Allowance for Loan Losses (ALL) | 6 Months Ended |
Jun. 30, 2014 |
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 and covered loans for the periods indicated (dollars in thousands): |
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| Three Months Ended June 30 | | | | |
| 2014 | | 2013 | | | | |
| Noncovered Loans | | Covered Loans | | Total | | Noncovered Loans | | Covered Loans | | Total | | | | |
| | | | | | | | | |
Balance, beginning of period | $ | 16,858 | | | $ | 19,182 | | | $ | 36,040 | | | $ | 15,122 | | | $ | 28,706 | | | $ | 43,828 | | | | | |
| | | |
Loans charged-off | (79 | ) | | (4,881 | ) | | (4,960 | ) | | (8 | ) | | (8,710 | ) | | (8,718 | ) | | | | |
Recoveries of loans previously charged-off | 106 | | | 3,326 | | | 3,432 | | | 26 | | | 5,216 | | | 5,242 | | | | | |
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Net recoveries (charge-offs) | 27 | | | (1,555 | ) | | (1,528 | ) | | 18 | | | (3,494 | ) | | (3,476 | ) | | | | |
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Provision for loan losses | 1,000 | | | 95 | | | 1,095 | | | 665 | | | (7,582 | ) | | (6,917 | ) | | | | |
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Amount attributable to FDIC loss share agreements | — | | | (394 | ) | | (394 | ) | | — | | | 6,294 | | | 6,294 | | | | | |
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Total provision for loan losses charged to operations | 1,000 | | | (299 | ) | | 701 | | | 665 | | | (1,288 | ) | | (623 | ) | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | — | | | 394 | | | 394 | | | — | | | (6,294 | ) | | (6,294 | ) | | | | |
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Balance, end of period | $ | 17,885 | | | $ | 17,722 | | | $ | 35,607 | | | $ | 15,805 | | | $ | 17,630 | | | $ | 33,435 | | | | | |
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| Six Months Ended June 30 | | | | |
| 2014 | | 2013 | | | | |
| Noncovered Loans | | Covered Loans | | Total | | Noncovered Loans | | Covered Loans | | Total | | | | |
| | | | | | | | | |
Balance, beginning of period | $ | 16,656 | | | $ | 17,409 | | | $ | 34,065 | | | $ | 14,660 | | | $ | 55,478 | | | $ | 70,138 | | | | | |
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Loans charged-off | (215 | ) | | (11,551 | ) | | (11,766 | ) | | (20 | ) | | (19,926 | ) | | (19,946 | ) | | | | |
Recoveries of loans previously charged-off | 444 | | | 8,557 | | | 9,001 | | | 150 | | | 12,225 | | | 12,375 | | | | | |
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Net recoveries (charge-offs) | 229 | | | (2,994 | ) | | (2,765 | ) | | 130 | | | (7,701 | ) | | (7,571 | ) | | | | |
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Provision for loan losses | 1,000 | | | 3,307 | | | 4,307 | | | 1,015 | | | (30,147 | ) | | (29,132 | ) | | | | |
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Amount attributable to FDIC loss share agreements | — | | | (3,016 | ) | | (3,016 | ) | | — | | | 26,474 | | | 26,474 | | | | | |
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Total provision for loan losses charged to operations | 1,000 | | | 291 | | | 1,291 | | | 1,015 | | | (3,673 | ) | | (2,658 | ) | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | — | | | 3,016 | | | 3,016 | | | — | | | (26,474 | ) | | (26,474 | ) | | | | |
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Balance, end of period | $ | 17,885 | | | $ | 17,722 | | | $ | 35,607 | | | $ | 15,805 | | | $ | 17,630 | | | $ | 33,435 | | | | | |
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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 | | | | | | | | |
Three Months Ended | | | | | | | | | | | | |
June 30, 2014 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 11,726 | | | $ | 2,996 | | | $ | 1,033 | | | $ | 1,103 | | | $ | 16,858 | | | | | | | | | |
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Charge-offs | — | | | (40 | ) | | (1 | ) | | (38 | ) | | (79 | ) | | | | | | | | |
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Recoveries | 8 | | | 68 | | | 22 | | | 8 | | | 106 | | | | | | | | | |
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Provision | 1,007 | | | 355 | | | 26 | | | (388 | ) | | 1,000 | | | | | | | | | |
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Ending balance | $ | 12,741 | | | $ | 3,379 | | | $ | 1,080 | | | $ | 685 | | | $ | 17,885 | | | | | | | | | |
