Allowance for Loan Losses (ALL) | 9 Months Ended |
Sep. 30, 2014 |
Allowance for Loan Losses All [Abstract] | ' |
Allowance for Loan Losses (ALL) | ' |
Note 6: Allowance for Loan Losses (ALL) |
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The following tables present the changes in allowance for loan losses for the periods indicated (dollars in thousands): |
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| Three Months Ended September 30 | | | | | | | | |
| 2014 | | 2013 | | | | | | | | |
| Organic Loans | | Purchased Credit Impaired Loans | | Total | | Organic Loans | | Purchased Credit Impaired Loans | | Total | | | | | | | | |
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Balance, beginning of period | $ | 17,885 | | | $ | 17,722 | | | $ | 35,607 | | | $ | 15,805 | | | $ | 17,630 | | | $ | 33,435 | | | | | | | | | |
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Loans charged-off | (87 | ) | | (5,329 | ) | | (5,416 | ) | | (330 | ) | | (11,027 | ) | | (11,357 | ) | | | | | | | | |
Recoveries of loans previously charged-off | 30 | | | 2,417 | | | 2,447 | | | 47 | | | 14,030 | | | 14,077 | | | | | | | | | |
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Net (charge-offs) recoveries | (57 | ) | | (2,912 | ) | | (2,969 | ) | | (283 | ) | | 3,003 | | | 2,720 | | | | | | | | | |
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Provision for (recovery of) loan losses | 1,000 | | | (6,407 | ) | | (5,407 | ) | | 905 | | | (8,558 | ) | | (7,653 | ) | | | | | | | | |
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Amount attributable to FDIC loss share agreements | — | | | 5,823 | | | 5,823 | | | — | | | 7,922 | | | 7,922 | | | | | | | | | |
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Total provision for loan losses charged to operations | 1,000 | | | (584 | ) | | 416 | | | 905 | | | (636 | ) | | 269 | | | | | | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | — | | | (5,823 | ) | | (5,823 | ) | | — | | | (7,922 | ) | | (7,922 | ) | | | | | | | | |
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Balance, end of period | $ | 18,828 | | | $ | 8,403 | | | $ | 27,231 | | | $ | 16,427 | | | $ | 12,075 | | | $ | 28,502 | | | | | | | | | |
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| Nine Months Ended September 30 | | | | | | | | |
| 2014 | | 2013 | | | | | | | | |
| Organic Loans | | Purchased Credit Impaired Loans | | Total | | Organic Loans | | Purchased Credit Impaired Loans | | Total | | | | | | | | |
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Balance, beginning of period | $ | 16,656 | | | $ | 17,409 | | | $ | 34,065 | | | $ | 14,660 | | | $ | 55,478 | | | $ | 70,138 | | | | | | | | | |
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Loans charged-off | (302 | ) | | (16,880 | ) | | (17,182 | ) | | (350 | ) | | (30,953 | ) | | (31,303 | ) | | | | | | | | |
Recoveries of loans previously charged-off | 474 | | | 10,974 | | | 11,448 | | | 197 | | | 26,255 | | | 26,452 | | | | | | | | | |
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Net recoveries (charge-offs) | 172 | | | (5,906 | ) | | (5,734 | ) | | (153 | ) | | (4,698 | ) | | (4,851 | ) | | | | | | | | |
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Provision for (recovery of) loan losses | 2,000 | | | (3,100 | ) | | (1,100 | ) | | 1,920 | | | (38,705 | ) | | (36,785 | ) | | | | | | | | |
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Amount attributable to FDIC loss share agreements | — | | | 2,807 | | | 2,807 | | | — | | | 34,396 | | | 34,396 | | | | | | | | | |
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Total provision for loan losses charged to operations | 2,000 | | | (293 | ) | | 1,707 | | | 1,920 | | | (4,309 | ) | | (2,389 | ) | | | | | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | — | | | (2,807 | ) | | (2,807 | ) | | — | | | (34,396 | ) | | (34,396 | ) | | | | | | | | |
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Balance, end of period | $ | 18,828 | | | $ | 8,403 | | | $ | 27,231 | | | $ | 16,427 | | | $ | 12,075 | | | $ | 28,502 | | | | | | | | | |
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The following tables detail the allowance for loan losses on organic loans 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 | | | | | | | | | | | | | |
September 30, 2014 | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses on organic loans: | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 12,741 | | | $ | 3,379 | | | $ | 1,080 | | | $ | 124 | | | $ | 561 | | | $ | 17,885 | | | | | | | | | |
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Charge-offs | (12 | ) | | (13 | ) | | — | | | (5 | ) | | (57 | ) | | (87 | ) | | | | | | | | |
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Recoveries | 1 | | | 7 | | | 1 | | | 1 | | | 20 | | | 30 | | | | | | | | | |
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Provision | 451 | | | (70 | ) | | 29 | | | 37 | | | 553 | | | 1,000 | | | | | | | | | |
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Ending balance | $ | 13,181 | | | $ | 3,303 | | | $ | 1,110 | | | $ | 157 | | | $ | 1,077 | | | $ | 18,828 | | | | | | | | | |
