Loans | 9 Months Ended |
Sep. 30, 2013 |
Receivables [Abstract] | ' |
Loans | ' |
NOTE 4 – LOANS |
The Company engages in a full complement of lending activities, including real estate-related loans, agriculture-related loans, commercial and financial loans and consumer installment loans within select markets in Georgia, Alabama, Florida and South Carolina. Ameris concentrates the majority of its lending activities in real estate loans. While risk of loss in the Company’s portfolio is primarily tied to the credit quality of the various borrowers, risk of loss may increase due to factors beyond the Company’s control, such as local, regional and/or national economic downturns. General conditions in the real estate market may also impact the relative risk in the real estate portfolio. |
Commercial, financial and agricultural loans include both secured and unsecured loans for working capital, expansion, crop production, and other business purposes. Short-term working capital loans are secured by non-real estate collateral such as accounts receivable, crops, inventory and equipment. The Company evaluates the financial strength, cash flow, management, credit history of the borrower and the quality of the collateral securing the loan. The Bank often requires personal guarantees and secondary sources of repayment on commercial, financial and agricultural loans. |
Real estate loans include construction and development loans, commercial and farmland loans and residential loans. Construction and development loans include loans for the development of residential neighborhoods, construction of one-to-four family residential construction loans to builders and consumers, and commercial real estate construction loans, primarily for owner-occupied properties. The Company limits its construction lending risk through adherence to established underwriting procedures. Commercial real estate loans include loans secured by owner-occupied commercial buildings for office, storage, retail, farmland and warehouse space. They also include non-owner occupied commercial buildings such as leased retail and office space. Commercial real estate loans may be larger in size and may involve a greater degree of risk than one-to-four family residential mortgage loans. Payments on such loans are often dependent on successful operation or management of the properties. The Company’s residential loans represent permanent mortgage financing and are secured by residential properties located within the Bank’s market areas. |
Consumer installment loans and other loans include automobile loans, boat and recreational vehicle financing, and both secured and unsecured personal loans. Consumer loans carry greater risks than other loans, as the collateral can consist of rapidly depreciating assets such as automobiles and equipment that may not provide an adequate source of repayment of the loan in the case of default. |
Loans are stated at unpaid balances, net of unearned income and deferred loan fees. Balances within the major loans receivable categories are presented in the following table: |
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(Dollars in Thousands) | | September 30, | | | December 31, | | | September 30, | | | | | | | | | | | | | | | | | |
2013 | 2012 | 2012 | | | | | | | | | | | | | | | | |
Commercial, financial and agricultural | | $ | 244,991 | | | $ | 174,217 | | | $ | 189,374 | | | | | | | | | | | | | | | | | |
Real estate – construction and development | | | 132,277 | | | | 114,199 | | | | 125,315 | | | | | | | | | | | | | | | | | |
Real estate – commercial and farmland | | | 799,149 | | | | 732,322 | | | | 713,240 | | | | | | | | | | | | | | | | | |
Real estate – residential | | | 355,920 | | | | 346,480 | | | | 343,332 | | | | | | | | | | | | | | | | | |
Consumer installment | | | 36,303 | | | | 40,178 | | | | 43,441 | | | | | | | | | | | | | | | | | |
Other | | | 20,627 | | | | 43,239 | | | | 25,160 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 1,589,267 | | | $ | 1,450,635 | | | $ | 1,439,862 | | | | | | | | | | | | | | | | | |
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Covered loans are defined as loans that were acquired in FDIC-assisted transactions that are covered by a loss-sharing agreement with the FDIC. Covered loans totaling $417.6 million, $507.7 million and $546.2 million at September 30, 2013, December 31, 2012 and September 30, 2012, respectively, are not included in the above schedule. |
Covered loans are shown below according to loan type as of the end of the periods shown: |
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(Dollars in Thousands) | | September 30, | | | December 31, | | | September 30, | | | | | | | | | | | | | | | | | |
2013 | 2012 | 2012 | | | | | | | | | | | | | | | | |
Commercial, financial and agricultural | | $ | 27,768 | | | $ | 32,606 | | | $ | 37,167 | | | | | | | | | | | | | | | | | |
Real estate – construction and development | | | 50,702 | | | | 70,184 | | | | 73,356 | | | | | | | | | | | | | | | | | |
Real estate – commercial and farmland | | | 237,086 | | | | 278,506 | | | | 298,903 | | | | | | | | | | | | | | | | | |
Real estate – residential | | | 101,146 | | | | 125,056 | | | | 135,154 | | | | | | | | | | | | | | | | | |
Consumer installment | | | 947 | | | | 1,360 | | | | 1,654 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 417,649 | | | $ | 507,712 | | | $ | 546,234 | | | | | | | | | | | | | | | | | |
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Nonaccrual and Past Due Loans |
A loan is placed on nonaccrual status when, in management’s judgment, the collection of the interest income appears doubtful. Interest receivable that has been accrued and is subsequently determined to have doubtful collectability is charged to interest income. Interest on loans that are classified as non-accrual is recognized when received. Past due loans are loans whose principal or interest is past due 90 days or more. In some cases, where borrowers are experiencing financial difficulties, loans may be restructured to provide terms significantly different from the original contractual terms. |
The following table presents an analysis of non-covered loans accounted for on a nonaccrual basis: |
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(Dollars in Thousands) | | September 30, | | | December 31, | | | September 30, | | | | | | | | | | | | | | | | | |
2013 | 2012 | 2012 | | | | | | | | | | | | | | | | |
Commercial, financial and agricultural | | $ | 4,198 | | | $ | 4,138 | | | $ | 4,285 | | | | | | | | | | | | | | | | | |
Real estate – construction and development | | | 4,229 | | | | 9,281 | | | | 8,201 | | | | | | | | | | | | | | | | | |
Real estate – commercial and farmland | | | 9,548 | | | | 11,962 | | | | 11,408 | | | | | | | | | | | | | | | | | |
Real estate – residential | | | 13,303 | | | | 12,595 | | | | 13,236 | | | | | | | | | | | | | | | | | |
Consumer installment | | | 442 | | | | 909 | | | | 1,095 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 31,720 | | | $ | 38,885 | | | $ | 38,225 | | | | | | | | | | | | | | | | | |
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The following table presents an analysis of covered loans accounted for on a nonaccrual basis: |
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(Dollars in Thousands) | | September 30, | | | December 31, | | | September 30, | | | | | | | | | | | | | | | | | |
2013 | 2012 | 2012 | | | | | | | | | | | | | | | | |
Commercial, financial and agricultural | | $ | 7,872 | | | $ | 10,765 | | | $ | 11,938 | | | | | | | | | | | | | | | | | |
Real estate – construction and development | | | 16,582 | | | | 20,027 | | | | 21,971 | | | | | | | | | | | | | | | | | |
Real estate – commercial and farmland | | | 37,079 | | | | 55,946 | | | | 58,377 | | | | | | | | | | | | | | | | | |
Real estate – residential | | | 13,028 | | | | 28,672 | | | | 31,189 | | | | | | | | | | | | | | | | | |
Consumer installment | | | 350 | | | | 302 | | | | 426 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 74,911 | | | $ | 115,712 | | | $ | 123,901 | | | | | | | | | | | | | | | | | |
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The following table presents an aging analysis of non-covered loans as of September 30, 2013, December 31, 2012 and September 30, 2012. |
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| | Loans | | | Loans | | | Loans 90 | | | Total | | | Current | | | Total | | | Loans 90 | |
