Note 6 - Loans and Allowance for Loan Losses

Loans outstanding, by classification, at December 31, 2013 and 2012 are summarized below.



	December 31,
(in thousands)	2013			2012
Investment properties	$	4,566,679		4,416,481
1-4 family properties	1,163,253			1,286,042
Land acquisition	707,820			795,341
Total commercial real estate	6,437,752			6,497,864
Commercial, financial and agricultural	5,498,739			5,291,078
Owner-occupied	3,814,720			3,762,024
Small business	687,216			516,349
Total commercial and industrial	10,000,675			9,569,451
Home equity lines	1,587,541			1,542,397
Consumer mortgages	1,519,068			1,411,561
Credit cards	256,846			263,561
Other retail loans	284,778			277,229
Total retail	3,648,233			3,494,748
Total loans	20,086,660			19,562,063
Deferred fees and costs, net	(28,862		)	(20,373	)
Total loans, net of deferred fees and costs	$	20,057,798		19,541,690

A substantial portion of the loan portfolio is secured by real estate in markets located throughout Georgia, Alabama, Tennessee, South Carolina, and Florida. Accordingly, the ultimate collectability of a substantial portion of the loan portfolio is susceptible to changes in market conditions in these areas.

As previously announced, in January 2014, Synovus Bank completed a transaction in which certain assets, including selected loans, associated with the Memphis, Tennessee, operations of Trust One Bank, a division of Synovus Bank, were sold to IBERIABANK ("IBERIABANK"). Total loans, net of deferred fees and costs of $88.2 million were sold and are included in the table above. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 26 - Subsequent Events" of this Report for further information.

The following is a summary of current, accruing past due, and non-accrual loans by class as of December 31, 2013 and 2012.



Current, Accruing Past Due, and Non-accrual Loans
	December 31, 2013
( in thousands)	Current		Accruing 30-89 Days Past Due	Accruing 90 Days or Greater Past Due	Total Accruing Past Due	Non-accrual	Total
Investment properties	$	4,496,633	3,552	40	3,592	66,454	4,566,679
1-4 family properties	1,122,640		6,267	527	6,794	33,819	1,163,253
Land acquisition	552,325		1,100	300	1,400	154,095	707,820
Total commercial real estate	6,171,598		10,919	867	11,786	254,368	6,437,752
Commercial, financial and agricultural	5,422,139		16,251	721	16,972	59,628	5,498,739
Owner-occupied	3,768,333		9,341	66	9,407	36,980	3,814,720
Small business	676,947		4,506	155	4,661	5,608	687,216
Total commercial and industrial	9,867,419		30,098	942	31,040	102,216	10,000,675
Home equity lines	1,564,578		4,919	136	5,055	17,908	1,587,541
Consumer mortgages	1,460,219		18,068	1,011	19,079	39,770	1,519,068
Credit cards	253,422		1,917	1,507	3,424	—	256,846
Other retail loans	280,524		2,190	26	2,216	2,038	284,778
Total retail	3,558,743		27,094	2,680	29,774	59,716	3,648,233
Total loans	$	19,597,760	68,111	4,489	72,600	416,300	20,086,660	⁽¹⁾

	December 31, 2012
( in thousands)	Current		Accruing 30-89 Days Past Due	Accruing 90 Days or Greater Past Due	Total Accruing Past Due	Non-accrual	Total
Investment properties	$	4,318,379	5,436	798	6,234	91,868	4,416,481
1-4 family properties	1,200,370		13,053	41	13,094	72,578	1,286,042
Land acquisition	600,146		3,422	298	3,720	191,475	795,341
Total commercial real estate	6,118,895		21,911	1,137	23,048	355,921	6,497,864
Commercial, financial and agricultural	5,194,916		15,742	845	16,587	79,575	5,291,078
Owner-occupied	3,700,793		17,784	61	17,845	43,386	3,762,024
Small business	505,526		4,935	338	5,273	5,550	516,349
Total commercial and industrial	9,401,235		38,461	1,244	39,705	128,511	9,569,451
Home equity lines	1,515,396		9,555	705	10,260	16,741	1,542,397
Consumer mortgages	1,348,506		22,502	1,288	23,790	39,265	1,411,561
Credit cards	258,698		2,450	2,413	4,863	—	263,561
Other retail loans	271,175		3,135	24	3,159	2,895	277,229
Total retail	3,393,775		37,642	4,430	42,072	58,901	3,494,748
Total loans	$	18,913,905	98,014	6,811	104,825	543,333	19,562,063	⁽²⁾

⁽¹⁾Total before net deferred fees and costs of $28.9 million.

