Allowance for Loan and Lease Losses (Tables)

3 Months Ended

Mar. 31, 2014

Allowance for Loan and Lease Losses, Adjustments, Net [Abstract]

Allocation of Allowance for Loan and Lease Losses [Table Text Block]

	Three months ended March 31, 2014
(Dollars in thousands)	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
Originated Loans
Allowance for loan and lease losses:
Balance at January 1	$	10,335		$	100,257		$	1,009		$	22,362		$	4,749		$	190		$	10,511		$	16,239		$	681		$	13,541		$	—		$	179,874
Provision	1,885			(6,979		)	(74		)	1,976			(524		)	272			609			1,353			577			1,275			—			370
Charge-offs	—			(168		)	—			(496		)	(58		)	(8		)	(184		)	(1,260		)	(71		)	(2,177		)	—			(4,422		)
Recoveries	26			1,107			10			179			16			—			8			76			62			643			—			2,127
Balance at March 31	$	12,246		$	94,217		$	945		$	24,021		$	4,183		$	454		$	10,944		$	16,408		$	1,249		$	13,282		$	—		$	177,949
	Three months ended March 31, 2013
	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
Balance at January 1	$	6,031		$	70,927		$	2,059		$	23,352		$	3,521		$	1,175		$	3,836		$	25,185		$	1,721		$	25,389		$	15,850		$	179,046
Provision	(1,834		)	2,536			(100		)	500			22			315			733			1,431			(113		)	604			(78		)	4,016
Charge-offs	(254		)	(654		)	(54		)	(1,258		)	—			—			(818		)	(2,188		)	(245		)	(2,596		)	—			(8,067		)
Recoveries	368			8			10			369			—			—			39			71			56			630			—			1,551
Balance at March 31	$	4,311		$	72,817		$	1,915		$	22,963		$	3,543		$	1,490		$	3,790		$	24,499		$	1,419		$	24,027		$	15,772		$	176,546

The provision for construction and land development - commercial totaled $1.9 million for the three months ended March 31, 2014. The March 31, 2014 provision expense was a direct result of increased loans during the quarter. Conversely, the March 31, 2013 credit provision resulted from a decline in the outstanding loan balances as well as the resolution of several individually impaired loans.

The commercial mortgage loan class had a net credit provision of $7.0 million for the three months ended March 31, 2014. The net credit provision was the result of declining loan balances, improvements in the credit risk rating mix and lower credit default trends within this loan class. Conversely, the March 31, 2013 provision expense was impacted by increased loan balances.

The commercial and industrial loan class had a provision expense of $2.0 million for the three months ended March 31, 2014 reflecting $94.4 million in loan growth for the quarter.

The following tables present the allowance for originated loan losses and the recorded investment in originated loans, by loan class, based on impairment method as of March 31, 2014 and December 31, 2013:

