Allowance for Loan Losses (ALL) | 12 Months Ended |
Dec. 31, 2013 |
Allowance for Loan Losses All [Abstract] | ' |
Allowance for Loan Losses (ALL) | ' |
Allowance for Loan Losses (ALL) |
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The following tables present the Company’s loan loss experience on noncovered loans for the periods indicated (dollars in thousands): |
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| 31-Dec | | | | | | | | | | | | | | | | |
| 2013 | | 2012 | | 2011 | | | | | | | | | | | | | | | | |
Balance, beginning of period | $ | 14,660 | | | $ | 10,207 | | | $ | 5,351 | | | | | | | | | | | | | | | | | |
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Loans charged-off | (417 | ) | | (669 | ) | | (1,744 | ) | | | | | | | | | | | | | | | | |
Recoveries of loans previously charged off | 493 | | | 87 | | | 118 | | | | | | | | | | | | | | | | | |
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Net recoveries (charge-offs) | 76 | | | (582 | ) | | (1,626 | ) | | | | | | | | | | | | | | | | |
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Provision for loan losses | 1,920 | | | 5,035 | | | 6,482 | | | | | | | | | | | | | | | | | |
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Balance, end of period | $ | 16,656 | | | $ | 14,660 | | | $ | 10,207 | | | | | | | | | | | | | | | | | |
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The following tables present the Company’s loan loss experience on covered loans for the periods indicated (dollars in thousands): |
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| 31-Dec | | | | | | | | | | | | | | | | |
| 2013 | | 2012 | | 2011 | | | | | | | | | | | | | | | | |
Balance, beginning of period (1) | $ | 55,478 | | | $ | 59,277 | | | $ | — | | | | | | | | | | | | | | | | | |
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Loans charged-off | (35,989 | ) | | (61,976 | ) | | (19,329 | ) | | | | | | | | | | | | | | | | |
Recoveries of loans previously charged off | 32,515 | | | 7,540 | | | 25 | | | | | | | | | | | | | | | | | |
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Net charge-offs | (3,474 | ) | | (54,436 | ) | | (19,304 | ) | | | | | | | | | | | | | | | | |
Provision for loan losses | (34,595 | ) | | 50,637 | | | 78,581 | | | | | | | | | | | | | | | | | |
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Amount attributable to FDIC loss share agreements | 30,188 | | | (40,556 | ) | | (58,547 | ) | | | | | | | | | | | | | | | | |
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Total provision for loan losses charged to operations | (4,407 | ) | | 10,081 | | | 20,034 | | | | | | | | | | | | | | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | (30,188 | ) | | 40,556 | | | 58,547 | | | | | | | | | | | | | | | | | |
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Balance, end of period | $ | 17,409 | | | $ | 55,478 | | | $ | 59,277 | | | | | | | | | | | | | | | | | |
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(1) There was no recorded covered ALL during 2010. |
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Description of segment and class risks |
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Each of our portfolio segments and the classes within those segments are subject to risks that could have an adverse impact on the credit quality of our loan portfolio. Management has identified the most significant risks as described below which are generally similar among our segments and classes. While the list is not exhaustive, it provides a description of the risks that management has determined are the most significant. At December 31, 2013, approximately 18.6% of our outstanding loan portfolio is covered under FDIC loss share agreements and does not represent the same risk of loss as the noncovered loan portfolio. The risks associated with covered loans are generally consistent with the risks identified for commercial and noncommercial loans and the classes of loans within those segments. In addition to the risks associated with segments and classes, risks specifically associated with covered loans are also described below. |
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Real Estate Loans |
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Loans secured by real estate are the principal component of our loan portfolio. Real estate loans are subject to the same general risks as other loans and are particularly sensitive to fluctuations in interest rates and the value of real estate. Fluctuations in these factors, as well as others arising after a loan has been made, could negatively affect a borrower's cash flow, creditworthiness and ability to repay the loan. When we make new real estate loans, we typically obtain a security interest in the real estate, as well as other available credit enhancements, to increase the likelihood of the ultimate repayment of the loan. To control concentration risk, we monitor collateral type concentrations within this portfolio. |
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In addition to these common risks for the majority of our real estate loans, additional risks are inherent in certain of our classes of real estate loans. |
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Commercial Real Estate |
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Commercial real estate loans consist of commercial construction and land development loans and other commercial real estate loans. Commercial construction and land development loans are highly dependent upon the supply and demand for commercial real estate in the markets we serve as well as the demand for newly constructed residential homes and lots that our customers are developing. Construction and development loans generally carry a higher degree of risk than long-term financing of existing properties because repayment depends upon the ultimate completion of the project and usually on the subsequent lease-up and/or sale of the property. Additionally, deterioration in demand could result in significant decreases in the underlying collateral values and make repayment of the outstanding loans more difficult for our customers. |
