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Loans
6 Months Ended
Jun. 30, 2016
Receivables [Abstract]  
Loans
LOANS
Loans consist of the following, segregated into legacy and acquired loans, for the periods indicated:
 
 
June 30, 2016
(Dollars in thousands)
Legacy Loans
 
Acquired Loans
 
Total
Commercial loans:
 
 
 
 
 
Real estate
$
5,097,689

 
$
1,374,312

 
$
6,472,001

Commercial and industrial
3,027,590

 
408,219

 
3,435,809

       Energy-related
659,510

 
2,524

 
662,034

 
8,784,789

 
1,785,055

 
10,569,844

 
 
 
 
 
 
Residential mortgage loans:
794,701

 
454,361

 
1,249,062

 


 


 


Consumer and other loans:
 
 
 
 
 
Home equity
1,695,113

 
434,699

 
2,129,812

Indirect automobile
182,199

 
24

 
182,223

Other
528,047

 
63,573

 
591,620

 
2,405,359

 
498,296

 
2,903,655

Total
$
11,984,849

 
$
2,737,712

 
$
14,722,561


 
 
December 31, 2015
(Dollars in thousands)
Legacy Loans
 
Acquired Loans
 
Total
Commercial loans:
 
 
 
 
 
Real estate
$
4,504,062

 
$
1,569,449

 
$
6,073,511

Commercial and industrial
2,952,102

 
492,476

 
3,444,578

       Energy-related
677,177

 
3,589

 
680,766

 
8,133,341

 
2,065,514

 
10,198,855

 
 
 
 
 
 
Residential mortgage loans:
694,023

 
501,296

 
1,195,319

 
 
 
 
 
 
Consumer and other loans:
 
 
 
 
 
Home equity
1,575,643

 
490,524

 
2,066,167

Indirect automobile
246,214

 
84

 
246,298

Other
541,299

 
79,490

 
620,789

 
2,363,156

 
570,098

 
2,933,254

Total
$
11,190,520

 
$
3,136,908

 
$
14,327,428



Since 2009, the Company has acquired certain assets and liabilities of six failed banks. Substantially all of the loans and foreclosed real estate that were acquired through these transactions were covered by loss share agreements between the FDIC and IBERIABANK, which afforded IBERIABANK loss protection. Covered loans, which are included in acquired loans in the tables above, were $211.4 million and $229.2 million at June 30, 2016 and December 31, 2015, respectively, of which $177.9 million and $191.7 million, respectively, were residential mortgage and home equity loans. Refer to Note 7 for additional information regarding the Company’s loss sharing agreements.

Net deferred loan origination fees were $21.6 million and $18.7 million at June 30, 2016 and December 31, 2015, respectively. In addition to loans issued in the normal course of business, the Company considers overdrafts on customer deposit accounts to be loans and reclassifies these overdrafts as loans in its consolidated balance sheets. At June 30, 2016 and December 31, 2015, overdrafts of $3.9 million and $5.1 million, respectively, have been reclassified to loans.

Loans with carrying values of $4.1 billion and $3.9 billion were pledged as collateral for borrowings at June 30, 2016 and December 31, 2015, respectively.
Aging Analysis
The following tables provide an analysis of the aging of loans as of June 30, 2016 and December 31, 2015. Due to the difference in accounting for acquired loans, the tables below further segregate the Company’s loans between loans originated by the Company (“legacy loans”) and acquired loans.
 
June 30, 2016
 
Legacy loans
 
 
 
 
 
 
 
 
 
 
 
Total Legacy
Loans, Net of
Unearned 
Income
 
 > 90 days and Accruing
 
Past Due (1)
 
 
 
(Dollars in thousands)
30-59 days
 
60-89 days
 
> 90 days
 
Total
 
Current
 
Commercial real estate - Construction
$
4

 
$
55

 
$
26

 
$
85

 
$
695,124

 
$
695,209

 
$

Commercial real estate - Other
12,558

 
316

 
3,657

 
16,531

 
4,385,949

 
4,402,480

 
8

Commercial and industrial
3,233

 
11,588

 
9,616

 
24,437

 
3,003,153

 
3,027,590

 

