Loans and Leases (Tables)

9 Months Ended

Sep. 30, 2013

Summary of Major Loan and Lease Categories

Summary of Major Loan and Lease Categories


(Dollars in thousands)	At September 30, 2013			At December 31, 2012
Commercial, financial and agricultural	$	430,818		$	468,421
Real estate-commercial		606,030			530,122
Real estate-construction		74,847			91,250
Real estate-residential secured for business purpose		35,673			35,179
Real estate-residential secured for personal purpose		143,374			146,526
Real estate-home equity secured for personal purpose		90,527			82,727
Loans to individuals		42,211			43,780
Lease financings		102,761			83,857

Total loans and leases held for investment, net of deferred income	$	1,526,241		$	1,481,862

Unearned lease income, included in the above table	$	(14,192	)	$	(12,355	)
Net deferred costs (fees), included in the above table	$	2,523		$	1,432
Overdraft deposits included in the above table	$	156		$	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 September 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 September 30, 2013

Commercial, financial and agricultural

4,169

972

1,047

6,188

424,630

430,818

300

Real estate—commercial real estate and construction:

Commercial real estate

651

1,364

6,405

8,420

597,610

606,030

641

Construction

—

8,742

66,105

74,847

—

Real estate—residential and home equity:

Residential secured for business purpose

411

180

226

817

34,856

35,673

—

Residential secured for personal purpose

1,122

197

619

1,938

141,436

143,374

619

Home equity secured for personal purpose

341

468

90,059

90,527

Loans to individuals

496

255

299

1,050

41,161

42,211

299

Lease financings

1,592

1,372

271

3,235

99,526

102,761

Total

8,782

4,416

17,660

30,858

1,495,383

1,526,241

1,954


(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	$	586	$	313	$	754	$	1,653	$	466,768	$	468,421	$	—
Real estate—commercial real estate and construction:
Commercial real estate		8,266		—		5,894		14,160		515,962		530,122		—
Construction		306		—		13,150		13,456		77,794		91,250		—
Real estate—residential and home equity:
Residential secured for business purpose		1,663		69		103		1,835		33,344		35,179		—
Residential secured for personal purpose		1,617		152		—		1,769		144,757		146,526		—
Home equity secured for personal purpose		276		64		54		394		82,333		82,727		54
Loans to individuals		551		153		347		1,051		42,729		43,780		347
Lease financings		1,001		273		426		1,700		82,157		83,857		40

Total	$	14,266	$	1,024	$	20,728	$	36,018	$	1,445,844	$	1,481,862	$	441

Non-Performing Loans and Leases

Non-Performing Loans and Leases

The following presents, by class of loans and leases, non-performing loans and leases at September 30, 2013 and December 31, 2012:


	At September 30, 2013								At December 31, 2012
(Dollars in thousands)	Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases Greater than 90 Days Past Due and Accruing Interest		Total Non- Performing Loans and Leases		Nonaccrual Loans and Leases*		Accruing Troubled Debt Restructured Loans and Lease Modifications		Loans and Leases Greater than 90 Days Past Due and Accruing Interest		Total Non- Performing Loans and Leases
Commercial, financial and agricultural	$	3,778	$	1,406	$	300	$	5,484	$	2,842	$	480	$	—	$	3,322
Real estate—commercial real estate and construction:
Commercial real estate		9,858		10,499		641		20,998		14,340		10,523		—		24,863
Construction		9,165		2,164		—		11,329		13,588		2,397		—		15,985
Real estate—residential and home equity:
Residential secured for business purpose		226		—		—		226		172		—		—		172
Residential secured for personal purpose		720		—		619		1,339		804		—		—		804
Home equity secured for personal purpose		—		—		51		51		—		—		54		54
Loans to individuals		—		37		299		336		—		38		347		385
Lease financings		227		—		44		271		386		19		40		445

Total	$	23,974	$	14,106	$	1,954	$	40,034	$	32,132	$	13,457	$	441	$	46,030

*	Includes nonaccrual troubled debt restructured loans and lease modifications of $1.6 million and $579 thousand at September 30, 2013 and December 31, 2012, respectively.

