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Loans (Tables)
 9 Months Ended
Sep. 30, 2012
Loans Receivable, Net [Abstract]  
Loan Credit Quality Indicators
The following table presents loans held for investment balances by risk grade as of September 30, 2012:
(dollars in thousands)
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
 
 
 
(Ratings 1-5)
 
(Rating 6)
 
(Rating 7)
 
(Rating 8)
 
Total
Commercial and agricultural
 
$
60,547

 
$
3,964

 
$
8,154

 
$
4

 
$
72,669

Real estate - construction
 
38,622

 
1,944

 
20,697

 
—

 
61,263

Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
1-4 family residential
 
534,269

 
17,873

 
37,844

 
265

 
590,251

Commercial
 
302,943

 
57,647

 
102,439

 
144

 
463,173

Consumer
 
43,612

 
188

 
374

 
265

 
44,439

Total
 
$
979,993

 
$
81,616

 
$
169,508

 
$
678

 
$
1,231,795


The following table presents loans held for investment balances by risk grade as of December 31, 2011:
(dollars in thousands)
 
Pass
 
Special Mention
 
Substandard
 
Doubtful
 
 
 
 
(Ratings 1-5)
 
(Rating 6)
 
(Rating 7)
 
(Rating 8)
 
Total
Commercial and agricultural
 
$
77,305

 
$
7,373

 
$
9,921

 
$
490

 
$
95,089

Real estate - construction
 
53,105

 
5,797

 
33,886

 
18

 
92,806

Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
1-4 family residential
 
385,022

 
25,864

 
42,630

 
209

 
453,725

Commercial
 
351,731

 
91,364

 
87,971

 
317

 
531,383

Consumer
 
43,487

 
279

 
387

 
379

 
44,532

Total
 
$
910,650

 
$
130,677

 
$
174,795

 
$
1,413

 
$
1,217,535
Past Due Loans
The following table presents an aging analysis of accruing and nonaccruing loans as of September 30, 2012:
 
 
Past Due
 
 
 
 
 
 
 
 
 
 
(dollars in thousands)
 
 
 
 
 

 
 
 
 
 
PI Loans
 
 
 
90 or more
 
 
30-59 Days
 
60-89 Days
 
90 or More Days
 
Total
 
Current
 
No credit deterior- ation
 
Credit deterior-ation
 
Total Loans
 
days past due and Accruing
Commercial and agricultural
 
$
927

 
$
832

 
$
2,511

 
$
4,270

 
$
51,718

 
$
1,021

 
$
15,660

 
$
72,669

 
$
671

Real estate - construction
 
605

 
1,503

 
15,842

 
17,950

 
40,549

 
543

 
2,221

 
61,263

 
—

Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1-4 family residential
 
972

 
2,772

 
13,942

 
17,686

 
530,027

 
39,943

 
2,595

 
590,251

 
58

Commercial
 
3,221

 
1,872

 
31,316

 
36,409

 
237,940

 
177,533

 
11,291

 
463,173

 
339

Consumer
 
174

 
13

 
113

 
300

 
42,741

 
1,364

 
34

 
44,439

 
3

Total
 
$
5,899

 
$
6,992

 
$
63,724

 
$
76,615

 
$
902,975

 
$
220,404

 
$
31,801

 
$
1,231,795

 
$
1,071

The following table presents an aging analysis of accruing and nonaccruing loans as of December 31, 2011:
 
 
Past Due
 
 
 
 
(dollars in thousands)
 
 
 
 
 

 
 
 
 
 
PI Loans
 
 
 
90 or more
 
 
30-59 Days
 
60-89 Days
 
90 or More Days
 
Total
 
Current
 
No credit deterior- ation
 
Credit deterior-ation
 
Total Loans
 
days past due and Accruing
Commercial and agricultural
 
$
335

 
$
425

 
$
2,755

 
$
3,515

 
$
62,702

 
$
28,872

 
$
—

 
$
95,089

 
$
305

Real estate - construction
 
1,850

 
2,206

 
21,438

 
25,494

 
59,671

 
7,641

 
—

 
92,806

 
1,400

Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1-4 family residential
 
4,544

 
2,253

 
14,125

 
20,922

 
379,909

 
52,894

 
—

 
453,725

 
292

Commercial
 
2,926

 
6,645

 
16,330

 
25,901

 
265,861

 
239,621

 
—

 
531,383

 
1,003

Consumer
 
740

 
278

 
63

 
1,081

 
41,643

 
1,808

 
—

 
44,532

 
—

Total
 
$
10,395

 
$
11,807

 
$
54,711

 
$
76,913

 
$
809,786

 
$
330,836

 
$
—

 
$
1,217,535

 
$
3,000
Schedule of Impaired Loans Receivables
The following table summarizes information relative to impaired loans for the quarters ended on the dates indicated:
 