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Nine Months Ended | | | | | | | | | | | | | | | | | | | |
September 30, 2014 | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses on organic loans: | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 11,163 | | | $ | 3,139 | | | $ | 1,015 | | | $ | 144 | | | $ | 1,195 | | | $ | 16,656 | | | | | | | | | |
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Charge-offs | (77 | ) | | (118 | ) | | (1 | ) | | (17 | ) | | (89 | ) | | (302 | ) | | | | | | | | |
Recoveries | 291 | | | 129 | | | 25 | | | 1 | | | 28 | | | 474 | | | | | | | | | |
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Provision | 1,804 | | | 153 | | | 71 | | | 29 | | | (57 | ) | | 2,000 | | | | | | | | | |
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Ending balance | $ | 13,181 | | | $ | 3,303 | | | $ | 1,110 | | | $ | 157 | | | $ | 1,077 | | | $ | 18,828 | | | | | | | | | |
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Ending allowance attributable to organic loans: | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 187 | | | $ | 89 | | | $ | 27 | | | $ | 8 | | | $ | — | | | $ | 311 | | | | | | | | | |
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Collectively evaluated for impairment | 12,994 | | | 3,214 | | | 1,083 | | | 149 | | | 1,077 | | | 18,517 | | | | | | | | | |
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Total ending allowance balance | $ | 13,181 | | | $ | 3,303 | | | $ | 1,110 | | | $ | 157 | | | $ | 1,077 | | | $ | 18,828 | | | | | | | | | |
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Organic loans: | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 372 | | | $ | 174 | | | $ | 1,052 | | | $ | 17 | | | $ | — | | | $ | 1,615 | | | | | | | | | |
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Loans collectively evaluated for impairment | 915,308 | | | 221,361 | | | 79,179 | | | 9,428 | | | 65,032 | | | 1,290,308 | | | | | | | | | |
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Total organic loans | $ | 915,680 | | | $ | 221,535 | | | $ | 80,231 | | | $ | 9,445 | | | $ | 65,032 | | | $ | 1,291,923 | | | | | | | | | |
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Year Ended | | | | | | | | | | | | | | | | | | | |
December 31, 2013 | | | | | | | | | | | | | | | | | | | |
Ending allowance attributable to organic loans: | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 98 | | | $ | 159 | | | $ | 49 | | | $ | 8 | | | $ | — | | | $ | 314 | | | | | | | | | |
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Collectively evaluated for impairment | 11,065 | | | 2,980 | | | 966 | | | 136 | | | 1,195 | | | 16,342 | | | | | | | | | |
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Total ending allowance balance | $ | 11,163 | | | $ | 3,139 | | | $ | 1,015 | | | $ | 144 | | | $ | 1,195 | | | $ | 16,656 | | | | | | | | | |
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Organic 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 | | | 9,244 | | | 40,861 | | | 1,121,137 | | | | | | | | | |
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Total organic loans | $ | 801,517 | | | $ | 205,003 | | | $ | 66,835 | | | $ | 9,259 | | | $ | 40,861 | | | $ | 1,123,475 | | | | | | | | | |
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| Commercial Real Estate | | Commercial & Industrial | | Residential Real Estate | | Consumer | | Other | | Total | | | | | | | | |
Three Months Ended | | | | | | | | | | | | | |
September 30, 2013 | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses on organic loans: | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 10,377 | | | $ | 3,425 | | | $ | 850 | | | $ | 120 | | | $ | 1,033 | | | $ | 15,805 | | | | | | | | | |
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Charge-offs | (155 | ) | | (153 | ) | | (16 | ) | | (6 | ) | | — | | | (330 | ) | | | | | | | | |
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Recoveries | 23 | | | — | | | 3 | | | — | | | 21 | | | 47 | | | | | | | | | |
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Provision | 816 | | | 48 | | | 145 | | | 13 | | | (117 | ) | | 905 | | | | | | | | | |
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Ending balance | $ | 11,061 | | | $ | 3,320 | | | $ | 982 | | | $ | 127 | | | $ | 937 | | | $ | 16,427 | | | | | | | | | |
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Nine Months Ended | | | | | | | | | | | | | | | | | | | |
September 30, 2013 | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses on organic loans: | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 9,495 | | | $ | 3,103 | | | $ | 1,050 | | | $ | 132 | | | $ | 880 | | | $ | 14,660 | | | | | | | | | |
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Charge-offs | (156 | ) | | (163 | ) | | (17 | ) | | (14 | ) | | — | | | (350 | ) | | | | | | | | |
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Recoveries | 160 | | | 6 | | | 5 | | | 4 | | | 22 | | | 197 | | | | | | | | | |
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Provision | 1,562 | | | 374 | | | (56 | ) | | 5 | | | 35 | | | 1,920 | | | | | | | | | |
