XML 17 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
Allowance for Loan Losses
 9 Months Ended
Sep. 30, 2012
Allowance for Loan Losses  
Allowance for Loan Losses

2. Allowance for Loan Losses

 

The following table presents the activity of the allowance for loan losses by portfolio segment for the three months ended September 30.

 

Allowance for Loan Losses:

 

September 30, 2012

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

Unallocated

 

Total

 

Beginning balance

 

$

13,190

 

$

2,124

 

$

3,744

 

$

1,034

 

$

20,092

 

Provision for loan losses*

 

765

 

1,594

 

196

 

85

 

2,640

 

Loans charged -off

 

(715

)

(381

)

(779

)

—

 

(1,875

)

Recoveries

 

167

 

36

 

397

 

—

 

600

 

Ending Balance

 

$

13,407

 

$

3,373

 

$

3,558

 

$

1,119

 

$

21,457

 

 

 

* Provision before decrease of $81 thousand in 2012 for increase in FDIC indemnification asset

 

Allowance for Loan Losses:

 

September 30, 2011

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

Unallocated

 

Total

 

Beginning balance

 

$

12,886

 

$

3,564

 

$

3,978

 

$

1,197

 

$

21,625

 

Provision for loan losses*

 

(422

)

727

 

545

 

785

 

1,635

 

Loans charged -off

 

(536

)

(325

)

(802

)

—

 

(1,663

)

Recoveries

 

310

 

—

 

221

 

—

 

531

 

Ending Balance

 

$

12,238

 

$

3,966

 

$

3,942

 

$

1,982

 

$

22,128

 

 

 

* Provision before increase of $275 thousand in 2011 for decrease in FDIC indemnification asset

 

The following table presents the activity of the allowance for loan losses by portfolio segment for the nine months ended September 30.

 

Allowance for Loan Losses:

 

September 30, 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*

 

3,642

 

2,859

 

1,185

 

614

 

8,300

 

Loans charged -off

 

(2,917

)

(2,289

)

(2,635

)

—

 

(7,841

)

Recoveries

 

563

 

75

 

1,119

 

—

 

1,757

 

Ending Balance

 

$

13,407

 

$

3,373

 

$

3,558

 

$

1,119

 

$

21,457

 

 

 

* Provision before decrease of $1.0 million in 2012 for increase in FDIC indemnification asset

 

Allowance for Loan Losses:

 

September 30, 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*

 

1,587

 

2,021

 

578

 

(121

)

4,065

 

Loans charged -off

 

(2,903

)

(1,015

)

(1,993

)

—

 

(5,911

)

Recoveries

 

745

 

87

 

806

 

—

 

1,638

 

Ending Balance

 

$

12,238

 

$

3,966

 

$

3,942

 

$

1,982

 

$

22,128

 

 

 

* Provision before increase of $171 thousand in 2011 for decrease in FDIC indemnification asset

 

The following table presents the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method at September 30, 2012 and December 31, 2011.

 

Ending Balance Attributable to Loans:

 

September 30, 2012

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

Unallocated

 

Total

 

Individually evaluated for impairment

 

$

4,084

 

$

1,468

 

$

—

 

$

—

 

$

5,552

 

Collectively evaluated for impairment

 

8,732

 

1,814

 

3,558

 

1,119

 

15,223

 

Acquired with deteriorated credit quality

 

591

 

91

 

—

 

—

 

682

 

Ending Balance

 

$

13,407

 

$

3,373

 

$

3,558

 

$

1,119

 

$

21,457

 

 

Loans:

 

September 30, 2012

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

 

 

Total

 

Individually evaluated for impairment

 

$

24,709

 

$

6,992

 

$

—

 

 

 

$

31,701

 

Collectively evaluated for impairment

 

1,043,521

 

496,774

 

274,543

 

 

 

1,814,838

 

Acquired with deteriorated credit quality

 

16,655

 

5,397

 

7

 

 

 

22,059

 

Ending Balance

 

$

1,084,885

 

$

509,163

 

$

274,550

 

 

 

$

1,868,598

 

 

Ending Balance Attributable to Loans:

 

December 31, 2011

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

Unallocated

 

Total

 

Individually evaluated for impairment

 

$

3,071

 

$

190

 

$

—

 

