| Credit Quality Of Loans And Allowance For Loan Losses | (7) Credit Quality of Loans and Allowance for Loan Losses
An analysis of the allowance for loan losses for the three and nine months ended September 30, 2011, and September 30, 2010 follows:
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For the Three Months
Ended |
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For the Nine Months
Ended |
|
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|
September 30,
2011 |
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|
September 30,
2010 |
|
|
September 30,
2011 |
|
|
September 30,
2010 |
|
| |
|
(Dollars in thousands) |
|
|
Beginning balance |
|
$ |
15,448 |
|
|
$ |
10,462 |
|
|
$ |
13,247 |
|
|
$ |
9,725 |
|
|
Provision for loan losses |
|
|
1,028 |
|
|
|
3,863 |
|
|
|
6,231 |
|
|
|
8,643 |
|
|
Recoveries |
|
|
88 |
|
|
|
170 |
|
|
|
234 |
|
|
|
243 |
|
|
Loans charged off |
|
|
(4,350 |
) |
|
|
(1,308 |
) |
|
|
(7,498 |
) |
|
|
(5,424 |
) |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending balance |
|
$ |
12,214 |
|
|
$ |
13,187 |
|
|
$ |
12,214 |
|
|
$ |
13,187 |
|
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The following tables summarize the balances by loan category of the allowance for loan losses with changes arising from charge-offs, recoveries and provision expense for the nine months ending September 30, 2011, three months ending September 30, 2011 and for the year ending December 31, 2010:
Allowance for Loan Losses
As of and for the Nine Months Ended September 30, 2011
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| Allowance for Credit Losses |
|
Real Estate
Construction
and Land
Development |
|
|
Real Estate
Secured by
Farmland |
|
|
Real Estate
Secured by
Residential
Properties |
|
|
Real Estate
Secured by
Nonfarm
Nonresidential |
|
|
Consumer
Installment |
|
|
Credit
Cards and
Related
Plans |
|
|
Commercial
and
Industrial |
|
|
Loans to
Finance
Agricultural
Production |
|
|
All
Other
Loans |
|
|
General
Qualitative
&
Quantitative
Portion |
|
|
Total |
|
| |
|
(Dollars in thousands) |
|
|
Beginning balance |
|
$ |
6,168 |
|
|
$ |
28 |
|
|
$ |
3,450 |
|
|
$ |
1,007 |
|
|
$ |
12 |
|
|
$ |
21 |
|
|
$ |
882 |
|
|
$ |
18 |
|
|
$ |
139 |
|
|
$ |
1,522 |
|
|
$ |
13,247 |
|
|
Charge-offs |
|
|
(4,327 |
) |
|
|
— |
|
|
|
(941 |
) |
|
|
(1,594 |
) |
|
|
(18 |
) |
|
|
(108 |
) |
|
|
(338 |
) |
|
|
— |
|
|
|
(172 |
) |
|
|
— |
|
|
|
(7,498 |
) |
|
Recoveries |
|
|
9 |
|
|
|
— |
|
|
|
7 |
|
|
|
43 |
|
|
|
4 |
|
|
|
1 |
|
|
|
84 |
|
|
|
— |
|
|
|
86 |
|
|
|
— |
|
|
|
234 |
|
|
Provisions |
|
|
2,553 |
|
|
|
(12 |
) |
|
|
149 |
|
|
|
2,067 |
|
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|
17 |
|
|
|
305 |
|
|
|
215 |
|
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|
109 |
|
|
|
178 |
|
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|
650 |
|
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|
6,231 |
|
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Ending Balance |
|
$ |
4,403 |
|
|
$ |
16 |
|
|
$ |
2,665 |
|
|
$ |
1,523 |
|
|
$ |
15 |
|
|
$ |
219 |
|
|
$ |
843 |
|
|
$ |
127 |
|
|
$ |
231 |
|
|
$ |
2,172 |
|
|
$ |
12,214 |
|
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|
Ending Balance: individually evaluated for impairment |
|
$ |
940 |
|
|
$ |
— |
|
|
$ |
1,059 |
|
|
$ |
999 |
|
|
$ |
— |
|
|
$ |
200 |
|
|
$ |
510 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,708 |
|
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Ending Balance: collectively evaluated for impairment |
|
$ |