Credit Quality Indicators

Commercial Credit Exposure Credit Risk by Internally Assigned Grades

At September 30, 2013

(Dollars in thousands)

Commercial,
Financial and
Agricultural

Real Estate —
Commercial

Real Estate —
Construction

Real Estate —
Residential Secured
for Business Purpose

Total

Grade:

1. Cash secured/ 2. Fully secured

4,498

2,031

1,550

—

8,079

3. Strong

5,534

9,119

4,288

—

18,941

4. Satisfactory

33,136

17,579

1,602

107

52,424

5. Acceptable

246,455

376,724

33,898

25,721

682,798

6. Pre-watch

98,524

121,054

21,282

5,351

246,211

7. Special Mention

15,897

22,169

—

1,919

39,985

8. Substandard

26,410

57,305

12,227

2,575

98,517

9. Doubtful

364

—

413

10. Loss

—

Total

430,818

606,030

74,847

35,673

1,147,368


	At December 31, 2012
(Dollars in thousands)	Commercial, Financial and Agricultural		Real Estate — Commercial		Real Estate — Construction		Real Estate — Residential Secured for Business Purpose		Total
Grade:
1. Cash secured/ 2. Fully secured	$	2,263	$	—	$	—	$	—	$	2,263
3. Strong		5,227		9,591		3,907		—		18,725
4. Satisfactory		40,747		25,837		1,783		335		68,702
5. Acceptable		260,042		321,194		26,331		22,764		630,331
6. Pre-watch		106,436		110,476		42,190		8,458		267,560
7. Special Mention		31,825		16,187		548		288		48,848
8. Substandard		21,881		45,844		16,491		3,334		87,550
9. Doubtful		—		993		—		—		993
10. Loss		—		—		—		—		—

Total	$	468,421	$	530,122	$	91,250	$	35,179	$	1,124,972

At September 30, 2013

(Dollars in thousands)

Real Estate —
Residential
Secured for
Personal Purpose

Real Estate —
Home Equity
Secured for
Personal Purpose

Loans to
Individuals

Lease
Financing

Total

Performing

142,035

90,476

41,875

102,490

376,876

Nonperforming

1,339

336

271

1,997

Total

143,374

90,527

42,211

102,761

378,873


	At December 31, 2012
(Dollars in thousands)	Real Estate — Residential Secured for Personal Purpose		Real Estate — Home Equity Secured for Personal Purpose		Loans to Individuals		Lease Financing		Total
Performing	$	145,722	$	82,673	$	43,395	$	83,412	$	355,202
Nonperforming		804		54		385		445		1,688

Total	$	146,526	$	82,727	$	43,780	$	83,857	$	356,890

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 nine months ended September 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 September 30, 2013
Reserve for loan and lease losses:
Beginning balance	$	11,395		$	8,662		$	586		$	1,084		$	693		$	1,212		$	1,086		$	24,718
Charge-offs		(812	)		(2,784	)		(38	)		(133	)		(216	)		(211	)		N/A			(4,194	)
Recoveries		85			—			1			2			60			69			N/A			217
(Recovery of provision) provision		(152	)		2,542			682			249			169			198			406			4,094

Ending balance	$	10,516		$	8,420		$	1,231		$	1,202		$	706		$	1,268		$	1,492		$	24,835

Three Months Ended September 30, 2012
Reserve for loan and lease losses:
Beginning balance	$	12,021		$	12,316		$	834		$	884		$	719		$	1,161		$	2,567		$	30,502
Charge-offs *		(4,143	)		(1,318	)		—			—			(168	)		(203	)		N/A			(5,832	)
Recoveries		33			4			4			—			43			132			N/A			216
Provision (recovery of provision)		3,344			(763	)		(154	)		62			12			94			(385	)		2,210

Ending balance	$	11,255		$	10,239		$	684		$	946		$	606		$	1,184		$	2,182		$	27,096


(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
Nine Months Ended September 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		(1,973	)		(6,857	)		(112	)		(160	)		(620	)		(637	)		N/A			(10,359	)
Recoveries		172			48			9			5			172			428			N/A			834
Provision (recovery of provision)		723			7,722			695			377			475			151			(529	)		9,614

Ending balance	$	10,516		$	8,420		$	1,231		$	1,202		$	706		$	1,268		$	1,492		$	24,835

