LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Dec. 31, 2012

Schedule of Accounts Notes Loans and Financial Receivables

Loans are stated at unpaid balances, net of unearned income and deferred loan fees. Balances within the major loans receivable categories are presented in the following table:

	December 31,
	2012		2011
	(Dollars in Thousands)
Commercial, financial & agricultural	$	174,217	$	142,960
Real estate – construction & development		114,199		130,270
Real estate – commercial & farmland		732,322		672,765
Real estate – residential		346,480		330,727
Consumer installment		40,178		37,296
Other		43,239		18,068
		1,450,635		1,332,086
Allowance for loan losses		23,593		35,156
Loans, net	$	1,427,042	$	1,296,930

Summary of Covered Loans According to Loan Type

Covered loans are shown below according to loan type as of the end of the years shown:

	2012		2011
	(Dollars in Thousands)
Commercial, financial & agricultural	$	32,606	$	41,867
Real estate – construction & development		70,184		77,077
Real estate – commercial & farmland		278,506		321,257
Real estate – residential		125,056		127,644
Consumer installment loans		1,360		3,644
	$	507,712	$	571,489

Summary of Trouble Debt Restructuring by Loan Class

The following table presents the amount of troubled debt restructurings by loan class, classified separately as accrual and non-accrual at December 31, 2012 and 2011.

As of December 31, 2012	Accruing Loans			Non-Accruing Loans
Loan class:	#	Balance (in thousands)		#	Balance (in thousands)
Commercial, financial & agricultural	5	$	802	-	$	-
Real estate – construction & development	5		1,735	-		-
Real estate – commercial & farmland	16		8,947	3		4,149
Real estate – residential	28		7,254	2		1,022
Consumer installment	1		6	-		-
Total	55	$	18,744	5	$	5,171
As of December 31, 2011	Accruing Loans			Non-Accruing Loans
Loan class:	#	Balance (in thousands)		#	Balance (in thousands)
Real estate – construction & development	6	$	1,774	5	$	2,122
Real estate – commercial & farmland	14		9,622	2		4,737
Real estate – residential	19		6,555	4		1,296
Total	39	$	17,951	11	$	8,155

Summary of Troubled Debt Restructuring by Loan Class

The following table presents the amount of troubled debt restructurings by loan class, classified separately as those currently paying under restructured terms and those that have defaulted under restructured terms at December 31, 2012 and 2011.

As of December 31, 2012	Loans Currently Paying Under Restructured Terms			Loans that have Defaulted Under Restructured Terms
Loan class:	#	Balance (in thousands)		#	Balance (in thousands)
Commercial, financial & agricultural	5	$	802	-	$	-
Real estate – construction & development	5		1,735	-		-
Real estate – commercial & farmland	16		8,947	3		4,149
Real estate – residential	28		7,254	2		1,022
Consumer installment	-		-	1		6
Total	54	$	18,738	6	$	5,177
As of December 31, 2011	Loans Currently Paying Under Restructured Terms			Loans that have Defaulted Under Restructured Terms
Loan class:	#	Balance (in thousands)		#	Balance (in thousands)
Real estate – construction & development	7	$	2,897	4	$	999
Real estate – commercial & farmland	15		11,695	1		2,664
Real estate – residential	20		6,862	3		989
Total	42	$	21,454	8	$	4,652

Summary of Troubled Debt Restructuring by Concessions Made Types

The following table presents the amount of troubled debt restructurings by types of concessions made, classified separately as accrual and non-accrual at December 31, 2012 and 2011.

