing the proceeds in the Company’s subordinated debentures, the sole asset of each trust. The trust preferred securities of each trust represent preferred beneficial interests in the assets of the respective trusts and are subject to mandatory redemption upon payment of the subordinated debentures held by the trust. The Company wholly owns the common securities of each trust. Each trust’s ability to pay amounts due on the trust preferred securities is solely dependent upon the Company making payment on the related subordinated debentures. The Company’s obligations under the subordinated securities and other relevant trust agreements, in aggregate, constitute a full and unconditional guarantee by the Company of each respective trust’s obligations under the trust securities issued by each respective trust.

The Bank acquired $12.5 million in trust preferred securities with a carrying value of $9.9 million and $9.8 million at September 30, 2018 and December 31, 2017, respectively, from the Stonegate acquisition. The difference between the fair value purchased of $9.9 million and the $12.5 million face amount, will be amortized into interest expense over the remaining life of the debentures. The associated subordinated debentures are redeemable, in whole or in part, prior to maturity at our option on a quarterly basis when interest is due and payable and in whole at any time within 90 days following the occurrence and continuation of certain changes in the tax treatment or capital treatment of the debentures.

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Income Taxes

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Income Taxes

13. Income Taxes

On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was signed into law. The TCJA makes broad and complex changes to the U.S. tax code that affected our income tax rate in 2017. The TCJA reduced the U.S. federal corporate income tax rate from 35% to 21%. The TCJA also established new tax laws that will affect 2018.

On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118 (“SAB 118”), which provides guidance on accounting for the tax effects of the 2017 Act. SAB 118 provides a measurement period that should not extend beyond one year from the 2017 Act enactment date for companies to complete the accounting under ASC 740, Income Taxes. As such, the company’s 2017 financial results reflect the income tax effects for the 2017 Act for which the accounting under ASC 740 is complete and provisional amounts for those specific income tax effects of the 2017 Act for which the accounting under ASC 740 is incomplete, but a reasonable estimate could be determined. The company did not identify items for which the income tax effects of the 2017 Act have not been completed and a reasonable estimate could not be determined as of December 31, 2017. The tax expense recorded in 2017 is a reasonable estimate based on published guidance available at this time and is considered provisional. The ultimate impact of the 2017 Act may differ from these estimates due to changes in interpretations and assumptions made by the Company, as well as additional regulatory guidance. Any adjustments will be reflected in the Company’s financial statements in future periods.

The following is a summary of the components of the provision (benefit) for income taxes for the three and nine-month periods ended September 30, 2018 and 2017:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018		2017
	(In thousands)
Current:
Federal	$	17,999	$	17,289		$	44,354	$	65,958
State		5,958		3,434			14,683		13,101
Total current		23,957		20,723			59,037		79,059
Deferred:
Federal		1,047		(11,002	)		10,964		(13,238	)
State		346		(2,185	)		3,629		(2,629	)
Total deferred		1,393		(13,187	)		14,593		(15,867	)
Income tax expense	$	25,350	$	7,536		$	73,630	$	63,192

The reconciliation between the statutory federal income tax rate and effective income tax rate is as follows for the three and nine-month periods ended September 30, 2018 and 2017:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Statutory federal income tax rate		21.00	%		35.00	%		21.00	%		35.00	%
Effect of non-taxable interest income		(0.84	)		(4.48	)		(0.80	)		(1.82	)
Effect of gain on acquisitions		—			—			—			(0.76	)
Stock compensation		(0.12	)		(0.09	)		(0.18	)		(0.49	)
State income taxes, net of federal benefit		3.30			3.91			3.60			4.01
Other		0.66			(0.63	)		0.68			0.18
Effective income tax rate		24.00	%		33.71	%		24.30	%		36.12	%

The types of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:

	September 30, 2018		December 31, 2017
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	30,023	$	29,515
Deferred compensation		2,868		1,142
Stock compensation		3,674		2,731
Real estate owned		1,419		1,731
Unrealized loss on securities available-for-sale		11,118		1,471
Loan discounts		25,144		32,784
Tax basis premium/discount on acquisitions		8,387		8,802
Investments		1,008		1,155
Other		10,552		11,663
Gross deferred tax assets		94,193		90,994
Deferred tax liabilities:
Accelerated depreciation on premises and equipment		1,157		291
Core deposit intangibles		10,163		11,258
FHLB dividends		1,712		1,625
Other		1,613		1,256
Gross deferred tax liabilities		14,645		14,430
Net deferred tax assets	$	79,548	$	76,564

The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and the states of Arkansas, Alabama, Florida and New York. The Company is no longer subject to U.S. federal and state tax examinations by tax authorities for years before 2013.

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Common Stock, Compensation Plans and Other

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Common Stock, Compensation Plans and Other

14. Common Stock, Compensation Plans and Other

Common Stock

The Company’s Restated Articles of Incorporation, as amended, authorize the issuance of up to 200,000,000 shares of common stock, par value $0.01 per share.

The Company also has the authority to issue up to 5,500,000 shares of preferred stock, par value $0.01 per share under the Company’s Restated Articles of Incorporation.

Stock Repurchases

On February 21, 2018, the Company’s Board of Directors authorized the repurchase of up to an additional 5,000,000 shares of its common stock under the previously approved stock repurchase program, which brought the total amount of authorized shares to repurchase to 14,752,000 shares. During 2018, the Company utilized a portion of this stock repurchase program.

During the first nine months of 2018, the Company repurchased a total of 1,863,400 shares with a weighted-average stock price of $23.14 per share. The 2018 earnings were used to fund the repurchases during the year. Shares repurchased under the program as of September 30, 2018 total 6,388,264 shares. The remaining balance available for repurchase is 8,363,736 shares at September 30, 2018.

Stock Compensation Plans

The Company has a stock option and performance incentive plan known as the Amended and Restated 2006 Stock Option and Performance Incentive Plan (the “Plan”). The purpose of the Plan is to attract and retain highly qualified officers, directors, key employees, and other persons, and to motivate those persons to improve the Company’s business results. On April 19, 2018 at the Annual Meeting of Shareholders of the Company, the shareholders approved, as proposed in the Proxy Statement, an amendment to the Plan to increase the number of shares of the Company’s common stock available for issuance under the Plan by 2,000,000 shares to 13,288,000 shares. The Plan provides for the granting of incentive and non-qualified stock options and other equity awards, including the issuance of restricted shares. As of September 30, 2018, the maximum total number of shares of the Company’s common stock available for issuance under the Plan was 13,288,000. At September 30, 2018, the Company had approximately 1,841,443 shares of common stock remaining available for future grants and approximately 5,477,700 shares of common stock reserved for issuance pursuant to outstanding awards under the Plan.

During the third quarter of 2018, the Company granted 1,452,000 stock options and 843,500 shares of restricted stock to certain employees under the HOMB $2.00 program (“HOMB $2.00”). The purpose of the performance-based incentive plan is to motivate employees to help the Company achieve $2.00 of diluted earnings per share over a consecutive four-quarter period.

The intrinsic value of the stock options outstanding and stock options vested at September 30, 2018 was $11.0 million and $8.0 million, respectively. Total unrecognized compensation cost, net of income tax benefit, related to non-vested stock option awards, which are expected to be recognized over the vesting periods, was approximately $13.3 million as of September 30, 2018. For the first nine months of 2018, the Company has expensed approximately $1.4 million for the non-vested awards.

The table below summarizes the stock option transactions under the Plan at September 30, 2018 and December 31, 2017 and changes during the nine-month period and year then ended:

	For the Nine Months Ended September 30, 2018					For the Year Ended December 31, 2017
	Shares (000)			Weighted- Average Exercisable Price		Shares (000)			Weighted- Average Exercisable Price
Outstanding, beginning of year		2,274		$	16.23		2,397		$	15.19
Granted		1,576			23.24		80			25.96
Forfeited/Expired		(37	)		22.30		—			—
Exercised		(177	)		9.42		(203	)		7.82
Outstanding, end of period		3,636			19.54		2,274			16.23
Exercisable, end of period		1,171			15.10		1,016		$	13.55

Stock-based compensation expense for stock-based compensation awards granted is based on the grant-date fair value. For stock option awards, the fair value is estimated at the date of grant using the Black-Scholes option-pricing model. This model requires the input of highly subjective assumptions, changes to which can materially affect the fair value estimate. Additionally, there may be other factors that would otherwise have a significant effect on the value of employee stock options granted but are not considered by the model. Accordingly, while management believes that the Black-Scholes option-pricing model provides a reasonable estimate of fair value, the model does not necessarily provide the best single measure of fair value for the Company’s employee stock options. The weighted-average fair value of options granted during the nine months ended September 30, 2018 was $5.58 per share. The weighted-average fair value of options granted during the year ended December 31, 2017 was $7.10 per share. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model based on the weighted-average assumptions for expected dividend yield, expected stock price volatility, risk-free interest rate, and expected life of options granted.

	For the Nine Months Ended September 30, 2018			For the Year Ended December 31, 2017
Expected dividend yield		2.05	%		1.39	%
Expected stock price volatility		25.59	%		28.47	%
Risk-free interest rate		2.82	%		2.06	%
Expected life of options		6.5 years			6.5 years

The following is a summary of currently outstanding and exercisable options at September 30, 2018:

Options Outstanding				Options Exercisable
Exercise Prices	Options Outstanding Shares (000)	Weighted- Average Remaining Contractual Life (in years)	Weighted- Average Exercise Price	Options Exercisable Shares (000)	Weighted- Average Exercise Price
$2.10 to $2.66	12	0.73	2.60	12	2.60
$5.68 to $6.56	89	3.22	6.54	89	6.54
$8.62 to $9.54	259	4.41	9.04	259	9.04
$14.71 to $16.86	252	6.02	15.97	168	16.05
$17.12 to $17.40	195	6.15	17.20	118	17.22
$18.46	1,010	6.90	18.46	433	18.46
$20.16 to $20.58	68	7.02	20.41	28	20.34
$21.25 to $22.22	230	8.51	21.71	48	21.25
$22.70 to $23.51	1,441	9.81	23.32	—	—
$25.96	80	8.56	25.96	16	25.96
	3,636			1,171

The table below summarized the activity for the Company’s restricted stock issued and outstanding at September 30, 2018 and December 31, 2017 and changes during the period and year then ended:

	As of September 30, 2018			As of December 31, 2017
	(In thousands)
Beginning of year		1,145			958
Issued		1,005			232
Vested		(229	)		(45	)
Forfeited		(49	)		—
End of period		1,872			1,145
Amount of expense for nine months and twelve months ended, respectively	$	5,153		$	5,237

Total unrecognized compensation cost, net of income tax benefit, related to non-vested restricted stock awards, which are expected to be recognized over the 7.8 weighted average remaining contractual life, was approximately $30.2 million as of September 30, 2018.

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Non-Interest Expense

9 Months Ended

Sep. 30, 2018

Text Block [Abstract]

Non-Interest Expense

15. Non-Interest Expense

The table below shows the components of non-interest expense for the three and nine months ended September 30, 2018 and 2017:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Salaries and employee benefits	$	37,825	$	28,510	$	107,315	$	83,965
Occupancy and equipment		8,148		7,887		25,650		21,602
Data processing expense		3,461		2,853		10,786		8,439
Other operating expenses:
Advertising		1,154		795		3,258		2,305
Merger and acquisition expenses		—		18,227		—		25,743
Amortization of intangibles		1,617		906		4,867		2,576
Electronic banking expense		1,947		1,712		5,653		4,885
Directors’ fees		314		309		962		946
Due from bank service charges		253		472		714		1,348
FDIC and state assessment		2,293		1,293		6,689		3,763
Insurance		762		577		2,363		1,698
Legal and accounting		761		698		2,397		1,799
Other professional fees		1,748		1,436		4,988		3,822
Operating supplies		510		432		1,712		1,376
Postage		311		280		978		861
Telephone		337		305		1,081		1,027
Other expense		4,682		4,154		13,318		10,835
Total other operating expenses		16,689		31,596		48,980		62,984
Total non-interest expense	$	66,123	$	70,846	$	192,731	$	176,990

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Significant Estimates and Concentrations of Credit Risks

9 Months Ended

Sep. 30, 2018

Text Block [Abstract]

Significant Estimates and Concentrations of Credit Risks

16. Significant Estimates and Concentrations of Credit Risks

Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses and certain concentrations of credit risk are reflected in Note 5, while deposit concentrations are reflected in Note 8.

The Company’s primary market areas are in Arkansas, Florida, South Alabama and New York. The Company primarily grants loans to customers located within these markets unless the borrower has an established relationship with the Company.

The diversity of the Company’s economic base tends to provide a stable lending environment. Although the Company has a loan portfolio that is diversified in both industry and geographic area, a substantial portion of its debtors’ ability to honor their contracts is dependent upon real estate values, tourism demand and the economic conditions prevailing in its market areas.

Although the Company has a diversified loan portfolio, commercial real estate loans represented 58.3% and 61.8% of total loans receivable at September 30, 2018 and December 31, 2017, respectively, and 269.5% and 289.6% of total stockholders’ equity at September 30, 2018 and December 31, 2017, respectively. Residential real estate loans represented 23.9% and 23.3% of total loans receivable and 110.7% and 109.4% of total stockholders’ equity at September 30, 2018 and December 31, 2017, respectively.

Approximately 89.1% of the Company’s total loans and 91.1% of the Company’s real estate loans as of September 30, 2018, are to borrowers whose collateral is located in Alabama, Arkansas, Florida and New York, the states in which the Company has its branch locations.

Although general economic conditions in our market areas have improved, both nationally and locally, in recent years and have shown signs of continued improvement, financial institutions still face circumstances and challenges which, in some cases, have resulted and could potentially result, in large declines in the fair values of investments and other assets, constraints on liquidity and significant credit quality problems, including severe volatility in the valuation of real estate and other collateral supporting loans. The financial statements have been prepared using values and information currently available to the Company.

Any future volatility in the economy could cause the values of assets and liabilities recorded in the financial statements to change rapidly, resulting in material future adjustments in asset values, the allowance for loan losses and capital that could negatively impact the Company’s ability to meet regulatory capital requirements and maintain sufficient liquidity.

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Commitments and Contingencies

9 Months Ended

Sep. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

17. Commitments and Contingencies

In the ordinary course of business, the Company makes various commitments and incurs certain contingent liabilities to fulfill the financing needs of their customers. These commitments and contingent liabilities include lines of credit and commitments to extend credit and issue standby letters of credit. The Company applies the same credit policies and standards as they do in the lending process when making these commitments. The collateral obtained is based on the assessed creditworthiness of the borrower.

At September 30, 2018 and December 31, 2017, commitments to extend credit of $2.25 billion and $2.38 billion, respectively, were outstanding. A percentage of these balances are participated out to other banks; therefore, the Company can call on the participating banks to fund future draws. Since some of these commitments are expected to expire without being drawn upon, the total commitment amount does not necessarily represent future cash requirements.

Outstanding standby letters of credit are contingent commitments issued by the Company, generally to guarantee the performance of a customer in third-party borrowing arrangements. The term of the guarantee is dependent upon the creditworthiness of the borrower, some of which are long-term. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on-balance-sheet instruments. The maximum amount of future payments the Company could be required to make under these guarantees at September 30, 2018 and December 31, 2017, is $55.0 million and $70.5 million, respectively.

The Company and/or its bank subsidiary have various unrelated legal proceedings, most of which involve loan foreclosure activity pending, which, in the aggregate, are not expected to have a material adverse effect on the financial position or results of operations or cash flows of the Company and its subsidiary.

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Regulatory Matters

9 Months Ended

Sep. 30, 2018

Banking and Thrift [Abstract]

Regulatory Matters

18. Regulatory Matters

The Bank is subject to a legal limitation on dividends that can be paid to the parent company without prior approval of the applicable regulatory agencies. Arkansas bank regulators have specified that the maximum dividend limit state banks may pay to the parent company without prior approval is 75% of the current year earnings plus 75% of the retained net earnings of the preceding year. Since the Bank is also under supervision of the Federal Reserve, it is further limited if the total of all dividends declared in any calendar year by the Bank exceeds the Bank’s net profits to date for that year combined with its retained net profits for the preceding two years. During the first nine months of 2018, the Company requested approximately $155.5 million in regular dividends from its banking subsidiary. This dividend is equal to approximately 63.0% of the Company’s banking subsidiary’s year-to-date 2018 earnings.

The Company’s banking subsidiary is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s consolidated financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company must meet specific capital guidelines that involve quantitative measures of the Company’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s capital amounts and classifications are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Furthermore, the Company’s regulators could require adjustments to regulatory capital not reflected in the consolidated financial statements.

Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of total, common Tier 1 equity and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average assets (as defined). Management believes that, as of September 30, 2018, the Company meets all capital adequacy requirements to which it is subject.

In July 2013, the Federal Reserve Board and the other federal bank regulatory agencies issued a final rule to revise their risk-based and leverage capital requirements and their method for calculating risk-weighted assets to make them consistent with the agreements that were reached by the Basel Committee on Banking Supervision in “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” and certain provisions of the Dodd-Frank Act (“Basel III”). Basel III applies to all depository institutions, bank holding companies with total consolidated assets of $500 million or more, and savings and loan holding companies. Basel III became effective for the Company and its bank subsidiary on January 1, 2015. The capital conservation buffer requirement began being phased in beginning January 1, 2016 at the 0.625% level and will increase by 0.625% on each subsequent January 1, until it reaches 2.5% on January 1, 2019 when the phase-in period ends and the full capital conservation buffer requirement becomes effective.

Basel III amended the prompt corrective action rules to incorporate a “common equity Tier 1 capital” requirement and to raise the capital requirements for certain capital categories. In order to be adequately capitalized for purposes of the prompt corrective action rules, a banking organization will be required to have at least a 4.5% “common equity Tier 1 risk-based capital” ratio, a 4% “Tier 1 leverage capital” ratio, a 6% “Tier 1 risk-based capital” ratio and an 8% “total risk-based capital” ratio.

The Federal Reserve Board’s risk-based capital guidelines include the definitions for (1) a well-capitalized institution, (2) an adequately-capitalized institution, and (3) an undercapitalized institution. Under Basel III, the criteria for a well-capitalized institution are now: a 6.5% “common equity Tier 1 risk-based capital” ratio, a 5% “Tier 1 leverage capital” ratio, an 8% “Tier 1 risk-based capital” ratio, and a 10% “total risk-based capital” ratio. As of September 30, 2018, the Bank met the capital standards for a well-capitalized institution. The Company’s “common equity Tier 1 risk-based capital” ratio, “Tier 1 leverage capital” ratio, “Tier 1 risk-based capital” ratio, and “total risk-based capital” ratio were 11.65%, 10.38%, 12.25%, and 15.73%, respectively, as of September 30, 2018.

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Additional Cash Flow Information

9 Months Ended

Sep. 30, 2018

Supplemental Cash Flow Elements [Abstract]

Additional Cash Flow Information

19. Additional Cash Flow Information

In connection with the GHI acquisition, accounted for using the purchase method, the Company acquired approximately $398.1 million in assets, including $41.0 million in cash and cash equivalents, assumed $345.0 million in liabilities, issued 2,738,038 shares of its common stock valued at approximately $77.5 million as of February 23, 2017, and paid approximately $18.5 million in cash in exchange for all outstanding shares of GHI common stock.

In connection with the BOC acquisition, accounted for using the purchase method, the Company acquired approximately $178.1 million in assets, including $4.6 million in cash and cash equivalents, assumed $170.1 million in liabilities, issued no equity and paid approximately $4.2 million in cash. As a result, the Company recorded a bargain purchase gain of $3.8 million.

In connection with the Stonegate acquisition, accounted for using the purchase method, the Company acquired approximately $2.89 billion in assets, including $101.0 million in cash and cash equivalents, assumed $2.60 billion in liabilities, issued 30,863,658 shares of its common stock valued at approximately $742.3 million as of September 26, 2017, and paid $50.1 million in cash in exchange for all outstanding shares of Stonegate common stock.

In connection with the SPF acquisition, accounted for using the purchase method, the Company acquired approximately $377.0 million in assets, including $376.2 million in loans, issued 1,250,000 shares of its common stock valued at approximately $28.2 million as of June 30, 2018, and paid $377.4 million in cash.

The following is a summary of the Company’s additional cash flow information during the nine-month periods ended:

	September 30,
	2018		2017
	(In thousands)
Interest paid	$	80,057	$	34,573
Income taxes paid		47,682		117,025
Assets acquired by foreclosure		10,098		9,255

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Financial Instruments

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Financial Instruments

20. Financial Instruments

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a hierarchy of three levels of inputs that may be used to measure fair values:

Level 1	Quoted prices in active markets for identical assets or liabilities
Level 2	Observable inputs other than Level 1 prices, 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	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Transfers of financial instruments between levels within the fair value hierarchy are recognized on the date management determines that the underlying circumstances or assumptions have changed.

Financial Assets and Liabilities Measured on a Recurring Basis

Available-for-sale securities are the only material financial instruments valued on a recurring basis which are held by the Company at fair value. The Company does not have any Level 1 securities. Primarily all of the Company’s securities are considered to be Level 2 securities. These Level 2 securities consist primarily of U.S. government-sponsored enterprises, mortgage-backed securities plus state and political subdivisions. For these securities, 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. As of September 30, 2018 and December 31, 2017, Level 3 securities were immaterial. In addition, there were no material transfers between hierarchy levels during 2018 and 2017. See Note 3 for additional detail related to investment securities.

The Company reviews the prices supplied by the independent pricing service, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In general, the Company does not purchase investment portfolio securities with complicated structures. Pricing for the Company’s investment securities is fairly generic and is easily obtained.

Financial Assets and Liabilities Measured on a Nonrecurring Basis

Impaired loans that are collateral dependent are the only material financial assets valued on a non-recurring basis which are held by the Company at fair value. Loan impairment is reported when full payment under the loan terms is not expected. Impaired loans are carried at the net realizable value of the collateral if the loan is collateral dependent. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to require an increase, such increase is reported as a component of the provision for loan losses. The fair value of loans with specific allocated losses was $77.5 million and $72.5 million as of September 30, 2018 and December 31, 2017, respectively. This valuation is considered Level 3, consisting of appraisals of underlying collateral. The Company reversed approximately $164,000 and $314,000 of accrued interest receivable when non-covered impaired loans were put on non-accrual status during the three months ended September 30, 2018 and 2017, respectively. The Company reversed approximately $728,000 and $523,000 of accrued interest receivable when non-covered impaired loans were put on non-accrual status during the nine months ended September 30, 2018 and 2017, respectively.

Nonfinancial Assets and Liabilities Measured on a Nonrecurring Basis

Foreclosed assets held for sale are the only material non-financial assets valued on a non-recurring basis which are held by the Company at fair value, less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. Additionally, valuations are periodically performed by management and any subsequent reduction in value is recognized by a charge to income. The fair value of foreclosed assets held for sale is estimated using Level 3 inputs based on appraisals of underlying collateral. As of September 30, 2018 and December 31, 2017, the fair value of foreclosed assets held for sale, less estimated costs to sell, was $13.5 million and $18.9 million, respectively.

No foreclosed assets held for sale were remeasured during the nine months ended September 30, 2018. Regulatory guidelines require the Company to reevaluate the fair value of foreclosed assets held for sale on at least an annual basis. The Company’s policy is to comply with the regulatory guidelines.

The significant unobservable (Level 3) inputs used in the fair value measurement of collateral for collateral-dependent impaired loans and foreclosed assets primarily relate to customized discounting criteria applied to the customer’s reported amount of collateral. The amount of the collateral discount depends upon the condition and marketability of the underlying collateral. As the Company’s primary objective in the event of default would be to monetize the collateral to settle the outstanding balance of the loan, less marketable collateral would receive a larger discount. During the reported periods, collateral discounts ranged from 20% to 30% for commercial and residential real estate collateral.

Fair Values of Financial Instruments

The following table presents the estimated fair values of the Company’s financial instruments. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

	September 30, 2018
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	532,057	$	532,057		1
Federal funds sold		500		500		1
Investment securities – held-to-maturity		199,266		198,552		2
Loans receivable, net of impaired loans and allowance		10,645,129		10,429,379		3
Accrued interest receivable		48,909		48,909		1
Financial liabilities:
Deposits:
Demand and non-interest-bearing	$	2,482,857	$	2,482,857		1
Savings and interest-bearing transaction accounts		6,420,951		6,420,951		1
Time deposits		1,720,930		1,696,005		3
Securities sold under agreements to repurchase		142,146		142,146		1
FHLB and other borrowed funds		1,363,851		1,291,287		2
Accrued interest payable		12,383		12,383		1
Subordinated debentures		368,596		374,338		3

	December 31, 2017
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	635,933	$	635,933		1
Federal funds sold		24,109		24,109		1
Investment securities – held-to-maturity		224,756		227,539		2
Loans receivable, net of impaired loans and allowance		10,148,470		10,055,901		3
Accrued interest receivable		45,708		45,708		1
Financial liabilities:
Deposits:
Demand and non-interest-bearing	$	2,385,252	$	2,385,252		1
Savings and interest-bearing transaction accounts		6,476,819		6,476,819		1
Time deposits		1,526,431		1,514,670		3
Securities sold under agreements to repurchase		147,789		147,789		1
FHLB and other borrowed funds		1,299,188		1,299,961		2
Accrued interest payable		5,583		5,583		1
Subordinated debentures		368,031		379,146		3

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Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2018

Accounting Changes and Error Corrections [Abstract]

Recent Accounting Pronouncements

21. Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides guidance that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), which defers the effective date of this standard to annual and interim periods beginning after December 15, 2017; however, early adoption was permitted for annual and interim reporting periods beginning after December 15, 2016. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which amends certain aspects of the guidance in ASU 2014-09 (FASB’s new revenue standard) on (1) identifying performance obligations and (2) licensing. ASU 2014-10’seffective date and transition provisions are aligned with the requirements in ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the FASB’s new revenue standard, ASU 2014-09. ASU 2016-12’seffective date and transition provisions are aligned with the requirements in ASU 2014-09.