$

—

 

$

3,261

 

Collectively evaluated for impairment

 

8,264

 

2,183

 

3,889

 

505

 

14,841

 

Acquired with deteriorated credit quality

 

784

 

355

 

—

 

—

 

1,139

 

Ending Balance

 

$

12,119

 

$

2,728

 

$

3,889

 

$

505

 

$

19,241

 

 

Loans

 

December 31, 2011

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

 

 

Total

 

Individually evaluated for impairment

 

$

25,393

 

$

2,213

 

$

—

 

 

 

$

27,606

 

Collectively evaluated for impairment

 

1,036,963

 

492,139

 

291,190

 

 

 

1,820,292

 

Acquired with deteriorated credit quality

 

43,389

 

12,986

 

11

 

 

 

56,386

 

Ending Balance

 

$

1,105,745

 

$

507,338

 

$

291,201

 

 

 

$

1,904,284

 

 

The following tables present loans individually evaluated for impairment by class of loans.

 

 

 

September 30, 2012

 

 

 

 

 

 

 

Allowance

 

 

 

Unpaid

 

 

 

for Loan

 

 

 

Principal

 

Recorded

 

Losses

 

(Dollar amounts in thousands)

 

Balance

 

Investment

 

Allocated

 

With no related allowance recorded:

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

Commercial & Industrial

 

$

2,496

 

$

2,496

 

$

—

 

Farmland

 

—

 

—

 

—

 

Non Farm, Non Residential

 

—

 

—

 

—

 

Agriculture

 

—

 

—

 

—

 

All Other Commercial

 

—

 

—

 

—

 

Residential

 

 

 

 

 

 

 

First Liens

 

—

 

—

 

—

 

Home Equity

 

—

 

—

 

—

 

Junior Liens

 

—

 

—

 

—

 

Multifamily

 

—

 

—

 

—

 

All Other Residential

 

—

 

—

 

—

 

Consumer

 

 

 

 

 

 

 

Motor Vehicle

 

—

 

—

 

—

 

All Other Consumer

 

—

 

—

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

Commercial & Industrial

 

15,389

 

15,389

 

3,925

 

Farmland

 

891

 

891

 

49

 

Non Farm, Non Residential

 

7,581

 

7,581

 

182

 

Agriculture

 

—

 

—

 

—

 

All Other Commercial

 

1,315

 

1,315

 

56

 

Residential

 

 

 

 

 

 

 

First Liens

 

1,255

 

1,255

 

190

 

Home Equity

 

197

 

197

 

—

 

Junior Liens

 

—

 

—

 

—

 

Multifamily

 

5,540

 

5,540

 

1,278

 

All Other Residential

 

—

 

—

 

—

 

Consumer

 

 

 

 

 

 

 

Motor Vehicle

 

—

 

—

 

—

 

All Other Consumer

 

—

 

—

 

—

 

TOTAL

 

$

34,664

 

$

34,664

 

$

5,680

 

 

 

 

 

December 31, 2011

 

 

 

 

 

 

 

Allowance

 

 

 

 

 

 

 

 

 

Unpaid

 

 

 

for Loan

 

Average

 

Interest

 

Cash Basis

 

 

 

Principal

 

Recorded

 

Losses

 

Recorded

 

Income

 

Interest Income

 

(Dollar amounts in thousands)

 

Balance

 

Investment

 

Allocated

 

Investment

 

Recognized

 

Recognized

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

$

—

 

$

—

 

$

—

 

$

1,929

 

$

165

 

$

—

 

Farmland

 

—

 

—

 

—

 

—

 

—

 

—

 

Non Farm, Non Residential

 

4,444

 

4,444

 

—

 

3,262

 

—

 

—

 

Agriculture

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Commercial

 

—

 

—

 

—

 

—

 

—

 

—

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

750

 

750

 

—

 

150

 

—

 

—

 

Home Equity

 

—

 

—

 

—

 

—

 

—

 

—

 

Junior Liens

 

—

 

—

 

—

 

—

 

—

 

—

 

Multifamily

 

250

 

250

 

—

 

50

 

—

 

—

 

All Other Residential

 

—

 

—

 

—

 

—

 

—

 

—

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Consumer

 

—

 

—

 

—

 

—

 

—

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

17,890

 