Energy-related
3,055

 

 
60,766

 
63,821

 
595,689

 
659,510

 

Residential mortgage
1,367

 
2,178

 
13,062

 
16,607

 
778,094

 
794,701

 
239

Consumer - Home equity
4,011

 
1,038

 
5,591

 
10,640

 
1,684,473

 
1,695,113

 

Consumer - Indirect automobile
2,749

 
381

 
1,372

 
4,502

 
177,697

 
182,199

 

Consumer - Credit card
249

 
119

 
532

 
900

 
77,144

 
78,044

 

Consumer - Other
2,207

 
798

 
827

 
3,832

 
446,171

 
450,003

 
106

Total
$
29,433

 
$
16,473

 
$
95,449

 
$
141,355

 
$
11,843,494

 
$
11,984,849

 
$
353

 
 
December 31, 2015
 
Legacy loans
 
 
 
 
 
 
 
 
 
 
 
Total Legacy
Loans, Net of
Unearned 
Income
 
 > 90 days and Accruing
 
Past Due (1)
 
 
 
 
(Dollars in thousands)
30-59 days
 
60-89 days
 
> 90 days
 
Total
 
Current
 
 
Commercial real estate - Construction
$
801

 
$

 
$
120

 
$
921

 
$
635,560

 
$
636,481

 
$

Commercial real estate - Other
2,687

 
793

 
15,517

 
18,997

 
3,848,584

 
3,867,581

 
95

Commercial and industrial
1,208

 
739

 
6,746

 
8,693

 
2,943,409

 
2,952,102

 
87

Energy-related
15

 

 
7,081

 
7,096

 
670,081

 
677,177

 

Residential mortgage
1,075

 
2,485

 
14,116

 
17,676

 
676,347

 
694,023

 
442

Consumer - Home equity
3,549

 
870

 
5,628

 
10,047

 
1,565,596

 
1,575,643

 

Consumer - Indirect automobile
2,187

 
518

 
1,181

 
3,886

 
242,328

 
246,214

 

Consumer - Credit card
394

 
113

 
394

 
901

 
76,360

 
77,261

 

Consumer - Other
1,923

 
752

 
769

 
3,444

 
460,594

 
464,038

 

Total
$
13,839

 
$
6,270

 
$
51,552

 
$
71,661

 
$
11,118,859

 
$
11,190,520

 
$
624


(1) 
Past due loans greater than 90 days include all loans on non-accrual status, regardless of past due status, as of the period indicated. Non-accrual loans are presented separately in the “Non-accrual Loans” section below.

 
June 30, 2016
 
Acquired loans
 
Past Due (1)
 
 
 
Discount/Premium
 
Total Acquired Loans,
Net of Unearned Income
 
> 90 days
and
Accruing
(Dollars in thousands)
30-59 days
 
60-89 days
 
> 90 days
 
Total
 
Current
 
 
Commercial real estate - Construction
$
184

 
$

 
$
4,254

 
$
4,438

 
$
91,715

 
$
11,243

 
$
107,396

 
$
4,254

Commercial real estate - Other
1,855

 
730

 
38,947

 
41,532

 
1,276,868

 
(51,484
)
 
1,266,916

 
36,932

Commercial and industrial
2,707

 
719

 
3,454

 
6,880

 
414,406

 
(13,067
)
 
408,219

 
1,840

Energy-related

 

 
48

 
48

 
2,512

 
(36
)
 
2,524

 

Residential mortgage
101

 
3,304

 
20,316

 
23,721

 
464,518

 
(33,878
)
 
454,361

 
19,580

Consumer - Home equity
2,408

 
368

 
11,686

 
14,462

 
446,532

 
(26,295
)
 
434,699

 
9,707

Consumer - Indirect automobile

 

 
2

 
2

 
23

 
(1
)
 
24

 
2

Consumer - Credit Card

 

 
20

 
20

 
488

 

 
508

 
20

Consumer - Other
428

 
142

 
716

 
1,286

 
62,507

 
(728
)
 
