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Allowance for Loan and Lease Losses (Tables)
 9 Months Ended
Sep. 30, 2013
Allowance for Loan and Lease Losses, Adjustments, Net [Abstract]  
Allocation of Allowance for Loan and Lease Losses [Table Text Block]
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 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
(4,570
)
 
(1,662
)
 
(77
)
 
(3,917
)
 
(123
)
 
(6
)
 
(1,987
)
 
(4,540
)
 
(304
)
 
(7,601
)
 
—

 
(24,787
)
Recoveries
722

 
740

 
75

 
1,003

 
90

 
1

 
353

 
462

 
180

 
1,850

 
—

 
5,476

Provision
3,259

 
(7,695
)
 
(207
)
 
3,951

 
1,358

 
307

 
2,126

 
4,546

 
(571
)
 
4,183

 
(78
)
 
11,179

Balance at September 30
$
10,583

 
$
99,033

 
$
1,035

 
$
22,638

 
$
4,593

 
$
189

 
$
10,045

 
$
15,815

 
$
548

 
$
13,803

 
$
—

 
$
178,282

Nine months ended September 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
(9,504
)
 
(5,448
)
 
(254
)
 
(3,766
)
 
(335
)
 
(28
)
 
(3,381
)
 
(7,885
)
 
(914
)
 
(7,590
)
 
—

 
(39,105
)
Recoveries
370

 
1,230

 
6

 
616

 
75

 
4

 
433

 
501

 
168

 
1,366

 
—

 
4,769

Provision
10,134

 
18,168

 
318

 
(6,937
)
 
419

 
(115
)
 
1,255

 
6,726

 
1,441

 
6,944

 
1,147

 
39,500

Balance at September 30
$
6,467

 
$
81,436

 
$
2,239

 
$
13,636

 
$
3,447

 
$
1,176

 
$
7,186

 
$
26,387

 
$
2,122

 
$
26,682

 
$
15,269

 
$
186,047

Three months ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at July 1
$
11,732

 
$
104,842

 
$
1,057

 
$
19,309

 
$
4,992

 
$
360

 
$
9,996

 
$
14,997

 
$
720

 
$
13,777

 
$
—

 
$
181,782

Reclassification (1)
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Charge-offs
(3,030
)
 
(794
)
 
(5
)
 
(1,671
)
 
(31
)
 
—

 
(719
)
 
(1,472
)
 
(59
)
 
(2,445
)
 
—

 
(10,226
)
Recoveries
84

 
241

 
39

 
344

 
71

 
—

 
253

 
84

 
101

 
577

 
—

 
1,794

Provision
1,797

 
(5,256
)
 
(56
)
 
4,656

 
(439
)
 
(171
)
 
515

 
2,206

 
(214
)
 
1,894

 
—

 
4,932

Balance at September 30
$
10,583

 
$
99,033

 
$
1,035

 
$
22,638

 
$
4,593

 
$
189

 
$
10,045

 
$
15,815

 
$
548

 
$
13,803

 
$
—

 
$
178,282

Three months ended September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at July 1
$
5,056

 
$
81,573

 
$
2,413

 
$
14,308

 
$
3,515

 
$
1,183

 
$
7,639

 
$
26,700

 
$
1,815

 
$
24,988

 
$
15,942

 
$
185,132

Charge-offs
(283
)
 
(1,428
)
 
—

 
(720
)
 
—

 
—

 
(1,090
)
 
(1,613
)
 
(239
)
 
(2,307
)
 
—

 
(7,680
)
Recoveries
101

 
222

 
6

 
179

 
27

 
—

 
121

 
87

 
16

 
439

 
—

 
1,198

Provision
1,593

 
1,069

 
(180
)
 
(131
)
 
(95
)
 
(7
)
 
516

 
1,213

 
530

 
3,562

 
(673
)
 
7,397

Balance at September 30
$
6,467

 
$
81,436

 
$
2,239

 
$
13,636

 
$
3,447

 
$
1,176

 
$
7,186

 
$
26,387

 
$
2,122

 
$
26,682

 
$
15,269

 
$
186,047


(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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLL for loans and leases individually evaluated for impairment
$
435

 
$
8,506

 
$
133

 
$
2,500

 
$
177

 
$
—

 
$
1,113

 
$
1,167

 
$
52

 
$
133

 
$
—

 
$
14,216

ALLL for loans and leases collectively evaluated for impairment
10,148

 
90,527

 
902

 
20,138

 
4,416

 
189

 
8,932

 
14,648

 
496

 
13,670

 
—

 
164,066

Total allowance for loan and lease losses
$
10,583

 
$
99,033

 
$
1,035

 
$
22,638

 
$
4,593

 
$
189

 
$
10,045

 
$
15,815

 
$
548

 
$
13,803

 
$
—

 
$
178,282

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

Loans and leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases individually evaluated for impairment
$
2,290