17,866

 

2,664

 

16,746

 

—

 

—

 

Farmland

 

891

 

891

 

49

 

360

 

—

 

—

 

Non Farm, Non Residential

 

4,816

 

4,816

 

957

 

8,717

 

—

 

—

 

Agriculture

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Commercial

 

1,517

 

1,517

 

66

 

1,671

 

—

 

—

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

1,213

 

1,213

 

190

 

2,014

 

—

 

—

 

Home Equity

 

—

 

—

 

—

 

—

 

—

 

—

 

Junior Liens

 

879

 

879

 

347

 

937

 

—

 

—

 

Multifamily

 

—

 

—

 

—

 

510

 

—

 

—

 

All Other Residential

 

—

 

—

 

—

 

—

 

—

 

—

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Consumer

 

—

 

—

 

—

 

—

 

—

 

—

 

TOTAL

 

$

32,650

 

$

32,626

 

$

4,273

 

$

36,346

 

$

165

 

$

—

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 2012

 

September 30, 2012

 

 

 

Average

 

Interest

 

Cash Basis

 

Average

 

Interest

 

Cash Basis

 

 

 

Recorded

 

Income

 

Interest Income

 

Recorded

 

Income

 

Interest Income

 

(Dollar amounts in thousands)

 

Investment

 

Recognized

 

Recognized

 

Investment

 

Recognized

 

Recognized

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

$

2,531

 

$

—

 

$

—

 

$

1,266

 

$

—

 

$

—

 

Farmland

 

—

 

—

 

—

 

—

 

—

 

—

 

Non Farm, Non Residential

 

987

 

—

 

—

 

2,098

 

—

 

—

 

Agriculture

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Commercial

 

—

 

—

 

—

 

—

 

—

 

—

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

—

 

—

 

—

 

188

 

—

 

—

 

Home Equity

 

—

 

—

 

—

 

—

 

—

 

—

 

Junior Liens

 

—

 

—

 

—

 

—

 

—

 

—

 

Multifamily

 

—

 

—

 

—

 

62

 

—

 

—

 

All Other Residential

 

—

 

—

 

—

 

—

 

—

 

—

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Consumer

 

—

 

—

 

—

 

—

 

—

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

15,427

 

—

 

—

 

16,648

 

—

 

—

 

Farmland

 

891

 

—

 

—

 

891

 

—

 

—

 

Non Farm, Non Residential

 

5,045

 

—

 

—

 

4,404

 

—

 

—

 

Agriculture

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Commercial

 

1,313

 

—

 

—

 

1,400

 

—

 

—

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

1,234

 

—

 

—

 

1,224

 

—

 

—

 

Home Equity

 

99

 

—

 

—

 

49

 

—

 

—

 

Junior Liens

 

—

 

—

 

—

 

220

 

—

 

—

 

Multifamily

 

2,770

 

—

 

—

 

1,385

 

—

 

—

 

All Other Residential

 

—

 

—

 

—

 

—

 

—

 

—

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Consumer

 

—

 

—

 

—

 

—

 

—

 

—

 

TOTAL

 

$

30,297

 

$

—

 

$

—

 

$

29,835

 

$

—

 

$

—

 

 

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 2011

 

September 30, 2011

 

 

 

Average

 

Interest

 

Cash Basis

 

Average

 

Interest

 

Cash Basis

 

 

 

Recorded

 

Income

 

Interest Income

 

Recorded

 

Income

 

Interest Income

 

(Dollar amounts in thousands)

 

Investment

 

Recognized

 

Recognized

 

Investment

 

Recognized

 

Recognized

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

$

—

 

$

—

 

$

—

 

$

2,411

 

$

—

 

$

—

 

Farmland

 

—

 

—

 

—

 

—

 

—

 

—

 

Non Farm, Non Residential

 

2,877

 

—

 

—

 

2,967

 

—

 

—

 

Agriculture

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Commercial

 

—

 

—

 

—

 

—

 

—

 

—

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

—

 

—

 

—

 

—

 

—

 

—

 

Home Equity

 

—

 

—

 

—

 

—

 

—

 

—

 

Junior Liens

 

—

 

—

 

—

 

—

 

—

 

—

 

Multifamily

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Residential

 

—

 

—

 