	March 31, 2014
(Dollars in thousands)	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		Total
Allowance for loan and lease losses:
ALLL for loans and leases individually evaluated for impairment	$	144	$	6,400	$	203	$	769	$	13	$	—	$	1,418	$	353	$	77	$	118	$	9,495
ALLL for loans and leases collectively evaluated for impairment	12,102		87,817		742		23,252		4,170		454		9,526		16,055		1,172		13,164		168,454
Total allowance for loan and lease losses	$	12,246	$	94,217	$	945	$	24,021	$	4,183	$	454	$	10,944	$	16,408	$	1,249	$	13,282	$	177,949
Loans and leases:
Loans and leases individually evaluated for impairment	$	2,329	$	88,987	$	1,627	$	8,804	$	393	$	—	$	15,626	$	3,587	$	699	$	1,015	$	123,067
Loans and leases collectively evaluated for impairment	332,942		6,241,856		175,455		1,166,739		393,875		179,725		1,014,406		2,087,413		118,350		366,398		12,077,159
Total loan and leases	$	335,271	$	6,330,843	$	177,082	$	1,175,543	$	394,268	$	179,725	$	1,030,032	$	2,091,000	$	119,049	$	367,413	$	12,200,226
	December 31, 2013
	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		Total
ALLL for loans and leases individually evaluated for impairment	$	103	$	6,873	$	209	$	771	$	54	$	—	$	1,586	$	372	$	72	$	121	$	10,161
ALLL for loans and leases collectively evaluated for impairment	10,232		93,384		800		21,591		4,695		190		8,925		15,867		609		13,420		169,713
Total allowance for loan and lease losses	$	10,335	$	100,257	$	1,009	$	22,362	$	4,749	$	190	$	10,511	$	16,239	$	681	$	13,541	$	179,874
Loans and leases individually evaluated for impairment	$	2,272	$	97,111	$	1,878	$	9,300	$	188	$	—	$	15,539	$	3,596	$	1,108	$	1,154	$	132,146
Loans and leases collectively evaluated for impairment	317,575		6,265,379		176,876		1,071,858		381,575		175,336		966,882		2,109,689		121,684		385,298		11,972,152
Total loan and leases	$	319,847	$	6,362,490	$	178,754	$	1,081,158	$	381,763	$	175,336	$	982,421	$	2,113,285	$	122,792	$	386,452	$	12,104,298

The following tables show the activity in the allowance for acquired loan and lease losses for the three months ended March 31, 2014 and March 31, 2013.

	Three months ended March 31, 2014
(Dollars in thousands)	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Residential mortgage			Revolving mortgage			Construction and land development - noncommercial			Consumer and other			Total
Acquired Loans
Allowance for loan and lease losses:
Balance at January 1	$	1,320		$	29,906		$	1,354		$	5,275		$	11,802		$	2,959		$	682		$	222		$	53,520
Provision	3,355			(3,386		)	(150		)	(336		)	(2,300		)	634			(99		)	9			(2,273		)
Charge-offs	(199		)	(3,517		)	—			(2,683		)	262			(100		)	—			(17		)	(6,254		)
Recoveries	—			—			—			—			—			—			—			—			—
Balance at March 31	$	4,476		$	23,003		$	1,204		$	2,256		$	9,764		$	3,493		$	583		$	214		$	44,993
	Three months ended March 31, 2013
	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Residential mortgage			Revolving mortgage			Construction and land development - noncommercial			Consumer and other			Total
Balance at January 1	$	31,186		$	50,275		$	11,234		$	8,897		$	19,837		$	9,754		$	8,287		$	502		$	139,972
Provision	(13,147		)	(2,084		)	(5,131		)	4,233			(1,505		)	(2,505		)	(2,313		)	(170		)	(22,622		)
Charge-offs	(4,733		)	(9,898		)	(931		)	(1,254		)	(729		)	(114		)	(3,218		)	—			(20,877		)
Recoveries	—			—			—			—			—			—			—			—			—
Balance at March 31	$	13,306		$	38,293		$	5,172		$	11,876		$	17,603		$	7,135		$	2,756		$	332		$	96,473

Allowance for Loan and Lease Losses

Allowance for Loan and Lease Losses

The following tables present the activity in the allowance for originated loan and lease losses by class of loans for the three months ended March 31, 2014 and March 31, 2013:

