XML 89 R11.htm IDEA: XBRL DOCUMENT
v2.4.0.6

LOANS AND LEASES | 12 Months Ended
--- | ---
Dec. 31, 2012
Loans and Leases Receivable Disclosure [Abstract] |
Loans And Leases | LOANS AND LEASES Loans and leases outstanding by segment and class at December 31, 2012, and 2011, are as follows:
| 2012 |  | 2011
Covered loans | $ | 1,809,235 |  |  | $ | 2,362,152 |
Noncovered loans and leases: |  |  |
Commercial: |  |  |
Construction and land development | 309,190 |  |  | 381,163 |
Commercial mortgage | 5,341,839 |  |  | 5,104,993 |
Other commercial real estate | 160,980 |  |  | 144,771 |
Commercial and industrial | 1,726,126 |  |  | 1,764,407 |
Lease financing | 330,679 |  |  | 312,869 |
Other | 125,681 |  |  | 158,369 |
Total commercial loans | 7,994,495 |  |  | 7,866,572 |
Noncommercial: |  |  |
Residential mortgage | 822,889 |  |  | 784,118 |
Revolving mortgage | 2,210,133 |  |  | 2,296,306 |
Construction and land development | 131,992 |  |  | 137,271 |
Consumer | 416,606 |  |  | 497,370 |
Total noncommercial loans | 3,581,620 |  |  | 3,715,065 |
Total noncovered loans and leases | 11,576,115 |  |  | 11,581,637 |
Total loans and leases | $ | 13,385,350 |  |  | $ | 13,943,789 |
| 2012 |  | 2011
| 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 | $ | 71,225 |  |  | $ | 166,681 |  |  | $ | 237,906 |  |  | $ | 117,603 |  |  | $ | 221,270 |  |  | $ | 338,873 |
Commercial mortgage | 107,281 |  |  | 947,192 |  |  | 1,054,473 |  |  | 138,465 |  |  | 1,122,124 |  |  | 1,260,589 |
Other commercial real estate | 35,369 |  |  | 71,750 |  |  | 107,119 |  |  | 33,370 |  |  | 125,024 |  |  | 158,394 |
Commercial and industrial | 3,932 |  |  | 45,531 |  |  | 49,463 |  |  | 27,802 |  |  | 85,640 |  |  | 113,442 |
Lease financing | — |  |  | — |  |  | — |  |  | — |  |  | 57 |  |  | 57 |
Other | — |  |  | 1,074 |  |  | 1,074 |  |  | — |  |  | 1,330 |  |  | 1,330 |
Total commercial loans | 217,807 |  |  | 1,232,228 |  |  | 1,450,035 |  |  | 317,240 |  |  | 1,555,445 |  |  | 1,872,685 |
Noncommercial: |  |  |  |  |  |  |  |  |  |  |
Residential mortgage | 48,077 |  |  | 249,849 |  |  | 297,926 |  |  | 46,130 |  |  | 281,438 |  |  | 327,568 |
Revolving mortgage | 9,606 |  |  | 29,104 |  |  | 38,710 |  |  | 15,350 |  |  | 36,202 |  |  | 51,552 |
Construction and land development | 15,136 |  |  | 5,657 |  |  | 20,793 |  |  | 78,108 |  |  | 27,428 |  |  | 105,536 |
Consumer | — |  |  | 1,771 |  |  | 1,771 |  |  | 1,477 |  |  | 3,334 |  |  | 4,811 |
Total noncommercial loans | 72,819 |  |  | 286,381 |  |  | 359,200 |  |  | 141,065 |  |  | 348,402 |  |  | 489,467 |
Total covered loans | $ | 290,626 |  |  | $ | 1,518,609 |  |  | $ | 1,809,235 |  |  | $ | 458,305 |  |  | $ | 1,903,847 |  |  | $ | 2,362,152 |
At December 31, 2012, 26.1 percent of noncovered loans and leases were to customers in medical-related fields, compared to 26.5 percent at December 31, 2011. These loans are primarily commercial mortgage loans secured by owner-occupied commercial real estate. There were no foreign loans or loans to finance highly leveraged transactions during 2012 or 2011. Substantially all noncovered loans and leases are to customers domiciled within BancShares’ principal market areas. Certain loans acquired in FDIC-assisted transactions that are covered under loss share agreements were made to borrowers that are not within the principal market areas of the originating banks. At December 31, 2012, noncovered loans totaling $2,570,773 were pledged to secure debt obligations, compared to $2,492,644 at December 31, 2011. 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, noncommercial 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 December 31, 2012, and December 31, 2011, relate to business credit cards and tobacco buyout loans. Tobacco buyout loans with an outstanding balance of $43,110 at December 31, 2012, and $63,129 at December 31, 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, noncommercial 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 December 31, 2012, and 2011 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 noncovered loans
