10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

____________________________________________________

FORM 10-Q

____________________________________________________

xQuarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2018

or

¨Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Commission File Number: 001-16715

____________________________________________________

First Citizens BancShares, Inc.

(Exact name of Registrant as specified in its charter)

____________________________________________________

Delaware	56-1528994
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
4300 Six Forks Road, Raleigh, North Carolina	27609
(Address of principle executive offices)	(Zip code)

(919) 716-7000

(Registrant’s telephone number, including area code)

____________________________________________________

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding twelve months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past ninety days.    Yes  x   No  ¨

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or such shorter period that the Registrant was required to submit and post such files)    Yes  x    No  ¨

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “larger accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  x

Class A Common Stock—$1 Par Value—11,005,220 shares

Class B Common Stock—$1 Par Value—1,005,185 shares

(Number of shares outstanding, by class, as of August 1, 2018)

INDEX

		Page No.
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Balance Sheets (Unaudited)	3
	Consolidated Statements of Income (Unaudited)	4
	Consolidated Statements of Comprehensive Income (Unaudited)	5
	Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)	6
	Consolidated Statements of Cash Flows (Unaudited)	7
	Notes to Consolidated Financial Statements (Unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	40
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	63
Item 4.	Controls and Procedures	63
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	64
Item 1A.	Risk Factors	64
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	64
Item 6.	Exhibits	64

2

PART I

Item 1. Financial Statements

First Citizens BancShares, Inc. and Subsidiaries

Consolidated Balance Sheets

(Dollars in thousands, unaudited)	June 30, 2018			December 31, 2017
Assets
Cash and due from banks	$	260,525		$	336,150
Overnight investments	1,223,311			1,387,927
Investment in marketable equity securities	107,264			—
Investment securities available for sale	4,783,507			7,180,180
Investment securities held to maturity	2,299,774			76
Loans held for sale	58,961			51,179
Loans and leases	24,538,437			23,596,825
Allowance for loan and lease losses	(224,865		)	(221,893		)
Net loans and leases	24,313,572			23,374,932
Premises and equipment	1,167,532			1,138,431
Other real estate owned	46,633			51,097
Income earned not collected	99,567			95,249
Goodwill	208,217			150,601
Other intangible assets	77,370			73,096
Other assets	442,333			688,594
Total assets	$	35,088,566		$	34,527,512
Liabilities
Deposits:
Noninterest-bearing	$	12,181,717		$	11,237,375
Interest-bearing	18,227,167			18,028,900
Total deposits	30,408,884			29,266,275
Short-term borrowings	613,993			693,807
Long-term obligations	241,360			870,240
FDIC shared-loss payable	103,487			101,342
Other liabilities	273,956			261,784
Total liabilities	31,641,680			31,193,448
Shareholders’ equity
Common stock:
Class A - $1 par value (16,000,000 shares authorized; 11,005,220 shares issued and outstanding at June 30, 2018 and December 31, 2017)	11,005			11,005
Class B - $1 par value (2,000,000 shares authorized; 1,005,185 shares issued and outstanding at June 30, 2018 and December 31, 2017)	1,005			1,005
Preferred stock - $0.01 par value (10,000,000 shares authorized; no shares issued and outstanding at June 30, 2018 and December 31, 2017)	—			—
Surplus	658,918			658,918
Retained earnings	3,020,596			2,785,430
Accumulated other comprehensive loss	(244,638		)	(122,294		)
Total shareholders’ equity	3,446,886			3,334,064
Total liabilities and shareholders’ equity	$	35,088,566		$	34,527,512

See accompanying Notes to Consolidated Financial Statements.

3

First Citizens BancShares, Inc. and Subsidiaries

Consolidated Statements of Income

	Three months ended June 30				Six months ended June 30
(Dollars in thousands, except per share data, unaudited)	2018		2017		2018		2017
Interest income
Loans and leases	$	261,086	$	235,732	$	513,068	$	462,362
Investment securities and dividend income	37,179		30,406		72,199		60,157
Overnight investments	5,612		6,404		11,211		10,880
Total interest income	303,877		272,542		596,478		533,399
Interest expense
Deposits	4,521		4,132		8,277		8,568
Short-term borrowings	821		1,176		2,255		1,756
Long-term obligations	2,316		5,625		5,290		11,123
Total interest expense	7,658		10,933		15,822		21,447
Net interest income	296,219		261,609		580,656		511,952
Provision for loan and lease losses	8,438		12,324		16,043		20,555
Net interest income after provision for loan and lease losses	287,781		249,285		564,613		491,397
Noninterest income
Gain on acquisitions	—		122,728		—		134,745
Cardholder services, net	14,925		14,518		29,707		27,361
Merchant services, net	6,478		5,800		12,655		11,556
Service charges on deposit accounts	25,952		25,862		52,495		48,004
Wealth management services	25,515		21,920		49,084		42,882
Securities gains, net	—		3,351		—		3,327
Marketable equity securities gains, net	4,440		—		5,411		—
Other service charges and fees	7,756		6,628		15,236		14,229
Mortgage income	4,703		4,966		8,940		12,542
Insurance commissions	2,940		2,563		6,716		6,121
ATM income	2,217		2,513		4,388		4,286
Net impact from FDIC shared-loss agreement termination	—		—		—		(45		)
Gain on extinguishment of debt	—		—		25,814		—
Other	6,001		6,792		13,165		12,279
Total noninterest income	100,927		217,641		223,611		317,287
Noninterest expense
Salaries and wages	129,841		121,826		259,044		238,188
Employee benefits	29,715		25,383		61,806		52,560
Occupancy expense	26,100		26,059		54,054		50,821
Equipment expense	25,167		24,654		50,141		49,242
FDIC insurance expense	5,492		5,705		11,225		11,298
Collection and foreclosure-related expenses	3,974		2,376		8,120		6,139
Merger-related expenses	2,412		6,853		3,010		7,686
Other	43,292		42,191		86,656		75,812
Total noninterest expense	265,993		255,047		534,056		491,746
Income before income taxes	122,715		211,879		254,168		316,938
Income taxes	29,424		77,219		60,646		114,657
Net income	$	93,291	$	134,660	$	193,522	$	202,281
Average shares outstanding	12,010,405		12,010,405		12,010,405		12,010,405
Net income per share	$	7.77	$	11.21	$	16.11	$	16.84

See accompanying Notes to Consolidated Financial Statements.

4

First Citizens BancShares, Inc. and Subsidiaries

Consolidated Statements of Comprehensive Income

	Three months ended June 30						Six months ended June 30
(Dollars in thousands, unaudited)	2018			2017			2018			2017
Net income	$	93,291		$	134,660		$	193,522		$	202,281
Other comprehensive (loss) income:
Unrealized gains on securities available for sale:
Change in unrealized securities available for sale gains arising during period	82,789			13,771			4,155			49,867
Tax effect	(19,042		)	(5,125		)	(954		)	(18,544		)
Reclassification adjustment for gains included in income before income taxes	—			(3,351		)	—			(3,327		)
Tax effect	—			1,240			—			1,231
Total change in unrealized gains on securities available for sale, net of tax	63,747			6,535			3,201			29,227
Unrealized losses on securities available for sale transferred to held to maturity:
Unrealized losses on securities available for sale transferred to held to maturity	(109,507		)	—			(109,507		)	—
Tax effect	25,186			—			25,186			—
Reclassification adjustment for accretion of unrealized losses on securities available for sale transferred to held to maturity	4,473			—			4,473			—
Tax effect	(1,028		)	—			(1,028		)	—
Total change in unrealized losses on securities available for sale transferred to held to maturity, net of tax	(80,876		)	—			(80,876		)	—
Change in pension obligation:
Amortization of actuarial losses and prior service cost	3,654			2,460			6,991			4,960
Tax effect	(840		)	(897		)	(1,608		)	(1,838		)
Total change in pension obligation, net of tax	2,814			1,563			5,383			3,122
Other comprehensive (loss) income	(14,315		)	8,098			(72,292		)	32,349
Total comprehensive income	$	78,976		$	142,758		$	121,230		$	234,630

See accompanying Notes to Consolidated Financial Statements.

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First Citizens BancShares, Inc. and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

(Dollars in thousands, unaudited)	Class A Common Stock		Class B Common Stock		Surplus		Retained Earnings			Accumulated Other Comprehensive (Loss) Income			Total Shareholders’ Equity
Balance at December 31, 2016	$	11,005	$	1,005	$	658,918	$	2,476,691		$	(135,192	)	$	3,012,427
Net income	—		—		—		202,281			—			202,281
Other comprehensive income, net of tax	—		—		—		—			32,349			32,349
Cash dividends ($0.60 per share)	—		—		—		(7,206		)	—			(7,206		)
Balance at June 30, 2017	$	11,005	$	1,005	$	658,918	$	2,671,766		$	(102,843	)	$	3,239,851
Balance at December 31, 2017	$	11,005	$	1,005	$	658,918	$	2,785,430		$	(122,294	)	$	3,334,064
Cumulative effect of adoption of ASU 2016-01	—		—		—		18,716			(18,716		)	—
Cumulative effect of adoption of ASU 2018-02	—		—		—		31,336			(31,336		)	—
Net income	—		—		—		193,522			—			193,522
Other comprehensive loss, net of tax	—		—		—		—			(72,292		)	(72,292		)
Cash dividends ($0.70 per share)	—		—		—		(8,408		)	—			(8,408		)
Balance at June 30, 2018	$	11,005	$	1,005	$	658,918	$	3,020,596		$	(244,638	)	$	3,446,886

See accompanying Notes to Consolidated Financial Statements.

6

First Citizens BancShares, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

	Six months ended June 30
(Dollars in thousands, unaudited)	2018			2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$	193,522		$	202,281
Adjustments to reconcile net income to cash provided by operating activities:
Provision for loan and lease losses	16,043			20,555
Deferred tax (benefit) expense	(2,835		)	45,628
Net change in current taxes	(16,609		)	17,404
Depreciation	47,343			45,420
Net (decrease) increase in accrued interest payable	(2,043		)	1,344
Net increase in income earned not collected	(1,601		)	(290		)
Gain on acquisitions	—			(134,745		)
Securities gains, net	—			(3,327		)
Marketable equity securities gains, net	(5,411		)	—
Gain on extinguishment of debt	(25,814		)	—
Loss on termination of FDIC shared-loss agreements	—			45
Origination of loans held for sale	(304,580		)	(299,136		)
Proceeds from sale of loans held for sale	302,766			309,791
Gain on sale of loans held for sale	(5,610		)	(6,279		)
Gain on sale of portfolio loans	—			(164		)
Net write-downs/losses on other real estate	2,698			2,160
Gain on sales of premises and equipment	—			(159		)
Net accretion of premiums and discounts	(17,240		)	(22,918		)
Amortization of intangible assets	11,562			11,045
Net change in FDIC receivable for shared-loss agreements	—			4,821
Net change in FDIC payable for shared-loss agreements	2,145			2,118
Net change in other assets	310,635			(34,340		)
Net change in other liabilities	14,998			29,647
Net cash provided by operating activities	519,969			190,901
CASH FLOWS FROM INVESTING ACTIVITIES
Net increase in loans outstanding	(360,764		)	(462,385		)
Purchases of investment securities available for sale	(920,356		)	(1,186,883		)
Purchases of marketable equity securities	(2,818		)	—
Proceeds from maturities/calls of investment securities held to maturity	78,384			18
Proceeds from maturities/calls of investment securities available for sale	797,739			1,140,459
Proceeds from sales of investment securities available for sale	119,273			517,588
Proceeds from sales of marketable equity securities	8,493			—
Net decrease (increase) in overnight investments	175,009			(908,583		)
Proceeds from sales of portfolio loans	—			32,294
Cash paid to the FDIC for shared-loss agreements	—			(5,197		)
Net cash paid to the FDIC for termination of shared-loss agreements	—			(285		)
Proceeds from sales of other real estate	15,769			20,236
Proceeds from sales of premises and equipment	198			2,305
Purchases of premises and equipment	(59,603		)	(35,912		)
Business acquisitions, net of cash acquired	(106,298		)	300,703
Net cash used in investing activities	(254,974		)	(585,642		)
CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in time deposits	(181,889		)	(238,751		)
Net increase in demand and other interest-bearing deposits	704,909			429,684
Net (decrease) increase in short-term borrowings	(201,303		)	61,030
Repayment of long-term obligations	(653,929		)	(7,985		)
Origination of long-term obligations	—			175,000
Cash dividends paid	(8,408		)	(7,206		)
Net cash (used in) provided by financing activities	(340,620		)	411,772
Change in cash and due from banks	(75,625		)	17,031
Cash and due from banks at beginning of period	336,150			539,741
Cash and due from banks at end of period	$	260,525		$	556,772
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Transfers of loans to other real estate	$	11,868		$	21,891
Dividends declared but not paid	4,204			3,603
Reclassification of portfolio loans to loans held for sale	—			84,509
Transfer of investment securities available for sale to held to maturity	2,486,761			—

See accompanying Notes to Consolidated Financial Statements.

7

First Citizens BancShares, Inc. and Subsidiaries

Notes to Unaudited Consolidated Financial Statements

NOTE A - ACCOUNTING POLICIES AND BASIS OF PRESENTATION

First Citizens BancShares, Inc. (BancShares) is a financial holding company organized under the laws of Delaware and conducts operations through its banking subsidiary, First-Citizens Bank & Trust Company (FCB), which is headquartered in Raleigh, North Carolina.

General

These consolidated financial statements and notes thereto are presented in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States of America (GAAP). In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the consolidated financial position and consolidated results of operations have been made. The unaudited interim consolidated financial statements included in this Form 10-Q should be read in conjunction with the consolidated financial statements and notes to consolidated financial statements included in BancShares' Annual Report on Form 10-K for the year ended December 31, 2017.

Reclassifications

In certain instances, amounts reported in prior years' consolidated financial statements have been reclassified to conform to the current financial statement presentation. Such reclassifications had no effect on previously reported cash flows, shareholders' equity or net income.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates, and different assumptions in the application of these policies could result in material changes in BancShares' consolidated financial position, the consolidated results of its operations or related disclosures. Material estimates that are particularly susceptible to significant change include:

• Allowance for loan and lease losses;

• Fair value of financial instruments, including acquired assets and assumed liabilities;

• Pension plan assumptions;

• Cash flow estimates on purchased credit-impaired (PCI) loans;

• Goodwill and other intangible assets;

• Federal Deposit Insurance Corporation (FDIC) shared-loss payable; and

• Income tax assets, liabilities and expense

Recently Adopted Accounting Pronouncements

FASB ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

This ASU requires a reclassification from accumulated other comprehensive income (AOCI) to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (Tax Act), which was enacted on December 22, 2017. The Tax Act included a reduction to the corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. The amount of the reclassification would be the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We adopted the guidance effective in the first quarter of 2018. The change in accounting principle was accounted for as a cumulative-effect adjustment to the balance sheet resulting in a $31.3 million increase to retained earnings and a corresponding decrease to AOCI on January 1, 2018.

8

FASB ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

This ASU requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Employers will present the other components separately from the line item that includes the service cost. In addition, only the service cost component of net benefit cost is eligible for capitalization.

The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted the guidance effective in the first quarter of 2018. The adoption did not have a material impact on our consolidated financial position or consolidated results of operations.

FASB ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities

This ASU addresses certain aspects of recognition, measurement, presentation and disclosure of certain financial instruments. The amendments in this ASU (1) require most equity investments to be measured at fair value with changes in fair value recognized in net income; (2) simplify the impairment assessment of equity investments without a readily determinable fair value; (3) eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet; (4) require public business entities to use exit price notion, rather than entry prices, when measuring fair value of financial instruments for disclosure purposes; (5) require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the accompanying notes to the financial statements; (6) require separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; and (7) state that a valuation allowance on deferred tax assets related to available-for-sale securities should be evaluated in combination with other deferred tax assets.

The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted the guidance effective in the first quarter of 2018. The change in accounting principle was accounted for as a cumulative-effect adjustment to the balance sheet resulting in an $18.7 million increase to retained earnings and a decrease to AOCI on January 1, 2018. With the adoption of this ASU equity securities can no longer be classified as available for sale, as such marketable equity securities are disclosed as a separate line item on the balance sheet with changes in the fair value of equity securities reflected in net income.

For equity investments without a readily determinable fair value, BancShares has elected to measure the equity investments using the measurement alternative which requires BancShares to make a qualitative assessment of whether the investment is impaired at each reporting period. Under the measurement alternative these investments will be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. If a qualitative assessment indicates that the investment is impaired, BancShares will estimate the investment's fair value in accordance with ASC 820 and, if the fair value is less than the investment's carrying value, recognize an impairment loss in net income equal to the difference between carrying value and fair value. Equity investments without a readily determinable fair value are recorded within other assets in the consolidated balance sheets.

FASB ASU 2014-09, Revenue from Contracts with Customers (Topic 606)

In May 2014, the FASB issued a standard on the recognition of revenue from contracts with customers with the core principle being for a company to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard, which provides a five step model to determine when and how revenue is recognized, also results in enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively and improves guidance for multiple-element arrangements.

Per ASU 2015-14, Deferral of the Effective Date, this guidance was deferred and is effective for fiscal periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We adopted the guidance effective in the first quarter of 2018. Our revenue is comprised primarily of net interest income on financial assets and liabilities, which is explicitly excluded from the scope of the new guidance, and noninterest income. The contracts that are in scope of the guidance are primarily related to cardholder and merchant services income, service charges on deposit accounts, wealth management services income, other service charges and fees, insurance commissions, ATM income, sales of other real estate and other. Based on our overall assessment of revenue streams and review of related contracts affected by the ASU, the adoption of this guidance did not change the method in which we currently recognize revenue.

9

We also completed an evaluation of the costs related to these revenue streams to determine whether such costs should be presented as expenses or contra-revenue (i.e., gross vs. net). Based on this evaluation, we determined that the classification of cardholder and merchant processing costs as well as expenses for cardholder reward programs should be netted against cardholder and merchant services income. We used the full retrospective method of adoption and restated the prior financial statements to net the cardholder and merchant processing costs against the related cardholder and merchant services income. These classification changes resulted in changes to both noninterest income and noninterest expense, however, there was no change to previously reported net income. Merchant processing expenses of $20.8 million and $40.0 million have been reclassified and reported as a component of merchant services income for the three and six months ended June 30, 2017, respectively. Cardholder processing expenses of $6.8 million and cardholder reward programs expense of $3.0 million have been reclassified and reported as a component of cardholder services income for the three months ended June 30, 2017. For the six months ended June 30, 2017, cardholder processing expenses of $12.7 million and cardholder reward programs expense of $5.5 million were reclassified and reported as a component of cardholder services income.

Revenue Recognition

The standard requires disclosure of qualitative and quantitative information surrounding the amount, nature, timing and uncertainty of revenues and cash flows arising from contracts with customers. The core principle of the new standard is that revenue should be recognized when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.

Descriptions of our noninterest revenue-generating activities that are within the scope of the new revenue ASU is broadly segregated as follows:

Cardholder and Merchant Services - These represent interchange fees from customer debit and credit card transactions that are earned at the time a cardholder engages in a transaction with a merchant as well as fees charged to merchants for providing them the ability to accept and process the debit and credit card transaction. Revenue is recognized when the performance obligation has been met as it is satisfied upon the completion of the card transaction. Additionally, ASU 2014-09 requires costs associated with cardholder and merchant services transactions to be netted against the fees from such transactions when an entity is acting as an agent in providing services to a customer.

Service Charges on Deposit Accounts - These deposit account-related fees represent monthly account maintenance and transaction-based service fees such as overdraft fees, stop payment fees and charges for issuing cashier's checks and money orders. For account maintenance services, revenue is recognized at the end of the statement period when our performance obligation has been satisfied. All other revenues from transaction-based services are recognized at a point in time when the performance obligation has been completed.

Wealth Management Services - These primarily represent annuity fees, sales commissions, management fees, insurance sales, and trust and asset management fees. The performance obligation for wealth management services is the provision of services to place annuity products issued by the counterparty to investors, and the provision of services to manage the client’s assets, including brokerage custodial and other management services. Revenue is recognized over the period in which services are performed, are based on a percentage of the value of the assets under management/administration, and are fixed or variable based on account type, or are transaction-based.

Other Service Charges and Fees - These include, but are not limited to, check cashing fees, international banking fees, internet banking fees, wire transfer fees and safe deposit fees. These fees are charged, and revenue is recognized, at the point in time the service being requested by the customer is provided thus satisfying our performance obligation.

Insurance Commissions - These represent commissions earned on the issuance of insurance products and services. The performance obligation is generally satisfied upon the issuance of the insurance policy and revenue is recognized when the commission payment is remitted by the insurance carrier or policy holder depending on if the billing is performed by FCB or the carrier.

ATM Income - These represent fees imposed on customers and non-customers for engaging in an ATM transaction. Revenue is recognized at the time of the transaction as the performance obligation of rendering the ATM service has been met.

Sales of Other Real Estate - ORE property consists of foreclosed real estate used as collateral for loans, closed branches, land acquired and no longer intended for future use by FCB, and other real estate purchased for resale as ORE. Revenue is generally recognized on the date of sale where the performance obligation of providing access and transferring control of the specified ORE property to the buyer in good faith and good title is satisfied. This is recorded as a component of other noninterest income.

Other - This consists of several forms of recurring revenue such as external rental income, parking income, FHLB dividends, and income earned on changes in the cash surrender value of bank-owned life insurance, all of which are outside the scope of ASU

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2014-09. The remaining miscellaneous income is the result of immaterial transactions where revenue is recognized when, or as, the performance obligation is satisfied.

Recently Issued Accounting Pronouncements

FASB ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment

This ASU eliminates Step 2 from the goodwill impairment test. Under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative test.

This ASU will be effective for BancShares' annual or interim goodwill impairment tests for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We expect to adopt the guidance for our annual impairment test in fiscal year 2020. BancShares does not anticipate any impact to our consolidated financial position or consolidated results of operations as a result of the adoption.

FASB ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

This ASU eliminates the delayed recognition of the full amount of credit losses until the loss was probable of occurring and instead will reflect an entity's current estimate of all expected credit losses. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The ASU does not specify a method for measuring expected credit losses and allows an entity to apply methods that reasonably reflect its expectations of the credit loss estimate based on the entity's size, complexity and risk profile. In addition, the disclosures of credit quality indicators in relation to the amortized cost of financing receivables, a current disclosure requirement, are further disaggregated by year of origination.

The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. We will adopt the guidance by the first quarter of 2020 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. For BancShares, the standard will apply to loans, unfunded loan commitments and debt securities. A cross-functional team co-led by Corporate Finance and Risk Management is in place to implement the new standard. The team continues to work on critical activities such as building models, documenting accounting policies, reviewing data quality, and implementing a reporting and disclosure solution. We continue to evaluate the impact the new standard will have on our consolidated financial statements but the magnitude of this impact has not been determined. The final impact will be dependent, among other items, on loan portfolio composition and credit quality at the adoption date, as well as economic conditions, financial models used and forecasts at that time.

FASB ASU 2016-02, Leases (Topic 842)

This ASU increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The key difference between existing standards and this ASU is the requirement for lessees to recognize all lease contracts on their balance sheet. This ASU requires lessees to classify leases as either operating or finance leases, which are substantially similar to the current operating and capital leases classifications. The distinction between these two classifications under the new standard does not relate to balance sheet treatment, but relates to treatment in the statements of income and cash flows. Lessor guidance remains largely unchanged with the exception of how a lessor determines the appropriate lease classification for each lease to better align the lessor guidance with revised lessee classification guidance.

The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We will adopt during the first quarter of 2019. We expect an increase to the Consolidated Balance Sheets for right-of-use assets and associated lease liabilities, as well as resulting depreciation expense of the right-of-use assets and interest expense of the lease liabilities in the Consolidated Statements of Income, for arrangements previously accounted for as operating leases. Additionally, adding these assets to our balance sheet will impact our

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total risk-weighted assets used to determine our regulatory capital levels. Our impact analysis on this change in accounting principle estimates an increase to the Consolidated Balance Sheets for total lease liability ranging between $65.0 million and $85.0 million, as the initial gross up of both assets and liabilities. Capital is expected to be adversely impacted by an estimated four to six basis points. These are preliminary estimates subject to change and will continue to be refined closer to adoption.

NOTE B - BUSINESS COMBINATIONS

Palmetto Heritage Bancshares, Inc.

On July 25, 2018, First Citizens Bank and Palmetto Heritage Bancshares, Inc. announced the signing of a definitive merger agreement. The agreement provides for the acquisition of Pawley's Island, SC-based Palmetto Heritage Bancshares. Under the terms of the agreement, cash consideration of $135.00 per share will be paid to the shareholders of Palmetto Heritage Bancshares for each share of Palmetto Heritage's common stock with total consideration paid of $30.3 million. The transaction is expected to close during the fourth quarter of 2018, subject to the receipt of regulatory approvals and the approval of Palmetto Heritage Bancshares’ shareholders. As of June 30, 2018, Palmetto Heritage Bancshares reported $167.9 million in consolidated assets, $137.8 million in loans and $126.4 million in deposits.

Capital Commerce Bancorp, Inc.

On June 27, 2018, FCB and Capital Commerce Bancorp, Inc. (Capital Commerce) entered into a definitive merger agreement. The agreement provides for the acquisition of Milwaukee, Wisconsin-based Capital Commerce by FCB. Under the terms of the agreement, cash consideration of $4.75 per share will be paid to the shareholders of Capital Commerce for each share of Capital Commerce's common stock totaling approximately $28.1 million. The transaction is expected to close no later than the fourth quarter of 2018, subject to the receipt of regulatory approvals and the approval of Capital Commerce's shareholders, and will be accounted for under the acquisition method of accounting. The merger will allow FCB to expand its presence and enhance banking efforts in the Milwaukee market. As of March 31, 2018, Capital Commerce reported $216.2 million in consolidated assets, $180.6 million in loans and $171.0 million in deposits.

HomeBancorp, Inc.

On May 1, 2018, FCB completed the merger of Tampa, Florida-based HomeBancorp, Inc. (HomeBancorp) and its subsidiary, HomeBanc, into FCB. Under the terms of the merger agreement, cash consideration of $15.03 was paid to the shareholders of HomeBancorp for each share of HomeBancorp's common stock and total consideration was $112.7 million. The merger allowed FCB to expand its footprint in Florida by entering into two new markets in Tampa and Orlando.

The HomeBancorp transaction was accounted for under the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed were recorded at their estimated fair values on the acquisition date. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding closing date fair values becomes available.

The fair value of the assets acquired was $842.7 million, including $550.6 million in non-purchased credit impaired (non-PCI) loans, $15.6 million in purchased credit impaired (PCI) loans and $9.9 million in a core deposit intangible. Liabilities assumed were $787.7 million, of which $619.6 million were deposits. As a result of the transaction, FCB recorded $57.6 million of goodwill. The amount of goodwill represents the excess purchase price over the estimated fair value of the net assets acquired. The premium paid reflects the increased market share and related synergies that are expected to result from the acquisition. None of the goodwill is deductible for income tax purposes as the merger is accounted for as a qualified stock purchase.

Based on such credit factors as past due status, nonaccrual status, loan-to-value, credit scores, and other quantitative and qualitative considerations, the acquired loans were separated into loans with evidence of credit deterioration, which are accounted for under ASC 310-30 (PCI loans), and loans that do not meet this criteria, which are accounted for under ASC 310-20 (non-PCI loans).

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The following table provides the purchase price as of the acquisition date and the identifiable assets acquired and liabilities assumed at their estimated fair values.

(Dollars in thousands)	As recorded by FCB
Purchase Price			$	112,657
Assets
Cash and due from banks	$	6,359
Overnight investments	10,393
Investment securities	200,918
Loans held for sale	791
Loans	566,173
Premises and equipment	6,542
Other real estate owned	2,135
Income earned not collected	2,717
Intangible assets	13,206
Other assets	33,459
Total assets acquired	842,693
Liabilities
Deposits	619,589
Short-term borrowings	108,973
Accrued interest payable	1,020
Long-term obligations	52,944
Other liabilities	5,126
Total liabilities assumed	$	787,652
Fair value of net assets assumed			55,041
Goodwill recorded for HomeBancorp			$	57,616

Merger-related expenses of $1.5 million and $1.7 million were recorded in the Consolidated Statements of Income for the three and six months endedJune 30, 2018. Loan-related interest income generated from HomeBancorp was approximately $5.0 million since the acquisition date. The ongoing contributions of this transaction to BancShares' financial statements is not considered material, and therefore pro forma financial data is not included.

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NOTE C - INVESTMENTS

The amortized cost and fair value of investment securities classified as available for sale and held to maturity at June 30, 2018 and December 31, 2017, were as follows:

	June 30, 2018
(Dollars in thousands)	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury	$	1,508,435	$	—	$	4,461	$	1,503,974
Government agency	131,233		157		355		131,035
Mortgage-backed securities	3,104,316		1,621		71,872		3,034,065
Corporate bonds	108,649		391		250		108,790
Other	5,545		98		—		5,643
Total investment securities available for sale	$	4,858,178	$	2,267	$	76,938	$	4,783,507
	December 31, 2017
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury	$	1,658,410	$	—	$	546	$	1,657,864
Government agency	8,695		15		40		8,670
Mortgage-backed securities	5,419,379		1,529		80,152		5,340,756
Equity securities	75,471		29,737		—		105,208
Corporate bonds	59,414		557		8		59,963
Other	7,645		256		182		7,719
Total investment securities available for sale	$	7,229,014	$	32,094	$	80,928	$	7,180,180
	June 30, 2018
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities held to maturity
Mortgage-backed securities	$	2,299,774	$	3,778	$	1,459	$	2,302,093
	December 31, 2017
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities held to maturity
Mortgage-backed securities	$	76	$	5	$	—	$	81

As a result of adopting ASU 2016-01 in the first quarter of 2018, investments in marketable equity securities are no longer classified as investments available for sale. At June 30, 2018 and December 31, 2017, we had $107.3 million and $105.2 million, respectively, in marketable equity securities recorded at fair value. Prior to January 1, 2018 equity securities were classified as available for sale and stated at fair value with unrealized gains and losses reported in accumulated other comprehensive income. A cumulative-effect adjustment of $18.7 million was recorded on January 1, 2018 to reclassify the net unrealized gains from accumulated other comprehensive income to retained earnings with subsequent changes in fair value recognized in the Consolidated Statements of Income.

On May 1, 2018, mortgage-backed securities with an amortized cost of $2.49 billion were transferred from investments available for sale to the held to maturity portfolio. At the time of transfer, the mortgage-backed securities had a fair value of $2.38 billion and a weighted average contractual maturity of 13 years. The unrealized loss on these securities at the date of transfer was $109.5 million and continues to be reported as a component of AOCI. This unrealized loss will be accreted over the remaining expected life of the securities as an adjustment of yield and is offset by the amortization of the corresponding discount on the transferred securities. FCB has the intent and ability to retain these securities until maturity.

Investments in mortgage-backed securities primarily represent securities issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Investments in government agency securities represent securities issued by the United States Small Business Administration. Investments in corporate bonds and

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marketable equity securities represent positions in securities of other financial institutions. Other investments include trust preferred securities of financial institutions. The following table provides the amortized cost and fair value by contractual maturity. Expected maturities will differ from contractual maturities on certain securities because borrowers and issuers may have the right to call or prepay obligations with or without prepayment penalties. Repayments of mortgage-backed securities are dependent on the repayments of the underlying loan balances.

	June 30, 2018				December 31, 2017
(Dollars in thousands)	Cost		Fair value		Cost		Fair value
Investment securities available for sale
Non-amortizing securities maturing in:
One year or less	$	1,255,746	$	1,252,487	$	808,768	$	808,301
One through five years	252,689		251,487		849,642		849,563
Five through 10 years	108,649		108,790		59,414		59,963
Over 10 years	5,545		5,643		7,645		7,719
Government agency	131,233		131,035		8,695		8,670
Mortgage-backed securities	3,104,316		3,034,065		5,419,379		5,340,756
Equity securities	—		—		75,471		105,208
Total investment securities available for sale	$	4,858,178	$	4,783,507	$	7,229,014	$	7,180,180
Investment securities held to maturity
Mortgage-backed securities held to maturity	$	2,299,774	$	2,302,093	$	76	$	81

There were no gross gains or losses on sales of investment securities available for sale for the three or six months ended June 30, 2018. Gross gains and gross losses on sales of investment securities available for sale were $3.4 million and $2 thousand, respectively for the three months ended June 30, 2017. Gross gains and gross losses on sales of investment securities available for sale were $3.4 million and $29 thousand, respectively for the six months ended June 30, 2017.

The following table provides the realized and unrealized gains or losses on marketable equity securities for the three and six months ended June 30, 2018.

(Dollars in thousands)	Three months ended June 30, 2018		Six months ended June 30, 2018
Marketable equity securities gains, net	$	4,440	$	5,411
Less net gains recognized on marketable equity securities sold	139		235
Unrealized gains recognized on marketable equity securities held	$	4,301	$	5,176

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The following table provides information regarding securities available for sale with unrealized losses as of June 30, 2018 and December 31, 2017.

	June 30, 2018
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Investment securities available for sale:
U.S. Treasury	$	1,503,974	$	4,461	$	—	$	—	$	1,503,974	$	4,461
Government agency	83,383		328		2,004		27		85,387		355
Mortgage-backed securities	1,923,954		50,765		654,212		21,107		2,578,166		71,872
Corporate bonds	24,673		248		5,025		2		29,698		250
Total	$	3,535,984	$	55,802	$	661,241	$	21,136	$	4,197,225	$	76,938
Investment securities held to maturity:
Mortgage-backed securities	$	1,126,683	$	1,249	$	11,219	$	210	$	1,137,902	$	1,459
	December 31, 2017
	Less than 12 months				12 months or more				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Investment securities available for sale:
U.S. Treasury	$	1,408,166	$	345	$	249,698	$	201	$	1,657,864	$	546
Government agency	848		12		2,527		28		3,375		40
Mortgage-backed securities	2,333,254		20,911		2,723,406		59,241		5,056,660		80,152
Corporate bonds	5,025		8		—		—		5,025		8
Other	5,349		182		—		—		5,349		182
Total	$	3,752,642	$	21,458	$	2,975,631	$	59,470	$	6,728,273	$	80,928

As of June 30, 2018, there were 120 investment securities available for sale that had continuous losses for more than 12 months of which 119 are government sponsored enterprise-issued mortgage-backed securities or government agency securities and 1 is a corporate bond. There were 2 investment securities held to maturity, which were government sponsored enterprise-issued mortgage securities, that had continuous losses for more than 12 months at June 30, 2018.

None of the unrealized losses identified as of June 30, 2018 or December 31, 2017 relate to the marketability of the securities or the issuers' ability to honor redemption obligations. Rather, the unrealized losses relate to changes in interest rates relative to when the debt securities were purchased. BancShares has the ability and intent to retain these securities for a period of time sufficient to recover all unrealized losses. Therefore, none of the securities were deemed to be other than temporarily impaired.

Debt securities having an aggregate carrying value of $3.67 billion at June 30, 2018 and $4.59 billion at December 31, 2017 were pledged as collateral to secure public funds on deposit and certain short-term borrowings, and for other purposes as required by law.

NOTE D - LOANS AND LEASES

BancShares' accounting methods for loans and leases differ depending on whether they are non-PCI or PCI. For loans to be included as non-PCI, they are either originated by FCB or it must be determined that the loans do not have any credit deterioration at the time of acquisition. Conversely, loans for which it is probable at acquisition that all required payments will not be collected in accordance with contractual terms are considered impaired and, therefore, classified as PCI loans. PCI loans are recorded at fair value at the date of acquisition. No allowance for loan and lease losses is recorded on the acquisition date as the fair value of the acquired assets incorporates assumptions regarding credit risk over the life of the loans. An allowance is subsequently recorded if there is additional credit deterioration after the acquisition date.

BancShares reports non-PCI and PCI loan portfolios separately, and the non-PCI portfolio is further divided into commercial and non-commercial based on the type of borrower, purpose, collateral, and/or our underlying credit management processes. Additionally, commercial and non-commercial loans are assigned to loan classes, which further disaggregate loans based upon common risk characteristics.

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Commercial –Commercial loan classes include construction and land development, commercial mortgage, other commercial real estate, commercial and industrial, lease financing and other.

Construction and land development – Construction and land development consists of loans to finance land for development, investment, and use in a commercial business enterprise; multifamily apartments; and other commercial buildings that may be owner-occupied or income generating investments for the owner.

Commercial mortgage – Commercial mortgage consists of loans to purchase or refinance owner-occupied nonresidential and investment properties. Investment properties include office buildings and other facilities that are rented or leased to unrelated parties.

Other commercial real estate – Other commercial real estate consists of loans secured by farmland (including residential farms and other improvements) and multifamily (5 or more) residential properties.

Commercial and industrial – Commercial and industrial consists of loans or lines of credit to finance corporate credit cards, accounts receivable, inventory and other general business purposes.

Lease financing – Lease financing consists solely of lease financing agreements for business equipment, vehicles and other assets.

Other – Other consists of all other commercial loans not classified in one of the preceding classes. These typically include loans to non-profit organizations such as churches, hospitals, educational and charitable organizations, and certain loans repurchased with government guarantees.

Noncommercial – Noncommercial loan classes consist of residential and revolving mortgage, construction and land development, and consumer loans.

Residential mortgage – Residential real estate consists of loans to purchase, construct or refinance the borrower's primary dwelling, second residence or vacation home.

Revolving mortgage – Revolving mortgage consists of home equity lines of credit that are secured by first or second liens on the borrower's primary residence.

Construction and land development – Construction and land development consists of loans to construct the borrower's primary or secondary residence or vacant land upon which the owner intends to construct a dwelling at a future date.

Consumer – Consumer loans consist of installment loans to finance purchases of vehicles, unsecured home improvements, student loans and revolving lines of credit that can be secured or unsecured, including personal credit cards.

Loans and leases outstanding included the following at June 30, 2018 and December 31, 2017:

(Dollars in thousands)	June 30, 2018		December 31, 2017
Non-PCI loans and leases:
Commercial:
Construction and land development	$	715,011	$	669,215
Commercial mortgage	10,278,741		9,729,022
Other commercial real estate	473,452		473,433
Commercial and industrial	3,097,541		2,730,407
Lease financing	613,377		894,801
Other	296,614		302,176
Total commercial loans	15,474,736		14,799,054
Noncommercial:
Residential mortgage	3,980,845		3,523,786
Revolving mortgage	2,604,955		2,701,525
Construction and land development	250,704		248,289
Consumer	1,552,928		1,561,173
Total noncommercial loans	8,389,432		8,034,773
Total non-PCI loans and leases	23,864,168		22,833,827
PCI loans:
Total PCI loans	674,269		762,998
Total loans and leases	$	24,538,437	$	23,596,825

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At June 30, 2018, $9.08 billion in noncovered loans with a lendable collateral value of $6.22 billion were used to secure $128.7 million in Federal Home Loan Bank (FHLB) of Atlanta advances, resulting in additional borrowing capacity of $6.09 billion. At December 31, 2017, $8.75 billion in noncovered loans with a lendable collateral value of $6.08 billion were used to secure $835.2 million in FHLB of Atlanta advances, resulting in additional borrowing capacity of $5.24 billion. At June 30, 2018, $2.88 billion in noncovered loans with a lendable collateral value of $2.17 billion were used to secure additional borrowing capacity at the Federal Reserve Bank (FRB). At December 31, 2017, $2.77 billion in noncovered loans with a lendable collateral value of $2.08 billion were used to secure additional borrowing capacity at the FRB.

Certain residential real estate loans are originated to be sold to investors and are recorded in loans held for sale at fair value. Loans held for sale totaled $59.0 million and $51.2 million at June 30, 2018 and December 31, 2017, respectively. In addition, we may change our strategy for certain portfolio loans and sell them in the secondary market. At that time, portfolio loans are transferred to loans held for sale at the lower of amortized cost or market. During the three and six months ended June 30, 2018, total proceeds from sales of loans held for sale were $164.2 million and $302.8 million, respectively, and there were no transfers to loans held for sale from the residential mortgage portfolio for either period. For the three months ended June 30, 2017, total proceeds from sales of loans held for sale which did not include any loans transferred from the residential mortgage portfolio were $147.0 million. For the six months ended June 30, 2017, total proceeds from sales of loans held for sale were $342.1 million of which $32.3 million in sales were transferred to loans held for sale from the residential mortgage portfolio, resulting in a gain of $164 thousand.

Net deferred fees on originated non-PCI loans and leases, including unearned income as well as unamortized costs and fees, were $1.2 million and $1.7 million at June 30, 2018 and December 31, 2017, respectively. The unamortized discount related to purchased non-PCI loans and leases in the HomeBancorp, Guaranty Bank (Guaranty), Cordia Bancorp Inc. (Cordia) and First Citizens Bancorporation, Inc. (Bancorporation) acquisitions was $7.0 million, $12.3 million, $1.9 million and $14.7 million, respectively, at June 30, 2018. At December 31, 2017, the unamortized discount related to purchased non-PCI loans and leases from the Guaranty, Cordia and Bancorporation acquisitions was $14.2 million, $2.7 million and $18.1 million, respectively. During the three months ended June 30, 2018 and June 30, 2017, accretion income on purchased non-PCI loans and leases was $4.1 million and $3.0 million, respectively. During the six months ended June 30, 2018 and June 30, 2017, accretion income on purchased non-PCI loans and leases was $7.0 million and $6.0 million, respectively.

Credit quality indicators

Loans and leases are monitored for credit quality on a recurring basis. The credit quality indicators used are dependent on the portfolio segment to which the loan relates. Commercial and noncommercial loans and leases have different credit quality indicators as a result of the unique characteristics of the loan segment being evaluated. The credit quality indicators for non-PCI and PCI commercial loans and leases are developed through a review of individual borrowers on an ongoing basis. Commercial loans are evaluated periodically with more frequent evaluations done on more severely criticized loans or leases. The credit quality indicators for non-PCI and PCI noncommercial loans are based on the delinquency status of the borrower. As the borrower becomes more delinquent, the likelihood of loss increases. The indicators represent the rating for loans or leases as of the date presented based on the most recent assessment performed. These credit quality indicators are defined as follows:

Pass – A pass rated asset is not adversely classified because it does not display any of the characteristics for adverse classification.

Special mention – A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification.

Substandard – A substandard asset is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Assets classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These assets are characterized by the distinct possibility of loss if the deficiencies are not corrected.

Doubtful – An asset classified as doubtful has all the weaknesses inherent in an asset classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently existing facts, conditions and values.

Loss – Assets classified as loss are considered uncollectible and of such little value that it is inappropriate to be carried as an asset. This classification is not necessarily equivalent to any potential for recovery or salvage value, but rather that it is not appropriate to defer a full charge-off even though partial recovery may be affected in the future.

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Ungraded – Ungraded loans represent loans that are not included in the individual credit grading process due to their relatively small balances or borrower type. The majority of ungraded loans at June 30, 2018 and December 31, 2017 relate to business credit cards. Business credit card loans are subject to automatic charge-off when they become 120 days past due in the same manner as unsecured consumer lines of credit. The remaining balance is comprised of a small amount of commercial mortgage, lease financing and other commercial real estate loans.

Non-PCI loans and leases outstanding at June 30, 2018 and December 31, 2017 by credit quality indicator are provided below:

	June 30, 2018
(Dollars in thousands)	Non-PCI commercial loans and leases
Grade:	Construction  and land development		Commercial mortgage		Other commercial real estate		Commercial  and industrial		Lease financing		Other		Total non-PCI commercial loans and leases
Pass	$	703,034	$	10,083,382	$	470,236	$	2,868,180	$	603,760	$	293,804	$	15,022,396
Special mention	352		88,157		1,159		35,636		3,916		1,258		130,478
Substandard	3,195		105,647		2,057		21,265		5,701		1,552		139,417
Doubtful	—		999		—		365		—		—		1,364
Ungraded	8,430		556		—		172,095		—		—		181,081
Total	$	715,011	$	10,278,741	$	473,452	$	3,097,541	$	613,377	$	296,614	$	15,474,736
	December 31, 2017
	Non-PCI commercial loans and leases
	Construction  and land development		Commercial mortgage		Other commercial real estate		Commercial  and industrial		Lease financing		Other		Total non-PCI commercial loans and leases
Pass	$	665,197	$	9,521,019	$	468,942	$	2,511,307	$	883,779	$	298,064	$	14,348,308
Special mention	691		78,643		1,260		44,130		4,340		2,919		131,983
Substandard	3,327		128,848		3,224		18,617		6,585		1,193		161,794
Doubtful	—		262		—		385		—		—		647
Ungraded	—		250		7		155,968		97		—		156,322
Total	$	669,215	$	9,729,022	$	473,433	$	2,730,407	$	894,801	$	302,176	$	14,799,054

	June 30, 2018
	Non-PCI noncommercial loans and leases
(Dollars in thousands)	Residential mortgage		Revolving mortgage		Construction and land development		Consumer		Total non-PCI noncommercial loans and leases
Current	$	3,936,065	$	2,581,818	$	248,343	$	1,541,465	$	8,307,691
30-59 days past due	21,032		9,864		1,839		6,013		38,748
60-89 days past due	6,291		3,367		51		2,729		12,438
90 days or greater past due	17,457		9,906		471		2,721		30,555
Total	$	3,980,845	$	2,604,955	$	250,704	$	1,552,928	$	8,389,432
	December 31, 2017
	Non-PCI noncommercial loans and leases
	Residential mortgage		Revolving mortgage		Construction and land development		Consumer		Total non-PCI noncommercial loans and leases
Current	$	3,465,935	$	2,674,390	$	239,648	$	1,546,473	$	7,926,446
30-59 days past due	27,886		13,428		7,154		8,812		57,280
60-89 days past due	8,064		3,485		108		2,893		14,550
90 days or greater past due	21,901		10,222		1,379		2,995		36,497
Total	$	3,523,786	$	2,701,525	$	248,289	$	1,561,173	$	8,034,773

19

PCI loans outstanding at June 30, 2018 and December 31, 2017 by credit quality indicator are provided below:

	June 30, 2018		December 31, 2017
(Dollars in thousands)	PCI commercial loans
Grade:
Pass	$	165,578	$	201,332
Special mention	58,024		63,257
Substandard	105,937		117,068
Doubtful	6,536		11,735
Ungraded	34		27
Total	$	336,109	$	393,419

	June 30, 2018		December 31, 2017
	PCI noncommercial loans
(Dollars in thousands)
Current	$	299,579	$	318,632
30-59 days past due	12,146		13,343
60-89 days past due	4,167		6,212
90 days or greater past due	22,268		31,392
Total	$	338,160	$	369,579

The aging of the outstanding non-PCI loans and leases, by class, at June 30, 2018 and December 31, 2017 are provided in the tables below. Loans and leases 30 days or less past due are considered current as various grace periods allow borrowers to make payments within a stated period after the due date and still remain in compliance with the loan agreement.

	June 30, 2018
(Dollars in thousands)	30-59 days past due		60-89 days past due		90 days or greater		Total past due		Current		Total loans and leases
Non-PCI loans and leases:
Construction and land development - commercial	$	466	$	264	$	132	$	862	$	714,149	$	715,011
Commercial mortgage	10,120		5,021		5,599		20,740		10,258,001		10,278,741
Other commercial real estate	1,568		—		18		1,586		471,866		473,452
Commercial and industrial	6,445		3,743		1,155		11,343		3,086,198		3,097,541
Lease financing	3,062		1,167		951		5,180		608,197		613,377
Residential mortgage	21,032		6,291		17,457		44,780		3,936,065		3,980,845
Revolving mortgage	9,864		3,367		9,906		23,137		2,581,818		2,604,955
Construction and land development - noncommercial	1,839		51		471		2,361		248,343		250,704
Consumer	6,013		2,729		2,721		11,463		1,541,465		1,552,928
Other	42		17		—		59		296,555		296,614
Total non-PCI loans and leases	$	60,451	$	22,650	$	38,410	$	121,511	$	23,742,657	$	23,864,168
	December 31, 2017
	30-59 days past due		60-89 days past due		90 days or greater		Total past due		Current		Total loans and leases
Non-PCI loans and leases:
Construction and land development - commercial	$	491	$	442	$	357	$	1,290	$	667,925	$	669,215
Commercial mortgage	12,288		2,375		6,490		21,153		9,707,869		9,729,022
Other commercial real estate	107		—		75		182		473,251		473,433
Commercial and industrial	6,694		1,510		1,266		9,470		2,720,937		2,730,407
Lease financing	2,983		167		973		4,123		890,678		894,801
Residential mortgage	27,886		8,064		21,901		57,851		3,465,935		3,523,786
Revolving mortgage	13,428		3,485		10,222		27,135		2,674,390		2,701,525
Construction and land development - noncommercial	7,154		108		1,379		8,641		239,648		248,289
Consumer	8,812		2,893		2,995		14,700		1,546,473		1,561,173
Other	188		6		133		327		301,849		302,176
Total non-PCI loans and leases	$	80,031	$	19,050	$	45,791	$	144,872	$	22,688,955	$	22,833,827

20

The recorded investment, by class, in loans and leases on nonaccrual status, and loans and leases greater than 90 days past due and still accruing at June 30, 2018 and December 31, 2017 for non-PCI loans and leases, were as follows:

	June 30, 2018				December 31, 2017
(Dollars in thousands)	Nonaccrual loans and leases		Loans and leases > 90 days and accruing		Nonaccrual loans and leases		Loans and leases > 90 days and accruing
Non-PCI loans and leases:
Construction and land development - commercial	$	420	$	—	$	1,040	$	—
Commercial mortgage	18,457		839		22,625		397
Other commercial real estate	103		—		916		—
Commercial and industrial	3,168		319		2,884		428
Lease financing	1,755		—		1,992		—
Residential mortgage	35,173		—		38,942		—
Revolving mortgage	22,500		—		19,990		—
Construction and land development - noncommercial	1,012		—		1,989		—
Consumer	2,390		2,021		1,992		2,153
Other	77		—		164		—
Total non-PCI loans and leases	$	85,055	$	3,179	$	92,534	$	2,978

Purchased non-PCI loans and leases

The following table relates to purchased non-PCI loans acquired in the HomeBancorp transaction and provides the contractually required payments, estimate of contractual cash flows not expected to be collected and fair value of the acquired loans at the acquisition date.

(Dollars in thousands)
Contractually required payments	$	710,876
Contractual cash flows not expected to be collected	$	9,845
Fair value at acquisition date	$	550,618

The recorded fair values of purchased non-PCI loans acquired in the HomeBancorp transaction as of the acquisition date are as follows:

(Dollars in thousands)
Commercial:
Construction and land development	$	525
Commercial mortgage	188,688
Other commercial real estate	55,183
Commercial and industrial	7,931
Total commercial loans	252,327
Noncommercial:
Residential mortgage	296,273
Revolving mortgage	51
Consumer	1,967
Total noncommercial loans	298,291
Total non-PCI loans	$	550,618

21

Purchased credit-impaired loans

The following table relates to PCI loans acquired in the HomeBancorp transaction and summarizes the contractually required payments, which include principal and interest, expected cash flows to be collected and the fair value of PCI loans at the acquisition date.

(Dollars in thousands)
Contractually required payments	$	26,651
Cash flows expected to be collected	$	19,697
Fair value of loans at acquisition	$	15,555

The recorded fair values of PCI loans acquired in the HomeBancorp transaction as of the acquisition date are as follows:

(Dollars in thousands)
Commercial:
Commercial mortgage	$	7,815
Commercial and industrial	423
Total commercial loans	8,238
Noncommercial:
Residential mortgage	7,317
Total noncommercial loans	7,317
Total PCI loans	$	15,555

The following table provides changes in the carrying value of all PCI loans during the six months ended June 30, 2018 and June 30, 2017:

(Dollars in thousands)	2018			2017
Balance at January 1	$	762,998		$	809,169
Fair value of acquired loans	15,555			199,682
Accretion	32,188			39,798
Payments received and other changes, net	(136,472		)	(153,786		)
Balance at June 30	$	674,269		$	894,863
Unpaid principal balance at June 30	$	1,044,148		$	1,199,358

The carrying value of loans on the cost recovery method was $2.1 million at June 30, 2018 and $1.1 million at December 31, 2017. The cost recovery method is applied to loans when the timing of future cash flows is not reasonably estimable due to borrower nonperformance or uncertainty in the ultimate disposition of the asset. The recorded investment of PCI loans on nonaccrual status was $1.6 million and $624 thousand at June 30, 2018 and December 31, 2017, respectively.

During the three months ended June 30, 2018 and June 30, 2017, accretion income on PCI loans was $14.2 million and $20.4 million, respectively.

For PCI loans, improved credit loss expectations generally result in the reclassification of nonaccretable difference to accretable yield. Changes in expected cash flow not related to credit improvements or deterioration do not affect the nonaccretable difference.