3,463 |
|
|
$ |
16 |
|
|
$ |
1,606 |
|
|
$ |
524 |
|
|
$ |
15 |
|
|
$ |
19 |
|
|
$ |
333 |
|
|
$ |
127 |
|
|
$ |
231 |
|
|
$ |
2,172 |
|
|
$ |
8,506 |
|
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Loans |
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Ending Balance |
|
$ |
71,174 |
|
|
$ |
31,782 |
|
|
$ |
117,824 |
|
|
$ |
211,479 |
|
|
$ |
5,354 |
|
|
$ |
2,231 |
|
|
$ |
44,201 |
|
|
$ |
20,910 |
|
|
$ |
16,671 |
|
|
$ |
— |
|
|
$ |
521,626 |
|
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Ending Balance: individually evaluated for impairment |
|
$ |
12,567 |
|
|
$ |
— |
|
|
$ |
7,678 |
|
|
$ |
9,755 |
|
|
$ |
— |
|
|
$ |
200 |
|
|
$ |
1,363 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
31,563 |
|
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Ending Balance: collectively evaluated for impairment |
|
$ |
58,607 |
|
|
$ |
31,782 |
|
|
$ |
110,146 |
|
|
$ |
201,724 |
|
|
$ |
5,354 |
|
|
$ |
2,031 |
|
|
$ |
42,838 |
|
|
$ |
20,910 |
|
|
$ |
16,671 |
|
|
$ |
— |
|
|
$ |
490,063 |
|
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Allowance for Loan Losses
As of and for the Three Months Ended September 30, 2011
| |
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|
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|
| Allowance for Credit Losses |
|
Real Estate
Construction
and Land
Development |
|
|
Real Estate
Secured by
Farmland |
|
|
Real Estate
Secured by
Residential
Properties |
|
|
Real Estate
Secured by
Nonfarm
Nonresidential |
|
|
Consumer
Installment |
|
|
Credit
Cards and
Related
Plans |
|
|
Commercial
and
Industrial |
|
|
Loans to
Finance
Agricultural
Production |
|
|
All
Other
Loans |
|
|
General
Qualitative
&
Quantitative
Portion |
|
|
Total |
|
| |
|
(Dollars in thousands) |
|
|
Beginning balance |
|
$ |
7,467 |
|
|
$ |
33 |
|
|
$ |
4,239 |
|
|
$ |
1,132 |
|
|
$ |
30 |
|
|
$ |
188 |
|
|
$ |
622 |
|
|
$ |
15 |
|
|
$ |
174 |
|
|
$ |
1,548 |
|
|
$ |
15,448 |
|
|
Charge-offs |
|
|
(2,410 |
) |
|
|
— |
|
|
|
(237 |
) |
|
|
(1,551 |
) |
|
|
(3 |
) |
|
|
(99 |
) |
|
|
— |
|
|
|
— |
|
|
|
(50 |
) |
|
|
— |
|
|
|
(4,350 |
) |
|
Recoveries |
|
|
3 |
|
|
|
— |
|
|
|
5 |
|
|
|
43 |
|
|
|
2 |
|
|
|
— |
|
|
|
6 |
|
|
|
— |
|
|
|
29 |
|
|
|
— |
|
|
|
88 |
|
|
Provisions |
|
|
(657 |
) |
|
|
(17 |
) |
|
|
(1,342 |
) |
|
|
1,899 |
|
|
|
(14 |
) |
|
|
130 |
|
|
|
215 |
|
|
|
112 |
|
|
|
78 |
|
|
|
624 |
|
|
|
1,028 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance |
|
$ |
4,403 |
|
|
$ |
16 |
|
|
$ |
2,665 |
|
|
$ |
1,523 |
|
|
$ |
15 |
|
|
$ |
219 |
|
|
$ |
843 |
|
|
$ |
127 |
|
|
$ |
231 |
|
|
$ |
2,172 |
|
|
$ |
12,214 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance: individually evaluated for impairment |
|
$ |
940 |
|
|
$ |
— |
|
|
$ |
1,059 |
|
|
$ |
999 |
|
|
$ |
— |
|
|
$ |
200 |
|
|
$ |
510 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
3,708 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance: collectively evaluated for impairment |
|
$ |
3,463 |
|
|
$ |
16 |
|
|
$ |
1,606 |
|
|
$ |
524 |
|
|
$ |
15 |
|
|
$ |
19 |
|
|
$ |
333 |
|
|
$ |
127 |
|
|
$ |
231 |
|
|
$ |
2,172 |
|
|
$ |
8,506 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance |
|
$ |
71,174 |
|
|
$ |
31,782 |
|
|
$ |
117,824 |
|
|
$ |
211,479 |
|
|
$ |
5,354 |
|
|
$ |
2,231 |
|
|
$ |
44,201 |
|
|
$ |
20,910 |
|
|
$ |
16,671 |
|
|
$ |
— |
|
|
$ |
521,626 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance: individually evaluated for impairment |
|
$ |
12,567 |
|
|
$ |
— |
|
|
$ |
7,678 |
|
|
$ |
9,755 |
|
|
$ |
— |
|
|
$ |
