Loans and Allowance for Loan Losses

3 Months Ended

Jun. 30, 2011

Loans and Allowance for Loan Losses [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE 8: LOANS AND ALLOWANCE FOR LOAN LOSSES

	June 30,	December 31,
	2011	2010
	(In Thousands)
One- to four-family residential construction	$               30,070	$               29,102
Subdivision construction	73,343	86,649
Land development	79,674	95,573
Commercial construction	99,368	68,018
Owner occupied one- to four-family residential	96,153	98,099
Non-owner occupied one- to four-family residential	137,241	136,984
Commercial real estate	571,117	530,277
Other residential	237,321	210,846
Commercial business	196,735	185,865
Industrial revenue bonds	64,631	64,641
Consumer auto	55,569	48,992
Consumer other	74,568	77,331
Home equity lines of credit	44,825	46,852
FDIC-supported loans, net of discounts (TeamBank)	141,353	144,633
FDIC-supported loans, net of discounts (Vantus Bank)	141,920	160,163
	2,043,888	1,984,025
Undisbursed portion of loans in process	(90,079)	(63,108)
Allowance for loan losses	(40,487)	(41,487)
Deferred loan fees and gains, net	(2,437)	(2,543)
	$          1,910,885	$          1,876,887
Weighted average interest rate	5.94%	6.03%

Classes of loans by aging were as follows:

	June 30, 2011
							Total Loans
	30-59 Days	60-89 Days	Over 90	Total Past		Total Loans	> 90 Days and
	Past Due	Past Due	Days	Due	Current	Receivable	Still Accruing
	(In Thousands)
One- to four-family
residential construction	$            120	$               —	$          832	$         952	$          29,118	$          30,070	$                    —
Subdivision construction	68	349	4,666	5,083	68,260	73,343	—
Land development	—	—	1,349	1,349	78,325	79,674	—
Commercial construction	—	—	—	—	99,368	99,368	—
Owner occupied one- to four-
family residential	578	2,222	3,070	5,870	90,283	96,153	118
Non-owner occupied one- to
four-family residential	73	—	2,385	2,458	134,783	137,241	98
Commercial real estate	1,381	1,722	5,337	8,440	562,677	571,117	—
Other residential	189	—	3,093	3,282	234,039	237,321	—
Commercial business	50	164	1,443	1,657	195,078	196,735	—
Industrial revenue bonds	—	—	2,110	2,110	62,521	64,631	—
Consumer auto	449	26	83	558	55,011	55,569	11
Consumer other	1,332	386	747	2,465	72,103	74,568	355
Home equity lines of credit	306	80	144	530	44,295	44,825	—
FDIC-supported loans, net of
discounts (TeamBank)	555	1,721	19,046	21,322	120,031	141,353	146
FDIC-supported loans, net of
discounts (Vantus Bank)	286	2,917	7,194	10,397	131,523	141,920	33
	5,387	9,587	51,499	66,473	1,977,415	2,043,888	$                     761
Less FDIC-supported loans,
net of discounts	841	4,638	26,240	31,719	251,554	283,273
Total	$         4,546	$         4,949	$     25,259	$    34,754	$     1,725,861	$     1,760,615

