Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2014 |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | NOTE 5. LOANS AND ALLOWANCE FOR LOAN LOSSES |
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Loans |
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The Bank 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. The Bank 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. |
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A substantial portion of the Bank’s loans are secured by real estate in the Bank’s primary market area. In addition, a substantial portion of the OREO is located in those same markets. Accordingly, the ultimate collectability of a substantial portion of the Bank’s loan portfolio and the recovery of a substantial portion of the carrying amount of OREO are susceptible to changes in real estate conditions in the Bank’s primary market area. |
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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. |
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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. |
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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. |
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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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| | December 31, | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2014 | | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (Dollars in Thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 319,654 | | | $ | 244,373 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | | 161,507 | | | | 146,371 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | | 907,524 | | | | 808,323 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | | 456,106 | | | | 351,886 | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer installment | | | 30,782 | | | | 34,249 | | | | | | | | | | | | | | | | | | | | | | | | | |
Other | | | 14,308 | | | | 33,252 | | | | | | | | | | | | | | | | | | | | | | | | | |
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| | | 1,889,881 | | | | 1,618,454 | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | | 21,157 | | | | 22,377 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Loans, net | | $ | 1,868,724 | | | $ | 1,596,077 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Purchased non-covered loans are defined as loans that were acquired in bank acquisitions that are not covered by a loss-sharing agreement with the FDIC. Loans that were previously classified as covered loans where the loss-sharing agreements have expired are also included in purchased non-covered loans. Purchased non-covered loans totaling $674.2 million and $448.8 million at December 31, 2014 and 2013, respectively, are not included in the above schedule. |
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The carrying value of purchased non-covered loans are shown below according to loan type as of the end of the years shown: |
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| | 2014 | | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (Dollars in Thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 38,041 | | | $ | 32,141 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | | 58,362 | | | | 31,176 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | | 306,706 | | | | 179,898 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | | 266,342 | | | | 200,851 | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer installment loans | | | 4,788 | | | | 4,687 | | | | | | | | | | | | | | | | | | | | | | | | | |
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| | $ | 674,239 | | | $ | 448,753 | | | | | | | | | | | | | | | | | | | | | | | | | |
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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 $271.3 million and $390.2 million at December 31, 2014 and 2013, respectively, are not included in the above schedule. |
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The carrying value of covered loans are shown below according to loan type as of the end of the years shown: |
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| | 2014 | | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (Dollars in Thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 21,467 | | | $ | 26,550 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | | 23,447 | | | | 43,179 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | | 147,627 | | | | 224,451 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | | 78,520 | | | | 95,173 | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer installment loans | | | 218 | | | | 884 | | | | | | | | | | | | | | | | | | | | | | | | | |
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| | $ | 271,279 | | | $ | 390,237 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Nonaccrual and Past Due Loans |
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A loan is placed on non-accrual 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 subsequently recognized only to the extent cash payments are received until the loans are returned to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. 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. Loans on nonaccrual status, excluding purchased non-covered and covered loans, amounted to approximately $21.7 million, $29.2 million and $38.9 million at December 31, 2014, 2013 and 2012, respectively. Purchased non-covered loans on nonaccrual status amounted to approximately $18.2 million and $6.7 million at December 31, 2014 and 2013, respectively. |
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The following table presents an analysis of loans accounted for on a nonaccrual basis, excluding purchased non-covered and covered loans: |
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| | 2014 | | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (Dollars in Thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 1,672 | | | $ | 4,103 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | | 3,774 | | | | 3,971 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | | 8,141 | | | | 8,566 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | | 7,663 | | | | 12,152 | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer installment loans | | | 478 | | | | 411 | | | | | | | | | | | | | | | | | | | | | | | | | |
