Allowance for Loan and Lease Losses

Activity in the allowance for loan and lease losses, ending balances of loans and leases and related allowance by class of loans is summarized as follows:



	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Lease financing			Other			Residential mortgage			Revolving mortgage			Construction and land development - non- commercial			Consumer			Non- specific			Total
	(dollars in thousands)
Originated Loans
Allowance for loan and lease losses:
Six months ended June 30, 2013
Balance at January 1	$	6,031		$	80,229		$	2,059		$	14,050		$	3,521		$	1,175		$	3,836		$	25,185		$	1,721		$	25,389		$	15,850		$	179,046
Reclassification⁽¹⁾	5,141			27,421			(815		)	7,551			(253		)	(1,288		)	5,717			(9,838		)	(478		)	(10,018		)	(15,772		)	7,368
Charge-offs	(1,540		)	(869		)	(72		)	(2,246		)	(92		)	(6		)	(1,268		)	(3,066		)	(245		)	(5,157		)	—			(14,561		)
Recoveries	638			499			36			657			19			3			100			378			79			1,273			—			3,682
Provision	1,462			(2,438		)	(151		)	(703		)	1,797			476			1,611			2,338			(357		)	2,290			(78		)	6,247
Balance at June 30	$	11,732		$	104,842		$	1,057		$	19,309		$	4,992		$	360		$	9,996		$	14,997		$	720		$	13,777		$	—		$	181,782
Six months ended June 30, 2012
Balance at January 1	$	5,467		$	67,486		$	2,169		$	23,723		$	3,288		$	1,315		$	8,879		$	27,045		$	1,427		$	25,962		$	14,122		$	180,883
Charge-offs	(9,221		)	(4,020		)	(254		)	(3,046		)	(335		)	(28		)	(2,290		)	(6,271		)	(675		)	(5,285		)	—			(31,425		)
Recoveries	269			1,008			—			437			48			4			312			414			152			929			—			3,573
Provision	8,541			17,099			498			(6,806		)	514			(108		)	738			5,512			911			3,382			1,820			32,101
Balance at June 30	$	5,056		$	81,573		$	2,413		$	14,308		$	3,515		$	1,183		$	7,639		$	26,700		$	1,815		$	24,988		$	15,942		$	185,132
Three months ended June 30, 2013
Balance at April 1	$	4,311		$	82,119		$	1,915		$	13,661		$	3,543		$	1,490		$	3,790		$	24,499		$	1,419		$	24,027		$	15,772		$	176,546
Reclassification⁽¹⁾	5,141			27,421			(815		)	7,551			(253		)	(1,288		)	5,717			(9,838		)	(478		)	(10,018		)	(15,772		)	7,368
Charge-offs	(1,286		)	(213		)	(18		)	(988		)	(92		)	—			(450		)	(878		)	—			(2,569		)	—			(6,494		)
Recoveries	270			491			26			288			19			3			61			307			23			643			—			2,131
Provision	3,296			(4,976		)	(51		)	(1,203		)	1,775			155			878			907			(244		)	1,694			—			2,231
Balance at June 30	$	11,732		$	104,842		$	1,057		$	19,309		$	4,992		$	360		$	9,996		$	14,997		$	720		$	13,777		$	—		$	181,782
Three months ended June 30, 2012
Balance at April 1	$	6,608		$	72,155		$	2,248		$	24,246		$	3,320		$	1,281		$	9,107		$	26,911		$	1,397		$	24,288		$	14,822		$	186,383
Charge-offs	(3,492		)	(1,556		)	(112		)	(1,599		)	(144		)	(28		)	(1,255		)	(3,331		)	—			(2,277		)	—			(13,794		)
Recoveries	228			12			—			187			18			—			269			198			145			497			—			1,554
Provision	1,712			10,962			277			(8,526		)	321			(70		)	(482		)	2,922			273			2,480			1,120			10,989
Balance at June 30	$	5,056		$	81,573		$	2,413		$	14,308		$	3,515		$	1,183		$	7,639		$	26,700		$	1,815		$	24,988		$	15,942		$	185,132

⁽¹⁾ Reclassification results from enhancements to the ALLL calculation during the second quarter of 2013 that resulted in the allocation of $15,772 previously designated as 'non-specific' to other loan classes and the absorption of $7,368 of the reserve for unfunded commitments related to unfunded, revocable loan commitments into the ALLL. Further discussion is contained in Note A.



