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Loans And Leases | 9 Months Ended
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Sep. 30, 2011
Loans and Leases Receivable Disclosure [Abstract] |
Loans And Leases | Loans and Leases Loans and leases outstanding include the following as of the dates indicated:
| September 30, 2011 |  | December 31, 2010 |  | September 30, 2010
Covered loans | $ | 2,557,450 |  |  | $ | 2,007,452 |  |  | $ | 2,222,660 |
Noncovered loans and leases: |  |  |  |  |
Commercial: |  |  |  |  |
Construction and land development | 416,719 |  |  | 338,929 |  |  | 433,954 |
Commercial mortgage | 4,996,036 |  |  | 4,737,862 |  |  | 4,696,183 |
Other commercial real estate | 144,538 |  |  | 149,710 |  |  | 155,509 |
Commercial and industrial | 1,797,581 |  |  | 1,869,490 |  |  | 1,774,340 |
Lease financing | 304,039 |  |  | 301,289 |  |  | 294,825 |
Other | 158,782 |  |  | 182,015 |  |  | 185,232 |
Total commercial loans | 7,817,695 |  |  | 7,579,295 |  |  | 7,540,043 |
Non-commercial: |  |  |  |  |
Residential mortgage | 816,738 |  |  | 878,792 |  |  | 917,415 |
Revolving mortgage | 2,302,482 |  |  | 2,233,853 |  |  | 2,209,149 |
Construction and land development | 139,185 |  |  | 192,954 |  |  | 112,116 |
Consumer | 527,426 |  |  | 595,683 |  |  | 766,586 |
Total non-commercial loans | 3,785,831 |  |  | 3,901,282 |  |  | 4,005,266 |
Total noncovered loans and leases | 11,603,526 |  |  | 11,480,577 |  |  | 11,545,309 |
Total loans and leases | $ | 14,160,976 |  |  | $ | 13,488,029 |  |  | $ | 13,767,969 |
| September 30, 2011 |  | December 31, 2010 |  | September 30, 2010
| Impaired at acquisition date |  | All other acquired loans |  | Total |  | Impaired at acquisition date |  | All other acquired loans |  | Total |  | Impaired at acquisition date |  | All other acquired loans |  | Total
Covered loans: |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction and land development | $ | 172,309 |  |  | $ | 233,349 |  |  | $ | 405,658 |  |  | $ | 102,988 |  |  | $ | 265,432 |  |  | $ | 368,420 |  |  | $ | 136,736 |  |  | $ | 312,063 |  |  | $ | 448,799 |
Commercial mortgage | 125,379 |  |  | 1,184,704 |  |  | 1,310,083 |  |  | 120,240 |  |  | 968,824 |  |  | 1,089,064 |  |  | 132,049 |  |  | 999,134 |  |  | 1,131,183 |
Other commercial real estate | 40,514 |  |  | 118,493 |  |  | 159,007 |  |  | 34,704 |  |  | 175,957 |  |  | 210,661 |  |  | 43,023 |  |  | 177,001 |  |  | 220,024 |
Commercial and industrial | 30,611 |  |  | 106,642 |  |  | 137,253 |  |  | 9,087 |  |  | 123,390 |  |  | 132,477 |  |  | 14,400 |  |  | 168,505 |  |  | 182,905 |
Lease financing | — |  |  | 162 |  |  | 162 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Other | — |  |  | 1,473 |  |  | 1,473 |  |  | — |  |  | 1,510 |  |  | 1,510 |  |  | 147 |  |  | 4,534 |  |  | 4,681 |
Total commercial loans | 368,813 |  |  | 1,644,823 |  |  | 2,013,636 |  |  | 267,019 |  |  | 1,535,113 |  |  | 1,802,132 |  |  | 326,355 |  |  | 1,661,237 |  |  | 1,987,592 |
Non-commercial: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 45,384 |  |  | 335,021 |  |  | 380,405 |  |  | 11,026 |  |  | 63,469 |  |  | 74,495 |  |  | 36,933 |  |  | 45,836 |  |  | 82,769 |
Revolving mortgage | 9,939 |  |  | 29,770 |  |  | 39,709 |  |  | 8,400 |  |  | 9,466 |  |  | 17,866 |  |  | 114 |  |  | 23,025 |  |  | 23,139 |
Construction and land development | 74,414 |  |  | 40,712 |  |  | 115,126 |  |  | 44,260 |  |  | 61,545 |  |  | 105,805 |  |  | 37,228 |  |  | 84,964 |  |  | 122,192 |
Consumer | 1,155 |  |  | 7,419 |  |  | 8,574 |  |  | — |  |  | 7,154 |  |  | 7,154 |  |  | 116 |  |  | 6,852 |  |  | 6,968 |
Total non-commercial loans | 130,892 |  |  | 412,922 |  |  | 543,814 |  |  | 63,686 |  |  | 141,634 |  |  | 205,320 |  |  | 74,391 |  |  | 160,677 |  |  | 235,068 |
Total covered loans | $ | 499,705 |  |  | $ | 2,057,745 |  |  | $ | 2,557,450 |  |  | $ | 330,705 |  |  | $ | 1,676,747 |  |  | $ | 2,007,452 |  |  | $ | 400,746 |  |  | $ | 1,821,914 |  |  | $ | 2,222,660 |