The following table documents changes to the amount of accretable yield for the first six months of 2018 and 2017.

(Dollars in thousands)	2018			2017
Balance at January 1	$	316,679		$	335,074
Additions from acquisitions	4,142			44,120
Accretion	(32,188		)	(39,798		)
Reclassifications from nonaccretable difference	6,899			12,328
Changes in expected cash flows that do not affect nonaccretable difference	48,988			(1,405		)
Balance at June 30	$	344,520		$	350,319

22

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 and six months endedJune 30, 2018 and June 30, 2017:

	Three months ended June 30, 2018
(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	$	26,718		$	43,833		$	3,423		$	53,016		$	6,301		$	4,842		$	16,489		$	22,104		$	3,913		$	30,181		$	210,820
Provision	(3,139		)	866			468			5,670			(1,879		)	(114		)	1,492			289			50			4,574			8,277
Charge-offs	(8		)	(459		)	(69		)	(1,994		)	(445		)	(38		)	(289		)	(1,027		)	(37		)	(5,312		)	(9,678		)
Recoveries	93			225			1			638			4			1			110			520			101			1,330			3,023
Balance at June 30	$	23,664		$	44,465		$	3,823		$	57,330		$	3,981		$	4,691		$	17,802		$	21,886		$	4,027		$	30,773		$	212,442
	Three months ended June 30, 2017
(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
Balance at April 1	$	31,391		$	48,611		$	3,572		$	50,829		$	6,315		$	3,534		$	15,835		$	21,290		$	1,513		$	27,129		$	210,019
Provision	2,372			639			33			968			186			(214		)	155			1,054			(10		)	4,569			9,752
Charge-offs	(413		)	(235		)	—			(3,121		)	(97		)	(64		)	(222		)	(280		)	—			(4,991		)	(9,423		)
Recoveries	209			731			7			2,392			—			46			75			401			—			1,093			4,954
Balance at June 30	$	33,559		$	49,746		$	3,612		$	51,068		$	6,404		$	3,302		$	15,843		$	22,465		$	1,503		$	27,800		$	215,302
	Six months ended June 30, 2018
(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
Balance at January 1	$	24,470		$	45,005		$	4,571		$	53,697		$	6,127		$	4,689		$	15,706		$	22,436		$	3,962		$	31,204		$	211,867
Provision	(914		)	(499		)	(825		)	5,245			(892		)	—			3,004			755			157			7,497			13,528
Charge-offs	(8		)	(505		)	(69		)	(3,469		)	(1,299		)	(41		)	(1,095		)	(2,019		)	(219		)	(10,567		)	(19,291		)
Recoveries	116			464			146			1,857			45			43			187			714			127			2,639			6,338
Balance at June 30	$	23,664		$	44,465		$	3,823		$	57,330		$	3,981		$	4,691		$	17,802		$	21,886		$	4,027		$	30,773		$	212,442
	Six months ended June 30, 2017
(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
Balance at January 1	$	28,877		$	48,278		$	3,269		$	50,225		$	5,907		$	3,127		$	14,447		$	21,013		$	1,596		$	28,287		$	205,026
Provision	4,908			645			337			4,560			761			241			1,506			1,604			(93		)	6,359			20,828
Charge-offs	(490		)	(272		)	(5		)	(6,374		)	(270		)	(187		)	(472		)	(1,105		)	—			(9,019		)	(18,194		)
Recoveries	264			1,095			11			2,657			6			121			362			953			—			2,173			7,642
Balance at June 30	$	33,559		$	49,746		$	3,612		$	51,068		$	6,404		$	3,302		$	15,843		$	22,465		$	1,503		$	27,800		$	215,302

23

The following tables present the allowance for non-PCI loan and lease losses and the recorded investment in loans, by loan class, based on impairment method as of June 30, 2018 and December 31, 2017:

	June 30, 2018
(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	$	274	$	3,325	$	65	$	985	$	107	$	20	$	3,343	$	1,112	$	66	$	704	$	10,001
ALLL for loans and leases collectively evaluated for impairment	23,390		41,140		3,758		56,345		3,874		4,671		14,459		20,774		3,961		30,069		202,441
Total allowance for loan and lease losses	$	23,664	$	44,465	$	3,823	$	57,330	$	3,981	$	4,691	$	17,802	$	21,886	$	4,027	$	30,773	$	212,442
Loans and leases:
Loans and leases individually evaluated for impairment	$	2,098	$	66,172	$	1,077	$	7,652	$	1,176	$	97	$	43,953	$	27,407	$	2,911	$	2,685	$	155,228
Loans and leases collectively evaluated for impairment	712,913		10,212,569		472,375		3,089,889		612,201		296,517		3,936,892		2,577,548		247,793		1,550,243		23,708,940
Total loan and leases	$	715,011	$	10,278,741	$	473,452	$	3,097,541	$	613,377	$	296,614	$	3,980,845	$	2,604,955	$	250,704	$	1,552,928	$	23,864,168
	December 31, 2017
(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	$	185	$	3,648	$	209	$	665	$	397	$	—	$	2,733	$	1,085	$	68	$	738	$	9,728
ALLL for loans and leases collectively evaluated for impairment	24,285		41,357		4,362		53,032		5,730		4,689		12,973		21,351		3,894		30,466		202,139
Total allowance for loan and lease losses	$	24,470	$	45,005	$	4,571	$	53,697	$	6,127	$	4,689	$	15,706	$	22,436	$	3,962	$	31,204	$	211,867
Loans and leases:
Loans and leases individually evaluated for impairment	$	788	$	73,655	$	1,857	$	7,974	$	1,914	$	521	$	37,842	$	23,770	$	4,551	$	2,774	$	155,646
Loans and leases collectively evaluated for impairment	668,427		9,655,367		471,576		2,722,433		892,887		301,655		3,485,944		2,677,755		243,738		1,558,399		22,678,181
Total loan and leases	$	669,215	$	9,729,022	$	473,433	$	2,730,407	$	894,801	$	302,176	$	3,523,786	$	2,701,525	$	248,289	$	1,561,173	$	22,833,827

24

The following tables show the activity in the allowance for PCI loan losses for the three and six months endedJune 30, 2018 and June 30, 2017.

(Dollars in thousands)	Three months ended June 30, 2018			Three months ended June 30, 2017
PCI Loans
Allowance for loan and lease losses:
Balance at April 1	$	12,296		$	10,924
Provision	161			2,572
Charge-offs	(34		)	—
Recoveries	—			—
Balance at June 30	$	12,423		$	13,496
	Six months ended June 30, 2018			Six months ended June 30, 2017
Balance at January 1	$	10,026		$	13,769
Provision	2,515			(273		)
Charge-offs	(118		)	—
Recoveries	—			—
Balance at June 30	$	12,423		$	13,496

The following table shows the ending balances of PCI loans and related allowance as of June 30, 2018 and December 31, 2017:

(Dollars in thousands)	June 30, 2018		December 31, 2017
ALLL for loans acquired with deteriorated credit quality	$	12,423	$	10,026
Loans acquired with deteriorated credit quality	674,269		762,998

As of June 30, 2018 and December 31, 2017, $160.8 million and $279.8 million, respectively, in PCI loans experienced an adverse change in expected cash flows since the date of acquisition.

25

The following tables provide information on non-PCI impaired loans and leases individually evaluated as of June 30, 2018 and December 31, 2017.

	June 30, 2018
(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	$	2,098	$	—	$	2,098	$	2,431	$	274
Commercial mortgage	35,934		30,238		66,172		72,467		3,325
Other commercial real estate	375		702		1,077		1,264		65
Commercial and industrial	6,262		1,390		7,652		11,684		985
Lease financing	789		387		1,176		2,808		107
Other	97		—		97		315		20
Residential mortgage	25,529		18,424		43,953		46,684		3,343
Revolving mortgage	10,217		17,190		27,407		30,170		1,112
Construction and land development - noncommercial	544		2,367		2,911		3,633		66
Consumer	1,777		908		2,685		3,004		704
Total non-PCI impaired loans and leases	$	83,622	$	71,606	$	155,228	$	174,460	$	10,001
	December 31, 2017
(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	$	788	$	—	$	788	$	1,110	$	185
Commercial mortgage	39,135		34,520		73,655		78,936		3,648
Other commercial real estate	1,351		506		1,857		2,267		209
Commercial and industrial	6,326		1,648		7,974		10,475		665
Lease financing	1,890		24		1,914		2,571		397
Other	—		521		521		521		—
Residential mortgage	19,135		18,707		37,842		39,946		2,733
Revolving mortgage	5,875		17,895		23,770		25,941		1,085
Construction and land development - noncommercial	592		3,959		4,551		5,224		68
Consumer	2,107		667		2,774		3,043		738
Total non-PCI impaired loans and leases	$	77,199	$	78,447	$	155,646	$	170,034	$	9,728

Non-PCI impaired loans less than $500,000 that are collectively evaluated were $44.1 million and $49.1 million at June 30, 2018 and December 31, 2017, respectively.

26

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 endedJune 30, 2018 and June 30, 2017:

	Three months ended June 30, 2018				Three months ended June 30, 2017
(Dollars in thousands)	Average balance		Interest income recognized		Average balance		Interest income recognized
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	1,485	$	17	$	970	$	11
Commercial mortgage	68,113		659		74,121		651
Other commercial real estate	1,345		12		1,525		9
Commercial and industrial	7,585		76		10,159		98
Lease financing	1,842		14		1,911		14
Other	67		—		434		5
Residential mortgage	42,046		298		36,767		272
Revolving mortgage	26,388		222		8,484		62
Construction and land development - noncommercial	3,526		44		3,185		33
Consumer	2,654		28		2,052		24
Total non-PCI impaired loans and leases	$	155,051	$	1,370	$	139,608	$	1,179
	Six months ended June 30, 2018				Six months ended June 30, 2017
(Dollars in thousands)	Average balance		Interest income recognized		Average balance		Interest income recognized
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	1,320	$	28	$	1,013	$	23
Commercial mortgage	70,190		1,370		74,715		1,293
Other commercial real estate	1,529		23		1,555		17
Commercial and industrial	7,554		152		10,844		202
Lease financing	2,040		25		1,740		28
Other	34		—		315		7
Residential mortgage	40,385		573		34,864		525
Revolving mortgage	25,590		423		8,227		119
Construction and land development - noncommercial	3,815		92		2,895		66
Consumer	2,581		56		1,976		47
Total non-PCI impaired loans and leases	$	155,038	$	2,742	$	138,144	$	2,327

27

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. The majority of TDRs are included in the special mention, substandard or doubtful credit grading categories, which results in more elevated loss expectations when projecting the expected cash flows that are used to determine the allowance for loan losses associated with these loans. The more severely graded the loan, the lower the estimated expected cash flows and the greater the allowance recorded. All TDRs are individually evaluated for impairment through review of collateral values or analysis of cash flows at least annually.

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

	June 30, 2018						December 31, 2017
(Dollars in thousands)	Accruing		Nonaccruing		Total		Accruing		Nonaccruing		Total
Commercial loans
Construction and land development - commercial	$	2,050	$	228	$	2,278	$	4,089	$	483	$	4,572
Commercial mortgage	58,877		10,304		69,181		62,358		15,863		78,221
Other commercial real estate	1,039		39		1,078		1,012		788		1,800
Commercial and industrial	6,673		988		7,661		7,598		910		8,508
Lease financing	677		429		1,106		722		1,048		1,770
Other	44		126		170		521		—		521
Total commercial TDRs	69,360		12,114		81,474		76,300		19,092		95,392
Noncommercial
Residential mortgage	38,266		9,958		48,224		34,067		9,475		43,542
Revolving mortgage	19,752		6,778		26,530		17,673		5,180		22,853
Construction and land development - noncommercial	2,821		90		2,911		—		—		—
Consumer and other	2,111		574		2,685		2,351		423		2,774
Total noncommercial TDRs	62,950		17,400		80,350		54,091		15,078		69,169
Total TDRs	$	132,310	$	29,514	$	161,824	$	130,391	$	34,170	$	164,561

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

(Dollars in thousands)	June 30, 2018		December 31, 2017
Accruing TDRs:
PCI	$	18,546	$	18,163
Non-PCI	113,764		112,228
Total accruing TDRs	132,310		130,391
Nonaccruing TDRs:
PCI	253		272
Non-PCI	29,261		33,898
Total nonaccruing TDRs	29,514		34,170
All TDRs:
PCI	18,799		18,435
Non-PCI	143,025		146,126
Total TDRs	$	161,824	$	164,561

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The following table provides the types of non-PCI and PCI TDRs made during the three and six months endedJune 30, 2018 and June 30, 2017, as well as a summary of loans that were modified as a TDR during the twelve month periods ended June 30, 2018 and June 30, 2017 that subsequently defaulted during the three and six months endedJune 30, 2018 and June 30, 2017. 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, 2018						Three months ended June 30, 2017
	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 and PCI loans and leases
Interest only	1	154		2	821		3	571		1	332
Loan term extension	10	936		7	341		13	1,397		1	32
Below market interest rate	53	9,525		33	1,702		73	4,440		32	2,800
Discharged from bankruptcy	37	2,472		24	1,490		40	1,442		24	615
Total non-PCI and PCI restructurings	101	$	13,087	66	$	4,354	129	$	7,850	58	$	3,779

	Six months ended June 30, 2018						Six months ended June 30, 2017
	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 and PCI loans and leases
Interest only	2	821		2	821		3	571		1	332
Loan term extension	17	1,658		8	638		21	2,070		1	32
Below market interest rate	139	15,873		64	3,385		159	12,582		49	4,231
Discharged from bankruptcy	91	5,595		55	4,338		97	3,005		42	2,091
Total non-PCI and PCI restructurings	249	$	23,947	129	$	9,182	280	$	18,228	93	$	6,686

For the three and six months endedJune 30, 2018 and June 30, 2017, the pre-modification and post-modification outstanding recorded investments of loans modified as TDRs were not materially different.

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NOTE F - OTHER REAL ESTATE OWNED (OREO)

The following table explains changes in other real estate owned during the six months ended June 30, 2018 and June 30, 2017.

(Dollars in thousands)	Total
Balance at December 31, 2016	$	61,231
Additions	21,891
Additions acquired in the Guaranty Bank acquisition	55
Sales	(20,236		)
Write-downs	(2,160		)
Balance at June 30, 2017	$	60,781
Balance at December 31, 2017	$	51,097
Additions	11,868
Additions acquired in the HomeBanc acquisition	2,135
Sales	(15,769		)
Write-downs	(2,698		)
Balance at June 30, 2018	$	46,633

At June 30, 2018 and December 31, 2017, BancShares had $15.1 million and $19.8 million, respectively, of foreclosed residential real estate property in OREO. The recorded investment in consumer mortgage loans collateralized by residential real estate property in the process of foreclosure was $25.3 million and $26.9 million at June 30, 2018 and December 31, 2017, respectively.

NOTE G - FDIC SHARED-LOSS PAYABLE

BancShares completed six FDIC-assisted transactions with shared-loss agreements during the period beginning in 2009 through 2011. Prior to its merger into BancShares, Bancorporation completed three FDIC-assisted transactions with shared-loss agreements.

As of June 30, 2018, shared-loss agreements are still active for Georgian Bank (GB) and United Western Bank (UWB). Shared-loss protection remains for single family residential loans acquired from UWB and GB in the amount of $62.1 million.

The shared-loss agreements for two FDIC-assisted transactions, First Regional Bank (FRB) and UWB, include provisions related to payments that may be owed to the FDIC at the termination of the agreements (clawback liability). The clawback liability represents a payment by BancShares to the FDIC if actual cumulative losses on acquired covered assets are lower than the cumulative losses originally estimated by the FDIC at the time of acquisition and is recorded in the Consolidated Balance Sheets as a payable to the FDIC under the relevant shared-loss agreements. As of June 30, 2018 and December 31, 2017, the estimated clawback liability was $103.5 million and $101.3 million, respectively. The clawback liability payment dates for FRB and UWB are March 2020 and March 2021, respectively.

The following table provides changes in the FDIC shared-loss payable for the three and six months endedJune 30, 2018 and June 30, 2017.

	Three months ended June 30				Six months ended June 30
(Dollars in thousands)	2018		2017		2018		2017
Beginning balance	$	102,466	$	98,013	$	101,342	$	97,008
Amortization	1,001		963		1,993		1,917
Adjustments related to changes in assumptions	20		150		152		201
Ending balance	$	103,487	$	99,126	$	103,487	$	99,126

NOTE H - MORTGAGE SERVICING RIGHTS

Our portfolio of residential mortgage loans serviced for third parties was $2.87 billion and $2.81 billion as of June 30, 2018 and December 31, 2017, respectively.  These loans were originated by BancShares and sold to third parties on a non-recourse basis with servicing rights retained.  These retained servicing rights are recorded as a servicing asset and reported in other intangible assets on the Consolidated Balance Sheets. The mortgage servicing rights are initially recorded at fair value and then carried at the lower of amortized cost or fair market value.

30

The activity of the servicing asset for the three and six months endedJune 30, 2018 and 2017 is presented in the following table:

	Three months ended June 30						Six months ended June 30
(Dollars in thousands)	2018			2017			2018			2017
Beginning balance	$	21,659		$	20,771		$	21,945		$	20,415
Servicing rights originated	1,430			1,123			2,630			2,825
Amortization	(1,432		)	(1,370		)	(2,918		)	(2,720		)
Valuation allowance reversal	—			—			—			4
Ending balance	$	21,657		$	20,524		$	21,657		$	20,524

The amortization expense related to mortgage servicing rights is included as a reduction of mortgage income in the Consolidated Statements of Income. Mortgage income for the three and six months ended June 30, 2018 and the three months ended June 30, 2017 did not include any impairment compared to an impairment reversal of $4 thousand for the six months ended June 30, 2017.

Contractually specified mortgage servicing fees, late fees, and ancillary fees earned for both the three months ended June 30, 2018 and 2017 were $1.9 million and reported in mortgage income in the Consolidated Statements of Income. For the six months ended June 30, 2018 and 2017, contractually specified mortgage servicing fees, late fees and ancillary fees earned were $3.8 million and $3.6 million, respectively.

Valuation of mortgage servicing rights is performed using a pooling methodology. Similar loans are pooled together and evaluated on a discounted earnings basis to determine the present value of future earnings. Key economic assumptions used to value mortgage servicing rights as of June 30, 2018 and December 31, 2017 were as follows:

	June 30, 2018			December 31, 2017
Discount rate - conventional fixed loans	9.86		%	9.41		%
Discount rate - all loans excluding conventional fixed loans	10.86		%	10.41		%
Weighted average constant prepayment rate	8.43		%	10.93		%
Weighted average cost to service a loan	$	72.79		$	64.03

The discount rate is based on the 10-year U.S. Treasury rate plus 700 basis points for conventional fixed loans and 800 basis points for all other loans. The 700 and 800 basis points are used as a risk premium when calculating the discount rate. The repayment rate is derived from the Public Securities Association Standard Prepayment model. The average cost to service a loan is based on the number of loans serviced and the total costs to service the loans.

NOTE I - REPURCHASE AGREEMENTS

BancShares utilizes securities sold under agreements to repurchase to facilitate the needs of customers and secure wholesale funding needs. Repurchase agreements are transactions whereby BancShares offers to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates BancShares to repurchase the security on an agreed upon date at an agreed upon repurchase price plus interest at an agreed upon rate. Securities sold under agreements to repurchase are recorded at the amount of cash received in connection with the transaction and are generally reflected as short-term borrowings on the Consolidated Balance Sheets.

BancShares monitors collateral levels on a continuous basis and maintains records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security, and segregates the security from general assets in accordance with regulations governing custodial holdings of securities. The primary risk with repurchase agreements is market risk associated with the investments securing the transactions, as additional collateral may be required based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with safekeeping agents. The carrying value of available for sale investment securities pledged as collateral under repurchase agreements was $511.8 million and $684.2 million at June 30, 2018 and December 31, 2017, respectively.

The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included overnight and continuous U.S. Treasury securities totaling $499.7 million at June 30, 2018 and $556.2 million at December 31, 2017. At December 31, 2017, there also were U.S. Treasury securities with a remaining contractual maturity of 30-90 days totaling $30.0 million for a gross amount of $586.2 million.

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NOTE J - ESTIMATED FAIR VALUES

Fair value estimates are intended to represent the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Where there is no active market for a financial instrument, BancShares has made estimates using discounted cash flows or other valuation techniques. Inputs used in these valuation techniques are subjective in nature, involve uncertainties and require significant judgment and therefore can only be derived within a range of precision. Accordingly, the derived fair value estimates presented below are not necessarily indicative of the amounts BancShares would realize in a current market exchange.

ASC 820, Fair Value Measurements and Disclosures, indicates that assets and liabilities are recorded at fair value according to a fair value hierarchy comprised of three levels. The levels are based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The level within the fair value hierarchy for an asset or liability is based on the highest level of input that is significant to the fair value measurement (with Level 1 considered highest and Level 3 considered lowest). A brief description of each level follows:

• Level 1 values are based on quoted prices for identical instruments in active markets.

• Level 2 values are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market.

• Level 3 values are derived from valuation techniques in which one or more significant inputs or assumptions are not observable in the market. These unobservable inputs and assumptions reflect estimates that market participants would use in pricing the asset or liability. Valuation techniques include the use of discounted cash flow models and similar techniques.

BancShares' management reviews any changes to its valuation methodologies to ensure they are appropriate and supportable, and refines valuation methodologies as more market-based data becomes available. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period.

The methodologies used to estimate the fair value of financial assets and financial liabilities are discussed below:

Investment securities available for sale. Investment securities available for sale are carried at fair value. U.S. Treasury, government agency and mortgage-backed securities are generally measured at fair value using a third party pricing service. The third party provider evaluates securities based on comparable investments with trades and market data and will utilize pricing models that use a variety of inputs, such as benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids and offers as needed. These securities are generally classified as Level 2. Corporate bonds and trust preferred securities are generally measured at fair value based on indicative bids from broker-dealers and are not directly observable. These securities are considered Level 3.

Marketable equity securities. Equity securities are measured at fair value using observable closing prices and the valuation also considers the amount of market activity by examining the trade volume of each security. Equity securities are classified as Level 1 if they are traded in an active market and as Level 2 if the observable closing price is from a less than active market.

Loans held for sale. Certain residential real estate loans are originated to be sold to investors are carried at fair value based on quoted market prices for similar types of loans. Accordingly, the inputs used to calculate fair value of originated residential real estate loans held for sale are classified as Level 2 inputs. Portfolio loans that are subsequently transferred to held for sale to be sold in the secondary market are carried at the lower of amortized cost or fair value. The fair value of the transferred portfolio loans is based on the quoted prices and is considered a Level 1 input.

Net loans and leases (PCI and Non-PCI). Fair value is estimated based on discounted future cash flows using the current interest rates at which loans with similar terms would be made to borrowers of similar credit quality. The inputs used in the fair value measurements for loans and leases are considered Level 3 inputs.

FHLB stock. The carrying amount of FHLB stock is a reasonable estimate of fair value as these securities are not readily marketable and are evaluated for impairment based on the ultimate recoverability of the par value. BancShares considers positive and negative evidence, including the profitability and asset quality of the issuer, dividend payment history and recent redemption experience, when determining the ultimate recoverability of the par value. BancShares believes its investment in FHLB stock is ultimately recoverable at par. The inputs used in the fair value measurement for the FHLB stock are considered Level 2 inputs.

32

Mortgage servicing rights. Mortgage servicing rights are carried at the lower of amortized cost or market and are, therefore, carried at fair value only when fair value is less than the amortized cost. The fair value of mortgage servicing rights is performed using a pooling methodology. Similar loans are pooled together and a model that relies on discount rates, estimates of prepayment rates and the weighted average cost to service the loans is used to determine the fair value. The inputs used in the fair value measurement for mortgage servicing rights are considered Level 3 inputs.

Deposits. For non-time deposits, carrying value is a reasonable estimate of fair value. The fair value of time deposits is estimated by discounting future cash flows using the interest rates currently offered for deposits of similar remaining maturities. The inputs used in the fair value measurement for deposits are considered Level 2 inputs.    

Long-term obligations. For long-term obligations, the fair values are determined based on recent trades or sales of the actual security if available, otherwise, fair values are estimated by discounting future cash flows using current interest rates for similar financial instruments. The inputs used in the fair value measurement for long-term obligations are considered Level 2 inputs.

Payable to the FDIC for shared-loss agreements. The fair value of the payable to the FDIC for shared-loss agreements is determined by the projected cash flows based on expected payments to the FDIC in accordance with the shared-loss agreements. Cash flows are discounted using current discount rates to reflect the timing of the estimated amounts due to the FDIC. The inputs used in the fair value measurement for the payable to the FDIC are considered Level 3 inputs.

Off-balance-sheet commitments and contingencies. Carrying amounts are reasonable estimates of the fair values for such financial instruments. Carrying amounts include unamortized fee income and, in some cases, reserves for any credit losses from those financial instruments. These amounts are not material to BancShares' financial position.

For all other financial assets and financial liabilities, the carrying value is a reasonable estimate of the fair value as of June 30, 2018 and December 31, 2017. The carrying value and fair value for these assets and liabilities are equivalent because they are relatively short term in nature and there is no interest rate or credit risk that would cause the fair value to differ from the carrying value. Cash and due from banks is classified on the fair value hierarchy as Level 1. Overnight investments, income earned not collected, short-term borrowings and accrued interest payable are considered Level 2.

The table presents the carrying values and estimated fair values for financial instruments as of June 30, 2018 and December 31, 2017.

(Dollars in thousands)	June 30, 2018				December 31, 2017
	Carrying value		Fair value		Carrying value		Fair value
Cash and due from banks	$	260,525	$	260,525	$	336,150	$	336,150
Overnight investments	1,223,311		1,223,311		1,387,927		1,387,927
Investment securities available for sale	4,783,507		4,783,507		7,180,180		7,180,180
Investment securities held to maturity	2,299,774		2,302,093		76		81
Marketable equity securities	107,264		107,264		—		—
Loans held for sale	58,961		58,961		51,179		51,179
Net loans and leases	24,313,572		23,704,523		23,374,932		22,257,803
Income earned not collected	99,567		99,567		95,249		95,249
Federal Home Loan Bank stock	22,658		22,658		52,685		52,685
Mortgage servicing rights	21,657		28,668		21,945		26,170
Deposits	30,408,884		30,362,605		29,266,275		29,230,768
Short-term borrowings	613,993		613,993		693,807		693,807
Long-term obligations	241,360		250,823		870,240		852,112
Payable to the FDIC for shared-loss agreements	103,487		103,966		101,342		102,684
Accrued interest payable	1,909		1,909		3,952		3,952

33

Among BancShares' assets and liabilities, investment securities available for sale, marketable equity securities and loans held for sale are reported at their fair values on a recurring basis. For assets and liabilities carried at fair value on a recurring basis, the following table provides fair value information as of June 30, 2018 and December 31, 2017.

	June 30, 2018
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	1,503,974	$	—	$	1,503,974	$	—
Government agency	131,035		—		131,035		—
Mortgage-backed securities	3,034,065		—		3,034,065		—
Corporate bonds	108,790		—		—		108,790
Other	5,643		—		—		5,643
Total investment securities available for sale	$	4,783,507	$	—	$	4,669,074	$	114,433
Marketable equity securities	$	107,264	$	21,667	$	85,597	$	—
Loans held for sale	$	58,961	$	—	$	58,961	$	—
	December 31, 2017
			Fair value measurements using:
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	1,657,864	$	—	$	1,657,864	$	—
Government agency	8,670		—		8,670		—
Mortgage-backed securities	5,340,756		—		5,340,756		—
Equity securities	105,208		19,341		85,867		—
Corporate bonds	59,963		—		59,963		—
Other	7,719		—		7,719		—
Total investment securities available for sale	$	7,180,180	$	19,341	$	7,160,839	$	—
Loans held for sale	$	51,179	$	—	$	51,179	$	—

During the three months ended June 30, 2018, there were no transfers between levels. For the six months ended June 30, 2018, there were transfers from Level 2 to Level 3 of $59.7 million and $5.6 million of corporate bonds and other investment securities available for sale, respectively. The transfers were due to a lack of observable inputs and trade activity for those securities. There were no transfers between levels for the three and six months ended June 30, 2017.

The following tables summarize activity for Level 3 assets:

	Three months ended June 30, 2018
(Dollars in thousands)	Corporate bonds			Other
Balance at April 1, 2018	$	59,653		$	5,618
Amounts included in net income	48			7
Unrealized net (losses) gains included in other comprehensive income	(97		)	18
Purchases	51,591			—
Sales	(2,405		)	—
Balance at June 30, 2018	$	108,790		$	5,643

	Six months ended June 30, 2018
(Dollars in thousands)	Corporate bonds			Other
Balance at January 1, 2018	$	—		$	—
Transfers in	59,653			5,618
Amounts included in net income	48			7
Unrealized net (losses) gains included in other comprehensive income	(97		)	18
Purchases	51,591			—
Sales	(2,405		)	—
Balance at June 30, 2018	$	108,790		$	5,643

34

The following table presents quantitative information about Level 3 fair value measurements for fair value on a recurring basis at June 30, 2018.

(Dollars in thousands)			June 30, 2018
Level 3 assets	Valuation technique	Significant unobservable input	Fair Value
Corporate bonds	Indicative bid provided by broker	Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company	$	108,790
Other	Indicative bid provided by broker	Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company	5,643

Fair Value Option

BancShares has elected the fair value option for residential real estate loans originated to be sold. This election reduces certain timing differences in the Consolidated Statement of Income and better aligns with the management of the portfolio from a business perspective. The changes in fair value are recorded as a component of mortgage income and included gains of $700 thousand and $291 thousand for the three months ended June 30, 2018 and June 30, 2017, respectively. For the six months ended June 30, 2018 and 2017, the changes in fair value were gains of $245 thousand and $3.5 million, respectively.

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential real estate originated for sale measured at fair value as of June 30, 2018 and December 31, 2017.

	June 30, 2018
(Dollars in thousands)	Fair Value		Aggregate Unpaid Principal Balance		Difference
Originated loans held for sale	$	58,961	$	57,334	$	1,627
	December 31, 2017
	Fair Value		Aggregate Unpaid Principal Balance		Difference
Originated loans held for sale	$	51,179	$	49,796	$	1,383

No originated loans held for sale were 90 or more days past due or on nonaccrual status as of June 30, 2018 or December 31, 2017.

Certain other assets are adjusted to their fair value on a nonrecurring basis, including impaired loans, OREO, and goodwill, which are periodically tested for impairment, and mortgage servicing rights, which are carried at the lower of amortized cost or market. Non-impaired loans held for investment, deposits, short-term borrowings and long-term obligations are not reported at fair value.

Impaired loans are deemed to be at fair value if an associated allowance or current period charge-off has been recorded. The value of impaired loans is determined by either collateral valuations or discounted present value of the expected cash flow calculations. Collateral values are determined using appraisals or other third-party value estimates of the subject property with discounts generally between 6 and 11 percent applied for estimated holding and selling costs and other external factors that may impact the marketability of the property. Expected cash flows are determined using expected payment information at the individual loan level, discounted using the effective interest rate. The effective interest rate generally ranges between 2 and 18 percent.

OREO that has been acquired or written down in the current year is deemed to be at fair value, which uses asset valuations. Asset values are determined using appraisals or other third-party value estimates of the subject property with discounts generally between 6 and 11 percent applied for estimated holding and selling costs and other external factors that may impact the marketability of the property. Changes to the value of the assets between scheduled valuation dates are monitored through continued communication with brokers and monthly reviews by the asset manager assigned to each asset. If there are any significant changes in the market or the subject property, valuations are adjusted or new appraisals ordered to ensure the reported values reflect the most current information.

35

For financial assets and liabilities carried at fair value on a nonrecurring basis, the following table provides fair value information as of June 30, 2018 and December 31, 2017.

	June 30, 2018
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Impaired loans	$	74,301	$	—	$	—	$	74,301
Other real estate remeasured during current year	21,105		—		—		21,105
	December 31, 2017
			Fair value measurements using:
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Impaired loans	$	72,539	$	—	$	—	$	72,539
Other real estate remeasured during current year	40,167		—		—		40,167

No financial liabilities were carried at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017.

NOTE K - EMPLOYEE BENEFIT PLANS

BancShares sponsors noncontributory defined benefit pension plans for its qualifying employees (BancShares Plan) and former First Citizens Bancorporation, Inc. employees (Bancorporation Plan). The service cost component of net periodic benefit cost is included in salaries and wages while all other non-service cost components are included in other noninterest expense.

BancShares Plan

For the three and six months endedJune 30, 2018 and 2017, the components of net periodic benefit cost are as follows:

	Three months ended June 30						Six months ended June 30
(Dollars in thousands)	2018			2017			2018			2017
Service cost	$	3,362		$	2,934		$	6,791		$	6,310
Interest cost	7,131			7,069			14,188			14,449
Expected return on assets	(11,976		)	(10,307		)	(23,933		)	(21,005		)
Amortization of prior service cost	20			53			40			105
Amortization of net actuarial loss	3,548			2,193			6,794			4,427
Net periodic benefit cost	$	2,085		$	1,942		$	3,880		$	4,286

Bancorporation Plan

For the three and six months endedJune 30, 2018 and 2017, the components of net periodic benefit cost are as follows:

	Three months ended June 30						Six months ended June 30
(Dollars in thousands)	2018			2017			2018			2017
Service cost	$	624		$	670		$	1,286		$	1,341
Interest cost	1,592			1,682			3,179			3,365
Expected return on assets	(3,110		)	(2,796		)	(6,216		)	(5,592		)
Amortization of net actuarial loss	86			214			157			428
Net periodic benefit cost	$	(808	)	$	(230	)	$	(1,594	)	$	(458	)

No contributions were made during the three and six months endedJune 30, 2018 to the BancShares or Bancorporation pension plans. We anticipate making a $50.0 million contribution to the BancShares plan during 2018.

NOTE L - COMMITMENTS AND CONTINGENCIES

To meet the financing needs of its customers, BancShares and its subsidiaries have financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit, standby letters of credit and recourse obligations on mortgage loans sold. These instruments involve elements of credit, interest rate or liquidity risk.

Commitments to extend credit are legally binding agreements to lend to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. Established credit standards control the credit risk exposure associated with these commitments. In some cases, BancShares requires that collateral be pledged to secure the commitment, including cash deposits, securities and other assets.

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Standby letters of credit are commitments guaranteeing performance of a customer to a third party. Those commitments are primarily issued to support public and private borrowing arrangements, and the fair value of those commitments is not material. To mitigate its risk, BancShares’ credit policies govern the issuance of standby letters of credit. The credit risk related to the issuance of these letters of credit is essentially the same as that involved in extending loans to clients and, therefore, these letters of credit are collateralized when necessary.

The following table presents the commitments to extend credit and unfunded commitments as of June 30, 2018 and December 31, 2017:

(Dollars in thousands)	June 30, 2018		December 31, 2017
Unused commitments to extend credit	$	10,119,455	$	9,629,365
Standby letters of credit	87,574		81,530
Unfunded commitments for investments in affordable housing projects	77,622		61,819

Affordable housing project investments were $150.5 million and $128.0 million as of June 30, 2018 and December 31, 2017, respectively, and are included in other assets on the Consolidated Balance Sheets.

Pursuant to standard representations and warranties relating to residential mortgage loan sales sold on a non-recourse basis, contingent obligations exist for various events that may occur following the loan sale. If underwriting or documentation deficiencies are discovered at any point in the life of the loan or if the loan fails to perform per the terms of the loan purchase agreement, typically within 180 days from the date of sale, the investor may require BancShares to repurchase the loan or to repay a portion of the sale proceeds. Other liabilities included reserves of $830 thousand and $882 thousand as of June 30, 2018 and December 31, 2017, respectively, for estimated losses arising from these standard representation and warranty provisions.

BancShares and various subsidiaries have been named as defendants in legal actions arising from their normal business activities in which damages in various amounts are claimed. BancShares is also exposed to litigation risk relating to the prior business activities of banks from which assets were acquired and liabilities assumed in the various merger transactions. Although the amount of any ultimate liability with respect to such matters cannot be determined, in the opinion of management, any such liability will not have a material effect on BancShares’ consolidated financial statements.

NOTE M - ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

Accumulated other comprehensive loss included the following as of June 30, 2018 and December 31, 2017:

	June 30, 2018									December 31, 2017
(Dollars in thousands)	Accumulated other comprehensive loss			Deferred tax benefit			Accumulated other comprehensive loss, net of tax			Accumulated other comprehensive loss			Deferred tax benefit			Accumulated other comprehensive loss, net of tax
Unrealized losses on securities available for sale	$	(74,671	)	$	(17,175	)	$	(57,496	)	$	(48,834	)	$	(17,889	)	$	(30,945	)
Unrealized losses on securities available for sale transferred to held to maturity	(105,034		)	(24,158		)	(80,876		)	—			—			—
Funded status of defined benefit plans	(138,008		)	(31,742		)	(106,266		)	(144,999		)	(53,650		)	(91,349		)
Total	$	(317,713	)	$	(73,075	)	$	(244,638	)	$	(193,833	)	$	(71,539	)	$	(122,294	)

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The following table highlights changes in accumulated other comprehensive (loss) income by component for the three and six months endedJune 30, 2018 and June 30, 2017:

	Three months ended June 30, 2018
(Dollars in thousands)	Unrealized (losses) gains on securities available for sale1			Unrealized losses on securities available for sale transferred to held to maturity1			Defined benefit pension items1			Total
Beginning balance	$	(121,243	)	$	—		$	(109,080	)	$	(230,323	)
Cumulative effect adjustments	—			—			—			—
Other comprehensive loss before reclassifications	63,747			(84,321		)	—			(20,574		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			3,445			2,814			6,259
Net current period other comprehensive (loss) income	63,747			(80,876		)	2,814			(14,315		)
Ending balance	$	(57,496	)	$	(80,876	)	$	(106,266	)	$	(244,638	)
	Three months ended June 30, 2017
	Unrealized (losses) gains on securities available for sale1			Unrealized losses on securities available for sale transferred to held to maturity1			Defined benefit pension items1			Total
Beginning balance	$	(23,183	)	$	—		$	(87,758	)	$	(110,941	)
Other comprehensive income before reclassifications	8,646			—			—			8,646
Amounts reclassified from accumulated other comprehensive (loss) income	(2,111		)	—			1,563			(548		)
Net current period other comprehensive income	6,535			—			1,563			8,098
Ending balance	$	(16,648	)	$	—		$	(86,195	)	$	(102,843	)
	Six months ended June 30, 2018
	Unrealized (losses) gains on securities1			Unrealized losses on securities available for sale transferred to held to maturity1			Defined benefit pension items1			Total
Beginning balance	$	(30,945	)	$	—		$	(91,349	)	$	(122,294	)
Cumulative effect adjustments	(29,752		)	—			(20,300		)	(50,052		)
Other comprehensive income before reclassifications	3,201			(84,321		)	—			(81,120		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			3,445			5,383			8,828
Net current period other comprehensive income	3,201			(80,876		)	5,383			(72,292		)
Ending balance	$	(57,496	)	$	(80,876	)	$	(106,266	)	$	(244,638	)
	Six months ended June 30, 2017
	Unrealized (losses) gains on securities1			Unrealized losses on securities available for sale transferred to held to maturity1			Defined benefit pension items1			Total
Beginning balance	$	(45,875	)	$	—		$	(89,317	)	$	(135,192	)
Other comprehensive income before reclassifications	31,323			—			—			31,323
Amounts reclassified from accumulated other comprehensive (loss) income	(2,096		)	—			3,122			1,026
Net current period other comprehensive income	29,227			—			3,122			32,349
Ending balance	$	(16,648	)	$	—		$	(86,195	)	$	(102,843	)

¹ All amounts are net of tax. Amounts in parentheses indicate debits.

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The following table presents the amounts reclassified from accumulated other comprehensive income (loss) and the line item affected in the statement where net income is presented for the three and six months endedJune 30, 2018 and June 30, 2017:

(Dollars in thousands)	Three months ended June 30, 2018
Details about accumulated other comprehensive income (loss)	Amounts reclassified from accumulated other comprehensive income (loss)1			Affected line item in the statement where net income is presented
Amortization of unrealized losses on securities available for sale transferred to held to maturity	$	(4,473	)	Other
	1,028			Income taxes
	$	(3,445	)	Net Income
Amortization of defined benefit pension items
Prior service costs	$	(20	)	Salaries and wages
Actuarial losses	(3,634		)	Other
	(3,654		)	Income before income taxes
	840			Income taxes
	$	(2,814	)	Net income
Total reclassifications for the period	$	(6,259	)
	Three months ended June 30, 2017
Details about accumulated other comprehensive income (loss)	Amounts reclassified from accumulated other comprehensive income (loss)1			Affected line item in the statement where net income is presented
Unrealized gains and losses on securities available for sale	$	3,351		Securities gains, net
	(1,240		)	Income taxes
	$	2,111		Net income
Amortization of defined benefit pension items
Prior service costs	$	(53	)	Salaries and wages
Actuarial losses	(2,407		)	Other
	(2,460		)	Income before income taxes
	897			Income taxes
	$	(1,563	)	Net income
Total reclassifications for the period	$	548
	Six months ended June 30, 2018
Details about accumulated other comprehensive income (loss)	Amount reclassified from accumulated other comprehensive income (loss)1			Affected line item in the statement where net income is presented
Amortization of unrealized losses on securities available for sale transferred to held to maturity	$	(4,473	)	Other
	1,028			Income taxes
	$	(3,445	)	Net income
Amortization of defined benefit pension items
Prior service costs	$	(40	)	Salaries and wages
Actuarial losses	(6,951		)	Other
	(6,991		)	Employee benefits
	1,608			Income taxes
	$	(5,383	)	Net income
Total reclassifications for the period	$	(8,828	)
	Six months ended June 30, 2017
Details about accumulated other comprehensive income (loss)	Amount reclassified from accumulated other comprehensive income (loss)1			Affected line item in the statement where net income is presented
Unrealized gains and losses on securities available for sale	$	3,327		Securities gains, net
	(1,231		)	Income taxes
	$	2,096		Net income
Amortization of defined benefit pension items
Prior service costs	$	(105	)	Salaries and wages
Actuarial losses	(4,855		)	Other
	(4,960		)	Employee benefits
	1,838			Income taxes
	$	(3,122	)	Net income
Total reclassifications for the period	$	(1,026	)

¹ Amounts in parentheses indicate debits to profit/loss.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s discussion and analysis (MD&A) of earnings and related financial data are presented to assist in understanding the financial condition and results of operations of First Citizens BancShares, Inc. and Subsidiaries (BancShares). This discussion and analysis should be read in conjunction with the unaudited consolidated financial statements and related notes presented within this report along with our financial statements and related MD&A of financial condition and results of operations included in our 2017 Annual Report on Form 10-K. Intercompany accounts and transactions have been eliminated. Although certain amounts for prior years have been reclassified to conform to statement presentations for 2018, the reclassifications had no effect on shareholders’ equity or net income as previously reported. Unless otherwise noted, the terms “we,” “us” and “BancShares” refer to the consolidated financial position and consolidated results of operations for BancShares.

EXECUTIVE OVERVIEW

BancShares conducts its banking operations through its wholly-owned subsidiary First-Citizens Bank & Trust Company (FCB), a state-chartered bank organized under the laws of the state of North Carolina.

BancShares’ earnings and cash flows are primarily derived from our commercial and retail banking activities. We gather deposits from retail and commercial customers and also secure funding through various non-deposit sources. We invest the liquidity generated from these funding sources in interest-earning assets, including loans and leases, investment securities and overnight investments. We also invest in bank premises, hardware, software, furniture and equipment used to conduct our commercial and retail banking business. We provide treasury services products, cardholder and merchant services, wealth management services and various other products and services typically offered by commercial banks. The fees and service charges generated from these products and services are primary sources of noninterest income which is an essential component of our total revenue.

Interest rates have presented significant challenges to commercial banks' efforts to generate earnings and shareholder value. Our strategy continues to focus on maintaining an interest rate risk profile that will benefit net interest income in a rising rate environment. Management drives to this goal by focusing on core customer deposits and loans in the targeted interest rate risk profile. Additionally, our initiatives focus on growth of noninterest income sources, control of noninterest expenses, optimization of our branch network, and further enhancements to our technology and delivery channels. Refer to our Form 10-K for the year ended December 31, 2017 for further discussion of our strategy.

Significant Events in 2018

On July 25, 2018, FCB and Palmetto Heritage Bancshares, Inc. (Palmetto) announced the signing of a definitive merger agreement. The agreement provides for the acquisition of Pawley's Island, SC-based Palmetto Heritage Bancshares by FCB. This acquisition is expected to close during the fourth quarter of 2018.

On June 27, 2018, FCB and Capital Commerce Bancorp, Inc. (Capital Commerce) entered into a definitive merger agreement. The agreement provides for the acquisition of Milwaukee, Wisconsin-based Capital Commerce by FCB. This acquisition is expected to close no later than the fourth quarter of 2018.

On May 1, 2018, FCB completed the merger of Tampa, Florida-based HomeBancorp, Inc. (HomeBancorp) and its subsidiary, HomeBanc, into FCB.

RECENT ECONOMIC AND INDUSTRY DEVELOPMENTS

Various external factors influence the focus of our business efforts and the results of our operations can change significantly based on those external factors. Second quarter2018 national economic results indicate solid labor market conditions and strong gains in employment, counterpoised by moderated growth rates in household spending and business capital spending. The national unemployment rate declined from 4.1 percent in March 2018 to 4.0 percent in June 2018. According to the U.S. Department of Labor, the U.S. economy added approximately 632,000 new nonfarm payroll jobs during the second quarter of 2018. The U.S. housing market remains stable as a result of solid housing demand fueled by low mortgage interest rates, economic growth and job creation.

The Federal Reserve’s Federal Open Market Committee (FOMC) indicated in the second quarter that the U.S. labor market continued to strengthen and economic activity has been rising at a solid rate. In view of realized and expected labor market conditions and inflation, the FOMC decided to raise the target range for the federal funds rate by 25 basis points to 1.75 to 2.0 percent. In determining the timing and size of future adjustments to the target range for the federal funds rates, the FOMC will assess realized and expected economic conditions relative to its objectives of maximum employment and 2.0 percent inflation.

The trends in the banking industry are similar to those of the broader economy as shown in the latest national banking results from the first quarter of 2018. FDIC-insured institutions reported a 27.5 percent increase in net income compared to the first

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quarter of 2017 as a result of growth in net interest income, higher noninterest income and a lower effective tax rate due to the Tax Cuts and Jobs Act of 2017 (Tax Act). Using the higher effective tax rate before the enactment of the Tax Act, estimated net income for the first quarter of 2018 would have increased 12.6 percent compared to the same period in 2017. These improvements to net income were partially offset by higher loan-loss provisions and increased noninterest expense. Banking industry average net interest margin was 3.32 percent in the first quarter of 2018, up from 3.19 percent in the first quarter of 2017. Total loans and leases increased by 4.9 percent over the past twelve months due to growth in commercial and industrial loans, residential mortgage loans, credit cards and nonfarm nonresidential loans.

EARNINGS PERFORMANCE SUMMARY

BancShares' consolidated net income for the second quarter of 2018 was $93.3 million, or $7.77 per share, compared to $100.2 million, or $8.35 per share, for the first quarter of 2018, and $134.7 million, or $11.21 per share, for the corresponding period of 2017. BancShares’ current quarter results generated an annualized return on average assets of 1.08 percent and an annualized return on average equity of 11.00 percent, compared to respective returns of 1.19 percent and 12.20 percent for the first quarter of 2018, and 1.58 percent and 17.10 percent for the second quarter of 2017. Net interest margin for the second quarter of 2018 was 3.64 percent, compared to 3.57 percent for the first quarter of 2018 and 3.28 percent for the second quarter of the prior year.

For the six months ended June 30, 2018, net income was $193.5 million, or $16.11 per share, compared to $202.3 million, or $16.84 per share, reported for the same period of 2017. Annualized returns on average assets and average equity were 1.13 percent and 11.59 percent, respectively, for the six months ended June 30, 2018, compared to 1.20 percent and 13.11 percent, respectively, for the same period a year earlier. Year-to-date 2018 earnings included a pre-tax gain of $25.7 million resulting from the extinguishment of Federal Home Loan Bank (FHLB) debt obligations as well as favorable impacts from the Tax Cuts and Jobs Act of 2017 (Tax Act), which reduced the federal tax rate to 21.0 percent. Year-to-date 2017 earnings included pre-tax acquisition gains of $134.7 million recognized in connection with the FDIC-assisted transactions of Guaranty Bank (Guaranty) and Harvest Community Bank (HCB).

Key highlights in the second quarter of 2018 include:

• Loans grew by $926.4 million to $24.54 billion, or by 15.7 percent on an annualized basis, from March 31, 2018, due to the HomeBancorp acquisition and originated portfolio growth.

• Deposits increased $439.6 million to $30.41 billion, or by 5.9 percent on an annualized basis, from March 31, 2018, primarily due to the deposit balances acquired from HomeBancorp and organic growth in demand deposit and interest-bearing savings and checking account balances.

• Net interest income increased $11.8 million, or by 4.1 percent, compared to the first quarter of 2018. The increase was primarily due to higher non-purchased credit impaired (non-PCI) loan balances and yields, improved investment yields and a decline in interest expense.

• The taxable-equivalent net interest margin increased 7 basis points to 3.64 percent, compared to the first quarter of 2018, primarily due to higher loan yields and improved loan mix, improved investment yields and reductions of debt balances, offset by lower PCI interest income.

• BancShares remained well capitalized with a Tier 1 risk-based capital ratio and common equity Tier 1 ratio of 13.06 percent, total risk-based capital ratio of 14.43 percent and leverage capital ratio of 9.99 percent at June 30, 2018.

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Table 1

Selected Quarterly Data

	2018						2017										Six months ended June 30
	Second			First			Fourth				Third			Second
(Dollars in thousands, except share data)	Quarter			Quarter			Quarter				Quarter			Quarter			2018			2017
SUMMARY OF OPERATIONS
Interest income	$	303,877		$	292,601		$	285,958			$	284,333		$	272,542		$	596,478		$	533,399
Interest expense	7,658			8,164			11,189				11,158			10,933			15,822			21,447
Net interest income	296,219			284,437			274,769				273,175			261,609			580,656			511,952
Provision (credit) for loan and lease losses	8,438			7,605			(2,809		)		7,946			12,324			16,043			20,555
Net interest income after provision for loan and lease losses	287,781			276,832			277,578				265,229			249,285			564,613			491,397
Gain on acquisitions	—			—			—				—			122,728			—			134,745
Noninterest income excluding gain on acquisitions	100,927			122,684			108,606				95,850			94,913			223,611			182,542
Noninterest expense	265,993			268,063			263,073				257,430			255,047			534,056			491,746
Income before income taxes	122,715			131,453			123,111				103,649			211,879			254,168			316,938
Income taxes	29,424			31,222			68,704				36,585			77,219			60,646			114,657
Net income	$	93,291		$	100,231		$	54,407			$	67,064		$	134,660		$	193,522		$	202,281
Net interest income, taxable equivalent	$	297,021		$	285,248		$	276,002			$	274,272		$	262,549		$	582,269		$	514,142
PER SHARE DATA
Net income	$	7.77		$	8.35		$	4.53			$	5.58		$	11.21		$	16.11		$	16.84
Cash dividends	0.35			0.35			0.35				0.30			0.30			0.70			0.60
Market price at period end (Class A)	403.30			413.24			403.00				373.89			372.70			403.30			372.70
Book value at period end	286.99			280.77			277.60				275.91			269.75			286.99			269.75
SELECTED QUARTERLY AVERAGE BALANCES
Total assets	$	34,673,927		$	34,267,945		$	34,864,720			$	34,590,503		$	34,243,527		$	34,471,833		$	33,871,083
Investment securities	7,091,442			7,053,001			7,044,534				6,906,345			7,112,267			7,072,328			7,098,702
Loans and leases (1)	24,205,363			23,666,098			23,360,235				22,997,195			22,575,323			23,937,221			22,265,106
Interest-earning assets	32,669,810			32,320,431			32,874,233				32,555,597			32,104,717			32,496,086			31,704,069
Deposits	30,100,615			29,472,125			29,525,843				29,319,384			29,087,852			29,788,106			28,811,046
Long-term obligations	233,373			404,065			866,198				887,948			799,319			318,247			808,087
Interest-bearing liabilities	18,885,168			19,031,404			19,425,404				19,484,663			19,729,956			18,957,881			19,699,683
Shareholders' equity	$	3,400,867		$	3,333,114		$	3,329,562			$	3,284,044		$	3,159,004		$	3,366,990		$	3,111,388
Shares outstanding	12,010,405			12,010,405			12,010,405				12,010,405			12,010,405			12,010,405			12,010,405
SELECTED QUARTER-END BALANCES
Total assets	$	35,088,566		$	34,436,437		$	34,527,512			$	34,584,154		$	34,769,850		$	35,088,566		$	34,769,850
Investment securities	7,190,545			6,967,921			7,180,256				6,992,955			6,596,530			7,190,545			6,596,530
Loans and leases:
PCI	674,269			703,837			762,998				834,167			894,863			674,269			894,863
Non-PCI	23,864,168			22,908,140			22,833,827				22,314,906			21,976,602			23,864,168			21,976,602
Deposits	30,408,884			29,969,245			29,266,275				29,333,949			29,456,338			30,408,884			29,456,338
Long-term obligations	241,360			194,413			870,240				866,123			879,957			241,360			879,957
Shareholders' equity	$	3,446,886		$	3,372,114		$	3,334,064			$	3,313,831		$	3,239,851		$	3,446,886		$	3,239,851
Shares outstanding	12,010,405			12,010,405			12,010,405				12,010,405			12,010,405			12,010,405			12,010,405
SELECTED RATIOS AND OTHER DATA
Rate of return on average assets (annualized)	1.08		%	1.19		%	0.62			%	0.77		%	1.58		%	1.13		%	1.20		%
Rate of return on average shareholders' equity (annualized)	11.00			12.20			6.48				8.10			17.10			11.59			13.11
Net yield on interest-earning assets (taxable equivalent)	3.64			3.57			3.34				3.35			3.28			3.61			3.27
Allowance for loan and lease losses to total loans and leases:
PCI	1.84			1.75			1.31				1.55			1.51			1.84			1.51
Non-PCI	0.89			0.92			0.93				0.98			0.98			0.89			0.98
Total	0.92			0.94			0.94				1.00			1.00			0.92			1.00
Ratio of total nonperforming assets to total loans, leases and other real estate owned	0.54			0.59			0.61				0.63			0.65			0.54			0.65
Tier 1 risk-based capital ratio	13.06			13.38			12.88				12.95			12.69			13.06			12.69
Common equity Tier 1 ratio	13.06			13.38			12.88				12.95			12.69			13.06			12.69
Total risk-based capital ratio	14.43			14.70			14.21				14.34			14.07			14.43			14.07
Leverage capital ratio	9.99			10.02			9.47				9.43			9.33			9.99			9.33
Dividend payout ratio	4.50			4.19			7.73				5.38			2.68			4.35			3.56
Average loans and leases to average deposits	80.41			80.30			79.12				78.44			77.61			80.36			77.28

⁽¹⁾ Average loan and lease balances include PCI loans, non-PCI loans and leases, loans held for sale and nonaccrual loans and leases.