	Three months ended March 31, 2014
(Dollars in thousands)	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
Originated Loans
Allowance for loan and lease losses:
Balance at January 1	$	10,335		$	100,257		$	1,009		$	22,362		$	4,749		$	190		$	10,511		$	16,239		$	681		$	13,541		$	—		$	179,874
Provision	1,885			(6,979		)	(74		)	1,976			(524		)	272			609			1,353			577			1,275			—			370
Charge-offs	—			(168		)	—			(496		)	(58		)	(8		)	(184		)	(1,260		)	(71		)	(2,177		)	—			(4,422		)
Recoveries	26			1,107			10			179			16			—			8			76			62			643			—			2,127
Balance at March 31	$	12,246		$	94,217		$	945		$	24,021		$	4,183		$	454		$	10,944		$	16,408		$	1,249		$	13,282		$	—		$	177,949
	Three months ended March 31, 2013
	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
Balance at January 1	$	6,031		$	70,927		$	2,059		$	23,352		$	3,521		$	1,175		$	3,836		$	25,185		$	1,721		$	25,389		$	15,850		$	179,046
Provision	(1,834		)	2,536			(100		)	500			22			315			733			1,431			(113		)	604			(78		)	4,016
Charge-offs	(254		)	(654		)	(54		)	(1,258		)	—			—			(818		)	(2,188		)	(245		)	(2,596		)	—			(8,067		)
Recoveries	368			8			10			369			—			—			39			71			56			630			—			1,551
Balance at March 31	$	4,311		$	72,817		$	1,915		$	22,963		$	3,543		$	1,490		$	3,790		$	24,499		$	1,419		$	24,027		$	15,772		$	176,546

The provision for construction and land development - commercial totaled $1.9 million for the three months ended March 31, 2014. The March 31, 2014 provision expense was a direct result of increased loans during the quarter. Conversely, the March 31, 2013 credit provision resulted from a decline in the outstanding loan balances as well as the resolution of several individually impaired loans.

The commercial mortgage loan class had a net credit provision of $7.0 million for the three months ended March 31, 2014. The net credit provision was the result of declining loan balances, improvements in the credit risk rating mix and lower credit default trends within this loan class. Conversely, the March 31, 2013 provision expense was impacted by increased loan balances.

The commercial and industrial loan class had a provision expense of $2.0 million for the three months ended March 31, 2014 reflecting $94.4 million in loan growth for the quarter.

The following tables present the allowance for originated loan losses and the recorded investment in originated loans, by loan class, based on impairment method as of March 31, 2014 and December 31, 2013:

	March 31, 2014
(Dollars in thousands)	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		Total
Allowance for loan and lease losses:
ALLL for loans and leases individually evaluated for impairment	$	144	$	6,400	$	203	$	769	$	13	$	—	$	1,418	$	353	$	77	$	118	$	9,495
ALLL for loans and leases collectively evaluated for impairment	12,102		87,817		742		23,252		4,170		454		9,526		16,055		1,172		13,164		168,454
Total allowance for loan and lease losses	$	12,246	$	94,217	$	945	$	24,021	$	4,183	$	454	$	10,944	$	16,408	$	1,249	$	13,282	$	177,949
Loans and leases:
Loans and leases individually evaluated for impairment	$	2,329	$	88,987	$	1,627	$	8,804	$	393	$	—	$	15,626	$	3,587	$	699	$	1,015	$	123,067
Loans and leases collectively evaluated for impairment	332,942		6,241,856		175,455		1,166,739		393,875		179,725		1,014,406		2,087,413		118,350		366,398		12,077,159
Total loan and leases	$	335,271	$	6,330,843	$	177,082	$	1,175,543	$	394,268	$	179,725	$	1,030,032	$	2,091,000	$	119,049	$	367,413	$	12,200,226
	December 31, 2013
	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		Total
ALLL for loans and leases individually evaluated for impairment	$	103	$	6,873	$	209	$	771	$	54	$	—	$	1,586	$	372	$	72	$	121	$	10,161
ALLL for loans and leases collectively evaluated for impairment	10,232		93,384		800		21,591		4,695		190		8,925		15,867		609		13,420		169,713
Total allowance for loan and lease losses	$	10,335	$	100,257	$	1,009	$	22,362	$	4,749	$	190	$	10,511	$	16,239	$	681	$	13,541	$	179,874
Loans and leases individually evaluated for impairment	$	2,272	$	97,111	$	1,878	$	9,300	$	188	$	—	$	15,539	$	3,596	$	1,108	$	1,154	$	132,146
Loans and leases collectively evaluated for impairment	317,575		6,265,379		176,876		1,071,858		381,575		175,336		966,882		2,109,689		121,684		385,298		11,972,152
Total loan and leases	$	319,847	$	6,362,490	$	178,754	$	1,081,158	$	381,763	$	175,336	$	982,421	$	2,113,285	$	122,792	$	386,452	$	12,104,298

The following tables show the activity in the allowance for acquired loan and lease losses for the three months ended March 31, 2014 and March 31, 2013.