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Six Months Ended | | | | | | | | | | | | | | | | | |
June 30, 2014 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 11,163 | | | $ | 3,139 | | | $ | 1,015 | | | $ | 1,339 | | | $ | 16,656 | | | | | | | | | |
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Charge-offs | (65 | ) | | (105 | ) | | (1 | ) | | (44 | ) | | (215 | ) | | | | | | | | |
Recoveries | 290 | | | 122 | | | 24 | | | 8 | | | 444 | | | | | | | | | |
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Provision | 1,353 | | | 223 | | | 42 | | | (618 | ) | | 1,000 | | | | | | | | | |
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Ending balance | $ | 12,741 | | | $ | 3,379 | | | $ | 1,080 | | | $ | 685 | | | $ | 17,885 | | | | | | | | | |
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Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 196 | | | $ | 128 | | | $ | 54 | | | $ | 7 | | | $ | 385 | | | | | | | | | |
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Collectively evaluated for impairment | 12,545 | | | 3,251 | | | 1,026 | | | 678 | | | 17,500 | | | | | | | | | |
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Total ending allowance balance | $ | 12,741 | | | $ | 3,379 | | | $ | 1,080 | | | $ | 685 | | | $ | 17,885 | | | | | | | | | |
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Loans: | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 390 | | | $ | 301 | | | $ | 1,232 | | | $ | 15 | | | $ | 1,938 | | | | | | | | | |
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Loans collectively evaluated for impairment | 887,553 | | | 222,383 | | | 74,451 | | | 43,979 | | | 1,228,366 | | | | | | | | | |
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Total loans | $ | 887,943 | | | $ | 222,684 | | | $ | 75,683 | | | $ | 43,994 | | | $ | 1,230,304 | | | | | | | | | |
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Year Ended | | | | | | | | | | | | | | | | | |
December 31, 2013 | | | | | | | | | | | | | | | | | |
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 | | | | | | | | |
Three Months Ended | | | | | | | | | | | | |
June 30, 2013 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 10,077 | | | $ | 3,432 | | | $ | 972 | | | $ | 641 | | | $ | 15,122 | | | | | | | | | |
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Charge-offs | — | | | — | | | (1 | ) | | (7 | ) | | (8 | ) | | | | | | | | |
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Recoveries | 23 | | | 1 | | | 1 | | | 1 | | | 26 | | | | | | | | | |
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Provision | 277 | | | (8 | ) | | (122 | ) | | 518 | | | 665 | | | | | | | | | |
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Ending balance | $ | 10,377 | | | $ | 3,425 | | | $ | 850 | | | $ | 1,153 | | | $ | 15,805 | | | | | | | | | |
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Six Months Ended | | | | | | | | | | | | | | | | | |
June 30, 2013 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 9,495 | | | $ | 3,103 | | | $ | 1,050 | | | $ | 1,012 | | | $ | 14,660 | | | | | | | | | |
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Charge-offs | (1 | ) | | (10 | ) | | (1 | ) | | (8 | ) | | (20 | ) | | | | | | | | |
Recoveries | 137 | | | 6 | | | 2 | | | 5 | | | 150 | | | | | | | | | |
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Provision | 746 | | | 326 | | | (201 | ) | | 144 | | | 1,015 | | | | | | | | | |
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Ending balance | $ | 10,377 | | | $ | 3,425 | | | $ | 850 | | | $ | 1,153 | | | $ | 15,805 | | | | | | | | | |
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Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 638 | | | $ | 224 | | | $ | 74 | | | $ | 23 | | | $ | 959 | | | | | | | | | |
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Collectively evaluated for impairment | 9,739 | | | 3,201 | | | 776 | | | 1,130 | | | 14,846 | | | | | | | | | |
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Total ending allowance balance | $ | 10,377 | | | $ | 3,425 | | | $ | 850 | | | $ | 1,153 | | | $ | 15,805 | | | | | | | | | |
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Loans: | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 1,790 | | | $ | 448 | | | $ | 1,383 | | | $ | 47 | | | $ | 3,668 | | | | | | | | | |
