| Loans and the Allowance for Credit Losses | NOTE 5.
LOANS AND THE ALLOWANCE FOR CREDIT LOSSES
The recorded
investment in loans is presented in the Consolidated Balance Sheets
net of deferred loan fees and costs of $1.7 million and $2.4
million at June 30, 2015 and December 31, 2014,
respectively.
(unaudited, in thousands) June 30, December 31,
Commercial real
estate:
Land and
construction $ 308,885 $ 262,643
Improved
property 1,885,228 1,682,817
Total commercial real
estate 2,194,113 1,945,460
Commercial and
industrial 733,478 638,410
Residential real
estate 1,241,470 928,770
Home equity 379,740 330,031
Consumer 384,844 244,095
Total portfolio
loans 4,933,645 4,086,766
Loans held for
sale 11,160 5,865
Total loans $ 4,944,805 $ 4,092,631
The following
tables summarize changes in the allowance for credit losses
applicable to each category of the loan portfolio:
Allowance for Credit
Losses By Category
(unaudited, in thousands) Commercial Commercial Real
Estate- Commercial Residential Home Consumer Deposit Total
Balance at
December 31, 2014:
Allowance for loan
losses $ 5,654 $ 17,573 $ 9,063 $ 5,382 $ 2,329 $ 4,078 $ 575 $ 44,654
Allowance for loan
commitments 194 10 112 9 90 40 — 455
Total beginning allowance
for credit losses 5,848 17,583 9,175 5,391 2,419 4,118 575 45,109
Provision for credit
losses:
Provision for loan
losses (551 ) 633 1,448 25 1,254 580 231 3,620
Provision for loan
commitments 13 10 301 3 23 — — 350
Total provision for
credit losses (538 ) 643 1,749 28 1,277 580 231 3,970
Charge-offs — (1,234 ) (1,430 ) (944 ) (948 ) (1,414 ) (381 ) (6,351 )
Recoveries — 256 110 301 53 658 118 1,496
Net
charge-offs — (978 ) (1,320 ) (643 ) (895 ) (756 ) (263 ) (4,855 )
Balance at June 30,
2015:
Allowance for loan
losses 5,103 17,228 9,191 4,764 2,688 3,902 543 43,419
Allowance for loan
commitments 207 20 413 12 113 40 — 805
Total ending allowance
for credit losses $ 5,310 $ 17,248 $ 9,604 $ 4,776 $ 2,801 $ 3,942 $ 543 $ 44,224
Balance at
December 31, 2013:
Allowance for loan
losses $ 6,056 $ 18,157 $ 9,925 $ 5,673 $ 2,017 $ 5,020 $ 520 $ 47,368
Allowance for loan
commitments 301 62 130 5 85 19 — 602
Total beginning allowance
for credit losses 6,357 18,219 10,055 5,678 2,102 5,039 520 47,970
Provision for credit
losses:
Provision for loan
losses (405 ) (511 ) 1,870 575 392 642 551 3,114
Provision for loan
commitments (20 ) (52 ) 1 — 5 — — (66 )
Total provision for
credit losses (425 ) (563 ) 1,871 575 397 642 551 3,048
Charge-offs — (728 ) (2,384 ) (1,207 ) (348 ) (1,610 ) (362 ) (6,639 )
Recoveries — 390 543 248 71 512 134 1,898
Net
charge-offs — (338 ) (1,841 ) (959 ) (277 ) (1,098 ) (228 ) (4,741 )
Balance at June 30,
2014:
Allowance for loan
losses 5,651 17,308 9,954 5,289 2,132 4,564 843 45,741
Allowance for loan
commitments 281 10 131 5 90 19 — 536
Total ending allowance
for credit losses $ 5,932 $ 17,318 $ 10,085 $ 5,294 $ 2,222 $ 4,583 $ 843 $ 46,277
The following
tables present the allowance for credit losses and recorded
investments in loans by category:
Allowance for Credit
Losses and Recorded Investment in Loans
(unaudited, in thousands) Commercial Commercial Commercial Industrial Residential Home Consumer Over-draft Total
June 30,
2015
Allowance for credit
losses:
Allowance for loans
individually evaluated for impairment $ — $ 2,891 $ 1,021 $ — $ — $ — $ — $ 3,912
Allowance for loans
collectively evaluated for impairment 5,103 14,337 8,170 4,764 2,688 3,902 543 39,507
Allowance for loan
commitments 207 20 413 12 113 40 — 805
Total allowance for
credit losses $ 5,310 $ 17,248 $ 9,604 $ 4,776 $ 2,801 $ 3,942 $ 543 $ 44,224
Portfolio
loans:
Individually evaluated
for impairment (1) $ 1,040 $ 18,054 $ 5,388 $ — $ — $ — $ — $ 24,482
Collectively evaluated
for impairment 307,845 1,867,174 728,090 1,241,470 379,740 384,844 — 4,909,163
Total portfolio
loans $ 308,885 $ 1,885,228 $ 733,478 $ 1,241,470 $ 379,740 $ 384,844 $ — $ 4,933,645
December 31,
2014
Allowance for credit
losses:
Allowance for loans
individually evaluated for impairment $ — $ 2,765 $ 1,033 $ — $ — $ — $ — $ 3,798
Allowance for loans
collectively evaluated for impairment 5,654 14,808 8,030 5,382 2,329 4,078 575 40,856
Allowance for loan
commitments 194 10 112 9 90 40 — 455
Total allowance for
credit losses $ 5,848 $ 17,583 $ 9,175 $ 5,391 $ 2,419 $ 4,118 $ 575 $ 45,109
Portfolio
loans:
Individually evaluated
for impairment (1) $ — $ 11,469 $ 2,844 $ — $ — $ — $ — $ 14,313
Collectively evaluated
for impairment 262,643 1,671,348 635,566 928,770 330,031 244,095 — 4,072,453
Total portfolio
loans $ 262,643 $ 1,682,817 $ 638,410 $ 928,770 $ 330,031 $ 244,095 $ — $ 4,086,766
(1)
Commercial loans greater than $1 million that are reported as
non-accrual or as troubled debt restructuring (“TDR”),
including acquired with deteriorated credit quality, are
individually evaluated for impairment.
WesBanco
maintains an internal loan grading system to reflect the credit
quality of commercial loans. Commercial loan risk grades are
determined based on an evaluation of the relevant characteristics
of each loan, assigned at the inception of each loan and adjusted
thereafter at any time to reflect changes in the risk profile
throughout the life of each loan. The primary factors used to
determine the risk grade are the reliability and sustainability of
the primary source of repayment and overall financial strength of
the borrower. This includes an analysis of cash flow available to
repay debt, profitability, liquidity, leverage, and overall
financial trends. Other factors include management, industry or
property type risks, an assessment of secondary sources of
repayment such as collateral or guarantees, other terms and
conditions of the loan that may increase or reduce its risk, and
economic conditions and other external factors that may influence
repayment capacity and financial condition.
Commercial
real estate – land and construction consists of loans to
finance investments in vacant land, land development, construction
of residential housing, and construction of commercial buildings.