200 |
|
|
$ |
1,363 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
31,563 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance: collectively evaluated for impairment |
|
$ |
58,607 |
|
|
$ |
31,782 |
|
|
$ |
110,146 |
|
|
$ |
201,724 |
|
|
$ |
5,354 |
|
|
$ |
2,031 |
|
|
$ |
42,838 |
|
|
$ |
20,910 |
|
|
$ |
16,671 |
|
|
$ |
— |
|
|
$ |
490,063 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for Loan Losses
As of and for the Year Ended December 31, 2010
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Allowance for Credit Losses |
|
Real Estate
Construction
and Land
Development |
|
|
Real Estate
Secured by
Farmland |
|
|
Real Estate
Secured by
Residential
Properties |
|
|
Real Estate
Secured by
Nonfarm
Nonresidential |
|
|
Consumer
Installment |
|
|
Credit
Cards and
Related
Plans |
|
|
Commercial
and
Industrial |
|
|
Loans to
Finance
Agricultural
Production |
|
|
All
Other
Loans |
|
|
General
Qualitative
&
Quantitative
Portion |
|
|
Total |
|
| |
|
(Dollars in thousands) |
|
|
Beginning balance |
|
$ |
4,623 |
|
|
$ |
25 |
|
|
$ |
2,383 |
|
|
$ |
541 |
|
|
$ |
23 |
|
|
$ |
13 |
|
|
$ |
523 |
|
|
$ |
16 |
|
|
$ |
169 |
|
|
$ |
1,409 |
|
|
$ |
9,725 |
|
|
Charge-offs |
|
|
(5,977 |
) |
|
|
— |
|
|
|
(2,022 |
) |
|
|
(213 |
) |
|
|
(54 |
) |
|
|
(11 |
) |
|
|
(1,191 |
) |
|
|
— |
|
|
|
(277 |
) |
|
|
(— |
) |
|
|
(9,745 |
) |
|
Recoveries |
|
|
111 |
|
|
|
— |
|
|
|
19 |
|
|
|
— |
|
|
|
7 |
|
|
|
1 |
|
|
|
19 |
|
|
|
— |
|
|
|
130 |
|
|
|
— |
|
|
|
287 |
|
|
Provisions |
|
|
7,411 |
|
|
|
3 |
|
|
|
3,070 |
|
|
|
679 |
|
|
|
36 |
|
|
|
18 |
|
|
|
1,531 |
|
|
|
2 |
|
|
|
117 |
|
|
|
113 |
|
|
|
12,980 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance |
|
$ |
6,168 |
|
|
$ |
28 |
|
|
$ |
3,450 |
|
|
$ |
1,007 |
|
|
$ |
12 |
|
|
$ |
21 |
|
|
$ |
882 |
|
|
$ |
18 |
|
|
$ |
139 |
|
|
$ |
1,522 |
|
|
$ |
13,247 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance: individually evaluated for impairment |
|
$ |
803 |
|
|
$ |
— |
|
|
$ |
916 |
|
|
$ |
546 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
102 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
2,367 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance: collectively evaluated for impairment |
|
$ |
5,365 |
|
|
$ |
28 |
|
|
$ |
2,534 |
|
|
$ |
461 |
|
|
$ |
12 |
|
|
$ |
21 |
|
|
$ |
780 |
|
|
$ |
18 |
|
|
$ |
139 |
|
|
$ |
1,522 |
|
|
$ |
10,880 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance |
|
$ |
90,145 |
|
|
$ |
26,661 |
|
|
$ |
120,278 |
|
|
$ |
217,709 |
|
|
$ |
4,209 |
|
|
$ |
2,261 |
|
|
$ |
60,238 |
|
|
$ |
28,215 |
|
|
$ |
17,915 |
|
|
$ |
— |
|
|
$ |
567,631 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance: individually evaluated for impairment |
|
$ |
15,940 |
|
|
$ |
— |
|
|
$ |
6,103 |
|
|
$ |
3,812 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
397 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
26,252 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balance: collectively evaluated for impairment |
|
$ |
74,205 |
|
|
$ |
26,661 |
|
|
$ |
114,175 |
|
|
$ |
213,897 |
|
|
$ |
4,209 |
|
|
$ |
2,261 |
|
|
$ |
59,841 |
|
|
$ |
28,215 |
|
|
$ |
17,915 |
|
|
$ |
— |
|
|
$ |
541,379 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans are closely monitored by management for changes in quality. This monitoring includes assessing the appropriateness of the credit quality indicator in relation to the risk of the loan. Management uses the following indicators to grade the risk of each loan based on a system of eight possible ratings.
