NOTE E - ALLOWANCE FOR LOAN AND LEASE LOSSES ("ALLL")

The following tables present the activity in the ALLL for non-PCI loan and lease losses by loan class for the three months ended June 30, 2015 and June 30, 2014:



	Three months ended June 30, 2015
(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
Non-PCI Loans
Allowance for loan and lease losses:
Balance at April 1	$	13,108		$	82,038		$	1,031		$	36,954		$	4,293		$	2,981		$	11,328		$	17,529		$	1,056		$	17,616		$	187,934
Provision	88			(1,878		)	(227		)	4,547			408			(1,824		)	1,162			31			74			6,613			8,994
Charge-offs	(221		)	(47		)	(9		)	(2,318		)	(6		)	—			(90		)	(616		)	—			(2,743		)	(6,050		)
Recoveries	104			323			9			209			11			31			305			346			3			630			1,971
Balance at June 30	$	13,079		$	80,436		$	804		$	39,392		$	4,706		$	1,188		$	12,705		$	17,290		$	1,133		$	22,116		$	192,849

	Three months ended June 30, 2014
	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
Balance at April 1	$	12,246		$	94,217		$	945		$	24,021		$	4,183		$	454		$	10,944		$	16,408		$	1,249		$	13,282		$	177,949
Provision	(1,135		)	(1,961		)	(155		)	3,033			176			163			(1,557		)	1,252			(323		)	2,737			2,230
Charge-offs	—			(272		)	—			(531		)	(14		)	(5		)	(234		)	(1,064		)	(23		)	(2,628		)	(4,771		)
Recoveries	5			145			16			386			20			—			148			201			2			584			1,507
Balance at June 30	$	11,116		$	92,129		$	806		$	26,909		$	4,365		$	612		$	9,301		$	16,797		$	905		$	13,975		$	176,915

	Six months ended June 30, 2015
	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
Balance at January 1	$	11,961		$	85,189		$	732		$	30,727		$	4,286		$	3,184		$	10,661		$	18,650		$	892		$	16,555		$	182,837
Provision	1,191			(5,557		)	231			12,093			419			(2,042		)	1,975			(431		)	192			9,579			17,650
Charge-offs	(239		)	(280		)	(178		)	(4,031		)	(21		)	—			(374		)	(1,409		)	(22		)	(5,526		)	(12,080		)
Recoveries	166			1,084			19			603			22			46			443			480			71			1,508			4,442
Balance at June 30	$	13,079		$	80,436		$	804		$	39,392		$	4,706		$	1,188		$	12,705		$	17,290		$	1,133		$	22,116		$	192,849

	Six months ended June 30, 2014
	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
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	750			(8,940		)	(229		)	5,009			(348		)	435			(948		)	2,605			254			4,012			2,600
Charge-offs	—			(440		)	—			(1,027		)	(72		)	(13		)	(418		)	(2,324		)	(94		)	(4,805		)	(9,193		)
Recoveries	31			1,252			26			565			36			—			156			277			64			1,227			3,634
Balance at June 30	$	11,116		$	92,129		$	806		$	26,909		$	4,365		$	612		$	9,301		$	16,797		$	905		$	13,975		$	176,915

The provision expense for commercial and industrial loans totaled $4.5 million and $12.1 million for the three and six months ended June 30, 2015, respectively, compared to $3.0 million and $5.0 million for the same respective periods of 2014. Loan growth during 2015 was higher than the prior year causing the increases in provision expense.

The other loan class had a net provision credit of $1.8 million and $2.0 million for the three and six months ended June 30, 2015, respectively, compared to provision expense of $163 thousand and $435 thousand for the same respective periods of 2014. The current net provision credits were the result of the reversal of previously identified impairment on individually impaired loans due to credit quality improvement.

The provision for the residential mortgage loan class totaled $1.2 million and $2.0 million for the three and six months ended June 30, 2015, respectively, compared to net provision credits of $1.6 million and $948 thousand for the same respective periods of 2014. The increases in the provision expense were attributable to newly originated non-PCI loans and stable credit quality in the current periods. In 2014, improved credit quality trends resulted in a release of reserves for the three and six months ended June 30, 2014.

Revolving mortgage loans had net provision expense of $31 thousand and a net provision credit of $431 thousand for the three and six months ended June 30, 2015, respectively, compared to net provision expense of $1.3 million and $2.6 million for the three and six months ended June 30, 2014, respectively. The decline in provision expense for both periods was due to lower net charge-offs and improved credit quality trends within the loan class.

