ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | 9 Months Ended |
Sep. 30, 2014 |
Loans [Abstract] | ' |
ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY | ' |
NOTE 4. ALLOWANCE FOR LOAN LOSSES AND CREDIT QUALITY |
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The following tables present the activity in the allowance for loan losses by portfolio segment for the three-month periods ended September 30, 2014 and 2013: |
|
| | | | | Commercial | | | | | | | | | | | | | | | | | | | |
| | | | | Real Estate | | | | | | | | | | | | | | | | | | | |
| | Commercial | | and | | Agri-business | | | | | Consumer | | | | | | | | | | |
| | and | | Multifamily | | and | | Other | | 1-4 Family | | Other | | | | | | | |
(dollars in thousands) | | Industrial | | Residential | | Agricultural | | Commercial | | Mortgage | | Consumer | | Unallocated | | Total | |
30-Sep-14 | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 20,922 | | $ | 15,975 | | $ | 1,404 | | $ | 234 | | $ | 3,275 | | $ | 487 | | $ | 3,308 | | $ | 45,605 | |
Provision for loan losses | | | 919 | | | -1,274 | | | -34 | | | 76 | | | 178 | | | 68 | | | 67 | | | 0 | |
Loans charged-off | | | -147 | | | 0 | | | 0 | | | 0 | | | -60 | | | -62 | | | 0 | | | -269 | |
Recoveries | | | 291 | | | 670 | | | 5 | | | 0 | | | 59 | | | 26 | | | 0 | | | 1,051 | |
Net loans (charged-off)recovered | | | 144 | | | 670 | | | 5 | | | 0 | | | -1 | | | -36 | | | 0 | | | 782 | |
Ending balance | | $ | 21,985 | | $ | 15,371 | | $ | 1,375 | | $ | 310 | | $ | 3,452 | | $ | 519 | | $ | 3,375 | | $ | 46,387 | |
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| | | | | Real Estate | | | | | | | | | | | | | | | | | | | |
| | Commercial | | and | | Agri-business | | | | | Consumer | | | | | | | | | | |
| | and | | Multifamily | | and | | Other | | 1-4 Family | | Other | | | | | | | |
(dollars in thousands) | | Industrial | | Residential | | Agricultural | | Commercial | | Mortgage | | Consumer | | Unallocated | | Total | |
30-Sep-13 | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 21,879 | | $ | 20,098 | | $ | 1,517 | | $ | 264 | | $ | 2,823 | | $ | 587 | | $ | 3,467 | | $ | 50,635 | |
Provision for loan losses | | | 138 | | | -544 | | | -185 | | | -23 | | | 409 | | | 179 | | | 26 | | | 0 | |
Loans charged-off | | | -595 | | | -455 | | | 0 | | | 0 | | | -126 | | | -120 | | | 0 | | | -1,296 | |
Recoveries | | | 75 | | | 73 | | | 201 | | | 0 | | | 71 | | | 45 | | | 0 | | | 465 | |
Net loans (charged-off)recovered | | | -520 | | | -382 | | | 201 | | | 0 | | | -55 | | | -75 | | | 0 | | | -831 | |
Ending balance | | $ | 21,497 | | $ | 19,172 | | $ | 1,533 | | $ | 241 | | $ | 3,177 | | $ | 691 | | $ | 3,493 | | $ | 49,804 | |
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The following tables present the activity in the allowance for loan losses by portfolio segment for the nine-month periods ended September 30, 2014 and 2013: |
|
| | | | | Commercial | | | | | | | | | | | | | | | | | | | |
| | | | | Real Estate | | | | | | | | | | | | | | | | | | | |
| | Commercial | | and | | Agri-business | | | | | Consumer | | | | | | | | | | |
| | and | | Multifamily | | and | | Other | | 1-4 Family | | Other | | | | | | | |
(dollars in thousands) | | Industrial | | Residential | | Agricultural | | Commercial | | Mortgage | | Consumer | | Unallocated | | Total | |
30-Sep-14 | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 21,005 | | $ | 18,557 | | $ | 1,682 | | $ | 391 | | $ | 3,045 | | $ | 608 | | $ | 3,509 | | $ | 48,797 | |
Provision for loan losses | | | 1,296 | | | -1,334 | | | -323 | | | -81 | | | 587 | | | -11 | | | -134 | | | 0 | |
Loans charged-off | | | -660 | | | -2,553 | | | 0 | | | 0 | | | -282 | | | -180 | | | 0 | | | -3,675 | |
Recoveries | | | 344 | | | 701 | | | 16 | | | 0 | | | 102 | | | 102 | | | 0 | | | 1,265 | |
Net loans (charged-off)recovered | | | -316 | | | -1,852 | | | 16 | | | 0 | | | -180 | | | -78 | | | 0 | | | -2,410 | |
Ending balance | | $ | 21,985 | | $ | 15,371 | | $ | 1,375 | | $ | 310 | | $ | 3,452 | | $ | 519 | | $ | 3,375 | | $ | 46,387 | |
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| | | | | | Commercial | | | | | | | | | | | | | | | | | | | |
| | | | | | Real Estate | | | | | | | | | | | | | | | | | | | |
| | | Commercial | | | and | | | Agri-business | | | | | | Consumer | | | | | | | | | | |
| | | and | | | Multifamily | | | and | | | Other | | | 1-4 Family | | | Other | | | | | | | |
(dollars in thousands) | | | Industrial | | | Residential | | | Agricultural | | | Commercial | | | Mortgage | | | Consumer | | | Unallocated | | | Total | |