At September 30, 2011, $2,346,113 in noncovered loans were pledged to secure debt obligations, compared to $3,744,067 at December 31, 2010 and $3,697,003 at September 30, 2010. Description of segment and class risks Each portfolio segment and the classes within those segments are subject to risks that could have an adverse impact on the credit quality of the loan and lease portfolio. Management has identified the most significant risks as described below which are generally similar among the segments and classes. While the list in not exhaustive, it provides a description of the risks that management has determined are the most significant. Commercial loans and leases Each commercial loan or lease is centrally underwritten based primarily upon the customer’s ability to generate the required cash flow to service the debt in accordance with the contractual terms and conditions of the loan agreement. A complete understanding of the borrower’s businesses including the experience and background of the principals is obtained prior to approval. To the extent that the loan or lease is secured by collateral, which is true for the majority of commercial loans and leases, the likely value of the collateral and what level of strength the collateral brings to the transaction is evaluated. To the extent that the principals or other parties provide personal guarantees, the relative financial strength and liquidity of each guarantor is assessed. Common risks to each class of commercial loans include general economic conditions within the markets BancShares serves, as well as risks that are specific to each transaction including demand for products and services, personal events such as disability or change in marital status, and reductions in the value of collateral. Due to the concentration of loans in the medical, dental, and related fields, BancShares is susceptible to risks that legislative and governmental actions will fundamentally alter the economic structure of the medical care industry in the United States. In addition to these common risks for the majority of commercial loans and leases, additional risks are inherent in certain classes of commercial loans and leases. Commercial construction and land development Commercial construction and land development loans are highly dependent on the supply and demand for commercial real estate in the markets served by BancShares as well as the demand for newly constructed residential homes and lots that customers are developing. Continuing deterioration in demand could result in significant decreases in the underlying collateral values and make repayment of the outstanding loans more difficult for customers. Commercial mortgage, commercial and industrial and lease financing Commercial mortgage and commercial and industrial loans and lease financing are primarily dependent on the ability of borrowers to achieve business results consistent with those projected at loan origination resulting in cash flow sufficient to service the debt. To the extent that a customer’s business results are significantly unfavorable versus the original projections, the ability for the loan to be serviced on a basis consistent with the contractual terms may be at risk. While these loans and leases are generally secured by real property, personal property, or business assets such as inventory or accounts receivable, it is possible that the liquidation of the collateral will not fully satisfy the obligation. Other commercial real estate Other commercial real estate loans consist primarily of loans secured by multifamily housing and agricultural loans. The primary risk associated with multifamily loans is the ability of the income-producing property that collateralizes the loan to produce adequate cash flow to service the debt. High unemployment or generally weak economic conditions may result in customers having to provide rental rate concessions