	Three months ended March 31, 2014
(Dollars in thousands)	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Residential mortgage			Revolving mortgage			Construction and land development - noncommercial			Consumer and other			Total
Acquired Loans
Allowance for loan and lease losses:
Balance at January 1	$	1,320		$	29,906		$	1,354		$	5,275		$	11,802		$	2,959		$	682		$	222		$	53,520
Provision	3,355			(3,386		)	(150		)	(336		)	(2,300		)	634			(99		)	9			(2,273		)
Charge-offs	(199		)	(3,517		)	—			(2,683		)	262			(100		)	—			(17		)	(6,254		)
Recoveries	—			—			—			—			—			—			—			—			—
Balance at March 31	$	4,476		$	23,003		$	1,204		$	2,256		$	9,764		$	3,493		$	583		$	214		$	44,993
	Three months ended March 31, 2013
	Construction and land development - commercial			Commercial mortgage			Other commercial real estate			Commercial and industrial			Residential mortgage			Revolving mortgage			Construction and land development - noncommercial			Consumer and other			Total
Balance at January 1	$	31,186		$	50,275		$	11,234		$	8,897		$	19,837		$	9,754		$	8,287		$	502		$	139,972
Provision	(13,147		)	(2,084		)	(5,131		)	4,233			(1,505		)	(2,505		)	(2,313		)	(170		)	(22,622		)
Charge-offs	(4,733		)	(9,898		)	(931		)	(1,254		)	(729		)	(114		)	(3,218		)	—			(20,877		)
Recoveries	—			—			—			—			—			—			—			—			—
Balance at March 31	$	13,306		$	38,293		$	5,172		$	11,876		$	17,603		$	7,135		$	2,756		$	332		$	96,473

The following tables show the ending balances of acquired loans and leases and related allowance by class of loans as of March 31, 2014 and December 31, 2013:

	March 31, 2014
	Construction and land development - commercial		Commercial mortgage		Other commercial real estate		Commercial and industrial		Residential mortgage		Revolving mortgage		Construction and land development - noncommercial		Consumer and other		Total
ALLL for loans and leases acquired with deteriorated credit quality	$	4,476	$	23,003	$	1,204	$	2,256	$	9,764	$	3,493	$	583	$	214	$	44,993
Loans and leases acquired with deteriorated credit quality	106,670		728,872		47,826		38,838		291,254		25,776		28,151		3,431		1,270,818
	December 31, 2013
	Construction and land development - commercial		Commercial mortgage		Other commercial real estate		Commercial and industrial		Residential mortgage		Revolving mortgage		Construction and land development - noncommercial		Consumer and other		Total
ALLL for loans and leases acquired with deteriorated credit quality	$	1,320	$	29,906	$	1,354	$	5,275	$	11,802	$	2,959	$	682	$	222	$	53,520
Loans and leases acquired with deteriorated credit quality	78,915		642,891		41,381		17,254		213,851		30,834		2,583		1,717		1,029,426

At March 31, 2014 and December 31, 2013, $382.6 million and $459.9 million, respectively, in acquired loans experienced an adverse change in expected cash flows since the date of acquisition.

The following tables provide information on originated loans and leases that are individually evaluated for impairment as of March 31, 2014 and December 31, 2013.

