XML 43 R28.htm IDEA: XBRL DOCUMENT v2.3.0.15
Covered Assets and FDIC Loss-sharing Asset (Tables)
9 Months Ended
Sep. 30, 2011
Covered Assets And FDIC Loss Sharing Asset 
Analysis and Allowance for Losses on Covered Loans
The following is an analysis of our covered loans, net of related allowance for losses on covered loans as of September 30, 2011 and December 31, 2010:
 
(dollars in thousands)
 
Covered Loans September 30, 2011
 
Weighted-
Average
Risk Rating
 
Allowance
for Loan
Losses
Commercial Business
 
$
220,727

 
6.09
 
$
2,018

Real Estate:
 
 
 
 
 
 
One-to-four family residential
 
84,724

 
5.33
 
1,071

Commercial and multifamily residential
 
346,406

 
5.90
 
4,293

Total Real Estate
 
431,130

 
 
 
5,364

Real Estate Construction:
 
 
 
 
 
 
One-to-four family residential
 
55,928

 
7.40
 
205

Commercial and multifamily residential
 
30,034

 
7.15
 
134

Total Real Estate Construction
 
85,962

 
 
 
339

Consumer
 
60,306

 
5.07
 
606

Subtotal of covered loans
 
798,125

 
 
 
$
8,327

Less:
 
 
 
 
 
 
Valuation discount resulting from acquisition accounting
 
218,993

 
 
 
 
Allowance for loan losses
 
8,327

 
 
 
 
Covered loans, net of valuation discounts and allowance for loan losses
 
$
570,805

 
 
 
 
(dollars in thousands)
 
Covered Loans December 31, 2010
 
Weighted-
Average
Risk Rating
 
Allowance
for Loan
Losses
Commercial Business
 
$
165,255

 
5.74
 
$
2,903

Real Estate:
 
 
 
 
 
 
One-to-four family residential
 
68,700

 
4.77
 
1,013

Commercial and multifamily residential
 
341,063

 
5.70
 
821

Total Real Estate
 
409,763

 
 
 
1,834

Real Estate Construction:
 
 
 
 
 
 
One-to-four family residential
 
39,754

 
7.29
 
98

Commercial and multifamily residential
 
41,624

 
6.79
 
469

Total Real Estate Construction
 
81,378

 
 
 
567

Consumer
 
58,337

 
4.49
 
751

Subtotal of covered loans
 
714,733

 
 
 
$
6,055

Less:
 
 
 
 
 
 
Valuation discount resulting from acquisition accounting
 
191,617

 
 
 
 
Allowance for loan losses
 
6,055

 
 
 
 
Covered loans, net of valuation discounts and allowance for loan losses
 
$
517,061

 
 
 
 
Changes in Accretable Yield for Acquired Loans
The following table shows the changes in accretable yield for acquired loans for three and nine months ended September 30, 2011:
(in thousands)
 
Three months ended September 30, 2011
 
Nine months ended September 30, 2011
Balance at beginning of period
 
$
314,333

 
$
256,572

Additions resulting from acquisitions
 
—

 
59,811

Accretion
 
(23,608
)
 
(60,369
)
Disposals
 
(8,594
)
 
(24,134
)
Reclassifications from nonaccretable difference
 
69

 
50,320

Balance at end of period
 
$
282,200

 
$
282,200

Schedule of Carrying Amounts for Acquired Loans at Acquisition Date
The following table shows the initially recorded amounts for loans acquired during 2011, which are accounted for on a pooled basis, at acquisition date, respectively:

 
 
First Heritage Bank
 
Summit Bank
(in thousands)
 
May 27, 2011
 
May 20, 2011
Contractually required payments of interest and principal
 
$
151,611

 
$
127,823

Nonaccretable difference
 
(34,052
)
 
(34,301
)
Cash flows expected to be collected(1)
 
117,559

 
93,522

Accretable yield
 
(36,071
)
 
(23,739
)
Carrying value of acquired loans
 
$
81,488

 
$
69,783

(1) Represents undiscounted expected principal and interest cash flows
 
 
Covered OREO at Carrying Value
The following table sets forth activity in covered OREO at carrying value for the three and nine months ended September 30, 2011:
 
 
 
Three Months Ended
 
Nine Months Ended
(in thousands)
 
September 30, 2011
 
September 30, 2011
Covered OREO:
 
 
 
 
Balance, beginning of period
 
$
23,730

 
$
14,443

Established through acquisitions
 
—

 
10,387

Transfers in, net of write-downs ($952 and $1,393, respectively)
 
2,979

 
8,071

OREO improvements
 
—

 
—

Additional OREO write-downs
 
(189
)
 
(302
)
Proceeds from sale of OREO property
 
(3,523
)
 
(14,604
)
Gain on sale of OREO
 
1,838

 
6,840

Total covered OREO, end of period
 
$
24,835

 
$
24,835

FDIC Loss-sharing Asset
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
(in thousands)
 
2011
 
2010
 
2011
 
2010
Balance at beginning of period
 
$
209,694

 
$
226,745

 
$
205,991

 
$
—

Adjustments not reflected in income
 
 
 
 
 
 
 
 
Established through acquisitions
 
—

 
—

 
68,734

 
210,405

Cash received from the FDIC
 
(6,108
)
 
(11,198
)
 
(51,000
)
 
(11,198
)
FDIC reimbursable losses, net
 
1,138

 
416

 
2,192

 
13,357

Adjustments reflected in income
 
 
 
 
 
 
 
 
(Amortization) accretion
 
(9,333
)
 
2,401

 
(24,974
)
 
6,353

Loan loss provision
 
921

 
—

 
2,424

 
—

Other
 
(2,443
)
 
(6,937
)
 
(9,498
)
 
(7,490
)
Balance at end of period
 
$
193,869

 
$
211,427

 
$
193,869

 
$
211,427