Commercial real estate – improved property consists of loans
for the purchase or refinance of all types of improved
owner-occupied and investment properties. Factors that are
considered in assigning the risk grade vary depending on the type
of property financed. The risk grade assigned to construction and
development loans is based on the overall viability of the project,
the experience and financial capacity of the developer or builder
to successfully complete the project, project specific and market
absorption rates and comparable property values, and the amount of
pre-sales for residential housing construction or pre-leases for
commercial investment property. The risk grade assigned to
commercial investment property loans is based primarily on the
adequacy of net rental income generated by the property to service
the debt, the type, quality, industry and mix of tenants, and the
terms of leases, but also considers the overall financial capacity
of the investors and their experience in owning and managing
investment property. The risk grade assigned to owner-occupied
commercial real estate and commercial and industrial loans is based
primarily on historical and projected earnings, the adequacy of
operating cash flow to service all of the business’ debt, and
the capital resources, liquidity and leverage of the business, but
also considers the industry in which the business operates, the
business’ specific competitive advantages or disadvantages,
the quality and experience of management, and external influences
on the business such as economic conditions. Other factors that are
considered for commercial and industrial loans include the type,
quality and marketability of non-real estate collateral and whether
the structure of the loan increases or reduces its risk. The type,
age, condition, location and any environmental risks associated
with a property are also considered for all types of commercial
real estate. The overall financial condition and repayment capacity
of any guarantors is also evaluated to determine the extent to
which they mitigate other risks of the loan. The following
paragraphs provide descriptions of risk grades that are applicable
to commercial real estate and commercial and industrial
loans.
Pass loans
are those that exhibit a history of positive financial results that
are at least comparable to the average for their industry or type
of real estate. The primary source of repayment is acceptable and
these loans are expected to perform satisfactorily during most
economic cycles. Pass loans typically have no significant external
factors that are expected to adversely affect these borrowers more
than others in the same industry or property type. Any minor
unfavorable characteristics of these loans are outweighed or
mitigated by other positive factors including but not limited to
adequate secondary or tertiary sources of repayment.
Criticized or
compromised loans are currently protected but have weaknesses,
which, if not corrected, may be inadequately protected at some
future date. These loans represent an unwarranted credit risk and
would generally not be extended in the normal course of lending.
Specific issues which may warrant this grade include declining
financial results, increased reliance on secondary sources of
repayment or guarantor support and adverse external influences that
may negatively impact the business or property.
Substandard
and doubtful loans are equivalent to the classifications used by
banking regulators. Substandard loans are inadequately protected by
the current repayment capacity and equity of the borrower or
collateral pledged, if any. Substandard loans have one or more
well-defined weaknesses that jeopardize their repayment or
collection in full. These loans may or may not be reported as
non-accrual. Doubtful loans have all the weaknesses inherent to a
substandard loan with the added characteristic that full repayment
is highly questionable or improbable on the basis of currently
existing facts, conditions and collateral values. However,
recognition of loss may be deferred if there are reasonably
specific pending factors that will reduce the risk if they
occur.
The following
tables summarize commercial loans by their assigned risk
grade:
Commerical Loans by
Internally Assigned Risk Grade
(unaudited, in thousands) Commercial Commercial Commercial Total
As of June 30,
2015
Pass $ 302,514 $ 1,830,655 $ 711,497 $ 2,844,666
Criticized -
compromised 3,664 13,463 11,153 28,280
Classified -
substandard 2,707 41,110 10,828 54,645
Classified -
doubtful — — — —
Total $ 308,885 $ 1,885,228 $ 733,478 $ 2,927,591
As of
December 31, 2014
Pass $ 257,218 $ 1,627,771 $ 617,742 $ 2,502,731
Criticized -
compromised 3,645 17,873 12,770 34,288
Classified -
substandard 1,780 37,173 7,898 46,851
Classified -
doubtful — — — —
Total $ 262,643 $ 1,682,817 $ 638,410 $ 2,583,870
Residential
real estate, home equity and consumer loans are not assigned
internal risk grades other than as required by regulatory
guidelines that are based primarily on the age of past due loans.
WesBanco primarily evaluates the credit quality of residential real
estate, home equity and consumer loans based on repayment
performance and historical loss rates. The aggregate amount of
residential real estate, home equity and consumer loans classified
as substandard in accordance with regulatory guidelines were $15.3
million at June 30, 2015 and $15.2 million at
December 31, 2014, of which $2.3 and $2.2 million were
accruing, for each period, respectively. The aggregate amount of
residential real estate, home equity and consumer loans classified
as substandard are not included in the tables above.