	March 31, 2014
(Dollars in thousands)	With a recorded allowance		With no recorded allowance		Total		Unpaid principal balance		Related allowance recorded
Impaired originated loans and leases
Construction and land development - commercial	$	1,646	$	683	$	2,329	$	3,294	$	144
Commercial mortgage	57,568		31,419		88,987		94,950		6,400
Other commercial real estate	755		872		1,627		2,027		203
Commercial and industrial	6,530		2,274		8,804		10,055		769
Lease financing	238		155		393		393		13
Residential mortgage	10,624		5,002		15,626		16,026		1,418
Revolving mortgage	3,210		377		3,587		4,618		353
Construction and land development - noncommercial	699		—		699		699		77
Consumer	1,015		—		1,015		1,039		118
Total impaired originated loans and leases	$	82,285	$	40,782	$	123,067	$	133,101	$	9,495
	December 31, 2013
	With a recorded allowance		With no recorded allowance		Total		Unpaid principal balance		Related allowance recorded
Impaired originated loans and leases
Construction and land development - commercial	$	1,025	$	1,247	$	2,272	$	7,306	$	103
Commercial mortgage	57,819		39,292		97,111		103,522		6,873
Other commercial real estate	783		1,095		1,878		2,279		209
Commercial and industrial	7,197		2,103		9,300		10,393		771
Lease financing	133		55		188		188		54
Residential mortgage	11,534		4,005		15,539		15,939		1,586
Revolving mortgage	3,382		214		3,596		3,596		372
Construction and land development - noncommercial	651		457		1,108		1,108		72
Consumer	1,154		—		1,154		1,154		121
Total impaired originated loans and leases	$	83,678	$	48,468	$	132,146	$	145,485	$	10,161

The following tables show the average impaired originated loan balance and the interest income recognized by loan class for the three months ended March 31, 2014 and March 31, 2013:

	Three months ended March 31, 2014
(Dollars in thousands)	Average balance		Interest income recognized
Impaired originated loans and leases:
Construction and land development - commercial	$	1,031	$	15
Commercial mortgage	94,547		1,120
Other commercial real estate	1,796		21
Commercial and industrial	10,234		118
Lease financing	284		4
Residential mortgage	16,482		174
Revolving mortgage	3,892		27
Construction and land development - noncommercial	2,322		29
Consumer	1,059		5
Total impaired originated loans and leases	$	131,647	$	1,513
	Three months ended March 31, 2013
	Average balance		Interest income recognized
Impaired originated loans and leases:
Construction and land development - commercial	$	9,284	$	112
Commercial mortgage	103,848		1,425
Other commercial real estate	3,179		45
Commercial and industrial	18,997		266
Lease financing	355		6
Residential mortgage	17,330		228
Revolving mortgage	5,472		25
Construction and land development - noncommercial	866		11
Consumer	1,683		5
Total impaired originated loans and leases	$	161,014	$	2,123

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 grant. 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, Loans and Debt Securities Acquired with Deteriorated Credit Quality, are not initially considered to be TDRs, but can be classified as such if a modification is made subsequent to acquisition. Modifications of acquired loans that are part of a pool are not designated as TDRs. The following table provides a summary of total TDRs by accrual status.

	March 31, 2014						December 31, 2013
(Dollars in thousands)	Accruing		Nonaccruing		Total		Accruing		Nonaccruing		Total
Commercial loans
Construction and land development - commercial	$	20,791	$	1,002	$	21,793	$	21,032	$	1,002	$	22,034
Commercial mortgage	136,563		25,276		161,839		113,323		23,387		136,710
Other commercial real estate	3,308		933		4,241		3,470		1,150		4,620
Commercial and industrial	8,929		1,180		10,109		9,838		1,142		10,980
Lease	247		146		393		49		—		49
Total commercial TDRs	169,838		28,537		198,375		147,712		26,681		174,393
Noncommercial
Residential	23,519		3,806		27,325		23,343		3,663		27,006
Revolving mortgage	3,587		—		3,587		3,095		—		3,095
Construction and land development - noncommercial	699		—		699		651		457		1,108
Consumer and other	1,015		—		1,015		1,154		—		1,154
Total noncommercial TDRs	28,820		3,806		32,626		28,243		4,120		32,363
Total TDRs	$	198,658	$	32,343	$	231,001	$	175,955	$	30,801	$	206,756

The following table shows the accrual status of acquired and originated TDRs.