42

BUSINESS COMBINATIONS

Palmetto Heritage Bancshares, Inc.

On July 25, 2018, First Citizens Bank and Palmetto Heritage Bancshares, Inc. announced the signing of a definitive merger agreement. The agreement provides for the acquisition of Pawley's Island, SC-based Palmetto Heritage Bancshares. Under the terms of the agreement, cash consideration of $135.00 per share will be paid to the shareholders of Palmetto Heritage Bancshares for each share of Palmetto Heritage's common stock with total consideration paid of $30.3 million. The transaction is expected to close during the fourth quarter of 2018, subject to the receipt of regulatory approvals and the approval of Palmetto Heritage Bancshares’ shareholders. As of June 30, 2018, Palmetto Heritage Bancshares reported $167.9 million in consolidated assets, $137.8 million in loans and $126.4 million in deposits.

Capital Commerce Bancorp, Inc.

On June 27, 2018, FCB and Capital Commerce Bancorp, Inc. (Capital Commerce) entered into a definitive merger agreement. The agreement provides for the acquisition of Milwaukee, Wisconsin-based Capital Commerce by FCB. Under the terms of the agreement, cash consideration of $4.75 per share will be paid to the shareholders of Capital Commerce for each share of Capital Commerce's common stock totaling approximately $28.1 million. The transaction is expected to close no later than the fourth quarter of 2018, subject to the receipt of regulatory approvals and the approval of Capital Commerce's shareholders, and will be accounted for under the acquisition method of accounting. The merger will allow FCB to expand its presence and enhance banking efforts in the Milwaukee market. As of March 31, 2018, Capital Commerce reported $216.2 million in consolidated assets, $180.6 million in loans and $171.0 million in deposits.

HomeBancorp, Inc.

On May 1, 2018, FCB completed the merger of Tampa, Florida-based HomeBancorp, Inc. (HomeBancorp) and its subsidiary, HomeBanc, into FCB. Under the terms of the merger agreement, cash consideration of $15.03 was paid to the shareholders of HomeBancorp for each share of HomeBancorp's common stock and total consideration was $112.7 million. The merger allowed FCB to expand its footprint in Florida by entering into two new markets in Tampa and Orlando.

The HomeBancorp transaction was accounted for under the acquisition method of accounting and, accordingly, assets acquired and liabilities assumed were recorded at their estimated fair value on the acquisition date. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition as additional information regarding closing date fair values becomes available.

Based on such credit factors as past due status, nonaccrual status, loan-to-value, credit scores, and other quantitative and qualitative considerations, the acquired loans were separated into loans with evidence of credit deterioration, which are accounted for under ASC 310-30 (PCI loans), and loans that do not meet this criteria, which are accounted for under ASC 310-20 (non-PCI loans).

At the date of acquisition, non-PCI loans acquired were $550.6 million and PCI loans acquired were $15.6 million.

43

The following table provides the identifiable assets acquired and liabilities assumed at their estimated fair values as of the acquisition date.

Table 2

HomeBancorp

(Dollars in thousands)	As recorded by FCB
Purchase Price			$	112,657
Assets
Cash and due from banks	$	6,359
Overnight investments	10,393
Investment securities	200,918
Investment securities held to maturity	—
Loans held for sale	791
Loans	566,173
Premises and equipment	6,542
Other real estate owned	2,135
Income earned not collected	2,717
Intangible assets	13,206
Other assets	33,459
Total assets acquired	842,693
Liabilities
Deposits	619,589
Short-term borrowings	108,973
Accrued interest payable	1,020
Long-term obligations	52,944
Other liabilities	5,126
Total liabilities assumed	787,652
Fair value of net assets assumed			55,041
Goodwill recorded for HomeBancorp			$	57,616

Merger-related expenses of $1.5 million and $1.7 million were recorded in the Consolidated Statements of Income for the three and six months endedJune 30, 2018. Loan-related interest income generated from HomeBancorp was approximately $5.0 million since the acquisition date. The ongoing contributions of this transaction to BancShares' financial statements is not considered material, and therefore pro forma financial data is not included.

FDIC-Assisted Transactions

BancShares completed eleven FDIC-assisted transactions during the period beginning in 2009 through 2017. Prior to its merger into BancShares in 2014, First Citizens Bancorporation, Inc. (Bancorporation) completed three FDIC-assisted transactions. These transactions provided us significant contributions to capital and earnings. Nine of the fourteen FDIC-assisted transactions (including the three completed by Bancorporation) included shared-loss agreements that, for their terms, protect us from a substantial portion of the credit and asset quality risk we would otherwise incur. As of June 30, 2018, shared-loss agreements are still active for Georgian Bank (GB) and United Western Bank (UWB). Shared-loss protection remains for single family residential loans acquired from UWB and GB in the amount of $62.1 million.

44

Table 3

Consolidated Quarter-to-Date Average Taxable-Equivalent Balance Sheets

	Three months ended
	June 30, 2018							March 31, 2018							June 30, 2017
				Interest							Interest							Interest
	Average			Income/		Yield/		Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate		Balance			Expense		Rate
Assets
Loans and leases	$	24,205,363		$	261,703	4.34	%	$	23,666,098		$	252,627	4.32	%	$	22,575,323		$	236,580	4.20	%
Investment securities:
U. S. Treasury	1,532,868			7,139		1.87		1,567,388			6,774		1.75		1,622,936			4,453		1.10
Government agency	84,640			468		2.21		14,952			100		2.67		52,049			203		1.56
Mortgage-backed securities	5,270,891			28,184		2.14		5,295,273			27,093		2.05		5,278,731			24,756		1.88
Corporate bonds and other	94,401			1,298		5.50		66,009			1,010		6.12		60,356			932		6.17
State, county and municipal	764			8		4.07		—			—		—		—			—		—
Marketable equity securities	107,878			267		0.99		109,379			209		0.77		98,195			154		0.63
Total investment securities	7,091,442			37,364		2.11		7,053,001			35,186		2.00		7,112,267			30,498		1.72
Overnight investments	1,373,005			5,612		1.64		1,601,332			5,599		1.42		2,417,127			6,404		1.06
Total interest-earning assets	32,669,810			$	304,679	3.75	%	32,320,431			$	293,412	3.67	%	32,104,717			$	273,482	3.42	%
Cash and due from banks	276,418							299,052							503,205
Premises and equipment	1,162,893							1,142,704							1,130,796
Allowance for loan and lease losses	(224,146		)					(221,690		)					(222,882		)
Other real estate owned	47,667							49,568							57,044
Other assets	741,285							677,430							670,647
Total assets	$	34,673,927						$	34,267,495						$	34,243,527
Liabilities
Interest-bearing deposits:
Checking with interest	$	5,228,803		$	314	0.02	%	$	5,091,670		$	293	0.02	%	$	4,978,159		$	253	0.02	%
Savings	2,468,677			194		0.03		2,378,499			171		0.03		2,293,589			188		0.03
Money market accounts	7,989,268			2,125		0.11		8,139,405			1,749		0.09		8,107,107			1,688		0.08
Time deposits	2,401,434			1,888		0.32		2,340,698			1,543		0.27		2,745,473			2,003		0.29
Total interest-bearing deposits	18,088,182			4,521		0.10		17,950,272			3,756		0.08		18,124,328			4,132		0.09
Repurchase agreements	516,999			373		0.29		585,627			548		0.37		718,700			539		0.30
Other short-term borrowings	46,614			448		3.82		91,440			886		3.88		87,609			637		2.88
Long-term obligations	233,373			2,316		3.96		404,065			2,974		2.94		799,319			5,625		2.82
Total interest-bearing liabilities	18,885,168			7,658		0.16		19,031,404			8,164		0.17		19,729,956			10,933		0.22
Noninterest-bearing deposits	12,012,433							11,521,853							10,963,524
Other liabilities	375,459							381,124							391,043
Shareholders' equity	3,400,867							3,333,114							3,159,004
Total liabilities and shareholders' equity	$	34,673,927						$	34,267,495						$	34,243,527
Interest rate spread						3.59	%						3.50	%						3.20	%
Net interest income and net yield on interest-earning assets				$	297,021	3.64	%				$	285,248	3.57	%				$	262,549	3.28	%

Loans and leases include PCI loans, non-PCI loans, nonaccrual loans and loans held for sale. Yields related to loans, leases and securities exempt from both federal and state income taxes, federal income taxes only, or state income taxes only are stated on a taxable-equivalent basis assuming statutory federal income tax rates of 21.0 percent, 21.0 percent and 35.0 percent as well as state income tax rates of 3.4 percent, 3.4 percent and 3.1 percent for the three months ended June 30, 2018, March 31, 2018 and June 30, 2017, respectively. The taxable-equivalent adjustment was $802, $811 and $940 for the three months ended June 30, 2018, March 31, 2018 and June 30, 2017, respectively.

45

Table 4

Consolidated Year-to-Date Average Taxable-Equivalent Balance Sheets

	Six months ended
	June 30, 2018							June 30, 2017
				Interest							Interest
	Average			Income/		Yield/		Average			Income/		Yield/
(Dollars in thousands)	Balance			Expense		Rate		Balance			Expense		Rate
Assets
Loans and leases	$	23,937,221		$	514,330	4.33	%	$	22,265,106		$	464,372	4.20	%
Investment securities:
U.S. Treasury	1,550,032			13,912		1.81		1,633,707			8,652		1.07
Government agency	49,989			568		2.27		52,793			408		1.54
Mortgage-backed securities	5,283,015			55,278		2.09		5,260,117			49,078		1.87
Corporate bonds and other	80,284			2,308		5.75		58,739			1,912		6.51
State, county and municipal	384			8		4.04		—			—		—
Marketable equity securities	108,624			476		0.88		93,346			287		0.62
Total investment securities	7,072,328			72,550		2.06		7,098,702			60,337		1.70
Overnight investments	1,486,537			11,211		1.52		2,340,261			10,880		0.94
Total interest-earning assets	32,496,086			$	598,091	3.70	%	31,704,069			$	535,589	3.40	%
Cash and due from banks	287,672							500,084
Premises and equipment	1,152,854							1,130,425
Allowance for loan and lease losses	(222,925		)					(221,852		)
Other real estate owned	48,612							58,531
Other assets	709,534							699,826
Total assets	$	34,471,833						$	33,871,083
Liabilities
Interest-bearing deposits:
Checking with interest	$	5,160,616		$	607	0.02	%	$	4,906,865		$	505	0.02	%
Savings	2,423,837			366		0.03		2,227,506			372		0.03
Money market accounts	8,063,921			3,874		0.10		8,224,447			3,547		0.09
Time deposits	2,371,234			3,430		0.29		2,780,384			4,144		0.30
Total interest-bearing deposits	18,019,608			8,277		0.09		18,139,202			8,568		0.10
Repurchase agreements	551,123			921		0.33		694,447			943		0.27
Other short-term borrowings	68,903			1,334		3.86		57,947			813		2.79
Long-term obligations	318,247			5,290		3.32		808,087			11,123		2.75
Total interest-bearing liabilities	18,957,881			15,822		0.17		19,699,683			21,447		0.22
Noninterest-bearing deposits	11,768,498							10,671,844
Other liabilities	378,464							388,168
Shareholders' equity	3,366,990							3,111,388
Total liabilities and shareholders' equity	$	34,471,833						$	33,871,083
Interest rate spread						3.53	%						3.18	%
Net interest income and net yield on interest-earning assets				$	582,269	3.61	%				$	514,142	3.27	%

Loans and leases include PCI loans, non-PCI loans, nonaccrual loans and loans held for sale. Yields related to loans, leases and securities exempt from both federal and state income taxes, federal income taxes only, or state income taxes only are stated on a taxable-equivalent basis assuming statutory federal income tax rates of 21.0 percent and 35.0 percent as well as state income tax rates of 3.4 percent and 3.1 percent for the six months ended June 30, 2018 and 2017, respectively. The taxable-equivalent adjustment was $1,613 and $2,190 for the six months ended June 30, 2018 and 2017, respectively.

46

Table 5

Changes in Consolidated Taxable Equivalent Net Interest Income

	Three months ended June 30, 2018									Six months ended June 30, 2018
	Change from prior year period due to:									Change from prior year period due to:
(Dollars in thousands)	Volume			Yield/Rate			Total Change			Volume			Yield/Rate			Total Change
Assets
Loans and leases	$	17,156		$	7,967		$	25,123		$	35,215		$	14,743		$	49,958
Investment securities:
U. S. Treasury	(338		)	3,024			2,686			(590		)	5,850			5,260
Government agency	154			111			265			(27		)	187			160
Mortgage-backed securities	(20		)	3,448			3,428			314			5,886			6,200
Corporate bonds and other	496			(130		)	366			660			(264		)	396
State, county and municipal	8			—			8			8			—			8
Marketable equity securities	20			93			113			58			131			189
Total investment securities	320			6,546			6,866			423			11,790			12,213
Overnight investments	(3,523		)	2,731			(792		)	(5,190		)	5,521			331
Total interest-earning assets	$	13,953		$	17,244		$	31,197		$	30,448		$	32,054		$	62,502
Liabilities
Interest-bearing deposits:
Checking with interest	$	37		$	24		$	61		$	64		$	38		$	102
Savings	10			(4		)	6			12			(18		)	(6		)
Money market accounts	(96		)	533			437			(76		)	403			327
Time deposits	(285		)	170			(115		)	(592		)	(122		)	(714		)
Total interest-bearing deposits	(334		)	723			389			(592		)	301			(291		)
Repurchase agreements	(149		)	(17		)	(166		)	(210		)	188			(22		)
Other short-term borrowings	(344		)	155			(189		)	183			338			521
Long-term obligations	(4,788		)	1,479			(3,309		)	(7,436		)	1,603			(5,833		)
Total interest-bearing liabilities	(5,615		)	2,340			(3,275		)	(8,055		)	2,430			(5,625		)
Change in net interest income	$	19,568		$	14,904		$	34,472		$	38,503		$	29,624		$	68,127

The rate/volume variance is allocated equally between the changes in volume and rate.

RESULTS OF OPERATIONS

Net Interest Income and Margin

Second Quarter 2018

Compared to the first quarter of 2018, net interest income increased $11.8 million, or by 4.1 percent, to $296.2 million for the second quarter of 2018. The increase was primarily due to higher non-PCI loan interest income of $12.8 million due to higher loan yields and balances, which were driven by the HomeBancorp acquisition and organic growth, particularly in the commercial mortgage as well as commercial and industrial loan portfolios. Net interest income also benefited from a $2.2 million increase in investment securities interest income resulting from higher investment yields driven by the reinvestment of lower yielding cash flows from maturities, paydowns and sales into higher yielding mortgage-backed securities. Additionally, there was a $506 thousand decrease in interest expense primarily a result of lower borrowings. These improvements were partially offset by a decrease in PCI loan interest income of $3.7 million, primarily resulting from PCI loan portfolio run-off.

Compared to the second quarter of 2017, net interest income increased $34.6 million, or by 13.2 percent. The increase was primarily due to a $31.6 million increase in non-PCI loan interest income resulting from originated loan growth and improved yields, as well as the contribution from the HomeBancorp acquisition. The largest contributors to the increase in originated loan growth were increases in commercial mortgage and commercial and industrial loans. Net interest income also benefited from a $6.8 million increase in investment securities interest income driven by improved yields as a result of the aforementioned purchase of mortgage-backed securities. Furthermore, there was a decline in interest expense of $3.3 million largely related to lower borrowings due to the extinguishment of debt. These positive impacts were partially offset by a decline in PCI loan interest income of $6.2 million as a result of continued PCI loan portfolio run-off as well as a $792 thousand decrease in interest income earned on overnight investments.

The taxable-equivalent net interest margin was 3.64 percent for the second quarter of 2018, an increase of 7 basis points from the first quarter of 2018 and an increase of 36 basis points from the same quarter in the prior year. The margin improvement for both periods was primarily due to improved loan and investment yields. Yields were positively impacted by the federal funds 25 basis

47

point increase in each of March, June and December of 2017 with an additional 25 basis point increase in each of March and June of 2018 to end the period at 2.0 percent. Furthermore, the taxable-equivalent yields on our tax-exempt loans and securities were impacted by lower effective tax rates from the enactment of the Tax Act.

For the second quarter of 2018, average interest earning assets increased by $349.4 million since the first quarter of 2018 as a result of a $539.3 million increase in average loans outstanding, due to originated loan growth, mostly within the commercial loan segment, as well as loans acquired in the HomeBancorp acquisition, and a $38.4 million increase in average investment securities mainly driven by the purchase of higher yielding mortgage-backed securities. These increases were offset by a $228.3 million decrease in average overnight investments. The yield on interest-earning assets was 3.75 percent, an increase from 3.67 percent since the first quarter of 2018. Yields on our loans and leases increased by 2 basis points in the second quarter of 2018 primarily due to higher yielding commercial loans and equity lines. Yields on our investment securities portfolio and overnight investments increased by 11 basis points and 22 basis points, respectively, in the second quarter of 2018. Higher yielding mortgage-backed securities was the primary driver to the yield increase in investment securities while the increase in the federal funds rate contributed to the yield increase in overnight investments.

For the second quarter of 2018, average interest earning assets increased by $565.1 million compared to the same quarter in the prior year. Average loans experienced a $1.63 billion increase primarily due to originated loan growth, particularly within the commercial loan segment, and contributions from the HomeBancorp acquisition. Offsetting this increase was a decrease in average overnight investments of $1.04 billion primarily related to the use of funds for the extinguishment of debt obligations in the first quarter of 2018. Additionally, there was a decrease in average investment securities of $20.8 million driven by a decline in average balances on U.S. Treasury securities, partially offset by an increase in average balances on government agency securities and corporate bonds. The yield on interest-earning assets increased by 33 basis points from 3.42 percent since the second quarter of 2017. Yields on our loans and leases increased by 14 basis points in the second quarter of 2018 primarily due to higher yielding commercial loans and equity lines. Yields on our investment securities portfolio and overnight investments increased by 39 basis points and 58 basis points, respectively, in the second quarter of 2018. Higher yielding mortgage-backed securities was the primary driver to the yield increase in investment securities while the increase in the federal funds rate contributed to the yield increase in overnight investments.

For the second quarter of 2018, average interest-bearing liabilities decreased by $146.2 million since the first quarter of 2018, due to a $170.7 million decrease in average long-term obligations as a result of lower FHLB borrowings and a $113.5 million decrease in average short-term borrowings as a result of lower repurchase obligations and FHLB borrowings. These decreases were offset by a $137.9 million increase in average interest-bearing deposits resulting from organic growth and deposit balances acquired in the HomeBancorp acquisition. The rate on interest-bearing liabilities was 0.16 percent, a decrease from 0.17 percent since the first quarter of 2018. Rates on our interest bearing deposits increased by 2 basis points in the second quarter of 2018. Rates on long-term borrowings increased by 102 basis points while rates on our repurchase agreements and other short-term borrowings decreased by 8 basis points and 6 basis points, respectively, in the second quarter of 2018. The increase in long-term borrowings was due to higher rates on remaining borrowings after the extinguishment of debt in the first quarter of 2018.

For the second quarter of 2018, average interest-bearing liabilities decreased $844.8 million compared to the same quarter in the prior year primarily due to a decrease in average long-term obligations of $565.9 million largely related to the extinguishment of FHLB debt in the first quarter of 2018. Also contributing to the decrease were declines in average short-term borrowings of $242.7 million and average interest-bearing deposits of $36.1 million. The decline in average short-term borrowings was primarily due to FHLB borrowing maturities of $85.0 million, the maturity of a $30.0 million repurchase agreement as well as the maturity of a $15.0 million subordinated notes payable and lower customer repurchase agreement balances. The decline in average interest-bearing deposits was primarily due to continued run-off in time deposits. The rate on interest-bearing liabilities decreased by 6 basis points from 0.22 percent since the second quarter of 2017. Rates on our interest bearing deposits increased by 1 basis point in the second quarter of 2018. Rates on long-term borrowings and other short-term borrowings increased by 114 basis points and 94 basis points, respectively, while rates on repurchase agreements decreased by 1 basis point in the second quarter of 2018. The increase in borrowings was due to higher rates on remaining borrowings after the extinguishment of debt in the first quarter of 2018.

Year-to-date 2018

Net interest income for the first six months of 2018 was $580.7 million, an increase of $68.7 million, or 13.4 percent, compared to the same period of 2017. Loan interest income increased $50.7 million as a result of a $58.4 million increase in non-PCI loan interest income primarily due to originated loan growth, particularly in the commercial mortgage as well as commercial and industrial loan portfolios, and loans acquired in the HomeBancorp acquisition, offset by a $7.7 million decline in PCI loan interest income due to PCI loan portfolio run-off. Additionally, net interest income benefited from a $12.0 million improvement in investment securities interest income and reduced borrowing costs of $5.3 million.

48

The taxable-equivalent net interest margin increased 34 basis points to 3.61 percent in the first six months of 2018, compared to the same period of 2017. The margin improvement was primarily due to higher loan yields and improved investment yields. Yields for the first six months of 2018 were impacted by the aforementioned incremental increases in the federal funds rate and Tax Act.

Average year-to-date interest earning assets increased by $792.0 million in the first six months of 2018 compared to the same period of 2017, primarily due to a $1.67 billion increase in average outstanding loans due to originated loan growth, particularly within the commercial loan segment, and the impact of the HomeBancorp acquisition. This increase was offset by a decline in average overnight investments of $853.7 million primarily related to the use of funds for the extinguishment of FHLB debt obligations in the first quarter of 2018 and a decrease in average investment securities of $26.4 million. The yield on interest-earning assets for the first six months of 2018 was 3.70 percent, an increase from 3.40 percent for the same period of 2017. Yields on our loans and leases increased by 13 basis points in the first six months of 2018 primarily due to higher yielding commercial loans and equity lines. Yields on our investment securities portfolio and overnight investments increased by 36 basis points and 58 basis points, respectively. Higher yielding mortgage-backed securities was the primary driver to the yield increase in investment securities while the increase in the federal funds rate contributed to the yield increase in overnight investments.

Average year-to-date interest-bearing liabilities decreased by $741.8 million in the first six months of 2018 compared to the same period of 2017, due to a decline of $489.8 million in average long-term obligations primarily related to the extinguishment of FHLB debt obligations totaling $675.0 million in the first quarter of 2018. Additionally, there were reclassifications of $15.0 million in FHLB borrowings from long-term obligations to short-term borrowings, partially offset by acquired subordinated debt of $21.6 million and FHLB borrowings of $18.8 million from HomeBancorp and increases in capital leases of $12.9 million. The decrease in average year-to-date interest-bearing liabilities was also impacted by decreases of $132.4 million in average short-term borrowings due to extinguishment of debt and $119.6 million in average interest-bearing deposits as time deposits continue to mature and are renewed at lower rates. The rate on interest-bearing liabilities for the first six months of 2018 was 0.17 percent, a decrease from 0.22 percent for the same period of 2017. Rates on our interest bearing deposits decreased by 1 basis point while repurchase agreements, other short-term borrowings and long-term borrowings increased by 6 basis point, 107 basis points and 57 basis points, respectively. The increase in borrowings was due to higher rates on remaining borrowings after the extinguishment of debt in the first quarter of 2018.

Noninterest Income

Table 6

Noninterest Income

	Three months ended						Six months ended
(Dollars in thousands)	June 30, 2018		March 31, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Gain on acquisitions	$	—	$	—	$	122,728	$	—	$	134,745
Cardholder services, net	14,925		14,782		14,518		29,707		27,361
Merchant services, net	6,478		6,177		5,800		12,655		11,556
Service charges on deposit accounts	25,952		26,543		25,862		52,495		48,004
Wealth management services	25,515		23,569		21,920		49,084		42,882
Securities gains, net	—		—		3,351		—		3,327
Marketable equity securities gains, net	4,440		971		—		5,411		—
Other service charges and fees	7,756		7,480		6,628		15,236		14,229
Mortgage income	4,703		4,237		4,966		8,940		12,542
Insurance commissions	2,940		3,776		2,563		6,716		6,121
ATM income	2,217		2,171		2,513		4,388		4,286
Net impact from FDIC shared-loss termination	—		—		—		—		(45		)
Recoveries of PCI loans previously charged off	5,138		5,693		4,310		10,831		9,534
Gain on extinguishment of debt	—		25,814		—		25,814		—
Other	863		1,471		2,482		2,334		2,745
Total noninterest income	$	100,927	$	122,684	$	217,641	$	223,611	$	317,287

Noninterest income is an essential component of our total revenue and is critical to our ability to sustain adequate profitability levels. The primary sources of noninterest income traditionally consist of fees and service charges generated from cardholder services, merchant services, deposit accounts, wealth management services and mortgage lending and servicing. Other sources include gains on acquisitions, gains on the sale of investment securities and recoveries on PCI loans that have been previously

49

charged-off. Noninterest income for the period ended June 30, 2018 includes a full six months impact from the Guaranty Bank acquisition compared to two months of activity for the period ending June 30, 2017.

Noninterest income for the second quarter of 2018 was $100.9 million, compared to $122.7 million for the first quarter of 2018, a decrease of $21.8 million, or by 17.73%. The most significant components of the change were as follows:

• Gain on extinguishment of $675.0 million of FHLB obligations totaled $25.7 million in the first quarter of 2018.

• Marketable equity securities gains, net increased by $3.5 million primarily due to favorable market movements on equity stock positions held in the second quarter.

Noninterest income for the second quarter of 2018 was $100.9 million, compared to $217.6 million for the same period of 2017. Excluding acquisition gains of $122.7 million on the Guaranty acquisition in the second quarter of 2017, total noninterest income increased $6.0 million, or by 6.34%. The increase was primarily attributable to the following drivers:

• Marketable equity securities gains, net was $4.4 million for the second quarter of 2018 due to the implementation of ASU 2016-01 requiring unrealized gains and losses on equity securities to be recorded through the income statement.

• Wealth management fees increased by $3.6 million primarily due to higher annuity sales volume and higher trust income driven by growth in assets under management.

• Reduction in security gains, net of $3.3 million primarily due to gains on the sale of mortgage-backed securities in 2017.

Noninterest income was $223.6 million for the first six months of 2018, compared to $317.3 million for the same period of 2017, a decrease of $93.7 million, or by 29.52%. Excluding acquisition gains of $134.7 million on the Harvest Community Bank and Guaranty Bank acquisitions in the first six months of 2017, total noninterest income increased $41.1 million, or by 22.50%. The increase was primarily attributable to the following drivers:

• Gain on extinguishment of FHLB obligations totaled $25.7 million.

• Wealth management fees increased by $6.2 million primarily due to higher annuity sales volume and higher trust income driven by growth in assets under management.

• Marketable equity securities gains, net was $5.4 million in 2018 due to the implementation of ASU 2016-01 requiring unrealized gains and losses on equity securities to be recorded through the income statement.

• Service charges on deposit accounts increased by $4.5 million primarily due to the Guaranty Bank acquisition and an increase in the volume of overdraft transactions.

• Mortgage income decreased by $3.6 million resulting from lower hedge income primarily due to higher interest rates as well as a reduction in gains on sales driven by mortgage sales in 2017.

50

Noninterest Expense

The primary components of noninterest expense are salaries and related employee benefits, occupancy costs, facilities and equipment expense.

Table 7

Noninterest Expense

	Three months ended						Six months ended
(Dollars in thousands)	June 30, 2018		March 31, 2018		June 30, 2017		June 30, 2018		June 30, 2017
Salaries and wages	$	129,841	$	129,203	$	121,826	$	259,044	$	238,188
Employee benefits	29,715		32,091		25,383		61,806		52,560
Occupancy expense	26,100		27,954		26,059		54,054		50,821
Equipment expense	25,167		24,974		24,654		50,141		49,242
FDIC insurance expense	5,492		5,733		5,705		11,225		11,298
Collection and foreclosure-related expenses	3,974		4,146		2,376		8,120		6,139
Merger-related expenses	2,412		598		6,853		3,010		7,686
Processing fees paid to third parties	7,890		8,196		5,426		16,086		9,742
Telecommunications	2,654		2,690		3,224		5,344		6,836
Consultant expense	3,000		3,006		3,423		6,006		5,302
Advertising expense	2,542		2,551		2,947		5,093		5,447
Core deposit intangible amortization	4,368		4,142		4,404		8,510		8,325
Other	22,838		22,779		22,767		45,617		40,160
Total noninterest expense	$	265,993	$	268,063	$	255,047	$	534,056	$	491,746

Noninterest expense for the period ended June 30, 2018 includes a full six months impact from the Guaranty Bank acquisition compared to two months of activity for the period ending June 30, 2017.

Noninterest expense was $266.0 million in the second quarter of 2018, compared to $268.1 million for the first quarter of 2018, a decrease of $2.1 million, or by 0.77%. The change was attributable to the following drivers:

• Personnel expenses decreased by $1.7 million primarily driven by employee benefits of $2.4 million due to declines in payroll and unemployment taxes, offset by an increase in salary and wage expenses of $638 thousand.

• Occupancy expense decreased by $1.9 million largely due to decreases in building repairs, landscaping, and utilities.

• Merger-related expenses increased by $1.8 million due to the HomeBancorp acquisition.

Noninterest expense was $266.0 million in the second quarter of 2018, compared to $255.0 million for the same period in 2017, an increase of $10.9 million, or by 4.29%. The change was attributable to the following drivers:

• Personnel expenses increased by $12.3 million largely due to higher headcount, which includes the effects of the Guaranty and HomeBancorp acquisitions, merit and incentive increases and higher benefit costs.

• Processing fees paid to third parties increased by $2.5 million primarily due to core bank processing fees related to Guaranty Bank and growth in the bill pay service provided to customers.

• Merger-related expenses decreased by $4.4 million primarily due to expenses in the second quarter of 2017 related to the Guaranty Bank acquisition exceeding the expenses in the second quarter of 2018 related to the HomeBancorp acquisition.

Noninterest expense was $534.1 million for the first six months of 2018, compared to $491.7 million for the same period in 2017, an increase of $42.3 million, or by 8.60%. The increase was primarily attributable to the following drivers:

• Personnel expense increased $30.1 million primarily due to higher wages and benefits from the Guaranty acquisition, increased headcount, which includes the effect of the HomeBancorp acquisition, merit and incentive increases and higher benefit costs.

• Processing fees paid to third parties increased by $6.3 million primarily due to core bank processing fees related to Guaranty Bank and an increase in bill pay services used by bank customers.

• Other expense increased by $5.5 million, primarily resulting from higher legal costs, operational loss increases and a $1.5 million reversal of a repurchase reserve on a Small Business Administration guaranteed loan recorded in 2017.

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• Occupancy expense increased by $3.2 million primarily due to higher building maintenance and new expenses related to the Guaranty acquisition and increased landscaping costs.

• Merger-related expenses decreased by $4.7 million primarily due to higher merger expenses related to the Guaranty acquisition during 2017 in comparison to the HomeBancorp acquisition.

Income Taxes

Income tax expense was $29.4 million, $31.2 million and $77.2 million for the second quarter of 2018, first quarter of 2018 and second quarter of 2017, representing effective tax rates of 24.0 percent, 23.8 percent and 36.4 percent during the respective periods. Income tax expense was $60.6 million and $114.7 million for the six months ended June 30, 2018 and 2017, respectively, representing effective tax rates of 23.9 percent and 36.2 percent for the respective six month periods. The income tax expense and effective tax rate decreases during the reported periods in 2018 compared to those in 2017 were primarily due to the impact of the Tax Act, which reduced the federal tax rate from 34.0 percent to 21.0 percent.

We monitor and evaluate the potential impact of current events on the estimates used to establish income tax expenses and income tax liabilities. On a periodic basis, we evaluate our income tax positions based on current tax law, positions taken by various tax auditors within the jurisdictions where BancShares is required to file income tax returns, as well as potential or pending audits or assessments by tax auditors.

INTEREST-EARNING ASSETS

Interest-earning assets include loans and leases, investment securities, and overnight investments, all of which reflect varying interest rates based on the risk level and repricing characteristics of the underlying asset. Riskier investments typically carry a higher interest rate but expose us to higher levels of market risk.

Interest-earning assets averaged $32.67 billion and $32.87 billion for the quarters ended June 30, 2018 and December 31, 2017, respectively. The $204.4 million decrease from December 31, 2017 was composed of an $1.10 billion decline in overnight investments primarily related to the use of funds for the extinguishment of FHLB debt obligations totaling $675.0 million during the first quarter of 2018, offset by a $845.1 million increase in loans and leases as a result of originated loan growth and the acquisition of HomeBanc, and a $46.9 million increase in investment securities.

Investment Securities

The primary objective of the investment portfolio is to generate incremental income by deploying excess funds into securities that have minimal liquidity and credit risk and low to moderate interest rate risk. Other objectives include acting as a stable source of liquidity, serving as a tool for asset and liability management and maintaining an interest rate risk profile compatible with BancShares' objectives. Additionally, purchases of equities and corporate bonds in other financial institutions have been made largely under a long-term earnings optimization strategy. Changes in the total balance of our investment securities portfolio result from trends in balance sheet funding and market performance. Generally, when inflows arising from deposit and treasury services products exceed loan and lease demand, we invest excess funds into the securities portfolio or into overnight investments. Conversely, when loan demand exceeds growth in deposits and short-term borrowings, we allow any overnight investments to decline and use proceeds from maturing securities and prepayments to fund loan demand.

With the adoption of Accounting Standard Update (ASU) 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities, in the first quarter of 2018, marketable equity investments are no long classified as investments available for sale and the fair value changes in those investments is reflected in the Consolidated Statements of Income. At adoption, we recorded a cumulative-effect adjustment to the balance sheet resulting in an $18.7 million increase to retained earnings and a decrease to accumulated other comprehensive income (AOCI) on January 1, 2018.

The fair value of total investment securities was $7.19 billion at June 30, 2018, an increase of $12.6 million, when compared to $7.18 billion at December 31, 2017. The increase in the portfolio from December 31, 2017 was primarily attributable to deploying excess cash into the portfolio to take advantage of higher rates as well as the retention of a portion of HomeBancorp's investment portfolio, partially offset by a rise in unrealized losses on the available for sale portfolio. Investment securities increased $596.3 million from June 30, 2017 to June 30, 2018 primarily due to reinvesting proceeds from sales, maturities and pay downs of securities back into the investment portfolio and the retention of a portion of HomeBancorp's investment portfolio.

On May 1, 2018, mortgage-backed securities with an amortized cost of $2.49 billion were transferred from investments available for sale (AFS) to the held to maturity (HTM) portfolio. At the time of transfer, the mortgage-backed securities had a fair value of $2.38 billion and a weighted average maturity of 13 years. The unrealized loss on these securities at the date of transfer was $109.1 million and continues to be reported as a component of AOCI. This unrealized loss will be amortized out of AOCI into the

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consolidated statements of income over the remaining expected life of the securities offset by the amortization of the corresponding discount on the transferred securities. FCB has the intent and ability to retain these securities until maturity.

As of June 30, 2018, investment securities available for sale had a net pre-tax unrealized loss of $74.7 million, compared to a net pre-tax unrealized loss of $48.8 million as of December 31, 2017 and a net pre-tax unrealized loss of $26.2 million as of June 30, 2017. Available for sale securities are reported at fair value and unrealized gains and losses are included as a component of AOCI, net of deferred taxes. The fair value of equity securities was $107.3 million at June 30, 2018. After evaluating the AFS securities with unrealized losses, management concluded that no other than temporary impairment existed as of June 30, 2018.

There were no gains or losses on the sale of investment securities available for sale for the three months ended June 30, 2018 and March 31, 2018 compared to a net gain of $3.4 million on sales of securities for the three months ended June 30, 2017. During the six months ended June 30, 2018 we recognized no gains or losses on the sale of investment securities compared to a net gain of $3.3 million for the corresponding period of 2017. The net marketable equity securities gains was $4.4 million and $5.4 million for the three and six months ended months ended June 30, 2018 and is recorded on the Consolidated Statements of Income.

At June 30, 2018, mortgage-backed securities represented 74.2 percent of total investment securities, compared to U.S. Treasury, government agency securities, corporate bonds, other investments and marketable equity securities, which represented 20.9 percent, 1.8 percent, 1.5 percent, 0.1 percent and 1.5 percent of the total investment securities, respectively. Overnight investments are with the Federal Reserve Bank and other financial institutions.

Excluding the June 30, 2018 fair market value of the mortgage-backed securities transferred to HTM of $2.30 billion, the carrying value of mortgage-backed securities AFS decreased $4.6 million primarily due to rising market rates that have negatively impacted mortgage-backed securities valuations. U.S. Treasury securities decreased $153.9 million primarily due to maturities with only a portion of the proceeds reinvested back into U.S. Treasury securities. Government agency securities increased $122.4 million due to new purchases during 2018 and the retention of certain investments from HomeBancorp's investment portfolio. Corporate bonds increased $48.8 million primarily due to bonds retained from HomeBancorp's investment portfolio coupled with new purchases in 2018. Equity securities, comprised of investments in other financial institutions, increased $2.1 million since December 31, 2017 primarily due to higher market prices at June 30, 2018.

Table 8

Investment Securities

	June 30, 2018				December 31, 2017				June 30, 2017
(Dollars in thousands)	Cost		Fair value		Cost		Fair value		Cost		Fair Value
Investment securities available for sale:
U.S. Treasury	$	1,508,435	$	1,503,974	$	1,658,410	$	1,657,864	$	1,619,225	$	1,616,134
Government agency	131,233		131,035		8,695		8,670		40,080		40,081
Mortgage-backed securities	3,104,316		3,034,065		5,419,379		5,340,756		4,822,517		4,772,242
Equity securities	—		—		75,471		105,208		78,753		105,859
Corporate bonds	108,649		108,790		59,414		59,963		54,412		54,705
Other	5,545		5,643		7,645		7,719		7,630		7,429
Total investment securities available for sale	4,858,178		4,783,507		7,229,014		7,180,180		6,622,617		6,596,450
Investment in marketable equity securities	74,156		107,264		—		—		—		—
Investment securities held to maturity:
Mortgage-backed securities	2,299,774		2,302,093		76		81		80		86
Total investment securities	$	7,232,108	$	7,192,864	$	7,229,090	$	7,180,261	$	6,622,697	$	6,596,536

Loans and Leases

Loans and leases were $24.54 billion at June 30, 2018, a net increase of $941.6 million compared to December 31, 2017, representing growth of 8.0 percent on an annualized basis. This increase was primarily driven by $543.4 million in non-PCI loans acquired in the HomeBancorp acquisition and $486.9 million of organic growth in the non-PCI portfolio. The PCI portfolio decreased over this period by $88.7 million due to PCI loan portfolio run-off of $104.2 million, offset by net PCI loans acquired from HomeBancorp of $15.5 million.

Non-PCI loans increased by $1.89 billion, compared to June 30, 2017, due to originated loan growth and loans acquired in the HomeBancorp transaction. PCI loans decreased $220.6 million from June 30, 2017 due to continued pay downs in the PCI loan portfolio, offset by the contributions from the HomeBancorp acquisition.

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BancShares reports non-PCI and PCI loan portfolios separately and each portfolio is further divided into commercial and non-commercial. Additionally, loans are assigned to loan classes, which further disaggregate loans based upon common risk characteristics, such as commercial real estate, commercial and industrial or residential mortgage. Table 9 provides the composition of non-PCI and PCI loans and leases.

Non-PCI Loans and Leases

The non-PCI portfolio includes loans that management has the intent and ability to hold and is reported at the principal balance outstanding, net of deferred loan fees and costs. It consists of originated loans and purchased non-credit impaired loans and leases that do not have evidence of credit deterioration at acquisition. Purchased non-impaired loans are initially recorded at their fair value at the date of acquisition.

Non-PCI loans and leases at June 30, 2018 were $23.86 billion, representing 97.3 percent of total loans and leases, compared to $22.83 billion and $21.98 billion at December 31, 2017 and June 30, 2017, respectively.

The non-PCI commercial loan portfolio is composed of Commercial Mortgage, Commercial and Industrial, Construction and Land Development, Lease Financing, Other Commercial Real Estate and Other Commercial loans. Non-PCI commercial loans were $15.47 billion at June 30, 2018, an increase of $675.7 million and $1.18 billion compared to December 31, 2017 and June 30, 2017, respectively, primarily resulting from originated loan growth and the HomeBancorp acquisition which contributed $253.7 million at June 30, 2018.

The non-PCI noncommercial loan portfolio is composed of Residential Mortgage, Revolving Mortgage, Consumer and Construction and Land Development loans. Non-PCI noncommercial loans were $8.39 billion at June 30, 2018, an increase of $354.7 million and $711.7 million compared to December 31, 2017 and June 30, 2017, respectively, primarily resulting from originated loan growth and the HomeBancorp acquisition which contributed $289.7 million at June 30, 2018.

PCI Loans

The PCI portfolio includes loans acquired in a transfer, including business combinations, where there is evidence of credit deterioration since origination and that it is probable at the date of acquisition all contractually required principal and interest payments will not be collected. All nonrevolving loans are evaluated at acquisition and where a discount is required at least in part due to credit quality, the loans are accounted for under the guidance in ASC Topic 310-30. PCI loans are valued at fair value at the date of acquisition.

PCI loans at June 30, 2018 were $674.3 million, representing 2.7 percent of total loans and leases, compared to $763.0 million and $894.9 million at December 31, 2017 and June 30, 2017, respectively.

PCI commercial loans were $336.1 million at June 30, 2018, a decrease of $57.3 million since December 31, 2017 and a decrease of $140.9 million since June 30, 2017, due to continued loan run-off, offset by $8.2 million of PCI commercial loans acquired from HomeBancorp. At June 30, 2018, PCI noncommercial loans were $338.2 million, a decrease of $31.4 million since December 31, 2017 and a decrease of $79.6 million since June 30, 2017, reflecting continued loan run-off, offset by $7.3 million from the HomeBancorp acquisition.

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Table 9

Loans and Leases

(Dollars in thousands)	June 30, 2018		December 31, 2017		June 30, 2017
Non-PCI loans and leases:
Commercial:
Construction and land development	$	715,011	$	669,215	$	740,291
Commercial mortgage	10,278,741		9,729,022		9,301,154
Other commercial real estate	473,452		473,433		363,339
Commercial and industrial	3,097,541		2,730,407		2,553,612
Lease financing	613,377		894,801		853,943
Other	296,614		302,176		486,573
Total commercial loans	15,474,736		14,799,054		14,298,912
Noncommercial:
Residential mortgage	3,980,845		3,523,786		3,305,361
Revolving mortgage	2,604,955		2,701,525		2,678,686
Construction and land development	250,704		248,289		218,233
Consumer	1,552,928		1,561,173		1,475,410
Total noncommercial loans	8,389,432		8,034,773		7,677,690
Total non-PCI loans and leases	23,864,168		22,833,827		21,976,602
PCI loans:
Total PCI loans	674,269		762,998		894,863
Total loans and leases	$	24,538,437	$	23,596,825	$	22,871,465

Allowance for Loan and Lease Losses (ALLL)

The ALLL was $224.9 million at June 30, 2018, representing an increase of $3.0 million since December 31, 2017 and a decrease of $3.9 million since June 30, 2017. The ALLL as a percentage of total loans and leases was 0.92 percent at June 30, 2018, compared to 0.94 percent and 1.00 percent at December 31, 2017 and June 30, 2017, respectively.

At June 30, 2018, the ALLL allocated to total non-PCI loans and leases was $212.4 million, or 0.89 percent of non-PCI loans and leases, compared to $211.9 million, or 0.93 percent, at December 31, 2017 and $215.3 million, or 0.98 percent, at June 30, 2017. The ALLL for total non-PCI loans and leases increased from December 31, 2017 primarily due to loan growth, offset by credit quality improvements. The ALLL for total non-PCI loans and leases decreased from June 30, 2017 primarily due to lower loan growth within the commercial construction and land development portfolio and credit quality improvements.

Originated non-PCI loans were $21.95 billion, $21.13 billion and $19.80 billion at June 30, 2018, December 31, 2017 and June 30, 2017, respectively, and do not include purchased revolving, purchased non-PCI loans or PCI loans. At June 30, 2018, the ALLL allocated to originated non-PCI loans and leases was $211.7 million, or 0.96 percent of originated non-PCI loans and leases, compared to $211.3 million, or 1.00 percent, at December 31, 2017 and $214.5 million, or 1.08 percent, at June 30, 2017.

The remaining ALLL of $12.4 million relates to PCI loans at June 30, 2018, compared to $10.0 million and $13.5 million at December 31, 2017 and June 30, 2017, respectively. The increase from December 31, 2017 was primarily due to updated cash flow estimates and the decrease from June 30, 2017 was largely due to continued PCI loan portfolio run-off.

BancShares recorded a net provision expense of $8.4 million for loan and lease losses for the second quarter of 2018, compared to $7.6 million for the first quarter of 2018 and $12.3 million for the second quarter of 2017. The $833 thousand increase in net provision expense compared to the first quarter of 2018 was largely driven by an increase in the non-PCI provision as a result of loan growth, partially offset by a decrease in the PCI provision. The $3.9 million decline in net provision expense from the second quarter of 2017 was primarily due to decreases in the PCI and non-PCI provisions. The decrease in the non-PCI provision was a result of lower loan growth in the current quarter and lower calculated reserves on individually impaired loans, partially offset by fewer credit quality improvements in the current quarter.

Net provision expense for the six months ended June 30, 2018 was $16.0 million compared to $20.6 million for the same period of 2017. The decrease in provision expense was primarily due to favorable loan growth mix and credit quality improvements, offset by an increase in net charge-offs and an increase in the PCI provision.

On an annualized basis, total net charge-offs as a percentage of total average loans and leases for the second quarter and first quarter of 2018 was 0.11 percent compared to 0.08 percent in the second quarter of 2017. Net charge-offs for non-PCI loans and

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leases were $6.7 million during the second quarter of 2018, compared to $6.3 million and $4.5 million during the first quarter of 2018 and second quarter of 2017, respectively.

The discount related to acquired non-PCI loans and leases at June 30, 2018, December 31, 2017 and June 30, 2017 was $35.8 million, $35.0 million and $42.9 million, respectively. The discount related to PCI loans at June 30, 2018, December 31, 2017 and June 30, 2017 was $103.0 million, $111.3 million and $129.8 million, respectively.

Management considers the ALLL adequate to absorb estimated inherent losses that relate to loans and leases outstanding at June 30, 2018, although future adjustments may be necessary based on changes in economic conditions and other factors. In addition, various regulatory agencies periodically review the ALLL as part of their exam process which could result in adjustments to the ALLL based on information available to them at the time of their examination.

Table 10

Allowance for Loan and Lease Losses Components by Loan Class

	2018						2017									Six months ended June 30
	Second			First			Fourth			Third			Second
(Dollars in thousands)	Quarter			Quarter			Quarter			Quarter			Quarter			2018			2017
Allowance for loan and lease losses at beginning of period	$	223,116		$	221,893		$	231,842		$	228,798		$	220,943		$	221,893		$	218,795
Non-PCI provision (credit) for loan and lease losses
Total commercial	1,872			243			(8,615		)	2,233			3,984			2,115			11,452
Total noncommercial	6,405			5,008			8,443			6,250			5,768			11,413			9,376
Non-PCI provision (credit) for loan and lease losses	8,277			5,251			(172		)	8,483			9,752			13,528			20,828
PCI provision (credit) for loan losses	161			2,354			(2,637		)	(537		)	2,572			2,515			(273		)
Non-PCI Charge-offs:
Commercial:
Construction and land development	(8		)	—			(100		)	(9		)	(413		)	(8		)	(490		)
Commercial mortgage	(459		)	(46		)	(110		)	(39		)	(235		)	(505		)	(272		)
Other commercial real estate	(69		)	—			—			—			—			(69		)	(5		)
Commercial and industrial	(1,994		)	(1,475		)	(3,277		)	(1,275		)	(3,121		)	(3,469		)	(6,374		)
Lease financing	(445		)	(854		)	(38		)	(687		)	(97		)	(1,299		)	(270		)
Other	(38		)	(3		)	(59		)	(666		)	(64		)	(41		)	(187		)
Total commercial	(3,013		)	(2,378		)	(3,584		)	(2,676		)	(3,930		)	(5,391		)	(7,598		)
Noncommercial:
Residential mortgage	(289		)	(806		)	(300		)	(604		)	(222		)	(1,095		)	(472		)
Revolving mortgage	(1,027		)	(992		)	(1,045		)	(218		)	(280		)	(2,019		)	(1,105		)
Construction and land development	(37		)	(182		)	—			—			—			(219		)	—
Consumer	(5,312		)	(5,255		)	(4,769		)	(4,996		)	(4,991		)	(10,567		)	(9,019		)
Total noncommercial	(6,665		)	(7,235		)	(6,114		)	(5,818		)	(5,493		)	(13,900		)	(10,596		)
Total non-PCI charge-offs	(9,678		)	(9,613		)	(9,698		)	(8,494		)	(9,423		)	(19,291		)	(18,194		)
Non-PCI Recoveries:
Commercial:
Construction and land development	93			23			201			56			209			116			264
Commercial mortgage	225			239			301			1,446			731			464			1,095
Other commercial real estate	1			145			8			8			7			146			11
Commercial and industrial	638			1,219			650			433			2,392			1,857			2,657
Lease financing	4			41			240			3			—			45			6
Other	1			42			41			123			46			43			121
Total commercial	962			1,709			1,441			2,069			3,385			2,671			4,154
Noncommercial:
Residential mortgage	110			77			85			92			75			187			362
Revolving mortgage	520			194			101			228			401			714			953
Construction and land development	101			26			—			—			—			127			—
Consumer	1,330			1,309			1,227			1,203			1,093			2,639			2,173
Total noncommercial	2,061			1,606			1,413			1,523			1,569			3,667			3,488
Total non-PCI recoveries	3,023			3,315			2,854			3,592			4,954			6,338			7,642
Non-PCI loans and leases charged off, net	(6,655		)	(6,298		)	(6,844		)	(4,902		)	(4,469		)	(12,953		)	(10,552		)
PCI loans charged off, net	(34		)	(84		)	(296		)	—			—			(118		)	—
Allowance for loan and lease losses at end of period	$	224,865		$	223,116		$	221,893		$	231,842		$	228,798		$	224,865		$	228,798
Reserve for unfunded commitments	$	1,554		$	1,116		$	1,032		$	1,309		$	1,133		$	1,554		$	1,133

Second Quarter 2018 to First Quarter 2018

Provision expense for non-PCI commercial loans was $1.9 million in the second quarter of 2018, compared to $243 thousand for the first quarter of 2018. This increase of $1.6 million was primarily due to an increase in commercial and industrial loan balances, offset by the release of the construction and land development provision due to loan movement into other commercial real estate.