 
$
116,222

 
$
2,835

 
$
11,282

 
$
309

 
$
—

 
$
14,333

 
$
6,495

 
$
938

 
$
1,212

 
$
—

 
$
155,916

Loans and leases collectively evaluated for impairment
297,976

 
6,191,970

 
174,764

 
998,359

 
365,658

 
180,435

 
913,093

 
2,106,745

 
120,615

 
379,054

 
—

 
11,728,669

Total loan and leases
$
300,266

 
$
6,308,192

 
$
177,599

 
$
1,009,641

 
$
365,967

 
$
180,435

 
$
927,426

 
$
2,113,240

 
$
121,553

 
$
380,266

 
$
—

 
$
11,884,585

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


 
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 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
(3,435
)
 
(10,146
)
 
(6,622
)
 
(5,190
)
 
—

 
(1,973
)
 
—

 
—

 
(2,379
)
 
(29,745
)
Recoveries
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Provision
(25,132
)
 
(10,809
)
 
(2,689
)
 
2,067

 
—

 
(3,546
)
 
(4,918
)
 
(7,739
)
 
2,056

 
(50,710
)
Balance at September 30
$
2,619

 
$
29,320

 
$
1,923

 
$
5,774

 
$
—

 
$
14,318

 
$
4,836

 
$
548

 
$
179

 
$
59,517

Nine months ended September 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
(6,460
)
 
(18,396
)
 
(831
)
 
(7,916
)
 
—

 
(3,431
)
 
—

 
(301
)
 
(66
)
 
(37,401
)
Recoveries
—

 
—

 
—

 
—

 
—

 
142

 
—

 
—

 
—

 
142

Provision
7,502

 
19,983

 
(11,477
)
 
6,125

 
(13
)
 
7,366

 
5,417

 
2,577

 
1,025

 
38,505

Balance at September 30
$
17,735

 
$
41,144

 
$
4,554

 
$
3,709

 
$
—

 
$
9,510

 
$
5,494

 
$
6,928

 
$
1,433

 
$
90,507

Three months ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at July 1
$
7,589

 
$
33,588

 
$
4,596

 
$
5,936

 
$
—

 
$
17,272

 
$
6,031

 
$
1,232

 
$
290

 
$
76,534

Charge-offs
(1,263
)
 
(2,324
)
 
—

 
(89
)
 
—

 
(509
)
 
—

 
(217
)
 
—

 
(4,402
)
Recoveries
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Provision
(3,707
)
 
(1,944
)
 
(2,673
)
 
(73
)
 
—

 
(2,445
)
 
(1,195
)
 
(467
)
 
(111
)
 
(12,615
)
Balance at September 30
$
2,619

 
$
29,320

 
$
1,923

 
$
5,774

 
$
—

 
$
14,318

 
$
4,836

 
$
548

 
$
179

 
$
59,517

Three months ended September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at July 1
$
15,983

 
$
35,991

 
$
9,194

 
$
14,724

 
$
—

 
$
5,575

 
$
2,548

 
$
3,780

 
$
2

 
$
87,797

Charge-offs
(1,434
)
 
(3,006
)
 
(34
)
 
(1,901
)
 
—

 
(819
)
 
—

 
(292
)
 
(30
)
 
(7,516
)
Recoveries
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Provision
3,186

 
8,159

 
(4,606
)
 
(9,114
)
 
—

 
4,754

 
2,946

 
3,440

 
1,461

 
10,226

Balance at September 30
$
17,735

 
$
41,144

 
$
4,554

 
$
3,709

 
$
—

 
$
9,510

 
$
5,494

 
$
6,928

 
$
1,433

 
$
90,507

Allowance for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLL for loans and leases acquired with deteriorated credit quality
$
2,619

 
$
29,320

 
$
1,923

 
$
5,774

 
$
—

 
$
14,318

 
$
4,836

 
$
548

 
$
179

 
$
59,517

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

Loans and leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases acquired with deteriorated credit quality
93,963

 
744,349

 
51,108

 
24,448

 
—

 
232,310

 
34,834

 
5,337

 
1,932

 
1,188,281

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
Allowance for Loan and Lease Losses
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)
September 30, 2013
 
 
 
 
 
 
 
 
 
Impaired originated loans and leases
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
$
1,941

 
$
349

 
$
2,290

 
$
7,364

 
$
435

Commercial mortgage
71,829

 
44,393

 
116,222

 
120,254

 
8,506

Other commercial real estate
1,210

 
1,625

 
2,835

 
3,131

 
133

Commercial and industrial
10,911

 
371

 
11,282

 
11,512

 
2,500

Lease financing
309

 
—

 
309

 
309

 
177

Other
—

 
—

 
—

 
—

 
—

Residential mortgage
11,652

 
2,681

 
14,333

 
14,534

 
1,113

Revolving mortgage
4,888

 
1,607

 
6,495

 
6,495

 
1,167

Construction and land development - noncommercial
475

 
463

 
938

 
938

 
52

Consumer
1,212

 
—

 
1,212

 
1,212

 
133

Nonspecific
—

 
—

 
—

 
—

 
—

Total impaired originated loans and leases
$
104,427

 
$
51,489

 
$
155,916

 
$
165,749

 
$
14,216

December 31, 2012
 
 
 
 
 
 
 
 
 
Impaired originated loans and leases
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
$
6,960