As of December 31, 2012	Accruing Loans			Non-Accruing Loans
Type of Concession:	#	Balance (in thousands)		#	Balance (in thousands)
Forbearance of Interest	2	$	1,873	-	$	-
Forgiveness of Principal	3		1,518	1		372
Payment Modification Only	2		376	-		-
Rate Reduction Only	11		7,075	1		177
Rate Reduction, Forbearance of Interest	18		4,061	2		3,420
Rate Reduction, Forbearance of Principal	18		3,798	-		-
Rate Reduction, Payment Modification	1		43	1		1,202
Total	55	$	18,744	5	$	5,171
As of December 31, 2011	Accruing Loans			Non-Accruing Loans
Type of Concession:	#	Balance (in thousands)		#	Balance (in thousands)
Forbearance of Interest	1	$	311	-	$	-
Forgiveness of Principal	2		902	1		136
Payment Modification Only	1		92	1		307
Rate Reduction Only	7		4,192	4		1,145
Rate Reduction, Forbearance of Interest	14		9,347	-		-
Rate Reduction, Forbearance of Principal	14		3,107	1		1,123
Rate Reduction, Payment Modification	-		-	4		5,444
Total	39	$	17,951	11	$	8,155

Summary of Troubled Debt Restructurings by Collateral types

The following table presents the amount of troubled debt restructurings by collateral types, classified separately as accrual and non-accrual at December 31, 2012 and 2011.

As of December 31, 2012	Accruing Loans			Non-Accruing Loans
Collateral type:	#	Balance (in thousands)		#	Balance (in thousands)
Warehouse	3	$	1,692	1	$	177
Raw Land	2		1,337	-		-
Hotel & Motel	3		2,318	-		-
Office	4		2,105	1		2,770
Retail, including Strip Centers	6		2,833	1		1,202
1-4 Family Residential	31		7,651	2		1,022
Life Insurance Policy	1		250	-		-
Automobile/Equipment/Inventory	4		508	-		-
Unsecured	1		50	-		-
Total	55	$	18,744	5	$	5,171
As of December 31, 2011	Accruing Loans			Non-Accruing Loans
Collateral type:	#	Balance (in thousands)		#	Balance (in thousands)
Warehouse	1	$	1,347	-	$	-
Raw Land	3		1,549	2		618
Hotel & Motel	1		503	1		2,072
Office	3		1,077	-		-
Retail, including Strip Centers	9		6,694	1		2,665
1-4 Family Residential	22		6,781	7		2,800
Total	39	$	17,951	11	$	8,155

Summary of Changes in Related Party Loans

Changes in related party loans are summarized as follows:

	December 31,
	2012			2011
	(Dollars in Thousands)
Balance, beginning of year	$	6,922		$	7,618
Advances		717			5,374
Repayments		(1,041	)		(6,070	)
Transactions due to changes in related parties		(5,206	)		-
Balance, end of year	$	1,392		$	6,922

Schedule of Allowances for Loan Losses by Portfolio Segment

The following table details activity in the allowance for loan losses by non-covered portfolio segment for the years ended December 31, 2012, 2011 and 2010. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

