Loans and Allowance for Loan Losses

The following is a summary of current, accruing past due, and non-accrual loans by portfolio class as of June 30, 2012 and December 31, 2011.



Current, Accruing Past Due, and Non-accrual Loans (1)
	June 30, 2012
(in thousands)	Current		Accruing 30-89 Days Past Due	Accruing 90 Days or Greater Past Due	Total Accruing Past Due	Non-accrual	Total
Investment properties	$	4,320,314	8,990	98	9,088	87,208	4,416,610
1-4 family properties	1,319,628		11,174	324	11,498	152,698	1,483,824
Land acquisition	766,057		4,149	116	4,265	213,521	983,843
Total commercial real estate	6,405,999		24,313	538	24,851	453,427	6,884,277
Commercial and industrial	8,635,844		28,845	1,607	30,452	218,337	8,884,633
Home equity lines	1,570,844		8,787	97	8,884	24,177	1,603,905
Consumer mortgages	1,313,575		16,908	1,649	18,557	51,783	1,383,915
Credit cards	258,289		2,288	1,825	4,113	—	262,402
Other retail loans	661,771		4,958	147	5,105	7,437	674,313
Total retail	3,804,479		32,941	3,718	36,659	83,397	3,924,535
Total loans	$	18,846,322	86,099	5,863	91,962	755,161	19,693,445	⁽²⁾

	December 31, 2011
(in thousands)	Current		Accruing 30-89 Days Past Due	Accruing 90 Days or Greater Past Due	Total Accruing Past Due	Non-accrual	Total
Investment properties	$	4,450,627	10,866	54	10,920	95,766	4,557,313
1-4 family properties	1,396,778		23,480	642	24,122	197,584	1,618,484
Land acquisition	855,021		5,299	350	5,649	234,151	1,094,821
Total commercial real estate	6,702,426		39,645	1,046	40,691	527,501	7,270,618
Commercial and industrial	8,618,813		49,826	5,035	54,861	267,600	8,941,274
Home equity lines	1,581,469		12,893	664	13,557	24,559	1,619,585
Consumer mortgages	1,326,411		23,213	5,130	28,343	56,995	1,411,749
Credit cards	267,511		3,113	2,474	5,587	—	273,098
Other retail loans	562,706		6,232	171	6,403	6,366	575,475
Total retail	3,738,097		45,451	8,439	53,890	87,920	3,879,907
Total loans	$	19,059,336	134,922	14,520	149,442	883,021	20,091,799	⁽³⁾

⁽¹⁾ Loan balances in each category expressed as a component of total loans, excluding deferred fees and costs.

⁽²⁾Total excludes $13.3 million in net deferred fees and costs

⁽³⁾Total excludes $12.0 million in net deferred fees and costs

A substantial portion of the loan portfolio is secured by real estate in markets located throughout Georgia, Alabama, Tennessee, South Carolina, and Florida. Accordingly, the ultimate collectability of a substantial portion of the loan portfolio is susceptible to changes in market conditions in these areas.

The credit quality of the loan portfolio is summarized no less frequently than quarterly using the standard asset classification system utilized by the federal banking agencies. These classifications are divided into three groups – Not Classified (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows:

Pass - loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner.

Special Mention - loans which have potential weaknesses that deserve management's close attention. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.

Substandard - loans which are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - loans which have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values.

Loss - loans which are considered by management to be uncollectible and of such little value that its continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off is not warranted.

In the following tables, retail loans are classified as Pass except when they reach 90 days past due, or are downgraded to Substandard. Upon reaching 120 days past due, retail loans are generally downgraded to Loss and charged off, in accordance with the FFIEC Uniform Retail Credit Classification and Account Management Policy.