⁽²⁾Total before net deferred fees and costs of $20.4 million.

Non-accrual loans as of December 31, 2013 and 2012 were $416.3 million and $543.3 million, respectively. Interest income on non-accrual loans outstanding at December 31, 2013 and 2012 that would have been recorded if the loans had been current and performed in accordance with their original terms was $27.7 million and $30.2 million, respectively. Interest income recorded on these loans for the years ended December 31, 2013 and 2012 was $5.8 million and $7.7 million, respectively.

The credit quality of the loan portfolio is summarized no less frequently than quarterly using the standard asset classification system utilized by the federal banking agencies. These classifications are divided into three groups – Not Classified (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows:

Pass - loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner.

Special Mention - loans which have potential weaknesses that deserve management's close attention. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.

Substandard - loans which are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - loans which have all the weaknesses inherent in loans classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values.

Loss - loans which are considered by management to be uncollectible and of such little value that its continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off is not warranted.

In the following tables, retail loans and small business loans are classified as Pass except when they reach 90 days past due or are downgraded to substandard, and upon reaching 120 days past due, they are downgraded to loss and charged off, in accordance with the FFIEC Uniform Retail Credit Classification and Account Management Policy. The risk grade classifications of retail loans secured by junior liens on 1-4 family residential properties also consider available information on the payment status of the associated senior lien with other financial institutions.



Loan Portfolio Credit Exposure by Risk Grade
	December 31, 2013
(in thousands)	Pass		Special Mention	Substandard⁽¹⁾	Doubtful⁽²⁾	Loss		Total
Investment properties	$	4,150,790	249,890	164,275	1,724	—		4,566,679
1-4 family properties	898,409		126,715	129,775	8,062	292	^{(2) (3)}	1,163,253
Land acquisition	424,444		94,316	186,513	2,547	—		707,820
Total commercial real estate	5,473,643		470,921	480,563	12,333	292	^{(2) (3)}	6,437,752
Commercial, financial and agricultural	5,062,333		224,620	201,410	10,286	90	^{(2) (3)}	5,498,739
Owner-occupied	3,495,407		155,097	162,406	1,810	—		3,814,720
Small business	674,200		—	12,219	—	797	^{(2) (4)}	687,216
Total commercial and industrial	9,231,940		379,717	376,035	12,096	887		10,000,675
Home equity lines	1,559,272		—	24,931	—	3,338	^{(2) (4)}	1,587,541
Consumer mortgages	1,475,928		—	40,935	—	2,205	^{(2) (4)}	1,519,068
Credit cards	255,339		—	541	—	966	⁽⁴⁾	256,846
Other retail loans	281,179		—	3,400	—	199	^{(2) (4)}	284,778
Total retail	3,571,718		—	69,807	—	6,708		3,648,233
Total loans	$	18,277,301	850,638	926,405	24,429	7,887		20,086,660	⁽⁵⁾

	December 31, 2012
(in thousands)	Pass		Special Mention	Substandard⁽¹⁾	Doubtful⁽²⁾	Loss		Total
Investment properties	$	3,699,465	463,532	253,484	—	—		4,416,481
1-4 family properties	910,149		197,149	176,672	1,953	119	^{(2) (3)}	1,286,042
Land acquisition	417,935		143,684	227,761	5,961	—		795,341
Total commercial real estate	5,027,549		804,365	657,917	7,914	119	^{(2) (3)}	6,497,864
Commercial, financial and agricultural	4,719,417		311,475	249,122	10,964	100		5,291,078
Owner-occupied	3,301,220		261,116	198,833	855	—		3,762,024
Small business	504,491		—	10,563	—	1,295	^{(2) (4)}	516,349
Total commercial and industrial	8,525,128		572,591	458,518	11,819	1,395		9,569,451
Home equity lines	1,511,729		—	29,094	—	1,574	⁽²⁾⁽⁴⁾	1,542,397
Consumer mortgages	1,371,659		—	39,321	—	581	⁽²⁾⁽⁴⁾	1,411,561
Credit cards	260,194		—	1,776	—	1,591	⁽⁴⁾	263,561
Other retail loans	272,917		—	4,093	—	219	⁽²⁾⁽⁴⁾	277,229
Total retail	3,416,499		—	74,284	—	3,965		3,494,748
Total loans	$	16,969,176	1,376,956	1,190,719	19,733	5,479		19,562,063	⁽⁶⁾