 
$
10,115

 
$
17,075

 
$
31,879

 
$
2,469

Commercial mortgage
61,644

 
72,160

 
133,804

 
123,964

 
11,697

Other commercial real estate
1,552

 
1,823

 
3,375

 
3,348

 
298

Commercial and industrial
11,248

 
11,371

 
22,619

 
9,583

 
2,133

Lease financing
723

 
81

 
804

 
746

 
202

Other
53

 
654

 
707

 
707

 
53

Residential mortgage
11,596

 
4,240

 
15,836

 
13,978

 
959

Revolving mortgage
1,238

 
2,965

 
4,203

 
4,203

 
1

Construction and land development - noncommercial
1,162

 
159

 
1,321

 
1,321

 
287

Consumer
1,609

 
900

 
2,509

 
2,509

 
256

Nonspecific
—

 
—

 
—

 
—

 
—

Total impaired originated loans and leases
$
97,785

 
$
104,468

 
$
202,253

 
$
192,238

 
$
18,355


At September 30, 2013, acquired loans that have had an adverse change in expected cash flows since the date of acquisition equaled $514,166, for which $59,517 in related allowance for loan losses has been recorded.

 
YTD
Average
Balance
 
YTD Interest Income Recognized
 
(dollars in thousands)
Nine months ended September 30, 2013
 
 
 
Originated impaired loans and leases:
 
 
 
Construction and land development - commercial
$
7,793

 
$
242

Commercial mortgage
107,929

 
4,413

Other commercial real estate
2,893

 
121

Commercial and industrial
13,811

 
533

Lease financing
399

 
19

Other
—

 
—

Residential mortgage
15,441

 
253

Revolving mortgage
6,337

 
459

Construction and land development - noncommercial
907

 
39

Consumer
1,508

 
33

Total originated impaired loans and leases
$
157,018

 
$
6,112

Three months ended September 30, 2013
 
 
 
Originated impaired loans and leases:
 
 
 
Construction and land development - commercial
$
5,553

 
$
29

Commercial mortgage
117,584

 
1,575

Other commercial real estate
2,852

 
39

Commercial and industrial
12,136

 
127

Lease financing
312

 
5

Other
—

 
—

Residential mortgage
15,137

 
181

Revolving mortgage
6,564

 
47

Construction and land development - noncommercial
943

 
14

Consumer
1,253

 
4

Total originated impaired loans and leases
$
162,334

 
$
2,021

Nine months ended September 30, 2012
 
 
 
Originated impaired loans and leases:
 
 
 
Construction and land development - commercial
$
24,595

 
$
756

Commercial mortgage
90,544

 
3,621

Other commercial real estate
2,502

 
83

Commercial and industrial
11,847

 
682

Lease financing
412

 
22

Other
327

 
—

Residential mortgage
15,278

 
536

Revolving mortgage
2,507

 
40

Construction and land development - noncommercial
3,017

 
122

Consumer
1,631

 
23

Total originated impaired loans and leases
$
152,660

 
$
5,885

Three months ended September 30, 2012
 
 
 
Originated impaired loans and leases:
 
 
 
Construction and land development - commercial
$
24,046

 
$
239

Commercial mortgage
100,751

 
1,332

Other commercial real estate
2,191

 
33

Commercial and industrial
13,414

 
186

Lease financing
689

 
11

Other
734

 
—

Residential mortgage
16,111

 
206

Revolving mortgage
3,592

 
20

Construction and land development - noncommercial
3,012

 
33

Consumer
1,978

 
7

Total originated impaired loans and leases
$
166,518

 
$
2,067

 
 
 
 
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 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
(4,570
)
 
(1,662
)
 
(77
)
 
(3,917
)
 
(123
)
 
(6
)
 
(1,987
)
 
(4,540
)
 
(304
)
 
(7,601
)
 
—

 
(24,787
)
Recoveries
722

 
740

 
75

 
1,003

 
90

 
1

 
353

 
462

 
180

 
1,850

 
—

 
5,476

Provision
3,259

 
(7,695
)
 
(207
)
 
3,951

 
1,358

 
307

 
2,126

 
4,546

 
(571
)
 
4,183

 
(78
)
 
11,179

Balance at September 30
$
10,583

 
$
99,033

 
$
1,035

 
$
22,638

 
$
4,593

 
$
189

 
$
10,045

 
$
15,815

 
$
548

 
$
13,803

 
$
—

 
$
178,282

Nine months ended September 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
(9,504
)
 
(5,448
)
 
(254
)
 
(3,766
)
 
(335
)
 
(28
)
 
(3,381
)
 
(7,885
)
 
(914
)
 
(7,590
)
 
—

 
(39,105
)
Recoveries
370

 
1,230

 
6

 
616

 
75

 
4

 
433

 
501

 
168

 
1,366

 
—

 
4,769

Provision
10,134

 
18,168

 
318

 
(6,937
)
 
419

 
(115
)
 
1,255

 
6,726

 
1,441

 
6,944

 
1,147

 
39,500

Balance at September 30
$
6,467

 
$
81,436

 
$
2,239

 
$
13,636

 
$
3,447

 
$
1,176

 
$
7,186

 
$
26,387

 
$
2,122

 
$
26,682

 
$
15,269

 
$
186,047

Three months ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at July 1
$
11,732

