Loans and Allowance for Loan Losses |
Note 4—Loans and Allowance for Loan Losses
The following is a summary of non-acquired loans:
|
|
|
|
|
|
|
|
|
|
December 31, |
|
(Dollars in thousands)
|
|
2012 |
|
2011 |
|
Non-acquired loans: |
|
|
|
|
|
|
|
Commercial non-owner occupied real estate: |
|
|
|
|
|
|
|
Construction and land development |
|
$ |
273,420 |
|
|
310,845 |
|
Commercial non-owner occupied |
|
|
290,071 |
|
|
299,698 |
|
|
|
|
|
|
|
Total commercial non-owner occupied real estate |
|
|
563,491 |
|
|
610,543 |
|
Consumer real estate: |
|
|
|
|
|
|
|
Consumer owner occupied |
|
|
434,503 |
|
|
391,529 |
|
Home equity loans |
|
|
255,284 |
|
|
264,986 |
|
|
|
|
|
|
|
Total consumer real estate |
|
|
689,787 |
|
|
656,515 |
|
Commercial owner occupied real estate |
|
|
784,152 |
|
|
742,890 |
|
Commercial and industrial |
|
|
279,763 |
|
|
220,454 |
|
Other income producing property |
|
|
133,713 |
|
|
140,693 |
|
Consumer |
|
|
86,934 |
|
|
85,342 |
|
Other loans |
|
|
33,163 |
|
|
14,128 |
|
|
|
|
|
|
|
Total non-acquired loans |
|
|
2,571,003 |
|
|
2,470,565 |
|
Less allowance for loan losses |
|
|
(44,378 |
) |
|
(49,367 |
) |
|
|
|
|
|
|
Non-acquired loans, net |
|
$ |
2,526,625 |
|
$ |
2,421,198 |
|
|
|
|
|
|
|
In accordance with FASB ASC Topic 310-30, the Company aggregated acquired loans that have common risk characteristics into pools of loan categories as described in the table below. The majority of the acquired loans are accounted for in accordance with FASB ASC Topic 310-30.
The Company's acquired loan portfolio is comprised of the following balances net of related discount:
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Loans
Impaired
at Acquisition |
|
Loans
Not Impaired
at Acquisition |
|
Total |
|
December 31, 2012: |
|
|
|
|
|
|
|
|
|
|
FASB ASC Topic 310-30 acquired loans: |
|
|
|
|
|
|
|
|
|
|
Covered loans: |
|
|
|
|
|
|
|
|
|
|
Commercial loans greater than or equal to $1 million—CBT |
|
$ |
19,483 |
|
$ |
30,201 |
|
$ |
49,684 |
|
Commercial real estate |
|
|
22,946 |
|
|
40,016 |
|
|
62,962 |
|
Commercial real estate—construction and development |
|
|
15,107 |
|
|
17,468 |
|
|
32,575 |
|
Residential real estate |
|
|
39,050 |
|
|
65,761 |
|
|
104,811 |
|
Consumer |
|
|
948 |
|
|
3,376 |
|
|
4,324 |
|
Commercial and industrial |
|
|
8,281 |
|
|
15,319 |
|
|
23,600 |
|
Single pay |
|
|
4,599 |
|
|
173 |
|
|
4,772 |
|
|
|
|
|
|
|
|
|
Total covered loans |
|
$ |
110,414 |
|
$ |
172,314 |
|
$ |
282,728 |
|
Non-covered loans: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
53,259 |
|
|
256,703 |
|
|
309,962 |
|
Commercial real estate—construction and development |
|
|
32,975 |
|
|
64,901 |
|
|
97,876 |
|
Residential real estate |
|
|
40,585 |
|
|
209,731 |
|
|
250,316 |
|
Consumer |
|
|
1,672 |
|
|
9,689 |
|
|
11,361 |
|
Commercial and industrial |
|
|
3,064 |
|
|
46,220 |
|
|
49,284 |
|
|
|
|
|
|
|
|
|
Total non-covered loans |
|
|
131,555 |
|
|
587,244 |
|
|
718,799 |
|
|
|
|
|
|
|
|
|
Total FASB ASC Topic 310-30 acquired loans |
|
|
241,969 |
|
|
759,558 |
|
|
1,001,527 |
|
Total FASB ASC Topic 310-20 acquired loans (non-covered) |
|
|
— |
|
|
73,215 |
|
|
73,215 |
|
|
|
|
|
|
|
|
|
Total acquired loans |
|
|
241,969 |
|
|
832,773 |
|
|
1,074,742 |
|
Less allowance for loan losses |
|
|
(24,988 |
) |
|
(7,144 |
) |
|
(32,132 |
) |
|
|
|
|
|
|
|
|
Acquired loans, net |
|
$ |
216,981 |
|
$ |
825,629 |
|
$ |
1,042,610 |
|
|
|
|
|
|
|
|
|
December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
FASB ASC Topic 310-30 acquired loans: |
|
|
|
|
|
|
|
|
|
|
Covered loans: |
|
|
|
|
|
|
|
|
|
|
Commercial loans greater than or equal to $1 million—CBT |
|
$ |
24,073 |
|
$ |
36,756 |
|
$ |
60,829 |
|
Commercial real estate |
|
|
39,685 |
|
|
67,780 |
|
|
107,465 |
|
Commercial real estate—construction and development |
|
|
29,528 |
|
|
21,425 |
|
|
50,953 |
|
Residential real estate |
|
|
52,727 |
|
|
74,926 |
|
|
127,653 |
|
Consumer |
|
|
2,669 |
|
|
4,364 |
|
|
7,033 |
|
Commercial and industrial |
|
|
14,800 |
|
|
21,702 |
|
|
36,502 |
|
Single pay |
|
|
3,852 |
|
|
208 |
|
|
4,060 |
|
|
|
|
|
|
|
|
|
Total covered loans |
|
$ |
167,334 |
|
$ |
227,161 |
|
$ |
394,495 |
|
Non-covered loans: |
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
305 |
|
|
557 |
|
|
862 |
|
Commercial real estate—construction and development |
|
|
5 |
|
|
47 |
|
|
52 |
|
Residential real estate |
|
|
244 |
|
|
753 |
|
|
997 |
|
Consumer |
|
|
2,723 |
|
|
263 |
|
|
2,986 |
|
Commercial and industrial |
|
|
219 |
|
|
2,590 |
|
|
2,809 |
|
|
|
|
|
|
|
|
|
Total non-covered loans |
|
|
3,496 |
|
|
4,210 |
|
|
7,706 |
|
|
|
|
|
|
|
|
|
Total FASB ASC Topic 310-30 acquired loans |
|
|
170,830 |
|
|
231,371 |
|
|
402,201 |
|
Less allowance for loan losses |
|
|
(23,875 |
) |
|
(7,745 |
) |
|
(31,620 |
) |
|
|
|
|
|
|
|
|
Acquired loans, net |
|
$ |
146,955 |
|
$ |
223,626 |
|
$ |
370,581 |
|
|
|
|
|
|
|
|
|
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of FASB ASC Topic 310-30 acquired loans impaired and non-impaired at the acquisition date for Savannah (December 13, 2012) are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
December 13, 2012 |
|
|
|
FASB ASC Topic 310-30 Loans |
|
|
|
(Dollars in thousands)
|
|
Loans
Impaired
at Acquisition |
|
Loans
Not Impaired
at Acquisition |
|
Total |
|
Contractual principal and interest |
|
$ |
155,582 |
|
$ |
483,293 |
|
$ |
638,875 |
|
Non-accretable difference |
|
|
(37,492 |
) |
|
(9,460 |
) |
|
(46,952 |
) |
|
|
|
|
|
|
|
|
Cash flows expected to be collected |
|
|
118,090 |
|
|
473,833 |
|
|
591,923 |
|
Accretable yield |
|
|
(8,615 |
) |
|
(51,466 |
) |
|
(60,081 |
) |
|
|
|
|
|
|
|
|
Carrying value |
|
$ |
109,475 |
|
$ |
422,367 |
|
$ |
531,842 |
|
|
|
|
|
|
|
|
|
The table above excludes $69.5 million ($74.9 million in contractual principal less a $5.4 million fair value adjustment) in acquired loans at fair value as of the acquisition date that will be accounted for under FASB ASC Topic 310-20. These loans are primarily commercial and consumer lines of credit for which the entire discount will be accreted into interest income.