30-59 | 60-89 | or More | Loans | Loans | Loans | Days or |
Days Past | Days | Days Past | Past Due | | | More Past |
Due | Past Due | Due | | | | Due and |
| | | | | | Still |
| | | | | | Accruing |
| | (Dollars in Thousands) | |
As of September 30, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 623 | | | $ | 297 | | | $ | 4,107 | | | $ | 5,027 | | | $ | 239,964 | | | $ | 244,991 | | | $ | — | |
Real estate – construction & development | | | 1,200 | | | | 794 | | | | 4,229 | | | | 6,223 | | | | 126,054 | | | | 132,277 | | | | — | |
Real estate – commercial & farmland | | | 3,883 | | | | 2,458 | | | | 9,523 | | | | 15,864 | | | | 783,285 | | | | 799,149 | | | | — | |
Real estate – residential | | | 5,515 | | | | 3,531 | | | | 11,818 | | | | 20,864 | | | | 335,056 | | | | 355,920 | | | | — | |
Consumer installment loans | | | 497 | | | | 255 | | | | 327 | | | | 1,079 | | | | 35,224 | | | | 36,303 | | | | — | |
Other | | | — | | | | — | | | | — | | | | — | | | | 20,627 | | | | 20,627 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 11,718 | | | $ | 7,335 | | | $ | 30,004 | | | $ | 49,057 | | | $ | 1,540,210 | | | $ | 1,589,267 | | | $ | — | |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Loans | | | Loans | | | Loans 90 | | | Total | | | Current | | | Total | | | Loans 90 | |
30-59 | 60-89 | or More | Loans | Loans | Loans | Days or |
Days Past | Days | Days Past | Past Due | | | More Past |
Due | Past Due | Due | | | | Due and |
| | | | | | Still |
| | | | | | Accruing |
| | (Dollars in Thousands) | |
As of December 30, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 258 | | | $ | 312 | | | $ | 3,969 | | | $ | 4,539 | | | $ | 169,678 | | | $ | 174,217 | | | $ | — | |
Real estate – construction & development | | | 347 | | | | 332 | | | | 8,969 | | | | 9,648 | | | | 104,551 | | | | 114,199 | | | | — | |
Real estate – commercial & farmland | | | 2,867 | | | | 2,296 | | | | 9,544 | | | | 14,707 | | | | 717,615 | | | | 732,322 | | | | — | |
Real estate – residential | | | 7,651 | | | | 2,766 | | | | 10,990 | | | | 21,407 | | | | 325,073 | | | | 346,480 | | | | — | |
Consumer installment loans | | | 702 | | | | 391 | | | | 815 | | | | 1,908 | | | | 38,270 | | | | 40,178 | | | | — | |
Other | | | — | | | | — | | | | — | | | | — | | | | 43,239 | | | | 43,239 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 11,825 | | | $ | 6,097 | | | $ | 34,287 | | | $ | 52,209 | | | $ | 1,398,426 | | | $ | 1,450,635 | | | $ | — | |
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| | Loans | | | Loans | | | Loans 90 | | | Total | | | Current | | | Total | | | Loans 90 | |
30-59 | 60-89 | or More | Loans | Loans | Loans | Days or |
Days Past | Days | Days Past | Past Due | | | More Past |
Due | Past Due | Due | | | | Due and |
| | | | | | Still |
| | | | | | Accruing |
| | (Dollars in Thousands) | |
As of September 30, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 1,192 | | | $ | 639 | | | $ | 3,786 | | | $ | 5,617 | | | $ | 183,757 | | | $ | 189,374 | | | $ | — | |
Real estate – construction & development | | | 518 | | | | 152 | | | | 8,180 | | | | 8,850 | | | | 116,465 | | | | 125,315 | | | | — | |
Real estate – commercial & farmland | | | 3,507 | | | | 812 | | | | 11,402 | | | | 15,721 | | | | 697,519 | | | | 713,240 | | | | — | |
Real estate – residential | | | 7,200 | | | | 2,346 | | | | 12,372 | | | | 21,918 | | | | 321,414 | | | | 343,332 | | | | — | |
Consumer installment loans | | | 687 | | | | 284 | | | | 993 | | | | 1,964 | | | | 41,477 | | | | 43,441 | | | | — | |
Other | | | — | | | | — | | | | — | | | | — | | | | 25,160 | | | | 25,160 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 13,104 | | | $ | 4,233 | | | $ | 36,733 | | | $ | 54,070 | | | $ | 1,385,792 | | | $ | 1,439,862 | | | $ | — | |
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The following table presents an aging analysis of covered loans as of September 30, 2013, December 31, 2012 and September 30, 2012. |
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| | Loans | | | Loans | | | Loans 90 | | | Total | | | Current | | | Total | | | Loans 90 | |
30-59 | 60-89 | or More | Loans | Loans | Loans | Days or |
Days Past | Days | Days Past | Past Due | | | More Past |
Due | Past Due | Due | | | | Due and |
| | | | | | Still |
| | | | | | Accruing |
| | (Dollars in Thousands) | |
As of September 30, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 319 | | | $ | 50 | | | $ | 6,695 | | | $ | 7,064 | | | $ | 20,704 | | | $ | 27,768 | | | $ | — | |
Real estate – construction & development | | | 2,831 | | | | 658 | | | | 15,781 | | | | 19,270 | | | | 31,432 | | | | 50,702 | | | | 266 | |
Real estate – commercial & farmland | | | 7,365 | | | | 5,350 | | | | 30,503 | | | | 43,218 | | | | 193,868 | | | | 237,086 | | | | 568 | |
Real estate – residential | | | 2,980 | | | | 1,727 | | | | 11,078 | | | | 15,785 | | | | 85,361 | | | | 101,146 | | | | 823 | |
Consumer installment loans | | | 49 | | | | — | | | | 311 | | | | 360 | | | | 587 | | | | 947 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 13,544 | | | $ | 7,785 | | | $ | 64,368 | | | $ | 85,697 | | | $ | 331,952 | | | $ | 417,649 | | | $ | 1,657 | |
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| | Loans | | | Loans | | | Loans 90 | | | Total | | | Current | | | Total | | | Loans 90 | |
30-59 | 60-89 | or More | Loans | Loans | Loans | Days or |
Days Past | Days | Days Past | Past Due | | | More Past |
Due | Past Due | Due | | | | Due and |
| | | | | | Still |
| | | | | | Accruing |
| | (Dollars in Thousands) | |
As of December 30, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 2,390 | | | $ | 1,105 | | | $ | 10,612 | | | $ | 14,107 | | | $ | 18,499 | | | $ | 32,606 | | | $ | 98 | |
Real estate – construction & development | | | 1,584 | | | | 2,592 | | | | 19,656 | | | | 23,832 | | | | 46,352 | | | | 70,184 | | | | 1,077 | |
Real estate – commercial & farmland | | | 11,451 | | | | 7,373 | | | | 52,570 | | | | 71,394 | | | | 207,112 | | | | 278,506 | | | | 1,347 | |
Real estate – residential | | | 6,066 | | | | 3,396 | | | | 24,976 | | | | 34,438 | | | | 90,618 | | | | 125,056 | | | | 779 | |
Consumer installment loans | | | 45 | | | | 13 | | | | 258 | | | | 316 | | | | 1,044 | | | | 1,360 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 21,536 | | | $ | 14,479 | | | $ | 108,072 | | | $ | 144,087 | | | $ | 363,625 | | | $ | 507,712 | | | $ | 3,301 | |
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| | Loans | | | Loans | | | Loans 90 | | | Total | | | Current | | | Total | | | Loans 90 | |
30-59 | 60-89 | or More | Loans | Loans | Loans | Days or |
Days Past | Days | Days Past | Past Due | | | More Past |
Due | Past Due | Due | | | | Due and |
| | | | | | Still |
| | | | | | Accruing |
| | (Dollars in Thousands) | |
As of September 30, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 1,384 | | | $ | 788 | | | $ | 11,315 | | | $ | 13,487 | | | $ | 23,680 | | | $ | 37,167 | | | $ | — | |
Real estate – construction & development | | | 3,611 | | | | 1,663 | | | | 22,194 | | | | 27,468 | | | | 45,888 | | | | 73,356 | | | | 2,312 | |
Real estate – commercial & farmland | | | 7,072 | | | | 6,559 | | | | 51,382 | | | | 65,013 | | | | 233,890 | | | | 298,903 | | | | 808 | |
Real estate – residential | | | 4,702 | | | | 3,349 | | | | 28,559 | | | | 36,610 | | | | 98,544 | | | | 135,154 | | | | 1,018 | |
Consumer installment loans | | | 56 | | | | 92 | | | | 255 | | | | 403 | | | | 1,251 | | | | 1,654 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 16,825 | | | $ | 12,451 | | | $ | 113,705 | | | $ | 142,981 | | | $ | 403,253 | | | $ | 546,234 | | | $ | 4,138 | |
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Impaired Loans |
Loans are considered impaired when, based on current information and events, it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreements. When determining if the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement, the Company considers the borrower’s capacity to pay, which includes such factors as the borrower’s current financial statements, an analysis of global cash flow sufficient to pay all debt obligations and an evaluation of secondary sources of repayment, such as guarantor support and collateral value. Impaired loans include loans on nonaccrual status and troubled debt restructurings. The Company individually assesses for impairment all nonaccrual loans greater than $200,000 and rated substandard or worse and all troubled debt restructurings greater than $100,000. If a loan is deemed impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. |