Acquired
Loans
Loans
acquired with deteriorated credit quality are accounted for in
accordance with ASC 310-30, Loans and Debt Securities Acquired with
Deteriorated Credit Quality (ASC 310-30), and therefore impaired
if, at acquisition, the loans have evidence of credit quality
deterioration since origination and it is probable that all
contractually required payments will not be collected. At
acquisition, WesBanco considers several factors as indicators that
an acquired loan has evidence of deterioration in credit quality.
These factors include loans 90 days or more past due, loans with an
internal risk grade of substandard or below, loans classified as
non-accrual by the acquired institution, and loans that have been
previously modified as a TDR.
Acquired
loans that were not individually determined to be impaired are
considered performing and are accounted for in accordance with ASC
310-20, Nonrefundable Fees and Other Costs (ASC 310-20), whereby
the premium or discount derived from the fair market value
adjustment, on a loan-by-loan or pooled basis, is recognized into
interest income on a level yield over the remaining expected life
of the loan or pool.
Under the ASC
310-30 model, the excess of cash flows expected to be collected at
acquisition over recorded fair value is referred to as the
accretable yield and is the interest component of expected cash
flow. The accretable yield is recognized into income over the
remaining life of the loan if the timing and/or amount of cash
flows expected to be collected can be reasonably estimated. If the
timing or amount of cash flows expected to be collected cannot be
reasonably estimated, the cost recovery method of income
recognition is used. The difference between the loan’s total
scheduled principal and interest payments over all cash flows
expected to be collected at acquisition, considering the impact of
prepayments, is referred to as the non-accretable difference. The
non-accretable difference represents contractually required
principal and interest payments which WesBanco does not expect to
collect.
Over the life
of the loan, management continues to estimate cash flows expected
to be collected. Decreases in expected cash flows are recognized as
impairments through a charge to the provision for loan losses
resulting in an increase in the allowance for loan losses.
Subsequent improvements in cash flows result in first, reversal of
existing valuation allowances recognized subsequent to acquisition,
if any, and next, an increase in the amount of accretable yield to
be subsequently recognized in interest income on a prospective
basis over the loan’s remaining life.
In
conjunction with the ESB acquisition, WesBanco acquired loans with
a book value of $716.2 million. These loans were recorded at their
fair value of $700.9 million, with $690.1 million categorized as
performing. The fair market value adjustment on performing loans of
$10.0 million at acquisition date is expected to be recognized into
interest income on a level yield basis over the remaining expected
life of the performing loans.
Loans
acquired with deteriorated credit quality with a book value of
$16.1 million and contractually required payments of $21.7 million
were recorded at their estimated fair value of $10.8 million. The
accretable yield on the acquired impaired loans was estimated at
$1.9 million at the acquisition date with $1.6 million remaining at
June 30, 2015. For the six months ended June 30, 2015
accretion recognized in interest income on acquired impaired loans
was $0.3 million. The balance of loans acquired with deteriorated
credit quality at June 30, 2015, was $10.0 million, of which
$8.5 million were categorized as non-accrual and $1.5 million were
categorized as accruing TDRs, while the non-accretable difference
was $9.0 million. At June 30, 2015 no allowance for loan
losses has been recognized related to the acquired impaired
loans.