Pass: Include loans that are risk rated one through three. The primary source of repayment for pass loans is very likely to be sufficient, with secondary sources readily available; strong financial position; minimal risk; profitability, liquidity and capitalization are better than industry norms.
Weak Pass: Include loans that are risk rated four. The asset quality for weak pass assets is generally acceptable. Primary source of loan repayment is acceptable and secondary sources are likely to be realized, if needed; acceptable business credit, but borrowers operations, cash flow, or financial condition evidence more than average risk; requires above average levels of supervision and attention from Loan Officer. The source of increased risk has been identified, can be effectively managed/corrected, and the increased risk is not significant to warrant a more severe rating.
Special Mention: Include loans that are risk rated five. A special mention asset is considered to be high risk due to potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or in the Company's credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification.
Substandard: Include loans that are risk rated six through eight. Loans rated as substandard are considered to be very high risk. A substandard asset is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weakness that jeopardizes the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. Some loans that are substandard do not meet the definition of an impaired loan and therefore are not deemed impaired.
The following tables present loans as of September 30, 2011 and December 31, 2010 classified by risk type:
Credit Quality Indicators
As of September 30, 2011
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Pass |
|
|
Weak Pass |
|
|
Special
Mention |
|
|
Substandard |
|
|
Total |
|
| |
|
(Dollars in thousands) |
|
|
Real Estate—Construction and Land Development Loans |
|
$ |
28,042 |
|
|
$ |
23,173 |
|
|
$ |
6,289 |
|
|
$ |
13,670 |
|
|
$ |
71,174 |
|
|
Real Estate—Secured by Farmland |
|
|
23,724 |
|
|
|
4,500 |
|
|
|
3,558 |
|
|
|
— |
|
|
|
31,782 |
|
|
Real Estate—Secured by Residential Properties |
|
|
61,587 |
|
|
|
36,253 |
|
|
|
10,989 |
|
|
|
8,995 |
|
|
|
117,824 |
|
|
Real Estate—Secured by Nonfarm Nonresidential |
|
|
94,931 |
|
|
|
79,452 |
|
|
|
23,191 |
|
|
|
13,905 |
|
|
|
211,479 |
|
|
Consumer Installment |
|
|
3,438 |
|
|
|
1,587 |
|
|
|
228 |
|
|
|
101 |
|
|
|
5,354 |
|
|
Credit Cards and Related Plans |
|
|
1,160 |
|
|
|
670 |
|
|
|
111 |
|
|
|
290 |
|
|
|
2,231 |
|
|
Commercial and Industrial |
|
|
22,938 |
|
|
|
17,516 |
|
|
|
1,899 |
|
|
|
1,848 |
|
|
|
44,201 |
|
|
Loans to Finance Agriculture Production |
|
|
14,735 |
|
|
|
3,829 |
|
|
|
2,346 |
|
|
|
— |
|
|
|
20,910 |
|
|
All Other Loans |
|
|
5,912 |
|
|
|
10,735 |
|
|
|
22 |
|
|
|
2 |
|
|
|
16,671 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
256,467 |
|
|
$ |
177,715 |
|
|
$ |
48,633 |
|
|
$ |
38,811 |
|
|
$ |
521,626 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Credit Quality Indicators
As of December 31, 2010
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Pass |
|
|
Weak Pass |
|
|
Special
Mention |
|
|
Substandard |
|
|
Total |
|
| |
|
(Dollars in thousands) |
|
|
Real Estate—Construction and Land Development Loans |
|
$ |
35,356 |
|
|
$ |
27,978 |
|
|
$ |
9,466 |
|
|
$ |
17,345 |
|
|
$ |
90,145 |
|
|
Real Estate—Secured by Farmland |
|
|
17,869 |
|
|
|
6,294 |
|
|
|
2,495 |
|
|
|
3 |
|
|
|
26,661 |
|
|
Real Estate—Secured by Residential Properties |
|
|
64,457 |
|
|
|
43,364 |
|
|
|
3,469 |
|
|
|
8,988 |
|
|
|
120,278 |
|
|
Real Estate—Secured by Nonfarm Nonresidential |
|
|
94,208 |
|
|
|
96,287 |
|
|
|
20,107 |
|
|
|
7,107 |
|
|
|
217,709 |
|
|
Consumer Installment |
|
|
2,466 |
|
|
|
1,460 |
|
|
|
265 |
|
|
|
18 |
|
|
|
4,209 |
|
|
Credit Cards and Related Plans |
|
|
1,211 |
|
|
|
869 |
|
|
|
89 |
|
|
|
92 |
|
|
|
2,261 |
|
|
Commercial and Industrial |
|
|
33,416 |
|
|
|
22,805 |
|
|
|
3,292 |
|
|
|
725 |
|
|
|
60,238 |
|
|
Loans to Finance Agriculture Production |