The following is a summary of information pertaining to non-covered impaired loans: |
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| | As of and For the Period Ended | | | | | | | | | | | | | | | | | |
| | September 30, | | | December 31, | | | September 30, | | | | | | | | | | | | | | | | | |
2013 | 2012 | 2012 | | | | | | | | | | | | | | | | |
| | (Dollars in Thousands) | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | $ | 31,720 | | | $ | 38,885 | | | $ | 38,225 | | | | | | | | | | | | | | | | | |
Troubled debt restructurings not included above | | | 17,024 | | | | 18,744 | | | | 19,893 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total impaired loans | | $ | 48,744 | | | $ | 57,629 | | | $ | 58,118 | | | | | | | | | | | | | | | | | |
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| | | | | | | | | | | | | | | | | | | |
Impaired loans not requiring a related allowance | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | |
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Impaired loans requiring a related allowance | | $ | 48,744 | | | $ | 57,629 | | | $ | 58,118 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance related to impaired loans | | $ | 5,180 | | | $ | 5,115 | | | $ | 7,681 | | | | | | | | | | | | | | | | | |
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Average investment in impaired loans | | $ | 53,047 | | | $ | 70,209 | | | $ | 73,353 | | | | | | | | | | | | | | | | | |
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Interest income recognized on impaired loans | | $ | 468 | | | $ | 495 | | | $ | 376 | | | | | | | | | | | | | | | | | |
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Foregone interest income on impaired loans | | $ | 388 | | | $ | 718 | | | $ | 491 | | | | | | | | | | | | | | | | | |
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The following table presents an analysis of information pertaining to non-covered impaired loans as of September 30, 2013, December 31, 2012 and September 30, 2012. |
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| | Unpaid | | | Recorded | | | Recorded | | | Total | | | Related | | | Average | | | | | |
Contractual | Investment | Investment | Recorded | Allowance | Recorded | | | | |
Principal | With No | With | Investment | | Investment | | | | |
Balance | Allowance | Allowance | | | | | | | |
| | (Dollars in Thousands) | | | | | |
As of September 30, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 7,401 | | | $ | — | | | $ | 4,719 | | | $ | 4,719 | | | $ | 820 | | | $ | 4,900 | | | | | |
Real estate – construction & development | | | 14,299 | | | | — | | | | 6,155 | | | | 6,155 | | | | 821 | | | | 8,960 | | | | | |
Real estate – commercial & farmland | | | 18,628 | | | | — | | | | 16,241 | | | | 16,241 | | | | 1,999 | | | | 18,079 | | | | | |
Real estate – residential | | | 24,701 | | | | — | | | | 21,174 | | | | 21,174 | | | | 1,530 | | | | 20,427 | | | | | |
Consumer installment loans | | | 565 | | | | — | | | | 455 | | | | 455 | | | | 10 | | | | 681 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 65,594 | | | $ | — | | | $ | 48,744 | | | $ | 48,744 | | | $ | 5,180 | | | $ | 53,047 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Unpaid | | | Recorded | | | Recorded | | | Total | | | Related | | | Average | | | | | |
Contractual | Investment | Investment | Recorded | Allowance | Recorded | | | | |
Principal | With No | With | Investment | | Investment | | | | |
Balance | Allowance | Allowance | | | | | | | |
| | (Dollars in Thousands) | | | | | |
As of December 31, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 8,024 | | | $ | — | | | $ | 4,940 | | | $ | 4,940 | | | $ | 743 | | | $ | 4,968 | | | | | |
Real estate – construction & development | | | 20,316 | | | | — | | | | 11,016 | | | | 11,016 | | | | 910 | | | | 11,706 | | | | | |
Real estate – commercial & farmland | | | 25,076 | | | | — | | | | 20,910 | | | | 20,910 | | | | 2,191 | | | | 30,638 | | | | | |
Real estate – residential | | | 24,155 | | | | — | | | | 19,848 | | | | 19,848 | | | | 1,246 | | | | 21,813 | | | | | |
Consumer installment loans | | | 1,187 | | | | — | | | | 915 | | | | 915 | | | | 25 | | | | 1,084 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 78,758 | | | $ | — | | | $ | 57,629 | | | $ | 57,629 | | | $ | 5,115 | | | $ | 70,209 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Unpaid | | | Recorded | | | Recorded | | | Total | | | Related | | | Average | | | | | |
Contractual | Investment | Investment | Recorded | Allowance | Recorded | | | | |
Principal | With No | With | Investment | | Investment | | | | |
Balance | Allowance | Allowance | | | | | | | |
| | (Dollars in Thousands) | | | | | |
As of September 30, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 8,261 | | | $ | — | | | $ | 5,089 | | | $ | 5,089 | | | $ | 876 | | | $ | 4,974 | | | | | |
Real estate – construction & development | | | 19,583 | | | | — | | | | 9,682 | | | | 9,682 | | | | 1,253 | | | | 11,879 | | | | | |
Real estate – commercial & farmland | | | 25,346 | | | | — | | | | 20,948 | | | | 20,948 | | | | 2,907 | | | | 33,070 | | | | | |
Real estate – residential | | | 24,993 | | | | — | | | | 21,304 | | | | 21,304 | | | | 2,616 | | | | 22,303 | | | | | |
Consumer installment loans | | | 1,220 | | | | — | | | | 1,095 | | | | 1,095 | | | | 29 | | | | 1,127 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 79,403 | | | $ | — | | | $ | 58,118 | | | $ | 58,118 | | | $ | 7,681 | | | $ | 73,353 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following is a summary of information pertaining to covered impaired loans: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of and For the Period Ended | | | | | | | | | | | | | | | | | |
| | September 30, | | | December 31, | | | September 30, | | | | | | | | | | | | | | | | | |
2013 | 2012 | 2012 | | | | | | | | | | | | | | | | |
| | (Dollars in Thousands) | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | $ | 74,911 | | | $ | 115,712 | | | $ | 123,901 | | | | | | | | | | | | | | | | | |
Troubled debt restructurings not included above | | | 21,184 | | | | 19,194 | | | | 25,926 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total impaired loans | | $ | 96,095 | | | $ | 134,906 | | | $ | 149,827 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Impaired loans not requiring a related allowance | | $ | 96,095 | | | $ | 134,906 | | | $ | 149,827 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Impaired loans requiring a related allowance | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance related to impaired loans | | $ | — | | | $ | — | | | $ | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Average investment in impaired loans | | $ | 115,689 | | | $ | 163,825 | | | $ | 171,055 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest income recognized on impaired loans | | $ | 793 | | | $ | 849 | | | $ | 1,319 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foregone interest income on impaired loans | | $ | 286 | | | $ | 491 | | | $ | 554 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents an analysis of information pertaining to impaired covered loans as of September 30, 2013, December 31, 2012 and September 30, 2012. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Unpaid | | | Recorded | | | Recorded | | | Total | | | Related | | | Average | | | | | |
Contractual | Investment | Investment | Recorded | Allowance | Recorded | | | | |
Principal | With No | With | Investment | | Investment | | | | |
Balance | Allowance | Allowance | | | | | | | |
| | (Dollars in Thousands) | | | | | |
As of September 30, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 10,645 | | | $ | 7,884 | | | $ | — | | | $ | 7,884 | | | $ | — | | | $ | 9,052 | | | | | |
Real estate – construction & development | | | 25,401 | | | | 20,890 | | | | — | | | | 20,890 | | | | — | | | | 22,734 | | | | | |
Real estate – commercial & farmland | | | 51,105 | | | | 43,279 | | | | — | | | | 43,279 | | | | — | | | | 54,292 | | | | | |
Real estate – residential | | | 28,078 | | | | 23,692 | | | | — | | | | 23,692 | | | | — | | | | 29,316 | | | | | |
Consumer installment loans | | | 404 | | | | 350 | | | | — | | | | 350 | | | | — | | | | 295 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 115,633 | | | $ | 96,095 | | | $ | — | | | $ | 96,095 | | | $ | — | | | $ | 115,689 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Unpaid | | | Recorded | | | Recorded | | | Total | | | Related | | | Average | | | | | |