 
September 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
 
7,274

—

 
5,127

—

Impaired loans, individually reviewed, with no impairment
 
72,402

—

 
53,884

—

Impaired loans, individually reviewed, with impairment
 
14,769

4,522

 
42,357

11,090

Total impaired loans, excluding purchased impaired *
 
$
94,445

$
4,522

 
$
105,897

$
11,090

 
 
 
 
 
 
 
Purchased impaired loans with subsequent deterioration
 
$
31,801

3,296

 
$
—

—

Purchased impaired loans with no subsequent deterioration
 
$
220,404

—

 
$
330,836

—

Total Reserves
 
 
$
7,818

 
 
$
11,090

 
 
 
 
 
 
 
Average impaired loans calculated using a simple average
 
$
98,567

 
 
$
112,600

 
* Included at September 30, 2012 and December 31, 2011 were $3.6 million and $2.9 million, respectively, in restructured and performing loans.
Schedule of Loans, Non Accrual Status
The following table presents loans held for investment on nonaccrual status by loan class for the dates indicated below:
(dollars in thousands)
 
September 30,
 
December 31,
 
 
2012
 
2011
Loans held for investment:
 
 
 
 
Commercial and agricultural
 
$
2,476

 
$
4,636

Real estate - construction
 
18,506

 
30,844

Real estate - mortgage:
 
 
 
 
1-4 family residential
 
22,073

 
26,048

Commercial
 
41,794

 
36,666

Consumer
 
223

 
250

Total nonaccrual loans
 
$
85,072

 
$
98,444

Loans more than 90 days delinquent, still on accrual
 
$
1,071

 
$
3,000

Total nonperforming loans
 
$
86,143

 
$
101,444

The following table presents loans held for sale on nonaccrual status by loan class for the dates indicated below:
(dollars in thousands)
 
September 30,
 
December 31,
 
 
2012
 
2011
Loans held for sale:
 
 
 
 
Real estate - construction
 
$
—

 
$
1,807

Real estate - mortgage:
 
 
 
 
1-4 family residential
 
—

 
517

Commercial
 
—

 
2,205

Consumer
 
—

 
—

Total
 
$
—

 
$
4,529
Impaired Loans
The following table presents individually reviewed impaired loans and purchased impaired loans with subsequent credit deterioration, segregated by portfolio segment, and the corresponding reserve for impaired loan losses as of September 30, 2012:
 
 
 
 
Unpaid
 
 
(dollars in thousands)
 
Recorded
 
Principal
 
Related
 
 
Investment
 
Balance
 
Allowance
With no related allowance recorded:
 
 
 
 
 
 
  Commercial and agricultural
 
$
1,295

 
$
2,017

 
$
—

  Real estate - construction
 
14,887

 
20,816

 
—

  Real estate - mortgage:
 
 
 
 
 
 
1-4 family residential
 
13,923

 
16,640

 
—

Commercial
 
42,297

 
50,861

 
—

  Consumer
 
—

 
234

 
—

Total
 
$
72,402

 
$
90,568

 
$
—

With an allowance recorded:
 
 
 
 
 
 
  Commercial and agricultural
 
$
1,272

 
$
1,280

 
$
815

  Real estate - construction
 
2,623

 
2,914

 
1,158

  Real estate - mortgage:
 
 
 
 
 
 
1-4 family residential
 
6,091

 
7,272

 
1,797

Commercial
 
4,683

 
4,758

 
652

  Consumer
 
100

 
100

 
100

Total
 
$
14,769

 
$
16,324

 
$
4,522

Total individually evaluated impaired loans
 
 
 
 
 
 
  Commercial and agricultural
 
$
2,567

 
$
3,297

 
$
815

  Real estate - construction
 
17,510

 
23,730

 
1,158

  Real estate - mortgage:
 
 
 
 
 