Contractual loan payments receivable, estimates of amounts not expected to be collected, other fair value adjustments and the resulting fair values of acquired loans impaired and non-impaired at the acquisition date for Peoples (April 24, 2012) are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
April 24, 2012 |
|
|
|
FASB ASC Topic 310-30 Loans |
|
|
|
(Dollars in thousands)
|
|
Loans
Impaired
at Acquisition |
|
Loans
Not Impaired
at Acquisition |
|
Total |
|
Contractual principal and interest |
|
$ |
56,940 |
|
$ |
250,023 |
|
$ |
306,963 |
|
Non-accretable difference |
|
|
(21,237 |
) |
|
(16,560 |
) |
|
(37,797 |
) |
|
|
|
|
|
|
|
|
Cash flows expected to be collected |
|
|
35,703 |
|
|
233,463 |
|
|
269,166 |
|
Accretable yield |
|
|
(4,968 |
) |
|
(29,953 |
) |
|
(34,921 |
) |
|
|
|
|
|
|
|
|
Carrying value |
|
$ |
30,735 |
|
$ |
203,510 |
|
$ |
234,245 |
|
|
|
|
|
|
|
|
|
Contractual loan payments receivable, estimates of amounts not expected to be collected, accretable yield and the resulting carrying values of FASB ASC Topic 310-30 acquired loans (impaired and non-impaired) are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
FASB ASC Topic 310-30 Loans |
|
|
|
(Dollars in thousands)
|
|
Loans
Impaired
at Acquisition |
|
Loans
Not Impaired
at Acquisition |
|
Total |
|
December 31, 2012: |
|
|
|
|
|
|
|
|
|
|
Contractual principal and interest |
|
$ |
376,894 |
|
$ |
926,153 |
|
$ |
1,303,047 |
|
Non-accretable difference |
|
|
(86,514 |
) |
|
(54,157 |
) |
|
(140,671 |
) |
|
|
|
|
|
|
|
|
Cash flows expected to be collected |
|
|
290,380 |
|
|
871,996 |
|
|
1,162,376 |
|
Accretable yield |
|
|
(48,411 |
) |
|
(112,438 |
) |
|
(160,849 |
) |
|
|
|
|
|
|
|
|
Carrying value |
|
$ |
241,969 |
|
$ |
759,558 |
|
$ |
1,001,527 |
|
|
|
|
|
|
|
|
|
Allowance for loan losses on acquired loans |
|
$ |
(24,988 |
) |
$ |
(7,144 |
) |
$ |
(32,132 |
) |
|
|
|
|
|
|
|
|
December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
Contractual principal and interest |
|
$ |
382,760 |
|
$ |
361,726 |
|
$ |
744,486 |
|
Non-accretable difference |
|
|
(176,601 |
) |
|
(71,084 |
) |
|
(247,685 |
) |
|
|
|
|
|
|
|
|
Cash flows expected to be collected |
|
|
206,159 |
|
|
290,642 |
|
|
496,801 |
|
Accretable yield |
|
|
(35,329 |
) |
|
(59,271 |
) |
|
(94,600 |
) |
|
|
|
|
|
|
|
|
Carrying value |
|
$ |
170,830 |
|
$ |
231,371 |
|
$ |
402,201 |
|
|
|
|
|
|
|
|
|
Allowance for loan losses on acquired loans |
|
$ |
(23,875 |
) |
$ |
(7,745 |
) |
$ |
(31,620 |
) |
|
|
|
|
|
|
|
|
The table above excludes $73.2 million ($78.5 million in contractual principal less a $5.3 million discount) in acquired loans at carrying value as of December 31, 2012 that will be accounted for under FASB ASC Topic 310-20. There was no allowance for loan losses related to these loans as of December 31, 2012.
Income on acquired loans that are not impaired at the acquisition date is recognized in the same manner as loans impaired at the acquisition date. A portion of the fair value discount on acquired non-impaired loans has been ascribed as an accretable yield that is accreted into interest income over the estimated remaining life of the loans. The remaining nonaccretable difference represents cash flows not expected to be collected.
The unpaid contractual principal balance for acquired loans was $1.3 billion at December 31, 2012 and $597.7 million at December 31, 2011.
The following are changes in the carrying value of acquired loans during the years ended December 31, 2012 and 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
FASB ASC Topic 310-30 |
|
|
|
(Dollars in thousands)
|
|
Loans
Impaired
at Acquisition |
|
Loans
Not Impaired
at Acquisition |
|
Total |
|
Balance, December 31, 2011 |
|
$ |
146,955 |
|
$ |
223,626 |
|
$ |
370,581 |
|
Fair value of acquired loans |
|
|
140,210 |
|
|
625,877 |
|
|
766,087 |
|
Net increases (reductions) for payments, foreclosures, draws, and accretion |
|
|
(69,071 |
) |
|
(97,690 |
) |
|
(166,761 |
) |
Change in the allowance for loan losses on acquired loans |
|
|
(1,113 |
) |
|
601 |
|
|
(512 |
) |
|
|
|
|
|
|
|
|
Balance, December 31, 2012, net of allowance for loan losses on acquired loans |
|
$ |
216,981 |
|
$ |
752,414 |
|
$ |
969,395 |
|
|
|
|
|
|
|
|
|
Balance, December 31, 2010 |
|
$ |
143,059 |
|
$ |
177,979 |
|
$ |
321,038 |
|
Fair value of acquired loans |
|
|
92,278 |
|
|
130,156 |
|
|
222,434 |
|
Net reductions for payments, foreclosures, and accretion |
|
|
(64,507 |
) |
|
(76,764 |
) |
|
(141,271 |
) |
Change in the allowance for loan losses on acquired loans |
|
|
(23,875 |
) |
|
(7,745 |
) |
|
(31,620 |
) |
|
|
|
|
|
|
|
|
Balance, December 31, 2011, net of allowance for loan losses on acquired loans |
|
$ |
146,955 |
|
$ |
223,626 |
|
$ |
370,581 |
|
|
|
|
|
|
|
|
|
The table above excludes $73.2 million ($69.5 million in fair value of acquired loans and $3.7 million in net increases for payments, draws, and accretion) in acquired loans at carrying value as of December 31, 2012 that will be accounted for under FASB ASC Topic 310-20.
The following are changes in the carrying amount of accretable yield for purchased impaired and non-impaired loans:
|
|
|
|
|
|
|
|
|
|
Years Ended
December 31, |
|
(Dollars in thousands)
|
|
2012 |
|
2011 |
|
Beginning at beginning of period |
|
$ |
94,600 |
|
$ |
44,684 |
|
Addition from the Habersham acquisition |
|
|
— |
|
|
28,115 |
|
Addition from BankMeridian acquisition |
|
|
— |
|
|
21,216 |
|
Addition from the Peoples acquisition |
|
|
34,921 |
|
|
— |
|
Addition from the SAVB acquisition |
|
|
60,081 |
|
|
— |
|
Interest income |
|
|
(52,628 |
) |
|
(40,710 |
) |
Reclass of nonaccretable difference due to improvement in expected cash flows |
|
|
35,739 |
|
|
41,555 |
|
Other changes, net |
|
|
(11,864 |
) |
|
(260 |
) |
|
|
|
|
|
|
Balance at end of period |
|
$ |
160,849 |
|
$ |
94,600 |
|
|
|
|
|
|
|
On December 13, 2006, the FDIC, Federal Reserve, OCC, and other regulatory agencies collectively revised the banking agencies' 1993 policy statement on the allowance for loan and lease losses to ensure consistency with generally accepted accounting principles in the United States and more recent supervisory guidance. Our loan loss policy adheres to the interagency guidance.
The allowance for loan losses is based upon estimates made by management. We maintain an allowance for loan losses at a level that we believe is appropriate to cover estimated credit losses on individually evaluated loans that are determined to be impaired as well as estimated credit losses inherent in the remainder of our loan portfolio. Arriving at the allowance involves a high degree of management judgment and results in a range of estimated losses. We regularly evaluate the adequacy of the allowance through our internal risk rating system, outside credit review, and regulatory agency examinations to assess the quality of the loan portfolio and identify problem loans. The evaluation process also includes our analysis of current economic conditions, composition of the loan portfolio, past due and nonaccrual loans, concentrations of credit, lending policies and procedures, and historical loan loss experience. While management uses available information to recognize losses on loans, future additions to the allowance may be necessary based on, among other factors, changes in economic conditions in our markets. In addition, regulatory agencies, as an integral part of their examination process, periodically review our allowances for losses on loans. These agencies may require management to recognize additions to the allowances based on their judgments about information available to them at the time of their examination. Because of these and other factors, it is possible that the allowances for losses on loans may change. The provision for loan losses is charged to expense in an amount necessary to maintain the allowance at an appropriate level.