|
|
18,346 |
|
|
|
7,230 |
|
|
|
2,639 |
|
|
|
— |
|
|
|
28,215 |
|
|
All Other Loans |
|
|
8,442 |
|
|
|
9,341 |
|
|
|
119 |
|
|
|
13 |
|
|
|
17,915 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
275,771 |
|
|
$ |
215,628 |
|
|
$ |
41,941 |
|
|
$ |
34,291 |
|
|
$ |
567,631 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables summarize the past due loans by category as of September 30, 2011 and December 31, 2010:
Past Due Loans
As of September 30, 2011
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
30-59 Days
Past Due |
|
|
60-89 Days
Past Due |
|
|
Greater than
89 Days |
|
|
Total Past
Due |
|
|
Current |
|
|
Total |
|
| |
|
(Dollars in thousands) |
|
|
Real Estate Construction and Land Development |
|
$ |
99 |
|
|
$ |
— |
|
|
$ |
8,537 |
|
|
$ |
8,636 |
|
|
$ |
62,538 |
|
|
$ |
71,174 |
|
|
Real Estate Secured by Farmland |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31,782 |
|
|
|
31,782 |
|
|
Real Estate Secured by Residential Properties |
|
|
2,248 |
|
|
|
682 |
|
|
|
1,841 |
|
|
|
4,771 |
|
|
|
113,053 |
|
|
|
117,824 |
|
|
Real Estate Secured by Nonfarm Nonresidential |
|
|
1,490 |
|
|
|
1,850 |
|
|
|
3,492 |
|
|
|
6,832 |
|
|
|
204,647 |
|
|
|
211,479 |
|
|
Consumer Installment |
|
|
3 |
|
|
|
6 |
|
|
|
— |
|
|
|
9 |
|
|
|
5,345 |
|
|
|
5,354 |
|
|
Credit Cards and Related Plans |
|
|
1 |
|
|
|
— |
|
|
|
200 |
|
|
|
201 |
|
|
|
2,030 |
|
|
|
2,231 |
|
|
Commercial and Industrial |
|
|
42 |
|
|
|
— |
|
|
|
253 |
|
|
|
295 |
|
|
|
43,906 |
|
|
|
44,201 |
|
|
Loans to Finance Agricultural Production |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
20,910 |
|
|
|
20,910 |
|
|
All Other Loans |
|
|
26 |
|
|
|
— |
|
|
|
— |
|
|
|
26 |
|
|
|
16,645 |
|
|
|
16,671 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
3,909 |
|
|
$ |
2,538 |
|
|
$ |
14,323 |
|
|
$ |
20,770 |
|
|
$ |
500,856 |
|
|
$ |
521,626 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Past Due Loans
As of December 31, 2010
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
30-59 Days
Past Due |
|
|
60-89 Days
Past Due |
|
|
Greater than
90 Days |
|
|
Total Past
Due |
|
|
Current |
|
|
Total |
|
| |
|
(Dollars in thousands) |
|
|
Real Estate Construction and Land Development |
|
$ |
2,997 |
|
|
$ |
929 |
|
|
$ |
9,627 |
|
|
$ |
13,553 |
|
|
$ |
76,592 |
|
|
$ |
90,145 |
|
|
Real Estate Secured by Farmland |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
26,661 |
|
|
|
26,661 |
|
|
Real Estate Secured by Residential Properties |
|
|
251 |
|
|
|
389 |
|
|
|
2,526 |
|
|
|
3,166 |
|
|
|
117,112 |
|
|
|
120,278 |
|
|
Real Estate Secured by Nonfarm Nonresidential |
|
|
545 |
|
|
|
— |
|
|
|
919 |
|
|
|
1,464 |
|
|
|
216,245 |
|
|
|
217,709 |
|
|
Consumer Installment |
|
|
35 |
|
|
|
6 |
|
|
|
5 |
|
|
|
46 |
|
|
|
4,163 |
|
|
|
4,209 |
|
|
Credit Cards and Related Plans |
|
|
3 |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
2,258 |
|
|
|
2,261 |
|
|
Commercial and Industrial |
|
|
111 |
|
|
|
19 |
|
|
|
553 |
|
|
|
683 |
|
|
|
59,555 |
|
|
|
60,238 |
|
|
Loans to Finance Agricultural Production |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
28,215 |
|
|
|
28,215 |
|
|
All Other Loans |
|
|
22 |
|
|
|
4 |
|
|
|
— |
|
|
|
26 |
|
|
|
17,889 |
|
|
|
17,915 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
$ |
3,964 |
|
|
$ |
1,347 |
|
|
$ |
13,630 |
|
|
$ |
18,941 |
|
|
$ |
548,690 |
|
|
$ |
567,631 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables summarize impaired loans as of September 30, 2011 and December 31, 2010. The recorded investment balance includes the loan balance, deferred fees that have yet to be recognized and accrued interest. The deferred fees that have yet to be recognized are not material amounts. At September 30, 2011, $14.0 million of the recorded investment in impaired loans were loans that were written down through partial charge-offs of $8.9 million. At December 31, 2010, $11.8 million of the recorded investment in impaired loans were loans that were written down through partial charge-offs of $7.3 million.