63,065

 
466

Total
$
7,683

 
$
5,263

 
$
79,443

 
$
92,389

 
$
2,759,569

 
$
(114,246
)
 
$
2,737,712

 
$
72,801

 
 
December 31, 2015
 
Acquired loans
 
Past Due (1)
 
 
 
Discount/Premium
 
Total Acquired Loans,
Net of
Unearned Income
 
> 90 days
and
Accruing
(Dollars in thousands)
30-59 days
 
60-89 days
 
> 90 days
 
Total
 
Current
 
 
Commercial real estate - Construction
$
216

 
$
117

 
$
6,994

 
$
7,327

 
$
107,992

 
$
10,107

 
$
125,426

 
$
6,994

Commercial real estate - Other
4,295

 
2,024

 
53,558

 
59,877

 
1,447,441

 
(63,295
)
 
1,444,023

 
52,067

Commercial and industrial
1,016

 
1,276

 
6,829

 
9,121

 
490,255

 
(6,900
)
 
492,476

 
5,674

Energy-related

 

 
1,368

 
1,368

 
2,221

 

 
3,589

 
1,198

Residential mortgage
73

 
1,806

 
22,873

 
24,752

 
506,103

 
(29,559
)
 
501,296

 
21,765

Consumer - Home equity
2,859

 
997

 
12,525

 
16,381

 
503,635

 
(29,492
)
 
490,524

 
11,234

Consumer - Indirect automobile

 

 
12

 
12

 
72

 

 
84

 
12

Consumer - Credit Card

 

 
17

 
17

 
565

 

 
582

 
17

Consumer - Other
580

 
211

 
667

 
1,458

 
79,167

 
(1,717
)
 
78,908

 
461

Total
$
9,039

 
$
6,431

 
$
104,843

 
$
120,313

 
$
3,137,451

 
$
(120,856
)
 
$
3,136,908

 
$
99,422


(1) 
Past due information presents acquired loans at the gross loan balance, prior to application of discounts.
Non-accrual Loans
The following table provides the recorded investment of legacy loans on non-accrual status at the periods indicated.
 
(Dollars in thousands)
June 30, 2016
 
December 31, 2015
Commercial real estate - Construction
$
26

 
$
120

Commercial real estate - Other
3,649

 
15,422

Commercial and industrial
9,616

 
6,659

Energy-related
60,766

 
7,081

Residential mortgage
12,823

 
13,674

Consumer - Home equity
5,591

 
5,628

Consumer - Indirect automobile
1,372

 
1,181

Consumer - Credit card
532

 
394

Consumer - Other
721

 
769

Total
$
95,096

 
$
50,928



Loans Acquired
As discussed in Note 3, during 2015, the Company acquired loans with fair values of $0.3 billion from Florida Bank Group, $1.1 billion from Old Florida and $0.8 billion from Georgia Commerce. Of the total $2.2 billion of loans acquired, $2.1 billion were determined to have no evidence of deteriorated credit quality and are accounted for under ASC Topics 310-10 and 310-20. The remaining $57.8 million were determined to exhibit deteriorated credit quality since origination under ASC 310-30. The tables below show the balances acquired during 2015 for these two subsections of the portfolio as of the acquisition date.
(Dollars in thousands)
 
Contractually required principal and interest at acquisition
$
2,384,114

Expected losses and foregone interest
(15,539
)
Cash flows expected to be collected at acquisition
2,368,575

Fair value of acquired loans at acquisition
$
2,105,466

 
(Dollars in thousands)
Acquired
Impaired
Loans
Contractually required principal and interest at acquisition
$
76,445

Non-accretable difference (expected losses and foregone interest)
(11,867
)
Cash flows expected to be collected at acquisition
64,578

Accretable yield
(6,823
)
Basis in acquired loans at acquisition
$
57,755


The following is a summary of changes in the accretable difference for loans accounted for under ASC 310-30 during the six months ended June 30:
(Dollars in thousands)
2016
 
2015
Balance at beginning of period
$
227,502

 
$
287,651

Acquisition

 
4,592

Transfers from non-accretable difference to accretable yield
4,425

 
5,006

Accretion
(36,256
)
 
(41,836
)
Changes in expected cash flows not affecting non-accretable differences (1)
8,949

 
2,288

Balance at end of period
$
204,620

 
$
257,701


 
(1) 
Includes changes in cash flows expected to be collected due to the impact of changes in actual or expected timing of liquidation events, modifications, changes in interest rates and changes in prepayment assumptions.