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Provision expense for non-PCI noncommercial loans was $6.4 million in the second quarter of 2018, compared to $5.0 million for the first quarter of 2018. This increase of $1.4 million was primarily due to loan growth, particularly within the residential mortgage loan portfolio.

Second Quarter 2018 to Second Quarter 2017

Provision expense in the second quarter of 2018 for non-PCI commercial loans was $1.9 million, down $2.1 million from $4.0 million in the second quarter of 2017 resulting from a decrease in the provision for construction and land development as loan balances were moved to other commercial real estate, offset by loan growth and updated loan loss factors.

Provision expense in the second quarter of 2018 for non-PCI noncommercial loans was $6.4 million, an increase of $637 thousand from $5.8 million in the second quarter of 2017 primarily due to loan growth, particularly within the residential mortgage loan portfolio, and updated loan loss factors.

Year-to-date 2018

Provision expense for non-PCI commercial loans was $2.1 million in the first six months of 2018, compared to $11.5 million in the same period of 2017. This decrease was primarily due to credit quality improvements and updated loan loss factors in the current year compared to the prior year.

Provision expense for non-PCI noncommercial loans was $11.4 million in the first six months of 2018, compared to $9.4 million in the same period of 2017. This increase was primarily due to loan growth, particularly within the residential mortgage loan portfolio, and updated loan loss factors.

Table 11

Allowance for Loan and Lease Losses Metrics and Ratios

	2018						2017									Six months ended June 30
	Second			First			Fourth			Third			Second
(Dollars in thousands)	Quarter			Quarter			Quarter			Quarter			Quarter			2018			2017
Average loans and leases:
PCI	$	682,521		$	733,830		$	799,399		$	865,580		$	858,053		$	708,034		$	857,778
Non-PCI	23,522,842			22,932,268			22,560,836			22,131,615			21,717,270			23,229,187			21,407,328
Loans and leases at period-end:
PCI	674,269			703,837			762,998			834,167			894,863			674,269			894,863
Non-PCI	23,864,168			22,908,140			22,833,827			22,314,906			21,976,602			23,864,168			21,976,602
Allowance for loan and lease losses allocated to loans and leases:
PCI	12,423			12,296			10,026			12,959			13,496			12,423			13,496
Non-PCI	212,442			210,820			211,867			218,883			215,302			212,442			215,302
Total	$	224,865		$	223,116		$	221,893		$	231,842		$	228,798		$	224,865		$	228,798
Net charge-offs (annualized) to average loans and leases:
PCI	0.02		%	0.05		%	0.15		%	—		%	—		%	0.03		%	—		%
Non-PCI	0.11			0.11			0.12			0.09			0.08			0.11			0.10
Total	0.11			0.11			0.12			0.08			0.08			0.11			0.10
ALLL to total loans and leases:
PCI	1.84			1.75			1.31			1.55			1.51			1.84			1.51
Non-PCI	0.89			0.92			0.93			0.98			0.98			0.89			0.98
Total	0.92			0.94			0.94			1.00			1.00			0.92			1.00

Nonperforming Assets

Nonperforming assets include nonaccrual loans and leases and OREO resulting from both non-PCI and PCI loans. At June 30, 2018, BancShares’ nonperforming assets were $133.3 million, down from $144.3 million and $150.2 million at December 31, 2017 at June 30, 2017, respectively.

Nonaccrual non-PCI loans and leases at June 30, 2018 were $85.1 million reflecting decreases of $7.5 million and $3.0 million since December 31, 2017 and June 30, 2017, respectively. The declines in both periods were primarily due to commercial and residential mortgage loans returning to accrual status and payoffs, offset by an increase in revolving mortgage loans that went on nonaccrual status during these periods. Nonaccrual PCI loans at June 30, 2018 were up $946 thousand and $258 thousand from December 31, 2017 and June 30, 2017, respectively. At June 30, 2018, OREO totaled $46.6 million, representing declines of $4.5 million and $14.1 million since December 31, 2017 and June 30, 2017, respectively, as sales and write-downs outpaced additions.

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Table 12

Nonperforming Assets

	2018						2017
	Second			First			Fourth			Third			Second
(Dollars in thousands)	Quarter			Quarter			Quarter			Quarter			Quarter
Nonaccrual loans and leases:
Non-PCI	$	85,055		$	89,260		$	92,534		$	90,064		$	88,067
PCI	1,570			1,580			624			1,017			1,312
Other real estate	46,633			48,089			51,097			53,988			60,781
Total nonperforming assets	$	133,258		$	138,929		$	144,255		$	145,069		$	150,160
Loans and leases:
Non-PCI	$	23,864,168		$	22,908,140		$	22,833,827		$	22,314,906		$	21,976,602
PCI	674,269			703,837			762,998			834,167			894,863
Total loans and leases	$	24,538,437		$	23,611,977		$	23,596,825		$	23,149,073		$	22,871,465
Accruing loans and leases 90 days or more past due
Non-PCI	$	3,179		$	3,030		$	2,978		$	3,449		$	4,192
PCI	41,266			48,229			58,740			64,801			72,586
Ratio of total nonperforming assets to total loans, leases and other real estate owned	0.54		%	0.59		%	0.61		%	0.63		%	0.65		%

Troubled Debt Restructurings (TDRs)

We have selectively agreed to modify existing loan terms to provide relief to customers who are experiencing financial difficulties or other circumstances that could affect their ability to meet debt obligations. Typical modifications include short-term deferral of interest or modification of payment terms. Nonperforming TDRs that are not accruing interest are included as nonperforming assets within nonaccrual loans and leases. TDRs that are accruing at the time of restructure and continue to perform based on the restructured terms are considered performing. Loans acquired under ASC 310-30, excluding pooled loans, are not initially considered to be TDRs, but can be classified as such if a modification is made subsequent to acquisition. Subsequent modification 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.

Table 13

Troubled Debt Restructurings

(Dollars in thousands)	June 30, 2018		December 31, 2017		June 30, 2017
Accruing TDRs:
PCI	$	18,546	$	18,163	$	19,877
Non-PCI	113,764		112,228		104,298
Total accruing TDRs	132,310		130,391		124,175
Nonaccruing TDRs:
PCI	253		272		318
Non-PCI	29,261		33,898		26,398
Total nonaccruing TDRs	29,514		34,170		26,716
All TDRs:
PCI	18,799		18,435		20,195
Non-PCI	143,025		146,126		130,696
Total TDRs	$	161,824	$	164,561	$	150,891

INTEREST-BEARING LIABILITIES

Interest-bearing liabilities include interest-bearing deposits, short-term borrowings and long-term obligations. Interest-bearing liabilities were $19.08 billion and $19.59 billion at June 30, 2018 and December 31, 2017, respectively. The $510.4 million decline from December 31, 2017 was due to decreases in long-term obligations and short-term borrowings of $628.9 million and $79.8 million, respectively, offset by an increase in interest-bearing deposits of $198.3 million. Interest-bearing liabilities were $19.08 billion at June 30, 2018, a decrease of $862.7 million from $19.95 billion at June 30, 2017 due to a $638.6 million decrease in long-term obligations, a $170.5 million decrease in short-term borrowings and a decrease of $53.6 million in interest-bearing deposits.

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Deposits

At June 30, 2018, total deposits were $30.41 billion, an increase of $1.14 billion, or 3.9 percent, compared to December 31, 2017 and an increase of $952.5 million, or 3.2 percent, when compared to June 30, 2017. The increase from both periods was primarily the result of organic growth in demand deposit and interest-bearing savings and checking account balances as well as the deposit balances acquired from the HomeBancorp acquisition of $582.2 million at June 30, 2018. These positive drivers were offset by run-off in time deposits and lower money market account balances.

Due to our focus on maintaining a strong liquidity position, core deposit retention remains a key business objective. We believe that traditional bank deposit products remain an attractive option for many customers but, as economic conditions improve, we recognize that our liquidity position could be adversely affected as bank deposits are withdrawn and invested elsewhere. Our ability to fund future loan growth is significantly dependent on our success at retaining existing deposits and generating new deposits at a reasonable cost.

Table 14

Deposits

	June 30, 2018	December 31, 2017	June 30, 2017
Demand	12,181,717	11,237,375	11,175,580
Checking with interest	5,375,126	5,230,060	5,172,860
Money market	7,963,153	8,059,271	8,078,633
Savings	2,503,367	2,340,449	2,330,646
Time	2,385,521	2,399,120	2,698,619
Total deposits	30,408,884	29,266,275	29,456,338

Short-Term Borrowings

At June 30, 2018, short-term borrowings were $614.0 million compared to $693.8 million and $784.5 million at December 31, 2017 and June 30, 2017, respectively. The $79.8 million decrease from December 31, 2017 was due to FHLB borrowing maturities of $75.0 million, the maturity of a $30.0 million repurchase agreement as well as the maturity of a $15.0 million subordinated notes payable and lower customer repurchase agreement balances. These declines were offset by additional federal funds purchased of $72.4 million and FHLB borrowings of $24.5 million. The $170.5 million decrease from June 30, 2017 was due to FHLB borrowing maturities of $85.0 million, the maturity of a $30.0 million repurchase agreement as well as the maturity of a $15.0 million subordinated notes payable and lower customer repurchase agreement balances. These declines were offset by additional federal funds purchased of $72.4 million, an increase in FHLB borrowings of $24.5 million and reclassifications of $15.0 million in FHLB borrowings from long-term obligations.

Long-Term Obligations

Long-term obligations were $241.4 million at June 30, 2018, down $628.9 million from December 31, 2017 primarily due to the extinguishment of FHLB debt obligations totaling $675.0 million and a redemption of $2.0 million aggregate principal amount of Trust Preferred Securities issued by FCB/NC Capital Trust III. These decreases were partially offset by additional subordinated debt of $21.6 million and FHLB borrowings of $18.8 million acquired from HomeBancorp as well as capital leases of $8.2 million. Long-term obligations decreased $638.6 million from June 30, 2017 primarily due to the extinguishment of FHLB debt obligations totaling $675.0 million, reclassification of $15.0 million in FHLB borrowings from long-term obligations to short-term borrowings, as well as a redemption of $2.0 million aggregate principal amount of Trust Preferred Securities issued by FCB/NC Capital Trust III. These decreases were partially offset by additional subordinated debt of $21.6 million acquired from HomeBancorp, FHLB borrowings of $18.8 million and capital leases of $12.9 million.

BancShares owns three special purpose entities – FCB/NC Capital Trust III, FCB/SC Capital Trust II and SCB Capital Trust I (the Trusts). Long-term obligations included junior subordinated debentures representing obligations to the Trusts, which may be redeemed at par in whole or in part at any time. BancShares has guaranteed all obligations of the Trusts. BancShares had the following issues of trust preferred securities and subordinated debentures owed to the Trusts:

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Table 15

Trust Preferred Securities and Subordinated Debentures

	June 30, 2018				December 31, 2017				June 30, 2017
(Dollars in thousands)	Subordinated Debentures Owed to Trust		Trust Preferred Securities of the Trusts		Subordinated Debentures Owed to Trust		Trust Preferred Securities of the Trusts		Subordinated Debentures Owed to Trust		Trust Preferred Securities of the Trusts		Maturity Date
FCB/NC Capital Trust III	$	88,145	$	85,500	$	90,207	$	87,500	$	90,206	$	87,500	June 30, 2036
FCB/SC Capital Trust II	19,588		19,000		19,588		19,000		19,588		19,000		June 15, 2034
SCB Capital Trust I	10,310		10,000		10,310		10,000		10,310		10,000		April 7, 2034
	$	118,043	$	114,500	$	120,105	$	116,500	$	120,104	$	116,500

Shareholders' Equity and Capital Adequacy

BancShares and FCB are required to meet minimum capital requirements set forth by regulatory authorities. Failure to meet minimum capital requirements may result in certain actions by regulators that could have a direct material effect on the consolidated financial statements.

In accordance with accounting principles generally accepted in the United States of America (GAAP), the unrealized gains and losses on certain assets and liabilities, net of deferred taxes, are included in AOCI within shareholders' equity. These amounts are excluded from shareholders' equity in the calculation of our capital ratios under current regulatory guidelines. Shareholders' equity was also impacted by first quarter 2018 cumulative effect adjustments of $50.0 million related to both the adoption of ASU 2016-01 for the accounting of equity investments which had an impact of $18.7 million and ASU 2018-02 for the accounting of stranded tax effects in AOCI resulting from the 2017 Tax Act which had an impact of $31.3 million.

In the aggregate, the unrealized gains and losses and cumulative effect adjustments represented a net reduction in shareholders' equity of $244.6 million at June 30, 2018, compared to a net reduction of $122.3 million at December 31, 2017 and $102.8 million at June 30, 2017. The decrease in AOCI of $122.3 million from December 31, 2017 and $141.8 million from June 30, 2017 were primarily driven by the cumulative effect adjustments recorded in the first quarter of 2018 and an increase in unrealized losses on investment securities as a result of lower market interest rates. During the current quarter, mortgage-backed securities were transferred from investments available for sale to the held to maturity portfolio. The unrealized loss on these securities at the date of transfer was $109.5 million and will be amortized out of AOCI into the consolidated statements of income over the expected remaining life of the securities. The decrease from June 30, 2017 was also attributed by the decline in the discount rate used in our defined benefit pension plans.

Table 16

Analysis of Capital Adequacy

	June 30, 2018		December 31, 2017		June 30, 2017		Regulatory minimum		Well-capitalized requirement
BancShares
Risk-based capital ratios
Tier 1 risk-based capital	13.06	%	12.88	%	12.69	%	6.00	%	8.00	%
Common equity Tier 1	13.06		12.88		12.69		4.50		6.50
Total risk-based capital	14.43		14.21		14.07		8.00		10.00
Tier 1 leverage ratio	9.99		9.47		9.33		4.00		5.00
Bank
Risk-based capital ratios
Tier 1 risk-based capital	12.71	%	12.54	%	12.55	%	6.00	%	8.00	%
Common equity Tier 1	12.71		12.54		12.55		4.50		6.50
Total risk-based capital	13.68		13.46		13.51		8.00		10.00
Tier 1 leverage ratio	9.72		9.22		9.23		4.00		5.00

Bank regulatory agencies approved regulatory capital guidelines (Basel III) aimed at strengthening existing capital requirements for banking organizations. The final rules set minimum requirements for both the quantity and quality of capital held by BancShares and FCB and included a common equity Tier 1 capital to risk-weighted assets ratio. A capital conservation buffer was also established

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and was phased in beginning January 1, 2016 at 0.625 percent above minimum risk-based capital requirements and will increase each subsequent year by an additional 0.625 percent until reaching its final level of 2.50 percent on January 1, 2019. As such, the capital conservation buffer requirement was 1.88% percent effective January 1, 2018. BancShares and FCB had capital conservation buffers above minimum risk-based capital requirements of 6.43 percent and 5.68 percent, respectively, at June 30, 2018. The buffers exceeded the 1.88% percent requirement and, therefore, resulted in no limit on distributions.

As of June 30, 2018, BancShares and FCB continued to exceed minimum capital standards and remained well-capitalized under Basel III guidelines. BancShares had no trust preferred capital securities included in Tier 1 capital at June 30, 2018 and December 31, 2017 under Basel III guidelines. Trust preferred capital securities continue to be a component of total risk-based capital.

RISK MANAGEMENT

Risk is inherent in any business. Senior management has primary responsibility for day-to-day management of the risks we face with accountability of and support from all company associates.  The Board of Directors strives to ensure that the business culture is integrated with the risk management program and that policies and procedures for identifying, assessing, measuring, monitoring, and managing risk are part of the decision-making process. The Board of Director’s role in risk oversight is an integral part of our overall Enterprise Risk Management Framework.  The Board of Directors administers its risk oversight function primarily through the Board Risk Committee.

The Board Risk Committee structure is designed to allow for information flow and timely escalation of risk related issues. The Board Risk Committee is directed to monitor and advise the Board of Directors regarding risk exposures, including credit, market, capital, liquidity, operational, compliance, strategic, legal, and reputational risks; review, approve and monitor adherence to the risk appetite and supporting risk tolerance levels; and evaluate, monitor and oversee the adequacy and effectiveness of the Enterprise Risk Management Framework. The Board Risk Committee also reviews reports of examination by and communications from regulatory agencies; the results of internal and third party testing and assessments related to risk management; and any other matters within the scope of the Committee’s oversight responsibilities. The Board Risk Committee monitors management's response to certain risk related regulatory or audit issues. In addition, the Board Risk Committee may coordinate with the Audit Committee for the review of financial statements and related risks, information security and other areas of joint responsibility.

In combination with other risk management and monitoring practices, enterprise wide stress testing activities are part of our risk management program. Stress tests are performed for various risks to ensure the financial institution can support continued operations during stressed periods.

Enactment of the Economic Growth, Regulatory Relief, and Consumer Protection Act in May 2018 significantly altered several provisions of the Dodd-Frank Act, including how stress tests are run.  Bank holding companies with assets of less than $100 billion, such as BancShares, are no longer be subject to company-run stress testing requirements in section 165(i)(2) of the Dodd-Frank Act, including publishing a summary of results. BancShares will continue to monitor and stress test its capital consistent with the safety and soundness expectations of the federal regulators, however, BancShares will no longer conduct company-run stress testing under the Dodd-Frank Act.

Credit risk management. Credit risk is the risk of not collecting payments pursuant to the contractual terms of loans, leases and certain investment securities. Loans and leases, other than acquired loans, are underwritten in accordance with our credit policies and procedures and are subject to periodic ongoing reviews. Acquired loans, regardless of whether PCI or non-PCI, are recorded at fair value as of the acquisition date and are subject to periodic reviews to identify any further credit deterioration. Our independent credit review function conducts risk reviews and analyses of both acquired and originated loans to ensure compliance with credit policies and to monitor asset quality trends and borrower financial strength. The risk reviews include portfolio analysis by geographic location, industry, collateral type and product. We strive to identify potential problem loans as early as possible, to record charge-offs or write-downs as appropriate and to maintain an adequate ALLL that accounts for losses that are inherent in the loan and lease portfolio.

Interest rate risk management. Interest rate risk (IRR) results principally from assets and liabilities maturing or repricing at different points in time, from assets and liabilities repricing at the same point in time but in different amounts, and from short-term and long-term interest rates changing in different magnitudes.

We assess our short-term IRR by forecasting net interest income over 24 months under various interest rate scenarios and comparing those results to forecast net interest income assuming stable rates. Rate shock scenarios represent an instantaneous and parallel shift in rates, up or down, from a base yield curve. Despite the current increase in market interest rates, the overall rate on interest-bearing deposits remains relatively low and as such, it is unlikely that the rates on most interest-bearing deposits can decline materially from current levels. Our shock projections incorporate assumptions of likely customer migration from low rate deposit instruments to intermediate term fixed rate instruments, such as certificates of deposit, as rates rise. Various other IRR scenarios

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are modeled to supplement shock scenarios. This may include interest rate ramps, changes in the shape of the yield curve and changes in the relationships of FCB rates to market rates.

Table 17

Net Interest Income Sensitivity Simulation Analysis

This table provides the impact on net interest income over 24 months resulting from various instantaneous interest rate shock scenarios as of June 30, 2018 and December 31, 2017.

	Estimated percentage increase (decrease) in net interest income
Change in interest rate (basis points)	June 30, 2018		December 31, 2017
-100	(10.45	)%	(12.25	)%
+100	3.13		3.66
+200	3.56		4.61
+300	1.06		2.43

Net interest income sensitivity metrics at June 30, 2018 compared to December 31, 2017 were primarily affected by a shift in the earning asset mix with a decrease in overnight investments and growth in the fixed rate loan portfolio, partially offset by a favorable change in the deposit mix from growth in non-interest bearing deposits.

Table 18

Economic Value of Equity Modeling Analysis

Long-term interest rate risk exposure is measured using the economic value of equity (EVE) sensitivity analysis to study the impact of long-term cash flows on earnings and capital. EVE represents the difference between the sum of the present value of all asset cash flows and the sum of the present value of the liability cash flows. EVE sensitivity analysis involves discounting cash flows of balance sheet items under different interest rate scenarios. Cash flows will vary by interest rate scenario, resulting in variations in EVE. The base-case measurement and its sensitivity to shifts in the yield curve allow management to measure longer-term repricing and option risk in the balance sheet. This table presents the EVE profile as of June 30, 2018 and December 31, 2017.

	Estimated percentage increase (decrease) in EVE
Change in interest rate (basis points)	June 30, 2018		December 31, 2017
-100	(15.10	)%	(15.44	)%
+100	3.36		3.38
+200	1.06		1.06
+300	(5.22	)	(5.52	)

The economic value of equity metrics at June 30, 2018 compared to December 31, 2017 remained relatively stable with increases in the scenarios due primarily to a change in decay assumptions used for non-maturity deposits beginning in the second quarter of 2018 being offset by the prepayment of eight FHLB debt obligations totaling $675.0 million in the first quarter of 2018.

We do not typically utilize interest rate swaps, floors, collars or other derivative financial instruments to attempt to hedge our overall balance sheet rate sensitivity and interest rate risk.

Liquidity risk management. Liquidity risk is the risk that an institution is unable to generate or obtain sufficient cash or its equivalents on a cost-effective basis to meet commitments as they fall due. The most common sources of liquidity risk arise from mismatches in the timing and value of on-balance sheet and off-balance sheet cash inflows and outflows. In general, on-balance sheet mismatches generate liquidity risk when the effective maturity of assets exceeds the effective maturity of liabilities. A commonly cited example of a balance sheet liquidity mismatch is when long-term loans (assets) are funded with short-term borrowings (liabilities). Other forms of liquidity risk include market constraints on the ability to convert assets into cash at expected levels, an inability to access funding sources at sufficient levels at a reasonable cost, and changes in economic conditions or exposure to credit, market, operational, legal and reputation risks that can affect an institution’s liquidity risk profile.

We utilize various limit-based measures to monitor, measure and control liquidity risk across three different types of liquidity:

• Tactical liquidity measures the risk of a negative cash flow position whereby cash outflows exceed cash inflows over a short-term horizon out to nine weeks;

• Structural liquidity measures the amount by which illiquid assets are supported by long-term funding; and

• Contingent liquidity utilizes cash flow stress testing across three crisis scenarios to determine the adequacy of our liquidity.

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We aim to maintain a diverse mix of liquidity sources to support the liquidity management function, while aiming to avoid funding concentrations by diversifying our external funding with respect to maturities, counterparties and nature. Our primary source of liquidity is our retail deposit book due to the generally stable balances and low cost it offers. Additional sources include cash in excess of our reserve requirement at the Federal Reserve Bank, and various other corresponding bank accounts and unencumbered securities, which totaled $4.21 billion at June 30, 2018 compared to $3.70 billion at December 31, 2017. Another source of available funds is advances from the FHLB of Atlanta. Outstanding FHLB advances were $128.7 million as of June 30, 2018, and we had sufficient collateral pledged to secure $6.09 billion of additional borrowings. Also, at June 30, 2018, $2.88 billion in noncovered loans with a lendable collateral value of $2.17 billion were used to create additional borrowing capacity at the Federal Reserve Bank. We also maintain Federal Funds lines which had $615.0 million of available capacity at June 30, 2018.

CRITICAL ACCOUNTING POLICIES

There have been no significant changes in our Critical Accounting Policies as described in our 2017 Annual Report on Form 10-K.

FORWARD-LOOKING STATEMENTS

Statements in this Report and exhibits relating to plans, strategies, economic performance and trends, projections of results of specific activities or investments, expectations or beliefs about future events or results and other statements that are not descriptions of historical facts may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934.

Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors which include, but are not limited to, factors discussed in our Annual Report on Form 10-K and in other documents filed by us from time to time with the Securities and Exchange Commission.

Forward-looking statements may be identified by terms such as “may,” “will,” “should,” “could,” “expects,” “plans,” “intends,” “anticipates,” “believes,” “estimates,” “predicts,” “forecasts,” “projects,” “potential” or “continue,” or similar terms or the negative of these terms, or other statements concerning opinions or judgments of BancShares’ management about future events.

Factors that could influence the accuracy of those forward-looking statements include, but are not limited to, the financial success or changing strategies of our customers, customer acceptance of our services, products and fee structure, the competitive nature of the financial services industry, our ability to compete effectively against other financial institutions in our banking markets, actions of government regulators, the level of market interest rates and our ability to manage our interest rate risk, changes in general economic conditions that affect our loan and lease portfolio, the abilities of our borrowers to repay their loans and leases, the values of real estate and other collateral, the impact of the FDIC-assisted transactions, the risks discussed in Part II, Item 1A. Risk Factors and other developments or changes in our business that we do not expect.

Actual results may differ materially from those expressed in or implied by any forward-looking statements. Except to the extent required by applicable law or regulation, BancShares undertakes no obligation to revise or update publicly any forward-looking statements for any reason.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Market risk is the potential economic loss resulting from changes in market prices and interest rates. This risk can either result in diminished current fair values of financial instruments or reduced net interest income in future periods. As of June 30, 2018, BancShares’ market risk profile has not changed significantly from December 31, 2017, as discussed in the Form 10-K. Changes in fair value that result from movement in market rates cannot be predicted with any degree of certainty. Therefore, the impact that future changes in market rates will have on the fair values of financial instruments is uncertain.

Item 4.    Controls and Procedures

BancShares' management, with the participation of its Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the design and operation of BancShares' disclosure controls and procedures as of the end of the period covered by this Quarterly Report, in accordance with Rule 13a-15 of the Securities Exchange Act of 1934 (Exchange Act). Based upon that evaluation, as of the end of the period covered by this report, the Chief Executive Officer and the Chief Financial Officer concluded that BancShares' disclosure controls and procedures were effective to provide reasonable assurance that it is able to record, process, summarize and report in a timely manner the information required to be disclosed in the reports it files under the Exchange Act.

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No changes in BancShares' internal control over financial reporting occurred during the second quarter of 2018 that have materially affected, or are reasonably likely to materially affect, BancShares' internal control over financial reporting.

PART II

Item 1. Legal Proceedings

BancShares and various subsidiaries have been named as defendants in various legal actions arising from our normal business activities in which damages in various amounts are claimed. Although the amount of any ultimate liability with respect to those matters cannot be determined, in the opinion of management, no legal actions currently exist that are expected to have a material effect on BancShares’ consolidated financial statements. Additional information relating to legal proceedings is set forth in Note L of BancShares' Notes to Unaudited Consolidated Financial Statements.

Item 1A. Risk Factors

There have been no material changes from the risk factors previously disclosed in our Form 10-K for the year ended December 31, 2017.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 6. Exhibits

31.1	Certification of Chief Executive Officer (filed herewith)
31.2	Certification of Chief Financial Officer (filed herewith)
32.1	Certification of Chief Executive Officer (filed herewith)
32.2	Certification of Chief Financial Officer (filed herewith)
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date:	August 2, 2018		FIRST CITIZENS BANCSHARES, INC.
			(Registrant)
		By:	/s/ CRAIG L. NIX
			Craig L. Nix
			Chief Financial Officer

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EX-31.1

Exhibit 31.1

CERTIFICATION

I, Frank B. Holding, Jr., certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of First Citizens BancShares, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2018

/s/ Frank B. Holding, Jr.

Frank B. Holding, Jr.

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Craig L. Nix, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q of First Citizens BancShares, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 2, 2018

/s/ Craig L. Nix

Craig L. Nix

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION

The undersigned hereby certifies that (i) the Form 10-Q filed by First Citizens BancShares, Inc. (the “Issuer”) for the period ended June 30, 2018, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in that report fairly presents, in all material respects, the financial condition and results of operations of the Issuer on the dates and for the periods presented therein.

August 2, 2018

/s/ Frank B. Holding, Jr.

Frank B. Holding, Jr.

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION

The undersigned hereby certifies that (i) the Form 10-Q filed by First Citizens BancShares, Inc. (the “Issuer”) for the period ended June 30, 2018, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and (ii) the information contained in that report fairly presents, in all material respects, the financial condition and results of operations of the Issuer on the dates and for the periods presented therein.

August 2, 2018

/s/ Craig L. Nix

Craig L. Nix

Chief Financial Officer

XML

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 01, 2018
Entity Registrant Name	FIRST CITIZENS BANCSHARES INC /DE/
Entity Central Index Key	0000798941
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A Common Stock
Entity Common Stock, Shares Outstanding		11,005,220
Class B Common Stock
Entity Common Stock, Shares Outstanding		1,005,185

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets
Cash and due from banks	$ 260,525	$ 336,150
Overnight investments	1,223,311	1,387,927
Marketable equity securities	107,264	0
Investment securities available for sale	4,783,507	7,180,180
Investment securities held to maturity	2,299,774	76
Loans held for sale	58,961	51,179
Loans and Leases	24,538,437	23,596,825
Less allowance for loan and lease losses	(224,865)	(221,893)
Net loans and leases	24,313,572	23,374,932
Premises and equipment	1,167,532	1,138,431
Other real estate	46,633	51,097
Income earned not collected	99,567	95,249
Goodwill	208,217	150,601
Other intangible assets	77,370	73,096
Other assets	442,333	688,594
Total assets	35,088,566	34,527,512
Liabilities
Noninterest-bearing deposits	12,181,717	11,237,375
Interest-bearing deposits	18,227,167	18,028,900
Total deposits	30,408,884	29,266,275
Short-term borrowings	613,993	693,807
Long-term obligations	241,360	870,240
FDIC shared-loss payable	103,487	101,342
Other liabilities	273,956	261,784
Total liabilities	31,641,680	31,193,448
Shareholders' Equity
Surplus	658,918	658,918
Retained earnings	3,020,596	2,785,430
Accumulated other comprehensive loss	(244,638)	(122,294)
Total shareholders' equity	3,446,886	3,334,064
Total liabilities and shareholders' equity	35,088,566	34,527,512
Class A Common Stock
Shareholders' Equity
Common stock	11,005	11,005
Class B Common Stock
Shareholders' Equity
Common stock	$ 1,005	$ 1,005

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Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Preferred Stock, Shares Outstanding	0	0
Class A Common Stock
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shared authorized	16,000,000	16,000,000
Common stock, shares issued	11,005,220	11,005,220
Common stock, shares outstanding	11,005,220	11,005,220
Class B Common Stock
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shared authorized	2,000,000	2,000,000
Common stock, shares issued	1,005,185	1,005,185
Common stock, shares outstanding	1,005,185	1,005,185
Loans Held For Sale
Fair value of originated loans held for sale	$ 58,961	$ 51,179

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Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Interest income
Loans and leases	$ 261,086	$ 235,732	$ 513,068	$ 462,362
Investment securities:
Total investment securities interest and dividend income	37,179	30,406	72,199	60,157
Overnight investments	5,612	6,404	11,211	10,880
Total interest income	303,877	272,542	596,478	533,399
Interest expense
Deposits	4,521	4,132	8,277	8,568
Short-term borrowings	821	1,176	2,255	1,756
Long-term obligations	2,316	5,625	5,290	11,123
Total interest expense	7,658	10,933	15,822	21,447
Net interest income	296,219	261,609	580,656	511,952
Provision (credit) for loan and lease losses	8,438	12,324	16,043	20,555
Net interest income after provision for loan and lease losses	287,781	249,285	564,613	491,397
Noninterest income
Gain on acquisitions	0	122,728	0	134,745
Revenue from contract with customers	90,486	84,770	179,221	166,981
Securities gains (losses), net	0	3,351	0	3,327
Marketable equity securities gain (loss), net	4,440	0	5,411	0
Net Impact from FDIC shared-loss termination	0	0	0	(45)
Gain (Loss) on Extinguishment of Debt	0	0	25,814	0
Other	6,001	6,792	13,165	12,279
Total noninterest income	100,927	217,641	223,611	317,287
Noninterest expense
Salaries and wages	129,841	121,826	259,044	238,188
Employee benefits	29,715	25,383	61,806	52,560
Occupancy expense	26,100	26,059	54,054	50,821
Equipment expense	25,167	24,654	50,141	49,242
Merchant processing				20,800
Cardholder processing				6,800
FDIC insurance expense	5,492	5,705	11,225	11,298
Foreclosure-related expenses	3,974	2,376	8,120	6,139
Merger-related expenses	2,412	6,853	3,010	7,686
Other	43,292	42,191	86,656	75,812
Total noninterest expense	265,993	255,047	534,056	491,746
Income before income taxes	122,715	211,879	254,168	316,938
Income taxes	29,424	77,219	60,646	114,657
Net income	$ 93,291	$ 134,660	$ 193,522	$ 202,281
Average shares outstanding (in shares)	12,010,405	12,010,405	12,010,405	12,010,405
Net income per share	$ 7.77	$ 11.21	$ 16.11	$ 16.84
Cardholder services, net
Noninterest income
Revenue from contract with customers	$ 14,925	$ 14,518	$ 29,707	$ 27,361
Merchant services, net
Noninterest income
Revenue from contract with customers	6,478	5,800	12,655	11,556
Service charges on deposit accounts
Noninterest income
Revenue from contract with customers	25,952	25,862	52,495	48,004
Wealth management services
Noninterest income
Revenue from contract with customers	25,515	21,920	49,084	42,882
Other service charges and fees
Noninterest income
Revenue from contract with customers	7,756	6,628	15,236	14,229
Mortgage income
Noninterest income
Revenue from contract with customers	4,703	4,966	8,940	12,542
Insurance commissions
Noninterest income
Revenue from contract with customers	2,940	2,563	6,716	6,121
ATM income
Noninterest income
Revenue from contract with customers	$ 2,217	$ 2,513	$ 4,388	$ 4,286

XML

Consolidated Statement of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Statement of Comprehensive Income [Abstract]
Net income	$ 93,291	$ 134,660	$ 193,522	$ 202,281
Unrealized gains and losses on securities:
Change in unrealized securities gains (losses) arising during period	82,789	13,771	4,155	49,867
Tax effect	(19,042)	(5,125)	(954)	(18,544)
Reclassification adjustment for net gains realized and included in income before income taxes	0	(3,351)	0	(3,327)
Tax effect	0	1,240	0	1,231
Total change in unrealized gains and losses on securities, net of tax	63,747	6,535	3,201	29,227
Unrealized losses on securities available for sale transferred to held to maturity
Unrealized Losses On Securities Available For Sale Transferred To Held To Maturity Arising During Period Before Tax	(109,507)	0	(109,507)	0
Tax effect	25,186	0	25,186	0
Reclassification Adjustment For Accretion On Unrealized Losses On Securities Available For Sale Transferred To Held To Maturity Arising During Period Before Tax	4,473	0	4,473	0
Tax effect	(1,028)	0	(1,028)	0
Unrealized Losses On Securities Available For Sale Transferred To Held To Maturity Arising During Period Net Of Tax	(80,876)	0	(80,876)	0
Change in pension obligation:
Amortization of actuarial losses and prior service cost	3,654	2,460	6,991	4,960
Tax effect	(840)	(897)	(1,608)	(1,838)
Total change in pension obligation, net of tax	2,814	1,563	5,383	3,122
Net current period other comprehensive (loss) income	(14,315)	8,098	(72,292)	32,349
Total comprehensive income	$ 78,976	$ 142,758	$ 121,230	$ 234,630

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Consolidated Statements of Changes In Shareholders' Equity - USD ($) $ in Thousands	Total	Common Stock Class A Common Stock	Common Stock Class B Common Stock	Surplus	Retained Earnings	Accumulated Other Comprehensive Loss	Financial Instruments ASU cumulative effect adjustment	Financial Instruments ASU cumulative effect adjustment Retained Earnings	Financial Instruments ASU cumulative effect adjustment Accumulated Other Comprehensive Loss	Income tax ASU cumulative effect adjustment	Income tax ASU cumulative effect adjustment Retained Earnings	Income tax ASU cumulative effect adjustment Accumulated Other Comprehensive Loss
Shareholders' equity	$ 3,012,427	$ 11,005	$ 1,005	$ 658,918	$ 2,476,691	$ (135,192)
Net income	202,281	0	0	0	202,281	0
Other comprehensive income, net of tax	32,349	0	0	0	0	32,349
Cash dividends	(7,206)	0	0	0	(7,206)	0
Shareholders' equity	3,239,851	11,005	1,005	658,918	2,671,766	(102,843)
Shareholders' equity	3,334,064	11,005	1,005	658,918	2,785,430	(122,294)
Net income	193,522	0	0	0		0
Other comprehensive income, net of tax	(72,292)	0	0	0	0	(72,292)
Cash dividends	(8,408)	0	0	0	(8,408)	0
Cumulative Effect of New Accounting Principle in Period of Adoption							$ 18,700	$ 18,700	$ (18,700)	$ 31,300	$ 31,300	$ (31,300)
Shareholders' equity	$ 3,446,886	$ 11,005	$ 1,005	$ 658,918	$ 3,020,596	$ (244,638)

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Consolidated Statements of Changes In Shareholders' Equity (Parenthetical) - $ / shares	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Statement of Stockholders' Equity [Abstract]
Cash dividends (in dollars per share)	$ 0.70	$ 0.60

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
OPERATING ACTIVITIES
Net income	$ 193,522	$ 202,281
Adjustments to reconcile net income to cash provided by operating activities:
Provision (credit) for loan and lease losses	16,043	20,555
Deferred tax expense (benefit)	(2,835)	45,628
Net change in current taxes	(16,609)	17,404
Depreciation	47,343	45,420
Net increase (decrease) in accrued interest payable	(2,043)	1,344
Net (increase) decrease in income earned not collected	(1,601)	(290)
Gain on acquisitions	0	(134,745)
Securities (gains) losses, net	0	(3,327)
Marketable equity securities gain (loss), net	(5,411)	0
Gain on extinguishment of debt	(25,814)	0
Loss on termination of FDIC shared-loss agreements	0	45
Origination of loans held for sale	(304,580)	(299,136)
Proceeds from sale of loans held for sale	302,766	309,791
Gain on sale of loans held for sale	(5,610)	(6,279)
(Gain) loss on sale of portfolio loans	0	(164)
Net writedowns/losses on other real estate	2,698	2,160
(Gain) loss on sales of premises and equipment	0	(159)
Net accretion of premiums and discounts	(17,240)	(22,918)
Amortization of intangible assets	11,562	11,045
Reduction FDIC receivable for shared-loss agreements	0	4,821
Net increase (decrease) in FDIC payable for shared-loss agreements	2,145	2,118
Net change in other assets	310,635	(34,340)
Net change in other liabilities	14,998	29,647
Net cash provided by operating activities	519,969	190,901
INVESTING ACTIVITIES
Net change in loans outstanding	(360,764)	(462,385)
Purchases of investment securities available for sale	(920,356)	(1,186,883)
Payments to Acquire Marketable Securities	(2,818)	0
Proceeds from maturities of investment securities held to maturity	78,384	18
Proceeds from maturities of investment securities available for sale	797,739	1,140,459
Proceeds from sales of investment securities available for sale	119,273	517,588
Proceeds from Sale and Maturity of Marketable Securities	8,493	0
Net change in overnight investments	175,009	(908,583)
Proceeds from sales of portfolio loans	0	32,294
Cash (paid to) received from the FDIC for shared-loss agreements	0	(5,197)
Net payment to the FDIC for termination of shared-loss agreements	0	(285)
Proceeds from sale of other real estate	15,769	20,236
Proceeds fro sales of premises and equipment	198	2,305
Additions to premises and equipment	(59,603)	(35,912)
Net cash acquired in business acquisitions	(106,298)	300,703
Net cash (used) provided by investing activities	(254,974)	(585,642)
FINANCING ACTIVITIES
Net change in time deposits	(181,889)	(238,751)
Net change in demand and other interest-bearing deposits	704,909	429,684
Net change in short-term borrowings	(201,303)	61,030
Repayment of long-term obligations	(653,929)	(7,985)
Origination of long-term obligations	0	175,000
Cash dividends paid	(8,408)	(7,206)
Net cash provided (used) by financing activities	(340,620)	411,772
Change in cash and due from banks	(75,625)	17,031
Cash and due from banks at beginning of period	336,150	539,741
Cash and due from banks at end of period	260,525	556,772
SUPPLEMENTAL DISCLOSURE OF NONCASH INVESTING AND FINANCING ACTIVITIES:
Transfers of loans to other real estate	11,868	21,891
Dividends declared but not paid	4,204	3,603
Transfer of Portfolio Loans and Leases to Held-for-sale	$ 0	$ 84,509

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Accounting Policies and Basis of Presentation

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Accounting Policies and Basis of Presentation

ACCOUNTING POLICIES AND BASIS OF PRESENTATION

First Citizens BancShares, Inc. (BancShares) is a financial holding company organized under the laws of Delaware and conducts operations through its banking subsidiary, First-Citizens Bank & Trust Company (FCB), which is headquartered in Raleigh, North Carolina.

General

These consolidated financial statements and notes thereto are presented in accordance with instructions for Form 10-Q and Article 10 of Regulation S-X and, therefore, do not include all information and notes necessary for a complete presentation of financial position, results of operations and cash flow activity required in accordance with accounting principles generally accepted in the United States of America (GAAP). In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the consolidated financial position and consolidated results of operations have been made. The unaudited interim consolidated financial statements included in this Form 10-Q should be read in conjunction with the consolidated financial statements and notes to consolidated financial statements included in BancShares' Annual Report on Form 10-K for the year ended December 31, 2017.

Reclassifications

In certain instances, amounts reported in prior years' consolidated financial statements have been reclassified to conform to the current financial statement presentation. Such reclassifications had no effect on previously reported cash flows, shareholders' equity or net income.

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates, and different assumptions in the application of these policies could result in material changes in BancShares' consolidated financial position, the consolidated results of its operations or related disclosures. Material estimates that are particularly susceptible to significant change include:

• Allowance for loan and lease losses;

• Fair value of financial instruments, including acquired assets and assumed liabilities;

• Pension plan assumptions;

• Cash flow estimates on purchased credit-impaired (PCI) loans;

• Goodwill and other intangible assets;

• Federal Deposit Insurance Corporation (FDIC) shared-loss payable; and

• Income tax assets, liabilities and expense

Recently Adopted Accounting Pronouncements

FASB ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

This ASU requires a reclassification from accumulated other comprehensive income (AOCI) to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (Tax Act), which was enacted on December 22, 2017. The Tax Act included a reduction to the corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. The amount of the reclassification would be the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We adopted the guidance effective in the first quarter of 2018. The change in accounting principle was accounted for as a cumulative-effect adjustment to the balance sheet resulting in a $31.3 million increase to retained earnings and a corresponding decrease to AOCI on January 1, 2018.

FASB ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

This ASU requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Employers will present the other components separately from the line item that includes the service cost. In addition, only the service cost component of net benefit cost is eligible for capitalization.

The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted the guidance effective in the first quarter of 2018. The adoption did not have a material impact on our consolidated financial position or consolidated results of operations.

FASB ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities

This ASU addresses certain aspects of recognition, measurement, presentation and disclosure of certain financial instruments. The amendments in this ASU (1) require most equity investments to be measured at fair value with changes in fair value recognized in net income; (2) simplify the impairment assessment of equity investments without a readily determinable fair value; (3) eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet; (4) require public business entities to use exit price notion, rather than entry prices, when measuring fair value of financial instruments for disclosure purposes; (5) require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the accompanying notes to the financial statements; (6) require separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; and (7) state that a valuation allowance on deferred tax assets related to available-for-sale securities should be evaluated in combination with other deferred tax assets.

The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted the guidance effective in the first quarter of 2018. The change in accounting principle was accounted for as a cumulative-effect adjustment to the balance sheet resulting in an $18.7 million increase to retained earnings and a decrease to AOCI on January 1, 2018. With the adoption of this ASU equity securities can no longer be classified as available for sale, as such marketable equity securities are disclosed as a separate line item on the balance sheet with changes in the fair value of equity securities reflected in net income.

For equity investments without a readily determinable fair value, BancShares has elected to measure the equity investments using the measurement alternative which requires BancShares to make a qualitative assessment of whether the investment is impaired at each reporting period. Under the measurement alternative these investments will be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. If a qualitative assessment indicates that the investment is impaired, BancShares will estimate the investment's fair value in accordance with ASC 820 and, if the fair value is less than the investment's carrying value, recognize an impairment loss in net income equal to the difference between carrying value and fair value. Equity investments without a readily determinable fair value are recorded within other assets in the consolidated balance sheets.

FASB ASU 2014-09, Revenue from Contracts with Customers (Topic 606)

In May 2014, the FASB issued a standard on the recognition of revenue from contracts with customers with the core principle being for a company to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard, which provides a five step model to determine when and how revenue is recognized, also results in enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively and improves guidance for multiple-element arrangements.

Per ASU 2015-14, Deferral of the Effective Date, this guidance was deferred and is effective for fiscal periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We adopted the guidance effective in the first quarter of 2018. Our revenue is comprised primarily of net interest income on financial assets and liabilities, which is explicitly excluded from the scope of the new guidance, and noninterest income. The contracts that are in scope of the guidance are primarily related to cardholder and merchant services income, service charges on deposit accounts, wealth management services income, other service charges and fees, insurance commissions, ATM income, sales of other real estate and other. Based on our overall assessment of revenue streams and review of related contracts affected by the ASU, the adoption of this guidance did not change the method in which we currently recognize revenue.

We also completed an evaluation of the costs related to these revenue streams to determine whether such costs should be presented as expenses or contra-revenue (i.e., gross vs. net). Based on this evaluation, we determined that the classification of cardholder and merchant processing costs as well as expenses for cardholder reward programs should be netted against cardholder and merchant services income. We used the full retrospective method of adoption and restated the prior financial statements to net the cardholder and merchant processing costs against the related cardholder and merchant services income. These classification changes resulted in changes to both noninterest income and noninterest expense, however, there was no change to previously reported net income. Merchant processing expenses of $20.8 million and $40.0 million have been reclassified and reported as a component of merchant services income for the three and six months ended June 30, 2017, respectively. Cardholder processing expenses of $6.8 million and cardholder reward programs expense of $3.0 million have been reclassified and reported as a component of cardholder services income for the three months ended June 30, 2017. For the six months ended June 30, 2017, cardholder processing expenses of $12.7 million and cardholder reward programs expense of $5.5 million were reclassified and reported as a component of cardholder services income.

Revenue Recognition

The standard requires disclosure of qualitative and quantitative information surrounding the amount, nature, timing and uncertainty of revenues and cash flows arising from contracts with customers. The core principle of the new standard is that revenue should be recognized when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.

Descriptions of our noninterest revenue-generating activities that are within the scope of the new revenue ASU is broadly segregated as follows:

Cardholder and Merchant Services - These represent interchange fees from customer debit and credit card transactions that are earned at the time a cardholder engages in a transaction with a merchant as well as fees charged to merchants for providing them the ability to accept and process the debit and credit card transaction. Revenue is recognized when the performance obligation has been met as it is satisfied upon the completion of the card transaction. Additionally, ASU 2014-09 requires costs associated with cardholder and merchant services transactions to be netted against the fees from such transactions when an entity is acting as an agent in providing services to a customer.

Service Charges on Deposit Accounts - These deposit account-related fees represent monthly account maintenance and transaction-based service fees such as overdraft fees, stop payment fees and charges for issuing cashier's checks and money orders. For account maintenance services, revenue is recognized at the end of the statement period when our performance obligation has been satisfied. All other revenues from transaction-based services are recognized at a point in time when the performance obligation has been completed.

Wealth Management Services - These primarily represent annuity fees, sales commissions, management fees, insurance sales, and trust and asset management fees. The performance obligation for wealth management services is the provision of services to place annuity products issued by the counterparty to investors, and the provision of services to manage the client’s assets, including brokerage custodial and other management services. Revenue is recognized over the period in which services are performed, are based on a percentage of the value of the assets under management/administration, and are fixed or variable based on account type, or are transaction-based.

Other Service Charges and Fees - These include, but are not limited to, check cashing fees, international banking fees, internet banking fees, wire transfer fees and safe deposit fees. These fees are charged, and revenue is recognized, at the point in time the service being requested by the customer is provided thus satisfying our performance obligation.

Insurance Commissions - These represent commissions earned on the issuance of insurance products and services. The performance obligation is generally satisfied upon the issuance of the insurance policy and revenue is recognized when the commission payment is remitted by the insurance carrier or policy holder depending on if the billing is performed by FCB or the carrier.

ATM Income - These represent fees imposed on customers and non-customers for engaging in an ATM transaction. Revenue is recognized at the time of the transaction as the performance obligation of rendering the ATM service has been met.

Sales of Other Real Estate - ORE property consists of foreclosed real estate used as collateral for loans, closed branches, land acquired and no longer intended for future use by FCB, and other real estate purchased for resale as ORE. Revenue is generally recognized on the date of sale where the performance obligation of providing access and transferring control of the specified ORE property to the buyer in good faith and good title is satisfied. This is recorded as a component of other noninterest income.

Other - This consists of several forms of recurring revenue such as external rental income, parking income, FHLB dividends, and income earned on changes in the cash surrender value of bank-owned life insurance, all of which are outside the scope of ASU 2014-09. The remaining miscellaneous income is the result of immaterial transactions where revenue is recognized when, or as, the performance obligation is satisfied.

Recently Issued Accounting Pronouncements

FASB ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment

This ASU eliminates Step 2 from the goodwill impairment test. Under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative test.

This ASU will be effective for BancShares' annual or interim goodwill impairment tests for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We expect to adopt the guidance for our annual impairment test in fiscal year 2020. BancShares does not anticipate any impact to our consolidated financial position or consolidated results of operations as a result of the adoption.

FASB ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

This ASU eliminates the delayed recognition of the full amount of credit losses until the loss was probable of occurring and instead will reflect an entity's current estimate of all expected credit losses. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The ASU does not specify a method for measuring expected credit losses and allows an entity to apply methods that reasonably reflect its expectations of the credit loss estimate based on the entity's size, complexity and risk profile. In addition, the disclosures of credit quality indicators in relation to the amortized cost of financing receivables, a current disclosure requirement, are further disaggregated by year of origination.

The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. We will adopt the guidance by the first quarter of 2020 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. For BancShares, the standard will apply to loans, unfunded loan commitments and debt securities. A cross-functional team co-led by Corporate Finance and Risk Management is in place to implement the new standard. The team continues to work on critical activities such as building models, documenting accounting policies, reviewing data quality, and implementing a reporting and disclosure solution. We continue to evaluate the impact the new standard will have on our consolidated financial statements but the magnitude of this impact has not been determined. The final impact will be dependent, among other items, on loan portfolio composition and credit quality at the adoption date, as well as economic conditions, financial models used and forecasts at that time.

FASB ASU 2016-02, Leases (Topic 842)

This ASU increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The key difference between existing standards and this ASU is the requirement for lessees to recognize all lease contracts on their balance sheet. This ASU requires lessees to classify leases as either operating or finance leases, which are substantially similar to the current operating and capital leases classifications. The distinction between these two classifications under the new standard does not relate to balance sheet treatment, but relates to treatment in the statements of income and cash flows. Lessor guidance remains largely unchanged with the exception of how a lessor determines the appropriate lease classification for each lease to better align the lessor guidance with revised lessee classification guidance.

The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We will adopt during the first quarter of 2019. We expect an increase to the Consolidated Balance Sheets for right-of-use assets and associated lease liabilities, as well as resulting depreciation expense of the right-of-use assets and interest expense of the lease liabilities in the Consolidated Statements of Income, for arrangements previously accounted for as operating leases. Additionally, adding these assets to our balance sheet will impact our total risk-weighted assets used to determine our regulatory capital levels. Our impact analysis on this change in accounting principle estimates an increase to the Consolidated Balance Sheets for total lease liability ranging between $65.0 million and $85.0 million, as the initial gross up of both assets and liabilities. Capital is expected to be adversely impacted by an estimated four to six basis points. These are preliminary estimates subject to change and will continue to be refined closer to adoption.

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Business Combinations

6 Months Ended

Jun. 30, 2018

Business Combinations [Abstract]

Business Combinations

NOTE B - BUSINESS COMBINATIONS

Palmetto Heritage Bancshares, Inc.

On July 25, 2018, First Citizens Bank and Palmetto Heritage Bancshares, Inc. announced the signing of a definitive merger agreement. The agreement provides for the acquisition of Pawley's Island, SC-based Palmetto Heritage Bancshares. Under the terms of the agreement, cash consideration of $135.00 per share will be paid to the shareholders of Palmetto Heritage Bancshares for each share of Palmetto Heritage's common stock with total consideration paid of $30.3 million. The transaction is expected to close during the fourth quarter of 2018, subject to the receipt of regulatory approvals and the approval of Palmetto Heritage Bancshares’ shareholders. As of June 30, 2018, Palmetto Heritage Bancshares reported $167.9 million in consolidated assets, $137.8 million in loans and $126.4 million in deposits.