The guidance issued in ASU 2014-09, ASU 2015-14, ASU 2016-10 and ASU 2016-12 permit two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on our financial position or financial statement disclosures.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Changes to the current GAAP model primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in accumulated other comprehensive income (“AOCI”). In addition, ASU 2016-01 clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale securities. The new guidance is effective for annual reporting period and interim reporting periods within those annual periods, beginning after December 15, 2017. The Company adopted the guidance effective January 1, 2018 and recorded a cumulative-effect adjustment to retained earnings of $990,000 to reclassify the cumulative change in fair value of equity securities previously recognized in AOCI. For additional information on fair value of assets and liabilities, see Note 20.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in ASU 2016-02 address several aspects of lease accounting with the significant change being the recognition of lease assets and lease liabilities for leases previously classified as operating leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in ASU 2016-02 is permitted for all entities. The Company has several lease agreements for which the amendments will require the Company to recognize a lease liability to make lease payments and a right-of-use asset which will represent its right to use the underlying asset for the lease term. The Company is currently reviewing the amendments to ensure it is fully compliant by the adoption date and does not expect to early adopt. The impact is not expected to have a material effect on the Company’s financial position or results of operations as the Company does not have a material amount of lease agreements. In addition, the Company will change its current accounting policies to comply with the amendments with such changes as mentioned above. For additional information on the Company’s leases, see Note 18 “Leases” in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-Kfor the year ended December 31, 2017.

In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update), which rescinds certain SEC guidance from the FASB Accounting Standards Codification in response to announcements made by the SEC staff at the Emerging Issues Task Force’s (“EITF”) March 3, 2016, meeting. ASU 2016-11 is effective at the same time as ASU 2014-09 and ASU 2014-16. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which amends the FASB’s guidance on the impairment of financial instruments. The amendments in ASU 2016-13 replace the incurred loss model with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates, known as the current expected credit loss (“CECL”) model. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. ASU 2016-13 is also intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The allowance for loan losses is a material estimate of the Company, and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the allowance for loan losses at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the allowance for loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The Company will also develop new procedures for determining an allowance for credit losses relating to held-to-maturity investment securities. In addition, the current accounting policy and procedures for other-than-temporary impairment on available-for-sale investment securities will be replaced with an allowance approach. The Company is currently evaluating the impact, if any, ASU 2016-13 will have on its financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. It is too early to assess the impact that the implementation of this guidance will have on the Company’s consolidated financial statements; however, the Company has begun developing processes and procedures to ensure it is fully compliant with the amendments at the required adoption date. Among other things, the Company has initiated data gathering and assessment to support forecasting of asset quality, loan balances, and portfolio net charge-offs and has developed an in-house data warehouse, developed asset quality forecast models and evaluated potential software vendors in preparation for the implementation of this standard. For additional information on the allowance for loan losses, see Note 5.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, which amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of ASU 2016-15 is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. ASU 2016-15’s amendments add or clarify guidance on eight cash flow issues including debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies; including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted and the guidance must be applied retrospectively to all periods presented but may be applied prospectively from the earliest date practicable if retrospective application would be impracticable. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s statement of cash flows or financial statement disclosures.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning period of adoption. Early adoption is permitted in the first interim period of an annual reporting period for which financial statements have not been issued. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force), which clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows, and, as a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, and the new guidance must be applied retrospectively to all periods presented. The Company adopted the guidance effective January 1, 2018 and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which provides guidance to entities to assist with evaluating when a set of transferred assets and activities (collectively, the “set”) is a business and provides a screen to determine when a set is not a business. Under the new guidance, when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset, or group of similar assets, the assets acquired would not represent a business. Also, to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to produce outputs. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied on a prospective basis to any transactions occurring within the period of adoption. Early adoption is permitted for interim or annual periods in which the financial statements have not been issued. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323). The amendments in the update relate to SEC paragraphs pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF meetings related to disclosure of the impact of recently issued accounting standards. The SEC staff’s view that a registrant should evaluate ASC updates that have not yet been adopted to determine the appropriate financial disclosures about the potential material effects of the updates on the financial statements when adopted. If a registrant does not know or cannot reasonably estimate the impact of an update, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact. The staff expects the additional qualitative disclosures to include a description of the effect of the accounting policies expected to be applied compared to current accounting policies. Also, the registrant should describe the status of its process to implement the new standards and the significant implementation matters yet to be addressed. The amendments specifically addressed recent ASC amendments to ASU 2016-02, Leases, and ASU 2014-09, Revenue from Contracts with Customers, although, the amendments apply to any subsequent amendments to guidance in the ASC. The Company adopted the amendments in this update during the fourth quarter of 2016, and appropriate disclosures have been included in this Note for each recently issued accounting standard.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The Company has goodwill from prior business combinations and performs an annual impairment test or more frequently if changes or circumstances occur that would more-likely-than-not reduce the fair value of the reporting unit below its carrying value. During 2017, the Company performed its impairment assessment and determined the fair value of the aggregated reporting units exceed the carrying value, such that the Company’s goodwill was not considered impaired. Although the Company cannot anticipate future goodwill impairment assessments, based on the most recent assessment it is unlikely that an impairment amount would need to be calculated, and, therefore, the Company does not anticipate a material impact from these amendments to the Company’s financial position and results of operations. The current accounting policies and processes are not anticipated to change, except for the elimination of the Step 2 analysis.

In February 2017, the FASB issued ASU 2017-05, Other Income: Gains and Losses from the Derecognition of Nonfinancial Assets, which clarifies the scope of the FASB’s guidance on nonfinancial asset derecognition (ASC 610-20) as well as the accounting for partial sales of nonfinancial assets. The ASU conforms the derecognition guidance on nonfinancial assets with the model for transactions in the new revenue standard (ASC 606, as amended). The ASU requires an entity to derecognize the nonfinancial asset or in-substance nonfinancial asset in a partial sale transaction when (1) the entity ceases to have a controlling financial interest in a subsidiary under ASC 810 and (2) control of the asset is transferred in accordance with ASC 606. The entity therefore has to consider repurchase agreements (e.g., a call option to repurchase the ownership interest in a subsidiary) in its assessment and may not be able to derecognize the nonfinancial assets, even though it no longer has a controlling financial interest in a subsidiary in accordance with ASC 810. The ASU illustrates the application of this guidance in ASC 610-20-55-15 and 55-16. The effective date of the new guidance is aligned with the requirements in the new revenue standard, which is effective for public entities for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017, and for nonpublic entities for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Topic 310): Premium Amortization on Purchased Callable Debt Securities, which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU will shorten the amortization period for the premium to be amortized to the earliest call date. This ASU does not apply to securities held at a discount, which will continue to be amortized to maturity. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018. The guidance should be applied using a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted, including adoption in an interim period. The Company early adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The amendments in ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company adopted the guidance effective January 1, 2018. The Company does not anticipate any modifications to its existing awards, and therefore, the adoption of ASU 2017-09 is not expected to have a significant impact on the Company’s financial position, results of operations, or its financial statement disclosures.

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-Controlling Interests with a Scope Exception. Part I of this update addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Part II of this update addresses the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity, because of the existence of extensive pending content in the FASB Accounting Standards Codification. This pending content is the result of the indefinite deferral of accounting requirements about mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable non-controlling interests. The amendments in Part II of this update do not have an accounting effect. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact, if any, ASU 2017-11 will have on its financial position, results of operations, and its financial statement disclosures. The Company’s evaluation process includes, but is not limited to, identifying transactions and accounts within the scope of the guidance, reviewing its accounting and disclosures for these transactions and accounts, and identifying and implementing any necessary changes to its accounting and disclosures as a result of the guidance. The Company is also identifying and implementing changes to its business processes, systems and controls to support adoption of the new standard in 2019.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting model to provide better insight to risk management activities in the financial statements, reduces the complexity in cash flow hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, requires the entire change in the fair value of a hedging instrument included in the assessment of the hedge effectiveness to be recorded in other comprehensive income, with amounts reclassified to earnings to be presented in the same line item used to present the earnings effect of the hedged item when the hedged item affects earnings and allows the initial prospective quantitative assessment of hedge effectiveness to be performed at any time after hedge designation, but no later than the first quarterly effectiveness testing date. This ASU is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The amendments in this standard must be applied using the modified retrospective approach for cash flow and net investment hedge relationships existing on the date of adoption. The Company is currently evaluating the impact, if any, ASU 2017-12 will have on its financial position, results of operations, and its financial statement disclosures. The Company’s evaluation process includes, but is not limited to, identifying transactions and accounts within the scope of the guidance, reviewing its accounting and disclosures for these transactions and accounts, and identifying and implementing any necessary changes to its accounting and disclosures as a result of the guidance. The Company is also identifying and implementing changes to its business processes, systems and controls to support adoption of the new standard in 2019.

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the TCJA on December 22, 2017 that changed the Company’s federal income tax rate from 35% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The amendments in this ASU are effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. Adoption of this ASU is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the tax laws or rates were recognized. The Company plans to adopt the guidance January 1, 2019. As of September 30, 2018, the balance of the stranded tax effects within other comprehensive income was $534,000.

In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in ASU 2018-03 make technical corrections to certain aspects of ASU 2016-01 (on recognition of financial assets and financial liabilities), including the following:

• Equity securities without a readily determinable fair value – discontinuation.

• Equity securities without a readily determinable fair value – adjustments.

• Forward contracts and purchased options.

• Presentation requirements for certain fair value option liabilities.

• Fair value option liabilities denominated in a foreign currency.

• Transition guidance for equity securities without a readily determinable fair value.

The amendments in ASU 2018-03 are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Early adoption of ASU 2018-03 is permitted for all entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, if they have adopted ASU 2016-01. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on our financial position or financial statement disclosures.

In March 2018, the FASB issued ASU 2018-04, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273. The ASU adds, amends, and supersedes various paragraphs that contain SEC guidance in ASC 320, Investments – Debt Securities, and ASC 980, Regulated Operations. The effective date for the amendments to ASC 320 is the same as the effective date of ASU 2016-01. Other amendments are effective upon issuance. The Company has adopted the amendments to ASC 320 effective January 1, 2018, and the adoption did not have a significant impact on our financial position or financial statement disclosures. The Company has adopted the other amendments effective March 9, 2018, and the adoption did not have a significant impact on our financial position or financial statement disclosures.

In March 2018, the FASB issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. The ASU adds seven paragraphs to ASC 740, Income Taxes, that contain SEC guidance related to SAB 118 (codified as SEC SAB Topic 5.EE, Income Tax Accounting Implications of the Tax Cuts and Jobs Act. This ASU was effective upon issuance. The Company adopted the guidance effective March 13, 2018, and its adoption did not have a significant impact on our financial position or financial statement disclosures.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance also specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. This guidance is applicable to the Company beginning January 1, 2019. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. This guidance is applicable to the Company beginning January 1, 2020. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements.

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Subsequent Events

9 Months Ended

Sep. 30, 2018

Subsequent Events [Abstract]

Subsequent Events

22. Subsequent Events

Hurricane Michael made landfall in the Florida Panhandle as a Category 4 hurricane on October 10, 2018. The total impact of this hurricane may not be known for some time; however, the Company is currently evaluating the potential impact of this hurricane on the Company’s financial condition and results of operation for the fourth quarter of 2018.

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Nature of Operations and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Sep. 30, 2018

Operating Segments

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Bank is the only significant subsidiary upon which management makes decisions regarding how to allocate resources and assess performance. Each of the branches of the Bank provide a group of similar banking services, including such products and services as commercial, real estate and consumer loans, time deposits, checking and savings accounts. The individual bank branches have similar operating and economic characteristics. While the chief decision maker monitors the revenue streams of the various products, services and branch locations, operations are managed, and financial performance is evaluated on a Company-wide basis. Accordingly, all of the banking services and branch locations are considered by management to be aggregated into one reportable operating segment.

Use of Estimates

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, the valuation of investment securities, the valuation of foreclosed assets and the valuations of assets acquired, and liabilities assumed in business combinations. In connection with the determination of the allowance for loan losses and the valuation of foreclosed assets, management obtains independent appraisals for significant properties.

Principles of Consolidation

Principles of Consolidation

The consolidated financial statements include the accounts of HBI and its subsidiaries. Significant intercompany accounts and transactions have been eliminated in consolidation.

Reclassifications

Reclassifications

Various items within the accompanying consolidated financial statements for previous years have been reclassified to provide more comparative information. These reclassifications had no effect on net earnings or stockholders’ equity.

Interim financial information

Interim financial information

The accompanying unaudited consolidated financial statements as of September 30, 2018 and 2017 have been prepared in condensed format, and therefore do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements.

The information furnished in these interim statements reflects all adjustments which are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year. The interim financial information should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2017 Form 10-K, filed with the Securities and Exchange Commission.

Revenue Recognition

Revenue Recognition.

Accounting Standards Codification (“ASC”) Topic 606, Revenue from Contracts with Customers (“ASC Topic 606”), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC Topic 606, including revenue generated from financial instruments, such as our loans, letters of credit and investment securities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC Topic 606, which are presented in our income statements as components of non-interest income are as follows:

• Service charges on deposit accounts – These represent general service fees for monthly account maintenance and activity or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.

• Other service charges and fees – These represent credit card interchange fees and Centennial CFG loan fees. The interchange fees are recorded in the period the performance obligation is satisfied which is generally the cash basis based on agreed upon contracts. The Centennial CFG loan fees are based on loan or other negotiated agreements with customers and are accounted for under ASC Topic 310.

• Mortgage lending income – This represents fee income on secondary market lending which is accounted for under ASC Topic 310 and transfer of loans based on a “bid” agreement with the investor which is accounted for under ASC Topic 860, Transfers and Servicing.

Earnings per Share

Earnings per Share

Basic earnings per share is computed based on the weighted-average number of shares outstanding during each year. Diluted earnings per share is computed using the weighted-average shares and all potential dilutive shares outstanding during the period. The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Net income	$	80,284	$	14,821	$	229,373	$	111,774
Average shares outstanding		174,440		144,238		173,870		143,111
Effect of common stock options		427		749		524		728
Average diluted shares outstanding		174,867		144,987		174,394		143,839
Basic earnings per share	$	0.46	$	0.10	$	1.32	$	0.78
Diluted earnings per share	$	0.46	$	0.10	$	1.32	$	0.78

Fair Value Measurement

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There is a hierarchy of three levels of inputs that may be used to measure fair values:

Level 1	Quoted prices in active markets for identical assets or liabilities
Level 2	Observable inputs other than Level 1 prices, 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	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Transfers of financial instruments between levels within the fair value hierarchy are recognized on the date management determines that the underlying circumstances or assumptions have changed.

Financial Assets and Liabilities Measured on a Recurring Basis

Available-for-sale securities are the only material financial instruments valued on a recurring basis which are held by the Company at fair value. The Company does not have any Level 1 securities. Primarily all of the Company’s securities are considered to be Level 2 securities. These Level 2 securities consist primarily of U.S. government-sponsored enterprises, mortgage-backed securities plus state and political subdivisions. For these securities, 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. As of September 30, 2018 and December 31, 2017, Level 3 securities were immaterial. In addition, there were no material transfers between hierarchy levels during 2018 and 2017. See Note 3 for additional detail related to investment securities.

The Company reviews the prices supplied by the independent pricing service, as well as their underlying pricing methodologies, for reasonableness and to ensure such prices are aligned with traditional pricing matrices. In general, the Company does not purchase investment portfolio securities with complicated structures. Pricing for the Company’s investment securities is fairly generic and is easily obtained.

Financial Assets and Liabilities Measured on a Nonrecurring Basis

Impaired loans that are collateral dependent are the only material financial assets valued on a non-recurring basis which are held by the Company at fair value. Loan impairment is reported when full payment under the loan terms is not expected. Impaired loans are carried at the net realizable value of the collateral if the loan is collateral dependent. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. If these allocations cause the allowance for loan losses to require an increase, such increase is reported as a component of the provision for loan losses. The fair value of loans with specific allocated losses was $77.5 million and $72.5 million as of September 30, 2018 and December 31, 2017, respectively. This valuation is considered Level 3, consisting of appraisals of underlying collateral. The Company reversed approximately $164,000 and $314,000 of accrued interest receivable when non-covered impaired loans were put on non-accrual status during the three months ended September 30, 2018 and 2017, respectively. The Company reversed approximately $728,000 and $523,000 of accrued interest receivable when non-covered impaired loans were put on non-accrual status during the nine months ended September 30, 2018 and 2017, respectively.

Nonfinancial Assets and Liabilities Measured on a Nonrecurring Basis

Foreclosed assets held for sale are the only material non-financial assets valued on a non-recurring basis which are held by the Company at fair value, less estimated costs to sell. At foreclosure, if the fair value, less estimated costs to sell, of the real estate acquired is less than the Company’s recorded investment in the related loan, a write-down is recognized through a charge to the allowance for loan losses. Additionally, valuations are periodically performed by management and any subsequent reduction in value is recognized by a charge to income. The fair value of foreclosed assets held for sale is estimated using Level 3 inputs based on appraisals of underlying collateral. As of September 30, 2018 and December 31, 2017, the fair value of foreclosed assets held for sale, less estimated costs to sell, was $13.5 million and $18.9 million, respectively.

No foreclosed assets held for sale were remeasured during the nine months ended September 30, 2018. Regulatory guidelines require the Company to reevaluate the fair value of foreclosed assets held for sale on at least an annual basis. The Company’s policy is to comply with the regulatory guidelines.

The significant unobservable (Level 3) inputs used in the fair value measurement of collateral for collateral-dependent impaired loans and foreclosed assets primarily relate to customized discounting criteria applied to the customer’s reported amount of collateral. The amount of the collateral discount depends upon the condition and marketability of the underlying collateral. As the Company’s primary objective in the event of default would be to monetize the collateral to settle the outstanding balance of the loan, less marketable collateral would receive a larger discount. During the reported periods, collateral discounts ranged from 20% to 30% for commercial and residential real estate collateral.

Fair Values of Financial Instruments

The following table presents the estimated fair values of the Company’s financial instruments. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

	September 30, 2018
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	532,057	$	532,057		1
Federal funds sold		500		500		1
Investment securities – held-to-maturity		199,266		198,552		2
Loans receivable, net of impaired loans and allowance		10,645,129		10,429,379		3
Accrued interest receivable		48,909		48,909		1
Financial liabilities:
Deposits:
Demand and non-interest-bearing	$	2,482,857	$	2,482,857		1
Savings and interest-bearing transaction accounts		6,420,951		6,420,951		1
Time deposits		1,720,930		1,696,005		3
Securities sold under agreements to repurchase		142,146		142,146		1
FHLB and other borrowed funds		1,363,851		1,291,287		2
Accrued interest payable		12,383		12,383		1
Subordinated debentures		368,596		374,338		3

	December 31, 2017
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	635,933	$	635,933		1
Federal funds sold		24,109		24,109		1
Investment securities – held-to-maturity		224,756		227,539		2
Loans receivable, net of impaired loans and allowance		10,148,470		10,055,901		3
Accrued interest receivable		45,708		45,708		1
Financial liabilities:
Deposits:
Demand and non-interest-bearing	$	2,385,252	$	2,385,252		1
Savings and interest-bearing transaction accounts		6,476,819		6,476,819		1
Time deposits		1,526,431		1,514,670		3
Securities sold under agreements to repurchase		147,789		147,789		1
FHLB and other borrowed funds		1,299,188		1,299,961		2
Accrued interest payable		5,583		5,583		1
Subordinated debentures		368,031		379,146		3

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). ASU 2014-09 provides guidance that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. In August 2015, the FASB issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606), which defers the effective date of this standard to annual and interim periods beginning after December 15, 2017; however, early adoption was permitted for annual and interim reporting periods beginning after December 15, 2016. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, which amends certain aspects of the guidance in ASU 2014-09 (FASB’s new revenue standard) on (1) identifying performance obligations and (2) licensing. ASU 2014-10’seffective date and transition provisions are aligned with the requirements in ASU 2014-09. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which amends certain aspects of the FASB’s new revenue standard, ASU 2014-09. ASU 2016-12’seffective date and transition provisions are aligned with the requirements in ASU 2014-09.

The guidance issued in ASU 2014-09, ASU 2015-14, ASU 2016-10 and ASU 2016-12 permit two implementation approaches, one requiring retrospective application of the new standard with restatement of prior years and one requiring prospective application of the new standard with disclosure of results under old standards. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on our financial position or financial statement disclosures.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. Changes to the current GAAP model primarily affect the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. ASU 2016-01 requires equity investments, other than equity method investments, to be measured at fair value with changes in fair value recognized in net income. The ASU requires a cumulative-effect adjustment to retained earnings as of the beginning of the reporting period of adoption to reclassify the cumulative change in fair value of equity securities previously recognized in accumulated other comprehensive income (“AOCI”). In addition, ASU 2016-01 clarifies guidance related to the valuation allowance assessment when recognizing deferred tax assets resulting from unrealized losses on available-for-sale securities. The new guidance is effective for annual reporting period and interim reporting periods within those annual periods, beginning after December 15, 2017. The Company adopted the guidance effective January 1, 2018 and recorded a cumulative-effect adjustment to retained earnings of $990,000 to reclassify the cumulative change in fair value of equity securities previously recognized in AOCI. For additional information on fair value of assets and liabilities, see Note 20.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). The amendments in ASU 2016-02 address several aspects of lease accounting with the significant change being the recognition of lease assets and lease liabilities for leases previously classified as operating leases. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application of the amendments in ASU 2016-02 is permitted for all entities. The Company has several lease agreements for which the amendments will require the Company to recognize a lease liability to make lease payments and a right-of-use asset which will represent its right to use the underlying asset for the lease term. The Company is currently reviewing the amendments to ensure it is fully compliant by the adoption date and does not expect to early adopt. The impact is not expected to have a material effect on the Company’s financial position or results of operations as the Company does not have a material amount of lease agreements. In addition, the Company will change its current accounting policies to comply with the amendments with such changes as mentioned above. For additional information on the Company’s leases, see Note 18 “Leases” in the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-Kfor the year ended December 31, 2017.

In May 2016, the FASB issued ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update), which rescinds certain SEC guidance from the FASB Accounting Standards Codification in response to announcements made by the SEC staff at the Emerging Issues Task Force’s (“EITF”) March 3, 2016, meeting. ASU 2016-11 is effective at the same time as ASU 2014-09 and ASU 2014-16. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In June 2016, the FASB issued ASU 2016-13, Measurement of Credit Losses on Financial Instruments, which amends the FASB’s guidance on the impairment of financial instruments. The amendments in ASU 2016-13 replace the incurred loss model with a methodology that reflects expected credit losses over the life of the loan and requires consideration of a broader range of reasonable and supportable information to calculate credit loss estimates, known as the current expected credit loss (“CECL”) model. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which the FASB believes will result in more timely recognition of such losses. ASU 2016-13 is also intended to reduce the complexity of U.S. GAAP by decreasing the number of credit impairment models that entities use to account for debt instruments. ASU 2016-13 is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. The allowance for loan losses is a material estimate of the Company, and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the allowance for loan losses at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the allowance for loan losses, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. The Company will also develop new procedures for determining an allowance for credit losses relating to held-to-maturity investment securities. In addition, the current accounting policy and procedures for other-than-temporary impairment on available-for-sale investment securities will be replaced with an allowance approach. The Company is currently evaluating the impact, if any, ASU 2016-13 will have on its financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. It is too early to assess the impact that the implementation of this guidance will have on the Company’s consolidated financial statements; however, the Company has begun developing processes and procedures to ensure it is fully compliant with the amendments at the required adoption date. Among other things, the Company has initiated data gathering and assessment to support forecasting of asset quality, loan balances, and portfolio net charge-offs and has developed an in-house data warehouse, developed asset quality forecast models and evaluated potential software vendors in preparation for the implementation of this standard. For additional information on the allowance for loan losses, see Note 5.

In August 2016, the FASB issued ASU 2016-15, Classification of Certain Cash Receipts and Cash Payments, which amends the guidance in ASC 230 on the classification of certain cash receipts and payments in the statement of cash flows. The primary purpose of ASU 2016-15 is to reduce the diversity in practice that has resulted from the lack of consistent principles on this topic. ASU 2016-15’s amendments add or clarify guidance on eight cash flow issues including debt prepayment or debt extinguishment costs; settlement of zero-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies; including bank-owned life insurance policies; distributions received from equity method investees; beneficial interests in securitization transactions and separately identifiable cash flows and application of the predominance principle. ASU 2016-15 is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted and the guidance must be applied retrospectively to all periods presented but may be applied prospectively from the earliest date practicable if retrospective application would be impracticable. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s statement of cash flows or financial statement disclosures.