to achieve adequate occupancy rates. The performance of agricultural loans is highly dependent on favorable weather, reasonable costs for seed and fertilizer, and the ability to successfully market the product at a profitable margin. The demand for these products is also dependent on macroeconomic conditions that are beyond the control of the borrower. Non-commercial loans Each non-commercial loan is centrally underwritten using automated credit scoring and analysis tools. These credit scoring tools take into account factors such as payment history, credit utilization, length of credit history, types of credit currently in use, and recent credit inquiries. To the extent that the loan is secured by collateral, the likely value of that collateral is evaluated. Common risks to each class of non-commercial loans include risks that are not specific to individual transactions such as general economic conditions within the markets BancShares serves, particularly unemployment and potential declines in real estate values. Personal events such as disability or change in marital status also add risk to non-commercial loans. In addition to these common risks for the majority of non-commercial loans, additional risks are inherent in certain classes of non-commercial loans. Revolving mortgage Revolving mortgage loans are often secured by second liens on residential real estate, thereby making such loans particularly susceptible to declining collateral values. A substantial decline in collateral value could render a second lien position to be effectively unsecured. Additional risks include lien perfection inaccuracies and disputes with first lienholders that may further weaken the collateral position. Further, the open-end structure of these loans creates the risk that customers may draw on the lines in excess of the collateral value if there have been significant declines since origination. Consumer The consumer loan portfolio includes loans secured by personal property such as automobiles, marketable securities, other titled recreational vehicles including boats and motorcycles, as well as unsecured consumer debt. The value of underlying collateral within this class is especially volatile due to potential rapid depreciation in values since date of loan origination in excess of principal repayment. Residential mortgage and non-commercial construction and land development Residential mortgage and non-commercial construction and land development loans are made to individuals and are typically secured by 1-4 family residential property, undeveloped land, and partially developed land in anticipation of pending construction of a personal residence. Significant and rapid declines in real estate values can result in residential mortgage loan borrowers having debt levels in excess of the current market value of the collateral. Such a decline in values has led to unprecedented levels of foreclosures and losses within the banking industry. Non-commercial construction and land development projects can experience delays in completion and cost overruns that exceed the borrower’s financial ability to complete the project. Such cost overruns can routinely result in foreclosure of partially completed and unmarketable collateral. Covered loans The risks associated with covered loans are generally consistent with the risks identified for commercial and non-commercial loans and the classes of loans within those segments. An additional risk with respect to covered loans relates to the FDIC loss share agreements, specifically the ability to receive timely and full reimbursement from the FDIC for losses and related expenses that are believed to be covered by the loss share agreements. Further, these loans were underwritten by other institutions with weaker lending standards. Therefore, there is a significant risk that the loans are not adequately supported by the paying capacity of the borrower or the values of underlying collateral at the time of origination. 