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 274,480 |  |  | $ | 5,018,677 |  |  | $ | 151,549 |  |  | $ | 1,564,862 |  |  | $ | 325,626 |  |  | $ | 124,083 |  |  | $ | 7,459,277 |
Special mention | 14,666 |  |  | 161,789 |  |  | 2,812 |  |  | 18,368 |  |  | 1,601 |  |  | 837 |  |  | 200,073 |
Substandard | 18,761 |  |  | 145,980 |  |  | 5,038 |  |  | 24,059 |  |  | 1,663 |  |  | 756 |  |  | 196,257 |
Doubtful | 952 |  |  | 12,822 |  |  | 98 |  |  | 1,693 |  |  | 771 |  |  | — |  |  | 16,336 |
Ungraded | 331 |  |  | 2,571 |  |  | 1,483 |  |  | 117,144 |  |  | 1,018 |  |  | 5 |  |  | 122,552 |
Total | $ | 309,190 |  |  | $ | 5,341,839 |  |  | $ | 160,980 |  |  | $ | 1,726,126 |  |  | $ | 330,679 |  |  | $ | 125,681 |  |  | $ | 7,994,495 |
December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 332,742 |  |  | $ | 4,749,254 |  |  | $ | 130,586 |  |  | $ | 1,556,651 |  |  | $ | 306,225 |  |  | $ | 157,089 |  |  | $ | 7,232,547 |
Special mention | 18,973 |  |  | 220,235 |  |  | 5,821 |  |  | 36,951 |  |  | 4,537 |  |  | 1,271 |  |  | 287,788 |
Substandard | 28,793 |  |  | 129,391 |  |  | 7,794 |  |  | 28,240 |  |  | 2,107 |  |  | — |  |  | 196,325 |
Doubtful | 17 |  |  | 1,164 |  |  | 377 |  |  | 643 |  |  | — |  |  | — |  |  | 2,201 |
Ungraded | 638 |  |  | 4,949 |  |  | 193 |  |  | 141,922 |  |  | — |  |  | 9 |  |  | 147,711 |
Total | $ | 381,163 |  |  | $ | 5,104,993 |  |  | $ | 144,771 |  |  | $ | 1,764,407 |  |  | $ | 312,869 |  |  | $ | 158,369 |  |  | $ | 7,866,572 |
| Noncommercial noncovered loans and leases
| Residential mortgage |  | Revolving mortgage |  | Construction and land development |  | Consumer |  | Total non- commercial noncovered loans
December 31, 2012 |  |  |  |  |  |  |  |  |
Current | $ | 786,626 |  |  | $ | 2,190,186 |  |  | $ | 128,764 |  |  | $ | 409,218 |  |  | $ | 3,514,794 |
31-60 days past due | 15,711 |  |  | 12,868 |  |  | 1,941 |  |  | 4,405 |  |  | 34,925 |
61-90 days past due | 7,559 |  |  | 3,200 |  |  | 490 |  |  | 1,705 |  |  | 12,954 |
Over 90 days past due | 12,993 |  |  | 3,879 |  |  | 797 |  |  | 1,278 |  |  | 18,947 |
Total | $ | 822,889 |  |  | $ | 2,210,133 |  |  | $ | 131,992 |  |  | $ | 416,606 |  |  | $ | 3,581,620 |
December 31, 2011 |  |  |  |  |  |  |  |  |
Current | $ | 757,113 |  |  | $ | 2,286,511 |  |  | $ | 135,774 |  |  | $ | 491,142 |  |  | $ | 3,670,540 |
31-60 days past due | 11,790 |  |  | 3,437 |  |  | 798 |  |  | 3,514 |  |  | 19,539 |
61-90 days past due | 2,686 |  |  | 2,042 |  |  | 127 |  |  | 1,271 |  |  | 6,126 |
Over 90 days past due | 12,529 |  |  | 4,316 |  |  | 572 |  |  | 1,443 |  |  | 18,860 |
Total | $ | 784,118 |  |  | $ | 2,296,306 |  |  | $ | 137,271 |  |  | $ | 497,370 |  |  | $ | 3,715,065 |
| 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
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 17,010 |  |  | $ | 376,974 |  |  | $ | 33,570 |  |  | $ | 19,451 |  |  | $ | — |  |  | $ | 172,165 |  |  | $ | 29,540 |  |  | $ | 334 |  |  | $ | 1,617 |  |  | $ | 650,661 |
Special mention | 25,734 |  |  | 259,264 |  |  | 17,518 |  |  | 12,465 |  |  | — |  |  | 14,863 |  |  | 1,736 |  |  | — |  |  | 34 |  |  | 331,614 |