(Dollars in thousands)	March 31, 2014		December 31, 2013
Accruing TDRs:
Acquired	$	105,642	$	90,829
Originated	93,016		85,126
Total accruing TDRs	198,658		175,955
Nonaccruing TDRs:
Acquired	11,626		11,479
Originated	20,717		19,322
Total nonaccruing TDRs	32,343		30,801
All TDRs:
Acquired	117,268		102,308
Originated	113,733		104,448
Total TDRs	$	231,001	$	206,756

All TDRs are impaired loans. TDRs are, therefore, individually evaluated for impairment on a quarterly basis or more frequently as needed. Impairment is evaluated using one of three approved valuation methodologies: discounted cash flows, market prices or collateral values. Based on the accrual status and credit grade, management determines the most appropriate method to reasonably assess expectations for recovery of the investment. The discounted cash flow method, the collateral value method or a combination of the two aforementioned methods is used internally for TDR impairment analysis. Expected cash flows are discounted at the loan’s original effective interest rate.

Specific valuation allowances are established or partial charge-offs are recorded on TDRs in the amount equal to the difference between the estimated fair value and the loan amount.

The majority of TDRs are included in the special mention, substandard or doubtful grading categories. 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.

The following tables provide the types of TDRs made during the three months ended March 31, 2014 and March 31, 2013 for originated loans, as well as a summary of originated loans that were modified as a TDR during the 12 months ended March 31, 2014 and March 31, 2013 that subsequently defaulted during the three months ended March 31, 2014 and March 31, 2013. BancShares defines payment default as movement of the TDR to nonaccrual status, which is generally 30 days past due for TDRs, foreclosure or charge-off, whichever occurs first.

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	Three months ended March 31, 2014						Three months ended March 31, 2013
	All restructurings			Restructurings with payment default			All restructurings			Restructurings with payment default
(Dollars in thousands)	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
Originated loans
Interest only period provided
Commercial mortgage	4	$	1,911	2	$	410	1	$	356	—	$	—
Commercial and industrial	1	196		—	—		—	—		—	—
Lease financing	2	146		—	—		—	—		—	—
Total interest only	7	2,253		2	410		1	356		—	—
Loan term extension
Commercial mortgage	5	2,620		—	—		6	2,117		1	483
Commercial and industrial	—	—		—	—		1	186		—	—
Lease financing	2	234		—	—		—	—		—	—
Residential mortgage	5	338		—	—		4	683		—	—
Consumer	—	—		1	41		—	—		—	—
Total loan term extension	12	3,192		1	41		11	2,986		1	483
Below market interest rate
Construction and land development - commercial	1	82		—	—		—	—		—	—
Commercial mortgage	12	4,677		1	449		3	2,556		1	1,024
Commercial and industrial	2	110		—	—		1	17		1	116
Residential mortgage	8	451		3	127		5	675		—	—
Revolving mortgage	5	278		—	—		—	—		—	—
Consumer	—	—		—	—		5	1,490		—	—
Total below market interest rate	28	5,598		4	576		14	4,738		2	1,140
Discharged from bankruptcy
Commercial mortgage	1	1,003		—	—		—	—		—	—
Residential mortgage	7	708		2	288		2	299		—	—
Revolving mortgage	4	229		—	—		24	1,878		5	233
Construction and land development-noncommercial	1	62		—	—		—	—		—	—
Consumer	1	18		—	—		—	—		—	—
Total discharged from bankruptcy	14	2,020		2	288		26	2,177		5	233
Total originated restructurings	61	$	13,063	9	$	1,315	52	$	10,257	8	$	1,856

The following tables provide the types of TDRs made during the three months ended March 31, 2014 and March 31, 2013 for acquired loans, as well as a summary of acquired loans that were modified as a TDR during the 12 months ended March 31, 2014 and March 31, 2013 that subsequently defaulted during the three months ended March 31, 2014 and March 31, 2013. BancShares defines payment default as movement of the TDR to nonaccrual status, which is generally 30 days past due for TDRs, foreclosure or charge-off, whichever occurs first.