The following
tables summarize the age analysis of all categories of
loans:
Age Analysis of
Loans
(unaudited, in thousands) Current 30-59 Days 60-89 Days 90 Days Total Total Loans 90 Days
or Past Due and
As of June 30,
2015
Commercial real
estate:
Land and
construction $ 307,522 $ 252 $ — $ 1,111 $ 1,363 $ 308,885 $ —
Improved
property 1,870,393 1,304 797 12,734 14,835 1,885,228 180
Total commercial real
estate 2,177,915 1,556 797 13,845 16,198 2,194,113 180
Commercial and
industrial 729,815 356 896 2,411 3,663 733,478 3
Residential real
estate 1,229,198 1,014 3,322 7,936 12,272 1,241,470 1,838
Home equity 375,663 1,212 1,010 1,855 4,077 379,740 228
Consumer 381,146 2,753 618 327 3,698 384,844 222
Total portfolio
loans 4,893,737 6,891 6,643 26,374 39,908 4,933,645 2,471
Loans held for
sale 11,160 — — — — 11,160 —
Total loans $ 4,904,897 $ 6,891 $ 6,643 $ 26,374 $ 39,908 $ 4,944,805 $ 2,471
Impaired loans included
above are as follows:
Non-accrual
loans $ 21,964 $ 1,030 $ 1,641 $ 23,569 $ 26,240 $ 48,204
TDRs accruing
interest (1) 12,081 109 434 334 877 12,958
Total impaired $ 34,045 $ 1,139 $ 2,075 $ 23,903 $ 27,117 $ 61,162
As of
December 31, 2014
Commercial real
estate:
Land and
construction $ 261,356 $ 20 $ — $ 1,267 $ 1,287 $ 262,643 $ 71
Improved
property 1,665,363 961 4,772 11,721 17,454 1,682,817 —
Total commercial real
estate 1,926,719 981 4,772 12,988 18,741 1,945,460 71
Commercial and
industrial 634,482 1,834 240 1,854 3,928 638,410 22
Residential real
estate 915,968 1,237 3,384 8,181 12,802 928,770 1,306
Home equity 325,291 1,877 895 1,968 4,740 330,031 570
Consumer 240,365 2,571 685 474 3,730 244,095 319
Total portfolio
loans 4,042,825 8,500 9,976 25,465 43,941 4,086,766 2,288
Loans held for
sale 5,865 — — — — 5,865 —
Total loans $ 4,048,690 $ 8,500 $ 9,976 $ 25,465 $ 43,941 $ 4,092,631 $ 2,288
Impaired loans included
above are as follows:
Non-accrual
loans $ 7,562 $ 2,884 $ 5,552 $ 22,820 $ 31,256 $ 38,818
TDRs accruing
interest (1) 11,016 151 542 357 1,050 12,066
Total impaired $ 18,578 $ 3,035 $ 6,094 $ 23,177 $ 32,306 $ 50,884
(1)
Loans 90 days or more past due and accruing interest exclude
TDRs 90 days or more past due and accruing interest.
Impaired
Loans —
Loans are
generally placed on non-accrual when they are 90 days past due
unless the loan is well-secured and in the process of collection.
Loans may also be placed on non-accrual when full collection of
principal is in doubt even if payments on such loans remain
current, or may remain on non-accrual if they were past due but
subsequently brought current.
Loans are
categorized as TDRs when the Bank, for economic or legal reasons
related to a borrower’s financial difficulties, grants a
concession to the borrower that it would not otherwise
consider.
Acquired
loans that have experienced a deterioration of credit quality from
origination to acquisition for which it is probable that WesBanco
will be unable to collect all contractually required payments
receivable, including both principal and interest, are considered
impaired.
The following
tables summarize impaired loans:
Impaired
Loans
June 30,
2015 December 31,
2014
(unaudited, in thousands) Unpaid Recorded Related Unpaid Recorded Related
With no related
specific allowance recorded:
Commercial real
estate:
Land and
construction $ 2,711 $ 2,509 $ — $ 1,588 $ 1,488 $ —
Improved
property 28,520 21,001 — 16,480 14,684 —
Commercial and
industrial 5,926 3,461 — 3,152 2,597 —
Residential real
estate 19,914 17,967 — 20,077 18,544 —
Home equity 3,293 2,995 — 2,890 2,663 —
Consumer 1,522 1,189 — 1,287 1,086 —
Total impaired loans
without a specific allowance 61,886 49,122 — 45,474 41,062 —
With a specific
allowance recorded:
Commercial real
estate:
Land and
construction — — — — — —
Improved
property 7,511 7,511 2,891 7,980 7,980 2,765
Commercial and
industrial 5,833 4,529 1,021 1,842 1,842 1,033
Total impaired loans with
a specific allowance 13,344 12,040 3,912 9,822 9,822 3,798
Total impaired
loans $ 75,230 $ 61,162 $ 3,912 $ 55,296 $ 50,884 $ 3,798
(1)
The difference between the unpaid principal balance and the
recorded investment generally reflects amounts that have been
previously charged-off and fair market value adjustments on
acquired impaired loans.