	Construction and land development - commercial		Commercial mortgage		Other commercial real estate		Commercial and industrial		Lease financing		Other		Residential mortgage		Revolving mortgage		Construction and land development - non-commercial		Consumer		Non- specific		Total
	(dollars in thousands)
Allowance for loan and lease losses:
June 30, 2013
ALLL for loans and leases individually evaluated for impairment	$	977	$	8,687	$	115	$	2,286	$	376	$	—	$	1,073	$	895	$	41	$	132	$	—	$	14,582
ALLL for loans and leases collectively evaluated for impairment	10,755		96,155		942		17,023		4,616		360		8,923		14,102		679		13,645		—		167,200
Total allowance for loan and lease losses	$	11,732	$	104,842	$	1,057	$	19,309	$	4,992	$	360	$	9,996	$	14,997	$	720	$	13,777	$	—	$	181,782
December 31, 2012
ALLL for loans and leases individually evaluated for impairment	$	2,469	$	11,697	$	298	$	2,133	$	202	$	53	$	959	$	1	$	287	$	256	$	—	$	18,355
ALLL for loans and leases collectively evaluated for impairment	3,562		68,532		1,761		11,917		3,319		1,122		2,877		25,184		1,434		25,133		—		144,841
Nonspecific ALLL	—		—		—		—		—		—		—		—		—		—		15,850		15,850
Total allowance for loan and lease losses	$	6,031	$	80,229	$	2,059	$	14,050	$	3,521	$	1,175	$	3,836	$	25,185	$	1,721	$	25,389	$	15,850	$	179,046
June 30, 2012
ALLL for loans and leases individually evaluated for impairment	$	1,621	$	9,745	$	498	$	2,318	$	70	$	—	$	1,451	$	51	$	205	$	253	$	—	$	16,212
ALLL for loans and leases collectively evaluated for impairment	3,435		71,828		1,915		11,990		3,445		1,183		6,188		26,649		1,610		24,735		—		152,978
Nonspecific ALLL	—		—		—		—		—		—		—		—		—		—		15,942		15,942
Total allowance for loan and lease losses	$	5,056	$	81,573	$	2,413	$	14,308	$	3,515	$	1,183	$	7,639	$	26,700	$	1,815	$	24,988	$	15,942	$	185,132



Loans and leases:
June 30, 2013
Loans and leases individually evaluated for impairment	$	8,921	$	127,628	$	2,887	$	12,004	$	724	$	—	$	16,151	$	6,972	$	910	$	1,419	$	—	$	177,616
Loans and leases collectively evaluated for impairment	296,868		6,007,440		173,144		985,500		352,094		172,861		867,869		2,116,842		118,343		386,892		—		11,477,853
Total loan and leases	$	305,789	$	6,135,068	$	176,031	$	997,504	$	352,818	$	172,861	$	884,020	$	2,123,814	$	119,253	$	388,311	$	—	$	11,655,469
December 31, 2012
Loans and leases individually evaluated for impairment	$	17,075	$	133,804	$	3,375	$	22,619	$	804	$	707	$	15,836	$	4,203	$	1,321	$	2,509	$	—	$	202,253
Loans and leases collectively evaluated for impairment	292,115		5,895,631		157,605		1,015,911		329,875		124,974		807,053		2,205,930		130,671		414,097		—		11,373,862
Total loan and leases	$	309,190	$	6,029,435	$	160,980	$	1,038,530	$	330,679	$	125,681	$	822,889	$	2,210,133	$	131,992	$	416,606	$	—	$	11,576,115
June 30, 2012
Loans and leases individually evaluated for impairment	$	28,230	$	139,235	$	4,919	$	18,754	$	354	$	742	$	19,305	$	3,594	$	3,458	$	3,108	$	—	$	221,699
Loans and leases collectively evaluated for impairment	300,921		5,743,881		157,660		970,587		320,349		139,996		789,925		2,264,616		124,268		428,556		—		11,240,759
Total loan and leases	$	329,151	$	5,883,116	$	162,579	$	989,341	$	320,703	$	140,738	$	809,230	$	2,268,210	$	127,726	$	431,664	$	—	$	11,462,458