30-Sep-13 | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 22,342 | | $ | 20,812 | | $ | 1,403 | | $ | 240 | | $ | 2,682 | | $ | 609 | | $ | 3,357 | | $ | 51,445 | |
Provision for loan losses | | | -569 | | | -627 | | | 125 | | | 1 | | | 709 | | | 225 | | | 136 | | | 0 | |
Loans charged-off | | | -738 | | | -1,361 | | | -200 | | | 0 | | | -315 | | | -257 | | | 0 | | | -2,871 | |
Recoveries | | | 462 | | | 348 | | | 205 | | | 0 | | | 101 | | | 114 | | | 0 | | | 1,230 | |
Net loans (charged-off)recovered | | | -276 | | | -1,013 | | | 5 | | | 0 | | | -214 | | | -143 | | | 0 | | | -1,641 | |
Ending balance | | $ | 21,497 | | $ | 19,172 | | $ | 1,533 | | $ | 241 | | $ | 3,177 | | $ | 691 | | $ | 3,493 | | $ | 49,804 | |
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The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2014 and December 31, 2013: |
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| | | | | | Commercial | | | | | | | | | | | | | | | | | | | |
| | | | | | Real Estate | | | | | | | | | | | | | | | | | | | |
| | | Commercial | | | and | | | Agri-business | | | | | | Consumer | | | | | | | | | | |
| | | and | | | Multifamily | | | and | | | Other | | | 1-4 Family | | | Other | | | | | | | |
(dollars in thousands) | | | Industrial | | | Residential | | | Agricultural | | | Commercial | | | Mortgage | | | Consumer | | | Unallocated | | | Total | |
30-Sep-14 | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 4,017 | | $ | 1,875 | | $ | 15 | | $ | 0 | | $ | 539 | | $ | 74 | | $ | 0 | | $ | 6,520 | |
Collectively evaluated for impairment | | | 17,968 | | | 13,496 | | | 1,360 | | | 310 | | | 2,913 | | | 445 | | | 3,375 | | | 39,867 | |
Total ending allowance balance | | $ | 21,985 | | $ | 15,371 | | $ | 1,375 | | $ | 310 | | $ | 3,452 | | $ | 519 | | $ | 3,375 | | $ | 46,387 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 16,771 | | $ | 12,970 | | $ | 486 | | $ | 0 | | $ | 3,785 | | $ | 132 | | $ | 0 | | $ | 34,144 | |
Loans collectively evaluated for impairment | | | 1,014,911 | | | 1,021,391 | | | 209,322 | | | 77,075 | | | 297,316 | | | 47,764 | | | 0 | | | 2,667,779 | |
Total ending loans balance | | $ | 1,031,682 | | $ | 1,034,361 | | $ | 209,808 | | $ | 77,075 | | $ | 301,101 | | $ | 47,896 | | $ | 0 | | $ | 2,701,923 | |
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| | | | | | Commercial | | | | | | | | | | | | | | | | | | | |
| | | | | | Real Estate | | | | | | | | | | | | | | | | | | | |
| | | Commercial | | | and | | | Agri-business | | | | | | Consumer | | | | | | | | | | |
| | | and | | | Multifamily | | | and | | | Other | | | 1-4 Family | | | Other | | | | | | | |
(dollars in thousands) | | | Industrial | | | Residential | | | Agricultural | | | Commercial | | | Mortgage | | | Consumer | | | Unallocated | | | Total | |
31-Dec-13 | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 4,144 | | $ | 4,598 | | $ | 38 | | $ | 0 | | $ | 479 | | $ | 57 | | $ | 0 | | $ | 9,316 | |
Collectively evaluated for impairment | | | 16,861 | | | 13,959 | | | 1,644 | | | 391 | | | 2,566 | | | 551 | | | 3,509 | | | 39,481 | |
Total ending allowance balance | | $ | 21,005 | | $ | 18,557 | | $ | 1,682 | | $ | 391 | | $ | 3,045 | | $ | 608 | | $ | 3,509 | | $ | 48,797 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans individually evaluated for impairment | | $ | 16,196 | | $ | 22,204 | | $ | 1,114 | | $ | 0 | | $ | 3,594 | | $ | 119 | | $ | 0 | | $ | 43,227 | |
Loans collectively evaluated for impairment | | | 885,651 | | | 962,673 | | | 253,011 | | | 70,766 | | | 273,812 | | | 45,958 | | | 0 | | | 2,491,871 | |
Total ending loans balance | | $ | 901,847 | | $ | 984,877 | | $ | 254,125 | | $ | 70,766 | | $ | 277,406 | | $ | 46,077 | | $ | 0 | | $ | 2,535,098 | |
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The recorded investment in loans does not include accrued interest. |
| | | | | | | | | | | | | | | | | | | | | | | | | |
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The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2014: |
|
| | Unpaid | | | | Allowance for | | | | | | | | | | | | | | | | |
| | Principal | | Recorded | | Loan Losses | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Balance | | Investment | | Allocated | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | $ | 22 | | $ | 21 | | $ | 0 | | | | | | | | | | | | | | | | |
Non-working capital loans | | | 1,679 | | | 285 | | | 0 | | | | | | | | | | | | | | | | |
Commercial real estate and multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | 528 | | | 528 | | | 0 | | | | | | | | | | | | | | | | |
Owner occupied loans | | | 337 | | | 157 | | | 0 | | | | | | | | | | | | | | | | |