Impaired
Loans
For the Three Months
Ended For the Six Months
Ended
June 30, 2015 June 30, 2014 June 30,
2015 June 30,
2014
Average Interest Average Interest Average Interest Average Interest
Recorded Income Recorded Income Recorded Income Recorded Income
(unaudited, in thousands) Investment Recognized Investment Recognized Investment Recognized Investment Recognized
With no related
specific allowance recorded:
Commercial real
estate:
Land and
construction $ 2,493 $ 2 $ 2,143 $ 13 $ 2,158 $ 18 $ 2,283 $ 15
Improved
Property 21,741 240 18,572 133 19,389 463 18,924 153
Commercial and
industrial 2,947 49 4,122 57 2,830 62 3,831 89
Residential real
estate 18,550 235 18,864 209 18,548 465 19,272 391
Home equity 2,806 21 2,173 16 2,758 41 2,284 35
Consumer 1,261 26 1,135 18 1,202 46 1,150 46
Total impaired loans
without a specific allowance 49,798 573 47,009 446 46,885 1,095 47,744 729
With a specific
allowance recorded:
Commercial real
estate:
Land and
construction — — — — — — — —
Improved
Property 6,989 56 727 3 7,319 56 727 4
Commercial and
industrial 3,149 118 2,537 29 2,713 137 2,206 41
Total impaired loans with
a specific allowance 10,138 174 3,264 32 10,032 193 2,933 45
Total impaired
loans $ 59,936 $ 747 $ 50,273 $ 478 $ 56,917 $ 1,288 $ 50,677 $ 774
The following
tables present the recorded investment in non-accrual loans and
TDRs:
Non-accrual
Loans (1)
(unaudited, in thousands) June 30, 2015 December 31, 2014
Commercial real
estate:
Land and
construction $ 1,382 $ 1,488
Improved
property 26,103 20,227
Total commercial real
estate 27,485 21,715
Commercial and
industrial 7,664 4,110
Residential real
estate 10,117 10,329
Home equity 2,251 1,923
Consumer 687 741
Total $ 48,204 $ 38,818
(1)
Total non-accrual loans include loans that are also
restructured. Such loans are also set forth in the following table
as non-accrual TDRs.
TDRs
June 30,
2015 December 31,
2014
(unaudited, in thousands) Accruing Non- Accrual Total Accruing Non- Accrual Total
Commercial real
estate:
Land and
construction $ 1,127 $ 501 $ 1,628 $ — $ 464 $ 464
Improved
property 2,409 9,761 12,170 2,437 1,850 4,287
Total commercial real
estate 3,536 10,262 13,798 2,437 2,314 4,751
Commercial and
industrial 326 293 619 329 478 807
Residential real
estate 7,850 2,089 9,939 8,215 2,074 10,289
Home equity 744 278 1,022 740 245 985
Consumer 502 218 720 345 309 654
Total $ 12,958 $ 13,140 $ 26,098 $ 12,066 $ 5,420 $ 17,486
As of
June 30, 2015, there were two TDRs greater than $1.0 million.
The concessions granted in the majority of loans reported as
accruing and non-accrual TDRs are extensions of the maturity date
or the amortization period, reductions in the interest rate below
the prevailing market rate for loans with comparable
characteristics, and/or permitting interest-only payments for
longer than three months.