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Loans collectively evaluated for impairment | 802,586 | | | 220,112 | | | 52,579 | | | 44,177 | | | 1,119,454 | | | | | | | | | |
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Total loans | $ | 804,376 | | | $ | 220,560 | | | $ | 53,962 | | | $ | 44,224 | | | $ | 1,123,122 | | | | | | | | | |
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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 | | | | | | | | |
Three Months Ended | | | | | | | | | | | | |
June 30, 2014 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 12,107 | | | $ | 4,048 | | | $ | 2,986 | | | $ | 41 | | | $ | 19,182 | | | | | | | | | |
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Charge-offs | (3,267 | ) | | (1,368 | ) | | (246 | ) | | — | | | (4,881 | ) | | | | | | | | |
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Recoveries | 2,459 | | | 533 | | | 318 | | | 16 | | | 3,326 | | | | | | | | | |
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Provision for loan losses before amount attributable to FDIC loss share agreements | (693 | ) | | (45 | ) | | 815 | | | 18 | | | 95 | | | | | | | | | |
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Amount attributable to FDIC loss share agreements | 400 | | | (20 | ) | | (764 | ) | | (10 | ) | | (394 | ) | | | | | | | | |
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Total provision for loan losses charged to operations | (293 | ) | | (65 | ) | | 51 | | | 8 | | | (299 | ) | | | | | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | (400 | ) | | 20 | | | 764 | | | 10 | | | 394 | | | | | | | | | |
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Ending balance | $ | 10,606 | | | $ | 3,168 | | | $ | 3,873 | | | $ | 75 | | | $ | 17,722 | | | | | | | | | |
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Six Months Ended | | | | | | | | | | | | | | | | | |
June 30, 2014 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 11,226 | | | $ | 3,630 | | | $ | 2,481 | | | $ | 72 | | | $ | 17,409 | | | | | | | | | |
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Charge-offs | (8,184 | ) | | (2,701 | ) | | (656 | ) | | (10 | ) | | (11,551 | ) | | | | | | | | |
Recoveries | 5,834 | | | 1,651 | | | 1,016 | | | 56 | | | 8,557 | | | | | | | | | |
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Provision for loan losses before amount attributable to FDIC loss share agreements | 1,730 | | | 588 | | | 1,032 | | | (43 | ) | | 3,307 | | | | | | | | | |
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Amount attributable to FDIC loss share agreements | (1,578 | ) | | (536 | ) | | (941 | ) | | 39 | | | (3,016 | ) | | | | | | | | |
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Total provision for loan losses charged to operations | 152 | | | 52 | | | 91 | | | (4 | ) | | 291 | | | | | | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | 1,578 | | | 536 | | | 941 | | | (39 | ) | | 3,016 | | | | | | | | | |
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Ending balance | $ | 10,606 | | | $ | 3,168 | | | $ | 3,873 | | | $ | 75 | | | $ | 17,722 | | | | | | | | | |
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Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 2,945 | | | $ | 879 | | | $ | 968 | | | $ | — | | | $ | 4,792 | | | | | | | | | |
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Collectively evaluated for impairment | 7,661 | | | 2,289 | | | 2,905 | | | 75 | | | 12,930 | | | | | | | | | |
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Total ending allowance balance | $ | 10,606 | | | $ | 3,168 | | | $ | 3,873 | | | $ | 75 | | | $ | 17,722 | | | | | | | | | |
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Loans: | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 29,933 | | | $ | 12,749 | | | $ | 1,999 | | | $ | 3 | | | $ | 44,684 | | | | | | | | | |
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Loans collectively evaluated for impairment | 48,130 | | | 33,730 | | | 84,372 | | | 386 | | | 166,618 | | | | | | | | | |
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Total loans | $ | 78,063 | | | $ | 46,479 | | | $ | 86,371 | | | $ | 389 | | | $ | 211,302 | | | | | | | | | |