The allowance for loan losses on non-acquired loans consists of general and specific reserves. The general reserves are determined by applying loss percentages to the portfolio that are based on historical loss experience for each class of loans and management's evaluation and "risk grading" of the loan portfolio. Additionally, the general economic and business conditions affecting key lending areas, credit quality trends, collateral values, loan volumes and concentrations, seasoning of the loan portfolio, the findings of internal and external credit reviews and results from external bank regulatory examinations are included in this evaluation. Currently, these adjustments are applied to the non-acquired loan portfolio when estimating the level of reserve required. The specific reserves are determined on a loan-by-loan basis based on management's evaluation of our exposure for each credit, given the current payment status of the loan and the value of any underlying collateral. These are loans classified by management as doubtful or substandard. For such loans that are also classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. Generally, the need for specific reserve is evaluated on impaired loans greater than $250,000, and once a specific reserve is established for a loan, a charge off of that amount occurs in the quarter subsequent to the establishment of the specific reserve. Loans that are determined to be impaired are provided a specific reserve, if necessary, and are excluded from the calculation of the general reserves.
In determining the acquisition date fair value of purchased loans, and in subsequent accounting, SCBT generally aggregates purchased loans into pools of loans with common risk characteristics. Expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level yield method if the timing and amount of the future cash flows of the pool is reasonably estimable. Subsequent to the acquisition date, increases in cash flows over those expected at the acquisition date are reclassified from the non-accretable difference to accretable yield and recognized as interest income prospectively. Decreases in expected cash flows after the acquisition date are recognized by recording an allowance for loan losses. Management analyzes the acquired loan pools using various assessments of risk to determine an expected loss. The expected loss is derived based upon a loss given default based upon the collateral type and/or detailed review by loan officers of loans greater than $500,000 and the probability of default that is determined based upon historical data at the loan level. Trends are reviewed in terms of accrual status, past due status, and weighted-average grade of the loans within each of the accounting pools. In addition, the relationship between the change in the unpaid principal balance and change in the mark is assessed to correlate the directional consistency of the expected loss for each pool. Offsetting the impact of the provision established for acquired loans covered under FDIC loss share agreements, the receivable from the FDIC is adjusted to reflect the indemnified portion of the post-acquisition exposure with a corresponding credit to the provision for loan losses. (For further discussion of the Company's allowance for loan losses on acquired loans, see Note 1—Summary of Significant Accounting Policies and Note 2—Mergers and Acquisitions.)
An aggregated analysis of the changes in allowance for loan losses is as follows:
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Non-acquired
Loans |
|
Acquired Loans |
|
Total |
|
Year ended December 31, 2012: |
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
49,367 |
|
$ |
31,620 |
|
$ |
80,987 |
|
Loans charged-off |
|
|
(21,930 |
) |
|
— |
|
|
(21,930 |
) |
Recoveries of loans previously charged off |
|
|
3,756 |
|
|
— |
|
|
3,756 |
|
|
|
|
|
|
|
|
|
Net charge-offs |
|
|
(18,174 |
) |
|
— |
|
|
(18,174 |
) |
Provision for loan losses |
|
|
13,185 |
|
|
512 |
|
|
13,697 |
|
Benefit attributable to FDIC loss share agreements |
|
|
— |
|
|
(78 |
) |
|
(78 |
) |
|
|
|
|
|
|
|
|
Total provision for loan losses charged to operations |
|
|
13,185 |
|
|
434 |
|
|
13,619 |
|
Provision for loan losses recorded through the FDIC
loss share receivable |
|
|
— |
|
|
78 |
|
|
78 |
|
|
|
|
|
|
|
|
|
Balance at end of period |
|
$ |
44,378 |
|
$ |
32,132 |
|
$ |
76,510 |
|
|
|
|
|
|
|
|
|
Year ended December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
47,512 |
|
$ |
— |
|
$ |
47,512 |
|
Loans charged-off |
|
|
(29,209 |
) |
|
— |
|
|
(29,209 |
) |
Recoveries of loans previously charged off |
|
|
2,409 |
|
|
— |
|
|
2,409 |
|
|
|
|
|
|
|
|
|
Net charge-offs |
|
|
(26,800 |
) |
|
— |
|
|
(26,800 |
) |
Provision for loan losses |
|
|
28,655 |
|
|
31,620 |
|
|
60,275 |
|
Benefit attributable to FDIC loss share agreements |
|
|
— |
|
|
(30,039 |
) |
|
(30,039 |
) |
|
|
|
|
|
|
|
|
Total provision for loan losses charged to operations |
|
|
28,655 |
|
|
1,581 |
|
|
30,236 |
|
Provision for loan losses recorded through the FDIC
loss share receivable |
|
|
— |
|
|
30,039 |
|
|
30,039 |
|
|
|
|
|
|
|
|
|
Balance at end of period |
|
$ |
49,367 |
|
$ |
31,620 |
|
$ |
80,987 |
|
|
|
|
|
|
|
|
|
Year ended December 31, 2010: |
|
|
|
|
|
|
|
|
|
|
Balance at beginning of period |
|
$ |
37,488 |
|
$ |
— |
|
$ |
37,488 |
|
Loans charged-off |
|
|
(46,817 |
) |
|
— |
|
|
(46,817 |
) |
Recoveries of loans previously charged off |
|
|
2,559 |
|
|
— |
|
|
2,559 |
|
|
|
|
|
|
|
|
|
Net charge-offs |
|
|
(44,258 |
) |
|
— |
|
|
(44,258 |
) |
Provision for loan losses |
|
|
54,282 |
|
|
— |
|
|
54,282 |
|
|
|
|
|
|
|
|
|
Balance at end of period |
|
$ |
47,512 |
|
$ |
— |
|
$ |
47,512 |
|
|
|
|
|
|
|
|
|
The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for non-acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Construction &
Land
Development |
|
Commercial
Non-owner
Occupied |
|
Commercial
Owner
Occupied |
|
Consumer
Owner
Occupied |
|
Home
Equity |
|
Commercial &
Industrial |
|
Other
Income
Producing
Property |
|
Consumer |
|
Other
Loans |
|
Total |
|
Year ended December 31, 2012: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2011 |
|
$ |
12,373 |
|
$ |
6,109 |
|
$ |
10,356 |
|
$ |
7,453 |
|
$ |
4,269 |
|
$ |
3,901 |
|
$ |
3,636 |
|
$ |
1,145 |
|
$ |
125 |
|
$ |
49,367 |
|
Charge-offs |
|
|
(8,454 |
) |
|
(2,348 |
) |
|
(2,781 |
) |
|
(1,850 |
) |
|
(1,394 |
) |
|
(2,033 |
) |
|
(924 |
) |
|
(2,146 |
) |
|
— |
|
|
(21,930 |
) |
Recoveries |
|
|
1,428 |
|
|
282 |
|
|
5 |
|
|
124 |
|
|
600 |
|
|
228 |
|
|
361 |
|
|
728 |
|
|
— |
|
|
3,756 |
|
Provision |
|
|
5,489 |
|
|
878 |
|
|
1,163 |
|
|
841 |
|
|
151 |
|
|
2,843 |
|
|
674 |
|
|
1,054 |
|
|
92 |
|
|
13,185 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2012 |
|
$ |
10,836 |
|
$ |
4,921 |
|
$ |
8,743 |
|
$ |
6,568 |
|
$ |
3,626 |
|
$ |
4,939 |
|
$ |
3,747 |
|
$ |
781 |
|
$ |
217 |
|
$ |
44,378 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment |
|
$ |
1,573 |
|
$ |
411 |
|
$ |
648 |
