Loans and Leases

12 Months Ended

Dec. 31, 2012

Loans and Leases [Abstract]

Loans and Leases

Note 5. Loans and Leases

Summary of Major Loan and Lease Categories

	At December 31,
(Dollars in thousands)	2012			2011
Commercial, financial and agricultural	$	468,421		$	477,662
Real estate-commercial		530,122			514,953
Real estate-construction		91,250			90,397
Real estate-residential secured for business purpose		35,179			32,481
Real estate-residential secured for personal purpose		146,526			132,245
Real estate-home equity secured for personal purpose		82,727			80,478
Loans to individuals		43,780			44,965
Lease financings		83,857			73,225
Total loans and leases held for investment, net of deferred income	$	1,481,862		$	1,446,406
Unearned lease income, included in the above table	$	(12,355	)	$	(9,965	)
Net deferred costs (fees), included in the above table	$	1,432		$	876
Overdraft deposits included in the above table	$	128		$	123

Overdraft deposits are re-classified as loans and are included in the total loans and leases on the balance sheet.

The Corporation is a lessor of primarily equipment under agreements expiring at various dates through the year 2019. At December 31, 2012 and 2011, the schedule of minimum lease payments receivable is as follows:

	At December 31
(Dollars in thousands)	2012			2011
Within 1 year	$	37,750		$	37,552
After 1 year through 2 years		25,917			22,670
After 2 years through 3 years		17,321			13,688
After 3 years through 4 years		10,728			6,769
After 4 years through 5 years		4,356			2,461
Thereafter		140			50
Total future minimum lease payments receivable		96,212			83,190
Less: Unearned income		(12,355	)		(9,965	)
Total lease financing receivables, net of unearned income	$	83,857		$	73,225

Age Analysis of Past Due Loans and Leases

The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases greater than 90 days past due which are accruing interest at December 31, 2012 and 2011:

(Dollars in thousands)	30-59 Days Past Due*		60-89 Days Past Due*		Greater Than 90 Days Past Due*		Total Past Due*		Current*		Total Loans and Leases Held for Investment		Recorded Investment Greater than 90 Days Past Due and Accruing Interest*
At December 31, 2012
Commercial, financial and agricultural	$	416	$	95	$	—	$	511	$	464,588	$	468,421	$	—
Real estate-commercial real estate and construction:
Commercial real estate		1,173		—		—		1,173		504,086		530,122		—
Construction		306		—		—		306		74,959		91,250		—
Real estate-residential and home equity:
Residential secured for business purpose		1,663		—		—		1,663		33,344		35,179		—
Residential secured for personal purpose		1,617		152		—		1,769		143,953		146,526		—
Home equity secured for personal purpose		276		64		54		394		82,333		82,727		54
Loans to individuals		551		115		347		1,013		42,729		43,780		347
Lease financings		1,001		273		40		1,314		82,138		83,857		40
Total	$	7,003	$	699	$	441	$	8,143	$	1,428,130	$	1,481,862	$	441
At December 31, 2011
Commercial, financial and agricultural	$	3,741	$	33	$	—	$	3,774	$	469,197	$	477,662	$	—
Real estate-commercial real estate and construction:
Commercial real estate		2,212		723		—		2,935		491,498		514,953		—
Construction		—		—		—		—		74,656		90,397		—
Real estate-residential and home equity:
Residential secured for business purpose		340		—		—		340		32,026		32,481		—
Residential secured for personal purpose		1,783		—		—		1,783		130,405		132,245		—
Home equity secured for personal purpose		298		68		117		483		79,968		80,478		117
Loans to individuals		386		236		204		826		44,089		44,965		204
Lease financings		1,203		544		44		1,791		70,535		73,225		44
Total	$	9,963	$	1,604	$	365	$	11,932	$	1,392,374	$	1,446,406	$	365

* Excludes impaired loans and leases.

Nonaccrual and Troubled Debt Restructured Loans and Lease Modifications

The following presents by class of loans and leases, nonaccrual loans and leases (including nonaccrual troubled debt restructured loans and lease modifications), and accruing troubled debt restructured loans and lease modifications at December 31, 2012 and 2011:

	At December 31,
	2012						2011
(Dollars in thousands)	Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Total Impaired Loans  and Leases*		Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Total Impaired Loans and Leases*
Commercial, financial and agricultural	$	2,842	$	480	$	3,322	$	4,614	$	77	$	4,691
Real estate-commercial real estate and construction:
Commercial real estate		14,340		10,523		24,863		18,085		2,435		20,520
Construction		13,588		2,397		15,985		14,479		1,262		15,741
Real estate-residential and home equity:
Residential secured for business purpose		172		—		172		107		8		115
Residential secured for personal purpose		804		—		804		57		—		57
Home equity secured for personal purpose		—		—		—		27		—		27
Loans to individuals		—		38		38		—		50		50
Lease financings		386		19		405		838		61		899
Total	$	32,132	$	13,457	$	45,589	$	38,207	$	3,893	$	42,100

* Includes non-accrual troubled debt restructured loans and lease modifications of $579 thousand and $8.6 million at December 31, 2012 and December 31, 2011, respectively.