Contractual | Investment | Investment | Recorded | Allowance | Recorded | | | | |
Principal | With No | With | Investment | | Investment | | | | |
Balance | Allowance | Allowance | | | | | | | |
| | (Dollars in Thousands) | | | | | |
As of December 31, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 27,060 | | | $ | 10,802 | | | $ | — | | | $ | 10,802 | | | $ | — | | | $ | 12,506 | | | | | |
Real estate – construction & development | | | 85,279 | | | | 23,236 | | | | — | | | | 23,236 | | | | — | | | | 29,970 | | | | | |
Real estate – commercial & farmland | | | 159,493 | | | | 64,231 | | | | — | | | | 64,231 | | | | — | | | | 78,790 | | | | | |
Real estate – residential | | | 63,559 | | | | 36,335 | | | | — | | | | 36,335 | | | | — | | | | 42,061 | | | | | |
Consumer installment loans | | | 393 | | | | 302 | | | | — | | | | 302 | | | | — | | | | 498 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 335,784 | | | $ | 134,906 | | | $ | — | | | $ | 134,906 | | | $ | — | | | $ | 163,825 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Unpaid | | | Recorded | | | Recorded | | | Total | | | Related | | | Average | | | | | |
Contractual | Investment | Investment | Recorded | Allowance | Recorded | | | | |
Principal | With No | With | Investment | | Investment | | | | |
Balance | Allowance | Allowance | | | | | | | |
| | (Dollars in Thousands) | | | | | |
As of September 30, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 17,833 | | | $ | 11,976 | | | $ | — | | | $ | 11,976 | | | $ | — | | | $ | 12,932 | | | | | |
Real estate – construction & development | | | 34,787 | | | | 23,833 | | | | — | | | | 23,833 | | | | — | | | | 31,653 | | | | | |
Real estate – commercial & farmland | | | 98,909 | | | | 72,802 | | | | — | | | | 72,802 | | | | — | | | | 82,430 | | | | | |
Real estate – residential | | | 54,020 | | | | 40,790 | | | | — | | | | 40,790 | | | | — | | | | 43,492 | | | | | |
Consumer installment loans | | | 890 | | | | 426 | | | | — | | | | 426 | | | | — | | | | 548 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 206,439 | | | $ | 149,827 | | | $ | — | | | $ | 149,827 | | | $ | — | | | $ | 171,055 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit Quality Indicators |
The Company uses a nine category risk grading system to assign a risk grade to each loan in the portfolio. Following is a description of the general characteristics of the grades: |
Grade 10 – Prime Credit – This grade represents loans to the Company’s most creditworthy borrowers or loans that are secured by cash or cash equivalents. |
Grade 15 – Good Credit – This grade includes loans that exhibit one or more characteristics better than that of a Satisfactory Credit. Generally, debt service coverage and borrower’s liquidity is materially better than required by the Company’s loan policy. |
Grade 20 – Satisfactory Credit – This grade is assigned to loans to borrowers who exhibit satisfactory credit histories, contain acceptable loan structures and demonstrate ability to repay. |
Grade 23 – Performing, Under-Collateralized Credit – This grade is assigned to loans that are currently performing and supported by adequate financial information that reflects repayment capacity but exhibits a loan-to-value ratio greater than 110%, based on a documented collateral valuation. |
|
Grade 25 – Minimum Acceptable Credit – This grade includes loans which exhibit all the characteristics of a Satisfactory Credit, but warrant more than normal level of banker supervision due to (i) circumstances which elevate the risks of performance (such as start-up operations, untested management, heavy leverage, interim losses); (ii) adverse, extraordinary events that have affected, or could affect, the borrower’s cash flow, financial condition, ability to continue operating profitability or refinancing (such as death of principal, fire, divorce); (iii) loans that require more than the normal servicing requirements (such as any type of construction financing, acquisition and development loans, accounts receivable or inventory loans and floor plan loans); (iv) existing technical exceptions which raise some doubts about the Bank’s perfection in its collateral position or the continued financial capacity of the borrower; or (v) improvements in formerly criticized borrowers, which may warrant banker supervision. |
Grade 30 – Other Asset Especially Mentioned – This grade includes loans that exhibit potential weaknesses that deserve management’s close attention. If left uncorrected, these weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. |
Grade 40 – Substandard – This grade represents loans which are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. These assets exhibit a well-defined weakness or are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. These weaknesses may be characterized by past due performance, operating losses or questionable collateral values. |
Grade 50 – Doubtful – This grade includes loans which exhibit all of the characteristics of a substandard loan with the added provision that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable or improbable. |
Grade 60 – Loss – This grade is assigned to loans which are considered uncollectible and of such little value that their continuance as active assets of the Bank is not warranted. This classification does not mean that the loss has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing it off. |
The following table presents the non-covered loan portfolio by risk grade as of September 30, 2013. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk | | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Other | | | Total | |
Grade | financial & | construction & | commercial & | residential | installment loans |
| agricultural | development | farmland | | |
| | (Dollars in Thousands) | |
10 | | $ | 65,033 | | | $ | — | | | $ | 278 | | | $ | 420 | | | $ | 7,028 | | | $ | — | | | $ | 72,759 | |
15 | | | 20,668 | | | | 5,080 | | | | 147,355 | | | | 56,464 | | | | 1,243 | | | | — | | | | 230,810 | |
20 | | | 89,216 | | | | 37,765 | | | | 421,669 | | | | 142,186 | | | | 19,691 | | | | 20,627 | | | | 731,154 | |
23 | | | 97 | | | | 7,085 | | | | 10,054 | | | | 13,275 | | | | 218 | | | | — | | | | 30,729 | |
25 | | | 60,407 | | | | 72,942 | | | | 183,371 | | | | 109,604 | | | | 7,034 | | | | — | | | | 433,358 | |
30 | | | 3,019 | | | | 2,264 | | | | 12,089 | | | | 11,427 | | | | 153 | | | | — | | | | 28,952 | |
40 | | | 6,326 | | | | 7,141 | | | | 24,333 | | | | 22,534 | | | | 936 | | | | — | | | | 61,270 | |
50 | | | 225 | | | | — | | | | — | | | | 10 | | | | — | | | | — | | | | 235 | |
60 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 244,991 | | | $ | 132,277 | | | $ | 799,149 | | | $ | 355,920 | | | $ | 36,303 | | | $ | 20,627 | | | $ | 1,589,267 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table presents the non-covered loan portfolio by risk grade as of December 31, 2012. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk | | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Other | | | Total | |
Grade | financial & | construction & | commercial & | residential | installment loans |
| agricultural | development | farmland | | |
| | (Dollars in Thousands) | |
10 | | $ | 24,623 | | | $ | — | | | $ | 309 | | | $ | 464 | | | $ | 7,597 | | | $ | — | | | $ | 32,993 | |
15 | | | 11,316 | | | | 4,373 | | | | 147,966 | | | | 71,254 | | | | 1,591 | | | | — | | | | 236,500 | |
20 | | | 79,522 | | | | 31,413 | | | | 351,997 | | | | 114,418 | | | | 21,361 | | | | 43,239 | | | | 641,950 | |
23 | | | 42 | | | | 8,521 | | | | 9,012 | | | | 13,788 | | | | 70 | | | | — | | | | 31,433 | |
25 | | | 49,071 | | | | 52,577 | | | | 176,395 | | | | 113,591 | | | | 7,576 | | | | — | | | | 399,210 | |
30 | | | 2,343 | | | | 3,394 | | | | 19,401 | | | | 9,672 | | | | 488 | | | | — | | | | 35,298 | |
40 | | | 7,200 | | | | 13,765 | | | | 27,242 | | | | 23,292 | | | | 1,495 | | | | — | | | | 72,994 | |
50 | | | 100 | | | | 156 | | | | — | | | | 1 | | | | — | | | | — | | | | 257 | |
60 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 174,217 | | | $ | 114,199 | | | $ | 732,322 | | | $ | 346,480 | | | $ | 40,178 | | | $ | 43,239 | | | $ | 1,450,635 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents the non-covered loan portfolio by risk grade as of September 30, 2012. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk | | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Other | | | Total | |