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Year Ended | | | | | | | | | | | | | | | | | |
December 31, 2013 | | | | | | | | | | | | | | | | | |
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 | | | | | | | | |
Three Months Ended | | | | | | | | | | | | |
June 30, 2013 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 13,902 | | | $ | 5,093 | | | $ | 9,242 | | | $ | 469 | | | $ | 28,706 | | | | | | | | | |
| | | | | | | |
Charge-offs | (5,899 | ) | | (1,379 | ) | | (1,406 | ) | | (26 | ) | | (8,710 | ) | | | | | | | | |
Recoveries | 3,828 | | | 1,044 | | | 125 | | | 219 | | | 5,216 | | | | | | | | | |
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Provision for loan losses before amount attributable to FDIC loss share agreements | (1,217 | ) | | (1,087 | ) | | (4,696 | ) | | (582 | ) | | (7,582 | ) | | | | | | | | |
Amount attributable to FDIC loss share agreements | 862 | | | 1,007 | | | 3,913 | | | 512 | | | 6,294 | | | | | | | | | |
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Total provision for loan losses charged to operations | (355 | ) | | (80 | ) | | (783 | ) | | (70 | ) | | (1,288 | ) | | | | | | | | |
Provision for loan losses recorded through the FDIC loss share receivable | (862 | ) | | (1,007 | ) | | (3,913 | ) | | (512 | ) | | (6,294 | ) | | | | | | | | |
Ending balance | $ | 10,614 | | | $ | 3,671 | | | $ | 3,265 | | | $ | 80 | | | $ | 17,630 | | | | | | | | | |
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Six Months Ended | | | | | | | | | | | | | | | | | |
June 30, 2013 | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 32,642 | | | $ | 993 | | | $ | 21,189 | | | $ | 654 | | | $ | 55,478 | | | | | | | | | |
| | | | | | | |
Charge-offs | (15,066 | ) | | (2,778 | ) | | (1,861 | ) | | (221 | ) | | (19,926 | ) | | | | | | | | |
Recoveries | 7,059 | | | 3,335 | | | 1,612 | | | 219 | | | 12,225 | | | | | | | | | |
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Provision for loan losses before benefit attributable to FDIC loss share agreements | (14,021 | ) | | 2,121 | | | (17,675 | ) | | (572 | ) | | (30,147 | ) | | | | | | | | |
| | | | | | | |
Amount attributable to FDIC loss share agreements | 12,313 | | | (1,862 | ) | | 15,520 | | | 503 | | | 26,474 | | | | | | | | | |
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Total provision for loan losses charged to operations | (1,708 | ) | | 259 | | | (2,155 | ) | | (69 | ) | | (3,673 | ) | | | | | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | (12,313 | ) | | 1,862 | | | (15,520 | ) | | (503 | ) | | (26,474 | ) | | | | | | | | |
| | | | | | | |
Ending balance | $ | 10,614 | | | $ | 3,671 | | | $ | 3,265 | | | $ | 80 | | | $ | 17,630 | | | | | | | | | |
| | | | | | | |
Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 8,720 | | | $ | 3,087 | | | $ | 2,725 | | | $ | 70 | | | $ | 14,602 | | | | | | | | | |
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Collectively evaluated for impairment | 1,894 | | | 584 | | | 540 | | | 10 | | | 3,028 | | | | | | | | | |
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Total ending allowance balance | $ | 10,614 | | | $ | 3,671 | | | $ | 3,265 | | | $ | 80 | | | $ | 17,630 | | | | | | | | | |
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Loans: | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 74,956 | | | $ | 20,625 | | | $ | 13,504 | | | $ | 271 | | | $ | 109,356 | | | | | | | | | |
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Loans collectively evaluated for impairment | 67,950 | | | 55,002 | | | 100,532 | | | 843 | | | 224,327 | | | | | | | | | |
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Total loans | $ | 142,906 | | | $ | 75,627 | | | $ | 114,036 | | | $ | 1,114 | | | $ | 333,683 | | | | | | | | | |
| | | | | | | |
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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 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. Subsequent decreases in the amount of cash expected to be collected on covered loans results in a provision for loan losses and an increase in the FDIC receivable, through an adjustment to income, which are taken immediately. Subsequent increases in the amount of cash expected to be collected on covered loans results in the reversal of any previously-recorded provision for loan losses and related allowance for loan losses and a downward adjustment to the FDIC receivable, or a prospective increase in the accretable discount on the covered loans if no provision for loan losses had been recorded. |