|
$ |
213 |
|
$ |
— |
|
$ |
1,030 |
|
$ |
1,004 |
|
$ |
— |
|
$ |
— |
|
$ |
4,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans collectively evaluated for impairment |
|
$ |
9,263 |
|
$ |
4,510 |
|
$ |
8,095 |
|
$ |
6,355 |
|
$ |
3,626 |
|
$ |
3,909 |
|
$ |
2,743 |
|
$ |
781 |
|
$ |
217 |
|
$ |
39,499 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment |
|
$ |
13,549 |
|
$ |
5,344 |
|
$ |
20,212 |
|
$ |
1,954 |
|
$ |
— |
|
$ |
1,783 |
|
$ |
4,393 |
|
$ |
— |
|
$ |
— |
|
$ |
47,235 |
|
Loans collectively evaluated for impairment |
|
|
259,871 |
|
|
284,727 |
|
|
763,940 |
|
|
432,549 |
|
|
255,284 |
|
|
277,980 |
|
|
129,320 |
|
|
86,934 |
|
|
33,163 |
|
|
2,523,768 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-acquired loans |
|
$ |
273,420 |
|
$ |
290,071 |
|
$ |
784,152 |
|
$ |
434,503 |
|
$ |
255,284 |
|
$ |
279,763 |
|
$ |
133,713 |
|
$ |
86,934 |
|
$ |
33,163 |
|
$ |
2,571,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2010 |
|
$ |
14,242 |
|
$ |
6,428 |
|
$ |
7,814 |
|
$ |
6,060 |
|
$ |
4,424 |
|
$ |
4,313 |
|
$ |
2,834 |
|
$ |
1,191 |
|
$ |
206 |
|
$ |
47,512 |
|
Charge-offs |
|
|
(11,848 |
) |
|
(3,805 |
) |
|
(2,346 |
) |
|
(3,365 |
) |
|
(2,159 |
) |
|
(1,872 |
) |
|
(2,366 |
) |
|
(1,337 |
) |
|
(111 |
) |
|
(29,209 |
) |
Recoveries |
|
|
518 |
|
|
144 |
|
|
158 |
|
|
224 |
|
|
132 |
|
|
295 |
|
|
293 |
|
|
645 |
|
|
— |
|
|
2,409 |
|
Provision |
|
|
9,461 |
|
|
3,342 |
|
|
4,730 |
|
|
4,534 |
|
|
1,872 |
|
|
1,165 |
|
|
2,875 |
|
|
646 |
|
|
30 |
|
|
28,655 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2011 |
|
$ |
12,373 |
|
$ |
6,109 |
|
$ |
10,356 |
|
$ |
7,453 |
|
$ |
4,269 |
|
$ |
3,901 |
|
$ |
3,636 |
|
$ |
1,145 |
|
$ |
125 |
|
$ |
49,367 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment |
|
$ |
1,646 |
|
$ |
706 |
|
$ |
1,510 |
|
$ |
262 |
|
$ |
— |
|
$ |
— |
|
$ |
289 |
|
$ |
— |
|
$ |
— |
|
$ |
4,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans collectively evaluated for impairment |
|
$ |
10,727 |
|
$ |
5,403 |
|
$ |
8,846 |
|
$ |
7,191 |
|
$ |
4,269 |
|
$ |
3,901 |
|
$ |
3,347 |
|
$ |
1,145 |
|
$ |
125 |
|
$ |
44,954 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment |
|
$ |
24,749 |
|
$ |
12,040 |
|
$ |
17,717 |
|
$ |
2,594 |
|
$ |
— |
|
$ |
1,576 |
|
$ |
3,375 |
|
$ |
— |
|
$ |
— |
|
$ |
62,051 |
|
Loans collectively evaluated for impairment |
|
|
286,096 |
|
|
287,658 |
|
|
725,173 |
|
|
388,935 |
|
|
264,986 |
|
|
218,878 |
|
|
137,318 |
|
|
85,342 |
|
|
14,128 |
|
|
2,408,514 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-acquired loans |
|
$ |
310,845 |
|
$ |
299,698 |
|
$ |
742,890 |
|
$ |
391,529 |
|
$ |
264,986 |
|
$ |
220,454 |
|
$ |
140,693 |
|
$ |
85,342 |
|
$ |
14,128 |
|
$ |
2,470,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2010: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2009 |
|
$ |
9,169 |
|
$ |
5,792 |
|
$ |
5,978 |
|
$ |
4,635 |
|
$ |
3,751 |
|
$ |
4,330 |
|
$ |
2,375 |
|
$ |
1,258 |
|
$ |
200 |
|
$ |
37,488 |
|
Charge-offs |
|
|
(19,150 |
) |
|
(3,011 |
) |
|
(2,625 |
) |
|
(7,285 |
) |
|
(2,490 |
) |
|
(9,138 |
) |
|
(338 |
) |
|
(2,780 |
) |
|
— |
|
|
(46,817 |
) |
Recoveries |
|
|
785 |
|
|
29 |
|
|
126 |
|
|
149 |
|
|
45 |
|
|
713 |
|
|
6 |
|
|
706 |
|
|
— |
|
|
2,559 |
|
Provision |
|
|
23,438 |
|
|
3,618 |
|
|
4,335 |
|
|
8,561 |
|
|
3,118 |
|
|
8,408 |
|
|
791 |
|
|
2,007 |
|
|
6 |
|
|
54,282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2010 |
|
$ |
14,242 |
|
$ |
6,428 |
|
$ |
7,814 |
|
$ |
6,060 |
|
$ |
4,424 |
|
$ |
4,313 |
|
$ |
2,834 |
|
$ |
1,191 |
|
$ |
206 |
|
$ |
47,512 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment |
|
$ |
1,718 |
|
$ |
1,444 |
|
$ |
830 |
|
$ |
80 |
|
$ |
— |
|
$ |
36 |
|
$ |
28 |
|
$ |
— |
|
$ |
— |
|
$ |
4,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans collectively evaluated for impairment |
|
$ |
12,524 |
|
$ |
4,984 |
|
$ |
6,984 |
|
$ |
5,980 |
|
$ |
4,424 |
|
$ |
4,277 |
|
$ |
2,806 |
|
$ |
1,191 |
|
$ |
206 |
|
$ |
43,376 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment |
|
$ |
23,081 |
|
$ |
10,948 |
|
$ |
10,747 |
|
$ |
1,540 |
|
$ |
— |
|
$ |
1,144 |
|
$ |
3,153 |
|
$ |
— |
|
$ |
— |
|
$ |
50,613 |
|
Loans collectively evaluated for impairment |
|
|
368,906 |
|
|
309,255 |
|
|
567,840 |
|
|
323,930 |
|
|
263,961 |
|
|
201,843 |
|
|
121,278 |
|
|
67,768 |
|
|
20,806 |
|
|
2,245,587 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total non-acquired loans |
|
$ |
391,987 |
|
$ |
320,203 |
|
$ |
578,587 |
|
$ |
325,470 |
|
$ |
263,961 |
|
$ |
202,987 |
|
$ |
124,431 |
|
$ |
67,768 |
|
$ |
20,806 |
|
$ |
2,296,200 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following tables present a disaggregated analysis of activity in the allowance for loan losses and loan balances for acquired loans. There was no acquired allowance for loan losses for the year ended December 31, 2010.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Commercial
Loans Greater
Than or Equal
to $1 Million |
|
Commercial
Real Estate |
|
Commercial
Real Estate—
Construction
and
Development |
|
Residential
Real Estate |
|
Consumer |
|
Commercial
and
Industrial |
|
Single
Pay |
|
FASB ASC
Topic 310-20
Loans |
|
Total |
|
Year ended December 31, 2012: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2011 |
|
$ |
16,706 |
|
$ |
1,318 |
|
$ |
— |
|
$ |
5,471 |
|
$ |
— |
|
$ |
4,564 |
|
$ |
3,561 |
|
$ |
— |
|
$ |
31,620 |
|
Charge-offs |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Recoveries |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Provision for loan losses before benefit attributable to FDIC loss share agreements |
|
|
(1,298 |
) |
|
199 |
|
|
1,628 |
|
|
(855 |
) |
|
96 |
|
|
(259 |
) |
|
1,001 |
|
|
— |
|
|
512 |
|
Benefit attributable to FDIC loss share agreements |
|
|
1,233 |
|
|
(30 |
) |
|
(1,319 |
) |
|
813 |
|
|
(88 |
) |
|
264 |
|
|
(951 |
) |
|
— |
|
|
(78 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total provision for loan losses charged to operations |
|
|
(65 |
) |
|
169 |
|
|
309 |
|
|
(42 |
) |
|
8 |
|
|
5 |
|
|
50 |
|
|
— |
|
|
434 |
|
Provision for loan losses recorded through the FDIC loss share receivable |
|
|
(1,233 |
) |
|
30 |
|
|
1,319 |
|
|
(813 |
) |
|
88 |
|
|
(264 |
) |
|
951 |
|
|
— |
|
|
78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2012 |
|
$ |
15,408 |
|
$ |
1,517 |
|
$ |
1,628 |
|
$ |
4,616 |
|
$ |
96 |
|
$ |
4,305 |
|
$ |
4,562 |
|
$ |
— |
|
$ |
32,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans collectively evaluated for impairment |
|
$ |
15,408 |
|
$ |
1,517 |
|
$ |
1,628 |
|
$ |
4,616 |
|
$ |
96 |
|
$ |
4,305 |
|
$ |
4,562 |
|
$ |
— |
|
$ |
32,132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans:* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Loans collectively evaluated for impairment |
|
|
49,684 |
|
|
372,924 |
|
|
130,451 |
|
|
355,127 |
|
|
15,685 |
|
|
72,884 |
|
|
4,772 |
|
|
73,215 |
|
|
1,074,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans |
|
$ |
49,684 |
|
$ |
372,924 |
|
$ |
130,451 |
|
$ |
355,127 |
|