The provision for consumer loans totaled $6.6 million and $9.6 million for the three and six months ended June 30, 2015, respectively. Provision expense for the three and six month periods ended June 30, 2014 totaled $2.7 million and $4.0 million, respectively. The increase in provision expense was primarily due to higher loan growth in newly originated non-PCI loans in 2015.

The following tables present the allowance for non-PCI loan losses and the recorded investment in loans, by loan class, based on impairment method as of June 30, 2015 and December 31, 2014:



	June 30, 2015
(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	$	445	$	7,744	$	101	$	1,771	$	146	$	17	$	1,623	$	168	$	—	$	577	$	12,592
ALLL for loans and leases collectively evaluated for impairment	12,634		72,692		703		37,621		4,560		1,171		11,082		17,122		1,133		21,539		180,257
Total allowance for loan and lease losses	$	13,079	$	80,436	$	804	$	39,392	$	4,706	$	1,188	$	12,705	$	17,290	$	1,133	$	22,116	$	192,849

Loans and leases:
Loans and leases individually evaluated for impairment	$	3,092	$	83,555	$	401	$	12,416	$	1,448	$	1,732	$	16,424	$	3,961	$	860	$	1,117	$	125,006
Loans and leases collectively evaluated for impairment	544,059		7,778,035		287,813		2,187,175		642,060		336,657		2,580,640		2,525,975		226,420		1,163,106		18,271,940
Total loan and leases	$	547,151	$	7,861,590	$	288,214	$	2,199,591	$	643,508	$	338,389	$	2,597,064	$	2,529,936	$	227,280	$	1,164,223	$	18,396,946

	December 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	$	92	$	8,610	$	112	$	1,743	$	150	$	1,972	$	1,360	$	1,052	$	71	$	555	$	15,717
ALLL for loans and leases collectively evaluated for impairment	11,869		76,579		620		28,984		4,136		1,212		9,301		17,598		821		16,000		167,120
Total allowance for loan and lease losses	$	11,961	$	85,189	$	732	$	30,727	$	4,286	$	3,184	$	10,661	$	18,650	$	892	$	16,555	$	182,837

Loans and leases:
Loans and leases individually evaluated for impairment	$	1,620	$	82,803	$	584	$	11,040	$	623	$	2,000	$	14,913	$	3,675	$	1,340	$	995	$	119,593
Loans and leases collectively evaluated for impairment	491,513		7,470,145		244,291		1,977,894		571,293		351,833		2,478,145		2,558,125		203,676		1,116,459		17,463,374
Total loan and leases	$	493,133	$	7,552,948	$	244,875	$	1,988,934	$	571,916	$	353,833	$	2,493,058	$	2,561,800	$	205,016	$	1,117,454	$	17,582,967

The following tables show the activity in the allowance for PCI loan and lease losses by loan class for the three months and six months ended June 30, 2015 and June 30, 2014.



	Three months ended June 30, 2015
(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
PCI Loans
Allowance for loan and lease losses:
Balance at April 1	$	341		$	8,876		$	194		$	11		$	4,872		$	3,271		$	31		$	23		$	17,619
Provision	325			(2,065		)	(125		)	399			1,165			(1,112		)	(31		)	169			(1,275		)
Charge-offs	(97		)	(383		)	—			(87		)	(195		)	(108		)	—			(6		)	(876		)
Recoveries	—			—			—			—			—			—			—			—			—
Balance at June 30	$	569		$	6,428		$	69		$	323		$	5,842		$	2,051		$	—		$	186		$	15,468

	Three months ended June 30, 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
Balance at April 1	$	4,476		$	23,003		$	1,204		$	2,256		$	9,764		$	3,493		$	583		$	214		$	44,993
Provision	(77		)	(1,185		)	(797		)	(1,729		)	(2,176		)	(3,031		)	(583		)	49			(9,529		)
Charge-offs	(596		)	(4,503		)	—			(152		)	(495		)	(381		)	—			(6		)	(6,133		)
Recoveries	—			—			—			—			—			—			—			—			—
Balance at June 30	$	3,803		$	17,315		$	407		$	375		$	7,093		$	81		$	—		$	257		$	29,331

	Six months ended June 30, 2015
(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
Balance at January 1	$	150		$	10,135		$	75		$	1,240		$	5,820		$	3,999		$	183		$	27		$	21,629
Provision	516			(2,990		)	(6		)	(632		)	302			(1,767		)	(183		)	621			(4,139		)
Charge-offs	(97		)	(717		)	—			(285		)	(280		)	(181		)	—			(462		)	(2,022		)
Recoveries	—			—			—			—			—			—			—			—			—
Balance at June 30	$	569		$	6,428		$	69		$	323		$	5,842		$	2,051		$	—		$	186		$	15,468