	Commercial, financial & agricultural			Real estate - construction & development			Real estate - commercial & farmland			Real estate - residential			Consumer installment loans and Other			Total
	(Dollars in thousands)
Balance, January 1, 2012	$	2,918		$	9,438		$	14,226		$	8,128		$	446		$	35,156
Provision for loan losses		815			5,245			15,000			6,267			1,124			28,451
Loans charged off		(1,451	)		(9,380	)		(20,551	)		(8,722	)		(1,059	)		(41,163	)
Recoveries of loans previously charged off		157			40			482			225			245			1,149
Balance, December 31, 2012	$	2,439		$	5,343		$	9,157		$	5,898		$	756		$	23,593
Period-end amount allocated to:
Loans individually evaluated for impairment	$	659		$	611		$	2,228		$	1,056		$	-		$	4,554
Loans collectively evaluated for impairment		1,780			4,732			6,929			4,842			756			19,039
Ending balance	$	2,439		$	5,343		$	9,157		$	5,898		$	756		$	23,593
Loans:
Individually evaluated for impairment	$	3,351		$	7,617		$	21,332		$	13,020		$	-		$	45,320
Collectively evaluated for impairment		170,866			106,582			710,990			333,460			83,417			1,405,315
Ending balance	$	174,217		$	114,199		$	732,322		$	346,480		$	83,417		$	1,450,635
	Commercial, financial & agricultural			Real estate - construction & development			Real estate - commercial & farmland			Real estate - residential			Consumer installment loans and Other			Total
	(Dollars in thousands)
Balance, January 1, 2011	$	2,779		$	7,705		$	14,971		$	8,664		$	457		$	34,576
Provision for loan losses		5,772			11,354			7,883			4,717			615			30,341
Loans charged off		(5,807	)		(10,988	)		(8,680	)		(5,399	)		(749	)		(31,623	)
Recoveries of loans previously charged off		174			1,367			52			146			123			1,862
Balance, December 31, 2011	$	2,918		$	9,438		$	14,226		$	8,128		$	446		$	35,156
Period-end amount allocated to:
Loans individually evaluated for impairment	$	766		$	3,478		$	8,152		$	3,567		$	3		$	15,966
Loans collectively evaluated for impairment		2,152			5,960			6,074			4,561			443			19,190
Ending balance	$	2,918		$	9,438		$	14,226		$	8,128		$	446		$	35,156
Loans:
Individually evaluated for impairment	$	2,831		$	13,561		$	45,084		$	16,080		$	17		$	77,573
Collectively evaluated for impairment		140,129			116,709			627,681			314,647			55,347			1,254,513
Ending balance	$	142,960		$	130,270		$	672,765		$	330,727		$	55,364		$	1,332,086

	Commercial, financial & agricultural			Real estate - construction & development			Real estate - commercial & farmland			Real estate - residential			Consumer installment loans and Other			Total
	(Dollars in thousands)
Balance, January 1, 2010	$	3,428		$	13,098		$	11,296		$	7,391		$	549		$	35,762
Provision for loan losses		4,265			13,776			18,937			11,178			683			48,839
Loans charged off		(5,481	)		(19,853	)		(16,108	)		(10,091	)		(1,090	)		(52,623	)
Recoveries of loans previously charged off		567			684			846			186			315			2,598
Balance, December 31, 2010	$	2,779		$	7,705		$	14,971		$	8,664		$	457		$	34,576
Period-end amount allocated to:
Loans individually evaluated for impairment	$	677		$	3,554		$	6,300		$	2,554		$	—		$	13,085
Loans collectively evaluated for impairment		2,102			4,151			8,671			6,110			457			21,491
Ending balance	$	2,779		$	7,705		$	14,971		$	8,664		$	457		$	34,576
Loans:
Individually evaluated for impairment	$	3,930		$	22,838		$	50,179		$	14,740		$	—		$	91,687
Collectively evaluated for impairment		138,382			139,756			633,795			330,090			41,047			1,283,070
Ending balance	$	142,312		$	162,594		$	683,974		$	344,830		$	41,047		$	1,374,757

Covered Loan [Member]

Summary of Financial Receivable Nonaccrual Basis

The following table presents an analysis of covered loans accounted for on a nonaccrual basis:

	December 31,
	2012		2011		2010		2009		2008
	(Dollars in Thousands)
Commercial, financial & agricultural	$	10,765	$	11,952	$	5,756	$	1,398	$	-
Real estate – construction & development		20,027		30,977		25,810		9,155		-
Real estate – commercial & farmland		55,946		75,458		29,519		8,109		-
Real estate – residential		28,672		41,139		25,946		4,602		-
Consumer installment loans		302		473		1,122		2,527		-
Total	$	115,712	$	159,999	$	88,153	$	25,791	$	-

Summary of Past Due Financial Receivables

The following table presents an analysis of covered past due loans as of December 31, 2012 and 2011:

	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Loans Past Due		Current Loans		Total Loans		Loans 90 Days or More Past Due and Still Accruing
	(Dollars in Thousands)
As of December 30, 2012:
Commercial, financial & agricultural	$	2,390	$	1,105	$	10,612	$	14,107	$	18,499	$	32,606	$	98
Real estate – construction & development		1,584		2,592		19,656		23,832		46,352		70,184		1,077
Real estate – commercial & farmland		11,451		7,373		52,570		71,394		207,112		278,506		1,347
Real estate – residential		6,066		3,396		24,976		34,438		90,618		125,056		779
Consumer installment loans		45		13		258		316		1,044		1,360		-
Total	$	21,536	$	14,479	$	108,072	$	144,087	$	363,625	$	507,712	$	3,301
	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Loans Past Due		Current Loans		Total Loans		Loans 90 Days or More Past Due and Still Accruing
	(Dollars in Thousands)
As of December 31, 2011:
Commercial, financial & agricultural	$	968	$	4,297	$	11,253	$	16,518	$	25,349	$	41,867	$	-
Real estate – construction & development		2,444		1,318		27,867		31,629		45,448		77,077		-
Real estate – commercial & farmland		18,282		8,544		64,091		90,917		230,340		321,257		165
Real estate – residential		3,485		1,493		35,950		40,928		86,716		127,644		290
Consumer installment loans		127		270		440		837		2,807		3,644		-
Total	$	25,306	$	15,922	$	139,601	$	180,829	$	390,660	$	571,489	$	455

Summary of Impaired Financial Receivables

The following is a summary of information pertaining to covered impaired loans:

	As of and For the Years Ended December 31,
	2012		2011		2010
	(Dollars in Thousands)
Nonaccrual loans	$	115,712	$	159,999	$	88,153
Troubled debt restructurings not included above		19,194		19,884		169
Total impaired loans	$	134,906	$	179,883	$	88,322
Impaired loans not requiring a related allowance	$	134,906	$	179,883	$	88,322
Impaired loans requiring a related allowance	$	-	$	-	$	-
Allowance related to impaired loans	$	-	$	-	$	-
Average investment in impaired loans	$	163,825	$	138,950	$	44,184
Interest income recognized on impaired loans	$	849	$	526	$	6
Foregone interest income on impaired loans	$	491	$	202	$	1,251

The following table presents an analysis of information pertaining to covered impaired loans as of December 31, 2012 and 2011.

	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(Dollars in Thousands)
As of December 31, 2012:
Commercial, financial & agricultural	$	15,888	$	10,802	$	-	$	10,802	$	-	$	12,506
Real estate – construction & development		30,979		23,236		-		23,236		-		29,970
Real estate – commercial & farmland		84,124		64,231		-		64,231		-		78,790
Real estate – residential		45,464		36,335		-		36,335		-		42,061
Consumer installment loans		373		302		-		302		-		498
Total	$	176,828	$	134,906	$	-	$	134,906	$	-	$	163,825
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(Dollars in Thousands)
As of December 31, 2011:
Commercial, financial & agricultural	$	21,352	$	12,027	$	-	$	12,027	$	-	$	10,210
Real estate – construction & development		47,005		34,363		-		34,363		-		30,610
Real estate – commercial & farmland		106,953		84,740		-		84,740		-		56,607
Real estate – residential		68,411		48,280		-		48,280		-		40,675
Consumer installment loans		623		473		-		473		-		848
Total	$	244,344	$	179,883	$	-	$	179,883	$	-	$	138,950

Summary of Credit Quality Indicate Financial Receivable

The following table presents the covered loan portfolio by risk grade as of December 31, 2012 and 2011.