|
Impaired noncovered loans, segregated by class of loans, are presented in the following table (dollars in thousands): |
| | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, 2014 | | December 31, 2013 | | | | |
| Unpaid Principal Balance | | Recorded Investment | | Related Allowance | | Unpaid Principal Balance | | Recorded Investment | | Related Allowance | | | | |
| | | | | | | | |
Impaired loans: | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | |
Construction, land & land development | $ | — | | | $ | — | | | $ | — | | | $ | 501 | | | $ | 269 | | | $ | — | | | | | |
| | | |
Other commercial real estate | — | | | — | | | — | | | 523 | | | 350 | | | — | | | | | |
| | | |
Total commercial real estate | — | | | — | | | — | | | 1,024 | | | 619 | | | — | | | | | |
| | | |
Commercial & industrial | — | | | — | | | — | | | — | | | — | | | — | | | | | |
| | | |
Owner-occupied real estate | — | | | — | | | — | | | — | | | — | | | — | | | | | |
| | | |
Total commercial & industrial | — | | | — | | | — | | | — | | | — | | | — | | | | | |
| | | |
Residential real estate | 875 | | | 875 | | | — | | | 869 | | | 869 | | | — | | | | | |
| | | |
Consumer & other | — | | | — | | | — | | | — | | | — | | | — | | | | | |
| | | |
Subtotal | 875 | | | 875 | | | — | | | 1,893 | | | 1,488 | | | — | | | | | |
| | | |
With related allowance recorded: | | | | | | | | | | | | | | | |
Construction, land & land development | 82 | | | 82 | | | 41 | | | 333 | | | 52 | | | 26 | | | | | |
| | | |
Other commercial real estate | 483 | | | 308 | | | 155 | | | 179 | | | 136 | | | 72 | | | | | |
| | | |
Total commercial real estate | 565 | | | 390 | | | 196 | | | 512 | | | 188 | | | 98 | | | | | |
| | | |
Commercial & industrial | 137 | | | 137 | | | 46 | | | 234 | | | 234 | | | 117 | | | | | |
| | | |
Owner-occupied real estate | 169 | | | 164 | | | 82 | | | 89 | | | 84 | | | 42 | | | | | |
| | | |
Total commercial & industrial | 306 | | | 301 | | | 128 | | | 323 | | | 318 | | | 159 | | | | | |
| | | |
Residential real estate | 394 | | | 357 | | | 54 | | | 316 | | | 256 | | | 38 | | | | | |
| | | |
Consumer & other | 17 | | | 15 | | | 7 | | | 17 | | | 15 | | | 8 | | | | | |
| | | |
Subtotal | 1,282 | | | 1,063 | | | 385 | | | 1,168 | | | 777 | | | 303 | | | | | |
| | | |
Total impaired loans | $ | 2,157 | | | $ | 1,938 | | | $ | 385 | | | $ | 3,061 | | | $ | 2,265 | | | $ | 303 | | | | | |
| | | |
|
The following table presents information related to the average recorded investment and interest income recognized on impaired loans, for the periods indicated (dollars in thousands): |
|
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 30-Jun-14 | | 30-Jun-13 | | | | | | | | | | | | |
| Average Recorded Investment (1) | | Interest Income Recognized (2) | | Average Recorded Investment (3) | | Interest Income Recognized (4) | | | | | | | | | | | | |
Three Months Ended | | | | | | | | | | | | | | | |
Construction, land & land development | $ | 82 | | | $ | — | | | $ | 331 | | | $ | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Other commercial real estate | 464 | | | 9 | | | 1,393 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total commercial real estate | 546 | | | 9 | | | 1,724 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Commercial & industrial | 191 | | | 2 | | | 364 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Owner-occupied real estate | 164 | | | — | | | 84 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total commercial & industrial | 355 | | | 2 | | | 448 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Residential real estate | 1,238 | | | 6 | | | 1,292 | | | 1 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Consumer & other | 18 | | | — | | | 43 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total | $ | 2,157 | | | $ | 17 | | | $ | 3,507 | | | $ | 1 | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Six Months Ended | | | | | | | | | | | | | | | | | | | |