Grade | financial & | construction & | commercial & | residential | installment loans |
| agricultural | development | farmland | | |
| | (Dollars in Thousands) | |
10 | | $ | 26,291 | | | $ | — | | | $ | 220 | | | $ | 411 | | | $ | 7,887 | | | $ | — | | | $ | 34,809 | |
15 | | | 11,816 | | | | 4,532 | | | | 152,678 | | | | 74,040 | | | | 1,400 | | | | — | | | | 244,466 | |
20 | | | 80,681 | | | | 33,603 | | | | 324,270 | | | | 105,531 | | | | 23,038 | | | | 25,160 | | | | 592,283 | |
23 | | | 5 | | | | 7,667 | | | | 8,773 | | | | 13,650 | | | | 81 | | | | — | | | | 30,176 | |
25 | | | 62,377 | | | | 59,013 | | | | 184,146 | | | | 113,560 | | | | 8,502 | | | | — | | | | 427,598 | |
30 | | | 1,508 | | | | 7,948 | | | | 14,742 | | | | 10,535 | | | | 745 | | | | — | | | | 35,478 | |
40 | | | 6,436 | | | | 12,396 | | | | 28,411 | | | | 25,583 | | | | 1,780 | | | | — | | | | 74,606 | |
50 | | | 260 | | | | 156 | | | | — | | | | 22 | | | | 8 | | | | — | | | | 446 | |
60 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 189,374 | | | $ | 125,315 | | | $ | 713,240 | | | $ | 343,332 | | | $ | 43,441 | | | $ | 25,160 | | | $ | 1,439,862 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table presents the covered loan portfolio by risk grade as of September 30, 2013. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk | | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Other | | | Total | |
Grade | financial & | construction & | commercial & | residential | installment loans |
| agricultural | development | farmland | | |
| | (Dollars in Thousands) | |
10 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
15 | | | — | | | | 22 | | | | 1,098 | | | | 641 | | | | — | | | | — | | | | 1,761 | |
20 | | | 2,697 | | | | 11,347 | | | | 34,252 | | | | 22,545 | | | | 208 | | | | — | | | | 71,049 | |
23 | | | 135 | | | | 1,080 | | | | 16,708 | | | | 2,902 | | | | 51 | | | | — | | | | 20,876 | |
25 | | | 7,609 | | | | 7,360 | | | | 108,886 | | | | 39,632 | | | | 250 | | | | — | | | | 163,737 | |
30 | | | 1,485 | | | | 5,505 | | | | 24,790 | | | | 9,196 | | | | 14 | | | | — | | | | 40,990 | |
40 | | | 15,842 | | | | 25,388 | | | | 51,352 | | | | 26,230 | | | | 424 | | | | — | | | | 119,236 | |
50 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
60 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 27,768 | | | $ | 50,702 | | | $ | 237,086 | | | $ | 101,146 | | | $ | 947 | | | $ | — | | | $ | 417,649 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The following table presents the covered loan portfolio by risk grade as of December 31, 2012. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk | | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Other | | | Total | |
Grade | financial & | construction & | commercial & | residential | installment loans |
| agricultural | development | farmland | | |
| | (Dollars in Thousands) | |
10 | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | — | |
15 | | | — | | | | 39 | | | | 1,640 | | | | 644 | | | | — | | | | — | | | | 2,323 | |
20 | | | 3,997 | | | | 12,194 | | | | 37,098 | | | | 31,337 | | | | 292 | | | | — | | | | 84,918 | |
23 | | | 28 | | | | 1,174 | | | | 9,576 | | | | 2,052 | | | | — | | | | — | | | | 12,830 | |
25 | | | 10,013 | | | | 19,216 | | | | 114,849 | | | | 40,194 | | | | 558 | | | | — | | | | 184,830 | |
30 | | | 4,294 | | | | 7,214 | | | | 38,665 | | | | 11,883 | | | | 50 | | | | — | | | | 62,106 | |
40 | | | 14,274 | | | | 30,347 | | | | 76,678 | | | | 38,946 | | | | 460 | | | | — | | | | 160,705 | |
50 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
60 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 32,606 | | | $ | 70,184 | | | $ | 278,506 | | | $ | 125,056 | | | $ | 1,360 | | | $ | — | | | $ | 507,712 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents the covered loan portfolio by risk grade as of September 30, 2012. |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk | | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Other | | | Total | |
Grade | financial & | construction & | commercial & | residential | installment loans |
| agricultural | development | farmland | | |
| | (Dollars in Thousands) | |
10 | | $ | — | | | $ | 8 | | | $ | — | | | $ | 853 | | | $ | — | | | $ | — | | | $ | 861 | |
15 | | | 91 | | | | 44 | | | | 1,673 | | | | 708 | | | | — | | | | — | | | | 2,516 | |
20 | | | 4,970 | | | | 13,950 | | | | 40,912 | | | | 34,397 | | | | 319 | | | | — | | | | 94,548 | |
23 | | | 30 | | | | 1,226 | | | | 4,638 | | | | 1,889 | | | | — | | | | — | | | | 7,783 | |
25 | | | 11,986 | | | | 18,921 | | | | 130,155 | | | | 44,999 | | | | 721 | | | | — | | | | 206,782 | |
30 | | | 4,063 | | | | 7,494 | | | | 35,764 | | | | 9,016 | | | | 64 | | | | — | | | | 56,401 | |
40 | | | 16,027 | | | | 31,713 | | | | 85,761 | | | | 43,292 | | | | 550 | | | | — | | | | 177,343 | |
50 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
60 | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 37,167 | | | $ | 73,356 | | | $ | 298,903 | | | $ | 135,154 | | | $ | 1,654 | | | $ | — | | | $ | 546,234 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Troubled Debt Restructurings |
The restructuring of a loan is considered a “troubled debt restructuring” if both (i) the borrower is experiencing financial difficulties and (ii) the Company has granted a concession. Concessions may include interest rate reductions to below market interest rates, principal forgiveness, restructuring amortization schedules and other actions intended to minimize potential losses. The Company has exhibited the greatest success for rehabilitation of the loan by a reduction in the rate alone (maintaining the amortization of the debt) or a combination of a rate reduction and the forbearance of previously past due interest or principal. This has most typically been evidenced in certain commercial real estate loans whereby a disruption in the borrower’s cash flow resulted in an extended past due status, of which the borrower was unable to catch up completely as the cash flow of the property ultimately stabilized at a level lower than its original level. A reduction in rate, coupled with a forbearance of unpaid principal and/or interest, allowed the net cash flows to service the debt under the modified terms. |
The Company’s policy requires a restructure request to be supported by a current, well-documented credit evaluation of the borrower’s financial condition and a collateral evaluation that is no older than six months from the date of the restructure. Key factors of that evaluation include the documentation of current, recurring cash flows, support provided by the guarantor(s) and the current valuation of the collateral. If the appraisal in file is older than six months, an evaluation must be made as to the continued reasonableness of the valuation. For certain income-producing properties, current rent rolls and/or other income information can be utilized to support the appraisal valuation, when coupled with documented cap rates within our markets and a physical inspection of the collateral to validate the current condition. |
The Company’s policy states in the event a loan has been identified as a troubled debt restructuring, it should be assigned a grade of substandard and placed on nonaccrual status until such time that the borrower has demonstrated the ability to service the loan payments based on the restructured terms – generally defined as six months of satisfactory payment history. Missed payments under the original loan terms are not considered under the new structure; however, subsequent missed payments are considered non-performance and are not considered toward the six month required term of satisfactory payment history. The Company’s loan policy states that a nonaccrual loan may be returned to accrual status when (i) none of its principal and interest is due and unpaid, and the Company expects repayment of the remaining contractual principal and interest, or (ii) it otherwise becomes well secured and in the process of collection. Restoration to accrual status on any given loan must be supported by a well-documented credit evaluation of the borrower’s financial condition and the prospects for full repayment, approved by the Company’s Senior Credit Officer. |