—

 

—

 

—

 

—

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Consumer

 

—

 

—

 

—

 

—

 

—

 

—

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

18,108

 

76

 

—

 

16,466

 

310

 

1

 

Farmland

 

454

 

—

 

—

 

227

 

—

 

—

 

Non Farm, Non Residential

 

9,395

 

—

 

—

 

9,692

 

—

 

—

 

Agriculture

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Commercial

 

1,703

 

—

 

—

 

1,710

 

—

 

—

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

2,518

 

—

 

—

 

2,214

 

—

 

—

 

Home Equity

 

—

 

—

 

—

 

—

 

—

 

—

 

Junior Liens

 

887

 

—

 

—

 

952

 

—

 

—

 

Multifamily

 

638

 

—

 

—

 

638

 

—

 

—

 

All Other Residential

 

—

 

—

 

—

 

—

 

—

 

—

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

—

 

—

 

—

 

—

 

—

 

—

 

All Other Consumer

 

—

 

—

 

—

 

—

 

—

 

—

 

TOTAL

 

$

36,580

 

$

76

 

$

—

 

$

37,277

 

$

310

 

$

1

 

 

The table below presents non-performing loans.

 

 

 

September 30, 2012

 

 

 

Loans Past

 

 

 

 

 

 

 

Due Over

 

Non-accrual

 

 

 

 

 

90 Day Still

 

Troubled Debt

 

 

 

(Dollar amounts in thousands)

 

Accruing

 

Restructurings

 

Nonaccrual

 

Commercial

 

 

 

 

 

 

 

Commercial & Industrial

 

$

1,303

 

$

11,842

 

$

11,231

 

Farmland

 

433

 

—

 

908

 

Non Farm, Non Residential

 

960

 

4,937

 

6,725

 

Agriculture

 

4

 

—

 

115

 

All Other Commercial

 

—

 

—

 

5,581

 

Residential

 

 

 

 

 

 

 

First Liens

 

836

 

3,866

 

7,352

 

Home Equity

 

19

 

—

 

214

 

Junior Liens

 

303

 

—

 

420

 

Multifamily

 

—

 

—

 

7,501

 

All Other Residential

 

—

 

—

 

155

 

Consumer

 

 

 

 

 

 

 

Motor Vehicle

 

106

 

676

 

177

 

All Other Consumer

 

6

 

17

 

1,534

 

TOTAL

 

$

3,970

 

$

21,338

 

$

41,913

 

 

 

 

December 31, 2011

 

 

 

Loans Past

 

 

 

 

 

 

 

Due Over

 

Non-accrual

 

 

 

 

 

90 Day Still

 

Troubled Debt

 

 

 

(Dollar amounts in thousands)

 

Accruing

 

Restructurings

 

Nonaccrual

 

Commercial

 

 

 

 

 

 

 

Commercial & Industrial

 

$

317

 

$

12,590

 

$

9,673

 

Farmland

 

74

 

—

 

979

 

Non Farm, Non Residential

 

237

 

—

 

12,542

 

Agriculture

 

—

 

—

 

225

 

All Other Commercial

 

—

 

—

 

3,171

 

Residential

 

 

 

 

 

 

 

First Liens

 

1,150

 

3,856

 

7,398

 

Home Equity

 

8

 

—

 

—

 

Junior Liens

 

154

 

898

 

1,240

 

Multifamily

 

—

 

—

 

668

 

All Other Residential

 

136

 

—

 

171

 

Consumer

 

 

 

 

 

 

 

Motor Vehicle

 

77

 

—

 

294

 

All Other Consumer

 

4

 

—

 

1,741

 

TOTAL

 

$

2,157

 

$

17,344

 

$

38,102

 

 

Covered loans included in loans past due over 90 days still on accrual are $712 thousand at September 30, 2012 and $413 thousand at December 31, 2011. Covered loans included in non-accrual loans are $4.3 million at September 30, 2012 and $5.6 million at December 31, 2011. Covered loans of $3.0 million at September 30, 2012 and $5.0 million at December 31, 2011 are deemed impaired and have allowance for loan loss allocated to them of $129 thousand and $1.0 million, respectively for September 30, 2012 and December 31, 2011. Non-performing loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

 

The following table presents the aging of the recorded investment in loans by past due category and class of loans.

