Loans (Tables)

6 Months Ended

Jun. 30, 2012

Schedule of Loans and Financing Receivable

During February 2012, we purchased $61.9 million of performing residential mortgage loans, including a premium of $2.3 million, and during April 2012 we purchased an additional $75.5 million of performing residential mortgage loans, including a premium of $1.4 million. These loan purchases are accounted for as PC loans.

The following is a summary of Granite Purchased Loans and total loans for the periods as presented.



(dollars in thousands)	June 30, 2012								December 31, 2011
	Granite Purchased Loans			Total Loans					Granite Purchased Loans		Total Loans
Loans held for sale	$	—		$	1,324		$	—	$	—	$	4,529
Loans held for investment:
Commercial and agricultural	$	26,560		$	78,367				$	36,933	$	95,089
Real estate - construction	5,671			75,576					7,641		92,806
Real estate - mortgage:
1-4 family residential	76,523			589,972					87,484		453,725
Commercial	213,750			493,721					239,621		531,383
Consumer	1,244			44,187					1,809		44,532
Gross loans held for investment	323,748			1,281,823					373,488		1,217,535
Less: Allowance for loan losses	(3,336		)	(38,551		)			—		(39,360		)
Loans held for investment, net of allowance	$	320,412		$	1,243,272				$	373,488	$	1,178,175

Schedule of Nonperforming Assets

The following is a summary of nonperforming assets for the periods ended as presented.



(dollars in thousands)	June 30, 2012		December 31, 2011
Loans on nonaccrual status:
Held for sale	$	—	$	4,529
Held for investment	95,110		98,444
Loans more than 90 days delinquent, still on accrual	427		3,000
Real estate owned/repossessed assets	86,400		110,386
Total nonperforming assets	$	181,937	$	216,359

Schedule of Impaired Loans Receivables

The following table summarizes information relative to impaired loans for the quarters ended on the dates indicated.



	June 30, 2012				December 31, 2011
(dollars in thousands)	Balance		Associated Reserves		Balance		Associated Reserves
Impaired loans, held for sale	$	—	$	—	$	4,529	$	—
Impaired loans, not individually reviewed for impairment	6,750		—		5,127		—
Impaired loans, individually reviewed, with no impairment	55,160		—		53,884		—
Impaired loans, individually reviewed, with impairment	40,778		8,724		42,357		11,090
Total impaired loans, excluding purchased impaired *	$	102,688	$	8,724	$	105,897	$	11,090

Purchased impaired loans with subsequent deterioration	$	36,659	3,336		$	—	—
Purchased impaired loans with no subsequent deterioration	$	250,433	—		$	330,836	—
Total Reserves			$	12,060			$	11,090

Average impaired loans calculated using a simple average	$	107,263			$	112,600

* Included at June 30, 2012 and December 31, 2011 were $3.9 million and $2.9 million, respectively, in restructured and performing loans.

Schedule of Loans Receivable, Sold Loans

The following table presents sold loans by portfolio segment for the periods indicated below:



	For Three Months Ended June 30, 2012					For Three Months Ended June 30, 2011
(dollars in thousands)	Number	Recorded		Contract		Number	Recorded		Contract
	of Loans	Investment		Pricing		of Loans	Investment		Pricing
Commercial and agricultural	—	$	—	$	—	—	$	—	$	—
Real estate - construction	—	—		—		—	—		—
Real estate - mortgage:
1-4 family residential	6	1,715		1,746		—	—		—
Commercial	—	—		—		—	—		—
Consumer	—	—		—		—	—		—
Total	6	$	1,715	$	1,746	—	$	—	$	—



	For Six Months Ended June 30, 2012					For Six Months Ended June 30, 2011
(dollars in thousands)	Number	Recorded		Contract		Number		Recorded			Contract
	of Loans	Investment		Pricing		of Loans		Investment			Pricing
Commercial and agricultural	—	$	—	$	—	—		$	—		$	—
Real estate - construction	—	—		—		4		13,342			5,813
Real estate - mortgage:
1-4 family residential	7	1,865		1,896		—		—		—	—
Commercial	1	3,800		4,050		1	—	321		—	350
Consumer	—	—		—		—	—	—		—	—
Total	8	$	5,665	$	5,946	5		$	13,663		$	6,163

Schedule of Loans Recievable, Acquired Loans

The following table presents the balance of all Granite Purchased Loans:



	At June 30, 2012
(dollars in thousands)	Purchased Impaired		Purchased Contractual		Total Purchased Loans		Unpaid Principal Balance
Commercial and agricultural	$	20,277	$	6,283	$	26,560	$	26,793
Real estate - construction	5,671		—		5,671		6,101
Real estate - mortgage:
1-4 family residential	46,150		30,373		76,523		79,980
Commercial	213,750		—		213,750		224,208
Consumer	1,244		—		1,244		1,434
Total	$	287,092	$	36,656	$	323,748	$	338,516



	At December 31, 2011
(dollars in thousands)	Purchased Impaired		Purchased Contractual		Total Purchased Loans		Unpaid Principal Balance
Commercial and agricultural	$	28,872	$	8,061	$	36,933	$	39,531
Real estate - construction	7,641		—		7,641		8,413
Real estate - mortgage:
1-4 family residential	52,894		34,590		87,484		93,310
Commercial	239,621		—		239,621		261,076
Consumer	1,808		1		1,809		1,800
Total	$	330,836	$	42,652	$	373,488	$	404,130

Deteriorated Loans Acquired, Accretable Yield Movement Schedule

The tables below include only those Granite Purchased Loans accounted for under the expected cash flow method (PI Loans) for the periods indicated. These tables do not include PC Loans, including Granite Purchased PC Loans or purchased performing residential mortgage loans.



	For Six Months Ended June 30, 2012						For Six Months Ended December 31, 2011
	Purchased Impaired						Purchased Impaired
(dollars in thousands)	Carrying Amount			Future Accretion			Carrying Amount			Future Accretion
Balance, beginning of period	$	330,836		$	47,804		$	—		$	—
Addition from Bank of Granite Corp acquisition	—			—			351,121			52,581
Accretion	11,263			(11,263		)	4,777			(4,777		)
Reclass from non-accretable	—			4,592			—			—
Payments received	(50,901		)	—			(24,467		)	—
Foreclosed and transferred to OREO	(4,106		)	—			(595		)	—
Subtotal before provision	287,092			41,133			330,836			47,804
Provision for credit losses	(3,336		)	—			—			—
Balance, end of period	$	283,756		$	41,133		$	330,836		$	47,804