 
$
104,842

 
$
1,057

 
$
19,309

 
$
4,992

 
$
360

 
$
9,996

 
$
14,997

 
$
720

 
$
13,777

 
$
—

 
$
181,782

Reclassification (1)
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Charge-offs
(3,030
)
 
(794
)
 
(5
)
 
(1,671
)
 
(31
)
 
—

 
(719
)
 
(1,472
)
 
(59
)
 
(2,445
)
 
—

 
(10,226
)
Recoveries
84

 
241

 
39

 
344

 
71

 
—

 
253

 
84

 
101

 
577

 
—

 
1,794

Provision
1,797

 
(5,256
)
 
(56
)
 
4,656

 
(439
)
 
(171
)
 
515

 
2,206

 
(214
)
 
1,894

 
—

 
4,932

Balance at September 30
$
10,583

 
$
99,033

 
$
1,035

 
$
22,638

 
$
4,593

 
$
189

 
$
10,045

 
$
15,815

 
$
548

 
$
13,803

 
$
—

 
$
178,282

Three months ended September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at July 1
$
5,056

 
$
81,573

 
$
2,413

 
$
14,308

 
$
3,515

 
$
1,183

 
$
7,639

 
$
26,700

 
$
1,815

 
$
24,988

 
$
15,942

 
$
185,132

Charge-offs
(283
)
 
(1,428
)
 
—

 
(720
)
 
—

 
—

 
(1,090
)
 
(1,613
)
 
(239
)
 
(2,307
)
 
—

 
(7,680
)
Recoveries
101

 
222

 
6

 
179

 
27

 
—

 
121

 
87

 
16

 
439

 
—

 
1,198

Provision
1,593

 
1,069

 
(180
)
 
(131
)
 
(95
)
 
(7
)
 
516

 
1,213

 
530

 
3,562

 
(673
)
 
7,397

Balance at September 30
$
6,467

 
$
81,436

 
$
2,239

 
$
13,636

 
$
3,447

 
$
1,176

 
$
7,186

 
$
26,387

 
$
2,122

 
$
26,682

 
$
15,269

 
$
186,047


(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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLL for loans and leases individually evaluated for impairment
$
435

 
$
8,506

 
$
133

 
$
2,500

 
$
177

 
$
—

 
$
1,113

 
$
1,167

 
$
52

 
$
133

 
$
—

 
$
14,216

ALLL for loans and leases collectively evaluated for impairment
10,148

 
90,527

 
902

 
20,138

 
4,416

 
189

 
8,932

 
14,648

 
496

 
13,670

 
—

 
164,066

Total allowance for loan and lease losses
$
10,583

 
$
99,033

 
$
1,035

 
$
22,638

 
$
4,593

 
$
189

 
$
10,045

 
$
15,815

 
$
548

 
$
13,803

 
$
—

 
$
178,282

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

Loans and leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases individually evaluated for impairment
$
2,290

 
$
116,222

 
$
2,835

 
$
11,282

 
$
309

 
$
—

 
$
14,333

 
$
6,495

 
$
938

 
$
1,212

 
$
—

 
$
155,916

Loans and leases collectively evaluated for impairment
297,976

 
6,191,970

 
174,764

 
998,359

 
365,658

 
180,435

 
913,093

 
2,106,745

 
120,615

 
379,054

 
—

 
11,728,669

Total loan and leases
$
300,266

 
$
6,308,192

 
$
177,599

 
$
1,009,641

 
$
365,967

 
$
180,435

 
$
927,426

 
$
2,113,240

 
$
121,553

 
$
380,266

 
$
—

 
$
11,884,585

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


 
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:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 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
(3,435
)
 
(10,146
)
 
(6,622
)
 
(5,190
)
 
—

 
(1,973
)
 
—

 
—

 
(2,379
)
 
(29,745
)
Recoveries
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Provision
(25,132
)
 
(10,809
)
 
(2,689
)
 
2,067

 
—

 
(3,546
)
 
(4,918
)
 
(7,739
)
 
2,056

 
(50,710
)
Balance at September 30
$
2,619

 
$
29,320

 
$
1,923

 
$
5,774

 
$
—

 
$
14,318

 
$
4,836

 
$
548

 
$
179

 
$
59,517

Nine months ended September 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
(6,460
)
 
(18,396
)
 
(831
)
 
(7,916
)
 
—

 
(3,431
)
 
—

 
(301
)
 
(66
)
 
(37,401
)
Recoveries
—

 
—

 
—

 
—

 
—

 
142

 
—

 
—

 
—

 
142

Provision
7,502

 
19,983

 
(11,477
)
 
6,125

 
(13
)
 
7,366

 
5,417

 
2,577

 
1,025

 
38,505

Balance at September 30
$
17,735

 
$
41,144

 
$
4,554

 
$
3,709

 
$
—

 
$
9,510

 
$
5,494

 
$
6,928

 
$
1,433

 
$
90,507

Three months ended September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at July 1
$
7,589