	Three months ended March 31, 2014						Three months ended March 31, 2013
	All restructurings			Restructurings with payment default			All restructurings			Restructurings with payment default
(Dollars in thousands)	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
Acquired loans
Interest only period provided
Commercial mortgage	2	$	15,906	2	$	15,906	2	$	1,991	1	$	291
Residential mortgage	—	—		—	—		—	—		1	97
Total interest only	2	15,906		2	15,906		2	1,991		2	388
Loan term extension
Construction and land development - commercial	1	281		—	—		—	—		—	—
Total loan term extension	1	281		—	—		—	—		—	—
Below market interest rate
Construction and land development - commercial	1	37		—	—		1	309		—	—
Commercial mortgage	4	5,439		1	47		1	2,946		3	3,222
Commercial and industrial	—	—		—	—		2	458		—	—
Residential mortgage	1	102		1	436		2	726		2	726
Total below market interest rate	6	5,578		2	483		6	4,439		5	3,948
Total acquired restructurings	9	$	21,765	4	$	16,389	8	$	6,430	7	$	4,336

For the three months ended March 31, 2014 and March 31, 2013, the recorded investment in TDRs 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 information on originated loans and leases that are individually evaluated for impairment as of March 31, 2014 and December 31, 2013.

	March 31, 2014
(Dollars in thousands)	With a recorded allowance		With no recorded allowance		Total		Unpaid principal balance		Related allowance recorded
Impaired originated loans and leases
Construction and land development - commercial	$	1,646	$	683	$	2,329	$	3,294	$	144
Commercial mortgage	57,568		31,419		88,987		94,950		6,400
Other commercial real estate	755		872		1,627		2,027		203
Commercial and industrial	6,530		2,274		8,804		10,055		769
Lease financing	238		155		393		393		13
Residential mortgage	10,624		5,002		15,626		16,026		1,418
Revolving mortgage	3,210		377		3,587		4,618		353
Construction and land development - noncommercial	699		—		699		699		77
Consumer	1,015		—		1,015		1,039		118
Total impaired originated loans and leases	$	82,285	$	40,782	$	123,067	$	133,101	$	9,495
	December 31, 2013
	With a recorded allowance		With no recorded allowance		Total		Unpaid principal balance		Related allowance recorded
Impaired originated loans and leases
Construction and land development - commercial	$	1,025	$	1,247	$	2,272	$	7,306	$	103
Commercial mortgage	57,819		39,292		97,111		103,522		6,873
Other commercial real estate	783		1,095		1,878		2,279		209
Commercial and industrial	7,197		2,103		9,300		10,393		771
Lease financing	133		55		188		188		54
Residential mortgage	11,534		4,005		15,539		15,939		1,586
Revolving mortgage	3,382		214		3,596		3,596		372
Construction and land development - noncommercial	651		457		1,108		1,108		72
Consumer	1,154		—		1,154		1,154		121
Total impaired originated loans and leases	$	83,678	$	48,468	$	132,146	$	145,485	$	10,161

The following tables show the average impaired originated loan balance and the interest income recognized by loan class for the three months ended March 31, 2014 and March 31, 2013:

	Three months ended March 31, 2014
(Dollars in thousands)	Average balance		Interest income recognized
Impaired originated loans and leases:
Construction and land development - commercial	$	1,031	$	15
Commercial mortgage	94,547		1,120
Other commercial real estate	1,796		21
Commercial and industrial	10,234		118
Lease financing	284		4
Residential mortgage	16,482		174
Revolving mortgage	3,892		27
Construction and land development - noncommercial	2,322		29
Consumer	1,059		5
Total impaired originated loans and leases	$	131,647	$	1,513
	Three months ended March 31, 2013
	Average balance		Interest income recognized
Impaired originated loans and leases:
Construction and land development - commercial	$	9,284	$	112
Commercial mortgage	103,848		1,425
Other commercial real estate	3,179		45
Commercial and industrial	18,997		266
Lease financing	355		6
Residential mortgage	17,330		228
Revolving mortgage	5,472		25
Construction and land development - noncommercial	866		11
Consumer	1,683		5
Total impaired originated loans and leases	$	161,014	$	2,123