In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory, which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The amendments are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning period of adoption. Early adoption is permitted in the first interim period of an annual reporting period for which financial statements have not been issued. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (a consensus of the FASB Emerging Issues Task Force), which clarifies how entities should present restricted cash and restricted cash equivalents in the statement of cash flows, and, as a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. An entity with a material balance of restricted cash and restricted cash equivalents must disclose information about the nature of the restrictions. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, and the new guidance must be applied retrospectively to all periods presented. The Company adopted the guidance effective January 1, 2018 and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which provides guidance to entities to assist with evaluating when a set of transferred assets and activities (collectively, the “set”) is a business and provides a screen to determine when a set is not a business. Under the new guidance, when substantially all of the fair value of gross assets acquired (or disposed of) is concentrated in a single identifiable asset, or group of similar assets, the assets acquired would not represent a business. Also, to be considered a business, an acquisition would have to include an input and a substantive process that together significantly contribute to the ability to produce outputs. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and should be applied on a prospective basis to any transactions occurring within the period of adoption. Early adoption is permitted for interim or annual periods in which the financial statements have not been issued. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments – Equity Method and Joint Ventures (Topic 323). The amendments in the update relate to SEC paragraphs pursuant to Staff Announcements at the September 22, 2016 and November 17, 2016 EITF meetings related to disclosure of the impact of recently issued accounting standards. The SEC staff’s view that a registrant should evaluate ASC updates that have not yet been adopted to determine the appropriate financial disclosures about the potential material effects of the updates on the financial statements when adopted. If a registrant does not know or cannot reasonably estimate the impact of an update, then in addition to making a statement to that effect, the registrant should consider additional qualitative financial statement disclosures to assist the reader in assessing the significance of the impact. The staff expects the additional qualitative disclosures to include a description of the effect of the accounting policies expected to be applied compared to current accounting policies. Also, the registrant should describe the status of its process to implement the new standards and the significant implementation matters yet to be addressed. The amendments specifically addressed recent ASC amendments to ASU 2016-02, Leases, and ASU 2014-09, Revenue from Contracts with Customers, although, the amendments apply to any subsequent amendments to guidance in the ASC. The Company adopted the amendments in this update during the fourth quarter of 2016, and appropriate disclosures have been included in this Note for each recently issued accounting standard.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which eliminates the requirement to determine the fair value of individual assets and liabilities of a reporting unit to measure goodwill impairment. Under the amendments in the new ASU, goodwill impairment testing will be performed by comparing the fair value of the reporting unit with its carrying amount and recognizing an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss should not exceed the total amount of goodwill allocated to that reporting unit. The new standard is effective for annual and interim goodwill impairment tests in fiscal years beginning after December 15, 2019 and should be applied on a prospective basis. Early adoption is permitted for annual or interim goodwill impairment testing performed after January 1, 2017. The Company has goodwill from prior business combinations and performs an annual impairment test or more frequently if changes or circumstances occur that would more-likely-than-not reduce the fair value of the reporting unit below its carrying value. During 2017, the Company performed its impairment assessment and determined the fair value of the aggregated reporting units exceed the carrying value, such that the Company’s goodwill was not considered impaired. Although the Company cannot anticipate future goodwill impairment assessments, based on the most recent assessment it is unlikely that an impairment amount would need to be calculated, and, therefore, the Company does not anticipate a material impact from these amendments to the Company’s financial position and results of operations. The current accounting policies and processes are not anticipated to change, except for the elimination of the Step 2 analysis.

In February 2017, the FASB issued ASU 2017-05, Other Income: Gains and Losses from the Derecognition of Nonfinancial Assets, which clarifies the scope of the FASB’s guidance on nonfinancial asset derecognition (ASC 610-20) as well as the accounting for partial sales of nonfinancial assets. The ASU conforms the derecognition guidance on nonfinancial assets with the model for transactions in the new revenue standard (ASC 606, as amended). The ASU requires an entity to derecognize the nonfinancial asset or in-substance nonfinancial asset in a partial sale transaction when (1) the entity ceases to have a controlling financial interest in a subsidiary under ASC 810 and (2) control of the asset is transferred in accordance with ASC 606. The entity therefore has to consider repurchase agreements (e.g., a call option to repurchase the ownership interest in a subsidiary) in its assessment and may not be able to derecognize the nonfinancial assets, even though it no longer has a controlling financial interest in a subsidiary in accordance with ASC 810. The ASU illustrates the application of this guidance in ASC 610-20-55-15 and 55-16. The effective date of the new guidance is aligned with the requirements in the new revenue standard, which is effective for public entities for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2017, and for nonpublic entities for annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In March 2017, the FASB issued ASU 2017-08, Receivables – Nonrefundable Fees and Other Costs (Topic 310): Premium Amortization on Purchased Callable Debt Securities, which amends the amortization period for certain purchased callable debt securities held at a premium. This ASU will shorten the amortization period for the premium to be amortized to the earliest call date. This ASU does not apply to securities held at a discount, which will continue to be amortized to maturity. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018. The guidance should be applied using a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. Early adoption is permitted, including adoption in an interim period. The Company early adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on the Company’s financial position or financial statement disclosures.

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718): Scope of Modification Accounting, which amends the scope of modification accounting for share-based payment arrangements. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. The amendments in ASU 2017-09 should be applied prospectively to an award modified on or after the adoption date. This ASU is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, including adoption in an interim period. The Company adopted the guidance effective January 1, 2018. The Company does not anticipate any modifications to its existing awards, and therefore, the adoption of ASU 2017-09 is not expected to have a significant impact on the Company’s financial position, results of operations, or its financial statement disclosures.

In July 2017, the FASB issued ASU 2017-11, Earnings Per Share (Topic 260), Distinguishing Liabilities from Equity (Topic 480) and Derivatives and Hedging (Topic 815): I. Accounting for Certain Financial Instruments with Down Round Features; II. Replacement of the Indefinite Deferral for Mandatorily Redeemable Financial Instruments of Certain Nonpublic Entities and Certain Mandatorily Redeemable Non-Controlling Interests with a Scope Exception. Part I of this update addresses the complexity of accounting for certain financial instruments with down round features. Down round features are features of certain equity-linked instruments (or embedded features) that result in the strike price being reduced on the basis of the pricing of future equity offerings. Current accounting guidance creates cost and complexity for entities that issue financial instruments (such as warrants and convertible instruments) with down round features that require fair value measurement of the entire instrument or conversion option. Part II of this update addresses the difficulty of navigating Topic 480, Distinguishing Liabilities from Equity, because of the existence of extensive pending content in the FASB Accounting Standards Codification. This pending content is the result of the indefinite deferral of accounting requirements about mandatorily redeemable financial instruments of certain nonpublic entities and certain mandatorily redeemable non-controlling interests. The amendments in Part II of this update do not have an accounting effect. This ASU is effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact, if any, ASU 2017-11 will have on its financial position, results of operations, and its financial statement disclosures. The Company’s evaluation process includes, but is not limited to, identifying transactions and accounts within the scope of the guidance, reviewing its accounting and disclosures for these transactions and accounts, and identifying and implementing any necessary changes to its accounting and disclosures as a result of the guidance. The Company is also identifying and implementing changes to its business processes, systems and controls to support adoption of the new standard in 2019.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815) – Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting model to provide better insight to risk management activities in the financial statements, reduces the complexity in cash flow hedges of interest rate risk, eliminates the requirement to separately measure and report hedge ineffectiveness, requires the entire change in the fair value of a hedging instrument included in the assessment of the hedge effectiveness to be recorded in other comprehensive income, with amounts reclassified to earnings to be presented in the same line item used to present the earnings effect of the hedged item when the hedged item affects earnings and allows the initial prospective quantitative assessment of hedge effectiveness to be performed at any time after hedge designation, but no later than the first quarterly effectiveness testing date. This ASU is effective for interim and annual periods beginning after December 15, 2018, and early adoption is permitted. The amendments in this standard must be applied using the modified retrospective approach for cash flow and net investment hedge relationships existing on the date of adoption. The Company is currently evaluating the impact, if any, ASU 2017-12 will have on its financial position, results of operations, and its financial statement disclosures. The Company’s evaluation process includes, but is not limited to, identifying transactions and accounts within the scope of the guidance, reviewing its accounting and disclosures for these transactions and accounts, and identifying and implementing any necessary changes to its accounting and disclosures as a result of the guidance. The Company is also identifying and implementing changes to its business processes, systems and controls to support adoption of the new standard in 2019.

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which was issued to address the income tax accounting treatment of the stranded tax effects within other comprehensive income due to the prohibition of backward tracing due to an income tax rate change that was initially recorded in other comprehensive income. This issue came about from the enactment of the TCJA on December 22, 2017 that changed the Company’s federal income tax rate from 35% to 21%. The ASU changed current accounting whereby an entity may elect to reclassify the stranded tax effect from accumulated other comprehensive income to retained earnings. The amendments in this ASU are effective for interim and annual reporting periods beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. Adoption of this ASU is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the tax laws or rates were recognized. The Company plans to adopt the guidance January 1, 2019. As of September 30, 2018, the balance of the stranded tax effects within other comprehensive income was $534,000.

In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in ASU 2018-03 make technical corrections to certain aspects of ASU 2016-01 (on recognition of financial assets and financial liabilities), including the following:

• Equity securities without a readily determinable fair value – discontinuation.

• Equity securities without a readily determinable fair value – adjustments.

• Forward contracts and purchased options.

• Presentation requirements for certain fair value option liabilities.

• Fair value option liabilities denominated in a foreign currency.

• Transition guidance for equity securities without a readily determinable fair value.

The amendments in ASU 2018-03 are effective for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years beginning after June 15, 2018. Early adoption of ASU 2018-03 is permitted for all entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, if they have adopted ASU 2016-01. The Company adopted the guidance effective January 1, 2018, and its adoption did not have a significant impact on our financial position or financial statement disclosures.

In March 2018, the FASB issued ASU 2018-04, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 117 and SEC Release No. 33-9273. The ASU adds, amends, and supersedes various paragraphs that contain SEC guidance in ASC 320, Investments – Debt Securities, and ASC 980, Regulated Operations. The effective date for the amendments to ASC 320 is the same as the effective date of ASU 2016-01. Other amendments are effective upon issuance. The Company has adopted the amendments to ASC 320 effective January 1, 2018, and the adoption did not have a significant impact on our financial position or financial statement disclosures. The Company has adopted the other amendments effective March 9, 2018, and the adoption did not have a significant impact on our financial position or financial statement disclosures.

In March 2018, the FASB issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118. The ASU adds seven paragraphs to ASC 740, Income Taxes, that contain SEC guidance related to SAB 118 (codified as SEC SAB Topic 5.EE, Income Tax Accounting Implications of the Tax Cuts and Jobs Act. This ASU was effective upon issuance. The Company adopted the guidance effective March 13, 2018, and its adoption did not have a significant impact on our financial position or financial statement disclosures.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The guidance also specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than an entity’s adoption date of Topic 606. This guidance is applicable to the Company beginning January 1, 2019. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement. The new guidance modifies disclosure requirements related to fair value measurement. The amendments in this ASU are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Implementation on a prospective or retrospective basis varies by specific disclosure requirement. Early adoption is permitted. The standard also allows for early adoption of any removed or modified disclosures upon issuance of this ASU while delaying adoption of the additional disclosures until their effective date. This guidance is applicable to the Company beginning January 1, 2020. The Company is currently evaluating the potential effects of this guidance on its consolidated financial statements.

Stonegate Bank [Member]

Business Combinations

The Company has determined that the acquisition of the net assets of Stonegate constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change.

Nonrefundable Fees and Other Costs

The Company evaluated $2.37 billion of the loans purchased in conjunction with the acquisition in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs, which were recorded with a $73.3 million discount. As a result, the fair value discount on these loans is being accreted into interest income over the weighted average life of the loans using a constant yield method.

Giant Holdings, Inc. [Member]

Business Combinations

The Company has determined that the acquisition of the net assets of GHI constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change.

Nonrefundable Fees and Other Costs

The Company evaluated $315.6 million of the loans purchased in conjunction with the acquisition in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs, which were recorded with a $3.6 million discount. As a result, the fair value discount on these loans is being accreted into interest income over the weighted-average life of the loans using a constant yield method.

The Bank of Commerce [Member]

Business Combinations

The Company has determined that the acquisition of the net assets of BOC constitutes a business combination as defined by the ASC Topic 805. Accordingly, the assets acquired and liabilities assumed are presented at their fair values as required. Fair values were determined based on the requirements of ASC Topic 820. In many cases, the determination of these fair values required management to make estimates about discount rates, future expected cash flows, market conditions and other future events that are highly subjective in nature and subject to change.

Nonrefundable Fees and Other Costs

The Company evaluated $106.8 million of the loans purchased in conjunction with the acquisition in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs, which were recorded with a $3.0 million discount. As a result, the fair value discount on these loans is being accreted into interest income over the weighted-average life of the loans using a constant yield method.

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Nature of Operations and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Computation of Basic and Diluted Earnings per Common Share (EPS)

The following table sets forth the computation of basic and diluted earnings per share (“EPS”) for the following periods:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Net income	$	80,284	$	14,821	$	229,373	$	111,774
Average shares outstanding		174,440		144,238		173,870		143,111
Effect of common stock options		427		749		524		728
Average diluted shares outstanding		174,867		144,987		174,394		143,839
Basic earnings per share	$	0.46	$	0.10	$	1.32	$	0.78
Diluted earnings per share	$	0.46	$	0.10	$	1.32	$	0.78

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Business Combinations (Tables)

9 Months Ended

Sep. 30, 2018

Stonegate Bank [Member]

Breakdown of Assets Acquired and Liabilities Assumed

The following schedule is a breakdown of the assets acquired and liabilities assumed as of the acquisition date:

	Stonegate Bank
	Acquired from Stonegate			Fair Value Adjustments			As Recorded by HBI
	(Dollars in thousands)
Assets
Cash and due from banks	$	100,958		$	—		$	100,958
Interest-bearing deposits with other banks		135,631			—			135,631
Federal funds sold		1,515			—			1,515
Investment securities		103,041			474			103,515
Loans receivable		2,446,149			(74,067	)		2,372,082
Allowance for loan losses		(21,507	)		21,507			—
Loans receivable, net		2,424,642			(52,560	)		2,372,082
Bank premises and equipment, net		38,868			(3,572	)		35,296
Foreclosed assets held for sale		4,187			(801	)		3,386
Cash value of life insurance		48,000			—			48,000
Accrued interest receivable		7,088			—			7,088
Deferred tax asset, net		27,340			11,990			39,330
Goodwill		81,452			(81,452	)		—
Core deposit and other intangibles		10,505			20,364			30,869
Other assets		9,598			255			9,853
Total assets acquired	$	2,992,825		$	(105,302	)	$	2,887,523
Liabilities
Deposits
Demand and non-interest-bearing	$	585,959		$	—		$	585,959
Savings and interest-bearing transaction accounts		1,776,256			—			1,776,256
Time deposits		163,567			(85	)		163,482
Total deposits		2,525,782			(85	)		2,525,697
FHLB borrowed funds		32,667			184			32,851
Securities sold under agreements to repurchase		26,163			—			26,163
Accrued interest payable and other liabilities		8,100			(484	)		7,616
Subordinated debentures		8,345			1,489			9,834
Total liabilities assumed		2,601,057			1,104			2,602,161
Equity
Total equity assumed		391,768			(391,768	)		—
Total liabilities and equity assumed	$	2,992,825		$	(390,664	)		2,602,161
Net assets acquired								285,362
Purchase price								792,370
Goodwill							$	507,008

Schedule of Unaudited Pro Forma Combined Financial Information

The following schedule represents the unaudited pro forma combined financial information as of the years ended December 31, 2017 and 2016, assuming the acquisition was completed as of January 1, 2017 and 2016, respectively:

	Years Ended December 31,
	2017		2016
	(In thousands, except per share data)
Total interest income	$	610,697	$	538,258
Total non-interest income		107,179		95,555
Net income available to all shareholders		143,979		206,081
Basic earnings per common share	$	0.79	$	1.20
Diluted earnings per common share		0.79		1.20

The Bank of Commerce [Member]

Breakdown of Assets Acquired and Liabilities Assumed

The following schedule is a breakdown of the assets acquired and liabilities assumed as of the acquisition date:

	The Bank of Commerce
	Acquired from BOC			Fair Value Adjustments			As Recorded by HBI
	(Dollars in thousands)
Assets
Cash and due from banks	$	4,610		$	—		$	4,610
Interest-bearing deposits with other banks		14,360			—			14,360
Investment securities		25,926			(113	)		25,813
Loans receivable		124,289			(5,751	)		118,538
Allowance for loan losses		(2,037	)		2,037			—
Loans receivable, net		122,252			(3,714	)		118,538
Bank premises and equipment, net		1,887			—			1,887
Foreclosed assets held for sale		8,523			(3,165	)		5,358
Accrued interest receivable		481			—			481
Deferred tax asset, net		—			4,198			4,198
Core deposit intangible		—			968			968
Other assets		1,880			—			1,880
Total assets acquired	$	179,919		$	(1,826	)	$	178,093
Liabilities
Deposits
Demand and non-interest-bearing	$	27,245		$	—		$	27,245
Savings and interest-bearing transaction accounts		32,300			—			32,300
Time deposits		79,945			270			80,215
Total deposits		139,490			270			139,760
FHLB borrowed funds		30,000			42			30,042
Accrued interest payable and other liabilities		564			(255	)		309
Total liabilities assumed	$	170,054		$	57			170,111
Net assets acquired								7,982
Purchase price								4,175
Pre-tax gain on acquisition							$	3,807

Giant Holdings, Inc. [Member]

Breakdown of Assets Acquired and Liabilities Assumed

The following schedule is a breakdown of the assets acquired and liabilities assumed as of the acquisition date:

	Giant Holdings, Inc.
	Acquired from GHI			Fair Value Adjustments			As Recorded by HBI
	(Dollars in thousands)
Assets
Cash and due from banks	$	41,019		$	—		$	41,019
Interest-bearing deposits with other banks		4,057			1			4,058
Investment securities		1,961			(5	)		1,956
Loans receivable		335,886			(6,517	)		329,369
Allowance for loan losses		(4,568	)		4,568			—
Loans receivable, net		331,318			(1,949	)		329,369
Bank premises and equipment, net		2,111			608			2,719
Cash value of life insurance		10,861			—			10,861
Accrued interest receivable		850			—			850
Deferred tax asset, net		2,286			1,807			4,093
Core deposit and other intangibles		172			3,238			3,410
Other assets		254			(489	)		(235	)
Total assets acquired	$	394,889		$	3,211		$	398,100
Liabilities
Deposits
Demand and non-interest-bearing	$	75,993		$	—		$	75,993
Savings and interest-bearing transaction accounts		139,459			—			139,459
Time deposits		88,219			324			88,543
Total deposits		303,671			324			303,995
FHLB borrowed funds		26,047			431			26,478
Accrued interest payable and other liabilities		14,552			18			14,570
Total liabilities assumed		344,270			773			345,043
Equity
Total equity assumed		50,619			(50,619	)		—
Total liabilities and equity assumed	$	394,889		$	(49,846	)		345,043
Net assets acquired								53,057
Purchase price								96,015
Goodwill							$	42,958

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Investment Securities (Tables)

9 Months Ended

Sep. 30, 2018

Text Block [Abstract]

Amortized Cost and Estimated Fair Value of Investment Securities Classified as Available-for-Sale

The amortized cost and estimated fair value of investment securities that are classified as available-for-sale and held-to-maturity are as follows:

	September 30, 2018
	Available-for-Sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	427,722	$	138	$	(7,985	)	$	419,875
Residential mortgage-backed securities		533,106		294		(15,386	)		518,014
Commercial mortgage-backed securities		478,409		87		(14,636	)		463,860
State and political subdivisions		311,117		1,235		(6,202	)		306,150
Other securities		35,554		1,160		(183	)		36,531
Total	$	1,785,908	$	2,914	$	(44,392	)	$	1,744,430

	December 31, 2017
	Available-for-Sale
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	407,387	$	899	$	(1,982	)	$	406,304
Residential mortgage-backed securities		481,981		538		(4,919	)		477,600
Commercial mortgage-backed securities		497,870		332		(4,430	)		493,772
State and political subdivisions		247,292		3,783		(774	)		250,301
Other securities		34,617		1,225		(302	)		35,540
Total	$	1,669,147	$	6,777	$	(12,407	)	$	1,663,517

Schedule of Amortized Cost and Estimated Fair Value of Investment Securities Classified as Held-to-Maturity

The amortized cost and estimated fair value of investment securities that are classified as available-for-sale and held-to-maturity are as follows:

	Held-to-Maturity
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	3,587	$	—	$	(87	)	$	3,500
Residential mortgage-backed securities		47,670		23		(1,395	)		46,298
Commercial mortgage-backed securities		12,705		—		(370	)		12,335
State and political subdivisions		135,304		1,368		(253	)		136,419
Total	$	199,266	$	1,391	$	(2,105	)	$	198,552

	Held-to-Maturity
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value
	(In thousands)
U.S. government-sponsored enterprises	$	5,791	$	15	$	(15	)	$	5,791
Residential mortgage-backed securities		56,982		107		(402	)		56,687
Commercial mortgage-backed securities		16,625		114		(40	)		16,699
State and political subdivisions		145,358		3,031		(27	)		148,362
Total	$	224,756	$	3,267	$	(484	)	$	227,539

Amortized Cost and Estimated Fair Value of Securities Contractual Maturity

The amortized cost and estimated fair value of securities classified as available-for-sale and held-to-maturity at September 30, 2018, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
	(In thousands)
Due in one year or less	$	188,664	$	185,303	$	64,821	$	65,527
Due after one year through five years		997,039		975,767		89,950		89,016
Due after five years through ten years		468,969		455,579		11,773		11,472
Due after ten years		131,236		127,781		32,722		32,537
Total	$	1,785,908	$	1,744,430	$	199,266	$	198,552

Unrealized Losses and Estimated Fair Value of Investment Securities Available for Sale and Held to Maturity

The following shows gross unrealized losses and estimated fair value of investment securities classified as available-for-sale and held-to-maturity with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual investment securities have been in a continuous loss position as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
U.S. government-sponsored enterprises	$	253,980	$	(3,686	)	$	135,156	$	(4,386	)	$	389,136	$	(8,072	)
Residential mortgage-backed securities		212,531		(4,745	)		315,803		(12,036	)		528,334		(16,781	)
Commercial mortgage-backed securities		233,726		(6,738	)		226,854		(8,268	)		460,580		(15,006	)
State and political subdivisions		174,397		(4,385	)		42,238		(2,070	)		216,635		(6,455	)
Other securities		—		—			9,792		(183	)		9,792		(183	)
Total	$	874,634	$	(19,554	)	$	729,843	$	(26,943	)	$	1,604,477	$	(46,497	)

	December 31, 2017
	Less Than 12 Months					12 Months or More					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(In thousands)
U.S. government-sponsored enterprises	$	234,213	$	(1,288	)	$	40,122	$	(709	)	$	274,335	$	(1,997	)
Residential mortgage-backed securities		389,541		(3,656	)		99,989		(1,665	)		489,530		(5,321	)
Commercial mortgage-backed securities		314,301		(2,343	)		120,365		(2,127	)		434,666		(4,470	)
State and political subdivisions		41,299		(331	)		20,980		(470	)		62,279		(801	)
Other securities		—		—			9,852		(302	)		9,852		(302	)
Total	$	979,354	$	(7,618	)	$	291,308	$	(5,273	)	$	1,270,662	$	(12,891	)

Schedule of Income Earned on Securities

Income earned on securities for the three and nine months ended September 30, 2018 and 2017, is as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
Taxable:	(In thousands)
Available-for-sale	$	8,578	$	6,527	$	25,571	$	17,001
Held-to-maturity		433		544		1,389		1,982
Non-taxable:
Available-for-sale		2,205		1,627		6,006		4,757
Held-to-maturity		1,222		1,405		3,795		4,185
Total	$	12,438	$	10,103	$	36,761	$	27,925

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Loans Receivable (Tables)

9 Months Ended

Sep. 30, 2018

Receivables [Abstract]

Summary of Various Categories of Loans Receivable

The various categories of loans receivable are summarized as follows:

	September 30, 2018		December 31, 2017
	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	4,685,827	$	4,600,117
Construction/land development		1,550,910		1,700,491
Agricultural		72,930		82,229
Residential real estate loans
Residential 1-4 family		1,982,666		1,970,311
Multifamily residential		608,608		441,303
Total real estate		8,900,941		8,794,451
Consumer		428,192		46,148
Commercial and industrial		1,303,841		1,297,397
Agricultural		58,644		49,815
Other		141,197		143,377
Total loans receivable	$	10,832,815	$	10,331,188

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Allowance for Loan Losses, Credit Quality and Other (Tables)

9 Months Ended

Sep. 30, 2018

Text Block [Abstract]

Summary of Changes in Allowance for Loan Losses

The following table presents a summary of changes in the allowance for loan losses:

	Nine Months Ended September 30, 2018
Allowance for loan losses:	(In thousands)
Beginning balance	$	110,266
Loans charged off		(7,173	)
Recoveries of loans previously charged off		2,776
Net loans recovered (charged off)		(4,397	)
Provision for loan losses		4,322
Balance, September 30, 2018	$	110,191

Balance of Allowance for Loan Losses

The following tables present the balance in the allowance for loan losses for the three and nine-month period ended September 30, 2018, and the allowance for loan losses and recorded investment in loans based on portfolio segment by impairment method as of September 30, 2018. Allocation of a portion of the allowance to one type of loans does not preclude its availability to absorb losses in other categories.