⁽¹⁾	Includes $384.0 million and $518.1 million of non-accrual substandard loans at December 31, 2013 and December 31, 2012, respectively.

⁽²⁾ The loans within these risk grades are on non-accrual status.

⁽³⁾ Amount was fully reserved and charged-off in the subsequent quarter.

⁽⁴⁾Represent amounts that were 120 days past due. These credits are downgraded to the loss category with an allowance for loan losses equal to the full loan amount and are charged off in the subsequent quarter.

⁽⁵⁾Total before net deferred fees and costs of $28.9 million.

⁽⁶⁾Total before net deferred fees and costs of $20.4 million.

The following table details the change in the allowance for loan losses by loan segment for the years ended December 31, 2013, 2012 and 2011.



Allowance for Loan Losses and Recorded Investment in Loans
	As Of and For The Year Ended December 31, 2013
(in thousands)	Commercial Real Estate			Commercial & Industrial			Retail			Unallocated			Total
Allowance for loan losses
Beginning balance	$	167,926		138,495			38,984			28,000			373,405
Charge-offs	(86,990		)	(58,977		)	(33,986		)	—			(179,953	)
Recoveries	17,068			19,918			7,524			—			44,510
Provision for loan losses	29,008			16,633			28,957			(5,000		)	69,598
Ending balance	$	127,012		116,069			41,479			23,000			307,560
Ending balance: individually evaluated for impairment	46,737			20,068			1,192			—			67,997
Ending balance: collectively evaluated for impairment	$	80,275		96,001			40,287			23,000			239,563
Loans
Ending balance: total loans⁽¹⁾	$	6,437,752		10,000,675			3,648,233			—			20,086,660
Ending balance: individually evaluated for impairment	537,736			243,856			54,962			—			836,554
Ending balance: collectively evaluated for impairment	$	5,900,016		9,756,819			3,593,271			—			19,250,106

	As Of and For The Year Ended December 31, 2012
(in thousands)	Commercial Real Estate			Commercial & Industrial			Retail			Unallocated			Total
Allowance for loan losses
Beginning balance	$	249,094		187,409			51,993			47,998			536,494
Charge-offs	(316,699		)	(184,811		)	(55,265		)	—			(556,775	)
Recoveries	36,576			27,745			8,996			—			73,317
Provision for loan losses	198,955			108,152			33,260			(19,998		)	320,369
Ending balance	$	167,926		138,495			38,984			28,000			373,405
Ending balance: individually evaluated for impairment	58,948			24,678			1,149			—			84,775
Ending balance: collectively evaluated for impairment	$	108,978		$	113,817		$	37,835		$	28,000		288,630
Loans
Ending balance: total loans⁽²⁾	$	6,497,864		9,569,451			3,494,748			—			19,562,063
Ending balance: individually evaluated for impairment	685,078			313,876			63,566			—			1,062,520
Ending balance: collectively evaluated for impairment	$	5,812,786		9,255,575			3,431,182			—			18,499,543

	As Of and For The Year Ended December 31, 2011
(in thousands)	Commercial Real Estate			Commercial & Industrial			Retail			Unallocated			Total
Allowance for loan losses
Beginning balance	$	353,923		223,981			41,555			84,088			703,547
Charge-offs	(384,297		)	(179,717		)	(75,700		)	—			(639,714	)
Recoveries	25,604			19,768			8,494			—			53,866
Provision for loan losses	253,864			123,377			77,644			(36,090		)	418,795
Ending balance	$	249,094		187,409			51,993			47,998			536,494
Ending balance: individually evaluated for impairment	64,447			42,600			2,437			—			109,484
Ending balance: collectively evaluated for impairment	$	184,647		144,809			49,556			47,998			427,010
Loans
Ending balance: total loans⁽³⁾	$	7,282,420		9,229,805			3,579,574			—			20,091,799
Ending balance: individually evaluated for impairment	870,157			384,455			52,960			—			1,307,572
Ending balance: collectively evaluated for impairment	$	6,412,263		8,845,350			3,526,614			—			18,784,227

⁽¹⁾Total before net deferred fees and costs of $28.9 million.

