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ALLOWANCE FOR LOAN LOSSES: (Tables)
 12 Months Ended
Dec. 31, 2013
Allowance For Loan Losses Disclosure [Abstract]  
Schedule of allowances for loan losses by portfolio segment
The following table presents the activity of the allowance for loan losses by portfolio segment for the years ended December 31, 2013, 2012 and 2011.

Allowance for Loan Losses:
 
 
 
December 31, 2013
 
 
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
10,987

 
$
5,426

 
$
3,879

 
$
1,666

 
$
21,958

Provision for loan losses*
 
3,144

 
629

 
1,985

 
717

 
6,475

Loans charged -off
 
(4,830
)
 
(4,942
)
 
(3,615
)
 
—

 
(13,387
)
Recoveries
 
3,149

 
472

 
1,401

 
—

 
5,022

Ending Balance
 
$
12,450

 
$
1,585

 
$
3,650

 
$
2,383

 
$
20,068

* Provision before increase of $1.4 million in 2013 for decrease in FDIC indemnification asset
 
Allowance for Loan Losses:
 
 
 
December 31, 2012
 
 
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
12,119

 
$
2,728

 
$
3,889

 
$
505

 
$
19,241

Provision for loan losses*
 
2,400

 
5,196

 
2,243

 
1,161

 
11,000

Loans charged -off
 
(4,176
)
 
(2,598
)
 
(3,640
)
 
—

 
(10,414
)
Recoveries
 
644

 
100

 
1,387

 
—

 
2,131

Ending Balance
 
$
10,987

 
$
5,426

 
$
3,879

 
$
1,666

 
$
21,958

* Provision before decrease of $2.2 million in 2012 for increase in FDIC indemnification asset
  
Allowance for Loan Losses:
 
 
 
December 31, 2011
 
 
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
12,809

 
$
2,873

 
$
4,551

 
$
2,103

 
$
22,336

Provision for loan losses*
 
3,708

 
2,571

 
1,199

 
(1,598
)
 
5,880

Loans charged -off
 
(5,336
)
 
(2,811
)
 
(2,969
)
 
—

 
(11,116
)
Recoveries
 
938

 
95

 
1,108

 
—

 
2,141

Ending Balance
 
$
12,119

 
$
2,728

 
$
3,889

 
$
505

 
$
19,241

* Provision before decrease of $125 thousand in 2011 for increase in FDIC indemnification asset
Allocation of the allowance for loan losses by portfolio segment based on the impairment method
The following tables present the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method at December 31, 2013 and 2012:
 
Allowance for Loan Losses:
 
 
 
December 31, 2013
 
 
 
 
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
$
3,158

 
$
—

 
$
—

 
$
—

 
$
3,158

Collectively evaluated for impairment
 
8,421

 
1,408

 
3,650

 
2,383

 
15,862

Acquired with deteriorated credit quality
 
871

 
177

 
—

 
—

 
1,048

BALANCE AT END OF YEAR
 
$
12,450

 
$
1,585

 
$
3,650

 
$
2,383

 
$
20,068

Loans
 
 

 
 

 
 

 
 

 
 

(Dollar amounts in thousands)
 
Commercial   
 
Residential   
 
Consumer   
 
 
 
Total   
Individually evaluated for impairment
 
$
18,825

 
$
37

 
$
—

 
 

 
$
18,862

Collectively evaluated for impairment
 
1,020,771

 
481,439

 
269,352

 
 

 
1,771,562

Acquired with deteriorated credit quality
 
8,001

 
2,397

 
—

 
 

 
10,398

BALANCE AT END OF YEAR
 
$
1,047,597

 
$
483,873

 
$
269,352

 
 

 
$
1,800,822


Allowance for Loan Losses:
 
 
 
December 31, 2012
 
 
 
 
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
$
3,453

 
$
3,920

 
$
—

 
$
—

 
$
7,373

Collectively evaluated for impairment
 
7,286

 
1,506

 
3,879

 
1,666

 
14,337

Acquired with deteriorated credit quality
 
248

 
—

 
—

 
—

 
248

BALANCE AT END OF YEAR
 
$
10,987

 
$
5,426

 
$
3,879

 
$
1,666

 
$
21,958

Loans
 
 

 
 

 
 

 
 

 
 

(Dollar amounts in thousands)
 
Commercial   

 
Residential   

 
Consumer   

 
 

 
Total   

Individually evaluated for impairment
 
$
23,721

 
$
6,973

 
$
—

 
 

 
$
30,694

Collectively evaluated for impairment
 
1,056,861

 
487,486

 
269,882

 
 

 
1,814,229

Acquired with deteriorated credit quality
 
13,582

 
3,421

 
6

 
 

 
17,009

BALANCE AT END OF YEAR
 
$
1,094,164

 
$
497,880

 
$
269,888

 
 

 
$
1,861,932
Schedule of loans individually evaluated for impairment by class of loans
The following table presents loans individually evaluated for impairment by class of loan.
 