	Six months ended June 30, 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
Balance at January 1	$	1,320		$	29,906		$	1,354		$	5,275		$	11,802		$	2,959		$	682		$	222		$	53,520
Provision	3,278			(4,571		)	(947		)	(2,065		)	(4,476		)	(2,397		)	(682		)	58			(11,802		)
Charge-offs	(795		)	(8,020		)	—			(2,835		)	(233		)	(481		)	—			(23		)	(12,387		)
Recoveries	—			—			—			—			—			—			—			—			—
Balance at June 30	$	3,803		$	17,315		$	407		$	375		$	7,093		$	81		$	—		$	257		$	29,331

The following tables show the ending balances of PCI loans and leases and related allowance by class of loans as of June 30, 2015 and December 31, 2014:



	June 30, 2015
(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
ALLL for loans and leases acquired with deteriorated credit quality	$	569	$	6,428	$	69	$	323	$	5,842	$	2,051	$	—	$	186	$	15,468

Loans and leases acquired with deteriorated credit quality	48,208		611,505		14,353		20,382		358,307		64,340		345		5,799		1,123,239

	December 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
ALLL for loans and leases acquired with deteriorated credit quality	$	150	$	10,135	$	75	$	1,240	$	5,820	$	3,999	$	183	$	27	$	21,629

Loans and leases acquired with deteriorated credit quality	78,079		577,518		40,193		27,254		382,340		74,109		912		6,093		1,186,498

As of June 30, 2015, and December 31, 2014, $570.6 million and $285.6 million, respectively, in PCI loans experienced an adverse change in expected cash flows since the date of acquisition. The corresponding valuation reserve was $15.5 million and $21.6 million, respectively.

The following tables provide information on non-PCI impaired loans and leases, exclusive of loans and leases evaluated collectively as a homogenous group, as of June 30, 2015 and December 31, 2014 including interest income recognized in the period during which the loans and leases were considered impaired.



	June 30, 2015
(Dollars in thousands)	With a recorded allowance		With no recorded allowance		Total		Unpaid principal balance		Related allowance recorded
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	2,620	$	472	$	3,092	$	8,514	$	445
Commercial mortgage	53,733		29,822		83,555		89,251		7,744
Other commercial real estate	101		300		401		848		101
Commercial and industrial	9,162		3,254		12,416		15,816		1,771
Lease financing	1,177		271		1,448		1,448		146
Other	1,732		—		1,732		1,732		17
Residential mortgage	8,760		7,664		16,424		17,118		1,623
Revolving mortgage	1,458		2,503		3,961		5,403		168
Construction and land development - noncommercial	—		860		860		860		—
Consumer	994		123		1,117		1,194		577
Total non-PCI impaired loans and leases	$	79,737	$	45,269	$	125,006	$	142,184	$	12,592

	December 31, 2014
(Dollars in thousands)	With a recorded allowance		With no recorded allowance		Total		Unpaid principal balance		Related allowance recorded
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	996	$	624	$	1,620	$	6,945	$	92
Commercial mortgage	57,324		25,479		82,803		87,702		8,610
Other commercial real estate	112		472		584		913		112
Commercial and industrial	10,319		721		11,040		12,197		1,743
Lease financing	319		304		623		623		150
Other	2,000		—		2,000		2,000		1,972
Residential mortgage	10,198		4,715		14,913		15,746		1,360
Revolving mortgage	3,675		—		3,675		4,933		1,052
Construction and land development - noncommercial	1,077		263		1,340		1,340		71
Consumer	987		8		995		1,067		555
Total non-PCI impaired loans and leases	$	87,007	$	32,586	$	119,593	$	133,466	$	15,717

The following tables show the average non-PCI impaired loan balance and the interest income recognized by loan class for the three and six months ended June 30, 2015 and June 30, 2014:



	Three months ended June 30, 2015				Three months ended June 30, 2014
(Dollars in thousands)	Average balance		Interest income recognized		Average balance		Interest income recognized
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	3,134	$	35	$	2,592	$	28
Commercial mortgage	86,253		840		87,687		799
Other commercial real estate	403		—		1,981		7
Commercial and industrial	14,088		146		11,208		113
Lease financing	1,463		16		384		4
Other	1,835		—		48		1
Residential mortgage	16,819		135		15,592		107
Revolving mortgage	4,015		23		3,779		29
Construction and land development - noncommercial	779		9		2,061		26
Consumer	1,154		20		986		17
Total non-PCI impaired loans and leases	$	129,943	$	1,224	$	126,318	$	1,131