Troubled Debt Restructurings
Information about the Company’s troubled debt restructurings (“TDRs”) at June 30, 2016 and 2015 is presented in the following tables. Modifications of loans that are accounted for within a pool under ASC Topic 310-30, which include covered loans, as well as certain acquired loans are excluded as TDRs. Accordingly, such modifications do not result in the removal of those loans from the pool, even if the modification of those loans would otherwise be considered a TDR. As a result, all covered and certain acquired loans that would otherwise meet the criteria for classification as a TDR are excluded from the tables below.

TDRs totaling $165.3 million and $29.6 million occurred during the six-month periods ended June 30, 2016 and June 30, 2015, respectively, through modification of the original loan terms. The following table provides information on how the TDRs were modified during the six months ended June 30:
(Dollars in thousands)
2016
 
2015
Extended maturities
$
57,533

 
$
4,413

Maturity and interest rate adjustment
31,048

 
19,857

Forbearance
38,367

 

Movement to or extension of interest-rate only payments
440



Interest rate adjustment
134



Other concession(s) (1)
37,761

 
5,367

       Total
$
165,283

 
$
29,637

(1) Other concessions may include covenant waivers, forgiveness of principal or interest associated with a customer bankruptcy, or a combination of any of the above concessions.

Of the $165.3 million of TDRs occurring during the six-month period ended June 30, 2016, $126.6 million are on accrual status and $38.7 million are on non-accrual status. Of the $29.6 million of TDRs occurring during the six-month period ended June 30, 2015, $14.3 million were on accrual status and $15.2 million were on non-accrual status at June 30, 2015.

The following table presents the end of period balance for loans modified in a TDR during the six-month periods ended June 30:
 
2016
 
2015
(In thousands, except number of loans)
Number of Loans
 
Pre-modification Outstanding Recorded Investment
 
Post-modification Outstanding Recorded Investment
 
Number of Loans
 
Pre-modification Outstanding Recorded Investment
 
Post-modification Outstanding Recorded Investment
Commercial real estate
16

 
$
12,613

 
$
11,825

 
6

 
$
7,815

 
$
7,762

Commercial and industrial
28

 
24,018

 
23,632

 
17

 
18,678

 
18,441

Energy-related
25

 
110,443

 
119,890

 
1

 
3,434

 
3,434

Residential mortgage
25

 
4,733

 
4,692

 

 

 

Consumer - Home Equity
57

 
3,928

 
3,916

 

 

 

Consumer - Other
85

 
1,386

 
1,328

 

 

 

Total
236

 
$
157,121

 
$
165,283

 
24

 
$
29,927

 
$
29,637


Information detailing TDRs which defaulted during the six-month periods ended June 30, 2016 and 2015, and were modified in the previous twelve months (i.e., the twelve months prior to the default) is presented in the following table. The Company has defined a default as any loan with a loan payment that is currently past due greater than 30 days, or was past due greater than 30 days at any point during the previous twelve months, or since the date of modification, whichever is shorter.
 
 
June 30, 2016
 
June 30, 2015
(In thousands, except number of loans)
Number of
Loans
 
Recorded
Investment
 
Number of
Loans
 
Recorded
Investment
Commercial real estate
8

 
$
1,377

 
3

 
$
5,780

Commercial and industrial
8

 
3,273

 
12

 
12,445

Energy-related
1

 
2,250

 
1

 
3,434

Residential mortgage
7

 
536

 

 

Consumer - Home Equity
24

 
1,608

 

 

Consumer - Other
67

 
598

 

 

Total
115

 
$
9,642

 
16

 
$
21,659