⁽²⁾Total before net deferred fees and costs of $20.4 million.

⁽³⁾Total before net deferred fees and costs of $12.0 million.

Below is a detailed summary of impaired loans (including accruing TDRs) by class as of December 31, 2013 and 2012.



Impaired Loans (including accruing TDRs)	December 31, 2013
(in thousands)	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
With no related allowance recorded
Investment properties	$	14,218	15,820	—	18,046	—
1-4 family properties	9,679		29,741	—	23,879	—
Land acquisition	30,595		78,470	—	41,007	—
Total commercial real estate	54,492		124,031	—	82,932	—
Commercial, financial and agricultural	13,490		22,312	—	15,355	—
Owner-occupied	24,839		32,626	—	22,556	—
Small business	—		—	—	—	—
Total commercial and industrial	38,329		54,938	—	37,911	—
Home equity lines	—		—	—	33	—
Consumer mortgages	1,180		2,840	—	1,487	—
Credit cards	—		—	—	—	—
Other retail loans	—		—	—	4	—
Total retail	1,180		2,840	—	1,524	—
Total	94,001		181,809	—	122,367	—
With allowance recorded
Investment properties	185,152		192,859	8,822	226,308	5,043
1-4 family properties	115,063		117,410	11,126	115,614	3,464
Land acquisition	183,029		202,048	26,789	191,807	2,931
Total commercial real estate	483,244		512,317	46,737	533,729	11,438
Commercial, financial and agricultural	112,291		117,049	15,364	126,242	3,534
Owner-occupied	87,567		93,435	4,368	106,865	3,609
Small business	5,669		5,669	336	4,132	162
Total commercial and industrial	205,527		216,153	20,068	237,239	7,305
Home equity lines	2,750		2,750	116	4,668	176
Consumer mortgages	44,019		44,019	967	48,674	1,910
Credit card	—		—	—	—	—
Other retail loans	7,013		7,013	109	5,555	285
Total retail	53,782		53,782	1,192	58,897	2,371
Total	742,553		782,252	67,997	829,865	21,114
Total
Investment properties	199,370		208,679	8,822	244,354	5,043
1-4 family properties	124,742		147,151	11,126	139,493	3,464
Land acquisition	213,624		280,518	26,789	232,814	2,931
Total commercial real estate	537,736		636,348	46,737	616,661	11,438
Commercial, financial and agricultural	125,781		139,361	15,364	141,597	3,534
Owner-occupied	112,406		126,061	4,368	129,421	3,609
Small business	5,669		5,669	336	4,132	162
Total commercial and industrial	243,856		271,091	20,068	275,150	7,305
Home equity lines	2,750		2,750	116	4,701	176
Consumer mortgages	45,199		46,859	967	50,161	1,910
Credit cards	—		—	—	—	—
Other retail loans	7,013		7,013	109	5,559	285
Total retail	54,962		56,622	1,192	60,421	2,371
Total impaired loans	$	836,554	964,061	67,997	952,232	21,114