$ |
15,685 |
|
$ |
72,884 |
|
$ |
4,772 |
|
$ |
73,215 |
|
$ |
1,074,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2010 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Charge-offs |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Recoveries |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Provision for loan losses before benefit attributable to FDIC loss share agreements |
|
|
16,706 |
|
|
1,318 |
|
|
— |
|
|
5,471 |
|
|
— |
|
|
4,564 |
|
|
3,561 |
|
|
— |
|
|
31,620 |
|
Benefit attributable to FDIC loss share agreements |
|
|
(15,871 |
) |
|
(1,252 |
) |
|
— |
|
|
(5,197 |
) |
|
— |
|
|
(4,336 |
) |
|
(3,383 |
) |
|
— |
|
|
(30,039 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total provision for loan losses charged to operations |
|
|
835 |
|
|
66 |
|
|
— |
|
|
274 |
|
|
— |
|
|
228 |
|
|
178 |
|
|
— |
|
|
1,581 |
|
Provision for loan losses recorded through the FDIC loss share receivable |
|
|
15,871 |
|
|
1,252 |
|
|
— |
|
|
5,197 |
|
|
— |
|
|
4,336 |
|
|
3,383 |
|
|
— |
|
|
30,039 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, December 31, 2011 |
|
$ |
16,706 |
|
$ |
1,318 |
|
$ |
— |
|
$ |
5,471 |
|
$ |
— |
|
$ |
4,564 |
|
$ |
3,561 |
|
$ |
— |
|
$ |
31,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans collectively evaluated for impairment |
|
$ |
16,706 |
|
$ |
1,318 |
|
$ |
— |
|
$ |
5,471 |
|
$ |
— |
|
$ |
4,564 |
|
$ |
3,561 |
|
$ |
— |
|
$ |
31,620 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans:* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans individually evaluated for impairment |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
Loans collectively evaluated for impairment |
|
|
60,829 |
|
|
108,327 |
|
|
51,005 |
|
|
128,650 |
|
|
10,019 |
|
|
39,311 |
|
|
4,060 |
|
|
— |
|
|
402,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total acquired loans |
|
$ |
60,829 |
|
$ |
108,327 |
|
$ |
51,005 |
|
$ |
128,650 |
|
$ |
10,019 |
|
$ |
39,311 |
|
$ |
4,060 |
|
$ |
— |
|
$ |
402,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- *
- —The carrying value of FASB ASC Topic 310-30 acquired loans includes a non-accretable difference which is primarily associated with the assessment of credit quality of acquired loans.
As part of the on-going monitoring of the credit quality of the Company's loan portfolio, management tracks certain credit quality indicators including trends related to (i) the level of classified loans, (ii) net charge-offs, (iii) non-performing loans (see details below) and (iv) the general economic conditions of the markets that we serve.
The Company utilizes a risk grading matrix to assign a risk grade to each of its loans. A description of the general characteristics of the risk grades is as follows:
-
- •
- Pass—These loans range from minimal credit risk to average however still acceptable credit risk.
- •
- Special mention—A special mention loan has potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or the institution's credit position at some future date.
- •
- Substandard—A substandard loan is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness, or weaknesses, that may jeopardize the liquidation of the debt. A substandard loan is characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
-
- •
- Doubtful—A doubtful loan has all of the weaknesses inherent in one classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of the currently existing facts, conditions and values, highly questionable and improbable.
The following table presents the credit risk profile by risk grade of commercial loans for non-acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction &
Development |
|
Commercial Non-owner
Occupied |
|
Commercial Owner
Occupied |
|
(Dollars in thousands)
|
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
Pass |
|
$ |
215,793 |
|
$ |
232,131 |
|
$ |
232,714 |
|
$ |
231,954 |
|
$ |
716,578 |
|
$ |
656,914 |
|
Special mention |
|
|
31,670 |
|
|
33,254 |
|
|
38,473 |
|
|
43,733 |
|
|
31,800 |
|
|
38,511 |
|
Substandard |
|
|
25,957 |
|
|
45,460 |
|
|
18,884 |
|
|
24,011 |
|
|
35,774 |
|
|
47,465 |
|
Doubtful |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
273,420 |
|
$ |
310,845 |
|
$ |
290,071 |
|
$ |
299,698 |
|
$ |
784,152 |
|
$ |
742,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial &
Industrial |
|
Other Income
Producing Property |
|
Commercial Total |
|
|
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
Pass |
|
$ |
265,148 |
|
$ |
207,063 |
|
$ |
114,809 |
|
$ |
117,237 |
|
$ |
1,545,042 |
|
$ |
1,445,299 |
|
Special mention |
|
|
8,626 |
|
|
6,949 |
|
|
9,324 |
|
|
11,885 |
|
|
119,893 |
|
|
134,332 |
|
Substandard |
|
|
5,989 |
|
|
6,442 |
|
|
9,580 |
|
|
11,571 |
|
|
96,184 |
|
|
134,949 |
|
Doubtful |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
279,763 |
|
$ |
220,454 |
|
$ |
133,713 |
|
$ |
140,693 |
|
$ |
1,761,119 |
|
$ |
1,714,580 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table presents the credit risk profile by risk grade of consumer loans for non-acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer Owner
Occupied |
|
Home Equity |
|
Consumer |
|
(Dollars in thousands)
|
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
Pass |
|
$ |
388,822 |
|
$ |
342,307 |
|
$ |
241,184 |
|
$ |
247,929 |
|
$ |
85,517 |
|
$ |
84,189 |
|
Special mention |
|
|
24,515 |
|
|
25,298 |
|
|
7,837 |
|
|
10,018 |
|
|
897 |
|
|
682 |
|
Substandard |
|
|
21,166 |
|
|
23,924 |
|
|
6,239 |
|
|
7,039 |
|
|
519 |
|
|
471 |
|
Doubtful |
|
|
— |
|
|
— |
|
|
24 |
|
|
— |
|
|
1 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
434,503 |
|
$ |
391,529 |
|
$ |
255,284 |
|
$ |
264,986 |
|
$ |
86,934 |
|
$ |
85,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
Consumer Total |
|
|
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
Pass |
|
$ |
33,163 |
|
$ |
14,128 |
|
$ |
748,686 |
|
$ |
688,553 |
|
Special mention |
|
|
— |
|
|
— |
|
|
33,249 |
|
|
35,998 |
|
Substandard |
|
|
— |
|
|
— |
|
|
27,924 |
|
|
31,434 |
|
Doubtful |
|
|
— |
|
|
— |
|
|
25 |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
33,163 |
|
$ |
14,128 |
|
$ |
809,884 |
|
$ |
755,985 |
|
|
|
|
|
|
|
|
|
|
|
The following table presents the credit risk profile by risk grade of total non-acquired loans:
|
|
|
|
|
|
|
|
|
|
Total Non-acquired Loans |
|
(Dollars in thousands)
|
|
December 31,
2012 |
|
December 31,
2011 |
|
Pass |
|
$ |
2,293,728 |
|
$ |
2,133,852 |
|
Special mention |
|
|
153,142 |
|
|
170,330 |
|
Substandard |
|
|
124,108 |
|
|
166,383 |
|
Doubtful |
|
|
25 |
|
|
— |
|
|
|
|
|
|
|
|
|
$ |
2,571,003 |
|
$ |
2,470,565 |
|
|
|
|
|
|
|
At December 31, 2012, the aggregate amount of non-acquired substandard and doubtful loans totaled $124.1 million. When these loans are combined with non-acquired OREO of $19.1 million, our non-acquired classified assets (as defined by the state of South Carolina and the FDIC, our primary federal regulators) were $143.2 million. At December 31, 2011, the amounts were $166.4 million, $18.0 million, and $184.4 million, respectively.