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Other commercial real estate loans consist primarily of loans secured by multifamily housing and other nonfarm nonresidential properties such as retail, office and hotel/motel. These loans typically have terms of five years or less, although payments may be structured on a longer amortization basis. We evaluate each borrower on an individual basis and attempt to determine the business risks and credit profile of each borrower. The primary risk associated with loans secured with income-producing property is the inability of that property to produce adequate cash flow to service the debt. High unemployment, generally weak economic conditions and/or an oversupply in the market may result in our customer having difficulty achieving adequate occupancy rates. |
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Commercial and Industrial Loans |
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Commercial and industrial loans include loans to individuals and businesses for commercial purposes in various lines of business, including manufacturing industries and professional service industries. Repayment is primarily dependent on the ability of the borrower to achieve business results consistent with those projected at loan origination resulting in cash flow sufficient to service the debt. To the extent that a borrower's business results are significantly unfavorable versus the original projections, the ability for the loan to be serviced on a basis consistent with the contractual terms may be at risk. While these loans may have real estate as partial collateral, they are generally considered to have greater risk than first or second mortgages on real estate because these loans may be unsecured or, if they are secured, the value of the non-real estate collateral may be difficult to assess and more likely to decrease than real estate, and the control of the collateral is more at risk. |
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Owner-occupied loans consist of loans secured by nonfarm nonresidential properties such as office and industrial properties, churches, convenience stores and restaurants occupied by an affiliated tenant. Like commercial and industrial loans, repayment is primarily dependent on the ability of the operating company to achieve business results consistent with those projected at loan origination resulting in cash flow sufficient to service the debt. Adverse changes in the business's results, specifically declines in cash flows, could jeopardize the ability for the loan to be serviced in accordance with the contractual terms. |
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Residential Real Estate |
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Residential real estate loans are typically to individuals and are secured by owner-occupied and investor-owned 1-4 family residential property. We generally originate and hold short-term first mortgages, traditional second mortgages and home equity lines of credit. We originate and sell longer-term mortgages in the secondary market. Significant and rapid declines in real estate values can result in residential mortgage loan borrowers having debt levels in excess of the current market value of the collateral. |
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Consumer |
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The consumer loan portfolio includes loans to individuals for personal, family and household purposes, including secured and unsecured installment loans and revolving lines of credit. Consumer loans not secured by real estate are generally considered to have greater risk than first or second mortgages on real estate because they may be unsecured, or, if they are secured, the value of the collateral may be difficult to assess and more likely to decrease in value, and is more difficult to control, than real estate. |
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Covered loans |
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The risks associated with covered loans are generally consistent with the risks identified for commercial and noncommercial loans and the classes of loans within those segments. An additional substantive risk with respect to covered loans relates to the FDIC loss share agreements, specifically the ability to receive timely and full reimbursement from the FDIC for losses and related expenses that we believe are covered by the loss share agreements. Further, these loans were underwritten by other institutions with weaker lending standards. Therefore, there is a significant risk that the loans were not adequately supported by the paying capacity of the borrower or the values of underlying collateral at the time of origination. Management separately monitors the covered loan portfolio and periodically evaluates the recorded investment in these loans in comparison to actual losses. This evaluation is made to determine whether additional impairment exists. |
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The following tables detail the allowance for loan losses on loans not covered by loss share agreements by portfolio segment for the periods indicated (dollars in thousands): |
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| Commercial Real Estate | | Commercial & Industrial | | Residential Real Estate | | Consumer & Other | | Total | | | | | | | | |
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December 31, 2013 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 9,495 | | | $ | 3,103 | | | $ | 1,050 | | | $ | 1,012 | | | $ | 14,660 | | | | | | | | | |
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Charge-offs | (190 | ) | | (163 | ) | | (38 | ) | | (26 | ) | | (417 | ) | | | | | | | | |
Recoveries | 439 | | | 7 | | | 20 | | | 27 | | | 493 | | | | | | | | | |
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Provision | 1,419 | | | 192 | | | (17 | ) | | 326 | | | 1,920 | | | | | | | | | |
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Ending balance | $ | 11,163 | | | $ | 3,139 | | | $ | 1,015 | | | $ | 1,339 | | | $ | 16,656 | | | | | | | | | |
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Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 98 | | | $ | 159 | | | $ | 49 | | | $ | 8 | | | $ | 314 | | | | | | | | | |
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Collectively evaluated for impairment | 11,065 | | | 2,980 | | | 966 | | | 1,331 | | | 16,342 | | | | | | | | | |
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Total ending allowance balance | $ | 11,163 | | | $ | 3,139 | | | $ | 1,015 | | | $ | 1,339 | | | $ | 16,656 | | | | | | | | | |
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Loans: | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 807 | | | $ | 318 | | | $ | 1,198 | | | $ | 15 | | | $ | 2,338 | | | | | | | | | |
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Loans collectively evaluated for impairment | 800,710 | | | 204,685 | | | 65,637 | | | 50,105 | | | 1,121,137 | | | | | | | | | |
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Total loans | $ | 801,517 | | | $ | 205,003 | | | $ | 66,835 | | | $ | 50,120 | | | $ | 1,123,475 | | | | | | | | | |
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| Commercial Real Estate | | Commercial & Industrial | | Residential Real Estate | | Consumer & Other | | Total | | | | | | | | |
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December 31, 2012 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 6,423 | | | $ | 2,895 | | | $ | 561 | | | $ | 328 | | | $ | 10,207 | | | | | | | | | |
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Charge-offs | (510 | ) | | (75 | ) | | (75 | ) | | (9 | ) | | (669 | ) | | | | | | | | |
Recoveries | 74 | | | 5 | | | 2 | | | 6 | | | 87 | | | | | | | | | |
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Provision | 3,508 | | | 278 | | | 562 | | | 687 | | | 5,035 | | | | | | | | | |
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Ending balance | $ | 9,495 | | | $ | 3,103 | | | $ | 1,050 | | | $ | 1,012 | | | $ | 14,660 | | | | | | | | | |
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Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 743 | | | $ | 217 | | | $ | 359 | | | $ | 17 | | | $ | 1,336 | | | | | | | | | |
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Collectively evaluated for impairment | 8,752 | | | 2,886 | | | 691 | | | 995 | | | 13,324 | | | | | | | | | |
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Total ending allowance balance | $ | 9,495 | | | $ | 3,103 | | | $ | 1,050 | | | $ | 1,012 | | | $ | 14,660 | | | | | | | | | |
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Loans: | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 2,864 | | | $ | 493 | | | $ | 1,402 | | | $ | 33 | | | $ | 4,792 | | | | | | | | | |
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Loans collectively evaluated for impairment | 685,313 | | | 207,342 | | | 41,777 | | | 46,278 | | | 980,710 | | | | | | | | | |
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Total loans | $ | 688,177 | | | $ | 207,835 | | | $ | 43,179 | | | $ | 46,311 | | | $ | 985,502 | | | | | | | | | |
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| Commercial Real Estate | | Commercial & Industrial | | Residential Real Estate | | Consumer & Other | | Total | | | | | | | | |
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December 31, 2011 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 3,258 | | | $ | 1,385 | | | $ | 246 | | | $ | 462 | | | $ | 5,351 | | | | | | | | | |
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Charge-offs | (611 | ) | | (640 | ) | | (74 | ) | | (419 | ) | | (1,744 | ) | | | | | | | | |
Recoveries | — | | | 21 | | | 8 | | | 89 | | | 118 | | | | | | | | | |
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Provision | 3,776 | | | 2,129 | | | 381 | | | 196 | | | 6,482 | | | | | | | | | |
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Ending balance | $ | 6,423 | | | $ | 2,895 | | | $ | 561 | | | $ | 328 | | | $ | 10,207 | | | | | | | | | |
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Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | — | | | $ | 46 | | | $ | — | | | $ | — | | | $ | 46 | | | | | | | | | |
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Collectively evaluated for impairment | 6,423 | | | 2,849 | | | 561 | | | 328 | | | 10,161 | | | | | | | | | |
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Total ending allowance balance | $ | 6,423 | | | $ | 2,895 | | | $ | 561 | | | $ | 328 | | | $ | 10,207 | | | | | | | | | |
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Loans: | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 1,441 | | | $ | 720 | | | $ | — | | | $ | — | | | $ | 2,161 | | | | | | | | | |
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Loans collectively evaluated for impairment | 468,755 | | | 174,225 | | | 33,738 | | | 22,150 | | | 698,868 | | | | | | | | | |
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Total loans | $ | 470,196 | | | $ | 174,945 | | | $ | 33,738 | | | $ | 22,150 | | | $ | 701,029 | | | | | | | | | |
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The following tables detail the allowance for loan losses on loans covered by loss share agreements by portfolio segment for the periods indicated (dollars in thousands): |
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| Commercial Real Estate | | Commercial & Industrial | | Residential Real Estate | | Consumer & Other | | Total | | | | | | | | |
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December 31, 2013 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 27,152 | | | $ | 6,092 | | | $ | 21,545 | | | $ | 689 | | | $ | 55,478 | | | | | | | | | |
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Charge-offs | (25,554 | ) | | (6,968 | ) | | (2,697 | ) | | (770 | ) | | (35,989 | ) | | | | | | | | |
Recoveries | 18,661 | | | 6,947 | | | 5,500 | | | 1,407 | | | 32,515 | | | | | | | | | |
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Provision for loan losses before amount attributable to FDIC loss share agreements | (9,033 | ) | | (2,441 | ) | | (21,867 | ) | | (1,254 | ) | | (34,595 | ) | | | | | | | | |
Amount attributable to FDIC loss share agreements | 7,882 | | | 2,129 | | | 19,083 | | | 1,094 | | | 30,188 | | | | | | | | | |
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Total provision for loan losses charged to operations | (1,151 | ) | | (312 | ) | | (2,784 | ) | | (160 | ) | | (4,407 | ) | | | | | | | | |
Provision for loan losses recorded through the FDIC loss share receivable | (7,882 | ) | | (2,129 | ) | | (19,083 | ) | | (1,094 | ) | | (30,188 | ) | | | | | | | | |
Ending balance | $ | 11,226 | | | $ | 3,630 | | | $ | 2,481 | | | $ | 72 | | | $ | 17,409 | | | | | | | | | |
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Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 6,018 | | | $ | 1,113 | | | $ | 966 | | | $ | 72 | | | $ | 8,169 | | | | | | | | | |
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Collectively evaluated for impairment | 5,208 | | | 2,517 | | | 1,515 | | | — | | | 9,240 | | | | | | | | | |
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Total ending allowance balance | $ | 11,226 | | | $ | 3,630 | | | $ | 2,481 | | | $ | 72 | | | $ | 17,409 | | | | | | | | | |
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Loans: | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 49,713 | | | $ | 15,465 | | | $ | 2,132 | | | $ | 265 | | | $ | 67,575 | | | | | | | | | |
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Loans collectively evaluated for impairment | 53,243 | | | 43,242 | | | 93,108 | | | 326 | | | 189,919 | | | | | | | | | |
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Total loans | $ | 102,956 | | | $ | 58,707 | | | $ | 95,240 | | | $ | 591 | | | $ | 257,494 | | | | | | | | | |
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| Commercial Real Estate | | Commercial & Industrial | | Residential Real Estate | | Consumer & Other | | Total | | | | | | | | |
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December 31, 2012 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 37,332 | | | $ | 7,573 | | | $ | 14,372 | | | $ | — | | | $ | 59,277 | | | | | | | | | |
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Charge-offs | (50,259 | ) | | (7,155 | ) | | (4,544 | ) | | (18 | ) | | (61,976 | ) | | | | | | | | |
Recoveries | 6,999 | | | 372 | | | 169 | | | — | | | 7,540 | | | | | | | | | |
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Provision for loan losses before benefit attributable to FDIC loss share agreements | 33,080 | | | 5,302 | | | 11,548 | | | 707 | | | 50,637 | | | | | | | | | |
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Amount attributable to FDIC loss share agreements | (26,497 | ) | | (4,247 | ) | | (9,246 | ) | | (566 | ) | | (40,556 | ) | | | | | | | | |
Total provision for loan losses charged to operations | 6,583 | | | 1,055 | | | 2,302 | | | 141 | | | 10,081 | | | | | | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | 26,497 | | | 4,247 | | | 9,246 | | | 566 | | | 40,556 | | | | | | | | | |
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Ending balance | $ | 27,152 | | | $ | 6,092 | | | $ | 21,545 | | | $ | 689 | | | $ | 55,478 | | | | | | | | | |
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Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 14,418 | | | $ | 3,869 | | | $ | 4,046 | | | $ | 641 | | | $ | 22,974 | | | | | | | | | |
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Collectively evaluated for impairment | 12,734 | | | 2,223 | | | 17,499 | | | 48 | | | 32,504 | | | | | | | | | |
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Total ending allowance balance | $ | 27,152 | | | $ | 6,092 | | | $ | 21,545 | | | $ | 689 | | | $ | 55,478 | | | | | | | | | |
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Loans: | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 102,844 | | | $ | 22,603 | | | $ | 13,760 | | | $ | 10,535 | | | $ | 149,742 | | | | | | | | | |
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Loans collectively evaluated for impairment | 117,454 | | | 78,868 | | | 128,272 | | | 377 | | | 324,971 | | | | | | | | | |
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Total loans | $ | 220,298 | | | $ | 101,471 | | | $ | 142,032 | | | $ | 10,912 | | | $ | 474,713 | | | | | | | | | |
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| Commercial Real Estate | | Commercial & Industrial | | Residential Real Estate | | Consumer & Other | | Total | | | | | | | | |
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December 31, 2011 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | |
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Charge-offs | (14,904 | ) | | (3,069 | ) | | (1,356 | ) | | — | | | (19,329 | ) | | | | | | | | |
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Recoveries | 3 | | | 22 | | | — | | | — | | | 25 | | | | | | | | | |
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Provision for loan losses before benefit attributable to FDIC loss share agreements | 52,233 | | | 10,620 | | | 15,728 | | | — | | | 78,581 | | | | | | | | | |
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Amount attributable to FDIC loss share agreements | (38,918 | ) | | (7,912 | ) | | (11,717 | ) | | — | | | (58,547 | ) | | | | | | | | |
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Total provision for loan losses charged to operations | 13,315 | | | 2,708 | | | 4,011 | | | — | | | 20,034 | | | | | | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | 38,918 | | | 7,912 | | | 11,717 | | | — | | | 58,547 | | | | | | | | | |
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Ending balance | $ | 37,332 | | | $ | 7,573 | | | $ | 14,372 | | | $ | — | | | $ | 59,277 | | | | | | | | | |
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Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 27,458 | | | $ | 4,037 | | | $ | 4,020 | | | $ | — | | | $ | 35,515 | | | | | | | | | |
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Collectively evaluated for impairment | 9,874 | | | 3,536 | | | 10,352 | | | — | | | 23,762 | | | | | | | | | |
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Total ending allowance balance | $ | 37,332 | | | $ | 7,573 | | | $ | 14,372 | | | $ | — | | | $ | 59,277 | | | | | | | | | |
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Loans: | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 197,634 | | | $ | 38,285 | | | $ | 18,508 | | | $ | 12,288 | | | $ | 266,715 | | | | | | | | | |
| | | | | | | |
Loans collectively evaluated for impairment | 226,051 | | | 143,412 | | | 170,601 | | | 5,375 | | | 545,439 | | | | | | | | | |
| | | | | | | |
Total loans | $ | 423,685 | | | $ | 181,697 | | | $ | 189,109 | | | $ | 17,663 | | | $ | 812,154 | | | | | | | | | |
| | | | | | | |
|
|
|
For each period indicated, a significant portion of the Company's covered loans were past due, including many that were 90 days or more past due; however, such delinquencies were included in the Company's performance expectations in determining the fair values of covered loans at each acquisition and at subsequent valuation dates. All covered loan cash flows and the timing of such cash flows continue to be estimable and probable of collection and thus accretion income continues to be recognized on these covered assets. As such, the referenced covered loans are not considered nonperforming assets. |
|
Approved credit losses are expected to be reimbursed for covered loans under the appropriate FDIC loss share agreements at either 80 or 95 percent, in accordance with the applicable corresponding loss share agreement. The Company uses a symmetrical accounting approach in recording the loan carrying values and the FDIC receivable on covered loans. A reduction in the loan value, through a provision for loan losses, and an increase in the FDIC receivable, through an adjustment to income, are taken immediately. An increase in the loan value and a reduction in the FDIC receivable results in the reversal of the previously recorded allowance for loan losses and prospective yield adjustment over the remaining life of each asset. |
|
Impaired noncovered loans, segregated by class of loans, as of December 31, 2013 are as follows (dollars in thousands): |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unpaid Principal Balance | | Recorded Investment | | Related Allowance | | Average Recorded Investment(1) | | Interest Income Recognized(2) | | | | | | | | |
| | | | | | | | | | | | |
Impaired loans: | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | |
Construction, land & land development | $ | 501 | | | $ | 269 | | | $ | — | | | $ | 269 | | | $ | — | | | | | | | | | |
| | | | | | | |
Other commercial real estate | 523 | | | 350 | | | — | | | 402 | | | — | | | | | | | | | |
| | | | | | | |
Total commercial real estate | 1,024 | | | 619 | | | — | | | 671 | | | — | | | | | | | | | |
| | | | | | | |
Commercial & industrial | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Owner-occupied real estate | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Total commercial & industrial | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Residential real estate | 869 | | | 869 | | | — | | | 883 | | | — | | | | | | | | | |
| | | | | | | |
Consumer & other | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Subtotal | 1,893 | | | 1,488 | | | — | | | 1,554 | | | — | | | | | | | | | |
| | | | | | | |
With related allowance recorded: | | | | | | | | | | | | | | | | | |
Construction, land & land development | 333 | | | 52 | | | 26 | | | 55 | | | — | | | | | | | | | |
| | | | | | | |
Other commercial real estate | 179 | | | 136 | | | 72 | | | 907 | | | 5 | | | | | | | | | |
| | | | | | | |
Total commercial real estate | 512 | | | 188 | | | 98 | | | 962 | | | 5 | | | | | | | | | |
| | | | | | | |
Commercial & industrial | 234 | | | 234 | | | 117 | | | 341 | | | — | | | | | | | | | |
| | | | | | | |
Owner-occupied real estate | 89 | | | 84 | | | 42 | | | 171 | | | — | | | | | | | | | |
| | | | | | | |
Total commercial & industrial | 323 | | | 318 | | | 159 | | | 512 | | | — | | | | | | | | | |
| | | | | | | |
Residential real estate | 389 | | | 329 | | | 49 | | | 412 | | | 3 | | | | | | | | | |
| | | | | | | |
Consumer & other | 17 | | | 15 | | | 8 | | | 38 | | | — | | | | | | | | | |
| | | | | | | |
Subtotal | 1,241 | | | 850 | | | 314 | | | 1,924 | | | 8 | | | | | | | | | |
| | | | | | | |
Total impaired loans | $ | 3,134 | | | $ | 2,338 | | | $ | 314 | | | $ | 3,478 | | | $ | 8 | | | | | | | | | |
| | | | | | | |
(1) The average recorded investment for troubled debt restructurings was $1.1 million as of December 31, 2013. |
(2) The total interest income recognized on troubled debt restructurings was $7,000 as of December 31, 2013. |
|
|
|
|
|
Impaired noncovered loans, segregated by class of loans, as of December 31, 2012 are as follows (dollars in thousands): |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unpaid Principal Balance | | Recorded Investment | | Related Allowance | | Average Recorded Investment(1) | | Interest Income Recognized(2) | | | | | | | | |
| | | | | | | | | | | | |
Impaired loans: | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | |
Construction, land & land development | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | |
| | | | | | | |
Other commercial real estate | 826 | | | 550 | | | — | | | 584 | | | — | | | | | | | | | |
| | | | | | | |
Total commercial real estate | 826 | | | 550 | | | — | | | 584 | | | — | | | | | | | | | |
| | | | | | | |
Commercial & industrial | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Owner-occupied real estate | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Total commercial & industrial | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Residential real estate | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Consumer & other | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Subtotal | 826 | | | 550 | | | — | | | 584 | | | — | | | | | | | | | |
| | | | | | | |
With related allowance recorded: | | | | | | | | | | | | | | | | | |
Construction, land & land development | 756 | | | 331 | | | 166 | | | 350 | | | — | | | | | | | | | |
| | | | | | | |
Other commercial real estate | 2,325 | | | 1,983 | | | 577 | | | 2,618 | | | 55 | | | | | | | | | |
| | | | | | | |
Total commercial real estate | 3,081 | | | 2,314 | | | 743 | | | 2,968 | | | 55 | | | | | | | | | |
| | | | | | | |
Commercial & industrial | 367 | | | 326 | | | 163 | | | 197 | | | — | | | | | | | | | |
| | | | | | | |
Owner-occupied real estate | 167 | | | 167 | | | 54 | | | 112 | | | 1 | | | | | | | | | |
| | | | | | | |
Total commercial & industrial | 534 | | | 493 | | | 217 | | | 309 | | | 1 | | | | | | | | | |
| | | | | | | |
Residential real estate | 1,464 | | | 1,402 | | | 359 | | | 1,301 | | | 23 | | | | | | | | | |
| | | | | | | |
Consumer & other | 33 | | | 33 | | | 17 | | | 43 | | | 1 | | | | | | | | | |
| | | | | | | |
Subtotal | 5,112 | | | 4,242 | | | 1,336 | | | 4,621 | | | 80 | | | | | | | | | |
| | | | | | | |
Total impaired loans | $ | 5,938 | | | $ | 4,792 | | | $ | 1,336 | | | $ | 5,205 | | | $ | 80 | | | | | | | | | |
| | | | | | | |
(1) The average recorded investment for troubled debt restructurings was $2.4 million as of December 31, 2012. |
(2) The total interest income recognized on troubled debt restructurings was $74,000 as of December 31, 2012. |
|
Impaired noncovered loans, segregated by class of loans, as of December 31, 2011 are as follows (dollars in thousands): |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Unpaid Principal Balance | | Recorded Investment | | Related Allowance | | Average Recorded Investment(1) | | Interest Income Recognized(2) | | | | | | | | |
| | | | | | | | | | | | |
Impaired loans: | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | |
Construction, land & land development | $ | 1,330 | | | $ | 1,054 | | | $ | — | | | $ | 1,058 | | | $ | 1 | | | | | | | | | |
| | | | | | | |
Other commercial real estate | 387 | | | 387 | | | — | | | 84 | | | 1 | | | | | | | | | |
| | | | | | | |
Total commercial real estate | 1,717 | | | 1,441 | | | — | | | 1,142 | | | 2 | | | | | | | | | |
| | | | | | | |
Commercial & industrial | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Owner-occupied real estate | 846 | | | 586 | | | — | | | 2,143 | | | 8 | | | | | | | | | |
| | | | | | | |
Total commercial & industrial | 846 | | | 586 | | | — | | | 2,143 | | | 8 | | | | | | | | | |
| | | | | | | |
Residential real estate | — | | | — | | | — | | | 79 | | | 2 | | | | | | | | | |
| | | | | | | |
Consumer & other | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Subtotal | 2,563 | | | 2,027 | | | — | | | 3,364 | | | 12 | | | | | | | | | |
| | | | | | | |
With related allowance recorded: | | | | | | | | | | | | | | | | | |
Construction, land & land development | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Other commercial real estate | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Total commercial real estate | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Commercial & industrial | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Owner-occupied real estate | 433 | | | 134 | | | 46 | | | 317 | | | — | | | | | | | | | |
| | | | | | | |
Total commercial & industrial | 433 | | | 134 | | | 46 | | | 317 | | | — | | | | | | | | | |
| | | | | | | |
Residential real estate | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Consumer & other | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Subtotal | 433 | | | 134 | | | 46 | | | 317 | | | — | | | | | | | | | |
| | | | | | | |
Total impaired loans | $ | 2,996 | | | $ | 2,161 | | | $ | 46 | | | $ | 3,681 | | | $ | 12 | | | | | | | | | |
| | | | | | | |
(1) The average recorded investment for troubled debt restructurings was $292,000 as of December 31, 2011. |
(2) There was no interest income recognized on troubled debt restructurings as of December 31, 2011. |
|
|
The following table presents the recorded investment in noncovered nonaccrual loans by loan class for the periods indicated (dollars in thousands): |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 31-Dec | | | | | | | | | | | | | | | | | | | | |
| 2013 | | 2012 | | | | | | | | | | | | | | | | | | | | |
Construction, land & land development | $ | 321 | | | $ | 331 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Other commercial real estate | 486 | | | 1,350 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total commercial real estate | 807 | | | 1,681 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial & industrial | 234 | | | 326 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Owner-occupied real estate | 84 | | | 167 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total commercial & industrial | 318 | | | 493 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Residential real estate | 1,125 | | | 1,326 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Consumer & other | 15 | | | 33 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total | $ | 2,265 | | | $ | 3,533 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
The following table presents an analysis of past due noncovered loans, by class of loans, as of December 31, 2013 (dollars in thousands): |
|
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 30 - 89 | | 90 Days or | | Total | | Current | | Total Loans | | Loans > 90 | | | | |
Days | greater | Past Due | Days and | | | | |
Past Due | Past Due | | Accruing | | | | |
Construction, land & land development | $ | 57 | | | $ | 275 | | | $ | 332 | | | $ | 250,711 | | | $ | 251,043 | | | $ | — | | | | | |
| | | |
Other commercial real estate | — | | | — | | | — | | | 550,474 | | | 550,474 | | | — | | | | | |
| | | |
Total commercial real estate | 57 | | | 275 | | | 332 | | | 801,185 | | | 801,517 | | | — | | | | | |
| | | |
Commercial & industrial | 65 | | | 116 | | | 181 | | | 29,964 | | | 30,145 | | | — | | | | | |
| | | |
Owner-occupied real estate | 44 | | | 83 | | | 127 | | | 174,731 | | | 174,858 | | | — | | | | | |
| | | |
Total commercial & industrial | 109 | | | 199 | | | 308 | | | 204,695 | | | 205,003 | | | — | | | | | |
| | | |
Residential real estate | 207 | | | 62 | | | 269 | | | 66,566 | | | 66,835 | | | — | | | | | |
| | | |
Consumer & other | 85 | | | 6 | | | 91 | | | 50,029 | | | 50,120 | | | — | | | | | |
| | | |
Total | $ | 458 | | | $ | 542 | | | $ | 1,000 | | | $ | 1,122,475 | | | $ | 1,123,475 | | | $ | — | | | | | |
| | | |
|
The following table presents an analysis of past due noncovered loans, by class of loans, as of December 31, 2012 (dollars in thousands): |
|
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 30 - 89 | | 90 Days or | | Total | | Current | | Total Loans | | Loans > 90 | | | | |
Days | greater | Past Due | Days and | | | | |
Past Due | Past Due | | Accruing | | | | |
Construction, land & land development | $ | 44 | | | $ | 324 | | | $ | 368 | | | $ | 230,080 | | | $ | 230,448 | | | $ | — | | | | | |
| | | |
Other commercial real estate | 1,298 | | | 763 | | | 2,061 | | | 455,668 | | | 457,729 | | | — | | | | | |
| | | |
Total commercial real estate | 1,342 | | | 1,087 | | | 2,429 | | | 685,748 | | | 688,177 | | | — | | | | | |
| | | |
Commercial & industrial | — | | | 277 | | | 277 | | | 35,113 | | | 35,390 | | | — | | | | | |
| | | |
Owner-occupied real estate | 100 | | | 167 | | | 267 | | | 172,178 | | | 172,445 | | | — | | | | | |
| | | |
Total commercial & industrial | 100 | | | 444 | | | 544 | | | 207,291 | | | 207,835 | | | — | | | | | |
| | | |
Residential real estate | 81 | | | 346 | | | 427 | | | 42,752 | | | 43,179 | | | — | | | | | |
| | | |
Consumer & other | 243 | | | 14 | | | 257 | | | 46,054 | | | 46,311 | | | — | | | | | |
| | | |
Total | $ | 1,766 | | | $ | 1,891 | | | $ | 3,657 | | | $ | 981,845 | | | $ | 985,502 | | | $ | — | | | | | |
| | | |
|
The following table presents an analysis of past due covered loans, by class of loans, as of December 31, 2013 (dollars in thousands): |
|
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 30 - 89 | | 90 Days or | | Total | | Current | | Total Loans | | | | | | | | |
Days | greater | Past Due | | | | | | | | |
Past Due | Past Due | | | | | | | | | |