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 loans and leases, non-commercial loans and leases, and covered loans have different credit quality indicators as a result of the methods used to monitor each of these loan segments. The credit quality indicators for commercial loans and leases and all covered loans and leases are developed through review of individual borrowers on an ongoing basis. Each borrower is evaluated at least annually with more frequent evaluation of more severely criticized loans or leases. 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 obligor 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 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 loss are considered uncollectible and of such little value that their continuing to be carried as an asset is not warranted. This classification is not necessarily equivalent to no potential for recovery or salvage value, but rather that it is not appropriate to defer a full write-off even though partial recovery may be effected 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 noncovered, ungraded loans at September 30, 2011 relate to business credit cards and tobacco buyout loans. Tobacco buyout loans with an outstanding balance of $62,373 at September 30, 2011 are secured by assignments of receivables made pursuant to the Fair and Equitable Tobacco Reform Act of 2004. The credit risk associated with these loans is considered low as the payments that began in 2005 and continue through 2014 are to be made by the Commodity Credit Corporation which is part of the United States Department of Agriculture. The credit quality indicators for noncovered, non-commercial loans are based on the delinquency status of the borrower. As the borrower becomes more delinquent, the likelihood of loss increases. The composition of the loans and leases outstanding at September 30, 2011 and December 31, 2010 by credit quality indicator is provided below:
| Commercial noncovered loans and leases
Grade: | Construction and Land Development |  | Commercial Mortgage |  | Other Commercial Real Estate |  | Commercial and Industrial |  | Lease Financing |  | Other |  | Total Commercial Loans Not Covered by Loss Share
September 30, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 371,906 |  |  | $ | 4,632,698 |  |  | $ | 130,591 |  |  | $ | 1,585,106 |  |  | $ | 296,420 |  |  | $ | 157,742 |  |  | $ | 7,174,463 |
Special mention | 18,431 |  |  | 232,537 |  |  | 8,672 |  |  | 38,844 |  |  | 4,765 |  |  | 1,020 |  |  | 304,269 |
Substandard | 26,249 |  |  | 123,968 |  |  | 4,629 |  |  | 27,700 |  |  | 2,854 |  |  | — |  |  | 185,400 |
Doubtful | 133 |  |  | 4,307 |  |  | 401 |  |  | 270 |  |  | — |  |  | — |  |  | 5,111 |
Ungraded | — |  |  | 2,526 |  |  | 245 |  |  | 145,661 |  |  | — |  |  | 20 |  |  | 148,452 |
Total | $ | 416,719 |  |  | $ | 4,996,036 |  |  | $ | 144,538 |  |  | $ | 1,797,581 |  |  | $ | 304,039 |  |  | $ | 158,782 |  |  | $ | 7,817,695 |
December 31, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 285,988 |  |  | $ | 4,390,634 |  |  | $ | 137,570 |  |  | $ | 1,633,775 |  |  | $ | 291,476 |  |  | $ | 181,044 |  |  | $ | 6,920,487 |
Special mention | 20,957 |  |  | 229,581 |  |  | 6,531 |  |  | 42,639 |  |  | 6,888 |  |  | 846 |  |  | 307,442 |
Substandard | 29,714 |  |  | 108,239 |  |  | 5,103 |  |  | 24,686 |  |  | 2,496 |  |  | 90 |  |  | 170,328 |
Doubtful | 2,270 |  |  | 7,928 |  |  | 401 |  |  | 748 |  |  | 414 |  |  | — |  |  | 11,761 |
Ungraded | — |  |  | 1,480 |  |  | 105 |  |  | 167,642 |  |  | 15 |  |  | 35 |  |  | 169,277 |
Total | $ | 338,929 |  |  | $ | 4,737,862 |  |  | $ | 149,710 |  |  | $ | 1,869,490 |  |  | $ | 301,289 |  |  | $ | 182,015 |  |  | $ | 7,579,295 |
| Non-commercial noncovered loans and leases
| Residential Mortgage |  | Revolving Mortgage |  | Construction and Land Development |  | Consumer |  | Total Non- commercial Noncovered Loans