Loan Portfolio Credit Exposure by Risk Grade (4)
	June 30, 2012
(in thousands)	Pass		Special Mention	Substandard⁽¹⁾	Doubtful⁽²⁾	Loss⁽²⁾			Total
Investment properties	$	3,506,978	563,124	335,175	11,333	—			4,416,610
1-4 family properties	945,776		235,318	289,345	13,385	—			1,483,824
Land acquisition	464,484		118,489	388,775	12,095	—			983,843
Total commercial real estate	4,917,238		916,931	1,013,295	36,813	—			6,884,277
Commercial and industrial	7,480,129		734,989	648,594	20,857	64	⁽³	⁾	8,884,633
Home equity lines	1,566,529		—	35,841	—	1,535	⁽³	⁾	1,603,905
Consumer mortgages	1,334,087		—	49,132	—	696	⁽³	⁾	1,383,915
Credit cards	260,576		—	621	—	1,205	⁽³	⁾	262,402
Other retail loans	660,408		—	12,598	—	1,307	⁽³	⁾	674,313
Total retail	3,821,600		—	98,192	—	4,743			3,924,535
Total loans	$	16,218,967	1,651,920	1,760,081	57,670	4,807			19,693,445	⁽⁵	⁾

	December 31, 2011
(in thousands)	Pass		Special Mention	Substandard⁽¹⁾	Doubtful⁽²⁾	Loss⁽²⁾			Total
Investment properties	$	3,443,363	778,009	328,402	7,539	—			4,557,313
1-4 family properties	977,083		269,152	361,210	11,039	—			1,618,484
Land acquisition	500,359		132,799	456,010	5,653	—			1,094,821
Total commercial real estate	4,920,805		1,179,960	1,145,622	24,231	—			7,270,618
Commercial and industrial	7,265,761		909,255	754,934	11,324	—			8,941,274
Home equity lines	1,578,938		—	39,811	—	836	⁽³	⁾	1,619,585
Consumer mortgages	1,344,648		—	66,478	—	623	⁽³	⁾	1,411,749
Credit cards	270,624		—	948	—	1,526	⁽³	⁾	273,098
Other retail loans	562,623		—	12,349	—	503	⁽³	⁾	575,475
Total retail	3,756,833		—	119,586	—	3,488			3,879,907
Total loans	$	15,943,399	2,089,215	2,020,142	35,555	3,488			20,091,799	₍₆	₎

⁽¹⁾ Includes $692.7 million and $844.0 million of non-accrual substandard loans at June 30, 2012 and December 31, 2011, respectively.

⁽²⁾ The loans within these risk grades are on non-accrual status.

⁽³⁾ Represent amounts that were 120 days past due. These credits are downgraded to the loss category with an allowance for loan losses equal to the full loan amount and are charged off in the subsequent quarter.

⁽⁴⁾ Loan balances in each category expressed as a component of total loans, excluding deferred fees and costs.

⁽⁵⁾Total excludes $13.3 million in net deferred fees and costs

⁽⁶⁾Total excludes $12.0 million in net deferred fees and costs

The following table details the changes in the allowance for loan losses by loan segment for the six months ended June 30, 2012 and 2011.



Allowance for Loan Losses and Recorded Investment in Loans
	As Of and For The Six Months Ended June 30, 2012
(in thousands)	Commercial Real Estate			Commercial & Industrial		Retail		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	249,094		184,888		54,514		47,998		536,494
Charge-offs	(112,919		)	(75,240	)	(27,819	)	—		(215,978	)
Recoveries	10,611			7,551		4,376		—		22,538
Provision for loan losses	63,422			36,026		20,821		(9,998	)	110,271
Ending balance	$	210,208		153,225		51,892		38,000		453,325
Ending balance: individually evaluated for impairment	$	57,474		36,623		852		—		94,949
Ending balance: collectively evaluated for impairment	$	152,734		116,602		51,040		38,000		358,376
Loans:
Ending balance: total loans	$	6,884,277		8,884,633		3,924,535		—		19,693,445		⁽¹	⁾
Ending balance: individually evaluated for impairment	$	791,924		365,487		60,083		—		1,217,494
Ending balance: collectively evaluated for impairment	$	6,092,353		8,519,146		3,864,452		—		18,475,951