	Six months ended June 30, 2015				Six months ended June 30, 2014
(Dollars in thousands)	Average balance		Interest income recognized		Average balance		Interest income recognized
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	3,093	$	70	$	1,413	$	31
Commercial mortgage	83,115		1,602		84,359		1,716
Other commercial real estate	477		1		2,731		60
Commercial and industrial	12,220		249		15,690		353
Lease financing	1,527		34		732		21
Other	1,913		—		24		1
Residential mortgage	16,092		260		15,824		284
Revolving mortgage	3,501		39		4,262		76
Construction and land development - noncommercial	719		16		1,946		50
Consumer	1,088		39		2,058		51
Total non-PCI impaired loans and leases	$	123,745	$	2,310	$	129,039	$	2,643

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, acquired loans accounted for 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. Subsequent modifications of a PCI loan accounted for in a pool that would otherwise meet the definition of a TDR is not reported, or accounted for, as a TDR since pooled PCI loans are excluded from the scope of TDR accounting.

The following table provides a summary of total TDRs by accrual status.



	June 30, 2015						December 31, 2014
(Dollars in thousands)	Accruing		Nonaccruing		Total		Accruing		Nonaccruing		Total
Commercial loans
Construction and land development - commercial	$	3,500	$	633	$	4,133	$	2,591	$	446	$	3,037
Commercial mortgage	83,059		12,588		95,647		92,184		8,937		101,121
Other commercial real estate	1,898		401		2,299		2,374		449		2,823
Commercial and industrial	8,689		2,970		11,659		9,864		664		10,528
Lease	1,122		325		1,447		258		365		623
Other	—		—		—		34		—		34
Total commercial TDRs	98,268		16,917		115,185		107,305		10,861		118,166
Noncommercial
Residential mortgage	23,268		5,663		28,931		22,597		4,655		27,252
Revolving mortgage	2,412		1,361		3,773		3,675		—		3,675
Construction and land development - noncommercial	860		—		860		1,391		—		1,391
Consumer and other	2,774		54		2,828		995		—		995
Total noncommercial TDRs	29,314		7,078		36,392		28,658		4,655		33,313
Total TDRs	$	127,582	$	23,995	$	151,577	$	135,963	$	15,516	$	151,479

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. Further, TDRs over $500,000 and graded substandard or lower are evaluated individually for impairment through a review of collateral values.

The following table shows the accrual status of non-PCI and PCI TDRs.



(Dollars in thousands)	June 30, 2015		December 31, 2014
Accruing TDRs:
PCI	$	41,355	$	44,647
Non-PCI	86,227		91,316
Total accruing TDRs	127,582		135,963
Nonaccruing TDRs:
PCI	1,975		2,225
Non-PCI	22,020		13,291
Total nonaccruing TDRs	23,995		15,516
All TDRs:
PCI	43,330		46,872
Non-PCI	108,247		104,607
Total TDRs	$	151,577	$	151,479

The following tables provide the types of TDRs made during the three and six months ended June 30, 2015 and June 30, 2014, as well as a summary of loans that were modified as a TDR during the twelve months ended June 30, 2015 and June 30, 2014 that subsequently defaulted during the three and six months ended June 30, 2015 and June 30, 2014. BancShares defines payment default as movement of the TDR to nonaccrual status, which is generally 90 days past due for TDRs, foreclosure or charge-off, whichever occurs first.



	Three months ended June 30, 2015						Three months ended June 30, 2014
	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
Non-PCI loans and leases
Interest only period provided
Commercial mortgage	2	$	69	—	$	—	2	$	720	1	$	494
Other	—	—		—	—		1	46		—	—
Total interest only	2	69		—	—		3	766		1	494

Loan term extension
Construction and land development - commercial	—	—		—	—		2	191		—	—
Commercial mortgage	2	840		—	—		—	—		—	—
Commercial and industrial	—	—		—	—		4	2,069		—	—
Residential mortgage	—	—		—	—		6	260		—	—
Consumer	—	—		—	—		1	10		—	—
Total loan term extension	2	840		—	—		13	2,530		—	—

Below market interest rate
Construction and land development - commercial	3	251		—	—		—	—		—	—
Commercial mortgage	6	1,510		—	—		3	1,991		5	1,563
Commercial and industrial	4	521		1	142		—	—		—	—
Other commercial real estate	—	—		—	—		1	365		—	—
Residential mortgage	15	646		1	15		10	427		—	—
Consumer	3	40		—	—		—	—		—	—
Total below market interest rate	31	2,968		2	157		14	2,783		5	1,563