 
1-4 family residential
 
20,014

 
23,912

 
1,797

Commercial
 
46,980

 
55,619

 
652

  Consumer
 
100

 
334

 
100

Total
 
$
87,171

 
$
106,892

 
$
4,522

 
 
 
 
 
 
 
PI loans with subsequent credit deterioration:
 
 
 
 
 
 
  Commercial and agricultural
 
$
15,660

 
$
15,685

 
$
1,774

  Real estate - construction
 
2,221

 
2,195

 
135

  Real estate - mortgage:
 
 
 
 
 
 
     1-4 family residential
 
2,595

 
2,879

 
604

     Commercial
 
11,291

 
11,829

 
749

  Consumer
 
34

 
44

 
34

Total
 
$
31,801

 
$
32,632

 
$
3,296

The following table presents individually reviewed impaired loans, segregated by portfolio segment, and the corresponding reserve for impaired loan losses as of December 31, 2011:
 
 
 
 
Unpaid
 
 
(dollars in thousands)
 
Recorded
 
Principal
 
Related
 
 
Investment
 
Balance
 
Allowance
With no related allowance recorded:
 
 
 
 
 
 
  Commercial and agricultural
 
$
2,354

 
$
4,346

 
$
—

  Real estate - construction
 
16,351

 
25,714

 
—

  Real estate - mortgage:
 
 
 
 
 
 
1-4 family residential
 
13,003

 
19,657

 
—

Commercial
 
22,176

 
26,964

 
—

  Consumer
 
—

 
102

 
—

Total
 
$
53,884

 
$
76,783

 
$
—

With an allowance recorded:
 
 
 
 
 
 
  Commercial and agricultural
 
$
1,536

 
$
2,047

 
$
1,506

  Real estate - construction
 
14,109

 
14,718

 
4,899

  Real estate - mortgage:
 
 
 
 
 
 
1-4 family residential
 
11,883

 
12,328

 
2,140

Commercial
 
14,659

 
14,943

 
2,415

  Consumer
 
170

 
172

 
130

Total
 
$
42,357

 
$
44,208

 
$
11,090

Total individually evaluated impaired loans
 
 
 
 
 
 
  Commercial and agricultural
 
$
3,890

 
$
6,393

 
$
1,506

  Real estate - construction
 
30,460

 
40,432

 
4,899

  Real estate - mortgage:
 
 
 
 
 
 
1-4 family residential
 
24,886

 
31,985

 
2,140

Commercial
 
36,835

 
41,907

 
2,415

  Consumer
 
170

 
274

 
130

Total
 
$
96,241

 
$
120,991

 
$
11,090
Impaired Loans, Average Recorded Investment and Interest Income
The following summary includes impaired loans individually reviewed as well as impaired loans held for sale. Average recorded investment and interest income recognized on impaired loans, segregated by portfolio segment, is shown in the following table as of September 30, 2012 and September 30, 2011:
 
 
For Three Months Ended
 
For Three Months Ended
 
 
September 30, 2012
 
September 30, 2011
 
 
Average
 
Interest
 
Average
 
Interest
(dollars in thousands)
 
Recorded
 
Income
 
Recorded
 
Income
 
 
Investment
 
Recognized
 
Investment
 
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
  Commercial and agricultural
 
$
1,557

 
$
56

 
$
2,417

 
$
—

  Real estate - construction
 
15,484

 
104

 
29,789

 
—

  Real estate - mortgage:
 
 
 
 
 
 
 
 
1-4 family residential
 
14,265

 
81

 
13,585

 
—

Commercial
 
44,480

 
567

 
29,453

 
—

  Consumer
 
162

 
4

 
98

 
—

Total
 
$
75,948

 
$
812

 
$
75,342

 
$
—

With an allowance recorded:
 
 
 
 
 
 
 
 
  Commercial and agricultural
 
$
1,274

 
$
6

 
$
2,751

 
$
—

  Real estate - construction
 
2,802

 
9

 
47,884

 
—

  Real estate - mortgage:
 
 
 
 
 
 
 
 
1-4 family residential
 
6,436

 
41

 
16,268

 
—

Commercial
 
4,689

 
27

 
21,647

 
—

  Consumer
 
100

 
1

 
311

 
—

Total
 
$
15,301

 
$
84

 
$
88,861

 
$
—

Total:
 
 
 
 
 
 
 