	As Of and For The Six Months Ended June 30, 2011
(in thousands)	Commercial Real Estate			Commercial & Industrial		Retail		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	353,923		222,058		43,478		84,088		703,547
Charge-offs	(214,328		)	(104,275	)	(43,814	)	—		(362,417	)
Recoveries	15,415			7,570		5,381		—		28,366
Provision for loan losses	190,347			71,938		35,745		(36,125	)	261,905
Ending balance	$	345,357		197,291		40,790		47,963		631,401
Ending balance: individually evaluated for impairment	$	62,631		29,842		447		—		92,920
Ending balance: collectively evaluated for impairment	$	282,726		167,449		40,343		47,963		538,481
Loans:
Ending balance: total loans	$	7,795,352		8,846,592		3,871,653		—		20,513,597		⁽²	⁾
Ending balance: individually evaluated for impairment	$	849,172		302,309		32,358		—		1,183,839
Ending balance: collectively evaluated for impairment	$	6,946,180		8,544,283		3,839,295		—		19,329,758

⁽¹⁾Total excludes $13.3 million in net deferred fees and costs

⁽²⁾Total excludes $8.8 million in net deferred fees and costs

The following table details the changes in the allowance for loan losses by loan segment for the three months ended June 30, 2012 and 2011.



Allowance for Loan Losses and Recorded Investment in Loans
	As Of and For The Three Months Ended June 30, 2012
(in thousands)	Commercial Real Estate			Commercial & Industrial		Retail		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	239,974		178,200		51,620		38,000		507,794
Charge-offs	(60,457		)	(37,814	)	(12,218	)	—		(110,489	)
Recoveries	6,106			3,929		1,763		—		11,798
Provision for loan losses	24,585			8,910		10,727		—		44,222
Ending balance	$	210,208		153,225		51,892		38,000		453,325
Ending balance: individually evaluated for impairment	$	57,474		36,623		852		—		94,949
Ending balance: collectively evaluated for impairment	$	152,734		116,602		51,040		38,000		358,376
Loans:
Ending balance: total loans	$	6,884,277		8,884,633		3,924,535		—		19,693,445		⁽¹	⁾
Ending balance: individually evaluated for impairment	$	791,924		365,487		60,083		—		1,217,494
Ending balance: collectively evaluated for impairment	$	6,092,353		8,519,146		3,864,452		—		18,475,951

	As Of and For The Three Months Ended June 30, 2011
(in thousands)	Commercial Real Estate			Commercial & Industrial		Retail		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	337,130		216,363		43,042		81,891		678,426
Charge-offs	(99,215		)	(61,874	)	(20,553	)	—		(181,642	)
Recoveries	8,462			3,499		2,497		—		14,458
Provision for loan losses	98,980			39,303		15,804		(33,928	)	120,159
Ending balance	$	345,357		197,291		40,790		47,963		631,401
Ending balance: individually evaluated for impairment	$	62,631		29,842		447		—		92,920
Ending balance: collectively evaluated for impairment	$	282,726		167,449		40,343		47,963		538,481
Loans:
Ending balance: total loans	$	7,795,352		8,846,592		3,871,653		—		20,513,597		⁽²⁾
Ending balance: individually evaluated for impairment	$	849,172		302,309		32,358		—		1,183,839
Ending balance: collectively evaluated for impairment	$	6,946,180		8,544,283		3,839,295		—		19,329,758

⁽¹⁾Total excludes $13.3 million in net deferred fees and costs

⁽²⁾Total excludes $8.8 million in net deferred fees and costs

The tables below summarize impaired loans (including accruing TDRs) as of June 30, 2012 and December 31, 2011.