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Ending balance | $ | 11,061 | | | $ | 3,320 | | | $ | 982 | | | $ | 127 | | | $ | 937 | | | $ | 16,427 | | | | | | | | | |
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Ending allowance attributable to organic loans: | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 123 | | | $ | 141 | | | $ | 43 | | | $ | 19 | | | $ | — | | | $ | 326 | | | | | | | | | |
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Collectively evaluated for impairment | 10,938 | | | 3,179 | | | 939 | | | 108 | | | 937 | | | 16,101 | | | | | | | | | |
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Total ending allowance balance | $ | 11,061 | | | $ | 3,320 | | | $ | 982 | | | $ | 127 | | | $ | 937 | | | $ | 16,427 | | | | | | | | | |
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Organic loans: | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 1,328 | | | $ | 367 | | | $ | 1,195 | | | $ | 38 | | | $ | — | | | $ | 2,928 | | | | | | | | | |
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Loans collectively evaluated for impairment | 837,106 | | | 209,088 | | | 62,191 | | | 7,143 | | | 46,398 | | | 1,161,926 | | | | | | | | | |
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Total organic loans | $ | 838,434 | | | $ | 209,455 | | | $ | 63,386 | | | $ | 7,181 | | | $ | 46,398 | | | $ | 1,164,854 | | | | | | | | | |
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The following tables detail the allowance for loan losses on purchased credit impaired loans 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 | | | | | | | | | | | | |
September 30, 2014 | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses on purchased credit impaired loans: | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 10,606 | | | $ | 3,168 | | | $ | 3,873 | | | $ | 75 | | | $ | — | | | $ | 17,722 | | | | | | | | | |
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Charge-offs | (3,858 | ) | | (1,062 | ) | | (355 | ) | | (54 | ) | | — | | | (5,329 | ) | | | | | | | | |
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Recoveries | 1,863 | | | 406 | | | 143 | | | 5 | | | — | | | 2,417 | | | | | | | | | |
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Provision for loan losses before amount attributable to FDIC loss share agreements | (5,025 | ) | | (422 | ) | | (935 | ) | | (25 | ) | | — | | | (6,407 | ) | | | | | | | | |
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Amount attributable to FDIC loss share agreements | 4,567 | | | 384 | | | 850 | | | 22 | | | — | | | 5,823 | | | | | | | | | |
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Total provision for loan losses charged to operations | (458 | ) | | (38 | ) | | (85 | ) | | (3 | ) | | — | | | (584 | ) | | | | | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | (4,567 | ) | | (384 | ) | | (850 | ) | | (22 | ) | | — | | | (5,823 | ) | | | | | | | | |
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Ending balance | $ | 3,586 | | | $ | 2,090 | | | $ | 2,726 | | | $ | 1 | | | $ | — | | | $ | 8,403 | | | | | | | | | |
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Nine Months Ended | | | | | | | | | | | | | | | | | | | |
September 30, 2014 | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses on purchased credit impaired loans: | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 11,226 | | | $ | 3,630 | | | $ | 2,481 | | | $ | 72 | | | $ | — | | | $ | 17,409 | | | | | | | | | |
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Charge-offs | (12,042 | ) | | (3,763 | ) | | (1,011 | ) | | (64 | ) | | — | | | (16,880 | ) | | | | | | | | |
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Recoveries | 7,697 | | | 2,057 | | | 1,159 | | | 61 | | | — | | | 10,974 | | | | | | | | | |
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Provision for loan losses before amount attributable to FDIC loss share agreements | (3,295 | ) | | 166 | | | 97 | | | (68 | ) | | — | | | (3,100 | ) | | | | | | | | |
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Amount attributable to FDIC loss share agreements | 2,983 | | | (150 | ) | | (87 | ) | | 61 | | | — | | | 2,807 | | | | | | | | | |
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Total provision for loan losses charged to operations | (312 | ) | | 16 | | | 10 | | | (7 | ) | | — | | | (293 | ) | | | | | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | (2,983 | ) | | 150 | | | 87 | | | (61 | ) | | — | | | (2,807 | ) | | | | | | | | |
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Ending balance | $ | 3,586 | | | $ | 2,090 | | | $ | 2,726 | | | $ | 1 | | | $ | — | | | $ | 8,403 | | | | | | | | | |
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Ending allowance attributable to purchased credit impaired loans: | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 866 | | | $ | 580 | | | $ | 1,086 | | | $ | — | | | $ | — | | | $ | 2,532 | | | | | | | | | |
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Collectively evaluated for impairment | 2,720 | | | 1,510 | | | 1,640 | | | 1 | | | — | | | 5,871 | | | | | | | | | |