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| | $ | 21,728 | | | $ | 29,203 | | | | | | | | | | | | | | | | | | | | | | | | | |
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The following table presents an analysis of purchased non-covered loans accounted for on a nonaccrual basis: |
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| | 2014 | | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (Dollars in Thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 175 | | | $ | 11 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | | 1,119 | | | | 325 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | | 10,242 | | | | 1,653 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | | 6,644 | | | | 4,658 | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer installment loans | | | 69 | | | | 12 | | | | | | | | | | | | | | | | | | | | | | | | | |
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| | $ | 18,249 | | | $ | 6,659 | | | | | | | | | | | | | | | | | | | | | | | | | |
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The following table presents an analysis of covered loans accounted for on a nonaccrual basis: |
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| | 2014 | | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (Dollars in Thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 8,541 | | | $ | 7,257 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | | 7,601 | | | | 14,781 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | | 12,584 | | | | 33,495 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | | 6,595 | | | | 13,278 | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer installment loans | | | 91 | | | | 341 | | | | | | | | | | | | | | | | | | | | | | | | | |
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| | $ | 35,412 | | | $ | 69,152 | | | | | | | | | | | | | | | | | | | | | | | | | |
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The following table presents an analysis of loans, excluding purchased non-covered and covered past due loans as of December 31, 2014 and 2013. |
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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 | | | | |
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| | (Dollars in Thousands) | | | | | |
As of December 31, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 900 | | | $ | 233 | | | $ | 1,577 | | | $ | 2,710 | | | $ | 316,944 | | | $ | 319,654 | | | $ | - | | | | | |
Real estate – construction & development | | | 1,382 | | | | 286 | | | | 3,367 | | | | 5,035 | | | | 156,472 | | | | 161,507 | | | | - | | | | | |
Real estate – commercial & farmland | | | 2,859 | | | | 635 | | | | 7,668 | | | | 11,162 | | | | 896,362 | | | | 907,524 | | | | - | | | | | |
Real estate – residential | | | 3,953 | | | | 2,334 | | | | 6,755 | | | | 13,042 | | | | 443,064 | | | | 456,106 | | | | - | | | | | |
Consumer installment loans | | | 634 | | | | 158 | | | | 366 | | | | 1,158 | | | | 29,624 | | | | 30,782 | | | | 1 | | | | | |
Other | | | - | | | | - | | | | - | | | | - | | | | 14,308 | | | | 14,308 | | | | - | | | | | |
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Total | | $ | 9,728 | | | $ | 3,646 | | | $ | 19,733 | | | $ | 33,107 | | | $ | 1,856,774 | | | $ | 1,889,881 | | | $ | 1 | | | | | |
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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 | | | | |
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| | (Dollars in Thousands) | | | | | |
As of December 31, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 10,893 | | | $ | 272 | | | $ | 4,081 | | | $ | 15,246 | | | $ | 229,127 | | | $ | 244,373 | | | $ | - | | | | | |
Real estate – construction & development | | | 1,026 | | | | 69 | | | | 3,935 | | | | 5,030 | | | | 141,341 | | | | 146,371 | | | | - | | | | | |
Real estate – commercial & farmland | | | 3,981 | | | | 1,388 | | | | 7,751 | | | | 13,120 | | | | 795,203 | | | | 808,323 | | | | - | | | | | |
Real estate – residential | | | 5,422 | | | | 1,735 | | | | 11,587 | | | | 18,744 | | | | 333,142 | | | | 351,886 | | | | - | | | | | |
Consumer installment loans | | | 568 | | | | 197 | | | | 305 | | | | 1,070 | | | | 33,179 | | | | 34,249 | | | | - | | | | | |
Other | | | - | | | | - | | | | - | | | | - | | | | 33,252 | | | | 33,252 | | | | - | | | | | |
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Total | | $ | 21,890 | | | $ | 3,661 | | | $ | 27,659 | | | $ | 53,210 | | | $ | 1,565,244 | | | $ | 1,618,454 | | | $ | - | | | | | |
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The following table presents an analysis of purchased non-covered past due loans as of December 31, 2014 and 2013. |
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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 | | | | |
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| | | | | | Accruing | | | | |
| | (Dollars in Thousands) | | | | | |
As of December 30, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 461 | | | $ | 90 | | | $ | 175 | | | $ | 726 | | | $ | 37,315 | | | $ | 38,041 | | | $ | - | | | | | |
Real estate – construction & development | | | 790 | | | | 1,735 | | | | 1,117 | | | | 3,642 | | | | 54,720 | | | | 58,362 | | | | - | | | | | |
Real estate – commercial & farmland | | | 2,107 | | | | 1,194 | | | | 9,529 | | | | 12,830 | | | | 293,876 | | | | 306,706 | | | | - | | | | | |
Real estate – residential | | | 6,907 | | | | 1,401 | | | | 6,369 | | | | 14,677 | | | | 251,665 | | | | 266,342 | | | | - | | | | | |
Consumer installment loans | | | 82 | | | | - | | | | 65 | | | | 147 | | | | 4,641 | | | | 4,788 | | | | - | | | | | |
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Total | | $ | 10,347 | | | $ | 4,420 | | | $ | 17,255 | | | $ | 32,022 | | | $ | 642,217 | | | $ | 674,239 | | | $ | - | | | | | |
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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, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 370 | | | $ | 70 | | | $ | 11 | | | $ | 451 | | | $ | 31,690 | | | $ | 32,141 | | | $ | - | | | | | |
Real estate – construction & development | | | 1,008 | | | | 89 | | | | 325 | | | | 1,422 | | | | 29,754 | | | | 31,176 | | | | - | | | | | |
Real estate – commercial & farmland | | | 6,851 | | | | 2,064 | | | | 1,516 | | | | 10,431 | | | | 169,467 | | | | 179,898 | | | | - | | | | | |