 
$
33,588

 
$
4,596

 
$
5,936

 
$
—

 
$
17,272

 
$
6,031

 
$
1,232

 
$
290

 
$
76,534

Charge-offs
(1,263
)
 
(2,324
)
 
—

 
(89
)
 
—

 
(509
)
 
—

 
(217
)
 
—

 
(4,402
)
Recoveries
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Provision
(3,707
)
 
(1,944
)
 
(2,673
)
 
(73
)
 
—

 
(2,445
)
 
(1,195
)
 
(467
)
 
(111
)
 
(12,615
)
Balance at September 30
$
2,619

 
$
29,320

 
$
1,923

 
$
5,774

 
$
—

 
$
14,318

 
$
4,836

 
$
548

 
$
179

 
$
59,517

Three months ended September 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at July 1
$
15,983

 
$
35,991

 
$
9,194

 
$
14,724

 
$
—

 
$
5,575

 
$
2,548

 
$
3,780

 
$
2

 
$
87,797

Charge-offs
(1,434
)
 
(3,006
)
 
(34
)
 
(1,901
)
 
—

 
(819
)
 
—

 
(292
)
 
(30
)
 
(7,516
)
Recoveries
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Provision
3,186

 
8,159

 
(4,606
)
 
(9,114
)
 
—

 
4,754

 
2,946

 
3,440

 
1,461

 
10,226

Balance at September 30
$
17,735

 
$
41,144

 
$
4,554

 
$
3,709

 
$
—

 
$
9,510

 
$
5,494

 
$
6,928

 
$
1,433

 
$
90,507

Allowance for loan and lease losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ALLL for loans and leases acquired with deteriorated credit quality
$
2,619

 
$
29,320

 
$
1,923

 
$
5,774

 
$
—

 
$
14,318

 
$
4,836

 
$
548

 
$
179

 
$
59,517

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

Loans and leases:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
September 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans and leases acquired with deteriorated credit quality
93,963

 
744,349

 
51,108

 
24,448

 
—

 
232,310

 
34,834

 
5,337

 
1,932

 
1,188,281

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






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)
September 30, 2013
 
 
 
 
 
 
 
 
 
Impaired originated loans and leases
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
$
1,941

 
$
349

 
$
2,290

 
$
7,364

 
$
435

Commercial mortgage
71,829

 
44,393

 
116,222

 
120,254

 
8,506

Other commercial real estate
1,210

 
1,625

 
2,835

 
3,131

 
133

Commercial and industrial
10,911

 
371

 
11,282

 
11,512

 
2,500

Lease financing
309

 
—

 
309

 
309

 
177

Other
—

 
—

 
—

 
—

 
—

Residential mortgage
11,652

 
2,681

 
14,333

 
14,534

 
1,113

Revolving mortgage
4,888

 
1,607

 
6,495

 
6,495

 
1,167

Construction and land development - noncommercial
475

 
463

 
938

 
938

 
52

Consumer
1,212

 
—

 
1,212

 
1,212

 
133

Nonspecific
—

 
—

 
—

 
—

 
—

Total impaired originated loans and leases
$
104,427

 
$
51,489

 
$
155,916

 
$
165,749

 
$
14,216

December 31, 2012
 
 
 
 
 
 
 
 
 
Impaired originated loans and leases
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
$
6,960

 
$
10,115

 
$
17,075

 
$
31,879

 
$
2,469

Commercial mortgage
61,644

 
72,160

 
133,804

 
123,964

 
11,697

Other commercial real estate
1,552

 
1,823

 
3,375

 
3,348

 
298

Commercial and industrial
11,248

 
11,371

 
22,619

 
9,583

 
2,133

Lease financing
723

 
81

 
804

 
746

 
202

Other
53

 
654

 
707

 
707

 
53

Residential mortgage
11,596

 
4,240

 
15,836

 
13,978

 
959

Revolving mortgage
1,238

 
2,965

 
4,203

 
4,203

 
1

Construction and land development - noncommercial
1,162

 
159

 
1,321

 
1,321

 
287

Consumer
1,609

 
900

 
2,509

 
2,509

 
256

Nonspecific
—

 
—

 
—

 
—

 
—

Total impaired originated loans and leases
$
97,785

 
$
104,468

 
$
202,253

 
$
192,238

 
$
18,355


At September 30, 2013, acquired loans that have had an adverse change in expected cash flows since the date of acquisition equaled $514,166, for which $59,517 in related allowance for loan losses has been recorded.