 

 

 

September 30, 2012

 

 

 

 

 

 

 

Greater

 

 

 

 

 

 

 

 

 

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

 

$

3,039

 

$

802

 

$

4,311

 

$

8,152

 

$

460,964

 

$

469,116

 

Farmland

 

22

 

164

 

1,325

 

1,511

 

88,762

 

90,273

 

Non Farm, Non Residential

 

812

 

227

 

2,753

 

3,792

 

315,500

 

319,292

 

Agriculture

 

239

 

191

 

15

 

445

 

115,501

 

115,946

 

All Other Commercial

 

453

 

57

 

608

 

1,118

 

89,140

 

90,258

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

1,846

 

965

 

4,532

 

7,343

 

351,053

 

358,396

 

Home Equity

 

119

 

22

 

19

 

160

 

43,750

 

43,910

 

Junior Liens

 

314

 

199

 

352

 

865

 

38,454

 

39,319

 

Multifamily

 

—

 

1,830

 

5,602

 

7,432

 

49,219

 

56,651

 

All Other Residential

 

—

 

170

 

—

 

170

 

10,717

 

10,887

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

4,189

 

391

 

112

 

4,692

 

245,730

 

250,422

 

All Other Consumer

 

217

 

57

 

6

 

280

 

23,848

 

24,128

 

TOTAL

 

$

11,250

 

$

5,075

 

$

19,635

 

$

35,960

 

$

1,832,638

 

$

1,868,598

 

 

 

 

December 31, 2011

 

 

 

 

 

 

 

Greater

 

 

 

 

 

 

 

 

 

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

 

$

2,717

 

$

740

 

$

4,452

 

$

7,909

 

$

472,370

 

$

480,279

 

Farmland

 

5

 

57

 

1,034

 

1,096

 

98,158

 

99,254

 

Non Farm, Non Residential

 

2,945

 

420

 

7,754

 

11,119

 

310,724

 

321,843

 

Agriculture

 

88

 

—

 

97

 

185

 

114,162

 

114,347

 

All Other Commercial

 

120

 

—

 

1,588

 

1,708

 

88,313

 

90,021

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

11,436

 

2,016

 

5,316

 

18,768

 

340,269

 

359,037

 

Home Equity

 

175

 

62

 

8

 

245

 

44,939

 

45,184

 

Junior Liens

 

1,333

 

183

 

190

 

1,706

 

39,903

 

41,609

 

Multifamily

 

—

 

100

 

668

 

768

 

46,216

 

46,984

 

All Other Residential

 

128

 

—

 

136

 

264

 

14,261

 

14,525

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

3,450

 

563

 

77

 

4,090

 

260,102

 

264,192

 

All Other Consumer

 

174

 

48

 

5

 

227

 

26,782

 

27,009

 

TOTAL

 

$

22,571

 

$

4,189

 

$

21,325

 

$

48,085

 

$

1,856,199

 

$

1,904,284

 

 

The Corporation has allocated $1.7 million and $1.6 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2012 and December 31, 2011.  The Corporation has not committed to lend additional amounts as of September 30, 2012 and December 31, 2011 to customers with outstanding loans that are classified as troubled debt restructurings. There were $162 thousand in modifications that were troubled debt restructurings in the quarter ended March 31, 2012, $655 thousand for the three months ended June 30, 2012 and $5.06 million for the three months ended September 30, 2012, resulting in no impact to the allowance for loan losses. $4.9 million of the $5.06 added in the third quarter was one non-farm, non residential loan that is collateralized well enough to expect no loss. The remaining $126 thousand added in the third quarter were all other consumer loans. There were $15 thousand in loans that defaulted during the three and nine months ended September 30, 2012 that had been restructured within the past 12 months.

 

Credit Quality Indicators:

 

The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Corporation analyzes loans individually by classifying the loans as to credit risk.  This analysis includes non-homogeneous loans, such as commercial loans, with an outstanding balance greater than $50 thousand.  Any consumer loans outstanding to a borrower who had commercial loans analyzed will be similarly risk rated.  This analysis is performed on a quarterly basis.  The Corporation uses the following definitions for risk ratings:

 

Special Mention:  Loans classified as special mention have a potential weakness that deserves management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

 

Substandard:  Loans classified as substandard are inadequately protected by the current net worth and debt service capacity of the borrower or of any pledged collateral.  These loans have a well-defined weakness or weaknesses which have clearly jeopardized repayment of principal and interest as originally intended.  They are characterized by the distinct possibility that the institution will sustain some future loss if the deficiencies are not corrected.

