Loans Acquired (Tables)

6 Months Ended

Jun. 30, 2018

The various categories of loans are summarized as follows:



(In thousands)	June 30, 2018		December 31, 2017

Consumer:
Credit cards	$	180,352	$	185,422
Other consumer	277,330		280,094
Total consumer	457,682		465,516
Real Estate:
Construction	967,720		614,155
Single family residential	1,314,787		1,094,633
Other commercial	2,816,420		2,530,824
Total real estate	5,098,927		4,239,612
Commercial:
Commercial	1,237,910		825,217
Agricultural	187,006		148,302
Total commercial	1,424,916		973,519
Other	151,936		26,962
Loans	7,133,461		5,705,609
Loans acquired, net of discount and allowance ⁽¹⁾	4,232,434		5,074,076
Total loans	$	11,365,895	$	10,779,685

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⁽¹⁾	See Note 6, Loans Acquired, for segregation of loans acquired by loan class.

Changes in the carrying amount of the accretable yield for all purchased impaired loans were as follows for the three and six months ended June 30, 2018 and 2017.



	Three Months Ended June 30, 2018						Six Months Ended June 30, 2018
(In thousands)	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Beginning balance	$	1,369		$	17,605		$	620		$	17,116
Additions	—			—			—			—
Accretable yield adjustments	44			—			1,178			—
Accretion	(31		)	31			(416		)	416
Payments and other reductions, net	—			(3,641		)	—			(3,537		)
Balance, ending	$	1,382		$	13,995		$	1,382		$	13,995



	Three Months Ended June 30, 2017						Six Months Ended June 30, 2017
(In thousands)	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Beginning balance	$	1,217		$	8,695		$	1,655		$	17,802
Additions	—			2,388			—			2,388
Accretable yield adjustments	1,418			—			2,646			—
Accretion	(1,869		)	1,869			(3,535		)	3,535
Payments and other reductions, net	—			(4,504		)	—			(15,277		)
Balance, ending	$	766		$	8,448		$	766		$	8,448

The impact of these adjustments on the Company’s financial results for the three and six months ended June 30, 2018 and 2017 is shown below:



	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2018		2017		2018		2017

Impact on net interest income and pre-tax income	$	26	$	1,388	$	476	$	2,572

Impact, net of taxes	$	19	$	844	$	350	$	1,563

The following table reflects the carrying value of all loans acquired as of June 30, 2018 and December 31, 2017:



	Loans Acquired
(In thousands)	June 30, 2018		December 31, 2017
Consumer:
Other consumer	$	31,651	$	51,467
Real estate:
Construction	521,321		637,032
Single family residential	671,602		793,228
Other commercial	2,240,578		2,387,777
Total real estate	3,433,501		3,818,037
Commercial:
Commercial	764,473		995,587
Agricultural	2,809		66,576
Total commercial	767,282		1,062,163
Other	—		142,409
Total loans acquired ⁽¹⁾	$	4,232,434	$	5,074,076

_____________________________________________________________________________________


(1)	Loans acquired are reported net of a $2,044,000 and $418,000 allowance at June 30, 2018 and December 31, 2017, respectively.

Nonaccrual Loans

Nonaccrual loans, excluding loans acquired, segregated by class of loans, are as follows:



(In thousands)	June 30, 2018		December 31, 2017

Consumer:
Credit cards	$	238	$	170
Other consumer	3,804		4,605
Total consumer	4,042		4,775
Real estate:
Construction	1,764		2,242
Single family residential	15,415		13,431
Other commercial	11,911		16,054
Total real estate	29,090		31,727
Commercial:
Commercial	9,195		6,980
Agricultural	2,221		2,160
Total commercial	11,416		9,140
Total	$	44,548	$	45,642

Nonaccrual loans acquired, excluding purchased credit impaired loans accounted for under ASC Topic 310-30, segregated by class of loans, are as follows (see Note 5, Loans and Allowance for Loan Losses, for discussion of nonaccrual loans):



(In thousands)	June 30, 2018		December 31, 2017

Consumer:
Other consumer	$	362	$	334
Real estate:
Construction	258		1,767
Single family residential	8,784		12,151
Other commercial	22,944		7,401
Total real estate	31,986		21,319
Commercial:
Commercial	4,680		1,748
Agricultural	32		84
Total commercial	4,712		1,832
Total	$	37,060	$	23,485