Real estate – residential | | | 4,667 | | | | 1,074 | | | | 3,428 | | | | 9,169 | | | | 191,682 | | | | 200,851 | | | | - | | | | | |
Consumer installment loans | | | 7 | | | | 17 | | | | 9 | | | | 33 | | | | 4,654 | | | | 4,687 | | | | - | | | | | |
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Total | | $ | 12,903 | | | $ | 3,314 | | | $ | 5,289 | | | $ | 21,506 | | | $ | 427,247 | | | $ | 448,753 | | | $ | - | | | | | |
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The following table presents an analysis of covered past due loans as of December 31, 2014 and 2013: |
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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, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 451 | | | $ | 136 | | | $ | 1,878 | | | $ | 2,465 | | | $ | 19,002 | | | $ | 21,467 | | | $ | - | | | | | |
Real estate – construction & development | | | 238 | | | | 226 | | | | 6,703 | | | | 7,167 | | | | 16,280 | | | | 23,447 | | | | - | | | | | |
Real estate – commercial & farmland | | | 4,371 | | | | 1,486 | | | | 7,711 | | | | 13,568 | | | | 134,059 | | | | 147,627 | | | | 714 | | | | | |
Real estate – residential | | | 3,464 | | | | 962 | | | | 5,656 | | | | 10,082 | | | | 68,438 | | | | 78,520 | | | | - | | | | | |
Consumer installment loans | | | 10 | | | | - | | | | 91 | | | | 101 | | | | 117 | | | | 218 | | | | - | | | | | |
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Total | | $ | 8,534 | | | $ | 2,810 | | | $ | 22,039 | | | $ | 33,383 | | | $ | 237,896 | | | $ | 271,279 | | | $ | 714 | | | | | |
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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 31, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 3,966 | | | $ | 12 | | | $ | 6,165 | | | $ | 10,143 | | | $ | 16,407 | | | $ | 26,550 | | | $ | - | | | | | |
Real estate – construction & development | | | 843 | | | | 144 | | | | 14,055 | | | | 15,042 | | | | 28,137 | | | | 43,179 | | | | - | | | | | |
Real estate – commercial & farmland | | | 8,482 | | | | 4,350 | | | | 26,428 | | | | 39,260 | | | | 185,191 | | | | 224,451 | | | | 346 | | | | | |
Real estate – residential | | | 7,648 | | | | 1,914 | | | | 10,244 | | | | 19,806 | | | | 75,367 | | | | 95,173 | | | | - | | | | | |
Consumer installment loans | | | 51 | | | | 14 | | | | 305 | | | | 370 | | | | 514 | | | | 884 | | | | - | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 20,990 | | | $ | 6,434 | | | $ | 57,197 | | | $ | 84,621 | | | $ | 305,616 | | | $ | 390,237 | | | $ | 346 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
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. Impaired loans include loans on nonaccrual status and accruing troubled debt restructurings. 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 impaired loans, excluding purchased non-covered and covered loans: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of and For the Years Ended | | | | | | | | | | | | | | | | | | | | | |
December 31, | | | | | | | | | | | | | | | | | | | | |
| | 2014 | | | 2013 | | | 2012 | | | | | | | | | | | | | | | | | | | | | |
| | (Dollars in Thousands) | | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | $ | 21,728 | | | $ | 29,203 | | | $ | 38,885 | | | | | | | | | | | | | | | | | | | | | |
Troubled debt restructurings not included above | | | 12,759 | | | | 17,214 | | | | 18,744 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total impaired loans | | $ | 34,487 | | | $ | 46,417 | | | $ | 57,629 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Interest income recognized on impaired loans | | $ | 1,170 | | | $ | 522 | | | $ | 495 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foregone interest income on impaired loans | | $ | 155 | | | $ | 418 | | | $ | 718 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents an analysis of information pertaining to impaired loans, excluding purchased non-covered and covered loans as of December 31, 2014 and 2013. |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 3,387 | | | $ | 6 | | | $ | 1,956 | | | $ | 1,962 | | | $ | 395 | | | $ | 3,021 | | | | | | | | | |
Real estate – construction & development | | | 8,325 | | | | 448 | | | | 4,005 | | | | 4,453 | | | | 771 | | | | 5,368 | | | | | | | | | |
Real estate – commercial & farmland | | | 17,514 | | | | 4,967 | | | | 9,651 | | | | 14,618 | | | | 1,859 | | | | 15,972 | | | | | | | | | |
Real estate – residential | | | 15,571 | | | | 3,514 | | | | 9,407 | | | | 12,921 | | | | 974 | | | | 16,317 | | | | | | | | | |
Consumer installment loans | | | 618 | | | | - | | | | 533 | | | | 533 | | | | 9 | | | | 519 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 45,415 | | | $ | 8,935 | | | $ | 25,552 | | | $ | 34,487 | | | $ | 4,008 | | | $ | 41,197 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | 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, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 6,240 | | | $ | - | | | $ | 4,618 | | | $ | 4,618 | | | $ | 435 | | | $ | 4,844 | | | | | | | | | |
Real estate – construction & development | | | 11,363 | | | | - | | | | 5,867 | | | | 5,867 | | | | 512 | | | | 8,341 | | | | | | | | | |
Real estate – commercial & farmland | | | 18,456 | | | | - | | | | 15,479 | | | | 15,479 | | | | 1,443 | | | | 17,559 | | | | | | | | | |
Real estate – residential | | | 24,342 | | | | - | | | | 19,970 | | | | 19,970 | | | | 1,472 | | | | 20,335 | | | | | | | | | |
Consumer installment loans | | | 623 | | | | - | | | | 483 | | | | 483 | | | | 9 | | | | 642 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 61,024 | | | $ | - | | | $ | 46,417 | | | $ | 46,417 | | | $ | 3,871 | | | $ | 51,721 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
During 2014, 2013 and 2012, the Company recorded provision for loan loss expense of $843,000, $1.5 million and $2.6 million, respectively, to account for losses where there was a decrease in cash flows from the initial estimates on loans acquired in FDIC-assisted transactions. During 2014, the Company recorded provision for loan loss expense of $84,000 to account for losses where there was a decrease in cash flows from the initial estimates on purchased, non-covered loans. The Company did not record a provision for loan loss expense to account for losses where the initial estimate of cash flows was revised downward based on new information on purchased, non-covered loans during 2013 and 2012. The allowance for loan losses allocated to purchased non-covered loans and covered loans that is immediately charged off is related to the purchased credit-impaired loans. Charge-offs on purchased loans, both covered and non-covered, are recorded when impairment is recorded. Provision expense for covered loans is recorded net of the indemnification by the FDIC loss-share agreements. |