September 30, 2011 |  |  |  |  |  |  |  |  |
Current | $ | 795,578 |  |  | $ | 2,291,490 |  |  | $ | 134,467 |  |  | $ | 522,155 |  |  | $ | 3,743,690 |
31-60 days past due | 2,303 |  |  | 3,987 |  |  | 4,204 |  |  | 2,369 |  |  | 12,863 |
61-90 days past due | 3,022 |  |  | 924 |  |  | — |  |  | 1,361 |  |  | 5,307 |
Over 90 days past due | 15,835 |  |  | 6,081 |  |  | 514 |  |  | 1,541 |  |  | 23,971 |
Total | $ | 816,738 |  |  | $ | 2,302,482 |  |  | $ | 139,185 |  |  | $ | 527,426 |  |  | $ | 3,785,831 |
December 31, 2010 |  |  |  |  |  |  |  |  |
Current | $ | 840,328 |  |  | $ | 2,226,427 |  |  | $ | 187,918 |  |  | 579,227 |  |  | $ | 3,833,900 |
31-60 days past due | 13,051 |  |  | 3,682 |  |  | 1,445 |  |  | 12,798 |  |  | 30,976 |
61-90 days past due | 4,762 |  |  | 1,424 |  |  | 548 |  |  | 2,611 |  |  | 9,345 |
Over 90 days past due | 20,651 |  |  | 2,320 |  |  | 3,043 |  |  | 1,047 |  |  | 27,061 |
Total | $ | 878,792 |  |  | $ | 2,233,853 |  |  | $ | 192,954 |  |  | $ | 595,683 |  |  | $ | 3,901,282 |
| Covered loans
Grade: | Construction and Land Development - Commercial |  | Commercial Mortgage |  | Other Commercial Real Estate |  | Commercial and Industrial |  | Lease Financing |  | Residential Mortgage |  | Revolving Mortgage |  | Construction and Land Development Non-commercial |  | Consumer and Other |  | Total Covered Loans
September 30, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 43,851 |  |  | $ | 486,673 |  |  | $ | 48,460 |  |  | $ | 46,898 |  |  | $ | 162 |  |  | $ | 226,160 |  |  | $ | 15,547 |  |  | $ | 7,791 |  |  | $ | 4,147 |  |  | $ | 879,689 |
Special mention | 97,960 |  |  | 342,876 |  |  | 24,951 |  |  | 34,894 |  |  | — |  |  | 25,686 |  |  | 316 |  |  | 23,955 |  |  | 577 |  |  | 551,215 |
Substandard | 134,126 |  |  | 395,806 |  |  | 55,083 |  |  | 31,213 |  |  | — |  |  | 68,289 |  |  | 6,930 |  |  | 60,957 |  |  | 797 |  |  | 753,201 |
Doubtful | 125,766 |  |  | 81,984 |  |  | 30,513 |  |  | 24,248 |  |  | — |  |  | 11,129 |  |  | 1,690 |  |  | 22,422 |  |  | 1,122 |  |  | 298,874 |
Ungraded | 3,955 |  |  | 2,744 |  |  | — |  |  | — |  |  | — |  |  | 49,141 |  |  | 15,226 |  |  | 1 |  |  | 3,404 |  |  | 74,471 |
Total | $ | 405,658 |  |  | $ | 1,310,083 |  |  | $ | 159,007 |  |  | $ | 137,253 |  |  | $ | 162 |  |  | $ | 380,405 |  |  | $ | 39,709 |  |  | $ | 115,126 |  |  | $ | 10,047 |  |  | $ | 2,557,450 |
December 31, 2010 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 98,449 |  |  | $ | 430,526 |  |  | $ | 77,162 |  |  | $ | 46,450 |  |  | $ | — |  |  | $ | 39,492 |  |  | $ | 5,051 |  |  | $ | — |  |  | $ | 6,296 |  |  | $ | 703,426 |
Special mention | 90,203 |  |  | 261,273 |  |  | 40,756 |  |  | 36,566 |  |  | — |  |  | 17,041 |  |  | 3,630 |  |  | 3,549 |  |  | 1,231 |  |  | 454,249 |
Substandard | 79,631 |  |  | 326,036 |  |  | 65,896 |  |  | 41,936 |  |  | — |  |  | 11,609 |  |  | 3,462 |  |  | 67,594 |  |  | 691 |  |  | 596,855 |
Doubtful | 100,137 |  |  | 71,175 |  |  | 26,847 |  |  | 7,525 |  |  | — |  |  | 6,353 |  |  | 1,837 |  |  | 34,662 |  |  | 438 |  |  | 248,974 |
Ungraded | — |  |  | 54 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,886 |  |  | — |  |  | 8 |  |  | 3,948 |
Total | $ | 368,420 |  |  | $ | 1,089,064 |  |  | $ | 210,661 |  |  | $ | 132,477 |  |  | $ | — |  |  | $ | 74,495 |  |  | $ | 17,866 |  |  | $ | 105,805 |  |  | $ | 8,664 |  |  | $ | 2,007,452 |
The aging of the outstanding loans and leases, by class, at September 30, 2011 and December 31, 2010 (excluding loans impaired at acquisition date) is provided in the table below. The calculation of days past due begins on the day after payment is due and includes all days through which all required interest or principal have not been paid. Loans and leases 30 days or less past due are considered current due to certain grace periods that allow borrowers to make payments within a stated period after the due date and still remain in compliance with the loan agreement.