Substandard | 105,061 |  |  | 344,542 |  |  | 44,335 |  |  | 14,698 |  |  | — |  |  | 83,193 |  |  | 7,434 |  |  | 17,190 |  |  | 239 |  |  | 616,692 |
Doubtful | 87,445 |  |  | 73,016 |  |  | 11,696 |  |  | 2,757 |  |  | — |  |  | 4,268 |  |  | — |  |  | 3,269 |  |  | 117 |  |  | 182,568 |
Ungraded | 2,656 |  |  | 677 |  |  | — |  |  | 92 |  |  | — |  |  | 23,437 |  |  | — |  |  | — |  |  | 838 |  |  | 27,700 |
Total | $ | 237,906 |  |  | $ | 1,054,473 |  |  | $ | 107,119 |  |  | $ | 49,463 |  |  | $ | — |  |  | $ | 297,926 |  |  | $ | 38,710 |  |  | $ | 20,793 |  |  | $ | 2,845 |  |  | $ | 1,809,235 |
December 31, 2011 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pass | $ | 29,321 |  |  | $ | 397,526 |  |  | $ | 49,259 |  |  | $ | 36,409 |  |  | $ | 57 |  |  | $ | 189,794 |  |  | $ | 34,164 |  |  | $ | 4,958 |  |  | $ | 2,393 |  |  | $ | 743,881 |
Special mention | 92,758 |  |  | 348,482 |  |  | 33,754 |  |  | 32,257 |  |  | — |  |  | 25,464 |  |  | 3,566 |  |  | 13,394 |  |  | 942 |  |  | 550,617 |
Substandard | 125,158 |  |  | 427,996 |  |  | 58,351 |  |  | 21,914 |  |  | — |  |  | 70,582 |  |  | 9,863 |  |  | 72,349 |  |  | 1,096 |  |  | 787,309 |
Doubtful | 87,936 |  |  | 84,871 |  |  | 17,030 |  |  | 22,862 |  |  | — |  |  | 13,833 |  |  | 3,959 |  |  | 14,835 |  |  | 982 |  |  | 246,308 |
Ungraded | 3,700 |  |  | 1,714 |  |  | — |  |  | — |  |  | — |  |  | 27,895 |  |  | — |  |  | — |  |  | 728 |  |  | 34,037 |
Total | $ | 338,873 |  |  | $ | 1,260,589 |  |  | $ | 158,394 |  |  | $ | 113,442 |  |  | $ | 57 |  |  | $ | 327,568 |  |  | $ | 51,552 |  |  | $ | 105,536 |  |  | $ | 6,141 |  |  | $ | 2,362,152 |
The aging of the outstanding loans and leases by class at December 31, 2012, and 2011, (excluding loans acquired with deteriorated credit quality) 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 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
December 31, 2012 |  |  |  |  |  |  |  |  |  |  |
Noncovered loans and leases: |  |  |  |  |  |  |  |  |  |  |
Construction and land development - commercial | $ | 927 |  |  | $ | — |  |  | $ | 7,878 |  |  | $ | 8,805 |  |  | $ | 300,385 |  |  | $ | 309,190 |
Commercial mortgage | 21,075 |  |  | 3,987 |  |  | 20,318 |  |  | 45,380 |  |  | 5,296,459 |  |  | 5,341,839 |
Other commercial real estate | 387 |  |  | 1,240 |  |  | 1,034 |  |  | 2,661 |  |  | 158,319 |  |  | 160,980 |
Commercial and industrial | 6,205 |  |  | 1,288 |  |  | 1,614 |  |  | 9,107 |  |  | 1,717,019 |  |  | 1,726,126 |
Lease financing | 991 |  |  | 138 |  |  | 621 |  |  | 1,750 |  |  | 328,929 |  |  | 330,679 |
Other | 18 |  |  | 13 |  |  | — |  |  | 31 |  |  | 125,650 |  |  | 125,681 |
Residential mortgage | 15,711 |  |  | 7,559 |  |  | 12,993 |  |  | 36,263 |  |  | 786,626 |  |  | 822,889 |
Revolving mortgage | 12,868 |  |  | 3,200 |  |  | 3,879 |  |  | 19,947 |  |  | 2,190,186 |  |  | 2,210,133 |
Construction and land development - noncommercial | 1,941 |  |  | 490 |  |  | 797 |  |  | 3,228 |  |  | 128,764 |  |  | 131,992 |
Consumer | 4,405 |  |  | 1,705 |  |  | 1,278 |  |  | 7,388 |  |  | 409,218 |  |  | 416,606 |
Total noncovered loans and leases | $ | 64,528 |  |  | $ | 19,620 |  |  | $ | 50,412 |  |  | $ | 134,560 |  |  | $ | 11,441,555 |  |  | $ | 11,576,115 |
| 31-60 days past due |  | 61-90 days past due |  | Greater than 90 days |  | Total past due |  | Current |  | Total loans and leases
December 31, 2011 |  |  |  |  |  |  |  |  |  |  |
Noncovered loans and leases: |  |  |  |  |  |  |  |  |  |  |