Past Due Loans

An age analysis of past due loans, excluding loans acquired, segregated by class of loans, is as follows:



(In thousands)	Gross 30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		90 Days Past Due & Accruing

June 30, 2018
Consumer:
Credit cards	$	642	$	383	$	1,025	$	179,327	$	180,352	$	145
Other consumer	3,026		2,363		5,389		271,941		277,330		37
Total consumer	3,668		2,746		6,414		451,268		457,682		182
Real estate:
Construction	515		821		1,336		966,384		967,720		—
Single family residential	6,187		7,898		14,085		1,300,702		1,314,787		121
Other commercial	1,862		6,080		7,942		2,808,478		2,816,420		—
Total real estate	8,564		14,799		23,363		5,075,564		5,098,927		121
Commercial:
Commercial	3,995		4,548		8,543		1,229,367		1,237,910		—
Agricultural	192		2,004		2,196		184,810		187,006		—
Total commercial	4,187		6,552		10,739		1,414,177		1,424,916		—
Other	—		—		—		151,936		151,936		—
Total	$	16,419	$	24,097	$	40,516	$	7,092,945	$	7,133,461	$	303

December 31, 2017
Consumer:
Credit cards	$	707	$	672	$	1,379	$	184,043	$	185,422	$	332
Other consumer	5,009		3,298		8,307		271,787		280,094		10
Total consumer	5,716		3,970		9,686		455,830		465,516		342
Real estate:
Construction	411		1,210		1,621		612,534		614,155		—
Single family residential	8,071		6,460		14,531		1,080,102		1,094,633		1
Other commercial	2,388		8,031		10,419		2,520,405		2,530,824		—
Total real estate	10,870		15,701		26,571		4,213,041		4,239,612		1
Commercial:
Commercial	1,523		6,125		7,648		817,569		825,217		—
Agricultural	50		2,120		2,170		146,132		148,302		—
Total commercial	1,573		8,245		9,818		963,701		973,519		—
Other	—		—		—		26,962		26,962		—
Total	$	18,159	$	27,916	$	46,075	$	5,659,534	$	5,705,609	$	343

An age analysis of past due loans acquired segregated by class of loans, is as follows (see Note 5, Loans and Allowance for Loan Losses, for discussion of past due loans):



(In thousands)	Gross 30-89 Days Past Due		90 Days or More Past Due		Total Past Due		Current		Total Loans		90 Days Past Due & Accruing

June 30, 2018
Consumer:
Other consumer	$	347	$	249	$	596	$	31,055	$	31,651	$	—
Real estate:
Construction	645		1,020		1,665		519,656		521,321		—
Single family residential	3,576		7,410		10,986		660,616		671,602		1,165
Other commercial	4,801		18,947		23,748		2,216,830		2,240,578		—
Total real estate	9,022		27,377		36,399		3,397,102		3,433,501		1,165
Commercial:
Commercial	3,675		7,966		11,641		752,832		764,473		762
Agricultural	35		—		35		2,774		2,809		—
Total commercial	3,710		7,966		11,676		755,606		767,282		762

Total	$	13,079	$	35,592	$	48,671	$	4,183,763	$	4,232,434	$	1,927

December 31, 2017
Consumer:
Other consumer	$	889	$	260	$	1,149	$	50,318	$	51,467	$	108
Real estate:
Construction	2,577		1,448		4,025		633,007		637,032		279
Single family residential	12,936		3,302		16,238		776,990		793,228		126
Other commercial	17,176		5,647		22,823		2,364,954		2,387,777		2,565
Total real estate	32,689		10,397		43,086		3,774,951		3,818,037		2,970
Commercial:
Commercial	2,344		1,039		3,383		992,204		995,587		67
Agricultural	51		—		51		66,525		66,576		—
Total commercial	2,395		1,039		3,434		1,058,729		1,062,163		67

Other	15		—		15		142,394		142,409		—
Total	$	35,988	$	11,696	$	47,684	$	5,026,392	$	5,074,076	$	3,145

Loans by Credit Risk Ratings

The following table presents a summary of loans by credit risk rating as of June 30, 2018 and December 31, 2017, segregated by class of loans. Loans accounted for under ASC Topic 310-30 are all included in Risk Rate 1-4 in this table.