 
YTD
Average
Balance
 
YTD Interest Income Recognized
 
(dollars in thousands)
Nine months ended September 30, 2013
 
 
 
Originated impaired loans and leases:
 
 
 
Construction and land development - commercial
$
7,793

 
$
242

Commercial mortgage
107,929

 
4,413

Other commercial real estate
2,893

 
121

Commercial and industrial
13,811

 
533

Lease financing
399

 
19

Other
—

 
—

Residential mortgage
15,441

 
253

Revolving mortgage
6,337

 
459

Construction and land development - noncommercial
907

 
39

Consumer
1,508

 
33

Total originated impaired loans and leases
$
157,018

 
$
6,112

Three months ended September 30, 2013
 
 
 
Originated impaired loans and leases:
 
 
 
Construction and land development - commercial
$
5,553

 
$
29

Commercial mortgage
117,584

 
1,575

Other commercial real estate
2,852

 
39

Commercial and industrial
12,136

 
127

Lease financing
312

 
5

Other
—

 
—

Residential mortgage
15,137

 
181

Revolving mortgage
6,564

 
47

Construction and land development - noncommercial
943

 
14

Consumer
1,253

 
4

Total originated impaired loans and leases
$
162,334

 
$
2,021

Nine months ended September 30, 2012
 
 
 
Originated impaired loans and leases:
 
 
 
Construction and land development - commercial
$
24,595

 
$
756

Commercial mortgage
90,544

 
3,621

Other commercial real estate
2,502

 
83

Commercial and industrial
11,847

 
682

Lease financing
412

 
22

Other
327

 
—

Residential mortgage
15,278

 
536

Revolving mortgage
2,507

 
40

Construction and land development - noncommercial
3,017

 
122

Consumer
1,631

 
23

Total originated impaired loans and leases
$
152,660

 
$
5,885

Three months ended September 30, 2012
 
 
 
Originated impaired loans and leases:
 
 
 
Construction and land development - commercial
$
24,046

 
$
239

Commercial mortgage
100,751

 
1,332

Other commercial real estate
2,191

 
33

Commercial and industrial
13,414

 
186

Lease financing
689

 
11

Other
734

 
—

Residential mortgage
16,111

 
206

Revolving mortgage
3,592

 
20

Construction and land development - noncommercial
3,012

 
33

Consumer
1,978

 
7

Total originated impaired loans and leases
$
166,518

 
$
2,067

 
 
 
 



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.

 
September 30, 2013
 
December 31, 2012
 
Accruing
 
 Nonaccruing
 
 Total
 
 Accruing
 
 Nonaccruing
 
 Total
 
(dollars in thousands)
Commercial loans
 
 
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
$
24,394

 
$
2,505

 
$
26,899

 
$
47,368

 
$
26,920

 
$
74,288

Commercial mortgage
105,775

 
26,669

 
132,444

 
151,728

 
37,603

 
189,331

Other commercial real estate
3,548

 
1,330

 
4,878

 
10,137

 
2,194

 
12,331

Commercial and industrial
10,364

 
894

 
11,258

 
10,940

 
7,237

 
18,177

Lease
148

 
—

 
148

 
224

 
—

 
224

Total commercial loans
144,229

 
31,398

 
175,627

 
220,397

 
73,954

 
294,351

Noncommercial
 
 
 
 
 
 
 
 
 
 
 
Residential
24,913

 
3,996

 
28,909

 
28,777

 
5,828

 
34,605

Revolving mortgage
3,058

 
—

 
3,058

 
48

 
—

 
48

Construction and land development - noncommercial
476

 
463

 
939

 
1,657

 
—

 
1,657

Consumer and other
1,212

 
—

 
1,212

 
2,509

 
—

 
2,509

Total noncommercial loans
29,659

 
4,459

 
34,118

 
32,991

 
5,828

 
38,819

Total loans
$
173,888

 
$
35,857

 
$
209,745

 
$
253,388

 
$
79,782

 
$
333,170


Total troubled debt restructurings at September 30, 2013, equaled $209,745, of which $114,231 were acquired and $95,514 were originated. TDRs at December 31, 2012, totaled $333,170, which consisted of $193,207 acquired and $139,963 that 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 September 30, 2013, and 2012, as well as a summary of loans that were modified as a TDR during the 12 months ended September 30, 2013, and 2012 that subsequently defaulted during the three months ended September 30, 2013, and 2012. BancShares defines payment default as movement of the TDR to nonaccrual status, foreclosure or charge-off, whichever occurs first.

.
 
Three months ended September 30, 2013
 
Three months ended September 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
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage
—
$
—

 
—
$
—

 
3
$
1,009

 
—
$
—

 
Commercial and industrial
1
203

 
—
—

 
2
580

 
—
—

 
Total interest only
1
203

 
—
—

 
5
1,589

 
—
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan term extension
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage
5
2,372

 
4
1,303

 
10
3,505

 
4
1,220

 
Commercial and industrial
—
—

 
—
—

 
2
513

 
—
—

 
Residential mortgage
2
590

 
—
—

 
2
133

 
—
—

 
Consumer
1
21

 
—
—

 
1
22

 
—
—

 
Total loan term extension
8
2,983

 
4
1,303

 
15
4,173

 
4
1,220

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Below market interest rate
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
1
45

 
—
—

 
—
—

 
—
—

 
Commercial mortgage
4
859

 
5
5,125

 
3
1,385

 
—
—

 
Commercial and industrial
—
—

 
1
173

 
1
113

 
—
—

 
Residential mortgage
1
319

 
—
—

 
1
8

 
—
—

 
Revolving mortgage
3
43

 
1
73

 
—
—

 
—
—

 
Construction & land development - noncommercial
2
42

 
—
—

 
—
—

 
—
—

 
Total below market interest rate
11
1,308

 
7
5,371

 
5
1,506

 
—
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discharged from bankruptcy
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
—
—