Nonowner occupied loans | | | 323 | | | 323 | | | 0 | | | | | | | | | | | | | | | | |
Multifamily loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 603 | | | 283 | | | 0 | | | | | | | | | | | | | | | | |
Loans for ag production | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other commercial loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Consumer 1-4 family loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 706 | | | 708 | | | 0 | | | | | | | | | | | | | | | | |
Open end and junior lien loans | | | 352 | | | 352 | | | 0 | | | | | | | | | | | | | | | | |
Residential construction loans | | | 133 | | | 133 | | | 0 | | | | | | | | | | | | | | | | |
Other consumer loans | | | 1 | | | 1 | | | 0 | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | | 1,808 | | | 1,807 | | | 901 | | | | | | | | | | | | | | | | |
Non-working capital loans | | | 16,821 | | | 14,658 | | | 3,116 | | | | | | | | | | | | | | | | |
Commercial real estate and multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | 1,391 | | | 1,390 | | | 382 | | | | | | | | | | | | | | | | |
Owner occupied loans | | | 4,452 | | | 4,411 | | | 867 | | | | | | | | | | | | | | | | |
Nonowner occupied loans | | | 6,154 | | | 6,161 | | | 626 | | | | | | | | | | | | | | | | |
Multifamily loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 381 | | | 203 | | | 15 | | | | | | | | | | | | | | | | |
Loans for agricultural production | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other commercial loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Consumer 1-4 family mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 2,640 | | | 2,544 | | | 534 | | | | | | | | | | | | | | | | |
Open end and junior lien loans | | | 48 | | | 48 | | | 5 | | | | | | | | | | | | | | | | |
Residential construction loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other consumer loans | | | 131 | | | 131 | | | 74 | | | | | | | | | | | | | | | | |
Total | | $ | 38,510 | | $ | 34,144 | | $ | 6,520 | | | | | | | | | | | | | | | | |
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The recorded investment in loans does not include accrued interest. |
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The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2013: |
|
| | Unpaid | | | | Allowance for | | | | | | | | | | | | | | | | |
| | Principal | | Recorded | | Loan Losses | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Balance | | Investment | | Allocated | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | $ | 63 | | $ | 63 | | $ | 0 | | | | | | | | | | | | | | | | |
Commercial real estate and multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Owner occupied loans | | | 377 | | | 196 | | | 0 | | | | | | | | | | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 604 | | | 604 | | | 0 | | | | | | | | | | | | | | | | |
Other commercial loans | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer 1-4 family loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 688 | | | 689 | | | 0 | | | | | | | | | | | | | | | | |
Open end and junior lien loans | | | 81 | | | 81 | | | 0 | | | | | | | | | | | | | | | | |
Residential construction loans | | | 150 | | | 150 | | | 0 | | | | | | | | | | | | | | | | |
Other consumer loans | | | 1 | | | 1 | | | 0 | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | | 5,251 | | | 2,641 | | | 984 | | | | | | | | | | | | | | | | |
Non-working capital loans | | | 15,345 | | | 13,492 | | | 3,160 | | | | | | | | | | | | | | | | |
Commercial real estate and multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | 2,795 | | | 2,795 | | | 585 | | | | | | | | | | | | | | | | |
Owner occupied loans | | | 5,553 | | | 4,681 | | | 723 | | | | | | | | | | | | | | | | |
Nonowner occupied loans | | | 15,163 | | | 14,532 | | | 3,290 | | | | | | | | | | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 1,008 | | | 510 | | | 38 | | | | | | | | | | | | | | | | |
Consumer 1-4 family mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 3,469 | | | 2,463 | | | 442 | | | | | | | | | | | | | | | | |
Open end and junior lien loans | | | 211 | | | 211 | | | 37 | | | | | | | | | | | | | | | | |
Other consumer loans | | | 118 | | | 118 | | | 57 | | | | | | | | | | | | | | | | |
Total | | $ | 50,877 | | $ | 43,227 | | $ | 9,316 | | | | | | | | | | | | | | | | |
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The recorded investment in loans does not include accrued interest. |
|
The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended September 30, 2014: |
|
| | | | | | Cash Basis | | | | | | | | | | | | | | | | |