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Total ending allowance balance | $ | 3,586 | | | $ | 2,090 | | | $ | 2,726 | | | $ | 1 | | | $ | — | | | $ | 8,403 | | | | | | | | | |
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Purchased credit impaired loans: | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 37,322 | | | $ | 20,158 | | | $ | 3,015 | | | $ | 10 | | | $ | — | | | $ | 60,505 | | | | | | | | | |
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Loans collectively evaluated for impairment | 42,714 | | | 31,461 | | | 77,844 | | | 273 | | | 5 | | | 152,297 | | | | | | | | | |
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Total purchased credit impaired loans | $ | 80,036 | | | $ | 51,619 | | | $ | 80,859 | | | $ | 283 | | | $ | 5 | | | $ | 212,802 | | | | | | | | | |
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| Commercial Real Estate | | Commercial & Industrial | | Residential Real Estate | | Consumer | | Other | | Total | | | | | | | | |
Year Ended | | | | | | | | | | | | |
December 31, 2013 | | | | | | | | | | | | | | | | | | | |
Ending allowance attributable to purchased credit impaired 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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Purchased credit impaired 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 | | | 308 | | | 18 | | | 189,919 | | | | | | | | | |
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Total purchased credit impaired loans | $ | 102,956 | | | $ | 58,707 | | | $ | 95,240 | | | $ | 573 | | | $ | 18 | | | $ | 257,494 | | | | | | | | | |
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| Commercial Real Estate | | Commercial & Industrial | | Residential Real Estate | | Consumer | | Other | | Total | | | | | | | | |
Three Months Ended | | | | | | | | | | | | | |
September 30, 2013 | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses on purchased credit impaired loans: | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 10,614 | | | $ | 3,671 | | | $ | 3,265 | | | $ | 80 | | | $ | — | | | $ | 17,630 | | | | | | | | | |
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Charge-offs | (7,127 | ) | | (2,720 | ) | | (641 | ) | | (212 | ) | | (327 | ) | | (11,027 | ) | | | | | | | | |
Recoveries | 7,427 | | | 2,650 | | | 2,765 | | | 1,188 | | | — | | | 14,030 | | | | | | | | | |
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Provision for loan losses before amount attributable to FDIC loss share agreements | (4,001 | ) | | (849 | ) | | (3,071 | ) | | (965 | ) | | 328 | | | (8,558 | ) | | | | | | | | |
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Amount attributable to FDIC loss share agreements | 3,703 | | | 786 | | | 2,843 | | | 893 | | | (303 | ) | | 7,922 | | | | | | | | | |
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Total provision for loan losses charged to operations | (298 | ) | | (63 | ) | | (228 | ) | | (72 | ) | | 25 | | | (636 | ) | | | | | | | | |
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Provision for loan losses recorded through the FDIC loss share receivable | (3,703 | ) | | (786 | ) | | (2,843 | ) | | (893 | ) | | 303 | | | (7,922 | ) | | | | | | | | |
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Ending balance | $ | 6,913 | | | $ | 2,752 | | | $ | 2,318 | | | $ | 91 | | | $ | 1 | | | $ | 12,075 | | | | | | | | | |
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| | | | | | | | | | | | | | | | | | | |
Nine Months Ended | | | | | | | | | | | | | | | | | | | |
September 30, 2013 | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses on purchased credit impaired loans: | | | | | | | | | | | | | | | | | | | |
Beginning balance | $ | 27,152 | | | $ | 6,092 | | | $ | 21,545 | | | $ | 153 | | | $ | 536 | | | $ | 55,478 | | | | | | | | | |
| | | | | | | |
Charge-offs | (22,193 | ) | | (5,498 | ) | | (2,502 | ) | | (253 | ) | | (507 | ) | | (30,953 | ) | | | | | | | | |
Recoveries | 14,486 | | | 5,985 | | | 4,377 | | | 1,223 | | | 184 | | | 26,255 | | | | | | | | | |
| | | | | | | |
Provision for loan losses before benefit attributable to FDIC loss share agreements | (12,532 | ) | | (3,827 | ) | | (21,102 | ) | | (1,032 | ) | | (212 | ) | | (38,705 | ) | | | | | | | | |
Amount attributable to FDIC loss share agreements | 11,137 | | | 3,401 | | | 18,753 | | | 917 | | | 188 | | | 34,396 | | | | | | | | | |
| | | | | | | |
Total provision for loan losses charged to operations | (1,395 | ) | | (426 | ) | | (2,349 | ) | | (115 | ) | | (24 | ) | | (4,309 | ) | | | | | | | | |
Provision for loan losses recorded through the FDIC loss share receivable | (11,137 | ) | | (3,401 | ) | | (18,753 | ) | | (917 | ) | | (188 | ) | | (34,396 | ) | | | | | | | | |
Ending balance | $ | 6,913 | | | $ | 2,752 | | | $ | 2,318 | | | $ | 91 | | | $ | 1 | | | $ | 12,075 | | | | | | | | | |
| | | | | | | |
Ending allowance attributable to purchased credit impaired loans: | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | $ | 4,945 | | | $ | 1,385 | | | $ | 1,023 | | | $ | 76 | | | $ | — | | | $ | 7,429 | | | | | | | | | |