 

Doubtful:  Loans classified as doubtful have all the weaknesses inherent in those graded substandard, with the added characteristic that the severity of the weaknesses makes collection or liquidation in full highly questionable or improbable based upon currently existing facts, conditions, and values.

 

Furthermore, non-homogeneous loans which were not individually analyzed, but are 90+ days past due or on non-accrual are classified as substandard.  Loans included in homogeneous pools, such as residential or consumer may be classified as substandard due to 90+ days delinquency, non-accrual status, bankruptcy, or loan restructuring. Loans listed as not rated are either less than $50 thousand or are included in groups of homogeneous loans.

 

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of September 30, 2012 and December 31, 2011, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:

 

 

 

September 30, 2012

 

 

 

 

 

Special

 

 

 

 

 

 

 

 

 

(Dollar amounts in thousands)

 

Pass

 

Mention

 

Substandard

 

Doubtful

 

Not Rated

 

Total

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

$

392,252

 

$

27,090

 

$

39,143

 

$

7,416

 

$

1,859

 

$

467,760

 

Farmland

 

80,907

 

4,809

 

2,575

 

—

 

110

 

88,401

 

Non Farm, Non Residential

 

267,667

 

22,505

 

25,139

 

952

 

2,042

 

318,305

 

Agriculture

 

107,179

 

6,598

 

365

 

—

 

71

 

114,213

 

All Other Commercial

 

80,871

 

1,026

 

6,567

 

56

 

1,252

 

89,772

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

112,902

 

3,824

 

16,956

 

945

 

222,442

 

357,069

 

Home Equity

 

13,298

 

527

 

1,628

 

25

 

28,352

 

43,830

 

Junior Liens

 

10,855

 

288

 

481

 

71

 

27,474

 

39,169

 

Multifamily

 

42,504

 

3,563

 

8,563

 

1,899

 

—

 

56,529

 

All Other Residential

 

2,832

 

—

 

36

 

—

 

7,979

 

10,847

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

11,481

 

394

 

349

 

40

 

236,951

 

249,215

 

All Other Consumer

 

4,794

 

99

 

106

 

14

 

18,968

 

23,981

 

TOTAL

 

$

1,127,542

 

$

70,723

 

$

101,908

 

$

11,418

 

$

547,500

 

$

1,859,091

 

 

 

 

 

December 31, 2011

 

 

 

 

 

Special

 

 

 

 

 

 

 

 

 

(Dollar amounts in thousands)

 

Pass

 

Mention

 

Substandard

 

Doubtful

 

Not Rated

 

Total

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

$

386,734

 

$

25,343

 

$

53,026

 

$

7,128

 

$

6,717

 

$

478,948

 

Farmland

 

89,213

 

4,250

 

3,015

 

69

 

619

 

97,166

 

Non Farm, Non Residential

 

254,761

 

28,684

 

32,704

 

4,271

 

393

 

320,813

 

Agriculture

 

109,869

 

2,100

 

623

 

79

 

122

 

112,793

 

All Other Commercial

 

77,330

 

6,097

 

5,099

 

67

 

1,011

 

89,604

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

113,234

 

5,175

 

19,895

 

1,318

 

218,118

 

357,740

 

Home Equity

 

13,613

 

520

 

671

 

19

 

30,278

 

45,101

 

Junior Liens

 

11,887

 

714

 

783

 

968

 

27,105

 

41,457

 

Multifamily

 

35,837

 

3,911

 

6,224

 

606

 

258

 

46,836

 

All Other Residential

 

4,658

 

445

 

53

 

—

 

9,310

 

14,466

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

12,988

 

330

 

501

 

59

 

249,018

 

262,896

 

All Other Consumer

 

6,120

 

57

 

141

 

12

 

20,491

 

26,821

 

TOTAL

 

$

1,116,244

 

$

77,626

 

$

122,735

 

$

14,596

 

$

563,440

 

$

1,894,641