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The following is a summary of information pertaining to purchased non-covered impaired loans: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of and For the Years Ended | | | | | | | | | | | | | | | | | | | | | |
December 31, | | | | | | | | | | | | | | | | | | | | |
| | 2014 | | | 2013 | | | 2012 | | | | | | | | | | | | | | | | | | | | | |
| | (Dollars in Thousands) | | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | $ | 18,249 | | | $ | 6,659 | | | $ | - | | | | | | | | | | | | | | | | | | | | | |
Troubled debt restructurings not included above | | | 1,212 | | | | 5,938 | | | | - | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total impaired loans | | $ | 19,461 | | | $ | 12,597 | | | $ | - | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Interest income recognized on impaired loans | | $ | 109 | | | $ | - | | | $ | - | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foregone interest income on impaired loans | | $ | 237 | | | $ | - | | | $ | - | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents an analysis of information pertaining to purchased non-covered impaired loans as of December 31, 2014 and 2013. |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 499 | | | $ | 175 | | | $ | - | | | $ | 175 | | | $ | - | | | $ | 165 | | | | | | | | | |
Real estate – construction & development | | | 2,210 | | | | 1,436 | | | | - | | | | 1,436 | | | | - | | | | 1,643 | | | | | | | | | |
Real estate – commercial & farmland | | | 13,520 | | | | 10,588 | | | | - | | | | 10,588 | | | | - | | | | 7,484 | | | | | | | | | |
Real estate – residential | | | 10,487 | | | | 7,191 | | | | - | | | | 7,191 | | | | - | | | | 7,084 | | | | | | | | | |
Consumer installment loans | | | 169 | | | | 71 | | | | - | | | | 71 | | | | - | | | | 68 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 26,885 | | | $ | 19,461 | | | $ | - | | | $ | 19,461 | | | $ | - | | | $ | 16,444 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | 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, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 19 | | | $ | 11 | | | $ | - | | | $ | 11 | | | $ | - | | | $ | - | | | | | | | | | |
Real estate – construction & development | | | 5,719 | | | | 3,690 | | | | - | | | | 3,690 | | | | - | | | | 71 | | | | | | | | | |
Real estate – commercial & farmland | | | 4,563 | | | | 2,881 | | | | - | | | | 2,881 | | | | - | | | | 55 | | | | | | | | | |
Real estate – residential | | | 9,612 | | | | 5,978 | | | | - | | | | 5,978 | | | | - | | | | 115 | | | | | | | | | |
Consumer installment loans | | | 57 | | | | 37 | | | | - | | | | 37 | | | | - | | | | 1 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 19,970 | | | $ | 12,597 | | | $ | - | | | $ | 12,597 | | | $ | - | | | $ | 242 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
The following is a summary of information pertaining to covered impaired loans: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of and For the Years Ended | | | | | | | | | | | | | | | | | | | | | |
December 31, | | | | | | | | | | | | | | | | | | | | |
| | 2014 | | | 2013 | | | 2012 | | | | | | | | | | | | | | | | | | | | | |
| | (Dollars in Thousands) | | | | | | | | | | | | | | | | | | | | | |
Nonaccrual loans | | $ | 35,412 | | | $ | 69,152 | | | $ | 115,712 | | | | | | | | | | | | | | | | | | | | | |
Troubled debt restructurings not included above | | | 22,619 | | | | 22,243 | | | | 17,090 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total impaired loans | | $ | 58,031 | | | $ | 91,395 | | | $ | 132,802 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Interest income recognized on impaired loans | | $ | 1,134 | | | $ | 968 | | | $ | 849 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Foregone interest income on impaired loans | | $ | 109 | | | $ | 330 | | | $ | 491 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents an analysis of information pertaining to covered impaired loans as of December 31, 2014 and 2013. |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 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, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 10,845 | | | $ | 8,582 | | | $ | - | | | $ | 8,582 | | | $ | - | | | $ | 9,777 | | | | | | | | | |
Real estate – construction & development | | | 11,621 | | | | 10,638 | | | | - | | | | 10,638 | | | | - | | | | 14,132 | | | | | | | | | |
Real estate – commercial & farmland | | | 23,349 | | | | 20,663 | | | | - | | | | 20,663 | | | | - | | | | 28,594 | | | | | | | | | |
Real estate – residential | | | 19,629 | | | | 18,054 | | | | - | | | | 18,054 | | | | - | | | | 21,091 | | | | | | | | | |
Consumer installment loans | | | 111 | | | | 94 | | | | - | | | | 94 | | | | - | | | | 163 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 65,555 | | | $ | 58,031 | | | $ | - | | | $ | 58,031 | | | $ | - | | | $ | 73,757 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| | 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, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | $ | 9,680 | | | $ | 7,270 | | | $ | - | | | $ | 7,270 | | | $ | - | | | $ | 8,696 | | | | | | | | | |
Real estate – construction & development | | | 20,915 | | | | 18,037 | | | | - | | | | 18,037 | | | | - | | | | 21,794 | | | | | | | | | |
Real estate – commercial & farmland | | | 46,612 | | | | 40,749 | | | | - | | | | 40,749 | | | | - | | | | 51,584 | | | | | | | | | |
Real estate – residential | | | 29,089 | | | | 24,998 | | | | - | | | | 24,998 | | | | - | | | | 28,452 | | | | | | | | | |
Consumer installment loans | | | 394 | | | | 341 | | | | - | | | | 341 | | | | - | | | | 304 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 106,690 | | | $ | 91,395 | | | $ | - | | | $ | 91,395 | | | $ | - | | | $ | 110,830 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
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 loan portfolio, excluding purchased non-covered and covered loans, by risk grade as of December 31, 2014 and 2013. |
|