Construction, land & land development | $ | 1,134 | | | $ | 13,454 | | | $ | 14,588 | | | $ | 20,795 | | | $ | 35,383 | | | | | | | | | |
| | | | | | | |
Other commercial real estate | 3,346 | | | 8,541 | | | 11,887 | | | 55,686 | | | 67,573 | | | | | | | | | |
| | | | | | | |
Total commercial real estate | 4,480 | | | 21,995 | | | 26,475 | | | 76,481 | | | 102,956 | | | | | | | | | |
| | | | | | | |
Commercial & industrial | 139 | | | 587 | | | 726 | | | 3,545 | | | 4,271 | | | | | | | | | |
| | | | | | | |
Owner-occupied real estate | 1,372 | | | 9,634 | | | 11,006 | | | 43,430 | | | 54,436 | | | | | | | | | |
| | | | | | | |
Total commercial & industrial | 1,511 | | | 10,221 | | | 11,732 | | | 46,975 | | | 58,707 | | | | | | | | | |
| | | | | | | |
Residential real estate | 5,548 | | | 7,541 | | | 13,089 | | | 82,151 | | | 95,240 | | | | | | | | | |
| | | | | | | |
Consumer & other | 1 | | | 283 | | | 284 | | | 307 | | | 591 | | | | | | | | | |
| | | | | | | |
Total | $ | 11,540 | | | $ | 40,040 | | | $ | 51,580 | | | $ | 205,914 | | | $ | 257,494 | | | | | | | | | |
| | | | | | | |
|
The following table presents an analysis of past due covered loans, by class of loans, as of December 31, 2012 (dollars in thousands): |
|
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 30 - 89 | | 90 Days or | | Total | | Current | | Total Loans | | | | | | | | |
Days | greater | Past Due | | | | | | | | |
Past Due | Past Due | | | | | | | | | |
Construction, land & land development | $ | 1,628 | | | $ | 58,104 | | | $ | 59,732 | | | $ | 21,556 | | | $ | 81,288 | | | | | | | | | |
| | | | | | | |
Other commercial real estate | 7,297 | | | 49,505 | | | 56,802 | | | 82,208 | | | 139,010 | | | | | | | | | |
| | | | | | | |
Total commercial real estate | 8,925 | | | 107,609 | | | 116,534 | | | 103,764 | | | 220,298 | | | | | | | | | |
| | | | | | | |
Commercial & industrial | 905 | | | 4,414 | | | 5,319 | | | 9,540 | | | 14,859 | | | | | | | | | |
| | | | | | | |
Owner-occupied real estate | 7,421 | | | 19,288 | | | 26,709 | | | 59,903 | | | 86,612 | | | | | | | | | |
| | | | | | | |
Total commercial & industrial | 8,326 | | | 23,702 | | | 32,028 | | | 69,443 | | | 101,471 | | | | | | | | | |
| | | | | | | |
Residential real estate | 10,173 | | | 25,319 | | | 35,492 | | | 106,540 | | | 142,032 | | | | | | | | | |
| | | | | | | |
Consumer & other | 10,375 | | | 477 | | | 10,852 | | | 60 | | | 10,912 | | | | | | | | | |
| | | | | | | |
Total | $ | 37,799 | | | $ | 157,107 | | | $ | 194,906 | | | $ | 279,807 | | | $ | 474,713 | | | | | | | | | |
| | | | | | | |
|
Asset Quality Grades: |
|
The Company assigns loans into risk categories based on relevant information about the ability of borrowers to pay their debts, such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. A loan’s risk grade is assigned at inception based upon the strength of the repayment sources and reassessed periodically throughout the year. Loans over certain dollar thresholds identified as having weaknesses are subject to more frequent review. In addition, the Company’s internal loan review department provides an ongoing, comprehensive, and independent assessment of credit risk within the Company. |
|
Loans are graded on a scale of 1 to 8. A description of the general characteristics of grades 5 and above is as follows: |
|
Watch (Grade 5)—Loans graded Watch are pass credits that have not met performance expectations or that have higher inherent risk characteristics warranting continued supervision and attention. |
|
OAEM (Grade 6)—Loans graded OAEM (other assets especially mentioned) have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the Company's credit position at some future date. OAEM loans are not adversely classified and do not expose the institution to sufficient risk to warrant adverse classification. |
|
Substandard (Grade 7)—Loans classified as substandard are inadequately protected by the current sound worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. |
|
Doubtful (Grade 8)—Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. |
|
The following table presents the risk grades of the noncovered loan portfolio, by class of loans, as of December 31, 2013 (dollars in thousands): |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Construction, Land | | Other | | Commercial & | | Owner-Occupied | | Residential | | Consumer & Other | | Total |
& | Commercial | Industrial | Real Estate | Real Estate |
Land Development | Real Estate | | | |
Pass | $ | 174,700 | | | $ | 528,649 | | | $ | 28,035 | | | $ | 147,510 | | | $ | 55,447 | | | $ | 49,952 | | | $ | 984,293 | |
|
Watch | 71,225 | | | 21,148 | | | 1,502 | | | 24,017 | | | 9,712 | | | 106 | | | 127,710 | |
|
OAEM | 4,780 | | | 191 | | | 365 | | | 2,540 | | | 437 | | | — | | | 8,313 | |
|
Substandard | 338 | | | 486 | | | 243 | | | 791 | | | 1,239 | | | 55 | | | 3,152 | |
|
Doubtful | — | | | — | | | — | | | — | | | — | | | 7 | | | 7 | |
|
Total | $ | 251,043 | | | $ | 550,474 | | | $ | 30,145 | | | $ | 174,858 | | | $ | 66,835 | | | $ | 50,120 | | | $ | 1,123,475 | |
|
|
The following table presents the risk grades of the noncovered loan portfolio, by class of loans, as of December 31, 2012 (dollars in thousands): |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Construction, Land | | Other | | Commercial & | | Owner-Occupied | | Residential | | Consumer & Other | | Total |
& | Commercial | Industrial | Real Estate | Real Estate |
Land Development | Real Estate | | | |
Pass | $ | 157,955 | | | $ | 425,893 | | | $ | 33,097 | | | $ | 154,729 | | | $ | 36,039 | | | $ | 45,901 | | | $ | 853,614 | |
|
Watch | 65,540 | | | 28,259 | | | 1,789 | | | 17,243 | | | 5,403 | | | 246 | | | 118,480 | |
|
OAEM | 6,579 | | | 300 | | | 30 | | | 237 | | | 73 | | | 26 | | | 7,245 | |
|
Substandard | 374 | | | 3,277 | | | 474 | | | 236 | | | 1,664 | | | 138 | | | 6,163 | |
|
Doubtful | — | | | — | | | — | | | — | | | — | | | — | | | — | |
|
Total | $ | 230,448 | | | $ | 457,729 | | | $ | 35,390 | | | $ | 172,445 | | | $ | 43,179 | | | $ | 46,311 | | | $ | 985,502 | |
|
|
Classifications on covered loans are based upon the borrower's ability to pay the current unpaid principal balance without regard to loss share coverage or the net carrying value of the loan on the Company's balance sheet. Because the values shown in this table are based on each loan's estimated cash flows, any expected losses should be covered by a combination of the specific reserves established in the allowance for losses on covered loans plus the discounts to the unpaid principal balances reflected in the recorded investment of each loan. |