Capital Commerce Bancorp, Inc.

On June 27, 2018, FCB and Capital Commerce Bancorp, Inc. (Capital Commerce) entered into a definitive merger agreement. The agreement provides for the acquisition of Milwaukee, Wisconsin-based Capital Commerce by FCB. Under the terms of the agreement, cash consideration of $4.75 per share will be paid to the shareholders of Capital Commerce for each share of Capital Commerce's common stock totaling approximately $28.1 million. The transaction is expected to close no later than the fourth quarter of 2018, subject to the receipt of regulatory approvals and the approval of Capital Commerce's shareholders, and will be accounted for under the acquisition method of accounting. The merger will allow FCB to expand its presence and enhance banking efforts in the Milwaukee market. As of March 31, 2018, Capital Commerce reported $216.2 million in consolidated assets, $180.6 million in loans and $171.0 million in deposits.

HomeBancorp, Inc.

On May 1, 2018, FCB completed the merger of Tampa, Florida-based HomeBancorp, Inc. (HomeBancorp) and its subsidiary, HomeBanc, into FCB. Under the terms of the merger agreement, cash consideration of $15.03 was paid to the shareholders of HomeBancorp for each share of HomeBancorp's common stock and total consideration was $112.7 million. The merger allowed FCB to expand its footprint in Florida by entering into two new markets in Tampa and Orlando.

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Loans and Leases

6 Months Ended

Jun. 30, 2018

Loans and Leases Receivable Disclosure [Abstract]

Loans and Leases

LOANS AND LEASES

BancShares' accounting methods for loans and leases differ depending on whether they are non-PCI or PCI. For loans to be included as non-PCI, they are either originated by FCB or it must be determined that the loans do not have any credit deterioration at the time of acquisition. Conversely, loans for which it is probable at acquisition that all required payments will not be collected in accordance with contractual terms are considered impaired and, therefore, classified as PCI loans. PCI loans are recorded at fair value at the date of acquisition. No allowance for loan and lease losses is recorded on the acquisition date as the fair value of the acquired assets incorporates assumptions regarding credit risk over the life of the loans. An allowance is subsequently recorded if there is additional credit deterioration after the acquisition date.

BancShares reports non-PCI and PCI loan portfolios separately, and the non-PCI portfolio is further divided into commercial and non-commercial based on the type of borrower, purpose, collateral, and/or our underlying credit management processes. Additionally, commercial and non-commercial loans are assigned to loan classes, which further disaggregate loans based upon common risk characteristics.

Commercial –Commercial loan classes include construction and land development, commercial mortgage, other commercial real estate, commercial and industrial, lease financing and other.

Construction and land development – Construction and land development consists of loans to finance land for development, investment, and use in a commercial business enterprise; multifamily apartments; and other commercial buildings that may be owner-occupied or income generating investments for the owner.

Commercial mortgage – Commercial mortgage consists of loans to purchase or refinance owner-occupied nonresidential and investment properties. Investment properties include office buildings and other facilities that are rented or leased to unrelated parties.

Other commercial real estate – Other commercial real estate consists of loans secured by farmland (including residential farms and other improvements) and multifamily (5 or more) residential properties.

Commercial and industrial – Commercial and industrial consists of loans or lines of credit to finance corporate credit cards, accounts receivable, inventory and other general business purposes.

Lease financing – Lease financing consists solely of lease financing agreements for business equipment, vehicles and other assets.

Other – Other consists of all other commercial loans not classified in one of the preceding classes. These typically include loans to non-profit organizations such as churches, hospitals, educational and charitable organizations, and certain loans repurchased with government guarantees.

Noncommercial – Noncommercial loan classes consist of residential and revolving mortgage, construction and land development, and consumer loans.

Residential mortgage – Residential real estate consists of loans to purchase, construct or refinance the borrower's primary dwelling, second residence or vacation home.

Revolving mortgage – Revolving mortgage consists of home equity lines of credit that are secured by first or second liens on the borrower's primary residence.

Construction and land development – Construction and land development consists of loans to construct the borrower's primary or secondary residence or vacant land upon which the owner intends to construct a dwelling at a future date.

Consumer – Consumer loans consist of installment loans to finance purchases of vehicles, unsecured home improvements, student loans and revolving lines of credit that can be secured or unsecured, including personal credit cards.

Loans and leases outstanding included the following at June 30, 2018 and December 31, 2017:

(Dollars in thousands)	June 30, 2018		December 31, 2017
Non-PCI loans and leases:
Commercial:
Construction and land development	$	715,011	$	669,215
Commercial mortgage	10,278,741		9,729,022
Other commercial real estate	473,452		473,433
Commercial and industrial	3,097,541		2,730,407
Lease financing	613,377		894,801
Other	296,614		302,176
Total commercial loans	15,474,736		14,799,054
Noncommercial:
Residential mortgage	3,980,845		3,523,786
Revolving mortgage	2,604,955		2,701,525
Construction and land development	250,704		248,289
Consumer	1,552,928		1,561,173
Total noncommercial loans	8,389,432		8,034,773
Total non-PCI loans and leases	23,864,168		22,833,827
PCI loans:
Total PCI loans	674,269		762,998
Total loans and leases	$	24,538,437	$	23,596,825

At June 30, 2018, $9.08 billion in noncovered loans with a lendable collateral value of $6.22 billion were used to secure $128.7 million in Federal Home Loan Bank (FHLB) of Atlanta advances, resulting in additional borrowing capacity of $6.09 billion. At December 31, 2017, $8.75 billion in noncovered loans with a lendable collateral value of $6.08 billion were used to secure $835.2 million in FHLB of Atlanta advances, resulting in additional borrowing capacity of $5.24 billion. At June 30, 2018, $2.88 billion in noncovered loans with a lendable collateral value of $2.17 billion were used to secure additional borrowing capacity at the Federal Reserve Bank (FRB). At December 31, 2017, $2.77 billion in noncovered loans with a lendable collateral value of $2.08 billion were used to secure additional borrowing capacity at the FRB.

Certain residential real estate loans are originated to be sold to investors and are recorded in loans held for sale at fair value. Loans held for sale totaled $59.0 million and $51.2 million at June 30, 2018 and December 31, 2017, respectively. In addition, we may change our strategy for certain portfolio loans and sell them in the secondary market. At that time, portfolio loans are transferred to loans held for sale at the lower of amortized cost or market. During the three and six months ended June 30, 2018, total proceeds from sales of loans held for sale were $164.2 million and $302.8 million, respectively, and there were no transfers to loans held for sale from the residential mortgage portfolio for either period. For the three months ended June 30, 2017, total proceeds from sales of loans held for sale which did not include any loans transferred from the residential mortgage portfolio were $147.0 million. For the six months ended June 30, 2017, total proceeds from sales of loans held for sale were $342.1 million of which $32.3 million in sales were transferred to loans held for sale from the residential mortgage portfolio, resulting in a gain of $164 thousand.

Net deferred fees on originated non-PCI loans and leases, including unearned income as well as unamortized costs and fees, were $1.2 million and $1.7 million at June 30, 2018 and December 31, 2017, respectively. The unamortized discount related to purchased non-PCI loans and leases in the HomeBancorp, Guaranty Bank (Guaranty), Cordia Bancorp Inc. (Cordia) and First Citizens Bancorporation, Inc. (Bancorporation) acquisitions was $7.0 million, $12.3 million, $1.9 million and $14.7 million, respectively, at June 30, 2018. At December 31, 2017, the unamortized discount related to purchased non-PCI loans and leases from the Guaranty, Cordia and Bancorporation acquisitions was $14.2 million, $2.7 million and $18.1 million, respectively. During the three months ended June 30, 2018 and June 30, 2017, accretion income on purchased non-PCI loans and leases was $4.1 million and $3.0 million, respectively. During the six months ended June 30, 2018 and June 30, 2017, accretion income on purchased non-PCI loans and leases was $7.0 million and $6.0 million, respectively.

Credit quality indicators

Loans and leases are monitored for credit quality on a recurring basis. The credit quality indicators used are dependent on the portfolio segment to which the loan relates. Commercial and noncommercial loans and leases have different credit quality indicators as a result of the unique characteristics of the loan segment being evaluated. The credit quality indicators for non-PCI and PCI commercial loans and leases are developed through a review of individual borrowers on an ongoing basis. Commercial loans are evaluated periodically with more frequent evaluations done on more severely criticized loans or leases. The credit quality indicators for non-PCI and PCI noncommercial loans are based on the delinquency status of the borrower. As the borrower becomes more delinquent, the likelihood of loss increases. The indicators represent the rating for loans or leases as of the date presented based on the most recent assessment performed. These credit quality indicators are defined as follows:

Pass – A pass rated asset is not adversely classified because it does not display any of the characteristics for adverse classification.

Special mention – A special mention asset has potential weaknesses that deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification.

Substandard – A substandard asset is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Assets classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These assets are characterized by the distinct possibility of loss if the deficiencies are not corrected.

Doubtful – An asset classified as doubtful has all the weaknesses inherent in an asset classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently existing facts, conditions and values.

Loss – Assets classified as loss are considered uncollectible and of such little value that it is inappropriate to be carried as an asset. This classification is not necessarily equivalent to any potential for recovery or salvage value, but rather that it is not appropriate to defer a full charge-off even though partial recovery may be affected in the future.

Ungraded – Ungraded loans represent loans that are not included in the individual credit grading process due to their relatively small balances or borrower type. The majority of ungraded loans at June 30, 2018 and December 31, 2017 relate to business credit cards. Business credit card loans are subject to automatic charge-off when they become 120 days past due in the same manner as unsecured consumer lines of credit. The remaining balance is comprised of a small amount of commercial mortgage, lease financing and other commercial real estate loans.

Non-PCI loans and leases outstanding at June 30, 2018 and December 31, 2017 by credit quality indicator are provided below:

	June 30, 2018
(Dollars in thousands)	Non-PCI commercial loans and leases
Grade:	Construction  and land development		Commercial mortgage		Other commercial real estate		Commercial  and industrial		Lease financing		Other		Total non-PCI commercial loans and leases
Pass	$	703,034	$	10,083,382	$	470,236	$	2,868,180	$	603,760	$	293,804	$	15,022,396
Special mention	352		88,157		1,159		35,636		3,916		1,258		130,478
Substandard	3,195		105,647		2,057		21,265		5,701		1,552		139,417
Doubtful	—		999		—		365		—		—		1,364
Ungraded	8,430		556		—		172,095		—		—		181,081
Total	$	715,011	$	10,278,741	$	473,452	$	3,097,541	$	613,377	$	296,614	$	15,474,736
	December 31, 2017
	Non-PCI commercial loans and leases
	Construction  and land development		Commercial mortgage		Other commercial real estate		Commercial  and industrial		Lease financing		Other		Total non-PCI commercial loans and leases
Pass	$	665,197	$	9,521,019	$	468,942	$	2,511,307	$	883,779	$	298,064	$	14,348,308
Special mention	691		78,643		1,260		44,130		4,340		2,919		131,983
Substandard	3,327		128,848		3,224		18,617		6,585		1,193		161,794
Doubtful	—		262		—		385		—		—		647
Ungraded	—		250		7		155,968		97		—		156,322
Total	$	669,215	$	9,729,022	$	473,433	$	2,730,407	$	894,801	$	302,176	$	14,799,054

	June 30, 2018
	Non-PCI noncommercial loans and leases
(Dollars in thousands)	Residential mortgage		Revolving mortgage		Construction and land development		Consumer		Total non-PCI noncommercial loans and leases
Current	$	3,936,065	$	2,581,818	$	248,343	$	1,541,465	$	8,307,691
30-59 days past due	21,032		9,864		1,839		6,013		38,748
60-89 days past due	6,291		3,367		51		2,729		12,438
90 days or greater past due	17,457		9,906		471		2,721		30,555
Total	$	3,980,845	$	2,604,955	$	250,704	$	1,552,928	$	8,389,432
	December 31, 2017
	Non-PCI noncommercial loans and leases
	Residential mortgage		Revolving mortgage		Construction and land development		Consumer		Total non-PCI noncommercial loans and leases
Current	$	3,465,935	$	2,674,390	$	239,648	$	1,546,473	$	7,926,446
30-59 days past due	27,886		13,428		7,154		8,812		57,280
60-89 days past due	8,064		3,485		108		2,893		14,550
90 days or greater past due	21,901		10,222		1,379		2,995		36,497
Total	$	3,523,786	$	2,701,525	$	248,289	$	1,561,173	$	8,034,773

PCI loans outstanding at June 30, 2018 and December 31, 2017 by credit quality indicator are provided below:

	June 30, 2018		December 31, 2017
(Dollars in thousands)	PCI commercial loans
Grade:
Pass	$	165,578	$	201,332
Special mention	58,024		63,257
Substandard	105,937		117,068
Doubtful	6,536		11,735
Ungraded	34		27
Total	$	336,109	$	393,419

	June 30, 2018		December 31, 2017
	PCI noncommercial loans
(Dollars in thousands)
Current	$	299,579	$	318,632
30-59 days past due	12,146		13,343
60-89 days past due	4,167		6,212
90 days or greater past due	22,268		31,392
Total	$	338,160	$	369,579

The aging of the outstanding non-PCI loans and leases, by class, at June 30, 2018 and December 31, 2017 are provided in the tables below. Loans and leases 30 days or less past due are considered current as various grace periods allow borrowers to make payments within a stated period after the due date and still remain in compliance with the loan agreement.

	June 30, 2018
(Dollars in thousands)	30-59 days past due		60-89 days past due		90 days or greater		Total past due		Current		Total loans and leases
Non-PCI loans and leases:
Construction and land development - commercial	$	466	$	264	$	132	$	862	$	714,149	$	715,011
Commercial mortgage	10,120		5,021		5,599		20,740		10,258,001		10,278,741
Other commercial real estate	1,568		—		18		1,586		471,866		473,452
Commercial and industrial	6,445		3,743		1,155		11,343		3,086,198		3,097,541
Lease financing	3,062		1,167		951		5,180		608,197		613,377
Residential mortgage	21,032		6,291		17,457		44,780		3,936,065		3,980,845
Revolving mortgage	9,864		3,367		9,906		23,137		2,581,818		2,604,955
Construction and land development - noncommercial	1,839		51		471		2,361		248,343		250,704
Consumer	6,013		2,729		2,721		11,463		1,541,465		1,552,928
Other	42		17		—		59		296,555		296,614
Total non-PCI loans and leases	$	60,451	$	22,650	$	38,410	$	121,511	$	23,742,657	$	23,864,168
	December 31, 2017
	30-59 days past due		60-89 days past due		90 days or greater		Total past due		Current		Total loans and leases
Non-PCI loans and leases:
Construction and land development - commercial	$	491	$	442	$	357	$	1,290	$	667,925	$	669,215
Commercial mortgage	12,288		2,375		6,490		21,153		9,707,869		9,729,022
Other commercial real estate	107		—		75		182		473,251		473,433
Commercial and industrial	6,694		1,510		1,266		9,470		2,720,937		2,730,407
Lease financing	2,983		167		973		4,123		890,678		894,801
Residential mortgage	27,886		8,064		21,901		57,851		3,465,935		3,523,786
Revolving mortgage	13,428		3,485		10,222		27,135		2,674,390		2,701,525
Construction and land development - noncommercial	7,154		108		1,379		8,641		239,648		248,289
Consumer	8,812		2,893		2,995		14,700		1,546,473		1,561,173
Other	188		6		133		327		301,849		302,176
Total non-PCI loans and leases	$	80,031	$	19,050	$	45,791	$	144,872	$	22,688,955	$	22,833,827

The recorded investment, by class, in loans and leases on nonaccrual status, and loans and leases greater than 90 days past due and still accruing at June 30, 2018 and December 31, 2017 for non-PCI loans and leases, were as follows:

	June 30, 2018				December 31, 2017
(Dollars in thousands)	Nonaccrual loans and leases		Loans and leases > 90 days and accruing		Nonaccrual loans and leases		Loans and leases > 90 days and accruing
Non-PCI loans and leases:
Construction and land development - commercial	$	420	$	—	$	1,040	$	—
Commercial mortgage	18,457		839		22,625		397
Other commercial real estate	103		—		916		—
Commercial and industrial	3,168		319		2,884		428
Lease financing	1,755		—		1,992		—
Residential mortgage	35,173		—		38,942		—
Revolving mortgage	22,500		—		19,990		—
Construction and land development - noncommercial	1,012		—		1,989		—
Consumer	2,390		2,021		1,992		2,153
Other	77		—		164		—
Total non-PCI loans and leases	$	85,055	$	3,179	$	92,534	$	2,978

Purchased non-PCI loans and leases

The following table relates to purchased non-PCI loans acquired in the HomeBancorp transaction and provides the contractually required payments, estimate of contractual cash flows not expected to be collected and fair value of the acquired loans at the acquisition date.

(Dollars in thousands)
Contractually required payments	$	710,876
Contractual cash flows not expected to be collected	$	9,845
Fair value at acquisition date	$	550,618

The recorded fair values of purchased non-PCI loans acquired in the HomeBancorp transaction as of the acquisition date are as follows:

(Dollars in thousands)
Commercial:
Construction and land development	$	525
Commercial mortgage	188,688
Other commercial real estate	55,183
Commercial and industrial	7,931
Total commercial loans	252,327
Noncommercial:
Residential mortgage	296,273
Revolving mortgage	51
Consumer	1,967
Total noncommercial loans	298,291
Total non-PCI loans	$	550,618

Purchased credit-impaired loans

The following table relates to PCI loans acquired in the HomeBancorp transaction and summarizes the contractually required payments, which include principal and interest, expected cash flows to be collected and the fair value of PCI loans at the acquisition date.

(Dollars in thousands)
Contractually required payments	$	26,651
Cash flows expected to be collected	$	19,697
Fair value of loans at acquisition	$	15,555

The recorded fair values of PCI loans acquired in the HomeBancorp transaction as of the acquisition date are as follows:

(Dollars in thousands)
Commercial:
Commercial mortgage	$	7,815
Commercial and industrial	423
Total commercial loans	8,238
Noncommercial:
Residential mortgage	7,317
Total noncommercial loans	7,317
Total PCI loans	$	15,555

The following table provides changes in the carrying value of all PCI loans during the six months ended June 30, 2018 and June 30, 2017:

(Dollars in thousands)	2018			2017
Balance at January 1	$	762,998		$	809,169
Fair value of acquired loans	15,555			199,682
Accretion	32,188			39,798
Payments received and other changes, net	(136,472		)	(153,786		)
Balance at June 30	$	674,269		$	894,863
Unpaid principal balance at June 30	$	1,044,148		$	1,199,358

The carrying value of loans on the cost recovery method was $2.1 million at June 30, 2018 and $1.1 million at December 31, 2017. The cost recovery method is applied to loans when the timing of future cash flows is not reasonably estimable due to borrower nonperformance or uncertainty in the ultimate disposition of the asset. The recorded investment of PCI loans on nonaccrual status was $1.6 million and $624 thousand at June 30, 2018 and December 31, 2017, respectively.

During the three months ended June 30, 2018 and June 30, 2017, accretion income on PCI loans was $14.2 million and $20.4 million, respectively.

For PCI loans, improved credit loss expectations generally result in the reclassification of nonaccretable difference to accretable yield. Changes in expected cash flow not related to credit improvements or deterioration do not affect the nonaccretable difference.

The following table documents changes to the amount of accretable yield for the first six months of 2018 and 2017.

(Dollars in thousands)	2018			2017
Balance at January 1	$	316,679		$	335,074
Additions from acquisitions	4,142			44,120
Accretion	(32,188		)	(39,798		)
Reclassifications from nonaccretable difference	6,899			12,328
Changes in expected cash flows that do not affect nonaccretable difference	48,988			(1,405		)
Balance at June 30	$	344,520		$	350,319

XML

Allowance for Loan and Lease Losses

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Allowance

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 and six months endedJune 30, 2018 and June 30, 2017:

	Three months ended June 30, 2018
(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	$	26,718		$	43,833		$	3,423		$	53,016		$	6,301		$	4,842		$	16,489		$	22,104		$	3,913		$	30,181		$	210,820
Provision	(3,139		)	866			468			5,670			(1,879		)	(114		)	1,492			289			50			4,574			8,277
Charge-offs	(8		)	(459		)	(69		)	(1,994		)	(445		)	(38		)	(289		)	(1,027		)	(37		)	(5,312		)	(9,678		)
Recoveries	93			225			1			638			4			1			110			520			101			1,330			3,023
Balance at June 30	$	23,664		$	44,465		$	3,823		$	57,330		$	3,981		$	4,691		$	17,802		$	21,886		$	4,027		$	30,773		$	212,442
	Three months ended June 30, 2017
(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
Balance at April 1	$	31,391		$	48,611		$	3,572		$	50,829		$	6,315		$	3,534		$	15,835		$	21,290		$	1,513		$	27,129		$	210,019
Provision	2,372			639			33			968			186			(214		)	155			1,054			(10		)	4,569			9,752
Charge-offs	(413		)	(235		)	—			(3,121		)	(97		)	(64		)	(222		)	(280		)	—			(4,991		)	(9,423		)
Recoveries	209			731			7			2,392			—			46			75			401			—			1,093			4,954
Balance at June 30	$	33,559		$	49,746		$	3,612		$	51,068		$	6,404		$	3,302		$	15,843		$	22,465		$	1,503		$	27,800		$	215,302
	Six months ended June 30, 2018
(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
Balance at January 1	$	24,470		$	45,005		$	4,571		$	53,697		$	6,127		$	4,689		$	15,706		$	22,436		$	3,962		$	31,204		$	211,867
Provision	(914		)	(499		)	(825		)	5,245			(892		)	—			3,004			755			157			7,497			13,528
Charge-offs	(8		)	(505		)	(69		)	(3,469		)	(1,299		)	(41		)	(1,095		)	(2,019		)	(219		)	(10,567		)	(19,291		)
Recoveries	116			464			146			1,857			45			43			187			714			127			2,639			6,338
Balance at June 30	$	23,664		$	44,465		$	3,823		$	57,330		$	3,981		$	4,691		$	17,802		$	21,886		$	4,027		$	30,773		$	212,442
	Six months ended June 30, 2017
(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
Balance at January 1	$	28,877		$	48,278		$	3,269		$	50,225		$	5,907		$	3,127		$	14,447		$	21,013		$	1,596		$	28,287		$	205,026
Provision	4,908			645			337			4,560			761			241			1,506			1,604			(93		)	6,359			20,828
Charge-offs	(490		)	(272		)	(5		)	(6,374		)	(270		)	(187		)	(472		)	(1,105		)	—			(9,019		)	(18,194		)
Recoveries	264			1,095			11			2,657			6			121			362			953			—			2,173			7,642
Balance at June 30	$	33,559		$	49,746		$	3,612		$	51,068		$	6,404		$	3,302		$	15,843		$	22,465		$	1,503		$	27,800		$	215,302

The following tables present the allowance for non-PCI loan and lease losses and the recorded investment in loans, by loan class, based on impairment method as of June 30, 2018 and December 31, 2017:

	June 30, 2018
(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	$	274	$	3,325	$	65	$	985	$	107	$	20	$	3,343	$	1,112	$	66	$	704	$	10,001
ALLL for loans and leases collectively evaluated for impairment	23,390		41,140		3,758		56,345		3,874		4,671		14,459		20,774		3,961		30,069		202,441
Total allowance for loan and lease losses	$	23,664	$	44,465	$	3,823	$	57,330	$	3,981	$	4,691	$	17,802	$	21,886	$	4,027	$	30,773	$	212,442
Loans and leases:
Loans and leases individually evaluated for impairment	$	2,098	$	66,172	$	1,077	$	7,652	$	1,176	$	97	$	43,953	$	27,407	$	2,911	$	2,685	$	155,228
Loans and leases collectively evaluated for impairment	712,913		10,212,569		472,375		3,089,889		612,201		296,517		3,936,892		2,577,548		247,793		1,550,243		23,708,940
Total loan and leases	$	715,011	$	10,278,741	$	473,452	$	3,097,541	$	613,377	$	296,614	$	3,980,845	$	2,604,955	$	250,704	$	1,552,928	$	23,864,168
	December 31, 2017
(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	$	185	$	3,648	$	209	$	665	$	397	$	—	$	2,733	$	1,085	$	68	$	738	$	9,728
ALLL for loans and leases collectively evaluated for impairment	24,285		41,357		4,362		53,032		5,730		4,689		12,973		21,351		3,894		30,466		202,139
Total allowance for loan and lease losses	$	24,470	$	45,005	$	4,571	$	53,697	$	6,127	$	4,689	$	15,706	$	22,436	$	3,962	$	31,204	$	211,867
Loans and leases:
Loans and leases individually evaluated for impairment	$	788	$	73,655	$	1,857	$	7,974	$	1,914	$	521	$	37,842	$	23,770	$	4,551	$	2,774	$	155,646
Loans and leases collectively evaluated for impairment	668,427		9,655,367		471,576		2,722,433		892,887		301,655		3,485,944		2,677,755		243,738		1,558,399		22,678,181
Total loan and leases	$	669,215	$	9,729,022	$	473,433	$	2,730,407	$	894,801	$	302,176	$	3,523,786	$	2,701,525	$	248,289	$	1,561,173	$	22,833,827

The following tables show the activity in the allowance for PCI loan losses for the three and six months endedJune 30, 2018 and June 30, 2017.

(Dollars in thousands)	Three months ended June 30, 2018			Three months ended June 30, 2017
PCI Loans
Allowance for loan and lease losses:
Balance at April 1	$	12,296		$	10,924
Provision	161			2,572
Charge-offs	(34		)	—
Recoveries	—			—
Balance at June 30	$	12,423		$	13,496
	Six months ended June 30, 2018			Six months ended June 30, 2017
Balance at January 1	$	10,026		$	13,769
Provision	2,515			(273		)
Charge-offs	(118		)	—
Recoveries	—			—
Balance at June 30	$	12,423		$	13,496

The following table shows the ending balances of PCI loans and related allowance as of June 30, 2018 and December 31, 2017:

(Dollars in thousands)	June 30, 2018		December 31, 2017
ALLL for loans acquired with deteriorated credit quality	$	12,423	$	10,026
Loans acquired with deteriorated credit quality	674,269		762,998

As of June 30, 2018 and December 31, 2017, $160.8 million and $279.8 million, respectively, in PCI loans experienced an adverse change in expected cash flows since the date of acquisition.

The following tables provide information on non-PCI impaired loans and leases individually evaluated as of June 30, 2018 and December 31, 2017.

	June 30, 2018
(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	$	2,098	$	—	$	2,098	$	2,431	$	274
Commercial mortgage	35,934		30,238		66,172		72,467		3,325
Other commercial real estate	375		702		1,077		1,264		65
Commercial and industrial	6,262		1,390		7,652		11,684		985
Lease financing	789		387		1,176		2,808		107
Other	97		—		97		315		20
Residential mortgage	25,529		18,424		43,953		46,684		3,343
Revolving mortgage	10,217		17,190		27,407		30,170		1,112
Construction and land development - noncommercial	544		2,367		2,911		3,633		66
Consumer	1,777		908		2,685		3,004		704
Total non-PCI impaired loans and leases	$	83,622	$	71,606	$	155,228	$	174,460	$	10,001
	December 31, 2017
(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	$	788	$	—	$	788	$	1,110	$	185
Commercial mortgage	39,135		34,520		73,655		78,936		3,648
Other commercial real estate	1,351		506		1,857		2,267		209
Commercial and industrial	6,326		1,648		7,974		10,475		665
Lease financing	1,890		24		1,914		2,571		397
Other	—		521		521		521		—
Residential mortgage	19,135		18,707		37,842		39,946		2,733
Revolving mortgage	5,875		17,895		23,770		25,941		1,085
Construction and land development - noncommercial	592		3,959		4,551		5,224		68
Consumer	2,107		667		2,774		3,043		738
Total non-PCI impaired loans and leases	$	77,199	$	78,447	$	155,646	$	170,034	$	9,728

Non-PCI impaired loans less than $500,000 that are collectively evaluated were $44.1 million and $49.1 million at June 30, 2018 and December 31, 2017, respectively.

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 endedJune 30, 2018 and June 30, 2017:

	Three months ended June 30, 2018				Three months ended June 30, 2017
(Dollars in thousands)	Average balance		Interest income recognized		Average balance		Interest income recognized
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	1,485	$	17	$	970	$	11
Commercial mortgage	68,113		659		74,121		651
Other commercial real estate	1,345		12		1,525		9
Commercial and industrial	7,585		76		10,159		98
Lease financing	1,842		14		1,911		14
Other	67		—		434		5
Residential mortgage	42,046		298		36,767		272
Revolving mortgage	26,388		222		8,484		62
Construction and land development - noncommercial	3,526		44		3,185		33
Consumer	2,654		28		2,052		24
Total non-PCI impaired loans and leases	$	155,051	$	1,370	$	139,608	$	1,179
	Six months ended June 30, 2018				Six months ended June 30, 2017
(Dollars in thousands)	Average balance		Interest income recognized		Average balance		Interest income recognized
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	1,320	$	28	$	1,013	$	23
Commercial mortgage	70,190		1,370		74,715		1,293
Other commercial real estate	1,529		23		1,555		17
Commercial and industrial	7,554		152		10,844		202
Lease financing	2,040		25		1,740		28
Other	34		—		315		7
Residential mortgage	40,385		573		34,864		525
Revolving mortgage	25,590		423		8,227		119
Construction and land development - noncommercial	3,815		92		2,895		66
Consumer	2,581		56		1,976		47
Total non-PCI impaired loans and leases	$	155,038	$	2,742	$	138,144	$	2,327

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. The majority of TDRs are included in the special mention, substandard or doubtful credit grading categories, which results in more elevated loss expectations when projecting the expected cash flows that are used to determine the allowance for loan losses associated with these loans. The more severely graded the loan, the lower the estimated expected cash flows and the greater the allowance recorded. All TDRs are individually evaluated for impairment through review of collateral values or analysis of cash flows at least annually.

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

	June 30, 2018						December 31, 2017
(Dollars in thousands)	Accruing		Nonaccruing		Total		Accruing		Nonaccruing		Total
Commercial loans
Construction and land development - commercial	$	2,050	$	228	$	2,278	$	4,089	$	483	$	4,572
Commercial mortgage	58,877		10,304		69,181		62,358		15,863		78,221
Other commercial real estate	1,039		39		1,078		1,012		788		1,800
Commercial and industrial	6,673		988		7,661		7,598		910		8,508
Lease financing	677		429		1,106		722		1,048		1,770
Other	44		126		170		521		—		521
Total commercial TDRs	69,360		12,114		81,474		76,300		19,092		95,392
Noncommercial
Residential mortgage	38,266		9,958		48,224		34,067		9,475		43,542
Revolving mortgage	19,752		6,778		26,530		17,673		5,180		22,853
Construction and land development - noncommercial	2,821		90		2,911		—		—		—
Consumer and other	2,111		574		2,685		2,351		423		2,774
Total noncommercial TDRs	62,950		17,400		80,350		54,091		15,078		69,169
Total TDRs	$	132,310	$	29,514	$	161,824	$	130,391	$	34,170	$	164,561

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

(Dollars in thousands)	June 30, 2018		December 31, 2017
Accruing TDRs:
PCI	$	18,546	$	18,163
Non-PCI	113,764		112,228
Total accruing TDRs	132,310		130,391
Nonaccruing TDRs:
PCI	253		272
Non-PCI	29,261		33,898
Total nonaccruing TDRs	29,514		34,170
All TDRs:
PCI	18,799		18,435
Non-PCI	143,025		146,126
Total TDRs	$	161,824	$	164,561

The following table provides the types of non-PCI and PCI TDRs made during the three and six months endedJune 30, 2018 and June 30, 2017, as well as a summary of loans that were modified as a TDR during the twelve month periods ended June 30, 2018 and June 30, 2017 that subsequently defaulted during the three and six months endedJune 30, 2018 and June 30, 2017. 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, 2018						Three months ended June 30, 2017
	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 and PCI loans and leases
Interest only	1	154		2	821		3	571		1	332
Loan term extension	10	936		7	341		13	1,397		1	32
Below market interest rate	53	9,525		33	1,702		73	4,440		32	2,800
Discharged from bankruptcy	37	2,472		24	1,490		40	1,442		24	615
Total non-PCI and PCI restructurings	101	$	13,087	66	$	4,354	129	$	7,850	58	$	3,779

	Six months ended June 30, 2018						Six months ended June 30, 2017
	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 and PCI loans and leases
Interest only	2	821		2	821		3	571		1	332
Loan term extension	17	1,658		8	638		21	2,070		1	32
Below market interest rate	139	15,873		64	3,385		159	12,582		49	4,231
Discharged from bankruptcy	91	5,595		55	4,338		97	3,005		42	2,091
Total non-PCI and PCI restructurings	249	$	23,947	129	$	9,182	280	$	18,228	93	$	6,686

For the three and six months endedJune 30, 2018 and June 30, 2017, the pre-modification and post-modification outstanding recorded investments of loans modified as TDRs were not materially different.

XML

Other Real Estate Owned

6 Months Ended

Jun. 30, 2018

Banking and Thrift [Abstract]

Real Estate Owned [Text Block]

NOTE F - OTHER REAL ESTATE OWNED (OREO)

The following table explains changes in other real estate owned during the six months ended June 30, 2018 and June 30, 2017.

(Dollars in thousands)	Total
Balance at December 31, 2016	$	61,231
Additions	21,891
Additions acquired in the Guaranty Bank acquisition	55
Sales	(20,236		)
Write-downs	(2,160		)
Balance at June 30, 2017	$	60,781
Balance at December 31, 2017	$	51,097
Additions	11,868
Additions acquired in the HomeBanc acquisition	2,135
Sales	(15,769		)
Write-downs	(2,698		)
Balance at June 30, 2018	$	46,633

At June 30, 2018 and December 31, 2017, BancShares had $15.1 million and $19.8 million, respectively, of foreclosed residential real estate property in OREO. The recorded investment in consumer mortgage loans collateralized by residential real estate property in the process of foreclosure was $25.3 million and $26.9 million at June 30, 2018 and December 31, 2017, respectively.

XML

FDIC Shared-Loss Receivable

6 Months Ended

Jun. 30, 2018

FDIC Shared-Loss Receivable [Abstract]

FDIC Shared-Loss Receivable

FDIC SHARED-LOSS PAYABLE

BancShares completed six FDIC-assisted transactions with shared-loss agreements during the period beginning in 2009 through 2011. Prior to its merger into BancShares, Bancorporation completed three FDIC-assisted transactions with shared-loss agreements.

As of June 30, 2018, shared-loss agreements are still active for Georgian Bank (GB) and United Western Bank (UWB). Shared-loss protection remains for single family residential loans acquired from UWB and GB in the amount of $62.1 million.

The shared-loss agreements for two FDIC-assisted transactions, First Regional Bank (FRB) and UWB, include provisions related to payments that may be owed to the FDIC at the termination of the agreements (clawback liability). The clawback liability represents a payment by BancShares to the FDIC if actual cumulative losses on acquired covered assets are lower than the cumulative losses originally estimated by the FDIC at the time of acquisition and is recorded in the Consolidated Balance Sheets as a payable to the FDIC under the relevant shared-loss agreements. As of June 30, 2018 and December 31, 2017, the estimated clawback liability was $103.5 million and $101.3 million, respectively. The clawback liability payment dates for FRB and UWB are March 2020 and March 2021, respectively.

The following table provides changes in the FDIC shared-loss payable for the three and six months endedJune 30, 2018 and June 30, 2017.

	Three months ended June 30				Six months ended June 30
(Dollars in thousands)	2018		2017		2018		2017
Beginning balance	$	102,466	$	98,013	$	101,342	$	97,008
Amortization	1,001		963		1,993		1,917
Adjustments related to changes in assumptions	20		150		152		201
Ending balance	$	103,487	$	99,126	$	103,487	$	99,126

XML

Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2018

Mortgage Servicing Rights [Abstract]

Transfers and Servicing of Financial Assets [Text Block]

MORTGAGE SERVICING RIGHTS

Our portfolio of residential mortgage loans serviced for third parties was $2.87 billion and $2.81 billion as of June 30, 2018 and December 31, 2017, respectively.  These loans were originated by BancShares and sold to third parties on a non-recourse basis with servicing rights retained.  These retained servicing rights are recorded as a servicing asset and reported in other intangible assets on the Consolidated Balance Sheets. The mortgage servicing rights are initially recorded at fair value and then carried at the lower of amortized cost or fair market value.

The activity of the servicing asset for the three and six months endedJune 30, 2018 and 2017 is presented in the following table:

	Three months ended June 30						Six months ended June 30
(Dollars in thousands)	2018			2017			2018			2017
Beginning balance	$	21,659		$	20,771		$	21,945		$	20,415
Servicing rights originated	1,430			1,123			2,630			2,825
Amortization	(1,432		)	(1,370		)	(2,918		)	(2,720		)
Valuation allowance reversal	—			—			—			4
Ending balance	$	21,657		$	20,524		$	21,657		$	20,524

The amortization expense related to mortgage servicing rights is included as a reduction of mortgage income in the Consolidated Statements of Income. Mortgage income for the three and six months ended June 30, 2018 and the three months ended June 30, 2017 did not include any impairment compared to an impairment reversal of $4 thousand for the six months ended June 30, 2017.

Contractually specified mortgage servicing fees, late fees, and ancillary fees earned for both the three months ended June 30, 2018 and 2017 were $1.9 million and reported in mortgage income in the Consolidated Statements of Income. For the six months ended June 30, 2018 and 2017, contractually specified mortgage servicing fees, late fees and ancillary fees earned were $3.8 million and $3.6 million, respectively.

Valuation of mortgage servicing rights is performed using a pooling methodology. Similar loans are pooled together and evaluated on a discounted earnings basis to determine the present value of future earnings. Key economic assumptions used to value mortgage servicing rights as of June 30, 2018 and December 31, 2017 were as follows:

	June 30, 2018			December 31, 2017
Discount rate - conventional fixed loans	9.86		%	9.41		%
Discount rate - all loans excluding conventional fixed loans	10.86		%	10.41		%
Weighted average constant prepayment rate	8.43		%	10.93		%
Weighted average cost to service a loan	$	72.79		$	64.03

The discount rate is based on the 10-year U.S. Treasury rate plus 700 basis points for conventional fixed loans and 800 basis points for all other loans. The 700 and 800 basis points are used as a risk premium when calculating the discount rate. The repayment rate is derived from the Public Securities Association Standard Prepayment model. The average cost to service a loan is based on the number of loans serviced and the total costs to service the loans.

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Repurchase Agreements

6 Months Ended

Jun. 30, 2018

Repurchase Agreements [Abstract]

Repurchase Agreements, Resale Agreements, Securities Borrowed, and Securities Loaned Disclosure [Text Block]

REPURCHASE AGREEMENTS

BancShares utilizes securities sold under agreements to repurchase to facilitate the needs of customers and secure wholesale funding needs. Repurchase agreements are transactions whereby BancShares offers to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates BancShares to repurchase the security on an agreed upon date at an agreed upon repurchase price plus interest at an agreed upon rate. Securities sold under agreements to repurchase are recorded at the amount of cash received in connection with the transaction and are generally reflected as short-term borrowings on the Consolidated Balance Sheets.

BancShares monitors collateral levels on a continuous basis and maintains records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security, and segregates the security from general assets in accordance with regulations governing custodial holdings of securities. The primary risk with repurchase agreements is market risk associated with the investments securing the transactions, as additional collateral may be required based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with safekeeping agents. The carrying value of available for sale investment securities pledged as collateral under repurchase agreements was $511.8 million and $684.2 million at June 30, 2018 and December 31, 2017, respectively.

The remaining contractual maturity of the securities sold under agreements to repurchase by class of collateral pledged included overnight and continuous U.S. Treasury securities totaling $499.7 million at June 30, 2018 and $556.2 million at December 31, 2017. At December 31, 2017, there also were U.S. Treasury securities with a remaining contractual maturity of 30-90 days totaling $30.0 million for a gross amount of $586.2 million.

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Estimated Fair Values

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Estimated Fair Values

ESTIMATED FAIR VALUES

Fair value estimates are intended to represent the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. Where there is no active market for a financial instrument, BancShares has made estimates using discounted cash flows or other valuation techniques. Inputs used in these valuation techniques are subjective in nature, involve uncertainties and require significant judgment and therefore can only be derived within a range of precision. Accordingly, the derived fair value estimates presented below are not necessarily indicative of the amounts BancShares would realize in a current market exchange.

ASC 820, Fair Value Measurements and Disclosures, indicates that assets and liabilities are recorded at fair value according to a fair value hierarchy comprised of three levels. The levels are based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. The level within the fair value hierarchy for an asset or liability is based on the highest level of input that is significant to the fair value measurement (with Level 1 considered highest and Level 3 considered lowest). A brief description of each level follows:

• Level 1 values are based on quoted prices for identical instruments in active markets.

• Level 2 values are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which all significant assumptions are observable in the market.

• Level 3 values are derived from valuation techniques in which one or more significant inputs or assumptions are not observable in the market. These unobservable inputs and assumptions reflect estimates that market participants would use in pricing the asset or liability. Valuation techniques include the use of discounted cash flow models and similar techniques.

BancShares' management reviews any changes to its valuation methodologies to ensure they are appropriate and supportable, and refines valuation methodologies as more market-based data becomes available. Transfers between levels of the fair value hierarchy are recognized at the end of the reporting period.

The methodologies used to estimate the fair value of financial assets and financial liabilities are discussed below:

Investment securities available for sale. Investment securities available for sale are carried at fair value. U.S. Treasury, government agency and mortgage-backed securities are generally measured at fair value using a third party pricing service. The third party provider evaluates securities based on comparable investments with trades and market data and will utilize pricing models that use a variety of inputs, such as benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids and offers as needed. These securities are generally classified as Level 2. Corporate bonds and trust preferred securities are generally measured at fair value based on indicative bids from broker-dealers and are not directly observable. These securities are considered Level 3.

Marketable equity securities. Equity securities are measured at fair value using observable closing prices and the valuation also considers the amount of market activity by examining the trade volume of each security. Equity securities are classified as Level 1 if they are traded in an active market and as Level 2 if the observable closing price is from a less than active market.

Loans held for sale. Certain residential real estate loans are originated to be sold to investors are carried at fair value based on quoted market prices for similar types of loans. Accordingly, the inputs used to calculate fair value of originated residential real estate loans held for sale are classified as Level 2 inputs. Portfolio loans that are subsequently transferred to held for sale to be sold in the secondary market are carried at the lower of amortized cost or fair value. The fair value of the transferred portfolio loans is based on the quoted prices and is considered a Level 1 input.

Net loans and leases (PCI and Non-PCI). Fair value is estimated based on discounted future cash flows using the current interest rates at which loans with similar terms would be made to borrowers of similar credit quality. The inputs used in the fair value measurements for loans and leases are considered Level 3 inputs.

FHLB stock. The carrying amount of FHLB stock is a reasonable estimate of fair value as these securities are not readily marketable and are evaluated for impairment based on the ultimate recoverability of the par value. BancShares considers positive and negative evidence, including the profitability and asset quality of the issuer, dividend payment history and recent redemption experience, when determining the ultimate recoverability of the par value. BancShares believes its investment in FHLB stock is ultimately recoverable at par. The inputs used in the fair value measurement for the FHLB stock are considered Level 2 inputs.

Mortgage servicing rights. Mortgage servicing rights are carried at the lower of amortized cost or market and are, therefore, carried at fair value only when fair value is less than the amortized cost. The fair value of mortgage servicing rights is performed using a pooling methodology. Similar loans are pooled together and a model that relies on discount rates, estimates of prepayment rates and the weighted average cost to service the loans is used to determine the fair value. The inputs used in the fair value measurement for mortgage servicing rights are considered Level 3 inputs.

Deposits. For non-time deposits, carrying value is a reasonable estimate of fair value. The fair value of time deposits is estimated by discounting future cash flows using the interest rates currently offered for deposits of similar remaining maturities. The inputs used in the fair value measurement for deposits are considered Level 2 inputs.    

Long-term obligations. For long-term obligations, the fair values are determined based on recent trades or sales of the actual security if available, otherwise, fair values are estimated by discounting future cash flows using current interest rates for similar financial instruments. The inputs used in the fair value measurement for long-term obligations are considered Level 2 inputs.

Payable to the FDIC for shared-loss agreements. The fair value of the payable to the FDIC for shared-loss agreements is determined by the projected cash flows based on expected payments to the FDIC in accordance with the shared-loss agreements. Cash flows are discounted using current discount rates to reflect the timing of the estimated amounts due to the FDIC. The inputs used in the fair value measurement for the payable to the FDIC are considered Level 3 inputs.

Off-balance-sheet commitments and contingencies. Carrying amounts are reasonable estimates of the fair values for such financial instruments. Carrying amounts include unamortized fee income and, in some cases, reserves for any credit losses from those financial instruments. These amounts are not material to BancShares' financial position.

For all other financial assets and financial liabilities, the carrying value is a reasonable estimate of the fair value as of June 30, 2018 and December 31, 2017. The carrying value and fair value for these assets and liabilities are equivalent because they are relatively short term in nature and there is no interest rate or credit risk that would cause the fair value to differ from the carrying value. Cash and due from banks is classified on the fair value hierarchy as Level 1. Overnight investments, income earned not collected, short-term borrowings and accrued interest payable are considered Level 2.

The table presents the carrying values and estimated fair values for financial instruments as of June 30, 2018 and December 31, 2017.

(Dollars in thousands)	June 30, 2018				December 31, 2017
	Carrying value		Fair value		Carrying value		Fair value
Cash and due from banks	$	260,525	$	260,525	$	336,150	$	336,150
Overnight investments	1,223,311		1,223,311		1,387,927		1,387,927
Investment securities available for sale	4,783,507		4,783,507		7,180,180		7,180,180
Investment securities held to maturity	2,299,774		2,302,093		76		81
Marketable equity securities	107,264		107,264		—		—
Loans held for sale	58,961		58,961		51,179		51,179
Net loans and leases	24,313,572		23,704,523		23,374,932		22,257,803
Income earned not collected	99,567		99,567		95,249		95,249
Federal Home Loan Bank stock	22,658		22,658		52,685		52,685
Mortgage servicing rights	21,657		28,668		21,945		26,170
Deposits	30,408,884		30,362,605		29,266,275		29,230,768
Short-term borrowings	613,993		613,993		693,807		693,807
Long-term obligations	241,360		250,823		870,240		852,112
Payable to the FDIC for shared-loss agreements	103,487		103,966		101,342		102,684
Accrued interest payable	1,909		1,909		3,952		3,952

Among BancShares' assets and liabilities, investment securities available for sale, marketable equity securities and loans held for sale are reported at their fair values on a recurring basis. For assets and liabilities carried at fair value on a recurring basis, the following table provides fair value information as of June 30, 2018 and December 31, 2017.

	June 30, 2018
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	1,503,974	$	—	$	1,503,974	$	—
Government agency	131,035		—		131,035		—
Mortgage-backed securities	3,034,065		—		3,034,065		—
Corporate bonds	108,790		—		—		108,790
Other	5,643		—		—		5,643
Total investment securities available for sale	$	4,783,507	$	—	$	4,669,074	$	114,433
Marketable equity securities	$	107,264	$	21,667	$	85,597	$	—
Loans held for sale	$	58,961	$	—	$	58,961	$	—
	December 31, 2017
			Fair value measurements using:
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	1,657,864	$	—	$	1,657,864	$	—
Government agency	8,670		—		8,670		—
Mortgage-backed securities	5,340,756		—		5,340,756		—
Equity securities	105,208		19,341		85,867		—
Corporate bonds	59,963		—		59,963		—
Other	7,719		—		7,719		—
Total investment securities available for sale	$	7,180,180	$	19,341	$	7,160,839	$	—
Loans held for sale	$	51,179	$	—	$	51,179	$	—

During the three months ended June 30, 2018, there were no transfers between levels. For the six months ended June 30, 2018, there were transfers from Level 2 to Level 3 of $59.7 million and $5.6 million of corporate bonds and other investment securities available for sale, respectively. The transfers were due to a lack of observable inputs and trade activity for those securities. There were no transfers between levels for the three and six months ended June 30, 2017.

The following tables summarize activity for Level 3 assets:

	Three months ended June 30, 2018
(Dollars in thousands)	Corporate bonds			Other
Balance at April 1, 2018	$	59,653		$	5,618
Amounts included in net income	48			7
Unrealized net (losses) gains included in other comprehensive income	(97		)	18
Purchases	51,591			—
Sales	(2,405		)	—
Balance at June 30, 2018	$	108,790		$	5,643

	Six months ended June 30, 2018
(Dollars in thousands)	Corporate bonds			Other
Balance at January 1, 2018	$	—		$	—
Transfers in	59,653			5,618
Amounts included in net income	48			7
Unrealized net (losses) gains included in other comprehensive income	(97		)	18
Purchases	51,591			—
Sales	(2,405		)	—
Balance at June 30, 2018	$	108,790		$	5,643

The following table presents quantitative information about Level 3 fair value measurements for fair value on a recurring basis at June 30, 2018.

(Dollars in thousands)			June 30, 2018
Level 3 assets	Valuation technique	Significant unobservable input	Fair Value
Corporate bonds	Indicative bid provided by broker	Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company	$	108,790
Other	Indicative bid provided by broker	Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company	5,643

Fair Value Option

BancShares has elected the fair value option for residential real estate loans originated to be sold. This election reduces certain timing differences in the Consolidated Statement of Income and better aligns with the management of the portfolio from a business perspective. The changes in fair value are recorded as a component of mortgage income and included gains of $700 thousand and $291 thousand for the three months ended June 30, 2018 and June 30, 2017, respectively. For the six months ended June 30, 2018 and 2017, the changes in fair value were gains of $245 thousand and $3.5 million, respectively.

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential real estate originated for sale measured at fair value as of June 30, 2018 and December 31, 2017.

	June 30, 2018
(Dollars in thousands)	Fair Value		Aggregate Unpaid Principal Balance		Difference
Originated loans held for sale	$	58,961	$	57,334	$	1,627
	December 31, 2017
	Fair Value		Aggregate Unpaid Principal Balance		Difference
Originated loans held for sale	$	51,179	$	49,796	$	1,383

No originated loans held for sale were 90 or more days past due or on nonaccrual status as of June 30, 2018 or December 31, 2017.

Certain other assets are adjusted to their fair value on a nonrecurring basis, including impaired loans, OREO, and goodwill, which are periodically tested for impairment, and mortgage servicing rights, which are carried at the lower of amortized cost or market. Non-impaired loans held for investment, deposits, short-term borrowings and long-term obligations are not reported at fair value.

Impaired loans are deemed to be at fair value if an associated allowance or current period charge-off has been recorded. The value of impaired loans is determined by either collateral valuations or discounted present value of the expected cash flow calculations. Collateral values are determined using appraisals or other third-party value estimates of the subject property with discounts generally between 6 and 11 percent applied for estimated holding and selling costs and other external factors that may impact the marketability of the property. Expected cash flows are determined using expected payment information at the individual loan level, discounted using the effective interest rate. The effective interest rate generally ranges between 2 and 18 percent.

OREO that has been acquired or written down in the current year is deemed to be at fair value, which uses asset valuations. Asset values are determined using appraisals or other third-party value estimates of the subject property with discounts generally between 6 and 11 percent applied for estimated holding and selling costs and other external factors that may impact the marketability of the property. Changes to the value of the assets between scheduled valuation dates are monitored through continued communication with brokers and monthly reviews by the asset manager assigned to each asset. If there are any significant changes in the market or the subject property, valuations are adjusted or new appraisals ordered to ensure the reported values reflect the most current information.

For financial assets and liabilities carried at fair value on a nonrecurring basis, the following table provides fair value information as of June 30, 2018 and December 31, 2017.

	June 30, 2018
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Impaired loans	$	74,301	$	—	$	—	$	74,301
Other real estate remeasured during current year	21,105		—		—		21,105
	December 31, 2017
			Fair value measurements using:
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Impaired loans	$	72,539	$	—	$	—	$	72,539
Other real estate remeasured during current year	40,167		—		—		40,167

No financial liabilities were carried at fair value on a nonrecurring basis as of June 30, 2018 and December 31, 2017.

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Employee Benefit Plans

6 Months Ended

Jun. 30, 2018

Retirement Benefits, Description [Abstract]

Employee Benefit Plans

EMPLOYEE BENEFIT PLANS

BancShares sponsors noncontributory defined benefit pension plans for its qualifying employees (BancShares Plan) and former First Citizens Bancorporation, Inc. employees (Bancorporation Plan). The service cost component of net periodic benefit cost is included in salaries and wages while all other non-service cost components are included in other noninterest expense.