| 31-60 Days Past Due |  | 61-90 Days Past Due |  | Greater Than 90 Days |  | Total Past Due |  | Current |  | Total Loans and Leases
September 30, 2011 |  |  |  |  |  |  |  |  |  |  |
Noncovered loans and leases: |  |  |  |  |  |  |  |  |  |  |
Construction and land development - commercial | $ | 1,506 |  |  | $ | 131 |  |  | $ | 2,089 |  |  | $ | 3,726 |  |  | $ | 412,993 |  |  | $ | 416,719 |
Commercial mortgage | 13,381 |  |  | 3,765 |  |  | 16,838 |  |  | 33,984 |  |  | 4,962,052 |  |  | 4,996,036 |
Other commercial real estate | 93 |  |  | — |  |  | 965 |  |  | 1,058 |  |  | 143,480 |  |  | 144,538 |
Commercial and industrial | 1,417 |  |  | 1,092 |  |  | 1,548 |  |  | 4,057 |  |  | 1,793,524 |  |  | 1,797,581 |
Lease financing | 879 |  |  | 180 |  |  | 96 |  |  | 1,155 |  |  | 302,884 |  |  | 304,039 |
Other | 18 |  |  | — |  |  | — |  |  | 18 |  |  | 158,764 |  |  | 158,782 |
Residential mortgage | 2,303 |  |  | 3,022 |  |  | 15,835 |  |  | 21,160 |  |  | 795,578 |  |  | 816,738 |
Revolving mortgage | 3,987 |  |  | 924 |  |  | 6,081 |  |  | 10,992 |  |  | 2,291,490 |  |  | 2,302,482 |
Construction and land development - non-commercial | 4,204 |  |  | — |  |  | 514 |  |  | 4,718 |  |  | 134,467 |  |  | 139,185 |
Consumer | 2,369 |  |  | 1,361 |  |  | 1,541 |  |  | 5,271 |  |  | 522,155 |  |  | 527,426 |
Total noncovered loans and leases | 30,157 |  |  | 10,475 |  |  | 45,507 |  |  | 86,139 |  |  | 11,517,387 |  |  | 11,603,526 |
Covered loans: |  |  |  |  |  |  |  |  |  |  |
Construction and land development - commercial | 9,248 |  |  | 7,246 |  |  | 33,566 |  |  | 50,060 |  |  | 183,289 |  |  | 233,349 |
Commercial mortgage | 23,027 |  |  | 20,511 |  |  | 81,292 |  |  | 124,830 |  |  | 1,059,874 |  |  | 1,184,704 |
Other commercial real estate | 4,891 |  |  | — |  |  | 6,360 |  |  | 11,251 |  |  | 107,242 |  |  | 118,493 |
Commercial and industrial | 3,145 |  |  | 1,687 |  |  | 5,138 |  |  | 9,970 |  |  | 96,672 |  |  | 106,642 |
Lease financing | — |  |  | — |  |  | — |  |  | — |  |  | 162 |  |  | 162 |
Residential mortgage | 3,598 |  |  | 1,937 |  |  | 26,301 |  |  | 31,836 |  |  | 303,185 |  |  | 335,021 |
Revolving mortgage | 404 |  |  | — |  |  | — |  |  | 404 |  |  | 29,366 |  |  | 29,770 |
Construction and land development - non-commercial | — |  |  | 814 |  |  | 13,781 |  |  | 14,595 |  |  | 26,117 |  |  | 40,712 |
Consumer and other | 245 |  |  | 154 |  |  | 1,139 |  |  | 1,538 |  |  | 7,354 |  |  | 8,892 |
Total covered loans | 44,558 |  |  | 32,349 |  |  | 167,577 |  |  | 244,484 |  |  | 1,813,261 |  |  | 2,057,745 |
Total loans and leases | $ | 74,715 |  |  | $ | 42,824 |  |  | $ | 213,084 |  |  | $ | 330,623 |  |  | $ | 13,330,648 |  |  | $ | 13,661,271 |
December 31, 2010 |  |  |  |  |  |  |  |  |  |  |
Noncovered loans and leases: |  |  |  |  |  |  |  |  |  |  |
Construction and land development - commercial | $ | 3,047 |  |  | $ | 6,092 |  |  | $ | 4,208 |  |  | $ | 13,347 |  |  | $ | 325,582 |  |  | $ | 338,929 |
Commercial mortgage | 22,913 |  |  | 7,521 |  |  | 20,425 |  |  | 50,859 |  |  | 4,687,003 |  |  | 4,737,862 |
Other commercial real estate | 35 |  |  | 290 |  |  | 621 |  |  | 946 |  |  | 148,764 |  |  | 149,710 |
Commercial and industrial | 4,434 |  |  | 1,473 |  |  | 3,744 |  |  | 9,651 |  |  | 1,859,839 |  |  | 1,869,490 |
Lease financing | 2,266 |  |  | 141 |  |  | 630 |  |  | 3,037 |  |  | 298,252 |  |  | 301,289 |
Other | 40 |  |  | 75 |  |  | — |  |  | 115 |  |  | 181,900 |  |  | 182,015 |
Residential mortgage | 13,051 |  |  | 4,762 |  |  | 20,651 |  |  | 38,464 |  |  | 840,328 |  |  | 878,792 |
Revolving mortgage | 3,682 |  |  | 1,424 |  |  | 2,320 |  |  | 7,426 |  |  | 2,226,427 |  |  | 2,233,853 |