Troubled Debt Restructurings on Financing Receivables

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	Three months ended March 31, 2014						Three months ended March 31, 2013
	All restructurings			Restructurings with payment default			All restructurings			Restructurings with payment default
(Dollars in thousands)	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
Originated loans
Interest only period provided
Commercial mortgage	4	$	1,911	2	$	410	1	$	356	—	$	—
Commercial and industrial	1	196		—	—		—	—		—	—
Lease financing	2	146		—	—		—	—		—	—
Total interest only	7	2,253		2	410		1	356		—	—
Loan term extension
Commercial mortgage	5	2,620		—	—		6	2,117		1	483
Commercial and industrial	—	—		—	—		1	186		—	—
Lease financing	2	234		—	—		—	—		—	—
Residential mortgage	5	338		—	—		4	683		—	—
Consumer	—	—		1	41		—	—		—	—
Total loan term extension	12	3,192		1	41		11	2,986		1	483
Below market interest rate
Construction and land development - commercial	1	82		—	—		—	—		—	—
Commercial mortgage	12	4,677		1	449		3	2,556		1	1,024
Commercial and industrial	2	110		—	—		1	17		1	116
Residential mortgage	8	451		3	127		5	675		—	—
Revolving mortgage	5	278		—	—		—	—		—	—
Consumer	—	—		—	—		5	1,490		—	—
Total below market interest rate	28	5,598		4	576		14	4,738		2	1,140
Discharged from bankruptcy
Commercial mortgage	1	1,003		—	—		—	—		—	—
Residential mortgage	7	708		2	288		2	299		—	—
Revolving mortgage	4	229		—	—		24	1,878		5	233
Construction and land development-noncommercial	1	62		—	—		—	—		—	—
Consumer	1	18		—	—		—	—		—	—
Total discharged from bankruptcy	14	2,020		2	288		26	2,177		5	233
Total originated restructurings	61	$	13,063	9	$	1,315	52	$	10,257	8	$	1,856

The following tables provide the types of TDRs made during the three months ended March 31, 2014 and March 31, 2013 for acquired loans, as well as a summary of acquired loans that were modified as a TDR during the 12 months ended March 31, 2014 and March 31, 2013 that subsequently defaulted during the three months ended March 31, 2014 and March 31, 2013. BancShares defines payment default as movement of the TDR to nonaccrual status, which is generally 30 days past due for TDRs, foreclosure or charge-off, whichever occurs first.

	Three months ended March 31, 2014						Three months ended March 31, 2013
	All restructurings			Restructurings with payment default			All restructurings			Restructurings with payment default
(Dollars in thousands)	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
Acquired loans
Interest only period provided
Commercial mortgage	2	$	15,906	2	$	15,906	2	$	1,991	1	$	291
Residential mortgage	—	—		—	—		—	—		1	97
Total interest only	2	15,906		2	15,906		2	1,991		2	388
Loan term extension
Construction and land development - commercial	1	281		—	—		—	—		—	—
Total loan term extension	1	281		—	—		—	—		—	—
Below market interest rate
Construction and land development - commercial	1	37		—	—		1	309		—	—
Commercial mortgage	4	5,439		1	47		1	2,946		3	3,222
Commercial and industrial	—	—		—	—		2	458		—	—
Residential mortgage	1	102		1	436		2	726		2	726
Total below market interest rate	6	5,578		2	483		6	4,439		5	3,948
Total acquired restructurings	9	$	21,765	4	$	16,389	8	$	6,430	7	$	4,336