 
  Commercial and agricultural
 
$
2,831

 
$
62

 
$
5,168

 
$
—

  Real estate - construction
 
18,286

 
113

 
77,673

 
—

  Real estate - mortgage:
 
 
 
 
 
 
 
 
1-4 family residential
 
20,701

 
122

 
29,853

 
—

Commercial
 
49,169

 
594

 
51,100

 
—

  Consumer
 
262

 
5

 
409

 
—

Total
 
$
91,249

 
$
896

 
$
164,203

 
$
—

 
 
For Nine Months Ended
 
For Nine Months Ended
 
 
September 30, 2012
 
September 30, 2011
 
 
Average
 
Interest
 
Average
 
Interest
(dollars in thousands)
 
Recorded
 
Income
 
Recorded
 
Income
 
 
Investment
 
Recognized
 
Investment
 
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
  Commercial and agricultural
 
$
1,879

 
$
152

 
$
3,305

 
$
—

  Real estate - construction
 
18,140

 
350

 
49,617

 
—

  Real estate - mortgage:
 
 
 
 
 
 
 
 
1-4 family residential
 
15,096

 
292

 
18,628

 
1

Commercial
 
46,051

 
1,388

 
49,736

 
1

  Consumer
 
279

 
6

 
196

 
—

Total
 
$
81,445

 
$
2,188

 
$
121,482

 
$
2

With an allowance recorded:
 
 
 
 
 
 
 
 
  Commercial and agricultural
 
$
1,266

 
$
36

 
$
5,803

 
$
—

  Real estate - construction
 
2,873

 
32

 
60,131

 
—

  Real estate - mortgage:
 
 
 
 
 
 
 
 
1-4 family residential
 
6,869

 
163

 
16,027

 
—

Commercial
 
4,687

 
145

 
42,990

 
1

  Consumer
 
95

 
2

 
231

 
—

Total
 
$
15,790

 
$
378

 
$
125,182

 
$
1

Total:
 
 
 
 
 
 
 
 
  Commercial and agricultural
 
$
3,145

 
$
188

 
$
9,108

 
$
—

  Real estate - construction
 
21,013

 
382

 
109,748

 
—

  Real estate - mortgage:
 
 
 
 
 
 
 
 
1-4 family residential
 
21,965

 
455

 
34,655

 
1

Commercial
 
50,738

 
1,533

 
92,726

 
2

  Consumer
 
374

 
8

 
427

 
—

Total
 
$
97,235

 
$
2,566

 
$
246,664

 
$
3
Schedule of Loans Receivable, Sold Loans
The following table presents sold loans by portfolio segment for the periods indicated below:
 
For Three Months Ended September 30, 2012
 
For Three Months Ended September 30, 2011
(dollars in thousands)
Number
 
Recorded
 
Contract
 
Number
 
Recorded
 
Contract
 
of Loans
 
Investment
 
Pricing
 
of Loans
 
Investment
 
Pricing
Commercial and agricultural
—

 
$
—

 
$
—

 
9

 
$
217

 
$
1,238

Real estate - construction
—

 
—

 
—

 
8

 
6,406

 
4,927

Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
1-4 family residential

 

 

 
—

 
—

 
—

Commercial
1

 
602

 
540

 
5

 
6,723

 
4,839

Consumer
—

 
—

 
—

 
1

 
96

 
190

Total
1

 
$
602

 
$
540

 
23

 
$
13,442

 
$
11,194

 
For Nine Months Ended September 30, 2012
 
For Nine Months Ended September 30, 2011
(dollars in thousands)
Number
 
Recorded
 
Contract
 
Number
 
Recorded
 
Contract
 
of Loans
 
Investment
 
Pricing
 
of Loans
 
Investment
 
Pricing
Commercial and agricultural
—

 
$
—

 
$
—

 
14

 
$
3,505

 
$
3,190

Real estate - construction
—

 
—

 
—

 
13

 
16,723

 
11,899

Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
1-4 family residential
7

 
1,865

 
1,896

 
1

 
1,335

 
900

Commercial
2

 
4,402

 
4,590

 
8

 
12,071

 
10,186

Consumer
—

 
—

 
—

 
1

 
96

 
190

Total
9

 
$
6,267

 
$
6,486

 
37

 
$
33,730

 
$
26,365
Schedule of Loans Recievable, Acquired Loans
The following table presents the balance of all Granite Purchased Loans:
 
 
At September 30, 2012
(dollars in thousands)
 