Construction and land development - non-commercial | 1,445 |  |  | 548 |  |  | 3,043 |  |  | 5,036 |  |  | 187,918 |  |  | 192,954 |
Consumer | 12,798 |  |  | 2,611 |  |  | 1,047 |  |  | 16,456 |  |  | 579,227 |  |  | 595,683 |
Total noncovered loans and leases | 63,711 |  |  | 24,937 |  |  | 56,689 |  |  | 145,337 |  |  | 11,335,240 |  |  | 11,480,577 |
Covered loans: |  |  |  |  |  |  |  |  |  |  |
Construction and land development - commercial | 64,372 |  |  | 8,985 |  |  | 73,997 |  |  | 147,354 |  |  | 118,078 |  |  | 265,432 |
Commercial mortgage | 43,570 |  |  | 20,308 |  |  | 88,525 |  |  | 152,403 |  |  | 816,421 |  |  | 968,824 |
Other commercial real estate | 15,008 |  |  | 2,477 |  |  | 20,453 |  |  | 37,938 |  |  | 138,019 |  |  | 175,957 |
Commercial and industrial | 9,267 |  |  | 5,899 |  |  | 28,780 |  |  | 43,946 |  |  | 79,444 |  |  | 123,390 |
Lease financing | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Residential mortgage | 4,459 |  |  | 1,352 |  |  | 3,979 |  |  | 9,790 |  |  | 53,679 |  |  | 63,469 |
Revolving mortgage | 382 |  |  | — |  |  | 337 |  |  | 719 |  |  | 8,747 |  |  | 9,466 |
Construction and land development - non-commercial | 7,701 |  |  | — |  |  | 36,412 |  |  | 44,113 |  |  | 17,432 |  |  | 61,545 |
Consumer and other | 430 |  |  | 1,649 |  |  | 978 |  |  | 3,057 |  |  | 5,607 |  |  | 8,664 |
Total covered loans | 145,189 |  |  | 40,670 |  |  | 253,461 |  |  | 439,320 |  |  | 1,237,427 |  |  | 1,676,747 |
Total loans and leases | $ | 208,900 |  |  | $ | 65,607 |  |  | $ | 310,150 |  |  | $ | 584,657 |  |  | $ | 12,572,667 |  |  | $ | 13,157,324 |
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 September 30, 2011 and December 31, 2010 (excluding loans and leases impaired as acquisition date) is as follows:
| September 30, 2011 |  | December 31, 2010
| Nonaccrual loans and leases |  | Loans and leases > 90 days and accruing |  | Nonaccrual loans and leases |  | Loans and leases > 90 days and accruing
Noncovered loans and leases: |  |  |  |  |  |  |
Construction and land development - commercial | $ | 18,569 |  |  | $ | 418 |  |  | $ | 26,796 |  |  | $ | 68 |
Commercial mortgage | 25,993 |  |  | 2,390 |  |  | 32,723 |  |  | 4,347 |
Commercial and industrial | 1,792 |  |  | 380 |  |  | 3,320 |  |  | 1,850 |
Lease financing | 83 |  |  | 17 |  |  | 806 |  |  | 298 |
Other commercial real estate | 1,217 |  |  | — |  |  | 777 |  |  | 80 |
Construction and land development - non-commercial | — |  |  | 514 |  |  | 1,330 |  |  | 1,122 |
Residential mortgage | 11,949 |  |  | 6,604 |  |  | 13,062 |  |  | 6,640 |
Revolving mortgage | — |  |  | 6,066 |  |  | — |  |  | 2,301 |
Consumer | — |  |  | 1,498 |  |  | — |  |  | 1,795 |
Total noncovered loans and leases | $ | 59,603 |  |  | $ | 17,887 |  |  | $ | 78,814 |  |  | $ | 18,501 |
Covered loans and leases: |  |  |  |  |  |  |
Construction and land development - commercial | $ | 54,101 |  |  | $ | 15,163 |  |  | $ | 20,609 |  |  | $ | 55,503 |
Commercial mortgage | 158,345 |  |  | 13,379 |  |  | 75,633 |  |  | 37,819 |
Other commercial real estate | 27,468 |  |  | 5,522 |  |  | 7,299 |  |  | 15,068 |
Commercial and industrial | 8,467 |  |  | 212 |  |  | 8,488 |  |  | 22,829 |
Residential mortgage | 29,308 |  |  | 5,604 |  |  | 3,594 |  |  | 2,010 |
Revolving mortgage | — |  |  | — |  |  | 403 |  |  | 190 |
Construction and land development - non-commercial | 13,239 |  |  | 542 |  |  | 43,836 |  |  | 7,460 |
Consumer and other | 961 |  |  | 860 |  |  | 162 |  |  | 824 |
Total covered loans and leases | $ | 291,889 |  |  | $ | 41,282 |  |  | $ | 160,024 |  |  | $ | 141,703 |
Total loans and leases | $ | 351,492 |  |  | $ | 59,169 |  |  | $ | 238,838 |  |  | $ | 160,204 |