	Three Months Ended September 30, 2018
	Construction/ Land Development			Other Commercial Real Estate			Residential Real Estate			Commercial & Industrial			Consumer & Other			Unallocated		Total
Allowance for loan losses:	(In thousands)
Beginning balance	$	20,243		$	45,985		$	24,205		$	16,193		$	3,518		$	1,372	$	111,516
Loans charged off		(337	)		(144	)		(608	)		(744	)		(668	)		—		(2,501	)
Recoveries of loans previously charged off		90			195			309			251			331			—		1,176
Net loans recovered (charged off)		(247	)		51			(299	)		(493	)		(337	)		—		(1,325	)
Provision for loan losses		(982	)		(683	)		193			(1,923	)		479			2,916		—
Balance, September 30	$	19,014		$	45,353		$	24,099		$	13,777		$	3,660		$	4,288	$	110,191

	Nine Months Ended September 30, 2018
	Construction/ Land Development			Other Commercial Real Estate			Residential Real Estate			Commercial & Industrial			Consumer & Other			Unallocated		Total
Allowance for loan losses:	(In thousands)
Beginning balance	$	20,343		$	43,939		$	24,506		$	15,292		$	3,334		$	2,852	$	110,266
Loans charged off		(399	)		(981	)		(2,339	)		(1,816	)		(1,638	)		—		(7,173	)
Recoveries of loans previously charged off		209			383			844			568			772			—		2,776
Net loans recovered (charged off)		(190	)		(598	)		(1,495	)		(1,248	)		(866	)		—		(4,397	)
Provision for loan losses		(1,139	)		2,012			1,088			(267	)		1,192			1,436		4,322
Balance, September 30	$	19,014		$	45,353		$	24,099		$	13,777		$	3,660		$	4,288	$	110,191

	As of September 30, 2018
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Unallocated		Total
Allowance for loan losses:	(In thousands)
Period end amount allocated to:
Loans individually evaluated for impairment	$	854	$	533	$	115	$	9	$	—	$	—	$	1,511
Loans collectively evaluated for impairment		18,150		44,590		23,355		13,672		3,660		4,288		107,715
Loans evaluated for impairment balance, September 30		19,004		45,123		23,470		13,681		3,660		4,288		109,226
Purchased credit impaired loans		10		230		629		96		—		—		965
Balance, September 30	$	19,014	$	45,353	$	24,099	$	13,777	$	3,660	$	4,288	$	110,191
Loans receivable:
Period end amount allocated to:
Loans individually evaluated for impairment	$	14,876	$	60,572	$	19,933	$	30,716	$	2,064	$	—	$	128,161
Loans collectively evaluated for impairment		1,526,689		4,613,352		2,534,630		1,256,796		623,747		—		10,555,214
Loans evaluated for impairment balance, September 30		1,541,565		4,673,924		2,554,563		1,287,512		625,811		—		10,683,375
Purchased credit impaired loans		9,345		84,833		36,711		16,329		2,222		—		149,440
Balance, September 30	$	1,550,910	$	4,758,757	$	2,591,274	$	1,303,841	$	628,033	$	—	$	10,832,815

The following tables present the balances in the allowance for loan losses for the nine-month period ended September 30, 2017 and the year ended December 31, 2017, and the allowance for loan losses and recorded investment in loans receivable based on portfolio segment by impairment method as of December 31, 2017. Allocation of a portion of the allowance to one type of loans does not preclude its availability to absorb losses in other categories.

	Year Ended December 31, 2017
	Construction/ Land Development			Other Commercial Real Estate			Residential Real Estate			Commercial & Industrial			Consumer & Other			Unallocated			Total
Allowance for loan losses:	(In thousands)
Beginning balance	$	11,522		$	28,188		$	16,517		$	12,756		$	4,188		$	6,831		$	80,002
Loans charged off		(326	)		(1,655	)		(2,288	)		(779	)		(1,063	)		—			(6,111	)
Recoveries of loans previously charged off		227			710			254			252			503			—			1,946
Net loans recovered (charged off)		(99	)		(945	)		(2,034	)		(527	)		(560	)		—			(4,165	)
Provision for loan losses		1,419			600			3,232			599			(565	)		(984	)		4,301
Balance, September 30		12,842			27,843			17,715			12,828			3,063			5,847			80,138
Loans charged off		(1,306	)		(2,094	)		(1,692	)		(4,799	)		(1,469	)		—			(11,360	)
Recoveries of loans previously charged off		235			332			422			212			338			—			1,539
Net loans recovered (charged off)		(1,071	)		(1,762	)		(1,270	)		(4,587	)		(1,131	)		—			(9,821	)
Provision for loan losses		8,572			17,858			8,061			7,051			1,402			(2,995	)		39,949
Balance, December 31	$	20,343		$	43,939		$	24,506		$	15,292		$	3,334		$	2,852		$	110,266

	As of December 31, 2017
	Construction/ Land Development		Other Commercial Real Estate		Residential Real Estate		Commercial & Industrial		Consumer & Other		Unallocated		Total
Allowance for loan losses:	(In thousands)
Period end amount allocated to:
Loans individually evaluated for impairment	$	1,378	$	768	$	188	$	843	$	7	$	—	$	3,184
Loans collectively evaluated for impairment		18,954		42,824		23,341		14,290		3,310		2,852		105,571
Loans evaluated for impairment balance, December 31		20,332		43,592		23,529		15,133		3,317		2,852		108,755
Purchased credit impaired loans		11		347		977		159		17		—		1,511
Balance, December 31	$	20,343	$	43,939	$	24,506	$	15,292	$	3,334	$	2,852	$	110,266
Loans receivable:
Period end amount allocated to:
Loans individually evaluated for impairment	$	26,860	$	124,124	$	20,431	$	21,867	$	500	$	—	$	193,782
Loans collectively evaluated for impairment		1,658,519		4,442,201		2,341,081		1,261,161		236,392		—		9,939,354
Loans evaluated for impairment balance, December 31		1,685,379		4,566,325		2,361,512		1,283,028		236,892		—		10,133,136
Purchased credit impaired loans		15,112		116,021		50,102		14,369		2,448		—		198,052
Balance, December 31	$	1,700,491	$	4,682,346	$	2,411,614	$	1,297,397	$	239,340	$	—	$	10,331,188

Summary of Aging Analysis for Loans Receivable

The following is an aging analysis for loans receivable as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	6,496	$	4,411	$	22,628	$	33,535	$	4,652,292	$	4,685,827	$	11,405
Construction/land development		803		584		8,517		9,904		1,541,006		1,550,910		3,551
Agricultural		—		—		30		30		72,900		72,930		—
Residential real estate loans
Residential 1-4 family		9,141		2,441		15,821		27,403		1,955,263		1,982,666		1,509
Multifamily residential		482		—		983		1,465		607,143		608,608		—
Total real estate		16,922		7,436		47,979		72,337		8,828,604		8,900,941		16,465
Consumer		784		73		2,004		2,861		425,331		428,192		1,796
Commercial and industrial		4,868		384		6,449		11,701		1,292,140		1,303,841		2,006
Agricultural and other		1,260		23		33		1,316		198,525		199,841		—
Total	$	23,834	$	7,916	$	56,465	$	88,215	$	10,744,600	$	10,832,815	$	20,267

	December 31, 2017
	Loans Past Due 30-59 Days		Loans Past Due 60-89 Days		Loans Past Due 90 Days or More		Total Past Due		Current Loans		Total Loans Receivable		Accruing Loans Past Due 90 Days or More
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	6,331	$	1,480	$	12,719	$	20,530	$	4,579,587	$	4,600,117	$	3,119
Construction/land development		834		13		8,258		9,105		1,691,386		1,700,491		3,247
Agricultural		—		221		19		240		81,989		82,229		—
Residential real estate loans
Residential 1-4 family		9,066		2,013		16,612		27,691		1,942,620		1,970,311		2,175
Multifamily residential		—		—		253		253		441,050		441,303		100
Total real estate		16,231		3,727		37,861		57,819		8,736,632		8,794,451		8,641
Consumer		252		51		171		474		45,674		46,148		26
Commercial and industrial		2,073		1,030		6,528		9,631		1,287,766		1,297,397		1,944
Agricultural and other		288		113		137		538		192,654		193,192		54
Total	$	18,844	$	4,921	$	44,697	$	68,462	$	10,262,726	$	10,331,188	$	10,665

Summary of Impaired Loans

The following is a summary of the impaired loans as of September 30, 2018 and December 31, 2017:

	September 30, 2018
							Three Months Ended				Nine Months Ended
	Unpaid Contractual Principal Balance		Total Recorded Investment		Allocation of Allowance for Loan Losses		Average Recorded Investment		Interest Recognized		Average Recorded Investment		Interest Recognized
Loans without a specific valuation allowance	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	44	$	44	$	—	$	36	$	1	$	33	$	2
Construction/land development		18		18		—		18		—		30		1
Agricultural		13		13		—		14		—		16		1
Residential real estate loans
Residential 1-4 family		286		286		—		237		5		186		14
Multifamily residential		—		—		—		—		—		—		—
Total real estate		361		361		—		305		6		265		18
Consumer		27		28		—		29		1		23		2
Commercial and industrial		202		202		—		225		3		189		8
Agricultural and other		—		—		—		—		—		—		—
Total loans without a specific valuation allowance		590		591		—		559		10		477		28
Loans with a specific valuation allowance
Real estate:
Commercial real estate loans
Non-farm/non-residential		41,299		37,365		524		37,770		375		33,965		1,107
Construction/land development		13,509		12,446		854		12,614		75		12,398		234
Agricultural		299		303		9		410		4		412		14
Residential real estate loans
Residential 1-4 family		19,248		17,241		67		17,678		51		18,639		429
Multifamily residential		2,405		2,405		48		2,561		16		2,116		66
Total real estate		76,760		69,760		1,502		71,033		521		67,530		1,850
Consumer		2,245		2,003		—		1,092		24		638		42
Commercial and industrial		10,269		6,619		9		8,276		35		11,361		223
Agricultural and other		33		33		—		103		—		174		3
Total loans with a specific valuation allowance		89,307		78,415		1,511		80,504		580		79,703		2,118
Total impaired loans
Real estate:
Commercial real estate loans
Non-farm/non-residential		41,343		37,409		524		37,806		376		33,998		1,109
Construction/land development		13,527		12,464		854		12,632		75		12,428		235
Agricultural		312		316		9		424		4		428		15
Residential real estate loans
Residential 1-4 family		19,534		17,527		67		17,915		56		18,825		443
Multifamily residential		2,405		2,405		48		2,561		16		2,116		66
Total real estate		77,121		70,121		1,502		71,338		527		67,795		1,868
Consumer		2,272		2,031		—		1,121		25		661		44
Commercial and industrial		10,471		6,821		9		8,501		38		11,550		231
Agricultural and other		33		33		—		103		—		174		3
Total impaired loans	$	89,897	$	79,006	$	1,511	$	81,063	$	590	$	80,180	$	2,146

Note: Purchased credit impaired loans are accounted for on a pooled basis under ASC 310-30. All of these pools are currently considered to be performing, resulting in none of the purchased credit impaired loans being classified as impaired loans as of September 30, 2018.

	December 31, 2017
							Year Ended
	Unpaid Contractual Principal Balance		Total Recorded Investment		Allocation of Allowance for Loan Losses		Average Recorded Investment		Interest Recognized
Loans without a specific valuation allowance	(In thousands)
Real estate:
Commercial real estate loans
Non-farm/non-residential	$	29	$	29	$	—	$	23	$	2
Construction/land development		64		64		—		31		3
Agricultural		19		—		—		—		1
Residential real estate loans
Residential 1-4 family		115		115		—		135		7
Multifamily residential		—		—		—		—		—
Total real estate		227		208		—		189		13
Consumer		18		—		—		—		1
Commercial and industrial		105		105		—		85		7
Agricultural and other		—		—		—		—		—
Total loans without a specific valuation allowance		350		313		—		274		21
Loans with a specific valuation allowance
Real estate:
Commercial real estate loans
Non-farm/non-residential		29,666		29,040		757		41,772		1,498
Construction/land development		12,976		12,157		1,378		10,556		262
Agricultural		281		303		11		268		11
Residential real estate loans
Residential 1-4 family		19,770		18,689		124		22,347		363
Multifamily residential		1,627		1,627		64		1,412		81
Total real estate		64,320		61,816		2,334		76,355		2,215
Consumer		179		191		—		163		—
Commercial and industrial		16,777		13,007		843		9,726		121
Agricultural and other		297		309		7		644		8
Total loans with a specific valuation allowance		81,573		75,323		3,184		86,888		2,344
Total impaired loans
Real estate:
Commercial real estate loans
Non-farm/non-residential		29,695		29,069		757		41,795		1,500
Construction/land development		13,040		12,221		1,378		10,587		265
Agricultural		300		303		11		268		12
Residential real estate loans
Residential 1-4 family		19,885		18,804		124		22,482		370
Multifamily residential		1,627		1,627		64		1,412		81
Total real estate		64,547		62,024		2,334		76,544		2,228
Consumer		197		191		—		163		1
Commercial and industrial		16,882		13,112		843		9,811		128
Agricultural and other		297		309		7		644		8
Total impaired loans	$	81,923	$	75,636	$	3,184	$	87,162	$	2,365

Note: Purchased credit impaired loans are accounted for on a pooled basis under ASC 310-30. All of these pools are currently considered to be performing resulting in none of the purchased credit impaired loans being classified as impaired loans as of December 31, 2017.

Presentation of Classified Loans by Class and Risk Rating

The Company’s classified loans include loans in risk ratings 6, 7 and 8. The following is a presentation of classified loans (excluding loans accounted for under ASC Topic 310-30) by class as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Risk Rated 6		Risk Rated 7		Risk Rated 8		Classified Total
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	41,424	$	484	$	—	$	41,908
Construction/land development		14,502		860		—		15,362
Agricultural		315		3		—		318
Residential real estate loans
Residential 1-4 family		23,782		253		—		24,035
Multifamily residential		983		—		—		983
Total real estate		81,006		1,600		—		82,606
Consumer		1,117		1		—		1,118
Commercial and industrial		11,237		881		—		12,118
Agricultural and other		50		—		—		50
Total risk rated loans	$	93,410	$	2,482	$	—	$	95,892

	December 31, 2017
	Risk Rated 6		Risk Rated 7		Risk Rated 8		Classified Total
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	20,933	$	518	$	—	$	21,451
Construction/land development		24,013		204		—		24,217
Agricultural		321		—		—		321
Residential real estate loans
Residential 1-4 family		23,420		564		—		23,984
Multifamily residential		939		—		—		939
Total real estate		69,626		1,286		—		70,912
Consumer		159		9		—		168
Commercial and industrial		12,818		80		—		12,898
Agricultural and other		136		—		—		136
Total risk rated loans	$	82,739	$	1,375	$	—	$	84,114

Loans may be classified, but not considered impaired, due to one of the following reasons: (1) The Company has established minimum dollar amount thresholds for loan impairment testing. All loans over $2.0 million that are rated 5 – 8 are individually assessed for impairment on a quarterly basis. Loans rated 5 – 8 that fall under the threshold amount are not individually tested for impairment and therefore are not included in impaired loans; (2) of the loans that are above the threshold amount and tested for impairment, after testing, some are considered to not be impaired and are not included in impaired loans.

The following is a presentation of loans receivable by class and risk rating as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Risk Rated 1		Risk Rated 2		Risk Rated 3		Risk Rated 4		Risk Rated 5		Classified Total		Total
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	993	$	299	$	2,660,482	$	1,863,651	$	33,857	$	41,908	$	4,601,190
Construction/land development		20		736		261,009		1,263,515		923		15,362		1,541,565
Agricultural		—		—		35,336		36,099		981		318		72,734
Residential real estate loans
Residential 1-4 family		770		750		1,454,690		461,225		7,536		24,035		1,949,006
Multifamily residential		—		—		398,294		206,280		—		983		605,557
Total real estate		1,783		1,785		4,809,811		3,830,770		43,297		82,606		8,770,052
Consumer		13,051		995		397,060		13,617		129		1,118		425,970
Commercial and industrial		21,669		8,805		589,856		624,100		30,964		12,118		1,287,512
Agricultural and other		1,045		3,388		134,301		60,520		537		50		199,841
Total risk rated loans	$	37,548	$	14,973	$	5,931,028	$	4,529,007	$	74,927	$	95,892		10,683,375
Purchased credit impaired loans														149,440
Total loans receivable													$	10,832,815

	December 31, 2017
	Risk Rated 1		Risk Rated 2		Risk Rated 3		Risk Rated 4		Risk Rated 5		Classified Total		Total
Real estate:	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	1,015	$	558	$	2,595,844	$	1,745,778	$	119,656	$	21,451	$	4,484,302
Construction/land development		28		583		280,980		1,373,133		6,438		24,217		1,685,379
Agricultural		—		19		53,018		27,515		1,150		321		82,023
Residential real estate loans
Residential 1-4 family		1,140		969		1,414,849		475,619		11,658		23,984		1,928,219
Multifamily residential		—		—		329,070		103,071		213		939		433,293
Total real estate		2,183		2,129		4,673,761		3,725,116		139,115		70,912		8,613,216
Consumer		13,106		808		22,479		8,532		70		168		45,163
Commercial and industrial		20,870		7,543		627,316		592,088		22,313		12,898		1,283,028
Agricultural and other		1,986		3,914		147,323		38,370		—		136		191,729
Total risk rated loans	$	38,145	$	14,394	$	5,470,879	$	4,364,106	$	161,498	$	84,114		10,133,136
Purchased credit impaired loans														198,052
Total loans receivable													$	10,331,188

Presentation of Troubled Debt Restructurings ("TDRs") by Class

The following is a presentation of troubled debt restructurings (“TDRs”) by class as of September 30, 2018 and December 31, 2017:

	September 30, 2018
	Number of Loans		Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
Real estate:	(Dollars in thousands)
Commercial real estate loans
Non-farm/non-residential		16	$	16,018	$	8,177	$	742	$	4,494	$	13,413
Construction/land development		3		641		546		69		—		615
Agricultural		2		345		283		16		—		299
Residential real estate loans
Residential 1-4 family		24		4,494		1,105		353		1,035		2,493
Multifamily residential		3		1,701		1,281		—		287		1,568
Total real estate		48		23,199		11,392		1,180		5,816		18,388
Consumer		4		36		17		11		—		28
Commercial and industrial		13		1,062		396		105		—		501
Total		65	$	24,297	$	11,805	$	1,296	$	5,816	$	18,917

	December 31, 2017
	Number of Loans		Pre- Modification Outstanding Balance		Rate Modification		Term Modification		Rate & Term Modification		Post- Modification Outstanding Balance
Real estate:	(Dollars in thousands)
Commercial real estate loans
Non-farm/non-residential		16	$	16,853	$	8,815	$	250	$	5,513	$	14,578
Construction/land development		5		782		689		75		—		764
Agricultural		2		345		282		22		—		304
Residential real estate loans
Residential 1-4 family		21		5,607		1,926		81		1,238		3,245
Multifamily residential		3		1,701		1,340		—		287		1,627
Total real estate		47		25,288		13,052		428		7,038		20,518
Consumer		3		19		—		18		—		18
Commercial and industrial		11		951		445		50		1		496
Agricultural and other		1		166		166		—		—		166
Total		62	$	26,424	$	13,663	$	496	$	7,039	$	21,198

Presentation of TDR's on Non-Accrual Status

The following is a presentation of TDRs on non-accrual status as of September 30, 2018 and December 31, 2017 because they are not in compliance with the modified terms:

	September 30, 2018				December 31, 2017
	Number of Loans		Recorded Balance		Number of Loans		Recorded Balance
Real estate:	(Dollars in thousands)
Commercial real estate loans
Non-farm/non-residential		3	$	758		2	$	1,161
Agricultural		1		16		1		22
Residential real estate loans
Residential 1-4 family		9		787		8		850
Multifamily residential		1		146		1		153
Total real estate		14		1,707		12		2,186
Commercial and industrial		6		128		1		—
Total		20	$	1,835		13	$	2,186

Summary of Total Foreclosed Assets

The following is a presentation of total foreclosed assets as of September 30, 2018 and December 31, 2017:

	September 30, 2018		December 31, 2017
	(In thousands)
Commercial real estate loans
Non-farm/non-residential	$	5,858	$	9,766
Construction/land development		3,539		5,920
Agriculture		155
Residential real estate loans
Residential 1-4 family		3,885		2,654
Multifamily residential		70		527
Total foreclosed assets held for sale	$	13,507	$	18,867

Summary of Purchased Credit Impaired Loans Acquired

The following is a summary of the purchased credit impaired loans acquired in the SPF, GHI, BOC and Stonegate acquisitions as of the dates of acquisition:

	SPF		GHI		BOC		Stonegate
	(In thousands)
Contractually required principal and interest at acquisition	$	3,496	$	22,379	$	18,586	$	98,444
Non-accretable difference (expected losses and foregone interest)		285		4,462		2,811		23,297
Cash flows expected to be collected at acquisition		3,211		17,917		15,775		75,147
Accretable yield		808		2,071		1,043		11,761
Basis in purchased credit impaired loans at acquisition	$	2,403	$	15,846	$	14,732	$	63,386

Changes in Carrying Amount of Accretable Yield for Purchased Credit Impaired Loans

Changes in the carrying amount of the accretable yield for purchased credit impaired loans were as follows for the nine-month period ended September 30, 2018 for the Company’s acquisitions:

	Accretable Yield			Carrying Amount of Loans
	(In thousands)
Balance at beginning of period	$	41,803		$	198,052
Reforecasted future interest payments for loan pools		(459	)		—
Contractual accretion recorded to interest income		(13,206	)		13,206
Acquisitions		808			2,403
Adjustment to yield		8,519			—
Transfers to foreclosed assets held for sale		—			(2,156	)
Payments received, net		—			(62,065	)
Balance at end of period	$	37,465		$	149,440

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Goodwill and Core Deposits and Other Intangibles (Tables)

9 Months Ended

Sep. 30, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Summary of Changes in Carrying Amount and Accumulated Amortization of Company's Goodwill and Core Deposits and Other Intangibles

Changes in the carrying amount and accumulated amortization of the Company’s goodwill and core deposits and other intangibles at September 30, 2018 and December 31, 2017, were as follows:

	September 30, 2018		December 31, 2017
Goodwill	(In thousands)
Balance, beginning of period	$	927,949	$	377,983
Acquisitions		30,459		549,966
Balance, end of period	$	958,408	$	927,949

	September 30, 2018			December 31, 2017
Core Deposit and Other Intangibles	(In thousands)
Balance, beginning of period	$	49,351		$	18,311
Acquisition		—			35,247
Amortization expense		(4,867	)		(2,576	)
Balance, September 30	$	44,484			50,982
Acquisitions					—
Amortization expense					(1,631	)
Balance, end of year				$	49,351

Summary of Carrying Amount and Accumulated Amortization of Core Deposits and Other Intangibles

The carrying basis and accumulated amortization of core deposits and other intangibles at September 30, 2018 and December 31, 2017 were:

	September 30, 2018			December 31, 2017
	(In thousands)
Gross carrying basis	$	86,625		$	86,625
Accumulated amortization		(42,141	)		(37,274	)
Net carrying amount	$	44,484		$	49,351

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Securities Sold Under Agreements to Repurchase (Tables)

9 Months Ended

Sep. 30, 2018

Brokers and Dealers [Abstract]

Summary of Remaining Contractual Maturity of Securities Sold Under Agreements to Repurchase

The remaining contractual maturity of securities sold under agreements to repurchase in the consolidated balance sheets as of September 30, 2018 and December 31, 2017 is presented in the following tables:

	September 30, 2018
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	26,134	$	—	$	—	$	—	$	26,134
Mortgage-backed securities		9,694		—		—		—		9,694
State and political subdivisions		90,715		—		—		—		90,715
Other securities		15,603		—		—		—		15,603
Total borrowings	$	142,146	$	—	$	—	$	—	$	142,146

	December 31, 2017
	Overnight and Continuous		Up to 30 Days		30-90 Days		Greater than 90 Days		Total
	(In thousands)
Securities sold under agreements to repurchase:
U.S. government-sponsored enterprises	$	11,525	$	—	$	—	$	10,000	$	21,525
Mortgage-backed securities		21,255		—		—		—		21,255
State and political subdivisions		85,428		—		—		—		85,428
Other securities		19,581		—		—		—		19,581
Total borrowings	$	137,789	$	—	$	—	$	10,000	$	147,789

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Subordinated Debentures (Tables)

9 Months Ended

Sep. 30, 2018

Brokers and Dealers [Abstract]

Preferred Trust Securities and Subordinated Debentures

Subordinated debentures at September 30, 2018 and December 31, 2017 consisted of guaranteed payments on trust preferred securities with the following components:

	As of September 30, 2018		As of December 31, 2017
	(In thousands)
Trust preferred securities
Subordinated debentures, issued in 2006, due 2036, fixed rate of 6.75% during the first five years and at a floating rate of 1.85% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty	$	3,093	$	3,093
Subordinated debentures, issued in 2004, due 2034, fixed rate of 6.00% during the first five years and at a floating rate of 2.00% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty		15,464		15,464
Subordinated debentures, issued in 2005, due 2035, fixed rate of 5.84% during the first five years and at a floating rate of 1.45% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty		25,774		25,774
Subordinated debentures, issued in 2004, due 2034, fixed rate of 4.29% during the first five years and at a floating rate of 2.50% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty		16,495		16,495
Subordinated debentures, issued in 2005, due 2035, floating rate of 2.15% above the three-month LIBOR rate, reset quarterly, currently callable without penalty		4,341		4,304
Subordinated debentures, issued in 2006, due 2036, fixed rate of 7.38% during the first five years and at a floating rate of 1.62% above the three-month LIBOR rate, reset quarterly, thereafter, currently callable without penalty		5,638		5,569
Subordinated debt securities
Subordinated notes, net of issuance costs, issued in 2017, due 2027, fixed rate of 5.625% during the first five years and at a floating rate of 3.575% above the then three-month LIBOR rate, reset quarterly, thereafter, callable in 2022 without penalty		297,791		297,332
Total	$	368,596	$	368,031

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Income Taxes (Tables)

9 Months Ended

Sep. 30, 2018

Income Tax Disclosure [Abstract]

Summary of Components of Provision (Benefit) for Income Taxes

The following is a summary of the components of the provision (benefit) for income taxes for the three and nine-month periods ended September 30, 2018 and 2017:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2018		2017			2018		2017
	(In thousands)
Current:
Federal	$	17,999	$	17,289		$	44,354	$	65,958
State		5,958		3,434			14,683		13,101
Total current		23,957		20,723			59,037		79,059
Deferred:
Federal		1,047		(11,002	)		10,964		(13,238	)
State		346		(2,185	)		3,629		(2,629	)
Total deferred		1,393		(13,187	)		14,593		(15,867	)
Income tax expense	$	25,350	$	7,536		$	73,630	$	63,192

Reconciliation between Statutory Federal Income Tax Rate and Effective Income Tax Rate

The reconciliation between the statutory federal income tax rate and effective income tax rate is as follows for the three and nine-month periods ended September 30, 2018 and 2017:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2018			2017			2018			2017
Statutory federal income tax rate		21.00	%		35.00	%		21.00	%		35.00	%
Effect of non-taxable interest income		(0.84	)		(4.48	)		(0.80	)		(1.82	)
Effect of gain on acquisitions		—			—			—			(0.76	)
Stock compensation		(0.12	)		(0.09	)		(0.18	)		(0.49	)
State income taxes, net of federal benefit		3.30			3.91			3.60			4.01
Other		0.66			(0.63	)		0.68			0.18
Effective income tax rate		24.00	%		33.71	%		24.30	%		36.12	%

Differences between Tax Basis of Assets and Liabilities

The types of temporary differences between the tax basis of assets and liabilities and their financial reporting amounts that give rise to deferred income tax assets and liabilities, and their approximate tax effects, are as follows:

	September 30, 2018		December 31, 2017
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	30,023	$	29,515
Deferred compensation		2,868		1,142
Stock compensation		3,674		2,731
Real estate owned		1,419		1,731
Unrealized loss on securities available-for-sale		11,118		1,471
Loan discounts		25,144		32,784
Tax basis premium/discount on acquisitions		8,387		8,802
Investments		1,008		1,155
Other		10,552		11,663
Gross deferred tax assets		94,193		90,994
Deferred tax liabilities:
Accelerated depreciation on premises and equipment		1,157		291
Core deposit intangibles		10,163		11,258
FHLB dividends		1,712		1,625
Other		1,613		1,256
Gross deferred tax liabilities		14,645		14,430
Net deferred tax assets	$	79,548	$	76,564

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Common Stock, Compensation Plans and Other (Tables)

9 Months Ended

Sep. 30, 2018

Equity [Abstract]

Summary of Stock Option Transactions under Incentive Plan (Split Adjusted)

The table below summarizes the stock option transactions under the Plan at September 30, 2018 and December 31, 2017 and changes during the nine-month period and year then ended:

	For the Nine Months Ended September 30, 2018					For the Year Ended December 31, 2017
	Shares (000)			Weighted- Average Exercisable Price		Shares (000)			Weighted- Average Exercisable Price
Outstanding, beginning of year		2,274		$	16.23		2,397		$	15.19
Granted		1,576			23.24		80			25.96
Forfeited/Expired		(37	)		22.30		—			—
Exercised		(177	)		9.42		(203	)		7.82
Outstanding, end of period		3,636			19.54		2,274			16.23
Exercisable, end of period		1,171			15.10		1,016		$	13.55

Summary of Stock Options on Valuation Assumptions

The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model based on the weighted-average assumptions for expected dividend yield, expected stock price volatility, risk-free interest rate, and expected life of options granted.