Purchased Impaired
 
Purchased Contractual
 
Total Purchased Loans
 
Unpaid
Principal
Balance
Commercial and agricultural
 
$
16,681

 
$
6,425

 
$
23,106

 
$
22,955

Real estate - construction
 
2,764

 
—

 
2,764

 
2,833

Real estate - mortgage:
 
 
 
 
 
 
 
 
   1-4 family residential
 
42,538

 
28,672

 
71,210

 
74,075

   Commercial
 
188,824

 
—

 
188,824

 
197,006

Consumer
 
1,398

 
—

 
1,398

 
1,284

       Total
 
$
252,205

 
$
35,097

 
$
287,302

 
$
298,153

 
 
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 Nine Months Ended September 30, 2012
 
For Nine 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
 
15,831

 
(15,831
)
 
4,777

 
(4,777
)
Increase in future accretion
 
—

 
4,592

 
—

 
—

  Payments received
 
(84,944
)
 
—

 
(24,467
)
 
—

  Foreclosed and transferred to OREO
 
(9,518
)
 
—

 
(595
)
 
—

Subtotal before allowance
 
252,205

 
36,565

 
330,836

 
47,804

Allowance for credit losses
 
(3,296
)
 
—

 
—

 
—

Net carrying amount, end of period
 
$
248,909

 
$
36,565

 
$
330,836

 
$
47,804
Allowance for Loan Losses
An analysis of the changes in the ALL is as follows:
 
 
For Three Months Ended
 
For Nine Months Ended
(dollars in thousands)
 
September 30,
 
September 30,
 
 
2012
 
2011
 
2012
 
2011
Balance, beginning of period
 
$
38,551

 
$
59,366

 
$
39,360

 
$
93,687

Provision for losses charged to continuing operations
 
32

 
7,181

 
10,877

 
60,944

Net charge-offs:
 
 
 
 
 
 
 
 
Charge-offs
 
(9,276
)
 
(24,376
)
 
(23,580
)
 
(115,948
)
Recoveries
 
1,552

 
1,950

 
4,202

 
5,438

Net charge-offs
 
(7,724
)
 
(22,426
)
 
(19,378
)
 
(110,510
)
Balance, end of period
 
$
30,859

 
$
44,121

 
$
30,859

 
$
44,121

Annualized net charge-offs during the period to average loans
 
2.46
%
 
9.07
%
 
2.06
%
 
13.09
%
Annualized net charge-offs during the period to ALL
 
100.12
%
 
201.66
%
 
83.73
%
 
334.88
%
Allowance for loan losses to loans held for investment (1)
 
2.51
%
 
4.95
%
 
2.51
%
 
4.95
%
(1) Excludes discontinued operations.
Allowance for Loan Losses by Portfolio Segment
The following table presents ALL activity by portfolio segment for the three months ended September 30, 2012:
 
 
 
 
 
 
Real Estate - Mortgage
 
 
 
 
(dollars in thousands)
 
Commercial and Agricultural
 
Real Estate - Construction
 
1-4 Family Residential
 
Commercial
 
Consumer
 
Total

 
 
 
 
 
 
 
 
 
 
 
 
ALL:
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance at July 1, 2012
 
$
7,151

 
$
11,320

 
$
8,784

 
$
9,218

 
$
2,078

 
$
38,551

Charge-offs
 
(1,156
)
 
(2,465
)
 
(1,646
)
 
(2,602
)
 
(1,407
)
 
(9,276
)
Recoveries
 
286

 
323

 
69

 
388

 
486

 
1,552

Provision
 
(1,128
)
 
(3,195
)
 
2,787

 
54

 
1,514

 
32

Ending balance at September 30, 2012
 
$
5,153

 
$
5,983

 
$
9,994

 
$
7,058

 
$
2,671

 
$
30,859

The following table presents ALL activity by portfolio segment for the three months ended September 30, 2011:
 
 
 
 
 
 
Real Estate - Mortgage
 
 
 
 
(dollars in thousands)
 
Commercial and Agricultural
 
Real Estate - Construction
 
1-4 Family Residential
 
Commercial
 
Consumer
 
Total
ALL:
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance at July 1, 2011
 
$
6,527

 
$
28,419

 
$
9,030

 
$
13,619

 
$
1,771

 
$
59,366

Charge-offs
 
(1,988
)
 
(13,740
)
 
(1,958
)
 