(In thousands)	Risk Rate 1-4		Risk Rate 5		Risk Rate 6		Risk Rate 7		Risk Rate 8		Total
June 30, 2018
Consumer:
Credit cards	$	179,969	$	—	$	383	$	—	$	—	$	180,352
Other consumer	273,345		—		3,985		—		—		277,330
Total consumer	453,314		—		4,368		—		—		457,682
Real estate:
Construction	960,791		2,314		4,599		16		—		967,720
Single family residential	1,287,314		1,711		25,544		218		—		1,314,787
Other commercial	2,780,597		8,620		27,203		—		—		2,816,420
Total real estate	5,028,702		12,645		57,346		234		—		5,098,927
Commercial:
Commercial	1,199,553		12,803		25,554		—		—		1,237,910
Agricultural	184,228		155		2,600		23		—		187,006
Total commercial	1,383,781		12,958		28,154		23		—		1,424,916
Other	151,936		—		—		—		—		151,936
Loans acquired	4,096,419		51,985		83,657		373		—		4,232,434
Total	$	11,114,152	$	77,588	$	173,525	$	630	$	—	$	11,365,895



(In thousands)	Risk Rate 1-4		Risk Rate 5		Risk Rate 6		Risk Rate 7		Risk Rate 8		Total
December 31, 2017
Consumer:
Credit cards	$	184,920	$	—	$	502	$	—	$	—	$	185,422
Other consumer	275,160		—		4,934		—		—		280,094
Total consumer	460,080		—		5,436		—		—		465,516
Real estate:
Construction	603,126		5,795		5,218		16		—		614,155
Single family residential	1,066,902		3,954		23,490		287		—		1,094,633
Other commercial	2,480,293		19,581		30,950		—		—		2,530,824
Total real estate	4,150,321		29,330		59,658		303		—		4,239,612
Commercial:
Commercial	736,377		74,254		14,402		50		134		825,217
Agricultural	146,065		24		2,190		23		—		148,302
Total commercial	882,442		74,278		16,592		73		134		973,519
Other	26,962		—		—		—		—		26,962
Loans acquired	4,918,570		62,128		93,378		—		—		5,074,076
Total	$	10,438,375	$	165,736	$	175,064	$	376	$	134	$	10,779,685

The following table presents a summary of loans acquired by credit risk rating, segregated by class of loans (see Note 5, Loans and Allowance for Loan Losses, for discussion of loan risk rating). Loans accounted for under ASC Topic 310-30 are all included in Risk Rate 1-4 in this table.



(In thousands)	Risk Rate 1-4		Risk Rate 5		Risk Rate 6		Risk Rate 7		Risk Rate 8		Total

June 30, 2018
Consumer:
Other consumer	$	30,912	$	10	$	729	$	—	$	—	$	31,651
Real estate:
Construction	500,741		19,624		956		—		—		521,321
Single family residential	653,816		1,962		15,451		373		—		671,602
Other commercial	2,190,767		11,345		38,466		—		—		2,240,578
Total real estate	3,345,324		32,931		54,873		373		—		3,433,501
Commercial:
Commercial	717,441		19,044		27,988		—		—		764,473
Agricultural	2,742		—		67		—		—		2,809
Total commercial	720,183		19,044		28,055		—		—		767,282

Total	$	4,096,419	$	51,985	$	83,657	$	373	$	—	$	4,232,434

December 31, 2017
Consumer:
Other consumer	$	50,625	$	21	$	821	$	—	$	—	$	51,467
Real estate:
Construction	604,796		30,524		1,712		—		—		637,032
Single family residential	770,954		2,618		19,656		—		—		793,228
Other commercial	2,337,097		15,064		35,616		—		—		2,387,777
Total real estate	3,712,847		48,206		56,984		—		—		3,818,037
Commercial:
Commercial	946,322		13,901		35,364		—		—		995,587
Agricultural	66,367		—		209		—		—		66,576
Total commercial	1,012,689		13,901		35,573		—		—		1,062,163

Other	142,409		—		—		—		—		142,409
Total	$	4,918,570	$	62,128	$	93,378	$	—	$	—	$	5,074,076