Credit Quality Indicators

The following tables present by class, the recorded investment in loans and leases held for investment by credit quality indicator at December 31, 2012 and 2011.

The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with risk ratings of one through five are reviewed based on the relationship dollar amount with the borrower: loans with a relationship total of $2.5 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.5 million but greater than $500 thousand are reviewed annually based on the borrower’s fiscal year; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with risk ratings of six are also reviewed based on the relationship dollar amount with the borrower: loans with a relationship balance of $2.0 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.0 million but greater than $500 thousand are reviewed annually; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with risk ratings of seven are reviewed at least quarterly, and as often as monthly, at management’s discretion. Loans with risk ratings of eight through ten are reviewed monthly.

1. Cash Secured – No credit risk

2. Fully Secured – Negligible credit risk

3. Strong – Minimal credit risk

4. Satisfactory – Nominal credit risk

5. Acceptable – Moderate credit risk

6. Pre-Watch – Marginal, but stable credit risk

7. Special Mention – Potential weakness

8. Substandard – Well-defined weakness

9. Doubtful – Collection in-full improbable

10. Loss – Considered uncollectible

Commercial Credit Exposure Credit Risk by Internally Assigned Grades

	Commercial, Financial and Agricultural				Real Estate–Commercial				Real Estate–Construction				Real Estate–Residential Secured for Business Purpose
	At December 31,				At December 31,				At December 31,				At December 31,
(Dollars in thousands)	2012		2011		2012		2011		2012		2011		2012		2011
Grade:
1. Cash secured / 2. Fully secured	$	2,263	$	2,426	$	—	$	—	$	—	$	—	$	—	$	—
3. Strong		5,227		4,441		9,591		9,365		3,907		1,124		—		—
4. Satisfactory		40,747		32,730		25,837		28,517		1,783		89		335		1,309
5. Acceptable		260,042		289,835		321,194		296,499		26,331		35,207		22,764		18,990
6. Pre-watch		106,436		79,402		110,476		100,581		42,190		33,993		8,458		8,853
7. Special Mention		31,825		26,162		16,187		29,055		548		1,715		288		663
8. Substandard		21,881		40,634		45,844		49,943		16,491		18,269		3,334		2,666
9. Doubtful		—		2,032		993		993		—		—		—		—
10. Loss		—		—		—		—		—		—		—		—
Total	$	468,421	$	477,662	$	530,122	$	514,953	$	91,250	$	90,397	$	35,179	$	32,481

The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: residential real estate loans secured for a personal purpose, home equity loans secured for a personal purpose, loans to individuals and lease financings by payment activity. Nonperforming loans and leases are loans past due 90 days or more and loans and leases on non-accrual of interest as well as troubled debt restructured loans. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due. Nonperforming loans and leases are reviewed monthly. Performing loans and leases have a nominal to moderate risk of loss. Nonperforming loans and leases are loans and leases with a well-defined weakness and where collection in-full is improbable.

Credit Exposure – Real Estate–Residential Secured for Personal Purpose, Real Estate–Home Equity Secured for Personal Purpose, Loans to individuals, Lease Financing Credit Risk Profile by Payment Activity

	Real Estate–Residential Secured for Personal Purpose				Real Estate–Home Equity Secured for Personal Purpose				Loans to individuals				Lease Financing
	At December 31,				At December 31,				At December 31,				At December 31,
(Dollars in thousands)	2012		2011		2012		2011		2012		2011		2012		2011
Performing	$	145,722	$	132,188	$	82,673	$	80,334	$	43,395	$	44,711	$	83,412	$	72,282
Nonperforming		804		57		54		144		385		254		445		943
Total	$	146,526	$	132,245	$	82,727	$	80,478	$	43,780	$	44,965	$	83,857	$	73,225

Risks associated with lending activities include, among other things, the impact of changes in interest rates and economic conditions, which may adversely impact the ability of borrowers to repay outstanding loans, and impact the value of the associated collateral.

Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans with a business purpose are generally perceived as having more risk of default than residential real estate loans with a personal purpose and consumer loans. These types of loans involve larger loan balances to a single borrower or groups of related borrowers. Commercial real estate loans may be affected to a greater extent than residential loans by adverse conditions in real estate markets or the economy because commercial real estate borrowers’ ability to repay their loans depends on successful development of their properties, as well as the factors affecting residential real estate borrowers.

Commercial, financial and agricultural business loans are typically based on the borrowers’ ability to repay the loans from the cash flow of their businesses. These loans may involve greater risk because the availability of funds to repay each loan depends substantially on the success of the business itself. In addition, the collateral securing the loans often depreciates over time, is difficult to appraise and liquidate and fluctuates in value based on the success of the business.

Risk of loss on a construction loan depends largely upon whether our initial estimate of the property’s value at completion of construction equals or exceeds the cost of the property construction (including interest). During the construction phase, a number of factors can result in delays and cost overruns. If estimates of value are inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan or by seizure of collateral. Included in real estate-construction is track development financing. Risk factors related to track development financing include the demand for residential housing and the real estate valuation market. When projects move slower than anticipated, the properties may have significantly lower values than when the original underwriting was completed, resulting in lower collateral values to support the loan. Extended time frames also cause the interest carrying cost for a project to be higher than the builder projected, negatively impacting the builder’s profit and cash flow and, therefore, their ability to make principal and interest payments.

Commercial real estate loans and residential real estate loans with a business purpose secured by owner-occupied properties are dependent upon the successful operation of the borrower’s business. If the operating company suffers difficulties in terms of sales volume and/or profitability, the borrower’s ability to repay the loan may be impaired. Loans secured by properties where repayment is dependent upon payment of rent by third party tenants or the sale of the property may be impacted by loss of tenants, lower lease rates needed to attract new tenants or the inability to sell a completed project in a timely fashion and at a profit.

Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans secured for a business purpose are more susceptible to a risk of loss during a downturn in the business cycle. The Corporation has strict underwriting, review, and monitoring procedures in place, however, these procedures cannot eliminate all of the risks related to these loans.

The Corporation focuses on both assessing the borrower’s capacity and willingness to repay and on obtaining sufficient collateral. Commercial, financial and agricultural loans are generally secured by the borrower’s assets and by personal guarantees. Commercial real estate and residential real estate loans secured for a business purpose are originated primarily within the Eastern Pennsylvania market area at conservative loan-to-value ratios and often by a guarantee of the borrowers. Management closely monitors the composition and quality of the total commercial loan portfolio to ensure that any credit concentrations by borrower or industry are closely monitored.

The Corporation originates fixed-rate and adjustable-rate real estate-residential mortgage loans that are secured by the underlying 1- to 4-family residential properties for personal purposes. Credit risk exposure in this area of lending is minimized by the evaluation of the credit worthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to underwriting policies that emphasize conservative loan-to-value ratios of generally no more than 80%. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion are generally insured by private mortgage insurance.

In the real estate-home equity loan portfolio secured for a personal purpose, credit exposure is minimized by the evaluation of the creditworthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to the Corporation’s underwriting policies. Combined loan-to-value ratios are generally limited to 80%, but increased to 85% for the Corporation’s strongest profile borrower. Other credit considerations and compensating factors may warrant higher combined loan-to-value ratios.

Credit risk for direct consumer loans is controlled by strict adherence to conservative underwriting standards that consider debt-to-income levels and the creditworthiness of the borrower and, if secured, collateral values. These loans are included within the portfolio of loans to individuals.

The primary risks that are involved with lease financing receivables are credit underwriting and borrower industry concentrations. The Corporation has strict underwriting, review, and monitoring procedures in place to mitigate this risk. Risk also lies in the residual value of the underlying equipment. Residual values are subject to judgments as to the value of the underlying equipment that can be affected by changes in economic and market conditions and the financial viability of the residual guarantors and insurers. To the extent not guaranteed or assumed by a third party, or otherwise insured against, the Corporation bears the risk of ownership of the leased assets. This includes the risk that the actual value of the leased assets at the end of the lease term will be less than the residual value. The Corporation greatly reduces this risk primarily by using $1.00 buyout leases, in which the entire cost of the leased equipment is included in the contractual payments, leaving no residual payment at the end of the lease terms.

Reserve for Loan and Lease Losses and Recorded Investment in Loans and Leases

The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses, the balance in the reserve for loan and leases losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method for the years ended December 31, 2012 and 2011.