	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Lease financing			Residential mortgage			Revolving mortgage			Construction and land development - noncommercial			Consumer and other			Total
	(dollars in thousands)
Acquired Loans
Allowance for loan and lease losses:
Six months ended June 30, 2013
Balance at January 1	$	31,186		$	50,275		$	11,234		$	8,897		$	—		$	19,837		$	9,754		$	8,287		$	502		$	139,972
Charge-offs	(5,359		)	(12,081		)	(931		)	(2,257		)	—			(1,115		)	(350		)	(3,218		)	(32		)	(25,343		)
Recoveries	—			—			—			—			—			—			—			—			—			—
Provision	(18,238		)	(4,606		)	(5,707		)	(704		)	—			(1,450		)	(3,373		)	(3,837		)	(180		)	(38,095		)
Balance at June 30	$	7,589		$	33,588		$	4,596		$	5,936		$	—		$	17,272		$	6,031		$	1,232		$	290		$	76,534
Six months ended June 30, 2012
Balance at January 1	$	16,693		$	39,557		$	16,862		$	5,500		$	13		$	5,433		$	77		$	4,652		$	474		$	89,261
Charge-offs	(5,026		)	(15,393		)	(796		)	(6,016		)	—			(2,612		)	—			(9		)	(35		)	(29,887		)
Recoveries	—			—			—			—			—			142			—			—			—			142
Provision	4,316			11,827			(6,872		)	15,240			(13		)	2,612			2,471			(863		)	(437		)	28,281
Balance at June 30	$	15,983		$	35,991		$	9,194		$	14,724		$	—		$	5,575		$	2,548		$	3,780		$	2		$	87,797
Three months ended June 30, 2013
Balance at April 1	$	13,306		$	38,293		$	5,172		$	11,876		$	—		$	17,603		$	7,135		$	2,756		$	332		$	96,473
Charge-offs	(626		)	(2,183		)	—			(1,004		)	—			(386		)	(235		)	—			(32		)	(4,466		)
Recoveries	—			—			—			—			—			—			—			—			—			—
Provision	(5,091		)	(2,522		)	(576		)	(4,936		)	—			55			(869		)	(1,524		)	(10		)	(15,473		)
Balance at June 30	$	7,589		$	33,588		$	4,596		$	5,936		$	—		$	17,272		$	6,031		$	1,232		$	290		$	76,534
Three months ended June 30, 2012
Balance at April 1	$	12,736		$	39,744		$	11,150		$	13,728		$	3		$	4,732		$	1,027		$	2,720		$	277		$	86,117
Charge-offs	(3,639		)	(9,182		)	(796		)	(2,827		)	—			(657		)	—			(9		)	(30		)	(17,140		)
Recoveries	—			—			—			—			—			142			—			—			—			142
Provision	6,886			5,429			(1,160		)	3,823			(3		)	1,358			1,521			1,069			(245		)	18,678
Balance at June 30	$	15,983		$	35,991		$	9,194		$	14,724		$	—		$	5,575		$	2,548		$	3,780		$	2		$	87,797
Allowance for loan and lease losses:
June 30, 2013
ALLL for loans and leases acquired with deteriorated credit quality	$	7,589		$	33,588		$	4,596		$	5,936		$	—		$	17,272		$	6,031		$	1,232		$	290		$	76,534
December 31, 2012
ALLL for loans and leases acquired with deteriorated credit quality	31,186			50,275			11,234			8,897			—			19,837			9,754			8,287			502			139,972
June 30, 2012
ALLL for loans and leases acquired with deteriorated credit quality	15,983			35,991			9,194			14,724			—			5,575			2,548			3,780			2			87,797
Loans and leases:
June 30, 2013
Loans and leases acquired with deteriorated credit quality	160,733			859,038			81,904			37,336			—			256,972			36,153			9,009			2,191			1,443,336
December 31, 2012
Loans and leases acquired with deteriorated credit quality	237,906			1,054,473			107,119			49,463			—			297,926			38,710			20,793			2,845			1,809,235
June 30, 2012
Loans and leases acquired with deteriorated credit quality	272,445			1,142,677			115,787			66,442			—			322,053			37,110			39,294			3,543			1,999,351