The following table presents the credit risk profile by risk grade of covered acquired loans, net of the related discount (this table should be read in conjunction with the allowance for acquired loan losses table found on page F-44):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Loans
Greater Than or Equal to
$1 million—CBT |
|
Commercial Real Estate |
|
Commercial Real Estate—
Construction and
Development |
|
(Dollars in thousands)
|
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
Pass |
|
$ |
14,355 |
|
$ |
17,257 |
|
$ |
22,687 |
|
$ |
33,770 |
|
$ |
7,134 |
|
$ |
11,791 |
|
Special mention |
|
|
3,470 |
|
|
5,164 |
|
|
10,609 |
|
|
22,089 |
|
|
3,474 |
|
|
5,947 |
|
Substandard |
|
|
31,859 |
|
|
38,408 |
|
|
29,501 |
|
|
51,108 |
|
|
21,154 |
|
|
30,566 |
|
Doubtful |
|
|
— |
|
|
— |
|
|
165 |
|
|
498 |
|
|
813 |
|
|
2,649 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
49,684 |
|
$ |
60,829 |
|
$ |
62,962 |
|
$ |
107,465 |
|
$ |
32,575 |
|
$ |
50,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential Real Estate |
|
Consumer |
|
Commercial & Industrial |
|
|
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
Pass |
|
$ |
41,907 |
|
$ |
50,971 |
|
$ |
2,215 |
|
$ |
3,375 |
|
$ |
8,073 |
|
$ |
9,007 |
|
Special mention |
|
|
20,915 |
|
|
19,550 |
|
|
574 |
|
|
722 |
|
|
3,744 |
|
|
6,963 |
|
Substandard |
|
|
41,963 |
|
|
54,281 |
|
|
1,534 |
|
|
2,446 |
|
|
11,753 |
|
|
19,476 |
|
Doubtful |
|
|
26 |
|
|
2,851 |
|
|
1 |
|
|
490 |
|
|
30 |
|
|
1,056 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
104,811 |
|
$ |
127,653 |
|
$ |
4,324 |
|
$ |
7,033 |
|
$ |
23,600 |
|
$ |
36,502 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Single Pay |
|
|
|
December 31,
2012 |
|
December 31,
2011 |
|
Pass |
|
$ |
57 |
|
$ |
465 |
|
Special mention |
|
|
52 |
|
|
62 |
|
Substandard |
|
|
4,633 |
|
|
3,533 |
|
Doubtful |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
$ |
4,772 |
|
$ |
4,060 |
|
|
|
|
|
|
|
The following table presents the credit risk profile by risk grade of non-covered acquired loans, net of the related discount (this table should be read in conjunction with the allowance for acquired loan losses table found on page F-44):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
Commercial Real Estate—
Construction and
Development |
|
Residential Real Estate |
|
(Dollars in thousands)
|
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
Pass |
|
$ |
274,721 |
|
$ |
799 |
|
$ |
80,008 |
|
$ |
47 |
|
$ |
213,069 |
|
$ |
777 |
|
Special mention |
|
|
11,670 |
|
|
38 |
|
|
4,268 |
|
|
— |
|
|
17,324 |
|
|
— |
|
Substandard |
|
|
23,571 |
|
|
25 |
|
|
13,600 |
|
|
5 |
|
|
19,923 |
|
|
220 |
|
Doubtful |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
309,962 |
|
$ |
862 |
|
$ |
97,876 |
|
$ |
52 |
|
$ |
250,316 |
|
$ |
997 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer |
|
Commercial & Industrial |
|
FASB ASC Topic 310-20 Loans |
|
|
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
December 31,
2012 |
|
December 31,
2011 |
|
Pass |
|
$ |
10,712 |
|
$ |
2,394 |
|
$ |
45,973 |
|
$ |
2,201 |
|
$ |
71,174 |
|
$ |
— |
|
Special mention |
|
|
209 |
|
|
168 |
|
|
1,549 |
|
|
332 |
|
|
574 |
|
|
— |
|
Substandard |
|
|
440 |
|
|
424 |
|
|
1,762 |
|
|
276 |
|
|
1,467 |
|
|
— |
|
Doubtful |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
11,361 |
|
$ |
2,986 |
|
$ |
49,284 |
|
$ |
2,809 |
|
$ |
73,215 |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The risk grading of acquired loans is determined utilizing a loan's contractual balance, while the amount recorded in the financial statements and reflected above is the carrying value. In an FDIC-assisted acquisition, covered acquired loans are initially recorded at their fair value, including a credit discount due to the high concentration of substandard and doubtful loans. In addition to the credit discount and the allowance for loan losses on covered acquired loans, the Company's risk of loss is mitigated by the FDIC loss share arrangement.
An aging analysis of past due loans, segregated by class for non-acquired loans, was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
30 - 59 Days
Past Due |
|
60 - 89 Days
Past Due |
|
90+ Days
Past Due |
|
Total
Past Due |
|
Current |
|
Total Loans |
|
December 31, 2012: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
|
$ |
812 |
|
$ |
701 |
|
$ |
10,435 |
|
$ |
11,948 |
|
$ |
261,472 |
|
$ |
273,420 |
|
Commercial non-owner occupied |
|
|
1,013 |
|
|
572 |
|
|
3,605 |
|
|
5,190 |
|
|
284,881 |
|
|
290,071 |
|
Commercial owner occupied |
|
|
1,141 |
|
|
40 |
|
|
9,827 |
|
|
11,008 |
|
|
773,144 |
|
|
784,152 |
|
Consumer real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer owner occupied |
|
|
1,433 |
|
|
241 |
|
|
4,045 |
|
|
5,719 |
|
|
428,784 |
|
|
434,503 |
|
Home equity loans |
|
|
735 |
|
|
170 |
|
|
395 |
|
|
1,300 |
|
|
253,984 |
|
|
255,284 |
|
Commercial and industrial |
|
|
1,187 |
|
|
513 |
|
|
549 |
|
|
2,249 |
|
|
277,514 |
|
|
279,763 |
|
Other income producing property |
|
|
322 |
|
|
278 |
|
|
3,253 |
|
|
3,853 |
|
|
129,860 |
|
|
133,713 |
|
Consumer |
|
|
364 |
|
|
151 |
|
|
112 |
|
|
627 |
|
|
86,307 |
|
|
86,934 |
|
Other loans |
|
|
49 |
|
|
41 |
|
|
36 |
|
|
126 |
|
|
33,037 |
|
|
33,163 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
7,056 |
|
$ |
2,707 |
|
$ |
32,257 |
|
$ |
42,020 |
|
$ |
2,528,983 |
|
$ |
2,571,003 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
|
$ |
1,056 |
|
$ |
2,793 |
|
$ |
13,176 |
|
$ |
17,025 |
|
$ |
293,820 |
|
$ |
310,845 |
|
Commercial non-owner occupied |
|
|
998 |
|
|
539 |
|
|
10,088 |
|
|
11,625 |
|
|
288,073 |
|
|
299,698 |
|
Commercial owner occupied |
|
|
2,731 |
|
|
902 |
|
|
12,936 |
|
|
16,569 |
|
|
726,321 |
|
|
742,890 |
|
Consumer real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer owner occupied |
|
|
3,288 |
|
|
762 |
|
|
5,819 |
|
|
9,869 |
|
|
381,660 |
|
|
391,529 |
|
Home equity loans |
|
|
889 |
|
|
360 |
|
|
647 |
|
|
1,896 |
|
|
263,090 |
|
|
264,986 |
|
Commercial and industrial |
|
|
389 |
|
|
142 |
|
|
1,218 |
|
|
1,749 |
|
|
218,705 |
|
|
220,454 |
|
Other income producing property |
|
|
192 |
|
|
29 |
|
|
4,185 |
|
|
4,406 |
|
|
136,287 |
|
|
140,693 |
|
Consumer |
|
|
302 |
|
|
130 |
|
|
33 |
|
|
465 |
|
|
84,877 |
|
|
85,342 |
|
Other loans |
|
|
97 |
|
|
74 |
|
|
46 |
|
|
217 |
|
|
13,911 |
|
|
14,128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