(5,848
)
 
(842
)
 
(24,376
)
Recoveries
 
226

 
1,217

 
59

 
96

 
352

 
1,950

Provision
 
204

 
4,606

 
(134
)
 
2,259

 
246

 
7,181

Ending balance at September 30, 2011
 
$
4,969

 
$
20,502

 
$
6,997

 
$
10,126

 
$
1,527

 
$
44,121


The following table presents ALL activity by portfolio segment for the nine months ended September 30, 2012:
 
 
 
 
 
 
Real Estate - Mortgage
 
 
 
 
(dollars in thousands)
 
Commercial and Agricultural
 
Real Estate - Construction
 
1-4 Family Residential
 
Commercial
 
Consumer
 
Total
ALL:
 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance at January 1, 2012
 
$
5,776

 
$
11,995

 
$
8,885

 
$
11,063

 
$
1,641

 
$
39,360

Charge-offs
 
(2,774
)
 
(8,761
)
 
(4,805
)
 
(3,594
)
 
(3,646
)
 
(23,580
)
Recoveries
 
777

 
1,169

 
447

 
725

 
1,084

 
4,202

Provision
 
1,374

 
1,580

 
5,467

 
(1,136
)
 
3,592

 
10,877

Ending balance at September 30, 2012
 
$
5,153

 
$
5,983

 
$
9,994

 
$
7,058

 
$
2,671

 
$
30,859

The following table presents ALL activity by portfolio segment for the nine months ended September 30, 2011:
 
 
 
 
 
 
Real Estate - Mortgage
 
 
 
 
(dollars in thousands)
 
Commercial and Agricultural
 
Real Estate - Construction
 
1-4 Family Residential
 
Commercial
 
Consumer
 
Total
ALL:
 
 
 
 
 
 
 
 
 
 
 
 

 

 

 

 

 

 
 
Beginning balance at January 1, 2011
 
$
11,144

 
$
46,792

 
$
7,742

 
$
26,851

 
$
1,158

 
$
93,687

Charge-offs
 
(10,455
)
 
(57,912
)
 
(8,579
)
 
(36,028
)
 
(2,974
)
 
(115,948
)
Recoveries
 
759

 
2,121

 
621

 
838

 
1,099

 
5,438

Provision
 
3,521

 
29,501

 
7,213

 
18,465

 
2,244

 
60,944

Ending balance at September 30, 2011
 
$
4,969

 
$
20,502

 
$
6,997

 
$
10,126

 
$
1,527

 
$
44,121
Allowance for Loan Losses, Impairment Methodology
The following table details the recorded investment in loans related to each segment in the allowance for loan losses by portfolio segment and disaggregated on the basis of impairment methodology at September 30, 2012:
 
 
 
 
 
 
Real Estate - Mortgage
 
 
 
 
(dollars in thousands)
 
Commercial and Agricultural
 
Real Estate - Construction
 
1-4 Family Residential
 
Commercial
 
Consumer
 
Total
ALL:
 
 
 
 
 
 
 
 
 
 
 
 
  Individually evaluated for impairment
 
$
815

 
$
1,158

 
$
1,797

 
$
652

 
$
100

 
$
4,522

  Collectively evaluated for impairment
 
2,564

 
4,690

 
7,593

 
5,657

 
2,537

 
23,041

  PI loans evaluated for credit impairment
 
1,774

 
135

 
604

 
749

 
34

 
3,296

  PI loans with no credit deterioration
 
—

 
—

 
—

 
—

 
—

 
—

Total ALL evaluated for impairment
 
$
5,153

 
$
5,983

 
$
9,994

 
$
7,058

 
$
2,671

 
$
30,859

Loans held for investment
 
 
 
 
 
 
 
 
 
 
 
 
  Individually evaluated for impairment
 
$
2,567

 
$
17,510

 
$
20,014

 
$
46,980

 
$
100

 
$
87,171

  Collectively evaluated for impairment
 
53,421

 
40,989

 
527,699

 
227,369

 
42,941

 
892,419

  PI loans with subsequent credit deterioration
 
15,660

 
2,221

 
2,595

 
11,291

 
34

 
31,801

  PI loans with no credit deterioration
 
1,021

 
543

 
39,943

 
177,533

 
1,364

 
220,404

Total loans evaluated for impairment
 
$
72,669

 
$
61,263

 
$
590,251

 
$
463,173

 
$
44,439

 
$
1,231,795

The following table details the recorded investment in loans related to each segment in the allowance for loan losses by portfolio segment and disaggregated on the basis of impairment methodology at December 31, 2011:
 