Construction and land development - commercial | $ | 2,623 |  |  | $ | 1,494 |  |  | $ | 2,177 |  |  | $ | 6,294 |  |  | $ | 374,869 |  |  | $ | 381,163 |
Commercial mortgage | 18,308 |  |  | 4,438 |  |  | 15,626 |  |  | 38,372 |  |  | 5,066,621 |  |  | 5,104,993 |
Other commercial real estate | 657 |  |  | 147 |  |  | 561 |  |  | 1,365 |  |  | 143,406 |  |  | 144,771 |
Commercial and industrial | 5,235 |  |  | 1,230 |  |  | 1,438 |  |  | 7,903 |  |  | 1,756,504 |  |  | 1,764,407 |
Lease financing | 637 |  |  | 212 |  |  | 620 |  |  | 1,469 |  |  | 311,400 |  |  | 312,869 |
Other | — |  |  | — |  |  | — |  |  | — |  |  | 158,369 |  |  | 158,369 |
Residential mortgage | 11,790 |  |  | 2,686 |  |  | 12,529 |  |  | 27,005 |  |  | 757,113 |  |  | 784,118 |
Revolving mortgage | 3,437 |  |  | 2,042 |  |  | 4,316 |  |  | 9,795 |  |  | 2,286,511 |  |  | 2,296,306 |
Construction and land development - noncommercial | 798 |  |  | 127 |  |  | 572 |  |  | 1,497 |  |  | 135,774 |  |  | 137,271 |
Consumer | 3,514 |  |  | 1,271 |  |  | 1,443 |  |  | 6,228 |  |  | 491,142 |  |  | 497,370 |
Total noncovered loans and leases | $ | 46,999 |  |  | $ | 13,647 |  |  | $ | 39,282 |  |  | $ | 99,928 |  |  | $ | 11,481,709 |  |  | $ | 11,581,637 |
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 December 31, 2012, and December 31, 2011, (excluding loans and leases acquired with deteriorated credit quality) is as follows:
| December 31, 2012 |  | December 31, 2011
| 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 | $ | 14,930 |  |  | $ | 541 |  |  | $ | 15,102 |  |  | $ | 313 |
Commercial mortgage | 48,869 |  |  | 1,671 |  |  | 23,748 |  |  | 3,107 |
Commercial and industrial | 8,635 |  |  | 466 |  |  | 1,864 |  |  | 320 |
Lease financing | 1,075 |  |  | — |  |  | 200 |  |  | 554 |
Other commercial real estate | 2,319 |  |  | — |  |  | 1,170 |  |  | — |
Construction and land development - noncommercial | 668 |  |  | 111 |  |  | — |  |  | 572 |
Residential mortgage | 12,603 |  |  | 3,337 |  |  | 10,657 |  |  | 4,227 |
Revolving mortgage | — |  |  | 3,877 |  |  | — |  |  | 4,306 |
Consumer and other | 746 |  |  | 1,269 |  |  | — |  |  | 1,441 |
Total noncovered loans and leases | $ | 89,845 |  |  | $ | 11,272 |  |  | $ | 52,741 |  |  | $ | 14,840 |
Other risk elements related to lending activities include OREO and restructured loans. BancShares held $139,963 and $153,330 in noncovered restructured loans and $43,513 and $50,399 in noncovered OREO at December 31, 2012, and 2011, respectively. At December 31, 2012, and 2011, respectively, $50,830 and $29,534 of noncovered restructured loans were also on nonaccrual status. BancShares does not have any significant outstanding commitments to borrowers that have restructured existing loans to more favorable terms due to their financial difficulties. Interest income on total nonperforming loans and leases that would have been recorded had these loans and leases been performing was $27,397, $23,326 and $18,519 respectively, during 2012, 2011 and 2010. When loans and leases are on nonaccrual status, any payments received are applied on a cash basis with all cash receipts applied first to principal and any payments received in excess of the unpaid principal balance being applied to interest. The amount of cash basis interest income recognized during 2012, 2011 and 2010 was not material. 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 years ended December 31, 2012, and 2011:
| 2012 |  | 2011
| Impaired at acquisition date |  | All other acquired loans |  | Impaired at acquisition date |  | All other acquired loans
Balance, January 1 | $ | 458,305 |  |  | $ | 1,903,847 |  |  | $ | 330,705 |  |  | $ | 1,676,747 |