(Dollars in thousands)	Commercial, Financial and Agricultural			Real Estate– Commercial and Construction			Real  Estate– Residential Secured for Business Purpose			Real  Estate– Residential and Home Equity Secured for Personal Purpose			Loans to Individuals			Lease Financings			Unallocated		Total
For the Year Ended December 31, 2012
Reserve for loan and lease losses:
Beginning balance	$	11,262		$	13,317		$	823		$	735		$	730		$	1,344		$	1,659	$	29,870
Charge-offs*		(9,974	)		(4,803	)		—			(156	)		(578	)		(1,224	)		N/A		(16,735	)
Recoveries		484			334			60			7			130			561			N/A		1,576
Provision (recovery of provision)		9,822			(1,341	)		(244	)		394			397			645			362		10,035
Ending balance	$	11,594		$	7,507		$	639		$	980		$	679		$	1,326		$	2,021	$	24,746
For the Year Ended December 31, 2011
Reserve for loan and lease losses:
Beginning balance	$	9,630		$	15,288		$	1,333		$	544		$	734		$	1,950		$	1,419	$	30,898
Charge-offs		(6,784	)		(10,033	)		(323	)		(79	)		(968	)		(1,516	)		N/A		(19,703	)
Recoveries		318			151			43			19			174			491			N/A		1,196
Provision (recovery of provision)		8,098			7,911			(230	)		251			790			419			240		17,479
Ending balance	$	11,262		$	13,317		$	823		$	735		$	730		$	1,344		$	1,659	$	29,870

* Includes charge-offs of $1.3 million on commercial real estate loans which were subsequently transferred to loans held for sale in September 2012 and sold during the fourth quarter of 2012.

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate– Commercial and Construction		Real  Estate– Residential Secured for Business Purpose		Real  Estate– Residential and Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financings		Unallocated		Total
At December 31, 2012
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	208	$	—	$	—	$	—	$	—	$	—	$	N/A	$	208
Ending balance: collectively evaluated for impairment		11,386		7,507		639		980		679		1,326		2,021		24,538
Ending balance	$	11,594	$	7,507	$	639	$	980	$	679	$	1,326	$	2,021	$	24,746
Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	3,322	$	40,848	$	172	$	804	$	38	$	—			$	45,184
Ending balance: collectively evaluated for impairment		465,099		580,524		35,007		228,449		43,742		83,857				1,436,678
Ending balance	$	468,421	$	621,372	$	35,179	$	229,253	$	43,780	$	83,857			$	1,481,862

(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate– Commercial and Construction		Real  Estate– Residential Secured for Business Purpose		Real  Estate– Residential and Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financings		Unallocated		Total
At December 31, 2011
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	510	$	743	$	—	$	—	$	—	$	—	$	N/A	$	1,253
Ending balance: collectively evaluated for impairment		10,752		12,574		823		735		730		1,344		1,659		28,617
Ending balance	$	11,262	$	13,317	$	823	$	735	$	730	$	1,344	$	1,659	$	29,870
Loans and leases held for investment :
Ending balance: individually evaluated for impairment	$	4,691	$	36,261	$	115	$	84	$	50	$	—			$	41,201
Ending balance: collectively evaluated for impairment		472,971		569,089		32,366		212,639		44,915		73,225				1,405,205
Ending balance	$	477,662	$	605,350	$	32,481	$	212,723	$	44,965	$	73,225			$	1,446,406

A summary of the activity in the reserve for loan and lease losses is as follows:

(Dollars in thousands)	For the Years Ended December 31,
	2012			2011			2010
Balance at beginning of year	$	29,870		$	30,898		$	24,798
Provision for loan and lease losses		10,035			17,479			21,565
Loans and leases charged off		(16,735	)		(19,703	)		(17,105	)
Recoveries		1,576			1,196			1,640
Balance at end of year	$	24,746		$	29,870		$	30,898

Impaired Loans

The following presents, by class of loans, the recorded investment and unpaid principal balance of impaired loans, the amounts of the impaired loans for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at December 31, 2012 and 2011.

	At December 31,
	2012						2011
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance recorded:
Commercial, financial and agricultural	$	2,646	$	4,504			$	3,384	$	4,422
Real estate–commercial real estate		24,863		30,991				19,453		27,146
Real estate–construction		15,985		17,959				15,741		17,268
Real estate–residential secured for business purpose		172		184				115		631
Real estate–residential secured for personal purpose		804		804				57		57
Real estate–home equity secured for personal purpose		—		—				27		27
Loans to individuals		38		55				50		58
Total impaired loans with no related allowance recorded:	$	44,508	$	54,497			$	38,827	$	49,609
Impaired loans with an allowance recorded:
Commercial, financial and agricultural	$	676	$	717	$	208	$	1,307	$	1,700	$	510
Real estate–commercial real estate		—		—		—		1,067		1,067		743
Total impaired loans with an allowance recorded	$	676	$	717	$	208	$	2,374	$	2,767	$	1,253
Total impaired loans:
Commercial, financial and agricultural	$	3,322	$	5,221	$	208	$	4,691	$	6,122	$	510
Real estate–commercial real estate		24,863		30,991		—		20,520		28,213		743
Real estate–construction		15,985		17,959		—		15,741		17,268		—
Real estate–residential secured for business purpose		172		184		—		115		631		—
Real estate–residential secured for personal purpose		804		804		—		57		57		—
Real estate–home equity secured for personal purpose		—		—		—		27		27		—
Loans to individuals		38		55		—		50		58		—
Total impaired loans:	$	45,184	$	55,214	$	208	$	41,201	$	52,376	$	1,253

The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans for the years ended December 31, 2012, 2011 and 2010:

	For the Years Ended December 31,
	2012						2011						2010
(Dollars in thousands)	Average Recorded Investment		Interest Income Recognized*		Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Interest Income That Would Have Been Recognized Under Original Terms		Average Recorded Investment		Interest Income Recognized*		Interest Income That Would Have Been Recognized Under Original Terms
Loans held for sale	$	592	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural		5,189		82		288		6,357		30		377		3,790		13		234
Real estate—commercial real estate		20,756		348		1,086		18,850		130		1,300		8,280		63		744
Real estate—construction		16,207		117		763		16,720		64		886		20,228		—		1,062
Real estate—residential secured for business purpose		156		—		7		306		6		14		928		29		63
Real estate—residential secured for personal purpose		293		—		17		491		25		25		1,201		13		62
Real estate—home equity secured for personal purpose		2		—		—		25		1		1		231		—		9
Loans to individuals		47		5		—		57		5		1		62		4		—
Total	$	43,242	$	552	$	2,161	$	42,806	$	261	$	2,604	$	34,720	$	122	$	2,174

* Includes interest income recognized on accruing troubled debt restructured loans of $485 thousand, $196 thousand and $97 thousand for the years ended December 31, 2012, 2011 and 2010, respectively.

Any income accrued on one-to-four family residential properties after the loan becomes 90 days past due is held in a reserve for uncollected interest. The reserve for uncollected interest was $15 thousand and $0 thousand at December 31, 2012 and 2011, respectively.

The Bank maintains a reserve in other liabilities for off-balance sheet credit exposures that currently are unfunded. The reserve for these off-balance sheet credits was $119 thousand and $108 thousand at December 31, 2012 and 2011, respectively.

Troubled Debt Restructured Loans

The following presents, by class of loans, information regarding accruing and non-accrual loans that were restructured during the years ended December 31, 2012 and 2011:

	For the Years Ended December 31,
	2012								2011
(Dollars in thousands)	Number of Loans		Pre-Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance		Number of Loans		Pre- Restructuring Outstanding Recorded Investment		Post- Restructuring Outstanding Recorded Investment		Related Allowance
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural		13	$	3,635	$	3,635	$	—		2	$	80	$	80	$	—
Real estate—commercial real estate		5		2,630		2,630		—		5		2,438		2,435		—
Real estate—construction		3		1,550		1,550		—		5		2,182		2,182		—
Real estate—residential secured for business purpose		—		—		—		—		1		98		98		—
Real estate—residential secured for personal purpose		—		—		—		—		1		156		156		—
Real estate—home equity secured for personal purpose		—		—		—		—		1		31		31		—
Total		21	$	7,815	$	7,815	$	—		15	$	4,985	$	4,982	$	—
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural		2	$	448	$	448	$	—		—	$	—	$	—	$	—
Real estate—commercial real estate		1		124		124		—		3		11,368		11,368		—
Real estate—residential secured for personal purpose		1		485		485		—		1		61		61		—
Total		4	$	1,057	$	1,057	$	—		4	$	11,429	$	11,429	$	—

The Corporation grants concessions primarily related to extensions of interest-only payment periods and an occasional payment modification. These modifications typically are on a short-term basis up to one year. Our goal when restructuring a credit is to afford the customer a reasonable period of time to provide cash flow relief to customers experiencing cash flow difficulties. Accruing troubled debt restructured loans were primarily comprised of loans on which interest is being accrued under the restructured terms, and the loans were current or less than ninety days past due.

The following presents, by class of loans, information regarding the types of concessions granted on accruing and non-accrual loans that were restructured during the years ended December 31, 2012 and 2011:

	For the Year Ended December 31, 2012
	Maturity Date Extension and Interest Rate Reduction				Interest Only Terms Extension				Interest Rate Reduction				Temporary Payment Reduction				Maturity  Date Extension				Temporary Payment Suspension				Total Concessions Granted
(Dollars in thousands)	No. of Loans		Amount		No. of Loans		Amount		No. of Loans		Amount		No. of Loans		Amount		No. of Loans		Amount		No. of Loans		Amount		No. of Loans		Amount
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural *		—	$	—		4	$	1,316		—	$	—		6	$	452		3	$	1,867		—	$	—		13	$	3,635
Real estate—commercial real estate		—		—		3		2,267		—		—		1		188		1		175		—		—		5		2,630
Real estate—construction		—		—		3		1,550		—		—		—		—		—		—		—		—		3		1,550
Total		—	$	—		10	$	5,133		—	$	—		7	$	640		4	$	2,042		—	$	—		21	$	7,815
Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural **		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		2	$	448		2	$	448
Real estate—commercial real estate **		—		—		—		—		—		—		—		—		—		—		1		124		1		124
Real estate—residential secured for personal purpose		—		—		—		—		—		—		1		485		—		—		—		—		1		485
Total		—	$	—		—	$	—		—	$	—		1	$	485		—	$	—		3	$	572		4	$	1,057

* During the third quarter of 2012, five troubled debt restructured loans totaling $3.0 million were paid off.

** During the fourth quarter of 2012, three nonaccrual troubled debt restructured loans totaling $572 thousand were sold.

	For the Year Ended December 31, 2011
	Maturity Date Extension and Interest Rate Reduction				Interest Only Terms Extension				Interest  Rate Reduction				Temporary Payment Reduction				Maturity  Date Extension				Temporary Payment Suspension				Total Concessions Granted
(Dollars in thousands)	No. of Loans		Amount		No. of Loans		Amount		No. of Loans		Amount		No. of Loans		Amount		No. of Loans		Amount		No. of Loans		Amount		No. of Loans		Amount
Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural		2	$	80		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—		2	$	80
Real estate—commercial real estate		1		1,242		4		1,193		—		—		—		—		—		—		—		—		5		2,435
Real estate—construction		—		—		5		2,182		—		—		—		—		—		—		—		—		5		2,182
Real estate—residential secured for business purpose		—		—		—		—		1		98		—		—		—		—		—		—		1		98
Real estate—residential secured for personal purpose		—		—		—		—		—		—		1		156		—		—		—		—		1		156
Real estate—home equity secured for personal purpose		—		—		—		—		—		—		1		31		—		—		—		—		1		31
Total		3	$	1,322		9	$	3,375		1	$	98		2	$	187		—	$	—		—	$	—		15	$	4,982
Nonaccrual Troubled Debt Restructured Loans:
Real estate—commercial real estate		—	$	—		1	$	1,936		1	$	6,667		1	$	2,765		—	$	—		—	$	—		3	$	11,368
Real estate—residential secured for personal purpose		—		—		—		—		—		—		1		61		—		—		—		—		1		61
Total		—	$	—		1	$	1,936		1	$	6,667		2	$	2,826		—	$	—		—	$	—		4	$	11,429

The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, included in the table above, which had payment defaults within twelve months following restructuring during the years ended December 31, 2012 and 2011:

	For the Years Ended December 31,
	2012				2011
(Dollars in thousands)	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment
Accruing Troubled Debt Restructured Loans:
Real estate—residential secured for personal purpose		—	$	—		1	$	158
Real estate—home equity secured for personal purpose		—		—		1		31
Total		—	$	—		2	$	189
Nonaccrual Troubled Debt Restructured Loans:
Real estate—commercial real estate		—	$	—		1	$	2,761
Total		—	$	—		1	$	2,761

As a result of payment defaults in 2011, accruing troubled debt restructured loans totaling $189 thousand were placed on nonaccrual of interest status. In addition, during the third quarter of 2011, the commercial real estate loan for $2.8 million was foreclosed on and $1.0 million was charged-off based on the appraised value of the property and the remaining $1.8 million was transferred to other real estate owned.