WesBanco had
unfunded commitments to debtors whose loans were classified as
impaired of $1.3 million and $0 as of June 30, 2015 and
December 31, 2014, respectively.
The following
table presents details related to loans identified as TDRs during
the three and six months ended June 30, 2015 and 2014,
respectively:
New TDRs (1)
For the Three Months
Ended
June 30,
2015 June 30,
2014
Pre- Post- Pre- Post-
Modification Modification Modification Modification
Outstanding Outstanding Outstanding Outstanding
Number
of Recorded Recorded Number
of Recorded Recorded
(unaudited, dollars in thousands) Modifications Investment Investment Modifications Investment Investment
Commercial real
estate:
Land and
construction — $ — $ — — $ — $ —
Improved
Property — — — 1 112 112
Total commercial real
estate — — — 1 112 112
Commercial and
industrial — — — — — —
Residential real
estate 1 41 39 2 70 70
Home equity — — — — — —
Consumer — — — 9 100 93
Total 1 $ 41 $ 39 12 $ 282 $ 275
(1)
Excludes loans that were either paid off or charged-off by
period end. The pre-modification balance represents the balance
outstanding at the beginning of the period. The post-modification
balance represents the outstanding balance at period
end.
New TDRs (1)
For the Six Months
Ended
June 30,
2015 June 30,
2014
Pre- Post- Pre- Post-
Modification Modification Modification Modification
Outstanding Outstanding Outstanding Outstanding
Number
of Recorded Recorded Number
of Recorded Recorded
(unaudited, dollars in thousands) Modifications Investment Investment Modifications Investment Investment
Commercial real
estate:
Land and
construction 9 $ 1,239 $ 1,160 — $ — $ —
Improved
Property 7 9,336 8,784 2 203 201
Total commercial real
estate 16 10,575 9,944 2 203 201
Commercial and
industrial 2 42 53 — — —
Residential real
estate 8 466 455 5 189 185
Home equity 1 7 6 — — —
Consumer 19 279 273 11 138 123
Total 46 $ 11,369 $ 10,731 18 $ 530 $ 509
(1)
Excludes loans that were either paid off or charged-off by
period end. The pre-modification balance represents the balance
outstanding at the beginning of the period. The post-modification
balance represents the outstanding balance at period
end.
The following
tables summarize TDRs which defaulted (defined as past due 90 days)
during the six months ended June 30, 2015 and 2014,
respectively, that were restructured within the last twelve months
prior to June 30, 2015 and 2014, respectively:
Defaulted
TDRs (1)
For the Six Months
Ended
June 30,
2015 June 30,
2014
Number of Recorded Number of Recorded
(unaudited, dollars in thousands) Defaults Investment Defaults Investment
Commercial real
estate:
Land and
construction — $ — — $ —
Improved
property — — — —
Total commercial real
estate — — — —
Commercial and
industrial — — — —
Residential real
estate — — 4 236
Home equity 1 42 — —
Consumer — — — —
Total 1 $ 42 4 $ 236
(1)
Excludes loans that were either charged-off or cured by period
end. The recorded investment is as of June 30, 2015 and 2014,
respectively.
TDRs that
defaulted during the six month period that were restructured within
the last twelve months represented less than 1.0% of the total TDR
balance at June 30, 2015. These loans are placed on
non-accrual status unless they are both well-secured and in the
process of collection. At June 30, 2015, the loan in the table
above was not accruing interest.
The following
table summarizes other real estate owned and repossessed assets
included in other assets:
June 30, December 31,
(unaudited, in thousands) 2015 2014
Other real estate
owned $ 5,912 $ 4,920
Repossessed
assets 256 162
Total other real estate
owned and repossessed assets $ 6,168 $ 5,082
Residential
real estate included in other real estate owned at June 30,
2015 and December 31, 2014 was $1.9 million and $0.6 million,
respectively. At June 30, 2015, formal foreclosure proceedings
were in process on residential real estate loans totaling $3.6
million. |