Nine Months Ended September 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 *		(7,308	)		(2,993	)		—			(2	)		(408	)		(849	)		N/A			(11,560	)
Recoveries		448			144			59			3			100			379			N/A			1,133
Provision (recovery of provision)		6,853			(229	)		(198	)		210			184			310			523			7,653

Ending balance	$	11,255		$	10,239		$	684		$	946		$	606		$	1,184		$	2,182		$	27,096

N/A – Not applicable

*	Includes charge-offs of $1.3 million on commercial real estate loans which were subsequently transferred to loans held for sale at September 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 September 30, 2013

Reserve for loan and lease losses:

Ending balance: individually evaluated for impairment

2,210

111

775

—

N/A

3,096

Ending balance: collectively evaluated for impairment

8,306

8,309

456

1,202

706

1,268

1,492

21,739

Total ending balance

10,516

8,420

1,231

1,202

706

1,268

1,492

24,835

Loans and leases held for investment:

Ending balance: individually evaluated for impairment

14,029

50,242

1,776

720

—

66,804

Ending balance: collectively evaluated for impairment

416,789

630,635

33,897

233,181

42,174

102,761

1,459,437

Total ending balance

430,818

680,877

35,673

233,901

42,211

102,761

1,526,241


(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 September 30, 2012
Reserve for loan and lease losses:
Ending balance: individually evaluated for impairment	$	428	$	262	$	—	$	—	$	—	$	—	$	N/A	$	690
Ending balance: collectively evaluated for impairment		10,827		9,977		684		946		606		1,184		2,182		26,406

Total ending balance	$	11,255	$	10,239	$	684	$	946	$	606	$	1,184	$	2,182	$	27,096

Loans and leases held for investment:
Ending balance: individually evaluated for impairment	$	4,232	$	35,976	$	175	$	323	$	48	$	—			$	40,754
Ending balance: collectively evaluated for impairment		471,893		575,012		32,645		230,067		42,578		76,562				1,428,757

Total ending balance	$	476,125	$	610,988	$	32,820	$	230,390	$	42,626	$	76,562			$	1,469,511

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 September 30, 2013 and December 31, 2012:


	At September 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	$	8,037	$	9,961			$	2,646	$	4,504
Real estate—commercial real estate		36,500		46,604				24,863		30,991
Real estate—construction		12,227		14,410				15,985		17,959
Real estate—residential secured for business purpose		226		238				172		184
Real estate—residential secured for personal purpose		720		739				804		804
Loans to individuals		37		55				38		55

Total impaired loans with no allowance recorded	$	57,747	$	72,007			$	44,508	$	54,497

Impaired loans with an allowance recorded:
Commercial, financial and agricultural	$	5,992	$	6,075	$	2,210	$	676	$	717	$	208
Real estate—commercial real estate		1,515		1,515		111		—		—		—
Real estate—residential secured for business purpose		1,550		1,550		775		—		—		—

Total impaired loans with an allowance recorded	$	9,057	$	9,140	$	3,096	$	676	$	717	$	208

Total impaired loans:
Commercial, financial and agricultural	$	14,029	$	16,036	$	2,210	$	3,322	$	5,221	$	208
Real estate—commercial real estate		38,015		48,119		111		24,863		30,991		—
Real estate—construction		12,227		14,410		—		15,985		17,959		—
Real estate—residential secured for business purpose		1,776		1,788		775		172		184		—
Real estate—residential secured for personal purpose		720		739		—		804		804		—
Loans to individuals		37		55		—		38		55		—

Total impaired loans	$	66,804	$	81,147	$	3,096	$	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. A loan may remain on accrual status if it is in the process of collection and is either guaranteed or well secured. Therefore, interest income on accruing impaired loans is recognized using the accrual method.


	Three Months Ended September 30, 2013						Three Months Ended September 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
Loans held for sale	$	—	$	—	$	—	$	650	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural		5,971		29		70		5,474		23		71
Real estate—commercial real estate		22,789		171		150		20,525		69		257
Real estate—construction		14,544		25		184		16,324		33		190
Real estate—residential secured for business purpose		585		2		2		176		—		2
Real estate—residential secured for personal purpose		725		—		11		320		—		5
Real estate—home equity secured for personal purpose		—		—		—		—		—		—
Loans to individuals		37		1		—		48		1		—

Total	$	44,651	$	228	$	417	$	43,517	$	126	$	525

Includes interest income recognized on a cash basis for nonaccrual loans of $0 thousand for both the three months ended September 30, 2013 and 2012 and interest income recognized on accrual method for accruing impaired loans of $228 thousand and $126 thousand for the three months ended September 30, 2013 and 2012, respectively.