Impaired Loans
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Balance at
September 30, 2011 |
|
|
Nine Months Ended
September 30, 2011 |
|
|
Three Months Ended
September 30, 2011 |
|
| |
|
Recorded
Investment |
|
|
Unpaid
Principal
Balance |
|
|
Related
Allowance |
|
|
Average
Recorded
Investment |
|
|
Interest
Income
Recognized |
|
|
Average
Recorded
Investment |
|
|
Interest
Income
Recognized |
|
| |
|
(Dollars in thousands) |
|
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Construction and Land Development |
|
$ |
9,766 |
|
|
$ |
15,847 |
|
|
$ |
— |
|
|
$ |
8,009 |
|
|
$ |
98 |
|
|
$ |
8,389 |
|
|
$ |
32 |
|
|
Real Estate Secured by Farmland |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Real Estate Secured by Residential Properties |
|
|
3,546 |
|
|
|
3,880 |
|
|
|
— |
|
|
|
3,858 |
|
|
|
58 |
|
|
|
3,881 |
|
|
|
21 |
|
|
Real Estate Secured by Nonfarm Nonresidential |
|
|
5,779 |
|
|
|
7,245 |
|
|
|
— |
|
|
|
2,220 |
|
|
|
47 |
|
|
|
3,626 |
|
|
|
25 |
|
|
Consumer Installment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
|
|
|
|
|
— |
|
|
Credit Cards and Related Plans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Commercial and Industrial |
|
|
413 |
|
|
|
650 |
|
|
|
— |
|
|
|
359 |
|
|
|
10 |
|
|
|
344 |
|
|
|
3 |
|
|
Loans to Finance Agricultural Production |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
All Other Loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans with no related allowance |
|
$ |
19,504 |
|
|
$ |
27,622 |
|
|
$ |
— |
|
|
$ |
14,446 |
|
|
$ |
213 |
|
|
$ |
16,240 |
|
|
$ |
81 |
|
| |
|
|
|
|
|
|
|
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Construction and Land Development |
|
$ |
2,807 |
|
|
$ |
3,478 |
|
|
$ |
940 |
|
|
$ |
7,449 |
|
|
$ |
91 |
|
|
$ |
5,935 |
|
|
$ |
22 |
|
|
Real Estate Secured by Farmland |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Real Estate Secured by Residential Properties |
|
|
4,138 |
|
|
|
4,135 |
|
|
|
1,059 |
|
|
|
4,064 |
|
|
|
62 |
|
|
|
4,367 |
|
|
|
24 |
|
|
Real Estate Secured by Nonfarm Nonresidential |
|
|
3,983 |
|
|
|
4,046 |
|
|
|
999 |
|
|
|
3,889 |
|
|
|
82 |
|
|
|
5,178 |
|
|
|
35 |
|
|
Consumer Installment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Credit Cards and Related Plans |
|
|
200 |
|
|
|
200 |
|
|
|
200 |
|
|
|
200 |
|
|
|
7 |
|
|
|
200 |
|
|
|
2 |
|
|
Commercial and Industrial |
|
|
958 |
|
|
|
951 |
|
|
|
510 |
|
|
|
601 |
|
|
|
17 |
|
|
|
995 |
|
|
|
9 |
|
|
Loans to Finance Agricultural Production |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
All Other Loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans with related allowance recorded |
|
$ |
12,086 |
|
|
$ |
12,810 |
|
|
$ |
3,708 |
|
|
$ |
16,203 |
|
|
$ |
259 |
|
|
$ |
16,675 |
|
|
$ |
92 |
|
| |
|
|
|
|
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Land Development |
|
$ |
12,573 |
|
|
$ |
19,325 |
|
|
$ |
940 |
|
|
$ |
15,458 |
|
|
$ |
189 |
|
|
$ |
14,324 |
|
|
$ |
54 |
|
|
Residential |
|
|
7,684 |
|
|
|
8,015 |
|
|
|
1,059 |
|
|
|
7,922 |
|
|
|
120 |
|
|
|
8,248 |
|
|
|
45 |
|
|
Commercial |
|
|
11,133 |
|
|
|
12,892 |
|
|
|
1,509 |
|
|
|
7,069 |
|
|
|
156 |
|
|
|
10,143 |
|
|
|
72 |
|
|
Consumer |
|
|
200 |
|
|
|
200 |
|
|
|
200 |
|
|
|
200 |
|
|
|
7 |
|
|
|
200 |
|
|
|
2 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans |
|
$ |
31,590 |
|
|
$ |
40,432 |
|
|
$ |
3,708 |
|
|
$ |
30,649 |
|
|
$ |
472 |
|
|
$ |
32,915 |
|
|
$ |
173 |
|
Impaired Loans