BancShares Plan

For the three and six months endedJune 30, 2018 and 2017, the components of net periodic benefit cost are as follows:

	Three months ended June 30						Six months ended June 30
(Dollars in thousands)	2018			2017			2018			2017
Service cost	$	3,362		$	2,934		$	6,791		$	6,310
Interest cost	7,131			7,069			14,188			14,449
Expected return on assets	(11,976		)	(10,307		)	(23,933		)	(21,005		)
Amortization of prior service cost	20			53			40			105
Amortization of net actuarial loss	3,548			2,193			6,794			4,427
Net periodic benefit cost	$	2,085		$	1,942		$	3,880		$	4,286

Bancorporation Plan

For the three and six months endedJune 30, 2018 and 2017, the components of net periodic benefit cost are as follows:

	Three months ended June 30						Six months ended June 30
(Dollars in thousands)	2018			2017			2018			2017
Service cost	$	624		$	670		$	1,286		$	1,341
Interest cost	1,592			1,682			3,179			3,365
Expected return on assets	(3,110		)	(2,796		)	(6,216		)	(5,592		)
Amortization of net actuarial loss	86			214			157			428
Net periodic benefit cost	$	(808	)	$	(230	)	$	(1,594	)	$	(458	)

No contributions were made during the three and six months endedJune 30, 2018 to the BancShares or Bancorporation pension plans. We anticipate making a $50.0 million contribution to the BancShares plan during 2018.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2018

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES

To meet the financing needs of its customers, BancShares and its subsidiaries have financial instruments with off-balance sheet risk. These financial instruments include commitments to extend credit, standby letters of credit and recourse obligations on mortgage loans sold. These instruments involve elements of credit, interest rate or liquidity risk.

Commitments to extend credit are legally binding agreements to lend to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of fees. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future liquidity requirements. Established credit standards control the credit risk exposure associated with these commitments. In some cases, BancShares requires that collateral be pledged to secure the commitment, including cash deposits, securities and other assets.

Standby letters of credit are commitments guaranteeing performance of a customer to a third party. Those commitments are primarily issued to support public and private borrowing arrangements, and the fair value of those commitments is not material. To mitigate its risk, BancShares’ credit policies govern the issuance of standby letters of credit. The credit risk related to the issuance of these letters of credit is essentially the same as that involved in extending loans to clients and, therefore, these letters of credit are collateralized when necessary.

The following table presents the commitments to extend credit and unfunded commitments as of June 30, 2018 and December 31, 2017:

(Dollars in thousands)	June 30, 2018		December 31, 2017
Unused commitments to extend credit	$	10,119,455	$	9,629,365
Standby letters of credit	87,574		81,530
Unfunded commitments for investments in affordable housing projects	77,622		61,819

Affordable housing project investments were $150.5 million and $128.0 million as of June 30, 2018 and December 31, 2017, respectively, and are included in other assets on the Consolidated Balance Sheets.

Pursuant to standard representations and warranties relating to residential mortgage loan sales sold on a non-recourse basis, contingent obligations exist for various events that may occur following the loan sale. If underwriting or documentation deficiencies are discovered at any point in the life of the loan or if the loan fails to perform per the terms of the loan purchase agreement, typically within 180 days from the date of sale, the investor may require BancShares to repurchase the loan or to repay a portion of the sale proceeds. Other liabilities included reserves of $830 thousand and $882 thousand as of June 30, 2018 and December 31, 2017, respectively, for estimated losses arising from these standard representation and warranty provisions.

BancShares and various subsidiaries have been named as defendants in legal actions arising from their normal business activities in which damages in various amounts are claimed. BancShares is also exposed to litigation risk relating to the prior business activities of banks from which assets were acquired and liabilities assumed in the various merger transactions. Although the amount of any ultimate liability with respect to such matters cannot be determined, in the opinion of management, any such liability will not have a material effect on BancShares’ consolidated financial statements.

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Accumulated Other Comprehensive Income (Loss)

6 Months Ended

Jun. 30, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

Accumulated other comprehensive loss included the following as of June 30, 2018 and December 31, 2017:

	June 30, 2018									December 31, 2017
(Dollars in thousands)	Accumulated other comprehensive loss			Deferred tax benefit			Accumulated other comprehensive loss, net of tax			Accumulated other comprehensive loss			Deferred tax benefit			Accumulated other comprehensive loss, net of tax
Unrealized losses on securities available for sale	$	(74,671	)	$	(17,175	)	$	(57,496	)	$	(48,834	)	$	(17,889	)	$	(30,945	)
Unrealized losses on securities available for sale transferred to held to maturity	(105,034		)	(24,158		)	(80,876		)	—			—			—
Funded status of defined benefit plans	(138,008		)	(31,742		)	(106,266		)	(144,999		)	(53,650		)	(91,349		)
Total	$	(317,713	)	$	(73,075	)	$	(244,638	)	$	(193,833	)	$	(71,539	)	$	(122,294	)

The following table highlights changes in accumulated other comprehensive (loss) income by component for the three and six months endedJune 30, 2018 and June 30, 2017:

	Three months ended June 30, 2018
(Dollars in thousands)	Unrealized (losses) gains on securities available for sale1			Unrealized losses on securities available for sale transferred to held to maturity1			Defined benefit pension items1			Total
Beginning balance	$	(121,243	)	$	—		$	(109,080	)	$	(230,323	)
Cumulative effect adjustments	—			—			—			—
Other comprehensive loss before reclassifications	63,747			(84,321		)	—			(20,574		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			3,445			2,814			6,259
Net current period other comprehensive (loss) income	63,747			(80,876		)	2,814			(14,315		)
Ending balance	$	(57,496	)	$	(80,876	)	$	(106,266	)	$	(244,638	)
	Three months ended June 30, 2017
	Unrealized (losses) gains on securities available for sale1			Unrealized losses on securities available for sale transferred to held to maturity1			Defined benefit pension items1			Total
Beginning balance	$	(23,183	)	$	—		$	(87,758	)	$	(110,941	)
Other comprehensive income before reclassifications	8,646			—			—			8,646
Amounts reclassified from accumulated other comprehensive (loss) income	(2,111		)	—			1,563			(548		)
Net current period other comprehensive income	6,535			—			1,563			8,098
Ending balance	$	(16,648	)	$	—		$	(86,195	)	$	(102,843	)
	Six months ended June 30, 2018
	Unrealized (losses) gains on securities1			Unrealized losses on securities available for sale transferred to held to maturity1			Defined benefit pension items1			Total
Beginning balance	$	(30,945	)	$	—		$	(91,349	)	$	(122,294	)
Cumulative effect adjustments	(29,752		)	—			(20,300		)	(50,052		)
Other comprehensive income before reclassifications	3,201			(84,321		)	—			(81,120		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			3,445			5,383			8,828
Net current period other comprehensive income	3,201			(80,876		)	5,383			(72,292		)
Ending balance	$	(57,496	)	$	(80,876	)	$	(106,266	)	$	(244,638	)
	Six months ended June 30, 2017
	Unrealized (losses) gains on securities1			Unrealized losses on securities available for sale transferred to held to maturity1			Defined benefit pension items1			Total
Beginning balance	$	(45,875	)	$	—		$	(89,317	)	$	(135,192	)
Other comprehensive income before reclassifications	31,323			—			—			31,323
Amounts reclassified from accumulated other comprehensive (loss) income	(2,096		)	—			3,122			1,026
Net current period other comprehensive income	29,227			—			3,122			32,349
Ending balance	$	(16,648	)	$	—		$	(86,195	)	$	(102,843	)

¹ All amounts are net of tax. Amounts in parentheses indicate debits.

The following table presents the amounts reclassified from accumulated other comprehensive income (loss) and the line item affected in the statement where net income is presented for the three and six months endedJune 30, 2018 and June 30, 2017:

(Dollars in thousands)	Three months ended June 30, 2018
Details about accumulated other comprehensive income (loss)	Amounts reclassified from accumulated other comprehensive income (loss)1			Affected line item in the statement where net income is presented
Amortization of unrealized losses on securities available for sale transferred to held to maturity	$	(4,473	)	Other
	1,028			Income taxes
	$	(3,445	)	Net Income
Amortization of defined benefit pension items
Prior service costs	$	(20	)	Salaries and wages
Actuarial losses	(3,634		)	Other
	(3,654		)	Income before income taxes
	840			Income taxes
	$	(2,814	)	Net income
Total reclassifications for the period	$	(6,259	)
	Three months ended June 30, 2017
Details about accumulated other comprehensive income (loss)	Amounts reclassified from accumulated other comprehensive income (loss)1			Affected line item in the statement where net income is presented
Unrealized gains and losses on securities available for sale	$	3,351		Securities gains, net
	(1,240		)	Income taxes
	$	2,111		Net income
Amortization of defined benefit pension items
Prior service costs	$	(53	)	Salaries and wages
Actuarial losses	(2,407		)	Other
	(2,460		)	Income before income taxes
	897			Income taxes
	$	(1,563	)	Net income
Total reclassifications for the period	$	548
	Six months ended June 30, 2018
Details about accumulated other comprehensive income (loss)	Amount reclassified from accumulated other comprehensive income (loss)1			Affected line item in the statement where net income is presented
Amortization of unrealized losses on securities available for sale transferred to held to maturity	$	(4,473	)	Other
	1,028			Income taxes
	$	(3,445	)	Net income
Amortization of defined benefit pension items
Prior service costs	$	(40	)	Salaries and wages
Actuarial losses	(6,951		)	Other
	(6,991		)	Employee benefits
	1,608			Income taxes
	$	(5,383	)	Net income
Total reclassifications for the period	$	(8,828	)
	Six months ended June 30, 2017
Details about accumulated other comprehensive income (loss)	Amount reclassified from accumulated other comprehensive income (loss)1			Affected line item in the statement where net income is presented
Unrealized gains and losses on securities available for sale	$	3,327		Securities gains, net
	(1,231		)	Income taxes
	$	2,096		Net income
Amortization of defined benefit pension items
Prior service costs	$	(105	)	Salaries and wages
Actuarial losses	(4,855		)	Other
	(4,960		)	Employee benefits
	1,838			Income taxes
	$	(3,122	)	Net income
Total reclassifications for the period	$	(1,026	)

¹ Amounts in parentheses indicate debits to profit/loss.

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Accounting Policies and Basis of Presentation Policies (Policies)

6 Months Ended

Jun. 30, 2018

Accounting Policies [Abstract]

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

The standard requires disclosure of qualitative and quantitative information surrounding the amount, nature, timing and uncertainty of revenues and cash flows arising from contracts with customers. The core principle of the new standard is that revenue should be recognized when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.

Descriptions of our noninterest revenue-generating activities that are within the scope of the new revenue ASU is broadly segregated as follows:

Cardholder and Merchant Services - These represent interchange fees from customer debit and credit card transactions that are earned at the time a cardholder engages in a transaction with a merchant as well as fees charged to merchants for providing them the ability to accept and process the debit and credit card transaction. Revenue is recognized when the performance obligation has been met as it is satisfied upon the completion of the card transaction. Additionally, ASU 2014-09 requires costs associated with cardholder and merchant services transactions to be netted against the fees from such transactions when an entity is acting as an agent in providing services to a customer.

Service Charges on Deposit Accounts - These deposit account-related fees represent monthly account maintenance and transaction-based service fees such as overdraft fees, stop payment fees and charges for issuing cashier's checks and money orders. For account maintenance services, revenue is recognized at the end of the statement period when our performance obligation has been satisfied. All other revenues from transaction-based services are recognized at a point in time when the performance obligation has been completed.

Wealth Management Services - These primarily represent annuity fees, sales commissions, management fees, insurance sales, and trust and asset management fees. The performance obligation for wealth management services is the provision of services to place annuity products issued by the counterparty to investors, and the provision of services to manage the client’s assets, including brokerage custodial and other management services. Revenue is recognized over the period in which services are performed, are based on a percentage of the value of the assets under management/administration, and are fixed or variable based on account type, or are transaction-based.

Other Service Charges and Fees - These include, but are not limited to, check cashing fees, international banking fees, internet banking fees, wire transfer fees and safe deposit fees. These fees are charged, and revenue is recognized, at the point in time the service being requested by the customer is provided thus satisfying our performance obligation.

Insurance Commissions - These represent commissions earned on the issuance of insurance products and services. The performance obligation is generally satisfied upon the issuance of the insurance policy and revenue is recognized when the commission payment is remitted by the insurance carrier or policy holder depending on if the billing is performed by FCB or the carrier.

ATM Income - These represent fees imposed on customers and non-customers for engaging in an ATM transaction. Revenue is recognized at the time of the transaction as the performance obligation of rendering the ATM service has been met.

Sales of Other Real Estate - ORE property consists of foreclosed real estate used as collateral for loans, closed branches, land acquired and no longer intended for future use by FCB, and other real estate purchased for resale as ORE. Revenue is generally recognized on the date of sale where the performance obligation of providing access and transferring control of the specified ORE property to the buyer in good faith and good title is satisfied. This is recorded as a component of other noninterest income.

Other - This consists of several forms of recurring revenue such as external rental income, parking income, FHLB dividends, and income earned on changes in the cash surrender value of bank-owned life insurance, all of which are outside the scope of ASU 2014-09. The remaining miscellaneous income is the result of immaterial transactions where revenue is recognized when, or as, the performance obligation is satisfied.

Reclassifications

Reclassifications

In certain instances, amounts reported in prior years' consolidated financial statements have been reclassified to conform to the current financial statement presentation. Such reclassifications had no effect on previously reported cash flows, shareholders' equity or net income.

Use of Estimates

Use of Estimates in the Preparation of Financial Statements

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported. Actual results could differ from those estimates, and different assumptions in the application of these policies could result in material changes in BancShares' consolidated financial position, the consolidated results of its operations or related disclosures. Material estimates that are particularly susceptible to significant change include:

• Allowance for loan and lease losses;

• Fair value of financial instruments, including acquired assets and assumed liabilities;

• Pension plan assumptions;

• Cash flow estimates on purchased credit-impaired (PCI) loans;

• Goodwill and other intangible assets;

• Federal Deposit Insurance Corporation (FDIC) shared-loss payable; and

• Income tax assets, liabilities and expense

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

FASB ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

This ASU requires a reclassification from accumulated other comprehensive income (AOCI) to retained earnings for stranded tax effects resulting from the newly enacted federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 (Tax Act), which was enacted on December 22, 2017. The Tax Act included a reduction to the corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. The amount of the reclassification would be the difference between the historical corporate income tax rate and the newly enacted 21 percent corporate income tax rate.

The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We adopted the guidance effective in the first quarter of 2018. The change in accounting principle was accounted for as a cumulative-effect adjustment to the balance sheet resulting in a $31.3 million increase to retained earnings and a corresponding decrease to AOCI on January 1, 2018.

FASB ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

This ASU requires employers to present the service cost component of the net periodic benefit cost in the same income statement line item as other employee compensation costs arising from services rendered during the period. Employers will present the other components separately from the line item that includes the service cost. In addition, only the service cost component of net benefit cost is eligible for capitalization.

The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted the guidance effective in the first quarter of 2018. The adoption did not have a material impact on our consolidated financial position or consolidated results of operations.

FASB ASU 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities

This ASU addresses certain aspects of recognition, measurement, presentation and disclosure of certain financial instruments. The amendments in this ASU (1) require most equity investments to be measured at fair value with changes in fair value recognized in net income; (2) simplify the impairment assessment of equity investments without a readily determinable fair value; (3) eliminate the requirement to disclose the method(s) and significant assumptions used to estimate the fair value for financial instruments measured at amortized cost on the balance sheet; (4) require public business entities to use exit price notion, rather than entry prices, when measuring fair value of financial instruments for disclosure purposes; (5) require separate presentation of financial assets and financial liabilities by measurement category and form of financial assets on the balance sheet or the accompanying notes to the financial statements; (6) require separate presentation in other comprehensive income of the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the organization has elected to measure the liability at fair value in accordance with the fair value option for financial instruments; and (7) state that a valuation allowance on deferred tax assets related to available-for-sale securities should be evaluated in combination with other deferred tax assets.

The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. We adopted the guidance effective in the first quarter of 2018. The change in accounting principle was accounted for as a cumulative-effect adjustment to the balance sheet resulting in an $18.7 million increase to retained earnings and a decrease to AOCI on January 1, 2018. With the adoption of this ASU equity securities can no longer be classified as available for sale, as such marketable equity securities are disclosed as a separate line item on the balance sheet with changes in the fair value of equity securities reflected in net income.

For equity investments without a readily determinable fair value, BancShares has elected to measure the equity investments using the measurement alternative which requires BancShares to make a qualitative assessment of whether the investment is impaired at each reporting period. Under the measurement alternative these investments will be measured at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for an identical or similar investment of the same issuer. If a qualitative assessment indicates that the investment is impaired, BancShares will estimate the investment's fair value in accordance with ASC 820 and, if the fair value is less than the investment's carrying value, recognize an impairment loss in net income equal to the difference between carrying value and fair value. Equity investments without a readily determinable fair value are recorded within other assets in the consolidated balance sheets.

FASB ASU 2014-09, Revenue from Contracts with Customers (Topic 606)

In May 2014, the FASB issued a standard on the recognition of revenue from contracts with customers with the core principle being for a company to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. The new standard, which provides a five step model to determine when and how revenue is recognized, also results in enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively and improves guidance for multiple-element arrangements.

Per ASU 2015-14, Deferral of the Effective Date, this guidance was deferred and is effective for fiscal periods beginning after December 15, 2017, including interim reporting periods within that reporting period. We adopted the guidance effective in the first quarter of 2018. Our revenue is comprised primarily of net interest income on financial assets and liabilities, which is explicitly excluded from the scope of the new guidance, and noninterest income. The contracts that are in scope of the guidance are primarily related to cardholder and merchant services income, service charges on deposit accounts, wealth management services income, other service charges and fees, insurance commissions, ATM income, sales of other real estate and other. Based on our overall assessment of revenue streams and review of related contracts affected by the ASU, the adoption of this guidance did not change the method in which we currently recognize revenue.

We also completed an evaluation of the costs related to these revenue streams to determine whether such costs should be presented as expenses or contra-revenue (i.e., gross vs. net). Based on this evaluation, we determined that the classification of cardholder and merchant processing costs as well as expenses for cardholder reward programs should be netted against cardholder and merchant services income. We used the full retrospective method of adoption and restated the prior financial statements to net the cardholder and merchant processing costs against the related cardholder and merchant services income. These classification changes resulted in changes to both noninterest income and noninterest expense, however, there was no change to previously reported net income. Merchant processing expenses of $20.8 million and $40.0 million have been reclassified and reported as a component of merchant services income for the three and six months ended June 30, 2017, respectively. Cardholder processing expenses of $6.8 million and cardholder reward programs expense of $3.0 million have been reclassified and reported as a component of cardholder services income for the three months ended June 30, 2017. For the six months ended June 30, 2017, cardholder processing expenses of $12.7 million and cardholder reward programs expense of $5.5 million were reclassified and reported as a component of cardholder services income.

Revenue Recognition

The standard requires disclosure of qualitative and quantitative information surrounding the amount, nature, timing and uncertainty of revenues and cash flows arising from contracts with customers. The core principle of the new standard is that revenue should be recognized when a company transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.

Descriptions of our noninterest revenue-generating activities that are within the scope of the new revenue ASU is broadly segregated as follows:

Cardholder and Merchant Services - These represent interchange fees from customer debit and credit card transactions that are earned at the time a cardholder engages in a transaction with a merchant as well as fees charged to merchants for providing them the ability to accept and process the debit and credit card transaction. Revenue is recognized when the performance obligation has been met as it is satisfied upon the completion of the card transaction. Additionally, ASU 2014-09 requires costs associated with cardholder and merchant services transactions to be netted against the fees from such transactions when an entity is acting as an agent in providing services to a customer.

Service Charges on Deposit Accounts - These deposit account-related fees represent monthly account maintenance and transaction-based service fees such as overdraft fees, stop payment fees and charges for issuing cashier's checks and money orders. For account maintenance services, revenue is recognized at the end of the statement period when our performance obligation has been satisfied. All other revenues from transaction-based services are recognized at a point in time when the performance obligation has been completed.

Wealth Management Services - These primarily represent annuity fees, sales commissions, management fees, insurance sales, and trust and asset management fees. The performance obligation for wealth management services is the provision of services to place annuity products issued by the counterparty to investors, and the provision of services to manage the client’s assets, including brokerage custodial and other management services. Revenue is recognized over the period in which services are performed, are based on a percentage of the value of the assets under management/administration, and are fixed or variable based on account type, or are transaction-based.

Other Service Charges and Fees - These include, but are not limited to, check cashing fees, international banking fees, internet banking fees, wire transfer fees and safe deposit fees. These fees are charged, and revenue is recognized, at the point in time the service being requested by the customer is provided thus satisfying our performance obligation.

Insurance Commissions - These represent commissions earned on the issuance of insurance products and services. The performance obligation is generally satisfied upon the issuance of the insurance policy and revenue is recognized when the commission payment is remitted by the insurance carrier or policy holder depending on if the billing is performed by FCB or the carrier.

ATM Income - These represent fees imposed on customers and non-customers for engaging in an ATM transaction. Revenue is recognized at the time of the transaction as the performance obligation of rendering the ATM service has been met.

Sales of Other Real Estate - ORE property consists of foreclosed real estate used as collateral for loans, closed branches, land acquired and no longer intended for future use by FCB, and other real estate purchased for resale as ORE. Revenue is generally recognized on the date of sale where the performance obligation of providing access and transferring control of the specified ORE property to the buyer in good faith and good title is satisfied. This is recorded as a component of other noninterest income.

Other - This consists of several forms of recurring revenue such as external rental income, parking income, FHLB dividends, and income earned on changes in the cash surrender value of bank-owned life insurance, all of which are outside the scope of ASU 2014-09. The remaining miscellaneous income is the result of immaterial transactions where revenue is recognized when, or as, the performance obligation is satisfied.

Recently Issued Accounting Pronouncements

FASB ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment

This ASU eliminates Step 2 from the goodwill impairment test. Under Step 2, an entity had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities (including unrecognized assets and liabilities) following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, an entity should consider income tax effects from any tax deductible goodwill on the carrying amount of the reporting unit when measuring the goodwill impairment loss, if applicable. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. This ASU eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative test.

This ASU will be effective for BancShares' annual or interim goodwill impairment tests for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We expect to adopt the guidance for our annual impairment test in fiscal year 2020. BancShares does not anticipate any impact to our consolidated financial position or consolidated results of operations as a result of the adoption.

FASB ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments

This ASU eliminates the delayed recognition of the full amount of credit losses until the loss was probable of occurring and instead will reflect an entity's current estimate of all expected credit losses. The amendments in this ASU broaden the information that an entity must consider in developing its expected credit loss estimate for assets measured either collectively or individually. The ASU does not specify a method for measuring expected credit losses and allows an entity to apply methods that reasonably reflect its expectations of the credit loss estimate based on the entity's size, complexity and risk profile. In addition, the disclosures of credit quality indicators in relation to the amortized cost of financing receivables, a current disclosure requirement, are further disaggregated by year of origination.

The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018. We will adopt the guidance by the first quarter of 2020 with a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. For BancShares, the standard will apply to loans, unfunded loan commitments and debt securities. A cross-functional team co-led by Corporate Finance and Risk Management is in place to implement the new standard. The team continues to work on critical activities such as building models, documenting accounting policies, reviewing data quality, and implementing a reporting and disclosure solution. We continue to evaluate the impact the new standard will have on our consolidated financial statements but the magnitude of this impact has not been determined. The final impact will be dependent, among other items, on loan portfolio composition and credit quality at the adoption date, as well as economic conditions, financial models used and forecasts at that time.

FASB ASU 2016-02, Leases (Topic 842)

This ASU increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The key difference between existing standards and this ASU is the requirement for lessees to recognize all lease contracts on their balance sheet. This ASU requires lessees to classify leases as either operating or finance leases, which are substantially similar to the current operating and capital leases classifications. The distinction between these two classifications under the new standard does not relate to balance sheet treatment, but relates to treatment in the statements of income and cash flows. Lessor guidance remains largely unchanged with the exception of how a lessor determines the appropriate lease classification for each lease to better align the lessor guidance with revised lessee classification guidance.

The amendments in this ASU are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. We will adopt during the first quarter of 2019. We expect an increase to the Consolidated Balance Sheets for right-of-use assets and associated lease liabilities, as well as resulting depreciation expense of the right-of-use assets and interest expense of the lease liabilities in the Consolidated Statements of Income, for arrangements previously accounted for as operating leases. Additionally, adding these assets to our balance sheet will impact our total risk-weighted assets used to determine our regulatory capital levels. Our impact analysis on this change in accounting principle estimates an increase to the Consolidated Balance Sheets for total lease liability ranging between $65.0 million and $85.0 million, as the initial gross up of both assets and liabilities. Capital is expected to be adversely impacted by an estimated four to six basis points. These are preliminary estimates subject to change and will continue to be refined closer to adoption.

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Business Combinations (Tables)

6 Months Ended

Jun. 30, 2018

Business Acquisition [Line Items]

Loans acquired, cash flows expected

The following table relates to purchased non-PCI loans acquired in the HomeBancorp transaction and provides the contractually required payments, estimate of contractual cash flows not expected to be collected and fair value of the acquired loans at the acquisition date.

(Dollars in thousands)
Contractually required payments	$	710,876
Contractual cash flows not expected to be collected	$	9,845
Fair value at acquisition date	$	550,618

The recorded fair values of purchased non-PCI loans acquired in the HomeBancorp transaction as of the acquisition date are as follows:

(Dollars in thousands)
Commercial:
Construction and land development	$	525
Commercial mortgage	188,688
Other commercial real estate	55,183
Commercial and industrial	7,931
Total commercial loans	252,327
Noncommercial:
Residential mortgage	296,273
Revolving mortgage	51
Consumer	1,967
Total noncommercial loans	298,291
Total non-PCI loans	$	550,618

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Investments (Tables)

6 Months Ended

Jun. 30, 2018

Gain (Loss) on Securities [Line Items]

Aggregate Values And Unrealized Gains And Losses Of Investment Securities

The amortized cost and fair value of investment securities classified as available for sale and held to maturity at June 30, 2018 and December 31, 2017, were as follows:

	June 30, 2018
(Dollars in thousands)	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury	$	1,508,435	$	—	$	4,461	$	1,503,974
Government agency	131,233		157		355		131,035
Mortgage-backed securities	3,104,316		1,621		71,872		3,034,065
Corporate bonds	108,649		391		250		108,790
Other	5,545		98		—		5,643
Total investment securities available for sale	$	4,858,178	$	2,267	$	76,938	$	4,783,507
	December 31, 2017
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury	$	1,658,410	$	—	$	546	$	1,657,864
Government agency	8,695		15		40		8,670
Mortgage-backed securities	5,419,379		1,529		80,152		5,340,756
Equity securities	75,471		29,737		—		105,208
Corporate bonds	59,414		557		8		59,963
Other	7,645		256		182		7,719
Total investment securities available for sale	$	7,229,014	$	32,094	$	80,928	$	7,180,180
	June 30, 2018
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities held to maturity
Mortgage-backed securities	$	2,299,774	$	3,778	$	1,459	$	2,302,093
	December 31, 2017
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities held to maturity
Mortgage-backed securities	$	76	$	5	$	—	$	81

Investment Securities Maturity Information

The following table provides the amortized cost and fair value by contractual maturity. Expected maturities will differ from contractual maturities on certain securities because borrowers and issuers may have the right to call or prepay obligations with or without prepayment penalties. Repayments of mortgage-backed securities are dependent on the repayments of the underlying loan balances.

	June 30, 2018				December 31, 2017
(Dollars in thousands)	Cost		Fair value		Cost		Fair value
Investment securities available for sale
Non-amortizing securities maturing in:
One year or less	$	1,255,746	$	1,252,487	$	808,768	$	808,301
One through five years	252,689		251,487		849,642		849,563
Five through 10 years	108,649		108,790		59,414		59,963
Over 10 years	5,545		5,643		7,645		7,719
Government agency	131,233		131,035		8,695		8,670
Mortgage-backed securities	3,104,316		3,034,065		5,419,379		5,340,756
Equity securities	—		—		75,471		105,208
Total investment securities available for sale	$	4,858,178	$	4,783,507	$	7,229,014	$	7,180,180
Investment securities held to maturity
Mortgage-backed securities held to maturity	$	2,299,774	$	2,302,093	$	76	$	81

Marketable Securities Gains (Losses)

The following table provides the realized and unrealized gains or losses on marketable equity securities for the three and six months ended June 30, 2018.

(Dollars in thousands)	Three months ended June 30, 2018		Six months ended June 30, 2018
Marketable equity securities gains, net	$	4,440	$	5,411
Less net gains recognized on marketable equity securities sold	139		235
Unrealized gains recognized on marketable equity securities held	$	4,301	$	5,176

Investment Securities With Unrealized Losses

The following table provides information regarding securities available for sale with unrealized losses as of June 30, 2018 and December 31, 2017.

	June 30, 2018
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Investment securities available for sale:
U.S. Treasury	$	1,503,974	$	4,461	$	—	$	—	$	1,503,974	$	4,461
Government agency	83,383		328		2,004		27		85,387		355
Mortgage-backed securities	1,923,954		50,765		654,212		21,107		2,578,166		71,872
Corporate bonds	24,673		248		5,025		2		29,698		250
Total	$	3,535,984	$	55,802	$	661,241	$	21,136	$	4,197,225	$	76,938
Investment securities held to maturity:
Mortgage-backed securities	$	1,126,683	$	1,249	$	11,219	$	210	$	1,137,902	$	1,459
	December 31, 2017
	Less than 12 months				12 months or more				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Investment securities available for sale:
U.S. Treasury	$	1,408,166	$	345	$	249,698	$	201	$	1,657,864	$	546
Government agency	848		12		2,527		28		3,375		40
Mortgage-backed securities	2,333,254		20,911		2,723,406		59,241		5,056,660		80,152
Corporate bonds	5,025		8		—		—		5,025		8
Other	5,349		182		—		—		5,349		182
Total	$	3,752,642	$	21,458	$	2,975,631	$	59,470	$	6,728,273	$	80,928

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

INVESTMENTS

The amortized cost and fair value of investment securities classified as available for sale and held to maturity at June 30, 2018 and December 31, 2017, were as follows:

	June 30, 2018
(Dollars in thousands)	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury	$	1,508,435	$	—	$	4,461	$	1,503,974
Government agency	131,233		157		355		131,035
Mortgage-backed securities	3,104,316		1,621		71,872		3,034,065
Corporate bonds	108,649		391		250		108,790
Other	5,545		98		—		5,643
Total investment securities available for sale	$	4,858,178	$	2,267	$	76,938	$	4,783,507
	December 31, 2017
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities available for sale
U.S. Treasury	$	1,658,410	$	—	$	546	$	1,657,864
Government agency	8,695		15		40		8,670
Mortgage-backed securities	5,419,379		1,529		80,152		5,340,756
Equity securities	75,471		29,737		—		105,208
Corporate bonds	59,414		557		8		59,963
Other	7,645		256		182		7,719
Total investment securities available for sale	$	7,229,014	$	32,094	$	80,928	$	7,180,180
	June 30, 2018
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities held to maturity
Mortgage-backed securities	$	2,299,774	$	3,778	$	1,459	$	2,302,093
	December 31, 2017
	Cost		Gross unrealized gains		Gross unrealized losses		Fair value
Investment securities held to maturity
Mortgage-backed securities	$	76	$	5	$	—	$	81

As a result of adopting ASU 2016-01 in the first quarter of 2018, investments in marketable equity securities are no longer classified as investments available for sale. At June 30, 2018 and December 31, 2017, we had $107.3 million and $105.2 million, respectively, in marketable equity securities recorded at fair value. Prior to January 1, 2018 equity securities were classified as available for sale and stated at fair value with unrealized gains and losses reported in accumulated other comprehensive income. A cumulative-effect adjustment of $18.7 million was recorded on January 1, 2018 to reclassify the net unrealized gains from accumulated other comprehensive income to retained earnings with subsequent changes in fair value recognized in the Consolidated Statements of Income.

On May 1, 2018, mortgage-backed securities with an amortized cost of $2.49 billion were transferred from investments available for sale to the held to maturity portfolio. At the time of transfer, the mortgage-backed securities had a fair value of $2.38 billion and a weighted average contractual maturity of 13 years. The unrealized loss on these securities at the date of transfer was $109.5 million and continues to be reported as a component of AOCI. This unrealized loss will be accreted over the remaining expected life of the securities as an adjustment of yield and is offset by the amortization of the corresponding discount on the transferred securities. FCB has the intent and ability to retain these securities until maturity.

Investments in mortgage-backed securities primarily represent securities issued by the Government National Mortgage Association, Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Investments in government agency securities represent securities issued by the United States Small Business Administration. Investments in corporate bonds and marketable equity securities represent positions in securities of other financial institutions. Other investments include trust preferred securities of financial institutions. The following table provides the amortized cost and fair value by contractual maturity. Expected maturities will differ from contractual maturities on certain securities because borrowers and issuers may have the right to call or prepay obligations with or without prepayment penalties. Repayments of mortgage-backed securities are dependent on the repayments of the underlying loan balances.

	June 30, 2018				December 31, 2017
(Dollars in thousands)	Cost		Fair value		Cost		Fair value
Investment securities available for sale
Non-amortizing securities maturing in:
One year or less	$	1,255,746	$	1,252,487	$	808,768	$	808,301
One through five years	252,689		251,487		849,642		849,563
Five through 10 years	108,649		108,790		59,414		59,963
Over 10 years	5,545		5,643		7,645		7,719
Government agency	131,233		131,035		8,695		8,670
Mortgage-backed securities	3,104,316		3,034,065		5,419,379		5,340,756
Equity securities	—		—		75,471		105,208
Total investment securities available for sale	$	4,858,178	$	4,783,507	$	7,229,014	$	7,180,180
Investment securities held to maturity
Mortgage-backed securities held to maturity	$	2,299,774	$	2,302,093	$	76	$	81

There were no gross gains or losses on sales of investment securities available for sale for the three or six months ended June 30, 2018. Gross gains and gross losses on sales of investment securities available for sale were $3.4 million and $2 thousand, respectively for the three months ended June 30, 2017. Gross gains and gross losses on sales of investment securities available for sale were $3.4 million and $29 thousand, respectively for the six months ended June 30, 2017.

The following table provides the realized and unrealized gains or losses on marketable equity securities for the three and six months ended June 30, 2018.

(Dollars in thousands)	Three months ended June 30, 2018		Six months ended June 30, 2018
Marketable equity securities gains, net	$	4,440	$	5,411
Less net gains recognized on marketable equity securities sold	139		235
Unrealized gains recognized on marketable equity securities held	$	4,301	$	5,176

The following table provides information regarding securities available for sale with unrealized losses as of June 30, 2018 and December 31, 2017.

	June 30, 2018
	Less than 12 months				12 months or more				Total
(Dollars in thousands)	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Investment securities available for sale:
U.S. Treasury	$	1,503,974	$	4,461	$	—	$	—	$	1,503,974	$	4,461
Government agency	83,383		328		2,004		27		85,387		355
Mortgage-backed securities	1,923,954		50,765		654,212		21,107		2,578,166		71,872
Corporate bonds	24,673		248		5,025		2		29,698		250
Total	$	3,535,984	$	55,802	$	661,241	$	21,136	$	4,197,225	$	76,938
Investment securities held to maturity:
Mortgage-backed securities	$	1,126,683	$	1,249	$	11,219	$	210	$	1,137,902	$	1,459
	December 31, 2017
	Less than 12 months				12 months or more				Total
	Fair value		Unrealized losses		Fair value		Unrealized losses		Fair value		Unrealized losses
Investment securities available for sale:
U.S. Treasury	$	1,408,166	$	345	$	249,698	$	201	$	1,657,864	$	546
Government agency	848		12		2,527		28		3,375		40
Mortgage-backed securities	2,333,254		20,911		2,723,406		59,241		5,056,660		80,152
Corporate bonds	5,025		8		—		—		5,025		8
Other	5,349		182		—		—		5,349		182
Total	$	3,752,642	$	21,458	$	2,975,631	$	59,470	$	6,728,273	$	80,928

As of June 30, 2018, there were 120 investment securities available for sale that had continuous losses for more than 12 months of which 119 are government sponsored enterprise-issued mortgage-backed securities or government agency securities and 1 is a corporate bond. There were 2 investment securities held to maturity, which were government sponsored enterprise-issued mortgage securities, that had continuous losses for more than 12 months at June 30, 2018.

None of the unrealized losses identified as of June 30, 2018 or December 31, 2017 relate to the marketability of the securities or the issuers' ability to honor redemption obligations. Rather, the unrealized losses relate to changes in interest rates relative to when the debt securities were purchased. BancShares has the ability and intent to retain these securities for a period of time sufficient to recover all unrealized losses. Therefore, none of the securities were deemed to be other than temporarily impaired.

Debt securities having an aggregate carrying value of $3.67 billion at June 30, 2018 and $4.59 billion at December 31, 2017 were pledged as collateral to secure public funds on deposit and certain short-term borrowings, and for other purposes as required by law.

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Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2018

Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]

Loans And Leases Outstanding

Loans and leases outstanding included the following at June 30, 2018 and December 31, 2017:

(Dollars in thousands)	June 30, 2018		December 31, 2017
Non-PCI loans and leases:
Commercial:
Construction and land development	$	715,011	$	669,215
Commercial mortgage	10,278,741		9,729,022
Other commercial real estate	473,452		473,433
Commercial and industrial	3,097,541		2,730,407
Lease financing	613,377		894,801
Other	296,614		302,176
Total commercial loans	15,474,736		14,799,054
Noncommercial:
Residential mortgage	3,980,845		3,523,786
Revolving mortgage	2,604,955		2,701,525
Construction and land development	250,704		248,289
Consumer	1,552,928		1,561,173
Total noncommercial loans	8,389,432		8,034,773
Total non-PCI loans and leases	23,864,168		22,833,827
PCI loans:
Total PCI loans	674,269		762,998
Total loans and leases	$	24,538,437	$	23,596,825

Composition Of The Loans And Leases Outstanding By Credit Quality Indicator

Non-PCI loans and leases outstanding at June 30, 2018 and December 31, 2017 by credit quality indicator are provided below:

	June 30, 2018
(Dollars in thousands)	Non-PCI commercial loans and leases
Grade:	Construction  and land development		Commercial mortgage		Other commercial real estate		Commercial  and industrial		Lease financing		Other		Total non-PCI commercial loans and leases
Pass	$	703,034	$	10,083,382	$	470,236	$	2,868,180	$	603,760	$	293,804	$	15,022,396
Special mention	352		88,157		1,159		35,636		3,916		1,258		130,478
Substandard	3,195		105,647		2,057		21,265		5,701		1,552		139,417
Doubtful	—		999		—		365		—		—		1,364
Ungraded	8,430		556		—		172,095		—		—		181,081
Total	$	715,011	$	10,278,741	$	473,452	$	3,097,541	$	613,377	$	296,614	$	15,474,736
	December 31, 2017
	Non-PCI commercial loans and leases
	Construction  and land development		Commercial mortgage		Other commercial real estate		Commercial  and industrial		Lease financing		Other		Total non-PCI commercial loans and leases
Pass	$	665,197	$	9,521,019	$	468,942	$	2,511,307	$	883,779	$	298,064	$	14,348,308
Special mention	691		78,643		1,260		44,130		4,340		2,919		131,983
Substandard	3,327		128,848		3,224		18,617		6,585		1,193		161,794
Doubtful	—		262		—		385		—		—		647
Ungraded	—		250		7		155,968		97		—		156,322
Total	$	669,215	$	9,729,022	$	473,433	$	2,730,407	$	894,801	$	302,176	$	14,799,054

	June 30, 2018
	Non-PCI noncommercial loans and leases
(Dollars in thousands)	Residential mortgage		Revolving mortgage		Construction and land development		Consumer		Total non-PCI noncommercial loans and leases
Current	$	3,936,065	$	2,581,818	$	248,343	$	1,541,465	$	8,307,691
30-59 days past due	21,032		9,864		1,839		6,013		38,748
60-89 days past due	6,291		3,367		51		2,729		12,438
90 days or greater past due	17,457		9,906		471		2,721		30,555
Total	$	3,980,845	$	2,604,955	$	250,704	$	1,552,928	$	8,389,432
	December 31, 2017
	Non-PCI noncommercial loans and leases
	Residential mortgage		Revolving mortgage		Construction and land development		Consumer		Total non-PCI noncommercial loans and leases
Current	$	3,465,935	$	2,674,390	$	239,648	$	1,546,473	$	7,926,446
30-59 days past due	27,886		13,428		7,154		8,812		57,280
60-89 days past due	8,064		3,485		108		2,893		14,550
90 days or greater past due	21,901		10,222		1,379		2,995		36,497
Total	$	3,523,786	$	2,701,525	$	248,289	$	1,561,173	$	8,034,773

PCI loans outstanding at June 30, 2018 and December 31, 2017 by credit quality indicator are provided below:

	June 30, 2018		December 31, 2017
(Dollars in thousands)	PCI commercial loans
Grade:
Pass	$	165,578	$	201,332
Special mention	58,024		63,257
Substandard	105,937		117,068
Doubtful	6,536		11,735
Ungraded	34		27
Total	$	336,109	$	393,419

	June 30, 2018		December 31, 2017
	PCI noncommercial loans
(Dollars in thousands)
Current	$	299,579	$	318,632
30-59 days past due	12,146		13,343
60-89 days past due	4,167		6,212
90 days or greater past due	22,268		31,392
Total	$	338,160	$	369,579

Aging Of The Outstanding Loans And Leases By Class Excluding Loans Impaired At Acquisition Date

The aging of the outstanding non-PCI loans and leases, by class, at June 30, 2018 and December 31, 2017 are provided in the tables below. Loans and leases 30 days or less past due are considered current as various grace periods allow borrowers to make payments within a stated period after the due date and still remain in compliance with the loan agreement.

	June 30, 2018
(Dollars in thousands)	30-59 days past due		60-89 days past due		90 days or greater		Total past due		Current		Total loans and leases
Non-PCI loans and leases:
Construction and land development - commercial	$	466	$	264	$	132	$	862	$	714,149	$	715,011
Commercial mortgage	10,120		5,021		5,599		20,740		10,258,001		10,278,741
Other commercial real estate	1,568		—		18		1,586		471,866		473,452
Commercial and industrial	6,445		3,743		1,155		11,343		3,086,198		3,097,541
Lease financing	3,062		1,167		951		5,180		608,197		613,377
Residential mortgage	21,032		6,291		17,457		44,780		3,936,065		3,980,845
Revolving mortgage	9,864		3,367		9,906		23,137		2,581,818		2,604,955
Construction and land development - noncommercial	1,839		51		471		2,361		248,343		250,704
Consumer	6,013		2,729		2,721		11,463		1,541,465		1,552,928
Other	42		17		—		59		296,555		296,614
Total non-PCI loans and leases	$	60,451	$	22,650	$	38,410	$	121,511	$	23,742,657	$	23,864,168
	December 31, 2017
	30-59 days past due		60-89 days past due		90 days or greater		Total past due		Current		Total loans and leases
Non-PCI loans and leases:
Construction and land development - commercial	$	491	$	442	$	357	$	1,290	$	667,925	$	669,215
Commercial mortgage	12,288		2,375		6,490		21,153		9,707,869		9,729,022
Other commercial real estate	107		—		75		182		473,251		473,433
Commercial and industrial	6,694		1,510		1,266		9,470		2,720,937		2,730,407
Lease financing	2,983		167		973		4,123		890,678		894,801
Residential mortgage	27,886		8,064		21,901		57,851		3,465,935		3,523,786
Revolving mortgage	13,428		3,485		10,222		27,135		2,674,390		2,701,525
Construction and land development - noncommercial	7,154		108		1,379		8,641		239,648		248,289
Consumer	8,812		2,893		2,995		14,700		1,546,473		1,561,173
Other	188		6		133		327		301,849		302,176
Total non-PCI loans and leases	$	80,031	$	19,050	$	45,791	$	144,872	$	22,688,955	$	22,833,827

Recorded Investment, By Class, In Loans And Leases On Nonaccrual Status And Loans And Leases Greater Than 90 Days Past Due And Still Accruing

The recorded investment, by class, in loans and leases on nonaccrual status, and loans and leases greater than 90 days past due and still accruing at June 30, 2018 and December 31, 2017 for non-PCI loans and leases, were as follows:

	June 30, 2018				December 31, 2017
(Dollars in thousands)	Nonaccrual loans and leases		Loans and leases > 90 days and accruing		Nonaccrual loans and leases		Loans and leases > 90 days and accruing
Non-PCI loans and leases:
Construction and land development - commercial	$	420	$	—	$	1,040	$	—
Commercial mortgage	18,457		839		22,625		397
Other commercial real estate	103		—		916		—
Commercial and industrial	3,168		319		2,884		428
Lease financing	1,755		—		1,992		—
Residential mortgage	35,173		—		38,942		—
Revolving mortgage	22,500		—		19,990		—
Construction and land development - noncommercial	1,012		—		1,989		—
Consumer	2,390		2,021		1,992		2,153
Other	77		—		164		—
Total non-PCI loans and leases	$	85,055	$	3,179	$	92,534	$	2,978

Schedule of Contractually Required Payments Including Principal and Interest Expected Cash Flows to be Collected and Fair Values [Table Text Block]

The following table relates to PCI loans acquired in the HomeBancorp transaction and summarizes the contractually required payments, which include principal and interest, expected cash flows to be collected and the fair value of PCI loans at the acquisition date.

(Dollars in thousands)
Contractually required payments	$	26,651
Cash flows expected to be collected	$	19,697
Fair value of loans at acquisition	$	15,555

Changes In Carrying Value Of PCI Loans

The recorded fair values of PCI loans acquired in the HomeBancorp transaction as of the acquisition date are as follows:

(Dollars in thousands)
Commercial:
Commercial mortgage	$	7,815
Commercial and industrial	423
Total commercial loans	8,238
Noncommercial:
Residential mortgage	7,317
Total noncommercial loans	7,317
Total PCI loans	$	15,555

The following table provides changes in the carrying value of all PCI loans during the six months ended June 30, 2018 and June 30, 2017:

(Dollars in thousands)	2018			2017
Balance at January 1	$	762,998		$	809,169
Fair value of acquired loans	15,555			199,682
Accretion	32,188			39,798
Payments received and other changes, net	(136,472		)	(153,786		)
Balance at June 30	$	674,269		$	894,863
Unpaid principal balance at June 30	$	1,044,148		$	1,199,358

Changes in Carrying Value of Accretable Yield for PCI Loans

The following table documents changes to the amount of accretable yield for the first six months of 2018 and 2017.

(Dollars in thousands)	2018			2017
Balance at January 1	$	316,679		$	335,074
Additions from acquisitions	4,142			44,120
Accretion	(32,188		)	(39,798		)
Reclassifications from nonaccretable difference	6,899			12,328
Changes in expected cash flows that do not affect nonaccretable difference	48,988			(1,405		)
Balance at June 30	$	344,520		$	350,319

Changes In Carrying Value of Accretable Yield for PCI Loans

The following table relates to purchased non-PCI loans acquired in the HomeBancorp transaction and provides the contractually required payments, estimate of contractual cash flows not expected to be collected and fair value of the acquired loans at the acquisition date.

(Dollars in thousands)
Contractually required payments	$	710,876
Contractual cash flows not expected to be collected	$	9,845
Fair value at acquisition date	$	550,618

The recorded fair values of purchased non-PCI loans acquired in the HomeBancorp transaction as of the acquisition date are as follows:

(Dollars in thousands)
Commercial:
Construction and land development	$	525
Commercial mortgage	188,688
Other commercial real estate	55,183
Commercial and industrial	7,931
Total commercial loans	252,327
Noncommercial:
Residential mortgage	296,273
Revolving mortgage	51
Consumer	1,967
Total noncommercial loans	298,291
Total non-PCI loans	$	550,618

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Allowance for Loan and Lease Losses (Tables)

6 Months Ended

Jun. 30, 2018

Receivables [Abstract]

Allowance for Loan and Lease Losses

The following tables present the activity in the ALLL for non-PCI loan and lease losses by loan class for the three and six months endedJune 30, 2018 and June 30, 2017:

	Three months ended June 30, 2018
(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	$	26,718		$	43,833		$	3,423		$	53,016		$	6,301		$	4,842		$	16,489		$	22,104		$	3,913		$	30,181		$	210,820
Provision	(3,139		)	866			468			5,670			(1,879		)	(114		)	1,492			289			50			4,574			8,277
Charge-offs	(8		)	(459		)	(69		)	(1,994		)	(445		)	(38		)	(289		)	(1,027		)	(37		)	(5,312		)	(9,678		)
Recoveries	93			225			1			638			4			1			110			520			101			1,330			3,023
Balance at June 30	$	23,664		$	44,465		$	3,823		$	57,330		$	3,981		$	4,691		$	17,802		$	21,886		$	4,027		$	30,773		$	212,442
	Three months ended June 30, 2017
(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
Balance at April 1	$	31,391		$	48,611		$	3,572		$	50,829		$	6,315		$	3,534		$	15,835		$	21,290		$	1,513		$	27,129		$	210,019
Provision	2,372			639			33			968			186			(214		)	155			1,054			(10		)	4,569			9,752
Charge-offs	(413		)	(235		)	—			(3,121		)	(97		)	(64		)	(222		)	(280		)	—			(4,991		)	(9,423		)
Recoveries	209			731			7			2,392			—			46			75			401			—			1,093			4,954
Balance at June 30	$	33,559		$	49,746		$	3,612		$	51,068		$	6,404		$	3,302		$	15,843		$	22,465		$	1,503		$	27,800		$	215,302
	Six months ended June 30, 2018
(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
Balance at January 1	$	24,470		$	45,005		$	4,571		$	53,697		$	6,127		$	4,689		$	15,706		$	22,436		$	3,962		$	31,204		$	211,867
Provision	(914		)	(499		)	(825		)	5,245			(892		)	—			3,004			755			157			7,497			13,528
Charge-offs	(8		)	(505		)	(69		)	(3,469		)	(1,299		)	(41		)	(1,095		)	(2,019		)	(219		)	(10,567		)	(19,291		)
Recoveries	116			464			146			1,857			45			43			187			714			127			2,639			6,338
Balance at June 30	$	23,664		$	44,465		$	3,823		$	57,330		$	3,981		$	4,691		$	17,802		$	21,886		$	4,027		$	30,773		$	212,442
	Six months ended June 30, 2017
(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
Balance at January 1	$	28,877		$	48,278		$	3,269		$	50,225		$	5,907		$	3,127		$	14,447		$	21,013		$	1,596		$	28,287		$	205,026
Provision	4,908			645			337			4,560			761			241			1,506			1,604			(93		)	6,359			20,828
Charge-offs	(490		)	(272		)	(5		)	(6,374		)	(270		)	(187		)	(472		)	(1,105		)	—			(9,019		)	(18,194		)
Recoveries	264			1,095			11			2,657			6			121			362			953			—			2,173			7,642
Balance at June 30	$	33,559		$	49,746		$	3,612		$	51,068		$	6,404		$	3,302		$	15,843		$	22,465		$	1,503		$	27,800		$	215,302

The following tables provide information on non-PCI impaired loans and leases individually evaluated as of June 30, 2018 and December 31, 2017.

	June 30, 2018
(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	$	2,098	$	—	$	2,098	$	2,431	$	274
Commercial mortgage	35,934		30,238		66,172		72,467		3,325
Other commercial real estate	375		702		1,077		1,264		65
Commercial and industrial	6,262		1,390		7,652		11,684		985
Lease financing	789		387		1,176		2,808		107
Other	97		—		97		315		20
Residential mortgage	25,529		18,424		43,953		46,684		3,343
Revolving mortgage	10,217		17,190		27,407		30,170		1,112
Construction and land development - noncommercial	544		2,367		2,911		3,633		66
Consumer	1,777		908		2,685		3,004		704
Total non-PCI impaired loans and leases	$	83,622	$	71,606	$	155,228	$	174,460	$	10,001
	December 31, 2017
(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	$	788	$	—	$	788	$	1,110	$	185
Commercial mortgage	39,135		34,520		73,655		78,936		3,648
Other commercial real estate	1,351		506		1,857		2,267		209
Commercial and industrial	6,326		1,648		7,974		10,475		665
Lease financing	1,890		24		1,914		2,571		397
Other	—		521		521		521		—
Residential mortgage	19,135		18,707		37,842		39,946		2,733
Revolving mortgage	5,875		17,895		23,770		25,941		1,085
Construction and land development - noncommercial	592		3,959		4,551		5,224		68
Consumer	2,107		667		2,774		3,043		738
Total non-PCI impaired loans and leases	$	77,199	$	78,447	$	155,646	$	170,034	$	9,728

Non-PCI impaired loans less than $500,000 that are collectively evaluated were $44.1 million and $49.1 million at June 30, 2018 and December 31, 2017, respectively.