	Nine Months Ended September 30, 2013						Nine Months Ended September 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
Loans held for sale	$	—	$	—	$	—	$	260	$	—	$	—
Loans held for investment:
Commercial, financial and agricultural		3,985		45		132		5,542		56		223
Real estate—commercial real estate		23,138		473		566		20,417		156		783
Real estate—construction		15,291		81		553		16,238		85		575
Real estate—residential secured for business purpose		341		2		7		150		—		5
Real estate—residential secured for personal purpose		758		—		35		188		—		9
Real estate—home equity secured for personal purpose		2		—		—		3		—		—
Loans to individuals		41		3		—		49		4		—

Total	$	43,556	$	604	$	1,293	$	42,847	$	301	$	1,595

Includes interest income recognized on a cash basis for nonaccrual loans of $6 thousand and $8 thousand for the nine months ended September 30, 2013 and 2012, respectively and interest income recognized on accrual method for accruing impaired loans of $598 thousand and $293 thousand for the nine months ended September 30, 2013 and 2012, respectively.

Troubled Debt Restructured Loans

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


	Three Months Ended September 30, 2013								Three Months Ended September 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		—	$	—	$	—	$	—		2	$	1,731	$	1,731	$	—
Real estate—commercial real estate		3		1,569		1,569		—		1		1,621		1,621		—
Real estate—construction		1		459		459		—		—		—		—		—

Total		4	$	2,028	$	2,028	$	—		3	$	3,352	$	3,352	$	—

Nonaccrual Troubled Debt Restructured Loans:

Total		—	$	—	$	—	$	—		—	$	—	$	—	$	—


	Nine Months Ended September 30, 2013								Nine Months Ended September 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	$	—		10	$	3,404	$	3,404	$	—
Real estate—commercial real estate		3		1,569		1,569		—		5		2,630		2,630		—
Real estate—construction		1		459		459		—		2		1,330		1,330		—

Total		5	$	3,028	$	3,028	$	—		17	$	7,364	$	7,364	$	—

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 nine months ended September 30, 2013 and 2012:


	Three Months Ended September 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:
Real estate—commercial real estate		—	$	—		1	$	756		—	$	—		2	$	813		3	$	1,569
Real estate—construction		—		—		—		—		—		—		1		459		1		459

Total		—	$	—		1	$	756		—	$	—		3	$	1,272		4	$	2,028

Nonaccrual Troubled Debt Restructured Loans:

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


	Three Months Ended September 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		—	$	—		—	$	—		—	$	—		2	$	1,731		2	$	1,731
Real estate—commercial real estate		1		1,621		—		—		—		—		—		—		1		1,621

Total		1	$	1,621		—	$	—		—	$	—		2	$	1,731		3	$	3,352

Nonaccrual Troubled Debt Restructured Loans:

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


	Nine Months Ended September 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
Real estate—commercial real estate		—		—		1		756		—		—		2		813		3		1,569
Real estate—construction		—		—		—		—		—		—		1		459		1		459

Total		1	$	1,000		1	$	756		—	$	—		3	$	1,272		5	$	3,028

Nonaccrual Troubled Debt Restructured Loans:

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


	Nine Months Ended September 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		—	$	—		3	$	1,867		10	$	3,404
Real estate—commercial real estate		3		2,267		1		188		—		—		1		175		5		2,630
Real estate—construction		2		1,330		—		—		—		—		—		—		2		1,330

Total		9	$	4,913		4	$	409		—	$	—		4	$	2,042		17	$	7,364

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 within twelve months of the restructuring date:


	Three Months Ended September 30,								Nine Months Ended September 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		1	$	1,000		—	$	—		4	$	1,230		—	$	—

Total		1	$	1,000		—	$	—		4	$	1,230		—	$	—

Nonaccrual Troubled Debt Restructured Loans:

Total		—	$	—		—	$	—		—	$	—		—	$	—