As of December 31, 2010
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Recorded
Investment |
|
|
Unpaid
Principal
Balance |
|
|
Related
Allowance |
|
| |
|
(Dollars in thousands) |
|
|
With no related allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Construction and Land Development |
|
$ |
9,212 |
|
|
$ |
13,354 |
|
|
$ |
— |
|
|
Real Estate Secured by Farmland |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Real Estate Secured by Residential Properties |
|
|
2,700 |
|
|
|
2,972 |
|
|
|
— |
|
|
Real Estate Secured by Nonfarm Nonresidential |
|
|
1,029 |
|
|
|
1,097 |
|
|
|
— |
|
|
Consumer Installment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Credit Cards and Related Plans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Commercial and Industrial |
|
|
218 |
|
|
|
217 |
|
|
|
— |
|
|
Loans to Finance Agricultural Production |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
All Other Loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans with no related allowance |
|
$ |
13,159 |
|
|
$ |
17,640 |
|
|
$ |
— |
|
| |
|
|
|
|
With an allowance recorded: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Construction and Land Development |
|
$ |
6,771 |
|
|
$ |
9,497 |
|
|
$ |
803 |
|
|
Real Estate Secured by Farmland |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Real Estate Secured by Residential Properties |
|
|
3,411 |
|
|
|
3,405 |
|
|
|
915 |
|
|
Real Estate Secured by Nonfarm Nonresidential |
|
|
2,794 |
|
|
|
2,784 |
|
|
|
546 |
|
|
Consumer Installment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Credit Cards and Related Plans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Commercial and Industrial |
|
|
179 |
|
|
|
199 |
|
|
|
102 |
|
|
Loans to Finance Agricultural Production |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
All Other Loans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans with related allowance recorded |
|
$ |
13,155 |
|
|
$ |
15,885 |
|
|
$ |
2,366 |
|
| |
|
|
|
|
Total |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and Land Development |
|
$ |
15,983 |
|
|
$ |
22,851 |
|
|
$ |
803 |
|
|
Residential |
|
|
6,111 |
|
|
|
6,377 |
|
|
|
915 |
|
|
Commercial |
|
|
4,220 |
|
|
|
4,297 |
|
|
|
648 |
|
|
Consumer |
|
|
— |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans |
|
$ |
26,314 |
|
|
$ |
33,525 |
|
|
$ |
2,366 |
|
The following table presents nonaccrual loans as of September 30, 2011 and December 31, 2010 by loan category:
Nonaccrual Loans
| |
|
|
|
|
|
|
|
|
| |
|
September 30,
2011 |
|
|
December 31,
2010 |
|
| |
|
(Dollars in thousands) |
|
|
Real Estate Construction and Land Development |
|
$ |
9,817 |
|
|
$ |
10,839 |
|
|
Real Estate Secured by Farmland |
|
|
— |
|
|
|
— |
|
|
Real Estate Secured by Residential Properties |
|
|
4,630 |
|
|
|
3,268 |
|
|
Real Estate Secured by Nonfarm Nonresidential |
|
|
5,797 |
|
|
|
1,231 |
|
|
Consumer Installment |
|
|
— |
|
|
|
5 |
|
|
Credit Cards and Related Plans |
|
|
200 |
|
|
|
— |
|
|
Commercial and Industrial |
|
|
297 |
|
|
|
553 |
|
|
Loans to Finance Agricultural Production |
|
|
— |
|
|
|
— |
|
|
All Other Loans |
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
Total |
|
$ |
20,741 |
|
|
$ |
15,896 |
|
| |
|
|
|
|
|
|
|
|
For the three and nine months ended September 30, 2011 the following table presents a breakdown of the types of concessions made by loan class. The recorded investment balances presented are balances at the time of concessions.