	For the Nine Months Ended September 30, 2018			For the Year Ended December 31, 2017
Expected dividend yield		2.05	%		1.39	%
Expected stock price volatility		25.59	%		28.47	%
Risk-free interest rate		2.82	%		2.06	%
Expected life of options		6.5 years			6.5 years

Summary of Currently Outstanding and Exercisable Options (Split Adjusted)

The following is a summary of currently outstanding and exercisable options at September 30, 2018:

Options Outstanding				Options Exercisable
Exercise Prices	Options Outstanding Shares (000)	Weighted- Average Remaining Contractual Life (in years)	Weighted- Average Exercise Price	Options Exercisable Shares (000)	Weighted- Average Exercise Price
$2.10 to $2.66	12	0.73	2.60	12	2.60
$5.68 to $6.56	89	3.22	6.54	89	6.54
$8.62 to $9.54	259	4.41	9.04	259	9.04
$14.71 to $16.86	252	6.02	15.97	168	16.05
$17.12 to $17.40	195	6.15	17.20	118	17.22
$18.46	1,010	6.90	18.46	433	18.46
$20.16 to $20.58	68	7.02	20.41	28	20.34
$21.25 to $22.22	230	8.51	21.71	48	21.25
$22.70 to $23.51	1,441	9.81	23.32	—	—
$25.96	80	8.56	25.96	16	25.96
	3,636			1,171

Summary of Company's Restricted Stock Issued and Outstanding

The table below summarized the activity for the Company’s restricted stock issued and outstanding at September 30, 2018 and December 31, 2017 and changes during the period and year then ended:

	As of September 30, 2018			As of December 31, 2017
	(In thousands)
Beginning of year		1,145			958
Issued		1,005			232
Vested		(229	)		(45	)
Forfeited		(49	)		—
End of period		1,872			1,145
Amount of expense for nine months and twelve months ended, respectively	$	5,153		$	5,237

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Non-Interest Expense (Tables)

9 Months Ended

Sep. 30, 2018

Text Block [Abstract]

Components of Non-Interest Expense

The table below shows the components of non-interest expense for the three and nine months ended September 30, 2018 and 2017:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2018		2017		2018		2017
	(In thousands)
Salaries and employee benefits	$	37,825	$	28,510	$	107,315	$	83,965
Occupancy and equipment		8,148		7,887		25,650		21,602
Data processing expense		3,461		2,853		10,786		8,439
Other operating expenses:
Advertising		1,154		795		3,258		2,305
Merger and acquisition expenses		—		18,227		—		25,743
Amortization of intangibles		1,617		906		4,867		2,576
Electronic banking expense		1,947		1,712		5,653		4,885
Directors’ fees		314		309		962		946
Due from bank service charges		253		472		714		1,348
FDIC and state assessment		2,293		1,293		6,689		3,763
Insurance		762		577		2,363		1,698
Legal and accounting		761		698		2,397		1,799
Other professional fees		1,748		1,436		4,988		3,822
Operating supplies		510		432		1,712		1,376
Postage		311		280		978		861
Telephone		337		305		1,081		1,027
Other expense		4,682		4,154		13,318		10,835
Total other operating expenses		16,689		31,596		48,980		62,984
Total non-interest expense	$	66,123	$	70,846	$	192,731	$	176,990

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Additional Cash Flow Information (Tables)

9 Months Ended

Sep. 30, 2018

Supplemental Cash Flow Elements [Abstract]

Summary of Additional Cash Flow Information

The following is a summary of the Company’s additional cash flow information during the nine-month periods ended:

	September 30,
	2018		2017
	(In thousands)
Interest paid	$	80,057	$	34,573
Income taxes paid		47,682		117,025
Assets acquired by foreclosure		10,098		9,255

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Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2018

Fair Value Disclosures [Abstract]

Estimated Fair Values of Financial Instruments

The following table presents the estimated fair values of the Company’s financial instruments. Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date.

	September 30, 2018
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	532,057	$	532,057		1
Federal funds sold		500		500		1
Investment securities – held-to-maturity		199,266		198,552		2
Loans receivable, net of impaired loans and allowance		10,645,129		10,429,379		3
Accrued interest receivable		48,909		48,909		1
Financial liabilities:
Deposits:
Demand and non-interest-bearing	$	2,482,857	$	2,482,857		1
Savings and interest-bearing transaction accounts		6,420,951		6,420,951		1
Time deposits		1,720,930		1,696,005		3
Securities sold under agreements to repurchase		142,146		142,146		1
FHLB and other borrowed funds		1,363,851		1,291,287		2
Accrued interest payable		12,383		12,383		1
Subordinated debentures		368,596		374,338		3

	December 31, 2017
	Carrying Amount		Fair Value		Level
	(In thousands)
Financial assets:
Cash and cash equivalents	$	635,933	$	635,933		1
Federal funds sold		24,109		24,109		1
Investment securities – held-to-maturity		224,756		227,539		2
Loans receivable, net of impaired loans and allowance		10,148,470		10,055,901		3
Accrued interest receivable		45,708		45,708		1
Financial liabilities:
Deposits:
Demand and non-interest-bearing	$	2,385,252	$	2,385,252		1
Savings and interest-bearing transaction accounts		6,476,819		6,476,819		1
Time deposits		1,526,431		1,514,670		3
Securities sold under agreements to repurchase		147,789		147,789		1
FHLB and other borrowed funds		1,299,188		1,299,961		2
Accrued interest payable		5,583		5,583		1
Subordinated debentures		368,031		379,146		3

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Nature of Operations and Summary of Significant Accounting Policies - Additional Information (Detail)	9 Months Ended
	Sep. 30, 2018 Segments
Accounting Policies [Abstract]
Number of Reportable Segments	1

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Nature of Operations and Summary of Significant Accounting Policies - Computation of Basic and Diluted Earnings per Common Share (EPS) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Earnings Per Share [Abstract]
Net income	$ 80,284	$ 14,821	$ 229,373	$ 111,774	$ 23,309
Average shares outstanding	174,440	144,238	173,870	143,111
Effect of common stock options	427	749	524	728
Average diluted shares outstanding	174,867	144,987	174,394	143,839
Basic earnings per share	$ 0.46	$ 0.10	$ 1.32	$ 0.78
Diluted earnings per share	$ 0.46	$ 0.10	$ 1.32	$ 0.78

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Business Combinations - Acquisition of Shore Premier Finance - Additional Information (Detail) - USD ($) $ in Thousands		9 Months Ended	12 Months Ended
	Jun. 30, 2018	Sep. 30, 2018	Dec. 31, 2017
Business Acquisition [Line Items]
Goodwill		$ 30,459	$ 549,966
Shore Premier Finance [Member]
Business Acquisition [Line Items]
Business acquisition date	Jun. 30, 2018
Business combination consideration paid	$ 377,400
Business combination, common stock issued, shares	1,250,000
Business combination, common stock issued, value	$ 28,200
Business combination, recognized identifiable assets acquired, Total Assets	377,000
Business combination, recognized identifiable liabilities assumed, Loans	376,200
Business combination, recognized identifiable assets acquired, Total Liabilities	1,900
Goodwill	$ 30,500

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Business Combinations - Acquisition of Stonegate Bank - Additional Information (Detail) $ in Thousands	Sep. 26, 2017 USD ($) BankingCenters shares	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Business Acquisition [Line Items]
Loans purchased		$ 3,080,000	$ 3,460,000
Amount of discount on purchased loans		$ 120,800	$ 146,600
Stonegate Bank [Member]
Business Acquisition [Line Items]
Business combination consideration paid	$ 792,370
Business combination, common stock issued, shares | shares	30,863,658
Business combination, common stock issued, value	$ 742,300
Business combination consideration paid in cash	50,100
Business combination, recognized identifiable assets acquired, Total Assets	2,887,523
Business acquisition of investment securities	103,515
Loans purchased	2,370,000
Loan discounts	73,300
Amount of discount on purchased loans	22,600
Business acquisition of bank premises and equipment	$ 3,600
Effective tax rates	39.225%
Core deposit intangible	$ 30,869
Customer deposits assumed pursuant to agreement	2,525,697
Stonegate Bank [Member] | Credit Impaired Loans [Member]
Business Acquisition [Line Items]
Loans purchased	74,300
Loan discounts	23,300
Stonegate Bank [Member] | Florida [Member]
Business Acquisition [Line Items]
Business combination, recognized identifiable assets acquired, Total Assets	2,890,000
Business combination, recognized identifiable liabilities assumed, Loans	2,370,000
Business combination, recognized identifiable assets acquired, Deposits	$ 2,530,000
Number of banking locations | BankingCenters	24
Stonegate Bank [Member] | Fair Value Adjustments [Member]
Business Acquisition [Line Items]
Business combination, recognized identifiable assets acquired, Total Assets	$ (105,302)
Business acquisition of investment securities	474
Core deposit intangible	20,364
Customer deposits assumed pursuant to agreement	$ (85)
Stonegate Bank [Member] | Shareholders [Member]
Business Acquisition [Line Items]
Business acquisition date	Sep. 26, 2017
Business combination consideration paid	$ 792,400
Business combination, common stock issued, shares | shares	30,863,658
Business combination, common stock issued, value	$ 742,300
Business combination consideration paid in cash	50,100
Stonegate Bank [Member] | Optionholders [Member]
Business Acquisition [Line Items]
Business combination consideration paid	820,000
Business combination consideration paid in cash	$ 27,600

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Business Combinations - Breakdown of Assets Acquired and Liabilities Assumed (Detail) - USD ($)	Sep. 26, 2017	Feb. 28, 2017	Feb. 23, 2017	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2016
Assets
Goodwill				$ 958,408,000	$ 927,949,000	$ 377,983,000
Equity
Goodwill				958,408,000	927,949,000	377,983,000
Goodwill				$ 958,408,000	$ 927,949,000	$ 377,983,000
Stonegate Bank [Member]
Assets
Cash and due from banks	$ 100,958,000
Interest-bearing deposits with other banks	135,631,000
Federal funds sold	1,515,000
Investment securities	103,515,000
Loans receivable	2,372,082,000
Loans receivable, net	2,372,082,000
Bank premises and equipment, net	35,296,000
Foreclosed assets held for sale	3,386,000
Cash value of life insurance	48,000,000
Accrued interest receivable	7,088,000
Deferred tax asset, net	39,330,000
Goodwill	507,008,000
Core deposit and other intangibles	30,869,000
Other assets	9,853,000
Total assets acquired	2,887,523,000
Deposits
Demand and non-interest-bearing	585,959,000
Savings and interest-bearing transaction accounts	1,776,256,000
Time deposits	163,482,000
Total deposits	2,525,697,000
FHLB borrowed funds	32,851,000
Securities sold under agreements to repurchase	26,163,000
Accrued interest payable and other liabilities	7,616,000
Subordinated debentures	9,834,000
Total liabilities assumed	2,602,161,000
Equity
Total liabilities and equity assumed	2,602,161,000
Net assets acquired	285,362,000
Purchase price	792,370,000
Goodwill	507,008,000
Goodwill	507,008,000
Giant Holdings, Inc. [Member]
Assets
Cash and due from banks			$ 41,019,000
Interest-bearing deposits with other banks			4,058,000
Investment securities			1,956,000
Loans receivable			329,369,000
Loans receivable, net			329,369,000
Bank premises and equipment, net			2,719,000
Cash value of life insurance			10,861,000
Accrued interest receivable			850,000
Deferred tax asset, net			4,093,000
Goodwill			42,958,000
Core deposit and other intangibles			3,410,000
Other assets			(235,000)
Total assets acquired			398,100,000
Deposits
Demand and non-interest-bearing			75,993,000
Savings and interest-bearing transaction accounts			139,459,000
Time deposits			88,543,000
Total deposits			303,995,000
FHLB borrowed funds			26,478,000
Accrued interest payable and other liabilities			14,570,000
Total liabilities assumed			345,043,000
Equity
Total liabilities and equity assumed			345,043,000
Net assets acquired			53,057,000
Purchase price			96,015,000
Goodwill			42,958,000
Goodwill			42,958,000
The Bank of Commerce [Member]
Assets
Cash and due from banks		$ 4,610,000
Interest-bearing deposits with other banks		14,360,000
Investment securities		25,813,000
Loans receivable		118,538,000
Loans receivable, net		118,538,000
Bank premises and equipment, net		1,887,000
Foreclosed assets held for sale		5,358,000
Accrued interest receivable		481,000
Deferred tax asset, net		4,198,000
Core deposit and other intangibles		968,000
Other assets		1,880,000
Total assets acquired		178,093,000
Deposits
Demand and non-interest-bearing		27,245,000
Savings and interest-bearing transaction accounts		32,300,000
Time deposits		80,215,000
Total deposits		139,760,000
FHLB borrowed funds		30,042,000
Accrued interest payable and other liabilities		309,000
Total liabilities assumed		170,111,000
Equity
Total equity assumed		0
Net assets acquired		7,982,000
Purchase price		4,175,000
Pre-tax gain on acquisition		3,807,000
Acquired from Acquisition [Member] | Stonegate Bank [Member]
Assets
Cash and due from banks	100,958,000
Interest-bearing deposits with other banks	135,631,000
Federal funds sold	1,515,000
Investment securities	103,041,000
Loans receivable	2,446,149,000
Allowance for loan losses	(21,507,000)
Loans receivable, net	2,424,642,000
Bank premises and equipment, net	38,868,000
Foreclosed assets held for sale	4,187,000
Cash value of life insurance	48,000,000
Accrued interest receivable	7,088,000
Deferred tax asset, net	27,340,000
Goodwill	81,452,000
Core deposit and other intangibles	10,505,000
Other assets	9,598,000
Total assets acquired	2,992,825,000
Deposits
Demand and non-interest-bearing	585,959,000
Savings and interest-bearing transaction accounts	1,776,256,000
Time deposits	163,567,000
Total deposits	2,525,782,000
FHLB borrowed funds	32,667,000
Securities sold under agreements to repurchase	26,163,000
Accrued interest payable and other liabilities	8,100,000
Subordinated debentures	8,345,000
Total liabilities assumed	2,601,057,000
Equity
Total equity assumed	391,768,000
Total liabilities and equity assumed	2,992,825,000
Goodwill	81,452,000
Goodwill	81,452,000
Acquired from Acquisition [Member] | Giant Holdings, Inc. [Member]
Assets
Cash and due from banks			41,019,000
Interest-bearing deposits with other banks			4,057,000
Investment securities			1,961,000
Loans receivable			335,886,000
Allowance for loan losses			(4,568,000)
Loans receivable, net			331,318,000
Bank premises and equipment, net			2,111,000
Cash value of life insurance			10,861,000
Accrued interest receivable			850,000
Deferred tax asset, net			2,286,000
Core deposit and other intangibles			172,000
Other assets			254,000
Total assets acquired			394,889,000
Deposits
Demand and non-interest-bearing			75,993,000
Savings and interest-bearing transaction accounts			139,459,000
Time deposits			88,219,000
Total deposits			303,671,000
FHLB borrowed funds			26,047,000
Accrued interest payable and other liabilities			14,552,000
Total liabilities assumed			344,270,000
Equity
Total equity assumed			50,619,000
Total liabilities and equity assumed			394,889,000
Acquired from Acquisition [Member] | The Bank of Commerce [Member]
Assets
Cash and due from banks		4,610,000
Interest-bearing deposits with other banks		14,360,000
Investment securities		25,926,000
Loans receivable		124,289,000
Allowance for loan losses		(2,037,000)
Loans receivable, net		122,252,000
Bank premises and equipment, net		1,887,000
Foreclosed assets held for sale		8,523,000
Accrued interest receivable		481,000
Other assets		1,880,000
Total assets acquired		179,919,000
Deposits
Demand and non-interest-bearing		27,245,000
Savings and interest-bearing transaction accounts		32,300,000
Time deposits		79,945,000
Total deposits		139,490,000
FHLB borrowed funds		30,000,000
Accrued interest payable and other liabilities		564,000
Total liabilities assumed		170,054,000
Fair Value Adjustments [Member] | Stonegate Bank [Member]
Assets
Investment securities	474,000
Loans receivable	(74,067,000)
Allowance for loan losses	21,507,000
Loans receivable, net	(52,560,000)
Bank premises and equipment, net	(3,572,000)
Foreclosed assets held for sale	(801,000)
Deferred tax asset, net	11,990,000
Goodwill	(81,452,000)
Core deposit and other intangibles	20,364,000
Other assets	255,000
Total assets acquired	(105,302,000)
Deposits
Time deposits	(85,000)
Total deposits	(85,000)
FHLB borrowed funds	184,000
Accrued interest payable and other liabilities	(484,000)
Subordinated debentures	1,489,000
Total liabilities assumed	1,104,000
Equity
Total equity assumed	(391,768,000)
Total liabilities and equity assumed	(390,664,000)
Goodwill	(81,452,000)
Goodwill	$ (81,452,000)
Fair Value Adjustments [Member] | Giant Holdings, Inc. [Member]
Assets
Interest-bearing deposits with other banks			1,000
Investment securities			(5,000)
Loans receivable			(6,517,000)
Allowance for loan losses			4,568,000
Loans receivable, net			(1,949,000)
Bank premises and equipment, net			608,000
Deferred tax asset, net			1,807,000
Core deposit and other intangibles			3,238,000
Other assets			(489,000)
Total assets acquired			3,211,000
Deposits
Time deposits			324,000
Total deposits			324,000
FHLB borrowed funds			431,000
Accrued interest payable and other liabilities			18,000
Total liabilities assumed			773,000
Equity
Total equity assumed			(50,619,000)
Total liabilities and equity assumed			$ (49,846,000)
Fair Value Adjustments [Member] | The Bank of Commerce [Member]
Assets
Investment securities		(113,000)
Loans receivable		(5,751,000)
Allowance for loan losses		2,037,000
Loans receivable, net		(3,714,000)
Foreclosed assets held for sale		(3,165,000)
Deferred tax asset, net		4,198,000
Core deposit and other intangibles		968,000
Total assets acquired		(1,826,000)
Deposits
Time deposits		270,000
Total deposits		270,000
FHLB borrowed funds		42,000
Accrued interest payable and other liabilities		(255,000)
Total liabilities assumed		$ 57,000

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Business Combinations - Schedule of Unaudited Pro Forma Combined Financial Information (Detail) - Stonegate Bank [Member] - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Total interest income	$ 610,697	$ 538,258
Total non-interest income	107,179	95,555
Net income available to all shareholders	$ 143,979	$ 206,081
Basic earnings per common share	$ 0.79	$ 1.20
Diluted earnings per common share	$ 0.79	$ 1.20

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Business Combinations - Acquisition of The Bank of Commerce - Additional Information (Detail)		9 Months Ended
	Feb. 28, 2017 USD ($) BankingCenters	Sep. 30, 2017	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Business Acquisition [Line Items]
Loans purchased			$ 3,080,000,000	$ 3,460,000,000
The Bank of Commerce [Member]
Business Acquisition [Line Items]
Business acquisition date	Feb. 28, 2017
Cash paid for acquisition	$ 4,175,000
Business combination, recognized identifiable assets acquired, Total Assets	178,093,000
Loan discounts	3,000,000
Business acquisition of investment securities	25,813,000
Loans purchased	$ 106,800,000
Effective tax rates	39.225%
Core deposit intangible	$ 968,000
Customer deposits assumed pursuant to agreement	$ 139,760,000
The Bank of Commerce [Member] | Florida [Member]
Business Acquisition [Line Items]
Number of banking locations | BankingCenters	3
Business combination, recognized identifiable assets acquired, Total Assets	$ 178,100,000
Business combination, recognized identifiable liabilities assumed, Loans	118,500,000
Business combination, recognized identifiable assets acquired, Deposits	139,800,000
Loan discounts	5,800,000
The Bank of Commerce [Member] | Credit Impaired Loans [Member]
Business Acquisition [Line Items]
Loan discounts	2,800,000
Loans purchased	17,500,000
Maximum [Member] | The Bank of Commerce [Member]
Business Acquisition [Line Items]
Percentage of total assets		5.00%
Fair Value Adjustments [Member] | The Bank of Commerce [Member]
Business Acquisition [Line Items]
Business combination, recognized identifiable assets acquired, Total Assets	(1,826,000)
Business acquisition of investment securities	(113,000)
Core deposit intangible	968,000
Customer deposits assumed pursuant to agreement	$ 270,000

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Business Combinations - Acquisition of Giant Holdings, Inc. - Additional Information (Detail)	Feb. 23, 2017 USD ($) BankingCenters shares	Sep. 30, 2018 USD ($)	Dec. 31, 2017 USD ($)
Business Acquisition [Line Items]
Loans purchased		$ 3,080,000,000	$ 3,460,000,000
Amount of discount on purchased loans		$ 120,800,000	$ 146,600,000
Giant Holdings, Inc. [Member]
Business Acquisition [Line Items]
Business acquisition date	Feb. 23, 2017
Business combination consideration paid	$ 96,015,000
Business combination, common stock issued, shares | shares	2,738,038
Business combination, common stock issued, value	$ 77,500,000
Business combination consideration paid in cash	18,500,000
Business combination, recognized identifiable assets acquired, Total Assets	398,100,000
Loan discounts	3,600,000
Business acquisition of investment securities	1,956,000
Loans purchased	315,600,000
Amount of discount on purchased loans	1,600,000
Business acquisition of bank premises and equipment	$ 608,000
Effective tax rates	39.225%
Core deposit intangible	$ 3,410,000
Customer deposits assumed pursuant to agreement	303,995,000
Giant Holdings, Inc. [Member] | Credit Impaired Loans [Member]
Business Acquisition [Line Items]
Loan discounts	4,500,000
Loans purchased	20,300,000
Giant Holdings, Inc. [Member] | Fair Value Adjustments [Member]
Business Acquisition [Line Items]
Business combination, recognized identifiable assets acquired, Total Assets	3,211,000
Business acquisition of investment securities	(5,000)
Core deposit intangible	3,238,000
Customer deposits assumed pursuant to agreement	$ 324,000
Giant Holdings, Inc. [Member] | Florida [Member]
Business Acquisition [Line Items]
Number of banking locations | BankingCenters	6
Business combination, recognized identifiable assets acquired, Total Assets	$ 398,100,000
Business combination, recognized identifiable liabilities assumed, Loans	327,800,000
Business combination, recognized identifiable assets acquired, Deposits	304,000,000
Loan discounts	$ 8,100,000