Fair value at acquisition date of acquired loans covered under loss share agreements | — |  |  | — |  |  | 302,340 |  |  | 777,800 |
Reductions for repayments, foreclosures and changes in carrying value, net of accretion | (167,679 | ) |  | (385,238 | ) |  | (174,740 | ) |  | (550,700 | )
Balance, December 31 | $ | 290,626 |  |  | $ | 1,518,609 |  |  | $ | 458,305 |  |  | $ | 1,903,847 |
Outstanding principal balance, December 31 | $ | 1,136,377 |  |  | $ | 2,145,581 |  |  | $ | 1,334,299 |  |  | $ | 2,537,652 |
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. No estimate of the timing of cash flows was initially made 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 carrying value of loans on the cost recovery method was $74,479 at December 31, 2012, and $200,819 at December 31, 2011. Prior to 2012, the cost recovery method was being applied to nonperforming loans acquired from the TVB, VB, First Regional and United Western transactions unless available cash flow estimates indicated subsequent improvement that would lead to the recognition of accretable yield. During the third and fourth quarters of 2012, loans acquired in the TVB, VB, First Regional and United Western transactions were installed on an acquired loan accounting system that enabled better estimations of cash flows for all loans. As a result of the four banks being converted to the acquired loan accounting system during 2012, there was a significant reduction in loans accounted for under the cost recovery method. The cost recovery method continues to be applied to loans when the timing of the cash flows is no longer reasonably estimable due to subsequent nonperformance by the borrower or uncertainty in the ultimate disposition of the asset. The following table documents changes to the amount of accretable yield for the years ended December 31, 2012, and 2011. For acquired loans, improved cash flow estimates and receipt of unscheduled loan payments result in the reclassification of nonaccretable yield to accretable yield. During 2012, the improved ability to estimate cash flows due to expanded use of an acquired loan accounting system also contributed to significant increases in accretable yield. Accretable yield resulting from the improved ability to estimate future cash flows generally does not represent amounts previously identified as nonaccretable difference.
| 2012 |  | 2011
Balance, January 1 | $ | 276,690 |  |  | $ | 164,586 |
Additions for acquired loans | — |  |  | 106,520 |
Accretion | (304,023 | ) |  | (319,429 | )
Reclassifications from nonaccretable difference | 353,708 |  |  | 325,013 |
Changes in expected cash flows that do not affect nonaccretable difference | 213,189 |  |  | — |
Balance, December 31 | $ | 539,564 |  |  | $ | 276,690 |
Loans held for sale In each period, BancShares originated much of its residential mortgage loan production through correspondent institutions. Loan sale activity for 2012, 2011 and 2010 is summarized below:
| 2012 |  | 2011 |  | 2010
Loans held for sale at December 31 | $ | 86,333 |  |  | $ | 92,539 |  |  | $ | 88,933 |
For the year ended December 31: |  |  |  |  |
Loans sold | 581,911 |  |  | 509,647 |  |  | 583,750 |
Net gain on sale of loans held for sale | 7,465 |  |  | 8,751 |  |  | 8,858 |

X
- Details
Name: | us-gaap_LoansAndLeasesReceivableDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5074-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5162-111524 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5066-111524 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration