Loans and Leases (Tables)

6 Months Ended

Jun. 30, 2013

Summary of Major Loan and Lease Categories

Summary of Major Loan and Lease Categories


(Dollars in thousands)	At June 30, 2013			At December 31, 2012

Commercial, financial and agricultural	$	439,907		$	468,421
Real estate-commercial		580,400			530,122
Real estate-construction		84,027			91,250
Real estate-residential secured for business purpose		32,329			35,179
Real estate-residential secured for personal purpose		144,002			146,526
Real estate-home equity secured for personal purpose		84,109			82,727
Loans to individuals		43,598			43,780
Lease financings		91,621			83,857

Total loans and leases held for investment, net of deferred income	$	1,499,993		$	1,481,862


Unearned lease income, included in the above table	$	(13,437	)	$	(12,355	)
Net deferred costs (fees), included in the above table	$	2,205		$	1,432
Overdraft deposits included in the above table	$	161		$	128

Age Analysis of Past Due Loans and Leases

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 June 30, 2013 and December 31, 2012:

(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 June 30, 2013

Commercial, financial and agricultural

949

274

—

1,223

435,538

439,907

—

Real estate–commercial real estate and construction:

Commercial real estate

1,391

—

1,391

560,112

580,400

—

Construction

—

68,453

84,027

—

Real estate–residential and home equity:

Residential secured for business purpose

353

—

390

31,770

32,329

—

Residential secured for personal purpose

2,176

155

221

2,552

140,720

144,002

221

Home equity secured for personal purpose

459

610

83,499

84,109

Loans to individuals

519

276

190

985

42,575

43,598

190

Lease financings

1,010

324

1,370

89,902

91,621

Total

6,857

1,143

521

8,521

1,452,569

1,499,993

521

*	Excludes impaired loans and leases.


(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

*	Excludes impaired loans and leases.

Nonaccrual and Accruing 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 June 30, 2013 and December 31, 2012:


	At June 30, 2013						At December 31, 2012
(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	$	1,708	$	1,438	$	3,146	$	2,842	$	480	$	3,322
Real estate–commercial real estate and construction:
Commercial real estate		8,726		10,171		18,897		14,340		10,523		24,863
Construction		13,531		2,043		15,574		13,588		2,397		15,985
Real estate–residential and home equity:
Residential secured for business purpose		169		—		169		172		—		172
Residential secured for personal purpose		730		—		730		804		—		804
Loans to individuals		—		38		38		—		38		38
Lease financings		343		6		349		386		19		405

Total	$	25,207	$	13,696	$	38,903	$	32,132	$	13,457	$	45,589

*	Includes non-accrual troubled debt restructured loans and lease modifications of $503 thousand and $579 thousand at June 30, 2013 and December 31, 2012, respectively.

Credit Quality Indicators

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
(Dollars in thousands)	At June 30, 2013		At December 31, 2012		At June 30, 2013		At December 31, 2012		At June 30, 2013		At December 31, 2012		At June 30, 2013		At December 31, 2012

Grade:
1. Cash secured/ 2. Fully secured	$	851	$	2,263	$	—	$	—	$	—	$	—	$	—	$	—
3. Strong		6,106		5,227		9,502		9,591		6,241		3,907		—		—
4. Satisfactory		38,401		40,747		21,123		25,837		1,701		1,783		113		335
5. Acceptable		243,168		260,042		353,806		321,194		31,900		26,331		23,593		22,764
6. Pre-watch		105,622		106,436		140,034		110,476		27,942		42,190		4,412		8,458
7. Special Mention		23,053		31,825		13,415		16,187		—		548		1,902		288
8. Substandard		22,706		21,881		42,520		45,844		16,243		16,491		2,309		3,334
9. Doubtful		—		—		—		993		—		—		—		—
10. Loss		—		—		—		—		—		—		—		—

Total	$	439,907	$	468,421	$	580,400	$	530,122	$	84,027	$	91,250	$	32,329	$	35,179


	Real Estate–Residential Secured for Personal Purpose				Real Estate–Home Equity Secured for Personal Purpose				Loans to individuals				Lease Financing
(Dollars in thousands)	At June 30, 2013		At December 31, 2012		At June 30, 2013		At December 31, 2012		At June 30, 2013		At December 31, 2012		At June 30, 2013		At December 31, 2012

Performing	$	143,051	$	145,722	$	84,035	$	82,673	$	43,370	$	43,395	$	91,236	$	83,412
Nonperforming		951		804		74		54		228		385		385		445

Total	$	144,002	$	146,526	$	84,109	$	82,727	$	43,598	$	43,780	$	91,621	$	83,857

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 lease 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 three and six months ended June 30, 2013 and 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

Three Months Ended June 30, 2013

Reserve for loan and lease losses:
Beginning balance	$	11,883		$	8,032		$	570		$	792		$	628		$	1,358		$	1,959		$	25,222
Charge-offs		(90	)		(3,691	)		(24	)		(23	)		(224	)		(267	)		N/A			(4,319	)
Recoveries		39			42			—			1			78			209			N/A			369
(Recovery of provision) provision		(437	)		4,279			40			314			211			(88	)		(873	)		3,446

Ending balance	$	11,395		$	8,662		$	586		$	1,084		$	693		$	1,212		$	1,086		$	24,718


Three Months Ended June 30, 2012

Reserve for loan and lease losses:
Beginning balance	$	11,701		$	13,352		$	948		$	732		$	704		$	1,160		$	2,000		$	30,597
Charge-offs		(1,458	)		(133	)		—			(2	)		(119	)		(310	)		N/A			(2,022	)
Recoveries		362			44			3			1			26			148			N/A			584
Provision (recovery of provision)		1,416			(947	)		(117	)		153			108			163			567			1,343

Ending balance	$	12,021		$	12,316		$	834		$	884		$	719		$	1,161		$	2,567		$	30,502


(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

Six Months Ended June 30, 2013

Reserve for loan and lease losses:
Beginning balance	$	11,594		$	7,507		$	639		$	980		$	679		$	1,326		$	2,021		$	24,746
Charge-offs		(1,161	)		(4,073	)		(74	)		(27	)		(404	)		(426	)		N/A			(6,165	)
Recoveries		87			48			8			3			112			359			N/A			617
Provision (recovery of provision)		875			5,180			13			128			306			(47	)		(935	)		5,520

Ending balance	$	11,395		$	8,662		$	586		$	1,084		$	693		$	1,212		$	1,086		$	24,718


Six Months Ended June 30, 2012

Reserve for loan and lease losses:
Beginning balance	$	11,262		$	13,317		$	823		$	735		$	730		$	1,344		$	1,659		$	29,870
Charge-offs		(3,165	)		(1,675	)		—			(2	)		(240	)		(646	)		N/A			(5,728	)
Recoveries		415			140			55			3			57			247			N/A			917
Provision (recovery of provision)		3,509			534			(44	)		148			172			216			908			5,443

Ending balance	$	12,021		$	12,316		$	834		$	884		$	719		$	1,161		$	2,567		$	30,502

N/A – Not applicable

(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 June 30, 2013

Reserve for loan and lease losses:

Ending balance: individually evaluated for impairment

230

—

N/A

230

Ending balance: collectively evaluated for impairment

11,165

8,662

586

1,084

693

1,212

1,086

24,488

Total ending balance

11,395

8,662

586

1,084

693

1,212

1,086

24,718

Loans and leases held for investment:

Ending balance: individually evaluated for impairment

3,146

34,471

169

730

—

38,554

Ending balance: collectively evaluated for impairment

436,761

629,956

32,160

227,381

43,560

91,621

1,461,439

Total ending balance

439,907

664,427

32,329

228,111

43,598

91,621

1,499,993


(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 June 30, 2012

Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	432	$	—	$	—	$	—	$	—	$	—	$	N/A	$	432
Ending balance: collectively evaluated for impairment		11,589		12,316		834		884		719		1,161		2,567		30,070

Total ending balance	$	12,021	$	12,316	$	834	$	884	$	719	$	1,161	$	2,567	$	30,502


Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	5,647	$	37,545	$	177	$	312	$	49	$	—			$	43,730
Ending balance: collectively evaluated for impairment		492,308		559,647		31,920		218,601		43,988		75,255				1,421,719

Total ending balance	$	497,955	$	597,192	$	32,097	$	218,913	$	44,037	$	75,255			$	1,465,449

N/A – Not applicable

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 June 30, 2013 and December 31, 2012:


	At June 30, 2013						At December 31, 2012
(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	$	2,504	$	4,082			$	2,646	$	4,504
Real estate–commercial real estate		18,897		28,269				24,863		30,991
Real estate–construction		15,574		17,594				15,985		17,959
Real estate–residential secured for business purpose		169		181				172		184
Real estate–residential secured for personal purpose		730		730				804		804
Loans to individuals		38		55				38		55

Total impaired loans with no allowance recorded	$	37,912	$	50,911			$	44,508	$	54,497


Impaired loans with an allowance recorded:
Commercial, financial and agricultural	$	642	$	702	$	230	$	676	$	717	$	208

Total impaired loans with an allowance recorded	$	642	$	702	$	230	$	676	$	717	$	208


	At June 30, 2013						At December 31, 2012
(Dollars in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance

Total impaired loans:
Commercial, financial and agricultural	$	3,146	$	4,784	$	230	$	3,322	$	5,221	$	208
Real estate–commercial real estate		18,897		28,269		—		24,863		30,991		—
Real estate–construction		15,574		17,594		—		15,985		17,959		—
Real estate–residential secured for business purpose		169		181		—		172		184		—
Real estate–residential secured for personal purpose		730		730		—		804		804		—
Loans to individuals		38		55		—		38		55		—

Total impaired loans	$	38,554	$	51,613	$	230	$	45,184	$	55,214	$	208

Average Recorded Investment in Impaired Loans and Leases and Analysis of Interest on Impaired Loans

The following presents by class of loans, the average recorded investment in impaired loans and an analysis of interest on impaired loans:


	Three Months Ended June 30, 2013						Three Months Ended June 30, 2012
(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

Commercial, financial and agricultural	$	2,469	$	8	$	23	$	6,011	$	31	$	60
Real estate–commercial real estate		21,434		147		191		19,863		44		257
Real estate–construction		15,675		28		185		16,639		35		190
Real estate–residential secured for business purpose		169		—		2		161		—		2
Real estate–residential secured for personal purpose		751		—		12		185		—		3
Real estate–home equity secured for personal purpose		6		—		—		—		—		—
Loans to individuals		38		1		—		49		2		—

Total	$	40,542	$	184	$	413	$	42,908	$	112	$	512

*	Includes interest income recognized on accruing troubled debt restructured loans of $184 thousand and $109 thousand for the three months ended June 30, 2013 and 2012, respectively.


	Six Months Ended June 30, 2013						Six Months Ended June 30, 2012
(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

Commercial, financial and agricultural	$	2,731	$	16	$	62	$	5,596	$	33	$	152
Real estate–commercial real estate		22,732		302		416		20,421		87		526
Real estate–construction		15,758		56		369		16,250		52		385
Real estate–residential secured for business purpose		178		—		5		140		—		3
Real estate–residential secured for personal purpose		773		—		24		130		—		4
Real estate–home equity secured for personal purpose		3		—		—		4		—		—
Loans to individuals		42		2		—		49		3		—

Total	$	42,217	$	376	$	876	$	42,590	$	175	$	1,070

*	Includes interest income recognized on accruing troubled debt restructured loans of $370 thousand and $167 thousand for the six months ended June 30, 2013 and 2012, respectively.

Troubled Debt Restructured Loans

The following presents, by class of loans, information regarding accruing and non-accrual loans that were restructured:


	Three Months Ended June 30, 2013								Three Months Ended June 30, 2012
(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		1	$	1,000	$	1,000	$	—		1	$	135	$	135	$	—
Real estate–commercial real estate		—		—		—		—		1		175		175		—

Total		1	$	1,000	$	1,000	$	—		2	$	310	$	310	$	—


Nonaccrual Troubled Debt Restructured Loans:

Total		—	$	—	$	—	$	—		—	$	—	$	—	$	—


	Six Months Ended June 30, 2013								Six Months Ended June 30, 2012
(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		1	$	1,000	$	1,000	$	—		8	$	1,672	$	1,672	$	—
Real estate–commercial real estate		—		—		—		—		4		1,009		1,009		—
Real estate–construction		—		—		—		—		2		1,330		1,330		—

Total		1	$	1,000	$	1,000	$	—		14	$	4,011	$	4,011	$	—


Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural		—	$	—	$	—	$	—		2	$	448	$	448	$	—
Real estate–commercial real estate		—		—		—		—		1		124		124		—

Total		—	$	—	$	—	$	—		3	$	572	$	572	$	—

Concessions Granted on Accruing and Nonaccrual Loans Restructured

The following presents, by class of loans, information regarding the types of concessions granted on accruing and nonaccrual loans that were restructured during the three and six months ended June 30, 2013 and 2012:


	Three Months Ended June 30, 2013
	Interest Only Term Extension				Temporary Payment Reduction				Temporary Payment Suspension				Maturity Date Extension				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

Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural		1	$	1,000		—	$	—		—	$	—		—	$	—		1	$	1,000

Total		1	$	1,000		—	$	—		—	$	—		—	$	—		1	$	1,000


Nonaccrual Troubled Debt Restructured Loans:

Total		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—


	Three Months Ended June 30, 2012
	Interest Only Term Extension				Temporary Payment Reduction				Temporary Payment Suspension				Maturity Date Extension				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

Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural		—	$	—		—	$	—		—	$	—		1	$	135		1	$	135
Real estate–commercial real estate		—		—		—		—		—		—		1		175		1		175

Total		—	$	—		—	$	—		—	$	—		2	$	310		2	$	310


Nonaccrual Troubled Debt Restructured Loans:

Total		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—


	Six Months Ended June 30, 2013
	Interest Only Term Extension				Temporary Payment Reduction				Temporary Payment Suspension				Maturity Date Extension				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

Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural		1	$	1,000		—	$	—		—	$	—		—	$	—		1	$	1,000

Total		1	$	1,000		—	$	—		—	$	—		—	$	—		1	$	1,000


Nonaccrual Troubled Debt Restructured Loans:

Total		—	$	—		—	$	—		—	$	—		—	$	—		—	$	—


	Six Months Ended June 30, 2012
	Interest Only Term Extension				Temporary Payment Reduction				Temporary Payment Suspension				Maturity Date Extension				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

Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural		4	$	1,316		3	$	221		—	$	—		1	$	135		8	$	1,672
Real estate–commercial real estate		2		647		1		187		—		—		1		175		4		1,009
Real estate–construction		2		1,330		—		—		—		—		—		—		2		1,330

Total		8	$	3,293		4	$	408		—	$	—		2	$	310		14	$	4,011


Nonaccrual Troubled Debt Restructured Loans:
Commercial, financial and agricultural		—	$	—		—	$	—		2	$	448		—	$	—		2	$	448
Real estate–commercial real estate		—		—		—		—		1		124		—		—		1		124

Total		—	$	—		—	$	—		3	$	572		—	$	—		3	$	572

Accruing and Nonaccrual Troubled Debt Restructured Loans with Payment Default

The following presents, by class of loans, information regarding accruing and nonaccrual troubled debt restructured loans, for which there was a payment default during the three and six month periods ended June 30, 2013 and 2012 and within twelve months of the restructuring date:


	Three Months Ended June 30,								Six Months Ended June 30,
	2013				2012				2013				2012
(Dollars in thousands)	Number of Loans		Recorded Investment		Number of Loans		Recorded Investment		Number of Loans		Recorded Investment		Number of Loans		Recorded Investment

Accruing Troubled Debt Restructured Loans:
Commercial, financial and agricultural		—	$	—		—	$	—		3	$	230		—	$	—

Total		—	$	—		—	$	—		3	$	230		—	$	—


Nonaccrual Troubled Debt Restructured Loans:

Total		—	$	—		—	$	—		—	$	—		—	$	—