Allowance for Loan Losses and Credit Quality Indicators (Tables)

3 Months Ended

Mar. 31, 2013

Allowance For Loan Losses, by Portfolio Segment

The following tables detail activity within the allowance for loan losses, by portfolio segment, for the dates indicated:

	Three Months Ended March 31,
	2013												2012
				Consumer			Consumer									Consumer			Consumer
	Commercial			Real Estate			and Other			Total			Commercial			Real Estate			and Other			Total
(Amounts in thousands)
Beginning balance	$	17,267		$	7,906		$	597		$	25,770		$	17,752		$	7,711		$	742		$	26,205
Provision for loan losses		483			480			179			1,142			262			618			42			922
Loans charged off		(783	)		(1,396	)		(580	)		(2,759	)		(253	)		(1,105	)		(204	)		(1,562	)
Recoveries credited to allowance		283			13			401			697			104			35			96			235
Net charge-offs		(500	)		(1,383	)		(179	)		(2,062	)		(149	)		(1,070	)		(108	)		(1,327	)
Ending balance	$	17,250		$	7,003		$	597		$	24,850		$	17,865		$	7,259		$	676		$	25,800

Recorded Investment in Loans Considered to be Impaired and Related Information on Impaired Loans

During the quarterly cash flow analysis, three of the Company’s seven purchased credit impaired loan pools were deemed impaired. These pools had a combined recorded investment of $20.08 million, a current unpaid principal balance of $26.61 million, and impairment of $276 thousand at March 31, 2013. For the three months ended March 31, 2013, the Company had an average recorded investment of $20.23 million and recognized interest income of $84 thousand in connection with the impaired loan pools. These amounts are not included in the tables below.

	March 31, 2013						December 31, 2012
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
(Amounts in thousands)	Investment		Balance		Allowance		Investment		Balance		Allowance
Impaired loans with no related allowance:
Commercial loans
Construction, development, and other land	$	1,473	$	1,675	$	—	$	2,916	$	2,916	$	—
Commercial and industrial		913		912		—		284		284		—
Multi-family residential		70		87		—		—		—		—
Single family non-owner occupied		1,299		2,301		—		383		684		—
Non-farm, non-residential		6,628		7,227		—		5,282		5,362		—
Agricultural		—		—		—		—		—		—
Farmland		177		197		—		—		—		—
Consumer real estate loans
Home equity lines		321		444		—		276		277		—
Single family owner occupied		816		1,449		—		277		383		—
Owner occupied construction		—		—		—		—		—		—
Consumer and other loans
Consumer loans		—		—		—		—		—		—
Total impaired loans with no allowance		11,697		14,292		—		9,418		9,906		—
Impaired loans with a related allowance:
Commercial loans
Construction, development, and other land		5,339		5,356		1,822		—		—		—
Commercial and industrial		3,108		8,236		3,100		3,318		8,502		3,192
Multi-family residential		375		396		15		378		397		18
Single family non-owner occupied		1,046		1,107		204		2,411		2,460		996
Non-farm, non-residential		2,730		2,926		430		2,781		2,958		358
Agricultural		—		—		—		—		—		—
Farmland		—		—		—		—		—		—
Consumer real estate loans
Home equity lines		222		230		222		223		230		223
Single family owner occupied		4,296		4,550		608		4,673		4,903		806
Owner occupied construction		—		—		—		—		—		—
Consumer and other loans
Consumer loans		—		—		—		—		—		—
Total impaired loans with an allowance		17,116		22,801		6,401		13,784		19,450		5,593
Total impaired loans	$	28,813	$	37,093	$	6,401	$	23,202	$	29,356	$	5,593

	For the Three Months Ended				For the Three Months Ended
	March 31, 2013				March 31, 2012
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
(Amounts in thousands)	Investment		Recognized		Investment		Recognized
Impaired loans with no related allowance:
Commercial loans
Construction, development, and other land	$	2,195	$	43	$	30	$	—
Commercial and industrial		599		11		483		—
Multi-family residential		35		2		596		—
Single family non-owner occupied		841		79		1,514		9
Non-farm, non-residential		5,955		212		2,684		10
Agricultural		—		—		—		—
Farmland		88		9		—		—
Consumer real estate loans
Home equity lines		298		25		502		6
Single family owner occupied		547		70		7,185		21
Owner occupied construction		—		—		—		—
Consumer and other loans
Consumer loans		—		—		2		—
Total impaired loans with no allowance		10,558		451		12,996		46
Impaired loans with a related allowance:
Commercial loans
Construction, development, and other land		2,670		117		111		1
Commercial and industrial		3,217		—		2,210		—
Multi-family residential		376		7		—		—
Single family non-owner occupied		1,728		3		2,541		31
Non-farm, non-residential		2,756		26		7,310		91
Agricultural		—		—		—		—
Farmland		—		—		—		—
Consumer real estate loans
Home equity lines		222		3		—		—
Single family owner occupied		4,485		37		3,372		25
Owner occupied construction		—		—		—		—
Consumer and other loans
Consumer loans		—		—		—		—
Total impaired loans with an allowance		15,454		193		15,544		148
Total impaired loans	$	26,012	$	644	$	28,540	$	194

Investment in Loans Related to Each Segment

The following tables detail the Company’s recorded investment in loans related to each segment in the allowance for loan losses by portfolio segment and disaggregated on the basis of the Company’s impairment methodology at March 31, 2013, and December 31, 2012.

	March 31, 2013
	Non-acquired		Allowance		Loans		Allowance		Acquired		Allowance
	Loans Individually		for Loans		Collectively		for Loans		Impaired Loans		for Acquired
	Evaluated for		Individually		Evaluated for		Collectively		Evaluated for		Impaired Loans
(Amounts in thousands)	Impairment		Evaluated		Impairment		Evaluated		Impairment		Evaluated
Commercial loans
Construction, development, and other land	$	6,812	$	1,822	$	58,022	$	885	$	14,881	$	—
Commercial and industrial		4,013		3,100		89,818		1,002		3,040		8
Multi-family residential		445		15		65,407		1,486		626		—
Single family non-owner occupied		2,345		204		135,636		3,303		9,025		—
Non-farm, non-residential		9,358		430		441,359		4,595		32,366		—
Agricultural		—		—		2,244		24		1		—
Farmland		177		—		34,099		372		876		—
Total commercial loans		23,150		5,571		826,585		11,672		60,815		8
Consumer real estate loans
Home equity lines		543		222		137,680		1,265		50,625		—
Single family owner occupied		5,112		608		481,047		4,586		7,320		—
Owner occupied construction		—		—		20,292		321		1,096		—
Total consumer real estate loans		5,655		830		639,019		6,172		59,041		—
Consumer and other loans
Consumer loans		—		—		70,664		516		760		—
Other		—		—		3,603		81		—		—
Total consumer and other loans		—		—		74,267		597		760		—
Total loans	$	28,805	$	6,401	$	1,539,871	$	18,441	$	120,616	$	8
	December 31, 2012
	Non-acquired		Allowance		Loans		Allowance		Acquired		Allowance
	Loans Individually		for Loans		Collectively		for Loans		Impaired Loans		for Acquired
	Evaluated for		Individually		Evaluated for		Collectively		Evaluated for		Impaired Loans
(Amounts in thousands)	Impairment		Evaluated		Impairment		Evaluated		Impairment		Evaluated
Commercial loans
Construction, development, and other land	$	2,916	$	—	$	55,369	$	1,214	$	25,744	$	—
Commercial and industrial		3,602		3,192		88,540		1,159		3,544		8
Multi-family residential		378		18		67,278		1,612		649		—
Single family non-owner occupied		2,794		858		134,323		3,509		10,223		—
Non-farm, non-residential		8,063		358		451,240		4,901		38,072		—
Agricultural		—		—		1,852		22		1		—
Farmland		—		—		34,779		416		882		—
Total commercial loans		17,753		4,426		833,381		12,833		79,115		8
Consumer real estate loans
Home equity lines		499		223		139,706		1,351		50,343		—
Single family owner occupied		4,950		944		483,559		5,051		8,005		—
Owner occupied construction		—		—		16,768		337		1,099		—
Total consumer real estate loans		5,449		1,167		640,027		6,739		59,447		—
Consumer and other loans
Consumer loans		—		—		81,037		597		800		—
Other		—		—		5,666		—		—		—
Total consumer and other loans		—		—		86,703		597		800		—
Total loans	$	23,202	$	5,593	$	1,560,111	$	20,169	$	139,362	$	8

Company's Investment in Loans Held for Investment by Internal Credit Grade Indicator

The following tables present the Company’s investment in loans held for investment by internal credit grade indicator at March 31, 2013, and December 31, 2012.

	March 31, 2013
			Special
(Amounts in thousands)	Pass		Mention		Substandard		Doubtful		Loss		Total
Non-covered loans
Commercial loans
Construction, development, and other land	$	38,976	$	1,279	$	13,968	$	997	$	—	$	55,220
Commercial and industrial		80,683		1,576		5,792		3,615		—		91,666
Multi-family residential		58,241		4,141		1,547		—		—		63,929
Single family non-owner occupied		119,349		4,835		11,180		970		—		136,334
Non-farm, non-residential		401,887		10,983		27,196		160		—		440,226
Agricultural		2,071		17		29		—		—		2,117
Farmland		28,411		1,413		4,106		—		—		33,930
Consumer real estate loans
Home equity lines		101,881		2,992		3,476		36		—		108,385
Single family owner occupied		433,486		9,270		27,252		429		—		470,437
Owner occupied construction		19,343		417		—		—		—		19,760
Consumer and other loans
Consumer loans		66,166		1,989		466		4		—		68,625
Other		3,585		5		13		—		—		3,603
Total non-covered loans	$	1,354,079	$	38,917	$	95,025	$	6,211	$	—	$	1,494,232

	March 31, 2013
(Amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Covered loans
Commercial loans
Construction, development, and other land	$	12,747	$	963	$	10,751	$	34	$	—	$	24,495
Commercial and industrial		4,320		179		658		48		—		5,205
Multi-family residential		1,928		—		621		—		—		2,549
Single family non-owner occupied		5,050		—		5,536		86		—		10,672
Non-farm, non-residential		19,973		1,939		20,900		45		—		42,857
Agricultural		127		—		1		—		—		128
Farmland		1,125		—		97		—		—		1,222
Consumer real estate loans
Home equity lines		16,989		11,762		51,687		25		—		80,463
Single family owner occupied		16,668		200		5,943		231		—		23,042
Owner occupied construction		473		—		1,155		—		—		1,628
Consumer and other loans
Consumer loans		2,133		—		666		—		—		2,799
Other		—		—		—		—		—		—
Total covered loans	$	81,533	$	15,043	$	98,015	$	469	$	—	$	195,060

	December 31, 2012
(Amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Non-covered loans
Commercial loans
Construction, development, and other land	$	41,850	$	1,497	$	13,546	$	541	$	—	$	57,434
Commercial and industrial		77,573		2,506		4,821		3,838		—		88,738
Multi-family residential		60,161		4,043		1,490		—		—		65,694
Single family non-owner occupied		112,562		5,938		16,092		1,320		—		135,912
Non-farm, non-residential		399,907		15,975		32,808		120		—		448,810
Agricultural		1,657		19		33		—		—		1,709
Farmland		28,887		2,262		3,421		—		—		34,570
Consumer real estate loans
Home equity lines		104,750		2,739		3,592		—		—		111,081
Single family owner occupied		436,587		9,599		27,319		—		42		473,547
Owner occupied construction		15,841		382		—		—		—		16,223
Consumer and other loans
Consumer loans		76,787		867		501		8		—		78,163
Other		5,657		8		1		—		—		5,666
Total non-covered loans	$	1,362,219	$	45,835	$	103,624	$	5,827	$	42	$	1,517,547

	December 31, 2012
(Amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Covered loans
Commercial loans
Construction, development, and other land	$	6,463	$	2,120	$	17,834	$	178	$	—	$	26,595
Commercial and industrial		6,225		445		197		81		—		6,948
Multi-family residential		1,962		—		649		—		—		2,611
Single family non-owner occupied		6,065		2,223		3,015		125		—		11,428
Non-farm, non-residential		23,855		5,477		19,189		44		—		48,565
Agricultural		143		—		1		—		—		144
Farmland		935		—		156		—		—		1,091
Consumer real estate loans
Home equity lines		16,323		11,981		53,116		25		—		81,445
Single family owner occupied		16,011		927		5,786		237		—		22,961
Owner occupied construction		484		—		1,160		—		—		1,644
Consumer and other loans
Consumer loans		2,987		562		125		—		—		3,674
Other		—		—		—		—		—		—
Total covered loans	$	81,453	$	23,735	$	101,228	$	690	$	—	$	207,106

Nonaccrual Loans Presented by Loan Class

Nonaccrual loans, presented by loan class, consisted of the following at March 31, 2013, and December 31, 2012. 

(Amounts in thousands)	March 31, 2013						December 31, 2012
	Non-covered		Covered		Total		Non-covered		Covered		Total
Commercial loans
Construction, development, and other land	$	6,842	$	2,113	$	8,955	$	405	$	1,990	$	2,395
Commercial and industrial		5,375		48		5,423		3,912		35		3,947
Multi-family residential		445		—		445		378		—		378
Single family non-owner occupied		4,600		29		4,629		7,071		21		7,092
Non-farm, non-residential		5,644		562		6,206		5,938		951		6,889
Agricultural		17		—		17		2		—		2
Farmland		177		—		177		—		—		—
Consumer real estate loans
Home equity lines		925		538		1,463		872		436		1,308
Single family owner occupied		5,874		1,218		7,092		5,219		831		6,050
Owner occupied construction		—		59		59		—		59		59
Consumer and other loans
Consumer loans		169		—		169		126		—		126
Other		—		—		—		—		—		—
Total		30,068		4,567		34,635		23,923		4,323		28,246
Acquired impaired loans		8		—		8		8		—		8
Total nonaccrual loans	$	30,076	$	4,567	$	34,643	$	23,931	$	4,323	$	28,254

Aging of Past Due Loans by Loan Class

The following tables present the aging of past due loans, by loan class, at March 31, 2013, and December 31, 2012. 

	March 31, 2013
(Amounts in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		90+ Days Past Due		Total Past Due		Current Loans		Total Loans
Non-covered loans
Commercial loans
Construction, development, and other land	$	301	$	1,413	$	5,275	$	6,989	$	48,231	$	55,220
Commercial and industrial		258		55		1,549		1,862		89,804		91,666
Multi-family residential		37		—		70		107		63,822		63,929
Single family non-owner occupied		258		107		2,332		2,697		133,637		136,334
Non-farm, non-residential		2,394		1,245		3,540		7,179		433,047		440,226
Agricultural		—		—		17		17		2,100		2,117
Farmland		42		—		177		219		33,711		33,930
Consumer real estate loans
Home equity lines		968		745		623		2,336		106,049		108,385
Single family owner occupied		6,837		1,113		1,654		9,604		460,833		470,437
Owner occupied construction		—		—		—		—		19,760		19,760
Consumer and other loans
Consumer loans		181		1,213		58		1,452		67,173		68,625
Other		—		—		—		—		3,603		3,603
Total non-covered loans	$	11,276	$	5,891	$	15,295	$	32,462	$	1,461,770	$	1,494,232

	March 31, 2013
(Amounts in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		90+ Days Past Due		Total Past Due		Current Loans		Total Loans
Covered loans
Commercial loans
Construction, development, and other land	$	152	$	155	$	1,121	$	1,428	$	23,067	$	24,495
Commercial and industrial		147		—		33		180		5,025		5,205
Multi-family residential		—		—		—		—		2,549		2,549
Single family non-owner occupied		—		—		29		29		10,643		10,672
Non-farm, non-residential		22		38		562		622		42,235		42,857
Agricultural		—		—		—		—		128		128
Farmland		22		—		—		22		1,200		1,222
Consumer real estate loans
Home equity lines		194		165		180		539		79,924		80,463
Single family owner occupied		437		264		577		1,278		21,764		23,042
Owner occupied construction		119		—		59		178		1,450		1,628
Consumer and other loans
Consumer loans		—		—		—		—		2,799		2,799
Other		—		—		—		—		—		—
Total covered loans	$	1,093	$	622	$	2,561	$	4,276	$	190,784	$	195,060

	December 31, 2012
(Amounts in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		90+ Days Past Due		Total Past Due		Current Loans		Total Loans
Non-covered loans
Commercial loans
Construction, development, and other land	$	344	$	—	$	188	$	532	$	56,902	$	57,434
Commercial and industrial		387		84		1,432		1,903		86,835		88,738
Multi-family residential		624		—		—		624		65,070		65,694
Single family non-owner occupied		1,841		1,348		3,715		6,904		129,008		135,912
Non-farm, non-residential		2,702		936		3,621		7,259		441,551		448,810
Agricultural		—		—		—		—		1,709		1,709
Farmland		216		196		—		412		34,158		34,570
Consumer real estate loans
Home equity lines		315		93		495		903		110,178		111,081
Single family owner occupied		6,564		1,176		1,644		9,384		464,163		473,547
Owner occupied construction		382		—		—		382		15,841		16,223
Consumer and other loans
Consumer loans		715		73		47		835		77,328		78,163
Other		—		—		—		—		5,666		5,666
Total non-covered loans	$	14,090	$	3,906	$	11,142	$	29,138	$	1,488,409	$	1,517,547

	December 31, 2012
(Amounts in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		90+ Days Past Due		Total Past Due		Current Loans		Total Loans
Covered loans
Commercial loans
Construction, development, and other land	$	252	$	161	$	1,121	$	1,534	$	25,061	$	26,595
Commercial and industrial		45		—		—		45		6,903		6,948
Multi-family residential		—		—		—		—		2,611		2,611
Single family non-owner occupied		8		—		21		29		11,399		11,428
Non-farm, non-residential		501		—		927		1,428		47,137		48,565
Agricultural		—		—		—		—		144		144
Farmland		6		—		—		6		1,085		1,091
Consumer real estate loans
Home equity lines		217		112		204		533		80,912		81,445
Single family owner occupied		413		135		475		1,023		21,938		22,961
Owner occupied construction		—		—		59		59		1,585		1,644
Consumer and other loans
Consumer loans		—		—		—		—		3,674		3,674
Other		—		—		—		—		—		—
Total covered loans	$	1,442	$	408	$	2,807	$	4,657	$	202,449	$	207,106

Loans Modified as Troubled Debt Restructurings Excluding on Nonaccrual Status

The following table presents information for loans modified as TDRs that were restructured during the three months ended March 31, 2013 and 2012 by type of concession made and loan class. The post-modification recorded investment represents the loan balance immediately following modification.

	Three Months Ended March 31,
	2013						2012
	Total		Pre-Modification		Post-Modification		Total		Pre-Modification		Post-Modification
(Amounts in thousands)	Contracts		Recorded Investment		Recorded Investment		Contracts		Recorded Investment		Recorded Investment
Extended payment term
Single family owner occupied		—		—		—		1	$	351	$	319
Total		—	$	—	$	—		1	$	351	$	319