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 endedJune 30, 2018 and June 30, 2017:

	Three months ended June 30, 2018				Three months ended June 30, 2017
(Dollars in thousands)	Average balance		Interest income recognized		Average balance		Interest income recognized
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	1,485	$	17	$	970	$	11
Commercial mortgage	68,113		659		74,121		651
Other commercial real estate	1,345		12		1,525		9
Commercial and industrial	7,585		76		10,159		98
Lease financing	1,842		14		1,911		14
Other	67		—		434		5
Residential mortgage	42,046		298		36,767		272
Revolving mortgage	26,388		222		8,484		62
Construction and land development - noncommercial	3,526		44		3,185		33
Consumer	2,654		28		2,052		24
Total non-PCI impaired loans and leases	$	155,051	$	1,370	$	139,608	$	1,179
	Six months ended June 30, 2018				Six months ended June 30, 2017
(Dollars in thousands)	Average balance		Interest income recognized		Average balance		Interest income recognized
Non-PCI impaired loans and leases:
Construction and land development - commercial	$	1,320	$	28	$	1,013	$	23
Commercial mortgage	70,190		1,370		74,715		1,293
Other commercial real estate	1,529		23		1,555		17
Commercial and industrial	7,554		152		10,844		202
Lease financing	2,040		25		1,740		28
Other	34		—		315		7
Residential mortgage	40,385		573		34,864		525
Revolving mortgage	25,590		423		8,227		119
Construction and land development - noncommercial	3,815		92		2,895		66
Consumer	2,581		56		1,976		47
Total non-PCI impaired loans and leases	$	155,038	$	2,742	$	138,144	$	2,327

The following tables show the activity in the allowance for PCI loan losses for the three and six months endedJune 30, 2018 and June 30, 2017.

(Dollars in thousands)	Three months ended June 30, 2018			Three months ended June 30, 2017
PCI Loans
Allowance for loan and lease losses:
Balance at April 1	$	12,296		$	10,924
Provision	161			2,572
Charge-offs	(34		)	—
Recoveries	—			—
Balance at June 30	$	12,423		$	13,496
	Six months ended June 30, 2018			Six months ended June 30, 2017
Balance at January 1	$	10,026		$	13,769
Provision	2,515			(273		)
Charge-offs	(118		)	—
Recoveries	—			—
Balance at June 30	$	12,423		$	13,496

Allocation of Allowance for Loan and Lease Losses

The following tables present the allowance for non-PCI loan and lease losses and the recorded investment in loans, by loan class, based on impairment method as of June 30, 2018 and December 31, 2017:

	June 30, 2018
(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	$	274	$	3,325	$	65	$	985	$	107	$	20	$	3,343	$	1,112	$	66	$	704	$	10,001
ALLL for loans and leases collectively evaluated for impairment	23,390		41,140		3,758		56,345		3,874		4,671		14,459		20,774		3,961		30,069		202,441
Total allowance for loan and lease losses	$	23,664	$	44,465	$	3,823	$	57,330	$	3,981	$	4,691	$	17,802	$	21,886	$	4,027	$	30,773	$	212,442
Loans and leases:
Loans and leases individually evaluated for impairment	$	2,098	$	66,172	$	1,077	$	7,652	$	1,176	$	97	$	43,953	$	27,407	$	2,911	$	2,685	$	155,228
Loans and leases collectively evaluated for impairment	712,913		10,212,569		472,375		3,089,889		612,201		296,517		3,936,892		2,577,548		247,793		1,550,243		23,708,940
Total loan and leases	$	715,011	$	10,278,741	$	473,452	$	3,097,541	$	613,377	$	296,614	$	3,980,845	$	2,604,955	$	250,704	$	1,552,928	$	23,864,168
	December 31, 2017
(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	$	185	$	3,648	$	209	$	665	$	397	$	—	$	2,733	$	1,085	$	68	$	738	$	9,728
ALLL for loans and leases collectively evaluated for impairment	24,285		41,357		4,362		53,032		5,730		4,689		12,973		21,351		3,894		30,466		202,139
Total allowance for loan and lease losses	$	24,470	$	45,005	$	4,571	$	53,697	$	6,127	$	4,689	$	15,706	$	22,436	$	3,962	$	31,204	$	211,867
Loans and leases:
Loans and leases individually evaluated for impairment	$	788	$	73,655	$	1,857	$	7,974	$	1,914	$	521	$	37,842	$	23,770	$	4,551	$	2,774	$	155,646
Loans and leases collectively evaluated for impairment	668,427		9,655,367		471,576		2,722,433		892,887		301,655		3,485,944		2,677,755		243,738		1,558,399		22,678,181
Total loan and leases	$	669,215	$	9,729,022	$	473,433	$	2,730,407	$	894,801	$	302,176	$	3,523,786	$	2,701,525	$	248,289	$	1,561,173	$	22,833,827

The following table shows the ending balances of PCI loans and related allowance as of June 30, 2018 and December 31, 2017:

(Dollars in thousands)	June 30, 2018		December 31, 2017
ALLL for loans acquired with deteriorated credit quality	$	12,423	$	10,026
Loans acquired with deteriorated credit quality	674,269		762,998

Troubled Debt Restructurings on Financing Receivables

The following table provides the types of non-PCI and PCI TDRs made during the three and six months endedJune 30, 2018 and June 30, 2017, as well as a summary of loans that were modified as a TDR during the twelve month periods ended June 30, 2018 and June 30, 2017 that subsequently defaulted during the three and six months endedJune 30, 2018 and June 30, 2017. 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, 2018						Three months ended June 30, 2017
	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 and PCI loans and leases
Interest only	1	154		2	821		3	571		1	332
Loan term extension	10	936		7	341		13	1,397		1	32
Below market interest rate	53	9,525		33	1,702		73	4,440		32	2,800
Discharged from bankruptcy	37	2,472		24	1,490		40	1,442		24	615
Total non-PCI and PCI restructurings	101	$	13,087	66	$	4,354	129	$	7,850	58	$	3,779

	Six months ended June 30, 2018						Six months ended June 30, 2017
	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 and PCI loans and leases
Interest only	2	821		2	821		3	571		1	332
Loan term extension	17	1,658		8	638		21	2,070		1	32
Below market interest rate	139	15,873		64	3,385		159	12,582		49	4,231
Discharged from bankruptcy	91	5,595		55	4,338		97	3,005		42	2,091
Total non-PCI and PCI restructurings	249	$	23,947	129	$	9,182	280	$	18,228	93	$	6,686

For the three and six months endedJune 30, 2018 and June 30, 2017, the pre-modification and post-modification outstanding recorded investments of loans modified as TDRs were not materially different.

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

	June 30, 2018						December 31, 2017
(Dollars in thousands)	Accruing		Nonaccruing		Total		Accruing		Nonaccruing		Total
Commercial loans
Construction and land development - commercial	$	2,050	$	228	$	2,278	$	4,089	$	483	$	4,572
Commercial mortgage	58,877		10,304		69,181		62,358		15,863		78,221
Other commercial real estate	1,039		39		1,078		1,012		788		1,800
Commercial and industrial	6,673		988		7,661		7,598		910		8,508
Lease financing	677		429		1,106		722		1,048		1,770
Other	44		126		170		521		—		521
Total commercial TDRs	69,360		12,114		81,474		76,300		19,092		95,392
Noncommercial
Residential mortgage	38,266		9,958		48,224		34,067		9,475		43,542
Revolving mortgage	19,752		6,778		26,530		17,673		5,180		22,853
Construction and land development - noncommercial	2,821		90		2,911		—		—		—
Consumer and other	2,111		574		2,685		2,351		423		2,774
Total noncommercial TDRs	62,950		17,400		80,350		54,091		15,078		69,169
Total TDRs	$	132,310	$	29,514	$	161,824	$	130,391	$	34,170	$	164,561

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

(Dollars in thousands)	June 30, 2018		December 31, 2017
Accruing TDRs:
PCI	$	18,546	$	18,163
Non-PCI	113,764		112,228
Total accruing TDRs	132,310		130,391
Nonaccruing TDRs:
PCI	253		272
Non-PCI	29,261		33,898
Total nonaccruing TDRs	29,514		34,170
All TDRs:
PCI	18,799		18,435
Non-PCI	143,025		146,126
Total TDRs	$	161,824	$	164,561

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Other Real Estate Owned (Tables)

6 Months Ended

Jun. 30, 2018

Banking and Thrift [Abstract]

Changes in other real estate owned

The following table explains changes in other real estate owned during the six months ended June 30, 2018 and June 30, 2017.

(Dollars in thousands)	Total
Balance at December 31, 2016	$	61,231
Additions	21,891
Additions acquired in the Guaranty Bank acquisition	55
Sales	(20,236		)
Write-downs	(2,160		)
Balance at June 30, 2017	$	60,781
Balance at December 31, 2017	$	51,097
Additions	11,868
Additions acquired in the HomeBanc acquisition	2,135
Sales	(15,769		)
Write-downs	(2,698		)
Balance at June 30, 2018	$	46,633

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FDIC Shared-Loss Receivable (Tables)

6 Months Ended

Jun. 30, 2018

FDIC Shared-Loss Receivable [Abstract]

Changes In Payable to FDIC

	Three months ended June 30				Six months ended June 30
(Dollars in thousands)	2018		2017		2018		2017
Beginning balance	$	102,466	$	98,013	$	101,342	$	97,008
Amortization	1,001		963		1,993		1,917
Adjustments related to changes in assumptions	20		150		152		201
Ending balance	$	103,487	$	99,126	$	103,487	$	99,126

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Mortgage Servicing Rights (Tables)

6 Months Ended

Jun. 30, 2018

Mortgage Servicing Rights [Abstract]

Mortgage servicing rights

The activity of the servicing asset for the three and six months endedJune 30, 2018 and 2017 is presented in the following table:

	Three months ended June 30						Six months ended June 30
(Dollars in thousands)	2018			2017			2018			2017
Beginning balance	$	21,659		$	20,771		$	21,945		$	20,415
Servicing rights originated	1,430			1,123			2,630			2,825
Amortization	(1,432		)	(1,370		)	(2,918		)	(2,720		)
Valuation allowance reversal	—			—			—			4
Ending balance	$	21,657		$	20,524		$	21,657		$	20,524

Mortgage servicing rights economic assumptions

Valuation of mortgage servicing rights is performed using a pooling methodology. Similar loans are pooled together and evaluated on a discounted earnings basis to determine the present value of future earnings. Key economic assumptions used to value mortgage servicing rights as of June 30, 2018 and December 31, 2017 were as follows:

	June 30, 2018			December 31, 2017
Discount rate - conventional fixed loans	9.86		%	9.41		%
Discount rate - all loans excluding conventional fixed loans	10.86		%	10.41		%
Weighted average constant prepayment rate	8.43		%	10.93		%
Weighted average cost to service a loan	$	72.79		$	64.03

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Estimated Fair Values (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value Disclosures [Abstract]

Estimated Fair Values For Certain Financial Assets And Financial Liabilities

For all other financial assets and financial liabilities, the carrying value is a reasonable estimate of the fair value as of June 30, 2018 and December 31, 2017. The carrying value and fair value for these assets and liabilities are equivalent because they are relatively short term in nature and there is no interest rate or credit risk that would cause the fair value to differ from the carrying value. Cash and due from banks is classified on the fair value hierarchy as Level 1. Overnight investments, income earned not collected, short-term borrowings and accrued interest payable are considered Level 2.

The table presents the carrying values and estimated fair values for financial instruments as of June 30, 2018 and December 31, 2017.

(Dollars in thousands)	June 30, 2018				December 31, 2017
	Carrying value		Fair value		Carrying value		Fair value
Cash and due from banks	$	260,525	$	260,525	$	336,150	$	336,150
Overnight investments	1,223,311		1,223,311		1,387,927		1,387,927
Investment securities available for sale	4,783,507		4,783,507		7,180,180		7,180,180
Investment securities held to maturity	2,299,774		2,302,093		76		81
Marketable equity securities	107,264		107,264		—		—
Loans held for sale	58,961		58,961		51,179		51,179
Net loans and leases	24,313,572		23,704,523		23,374,932		22,257,803
Income earned not collected	99,567		99,567		95,249		95,249
Federal Home Loan Bank stock	22,658		22,658		52,685		52,685
Mortgage servicing rights	21,657		28,668		21,945		26,170
Deposits	30,408,884		30,362,605		29,266,275		29,230,768
Short-term borrowings	613,993		613,993		693,807		693,807
Long-term obligations	241,360		250,823		870,240		852,112
Payable to the FDIC for shared-loss agreements	103,487		103,966		101,342		102,684
Accrued interest payable	1,909		1,909		3,952		3,952

Assets And Liabilities Carried At Fair Value On A Recurring Basis

For assets and liabilities carried at fair value on a recurring basis, the following table provides fair value information as of June 30, 2018 and December 31, 2017.

	June 30, 2018
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	1,503,974	$	—	$	1,503,974	$	—
Government agency	131,035		—		131,035		—
Mortgage-backed securities	3,034,065		—		3,034,065		—
Corporate bonds	108,790		—		—		108,790
Other	5,643		—		—		5,643
Total investment securities available for sale	$	4,783,507	$	—	$	4,669,074	$	114,433
Marketable equity securities	$	107,264	$	21,667	$	85,597	$	—
Loans held for sale	$	58,961	$	—	$	58,961	$	—
	December 31, 2017
			Fair value measurements using:
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Assets measured at fair value
Investment securities available for sale
U.S. Treasury	$	1,657,864	$	—	$	1,657,864	$	—
Government agency	8,670		—		8,670		—
Mortgage-backed securities	5,340,756		—		5,340,756		—
Equity securities	105,208		19,341		85,867		—
Corporate bonds	59,963		—		59,963		—
Other	7,719		—		7,719		—
Total investment securities available for sale	$	7,180,180	$	19,341	$	7,160,839	$	—
Loans held for sale	$	51,179	$	—	$	51,179	$	—

Fair Value of Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following tables summarize activity for Level 3 assets:

	Three months ended June 30, 2018
(Dollars in thousands)	Corporate bonds			Other
Balance at April 1, 2018	$	59,653		$	5,618
Amounts included in net income	48			7
Unrealized net (losses) gains included in other comprehensive income	(97		)	18
Purchases	51,591			—
Sales	(2,405		)	—
Balance at June 30, 2018	$	108,790		$	5,643

	Six months ended June 30, 2018
(Dollars in thousands)	Corporate bonds			Other
Balance at January 1, 2018	$	—		$	—
Transfers in	59,653			5,618
Amounts included in net income	48			7
Unrealized net (losses) gains included in other comprehensive income	(97		)	18
Purchases	51,591			—
Sales	(2,405		)	—
Balance at June 30, 2018	$	108,790		$	5,643

Fair Value Level 3 Significant Unobservable Input Assumptions

(Dollars in thousands)			June 30, 2018
Level 3 assets	Valuation technique	Significant unobservable input	Fair Value
Corporate bonds	Indicative bid provided by broker	Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company	$	108,790
Other	Indicative bid provided by broker	Multiple factors, including but not limited to, current operations, financial condition, cash flows, and recently executed financing transactions related to the company	5,643

Fair Value Option

The following table summarizes the difference between the aggregate fair value and the aggregate unpaid principal balance for residential real estate originated for sale measured at fair value as of June 30, 2018 and December 31, 2017.

	June 30, 2018
(Dollars in thousands)	Fair Value		Aggregate Unpaid Principal Balance		Difference
Originated loans held for sale	$	58,961	$	57,334	$	1,627
	December 31, 2017
	Fair Value		Aggregate Unpaid Principal Balance		Difference
Originated loans held for sale	$	51,179	$	49,796	$	1,383

No originated loans held for sale were 90 or more days past due or on nonaccrual status as of June 30, 2018 or December 31, 2017.

Certain other assets are adjusted to their fair value on a nonrecurring basis, including impaired loans, OREO, and goodwill, which are periodically tested for impairment, and mortgage servicing rights, which are carried at the lower of amortized cost or market. Non-impaired loans held for investment, deposits, short-term borrowings and long-term obligations are not reported at fair value.

Impaired loans are deemed to be at fair value if an associated allowance or current period charge-off has been recorded. The value of impaired loans is determined by either collateral valuations or discounted present value of the expected cash flow calculations. Collateral values are determined using appraisals or other third-party value estimates of the subject property with discounts generally between 6 and 11 percent applied for estimated holding and selling costs and other external factors that may impact the marketability of the property. Expected cash flows are determined using expected payment information at the individual loan level, discounted using the effective interest rate. The effective interest rate generally ranges between 2 and 18 percent.

OREO that has been acquired or written down in the current year is deemed to be at fair value, which uses asset valuations. Asset values are determined using appraisals or other third-party value estimates of the subject property with discounts generally between 6 and 11 percent applied for estimated holding and selling costs and other external factors that may impact the marketability of the property. Changes to the value of the assets between scheduled valuation dates are monitored through continued communication with brokers and monthly reviews by the asset manager assigned to each asset. If there are any significant changes in the market or the subject property, valuations are adjusted or new appraisals ordered to ensure the reported values reflect the most current information.

Assets And Liabilities Carried At Fair Value On A Nonrecurring Basis

For financial assets and liabilities carried at fair value on a nonrecurring basis, the following table provides fair value information as of June 30, 2018 and December 31, 2017.

	June 30, 2018
			Fair value measurements using:
(Dollars in thousands)	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Impaired loans	$	74,301	$	—	$	—	$	74,301
Other real estate remeasured during current year	21,105		—		—		21,105
	December 31, 2017
			Fair value measurements using:
	Fair value		Level 1 inputs		Level 2 inputs		Level 3 inputs
Impaired loans	$	72,539	$	—	$	—	$	72,539
Other real estate remeasured during current year	40,167		—		—		40,167

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Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2018

BancShares Plan

Defined Benefit Plan Disclosure [Line Items]

Schedule of Net Benefit Costs

BancShares Plan

For the three and six months endedJune 30, 2018 and 2017, the components of net periodic benefit cost are as follows:

	Three months ended June 30						Six months ended June 30
(Dollars in thousands)	2018			2017			2018			2017
Service cost	$	3,362		$	2,934		$	6,791		$	6,310
Interest cost	7,131			7,069			14,188			14,449
Expected return on assets	(11,976		)	(10,307		)	(23,933		)	(21,005		)
Amortization of prior service cost	20			53			40			105
Amortization of net actuarial loss	3,548			2,193			6,794			4,427
Net periodic benefit cost	$	2,085		$	1,942		$	3,880		$	4,286

Bancorporation Plan

Defined Benefit Plan Disclosure [Line Items]

Schedule of Net Benefit Costs

Bancorporation Plan

For the three and six months endedJune 30, 2018 and 2017, the components of net periodic benefit cost are as follows:

	Three months ended June 30						Six months ended June 30
(Dollars in thousands)	2018			2017			2018			2017
Service cost	$	624		$	670		$	1,286		$	1,341
Interest cost	1,592			1,682			3,179			3,365
Expected return on assets	(3,110		)	(2,796		)	(6,216		)	(5,592		)
Amortization of net actuarial loss	86			214			157			428
Net periodic benefit cost	$	(808	)	$	(230	)	$	(1,594	)	$	(458	)

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2018

Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]

Schedule of fair falue for off-balance sheet risks

The following table presents the commitments to extend credit and unfunded commitments as of June 30, 2018 and December 31, 2017:

(Dollars in thousands)	June 30, 2018		December 31, 2017
Unused commitments to extend credit	$	10,119,455	$	9,629,365
Standby letters of credit	87,574		81,530
Unfunded commitments for investments in affordable housing projects	77,622		61,819

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Accumulated Other Comprehensive Income (Loss) (Tables)

6 Months Ended

Jun. 30, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule Of Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive loss included the following as of June 30, 2018 and December 31, 2017:

	June 30, 2018									December 31, 2017
(Dollars in thousands)	Accumulated other comprehensive loss			Deferred tax benefit			Accumulated other comprehensive loss, net of tax			Accumulated other comprehensive loss			Deferred tax benefit			Accumulated other comprehensive loss, net of tax
Unrealized losses on securities available for sale	$	(74,671	)	$	(17,175	)	$	(57,496	)	$	(48,834	)	$	(17,889	)	$	(30,945	)
Unrealized losses on securities available for sale transferred to held to maturity	(105,034		)	(24,158		)	(80,876		)	—			—			—
Funded status of defined benefit plans	(138,008		)	(31,742		)	(106,266		)	(144,999		)	(53,650		)	(91,349		)
Total	$	(317,713	)	$	(73,075	)	$	(244,638	)	$	(193,833	)	$	(71,539	)	$	(122,294	)

The following table highlights changes in accumulated other comprehensive (loss) income by component for the three and six months endedJune 30, 2018 and June 30, 2017:

	Three months ended June 30, 2018
(Dollars in thousands)	Unrealized (losses) gains on securities available for sale1			Unrealized losses on securities available for sale transferred to held to maturity1			Defined benefit pension items1			Total
Beginning balance	$	(121,243	)	$	—		$	(109,080	)	$	(230,323	)
Cumulative effect adjustments	—			—			—			—
Other comprehensive loss before reclassifications	63,747			(84,321		)	—			(20,574		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			3,445			2,814			6,259
Net current period other comprehensive (loss) income	63,747			(80,876		)	2,814			(14,315		)
Ending balance	$	(57,496	)	$	(80,876	)	$	(106,266	)	$	(244,638	)
	Three months ended June 30, 2017
	Unrealized (losses) gains on securities available for sale1			Unrealized losses on securities available for sale transferred to held to maturity1			Defined benefit pension items1			Total
Beginning balance	$	(23,183	)	$	—		$	(87,758	)	$	(110,941	)
Other comprehensive income before reclassifications	8,646			—			—			8,646
Amounts reclassified from accumulated other comprehensive (loss) income	(2,111		)	—			1,563			(548		)
Net current period other comprehensive income	6,535			—			1,563			8,098
Ending balance	$	(16,648	)	$	—		$	(86,195	)	$	(102,843	)
	Six months ended June 30, 2018
	Unrealized (losses) gains on securities1			Unrealized losses on securities available for sale transferred to held to maturity1			Defined benefit pension items1			Total
Beginning balance	$	(30,945	)	$	—		$	(91,349	)	$	(122,294	)
Cumulative effect adjustments	(29,752		)	—			(20,300		)	(50,052		)
Other comprehensive income before reclassifications	3,201			(84,321		)	—			(81,120		)
Amounts reclassified from accumulated other comprehensive (loss) income	—			3,445			5,383			8,828
Net current period other comprehensive income	3,201			(80,876		)	5,383			(72,292		)
Ending balance	$	(57,496	)	$	(80,876	)	$	(106,266	)	$	(244,638	)
	Six months ended June 30, 2017
	Unrealized (losses) gains on securities1			Unrealized losses on securities available for sale transferred to held to maturity1			Defined benefit pension items1			Total
Beginning balance	$	(45,875	)	$	—		$	(89,317	)	$	(135,192	)
Other comprehensive income before reclassifications	31,323			—			—			31,323
Amounts reclassified from accumulated other comprehensive (loss) income	(2,096		)	—			3,122			1,026
Net current period other comprehensive income	29,227			—			3,122			32,349
Ending balance	$	(16,648	)	$	—		$	(86,195	)	$	(102,843	)

¹ All amounts are net of tax.

Reclassification out of Accumulated Other Comprehensive Income

(Dollars in thousands)	Three months ended June 30, 2018
Details about accumulated other comprehensive income (loss)	Amounts reclassified from accumulated other comprehensive income (loss)1			Affected line item in the statement where net income is presented
Amortization of unrealized losses on securities available for sale transferred to held to maturity	$	(4,473	)	Other
	1,028			Income taxes
	$	(3,445	)	Net Income
Amortization of defined benefit pension items
Prior service costs	$	(20	)	Salaries and wages
Actuarial losses	(3,634		)	Other
	(3,654		)	Income before income taxes
	840			Income taxes
	$	(2,814	)	Net income
Total reclassifications for the period	$	(6,259	)
	Three months ended June 30, 2017
Details about accumulated other comprehensive income (loss)	Amounts reclassified from accumulated other comprehensive income (loss)1			Affected line item in the statement where net income is presented
Unrealized gains and losses on securities available for sale	$	3,351		Securities gains, net
	(1,240		)	Income taxes
	$	2,111		Net income
Amortization of defined benefit pension items
Prior service costs	$	(53	)	Salaries and wages
Actuarial losses	(2,407		)	Other
	(2,460		)	Income before income taxes
	897			Income taxes
	$	(1,563	)	Net income
Total reclassifications for the period	$	548
	Six months ended June 30, 2018
Details about accumulated other comprehensive income (loss)	Amount reclassified from accumulated other comprehensive income (loss)1			Affected line item in the statement where net income is presented
Amortization of unrealized losses on securities available for sale transferred to held to maturity	$	(4,473	)	Other
	1,028			Income taxes
	$	(3,445	)	Net income
Amortization of defined benefit pension items
Prior service costs	$	(40	)	Salaries and wages
Actuarial losses	(6,951		)	Other
	(6,991		)	Employee benefits
	1,608			Income taxes
	$	(5,383	)	Net income
Total reclassifications for the period	$	(8,828	)
	Six months ended June 30, 2017
Details about accumulated other comprehensive income (loss)	Amount reclassified from accumulated other comprehensive income (loss)1			Affected line item in the statement where net income is presented
Unrealized gains and losses on securities available for sale	$	3,327		Securities gains, net
	(1,231		)	Income taxes
	$	2,096		Net income
Amortization of defined benefit pension items
Prior service costs	$	(105	)	Salaries and wages
Actuarial losses	(4,855		)	Other
	(4,960		)	Employee benefits
	1,838			Income taxes
	$	(3,122	)	Net income
Total reclassifications for the period	$	(1,026	)

¹ Amounts in parentheses indicate debits to profit/loss.

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Accounting Policies and Basis of Presentation Accounting Policies and Basis of Presentation (Recently Adopted Accounting Standards) (Details) $ in Thousands		6 Months Ended		12 Months Ended
	Dec. 22, 2017 Rate	Jun. 30, 2018 USD ($) basis_points	Jun. 30, 2017 USD ($)	Dec. 31, 2017 Rate
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Federal Statutory Income Tax Rate, Percent | Rate	21.00%			35.00%
Cumulative effect adjustments		$ (50,052)
Merchant processing			$ 20,800
Cardholder processing			6,800
Cardholder reward programs			$ 3,000
Income tax ASU cumulative effect adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		31,300
Financial Instruments ASU cumulative effect adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		18,700
Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustments		65,000
Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect adjustments		$ 85,000
Capital basis points | Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Capital Quantification | basis_points		4
Capital basis points | Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
New Accounting Pronouncement or Change in Accounting Principle, Effect of Adoption, Capital Quantification | basis_points		6

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Business Combinations (Details) - USD ($) $ / shares in Units, $ in Thousands				3 Months Ended		6 Months Ended
	Jul. 25, 2018	Jun. 27, 2018	May 01, 2018	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Dec. 31, 2017	Jan. 13, 2017	Mar. 11, 2016
Business Acquisition [Line Items]
Available-for-sale Securities, Gross Realized Losses					$ 2		$ 29
Available-for-sale Securities, Gross Realized Gains					3,353		3,356
Purchase price						$ 112,657
Assets				$ 35,088,566		35,088,566			$ 34,527,512
Loans and Leases				24,538,437		24,538,437			23,596,825
Deposits				30,408,884		30,408,884			29,266,275
PCI loans and leases										$ 15,555	$ 199,682
Gain on acquisitions				0	122,728	0	134,745
Merger-related expenses				2,412	$ 6,853	3,010	$ 7,686
Revenue generated						5,000
Goodwill				208,217		208,217			$ 150,601
Capital Commerce Bancorp
Business Acquisition [Line Items]
Business Acquisition, Share Price		$ 135.00
Purchase price		$ 28,100
Assets								$ 216,200
Loans and Leases								180,600
Deposits								$ 171,000
Palmetto Heritage Bancshares
Business Acquisition [Line Items]
Business Acquisition, Share Price		$ 4.75
Assets				167,900		167,900
Loans and Leases				137,800		137,800
Deposits				126,400		126,400
HomeBancorp Inc.
Business Acquisition [Line Items]
Business Acquisition, Share Price			$ 15.03
Purchase price			$ 112,700
Cash and cash equivalents			6,359
Overnight investments			10,393
Investment securities available for sale			200,918
Loans held for sale			791
Loans			566,173
PCI loans and leases			15,555
Core deposit intangible			9,900
Non-PCI Loans			550,618
Premises and equipment			6,542
Other real estate owned			2,135
Income earned not collected			2,717
Intangible asset			13,206
Other assets			33,459
Total assets acquired			842,693
Deposits			619,589
Short-term borrowings			108,973
Accrued interest payable			1,020
Long-term obligations			52,944
Other liabilities			5,126
Total liabilities assumed			787,652
Fair value of net assets (liabilities) assumed			$ 55,041
Goodwill acquired						57,616
Merger-related expenses				$ 1,500		$ 1,700
Subsequent Event [Member] | Palmetto Heritage Bancshares
Business Acquisition [Line Items]
Purchase price	$ 30,300

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Business Combinations (Loans Acquired) (Details) - USD ($) $ in Thousands	Jan. 13, 2017	Mar. 11, 2016
Business Acquisition [Line Items]
PCI loans and leases	$ 15,555	$ 199,682

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Investments (Aggregate Values and Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Investment securities available for sale
Cost	$ 4,858,178	$ 7,229,014
Gross Unrealized Gains	2,267	32,094
Gross Unrealized Losses	76,938	80,928
Fair Value	4,783,507	7,180,180
Investment securities held to maturity
Cost	2,299,774	76
U. S. Treasury
Investment securities available for sale
Cost	1,508,435	1,658,410
Gross Unrealized Gains	0	0
Gross Unrealized Losses	4,461	546
Fair Value	1,503,974	1,657,864
Government Agency
Investment securities available for sale
Cost	131,233	8,695
Gross Unrealized Gains	157	15
Gross Unrealized Losses	355	40
Fair Value	131,035	8,670
Mortgage Backed Securities
Investment securities available for sale
Cost	3,104,316	5,419,379
Gross Unrealized Gains	1,621	1,529
Gross Unrealized Losses	71,872	80,152
Fair Value	3,034,065	5,340,756
Investment securities held to maturity
Cost	2,299,774	76
Held To Maturity Securities Accumulated Unrecognized Holding Gain	3,778	5
Held To Maturity Securities Accumulated Unrecognized Holding Loss	1,459	0
Fair Value	2,302,093	81
Equity Securities
Investment securities available for sale
Cost	0	75,471
Gross Unrealized Gains		29,737
Gross Unrealized Losses		0
Fair Value	0	105,208
Corporate Bonds
Investment securities available for sale
Cost	108,649	59,414
Gross Unrealized Gains	391	557
Gross Unrealized Losses	250	8
Fair Value	108,790	59,963
Other
Investment securities available for sale
Cost	5,545	7,645
Gross Unrealized Gains	98	256
Gross Unrealized Losses	0	182
Fair Value	$ 5,643	$ 7,719

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Investments (Maturity Information) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Investment securities available for sale
Total investment securities available for sale, cost	$ 4,858,178	$ 7,229,014
Total investment securities available for sale, fair value	4,783,507	7,180,180
Investment securities held to maturity
Investment securities held to maturity	2,299,774	76
Debt Securities
Investment securities available for sale
Maturing in one year or less, cost	1,255,746	808,768
Maturing in one through five years, cost	252,689	849,642
Maturing in five through ten years, cost	108,649	59,414
Maturing in over ten years, cost	5,545	7,645
Maturing in one year or less, fair value	1,252,487	808,301
Maturing in one through five years, fair value	251,487	849,563
Maturing in five through ten yeas, fair value	108,790	59,963
Maturing in over ten years, fair value	5,643	7,719
Mortgage Backed Securities
Investment securities available for sale
Total investment securities available for sale, cost	3,104,316	5,419,379
Total investment securities available for sale, fair value	3,034,065	5,340,756
Investment securities held to maturity
Investment securities held to maturity	2,299,774	76
Fair Value	2,302,093	81
Equity Securities
Investment securities available for sale
Total investment securities available for sale, cost	0	75,471
Total investment securities available for sale, fair value	$ 0	$ 105,208

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Investments (Unrealized Losses) (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Schedule of Investments [Line Items]
Unrealized Losses Related to Marketability of Securities or Issuer's Ability to Honor Redemption Obligations	$ 0	$ 0
Investment securities available for sale:
Fair Value, Less than 12 months	3,535,984,000	3,752,642,000
Unrealized Losses, Less than 12 months	55,802,000	21,458,000
Fair Value, 12 months or more	661,241,000	2,975,631,000
Unrealized Losses, Greater than 12 months	21,136,000	59,470,000
Fair Value, Total	4,197,225,000	6,728,273,000
Unrealized Losses, Total	76,938,000	80,928,000
U. S. Treasury
Investment securities available for sale:
Fair Value, Less than 12 months	1,503,974,000	1,408,166,000
Unrealized Losses, Less than 12 months	4,461,000	345,000
Fair Value, 12 months or more	0	249,698,000
Unrealized Losses, Greater than 12 months	0	201,000
Fair Value, Total	1,503,974,000	1,657,864,000
Unrealized Losses, Total	4,461,000	546,000
Government Agency
Investment securities available for sale:
Fair Value, Less than 12 months	83,383,000	848,000
Unrealized Losses, Less than 12 months	328,000	12,000
Fair Value, 12 months or more	2,004,000	2,527,000
Unrealized Losses, Greater than 12 months	27,000	28,000
Fair Value, Total	85,387,000	3,375,000
Unrealized Losses, Total	355,000	40,000
Mortgage Backed Securities
Investment securities available for sale:
Fair Value, Less than 12 months	1,923,954,000	2,333,254,000
Unrealized Losses, Less than 12 months	50,765,000	20,911,000
Fair Value, 12 months or more	654,212,000	2,723,406,000
Unrealized Losses, Greater than 12 months	21,107,000	59,241,000
Fair Value, Total	2,578,166,000	5,056,660,000
Unrealized Losses, Total	71,872,000	80,152,000
Investment securities held to maturity
Fair Value, Less than 12 months	1,126,683,000
Unrealized Losses, Less than 12 months	1,249,000
Fair Value, 12 months or more	11,219,000
Unrealized Losses, 12 months or more	210,000
Fair Value, Total	1,137,902,000
Unrealized Losses, Total	1,459,000	0
Corporate bonds
Investment securities available for sale:
Fair Value, Less than 12 months		5,025,000
Unrealized Losses, Less than 12 months		8,000
Fair Value, 12 months or more		0
Unrealized Losses, Greater than 12 months		0
Fair Value, Total		5,025,000
Unrealized Losses, Total		8,000
Equity Securities
Investment securities available for sale:
Unrealized Losses, Total		0
Corporate Bonds
Investment securities available for sale:
Fair Value, Less than 12 months	24,673,000
Unrealized Losses, Less than 12 months	248,000
Fair Value, 12 months or more	5,025,000
Unrealized Losses, Greater than 12 months	2,000
Fair Value, Total	29,698,000
Unrealized Losses, Total	250,000	8,000
Other
Investment securities available for sale:
Fair Value, Less than 12 months		5,349,000
Unrealized Losses, Less than 12 months		182,000
Fair Value, 12 months or more		0
Unrealized Losses, Greater than 12 months		0
Fair Value, Total		5,349,000
Unrealized Losses, Total	$ 0	$ 182,000

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Investments (Securities Gains (Losses)) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Investments [Abstract]
Gross gains on sales of investment securities available for sale	$ 3,353	$ 3,356
Gross losses on sales of investment securities available for sale	$ (2)	$ (29)

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Investments Marketable Equity Securities Gains (Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Marketable Equity Securities Gains (Losses) [Abstract]
Marketable equity securities gain (loss), net	$ 4,440	$ 0	$ 5,411	$ 0
Net gains (losses) recognized on marketable equity securities sold	139		235
Unrealized gains (losses) recognized on marketable equity securities held	$ 4,301		$ 5,176

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Investments (Narrative) (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($) investments	Jun. 30, 2017 USD ($)	Jun. 30, 2018 USD ($) investments	Jun. 30, 2017 USD ($)	May 01, 2018 USD ($)	Dec. 31, 2017 USD ($)
Schedule of Investments [Line Items]
Marketable equity securities	$ 107,264,000		$ 107,264,000			$ 0
Unrealized Losses Related to Marketability of Securities or Issuer's Ability to Honor Redemption Obligations	0		0			0
Fair Value, 12 months or more in unrealized loss position	661,241,000		661,241,000			2,975,631,000
Unrealized Losses, Greater than 12 months	21,136,000		21,136,000			59,470,000
Investment value deemed to be OTTI	0	$ 0
Investment securities, aggregate carrying value, pledged as collateral	3,670,000,000		3,670,000,000			4,590,000,000
Investment securities available for sale	4,783,507,000		4,783,507,000			7,180,180,000
Unrealized losses on available for sale securities transferred to held to maturity included in comprehensive income	(109,507,000)	$ 0	(109,507,000)	$ 0
Equity Securities
Schedule of Investments [Line Items]
Investment securities available for sale	0		0			105,208,000
Mortgage Backed Securities
Schedule of Investments [Line Items]
Fair Value, 12 months or more in unrealized loss position	654,212,000		654,212,000			2,723,406,000
Unrealized Losses, Greater than 12 months	$ 21,107,000		$ 21,107,000			59,241,000
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | investments	119		119
Investment securities available for sale	$ 3,034,065,000		$ 3,034,065,000			5,340,756,000
Investment securities available for sale transferred to held to maturity amortized cost					$ 2,490,000,000
Investment securities available for sale transferred to held to maturity fair value					$ 2,380,000,000
U. S. Treasury
Schedule of Investments [Line Items]
Fair Value, 12 months or more in unrealized loss position	0		0			249,698,000
Unrealized Losses, Greater than 12 months	0		0			201,000
Investment securities available for sale	1,503,974,000		1,503,974,000			1,657,864,000
Corporate Bonds
Schedule of Investments [Line Items]
Fair Value, 12 months or more in unrealized loss position	5,025,000		5,025,000
Unrealized Losses, Greater than 12 months	$ 2,000		$ 2,000
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | investments	1		1
Investment securities available for sale	$ 108,790,000		$ 108,790,000			$ 59,963,000
Financial Instruments ASU cumulative effect adjustment
Schedule of Investments [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 18,700,000		$ 18,700,000

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Loans and Leases (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged	$ 6,220,000		$ 6,220,000		$ 6,080,000
Advances from Federal Home Loan Banks	128,700		128,700		835,200
Federal Home Loan Bank Advances, Current Borrowing Capacity	6,090,000		6,090,000		5,240,000
Unamortized Loan Commitment and Origination Fees and Unamortized Discounts or Premiums	1,200		1,200		1,700
Loans and Leases Receivable, Gross, Carrying Amount, Covered	62,100		62,100
Federal Reserve Bank, Advances, General Debt Obligations, Disclosures, Collateral Pledged	2,170,000		2,170,000		2,080,000
Loans held for sale	58,961		58,961		51,179
Transfer of Portfolio Loans and Leases to Held-for-sale			0	$ 84,509
Proceeds From Sales of Loans	164,228	$ 146,954	302,766	342,085
Proceeds from sales of portfolio loans			0	32,294
Gain (Loss) on sale of loans and leases			0	164
Non-PCI Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccruing	85,055		85,055		92,534
Accretion Income	4,100	3,000	7,000	$ 6,000
PCI Loans
Financing Receivable, Recorded Investment [Line Items]
Nonaccruing	1,600		1,600		600
Accretion Income	14,200	$ 20,400
HomeBancorp Inc.
Financing Receivable, Recorded Investment [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Purchase Discount Remaining	7,000		7,000
Guaranty Bank
Financing Receivable, Recorded Investment [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Purchase Discount Remaining	12,300		12,300		14,200
Cordia Bancorp Inc.
Financing Receivable, Recorded Investment [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Purchase Discount Remaining	1,900		1,900		2,700
Bancorporation
Financing Receivable, Recorded Investment [Line Items]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Purchase Discount Remaining	14,700		14,700		18,100
Federal Home Loan Bank of Atlanta
Financing Receivable, Recorded Investment [Line Items]
Loans Pledged as Collateral	9,080,000		9,080,000		8,750,000
Federal Reserve Bank
Financing Receivable, Recorded Investment [Line Items]
Loans Pledged as Collateral	$ 2,880,000		$ 2,880,000		$ 2,770,000

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Loans and Leases (Loans and Leases Outstanding) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Non-PCI loans	$ 23,864,168	$ 22,833,827
PCI loans	674,269	762,998	$ 894,863	$ 809,169
Total loans and leases	24,538,437	23,596,825
Commercial
Non-PCI loans	15,474,736	14,799,054
PCI loans	336,109
Commercial | Construction and land development
Non-PCI loans	715,011	669,215
Commercial | Mortgage
Non-PCI loans	10,278,741	9,729,022
Commercial | Other commercial real estate
Non-PCI loans	473,452	473,433
Commercial | Commercial and industrial
Non-PCI loans	3,097,541	2,730,407
Commercial | Lease financing
Non-PCI loans	613,377	894,801
Commercial | Other
Non-PCI loans	296,614	302,176
Noncommercial
Non-PCI loans	8,389,432	8,034,773
PCI loans	338,160
Noncommercial | Construction and land development
Non-PCI loans	250,704	248,289
Noncommercial | Mortgage
Non-PCI loans	3,980,845	3,523,786
Noncommercial | Revolving mortgage
Non-PCI loans	2,604,955	2,701,525
Noncommercial | Consumer
Non-PCI loans	$ 1,552,928	$ 1,561,173

XML

Loans and Leases (Composition of the Loans and Leases Outstanding By Credit Quality Indicator) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
PCI loans	$ 674,269	$ 762,998	$ 894,863	$ 809,169
Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	15,474,736	14,799,054
PCI loans	336,109
Commercial | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	10,278,741	9,729,022
Commercial | Other commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	473,452	473,433
Commercial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	3,097,541	2,730,407
Commercial | Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	613,377	894,801
Commercial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	296,614	302,176
Commercial | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	715,011	669,215
Commercial | Pass
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	15,022,396	14,348,308
PCI loans	165,578
Commercial | Pass | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	10,083,382	9,521,019
Commercial | Pass | Other commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	470,236	468,942
Commercial | Pass | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	2,868,180	2,511,307
Commercial | Pass | Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	603,760	883,779
Commercial | Pass | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	293,804	298,064
Commercial | Pass | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	703,034	665,197
Commercial | Special Mention
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	130,478	131,983
PCI loans	58,024
Commercial | Special Mention | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	88,157	78,643
Commercial | Special Mention | Other commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	1,159	1,260
Commercial | Special Mention | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	35,636	44,130
Commercial | Special Mention | Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	3,916	4,340
Commercial | Special Mention | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	1,258	2,919
Commercial | Special Mention | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	352	691
Commercial | Substandard
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	139,417	161,794
PCI loans	105,937
Commercial | Substandard | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	105,647	128,848
Commercial | Substandard | Other commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	2,057	3,224
Commercial | Substandard | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	21,265	18,617
Commercial | Substandard | Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	5,701	6,585
Commercial | Substandard | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	1,552	1,193
Commercial | Substandard | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	3,195	3,327
Commercial | Doubtful
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	1,364	647
PCI loans	6,536
Commercial | Doubtful | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	999	262
Commercial | Doubtful | Other commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	0	0
Commercial | Doubtful | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	365	385
Commercial | Doubtful | Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	0	0
Commercial | Doubtful | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	0	0
Commercial | Doubtful | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	0	0
Commercial | Ungraded
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	181,081	156,322
PCI loans	34
Commercial | Ungraded | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	556	250
Commercial | Ungraded | Other commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	0	7
Commercial | Ungraded | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	172,095	155,968
Commercial | Ungraded | Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	0	97
Commercial | Ungraded | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	0	0
Commercial | Ungraded | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	8,430	0
Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
PCI loans	338,160
Non-PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	23,864,168	22,833,827
Past due loans	121,511	144,872
Current loans	23,742,657	22,688,955
Non-PCI Loans | Commercial | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	10,278,741	9,729,022
Past due loans	20,740	21,153
Current loans	10,258,001	9,707,869
Non-PCI Loans | Commercial | Other commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	473,452	473,433
Past due loans	1,586	182
Current loans	471,866	473,251
Non-PCI Loans | Commercial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	3,097,541	2,730,407
Past due loans	11,343	9,470
Current loans	3,086,198	2,720,937
Non-PCI Loans | Commercial | Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	613,377	894,801
Past due loans	5,180	4,123
Current loans	608,197	890,678
Non-PCI Loans | Commercial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	296,614	302,176
Past due loans	59	327
Current loans	296,555	301,849
Non-PCI Loans | Commercial | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	715,011	669,215
Past due loans	862	1,290
Current loans	714,149	667,925
Non-PCI Loans | Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	8,389,432	8,034,773
Current loans	8,307,691	7,926,446
Non-PCI Loans | Noncommercial | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	3,980,845	3,523,786
Past due loans	44,780	57,851
Current loans	3,936,065	3,465,935
Non-PCI Loans | Noncommercial | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	250,704	248,289
Past due loans	2,361	8,641
Current loans	248,343	239,648
Non-PCI Loans | Noncommercial | Revolving mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	2,604,955	2,701,525
Past due loans	23,137	27,135
Current loans	2,581,818	2,674,390
Non-PCI Loans | Noncommercial | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non-PCI loans	1,552,928	1,561,173
Past due loans	11,463	14,700
Current loans	1,541,465	1,546,473
PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
PCI loans	674,269	762,998
PCI Loans | Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Current loans	299,579
90 Days or greater | Non-PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	38,410	45,791
90 Days or greater | Non-PCI Loans | Commercial | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	5,599	6,490
90 Days or greater | Non-PCI Loans | Commercial | Other commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	18	75
90 Days or greater | Non-PCI Loans | Commercial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	1,155	1,266
90 Days or greater | Non-PCI Loans | Commercial | Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	951	973
90 Days or greater | Non-PCI Loans | Commercial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	0	133
90 Days or greater | Non-PCI Loans | Commercial | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	132	357
90 Days or greater | Non-PCI Loans | Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	30,555	36,497
90 Days or greater | Non-PCI Loans | Noncommercial | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	17,457	21,901
90 Days or greater | Non-PCI Loans | Noncommercial | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	471	1,379
90 Days or greater | Non-PCI Loans | Noncommercial | Revolving mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	9,906	10,222
90 Days or greater | Non-PCI Loans | Noncommercial | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	2,721	2,995
90 Days or greater | PCI Loans | Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	22,268
60 to 89 Days past due | Non-PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	22,650	19,050
60 to 89 Days past due | Non-PCI Loans | Commercial | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	5,021	2,375
60 to 89 Days past due | Non-PCI Loans | Commercial | Other commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	0	0
60 to 89 Days past due | Non-PCI Loans | Commercial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	3,743	1,510
60 to 89 Days past due | Non-PCI Loans | Commercial | Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	1,167	167
60 to 89 Days past due | Non-PCI Loans | Commercial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	17	6
60 to 89 Days past due | Non-PCI Loans | Commercial | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	264	442
60 to 89 Days past due | Non-PCI Loans | Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	12,438	14,550
60 to 89 Days past due | Non-PCI Loans | Noncommercial | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	6,291	8,064
60 to 89 Days past due | Non-PCI Loans | Noncommercial | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	51	108
60 to 89 Days past due | Non-PCI Loans | Noncommercial | Revolving mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	3,367	3,485
60 to 89 Days past due | Non-PCI Loans | Noncommercial | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	2,729	2,893
60 to 89 Days past due | PCI Loans | Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	4,167
30 to 59 Days past due | Non-PCI Loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	60,451	80,031
30 to 59 Days past due | Non-PCI Loans | Commercial | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	10,120	12,288
30 to 59 Days past due | Non-PCI Loans | Commercial | Other commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	1,568	107
30 to 59 Days past due | Non-PCI Loans | Commercial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	6,445	6,694
30 to 59 Days past due | Non-PCI Loans | Commercial | Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	3,062	2,983
30 to 59 Days past due | Non-PCI Loans | Commercial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	42	188
30 to 59 Days past due | Non-PCI Loans | Commercial | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	466	491
30 to 59 Days past due | Non-PCI Loans | Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	38,748	57,280
30 to 59 Days past due | Non-PCI Loans | Noncommercial | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	21,032	27,886
30 to 59 Days past due | Non-PCI Loans | Noncommercial | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	1,839	7,154
30 to 59 Days past due | Non-PCI Loans | Noncommercial | Revolving mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	9,864	13,428
30 to 59 Days past due | Non-PCI Loans | Noncommercial | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	6,013	$ 8,812
30 to 59 Days past due | PCI Loans | Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Past due loans	$ 12,146

XML

Loans and Leases (Aging Of The Outstanding Loans and Leases By Class) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
PCI loans	$ 674,269	$ 762,998	$ 894,863	$ 809,169
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
PCI loans	336,109
Non-PCI loans	15,474,736	14,799,054
Commercial | Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-PCI loans	715,011	669,215
Commercial | Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-PCI loans	10,278,741	9,729,022
Commercial | Other commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-PCI loans	473,452	473,433
Commercial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-PCI loans	3,097,541	2,730,407
Commercial | Lease financing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-PCI loans	613,377	894,801
Commercial | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-PCI loans	296,614	302,176
Noncommercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
PCI loans	338,160
PCI Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
PCI loans	674,269	762,998
PCI Loans | Noncommercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current loans	299,579
Non-PCI Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	121,511	144,872
Current loans	23,742,657	22,688,955
Non-PCI loans	23,864,168	22,833,827
Non-PCI Loans | Commercial | Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	862	1,290
Current loans	714,149	667,925
Non-PCI loans	715,011	669,215
Non-PCI Loans | Commercial | Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	20,740	21,153
Current loans	10,258,001	9,707,869
Non-PCI loans	10,278,741	9,729,022
Non-PCI Loans | Commercial | Other commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	1,586	182
Current loans	471,866	473,251
Non-PCI loans	473,452	473,433
Non-PCI Loans | Commercial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	11,343	9,470
Current loans	3,086,198	2,720,937
Non-PCI loans	3,097,541	2,730,407
Non-PCI Loans | Commercial | Lease financing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	5,180	4,123
Current loans	608,197	890,678
Non-PCI loans	613,377	894,801
Non-PCI Loans | Commercial | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	59	327
Current loans	296,555	301,849
Non-PCI loans	296,614	302,176
Non-PCI Loans | Noncommercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current loans	8,307,691	7,926,446
Non-PCI loans	8,389,432	8,034,773
Non-PCI Loans | Noncommercial | Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	2,361	8,641
Current loans	248,343	239,648
Non-PCI loans	250,704	248,289
Non-PCI Loans | Noncommercial | Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	44,780	57,851
Current loans	3,936,065	3,465,935
Non-PCI loans	3,980,845	3,523,786
Non-PCI Loans | Noncommercial | Revolving mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	23,137	27,135
Current loans	2,581,818	2,674,390
Non-PCI loans	2,604,955	2,701,525
Non-PCI Loans | Noncommercial | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	11,463	14,700
Current loans	1,541,465	1,546,473
Non-PCI loans	1,552,928	1,561,173
90 Days or greater | PCI Loans | Noncommercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	22,268
90 Days or greater | Non-PCI Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	38,410	45,791
90 Days or greater | Non-PCI Loans | Commercial | Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	132	357
90 Days or greater | Non-PCI Loans | Commercial | Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	5,599	6,490
90 Days or greater | Non-PCI Loans | Commercial | Other commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	18	75
90 Days or greater | Non-PCI Loans | Commercial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	1,155	1,266
90 Days or greater | Non-PCI Loans | Commercial | Lease financing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	951	973
90 Days or greater | Non-PCI Loans | Commercial | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	0	133
90 Days or greater | Non-PCI Loans | Noncommercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	30,555	36,497
90 Days or greater | Non-PCI Loans | Noncommercial | Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	471	1,379
90 Days or greater | Non-PCI Loans | Noncommercial | Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	17,457	21,901
90 Days or greater | Non-PCI Loans | Noncommercial | Revolving mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	9,906	10,222
90 Days or greater | Non-PCI Loans | Noncommercial | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	2,721	2,995
60 to 89 Days past due | PCI Loans | Noncommercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	4,167
60 to 89 Days past due | Non-PCI Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	22,650	19,050
60 to 89 Days past due | Non-PCI Loans | Commercial | Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	264	442
60 to 89 Days past due | Non-PCI Loans | Commercial | Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	5,021	2,375
60 to 89 Days past due | Non-PCI Loans | Commercial | Other commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	0	0
60 to 89 Days past due | Non-PCI Loans | Commercial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	3,743	1,510
60 to 89 Days past due | Non-PCI Loans | Commercial | Lease financing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	1,167	167
60 to 89 Days past due | Non-PCI Loans | Commercial | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	17	6
60 to 89 Days past due | Non-PCI Loans | Noncommercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	12,438	14,550
60 to 89 Days past due | Non-PCI Loans | Noncommercial | Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	51	108
60 to 89 Days past due | Non-PCI Loans | Noncommercial | Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	6,291	8,064
60 to 89 Days past due | Non-PCI Loans | Noncommercial | Revolving mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	3,367	3,485
60 to 89 Days past due | Non-PCI Loans | Noncommercial | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	2,729	2,893
30 to 59 Days past due | PCI Loans | Noncommercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	12,146
30 to 59 Days past due | Non-PCI Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	60,451	80,031
30 to 59 Days past due | Non-PCI Loans | Commercial | Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	466	491
30 to 59 Days past due | Non-PCI Loans | Commercial | Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	10,120	12,288
30 to 59 Days past due | Non-PCI Loans | Commercial | Other commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	1,568	107
30 to 59 Days past due | Non-PCI Loans | Commercial | Commercial and industrial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	6,445	6,694
30 to 59 Days past due | Non-PCI Loans | Commercial | Lease financing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	3,062	2,983
30 to 59 Days past due | Non-PCI Loans | Commercial | Other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	42	188
30 to 59 Days past due | Non-PCI Loans | Noncommercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	38,748	57,280
30 to 59 Days past due | Non-PCI Loans | Noncommercial | Construction and land development
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	1,839	7,154
30 to 59 Days past due | Non-PCI Loans | Noncommercial | Mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	21,032	27,886
30 to 59 Days past due | Non-PCI Loans | Noncommercial | Revolving mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	9,864	13,428
30 to 59 Days past due | Non-PCI Loans | Noncommercial | Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past due loans	$ 6,013	$ 8,812