| | | | | | | |
Collectively evaluated for impairment | 1,968 | | | 1,367 | | | 1,295 | | | 15 | | | 1 | | | 4,646 | | | | | | | | | |
| | | | | | | |
Total ending allowance balance | $ | 6,913 | | | $ | 2,752 | | | $ | 2,318 | | | $ | 91 | | | $ | 1 | | | $ | 12,075 | | | | | | | | | |
| | | | | | | |
Purchased credit impaired loans: | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | $ | 56,992 | | | $ | 18,096 | | | $ | 10,595 | | | $ | 268 | | | $ | — | | | $ | 85,951 | | | | | | | | | |
| | | | | | | |
Loans collectively evaluated for impairment | 60,316 | | | 44,005 | | | 99,211 | | | 571 | | | 23 | | | 204,126 | | | | | | | | | |
| | | | | | | |
Total purchased credit impaired loans | $ | 117,308 | | | $ | 62,101 | | | $ | 109,806 | | | $ | 839 | | | $ | 23 | | | $ | 290,077 | | | | | | | | | |
| | | | | | | |
|
For each period indicated, a significant portion of the Company's purchased credit impaired 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 purchased credit impaired loans at each acquisition and at subsequent valuation dates. All purchased credit impaired 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 assets. As such, the referenced purchased credit impaired loans are not considered nonperforming assets. |
|
Approved credit losses are expected to be reimbursed for PCI loans covered 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 these PCI loans. Subsequent decreases in the amount of cash expected to be collected on covered PCI 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 PCI 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 PCI loans if no provision for loan losses had been recorded. |
|
Impaired organic loans, segregated by class of loans, are presented in the following table (dollars in thousands): |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| September 30, 2014 | | December 31, 2013 | | | | | | | | |
| Unpaid Principal Balance | | Recorded Investment | | Related Allowance | | Unpaid Principal Balance | | Recorded Investment | | Related Allowance | | | | | | | | |
Impaired organic 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 | 58 | | | 47 | | | 23 | | | 333 | | | 52 | | | 26 | | | | | | | | | |
| | | | | | | |
Other commercial real estate | 500 | | | 325 | | | 164 | | | 179 | | | 136 | | | 72 | | | | | | | | | |
| | | | | | | |
Total commercial real estate | 558 | | | 372 | | | 187 | | | 512 | | | 188 | | | 98 | | | | | | | | | |
| | | | | | | |
Commercial & industrial | 134 | | | 134 | | | 67 | | | 234 | | | 234 | | | 117 | | | | | | | | | |
| | | | | | | |
Owner-occupied real estate | 44 | | | 40 | | | 22 | | | 89 | | | 84 | | | 42 | | | | | | | | | |
| | | | | | | |
Total commercial & industrial | 178 | | | 174 | | | 89 | | | 323 | | | 318 | | | 159 | | | | | | | | | |
| | | | | | | |
Residential real estate | 211 | | | 177 | | | 27 | | | 316 | | | 256 | | | 38 | | | | | | | | | |
| | | | | | | |
Consumer | 19 | | | 17 | | | 8 | | | 17 | | | 15 | | | 8 | | | | | | | | | |
| | | | | | | |
Other | — | | | — | | | — | | | — | | | — | | | — | | | | | | | | | |
| | | | | | | |
Subtotal | 966 | | | 740 | | | 311 | | | 1,168 | | | 777 | | | 303 | | | | | | | | | |
| | | | | | | |
Total impaired organic loans | $ | 1,841 | | | $ | 1,615 | | | $ | 311 | | | $ | 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-Sep-14 | | 30-Sep-13 | | | | | | | | | | | | | | | | |
| Average Recorded Investment (1) | | Interest Income Recognized (2) | | Average Recorded Investment (3) | | Interest Income Recognized (4) | | | | | | | | | | | | | | | | |
Three Months Ended | | | | | | | | | | | | | | | | | | | |
Construction, land & land development | $ | 75 | | | $ | 1 | | | $ | 298 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Other commercial real estate | 336 | | | 9 | | | 1,092 | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total commercial real estate | 411 | | | 10 | | | 1,390 | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Commercial & industrial | 135 | | | — | | | 297 | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Owner-occupied real estate | 130 | | | — | | | 84 | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total commercial & industrial | 265 | | | — | | | 381 | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Residential real estate | 1,227 | | | — | | | 1,202 | | | 1 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Consumer | 17 | | | — | | | 43 | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Other | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total | $ | 1,920 | | | $ | 10 | | | $ | 3,016 | | | $ | 1 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Nine Months Ended | | | | | | | | | | | | | | | | | | | | | | | |