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Investment Securities - Amortized Cost and Estimated Fair Value of Investment Securities Classified as Available-for-Sale (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 1,785,908	$ 1,669,147
Gross Unrealized Gains	2,914	6,777
Gross Unrealized (Losses)	(44,392)	(12,407)
Estimated Fair Value	1,744,430	1,663,517
U.S. Government-Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	427,722	407,387
Gross Unrealized Gains	138	899
Gross Unrealized (Losses)	(7,985)	(1,982)
Estimated Fair Value	419,875	406,304
Residential Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	533,106	481,981
Gross Unrealized Gains	294	538
Gross Unrealized (Losses)	(15,386)	(4,919)
Estimated Fair Value	518,014	477,600
Commercial Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	478,409	497,870
Gross Unrealized Gains	87	332
Gross Unrealized (Losses)	(14,636)	(4,430)
Estimated Fair Value	463,860	493,772
State and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	311,117	247,292
Gross Unrealized Gains	1,235	3,783
Gross Unrealized (Losses)	(6,202)	(774)
Estimated Fair Value	306,150	250,301
Other Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	35,554	34,617
Gross Unrealized Gains	1,160	1,225
Gross Unrealized (Losses)	(183)	(302)
Estimated Fair Value	$ 36,531	$ 35,540

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Investment Securities - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities Classified as Held-to-Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule of Held-to-maturity Securities [Line Items]
Estimated Fair Value	$ 199,266	$ 224,756
Held-to-Maturity [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	199,266	224,756
Gross Unrealized Gains	1,391	3,267
Gross Unrealized (Losses)	(2,105)	(484)
Estimated Fair Value	198,552	227,539
U.S. Government-Sponsored Enterprises [Member] | Held-to-Maturity [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	3,587	5,791
Gross Unrealized Gains		15
Gross Unrealized (Losses)	(87)	(15)
Estimated Fair Value	3,500	5,791
Residential Mortgage-Backed Securities [Member] | Held-to-Maturity [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	47,670	56,982
Gross Unrealized Gains	23	107
Gross Unrealized (Losses)	(1,395)	(402)
Estimated Fair Value	46,298	56,687
Commercial Mortgage-Backed Securities [Member] | Held-to-Maturity [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	12,705	16,625
Gross Unrealized Gains		114
Gross Unrealized (Losses)	(370)	(40)
Estimated Fair Value	12,335	16,699
State and Political Subdivisions [Member] | Held-to-Maturity [Member]
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	135,304	145,358
Gross Unrealized Gains	1,368	3,031
Gross Unrealized (Losses)	(253)	(27)
Estimated Fair Value	$ 136,419	$ 148,362

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Investment Securities - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Debt Securities, Available-for-sale [Abstract]
Carrying value of investment securities	$ 1,170,000,000		$ 1,170,000,000		$ 1,180,000,000
Investment securities pledged as collateral	142,100,000		142,100,000		147,800,000
Available for sale securities sold	1,400,000	$ 234,000	2,100,000	$ 27,400,000
Gross realized gains on sale	$ 0	$ 136,000	$ 0	$ 1,100,000
Income tax expense benefit to net security gains and losses	26.135%	39.225%	26.135%	39.225%
Gross realized loss on sale				$ 127,000
Held-to-maturity securities sold	$ 0		$ 0	483,000
Gross realized loss on sale of held-to-maturity				$ 7,000
Other-than-temporary impairment of securities	0		0
Fair value of unrealized losses	$ 26,943,000		$ 26,943,000		$ 5,273,000
Percentage of Company's investment portfolio			67.70%
Maturity description of investment portfolio			Five years or less

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Investment Securities - Amortized Cost and Estimated Fair Value of Securities Contractual Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Available-for-Sale Securities, Amortized Cost
Due in one year or less, Amortized Cost	$ 188,664
Due after one year through five years, Amortized Cost	997,039
Due after five years through ten years, Amortized Cost	468,969
Due after ten years, Amortized Cost	131,236
Total, Amortized Cost	1,785,908
Available-for-Sale Securities, Estimated Fair Value
Due in one year or less, Estimated Fair Value	185,303
Due after one year through five years, Estimated Fair Value	975,767
Due after five years through ten years, Estimated Fair Value	455,579
Due after ten years, Estimated Fair Value	127,781
Total, Estimated Fair Value	1,744,430	$ 1,663,517
Held-to-Maturity Securities, Amortized Cost
Due in one year or less, Held to Maturity Amortized Cost	64,821
Due after one year through five years, Held to Maturity Amortized Cost	89,950
Due after five years through ten years, Held to Maturity Amortized Cost	11,773
Due after ten years, Held to Maturity Amortized Cost	32,722
Total, Held to Maturity Amortized Cost	199,266	$ 224,756
Held-to-Maturity Securities, Estimated Fair Value
Due in one year or less, Held to Maturity Estimated Fair Value	65,527
Due after one year through five years, Held to Maturity Estimated Fair Value	89,016
Due after five years through ten years, Held to Maturity Estimated Fair Value	11,472
Due after ten years, Held to Maturity Estimated Fair Value	32,537
Total, Held to Maturity Estimated Fair Value	$ 198,552

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Investment Securities - Unrealized Losses and Estimated Fair Value of Investment Securities Available for Sale and Held to Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule of Available-for-sale Securities [Line Items]
Fair Value of Available-for-Sale Securities, Less Than 12 Months	$ 874,634	$ 979,354
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(19,554)	(7,618)
Fair Value of Available-for-Sale Securities, 12 Months or More	729,843	291,308
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(26,943)	(5,273)
Fair Value of Available-for-Sale Securities, Total	1,604,477	1,270,662
Unrealized Losses of Available-for-Sale Securities, Total	(46,497)	(12,891)
U.S. Government-Sponsored Enterprises [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value of Available-for-Sale Securities, Less Than 12 Months	253,980	234,213
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(3,686)	(1,288)
Fair Value of Available-for-Sale Securities, 12 Months or More	135,156	40,122
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(4,386)	(709)
Fair Value of Available-for-Sale Securities, Total	389,136	274,335
Unrealized Losses of Available-for-Sale Securities, Total	(8,072)	(1,997)
Residential Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value of Available-for-Sale Securities, Less Than 12 Months	212,531	389,541
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(4,745)	(3,656)
Fair Value of Available-for-Sale Securities, 12 Months or More	315,803	99,989
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(12,036)	(1,665)
Fair Value of Available-for-Sale Securities, Total	528,334	489,530
Unrealized Losses of Available-for-Sale Securities, Total	(16,781)	(5,321)
Commercial Mortgage-Backed Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value of Available-for-Sale Securities, Less Than 12 Months	233,726	314,301
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(6,738)	(2,343)
Fair Value of Available-for-Sale Securities, 12 Months or More	226,854	120,365
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(8,268)	(2,127)
Fair Value of Available-for-Sale Securities, Total	460,580	434,666
Unrealized Losses of Available-for-Sale Securities, Total	(15,006)	(4,470)
State and Political Subdivisions [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value of Available-for-Sale Securities, Less Than 12 Months	174,397	41,299
Unrealized Losses of Available-for-Sale Securities, Less Than 12 Months	(4,385)	(331)
Fair Value of Available-for-Sale Securities, 12 Months or More	42,238	20,980
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(2,070)	(470)
Fair Value of Available-for-Sale Securities, Total	216,635	62,279
Unrealized Losses of Available-for-Sale Securities, Total	(6,455)	(801)
Other Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Fair Value of Available-for-Sale Securities, 12 Months or More	9,792	9,852
Unrealized Losses of Available-for-Sale Securities, 12 Months or More	(183)	(302)
Fair Value of Available-for-Sale Securities, Total	9,792	9,852
Unrealized Losses of Available-for-Sale Securities, Total	$ (183)	$ (302)

XML

Investment Securities - Schedule of Income Earned on Securities (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Investment Income [Line Items]
Income earned on securities, taxable	$ 9,011	$ 7,071	$ 26,960	$ 18,983
Income earned on securities, Non-taxable	3,427	3,032	9,801	8,942
Income earned on securities, total	12,438	10,103	36,761	27,925
Available-for-sale [Member]
Investment Income [Line Items]
Income earned on securities, taxable	8,578	6,527	25,571	17,001
Income earned on securities, Non-taxable	2,205	1,627	6,006	4,757
Held-to-Maturity [Member]
Investment Income [Line Items]
Income earned on securities, taxable	433	544	1,389	1,982
Income earned on securities, Non-taxable	$ 1,222	$ 1,405	$ 3,795	$ 4,185

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Loans Receivable - Summary of Various Categories of Loans Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	$ 10,832,815	$ 10,331,188
Multifamily Residential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	608,608	441,303
Commercial Real Estate Non Farm Nonresidential [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	4,685,827	4,600,117
Commercial Real Estate Construction Land Development Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	1,550,910	1,700,491
Agricultural [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	72,930	82,229
Residential 1-4 Family [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	1,982,666	1,970,311
Residential and Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	8,900,941	8,794,451
Agricultural [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	58,644	49,815
Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	141,197	143,377
Consumer [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	428,192	46,148
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans receivable	$ 1,303,841	$ 1,297,397

XML

Loans Receivable - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage loans held for sale	$ 39,900,000		$ 39,900,000		$ 44,300,000
Purchased loans	3,080,000,000		3,080,000,000		3,460,000,000
Amount of discount for credit losses on purchased loans	120,800,000		120,800,000		146,600,000
Non-accretable discount for credit losses on purchased loans	40,500,000		40,500,000		51,900,000
Accretable discount for credit losses on purchased loans	80,300,000		80,300,000		$ 94,700,000
SBA Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans sold during period	836,000	$ 3,100,000	7,400,000	$ 12,900,000
Gain on sale of guaranteed portion of loans	$ 47,000	$ 163,000	$ 491,000	$ 738,000

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Allowance for Loan Losses, Credit Quality and Other - Additional Information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Dec. 31, 2017 USD ($) Rating
Financing Receivable, Allowance for Credit Losses [Line Items]
Non-accruing loans	$ 36,200,000		$ 36,200,000		$ 34,000,000
Interest recognized on impaired loans	$ 590,000	$ 957,000	2,146,000	$ 2,000,000	$ 2,365,000
Risk rating scale of loan					Loans are rated on a scale from 1 to 8.
Amount of loan assessed for impairment on a quarterly basis					$ 2,000,000
Over $2,000,000 assessed minimum rated | Rating					5
Over $2,000,000 assessed maximum rated | Rating					8
Reforecasted future interest payments for loan pools, Accretable Yield					$ 459,000,000
Adjustment to yield over the weighted average life of the loans			8,519,000
Hurricane Irma [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Credit impact and damage to legacy loans receivable					2,410,000,000
Storm-related provision for loan losses					$ 32,900,000
Charge-offs against storm-related provision for loan losses			$ 2,500,000

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Allowance for Loan Losses, Credit Quality and Other - Summary of Changes in Allowance for Loan Losses (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Receivables [Abstract]
Beginning balance	$ 110,266
Loans charged off	(7,173)
Recoveries of loans previously charged off	2,776
Net loans recovered (charged off)	(4,397)
Provision for loan losses	4,322
Ending balance	$ 110,191

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Allowance for Loan Losses, Credit Quality and Other - Allowance for Loan Losses for the Roll Forwards (Detail) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance		$ 110,266
Loans charged off		(7,173)
Recoveries of loans previously charged off		2,776
Net loans recovered (charged off)		(4,397)
Provision for loan losses		4,322
Ending balance	$ 110,191	110,191		$ 110,266
Loans Receivable [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	111,516	110,266	$ 80,002	80,002
Loans charged off	(2,501)	(7,173)	(6,111)	(11,360)
Recoveries of loans previously charged off	1,176	2,776	1,946	1,539
Net loans recovered (charged off)	(1,325)	(4,397)	(4,165)	(9,821)
Provision for loan losses		4,322	4,301	39,949
Ending balance	110,191	110,191	80,138	110,266
Loans Receivable [Member] | Residential Real Estate Loans [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	24,205	24,506	16,517	16,517
Loans charged off	(608)	(2,339)	(2,288)	(1,692)
Recoveries of loans previously charged off	309	844	254	422
Net loans recovered (charged off)	(299)	(1,495)	(2,034)	(1,270)
Provision for loan losses	193	1,088	3,232	8,061
Ending balance	24,099	24,099	17,715	24,506
Loans Receivable [Member] | Commercial and Industrial [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	16,193	15,292	12,756	12,756
Loans charged off	(744)	(1,816)	(779)	(4,799)
Recoveries of loans previously charged off	251	568	252	212
Net loans recovered (charged off)	(493)	(1,248)	(527)	(4,587)
Provision for loan losses	(1,923)	(267)	599	7,051
Ending balance	13,777	13,777	12,828	15,292
Loans Receivable [Member] | Unallocated [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	1,372	2,852	6,831	6,831
Provision for loan losses	2,916	1,436	(984)	(2,995)
Ending balance	4,288	4,288	5,847	2,852
Construction/Land Development [Member] | Loans Receivable [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	20,243	20,343	11,522	11,522
Loans charged off	(337)	(399)	(326)	(1,306)
Recoveries of loans previously charged off	90	209	227	235
Net loans recovered (charged off)	(247)	(190)	(99)	(1,071)
Provision for loan losses	(982)	(1,139)	1,419	8,572
Ending balance	19,014	19,014	12,842	20,343
Other Commercial Real Estate [Member] | Loans Receivable [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	45,985	43,939	28,188	28,188
Loans charged off	(144)	(981)	(1,655)	(2,094)
Recoveries of loans previously charged off	195	383	710	332
Net loans recovered (charged off)	51	(598)	(945)	(1,762)
Provision for loan losses	(683)	2,012	600	17,858
Ending balance	45,353	45,353	27,843	43,939
Consumer & Other [Member] | Loans Receivable [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning balance	3,518	3,334	4,188	4,188
Loans charged off	(668)	(1,638)	(1,063)	(1,469)
Recoveries of loans previously charged off	331	772	503	338
Net loans recovered (charged off)	(337)	(866)	(560)	(1,131)
Provision for loan losses	479	1,192	(565)	1,402
Ending balance	$ 3,660	$ 3,660	$ 3,063	$ 3,334

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Allowance for Loan Losses, Credit Quality and Other - Recorded Investment in Loans Based on Portfolio Segment by Impairment Method (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans individually evaluated for impairment	$ 0		$ 0
Purchased credit impaired loans	120,800		146,600
Allowance for loan losses	110,191		110,266
Loans evaluated for impairment, ending balance	10,683,375		10,133,136
Purchased credit impaired loans	149,440		198,052
Total Loans Receivable	10,832,815		10,331,188
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans evaluated for impairment, ending balance	1,287,512		1,283,028
Total Loans Receivable	1,303,841		1,297,397
Loans Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	10,832,815		10,331,188
Loans Receivable [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans individually evaluated for impairment	1,511		3,184
Loans collectively evaluated for impairment	107,715		105,571
Loans evaluated for impairment, ending balance	109,226		108,755
Purchased credit impaired loans	965		1,511
Allowance for loan losses	110,191	$ 111,516	110,266	$ 80,138	$ 80,002
Loans individually evaluated for impairment	128,161		193,782
Loans collectively evaluated for impairment	10,555,214		9,939,354
Loans evaluated for impairment, ending balance	10,683,375		10,133,136
Purchased credit impaired loans	149,440		198,052
Total Loans Receivable	10,832,815		10,331,188
Loans Receivable [Member] | Residential Real Estate Loans [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans individually evaluated for impairment	115		188
Loans collectively evaluated for impairment	23,355		23,341
Loans evaluated for impairment, ending balance	23,470		23,529
Purchased credit impaired loans	629		977
Allowance for loan losses	24,099	24,205	24,506	17,715	16,517
Loans individually evaluated for impairment	19,933		20,431
Loans collectively evaluated for impairment	2,534,630		2,341,081
Loans evaluated for impairment, ending balance	2,554,563		2,361,512
Purchased credit impaired loans	36,711		50,102
Total Loans Receivable	2,591,274		2,411,614
Loans Receivable [Member] | Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	1,303,841		1,297,397
Loans Receivable [Member] | Commercial and Industrial [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans individually evaluated for impairment	9		843
Loans collectively evaluated for impairment	13,672		14,290
Loans evaluated for impairment, ending balance	13,681		15,133
Purchased credit impaired loans	96		159
Allowance for loan losses	13,777	16,193	15,292	12,828	12,756
Loans individually evaluated for impairment	30,716		21,867
Loans collectively evaluated for impairment	1,256,796		1,261,161
Loans evaluated for impairment, ending balance	1,287,512		1,283,028
Purchased credit impaired loans	16,329		14,369
Total Loans Receivable	1,303,841		1,297,397
Loans Receivable [Member] | Unallocated [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans collectively evaluated for impairment	4,288		2,852
Loans evaluated for impairment, ending balance	4,288		2,852
Allowance for loan losses	4,288	1,372	2,852	5,847	6,831
Construction/Land Development [Member] | Loans Receivable [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans individually evaluated for impairment	854		1,378
Loans collectively evaluated for impairment	18,150		18,954
Loans evaluated for impairment, ending balance	19,004		20,332
Purchased credit impaired loans	10		11
Allowance for loan losses	19,014	20,243	20,343	12,842	11,522
Loans individually evaluated for impairment	14,876		26,860
Loans collectively evaluated for impairment	1,526,689		1,658,519
Loans evaluated for impairment, ending balance	1,541,565		1,685,379
Purchased credit impaired loans	9,345		15,112
Total Loans Receivable	1,550,910		1,700,491
Other Commercial Real Estate [Member] | Loans Receivable [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans individually evaluated for impairment	533		768
Loans collectively evaluated for impairment	44,590		42,824
Loans evaluated for impairment, ending balance	45,123		43,592
Purchased credit impaired loans	230		347
Allowance for loan losses	45,353	45,985	43,939	27,843	28,188
Loans individually evaluated for impairment	60,572		124,124
Loans collectively evaluated for impairment	4,613,352		4,442,201
Loans evaluated for impairment, ending balance	4,673,924		4,566,325
Purchased credit impaired loans	84,833		116,021
Total Loans Receivable	4,758,757		4,682,346
Consumer & Other [Member] | Loans Receivable [Member] | Allowance for Loan Losses [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans individually evaluated for impairment			7
Loans collectively evaluated for impairment	3,660		3,310
Loans evaluated for impairment, ending balance	3,660		3,317
Purchased credit impaired loans			17
Allowance for loan losses	3,660	$ 3,518	3,334	$ 3,063	$ 4,188
Loans individually evaluated for impairment	2,064		500
Loans collectively evaluated for impairment	623,747		236,392
Loans evaluated for impairment, ending balance	625,811		236,892
Purchased credit impaired loans	2,222		2,448
Total Loans Receivable	$ 628,033		$ 239,340

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Allowance for Loan Losses, Credit Quality and Other - Summary of Aging Analysis for Loans Receivable (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans Receivable	$ 10,832,815	$ 10,331,188
Multifamily Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans Receivable	608,608	441,303
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans Receivable	428,192	46,148
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans Receivable	1,303,841	1,297,397
Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	88,215	68,462
Current Loans	10,744,600	10,262,726
Total Loans Receivable	10,832,815	10,331,188
Accruing Loans Past Due 90 Days or More	20,267	10,665
Loans Receivable [Member] | Multifamily Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,465	253
Current Loans	607,143	441,050
Total Loans Receivable	608,608	441,303
Accruing Loans Past Due 90 Days or More		100
Loans Receivable [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,861	474
Current Loans	425,331	45,674
Total Loans Receivable	428,192	46,148
Accruing Loans Past Due 90 Days or More	1,796	26
Loans Receivable [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	11,701	9,631
Current Loans	1,292,140	1,287,766
Total Loans Receivable	1,303,841	1,297,397
Accruing Loans Past Due 90 Days or More	2,006	1,944
Loans Receivable [Member] | Agricultural and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,316	538
Current Loans	198,525	192,654
Total Loans Receivable	199,841	193,192
Accruing Loans Past Due 90 Days or More		54
Loans Past Due 30-59 Days [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	23,834	18,844
Loans Past Due 30-59 Days [Member] | Loans Receivable [Member] | Multifamily Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	482
Loans Past Due 30-59 Days [Member] | Loans Receivable [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	784	252
Loans Past Due 30-59 Days [Member] | Loans Receivable [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,868	2,073
Loans Past Due 30-59 Days [Member] | Loans Receivable [Member] | Agricultural and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,260	288
Loans Past Due 60-89 Days [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	7,916	4,921
Loans Past Due 60-89 Days [Member] | Loans Receivable [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	73	51
Loans Past Due 60-89 Days [Member] | Loans Receivable [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	384	1,030
Loans Past Due 60-89 Days [Member] | Loans Receivable [Member] | Agricultural and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	23	113
Loans Past Due 90 Days or More [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	56,465	44,697
Loans Past Due 90 Days or More [Member] | Loans Receivable [Member] | Multifamily Residential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	983	253
Loans Past Due 90 Days or More [Member] | Loans Receivable [Member] | Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,004	171
Loans Past Due 90 Days or More [Member] | Loans Receivable [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,449	6,528
Loans Past Due 90 Days or More [Member] | Loans Receivable [Member] | Agricultural and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	33	137
Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans Receivable	4,685,827	4,600,117
Commercial Real Estate Non Farm Nonresidential [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	33,535	20,530
Current Loans	4,652,292	4,579,587
Total Loans Receivable	4,685,827	4,600,117
Accruing Loans Past Due 90 Days or More	11,405	3,119
Commercial Real Estate Non Farm Nonresidential [Member] | Loans Past Due 30-59 Days [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,496	6,331
Commercial Real Estate Non Farm Nonresidential [Member] | Loans Past Due 60-89 Days [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,411	1,480
Commercial Real Estate Non Farm Nonresidential [Member] | Loans Past Due 90 Days or More [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	22,628	12,719
Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans Receivable	1,550,910	1,700,491
Commercial Real Estate Construction Land Development Loan [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	9,904	9,105
Current Loans	1,541,006	1,691,386
Total Loans Receivable	1,550,910	1,700,491
Accruing Loans Past Due 90 Days or More	3,551	3,247
Commercial Real Estate Construction Land Development Loan [Member] | Loans Past Due 30-59 Days [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	803	834
Commercial Real Estate Construction Land Development Loan [Member] | Loans Past Due 60-89 Days [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	584	13
Commercial Real Estate Construction Land Development Loan [Member] | Loans Past Due 90 Days or More [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	8,517	8,258
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans Receivable	72,930	82,229
Agricultural [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	30	240
Current Loans	72,900	81,989
Total Loans Receivable	72,930	82,229
Agricultural [Member] | Loans Past Due 60-89 Days [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		221
Agricultural [Member] | Loans Past Due 90 Days or More [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	30	19
Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans Receivable	1,982,666	1,970,311
Residential 1-4 Family [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	27,403	27,691
Current Loans	1,955,263	1,942,620
Total Loans Receivable	1,982,666	1,970,311
Accruing Loans Past Due 90 Days or More	1,509	2,175
Residential 1-4 Family [Member] | Loans Past Due 30-59 Days [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	9,141	9,066
Residential 1-4 Family [Member] | Loans Past Due 60-89 Days [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,441	2,013
Residential 1-4 Family [Member] | Loans Past Due 90 Days or More [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	15,821	16,612
Residential and Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Loans Receivable	8,900,941	8,794,451
Residential and Commercial Real Estate [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	72,337	57,819
Current Loans	8,828,604	8,736,632
Total Loans Receivable	8,900,941	8,794,451
Accruing Loans Past Due 90 Days or More	16,465	8,641
Residential and Commercial Real Estate [Member] | Loans Past Due 30-59 Days [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	16,922	16,231
Residential and Commercial Real Estate [Member] | Loans Past Due 60-89 Days [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	7,436	3,727
Residential and Commercial Real Estate [Member] | Loans Past Due 90 Days or More [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 47,979	$ 37,861