In the normal course of business, the Company renews loans with a modification of the interest rate or terms that are not deemed as troubled debt restructurings because the borrower is not experiencing financial difficulty. The Company modified loans in the first nine months of 2013 totaling $17.0 million and loans in the first nine months of 2012 totaling $23.5 million under such parameters. In addition, the Company offers consumer loan customers an annual skip-a-pay program that is based on certain qualifying parameters and not based on financial difficulties. The Company does not treat these as troubled debt restructurings. |
|
The following table presents the amount of troubled debt restructurings by loan class, classified separately as accrual and non-accrual at September 30, 2013, December 31, 2012 and September 30, 2012: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of September 30, 2013 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | |
| | | | Balance | | | | | Balance | | | | | | | | | | | | | | | | | |
Loan class: | | # | | (in thousands) | | | # | | (in thousands) | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | 4 | | $ | 521 | | | 3 | | $ | 533 | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 8 | | | 1,926 | | | 1 | | | 29 | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 16 | | | 6,693 | | | 3 | | | 1,858 | | | | | | | | | | | | | | | | | |
Real estate – residential | | 35 | | | 7,871 | | | 7 | | | 704 | | | | | | | | | | | | | | | | | |
Consumer installment | | 1 | | | 13 | | | 2 | | | 26 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 64 | | $ | 17,024 | | | 16 | | $ | 3,150 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2012 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | |
| | | | Balance | | | | | Balance | | | | | | | | | | | | | | | | | |
Loan class: | | # | | (in thousands) | | | # | | (in thousands) | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | 5 | | $ | 802 | | | — | | $ | — | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 5 | | | 1,735 | | | — | | | — | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 16 | | | 8,947 | | | 3 | | | 4,149 | | | | | | | | | | | | | | | | | |
Real estate – residential | | 28 | | | 7,254 | | | 2 | | | 1,022 | | | | | | | | | | | | | | | | | |
Consumer installment | | 1 | | | 6 | | | — | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 55 | | $ | 18,744 | | | 5 | | $ | 5,171 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of September 30, 2012 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | |
| | | | Balance | | | | | Balance | | | | | | | | | | | | | | | | | |
Loan class: | | # | | (in thousands) | | | # | | (in thousands) | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | 5 | | $ | 804 | | | — | | $ | — | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 4 | | | 1,481 | | | — | | | — | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 15 | | | 9,540 | | | 1 | | | 2,770 | | | | | | | | | | | | | | | | | |
Real estate – residential | | 27 | | | 8,068 | | | 2 | | | 620 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 51 | | $ | 19,893 | | | 3 | | $ | 3,390 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents the amount of troubled debt restructurings by loan class, classified separately as those currently paying under restructured terms and those that have defaulted under restructured terms at September 30, 2013, December 31, 2012 and September 30, 2012: |
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| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of September 30, 2013 | | Loans Currently Paying | | | Loans that have Defaulted | | | | | | | | | | | | | | | | | |
Under Restructured | Under Restructured | | | | | | | | | | | | | | | | |
Terms | Terms | | | | | | | | | | | | | | | | |
| | | | Balance | | | | | Balance | | | | | | | | | | | | | | | | | |
Loan class: | | # | | (in thousands) | | | # | | (in thousands) | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | 3 | | $ | 508 | | | 4 | | $ | 546 | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 6 | | | 1,881 | | | 3 | | | 74 | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 14 | | | 6,550 | | | 5 | | | 2,001 | | | | | | | | | | | | | | | | | |
Real estate – residential | | 31 | | | 7,282 | | | 11 | | | 1,293 | | | | | | | | | | | | | | | | | |
Consumer installment | | 2 | | | 37 | | | 1 | | | 2 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 56 | | $ | 16,258 | | | 24 | | $ | 3,916 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2012 | | Loans Currently Paying | | | Loans that have Defaulted | | | | | | | | | | | | | | | | | |
Under Restructured | Under Restructured | | | | | | | | | | | | | | | | |
Terms | Terms | | | | | | | | | | | | | | | | |
| | | | Balance | | | | | Balance | | | | | | | | | | | | | | | | | |
Loan class: | | # | | (in thousands) | | | # | | (in thousands) | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | 5 | | $ | 802 | | | — | | $ | — | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 5 | | | 1,735 | | | — | | | — | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 16 | | | 8,947 | | | 3 | | | 4,149 | | | | | | | | | | | | | | | | | |
Real estate – residential | | 28 | | | 7,254 | | | 2 | | | 1,022 | | | | | | | | | | | | | | | | | |
Consumer installment | | — | | | — | | | 1 | | | 6 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 54 | | $ | 18,738 | | | 6 | | $ | 5,177 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of September 30, 2012 | | Loans Currently Paying | | | Loans that have Defaulted | | | | | | | | | | | | | | | | | |
Under Restructured | Under Restructured | | | | | | | | | | | | | | | | |
Terms | Terms | | | | | | | | | | | | | | | | |
| | | | Balance | | | | | Balance | | | | | | | | | | | | | | | | | |
Loan class: | | # | | (in thousands) | | | # | | (in thousands) | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | 5 | | $ | 804 | | | — | | $ | — | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 4 | | | 1,481 | | | — | | | — | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 15 | | | 9,540 | | | 1 | | | 2,770 | | | | | | | | | | | | | | | | | |
Real estate – residential | | 26 | | | 8,068 | | | 3 | | | 620 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 50 | | $ | 19,893 | | | 4 | | $ | 3,390 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents the amount of troubled debt restructurings by types of concessions made, classified separately as accrual and non-accrual at September 30, 2013, December 31, 2012 and September 30, 2012: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of September 30, 2013 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | |
| | | | Balance | | | | | Balance | | | | | | | | | | | | | | | | | |
Type of concession: | | # | | (in thousands) | | | # | | (in thousands) | | | | | | | | | | | | | | | | | |
Forbearance of interest | | 9 | | $ | 2,135 | | | 2 | | $ | 101 | | | | | | | | | | | | | | | | | |
Forgiveness of principal | | 3 | | | 1,479 | | | 1 | | | 145 | | | | | | | | | | | | | | | | | |
Payment modification only | | 2 | | | 370 | | | — | | | — | | | | | | | | | | | | | | | | | |
Rate reduction only | | 14 | | | 7,146 | | | 2 | | | 496 | | | | | | | | | | | | | | | | | |
Rate reduction, forbearance of interest | | 18 | | | 2,878 | | | 10 | | | 2,379 | | | | | | | | | | | | | | | | | |
Rate reduction, forbearance of principal | | 18 | | | 3,016 | | | — | | | — | | | | | | | | | | | | | | | | | |
Rate reduction, payment modification | | — | | | — | | | 1 | | | 29 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 64 | | $ | 17,024 | | | 16 | | $ | 3,150 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2012 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | |
| | | | Balance | | | | | Balance | | | | | | | | | | | | | | | | | |
Type of concession: | | # | | (in thousands) | | | # | | (in thousands) | | | | | | | | | | | | | | | | | |
Forbearance of interest | | 2 | | $ | 1,873 | | | — | | $ | — | | | | | | | | | | | | | | | | | |
Forgiveness of principal | | 3 | | | 1,518 | | | 1 | | | 372 | | | | | | | | | | | | | | | | | |
Payment modification only | | 2 | | | 376 | | | — | | | — | | | | | | | | | | | | | | | | | |
Rate reduction only | | 11 | | | 7,075 | | | 1 | | | 177 | | | | | | | | | | | | | | | | | |
Rate reduction, forbearance of interest | | 18 | | | 4,061 | | | 2 | | | 3,420 | | | | | | | | | | | | | | | | | |
Rate reduction, forbearance of principal | | 18 | | | 3,798 | | | — | | | — | | | | | | | | | | | | | | | | | |