As of December 31, 2014: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk Grade | | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Other | | | Total | | | | | |
financial & | construction & | commercial & | residential | installment | | | | |
agricultural | development | farmland | | loans | | | | |
| | (Dollars in Thousands) | | | | | |
10 | | $ | 121,355 | | | $ | 268 | | | $ | 155 | | | $ | 226 | | | $ | 6,573 | | | $ | - | | | $ | 128,577 | | | | | |
15 | | | 25,318 | | | | 4,010 | | | | 128,170 | | | | 59,301 | | | | 1,005 | | | | - | | | | 217,804 | | | | | |
20 | | | 100,599 | | | | 47,541 | | | | 511,198 | | | | 256,758 | | | | 17,544 | | | | 14,308 | | | | 947,948 | | | | | |
23 | | | 56 | | | | 8,933 | | | | 10,507 | | | | 9,672 | | | | 37 | | | | - | | | | 29,205 | | | | | |
25 | | | 62,519 | | | | 93,514 | | | | 224,464 | | | | 102,998 | | | | 4,692 | | | | - | | | | 488,187 | | | | | |
30 | | | 3,758 | | | | 1,474 | | | | 13,035 | | | | 7,459 | | | | 257 | | | | - | | | | 25,983 | | | | | |
40 | | | 6,049 | | | | 5,767 | | | | 19,995 | | | | 19,692 | | | | 673 | | | | - | | | | 52,176 | | | | | |
50 | | | - | | | | - | | | | - | | | | - | | | | 1 | | | | - | | | | 1 | | | | | |
60 | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 319,654 | | | $ | 161,507 | | | $ | 907,524 | | | $ | 456,106 | | | $ | 30,782 | | | $ | 14,308 | | | $ | 1,889,881 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
As of December 31, 2013: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk Grade | | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Other | | | Total | | | | | |
financial & | construction & | commercial & | residential | installment | | | | |
agricultural | development | farmland | | loans | | | | |
| | (Dollars in Thousands) | | | | | |
10 | | $ | 66,983 | | | $ | - | | | $ | 265 | | | $ | 419 | | | $ | 6,714 | | | $ | - | | | $ | 74,381 | | | | | |
15 | | | 24,789 | | | | 4,655 | | | | 147,157 | | | | 52,335 | | | | 1,276 | | | | - | | | | 230,212 | | | | | |
20 | | | 93,852 | | | | 45,195 | | | | 431,790 | | | | 150,343 | | | | 18,619 | | | | 33,252 | | | | 773,051 | | | | | |
23 | | | 127 | | | | 8,343 | | | | 10,219 | | | | 12,641 | | | | 274 | | | | - | | | | 31,604 | | | | | |
25 | | | 50,373 | | | | 78,736 | | | | 181,645 | | | | 103,427 | | | | 6,310 | | | | - | | | | 420,491 | | | | | |
30 | | | 2,111 | | | | 2,876 | | | | 11,849 | | | | 13,558 | | | | 197 | | | | - | | | | 30,591 | | | | | |
40 | | | 6,011 | | | | 6,566 | | | | 25,398 | | | | 19,153 | | | | 859 | | | | - | | | | 57,987 | | | | | |
50 | | | 127 | | | | - | | | | - | | | | 10 | | | | - | | | | - | | | | 137 | | | | | |
60 | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 244,373 | | | $ | 146,371 | | | $ | 808,323 | | | $ | 351,886 | | | $ | 34,249 | | | $ | 33,252 | | | $ | 1,618,454 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
The following table presents the purchased non-covered loan portfolio by risk grade as of December 31, 2014 and 2013. |
|
As of December 31, 2014: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk Grade | | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Other | | | Total | | | | | |
financial & | construction & | commercial & | residential | installment | | | | |
agricultural | development | farmland | | loans | | | | |
| | (Dollars in Thousands) | | | | | |
10 | | $ | 6,624 | | | $ | - | | | $ | - | | | $ | 290 | | | $ | 480 | | | $ | - | | | $ | 7,394 | | | | | |
15 | | | 1,376 | | | | 522 | | | | 13,277 | | | | 14,051 | | | | 501 | | | | - | | | | 29,727 | | | | | |
20 | | | 13,657 | | | | 12,991 | | | | 116,308 | | | | 64,083 | | | | 1,647 | | | | - | | | | 208,686 | | | | | |
23 | | | 73 | | | | - | | | | 3,207 | | | | 3,298 | | | | - | | | | - | | | | 6,578 | | | | | |
25 | | | 13,753 | | | | 36,230 | | | | 144,293 | | | | 164,959 | | | | 1,920 | | | | - | | | | 361,155 | | | | | |
30 | | | 1,618 | | | | 4,365 | | | | 12,279 | | | | 7,444 | | | | 41 | | | | - | | | | 25,747 | | | | | |
40 | | | 910 | | | | 4,254 | | | | 17,342 | | | | 12,184 | | | | 199 | | | | - | | | | 34,889 | | | | | |
50 | | | 30 | | | | - | | | | - | | | | 33 | | | | - | | | | - | | | | 63 | | | | | |
60 | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 38,041 | | | $ | 58,362 | | | $ | 306,706 | | | $ | 266,342 | | | $ | 4,788 | | | $ | - | | | $ | 674,239 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
As of December 31, 2013: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk Grade | | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Other | | | Total | | | | | |
financial & | construction & | commercial & | residential | installment | | | | |
agricultural | development | farmland | | loans | | | | |
| | (Dollars in Thousands) | | | | | |
10 | | $ | 1,865 | | | $ | - | | | $ | - | | | $ | 289 | | | $ | 451 | | | $ | - | | | $ | 2,605 | | | | | |
15 | | | 4,606 | | | | 7 | | | | 12,998 | | | | 16,160 | | | | 703 | | | | - | | | | 34,474 | | | | | |
20 | | | 5,172 | | | | 3,960 | | | | 43,802 | | | | 34,576 | | | | 1,383 | | | | - | | | | 88,893 | | | | | |
23 | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | | |
25 | | | 19,638 | | | | 20,733 | | | | 102,260 | | | | 129,923 | | | | 1,888 | | | | - | | | | 274,442 | | | | | |
30 | | | 576 | | | | 1,760 | | | | 9,554 | | | | 10,878 | | | | 194 | | | | - | | | | 22,962 | | | | | |
40 | | | 284 | | | | 4,716 | | | | 11,284 | | | | 9,025 | | | | 68 | | | | - | | | | 25,377 | | | | | |
50 | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | | |
60 | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 32,141 | | | $ | 31,176 | | | $ | 179,898 | | | $ | 200,851 | | | $ | 4,687 | | | $ | - | | | $ | 448,753 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
|
|
The following table presents the covered loan portfolio by risk grade as of December 31, 2014 and 2013. |
|
As of December 31, 2014: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk Grade | | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Other | | | Total | | | | | |
financial & | construction & | commercial & | residential | installment | | | | |
agricultural | development | farmland | | loans | | | | |
| | (Dollars in Thousands) | | | | | |
10 | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | | | | | | |
15 | | | - | | | | 1 | | | | 761 | | | | 525 | | | | - | | | | - | | | | 1,287 | | | | | |
20 | | | 917 | | | | 3,184 | | | | 23,167 | | | | 14,089 | | | | 77 | | | | - | | | | 41,434 | | | | | |