Acquired Loans When the fair values of covered loans were established, certain loans were identified as impaired. The following table provides changes in the carrying value of acquired loans during the nine months ended September 30, 2011 and 2010:
| 2011 |  | 2010
| Impaired at acquisition date |  | All other acquired loans |  | Impaired as acquisition date |  | All other acquired loans
Balance, January 1 | $ | 330,705 |  |  | $ | 1,676,747 |  |  | $ | 75,368 |  |  | $ | 1,097,652 |
Fair value of acquired loans covered by loss share agreements | 303,713 |  |  | 777,800 |  |  | 412,627 |  |  | 1,138,513 |
Reductions for repayments, foreclosures and decreases in fair value | (134,713 | ) |  | (396,802 | ) |  | (87,249 | ) |  | (414,251 | )
Balance, September 30 | $ | 499,705 |  |  | $ | 2,057,745 |  |  | $ | 400,746 |  |  | $ | 1,821,914 |
Outstanding principal balance at September 30 | $ | 1,943,770 |  |  | $ | 2,705,324 |  |  | $ | 742,010 |  |  | $ | 2,535,003 |
The timing and amounts of cash flow analyses were prepared at the acquisition dates for all acquired loans deemed impaired at acquisition except loans acquired in the VB and TVB transactions where the timing of cash flows was not estimated and those analyses are used to determine the amount of accretable yield recognized on those loans. Subsequent changes in cash flow estimates result in changes to the amount of accretable yield to be recognized. BancShares did not initially estimate the timing of cash flows for loans acquired in the TVB or VB transactions at the dates of the acquisitions and, therefore, the cost recovery method was being applied to these loans unless cash flow estimates in the later periods indicated subsequent improvement that would lead to the recognition of accretable yield. The following table documents changes to the amount of accretable yield for the first nine months of 2011 and 2010. For acquired loans, improved cash flow estimates and receipt of unscheduled loan payments result in the reclassification of nonaccretable yield to accretable yield.
| 2011 |  | 2010
Balance, January 1 | $ | 164,586 |  |  | $ | — |
Additions | 79,526 |  |  | 63,908 |
Accretion | (192,556 | ) |  | (100,299 | )
Reclassifications from nonaccretable difference | 128,535 |  |  | 157,097 |
Disposals | — |  |  | (1,070 | )
Balance, September 30 | $ | 180,091 |  |  | $ | 119,636 |
For loans acquired in the United Western and CCB transactions, the contractually required payments including principal and interest, expected cash flows to be collected and fair values as of the acquisition date were as follows:
| Impaired at Acquisition Date |  | All Other Acquired Loans
Contractually required payments | $ | 746,461 |  |  | $ | 944,898 |
Cash flows expected to be collected | 384,098 |  |  | 805,811 |
Fair value at acquisition date | 303,713 |  |  | 777,800 |
The recorded fair values of loans acquired in the United Western and CCB transactions as of their respective acquisition dates by loan class were as follows:
| United Western | CCB
| January 21, 2011 | July 8, 2011
Commercial: |  |
Construction and land development | $ | 52,889 |  | $ | 113,519 |
Commercial mortgage | 304,769 |  | 31,370 |
Other commercial real estate | 8,434 |  | 4,931 |
Commercial and industrial | 75,523 |  | 39,213 |
Lease financing | 316 |  |
Total commercial loans | 441,931 |  | 189,033 |
Non-commercial: |  |
Residential mortgage | 260,389 |  | 64,742 |
Revolving mortgage | 12,073 |  | 29,332 |
Construction and land development | 39,827 |  | 33,461 |
Consumer | 5,131 |  | 5,594 |
Total non-commercial loans | 317,420 |  | 133,129 |
Total covered loans acquired | $ | 759,351 |  | $ | 322,162 |

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