XML

Allowance for Loan Losses, Credit Quality and Other - Summary of Impaired Loans (Detail) - USD ($)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	$ 590,000		$ 590,000		$ 350,000
Total Recorded Investment	591,000		591,000		313,000
Allocation of Allowance for Loan Losses	0		0		0
Average Recorded Investment	559,000		477,000		274,000
Interest Recognized	10,000		28,000		21,000
Unpaid Contractual Principal Balance	89,307,000		89,307,000		81,573,000
Total Recorded Investment	78,415,000		78,415,000		75,323,000
Allocation of Allowance for Loan Losses	1,511,000		1,511,000		3,184,000
Average Recorded Investment	80,504,000		79,703,000		86,888,000
Interest Recognized	580,000		2,118,000		2,344,000
Unpaid Contractual Principal Balance	89,897,000		89,897,000		81,923,000
Total Recorded Investment	79,006,000		79,006,000		75,636,000
Allocation of Allowance for Loan Losses	1,511,000		1,511,000		3,184,000
Average Recorded Investment	81,063,000		80,180,000		87,162,000
Interest Recognized	590,000	$ 957,000	2,146,000	$ 2,000,000	2,365,000
Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	44,000		44,000		29,000
Total Recorded Investment	44,000		44,000		29,000
Allocation of Allowance for Loan Losses	0		0		0
Average Recorded Investment	36,000		33,000		23,000
Interest Recognized	1,000		2,000		2,000
Unpaid Contractual Principal Balance	41,299,000		41,299,000		29,666,000
Total Recorded Investment	37,365,000		37,365,000		29,040,000
Allocation of Allowance for Loan Losses	524,000		524,000		757,000
Average Recorded Investment	37,770,000		33,965,000		41,772,000
Interest Recognized	375,000		1,107,000		1,498,000
Unpaid Contractual Principal Balance	41,343,000		41,343,000		29,695,000
Total Recorded Investment	37,409,000		37,409,000		29,069,000
Allocation of Allowance for Loan Losses	524,000		524,000		757,000
Average Recorded Investment	37,806,000		33,998,000		41,795,000
Interest Recognized	376,000		1,109,000		1,500,000
Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	18,000		18,000		64,000
Total Recorded Investment	18,000		18,000		64,000
Allocation of Allowance for Loan Losses	0		0		0
Average Recorded Investment	18,000		30,000		31,000
Interest Recognized			1,000		3,000
Unpaid Contractual Principal Balance	13,509,000		13,509,000		12,976,000
Total Recorded Investment	12,446,000		12,446,000		12,157,000
Allocation of Allowance for Loan Losses	854,000		854,000		1,378,000
Average Recorded Investment	12,614,000		12,398,000		10,556,000
Interest Recognized	75,000		234,000		262,000
Unpaid Contractual Principal Balance	13,527,000		13,527,000		13,040,000
Total Recorded Investment	12,464,000		12,464,000		12,221,000
Allocation of Allowance for Loan Losses	854,000		854,000		1,378,000
Average Recorded Investment	12,632,000		12,428,000		10,587,000
Interest Recognized	75,000		235,000		265,000
Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	13,000		13,000		19,000
Total Recorded Investment	13,000		13,000
Allocation of Allowance for Loan Losses	0		0		0
Average Recorded Investment	14,000		16,000
Interest Recognized			1,000		1,000
Unpaid Contractual Principal Balance	299,000		299,000		281,000
Total Recorded Investment	303,000		303,000		303,000
Allocation of Allowance for Loan Losses	9,000		9,000		11,000
Average Recorded Investment	410,000		412,000		268,000
Interest Recognized	4,000		14,000		11,000
Unpaid Contractual Principal Balance	312,000		312,000		300,000
Total Recorded Investment	316,000		316,000		303,000
Allocation of Allowance for Loan Losses	9,000		9,000		11,000
Average Recorded Investment	424,000		428,000		268,000
Interest Recognized	4,000		15,000		12,000
Residential 1-4 Family [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	286,000		286,000		115,000
Total Recorded Investment	286,000		286,000		115,000
Allocation of Allowance for Loan Losses	0		0		0
Average Recorded Investment	237,000		186,000		135,000
Interest Recognized	5,000		14,000		7,000
Unpaid Contractual Principal Balance	19,248,000		19,248,000		19,770,000
Total Recorded Investment	17,241,000		17,241,000		18,689,000
Allocation of Allowance for Loan Losses	67,000		67,000		124,000
Average Recorded Investment	17,678,000		18,639,000		22,347,000
Interest Recognized	51,000		429,000		363,000
Unpaid Contractual Principal Balance	19,534,000		19,534,000		19,885,000
Total Recorded Investment	17,527,000		17,527,000		18,804,000
Allocation of Allowance for Loan Losses	67,000		67,000		124,000
Average Recorded Investment	17,915,000		18,825,000		22,482,000
Interest Recognized	56,000		443,000		370,000
Residential and Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	361,000		361,000		227,000
Total Recorded Investment	361,000		361,000		208,000
Allocation of Allowance for Loan Losses	0		0		0
Average Recorded Investment	305,000		265,000		189,000
Interest Recognized	6,000		18,000		13,000
Unpaid Contractual Principal Balance	76,760,000		76,760,000		64,320,000
Total Recorded Investment	69,760,000		69,760,000		61,816,000
Allocation of Allowance for Loan Losses	1,502,000		1,502,000		2,334,000
Average Recorded Investment	71,033,000		67,530,000		76,355,000
Interest Recognized	521,000		1,850,000		2,215,000
Unpaid Contractual Principal Balance	77,121,000		77,121,000		64,547,000
Total Recorded Investment	70,121,000		70,121,000		62,024,000
Allocation of Allowance for Loan Losses	1,502,000		1,502,000		2,334,000
Average Recorded Investment	71,338,000		67,795,000		76,544,000
Interest Recognized	527,000		1,868,000		2,228,000
Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	202,000		202,000		105,000
Total Recorded Investment	202,000		202,000		105,000
Allocation of Allowance for Loan Losses	0		0		0
Average Recorded Investment	225,000		189,000		85,000
Interest Recognized	3,000		8,000		7,000
Unpaid Contractual Principal Balance	10,269,000		10,269,000		16,777,000
Total Recorded Investment	6,619,000		6,619,000		13,007,000
Allocation of Allowance for Loan Losses	9,000		9,000		843,000
Average Recorded Investment	8,276,000		11,361,000		9,726,000
Interest Recognized	35,000		223,000		121,000
Unpaid Contractual Principal Balance	10,471,000		10,471,000		16,882,000
Total Recorded Investment	6,821,000		6,821,000		13,112,000
Allocation of Allowance for Loan Losses	9,000		9,000		843,000
Average Recorded Investment	8,501,000		11,550,000		9,811,000
Interest Recognized	38,000		231,000		128,000
Agricultural and Other [Member]
Financing Receivable, Impaired [Line Items]
Allocation of Allowance for Loan Losses	0		0		0
Unpaid Contractual Principal Balance	33,000		33,000		297,000
Total Recorded Investment	33,000		33,000		309,000
Allocation of Allowance for Loan Losses					7,000
Average Recorded Investment	103,000		174,000		644,000
Interest Recognized			3,000		8,000
Unpaid Contractual Principal Balance	33,000		33,000		297,000
Total Recorded Investment	33,000		33,000		309,000
Allocation of Allowance for Loan Losses					7,000
Average Recorded Investment	103,000		174,000		644,000
Interest Recognized			3,000		8,000
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Unpaid Contractual Principal Balance	27,000		27,000		18,000
Total Recorded Investment	28,000		28,000
Allocation of Allowance for Loan Losses	0		0		0
Average Recorded Investment	29,000		23,000
Interest Recognized	1,000		2,000		1,000
Unpaid Contractual Principal Balance	2,245,000		2,245,000		179,000
Total Recorded Investment	2,003,000		2,003,000		191,000
Average Recorded Investment	1,092,000		638,000		163,000
Interest Recognized	24,000		42,000
Unpaid Contractual Principal Balance	2,272,000		2,272,000		197,000
Total Recorded Investment	2,031,000		2,031,000		191,000
Average Recorded Investment	1,121,000		661,000		163,000
Interest Recognized	25,000		44,000		1,000
Multifamily Residential [Member]
Financing Receivable, Impaired [Line Items]
Allocation of Allowance for Loan Losses	0		0		0
Unpaid Contractual Principal Balance	2,405,000		2,405,000		1,627,000
Total Recorded Investment	2,405,000		2,405,000		1,627,000
Allocation of Allowance for Loan Losses	48,000		48,000		64,000
Average Recorded Investment	2,561,000		2,116,000		1,412,000
Interest Recognized	16,000		66,000		81,000
Unpaid Contractual Principal Balance	2,405,000		2,405,000		1,627,000
Total Recorded Investment	2,405,000		2,405,000		1,627,000
Allocation of Allowance for Loan Losses	48,000		48,000		64,000
Average Recorded Investment	2,561,000		2,116,000		1,412,000
Interest Recognized	$ 16,000		$ 66,000		$ 81,000

XML

Allowance for Loan Losses, Credit Quality and Other - Presentation of Classified Loans by Class and Risk Rating (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	$ 10,683,375	$ 10,133,136
Purchased credit impaired loans acquired	149,440	198,052
Loans receivable	10,832,815	10,331,188
Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	4,601,190	4,484,302
Loans receivable	4,685,827	4,600,117
Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	1,541,565	1,685,379
Loans receivable	1,550,910	1,700,491
Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	72,734	82,023
Loans receivable	72,930	82,229
Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	1,949,006	1,928,219
Loans receivable	1,982,666	1,970,311
Residential and Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	8,770,052	8,613,216
Loans receivable	8,900,941	8,794,451
Agricultural and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	199,841	191,729
Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	10,832,815	10,331,188
Loans Receivable [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	4,685,827	4,600,117
Loans Receivable [Member] | Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	1,550,910	1,700,491
Loans Receivable [Member] | Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	72,930	82,229
Loans Receivable [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	1,982,666	1,970,311
Loans Receivable [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	8,900,941	8,794,451
Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	425,970	45,163
Loans receivable	428,192	46,148
Consumer [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	428,192	46,148
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	1,287,512	1,283,028
Loans receivable	1,303,841	1,297,397
Commercial and Industrial [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	1,303,841	1,297,397
Agricultural and Other [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	199,841	193,192
Multifamily Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	605,557	433,293
Loans receivable	608,608	441,303
Multifamily Residential [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	608,608	441,303
Risk Rated 1 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	37,548	38,145
Risk Rated 1 [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	993	1,015
Risk Rated 1 [Member] | Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	20	28
Risk Rated 1 [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	770	1,140
Risk Rated 1 [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	1,783	2,183
Risk Rated 1 [Member] | Agricultural and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	1,045	1,986
Risk Rated 1 [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	13,051	13,106
Risk Rated 1 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	21,669	20,870
Risk Rated 2 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	14,973	14,394
Risk Rated 2 [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	299	558
Risk Rated 2 [Member] | Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	736	583
Risk Rated 2 [Member] | Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share		19
Risk Rated 2 [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	750	969
Risk Rated 2 [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	1,785	2,129
Risk Rated 2 [Member] | Agricultural and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	3,388	3,914
Risk Rated 2 [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	995	808
Risk Rated 2 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	8,805	7,543
Risk Rated 3 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	5,931,028	5,470,879
Risk Rated 3 [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	2,660,482	2,595,844
Risk Rated 3 [Member] | Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	261,009	280,980
Risk Rated 3 [Member] | Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	35,336	53,018
Risk Rated 3 [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	1,454,690	1,414,849
Risk Rated 3 [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	4,809,811	4,673,761
Risk Rated 3 [Member] | Agricultural and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	134,301	147,323
Risk Rated 3 [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	397,060	22,479
Risk Rated 3 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	589,856	627,316
Risk Rated 3 [Member] | Multifamily Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	398,294	329,070
Risk Rated 4 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	4,529,007	4,364,106
Risk Rated 4 [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	1,863,651	1,745,778
Risk Rated 4 [Member] | Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	1,263,515	1,373,133
Risk Rated 4 [Member] | Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	36,099	27,515
Risk Rated 4 [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	461,225	475,619
Risk Rated 4 [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	3,830,770	3,725,116
Risk Rated 4 [Member] | Agricultural and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	60,520	38,370
Risk Rated 4 [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	13,617	8,532
Risk Rated 4 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	624,100	592,088
Risk Rated 4 [Member] | Multifamily Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	206,280	103,071
Risk Rated 5 [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	74,927	161,498
Risk Rated 5 [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	33,857	119,656
Risk Rated 5 [Member] | Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	923	6,438
Risk Rated 5 [Member] | Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	981	1,150
Risk Rated 5 [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	7,536	11,658
Risk Rated 5 [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	43,297	139,115
Risk Rated 5 [Member] | Agricultural and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	537
Risk Rated 5 [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	129	70
Risk Rated 5 [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	30,964	22,313
Risk Rated 5 [Member] | Multifamily Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share		213
Classified Total [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	95,892	84,114
Classified Total [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	41,908	21,451
Classified Total [Member] | Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	15,362	24,217
Classified Total [Member] | Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	318	321
Classified Total [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	24,035	23,984
Classified Total [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	82,606	70,912
Classified Total [Member] | Agricultural and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	50	136
Classified Total [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	95,892	84,114
Classified Total [Member] | Loans Receivable [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	41,908	21,451
Classified Total [Member] | Loans Receivable [Member] | Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	15,362	24,217
Classified Total [Member] | Loans Receivable [Member] | Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	318	321
Classified Total [Member] | Loans Receivable [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	24,035	23,984
Classified Total [Member] | Loans Receivable [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	82,606	70,912
Classified Total [Member] | Consumer [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	1,118	168
Classified Total [Member] | Consumer [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	1,118	168
Classified Total [Member] | Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	12,118	12,898
Classified Total [Member] | Commercial and Industrial [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	12,118	12,898
Classified Total [Member] | Agricultural and Other [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	50	136
Classified Total [Member] | Multifamily Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable not covered by loss share	983	939
Classified Total [Member] | Multifamily Residential [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	983	939
Risk Rated 6 [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	93,410	82,739
Risk Rated 6 [Member] | Loans Receivable [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	41,424	20,933
Risk Rated 6 [Member] | Loans Receivable [Member] | Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	14,502	24,013
Risk Rated 6 [Member] | Loans Receivable [Member] | Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	315	321
Risk Rated 6 [Member] | Loans Receivable [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	23,782	23,420
Risk Rated 6 [Member] | Loans Receivable [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	81,006	69,626
Risk Rated 6 [Member] | Consumer [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	1,117	159
Risk Rated 6 [Member] | Commercial and Industrial [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	11,237	12,818
Risk Rated 6 [Member] | Agricultural and Other [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	50	136
Risk Rated 6 [Member] | Multifamily Residential [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	983	939
Risk Rated 7 [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	2,482	1,375
Risk Rated 7 [Member] | Loans Receivable [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	484	518
Risk Rated 7 [Member] | Loans Receivable [Member] | Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	860	204
Risk Rated 7 [Member] | Loans Receivable [Member] | Agricultural [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	3
Risk Rated 7 [Member] | Loans Receivable [Member] | Residential 1-4 Family [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	253	564
Risk Rated 7 [Member] | Loans Receivable [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	1,600	1,286
Risk Rated 7 [Member] | Consumer [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	1	9
Risk Rated 7 [Member] | Commercial and Industrial [Member] | Loans Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	$ 881	$ 80

XML

Allowance for Loan Losses, Credit Quality and Other - Presentation of Troubled Debt Restructurings ("TDRs") by Class (Detail) - Loans Receivable [Member] $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018 USD ($) Contracts	Dec. 31, 2017 USD ($) Contracts
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	65	62
Pre-Modification Outstanding Balance	$ 24,297	$ 26,424
Post-Modification Outstanding Balance	$ 18,917	$ 21,198
Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	16	16
Pre-Modification Outstanding Balance	$ 16,018	$ 16,853
Post-Modification Outstanding Balance	$ 13,413	$ 14,578
Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	3	5
Pre-Modification Outstanding Balance	$ 641	$ 782
Post-Modification Outstanding Balance	$ 615	$ 764
Agricultural [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	2	2
Pre-Modification Outstanding Balance	$ 345	$ 345
Post-Modification Outstanding Balance	$ 299	$ 304
Residential 1-4 Family [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	24	21
Pre-Modification Outstanding Balance	$ 4,494	$ 5,607
Post-Modification Outstanding Balance	$ 2,493	$ 3,245
Residential and Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	48	47
Pre-Modification Outstanding Balance	$ 23,199	$ 25,288
Post-Modification Outstanding Balance	$ 18,388	$ 20,518
Agricultural and Other [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts		1
Pre-Modification Outstanding Balance		$ 166
Post-Modification Outstanding Balance		$ 166
Consumer [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	4	3
Pre-Modification Outstanding Balance	$ 36	$ 19
Post-Modification Outstanding Balance	$ 28	$ 18
Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	13	11
Pre-Modification Outstanding Balance	$ 1,062	$ 951
Post-Modification Outstanding Balance	501	496
Rate Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	11,805	13,663
Rate Modification [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	8,177	8,815
Rate Modification [Member] | Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	546	689
Rate Modification [Member] | Agricultural [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	283	282
Rate Modification [Member] | Residential 1-4 Family [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	1,105	1,926
Rate Modification [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	11,392	13,052
Rate Modification [Member] | Agricultural and Other [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance		166
Rate Modification [Member] | Consumer [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	17
Rate Modification [Member] | Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	396	445
Term Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	1,296	496
Term Modification [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	742	250
Term Modification [Member] | Commercial Real Estate Construction Land Development Loan [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	69	75
Term Modification [Member] | Agricultural [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	16	22
Term Modification [Member] | Residential 1-4 Family [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	353	81
Term Modification [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	1,180	428
Term Modification [Member] | Consumer [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	11	18
Term Modification [Member] | Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	105	50
Rate and Term Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	5,816	7,039
Rate and Term Modification [Member] | Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	4,494	5,513
Rate and Term Modification [Member] | Residential 1-4 Family [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	1,035	1,238
Rate and Term Modification [Member] | Residential and Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	$ 5,816	7,038
Rate and Term Modification [Member] | Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance		$ 1
Multifamily Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	3	3
Pre-Modification Outstanding Balance	$ 1,701	$ 1,701
Post-Modification Outstanding Balance	1,568	1,627
Multifamily Residential [Member] | Rate Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	1,281	1,340
Multifamily Residential [Member] | Rate and Term Modification [Member]
Financing Receivable, Modifications [Line Items]
Post-Modification Outstanding Balance	$ 287	$ 287

XML

Allowance for Loan Losses, Credit Quality and Other - Presentation of TDR's on Non-Accrual Status (Detail) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018 USD ($) Contracts	Dec. 31, 2017 USD ($) Contracts
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	20	13
Recorded Balance | $	$ 1,835	$ 2,186
Multifamily Residential [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	1	1
Recorded Balance | $	$ 146	$ 153
Commercial Real Estate Non Farm Nonresidential [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	3	2
Recorded Balance | $	$ 758	$ 1,161
Agricultural [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	1	1
Recorded Balance | $	$ 16	$ 22
Residential 1-4 Family [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	9	8
Recorded Balance | $	$ 787	$ 850
Residential and Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	14	12
Recorded Balance | $	$ 1,707	$ 2,186
Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Number of Loans | Contracts	6	1
Recorded Balance | $	$ 128

XML

Allowance for Loan Losses, Credit Quality and Other - Summary of Total Foreclosed Assets (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	$ 13,507	$ 18,867
Commercial Real Estate Non Farm Nonresidential [Member]
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	5,858	9,766
Commercial Real Estate Construction Land Development Loan [Member]
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	3,539	5,920
Residential 1-4 Family [Member]
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	3,885	2,654
Commercial Real Estate Agriculture [Member]
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	155
Multifamily Residential [Member]
Schedule Of Foreclosed Assets Activity [Line Items]
Total foreclosed assets held for sale	$ 70	$ 527

XML

Allowance for Loan Losses, Credit Quality and Other - Summary of Purchased Credit Impaired Loans Acquired (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Non-accretable difference (expected losses and foregone interest)	$ 40,500	$ 51,900
Accretable yield	80,300	$ 94,700
Shore Premier Finance [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required principal and interest at acquisition	3,496
Non-accretable difference (expected losses and foregone interest)	285
Cash flows expected to be collected at acquisition	3,211
Cash flows expected to be collected at acquisition	3,211
Accretable yield	808
Basis in purchased credit impaired loans at acquisition	2,403
Giant Holdings, Inc. [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required principal and interest at acquisition	22,379
Non-accretable difference (expected losses and foregone interest)	4,462
Cash flows expected to be collected at acquisition	17,917
Cash flows expected to be collected at acquisition	17,917
Accretable yield	2,071
Basis in purchased credit impaired loans at acquisition	15,846
The Bank of Commerce [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required principal and interest at acquisition	18,586
Non-accretable difference (expected losses and foregone interest)	2,811
Cash flows expected to be collected at acquisition	15,775
Cash flows expected to be collected at acquisition	15,775
Accretable yield	1,043
Basis in purchased credit impaired loans at acquisition	14,732
Stonegate Bank [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required principal and interest at acquisition	98,444
Non-accretable difference (expected losses and foregone interest)	23,297
Cash flows expected to be collected at acquisition	75,147
Cash flows expected to be collected at acquisition	75,147
Accretable yield	11,761
Basis in purchased credit impaired loans at acquisition	$ 63,386

XML

Allowance for Loan Losses, Credit Quality and Other - Changes in Carrying Amount of Accretable Yield for Purchased Credit Impaired Loans (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2018 USD ($)
Receivables [Abstract]
Balance at beginning of period, Accretable Yield	$ 41,803
Reforecasted future interest payments for loan pools, Accretable Yield	(459)
Contractual accretion recorded to interest income	(13,206)
Acquisitions, Accretable Yield	808
Adjustment to yield, Accretable Yield	8,519
Transfers to foreclosed assets held for sale, Accretable Yield	0
Payments received, net, Accretable Yield	0
Balance at end of period, Accretable Yield	37,465
Balance at beginning of period, Carrying Amount of Loans	198,052
Reforecasted future interest payments for loan pools, Carrying Amount of Loans	0
Contractual accretion recorded to interest income	13,206
Acquisitions, Carrying Amount of Loans	2,403
Adjustment to yield, Carrying Amount of Loans	0
Transfers to foreclosed assets held for sale	(2,156)
Payments received, net, Carrying Amount of Loans	(62,065)
Balance at end of period, Carrying Amount of Loans	$ 149,440

XML

Goodwill and Core Deposits and Other Intangibles - Summary of Changes in Carrying Amount and Accumulated Amortization of Company's Goodwill and Core Deposits and Other Intangibles (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Goodwill
Balance, beginning of period			$ 927,949	$ 377,983	$ 377,983
Acquisitions			30,459		549,966
Balance, end of period	$ 958,408		958,408		927,949
Core Deposit and Other Intangibles
Balance, beginning of period			49,351	18,311	18,311
Acquisitions				35,247
Amortization expense	(1,617)	$ (906)	(4,867)	(2,576)	(1,631)
Balance, end of period	$ 44,484	$ 50,982	$ 44,484	$ 50,982	$ 49,351

XML

Goodwill and Core Deposits and Other Intangibles - Summary of Carrying Amount and Accumulated Amortization of Core Deposits and Other Intangibles (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017	Sep. 30, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Gross carrying basis	$ 86,625	$ 86,625
Accumulated amortization	(42,141)	(37,274)
Net carrying amount	$ 44,484	$ 49,351	$ 50,982	$ 18,311

XML

Goodwill and Core Deposits and Other Intangibles - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Core deposit and other intangible amortization	$ 1,617	$ 906	$ 4,867	$ 2,576	$ 1,631
Amortization expense for year 2018	6,600		6,600
Amortization expense for year 2019	6,500		6,500
Amortization expense for year 2020	5,900		5,900
Amortization expense for year 2021	5,700		5,700
Amortization expense for year 2022	5,700		5,700
Amortization expense for year 2023	5,500		5,500
Carrying amount of Company's goodwill	$ 958,408		$ 958,408		$ 927,949	$ 377,983

XML

Other Assets - Additional Information (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Schedule Of Other Assets [Line Items]
Other assets	$ 187,339	$ 177,779
Federal Home Loan Bank ("FHLB") and Federal Reserve Bank ("Federal Reserve") [Member]
Schedule Of Other Assets [Line Items]
Fair value of equity securities	134,100	132,100
First National Bankers' Bank and Other Miscellaneous Holdings [Member]
Schedule Of Other Assets [Line Items]
Fair value of equity securities	$ 24,500	$ 23,900

XML

Deposits - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Deposits [Line Items]
Time deposits with a minimum denomination of $250,000	$ 784,800		$ 784,800		$ 636,900
Time deposits with a minimum denomination of $100,000	1,250,000		1,250,000		998,300
Interest expense applicable to certificate	4,900	$ 2,200	11,500	$ 5,800
Brokered deposits	591,600		591,600		1,030,000
Total deposits	10,624,738		10,624,738		10,388,502
State and Political Subdivisions [Member]
Deposits [Line Items]
Total deposits	$ 1,840,000		$ 1,840,000		$ 1,510,000

XML

Securities Sold Under Agreements to Repurchase - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Securities Sold under Agreements to Repurchase [Abstract]
Securities sold under agreements to repurchase	$ 142,146		$ 142,146		$ 147,789
Securities sold under agreements to repurchase daily weighted average	$ 148,800	$ 135,900	$ 148,500	$ 129,600

XML

Securities Sold Under Agreements to Repurchase - Summary of Remaining Contractual Maturity of Securities Sold Under Agreements to Repurchase (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	$ 142,146	$ 147,789
U.S. Government-Sponsored Enterprises [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	26,134	21,525
Mortgage-Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	9,694	21,255
State and Political Subdivisions [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	90,715	85,428
Other Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	15,603	19,581
Overnight and Continuous [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	142,146	137,789
Overnight and Continuous [Member] | U.S. Government-Sponsored Enterprises [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	26,134	11,525
Overnight and Continuous [Member] | Mortgage-Backed Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	9,694	21,255
Overnight and Continuous [Member] | State and Political Subdivisions [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	90,715	85,428
Overnight and Continuous [Member] | Other Securities [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	$ 15,603	19,581
Greater than 90 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings		10,000
Greater than 90 Days [Member] | U.S. Government-Sponsored Enterprises [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings		$ 10,000