Troubled Debt Restructurings
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months ended September 30, 2011 |
|
|
Nine Months ended September 30, 2011 |
|
| |
|
Number of
Loans |
|
|
Pre-Modification
Outstanding
Recorded
Investment |
|
|
Post-Modification
Outstanding
Recorded
Investment |
|
|
Number of
Loans |
|
|
Pre-Modification
Outstanding
Recorded
Investment |
|
|
Post-Modification
Outstanding
Recorded
Investment |
|
| |
|
|
|
|
|
|
|
(Dollars in thousands) |
|
|
|
|
|
|
|
|
Below market interest rate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Secured by Residential Properties |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
1 |
|
|
$ |
219 |
|
|
$ |
219 |
|
|
Real Estate Secured by Nonfarm Nonresidential |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
1,145 |
|
|
|
1,145 |
|
|
Credit Cards and Related Plans |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1 |
|
|
|
33 |
|
|
|
33 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total below market interest rate |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
3 |
|
|
$ |
1,397 |
|
|
$ |
1,397 |
|
| |
|
|
|
|
|
|
|
Extended payment terms: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Construction and Land Development |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
1 |
|
|
$ |
56 |
|
|
$ |
56 |
|
|
Real Estate Secured by Residential Properties |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
3 |
|
|
|
1,549 |
|
|
|
1,549 |
|
|
Real Estate Secured by Nonfarm Nonresidential |
|
|
3 |
|
|
|
918 |
|
|
|
918 |
|
|
|
3 |
|
|
|
918 |
|
|
|
918 |
|
|
Commercial and Industrial |
|
|
2 |
|
|
|
227 |
|
|
|
227 |
|
|
|
2 |
|
|
|
227 |
|
|
|
227 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Extended Payment Terms |
|
|
5 |
|
|
$ |
1,145 |
|
|
$ |
1,145 |
|
|
|
9 |
|
|
$ |
2,750 |
|
|
$ |
2,750 |
|
| |
|
|
|
|
|
|
|
Forgiveness of principal: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate Construction and Land Development |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
10 |
|
|
$ |
925 |
|
|
$ |
860 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total forgiveness of principal |
|
|
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
|
10 |
|
|
$ |
925 |
|
|
$ |
860 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
5 |
|
|
$ |
1,145 |
|
|
$ |
1,145 |
|
|
|
22 |
|
|
$ |
5,072 |
|
|
$ |
5,007 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents the successes and failures of the types of modifications within the previous nine months as of September 30, 2011. The recorded investment balances presented are as of September 30, 2011.
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Paid in Full |
|
|
Paying as Restructured |
|
|
Converted to Non-accrual |
|
|
Foreclosure/Default |
|
| |
|
Number of
Loans |
|
|
Recorded
Investment |
|
|
Number of
Loans |
|
|
Recorded
Investment |
|
|
Number of
Loans |
|
|
Recorded
Investment |
|
|
Number of
Loans |
|
|
Recorded
Investment |
|
| |
|
(Dollars in thousands) |
|
|
Below market interest rate |
|
|
— |
|
|
$ |
— |
|
|
|
3 |
|
|
$ |
1,395 |
|
|
|
— |
|
|
$ |
— |
|
|
|
— |
|
|
$ |
— |
|
|
Extended payment terms |
|
|
— |
|
|
|
— |
|
|
|
8 |
|
|
|
2,588 |
|
|
|
1 |
|
|
|
166 |
|
|
|
— |
|
|
|
— |
|
|
Forgiveness of principal |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
10 |
|
|
|
828 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total |
|
|
— |
|
|
|
— |
|
|
|
11 |
|
|
$ |
3,983 |
|
|
|
11 |
|
|
|
994 |
|
|
|
— |
|
|
|
— |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Of the loans listed above only one loan in the amount of $166 thousand converted to non-accrual during the three months ended September 30, 2011. There were no loans that were restructured during the three or nine months ending on September 30, 2011 that were ninety days or more past due and therefore had a payment default.
Loans which management identifies as impaired generally will be nonperforming loans or restructured loans (also known as "troubled debt restructurings" or "TDR's"). As a result of adopting the amendments in ASU 2011-02, the Company reassessed all restructurings that occurred on or after the beginning of the fiscal year of adoption (January 1, 2011) to determine whether they are considered troubled debt restructurings (TDRs) under the amended guidance. The Company identified no loans as TDRs which the allowance for loan losses had previously been measured under a general allowance methodology. |