The following tables provide information on originated impaired loans and leases, exclusive of loans and leases evaluated collectively as a homogeneous group, including interest income recognized in the period during which the loans and leases were considered impaired.



	With a recorded allowance		With no recorded allowance		Total		Unpaid principal balance		Related allowance recorded
	(dollars in thousands)
June 30, 2013
Impaired originated loans and leases
Construction and land development - commercial	$	8,572	$	349	$	8,921	$	9,921	$	976
Commercial mortgage	71,663		55,965		127,628		129,522		8,687
Other commercial real estate	1,239		1,648		2,887		2,887		115
Commercial and industrial	7,031		4,973		12,004		12,004		2,286
Lease financing	724		—		724		724		376
Residential mortgage	9,129		7,022		16,151		16,531		1,073
Revolving mortgage	4,183		2,790		6,973		6,973		895
Construction and land development - noncommercial	441		469		910		910		41
Consumer	1,418		—		1,418		1,418		132
Total impaired originated loans and leases	$	104,400	$	73,216	$	177,616	$	180,890	$	14,581
December 31, 2012
Impaired originated loans and leases
Construction and land development - commercial	$	5,941	$	10,116	$	16,057	$	31,879	$	2,340
Commercial mortgage	39,648		72,160		111,808		123,964		10,628
Other commercial real estate	1,425		1,823		3,248		3,348		279
Commercial and industrial	7,429		11,371		18,800		9,583		1,949
Lease financing	665		81		746		746		194
Other	—		707		707		707		53
Residential mortgage	9,346		4,240		13,586		13,978		832
Revolving mortgage	1,238		2,965		4,203		4,203		1
Construction and land development - noncommercial	1,162		158		1,320		1,321		287
Consumer	1,609		900		2,509		2,509		256
Total impaired originated loans and leases	$	68,463	$	104,521	$	172,984	$	192,238	$	16,819
June 30, 2012
Impaired originated loans and leases
Construction and land development - commercial	$	8,700	$	18,473	$	27,173	$	44,157	$	1,555
Commercial mortgage	64,016		53,951		117,967		128,526		8,811
Other commercial real estate	1,218		2,491		3,709		3,871		435
Commercial and industrial	5,923		8,004		13,927		7,005		2,070
Lease financing	292		—		292		292		66
Other	—		742		742		742		—
Residential mortgage	13,076		4,844		17,920		18,355		1,380
Revolving mortgage	1,240		2,354		3,594		3,594		51
Construction and land development - noncommercial	1,311		2,147		3,458		3,458		205
Consumer	1,915		1,193		3,108		3,109		253
Total impaired originated loans and leases	$	97,691	$	94,199	$	191,890	$	213,109	$	14,826

At June 30, 2013, acquired loans that have had an adverse change in expected cash flows since the date of acquisition equaled $631,801, for which $76,534 in related allowance for loan losses has been recorded.