XML

FHLB Borrowed Funds - Additional Information (Detail) - USD ($) $ in Millions	Sep. 30, 2018	Dec. 31, 2017
Borrowed Funds [Line Items]
FHLB borrowed funds	$ 1,360.0	$ 1,300.0
Maturity of FHLB advances	2033
Short-term advances	$ 750.0	525.0
Long-term advances	609.9	774.2
Line of credit	941.3	$ 695.3
Maturities of Borrowings, remainder of 2018	770.0
Maturities of Borrowings, 2019	143.0
Maturities of Borrowings, 2020	146.4
Maturities of Borrowings, 2021	0.0
Maturities of Borrowings, 2022	0.0
Maturities of Borrowings, after 2023	300.4
Callable by FHLB [Member]
Borrowed Funds [Line Items]
Maturities of Borrowings, after 2023	$ 300.0
Minimum [Member]
Borrowed Funds [Line Items]
FHLB interest rate		1.00%
Maximum [Member]
Borrowed Funds [Line Items]
FHLB interest rate		4.80%

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Other Borrowings - Additional Information (Detail) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Line of Credit Facility [Line Items]
Unsecured line of credit	$ 941,300,000	$ 695,300,000
Other borrowings	0
Line of Credit [Member]
Line of Credit Facility [Line Items]
Credit facility, maximum borrowing capacity	20,000,000
Unsecured line of credit	$ 0	$ 0

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Subordinated Debentures - Preferred Trust Securities and Subordinated Debentures (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Debt Instrument [Line Items]
Subordinated debentures, issued	$ 368,596	$ 368,031
Due 2036, fixed rate of 6.75% during the first five years and at a floating rate of 1.85% [Member] | Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued	3,093	3,093
Due 2034, fixed rate of 6.00% during the first five years and at a floating rate of 2.00% [Member] | Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued	15,464	15,464
Due 2035, fixed rate of 5.84% during the first five years and at a floating rate of 1.45% [Member] | Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued	25,774	25,774
Due 2034, fixed rate of 4.29% during the first five years and at a floating rate of 2.50% [Member] | Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued	16,495	16,495
Due 2035, floating rate 2.15% [Member] | Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued	4,341	4,304
Due 2036, fixed Rate 7.38% during the first five years and at a floating rate of 1.62% [Member] | Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued	5,638	5,569
Due 2027, Fixed Rate of 5.625% During the First Five Years and at a Floating Rate of 3.575% [Member] | Subordinated Debt [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued	$ 297,791	$ 297,332

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Subordinated Debentures - Preferred Trust Securities and Subordinated Debentures (Parenthetical) (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Due 2036, fixed rate of 6.75% during the first five years and at a floating rate of 1.85% [Member] | Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued date	Dec. 31, 2006	Dec. 31, 2006
Subordinated debentures, due date	Dec. 31, 2036	Dec. 31, 2036
Fixed rate for first five years	6.75%	6.75%
Due 2036, fixed rate of 6.75% during the first five years and at a floating rate of 1.85% [Member] | Trust Preferred Securities [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Floating rate above three-month LIBOR rate	1.85%	1.85%
Due 2034, fixed rate of 6.00% during the first five years and at a floating rate of 2.00% [Member] | Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued date	Dec. 31, 2004	Dec. 31, 2004
Subordinated debentures, due date	Dec. 31, 2034	Dec. 31, 2034
Fixed rate for first five years	6.00%	6.00%
Due 2034, fixed rate of 6.00% during the first five years and at a floating rate of 2.00% [Member] | Trust Preferred Securities [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Floating rate above three-month LIBOR rate	2.00%	2.00%
Due 2035, fixed rate of 5.84% during the first five years and at a floating rate of 1.45% [Member] | Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued date	Dec. 31, 2005	Dec. 31, 2005
Subordinated debentures, due date	Dec. 31, 2035	Dec. 31, 2035
Fixed rate for first five years	5.84%	5.84%
Due 2035, fixed rate of 5.84% during the first five years and at a floating rate of 1.45% [Member] | Trust Preferred Securities [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Floating rate above three-month LIBOR rate	1.45%	1.45%
Due 2034, fixed rate of 4.29% during the first five years and at a floating rate of 2.50% [Member] | Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued date	Dec. 31, 2004	Dec. 31, 2004
Subordinated debentures, due date	Dec. 31, 2034	Dec. 31, 2034
Fixed rate for first five years	4.29%	4.29%
Due 2034, fixed rate of 4.29% during the first five years and at a floating rate of 2.50% [Member] | Trust Preferred Securities [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Floating rate above three-month LIBOR rate	2.50%	2.50%
Due 2035, floating rate 2.15% [Member] | Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued date	Dec. 31, 2005	Dec. 31, 2005
Subordinated debentures, due date	Dec. 31, 2035	Dec. 31, 2035
Due 2035, floating rate 2.15% [Member] | Trust Preferred Securities [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Floating rate above three-month LIBOR rate	2.15%	2.15%
Due 2036, fixed Rate 7.38% during the first five years and at a floating rate of 1.62% [Member] | Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued date	Dec. 31, 2006	Dec. 31, 2006
Subordinated debentures, due date	Dec. 31, 2036	Dec. 31, 2036
Fixed rate for first five years	7.38%	7.38%
Due 2036, fixed Rate 7.38% during the first five years and at a floating rate of 1.62% [Member] | Trust Preferred Securities [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Floating rate above three-month LIBOR rate	1.62%	1.62%
Due 2027, Fixed Rate of 5.625% During the First Five Years and at a Floating Rate of 3.575% [Member] | Subordinated Debt [Member]
Debt Instrument [Line Items]
Subordinated debentures, issued date	Sep. 30, 2017	Sep. 30, 2017
Subordinated debentures, due date	Sep. 30, 2027	Dec. 31, 2027
Fixed rate for first five years	5.625%	5.625%
Due 2027, Fixed Rate of 5.625% During the First Five Years and at a Floating Rate of 3.575% [Member] | Subordinated Debt [Member] | LIBOR [Member]
Debt Instrument [Line Items]
Floating rate above three-month LIBOR rate	3.575%	3.575%
Subordinated debentures, callable year	2022

XML

Subordinated Debentures - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Trust Preferred Securities [Member] | Stonegate Bank [Member]
Debt Instrument [Line Items]
Trust preferred securities, face amount	$ 12.5
Trust preferred securities, fair value	9.9
Trust preferred securities, carrying value	$ 9.9	$ 9.8
Debt instrument, redemption description	The associated subordinated debentures are redeemable, in whole or in part, prior to maturity at our option on a quarterly basis when interest is due and payable and in whole at any time within 90 days following the occurrence and continuation of certain changes in the tax treatment or capital treatment of the debentures.
Trust Preferred Securities [Member]
Debt Instrument [Line Items]
Face value of company held trust preferred securities		$ 73.3

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Income Taxes - Additional information (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Statutory federal income tax rate	21.00%	35.00%	21.00%	35.00%	35.00%

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Income Taxes - Summary of Components of Provision (Benefit) for Income Taxes (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017
Current:
Federal	$ 17,999	$ 17,289	$ 44,354	$ 65,958
State	5,958	3,434	14,683	13,101
Total current	23,957	20,723	59,037	79,059
Deferred:
Federal	1,047	(11,002)	10,964	(13,238)
State	346	(2,185)	3,629	(2,629)
Total deferred	1,393	(13,187)	14,593	(15,867)
Income tax expense	$ 25,350	$ 7,536	$ 73,630	$ 63,192

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Income Taxes - Reconciliation between Statutory Federal Income Tax Rate and Effective Income Tax Rate (Detail)	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Statutory federal income tax rate	21.00%	35.00%	21.00%	35.00%	35.00%
Effect of non-taxable interest income	(0.84%)	(4.48%)	(0.80%)	(1.82%)
Effect of gain on acquisitions				(0.76%)
Stock compensation	(0.12%)	(0.09%)	(0.18%)	(0.49%)
State income taxes, net of federal benefit	3.30%	3.91%	3.60%	4.01%
Other	0.66%	(0.63%)	0.68%	0.18%
Effective income tax rate	24.00%	33.71%	24.30%	36.12%

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Income Taxes - Differences Between Tax Basis of Assets and Liabilities (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Deferred tax assets:
Allowance for loan losses	$ 30,023	$ 29,515
Deferred compensation	2,868	1,142
Stock compensation	3,674	2,731
Real estate owned	1,419	1,731
Unrealized loss on securities available-for-sale	11,118	1,471
Loan discounts	25,144	32,784
Tax basis premium/discount on acquisitions	8,387	8,802
Investments	1,008	1,155
Other	10,552	11,663
Gross deferred tax assets	94,193	90,994
Deferred tax liabilities:
Accelerated depreciation on premises and equipment	1,157	291
Core deposit intangibles	10,163	11,258
FHLB dividends	1,712	1,625
Other	1,613	1,256
Gross deferred tax liabilities	14,645	14,430
Net deferred tax assets	$ 79,548	$ 76,564

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Common Stock, Compensation Plans and Other - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended	9 Months Ended		12 Months Ended
	Feb. 21, 2018	Sep. 30, 2018	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized		200,000,000	200,000,000		200,000,000
Common stock, par value		$ 0.01	$ 0.01		$ 0.01
Preferred stock, shares authorized		5,500,000	5,500,000
Preferred stock, par value		$ 0.01	$ 0.01
Number of additional shares authorized to repurchase	5,000,000
Number of shares authorized to be repurchased, total	14,752,000
Number of shares repurchased during period			1,863,400	800,000	57,800
Weighted average stock price			$ 23.14
Repurchase of combining of all the shares			6,388,264
Remaining balance available for repurchase		8,363,736	8,363,736
Remaining shares of common stock available for future grants		1,841,443	1,841,443
Shares of common stock reserved for issuance		5,477,700	5,477,700
Stock options granted			1,576,000		80,000
Stock options granted			1,005,000		232,000
Intrinsic value of stock options outstanding		$ 11.0	$ 11.0
Intrinsic value of stock options vested		8.0	8.0
Share-based compensation expenses related to non-vested awards			1.4
Unrecognized compensation cost net of income tax benefit, related to non-vested stock option awards		$ 13.3	$ 13.3
Weighted average fair value of options granted (split adjusted)			$ 5.58		$ 7.10
Unrecognized compensation cost weighted-average remaining contractual life			7 years 9 months 18 days
2006 Stock Option and Performance Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for grants under the plan		13,288,000	13,288,000
2006 Stock Option and Performance Incentive Plan [Member] | Scenario, Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares available for grants under the plan		13,288,000	13,288,000
Increase in number of shares available for grants under the plan			2,000,000
HOMB $2.00 Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted		1,452,000
Target diluted earnings per share			$ 2.00
Restricted Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost net of income tax benefit, related to non-vested stock option awards		$ 30.2	$ 30.2
Restricted Shares [Member] | HOMB $2.00 Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted		843,500

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Common Stock, Compensation Plans and Other - Summary of Stock Option Transactions under Incentive Plan (Split Adjusted) (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2018 $ / shares shares	Dec. 31, 2017 $ / shares shares
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Outstanding Shares, beginning of year | shares	2,274,000	2,397,000
Granted Shares | shares	1,576,000	80,000
Forfeited/Expired Shares | shares	(37,000)
Exercised Shares | shares	(177,000)	(203,000)
Outstanding, end of period | shares	3,636,000	2,274,000
Exercisable, end of period | shares	1,171,000	1,016,000
Outstanding Weighted Average Exercisable Price, beginning of year | $ / shares	$ 16.23	$ 15.19
Weighted Average Exercisable Price, Granted | $ / shares	23.24	25.96
Weighted Average Exercisable Price, Forfeited/Expired | $ / shares	22.30
Weighted Average Exercisable Price, Exercised | $ / shares	9.42	7.82
Outstanding, end of period | $ / shares	19.54	16.23
Exercisable, end of period | $ / shares	$ 15.10	$ 13.55

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Common Stock, Compensation Plans and Other - Summary of Stock Options on Valuation Assumptions (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract]
Expected dividend yield	2.05%	1.39%
Expected stock price volatility	25.59%	28.47%
Risk-free interest rate	2.82%	2.06%
Expected life of options	6 years 6 months	6 years 6 months

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Common Stock, Compensation Plans and Other - Summary of Currently Outstanding and Exercisable Options (Split Adjusted) (Detail)	9 Months Ended
	Sep. 30, 2018 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding Shares | shares	3,636,000
Options Exercisable Shares | shares	1,171,000
Exercise Prices Range $2.10 to $2.66 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit	$ 2.10
Exercise Prices, Upper Range Limit	$ 2.66
Options Outstanding Shares | shares	12,000
Options Exercisable Shares | shares	12,000
Options Outstanding Weighted- Average Remaining Contractual Life (in years)	8 months 23 days
Options outstanding Weighted- Average Exercise Price	$ 2.60
Options Exercisable Weighted- Average Exercise Price	2.60
Exercise Prices Range $5.68 to $6.56 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit	5.68
Exercise Prices, Upper Range Limit	$ 6.56
Options Outstanding Shares | shares	89,000
Options Exercisable Shares | shares	89,000
Options Outstanding Weighted- Average Remaining Contractual Life (in years)	3 years 2 months 19 days
Options outstanding Weighted- Average Exercise Price	$ 6.54
Options Exercisable Weighted- Average Exercise Price	6.54
Exercise Prices Range $8.62 to $9.54 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit	8.62
Exercise Prices, Upper Range Limit	$ 9.54
Options Outstanding Shares | shares	259,000
Options Exercisable Shares | shares	259,000
Options Outstanding Weighted- Average Remaining Contractual Life (in years)	4 years 4 months 28 days
Options outstanding Weighted- Average Exercise Price	$ 9.04
Options Exercisable Weighted- Average Exercise Price	9.04
Exercise Prices Range $14.71 to $16.86 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit	14.71
Exercise Prices, Upper Range Limit	$ 16.86
Options Outstanding Shares | shares	252,000
Options Exercisable Shares | shares	168,000
Options Outstanding Weighted- Average Remaining Contractual Life (in years)	6 years 7 days
Options outstanding Weighted- Average Exercise Price	$ 15.97
Options Exercisable Weighted- Average Exercise Price	16.05
Exercise Prices Range $17.12 to $17.40 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit	17.12
Exercise Prices, Upper Range Limit	$ 17.40
Options Outstanding Shares | shares	195,000
Options Exercisable Shares | shares	118,000
Options Outstanding Weighted- Average Remaining Contractual Life (in years)	6 years 1 month 24 days
Options outstanding Weighted- Average Exercise Price	$ 17.20
Options Exercisable Weighted- Average Exercise Price	17.22
Exercise Price 18.46 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit	$ 18.46
Exercise Prices Range $18.46 to $18.46 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding Shares | shares	1,010,000
Options Exercisable Shares | shares	433,000
Options Outstanding Weighted- Average Remaining Contractual Life (in years)	6 years 10 months 24 days
Options outstanding Weighted- Average Exercise Price	$ 18.46
Options Exercisable Weighted- Average Exercise Price	18.46
Exercise Prices Range $20.16 to $20.58 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit	20.16
Exercise Prices, Upper Range Limit	$ 20.58
Options Outstanding Shares | shares	68,000
Options Exercisable Shares | shares	28,000
Options Outstanding Weighted- Average Remaining Contractual Life (in years)	7 years 7 days
Options outstanding Weighted- Average Exercise Price	$ 20.41
Options Exercisable Weighted- Average Exercise Price	20.34
Exercise Prices Range $21.25 to $22.22 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit	21.25
Exercise Prices, Upper Range Limit	$ 22.22
Options Outstanding Shares | shares	230,000
Options Exercisable Shares | shares	48,000
Options Outstanding Weighted- Average Remaining Contractual Life (in years)	8 years 6 months 3 days
Options outstanding Weighted- Average Exercise Price	$ 21.71
Options Exercisable Weighted- Average Exercise Price	21.25
Exercise Price 25.96 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit	25.96
Exercise Prices Range $22.70 to $23.51 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices, Lower Range Limit	22.70
Exercise Prices, Upper Range Limit	$ 23.51
Options Outstanding Shares | shares	1,441,000
Options Outstanding Weighted- Average Remaining Contractual Life (in years)	9 years 9 months 21 days
Options outstanding Weighted- Average Exercise Price	$ 23.32
Exercise Prices Range $25.96 to $25.96 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options Outstanding Shares | shares	80,000
Options Exercisable Shares | shares	16,000
Options Outstanding Weighted- Average Remaining Contractual Life (in years)	8 years 6 months 21 days
Options outstanding Weighted- Average Exercise Price	$ 25.96
Options Exercisable Weighted- Average Exercise Price	$ 25.96

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Common Stock, Compensation Plans and Other - Summary of Company's Restricted Stock Issued and Outstanding (Detail) - USD ($) shares in Thousands, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Beginning of year	1,145	958
Issued	1,005	232
Vested	(229)	(45)
Forfeited	(49)
End of period	1,872	1,145
Amount of expense for nine months and twelve months ended, respectively	$ 5,153	$ 5,237

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Non-Interest Expense - Components of Non-Interest Expense (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Noninterest Expense [Abstract]
Salaries and employee benefits	$ 37,825	$ 28,510	$ 107,315	$ 83,965
Occupancy and equipment	8,148	7,887	25,650	21,602
Data processing expense	3,461	2,853	10,786	8,439
Other operating expenses:
Advertising	1,154	795	3,258	2,305
Merger and acquisition expenses		18,227		25,743
Amortization of intangibles	1,617	906	4,867	2,576	$ 1,631
Electronic banking expense	1,947	1,712	5,653	4,885
Directors' fees	314	309	962	946
Due from bank service charges	253	472	714	1,348
FDIC and state assessment	2,293	1,293	6,689	3,763
Insurance	762	577	2,363	1,698
Legal and accounting	761	698	2,397	1,799
Other professional fees	1,748	1,436	4,988	3,822
Operating supplies	510	432	1,712	1,376
Postage	311	280	978	861
Telephone	337	305	1,081	1,027
Other expense	4,682	4,154	13,318	10,835
Total other operating expenses	16,689	31,596	48,980	62,984
Total non-interest expense	$ 66,123	$ 70,846	$ 192,731	$ 176,990

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Significant Estimates and Concentrations of Credit Risks - Additional Information (Detail)	9 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2017
Loans Receivable [Member] | Geographic Concentration [Member] | South Alabama, Arkansas, Florida and New York City [Member]
Commitment And Contingencies [Line Items]
Concentration percentage	89.10%
Loans Receivable [Member] | Commercial Real Estate [Member] | Credit Concentration [Member]
Commitment And Contingencies [Line Items]
Concentration percentage	58.30%	61.80%
Loans Receivable [Member] | Residential Real Estate [Member] | Credit Concentration [Member]
Commitment And Contingencies [Line Items]
Concentration percentage	23.90%	23.30%
Total Stockholders' Equity [Member] | Commercial Real Estate [Member] | Credit Concentration [Member]
Commitment And Contingencies [Line Items]
Concentration percentage	269.50%	289.60%
Total Stockholders' Equity [Member] | Residential Real Estate [Member] | Credit Concentration [Member]
Commitment And Contingencies [Line Items]
Concentration percentage	110.70%	109.40%
Residential Real Estate Loans [Member] | Geographic Concentration [Member] | South Alabama, Arkansas, Florida and New York City [Member]
Commitment And Contingencies [Line Items]
Concentration percentage	91.10%

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Commitments and Contingencies - Additional Information (Detail) - USD ($)	Sep. 30, 2018	Dec. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments to extend credit outstanding	$ 2,250,000,000	$ 2,380,000,000
Maximum amount of future payments by the company	$ 55,000,000	$ 70,500,000

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Regulatory Matters - Additional Information (Detail) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2018	Jan. 01, 2019	Jan. 01, 2017	Jan. 01, 2016	Jul. 31, 2013
Regulatory Matters [Line Items]
Percentage of retained earnings plus current year earnings to be paid as maximum dividend	75.00%
Requested dividend by the company from its subsidiary	$ 155.5
Dividend equal to percentage of banking subsidiary's earnings	63.00%
Basel III [Member]
Regulatory Matters [Line Items]
Consolidated risk weighted asset					$ 500.0
Capital conservation buffer, percentage				0.625%
Increase in capital conservation buffer			0.625%
Capital conservation buffer phase in period start date	Jan. 01, 2016
Capital conservation buffer phase in period end date	Jan. 01, 2019
Basel III [Member] | Scenario, Forecast [Member]
Regulatory Matters [Line Items]
Capital requirement, Ratio		2.50%
Criteria 2 [Member] | Basel III [Member]
Regulatory Matters [Line Items]
Risk-based capital ratio	15.73%
Common equity Tier 1 risk-based capital ratio	6.50%
Tier 1 leverage capital ratio	5.00%
Tier 1 risk-based capital ratio	8.00%
Total risk-based capital ratio	10.00%
Common equity Tier 1 risk-based capital ratio	11.65%
Tier 1 leverage capital ratio	10.38%
Tier 1 risk-based capital ratio	12.25%
Criteria 1 [Member] | Basel III [Member]
Regulatory Matters [Line Items]
Tier 1 leverage capital ratio	4.00%
Tier 1 risk-based capital ratio	4.50%
Risk-based capital ratio	6.00%
Risk-based capital ratio	8.00%

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Additional Cash Flow Information - Additional Information (Detail) - USD ($) $ in Thousands	Jun. 30, 2018	Sep. 26, 2017	Feb. 28, 2017	Feb. 23, 2017
Giant Holdings, Inc. [Member]
Supplemental Cash Flow Information [Line Items]
Business combination, common stock issued, shares				2,738,038
Business combination, common stock issued, value				$ 77,500
Business combination consideration paid in cash				18,500
Business combination, recognized identifiable assets acquired, Total Assets				398,100
Business combination, recognized identifiable assets acquired, cash and cash equivalents				41,019
Assets acquired and liabilities assumed net				345,043
Cash paid for acquisition				$ 96,015
The Bank of Commerce [Member]
Supplemental Cash Flow Information [Line Items]
Business combination, recognized identifiable assets acquired, Total Assets			$ 178,093
Business combination, recognized identifiable assets acquired, cash and cash equivalents			4,610
Assets acquired and liabilities assumed net			170,111
Equity issued			0
Cash paid for acquisition			4,175
Bargain purchase gain			$ 3,807
Stonegate Bank [Member]
Supplemental Cash Flow Information [Line Items]
Business combination, common stock issued, shares		30,863,658
Business combination, common stock issued, value		$ 742,300
Business combination consideration paid in cash		50,100
Business combination, recognized identifiable assets acquired, Total Assets		2,887,523
Business combination, recognized identifiable assets acquired, cash and cash equivalents		100,958
Assets acquired and liabilities assumed net		2,602,161
Cash paid for acquisition		$ 792,370
Shore Premier Finance [Member]
Supplemental Cash Flow Information [Line Items]
Business combination, common stock issued, shares	1,250,000
Business combination, common stock issued, value	$ 28,200
Business combination, recognized identifiable assets acquired, Total Assets	377,000
Assets acquired and liabilities assumed net	1,900
Cash paid for acquisition	377,400
Business combination, recognized identifiable liabilities assumed, Loans	$ 376,200

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Additional Cash Flow Information - Summary of Additional Cash Flow Information (Detail) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Additional Cash Flow Elements and Supplemental Cash Flow Information [Abstract]
Interest paid	$ 80,057	$ 34,573
Income taxes paid	47,682	117,025
Assets acquired by foreclosure	$ 10,098	$ 9,255

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Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Carrying value of foreclosed assets held for sale	$ 0		$ 0
Fair Value, Level 3 Inputs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value of loans with specific allocated losses	77,500,000		77,500,000		$ 72,500,000
Accrued interest receivable reversed	164,000	$ 314,000	728,000	$ 523,000
Fair value of foreclosed assets held for sale	$ 13,500,000		$ 13,500,000		$ 18,900,000
Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of Collateral discount			20.00%
Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Percentage of Collateral discount			30.00%

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Financial Instruments - Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2018	Dec. 31, 2017
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Federal funds sold	$ 500	$ 24,109
Investment securities - held-to-maturity	199,266	224,756
Carrying Amount [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	532,057	635,933
Federal funds sold	500	24,109
Accrued interest receivable	48,909	45,708
Demand and non-interest-bearing	2,482,857	2,385,252
Savings and interest-bearing transaction accounts	6,420,951	6,476,819
Securities sold under agreements to repurchase	142,146	147,789
Accrued interest payable	12,383	5,583
Carrying Amount [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - held-to-maturity	199,266	224,756
FHLB and other borrowed funds	1,363,851	1,299,188
Carrying Amount [Member] | Fair Value, Level 3 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans receivable, net of impaired loans and allowance	10,645,129	10,148,470
Time deposits	1,720,930	1,526,431
Subordinated debentures	368,596	368,031
Fair Value [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and cash equivalents	532,057	635,933
Federal funds sold	500	24,109
Accrued interest receivable	48,909	45,708
Demand and non-interest-bearing	2,482,857	2,385,252
Savings and interest-bearing transaction accounts	6,420,951	6,476,819
Securities sold under agreements to repurchase	142,146	147,789
Accrued interest payable	12,383	5,583
Fair Value [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Investment securities - held-to-maturity	198,552	227,539
FHLB and other borrowed funds	1,291,287	1,299,961
Fair Value [Member] | Fair Value, Level 3 Inputs [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Loans receivable, net of impaired loans and allowance	10,429,379	10,055,901
Time deposits	1,696,005	1,514,670
Subordinated debentures	$ 374,338	$ 379,146

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Recent Accounting Pronouncements - Additional Information (Detail) - USD ($)		3 Months Ended		9 Months Ended		12 Months Ended
	Jan. 01, 2018	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Sep. 30, 2017	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative-effect adjustment to retained earnings	$ 990,000
Federal income tax rate		21.00%	35.00%	21.00%	35.00%	35.00%
Accounting Standards Update 2018-02 [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stranded tax effects within other comprehensive income				$ 534,000