 
2
44

 
—
—

 
—
—
 
Revolving mortgage
3
125

 
2
47

 
—
—

 
—
—
 
Total discharged from bankruptcy
3
125

 
4
91

 
—
—

 
—
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total originated restructurings
23
$
4,619

 
15
$
6,765

 
25
$
7,268

 
4
$
1,220

 

 
Three months ended September 30, 2013
 
Three months ended September 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
$
2,628

 
1
$
336

 
1
$
336

 
Commercial mortgage
—
—

 
—
—

 
3
3,822

 
1
159

 
Total interest only
—
—

 
1
2,628

 
4
4,158

 
2
495

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan term extension
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage
1
157

 
—
—

 
—
—

 
—
—

 
Commercial and industrial
1
121

 
—
—

 
1
118

 
—
—

 
Residential mortgage
—
—

 
1
198

 
3
5,078

 
1
4,606

 
Total loan term extension
2
278

 
1
198

 
4
5,196

 
1
4,606

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Below market interest rate
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
—
—

 
2
1,067

 
2
52

 
—
—

 
Commercial mortgage
1
291

 
2
1,290

 
5
3,173

 
1
1,015

 
Commercial and industrial
—
—

 
—
—

 
1
1,137

 
—
—

 
Residential mortgage
—
—

 
4
842

 
10
170

 
4
11

 
Total below market interest rate
1
291

 
8
3,199

 
18
4,532

 
5
1,026

 
Total acquired restructurings
3
$
569

 
10
$
6,025

 
26
$
13,886

 
8
$
6,127

 


For the three months ended September 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 nine months ended September 30, 2013, and 2012, as well as a summary of loans that were modified as a TDR during the 12 months ended September 30, 2013, and 2012 that subsequently defaulted during the
nine months ended September 30, 2013, and 2012. BancShares defines payment default as movement of the TDR to nonaccrual status, foreclosure or charge-off, whichever occurs first.

 
Nine months ended September 30, 2013
 
Nine months ended September 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
9
3,242

 
—
—

 
12
4,562

 
2
952

Commercial and industrial
2
403

 
—
—

 
2
580

 
—
—

Other commercial real estate
1
98

 
—
—

 
—
—

 
—
—

Residential mortgage
1
630

 
—
—

 
1
338

 
1
338

Total interest only
13
4,373

 
—
—

 
17
5,796

 
3
1,290

 
 
 
 
 
 
 
 
 
 
 
 
Loan term extension
 
 
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
—
—

 
—
—

 
2
7,606

 
—
—

Commercial mortgage
12
4,935

 
5
1,524

 
45
16,314

 
10
3,389

Other commercial real estate
—
—

 
—
—

 
3
1,334

 
—
—

Commercial and industrial
2
623

 
—
—

 
10
1,371

 
3
150

Lease financing
—
—

 
—
—

 
3
172

 
—
—

Residential mortgage
9
879

 
1
570

 
7
493

 
1
47

Construction and land development - noncommercial
—
—

 
—
—

 
1
1,701

 
—
—

Consumer
2
64

 
—
—

 
6
1,124

 
—
—

Total loan term extension
25
6,501

 
6
2,094

 
77
30,115

 
14
3,586

 
 
 
 
 
 
 
 
 
 
 
 
Below market interest rate
 
 
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
2
265

 
—
—

 
1
228

 
—
—

Commercial mortgage
29
10,248

 
5
5,125

 
7
5,462

 
—
—

Commercial and industrial
4
829

 
1
173

 
4
226

 
—
—

Other commercial real estate
3
738

 
—
—

 
—
—

 
—
—

Residential mortgage
14
826

 
—
—

 
10
1,853

 
3
785

Revolving mortgage
6
215

 
1
73

 
1
49

 
1
49

Construction & land development - noncommercial
4
555

 
—
—

 
—
—

 
—
—

Consumer
3
227

 
—
—

 
2
11

 
—
—

Total below market interest rate
65
13,903

 
7
5,371

 
25
7,829

 
4
834

 
 
 
 
 
 
 
 
 
 
 
 
Discharged from bankruptcy
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
4
130

 
2
44

 
—
—

 
—
—

Revolving mortgage
31
2,520

 
2
47

 
—
—

 
—
—

Total discharged from bankruptcy
35
2,650

 
4
91

 
—
—

 
—
—

 
 
 
 
 
 
 
 
 
 
 
 
Other concession
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage
—
—

 
—
—

 
2
924

 
—
—

Residential mortgage
—
—

 
—
—

 
1
385

 
—
—

Total other concession
—
—

 
—
—

 
3
1,309

 
—
—

Total originated restructurings
138
$
27,427

 
17
$
7,556

 
122
$
45,049

 
21
$
5,710


 
Nine months ended September 30, 2013
 
Nine months ended September 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
$
2,628

 
1
$
2,628

 
2
$
474

 
1
$
336

Commercial mortgage
2
1,060

 
2
1,990

 
4
12,317

 
1
159

Commercial and industrial
1
23

 
—
—

 
1
158

 
—
—

Residential mortgage
2
181

 
—
—

 
1
100

 
—
—

Total interest only
6
3,892

 
3
4,618

 
8
13,049

 
2
495

 
 