9,942 |
|
$ |
5,731 |
|
$ |
48,148 |
|
$ |
63,821 |
|
$ |
2,406,744 |
|
$ |
2,470,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
An aging analysis of past due loans, segregated by class for acquired loans, was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
30 - 59 Days
Past Due |
|
60 - 89 Days
Past Due |
|
90+ Days
Past Due |
|
Total
Past Due |
|
Current |
|
Total Loans |
|
December 31, 2012: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans greater than or equal to $1 million—CBT |
|
$ |
922 |
|
$ |
993 |
|
$ |
22,471 |
|
$ |
24,386 |
|
$ |
25,298 |
|
$ |
49,684 |
|
Commercial real estate |
|
|
3,154 |
|
|
1,536 |
|
|
12,162 |
|
|
16,852 |
|
|
46,110 |
|
|
62,962 |
|
Commercial real estate—construction and development |
|
|
1,381 |
|
|
220 |
|
|
11,615 |
|
|
13,216 |
|
|
19,359 |
|
|
32,575 |
|
Residential real estate |
|
|
2,502 |
|
|
2,636 |
|
|
12,328 |
|
|
17,466 |
|
|
87,345 |
|
|
104,811 |
|
Consumer |
|
|
67 |
|
|
19 |
|
|
687 |
|
|
773 |
|
|
3,551 |
|
|
4,324 |
|
Commercial and industrial |
|
|
739 |
|
|
190 |
|
|
4,870 |
|
|
5,799 |
|
|
17,801 |
|
|
23,600 |
|
Single pay |
|
|
1 |
|
|
3,256 |
|
|
62 |
|
|
3,319 |
|
|
1,453 |
|
|
4,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
8,766 |
|
|
8,850 |
|
|
64,195 |
|
|
81,811 |
|
|
200,917 |
|
|
282,728 |
|
Non-covered loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
2,712 |
|
|
770 |
|
|
5,326 |
|
|
8,808 |
|
|
301,154 |
|
|
309,962 |
|
Commercial real estate—construction and development |
|
|
1,595 |
|
|
1,353 |
|
|
7,103 |
|
|
10,051 |
|
|
87,825 |
|
|
97,876 |
|
Residential real estate |
|
|
5,109 |
|
|
2,193 |
|
|
5,987 |
|
|
13,289 |
|
|
237,027 |
|
|
250,316 |
|
Consumer |
|
|
114 |
|
|
57 |
|
|
49 |
|
|
220 |
|
|
11,141 |
|
|
11,361 |
|
Commercial and industrial |
|
|
529 |
|
|
97 |
|
|
277 |
|
|
903 |
|
|
48,381 |
|
|
49,284 |
|
FASB ASC Topic 310-20 loans |
|
|
388 |
|
|
111 |
|
|
148 |
|
|
647 |
|
|
72,568 |
|
|
73,215 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
10,447 |
|
|
4,581 |
|
|
18,890 |
|
|
33,918 |
|
|
758,096 |
|
|
792,014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
19,213 |
|
$ |
13,431 |
|
$ |
83,085 |
|
$ |
115,729 |
|
$ |
959,013 |
|
$ |
1,074,742 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Covered loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial loans greater than or equal to $1 million—CBT |
|
$ |
— |
|
$ |
990 |
|
$ |
27,582 |
|
$ |
28,572 |
|
$ |
32,257 |
|
$ |
60,829 |
|
Commercial real estate |
|
|
3,720 |
|
|
2,422 |
|
|
21,361 |
|
|
27,503 |
|
|
79,962 |
|
|
107,465 |
|
Commercial real estate—construction and development |
|
|
2,907 |
|
|
1,121 |
|
|
20,704 |
|
|
24,732 |
|
|
26,221 |
|
|
50,953 |
|
Residential real estate |
|
|
3,214 |
|
|
2,225 |
|
|
14,243 |
|
|
19,682 |
|
|
107,971 |
|
|
127,653 |
|
Consumer |
|
|
183 |
|
|
125 |
|
|
1,151 |
|
|
1,459 |
|
|
5,574 |
|
|
7,033 |
|
Commercial and industrial |
|
|
1,360 |
|
|
473 |
|
|
9,422 |
|
|
11,255 |
|
|
25,247 |
|
|
36,502 |
|
Single pay |
|
|
79 |
|
|
5 |
|
|
2,866 |
|
|
2,950 |
|
|
1,110 |
|
|
4,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
11,463 |
|
|
7,361 |
|
|
97,329 |
|
|
116,153 |
|
|
278,342 |
|
|
394,495 |
|
Non-covered loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
862 |
|
|
862 |
|
Commercial real estate—construction and development |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
52 |
|
|
52 |
|
Residential real estate |
|
|
50 |
|
|
— |
|
|
— |
|
|
50 |
|
|
947 |
|
|
997 |
|
Consumer |
|
|
79 |
|
|
39 |
|
|
129 |
|
|
247 |
|
|
2,739 |
|
|
2,986 |
|
Commercial and industrial |
|
|
50 |
|
|
39 |
|
|
115 |
|
|
204 |
|
|
2,605 |
|
|
2,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
179 |
|
|
78 |
|
|
244 |
|
|
501 |
|
|
7,205 |
|
|
7,706 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
11,642 |
|
$ |
7,439 |
|
$ |
97,573 |
|
$ |
116,654 |
|
$ |
285,547 |
|
$ |
402,201 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following is a summary of information pertaining to impaired non-acquired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in thousands)
|
|
Unpaid
Contractual
Principal
Balance |
|
Recorded
Investment
With No
Allowance |
|
Gross
Recorded
Investment
With
Allowance |
|
Total
Recorded
Investment |
|
Related
Allowance |
|
December 31, 2012: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
|
$ |
21,350 |
|
$ |
8,659 |
|
$ |
4,890 |
|
$ |
13,549 |
|
$ |
1,573 |
|
Commercial non-owner occupied |
|
|
7,564 |
|
|
3,148 |
|
|
2,196 |
|
|
5,344 |
|
|
411 |
|
Commercial owner occupied |
|
|
23,566 |
|
|
15,698 |
|
|
4,514 |
|
|
20,212 |
|
|
648 |
|
Consumer real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer owner occupied |
|
|
2,040 |
|
|
— |
|
|
1,954 |
|
|
1,954 |
|
|
213 |
|
Home equity loans |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Commercial and industrial |
|
|
2,595 |
|
|
464 |
|
|
1,319 |
|
|
1,783 |
|
|
1,030 |
|
Other income producing property |
|
|
4,656 |
|
|
1,382 |
|
|
3,011 |
|
|
4,393 |
|
|
1,004 |
|
Consumer |
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
— |
|
Other loans |
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans |
|
$ |
61,771 |
|
$ |
29,351 |
|
$ |
17,884 |
|
$ |
47,235 |
|
$ |
4,879 |
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
|
$ |
34,076 |
|
$ |
19,521 |
|
$ |
5,228 |
|
$ |
24,749 |
|
$ |
1,646 |
|
Commercial non-owner occupied |
|
|
14,269 |
|
|
9,704 |
|
|
2,336 |
|
|
12,040 |
|
|
706 |
|
Commercial owner occupied |
|
|
21,072 |
|
|
10,692 |
|
|
7,025 |
|
|
17,717 |
|
|
1,510 |
|
Consumer real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer owner occupied |
|
|
2,815 |
|
|
607 |
|
|
1,987 |
|
|
2,594 |
|
|
262 |
|
Home equity loans |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Commercial and industrial |
|
|
1,788 |
|
|
1,576 |
|
|
— |
|
|
1,576 |
|
|
— |
|
Other income producing property |
|
|
4,393 |
|
|
2,132 |
|
|
1,243 |
|
|
3,375 |
|
|
289 |
|
Consumer |
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
— |
|
Other loans |
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
Total impaired loans |
|
$ |
78,413 |
|
$ |
44,232 |
|
$ |
17,819 |
|
$ |
62,051 |
|
$ |
4,413 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquired loans are accounted for in pools as shown on page F-36 rather than being individually evaluated for impairment; therefore, the table above only pertains to non-acquired loans.