Impaired Loans (including accruing TDRs)
	June 30, 2012				Six Months Ended June 30, 2012		Three Months Ended June 30, 2012
(in thousands)	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized	Average Recorded Investment	Interest Income Recognized
With no related allowance recorded
Investment properties	$	37,114	69,998	—	49,786	—	45,404	—
1-4 family properties	108,315		240,896	—	118,010	—	113,371	—
Land acquisition	188,801		298,465	—	192,873	—	191,222	—
Total commercial real estate	334,230		609,359	—	360,669	—	349,997	—
Commercial and industrial	83,212		142,072	—	71,641	—	76,212	—
Home equity lines	3,420		4,553	—	3,721	—	3,734	—
Consumer mortgages	3,255		4,878	—	4,420	—	3,353	—
Other retail loans	3		3	—	247	—	—	—
Total retail	6,678		9,434	—	8,388	—	7,087	—
Total	$	424,120	760,865	—	440,698	—	433,296	—
With allowance recorded
Investment properties	$	250,580	251,099	31,154	223,545	3,292	233,726	1,387
1-4 family properties	135,915		136,356	14,388	152,073	2,493	146,377	1,228
Land acquisition	71,199		72,723	11,932	94,713	1,026	86,177	405
Total commercial real estate	457,694		460,178	57,474	470,331	6,811	466,280	3,020
Commercial and industrial	282,275		286,077	36,623	313,204	4,158	305,251	1,941
Home equity lines	6,769		6,769	76	7,054	118	6,827	62
Consumer mortgages	41,160		41,160	683	31,912	464	33,712	195
Other retail loans	5,476		5,476	93	3,100	75	3,811	61
Total retail	53,405		53,405	852	42,066	657	44,350	318
Total	$	793,374	799,660	94,949	825,601	11,626	815,881	5,279
Total
Investment properties	$	287,694	321,097	31,154	273,331	3,292	279,130	1,387
1-4 family properties	244,230		377,252	14,388	270,083	2,493	259,748	1,228
Land acquisition	260,000		371,188	11,932	287,586	1,026	277,399	405
Total commercial real estate	791,924		1,069,537	57,474	831,000	6,811	816,277	3,020
Commercial and industrial	365,487		428,149	36,623	384,845	4,158	381,463	1,941
Home equity lines	10,189		11,322	76	10,775	118	10,561	62
Consumer mortgages	44,415		46,038	683	36,332	464	37,065	195
Other retail loans	5,479		5,479	93	3,347	75	3,811	61
Total retail	60,083		62,839	852	50,454	657	51,437	318
Total impaired loans	$	1,217,494	1,560,525	94,949	1,266,299	11,626	1,249,177	5,279



Impaired Loans (including accruing TDRs)	December 31, 2011				Year Ended December 31, 2011
(in thousands)	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
With no related allowance recorded
Investment properties	$	59,930	96,238	—	67,324	—
1-4 family properties	118,756		274,959	—	158,763	—
Land acquisition	196,823		295,562	—	174,590	—
Total commercial real estate	375,509		666,759	—	400,677	—
Commercial and industrial	65,357		117,468	—	74,995	—
Home equity lines	3,948		5,394	—	4,450	—
Consumer mortgages	4,970		6,293	—	3,907	—
Other retail loans	736		738	—	68	—
Total retail	9,654		12,425	—	8,425	—
Total	$	450,520	796,652	—	484,097	—
With allowance recorded
Investment properties	$	227,045	227,510	23,384	232,717	6,773
1-4 family properties	164,756		168,315	23,499	121,107	2,859
Land acquisition	102,847		118,868	17,564	97,054	2,136
Total commercial real estate	494,648		514,693	64,447	450,878	11,768
Commercial and industrial	318,942		324,623	42,596	244,801	5,888
Home equity lines	6,995		6,995	93	2,112	17
Consumer mortgages	34,766		34,804	2,306	20,331	660
Other retail loans	1,701		1,701	42	6,399	31
Total retail	43,462		43,500	2,441	28,842	708
Total	$	857,052	882,816	109,484	724,521	18,364
Total
Investment properties	$	286,975	323,748	23,384	300,041	6,773
1-4 family properties	283,512		443,274	23,499	279,870	2,859
Land acquisition	299,670		414,430	17,564	271,644	2,136
Total commercial real estate	870,157		1,181,452	64,447	851,555	11,768
Commercial and industrial	384,299		442,091	42,596	319,796	5,888
Home equity lines	10,943		12,389	93	6,562	17
Consumer mortgages	39,736		41,097	2,306	24,238	660
Other retail loans	2,437		2,439	42	6,467	31
Total retail	53,116		55,925	2,441	37,267	708
Total impaired loans	$	1,307,572	1,679,468	109,484	1,208,618	18,364

The following tables represent loans modified or renewed during the six and three months ended June 30, 2012 and 2011 that were reported as accruing or non-accruing TDRs as of June 30, 2012 and June 30, 2011, respectively.