 
 
 
 
 
Real Estate - Mortgage
 
 
 
 
(dollars in thousands)
 
Commercial and Agricultural
 
Real Estate - Construction
 
1-4 Family Residential
 
Commercial
 
Consumer
 
Total
ALL:
 
 
 
 
 
 
 
 
 
 
 
 
  Individually evaluated for impairment
 
$
1,506

 
$
4,899

 
$
2,140

 
$
2,415

 
$
130

 
$
11,090

  Collectively evaluated for impairment
 
4,270

 
7,096

 
6,745

 
8,648

 
1,511

 
28,270

  PI loans evaluated for credit impairment
 
—

 
—

 
—

 
—

 
—

 
—

  PI loans with no credit deterioration
 
—

 
—

 
—

 
—

 
—

 
—

Total ALL evaluated for impairment
 
$
5,776

 
$
11,995

 
$
8,885

 
$
11,063

 
$
1,641

 
$
39,360

Loans held for investment
 
 
 
 
 
 
 
 
 
 
 
 
  Individually evaluated for impairment
 
$
3,890

 
$
30,460

 
$
24,886

 
$
36,835

 
$
170

 
$
96,241

  Collectively evaluated for impairment
 
62,327

 
54,705

 
375,945

 
254,927

 
42,554

 
790,458

  PI loans with subsequent credit deterioration
 
—

 
—

 
—

 
—

 
—

 
—

  PI loans with no credit deterioration
 
28,872

 
7,641

 
52,894

 
239,621

 
1,808

 
330,836

Total loans evaluated for impairment
 
$
95,089

 
$
92,806

 
$
453,725

 
$
531,383

 
$
44,532

 
$
1,217,535
Troubled Debt Restructurings on Loans
The following table presents a breakdown of troubled debt restructurings that were restructured during the three months ended September 30, 2012, segregated by portfolio segment:
 
 
For Three Months Ended September 30, 2012
 
For Three Months Ended September 30, 2011
 
 
 
 
Pre-Modification
 
Post-Modification
 
 
 
Pre-Modification
 
Post-Modification
 
 
 
 
Outstanding
 
Outstanding
 
 
 
Outstanding
 
Outstanding
(dollars in thousands)
 
Number
 
Recorded
 
Recorded
 
Number
 
Recorded
 
Recorded
 
 
of Loans
 
Investment
 
Investment
 
of Loans
 
Investment
 
Investment
Commercial and agricultural
 
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

Real estate - construction
 
—

 
—

 
—

 
—

 
—

 
—

Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
   1-4 family residential
 
1

 
202

 
202

 
1

 
155

 
155

   Commercial
 
—

 
—

 
—

 
2

 
1,651

 
1,651

Consumer
 
—

 
—

 
—

 
—

 
—

 
—

    Total
 
1

 
$
202

 
$
202

 
$
3

 
$
1,806

 
$
1,806


The following table presents a breakdown of troubled debt restructurings that were restructured during the nine months ended September 30, 2012, segregated by portfolio segment:

 
 
For Nine Months Ended September 30, 2012
 
For Nine Months Ended September 30, 2011
 
 
 
 
Pre-Modification
 
Post-Modification
 
 
 
Pre-Modification
 
Post-Modification
 
 
 
 
Outstanding
 
Outstanding
 
 
 
Outstanding
 
Outstanding
(dollars in thousands)
 
Number
 
Recorded
 
Recorded
 
Number
 
Recorded
 
Recorded
 
 
of Loans
 
Investment
 
Investment
 
of Loans
 
Investment
 
Investment
Commercial and agricultural
 
—

 
$
—

 
$
—

 
$
6

 
$
555

 
$
555

Real estate - construction
 
9

 
2,526

 
1,603

 
6

 
3,612

 
3,612

Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
   1-4 family residential
 
3

 
260

 
260

 
8

 
401

 
401

   Commercial
 
8

 
1,356

 
1,353

 
13

 
7,904

 
7,904

Consumer
 
—

 
—

 
—

 
—

 
—

 
—

    Total
 
20

 
$
4,142

 
$
3,216

 
$
33

 
$
12,472

 
$
12,472