	YTD Average Balance		YTD Interest Income Recognized
	(dollars in thousands)
Six months ended June 30, 2013
Originated impaired loans and leases:
Construction and land development - commercial	$	8,899	$	213
Commercial mortgage	103,032		2,838
Other commercial real estate	3,028		82
Commercial and industrial	14,465		406
Lease financing	408		14
Other	—		—
Residential mortgage	15,003		412
Revolving mortgage	6,390		72
Construction and land development - noncommercial	783		25
Consumer	1,611		29
Total originated impaired loans and leases	$	153,619	$	4,091
Three months ended June 30, 2013
Originated impaired loans and leases:
Construction and land development - commercial	$	8,541	$	101
Commercial mortgage	102,356		1,413
Other commercial real estate	2,647		37
Commercial and industrial	10,298		139
Lease financing	531		9
Other	—		—
Residential mortgage	13,855		184
Revolving mortgage	6,976		47
Construction and land development - noncommercial	913		13
Consumer	1,587		25
Total originated impaired loans and leases	$	147,704	$	1,968
Six months ended June 30, 2012
Originated impaired loans and leases:
Construction and land development - commercial	$	27,118	$	283
Commercial mortgage	92,357		1,414
Other commercial real estate	3,140		48
Commercial and industrial	14,135		120
Lease financing	339		4
Other	124		13
Residential mortgage	15,298		234
Revolving mortgage	1,956		20
Construction and land development - noncommercial	3,518		50
Consumer	1,735		7
Total originated impaired loans and leases	$	159,720	$	2,193
Three months ended June 30, 2012
Originated impaired loans and leases:
Construction and land development - commercial	$	26,616	$	249
Commercial mortgage	106,563		1,062
Other commercial real estate	3,268		48
Commercial and industrial	9,644		66
Lease financing	343		3
Other	243		13
Residential mortgage	19,607		154
Revolving mortgage	3,917		20
Construction and land development - noncommercial	2,529		31
Consumer	1,957		6
Total originated impaired loans and leases	$	174,687	$	1,652

Troubled Debt Restructurings

BancShares accounts for certain loan modifications or restructurings as troubled debt restructurings (TDRs). In general, the modification or restructuring of a loan is considered a TDR if, for economic reasons or legal reasons related to a borrower's financial difficulties, a concession is granted to the borrower that creditors would not otherwise consider. Concessions may relate to the contractual interest rate, maturity date, payment structure or other actions. In accordance with GAAP, loans acquired under ASC 310-30 are not initially considered to be TDRs. The following table provides a summary of total TDRs by accrual status.



	June 30, 2013						June 30, 2012
	Accruing		Nonaccruing		Total		Accruing		Nonaccruing		Total
	(dollars in thousands)
Commercial loans
Construction and land development - commercial	$	30,659	$	15,329	$	45,988	$	42,662	$	14,575	$	57,237
Commercial mortgage	135,953		35,433		171,386		138,081		50,831		188,912
Other commercial real estate	8,103		1,260		9,363		5,752		444		6,196
Commercial and industrial	9,290		3,517		12,807		8,222		7,118		15,340
Lease	60		—		60		244		—		244
Total commercial loans	184,065		55,539		239,604		194,961		72,968		267,929
Noncommercial
Residential	27,120		5,820		32,940		24,181		8,365		32,546
Revolving mortgage	2,728		—		2,728		49		—		49
Construction and land development - noncommercial	441		469		910		4,592		—		4,592
Consumer and other	1,419		—		1,419		2,925		—		2,925
Total noncommercial loans	31,708		6,289		37,997		31,747		8,365		40,112
Total loans	$	215,773	$	61,828	$	277,601	$	226,708	$	81,333	$	308,041

Total troubled debt restructurings at June 30, 2013, equaled $277,601, of which $158,494 were acquired and $119,107 were originated. TDRs at December 31, 2012, totaled $333,170, which consisted of $193,207 acquired and $139,963 that were originated. At June 30, 2012, total TDRs were $308,041 of which $158,627 were acquired and $149,411 were originated.

The majority of TDRs are included in the special mention, substandard or doubtful grading categories, which results in more elevated loss expectations when determining the expected cash flows that are used to determine the allowance for loan losses associated with these loans. When a restructured loan subsequently defaults, it is evaluated and downgraded if appropriate. The more severely graded the loan, the lower the estimated expected cash flows and the greater the allowance recorded. Further, TDRs over $500 and graded substandard or lower are evaluated individually for impairment through review of collateral values.

The following tables provide the types of TDRs made during the three months ended June 30, 2013, and 2012, as well as a summary of loans that were modified as a TDR during the 12 months ended June 30, 2013, and 2012 that subsequently defaulted during the three months ended June 30, 2013, and 2012.