	Accruing TDRs With Modifications or Renewals Completed During the
	Six Months Ended June 30, 2012				Three Months Ended June 30, 2012
(in thousands, except contract data)	Number of Contracts	Pre-modification Recorded Balance		Post-modification Recorded Balance	Number of Contracts	Pre-modification Recorded Balance		Post-modification Recorded Balance
Investment properties	37	$	78,348	78,348	23	$	63,674	63,674
1-4 family properties	56	34,142		33,722	29	18,027		17,607
Land acquisition	26	20,612		20,612	10	6,089		6,089
Total commercial real estate	119	133,102		132,682	62	87,790		87,370
Commercial and industrial	91	60,435		60,435	53	35,716		35,716
Home equity lines	3	364		364	2	34		34
Consumer mortgages	188	18,179		18,179	168	15,890		15,890
Credit cards	—	—		—	—	—		—
Other retail loans	50	4,304		4,304	39	2,583		2,583
Total retail	241	22,847		22,847	209	18,507		18,507
Total loans	451	$	216,384	215,964	324	$	142,013	141,593



	Accruing TDRs With Modifications or Renewals Completed During the
	Six Months Ended June 30, 2011				Three Months Ended June 30, 2011
(in thousands, except contract data)	Number of Contracts	Pre-modification Recorded Balance		Post-modification Recorded Balance	Number of Contracts	Pre-modification Recorded Balance		Post-modification Recorded Balance
Investment properties	30	$	88,991	88,991	12	$	22,456	22,456
1-4 family properties	37	54,887		54,887	24	15,664		15,664
Land acquisition	12	21,824		21,824	10	19,916		19,916
Total commercial real estate	79	165,702		165,702	46	58,036		58,036
Commercial and industrial	39	58,361		58,320	17	39,100		39,100
Home equity lines	7	279		279	—	—		—
Consumer mortgages	187	22,605		22,605	48	6,739		6,739
Credit cards	—	—		—	—	—		—
Other retail loans	18	952		952	3	200		200
Total retail	212	23,836		23,836	51	6,939		6,939
Total loans	330	$	247,899	247,858	114	$	104,075	104,075



	Non-accruing TDRs With Modifications or Renewals Completed During the
	Six Months Ended June 30, 2012				Three Months Ended June 30, 2012
(in thousands, except contract data)	Number of Contracts	Pre-modification Recorded Balance		Post-modification Recorded Balance	Number of Contracts	Pre-modification Recorded Balance		Post-modification Recorded Balance
Investment properties	3	$	6,755	6,755	3	$	6,755	6,755
1-4 family properties	4	6,259		6,229	3	136		136
Land acquisition	12	20,864		16,921	11	20,510		16,609
Total commercial real estate	19	33,878		29,905	17	27,401		23,500
Commercial and industrial	15	12,952		12,202	6	3,020		3,019
Home equity lines	—	—		—	—	—		—
Consumer mortgages	6	1,348		1,304	6	1,348		1,304
Credit cards	—	—		—	—	—		—
Other retail loans	4	348		348	1	26		26
Total retail	10	1,696		1,652	7	1,374		1,330
Total loans	44	$	48,526	43,759	30	$	31,795	27,849