Rate reduction, payment modification | | 1 | | | 43 | | | 1 | | | 1,202 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 55 | | $ | 18,744 | | | 5 | | $ | 5,171 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of September 30, 2012 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | |
| | | | Balance | | | | | Balance | | | | | | | | | | | | | | | | | |
Type of concession: | | # | | (in thousands) | | | # | | (in thousands) | | | | | | | | | | | | | | | | | |
Forbearance of interest | | 2 | | $ | 1,902 | | | — | | $ | — | | | | | | | | | | | | | | | | | |
Forgiveness of principal | | 3 | | | 1,516 | | | 1 | | | 369 | | | | | | | | | | | | | | | | | |
Payment modification only | | 2 | | | 1,292 | | | 1 | | | 251 | | | | | | | | | | | | | | | | | |
Rate reduction only | | 10 | | | 5,889 | | | — | | | — | | | | | | | | | | | | | | | | | |
Rate reduction, forbearance of interest | | 15 | | | 4,371 | | | 1 | | | 2,770 | | | | | | | | | | | | | | | | | |
Rate reduction, forbearance of principal | | 18 | | | 4,874 | | | — | | | — | | | | | | | | | | | | | | | | | |
Rate reduction, payment modification | | 1 | | | 49 | | | — | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 51 | | $ | 19,893 | | | 3 | | $ | 3,390 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents the amount of troubled debt restructurings by collateral types, classified separately as accrual and non-accrual at September 30, 2013, December 31, 2012 and September 30, 2012: |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of September 30, 2013 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | |
| | | | Balance | | | | | Balance | | | | | | | | | | | | | | | | | |
Collateral type: | | # | | (in thousands) | | | # | | (in thousands) | | | | | | | | | | | | | | | | | |
Warehouse | | 3 | | $ | 1,065 | | | 1 | | $ | 176 | | | | | | | | | | | | | | | | | |
Raw land | | 3 | | | 1,337 | | | 1 | | | 29 | | | | | | | | | | | | | | | | | |
Agricultural land | | 2 | | | 380 | | | — | | | — | | | | | | | | | | | | | | | | | |
Hotel & motel | | 3 | | | 2,219 | | | — | | | — | | | | | | | | | | | | | | | | | |
Office | | 4 | | | 1,924 | | | — | | | — | | | | | | | | | | | | | | | | | |
Retail, including strip centers | | 4 | | | 1,105 | | | 2 | | | 1,682 | | | | | | | | | | | | | | | | | |
1-4 family residential | | 40 | | | 8,460 | | | 7 | | | 704 | | | | | | | | | | | | | | | | | |
Life insurance policy | | 1 | | | 250 | | | — | | | — | | | | | | | | | | | | | | | | | |
Automobile/equipment/inventory | | 3 | | | 36 | | | 4 | | | 509 | | | | | | | | | | | | | | | | | |
Unsecured | | 1 | | | 248 | | | 1 | | | 50 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 64 | | $ | 17,024 | | | 16 | | $ | 3,150 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2012 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | |
| | | | Balance | | | | | Balance | | | | | | | | | | | | | | | | | |
Collateral type: | | # | | (in thousands) | | | # | | (in thousands) | | | | | | | | | | | | | | | | | |
Warehouse | | 3 | | $ | 1,692 | | | 1 | | $ | 177 | | | | | | | | | | | | | | | | | |
Raw land | | 2 | | | 1,337 | | | — | | | — | | | | | | | | | | | | | | | | | |
Hotel & motel | | 3 | | | 2,318 | | | — | | | — | | | | | | | | | | | | | | | | | |
Office | | 4 | | | 2,105 | | | 1 | | | 2,770 | | | | | | | | | | | | | | | | | |
Retail, including strip centers | | 6 | | | 2,833 | | | 1 | | | 1,202 | | | | | | | | | | | | | | | | | |
1-4 family residential | | 31 | | | 7,651 | | | 2 | | | 1,022 | | | | | | | | | | | | | | | | | |
Life insurance policy | | 1 | | | 250 | | | — | | | — | | | | | | | | | | | | | | | | | |
Automobile/equipment/inventory | | 4 | | | 508 | | | — | | | — | | | | | | | | | | | | | | | | | |
Unsecured | | 1 | | | 50 | | | — | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 55 | | $ | 18,744 | | | 5 | | $ | 5,171 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of September 30, 2012 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | |
| | | | Balance | | | | | Balance | | | | | | | | | | | | | | | | | |
Collateral type: | | # | | (in thousands) | | | # | | (in thousands) | | | | | | | | | | | | | | | | | |
Warehouse | | 3 | | $ | 1,621 | | | — | | $ | — | | | | | | | | | | | | | | | | | |
Raw land | | 2 | | | 1,349 | | | — | | | — | | | | | | | | | | | | | | | | | |
Hotel & motel | | 3 | | | 2,362 | | | — | | | — | | | | | | | | | | | | | | | | | |
Office | | 2 | | | 1,503 | | | 1 | | | 2,770 | | | | | | | | | | | | | | | | | |
Retail, including strip centers | | 7 | | | 4,054 | | | — | | | — | | | | | | | | | | | | | | | | | |
1-4 family residential | | 30 | | | 8,216 | | | 2 | | | 620 | | | | | | | | | | | | | | | | | |
Inventory | | 1 | | | 450 | | | — | | | — | | | | | | | | | | | | | | | | | |
Equipment | | 1 | | | 38 | | | — | | | — | | | | | | | | | | | | | | | | | |
Unsecured | | 2 | | | 300 | | | — | | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 51 | | $ | 19,893 | | | 3 | | $ | 3,390 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of September 30, 2013, December 31, 2012 and September 30, 2012, the Company had a balance of $20.2 million, $23.9 million and $23.3 million, respectively, in troubled debt restructurings. The Company has recorded $2.1 million, $1.9 million and $2.1 million in previous charge-offs on such loans at September 30, 2013, December 31, 2012 and September 30, 2012, respectively. The Company’s balance in the allowance for loan losses allocated to such troubled debt restructurings was $412,000, $640,000 and $676,000 at September 30, 2013, December 31, 2012 and September 30, 2012, respectively. At September 30, 2013, the Company did not have any commitments to lend additional funds to debtors whose terms have been modified in troubled restructurings. |
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Allowance for Loan Losses |
The allowance for loan losses represents a reserve for inherent losses in the loan portfolio. The adequacy of the allowance for loan losses is evaluated periodically based on a review of all significant loans, with a particular emphasis on non-accruing, past due and other loans that management believes might be potentially impaired or warrant additional attention. The Company segregates the loan portfolio by type of loan and utilizes this segregation in evaluating exposure to risks within the portfolio. In addition, based on internal reviews and external reviews performed by independent auditors and regulatory authorities, the Company further segregates the loan portfolio by loan grades based on an assessment of risk for a particular loan or group of loans. Certain reviewed loans are assigned specific allowances when a review of relevant data determines that a general allocation is not sufficient or when the review affords management the opportunity to adjust the amount of exposure in a given credit. In establishing allowances, management considers historical loan loss experience but adjusts this data with a significant emphasis on data such as current loan quality trends, current economic conditions and other factors in the markets where the Company operates. Factors considered include, among others, current valuations of real estate in their markets, unemployment rates, the effect of weather conditions on agricultural related entities and other significant local economic events. |
The Company has developed a methodology for determining the adequacy of the allowance for loan losses which is monitored by the Company’s Chief Credit Officer. Procedures provide for the assignment of a risk rating for every loan included in the total loan portfolio, with the exception of credit card receivables and overdraft protection loans which are treated as pools for risk rating purposes. The risk rating schedule provides nine ratings of which five ratings are classified as pass ratings and four ratings are classified as criticized ratings. Each risk rating is assigned a percentage factor to be applied to the loan balance to determine the adequate amount of reserve. Many of the larger loans require an annual review by an independent loan officer or an independent third party loan review firm. As a result of these loan reviews, certain loans may be assigned specific reserve allocations. Other loans that surface as problem loans may also be assigned specific reserves. Past due loans are assigned risk ratings based on the number of days past due. The calculation of the allowance for loan losses, including underlying data and assumptions, is reviewed regularly by the Company’s Chief Financial Officer and the Director of Internal Audit. |