	Three months ended June 30, 2013						Three months ended June 30, 2012
	All restructurings			Restructurings with payment default			All restructurings			Restructurings with payment default
	Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end
	(dollars in thousands)
Originated loans
Interest only period provided
Construction and land development - commercial	—	$	—	—	$	—	2	$	316	—	$	—
Commercial mortgage	1	71		—	—		5	3,108		1	109
Other commercial real estate	1	100		—	—		—	—		—	—
Total interest only	2	171		—	—		7	3,424		1	109

Loan term extension
Construction and land development - commercial	—	—		—	—		1	253		—	—
Commercial mortgage	1	242		1	223		17	4,873		2	1,495
Other commercial real estate	—	—		—	—		2	963		—	—
Commercial and industrial	—	—		1	22		3	320		1	71
Residential mortgage	—	—		1	106		2	153		—	—
Construction and land development - noncommercial	—	—		—	—		—	—		—	—
Consumer	1	46		—	—		4	241		—	—
Total loan term extension	2	288		3	351		29	6,803		3	1,566

Below market interest rate
Commercial mortgage	7	2,035		—	—		1	1,453		—	—
Commercial and industrial	3	831		—	—		3	116		—	—
Other commercial real estate	3	753		—	—		—	—		—	—
Residential mortgage	6	885		1	99		7	1,429		1	378
Revolving mortgage	1	99		—	—		1	49		—	—
Construction & land development - noncommercial	2	521		—	—		—	—		—	—
Consumer	—	—		—	—		1	10		—	—
Total below market interest rate	22	5,124		1	99		13	3,057		1	378

Discharged from bankruptcy
Residential mortgage	2	87		—	—		—	—		—	—
Revolving mortgage	9	727		—	—		—	—		—	—
Total discharged from bankruptcy	11	814		—	—		—	—		—	—

Other concession
Commercial mortgage	—	—		—	—		1	775		—	—
Commercial and industrial	—	—		—	—		1	387		—	—
Total other concession	—	—		—	—		2	1,162		—	—
Total originated restructurings	37	$	6,397	4	$	450	51	$	14,446	5	$	2,053



	Three months ended June 30, 2013						Three months ended June 30, 2012
	All restructurings			Restructurings with payment default			All restructurings			Restructurings with payment default
	Number of loans	Recorded investment at period end		Number of loans	Recorded investment at period end		Number of loans	Recorded investment at period end		Number of loans	Recorded investment at period end
	(dollars in thousands)
Acquired loans
Interest only period provided
Construction and land development - commercial	—	$	—	1	$	104	—	$	—	—	$	—
Commercial mortgage	—	$	—	1	$	1,699	1	$	8,752	—	$	—
Commercial and industrial	—	—		—	—		1	971		—	—
Residential mortgage	1	134		—	—		1	100		1	4,508
Total interest only	1	134		2	1,803		3	9,823		1	4,508

Loan term extension
Construction and land development - commercial	—	—		—	—		7	2,468		3	1,502
Commercial mortgage	—	—		—	—		1	1,240		—	—
Commercial and industrial	—	—		—	—		1	23		1	110
Residential mortgage	—	—		—	—		—	—		3	735
Total loan term extension	—	—		—	—		9	3,731		7	2,347

Below market interest rate
Construction and land development - commercial	—	—		—	—		1	74		3	3,670
Commercial mortgage	1	813		—	—		4	2,832		2	3,565
Other commercial real estate	—	—		—	—		2	1,720		—	—
Commercial and industrial	—	—		—	—		1	502		—	—
Residential mortgage	2	997		1	224		3	619		3	1,691
Construction and land development - non-commercial	—	—		—	—		—	—		1	276
Total below market interest rate	3	1,810		1	224		11	5,747		9	9,202
Total acquired restructurings	4	$	1,944	3	$	2,027	23	$	19,301	17	$	16,057

For the three months ended June 30, 2013, the recorded investment in troubled debt restructurings subsequent to modification was not materially impacted by the modification since forgiveness of principal is not a restructuring option frequently used by BancShares.

The following tables provide the types of TDRs made during the six months ended June 30, 2013, and 2012, as well as a summary of loans that were modified as a TDR during the 12 months ended June 30, 2013 and 2012 that subsequently defaulted during the six months ended June 30, 2013 and 2012.