	Non-accruing TDRs With Modifications or Renewals Completed During the
	Six Months Ended June 30, 2011				Three Months Ended June 30, 2011
(in thousands, except contract data)	Number of Contracts	Pre-modification Recorded Balance		Post-modification Recorded Balance	Number of Contracts	Pre-modification Recorded Balance		Post-modification Recorded Balance
Investment properties	3	$	15,146	14,784	1	$	6,500	6,138
1-4 family properties	9	5,995		4,344	4	1,797		1,253
Land acquisition	6	3,078		2,610	4	220		220
Total commercial real estate	18	24,219		21,738	9	8,517		7,611
Commercial and industrial	16	6,445		5,426	5	1,167		1,117
Home equity lines	2	1,875		1,326	1	1,840		1,287
Consumer mortgages	10	1,479		1,425	4	836		836
Credit cards	—	—		—	—	—		—
Other retail loans	—	—		—	—	—		—
Total retail	12	3,354		2,751	5	2,676		2,123
Total loans	46	$	34,018	29,915	19	$	12,360	10,851

Concessions provided in a TDR are primarily in the form of providing a below market interest rate given the borrower's credit risk, a period of time generally less than one year with a reduction of required principal and/or interest payments (e.g., interest only for a period of time), or extension of the maturity of the loan generally for less than one year. Insignificant periods of reduction of principal and/or interest payments, or one time deferrals of 3 months or less, are generally not considered to be financial concessions.

The following tables present TDRs entered into within the previous twelve months that subsequently defaulted during the periods indicated.



	Troubled Debt Restructurings Entered Within the Previous Twelve Months that have Subsequently Defaulted⁽¹⁾ During
	Six Months Ended June 30, 2012⁽²⁾			Three Months Ended June 30, 2012⁽³⁾
(in thousands, except contract data)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Investment properties	4	$	4,166	2	$	1,519
1-4 family properties	7	5,306		6	3,317
Land acquisition	10	26,061		6	10,241
Total commercial real estate	21	35,533		14	15,077
Commercial and industrial	14	11,753		10	5,637
Home equity lines	—	—		—	—
Consumer mortgages	4	1,573		1	1,009
Credit cards	—	—		—	—
Other retail loans	—	—		—	—
Total retail	4	1,573		1	1,009
Total loans	39	$	48,859	25	$	21,723

⁽¹⁾Subsequently defaulted is defined as the earlier of the troubled debt restructuring being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments.

⁽²⁾ For the six months ended June 30, 2012, this represents defaults on loans that were modified between the periods April 1, 2011 and June 30, 2012.

⁽³⁾ For the three months ended June 30, 2012, this represents defaults on loans that were modified between the periods July 1, 2011 and June 30, 2012.



	Troubled Debt Restructurings Entered Within the Previous Twelve Months that have Subsequently Defaulted⁽¹⁾ During
	Six Months Ended June 30, 2011⁽²⁾			Three Months Ended June 30, 2011⁽³⁾
(in thousands, except contract data)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Investment properties	8	$	15,718	2	$	7,968
1-4 family properties	13	17,434		9	13,717
Land acquisition	27	20,672		23	15,181
Total commercial real estate	48	53,824		34	36,866
Commercial and industrial	15	18,293		13	16,556
Home equity lines	3	1,742		3	1,742
Consumer mortgages	2	292		1	261
Credit cards	—	—		—	—
Other retail loans	3	208		3	208
Total retail	8	2,242		7	2,211
Total loans	71	$	74,359	54	$	55,633

⁽²⁾ For the six months ended June 30, 2011, this represents defaults on loans that were modified between the periods April 1, 2010 and June 30, 2011.

⁽³⁾ For the three months ended June 30, 2011, this represents defaults on loans that were modified between the periods July 1, 2010 and June 30, 2011.

If at the time that a loan was designated as a TDR the loan was not already impaired, the measurement of impairment resulting from the TDR designation changes from a general pool-level reserve to a specific loan measurement of impairment in accordance with ASC 310-10-35. Generally, the change in the allowance for loan losses resulting from such TDR designation is not significant. At June 30, 2012, the allowance for loan losses allocated to accruing TDRs totaling $687.4 million was $56.4 million compared to accruing TDRs of $668.5 million with an allocated allowance for loan losses of $60.7 million at December 31, 2011. Nonaccrual non-homogeneous loans (commercial-type impaired loans greater than $1 million) that are designated as TDRs are individually measured for the amount of impairment, if any, both before and after the TDR designation.