Construction, land & land development | $ | 225 | | | $ | 45 | | | $ | 319 | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Other commercial real estate | 459 | | | 18 | | | 1,375 | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total commercial real estate | 684 | | | 63 | | | 1,694 | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Commercial & industrial | 189 | | | 2 | | | 359 | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Owner-occupied real estate | 122 | | | — | | | 84 | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total commercial & industrial | 311 | | | 2 | | | 443 | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Residential real estate | 1,229 | | | 6 | | | 1,322 | | | 4 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Consumer | 18 | | | 3 | | | 46 | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Other | — | | | — | | | — | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Total | $ | 2,242 | | | $ | 74 | | | $ | 3,505 | | | $ | 4 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(1) The average recorded investment for troubled debt restructurings for the three and nine months ended September 30, 2014 was $875,000 and $871,000, respectively. |
(2) There was no interest income recognized on troubled debt restructurings for the three and nine months ended September 30, 2014. |
(3) The average recorded investment for troubled debt restructurings for the three and nine months ended September 30, 2013 was $883,000 and $886,000, respectively. |
(4) There was no interest income recognized on troubled debt restructurings for the three and nine months ended September 30, 2013. |
|
The following table presents the recorded investment in organic nonaccrual loans by loan class at the dates indicated (dollars in thousands): |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Organic Nonaccrual Loans: | September 30, 2014 | | December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, land & land development | $ | 47 | | | $ | 321 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Other commercial real estate | 325 | | | 486 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total commercial real estate | 372 | | | 807 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Commercial & industrial | 134 | | | 234 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Owner-occupied real estate | 40 | | | 84 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total commercial & industrial | 174 | | | 318 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Residential real estate | 1,052 | | | 1,125 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Consumer | 17 | | | 15 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Other | — | | | — | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Total | $ | 1,615 | | | $ | 2,265 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents an analysis of past due organic loans, by class of loans (dollars in thousands): |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Organic Loans: | 30 - 89 | | 90 Days or | | Total | | Current | | Total Loans | | Loans > 90 | | | | | | | | |
Days | Greater | Past Due | Days and | | | | | | | | |
Past Due | Past Due | | Accruing | | | | | | | | |
September 30, 2014 | | | | | | | | | | | | | | | | | | | |
Construction, land & land development | $ | 16 | | | $ | 27 | | | $ | 43 | | | $ | 323,965 | | | $ | 324,008 | | | $ | — | | | | | | | | | |
| | | | | | | |
Other commercial real estate | — | | | 34 | | | 34 | | | 591,638 | | | 591,672 | | | — | | | | | | | | | |
| | | | | | | |
Total commercial real estate | 16 | | | 61 | | | 77 | | | 915,603 | | | 915,680 | | | — | | | | | | | | | |
| | | | | | | |
Commercial & industrial | — | | | 107 | | | 107 | | | 56,914 | | | 57,021 | | | — | | | | | | | | | |
| | | | | | | |
Owner-occupied real estate | — | | | 40 | | | 40 | | | 164,474 | | | 164,514 | | | — | | | | | | | | | |
| | | | | | | |
Total commercial & industrial | — | | | 147 | | | 147 | | | 221,388 | | | 221,535 | | | — | | | | | | | | | |
| | | | | | | |
Residential real estate | 137 | | | 891 | | | 1,028 | | | 79,203 | | | 80,231 | | | — | | | | | | | | | |
| | | | | | | |
Consumer | 28 | | | 12 | | | 40 | | | 9,405 | | | 9,445 | | | — | | | | | | | | | |
| | | | | | | |
Other | — | | | — | | | — | | | 65,032 | | | 65,032 | | | — | | | | | | | | | |
| | | | | | | |
Total | $ | 181 | | | $ | 1,111 | | | $ | 1,292 | | | $ | 1,290,631 | | | $ | 1,291,923 | | | $ | — | | | | | | | | | |
| | | | | | | |
|
The following table presents an analysis of past due organic loans, by class of loans (dollars in thousands): |
| | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Organic Loans: | 30 - 89 | | 90 Days or | | Total | | Current | | Total Loans | | Loans > 90 | | | | | | | | |
Days | Greater | Past Due | Days and | | | | | | | | |
Past Due | Past Due | | Accruing | | | | | | | | |
December 31, 2013 | | | | | | | | | | | | | | | | | | | |
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 | 85 | | | 6 | | | 91 | | | 9,168 | | | 9,259 | | | — | | | | | | | | | |
| | | | | | | |
Other | — | | | — | | | — | | | 40,861 | | | 40,861 | | | — | | | | | | | | | |
| | | | | | | |
Total | $ | 458 | | | $ | 542 | | | $ | 1,000 | | | $ | 1,122,475 | | | $ | 1,123,475 | | | $ | — | | | | | | | | | |
| | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table presents an analysis of past due purchased credit impaired loans, by class of loans (dollars in thousands): |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Credit Impaired Loans: | 30 - 89 | | 90 Days or | | Total | | Current | | Total Loans | | | | | | | | | | | | |
Days | Greater | Past Due | | | | | | | | | | | | |
Past Due | Past Due | | | | | | | | | | | | | |
September 30, 2014 | | | | | | | | | | | | | | | | | | | | | |
Construction, land & land development | $ | 1,097 | | | $ | 8,011 | | | $ | 9,108 | | | $ | 16,355 | | | $ | 25,463 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Other commercial real estate | 1,209 | | | 7,865 | | | 9,074 | | | 45,499 | | | 54,573 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total commercial real estate | 2,306 | | | 15,876 | | | 18,182 | | | 61,854 | | | 80,036 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Commercial & industrial | 23 | | | 331 | | | 354 | | | 2,431 | | | 2,785 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Owner-occupied real estate | 2,991 | | | 1,684 | | | 4,675 | | | 44,159 | | | 48,834 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total commercial & industrial | 3,014 | | | 2,015 | | | 5,029 | | | 46,590 | | | 51,619 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Residential real estate | 2,388 | | | 6,509 | | | 8,897 | | | 71,962 | | | 80,859 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Consumer | — | | | 105 | | | 105 | | | 178 | | | 283 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Other | — | | | — | | | — | | | 5 | | | 5 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Total | $ | 7,708 | | | $ | 24,505 | | | $ | 32,213 | | | $ | 180,589 | | | $ | 212,802 | | | | | | | | | | | | | |
| | | | | | | | | | | |
|
The following table presents an analysis of past due purchased credit impaired loans, by class of loans (dollars in thousands): |
| | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchased Credit Impaired Loans: | 30 - 89 | | 90 Days or | | Total | | Current | | Total Loans | | | | | | | | | | | | |
Days | Greater | Past Due | | | | | | | | | | | | |
Past Due | Past Due | | | | | | | | | | | | | |
December 31, 2013 | | | | | | | | | | | | | | | | | | | | | |
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 | | | | | | | | | | | | | |
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Consumer | 1 | | | 283 | | | 284 | | | 289 | | | 573 | | | | | | | | | | | | | |
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Other | — | | | — | | | — | | | 18 | | | 18 | | | | | | | | | | | | | |
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Total | $ | 11,540 | | | $ | 40,040 | | | $ | 51,580 | | | $ | 205,914 | | | $ | 257,494 | | | | | | | | | | | | | |
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Asset Quality Grades: |
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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. |
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Loans are graded on a scale of 1 to 8. Pass grades are from 1 to 4. Descriptions of the general characteristics of grades 5 and above are as follows: |
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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. |
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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. |
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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. |
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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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The following table presents the risk grades of the organic loan portfolio, by class of loans (dollars in thousands): |
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Organic Loans: | Construction, Land | | Other | | Commercial & | | Owner-Occupied | | Residential | | Consumer | | Other | | Total |
& | Commercial | Industrial | Real Estate | Real Estate |
Land Development | Real Estate | | | |
September 30, 2014 | | | | | | | | | | | | | | | |
Pass | $ | 296,222 | | | $ | 557,361 | | | $ | 53,955 | | | $ | 145,512 | | | $ | 68,760 | | | $ | 9,372 | | | $ | 65,021 | | | $ | 1,196,203 | |
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Watch | 22,943 | | | 33,616 | | | 1,596 | | | 18,332 | | | 10,052 | | | 27 | | | 11 | | | 86,577 | |
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OAEM | — | | | 25 | | | 856 | | | — | | | 325 | | | 11 | | | — | | | 1,217 | |
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Substandard | 4,843 | | | 636 | | | 614 | | | 670 | | | 1,094 | | | 35 | | | — | | | 7,892 | |
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Doubtful | — | | | 34 | | | — | | | — | | | — | | | — | | | — | | | 34 | |
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Total | $ | 324,008 | | | $ | 591,672 | | | $ | 57,021 | | | $ | 164,514 | | | $ | 80,231 | | | $ | 9,445 | | | $ | 65,032 | | | $ | 1,291,923 | |
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The following table presents the risk grades of the organic loan portfolio, by class of loans (dollars in thousands): |