	Six months ended June 30, 2013						Six months ended June 30, 2012
	All restructurings			Restructurings with payment default			All restructurings			Restructurings with payment default
	Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end
	(dollars in thousands)
Originated loans
Interest only period provided
Construction and land development - commercial	—	$	—	—	$	—	2	$	316	—	$	—
Commercial mortgage	8	3,406		—	—		9	3,741		1	109
Other commercial real estate	1	100		—	—		—	—		—	—
Residential mortgage	1	630		—	—		1	341		—	—
Total interest only	10	4,136		—	—		12	4,398		1	109

Loan term extension
Construction and land development - commercial	—	—		—	—		2	7,514		—	—
Commercial mortgage	5	1,972		1	223		35	12,404		5	2,389
Other commercial real estate	—	—		—	—		3	1,345		—	—
Commercial and industrial	1	229		1	22		8	886		1	71
Lease financing	—	—		—	—		3	178		—	—
Residential mortgage	3	51		1	106		5	447		1	164
Construction and land development - noncommercial	—	—		—	—		1	1,701		1	394
Consumer	1	46		—	—		5	1,142		—	—
Total loan term extension	10	2,298		3	351		62	25,617		8	3,018

Below market interest rate
Construction and land development - commercial	1	224		—	—		1	230		—	—
Commercial mortgage	12	5,819		—	—		3	3,376		1	118
Commercial and industrial	4	846		—	—		4	879		—	—
Other commercial real estate	3	753		—	—		—	—		—	—
Residential mortgage	14	1,579		1	99		9	1,858		1	378
Revolving mortgage	1	99		—	—		1	49		—	—
Construction & land development - noncommercial	2	521		—	—		—	—		—	—
Consumer	3	235		—	—		2	12		—	—
Total below market interest rate	40	10,076		1	99		20	6,404		2	496

Discharged from bankruptcy
Residential mortgage	3	352		—	—		—	—		—	—
Revolving mortgage	30	2,383		3	93		—	—		—	—
Total discharged from bankruptcy	33	2,735		3	93		—	—		—	—

Other concession
Commercial mortgage	—	—		—	—		2	943		—	—
Residential mortgage	—	—		—	—		1	387		—	—
Total other concession	—	—		—	—		3	1,330		—	—
Total originated restructurings	93	$	19,245	7	$	543	97	$	37,749	11	$	3,623



	Six months ended June 30, 2013						Six months ended June 30, 2012
	All restructurings			Restructurings with payment default			All restructurings			Restructurings with payment default
	Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end		Number of Loans	Recorded investment at period end
	(dollars in thousands)
Acquired loans
Interest only period provided
Construction and land development - commercial	—	$	—	1	$	104	1	$	135	—	$	—
Commercial mortgage	1	290		2	1,989		1	8,752		—	—
Commercial and industrial	—	—		—	—		1	971		—	—
Residential mortgage	2	177		—	—		1	100		1	4,507
Total interest only	3	467		3	2,093		4	9,958		1	4,507

Loan term extension
Construction and land development - commercial	—	—		—	—		9	4,850		4	3,721
Commercial mortgage	—	—		—	—		2	1,705		—	—
Commercial and industrial	—	—		—	—		1	23		1	110
Residential mortgage	1	199		—	—		1	52		4	908
Total loan term extension	1	199		—	—		13	6,630		9	4,739

Below market interest rate
Construction and land development - commercial	4	3,331		—	—		8	665		6	5,684
Commercial mortgage	5	11,871		3	3,145		9	10,240		8	7,029
Other commercial real estate	—	—		—	—		2	1,720		—	—
Commercial and industrial	2	435		—	—		3	644		2	142
Residential mortgage	7	2,484		3	931		8	1,134		3	1,691
Construction and land development - noncommercial	—	—		—	—		1	276		2	1,875
Total below market interest rate	18	18,121		6	4,076		31	14,679		21	16,421

Total acquired restructurings	22	$	18,787	9	$	6,169	48	$	31,267	31	$	25,667