Discharged from bankruptcy
Commercial and industrial	1	17		—	—		—	—		—	—
Residential mortgage	2	35		—	—		1	13		—	—
Revolving mortgage	7	203		3	60		2	39		—	—
Consumer	3	45		—	—		2	8		—	—
Total discharged from bankruptcy	13	300		3	60		5	60		—	—
Total non-PCI restructurings	48	$	4,177	5	$	217	35	$	6,139	6	$	2,057



	Six months ended June 30, 2015						Six months ended June 30, 2014
	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
Non-PCI loans and leases
Interest only period provided
Commercial mortgage	2	$	69	—	$	—	6	$	2,600	2	$	708
Commercial and industrial	1	1,872		1	1,872		1	196		—	—
Lease financing	—	—		—	—		2	144		—	—
Other	—	—		—	—		1	46		—	—
Total interest only	3	1,941		1	1,872		10	2,986		2	708

Loan term extension
Construction and land development - commercial	1	212		1	212		2	191		—	—
Commercial mortgage	5	1,371		—	—		5	2,584		—	—
Commercial and industrial	—	—		—	—		4	2,069		—	—
Lease financing	—	—		—	—		2	224		—	—
Residential mortgage	—	—		—	—		11	593		—	—
Revolving mortgage	1	9		—	—		—	—		—	—
Consumer	1	5		—	—		3	44		—	—
Total loan term extension	8	1,597		1	212		27	5,705		—	—

Below market interest rate
Construction and land development - commercial	5	296		—	—		10	363		—	—
Commercial mortgage	16	5,226		1	498		15	6,591		6	2,011
Commercial and industrial	7	673		1	142		6	143		—	—
Other commercial real estate	—	—		—	—		1	365		—	—
Residential mortgage	42	1,698		3	58		18	820		1	140
Revolving mortgage	3	63		—	—		5	274		—	—
Construction & land development - noncommercial	2	253		—	—		8	1,248		—	—
Consumer	7	85		—	—		—	—		—	—
Other	1	1,732		—	—		—	—		—	—
Total below market interest rate	83	10,026		5	698		63	9,804		7	2,151

Discharged from bankruptcy
Commercial mortgage	1	622		—	—		1	983		—	—
Commercial and industrial	1	17		—	—		—	—		—	—
Residential mortgage	8	434		—	—		8	649		2	85
Revolving mortgage	16	632		5	158		7	442		—	—
Construction & land development - noncommercial	—	—		—	—		1	62		—	—
Consumer	4	48		—	—		3	26		—	—
Total discharged from bankruptcy	30	1,753		5	158		20	2,162		2	85
Total non-PCI restructurings	124	$	15,317	12	$	2,940	120	$	20,657	11	$	2,944



	Three months ended June 30, 2015						Three months ended June 30, 2014
	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
PCI loans
Loan term extension
Residential mortgage	—	$	—	—	$	—	1	$	53	1	$	53
Total loan term extension	—	—		—	—		1	53		1	53

Below market interest rate
Construction and land development - commercial	—	—		—	—		1	273		—	—
Commercial mortgage	—	—		—	—		5	1,811		—	—
Commercial and industrial	—	—		—	—		1	23		—	—
Residential mortgage	1	60		—	—		23	2,963		1	23
Total below market interest rate	1	60		—	—		30	5,070		1	23

Discharged from bankruptcy
Residential mortgage	—	—		—	—		26	1,828		2	94
Total discharged from bankruptcy	—	—		—	—		26	1,828		2	94
Total PCI restructurings	1	$	60	—	$	—	31	$	5,123	2	$	76



	Six months ended June 30, 2015						Six months ended June 30, 2014
	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
PCI loans
Interest only period provided
Commercial mortgage	—	$	—	—	$	—	2	$	—	2	$	44
Total interest only	—	—		—	—		2	—		2	44

Loan term extension
Construction and land development - commercial	—	—		—	—		1	276		—	—
Residential mortgage	—	—		—	—		1	53		1	53
Total loan term extension	—	—		—	—		2	329		1	53

Below market interest rate
Construction and land development - commercial	—	—		—	—		2	308		—	—
Commercial mortgage	—	—		—	—		9	5,060		1	39
Commercial and industrial	—	—		—	—		1	23		—	—
Residential mortgage	8	545		—	—		25	3,066		2	23
Total below market interest rate	8	545		—	—		37	8,457		3	62

Discharged from bankruptcy
Residential mortgage	1	78		—	—		26	1,828		2	94
Total discharged from bankruptcy	1	78		—	—		26	1,828		2	94
Total PCI restructurings	9	$	623	—	$	—	67	$	10,614	8	$	253

For the three and six months ended June 30, 2015 and June 30, 2014, 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.