|
The following table presents the risk grades of the covered loan portfolio, by class of loans, as of December 31, 2013 (dollars in thousands): |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Construction, Land | | Other | | Commercial & | | Owner-Occupied | | Residential | | Consumer & Other | | Total |
& | Commercial | Industrial | Real Estate | Real Estate |
Land Development | Real Estate | | | |
Pass | $ | 2,833 | | | $ | 7,563 | | | $ | 828 | | | $ | 15,491 | | | $ | 42,507 | | | $ | 239 | | | $ | 69,461 | |
|
Watch | 7,319 | | | 14,189 | | | 651 | | | 9,780 | | | 16,221 | | | 48 | | | 48,208 | |
|
OAEM | 969 | | | 15,027 | | | 39 | | | 6,702 | | | 2,473 | | | 1 | | | 25,211 | |
|
Substandard | 23,717 | | | 29,315 | | | 2,622 | | | 22,463 | | | 33,452 | | | 300 | | | 111,869 | |
|
Doubtful | 545 | | | 1,479 | | | 131 | | | — | | | 587 | | | 3 | | | 2,745 | |
|
Total | $ | 35,383 | | | $ | 67,573 | | | $ | 4,271 | | | $ | 54,436 | | | $ | 95,240 | | | $ | 591 | | | $ | 257,494 | |
|
|
The following table presents the risk grades of the covered loan portfolio, by class of loans, as of December 31, 2012 (dollars in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Construction, Land | | Other | | Commercial & | | Owner-Occupied | | Residential | | Consumer & Other | | Total |
& | Commercial | Industrial | Real Estate | Real Estate |
Land Development | Real Estate | | | |
Pass | $ | 7,219 | | | $ | 20,243 | | | $ | 4,686 | | | $ | 31,824 | | | $ | 58,414 | | | $ | 380 | | | $ | 122,766 | |
|
Watch | 8,482 | | | 20,363 | | | 1,231 | | | 16,633 | | | 17,975 | | | 159 | | | 64,843 | |
|
OAEM | 718 | | | 23,121 | | | 789 | | | 10,063 | | | 5,708 | | | 8 | | | 40,407 | |
|
Substandard | 64,869 | | | 75,283 | | | 4,045 | | | 28,092 | | | 54,681 | | | 9,960 | | | 236,930 | |
|
Doubtful | — | | | — | | | 4,108 | | | — | | | 5,254 | | | 405 | | | 9,767 | |
|
Total | $ | 81,288 | | | $ | 139,010 | | | $ | 14,859 | | | $ | 86,612 | | | $ | 142,032 | | | $ | 10,912 | | | $ | 474,713 | |
|
|
Total noncovered troubled debt restructurings (TDRs) were $947,000 as of December 31, 2013 and $2.2 million at December 31, 2012. Acquired and covered impaired loans modified post-acquisition are not removed from their accounting pool and accounted for as TDRs, even if those loans would otherwise be deemed TDRs. |
|
The table below details the noncovered TDRs occurring during the years ending December 31, 2013 and 2012 (dollars in thousands): |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| December 31, 2013 | | December 31, 2012 | | | | | | |
| Number of Contracts | | Pre-Modification Outstanding Recorded Investment | | Post-Modification Outstanding Recorded Investment | | Number of Contracts | | Pre-Modification Outstanding Recorded Investment | | Post-Modification Outstanding Recorded Investment | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | |
Construction, land & land development | — | | | $ | — | | | $ | — | | | 1 | | | $ | 7 | | | $ | 7 | | | | | | | |
| | | | | |
Other commercial real estate | — | | | — | | | — | | | 1 | | | 1,182 | | | 1,182 | | | | | | | |
| | | | | |
Total commercial real estate | — | | | — | | | — | | | 2 | | | 1,189 | | | 1,189 | | | | | | | |
| | | | | |
Commercial & industrial | — | | | — | | | — | | | 1 | | | 5 | | | 5 | | | | | | | |
| | | | | |
Owner-occupied real estate | — | | | — | | | — | | | — | | | — | | | — | | | | | | | |
| | | | | |
Total commercial & industrial | — | | | — | | | — | | | 1 | | | 5 | | | 5 | | | | | | | |
| | | | | |
Residential real estate | — | | | — | | | — | | | 2 | | | 977 | | | 977 | | | | | | | |
| | | | | |
Consumer & Other | — | | | — | | | — | | | — | | | — | | | — | | | | | | | |
| | | | | |
Total Loans | — | | | $ | — | | | $ | — | | | 5 | | | $ | 2,171 | | | $ | 2,171 | | | | | | | |
| | | | | |
|
During the year ending December 31, 2013, there were no noncovered loans modified under the terms of a TDR. During the year ended December 31, 2012, modifications of noncovered loans under the terms of a TDR included reductions in the stated interest rate and timing of required periodic payments. |
|
The table below details the noncovered TDRs that subsequently defaulted within twelve months of modification |
during the years ending December 31, 2013 and 2012 (dollars in thousands): |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| For the Years Ended December 31 | | | | | | | | | | | | | | |
| 2013 | | 2012 | | | | | | | | | | | | | | |
| Number of Contracts | | Recorded Investment | | Number of Contracts | | Recorded Investment | | | | | | | | | | | | | | |
Troubled Debt Restructurings That Subsequently Defaulted | | | | | | | | | | | | | | | | | | | | | |
Construction, land & land development | — | | | $ | — | | | — | | | $ | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Other commercial real estate | — | | | — | | | 1 | | | 260 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Total commercial real estate | — | | | — | | | 1 | | | 260 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Commercial & industrial | — | | | — | | | — | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Owner-occupied real estate | — | | | — | | | — | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Total commercial & industrial | — | | | — | | | — | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Residential real estate | — | | | — | | | — | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Consumer & Other | — | | | — | | | — | | | — | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
Total Loans | — | | | $ | — | | | 1 | | | $ | 260 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | |
|
During the year ended December 31, 2013, there were no noncovered TDRs that subsequently defaulted within twelve months of their modification date. During the year ended December 31, 2012, there was one noncovered TDR totaling $260,000 that subsequently defaulted within twelve months of its modification date. |
|
The Company allocated $14,000 and $330,000 to the noncovered allowance for loan losses for identified TDRs as of December 31, 2013 and 2012, respectively. The Company had no unfunded commitment obligation to lend to a customer that had undergone a troubled debt restructuring as of December 31, 2013 and 2012. |