23 | | | 164 | | | | 537 | | | | 11,404 | | | | 6,642 | | | | - | | | | - | | | | 18,747 | | | | | |
25 | | | 5,181 | | | | 9,406 | | | | 80,334 | | | | 33,124 | | | | 37 | | | | - | | | | 128,082 | | | | | |
30 | | | 4,808 | | | | 2,753 | | | | 5,302 | | | | 8,050 | | | | - | | | | - | | | | 20,913 | | | | | |
40 | | | 10,397 | | | | 7,566 | | | | 26,659 | | | | 16,090 | | | | 104 | | | | - | | | | 60,816 | | | | | |
50 | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | | |
60 | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 21,467 | | | $ | 23,447 | | | $ | 147,627 | | | $ | 78,520 | | | $ | 218 | | | $ | - | | | $ | 271,279 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
As of December 31, 2013: |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Risk Grade | | Commercial, | | | Real estate - | | | Real estate - | | | Real estate - | | | Consumer | | | Other | | | Total | | | | | |
financial & | construction & | commercial & | residential | installment | | | | |
agricultural | development | farmland | | loans | | | | |
| | (Dollars in Thousands) | | | | | |
10 | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | | | |
15 | | | - | | | | 16 | | | | 1,048 | | | | 638 | | | | - | | | | - | | | | 1,702 | | | | | |
20 | | | 2,184 | | | | 8,549 | | | | 34,674 | | | | 21,363 | | | | 193 | | | | - | | | | 66,963 | | | | | |
23 | | | 134 | | | | 1,085 | | | | 17,037 | | | | 4,748 | | | | 51 | | | | - | | | | 23,055 | | | | | |
25 | | | 7,508 | | | | 9,611 | | | | 101,657 | | | | 38,427 | | | | 235 | | | | - | | | | 157,438 | | | | | |
30 | | | 5,125 | | | | 2,006 | | | | 21,297 | | | | 6,979 | | | | 17 | | | | - | | | | 35,424 | | | | | |
40 | | | 11,599 | | | | 21,912 | | | | 48,738 | | | | 23,018 | | | | 388 | | | | - | | | | 105,655 | | | | | |
50 | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | | |
60 | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 26,550 | | | $ | 43,179 | | | $ | 224,451 | | | $ | 95,173 | | | $ | 884 | | | $ | - | | | $ | 390,237 | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
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) when 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 Chief 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 2014 and 2013 totaling $29.1 million and $30.4 million, respectively, 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. |
|
As of December 31, 2014 and 2013, the Company had a balance of $15.3 million and $20.9 million, respectively, in troubled debt restructurings, excluding purchased non-covered and covered loans. The Company has recorded $2.2 million and $2.1 million in previous charge-offs on such loans at December 31, 2014 and 2013, respectively. The Company’s balance in the allowance for loan losses allocated to such troubled debt restructurings was $231,000 and $432,000 at December 31, 2014 and 2013, respectively. At December 31, 2014, the Company did not have any commitments to lend additional funds to debtors whose terms have been modified in troubled restructurings. |
|
During the year ending December 31, 2014, the Company modified loans as troubled debt restructurings with principal balances of $3.1 million. These modifications impacted the Company’s allowance for loan losses by $232,000 for the year ended December 31, 2014. The following table presents the loans by class modified as troubled debt restructurings that occurred during the year ending December 31, 2014 and 2013. |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2014 | | | December 31, 2013 | | | | | | | | | | | | | | | | | | | | | |
Loan class: | | # | | Balance | | | # | | Balance | | | | | | | | | | | | | | | | | | | | | |
(in thousands) | (in thousands) | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | 6 | | $ | 100 | | | 2 | | $ | 255 | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 5 | | | 264 | | | 5 | | | 270 | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 5 | | | 1,082 | | | 4 | | | 1,084 | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | 20 | | | 1,309 | | | 18 | | | 1,548 | | | | | | | | | | | | | | | | | | | | | |
Consumer installment | | 16 | | | 67 | | | 9 | | | 92 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 52 | | $ | 2,822 | | | 38 | | $ | 3,249 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
Troubled debt restructurings with an outstanding balance of $1.2 million at December 31, 2013 defaulted during the year ended December 31, 2014 and these defaults did not have a material impact on the Company’s allowance for loan loss. The following table presents the troubled debt restructurings by class that defaulted during the year ending December 31, 2014 and 2013. |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | December 31, 2014 | | | December 31, 2013 | | | | | | | | | | | | | | | | | | | | | |
Loan class: | | # | | Balance | | | # | | Balance | | | | | | | | | | | | | | | | | | | | | |
(in thousands) | (in thousands) | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | 1 | | $ | 236 | | | 3 | | $ | 525 | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 1 | | | 33 | | | 1 | | | 29 | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 2 | | | 570 | | | 3 | | | 2,197 | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | 6 | | | 314 | | | 3 | | | 639 | | | | | | | | | | | | | | | | | | | | | |
Consumer installment | | 4 | | | 61 | | | - | | | - | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 14 | | $ | 1,214 | | | 10 | | $ | 3,390 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
|
|
The following table presents the amount of troubled debt restructurings by loan class, excluding purchased non-covered and covered loans, classified separately as accrual and non-accrual at December 31, 2014 and 2013. |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2014 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | | | | | |
Loan class: | | # | | Balance | | | # | | Balance | | | | | | | | | | | | | | | | | | | | | |
(in thousands) | (in thousands) | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | 6 | | $ | 290 | | | 2 | | $ | 13 | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 9 | | | 679 | | | 5 | | | 228 | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 19 | | | 6,477 | | | 3 | | | 724 | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | 47 | | | 5,258 | | | 11 | | | 1,485 | | | | | | | | | | | | | | | | | | | | | |