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Loans and Leases (Recorded Investment, By Class, In Loans And Leases On Nonaccrual Status And Loans And Leases Greater Than 90 Days Past Due And Still Accruing) (Details) - Non-PCI Loans - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccruing	$ 85,055	$ 92,534
Loans and leases greater than 90 days and accruing	3,179	2,978
Commercial | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccruing	420	1,040
Loans and leases greater than 90 days and accruing	0	0
Commercial | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccruing	18,457	22,625
Loans and leases greater than 90 days and accruing	839	397
Commercial | Other commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccruing	103	916
Loans and leases greater than 90 days and accruing	0	0
Commercial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccruing	3,168	2,884
Loans and leases greater than 90 days and accruing	319	428
Commercial | Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccruing	1,755	1,992
Loans and leases greater than 90 days and accruing	0	0
Commercial | Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccruing	77	164
Loans and leases greater than 90 days and accruing	0	0
Noncommercial | Construction and land development
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccruing	1,012	1,989
Loans and leases greater than 90 days and accruing	0	0
Noncommercial | Mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccruing	35,173	38,942
Loans and leases greater than 90 days and accruing	0	0
Noncommercial | Revolving mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccruing	22,500	19,990
Loans and leases greater than 90 days and accruing	0	0
Noncommercial | Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Nonaccruing	2,390	1,992
Loans and leases greater than 90 days and accruing	$ 2,021	$ 2,153

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Loans and Leases (Changes In Carrying Value Of Acquired Impaired Loans) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	May 01, 2018	Dec. 31, 2017	Jan. 13, 2017	Mar. 11, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Impaired Financing Receivable, Unpaid Principal Balance	$ 1,044,148	$ 1,199,358
Carrying Value of Acquired Impaired Loans [Roll Forward]
Beginning balance	762,998	809,169
Fair value of acquired loans					$ 15,555	$ 199,682
Accretion	32,188	39,798
Payments received and other changes, net	(136,472)	(153,786)
Ending balance	674,269	$ 894,863
Loans on the Cost Recovery Method
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans on cost recovery method	2,057			$ 1,100
Commercial
Carrying Value of Acquired Impaired Loans [Roll Forward]
Ending balance	336,109
Noncommercial
Carrying Value of Acquired Impaired Loans [Roll Forward]
Ending balance	338,160
HomeBancorp Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans acquired			$ 550,618
Carrying Value of Acquired Impaired Loans [Roll Forward]
Fair value of acquired loans			15,555
HomeBancorp Inc. | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans acquired			252,327
Carrying Value of Acquired Impaired Loans [Roll Forward]
Fair value of acquired loans			8,238
HomeBancorp Inc. | Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans acquired			298,291
Carrying Value of Acquired Impaired Loans [Roll Forward]
Fair value of acquired loans			7,317
HomeBancorp Inc. | Construction and land development | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans acquired			525
HomeBancorp Inc. | Mortgage | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans acquired			188,688
Carrying Value of Acquired Impaired Loans [Roll Forward]
Fair value of acquired loans			7,815
HomeBancorp Inc. | Mortgage | Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans acquired			296,273
Carrying Value of Acquired Impaired Loans [Roll Forward]
Fair value of acquired loans			7,317
HomeBancorp Inc. | Revolving mortgage | Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans acquired			51
HomeBancorp Inc. | Other commercial real estate | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans acquired			55,183
HomeBancorp Inc. | Commercial and industrial | Commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans acquired			7,931
Carrying Value of Acquired Impaired Loans [Roll Forward]
Fair value of acquired loans			423
HomeBancorp Inc. | Consumer | Noncommercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Fair value of loans acquired			$ 1,967
PCI Loans
Carrying Value of Acquired Impaired Loans [Roll Forward]
Beginning balance	762,998
Ending balance	674,269
Nonaccruing	$ 1,600			$ 600

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Loans and Leases (Changes In Carrying Amount Of Accretable Yield) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017	Dec. 31, 2016
Loans and Leases Receivable Disclosure [Abstract]
Accretable yield	$ 344,520	$ 350,319	$ 316,679	$ 335,074
Additions from acquisitions	4,142	44,120
Accretion	(32,188)	(39,798)
Reclassifications from nonaccretable difference	6,899	12,328
Changes in expected cash flows that do not affect nonaccretable difference	$ 48,988	$ (1,405)

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Loans and Leases Loans and Leases (Schedule of Contractually Required Payments Including Principal and Interest, Expected Cash Flows to be Collected and Fair Values) (Details) - USD ($) $ in Thousands	May 01, 2018	Jan. 13, 2017	Mar. 11, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
PCI loans and leases		$ 15,555	$ 199,682
HomeBancorp Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contractually required payments	$ 26,651
Cash flows expected to be collected	19,697
PCI loans and leases	$ 15,555

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Loans and Leases Loans and Leases (Recorded Fair Values of Purchased Non-Impaired Loans and Leases) (Details) - HomeBancorp Inc. $ in Thousands	May 01, 2018 USD ($)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Contractually required payments	$ 710,876
Cash flows not expected to be collected	9,845
Fair value of loans acquired	550,618
Commercial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Fair value of loans acquired	252,327
Noncommercial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Fair value of loans acquired	298,291
Mortgage | Commercial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Fair value of loans acquired	188,688
Mortgage | Noncommercial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Fair value of loans acquired	296,273
Other commercial real estate | Commercial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Fair value of loans acquired	55,183
Commercial and industrial | Commercial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Fair value of loans acquired	7,931
Revolving mortgage | Noncommercial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Fair value of loans acquired	51
Consumer | Noncommercial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Fair value of loans acquired	1,967
Construction and land development | Commercial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Fair value of loans acquired	$ 525

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Allowance for Loan and Lease Losses (Summary of Activity In Allowance for Loan and Lease Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Dec. 31, 2017	Jun. 30, 2017	Dec. 31, 2016
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Net loans and leases					$ 24,313,572	$ 23,374,932
Loan and Leases Acquired with Deteriorated Credit Quality [Abstract]
Loans and leases acquired with deteriorated credit quality					674,269	762,998	$ 894,863	$ 809,169
Allowance for loan and lease losses					224,865	221,893
Commercial
Loan and Leases Acquired with Deteriorated Credit Quality [Abstract]
Loans and leases acquired with deteriorated credit quality					336,109
Noncommercial
Loan and Leases Acquired with Deteriorated Credit Quality [Abstract]
Loans and leases acquired with deteriorated credit quality					338,160
Non-PCI Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Impaired Financing Receivable, Related Allowance					10,001	9,728
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 210,820	$ 210,019	$ 211,867	$ 205,026
Provision for Loan, Lease, and Other Losses	8,277	9,752	13,528	20,828
Charge-offs	(9,678)	(9,423)	(19,291)	(18,194)
Recoveries	3,023	4,954	6,338	7,642
Ending balance	212,442	215,302	212,442	215,302
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Loans and leases individually evaluated for impairment					155,228	155,646
Loans and leases collectively evaluated for impairment					23,708,940	22,678,181
Net loans and leases					23,864,168	22,833,827
ALLL for loans and leases individually evaluated for impairment					10,001	9,728
ALLL for loans and leases collectively evaluated for impairment					202,441	202,139
Total allowance for loan and lease losses	210,820	210,019	211,867	205,026	212,442	211,867	215,302	205,026
Non-PCI Loans | Commercial | Construction and land development
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	26,718	31,391	24,470	28,877
Provision for Loan, Lease, and Other Losses	(3,139)	2,372	(914)	4,908
Charge-offs	(8)	(413)	(8)	(490)
Recoveries	93	209	116	264
Ending balance	23,664	33,559	23,664	33,559
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Loans and leases individually evaluated for impairment					2,098	788
Loans and leases collectively evaluated for impairment					712,913	668,427
Net loans and leases					715,011	669,215
ALLL for loans and leases individually evaluated for impairment					274	185
ALLL for loans and leases collectively evaluated for impairment					23,390	24,285
Total allowance for loan and lease losses	26,718	31,391	24,470	28,877	23,664	24,470	33,559	28,877
Non-PCI Loans | Commercial | Mortgage
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	43,833	48,611	45,005	48,278
Provision for Loan, Lease, and Other Losses	866	639	(499)	645
Charge-offs	(459)	(235)	(505)	(272)
Recoveries	225	731	464	1,095
Ending balance	44,465	49,746	44,465	49,746
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Loans and leases individually evaluated for impairment					66,172	73,655
Loans and leases collectively evaluated for impairment					10,212,569	9,655,367
Net loans and leases					10,278,741	9,729,022
ALLL for loans and leases individually evaluated for impairment					3,325	3,648
ALLL for loans and leases collectively evaluated for impairment					41,140	41,357
Total allowance for loan and lease losses	43,833	48,611	45,005	48,278	44,465	45,005	49,746	48,278
Non-PCI Loans | Commercial | Other commercial real estate
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	3,423	3,572	4,571	3,269
Provision for Loan, Lease, and Other Losses	468	33	(825)	337
Charge-offs	(69)	0	(69)	(5)
Recoveries	1	7	146	11
Ending balance	3,823	3,612	3,823	3,612
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Loans and leases individually evaluated for impairment					1,077	1,857
Loans and leases collectively evaluated for impairment					472,375	471,576
Net loans and leases					473,452	473,433
ALLL for loans and leases individually evaluated for impairment					65	209
ALLL for loans and leases collectively evaluated for impairment					3,758	4,362
Total allowance for loan and lease losses	3,423	3,572	4,571	3,269	3,823	4,571	3,612	3,269
Non-PCI Loans | Commercial | Commercial and industrial
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	53,016	50,829	53,697	50,225
Provision for Loan, Lease, and Other Losses	5,670	968	5,245	4,560
Charge-offs	(1,994)	(3,121)	(3,469)	(6,374)
Recoveries	638	2,392	1,857	2,657
Ending balance	57,330	51,068	57,330	51,068
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Loans and leases individually evaluated for impairment					7,652	7,974
Loans and leases collectively evaluated for impairment					3,089,889	2,722,433
Net loans and leases					3,097,541	2,730,407
ALLL for loans and leases individually evaluated for impairment					985	665
ALLL for loans and leases collectively evaluated for impairment					56,345	53,032
Total allowance for loan and lease losses	53,016	50,829	53,697	50,225	57,330	53,697	51,068	50,225
Non-PCI Loans | Commercial | Lease financing
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	6,301	6,315	6,127	5,907
Provision for Loan, Lease, and Other Losses	(1,879)	186	(892)	761
Charge-offs	(445)	(97)	(1,299)	(270)
Recoveries	4	0	45	6
Ending balance	3,981	6,404	3,981	6,404
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Loans and leases individually evaluated for impairment					1,176	1,914
Loans and leases collectively evaluated for impairment					612,201	892,887
Net loans and leases					613,377	894,801
ALLL for loans and leases individually evaluated for impairment					107	397
ALLL for loans and leases collectively evaluated for impairment					3,874	5,730
Total allowance for loan and lease losses	6,301	6,315	6,127	5,907	3,981	6,127	6,404	5,907
Non-PCI Loans | Commercial | Other
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	4,842	3,534	4,689	3,127
Provision for Loan, Lease, and Other Losses	(114)	(214)	0	241
Charge-offs	(38)	(64)	(41)	(187)
Recoveries	1	46	43	121
Ending balance	4,691	3,302	4,691	3,302
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Loans and leases individually evaluated for impairment					97	521
Loans and leases collectively evaluated for impairment					296,517	301,655
Net loans and leases					296,614	302,176
ALLL for loans and leases individually evaluated for impairment					20	0
ALLL for loans and leases collectively evaluated for impairment					4,671	4,689
Total allowance for loan and lease losses	4,842	3,534	4,689	3,127	4,691	4,689	3,302	3,127
Non-PCI Loans | Noncommercial | Construction and land development
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	3,913	1,513	3,962	1,596
Provision for Loan, Lease, and Other Losses	50	(10)	157	(93)
Charge-offs	(37)	0	(219)	0
Recoveries	101	0	127	0
Ending balance	4,027	1,503	4,027	1,503
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Loans and leases individually evaluated for impairment					2,911	4,551
Loans and leases collectively evaluated for impairment					247,793	243,738
Net loans and leases					250,704	248,289
ALLL for loans and leases individually evaluated for impairment					66	68
ALLL for loans and leases collectively evaluated for impairment					3,961	3,894
Total allowance for loan and lease losses	3,913	1,513	3,962	1,596	4,027	3,962	1,503	1,596
Non-PCI Loans | Noncommercial | Mortgage
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	16,489	15,835	15,706	14,447
Provision for Loan, Lease, and Other Losses	1,492	155	3,004	1,506
Charge-offs	(289)	(222)	(1,095)	(472)
Recoveries	110	75	187	362
Ending balance	17,802	15,843	17,802	15,843
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Loans and leases individually evaluated for impairment					43,953	37,842
Loans and leases collectively evaluated for impairment					3,936,892	3,485,944
Net loans and leases					3,980,845	3,523,786
ALLL for loans and leases individually evaluated for impairment					3,343	2,733
ALLL for loans and leases collectively evaluated for impairment					14,459	12,973
Total allowance for loan and lease losses	16,489	15,835	15,706	14,447	17,802	15,706	15,843	14,447
Non-PCI Loans | Noncommercial | Revolving mortgage
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	22,104	21,290	22,436	21,013
Provision for Loan, Lease, and Other Losses	289	1,054	755	1,604
Charge-offs	(1,027)	(280)	(2,019)	(1,105)
Recoveries	520	401	714	953
Ending balance	21,886	22,465	21,886	22,465
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Loans and leases individually evaluated for impairment					27,407	23,770
Loans and leases collectively evaluated for impairment					2,577,548	2,677,755
Net loans and leases					2,604,955	2,701,525
ALLL for loans and leases individually evaluated for impairment					1,112	1,085
ALLL for loans and leases collectively evaluated for impairment					20,774	21,351
Total allowance for loan and lease losses	22,104	21,290	22,436	21,013	21,886	22,436	22,465	21,013
Non-PCI Loans | Noncommercial | Consumer
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	30,181	27,129	31,204	28,287
Provision for Loan, Lease, and Other Losses	4,574	4,569	7,497	6,359
Charge-offs	(5,312)	(4,991)	(10,567)	(9,019)
Recoveries	1,330	1,093	2,639	2,173
Ending balance	30,773	27,800	30,773	27,800
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Loans and leases individually evaluated for impairment					2,685	2,774
Loans and leases collectively evaluated for impairment					1,550,243	1,558,399
Net loans and leases					1,552,928	1,561,173
ALLL for loans and leases individually evaluated for impairment					704	738
ALLL for loans and leases collectively evaluated for impairment					30,069	30,466
Total allowance for loan and lease losses	30,181	27,129	31,204	28,287	30,773	31,204	27,800	28,287
PCI Loans
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	12,296	10,924	10,026	13,769
Provision for Loan, Lease, and Other Losses	161	2,572	2,515	(273)
Charge-offs	(34)	0	(118)	0
Recoveries	0	0	0	0
Ending balance	12,423	13,496	12,423	13,496
Allowance for Loans and Leases Evaluated for Impairment [Abstract]
Total allowance for loan and lease losses	$ 12,296	$ 10,924	$ 10,026	$ 13,769	12,423	10,026	$ 13,496	$ 13,769
Loan and Leases Acquired with Deteriorated Credit Quality [Abstract]
Loans and leases acquired with deteriorated credit quality					$ 674,269	$ 762,998

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Allowance for Loan and Lease Losses (Allocation of Allowance for Loan and Lease Losses) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	$ 1,044,148	$ 1,199,358	$ 1,044,148	$ 1,199,358
Allowance for loan and lease losses	224,865		224,865		$ 221,893
Loans and Leases Receivable, Net Amount	24,313,572		24,313,572		23,374,932
Non-PCI impaired loans less than $500,000 collectively evaluated	44,100		44,100		49,100
PCI Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Acquired loans which have adverse change in expected cash flows	160,800		160,800		279,800
Provision for Loan, Lease, and Other Losses	161	2,572	2,515	(273)
Financing Receivable, Allowance for Credit Losses, Write-downs	34	0	118	0
Recoveries	0	0	0	0
Non-PCI Loans
Financing Receivable, Allowance for Credit Losses [Line Items]
Total impaired noncovered loans and leases	155,228		155,228		155,646
Unpaid principal balance	174,460		174,460		170,034
Impaired Financing Receivable, Related Allowance	10,001		10,001		9,728
ALLL for loans and leases individually evaluated for impairment	10,001		10,001		9,728
Impaired Financing Receivable, with Related Allowance, Recorded Investment	83,622		83,622		77,199
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	71,606		71,606		78,447
Financing Receivable, Individually Evaluated for Impairment	155,228		155,228		155,646
Average balance	155,051	139,608	155,038	138,144
Interest income recognized	1,370	1,179	2,742	2,327
Provision for Loan, Lease, and Other Losses	8,277	9,752	13,528	20,828
Financing Receivable, Allowance for Credit Losses, Write-downs	9,678	9,423	19,291	18,194
Recoveries	3,023	4,954	6,338	7,642
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	202,441		202,441		202,139
Financing Receivable, Collectively Evaluated for Impairment	23,708,940		23,708,940		22,678,181
Loans and Leases Receivable, Net Amount	23,864,168		23,864,168		22,833,827
Non-PCI Loans | Commercial | Construction and land development
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	2,431		2,431		1,110
ALLL for loans and leases individually evaluated for impairment	274		274		185
Impaired Financing Receivable, with Related Allowance, Recorded Investment	2,098		2,098		788
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	0		0		0
Financing Receivable, Individually Evaluated for Impairment	2,098		2,098		788
Average balance	1,485	970	1,320	1,013
Interest income recognized	17	11	28	23
Provision for Loan, Lease, and Other Losses	(3,139)	2,372	(914)	4,908
Financing Receivable, Allowance for Credit Losses, Write-downs	8	413	8	490
Recoveries	93	209	116	264
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	23,390		23,390		24,285
Financing Receivable, Collectively Evaluated for Impairment	712,913		712,913		668,427
Loans and Leases Receivable, Net Amount	715,011		715,011		669,215
Non-PCI Loans | Commercial | Mortgage
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	72,467		72,467		78,936
ALLL for loans and leases individually evaluated for impairment	3,325		3,325		3,648
Impaired Financing Receivable, with Related Allowance, Recorded Investment	35,934		35,934		39,135
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	30,238		30,238		34,520
Financing Receivable, Individually Evaluated for Impairment	66,172		66,172		73,655
Average balance	68,113	74,121	70,190	74,715
Interest income recognized	659	651	1,370	1,293
Provision for Loan, Lease, and Other Losses	866	639	(499)	645
Financing Receivable, Allowance for Credit Losses, Write-downs	459	235	505	272
Recoveries	225	731	464	1,095
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	41,140		41,140		41,357
Financing Receivable, Collectively Evaluated for Impairment	10,212,569		10,212,569		9,655,367
Loans and Leases Receivable, Net Amount	10,278,741		10,278,741		9,729,022
Non-PCI Loans | Commercial | Other commercial real estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	1,264		1,264		2,267
ALLL for loans and leases individually evaluated for impairment	65		65		209
Impaired Financing Receivable, with Related Allowance, Recorded Investment	375		375		1,351
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	702		702		506
Financing Receivable, Individually Evaluated for Impairment	1,077		1,077		1,857
Average balance	1,345	1,525	1,529	1,555
Interest income recognized	12	9	23	17
Provision for Loan, Lease, and Other Losses	468	33	(825)	337
Financing Receivable, Allowance for Credit Losses, Write-downs	69	0	69	5
Recoveries	1	7	146	11
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	3,758		3,758		4,362
Financing Receivable, Collectively Evaluated for Impairment	472,375		472,375		471,576
Loans and Leases Receivable, Net Amount	473,452		473,452		473,433
Non-PCI Loans | Commercial | Commercial and industrial
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	11,684		11,684		10,475
ALLL for loans and leases individually evaluated for impairment	985		985		665
Impaired Financing Receivable, with Related Allowance, Recorded Investment	6,262		6,262		6,326
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	1,390		1,390		1,648
Financing Receivable, Individually Evaluated for Impairment	7,652		7,652		7,974
Average balance	7,585	10,159	7,554	10,844
Interest income recognized	76	98	152	202
Provision for Loan, Lease, and Other Losses	5,670	968	5,245	4,560
Financing Receivable, Allowance for Credit Losses, Write-downs	1,994	3,121	3,469	6,374
Recoveries	638	2,392	1,857	2,657
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	56,345		56,345		53,032
Financing Receivable, Collectively Evaluated for Impairment	3,089,889		3,089,889		2,722,433
Loans and Leases Receivable, Net Amount	3,097,541		3,097,541		2,730,407
Non-PCI Loans | Commercial | Lease financing
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	2,808		2,808		2,571
ALLL for loans and leases individually evaluated for impairment	107		107		397
Impaired Financing Receivable, with Related Allowance, Recorded Investment	789		789		1,890
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	387		387		24
Financing Receivable, Individually Evaluated for Impairment	1,176		1,176		1,914
Average balance	1,842	1,911	2,040	1,740
Interest income recognized	14	14	25	28
Provision for Loan, Lease, and Other Losses	(1,879)	186	(892)	761
Financing Receivable, Allowance for Credit Losses, Write-downs	445	97	1,299	270
Recoveries	4	0	45	6
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	3,874		3,874		5,730
Financing Receivable, Collectively Evaluated for Impairment	612,201		612,201		892,887
Loans and Leases Receivable, Net Amount	613,377		613,377		894,801
Non-PCI Loans | Commercial | Other
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	315		315		521
ALLL for loans and leases individually evaluated for impairment	20		20		0
Impaired Financing Receivable, with Related Allowance, Recorded Investment	97		97		0
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	0		0		521
Financing Receivable, Individually Evaluated for Impairment	97		97		521
Average balance	67	434	34	315
Interest income recognized	0	5	0	7
Provision for Loan, Lease, and Other Losses	(114)	(214)	0	241
Financing Receivable, Allowance for Credit Losses, Write-downs	38	64	41	187
Recoveries	1	46	43	121
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	4,671		4,671		4,689
Financing Receivable, Collectively Evaluated for Impairment	296,517		296,517		301,655
Loans and Leases Receivable, Net Amount	296,614		296,614		302,176
Non-PCI Loans | Noncommercial | Construction and land development
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	3,633		3,633		5,224
ALLL for loans and leases individually evaluated for impairment	66		66		68
Impaired Financing Receivable, with Related Allowance, Recorded Investment	544		544		592
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	2,367		2,367		3,959
Financing Receivable, Individually Evaluated for Impairment	2,911		2,911		4,551
Average balance	3,526	3,185	3,815	2,895
Interest income recognized	44	33	92	66
Provision for Loan, Lease, and Other Losses	50	(10)	157	(93)
Financing Receivable, Allowance for Credit Losses, Write-downs	37	0	219	0
Recoveries	101	0	127	0
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	3,961		3,961		3,894
Financing Receivable, Collectively Evaluated for Impairment	247,793		247,793		243,738
Loans and Leases Receivable, Net Amount	250,704		250,704		248,289
Non-PCI Loans | Noncommercial | Mortgage
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	46,684		46,684		39,946
ALLL for loans and leases individually evaluated for impairment	3,343		3,343		2,733
Impaired Financing Receivable, with Related Allowance, Recorded Investment	25,529		25,529		19,135
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	18,424		18,424		18,707
Financing Receivable, Individually Evaluated for Impairment	43,953		43,953		37,842
Average balance	42,046	36,767	40,385	34,864
Interest income recognized	298	272	573	525
Provision for Loan, Lease, and Other Losses	1,492	155	3,004	1,506
Financing Receivable, Allowance for Credit Losses, Write-downs	289	222	1,095	472
Recoveries	110	75	187	362
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	14,459		14,459		12,973
Financing Receivable, Collectively Evaluated for Impairment	3,936,892		3,936,892		3,485,944
Loans and Leases Receivable, Net Amount	3,980,845		3,980,845		3,523,786
Non-PCI Loans | Noncommercial | Revolving mortgage
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	30,170		30,170		25,941
ALLL for loans and leases individually evaluated for impairment	1,112		1,112		1,085
Impaired Financing Receivable, with Related Allowance, Recorded Investment	10,217		10,217		5,875
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	17,190		17,190		17,895
Financing Receivable, Individually Evaluated for Impairment	27,407		27,407		23,770
Average balance	26,388	8,484	25,590	8,227
Interest income recognized	222	62	423	119
Provision for Loan, Lease, and Other Losses	289	1,054	755	1,604
Financing Receivable, Allowance for Credit Losses, Write-downs	1,027	280	2,019	1,105
Recoveries	520	401	714	953
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	20,774		20,774		21,351
Financing Receivable, Collectively Evaluated for Impairment	2,577,548		2,577,548		2,677,755
Loans and Leases Receivable, Net Amount	2,604,955		2,604,955		2,701,525
Non-PCI Loans | Noncommercial | Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Unpaid principal balance	3,004		3,004		3,043
ALLL for loans and leases individually evaluated for impairment	704		704		738
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,777		1,777		2,107
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	908		908		667
Financing Receivable, Individually Evaluated for Impairment	2,685		2,685		2,774
Average balance	2,654	2,052	2,581	1,976
Interest income recognized	28	24	56	47
Provision for Loan, Lease, and Other Losses	4,574	4,569	7,497	6,359
Financing Receivable, Allowance for Credit Losses, Write-downs	5,312	4,991	10,567	9,019
Recoveries	1,330	$ 1,093	2,639	$ 2,173
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment	30,069		30,069		30,466
Financing Receivable, Collectively Evaluated for Impairment	1,550,243		1,550,243		1,558,399
Loans and Leases Receivable, Net Amount	$ 1,552,928		$ 1,552,928		$ 1,561,173

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Allowance for Loan and Lease Losses (Troubled Debt Restructuring) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($) loans	Jun. 30, 2017 USD ($) loans	Jun. 30, 2018 USD ($) loans	Jun. 30, 2017 USD ($) loans	Dec. 31, 2017 USD ($)
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | loans	101	129	249	280
Financing Receivable, Modifications, Recorded Investment	$ 161,824		$ 161,824		$ 164,561
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 13,087	$ 7,850	$ 23,947	$ 18,228
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loans	66	58	129	93
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 4,354	$ 3,779	$ 9,182	$ 6,686
Non-PCI Loans
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	143,025		143,025		146,126
PCI Loans
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	18,799		18,799		18,435
Commercial
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	81,474		81,474		95,392
Commercial | Construction and land development
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	2,278		2,278		4,572
Commercial | Mortgage
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	69,181		69,181		78,221
Commercial | Other commercial real estate
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	1,078		1,078		1,800
Commercial | Commercial and industrial
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	7,661		7,661		8,508
Commercial | Lease financing
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	1,106		1,106		1,770
Commercial | Other
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	170		170		521
Noncommercial
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	80,350		80,350		69,169
Noncommercial | Construction and land development
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	2,911		2,911		0
Noncommercial | Mortgage
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	48,224		48,224		43,542
Noncommercial | Revolving mortgage
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	26,530		26,530		22,853
Noncommercial | Consumer and Other
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	2,685		2,685		2,774
Accruing
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	132,310		132,310		130,391
Accruing | Non-PCI Loans
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	113,764		113,764		112,228
Accruing | PCI Loans
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	18,546		18,546		18,163
Accruing | Commercial
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	69,360		69,360		76,300
Accruing | Commercial | Construction and land development
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	2,050		2,050		4,089
Accruing | Commercial | Mortgage
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	58,877		58,877		62,358
Accruing | Commercial | Other commercial real estate
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	1,039		1,039		1,012
Accruing | Commercial | Commercial and industrial
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	6,673		6,673		7,598
Accruing | Commercial | Lease financing
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	677		677		722
Accruing | Commercial | Other
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	44		44		521
Accruing | Noncommercial
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	62,950		62,950		54,091
Accruing | Noncommercial | Construction and land development
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	2,821		2,821		0
Accruing | Noncommercial | Mortgage
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	38,266		38,266		34,067
Accruing | Noncommercial | Revolving mortgage
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	19,752		19,752		17,673
Accruing | Noncommercial | Consumer and Other
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	2,111		2,111		2,351
Nonaccruing
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	29,514		29,514		34,170
Nonaccruing | Non-PCI Loans
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	29,261		29,261		33,898
Nonaccruing | PCI Loans
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	253		253		272
Nonaccruing | Commercial
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	12,114		12,114		19,092
Nonaccruing | Commercial | Construction and land development
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	228		228		483
Nonaccruing | Commercial | Mortgage
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	10,304		10,304		15,863
Nonaccruing | Commercial | Other commercial real estate
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	39		39		788
Nonaccruing | Commercial | Commercial and industrial
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	988		988		910
Nonaccruing | Commercial | Lease financing
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	429		429		1,048
Nonaccruing | Commercial | Other
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	126		126		0
Nonaccruing | Noncommercial
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	17,400		17,400		15,078
Nonaccruing | Noncommercial | Construction and land development
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	90		90		0
Nonaccruing | Noncommercial | Mortgage
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	9,958		9,958		9,475
Nonaccruing | Noncommercial | Revolving mortgage
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	6,778		6,778		5,180
Nonaccruing | Noncommercial | Consumer and Other
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Recorded Investment	$ 574		$ 574		$ 423
Interest only period provided
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | loans	1	3	2	3
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 154	$ 571	$ 821	$ 571
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loans	2	1	2	1
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 821	$ 332	$ 821	$ 332
Loan term extension
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | loans	10	13	17	21
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 936	$ 1,397	$ 1,658	$ 2,070
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loans	7	1	8	1
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 341	$ 32	$ 638	$ 32
Below market interest rate
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | loans	53	73	139	159
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 9,525	$ 4,440	$ 15,873	$ 12,582
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loans	33	32	64	49
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 1,702	$ 2,800	$ 3,385	$ 4,231
Discharged from bankruptcy
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | loans	37	40	91	97
Financing Receivable, Modifications, Post-Modification Recorded Investment	$ 2,472	$ 1,442	$ 5,595	$ 3,005
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loans	24	24	55	42
Financing Receivable, Modifications, Subsequent Default, Recorded Investment	$ 1,490	$ 615	$ 4,338	$ 2,091

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Allowance for Loan and Lease Losses (Note Restructurings During Period) (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018 USD ($) loans	Jun. 30, 2017 USD ($) loans	Jun. 30, 2018 USD ($) loans	Jun. 30, 2017 USD ($) loans
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | loans	101	129	249	280
Financing Receivable, Modifications, Post-Modification Recorded Investment | $	$ 13,087	$ 7,850	$ 23,947	$ 18,228
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loans	66	58	129	93
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $	$ 4,354	$ 3,779	$ 9,182	$ 6,686
Loan term extension
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | loans	10	13	17	21
Financing Receivable, Modifications, Post-Modification Recorded Investment | $	$ 936	$ 1,397	$ 1,658	$ 2,070
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loans	7	1	8	1
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $	$ 341	$ 32	$ 638	$ 32
Interest only period provided
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | loans	1	3	2	3
Financing Receivable, Modifications, Post-Modification Recorded Investment | $	$ 154	$ 571	$ 821	$ 571
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loans	2	1	2	1
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $	$ 821	$ 332	$ 821	$ 332
Below market interest rate
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | loans	53	73	139	159
Financing Receivable, Modifications, Post-Modification Recorded Investment | $	$ 9,525	$ 4,440	$ 15,873	$ 12,582
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loans	33	32	64	49
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $	$ 1,702	$ 2,800	$ 3,385	$ 4,231
Discharged from bankruptcy
Financing Receivable, Modifications [Line Items]
Financing Receivable, Modifications, Number of Contracts | loans	37	40	91	97
Financing Receivable, Modifications, Post-Modification Recorded Investment | $	$ 2,472	$ 1,442	$ 5,595	$ 3,005
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | loans	24	24	55	42
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $	$ 1,490	$ 615	$ 4,338	$ 2,091

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Other Real Estate Owned (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Real Estate Properties [Line Items]
Mortgage Loans in Process of Foreclosure, Amount	$ 25,300		$ 26,900
Total
Beginning balance	51,097	$ 61,231
Additions	11,868	21,891
Sales	(15,769)	(20,236)
Write-downs	(2,698)	(2,160)
Ending balance	46,633	60,781
Mortgage
Total
Beginning balance	19,800
Ending balance	15,100
HomeBancorp Inc.
Total
Additions	$ 2,135
Guaranty Bank
Total
Additions		$ 55

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FDIC Shared-Loss Receivable FDIC Shared-Loss Payable (Changes in Payable to FDIC) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
FDIC Shared-Payable [Abstract]
FDIC shared-loss payable	$ 103,487	$ 99,126	$ 103,487	$ 99,126	$ 102,466	$ 101,342	$ 98,013	$ 97,008
Accretion expense	1,001	963	1,993	1,917
Adjustments related to changes in assumptions	$ 20	$ 150	$ 152	$ 201

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FDIC Shared-Loss Receivable (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
FDIC Shared-Loss Receivable [Abstract]
Net payment to the FDIC for termination of shared-loss agreements			$ 0	$ 285
Loss on termination of FDIC share-loss agreements			0	(45)
FDIC shared-loss payable	$ 103,487	$ 99,126	103,487	99,126	$ 102,466	$ 101,342	$ 98,013	$ 97,008
Net Impact from FDIC shared-loss termination	0	$ 0	0	$ (45)
Loans and Leases Receivable, Gross, Carrying Amount, Covered	$ 62,100		$ 62,100

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Mortgage Servicing Rights (MSR Carrying Value) ((Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Servicing Asset at Amortized Cost [Line Items]
Mortgage servicing rights	$ 21,657	$ 20,524	$ 21,657	$ 20,524	$ 21,659	$ 21,945	$ 20,771	$ 20,415
Amortization of Mortgage Servicing Rights (MSRs)	(1,432)	(1,370)	(2,918)	(2,720)
Servicing Asset at Amortized Cost, Additions	1,430	1,123	2,630	2,825
Valuation allowance (provision) reversal	$ 0	$ 0	$ 0	$ 4

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Mortgage Servicing Rights (Valuation allowance) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Valuation Allowance for Impairment of Recognized Servicing Assets [Line Items]
Valuation allowance provision (reversal)	$ 0	$ 0	$ 0	$ (4)

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Mortgage Servicing Rights (Economic Assumptions) (Details) - $ / loans	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Servicing Asset Key Economic Assumptions [Line Items]
Weighted average constant prepayment rate	8.43%	10.93%
Weighted average cost to service a loan	72.79	64.03
Conventional fixed loans
Servicing Asset Key Economic Assumptions [Line Items]
Discount rate	9.86%	9.41%
All loans excluding conventional fixed loans
Servicing Asset Key Economic Assumptions [Line Items]
Discount rate	10.86%	10.41%

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Mortgage Servicing Rights (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Mortgage Servicing Rights [Abstract]
Residential Mortgage Loans Serviced	$ 2,870,000		$ 2,870,000		$ 2,810,000
Contractually Specified Servicing Fee, Late Fee, and Ancillary Fee Earned in Exchange for Servicing Financial Asset	1,900	$ 1,900	3,800	$ 3,600
Amortization of Mortgage Servicing Rights (MSRs)	1,432	1,370	2,918	2,720
Valuation allowance provision (reversal)	$ 0	$ 0	$ 0	$ (4)

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Repurchase Agreements (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase, Fair Value of Collateral	$ 511,800	$ 684,200
U. S. Treasury
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase		586,171
Overnight and continuous | U. S. Treasury
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase	$ 499,723	556,171
30 - 90 days | U. S. Treasury
Assets Sold under Agreements to Repurchase [Line Items]
Securities Sold under Agreements to Repurchase		$ 30,000

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Estimated Fair Values (Estimated Fair Values For Certain Financial Assets And Financial Liabilities) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	$ 260,525		$ 336,150
Overnight investments	1,223,311		1,387,927
Investment securities available for sale	4,783,507		7,180,180
Investment securities held to maturity	2,299,774		76
Marketable equity securities	107,264		0
Loans held for sale	58,961		51,179
Loans and Leases Receivable, Net Amount	24,313,572		23,374,932
Income earned not collected	99,567		95,249
Mortgage servicing rights	21,657	$ 21,659	21,945	$ 20,524	$ 20,771	$ 20,415
Deposits	30,408,884		29,266,275
FDIC shared-loss payable	103,487	$ 102,466	101,342	$ 99,126	$ 98,013	$ 97,008
Carrying Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	260,525		336,150
Overnight investments	1,223,311		1,387,927
Investment securities available for sale	4,783,507		7,180,180
Investment securities held to maturity	2,299,774		76
Marketable equity securities	107,264		0
Loans held for sale	58,961		51,179
Loans and Leases Receivable, Net Amount	24,313,572		23,374,932
Income earned not collected	99,567		95,249
Stock issued by Federal Home Loan Bank	22,658		52,685
Mortgage servicing rights	21,657		21,945
Deposits	30,408,884		29,266,275
Short-term borrowings	613,993		693,807
Long-term obligations	241,360		870,240
FDIC shared-loss payable	103,487		101,342
Accrued interest payable	1,909		3,952
Fair Value
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash and due from banks	260,525		336,150
Overnight investments	1,223,311		1,387,927
Investment securities available for sale	4,783,507		7,180,180
Investment securities held to maturity	2,302,093		81
Marketable equity securities	107,264		0
Loans held for sale	58,961		51,179
Loans and Leases Receivable, Net Amount	23,704,523		22,257,803
Income earned not collected	99,567		95,249
Stock issued by Federal Home Loan Bank	22,658		52,685
Mortgage servicing rights	28,668		26,170
Deposits	30,362,605		29,230,768
Short-term borrowings	613,993		693,807
Long-term obligations	250,823		852,112
FDIC shared-loss payable	103,966		102,684
Accrued interest payable	$ 1,909		$ 3,952

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Estimated Fair Values (Assets And Liabilities Carried At Fair Value On A Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 4,783,507	$ 7,180,180
Marketable equity securities	107,264	0
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	4,783,507
Loans held for sale	58,961	51,179
Fair Value, Measurements, Recurring | Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	19,341
Loans held for sale	0	0
Fair Value, Measurements, Recurring | Quoted Prices for Similar Assets and Liabilities (Level 2 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	4,669,074
Loans held for sale	58,961	51,179
Fair Value, Measurements, Recurring | Significant Unobservable Inputs (Level 3 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	114,433	0
Loans held for sale	0	0
Fair Value, Measurements, Recurring | U.S. Treasury
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	1,503,974	1,657,864
Fair Value, Measurements, Recurring | U.S. Treasury | Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring | U.S. Treasury | Quoted Prices for Similar Assets and Liabilities (Level 2 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	1,503,974	1,657,864
Fair Value, Measurements, Recurring | U.S. Treasury | Significant Unobservable Inputs (Level 3 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring | Government Agency
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	131,035	8,670
Fair Value, Measurements, Recurring | Government Agency | Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring | Government Agency | Quoted Prices for Similar Assets and Liabilities (Level 2 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	131,035	8,670
Fair Value, Measurements, Recurring | Government Agency | Significant Unobservable Inputs (Level 3 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring | Mortgage Backed Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	3,034,065	5,340,756
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Quoted Prices for Similar Assets and Liabilities (Level 2 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	3,034,065	5,340,756
Fair Value, Measurements, Recurring | Mortgage Backed Securities | Significant Unobservable Inputs (Level 3 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	108,790	59,963
Fair Value, Measurements, Recurring | Corporate Bonds | Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring | Corporate Bonds | Quoted Prices for Similar Assets and Liabilities (Level 2 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	59,963
Fair Value, Measurements, Recurring | Corporate Bonds | Significant Unobservable Inputs (Level 3 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	108,790	0
Fair Value, Measurements, Recurring | Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	5,643	7,719
Fair Value, Measurements, Recurring | Other | Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	0
Fair Value, Measurements, Recurring | Other | Quoted Prices for Similar Assets and Liabilities (Level 2 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	0	7,719
Fair Value, Measurements, Recurring | Other | Significant Unobservable Inputs (Level 3 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 5,643	$ 0

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Estimated Fair Values (Assets and Liabilities Carried at Fair Value on a Recurring Basis Significant Unobservable Inputs) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Dec. 31, 2017
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Investment securities available for sale	$ 4,783,507	$ 4,783,507	$ 7,180,180
Corporate Bonds
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	59,653	0
Transfers in		59,653
Amounts included in net income	48	48
Unrealized net (losses) gains included in other comprehensive income	(97)	(97)
Purchases	51,591	51,591
Sales	(2,405)	(2,405)
Ending balance	108,790	108,790
Other
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance		0
Transfers in		5,618
Amounts included in net income		7
Unrealized net (losses) gains included in other comprehensive income		18
Purchases		0
Sales		0
Ending balance	$ 5,643	$ 5,643

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Estimated Fair Values (Assets And Liabilities Carried At Fair Value On A Nonrecurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate remeasured during current year	$ 46,633		$ 51,097	$ 60,781		$ 61,231
Mortgage servicing rights	21,657	$ 21,659	21,945	$ 20,524	$ 20,771	$ 20,415
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	74,301		72,539
Other real estate remeasured during current year	21,105		40,167
Fair Value, Measurements, Nonrecurring | Quoted Prices in Active Markets for Identical Assets and Liabilities (Level 1 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0		0
Other real estate remeasured during current year	0		0
Fair Value, Measurements, Nonrecurring | Quoted Prices for Similar Assets and Liabilities (Level 2 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	0		0
Other real estate remeasured during current year	0		0
Fair Value, Measurements, Nonrecurring | Significant Unobservable Inputs (Level 3 Inputs)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans	74,301		72,539
Other real estate remeasured during current year	$ 21,105		$ 40,167

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Estimated Fair Values (Fair Value Option) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Fair Value, Option, Quantitative Disclosures [Line Items]
Gains (Losses) from fair value changes on originated loans held for sale	$ 700	$ 291	$ 245	$ 3,452
Loans Held For Sale
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair value of originated loans held for sale	58,961		58,961		$ 51,179
Aggregate unpaid principle balance of originated loans held for sale	57,334		57,334		49,796
Difference between fair value and aggregate unpaid principle balance of originated loans held for sale	$ 1,627		$ 1,627		$ 1,383

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Estimated Fair Values (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investment securities available for sale	$ 4,783,507		$ 4,783,507		$ 7,180,180
Liability transfers between Level 1 and Level 2	0		0		0
Asset transfers between Level 1 and Level 2	0		0		0
Liability transfers between Level 2 and Level 1	0		0		0
Asset transfers between Level 2 and Level 1	0		0		0
Gains (Losses) from fair value changes on originated loans held for sale	700	$ 291	245	$ 3,452
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Liability measured at fair value on nonrecurring basis	$ 0		$ 0		$ 0
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounts for collateral value estimates due to estimated holding and selling costs (percent)	6.00%		6.00%		6.00%
Maximum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discounts for collateral value estimates due to estimated holding and selling costs (percent)	11.00%		11.00%		11.00%
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3			$ 59,700
Other
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Liability, Transfers Into Level 3			$ 5,600

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Employee Benefit Plans (Components Of Pension Expense) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
BancShares Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	$ 3,362	$ 2,934	$ 6,791	$ 6,310
Interest cost	7,131	7,069	14,188	14,449
Expected return on assets	(11,976)	(10,307)	(23,933)	(21,005)
Amortization of prior service cost	20	53	40	105
Amortization of net actuarial loss	3,548	2,193	6,794	4,427
Total pension expense	2,085	1,942	3,880	4,286
Bancorporation Plan
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]
Service cost	624	670	1,286	1,341
Interest cost	1,592	1,682	3,179	3,365
Expected return on assets	(3,110)	(2,796)	(6,216)	(5,592)
Amortization of net actuarial loss	86	214	157	428
Total pension expense	$ (808)	$ (230)	$ (1,594)	$ (458)

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Employee Benefit Plans (Narrative) (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018 USD ($)	Jun. 30, 2018 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Expected employer contributions in current year	$ 50.0	$ 50.0
BancShares Plan
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer	0.0	0.0
Bancorporation Plan
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Plan Assets, Contributions by Employer	$ 0.0	$ 0.0

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Commitments and Contingencies (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) Advances	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Jun. 30, 2017 USD ($)	Mar. 31, 2017 USD ($)	Dec. 31, 2016 USD ($)
Guarantor Obligations [Line Items]
Qualified Affordable Housing Project Investments	$ 150,500		$ 128,000
FDIC shared-loss payable	$ 103,487	$ 102,466	101,342	$ 99,126	$ 98,013	$ 97,008
Number Of Federal Home Loan Bank Advances | Advances
Commitments to Extend Credit
Guarantor Obligations [Line Items]
Unused Commitments to Extend Credit	$ 10,119,455		9,629,365
Qualified Affordable Housing Project Investments, Commitment	77,622		61,819
Standby Letters of Credit
Guarantor Obligations [Line Items]
Guarantor obligations amount	$ 87,574		81,530
Recourse Obligation on Mortgage Loans Sold
Guarantor Obligations [Line Items]
Recourse Period, Maximum1	180 days
Obligation to Repurchase Receivables Sold
Guarantor Obligations [Line Items]
Reserve for estimated losses arising from repurchase of loans	$ 830		$ 882

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Accumulated Other Comprehensive Income (Loss) (Schedule Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss), before Tax		$ (317,713)		$ (317,713)			$ (193,833)
Deferred tax expense (benefit)		(73,075)		(73,075)			(71,539)
Accumulated other comprehensive income (loss), net of tax		(244,638)	$ (102,843)	(244,638)	$ (102,843)	$ (230,323)	(122,294)	$ (110,941)	$ (135,192)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax		(6,259)	548	(8,828)	(1,026)
Amortization of actuarial losses and prior service cost		(3,634)	(2,407)	(6,951)	(4,855)
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax		3,654	2,460	6,991	4,960
Unrealized Losses on Investment Securities Available for Sale
Accumulated Other Comprehensive Income (Loss), before Tax		(74,671)		(74,671)			(48,834)
Deferred tax expense (benefit)		(17,175)		(17,175)			(17,889)
Accumulated other comprehensive income (loss), net of tax	[1]	(57,496)	(16,648)	(57,496)	(16,648)	(121,243)	(30,945)	(23,183)	(45,875)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	[1]	0	2,111	0	2,096
Unrealized Losses On Securities Available For Sale Transferred To Held To Maturity
Accumulated Other Comprehensive Income (Loss), before Tax		(105,034)		(105,034)			0
Deferred tax expense (benefit)		(24,158)		(24,158)			0
Accumulated other comprehensive income (loss), net of tax	[1]	(80,876)	0	(80,876)	0	0	0	0	0
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	[1]	(3,445)	0	(3,445)	0
Funded Status of Defined Benefit Plan
Accumulated Other Comprehensive Income (Loss), before Tax		(138,008)		(138,008)			(144,999)
Deferred tax expense (benefit)		(31,742)		(31,742)			(53,650)
Accumulated other comprehensive income (loss), net of tax	[1]	(106,266)	(86,195)	(106,266)	(86,195)	$ (109,080)	$ (91,349)	$ (87,758)	$ (89,317)
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax	[1]	$ (2,814)	$ (1,563)	$ (5,383)	$ (3,122)

[1] All amounts are net of tax.

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Accumulated Other Comprehensive Income (Loss) (Components of AOCI) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance		$ (230,323)	$ (110,941)	$ (122,294)	$ (135,192)
Cumulative effect adjustments				(50,052)
Other comprehensive loss before reclassifications		(20,574)	8,646	(81,120)	31,323
Amounts reclassified from accumulated other comprehensive (loss) income		6,259	(548)	8,828	1,026
Net current period other comprehensive (loss) income		(14,315)	8,098	(72,292)	32,349
Ending balance		(244,638)	(102,843)	(244,638)	(102,843)
Unrealized Losses on Investment Securities Available for Sale
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	[1]	(121,243)	(23,183)	(30,945)	(45,875)
Cumulative effect adjustments	[1]			(29,752)
Other comprehensive loss before reclassifications	[1]	63,747	8,646	3,201	31,323
Amounts reclassified from accumulated other comprehensive (loss) income	[1]	0	(2,111)	0	(2,096)
Net current period other comprehensive (loss) income	[1]	63,747	6,535	3,201	29,227
Ending balance	[1]	(57,496)	(16,648)	(57,496)	(16,648)
Unrealized Losses On Securities Available For Sale Transferred To Held To Maturity
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	[1]	0	0	0	0
Cumulative effect adjustments	[1]			0
Other comprehensive loss before reclassifications	[1]	(84,321)	0	(84,321)	0
Amounts reclassified from accumulated other comprehensive (loss) income	[1]	3,445	0	3,445	0
Net current period other comprehensive (loss) income	[1]	(80,876)	0	(80,876)	0
Ending balance	[1]	(80,876)	0	(80,876)	0
Defined Benefit Pension Items
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning balance	[1]	(109,080)	(87,758)	(91,349)	(89,317)
Cumulative effect adjustments	[1]			(20,300)
Other comprehensive loss before reclassifications	[1]	0	0	0	0
Amounts reclassified from accumulated other comprehensive (loss) income	[1]	2,814	1,563	5,383	3,122
Net current period other comprehensive (loss) income	[1]	2,814	1,563	5,383	3,122
Ending balance	[1]	$ (106,266)	$ (86,195)	$ (106,266)	$ (86,195)

[1] All amounts are net of tax.

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Accumulated Other Comprehensive Income (Loss) (Reclassifications out of AOCI) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Unrealized gains and losses on available for sale securities reclassified from AOCI before tax		$ 0	$ 3,351	$ 0	$ 3,327
Amortization of actuarial losses and prior service cost		(3,634)	(2,407)	(6,951)	(4,855)
Total before taxes		(3,654)	(2,460)	(6,991)	(4,960)
Amounts reclassified from accumulated other comprehensive income, net of tax		6,259	(548)	8,828	1,026
Unrealized gains and losses on available for sale securities reclassified from AOCI tax		0	(1,240)	0	(1,231)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax			2,111		2,096
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax		(20)	(53)	(40)	(105)
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, Tax		840	897	1,608	1,838
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, after Tax		(2,814)	(1,563)	(5,383)	(3,122)
Other Comprehensive Income (Loss) Reclassification Adjustment Of Unrealized Losses From AOCI For Securities Available For Sale Transferred To Held To Maturity Before Tax		(4,473)		(4,473)
Other Comprehensive Income (Loss) Reclassification Adjustment Of Unrealized Losses From AOCI For Securities Available For Sale Transferred To Held To Maturity Tax		1,028		1,028
Other Comprehensive Income (Loss) Reclassification Adjustment Of Unrealized Losses From AOCI For Securities Available For Sale Transferred To Held To Maturity Net Of Tax		(3,445)		(3,445)
Unrealized Losses on Investment Securities Available for Sale
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amounts reclassified from accumulated other comprehensive income, net of tax	[1]	0	(2,111)	0	(2,096)
Defined Benefit Pension Items
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]
Amounts reclassified from accumulated other comprehensive income, net of tax	[1]	$ 2,814	$ 1,563	$ 5,383	$ 3,122

[1] All amounts are net of tax.