The following summarizes the average investment in non-acquired impaired loans and interest income recognized on impaired loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
|
2012 |
|
2011 |
|
(Dollars in thousands)
|
|
Average
Investment in
Impaired Loans |
|
Interest Income
Recognized |
|
Average
Investment in
Impaired Loans |
|
Interest Income
Recognized |
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
|
$ |
18,048 |
|
$ |
114 |
|
$ |
22,365 |
|
$ |
429 |
|
Commercial non-owner occupied |
|
|
7,503 |
|
|
85 |
|
|
11,522 |
|
|
138 |
|
Commercial owner occupied |
|
|
17,460 |
|
|
347 |
|
|
12,664 |
|
|
484 |
|
Consumer real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer owner occupied |
|
|
2,223 |
|
|
65 |
|
|
2,180 |
|
|
40 |
|
Home equity loans |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Commercial and industrial |
|
|
921 |
|
|
23 |
|
|
1,215 |
|
|
104 |
|
Other income producing property |
|
|
3,171 |
|
|
117 |
|
|
1,679 |
|
|
105 |
|
Consumer |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Other loans |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
Total Impaired Loans |
|
$ |
49,326 |
|
$ |
751 |
|
$ |
51,625 |
|
$ |
1,300 |
|
|
|
|
|
|
|
|
|
|
|
The following is a summary of information pertaining to non-acquired nonaccrual loans by class, including restructured loans:
|
|
|
|
|
|
|
|
|
|
December 31, |
|
(Dollars in thousands)
|
|
2012 |
|
2011 |
|
Commercial non-owner occupied real estate: |
|
|
|
|
|
|
|
Construction and land development |
|
$ |
11,961 |
|
$ |
21,347 |
|
Commercial non-owner occupied |
|
|
4,780 |
|
|
10,931 |
|
|
|
|
|
|
|
Total commercial non-owner occupied real estate |
|
|
16,741 |
|
|
32,278 |
|
Consumer real estate: |
|
|
|
|
|
|
|
Consumer owner occupied |
|
|
8,025 |
|
|
8,017 |
|
Home equity loans |
|
|
1,835 |
|
|
1,005 |
|
|
|
|
|
|
|
Total consumer real estate |
|
|
9,860 |
|
|
9,022 |
|
Commercial owner occupied real estate |
|
|
14,146 |
|
|
15,405 |
|
Commercial and industrial |
|
|
2,152 |
|
|
1,913 |
|
Other income producing property |
|
|
5,405 |
|
|
5,329 |
|
Consumer |
|
|
83 |
|
|
223 |
|
Other loans |
|
|
— |
|
|
— |
|
Restructured loans |
|
|
13,151 |
|
|
11,807 |
|
|
|
|
|
|
|
Total loans on nonaccrual status |
|
$ |
61,538 |
|
$ |
75,977 |
|
|
|
|
|
|
|
In the course of resolving delinquent loans, the Bank may choose to restructure the contractual terms of certain loans. Any loans that are modified are reviewed by the Bank to determine if a troubled debt restructuring ("TDR" or "restructured loan") has occurred. A TDR is a modification in which the Bank grants a concession to a borrower that it would not otherwise consider due to economic or legal reasons related to a borrower's financial difficulties. The concessions granted on TDRs generally include terms to reduce the interest rate, extend the term of the debt obligation, or modify the payment structure on the debt obligation.
The Bank designates loan modifications as TDRs when it grants a concession to the borrower that it would not otherwise consider due to the borrower experiencing financial difficulty (FASB ASC Topic 310-40). Loans on nonaccrual status at the date of modification are initially classified as nonaccrual TDRs. Loans on accruing status at the date of concession are initially classified as accruing TDRs if the note is reasonably assured of repayment and performance is expected in accordance with its modified terms. Such loans may be designated as nonaccrual loans subsequent to the concession date if reasonable doubt exists as to the collection of interest or principal under the restructuring agreement. Nonaccrual TDRs are returned to accruing status when there is economic substance to the restructuring, there is documented credit evaluation of the borrower's financial condition, the remaining balance is reasonably assured of repayment in accordance with its modified terms, and the borrower has demonstrated sustained repayment performance in accordance with the modified terms for a reasonable period of time (generally a minimum of six months).
The following table presents non-acquired loans designated as TDRs segregated by class and type of concession that was granted during the years ended December 31, 2012 and 2011:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Years Ended December 31, |
|
|
|
2012 |
|
2011 |
|
(Dollars in thousands)
|
|
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 |
|
Interest rate modification |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
|
|
1 |
|
$ |
165 |
|
$ |
156 |
|
|
15 |
|
$ |
3,595 |
|
$ |
3,194 |
|
Commercial owner occupied |
|
|
4 |
|
|
5,355 |
|
|
5,215 |
|
|
2 |
|
|
1,334 |
|
|
1,286 |
|
Consumer owner occupied |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
759 |
|
|
737 |
|
Commercial and industrial |
|
|
1 |
|
|
474 |
|
|
464 |
|
|
— |
|
|
— |
|
|
— |
|
Other income producing property |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
409 |
|
|
404 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total interest rate modifications |
|
|
6 |
|
$ |
5,994 |
|
$ |
5,835 |
|
|
21 |
|
$ |
6,097 |
|
$ |
5,621 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Term modification |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Construction and land development |
|
|
2 |
|
|
835 |
|
|
824 |
|
|
2 |
|
|
2,938 |
|
|
2,929 |
|
Commercial non-owner occupied |
|
|
1 |
|
|
700 |
|
|
700 |
|
|
— |
|
|
— |
|
|
— |
|
Commercial owner occupied |
|
|
— |
|
|
— |
|
|
— |
|
|
2 |
|
|
928 |
|
|
864 |
|
Consumer owner occupied |
|
|
— |
|
|
— |
|
|
— |
|
|
1 |
|
|
605 |
|
|
591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total term modifications |
|
|
3 |
|
$ |
1,535 |
|
$ |
1,524 |
|
|
5 |
|
$ |
4,471 |
|
$ |
4,384 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Forgiveness of principal |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial non-owner occupied |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Commercial owner occupied |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total forgiveness of principal |
|
|
— |
|
$ |
— |
|
$ |
— |
|
|
— |
|
$ |
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total restructured loans |
|
|
9 |
|
$ |
7,529 |
|
$ |
7,359 |
|
|
26 |
|
$ |
10,568 |
|
$ |
10,005 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At December 31, 2012 and 2011, the balance of accruing TDRs was $6.3 million and $5.8 million, respectively.
For the years ended December 31, 2012 and 2011, there had been no modifications of acquired loans which the Bank designated as TDRs.
The following table presents the changes in status of non-acquired loans restructured within the previous 12 months by type of concession:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Paying Under
Restructured Terms |
|
Converted to
Non-accrual |
|
Foreclosure/Default |
|
(Dollars in thousands)
|
|
Number of
loans |
|
Recorded
Investment |
|
Number of
loans |
|
Recorded
Investment |
|
Number of
loans |
|
Recorded
Investment |
|
Year ended December 31, 2012: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate modification |
|
|
6 |
|
$ |
5,836 |
|
|
— |
|
$ |
— |
|
|
— |
|
$ |
— |
|
Term modification |
|
|
3 |
|
|
1,524 |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
Forgiveness of principal |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
9 |
|
$ |
7,360 |
|
|
— |
|
$ |
— |
|
|
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended December 31, 2011: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate modification |
|
|
21 |
|
$ |
5,621 |
|
|
— |
|
$ |
— |
|
|
— |
|
$ |
— |
|
Term modification |
|
|
4 |
|
|
4,090 |
|
|
1 |
|
|
294 |
|
|
— |
|
|
— |
|
Forgiveness of principal |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25 |
|
$ |
9,711 |
|
|
1 |
|
$ |
294 |
|
|
— |
|
$ |
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The amount of specific reserve associated with non-acquired restructured loans was $1.1 million at December 31, 2012, none of which were related to the restructured loans that had subsequently defaulted. The Company had $161,000 in remaining availability under commitments to lend additional funds on these restructured loans at December 31, 2012.
There were no loans modified as troubled debt restructurings within the previous 12 months for which there was a subsequent payment default during the year ended December 31, 2012.
|