 
 
 
 
 
 
 
 
 
 
Loan term extension
 
 
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
5
2,517

 
—
—

 
9
5,449

 
1
2,634

Commercial mortgage
1
157

 
—
—

 
2
1,413

 
—
—

Commercial and industrial
2
1,042

 
—
—

 
2
147

 
—
—

Residential mortgage
1
198

 
1
198

 
4
5,125

 
1
4,606

Total loan term extension
9
3,914

 
1
198

 
17
12,134

 
2
7,240

 
 
 
 
 
 
 
 
 
 
 
 
Below market interest rate
 
 
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
5
3,489

 
2
1,067

 
10
1,464

 
2
929

Commercial mortgage
9
11,428

 
2
1,290

 
14
13,493

 
5
2,747

Other commercial real estate
—
—

 
—
—

 
2
1,766

 
—
—

Commercial and industrial
3
510

 
—
—

 
4
1,137

 
2
—

Residential mortgage
10
2,871

 
6
1,545

 
18
1,522

 
7
72

Construction and land development - noncommercial
—
—

 
—
—

 
1
—

 
1
—

Total below market interest rate
27
18,298

 
10
3,902

 
49
19,382

 
17
3,748

 
 
 
 
 
 
 
 
 
 
 
 
Total acquired restructurings
42
$
26,104

 
14
$
8,718

 
74
$
44,565

 
21
$
11,483
Troubled Debt Restructurings on Financing Receivables
The following tables provide the types of TDRs made during the three months ended September 30, 2013, and 2012, as well as a summary of loans that were modified as a TDR during the 12 months ended September 30, 2013, and 2012 that subsequently defaulted during the three months ended September 30, 2013, and 2012. BancShares defines payment default as movement of the TDR to nonaccrual status, foreclosure or charge-off, whichever occurs first.

.
 
Three months ended September 30, 2013
 
Three months ended September 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
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage
—
$
—

 
—
$
—

 
3
$
1,009

 
—
$
—

 
Commercial and industrial
1
203

 
—
—

 
2
580

 
—
—

 
Total interest only
1
203

 
—
—

 
5
1,589

 
—
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan term extension
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage
5
2,372

 
4
1,303

 
10
3,505

 
4
1,220

 
Commercial and industrial
—
—

 
—
—

 
2
513

 
—
—

 
Residential mortgage
2
590

 
—
—

 
2
133

 
—
—

 
Consumer
1
21

 
—
—

 
1
22

 
—
—

 
Total loan term extension
8
2,983

 
4
1,303

 
15
4,173

 
4
1,220

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Below market interest rate
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
1
45

 
—
—

 
—
—

 
—
—

 
Commercial mortgage
4
859

 
5
5,125

 
3
1,385

 
—
—

 
Commercial and industrial
—
—

 
1
173

 
1
113

 
—
—

 
Residential mortgage
1
319

 
—
—

 
1
8

 
—
—

 
Revolving mortgage
3
43

 
1
73

 
—
—

 
—
—

 
Construction & land development - noncommercial
2
42

 
—
—

 
—
—

 
—
—

 
Total below market interest rate
11
1,308

 
7
5,371

 
5
1,506

 
—
—

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Discharged from bankruptcy
 
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage
—
—

 
2
44

 
—
—

 
—
—
 
Revolving mortgage
3
125

 
2
47

 
—
—

 
—
—
 
Total discharged from bankruptcy
3
125

 
4
91

 
—
—

 
—
—
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total originated restructurings
23
$
4,619

 
15
$
6,765

 
25
$
7,268

 
4
$
1,220

 

 
Three months ended September 30, 2013
 
Three months ended September 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
$
2,628

 
1
$
336

 
1
$
336

 
Commercial mortgage
—
—

 
—
—

 
3
3,822

 
1
159

 
Total interest only
—
—

 
1
2,628

 
4
4,158

 
2
495

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loan term extension
 
 
 
 
 
 
 
 
 
 
 
 
Commercial mortgage
1
157

 
—
—

 
—
—

 
—
—

 
Commercial and industrial
1
121

 
—
—

 
1
118

 
—
—

 
Residential mortgage
—
—

 
1
198

 
3
5,078

 
1
4,606

 
Total loan term extension
2
278

 
1
198

 
4
5,196

 
1
4,606

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Below market interest rate
 
 
 
 
 
 
 
 
 
 
 
 
Construction and land development - commercial
—
—

 
2
1,067

 
2
52

 
—
—

 
Commercial mortgage
1
291

 
2
1,290

 
5
3,173

 
1
1,015

 
Commercial and industrial
—
—

 
—
—

 
1
1,137

 
—
—

 
Residential mortgage
—
—

 
4
842

 
10
170

 
4
11

 
Total below market interest rate
1
291

 
8
3,199

 
18
4,532

 
5
1,026

 
Total acquired restructurings
3
$
569

 
10
$
6,025

 
26
$
13,886

 
8
$
6,127