	December 31, 2012
(in thousands)	Recorded Investment		Unpaid Principal Balance	Related Allowance	Average Recorded Investment	Interest Income Recognized
With no related allowance recorded
Investment properties	$	10,939	14,130	—	42,947	—
1-4 family properties	40,793		117,869	—	97,434	—
Land acquisition	59,697		125,023	—	158,015	—
Total commercial real estate	111,429		257,022	—	298,396	—
Commercial, financial and agricultural	18,618		34,753	—	40,947	—
Owner-occupied	12,563		16,680	—	27,763	—
Small business	—		—	—	—	—
Total commercial and industrial	31,181		51,433	—	68,710	—
Home equity lines	51		51	—	2,811	—
Consumer mortgages	1,247		2,263	—	3,706	—
Credit cards	—		—	—	—	—
Other retail loans	7		15	—	127	—
Total retail	1,305		2,329	—	6,644	—
Total	143,915		310,784	—	373,750	—
With allowance recorded
Investment properties	253,851		254,339	20,209	230,848	6,144
1-4 family properties	114,207		117,505	11,414	141,529	4,347
Land acquisition	205,591		205,601	27,325	97,173	2,018
Total commercial real estate	573,649		577,445	58,948	469,550	12,509
Commercial, financial and agricultural	161,711		163,472	17,186	164,905	3,974
Owner-occupied	117,651		126,106	7,308	134,960	4,602
Small business	3,333		3,333	184	1,950	76
Total commercial and industrial	282,695		292,911	24,678	301,815	8,652
Home equity lines	8,696		8,696	195	7,071	237
Consumer mortgages	50,261		50,261	880	38,912	1,300
Credit cards	—		—	—	—	—
Other retail loans	3,304		3,304	74	2,543	167
Total retail	62,261		62,261	1,149	48,526	1,704
Total	918,605		932,617	84,775	819,891	22,865
Total
Investment properties	264,790		268,469	20,209	273,795	6,144
1-4 family properties	155,000		235,374	11,414	238,963	4,347
Land acquisition	265,288		330,624	27,325	255,188	2,018
Total commercial real estate	685,078		834,467	58,948	767,946	12,509
Commercial, financial and agricultural	180,329		198,225	17,186	205,852	3,974
Owner-occupied	130,214		142,786	7,308	162,723	4,602
Small business	3,333		3,333	184	1,950	76
Total commercial and industrial	313,876		344,344	24,678	370,525	8,652
Home equity lines	8,747		8,747	195	9,882	237
Consumer mortgages	51,508		52,524	880	42,618	1,300
Credit cards	—		—	—	—	—
Other retail loans	3,311		3,319	74	2,670	167
Total retail	63,566		64,590	1,149	55,170	1,704
Total impaired loans	$	1,062,520	1,243,401	84,775	1,193,641	22,865

The average recorded investment in impaired loans was $1.21 billion for the year ended December 31, 2011. Excluding accruing TDRs, there was no interest income recognized for the investment in impaired loans for the years ended December 31, 2013 , 2012, and 2011. Interest income recognized for accruing TDRs was $18.4 million for the year ended December 31, 2011. At December 31, 2013, 2012, and 2011, all impaired loans, other than $556.4 million, $673.4 million, and $668.5 million, respectively, of accruing TDRs, were on nonaccrual status.

Concessions provided in a TDR are primarily in the form of providing a below market interest rate given the borrower's credit risk, a period of time generally less than one year with a reduction of required principal and/or interest payments (e.g., interest only for a period of time), or extension of the maturity of the loan generally for less than one year. Insignificant periods of reduction of principal and/or interest payments, or one time deferrals of three months or less, are generally not considered to be financial concessions.

The following tables represent the post-modification balance, shown by type of concession, for loans modified or renewed during the years ended December 31, 2013 and 2012 that were reported as accruing or non-accruing TDRs.



TDRs by Concession Type
	Year Ended December 31, 2013
(in thousands, except contract data)	Number of Contracts	Principal Forgiveness		Below Market Interest Rate	Term Extensions and/or Other Concessions	Total
Investment properties	47	$	19,993	121,263	4,372	145,628
1-4 family properties	131	424		37,180	9,583	47,187
Land acquisition	28	74		113,726	10,175	123,975
Total commercial real estate	206	20,491		272,169	24,130	316,790
Commercial, financial and agricultural	78	2,283		22,399	19,529	44,211
Owner-occupied	40	—		28,988	22,801	51,789
Small business	52	—		1,553	3,497	5,050
Total commercial and industrial	170	2,283		52,940	45,827	101,050
Home equity lines	1	—		—	80	80
Consumer mortgages	141	—		11,513	4,196	15,709
Credit cards	—	—		—	—	—
Other retail loans	65	—		1,118	1,598	2,716
Total retail	207	—		12,631	5,874	18,505
Total loans	583	$	22,774	337,740	75,831	436,345	⁽¹⁾

⁽¹⁾As a result of these loans being reported as TDRs, there were net charge-offs of approximately $4 million recorded during 2013.