Construction, land & land development | $ | 301 | | | $ | 44 | | | $ | 329 | | | $ | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Other commercial real estate | 497 | | | 9 | | | 1,449 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total commercial real estate | 798 | | | 53 | | | 1,778 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Commercial & industrial | 215 | | | 2 | | | 390 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Owner-occupied real estate | 144 | | | — | | | 216 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total commercial & industrial | 359 | | | 2 | | | 606 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Residential real estate | 1,230 | | | 6 | | | 1,382 | | | 2 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Consumer & other | 19 | | | 3 | | | 48 | | | — | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total | $ | 2,406 | | | $ | 64 | | | $ | 3,814 | | | $ | 2 | | | | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) The average recorded investment for troubled debt restructurings for the three and six months ended June 30, 2014 was $870,000 and $869,000, respectively. |
(2) There was no interest income recognized on troubled debt restructurings for the three and six months ended June 30, 2014. |
(3) The average recorded investment for troubled debt restructurings for the three and six months ended June 30, 2013 was $890,000 and $887,000, respectively. |
(4) There was no interest income recognized on troubled debt restructurings for the three and six months ended June 30, 2013. |
|
The following table presents the recorded investment in noncovered nonaccrual loans by loan class at the dates indicated (dollars in thousands): |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| June 30, 2014 | | December 31, 2013 | | | | | | | | | | | | | | | | | | | | |
Construction, land & land development | $ | 82 | | | $ | 321 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Other commercial real estate | 308 | | | 486 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total commercial real estate | 390 | | | 807 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial & industrial | 137 | | | 234 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Owner-occupied real estate | 164 | | | 84 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total commercial & industrial | 301 | | | 318 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Residential real estate | 1,232 | | | 1,125 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Consumer & other | 15 | | | 15 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total | $ | 1,938 | | | $ | 2,265 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
|
The following table presents an analysis of past due noncovered loans, by class of loans, as of June 30, 2014 (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 | $ | 141 | | | $ | 60 | | | $ | 201 | | | $ | 271,324 | | | $ | 271,525 | | | $ | — | | | | | |
| | | |
Other commercial real estate | — | | | — | | | — | | | 616,418 | | | 616,418 | | | — | | | | | |
| | | |
Total commercial real estate | 141 | | | 60 | | | 201 | | | 887,742 | | | 887,943 | | | — | | | | | |
| | | |
Commercial & industrial | 17 | | | 108 | | | 125 | | | 55,430 | | | 55,555 | | | — | | | | | |
| | | |
Owner-occupied real estate | — | | | 164 | | | 164 | | | 166,965 | | | 167,129 | | | — | | | | | |
| | | |
Total commercial & industrial | 17 | | | 272 | | | 289 | | | 222,395 | | | 222,684 | | | — | | | | | |
| | | |
Residential real estate | 66 | | | 956 | | | 1,022 | | | 74,661 | | | 75,683 | | | — | | | | | |
| | | |
Consumer & other | 33 | | | 11 | | | 44 | | | 43,950 | | | 43,994 | | | — | | | | | |
| | | |
Total | $ | 257 | | | $ | 1,299 | | | $ | 1,556 | | | $ | 1,228,748 | | | $ | 1,230,304 | | | $ | — | | | | | |
| | | |
|
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 covered loans, by class of loans, as of June 30, 2014 (dollars in thousands): |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| 30 - 89 | | 90 Days or | | Total | | Current | | Total Loans | | | | | | | | |
Days | Greater | Past Due | | | | | | | | |
Past Due | Past Due | | | | | | | | | |
Construction, land & land development | $ | 454 | | | $ | 3,179 | | | $ | 3,633 | | | $ | 20,218 | | | $ | 23,851 | | | | | | | | | |
| | | | | | | |
Other commercial real estate | 3,583 | | | 3,877 | | | 7,460 | | | 46,752 | | | 54,212 | | | | | | | | | |