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Organic Loans: | Construction, Land | | Other | | Commercial & | | Owner-Occupied | | Residential | | Consumer | | Other | | Total |
& | Commercial | Industrial | Real Estate | Real Estate |
Land Development | Real Estate | | | |
December 31, 2013 | | | | | | | | | | | | | | | |
Pass | $ | 174,700 | | | $ | 528,649 | | | $ | 28,035 | | | $ | 147,510 | | | $ | 55,447 | | | $ | 9,121 | | | $ | 40,831 | | | $ | 984,293 | |
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Watch | 71,225 | | | 21,148 | | | 1,502 | | | 24,017 | | | 9,712 | | | 76 | | | 30 | | | 127,710 | |
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OAEM | 4,780 | | | 191 | | | 365 | | | 2,540 | | | 437 | | | — | | | — | | | 8,313 | |
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Substandard | 338 | | | 486 | | | 243 | | | 791 | | | 1,239 | | | 55 | | | — | | | 3,152 | |
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Doubtful | — | | | — | | | — | | | — | | | — | | | 7 | | | — | | | 7 | |
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Total | $ | 251,043 | | | $ | 550,474 | | | $ | 30,145 | | | $ | 174,858 | | | $ | 66,835 | | | $ | 9,259 | | | $ | 40,861 | | | $ | 1,123,475 | |
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Classifications on purchased credit impaired 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 PCI 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 purchased credit impaired loan portfolio, by class of loans (dollars in thousands): |
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Purchased Credit Impaired Loans: | Construction, Land | | Other | | Commercial & | | Owner-Occupied | | Residential | | Consumer | | Other | | Total |
& | Commercial | Industrial | Real Estate | Real Estate |
Land Development | Real Estate | | | |
September 30, 2014 | | | | | | | | | | | | | | | |
Pass | $ | 5,935 | | | $ | 5,961 | | | $ | 1,116 | | | $ | 16,530 | | | $ | 37,175 | | | $ | 83 | | | $ | 5 | | | $ | 66,805 | |
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Watch | 3,473 | | | 20,491 | | | 577 | | | 17,505 | | | 11,942 | | | 69 | | | — | | | 54,057 | |
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OAEM | 281 | | | 9,783 | | | 58 | | | 3,629 | | | 7,745 | | | — | | | — | | | 21,496 | |
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Substandard | 14,549 | | | 16,057 | | | 385 | | | 10,064 | | | 19,132 | | | 7 | | | — | | | 60,194 | |
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Doubtful | 1,225 | | | 2,281 | | | 649 | | | 1,106 | | | 4,865 | | | 124 | | | — | | | 10,250 | |
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Total | $ | 25,463 | | | $ | 54,573 | | | $ | 2,785 | | | $ | 48,834 | | | $ | 80,859 | | | $ | 283 | | | $ | 5 | | | $ | 212,802 | |
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The following table presents the risk grades of the purchased credit impaired loan portfolio, by class of loans (dollars in thousands): |
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Purchased Credit Impaired Loans: | Construction, Land | | Other | | Commercial & | | Owner-Occupied | | Residential | | Consumer | | Other | | Total |
& | Commercial | Industrial | Real Estate | Real Estate |
Land Development | Real Estate | | | |
December 31, 2013 | | | | | | | | | | | | | | | |
Pass | $ | 2,833 | | | $ | 7,563 | | | $ | 828 | | | $ | 15,491 | | | $ | 42,507 | | | $ | 222 | | | $ | 17 | | | $ | 69,461 | |
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Watch | 7,319 | | | 14,189 | | | 651 | | | 9,780 | | | 16,221 | | | 47 | | | 1 | | | 48,208 | |
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OAEM | 969 | | | 15,027 | | | 39 | | | 6,702 | | | 2,473 | | | 1 | | | — | | | 25,211 | |
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Substandard | 23,717 | | | 29,315 | | | 2,622 | | | 22,463 | | | 33,452 | | | 300 | | | — | | | 111,869 | |
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Doubtful | 545 | | | 1,479 | | | 131 | | | — | | | 587 | | | 3 | | | — | | | 2,745 | |
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Total | $ | 35,383 | | | $ | 67,573 | | | $ | 4,271 | | | $ | 54,436 | | | $ | 95,240 | | | $ | 573 | | | $ | 18 | | | $ | 257,494 | |
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Total organic troubled debt restructurings (TDRs) were $875,000 and $869,000 at September 30, 2014 and December 31, 2013, respectively, with no related allowance for loans losses for the same periods, respectively. The Company had no unfunded commitment obligations to lend to customers that underwent troubled debt restructuring at September 30, 2014 and December 31, 2013. Purchased credit 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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During the three and nine months ended September 30, 2014 and 2013, there were no organic loans modified under the terms of a TDR. During the three and nine months ended September 30, 2014 and 2013, there were no organic TDRs that subsequently defaulted within twelve months of their modification dates. |
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