TDRs by Concession Type
	Year Ended December 31, 2012
(in thousands, except contract data)	Number of Contracts	Principal Forgiveness		Below Market Interest Rate	Term Extensions and/or Other Concessions	Total
Investment properties	74	$	77	93,732	47,184	140,993
1-4 family properties	130	404		60,735	15,061	76,200
Land acquisition	78	—		62,585	21,394	83,979
Total commercial real estate	282	481		217,052	83,639	301,172
Commercial, financial and agricultural	116	35,058		45,712	26,810	107,580
Owner-occupied	70	—		38,285	9,655	47,940
Small business	40	—		1,055	3,470	4,525
Total commercial and industrial	226	35,058		85,052	39,935	160,045
Home equity lines	22	—		985	2,330	3,315
Consumer mortgages	326	—		10,202	21,794	31,996
Credit cards	—	—		—	—	—
Other retail loans	87	—		1,359	3,957	5,316
Total retail	435	—		12,546	28,081	40,627
Total loans	943	$	35,539	314,650	151,655	501,844	⁽¹⁾

⁽¹⁾As a result of these loans being reported as TDRs, there were net charge-offs of approximately $16 million recorded during 2012.

The following table presents TDRs that defaulted in the years indicated and which were modified or renewed in a TDR within 12 months of the default date:



Troubled Debt Restructurings Entered Into That Subsequently Defaulted⁽¹⁾During
	Year Ended December 31, 2013			Year Ended December 31, 2012⁽²⁾
(in thousands, except contract data)	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
Investment properties	3	$	4,722	8	$	7,418
1-4 family properties	10	12,576		12	8,098
Land acquisition	1	125		10	9,925
Total commercial real estate	14	17,423		30	25,441
Commercial, financial and agricultural	4	776		6	2,973
Owner-occupied	2	924		7	4,968
Small business	2	24		3	322
Total commercial and industrial	8	1,724		16	8,263
Home equity lines	1	98		—	—
Consumer mortgages	18	1,496		9	2,788
Credit cards	—	—		—	—
Other retail loans	1	195		2	53
Total retail	20	1,789		11	2,841
Total loans	42	$	20,936	57	$	36,545

⁽¹⁾ Defaulted is defined as the earlier of the troubled debt restructuring being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments.

⁽²⁾ Amounts related to loans modified or renewed into TDRs within 12 months of the default date that subsequently defaulted during the year ended December 31, 2012 were previously disclosed as 80 contracts with recorded investment totaling $68.9 million. These amounts were revised in the table above due to a re-evaluation of the defaulted status of certain loans during this period.

If at the time that a loan was designated as a TDR the loan was not already impaired, the measurement of impairment resulting from the TDR designation changes from a general pool-level reserve to a specific loan measurement of impairment in accordance with ASC 310-10-35, Accounting By Creditors for Impairment of a Loan—an amendment of FASB Statements No. 5, ASC 450-20, and No. 15, ASC 310-40. Generally, the change in the allowance for loan losses resulting from such a TDR is not significant. At December 31, 2013, the allowance for loan losses allocated to accruing TDRs totaling $556.4 million was $27.7 million compared to accruing TDR's of $673.4 million with a related allowance for loan losses $41.4 million at December 31, 2012. Nonaccrual non-homogeneous loans (commercial-type impaired loan relationships greater than $1 million) that are designated as TDRs are individually measured for the amount of impairment, if any, both before and after the TDR designation.

In the ordinary course of business, Synovus Bank has made loans to certain Synovus and Synovus Bank executive officers and directors (including their associates and affiliates). Management believes that such loans are made substantially on the same terms, including interest rate and collateral, as those prevailing at the time for comparable transactions with unaffiliated customers.

The following is a summary of such loans and the activity in these loans for the year ended December 31, 2013.



(in thousands)
Balance at December 31, 2012	$	80,518
New loans	361,179
Repayments	(330,409		)
Loans charged-off	—
Balance at December 31, 2013	$	111,288

At December 31, 2013, there were no loans to executive officers and directors that were classified as nonaccrual, greater than 90 days past due and still accruing, or potential problem loans.