Consumer installment | | 11 | | | 55 | | | 11 | | | 73 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 92 | | $ | 12,759 | | | 32 | | $ | 2,523 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2013 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | | | | | |
Loan class: | | # | | Balance | | | # | | Balance | | | | | | | | | | | | | | | | | | | | | |
(in thousands) | (in thousands) | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | 4 | | $ | 515 | | | 3 | | $ | 525 | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 8 | | | 1,896 | | | 2 | | | 32 | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 17 | | | 6,913 | | | 4 | | | 2,273 | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | 37 | | | 7,818 | | | 8 | | | 834 | | | | | | | | | | | | | | | | | | | | | |
Consumer installment | | 6 | | | 72 | | | 3 | | | 19 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 72 | | $ | 17,214 | | | 20 | | $ | 3,683 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
As of December 31, 2014, the Company had a balance of $1.2 million in troubled debt restructurings included in purchased non-covered loans. The Company did not have any troubled debt restructurings included in purchased non-covered loans at December 31, 2013. The Company has recorded $29,000 in charge-offs on such loans at December 31, 2014. At December 31, 2014, the Company did not have any commitments to lend additional funds to debtors whose terms have been modified in troubled restructurings. |
|
The following table presents the amount of troubled debt restructurings by loan class of purchased non-covered loans, classified separately as accrual and non-accrual at December 31, 2014. |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2014 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | | | | | |
Loan class: | | # | | Balance | | | # | | Balance | | | | | | | | | | | | | | | | | | | | | |
(in thousands) | (in thousands) | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | - | | $ | - | | | - | | $ | - | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 1 | | | 317 | | | - | | | - | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 1 | | | 346 | | | - | | | - | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | 6 | | | 547 | | | 1 | | | 25 | | | | | | | | | | | | | | | | | | | | | |
Consumer installment | | 1 | | | 2 | | | - | | | - | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 9 | | $ | 1,212 | | | 1 | | $ | 25 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
As of December 31, 2014 and 2013, the Company had a balance of $24.6 million and $27.3 million, respectively, in troubled debt restructurings included in covered loans. The Company has recorded $1.8 million and $1.6 million in previous charge-offs on such loans at December 31, 2014 and 2013, respectively. At December 31, 2014, the Company did not have any commitments to lend additional funds to debtors whose terms have been modified in troubled restructurings. |
|
|
|
The following table presents the amount of troubled debt restructurings by loan class of covered loans, classified separately as accrual and non-accrual at December 31, 2014 and 2013. |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2014 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | | | | | |
Loan class: | | # | | Balance | | | # | | Balance | | | | | | | | | | | | | | | | | | | | | |
(in thousands) | (in thousands) | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | 2 | | $ | 40 | | | 2 | | $ | - | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 4 | | | 3,037 | | | 2 | | | 29 | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 14 | | | 8,079 | | | 5 | | | 1,082 | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | 96 | | | 11,460 | | | 8 | | | 831 | | | | | | | | | | | | | | | | | | | | | |
Consumer installment | | 1 | | | 3 | | | - | | | - | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 117 | | $ | 22,619 | | | 17 | | $ | 1,942 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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As of December 31, 2013 | | Accruing Loans | | | Non-Accruing Loans | | | | | | | | | | | | | | | | | | | | | |
Loan class: | | # | | Balance | | | # | | Balance | | | | | | | | | | | | | | | | | | | | | |
(in thousands) | (in thousands) | | | | | | | | | | | | | | | | | | | | |
Commercial, financial & agricultural | | 1 | | $ | 13 | | | 5 | | $ | 71 | | | | | | | | | | | | | | | | | | | | | |
Real estate – construction & development | | 3 | | | 3,256 | | | 4 | | | 52 | | | | | | | | | | | | | | | | | | | | | |
Real estate – commercial & farmland | | 13 | | | 7,255 | | | 5 | | | 3,946 | | | | | | | | | | | | | | | | | | | | | |
Real estate – residential | | 83 | | | 11,719 | | | 8 | | | 942 | | | | | | | | | | | | | | | | | | | | | |
Consumer installment | | - | | | - | | | 2 | | | 10 | | | | | | | | | | | | | | | | | | | | | |
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Total | | 100 | | $ | 22,243 | | | 24 | | $ | 5,021 | | | | | | | | | | | | | | | | | | | | | |
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Related Party Loans and Deposits |
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In the ordinary course of business, the Company has granted loans to certain directors and their affiliates. Company policy prohibits loans to executive officers. Changes in related party loans are summarized as follows: |
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| | December 31, | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2014 | | | 2013 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (Dollars in Thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, beginning of year | | $ | 5,565 | | | $ | 1,392 | | | | | | | | | | | | | | | | | | | | | | | | | |
Advances | | | 78 | | | | 813 | | | | | | | | | | | | | | | | | | | | | | | | | |
Repayments | | | (1,240 | ) | | | (923 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Transactions due to changes in related parties | | | - | | | | 4,283 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Balance, end of year | | $ | 4,403 | | | $ | 5,565 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Deposits from principal officers, directors, and their affiliates at December 31, 2014 and 2013 were $6,018,000 and $5,994,000, respectively. |
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Allowance for Loan Losses |