December 31, 2013
 
 
 
 
 
Allowance
 
 
 
 
 
Cash Basis
 
 
Unpaid
 
 
 
for Loan
 
Average
 
Interest
 
Interest
 
 
Principal
 
Recorded
 
Losses
 
Recorded
 
Income
 
Income
 
 
Balance
 
Investment
 
Allocated
 
Investment
 
Recognized
 
Recognized
With no related allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
2,120

 
$
1,918

 
$
—

 
$
1,555

 
$
—

 
$
—

Farmland
 
—

 
—

 
—

 
—

 
—

 
—

Non Farm, Non Residential
 
271

 
105

 
—

 
26

 
—

 
—

Agriculture
 
—

 
—

 
—

 
—

 
—

 
—

All Other Commercial
 
—

 
—

 
—

 
—

 
—

 
—

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
—

 
—

 
—

 
7

 
—

 
—

Home Equity
 
—

 
—

 
—

 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

 
—

 
—

 
—

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
10,134

 
8,620

 
1,612

 
13,029

 
217

 
217

Farmland
 
—

 
—

 
—

 
356

 
113

 
113

Non Farm, Non Residential
 
7,664

 
7,204

 
1,500

 
7,921

 


 
—

Agriculture
 
—

 
—

 
—

 
—

 
—

 
—

All Other Commercial
 
1,062

 
1,062

 
46

 
2,979

 
—

 
—

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
37

 
37

 
—

 
524

 
—

 
—

Home Equity
 
—

 
—

 
—

 
113

 
—

 
—

Junior Liens
 
—

 
—

 
—

 


 
—

 
—

Multifamily
 
—

 
—

 
—

 
2,216

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

 
—

 
—

 
—

TOTAL
 
$
21,288

 
$
18,946

 
$
3,158

 
$
28,726

 
$
330

 
$
330

 











For 2012, the unpaid principal balance has not been reduced for partial charge-offs.

December 31, 2012
 
 
 
 
 
Allowance
 
 
 
 
 
Cash Basis
 
 
Unpaid
 
 
 
for Loan
 
Average
 
Interest
 
Interest
 
 
Principal
 
Recorded
 
Losses
 
Recorded
 
Income
 
Income
 
 
Balance
 
Investment
 
Allocated
 
Investment
 
Recognized
 
Recognized
With no related allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
—

 
$
—

 
$
—

 
$
1,013

 
$
—

 
$
—

Farmland
 
—

 
—

 
—

 
—

 
—

 
—

Non Farm, Non Residential
 
—

 
—

 
—

 
1,679

 
—

 
—

Agriculture
 
—

 
—

 
—

 
—

 
—

 
—

All Other Commercial
 
—

 
—

 
—

 
—

 
—

 
—

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
—

 
—

 
—

 
150

 
—

 
—

Home Equity
 
—

 
—

 
—

 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

 
50

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

 
—

 
—

 
—

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
17,262

 
17,098

 
3,153

 
16,738

 
—

 
—

Farmland
 
891

 
891

 
191

 
891

 
—

 
—

Non Farm, Non Residential
 
7,438

 
7,386

 
293

 
5,000

 
179

 
—

Agriculture
 
—

 
—

 
—

 
—

 
—

 
—

All Other Commercial
 
1,209

 
1,209

 
52

 
1,362

 
—

 
—

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
1,254

 
1,254

 
126

 
1,230

 
—

 
—

Home Equity
 
179

 
179

 
—

 
75

 
—

 
—

Junior Liens
 
—

 
—

 
—

 
176

 
—

 
—

Multifamily
 
5,540

 
5,540

 
3,794

 
2,216

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

 
—

 
—

 
—

TOTAL
 
$
33,773

 
$
33,557

 
$
7,609

 
$
30,580

 
$
179

 
$
—

 

 
December 31, 2011
 
 
 
 
 
Cash Basis
 
 
Average
 
Interest
 
Interest
 
 
Recorded
 
Income
 
Income
 
 
Investment
 
Recognized
 
Recognized
With no related allowance recorded:
 
 

 
 

 
 

Commercial
 
 

 
 

 
 

Commercial & Industrial
 
$
1,929

 
$
165

 
$
—

Farmland
 
—

 
—

 
—

Non Farm, Non Residential
 
3,262

 
—

 
—

Agriculture
 
—

 
—

 
—

All Other Commercial
 
—

 
—

 
—

Residential
 
 

 
 

 
 

First Liens
 
150

 
—

 
—

Home Equity
 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

Multifamily
 
50

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

With an allowance recorded:
 
 

 
 

 
 

Commercial
 
 

 
 

 
 

Commercial & Industrial
 
16,746

 
—

 
—

Farmland
 
360

 
—

 
—

Non Farm, Non Residential
 
8,717

 
—

 
—

Agriculture
 
—

 
—

 
—

All Other Commercial
 
1,671

 
—

 
—

Residential
 
 

 
 

 
 

First Liens
 
2,014

 
—

 
—

Home Equity
 
—

 
—

 
—

Junior Liens
 
937

 
—

 
—

Multifamily
 
510

 
—

 
—

All Other Residential
 
—

 
—

 
—

Consumer
 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

TOTAL
 
$
36,346

 
$
165

 
$
—
Schedule of non-performing loans
The following table presents the recorded investment in nonperforming loans by class of loans.
 