As of December 31, 2012:

Risk Grade	Commercial, financial & agricultural		Real estate - construction & development		Real estate - commercial & farmland		Real estate - residential		Consumer installment loans		Other		Total
	(Dollars in Thousands)
10	$	-	$	-	$	-	$	-	$	-	$	-	$	-
15		-		39		1,640		644		-		-		2,323
20		3,997		12,194		37,098		31,337		292		-		84,918
23		28		1,174		9,576		2,052		-		-		12,830
25		10,013		19,216		114,849		40,194		558		-		184,830
30		4,294		7,214		38,665		11,883		50		-		62,106
40		14,274		30,347		76,678		38,946		460		-		160,705
50		-		-		-		-		-		-		-
60		-		-		-		-		-		-		-
Total	$	32,606	$	70,184	$	278,506	$	125,056	$	1,360	$	-	$	507,712
As of December 31, 2011:
Risk Grade	Commercial, financial & agricultural		Real estate - construction & development		Real estate - commercial & farmland		Real estate - residential		Consumer installment loans		Other		Total
	(Dollars in Thousands)
10	$	442	$	-	$	-	$	1,329	$	768	$	-	$	2,539
15		29		52		1,755		586		14		-		2,436
20		4,807		5,751		26,211		19,216		687		-		56,672
23		-		1,177		3,262		1,038		-		-		5,477
25		15,531		21,142		137,981		43,606		1,308		-		219,568
30		5,882		10,654		49,642		12,374		172		-		78,724
40		15,176		38,273		102,406		49,495		695		-		206,045
50		-		28		-		-		-		-		28
60		-		-		-		-		-		-		-
Total	$	41,867	$	77,077	$	321,257	$	127,644	$	3,644	$	-	$	571,489

Non Covered Loan [Member]

Summary of Financial Receivable Nonaccrual Basis

The following table presents an analysis of non-covered loans accounted for on a nonaccrual basis:

	December 31,
	2012		2011		2010		2009		2008
	(Dollars in Thousands)
Commercial, financial & agricultural	$	4,138	$	3,987	$	8,648	$	4,774	$	4,810
Real estate – construction & development		9,281		15,020		7,887		15,787		10,522
Real estate – commercial & farmland		11,962		35,385		55,170		67,172		44,235
Real estate – residential		12,595		15,498		6,376		6,965		4,730
Consumer installment loans		909		933		1,208		1,433		1,117
Total	$	38,885	$	70,823	$	79,289	$	96,131	$	65,414

Summary of Past Due Financial Receivables

The following table presents an analysis of non-covered past due loans as of December 31, 2012 and 2011.

	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Loans Past Due		Current Loans		Total Loans		Loans 90 Days or More Past Due and Still Accruing
	(Dollars in Thousands)
As of December 31, 2012:
Commercial, financial & agricultural	$	258	$	312	$	3,969	$	4,539	$	169,678	$	174,217	$	-
Real estate – construction & development		347		332		8,969		9,648		104,551		114,199		-
Real estate – commercial & farmland		2,867		2,296		9,544		14,707		717,615		732,322		-
Real estate – residential		7,651		2,766		10,990		21,407		325,073		346,480		-
Consumer installment loans		702		391		815		1,908		38,270		40,178		-
Other		-		-		-		-		43,239		43,239		-
Total	$	11,825	$	6,097	$	34,287	$	52,209	$	1,398,426	$	1,450,635	$	-

	Loans 30-59 Days Past Due		Loans 60-89 Days Past Due		Loans 90 or More Days Past Due		Total Loans Past Due		Current Loans		Total Loans		Loans 90 Days or More Past Due and Still Accruing
	(Dollars in Thousands)
As of December 31, 2011:
Commercial, financial & agricultural	$	1,103	$	705	$	3,975	$	5,783	$	137,177	$	142,960	$	-
Real estate – construction & development		2,395		1,507		13,608		17,510		112,760		130,270		-
Real estate – commercial & farmland		6,686		7,071		32,953		46,710		626,055		672,765		-
Real estate – residential		5,229		4,995		12,874		23,098		307,629		330,727		-
Consumer installment loans		963		305		725		1,993		35,303		37,296		-
Other		-		-		-		-		18,068		18,068		-
Total	$	16,376	$	14,583	$	64,135	$	95,094	$	1,236,992	$	1,332,086	$	-

Summary of Impaired Financial Receivables

The following is a summary of information pertaining to non-covered impaired loans:

	As of and For the Years Ended December 31,
	2012		2011		2010
	(Dollars in Thousands)
Nonaccrual loans	$	38,885	$	70,823	$	79,289
Troubled debt restructurings not included above		18,744		17,951		21,972
Total impaired loans	$	57,629	$	88,774	$	101,261
Impaired loans not requiring a related allowance	$	-	$	-	$	-
Impaired loans requiring a related allowance	$	57,629	$	88,774	$	101,261
Allowance related to impaired loans	$	5,115	$	18,478	$	16,688
Average investment in impaired loans	$	70,209	$	88,320	$	103,776
Interest income recognized on impaired loans	$	495	$	637	$	545
Foregone interest income on impaired loans	$	718	$	613	$	3,828

The following table presents an analysis of information pertaining to non-covered impaired loans as of December 31, 2012 and 2011.

	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(Dollars in Thousands)
As of December 31, 2012:
Commercial, financial & agricultural	$	8,024	$	-	$	4,940	$	4,940	$	743	$	4,968
Real estate – construction & development		20,316		-		11,016		11,016		910		11,706
Real estate – commercial & farmland		25,076		-		20,910		20,910		2,191		30,638
Real estate – residential		24,155		-		19,848		19,848		1,246		21,813
Consumer installment loans		1,187		-		915		915		25		1,084
Total	$	78,758	$	-	$	57,629	$	57,629	$	5,115	$	70,209
	Unpaid Contractual Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(Dollars in Thousands)
As of December 31, 2011:
Commercial, financial & agricultural	$	9,592	$	-	$	5,110	$	5,110	$	1,366	$	5,700
Real estate – construction & development		21,893		-		15,672		15,672		4,053		18,667
Real estate – commercial & farmland		48,688		-		45,006		45,006		8,331		42,192
Real estate – residential		25,309		-		22,053		22,053		4,499		21,081
Consumer installment loans		1,056		-		933		933		229		680
Total	$	106,538	$	-	$	88,774	$	88,774	$	18,478	$	88,320

Summary of Credit Quality Indicate Financial Receivable

The following table presents the non-covered loan portfolio by risk grade as of December 31, 2012 and 2011.

As of December 31, 2012:

Risk Grade	Commercial, financial & agricultural		Real estate - construction & development		Real estate - commercial & farmland		Real estate - residential		Consumer installment loans		Other		Total
	(Dollars in Thousands)
10	$	24,623	$	-	$	309	$	464	$	7,597	$	-	$	32,993
15		11,316		4,373		147,966		71,254		1,591		-		236,500
20		79,522		31,413		351,997		114,418		21,361		43,239		641,950
23		42		8,521		9,012		13,788		70		-		31,433
25		49,071		52,577		176,395		113,591		7,576		-		399,210
30		2,343		3,394		19,401		9,672		488		-		35,298
40		7,200		13,765		27,242		23,292		1,495		-		72,994
50		100		156		-		1		-		-		257
60		-		-		-		-		-		-		-
Total	$	174,217	$	114,199	$	732,322	$	346,480	$	40,178	$	43,239	$	1,450,635
As of December 31, 2011:
Risk Grade	Commercial, financial & agricultural		Real estate - construction & development		Real estate - commercial & farmland		Real estate - residential		Consumer installment loans		Other		Total
	(Dollars in Thousands)
10	$	17,213	$	20	$	235	$	252	$	6,210	$	-	$	23,930
15		15,379		5,391		151,068		88,586		1,065		-		261,489
20		60,631		32,654		272,241		80,989		20,781		18,068		485,364
23		32		7,994		10,679		10,997		28		-		29,730
25		42,815		62,029		163,554		110,786		7,181		-		386,365
30		2,509		2,027		21,490		15,001		557		-		41,584
40		4,258		19,864		53,498		23,867		1,460		-		102,947
50		123		291		-		249		14		-		677
60		-		-		-		-		-		-		-
Total	$	142,960	$	130,270	$	672,765	$	330,727	$	37,296	$	18,068	$	1,332,086