	December 31, 2010
							Total Loans
	30-59 Days	60-89 Days	Over 90	Total Past		Total Loans	> 90 Days and
	Past Due	Past Due	Days	Due	Current	Receivable	Still Accruing
	(In Thousands)
One- to four-family
residential construction	$            261	$                 —	$          578	$         839	$          28,263	$          29,102	$                    —
Subdivision construction	281	1,015	1,860	3,156	83,493	86,649	—
Land development	2,730	—	5,668	8,398	42,616	51,014	—
Commercial construction	—	—	—	—	112,577	112,577	—
Owner occupied one- to four-
family residential	4,856	914	2,724	8,494	89,605	98,099	—
Non-owner occupied one- to
four-family residential	2,085	2,130	2,831	7,046	129,938	136,984	—
Commercial real estate	2,749	8,546	6,074	17,369	512,908	530,277	—
Other residential	—	4,011	4,202	8,213	202,633	210,846	—
Commercial business	350	355	1,642	2,347	183,518	185,865	—
Industrial revenue bonds	—	—	2,190	2,190	62,451	64,641	—
Consumer auto	427	35	94	556	48,436	48,992	22
Consumer other	1,331	318	1,417	3,066	74,265	77,331	565
Home equity lines of credit	152	160	140	452	46,400	46,852	—
FDIC-supported loans, net of
discounts (TeamBank)	2,719	3,731	13,285	19,735	124,898	144,633	—
FDIC-supported loans, net of
discounts (Vantus Bank)	2,277	1,414	9,399	13,090	147,073	160,163	—
	20,218	22,629	52,104	94,951	1,889,074	1,984,025	$                     587
Less FDIC-supported loans,
net of discounts	4,996	5,145	22,684	32,825	271,971	304,796
Total	$       15,222	$       17,484	$     29,420	$    62,126	$     1,617,103	$     1,679,229

Nonaccruing loans (excluding FDIC-supported loans, net of discount) are summarized as follows:

	June 30,	December 31,
	2011	2010
	(In Thousands)
One- to four-family residential construction	$                               832	$                              578
Subdivision construction	4,666	1,860
Land development	1,349	5,668
Commercial construction	—	—
Owner occupied one- to four-family residential	2,952	2,724
Non-owner occupied one- to four-family residential	2,287	2,831
Commercial real estate	5,337	6,074
Other residential	3,093	4,202
Commercial business	1,443	1,642
Industrial revenue bonds	2,110	2,190
Consumer auto	72	72
Consumer other	392	852
Home equity lines of credit	144	140
Total	$                          24,677	$                         28,833

The following table presents the activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2011.  Also presented are the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of June 30, 2011:

	One- to Four-
	Family	Other
	Residential and	Residential and	Commercial	Commercial	Commercial
	Construction	Construction	Real Estate	Construction	Business	Consumer	Total
	(In Thousands)
Allowance for loan losses
Balance April 1, 2011	$11,546	$3,798	$15,807	$5,235	$3,010	$2,438	$41,834
Provision charged to expense	772	1,756	2,673	2,348	38	844	8,431
Losses charged off	(758)	(1,926)	(3,526)	(2,433)	(924)	(917)	(10,484)
Recoveries	2	1	49	5	200	449	706
Balance June 30, 2011	$11,562	$3,629	$15,003	$5,155	$2,324	$2,814	$40,487
Balance January 1, 2011	$11,483	$3,866	$14,336	$5,852	$3,281	$2,669	$41,487
Provision charged to expense	4,010	2,649	5,885	3,145	8	934	16,631
Losses charged off	(3,959)	(2,888)	(5,269)	(3,851)	(1,716)	(1,807)	(19,490)
Recoveries	28	2	51	9	751	1,018	1,859
Balance June 30, 2011	$11,562	$3,629	$15,003	$5,155	$2,324	$2,814	$40,487
Ending balance:
Individually evaluated for
impairment	$3,293	$369	$1,901	$1,288	$502	$86	$7,439
Collectively evaluated for
impairment	$8,269	$3,259	$13,103	$3,838	$1,823	$2,727	$33,019
Loans acquired and
accounted for under ASC
310-30	$—	$—	$—	$30	$—	$—	$30
Loans
Individually evaluated for
impairment	$39,478	$24,557	$68,603	$31,887	$7,250	$708	$172,483
Collectively evaluated for
impairment	$297,330	$212,763	$567,145	$147,155	$189,484	$174,255	$1,588,132
Loans acquired and
accounted for under ASC
310-30	$66,352	$23,529	$121,862	$22,731	$14,639	$34,160	$283,273

The following table presents the balance in the allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2010:

	One- to Four-
	Family	Other
	Residential and	Residential and	Commercial	Commercial	Commercial
	Construction	Construction	Real Estate	Construction	Business	Consumer	Total
	(In Thousands)
Allowance for loan losses
Individually evaluated for
impairment	$4,353	$1,714	$3,089	$2,083	$784	$37	$12,060
Collectively evaluated for
impairment	$7,100	$2,152	$11,247	$3,769	$1,697	$2,632	$28,597
Loans acquired and
accounted for under ASC
310-30	$—	$—	$—	$30	$800	$—	$830
Loans
Individually evaluated for
impairment	$40,562	$25,246	$72,379	$45,334	$8,340	$622	$192,483
Collectively evaluated for
impairment	$310,272	$185,600	$522,539	$118,257	$177,525	$172,553	$1,486,746
Loans acquired and
accounted for under ASC
310-30	$75,727	$23,277	$128,704	$22,858	$15,215	$39,015	$304,796

Impaired loans are summarized as follows:

	June 30, 2011
		Unpaid
	Recorded	Principal	Specific
	Balance	Balance	Allowance
	(In Thousands
One- to four-family residential construction	$               2,106	$               2,197	$                  121
Subdivision construction	8,543	9,467	1,498
Land development	7,330	7,995	1,288
Commercial construction	—	—	—
Owner occupied one- to four-family residential	3,960	4,529	601
Non-owner occupied one- to four-family residential	9,126	9,323	1,074
Commercial real estate	22,038	24,641	1,795
Other residential	8,330	9,266	369
Commercial business	2,366	3,212	502
Industrial revenue bonds	2,110	2,190	105
Consumer auto	121	141	6
Consumer other	550	615	63
Home equity lines of credit	120	129	17
Total	$             66,700	$             73,705	$               7,439

	Three Months Ended		Six Months Ended
	June 30, 2011		June 30, 2011
	Average		Average
	Investment	Interest	Investment	Interest
	in Impaired	Income	in Impaired	Income
	Loans	Recognized	Loans	Recognized
	(In Thousands)
One- to four-family residential construction	$2,006	$9	$1,882	$18
Subdivision construction	8,314	54	8,909	115
Land development	11,066	70	12,751	233
Commercial construction	—	—	617	—
Owner occupied one- to four-family residential	3,838	10	4,568	34
Non-owner occupied one- to four-family residential	9,446	98	9,944	201
Commercial real estate	23,901	205	26,282	461
Other residential	9,701	93	11,032	191
Commercial business	3,497	13	5,264	62
Industrial revenue bonds	2,137	—	2,163	—
Consumer auto	109	1	262	4
Consumer other	575	3	579	7
Home equity lines of credit	182	—	267	1
Total	$74,772	$556	$84,520	$1,327

	December 31, 2010
				Average
		Unpaid		Investment	Interest
	Recorded	Principal	Specific	in Impaired	Income
	Balance	Balance	Allowance	Loans	Recognized
	(In Thousands)
One- to four-family residential
construction	$             1,947	$             2,371	$                258	$                 1,724	$                  83
Subdivision construction	9,894	10,560	2,326	7,850	415
Land development	17,957	21,006	1,925	18,760	534
Commercial construction	1,851	1,851	158	458	31
Owner occupied one- to four-family
residential	5,205	5,620	542	3,612	69
Non-owner occupied one- to four-family
residential	11,785	12,267	1,227	8,182	386
Commercial real estate	25,782	26,392	3,045	10,615	603
Other residential	9,768	9,869	1,714	8,123	140
Commercial business	9,722	12,495	828	2,630	114
Consumer auto	125	137	4	30	1
Consumer other	429	481	14	93	4
Home equity lines of credit	148	166	19	109	1
Total	$           94,613	$         103,215	$           12,060	$               62,186	$             2,381

Included in certain loan categories in the impaired loans are troubled debt restructurings that were classified as impaired. At June 30, 2011, the Company had $7.4 million of construction loans, $7.4 million of residential mortgage loans, $10.2 million of commercial real estate loans, $51,000 of commercial business loans and $213,000 of consumer loans that were modified in troubled debt restructurings and impaired.  Of the total troubled debt restructurings, $22.6 million were accruing interest at June 30, 2011.  At December 31, 2010, the Company had $6.5 million of construction loans, $5.5 million of residential mortgage loans, $8.2 million of commercial real estate loans, $57,000 of other commercial loans and $150,000 of consumer loans that were modified in troubled debt restructurings and impaired.  Of the total troubled debt restructurings, $16.5 million were accruing interest at December 31, 2010. 

The company reviews the credit quality of its loan portfolio using an internal grading system that classifies loans as “Satisfactory,” “Watch,” Special Mention” and “Substandard.”  Substandard loans are characterized by the distinct possibility that the Bank will sustain some loss if certain deficiencies are not corrected.  Special mention loans possess potential weaknesses that deserve management’s close attention but do not expose the Bank to a degree of risk that warrants substandard classification.  Loans classified as watch are being monitored because of indications of potential weaknesses or deficiencies that may require future classification as special mention or substandard.  Loans not meeting any of the criteria previously described are considered satisfactory.  The FDIC-covered loans are evaluated using this internal grading system.  However, since the loans are accounted for in pools and are currently substantially covered through loss sharing agreements with the FDIC, all of the loan pools were considered satisfactory at June 30, 2011 and December 31, 2010, respectively.  See Note 9 for further discussion of the acquired loan pools and loss sharing agreements.  The loan grading system is presented by loan class below:

	June 30, 2011
			Special
	Satisfactory	Watch	Mention	Substandard	Total
	(In Thousands)
One- to four-family residential
construction	$26,723	$2,009	$—	$1,338	$30,070
Subdivision construction	55,514	10,562	—	7,267	73,343
Land development	52,590	20,459	—	6,625	79,674
Commercial construction	94,565	4,803	—	—	99,368
Owner occupied one- to four-family
residential	92,222	525	—	3,406	96,153
Non-owner occupied one- to four-family
residential	122,870	6,714	—	7,657	137,241
Commercial real estate	504,624	48,559	2,684	15,250	571,117
Other residential	212,763	21,276	—	3,282	237,321
Commercial business	189,484	4,885	—	2,366	196,735
Industrial revenue bonds	62,521	—	—	2,110	64,631
Consumer auto	55,474	—	—	95	55,569
Consumer other	74,076	—	—	492	74,568
Home equity lines of credit	44,705	—	—	120	44,825
FDIC-supported loans, net of discounts
(TeamBank)	141,353	—	—	—	141,353
FDIC-supported loans, net of discounts
(Vantus Bank)	141,920	—	—	—	141,920
Total	$1,871,404	$119,792	$2,684	$50,008	$2,043,888

	December 31, 2010
			Special
	Satisfactory	Watch	Mention	Substandard	Total
	(In Thousands)
One- to four-family residential
construction	$27,620	$549	$—	$933	$29,102
Subdivision construction	69,907	8,408	—	8,334	86,649
Land development	57,486	20,834	—	17,253	95,573
Commercial construction	60,770	5,397	—	1,851	68,018
Owner occupied one- to four-family
residential	92,385	766	—	4,948	98,099
Non-owner occupied one- to four-family
residential	120,360	6,471	—	10,153	136,984
Commercial real estate	460,088	46,805	2,574	20,810	530,277
Other residential	185,600	15,478	—	9,768	210,846
Commercial business	177,525	812	—	7,528	185,865
Industrial revenue bonds	62,451	—	—	2,190	64,641
Consumer auto	48,883	—	—	109	48,992
Consumer other	76,966	—	—	365	77,331
Home equity lines of credit	46,704	—	—	148	46,852
FDIC-supported loans, net of discounts
(TeamBank)	144,633	—	—	—	144,633
FDIC-supported loans, net of discounts
(Vantus Bank)	160,163	—	—	—	160,163
Total	$1,791,541	$105,520	$2,574	$84,390	$1,984,025