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The following table details activity in the allowance for loan losses by portfolio segment for the periods indicated. 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 | | | Purchased | | | Covered | | | Total | |
financial & | construction & | commercial & | residential | installment | non-covered | loans |
agricultural | development | farmland | | loans and | loans | |
| | | | Other | | |
| | (Dollars in Thousands) | |
Twelve months ended December 31, 2014: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, January 1, 2014 | | $ | 1,823 | | | $ | 5,538 | | | $ | 8,393 | | | $ | 6,034 | | | $ | 589 | | | $ | - | | | $ | - | | | $ | 22,377 | |
Provision for loan losses | | | 1,427 | | | | (265) | | | | 3,444 | | | | -452 | | | | 567 | | | | 84 | | | | 843 | | | | 5,648 | |
Loans charged off | | | (1,567) | | | | (592) | | | | (3,288) | | | | -1,707 | | | | -471 | | | | (84) | | | | (1,851) | | | | (9,560) | |
Recoveries of loans previously charged off | | | 321 | | | | 349 | | | | 274 | | | | 254 | | | | 486 | | | | - | | | | 1,008 | | | | 2,692 | |
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Balance, December 31, 2014 | | $ | 2,004 | | | $ | 5,030 | | | $ | 8,823 | | | $ | 4,129 | | | $ | 1,171 | | | $ | - | | | $ | - | | | $ | 21,157 | |
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Period-end amount allocated to: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 375 | | | $ | 743 | | | $ | 1,861 | | | $ | 911 | | | $ | - | | | $ | - | | | $ | - | | | $ | 3,890 | |
Loans collectively evaluated for impairment | | | 1,629 | | | | 4,287 | | | | 6,962 | | | | 3,218 | | | | 1,171 | | | | - | | | | - | | | | 17,267 | |
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Ending balance | | $ | 2,004 | | | $ | 5,030 | | | $ | 8,823 | | | $ | 4,129 | | | $ | 1,171 | | | $ | - | | | $ | - | | | $ | 21,157 | |
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Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 490 | | | $ | 3,709 | | | $ | 14,546 | | | $ | 8,904 | | | $ | - | | | $ | - | | | $ | - | | | $ | 27,649 | |
Collectively evaluated for impairment | | | 319,164 | | | | 157,798 | | | | 892,978 | | | | 447,202 | | | | 45,090 | | | | 579,172 | | | | 122,248 | | | | 2,563,652 | |
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Acquired with deteriorated credit quality | | | - | | | | - | | | | - | | | | - | | | | - | | | | 95,067 | | | | 149,031 | | | | 244,098 | |
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Ending balance | | $ | 319,654 | | | $ | 161,507 | | | $ | 907,524 | | | $ | 456,106 | | | $ | 45,090 | | | $ | 674,239 | | | $ | 271,279 | | | $ | 2,835,399 | |
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| | Commercial, | | | Real estate – | | | Real estate – | | | Real estate - | | | Consumer | | | Purchased | | | Covered | | | Total | |
financial & | construction & | commercial & | residential | installment | non-covered | loans |
agricultural | development | farmland | | loans and | loans | |
| | | | Other | | |
| | (Dollars in Thousands) | |
Twelve months ended December 31, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance, January 1, 2013 | | $ | 2,439 | | | $ | 5,343 | | | $ | 9,157 | | | $ | 5,898 | | | $ | 756 | | | $ | - | | | $ | - | | | $ | 23,593 | |
Provision for loan losses | | | 711 | | | | 1,742 | | | | 2,777 | | | | 4,463 | | | | 254 | | | | - | | | | 1,539 | | | | 11,486 | |
Loans charged off | | | (1,759) | | | | (2,020) | | | | (3,571) | | | | -5,215 | | | | -719 | | | | - | | | | (1,539) | | | | (14,823) | |
Recoveries of loans previously charged off | | | 432 | | | | 473 | | | | 30 | | | | 888 | | | | 298 | | | | - | | | | - | | | | 2,121 | |
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Balance, December 31, 2013 | | $ | 1,823 | | | $ | 5,538 | | | $ | 8,393 | | | $ | 6,034 | | | $ | 589 | | | $ | - | | | $ | - | | | $ | 22,377 | |
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Period-end amount allocated to: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 356 | | | $ | 407 | | | $ | 1,427 | | | $ | 1,395 | | | $ | - | | | $ | - | | | $ | - | | | $ | 3,585 | |
Loans collectively evaluated for impairment | | | 1,467 | | | | 5,131 | | | | 6,966 | | | | 4,639 | | | | 589 | | | | - | | | | - | | | | 18,792 | |
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Ending balance | | $ | 1,823 | | | $ | 5,538 | | | $ | 8,393 | | | $ | 6,034 | | | $ | 589 | | | $ | - | | | $ | - | | | $ | 22,377 | |
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Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 3,457 | | | $ | 3,581 | | | $ | 15,240 | | | $ | 16,925 | | | $ | - | | | $ | - | | | $ | - | | | $ | 39,203 | |
Collectively evaluated for impairment | | | 240,916 | | | | 142,790 | | | | 793,083 | | | | 349,957 | | | | 52,505 | | | | 381,588 | | | | 173,190 | | | | 2,134,029 | |
Acquired with deteriorated credit quality | | | - | | | | - | | | | - | | | | - | | | | - | | | | 67,165 | | | | 217,047 | | | | 284,212 | |
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Ending balance | | $ | 244,373 | | | $ | 146,371 | | | $ | 808,323 | | | $ | 366,882 | | | $ | 52,505 | | | $ | 448,753 | | | $ | 390,237 | | | $ | 2,457,444 | |
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| | Commercial, | | | Real estate – | | | Real estate – | | | Real estate - | | | Consumer | | | Purchased | | | Covered | | | Total | |
financial & | construction & | commercial | residential | installment | non-covered | loans |
agricultural | development | & farmland | | loans and | loans | |
| | | | Other | | |
| | (Dollars in Thousands) | |
Twelve months ended December 31, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | |
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 | | | | - | | | | 2,638 | | | | 31,089 | |
Loans charged off | | | (1,451) | | | | (9,380) | | | | (20,551) | | | | (8,722) | | | | (1,059) | | | | - | | | | (2,638) | | | | (43,801) | |
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 | | | | - | | | | 224,975 | | | | 1,630,290 | |
Acquired with deteriorated credit quality | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 282,737 | | | | 282,737 | |
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Ending balance | | $ | 174,217 | | | $ | 114,199 | | | $ | 732,322 | | | $ | 346,480 | | | $ | 83,417 | | | $ | - | | | $ | 507,712 | | | $ | 1,958,347 | |
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