| | | | | | | |
Total commercial real estate | 4,037 | | | 7,056 | | | 11,093 | | | 66,970 | | | 78,063 | | | | | | | | | |
| | | | | | | |
Commercial & industrial | — | | | 615 | | | 615 | | | 2,455 | | | 3,070 | | | | | | | | | |
| | | | | | | |
Owner-occupied real estate | 1,067 | | | 2,143 | | | 3,210 | | | 40,199 | | | 43,409 | | | | | | | | | |
| | | | | | | |
Total commercial & industrial | 1,067 | | | 2,758 | | | 3,825 | | | 42,654 | | | 46,479 | | | | | | | | | |
| | | | | | | |
Residential real estate | 2,308 | | | 5,868 | | | 8,176 | | | 78,195 | | | 86,371 | | | | | | | | | |
| | | | | | | |
Consumer & other | 14 | | | 204 | | | 218 | | | 171 | | | 389 | | | | | | | | | |
| | | | | | | |
Total | $ | 7,426 | | | $ | 15,886 | | | $ | 23,312 | | | $ | 187,990 | | | $ | 211,302 | | | | | | | | | |
| | | | | | | |
|
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 | | | | | | | | | |
| | | | | | | |
|
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. |
|
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|
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|
|
|
|
|
|
|
The following table presents the risk grades of the noncovered loan portfolio, by class of loans, as of June 30, 2014 (dollars in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Construction, Land | | Other | | Commercial & | | Owner-Occupied | | Residential | | Consumer & Other | | Total |
& | Commercial | Industrial | Real Estate | Real Estate |
Land Development | Real Estate | | | |
Pass | $ | 224,726 | | | $ | 590,730 | | | $ | 51,431 | | | $ | 141,927 | | | $ | 64,372 | | | $ | 43,904 | | | $ | 1,117,090 | |
|
Watch | 42,215 | | | 25,352 | | | 3,482 | | | 23,427 | | | 9,668 | | | 69 | | | 104,213 | |
|
OAEM | 688 | | | 28 | | | 190 | | | 973 | | | 230 | | | — | | | 2,109 | |
|
Substandard | 3,896 | | | 308 | | | 452 | | | 768 | | | 1,413 | | | 21 | | | 6,858 | |
|
Doubtful | — | | | — | | | — | | | 34 | | | — | | | — | | | 34 | |
|
Total | $ | 271,525 | | | $ | 616,418 | | | $ | 55,555 | | | $ | 167,129 | | | $ | 75,683 | | | $ | 43,994 | | | $ | 1,230,304 | |
|
|
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 | |
|
|
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 the table below 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 loan 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 June 30, 2014 (dollars in thousands): |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Construction, Land | | Other | | Commercial & | | Owner-Occupied | | Residential | | Consumer & Other | | Total |
& | Commercial | Industrial | Real Estate | Real Estate |
Land Development | Real Estate | | | |
Pass | $ | 8,295 | | | $ | 4,782 | | | $ | 944 | | | $ | 11,551 | | | $ | 39,566 | | | $ | 146 | | | $ | 65,284 | |
|
Watch | 5,176 | | | 11,899 | | | 461 | | | 15,707 | | | 11,583 | | | 21 | | | 44,847 | |
|
OAEM | 477 | | | 10,253 | | | 51 | | | 3,333 | | | 4,260 | | | 1 | | | 18,375 | |
|
Substandard | 8,402 | | | 26,011 | | | 554 | | | 12,388 | | | 27,880 | | | 109 | | | 75,344 | |
|
Doubtful | 1,501 | | | 1,267 | | | 1,060 | | | 430 | | | 3,082 | | | 112 | | | 7,452 | |
|
Total | $ | 23,851 | | | $ | 54,212 | | | $ | 3,070 | | | $ | 43,409 | | | $ | 86,371 | | | $ | 389 | | | $ | 211,302 | |
|
|
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 | |
|
|
Total noncovered troubled debt restructurings (TDRs) were $875,000 at June 30, 2014 and $869,000 at December 31, 2013. The Company had no unfunded commitment obligations to lend to customers that underwent troubled debt restructuring at June 30, 2014 and December 31, 2013. Acquired and covered impaired loans modified post-acquisition are not removed from their accounting pools and accounted for as TDRs, even if those loans would otherwise be deemed TDRs. |
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There was no noncovered allowance for loan losses for identified TDRs during the three and six months ended June 30, 2014 and June 30, 2013. During the three and six months ended June 30, 2014 and 2013, there were no noncovered loans modified under the terms of a TDR. During the three and six months ended June 30, 2014 and 2013, there were no noncovered TDRs that subsequently defaulted within twelve months of their modification dates. |
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