 
 
December 31, 2013
 
December 31, 2012
 
 
Loans Past
 
 
 
 
 
Loans Past
 
 
 
 
 
 
Due Over
90 Day Still
 
 
 
Due Over
90 Day Still
 
 
(Dollar amounts in thousands)
 
Accruing
 
Restructured
 
Non-accrual
 
Accruing
 
Restructured
 
Non-accrual
Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
240

 
$
6,578

 
$
6,861

 
$
724

 
$
11,573

 
$
9,360

Farmland
 
—

 
—

 
99

 
231

 
—

 
907

Non Farm, Non Residential
 
489

 
5,687

 
4,918

 
491

 
4,836

 
6,718

Agriculture
 
—

 
—

 
134

 
69

 
—

 
104

All Other Commercial
 
—

 
—

 
1,412

 
—

 
—

 
4,811

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
1,100

 
4,283

 
4,047

 
1,237

 
4,126

 
6,852

Home Equity
 
40

 
—

 
195

 
24

 
—

 
196

Junior Liens
 
147

 
—

 
390

 
538

 
—

 
405

Multifamily
 
—

 
61

 
433

 
101

 
—

 
5,598

All Other Residential
 
1

 
—

 
130

 
—

 
—

 
150

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
187

 
626

 
186

 
133

 
685

 
174

All Other Consumer
 
3

 
17

 
974

 
3

 
16

 
1,519

TOTAL
 
$
2,207

 
$
17,252

 
$
19,779

 
$
3,551

 
$
21,236

 
$
36,794
Troubled debt restructurings on financing receivables
During the years ending December 31, 2013 and 2012, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's.
 
 
 
 
 
 
 
 
2013
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Total
January 1,
 
$
16,474

 
$
4,107

 
$
704

 
$
21,285

    Added
 
1,561

 
841

 
270

 
2,672

    Charged Off
 
—

 
(32
)
 
(50
)
 
(82
)
    Payments
 
(5,708
)
 
(586
)
 
(280
)
 
(6,574
)
December 31,
 
$
12,327

 
$
4,330

 
$
644

 
$
17,301

 
 
 
 
 
 
 
 
2012
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Total
January 1,
 
$
12,614

 
$
4,723

 
$
—

 
$
17,337

    Added
 
5,099

 
1,080

 
864

 
7,043

    Charged Off
 
(879
)
 
(31
)
 
(14
)
 
(924
)
    Payments
 
(360
)
 
(1,665
)
 
(146
)
 
(2,171
)
December 31,
 
$
16,474

 
$
4,107

 
$
704

 
$
21,285
Aging of recorded investment in loans by past due category and class of loans
The following table presents the aging of the recorded investment in loans by past due category and class of loans.
 
 
 
 
 
 
 
Greater
 
 
 
 
 
 
December 31, 2013
 
30-59 Days
 
60-89 Days
 
than 90 days
 
Total
 
 
 
 
(Dollar amounts in thousands)
 
Past Due
 
Past Due
 
Past Due
 
Past Due
 
Current
 
Total
Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
1,076

 
$
266

 
$
7,900

 
$
9,242

 
$
459,076

 
$
468,318

Farmland
 
—

 
—

 
—

 
—

 
92,602

 
92,602

Non Farm, Non Residential
 
362

 
—

 
2,042

 
2,404

 
239,183

 
241,587

Agriculture
 
31

 
32

 
—

 
63

 
136,388

 
136,451

All Other Commercial
 
50

 
217

 
188

 
455

 
108,184

 
108,639

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
5,594

 
1,513

 
1,701

 
8,808

 
324,141

 
332,949

Home Equity
 
307

 
7

 
40

 
354

 
41,350

 
41,704

Junior Liens
 
392

 
170

 
471

 
1,033

 
32,269

 
33,302

Multifamily
 
103

 
19

 
400

 
522

 
66,138

 
66,660

All Other Residential
 
88

 
—

 
1

 
89

 
9,169

 
9,258

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
3,579

 
612

 
227

 
4,418

 
243,146

 
247,564

All Other Consumer
 
123

 
22

 
7

 
152

 
21,636

 
21,788

TOTAL
 
$
11,705

 
$
2,858

 
$
12,977

 
$
27,540

 
$
1,773,282

 
$
1,800,822

 
 