Loan losses are charged against the allowance when management believes the collection of a loan’s principal is unlikely. Subsequent recoveries are credited to the allowance. Consumer loans are charged-off in accordance with the Federal Financial Institutions Examination Council’s (“FFIEC”) Uniform Retail Credit Classification and Account Management Policy. Commercial loans are charged-off when they are deemed uncollectible, which usually involves a triggering event within the collection effort. If the loan is collateral dependent, the loss is more easily identified and is charged-off when it is identified, usually based upon receipt of an appraisal. However, when a loan has guarantor support, the Company may carry the estimated loss as a reserve against the loan while collection efforts with the guarantor are pursued. If, after collection efforts with the guarantor are complete, the deficiency is still considered uncollectible, the loss is charged-off and any further collections are treated as recoveries. In all situations, when a loan is downgraded to an Asset Quality Rating of 60 (Loss per the regulatory guidance), the uncollectible portion is charged-off. |
During the nine months ended September 30, 2013, the year ended December 31, 2012 and the nine months ended September 30, 2012, the Company recorded provision for loan loss expense of $1.3 million, $2.6 million and $2.3 million, respectively, to account for losses where the initial estimate of cash flows was found to be excessive on loans acquired in FDIC-assisted transactions. These amounts are excluded from the rollforwards below but are reflected in the Company’s Consolidated Statements of Earnings and Comprehensive Income. |
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The following table details activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2013, the year ended December 31, 2012 and the nine months ended September 30, 2012. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. |
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| | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Total | | | | | |
financial & | construction & | commercial & | residential | installment | | | | |
agricultural | development | farmland | | loans and | | | | |
| | | | Other | | | | |
| | (Dollars in Thousands) | | | | | |
Balance, January 1, 2013 | | $ | 2,439 | | | $ | 5,343 | | | $ | 9,157 | | | $ | 5,898 | | | $ | 756 | | | $ | 23,593 | | | | | |
Provision for loan losses | | | 1,011 | | | | 2,127 | | | | 2,632 | | | | 2,966 | | | | 11 | | | | 8,747 | | | | | |
Loans charged off | | | (1,216 | ) | | | (1,598 | ) | | | (2,873 | ) | | | (3,430 | ) | | | (576 | ) | | | (9,693 | ) | | | | |
Recoveries of loans previously charged off | | | 340 | | | | 88 | | | | 18 | | | | 520 | | | | 241 | | | | 1,207 | | | | | |
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Balance, September 30, 2013 | | $ | 2,574 | | | $ | 5,960 | | | $ | 8,934 | | | $ | 5,954 | | | $ | 432 | | | $ | 23,854 | | | | | |
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Period-end amount allocated to: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 741 | | | $ | 682 | | | $ | 1,997 | | | $ | 1,429 | | | $ | — | | | $ | 4,849 | | | | | |
Loans collectively evaluated for impairment | | | 1,833 | | | | 5,278 | | | | 6,937 | | | | 4,525 | | | | 432 | | | | 19,005 | | | | | |
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Ending balance | | $ | 2,574 | | | $ | 5,960 | | | $ | 8,934 | | | $ | 5,954 | | | $ | 432 | | | $ | 23,854 | | | | | |
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Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 3,657 | | | $ | 3,524 | | | $ | 14,605 | | | $ | 16,919 | | | $ | — | | | $ | 38,705 | | | | | |
Collectively evaluated for impairment | | | 241,334 | | | | 128,753 | | | | 784,544 | | | | 339,001 | | | | 56,930 | | | | 1,550,562 | | | | | |
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Ending balance | | $ | 244,991 | | | $ | 132,277 | | | $ | 799,149 | | | $ | 355,920 | | | $ | 56,930 | | | $ | 1,589,267 | | | | | |
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| | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Total | | | | | |
financial & | construction & | commercial & | residential | installment | | | | |
agricultural | development | farmland | | loans and | | | | |
| | | | Other | | | | |
| | (Dollars in Thousands) | | | | | |
Balance, January 1, 2012 | | $ | 2,918 | | | $ | 9,438 | | | $ | 14,226 | | | $ | 8,128 | | | $ | 446 | | | $ | 35,156 | | | | | |
Provision for loan losses | | | 815 | | | | 5,245 | | | | 15,000 | | | | 6,267 | | | | 1,124 | | | | 28,451 | | | | | |
Loans charged off | | | (1,451 | ) | | | (9,380 | ) | | | (20,551 | ) | | | (8,722 | ) | | | (1,059 | ) | | | (41,163 | ) | | | | |
Recoveries of loans previously charged off | | | 157 | | | | 40 | | | | 482 | | | | 225 | | | | 245 | | | | 1,149 | | | | | |
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Balance, December 31, 2012 | | $ | 2,439 | | | $ | 5,343 | | | $ | 9,157 | | | $ | 5,898 | | | $ | 756 | | | $ | 23,593 | | | | | |
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Period-end amount allocated to: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 659 | | | $ | 611 | | | $ | 2,228 | | | $ | 1,056 | | | $ | — | | | $ | 4,554 | | | | | |
Loans collectively evaluated for impairment | | | 1,780 | | | | 4,732 | | | | 6,929 | | | | 4,842 | | | | 756 | | | | 19,039 | | | | | |
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Ending balance | | $ | 2,439 | | | $ | 5,343 | | | $ | 9,157 | | | $ | 5,898 | | | $ | 756 | | | $ | 23,593 | | | | | |
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Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 3,351 | | | $ | 7,617 | | | $ | 21,332 | | | $ | 13,020 | | | $ | — | | | $ | 45,320 | | | | | |
Collectively evaluated for impairment | | | 170,866 | | | | 106,582 | | | | 710,990 | | | | 333,460 | | | | 83,417 | | | | 1,405,315 | | | | | |
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Ending balance | | $ | 174,217 | | | $ | 114,199 | | | $ | 732,322 | | | $ | 346,480 | | | $ | 83,417 | | | $ | 1,450,635 | | | | | |
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| | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Total | | | | | |
financial & | construction & | commercial & | residential | installment | | | | |
agricultural | development | farmland | | loans and | | | | |
| | | | Other | | | | |
| | (Dollars in Thousands) | | | | | |
Balance, January 1, 2012 | | $ | 2,918 | | | $ | 9,438 | | | $ | 14,226 | | | $ | 8,128 | | | $ | 446 | | | $ | 35,156 | | | | | |
Provision for loan losses | | | 677 | | | | 4,954 | | | | 13,087 | | | | 4,936 | | | | 706 | | | | 24,360 | | | | | |
Loans charged off | | | (889 | ) | | | (7,819 | ) | | | (18,199 | ) | | | (6,642 | ) | | | (618 | ) | | | (34,167 | ) | | | | |
Recoveries of loans previously charged off | | | 101 | | | | 23 | | | | 32 | | | | 199 | | | | 197 | | | | 552 | | | | | |
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Balance, September 30, 2012 | | $ | 2,807 | | | $ | 6,596 | | | $ | 9,146 | | | $ | 6,621 | | | $ | 731 | | | $ | 25,901 | | | | | |
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Period-end amount allocated to: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 610 | | | $ | 526 | | | $ | 2,315 | | | $ | 2,105 | | | $ | — | | | $ | 5,556 | | | | | |
Loans collectively evaluated for impairment | | | 2,197 | | | | 6,070 | | | | 6,831 | | | | 4,516 | | | | 731 | | | | 20,345 | | | | | |
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Ending balance | | $ | 2,807 | | | $ | 6,596 | | | $ | 9,146 | | | $ | 6,621 | | | $ | 731 | | | $ | 25,901 | | | | | |
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Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 2,748 | | | $ | 5,510 | | | $ | 21,552 | | | $ | 15,178 | | | $ | — | | | $ | 44,988 | | | | | |
Collectively evaluated for impairment | | | 186,626 | | | | 119,805 | | | | 691,688 | | | | 328,154 | | | | 68,601 | | | | 1,394,874 | | | | | |
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Ending balance | | $ | 189,374 | | | $ | 125,315 | | | $ | 713,240 | | | $ | 343,332 | | | $ | 68,601 | | | $ | 1,439,862 | | | | | |
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