 
 
 
 
 
Greater
 
 
 
 
 
 
December 31, 2012
 
30-59 Days
 
60-89 Days
 
than 90 days
 
Total
 
 
 
 
(Dollar amounts in thousands)
 
Past Due
 
Past Due
 
Past Due
 
Past Due
 
Current
 
Total
Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
1,315

 
$
861

 
$
3,616

 
$
5,792

 
$
487,160

 
$
492,952

Farmland
 
534

 
—

 
1,122

 
1,656

 
87,270

 
88,926

Non Farm, Non Residential
 
5,618

 
1,004

 
2,449

 
9,071

 
290,023

 
299,094

Agriculture
 
137

 
—

 
78

 
215

 
130,404

 
130,619

All Other Commercial
 
568

 
202

 
350

 
1,120

 
81,453

 
82,573

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
8,359

 
1,659

 
4,599

 
14,617

 
336,230

 
350,847

Home Equity
 
143

 
15

 
24

 
182

 
43,317

 
43,499

Junior Liens
 
555

 
98

 
586

 
1,239

 
36,535

 
37,774

Multifamily
 
52

 
—

 
5,641

 
5,693

 
49,019

 
54,712

All Other Residential
 
214

 
—

 
—

 
214

 
10,834

 
11,048

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
4,164

 
600

 
182

 
4,946

 
241,303

 
246,249

All Other Consumer
 
225

 
93

 
3

 
321

 
23,318

 
23,639

TOTAL
 
$
21,884

 
$
4,532

 
$
18,650

 
$
45,066

 
$
1,816,866

 
$
1,861,932
Analysis of risk category of loans by class of loans
As of December 31, 2013 and 2012, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:
 
December 31, 2013
 
 
 
Special
 
 
 
 
 
 
 
 
(Dollar amounts in thousands)
 
Pass
 
Mention
 
Substandard
 
Doubtful
 
Not Rated
 
Total
Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
406,650

 
$
18,968

 
$
30,986

 
$
4,069

 
$
6,426

 
$
467,099

Farmland
 
86,633

 
3,631

 
347

 
—

 
445

 
91,056

Non Farm, Non Residential
 
207,115

 
13,408

 
19,719

 
809

 
—

 
241,051

Agriculture
 
128,137

 
6,482

 
105

 
—

 
71

 
134,795

All Other Commercial
 
93,515

 
2,297

 
10,038

 
44

 
2,243

 
108,137

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
114,074

 
3,834

 
8,498

 
995

 
204,416

 
331,817

Home Equity
 
12,883

 
274

 
1,071

 
113

 
27,295

 
41,636

Junior Liens
 
8,858

 
60

 
550

 
67

 
23,654

 
33,189

Multifamily
 
63,073

 
1,908

 
1,482

 
48

 
—

 
66,511

All Other Residential
 
3,643

 
—

 
31

 
—

 
5,550

 
9,224

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
11,447

 
219

 
510

 
9

 
234,210

 
246,395

All Other Consumer
 
3,507

 
46

 
79

 
22

 
17,984

 
21,638

TOTAL
 
$
1,139,535

 
$
51,127

 
$
73,416

 
$
6,176

 
$
522,294

 
$
1,792,548

 
December 31, 2012
 
 
 
Special
 
 
 
 
 
 
 
 
(Dollar amounts in thousands)
 
Pass
 
Mention
 
Substandard
 
Doubtful
 
Not Rated
 
Total
Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
414,680

 
$
31,368

 
$
31,442

 
$
7,138

 
$
7,025

 
$
491,653

Farmland
 
81,977

 
2,718

 
1,616

 
—

 
805

 
87,116

Non Farm, Non Residential
 
249,614

 
25,764

 
22,038

 
831

 
42

 
298,289

Agriculture
 
119,789

 
8,921

 
134

 
—

 
62

 
128,906

All Other Commercial
 
69,952

 
132

 
11,239

 
54

 
803

 
82,180

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
113,360

 
8,986

 
11,516

 
689

 
215,034

 
349,585

Home Equity
 
13,035

 
469

 
1,631

 
23

 
28,267

 
43,425

Junior Liens
 
10,419

 
50

 
515

 
70

 
26,575

 
37,629

Multifamily
 
42,719

 
3,328

 
8,481

 
59

 
—

 
54,587

All Other Residential
 
2,840

 
—

 
35

 
—

 
8,136

 
11,011

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
11,695

 
262

 
311

 
25

 
232,727

 
245,020

All Other Consumer
 
4,614

 
73

 
104

 
21

 
18,675

 
23,487

TOTAL
 
$
1,134,694

 
$
82,071

 
$
89,062

 
$
8,910

 
$
538,151

 
$
1,852,888