| | Average | | Interest | | Interest | | | | | | | | | | | | | | | | |
| | Recorded | | Income | | Income | | | | | | | | | | | | | | | | |
(dollars in thousands) | | Investment | | Recognized | | Recognized | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | $ | 22 | | $ | 0 | | $ | 0 | | | | | | | | | | | | | | | | |
Non-working capital loans | | | 290 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Commercial real estate and multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | 533 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Owner occupied loans | | | 160 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Nonowner occupied loans | | | 327 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Multifamily loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 284 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Loans for ag production | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other commercial loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Consumer 1-4 family loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 695 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Open end and junior lien loans | | | 286 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Residential construction loans | | | 135 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other consumer loans | | | 1 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | | 1,680 | | | 22 | | | 18 | | | | | | | | | | | | | | | | |
Non-working capital loans | | | 13,662 | | | 127 | | | 126 | | | | | | | | | | | | | | | | |
Commercial real estate and multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | 1,679 | | | 7 | | | 5 | | | | | | | | | | | | | | | | |
Owner occupied loans | | | 3,241 | | | 26 | | | 29 | | | | | | | | | | | | | | | | |
Nonowner occupied loans | | | 6,485 | | | 35 | | | 36 | | | | | | | | | | | | | | | | |
Multifamily loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 203 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Loans for agricultural production | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other commercial loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Consumer 1-4 family mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 2,568 | | | 17 | | | 17 | | | | | | | | | | | | | | | | |
Open end and junior lien loans | | | 48 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Residential construction loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other consumer loans | | | 89 | | | 1 | | | 1 | | | | | | | | | | | | | | | | |
Total | | $ | 32,388 | | $ | 235 | | $ | 232 | | | | | | | | | | | | | | | | |
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The recorded investment in loans does not include accrued interest. |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents loans individually evaluated for impairment by class of loans as of and for the three-month period ended September 30, 2013: |
|
| | | | | | | | | Cash Basis | | | | | | | | | | | | | | | | |
| | | Average | | | Interest | | | Interest | | | | | | | | | | | | | | | | |
| | | Recorded | | | Income | | | Income | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | Investment | | | Recognized | | | Recognized | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | $ | 64 | | $ | 0 | | $ | 0 | | | | | | | | | | | | | | | | |
Non-working capital loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Commercial real estate and multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Owner occupied loans | | | 616 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 479 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Consumer 1-4 family loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 719 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Open end and junior lien loans | | | 27 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other consumer loans | | | 1 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | | 2,988 | | | 12 | | | 14 | | | | | | | | | | | | | | | | |
Non-working capital loans | | | 14,017 | | | 120 | | | 126 | | | | | | | | | | | | | | | | |
Commercial real estate and multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | 2,848 | | | 11 | | | 20 | | | | | | | | | | | | | | | | |
Owner occupied loans | | | 3,707 | | | 20 | | | 20 | | | | | | | | | | | | | | | | |
Nonowner occupied loans | | | 19,183 | | | 87 | | | 86 | | | | | | | | | | | | | | | | |
Multifamily loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 536 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Consumer 1-4 family mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 2,347 | | | 5 | | | 6 | | | | | | | | | | | | | | | | |
Open end and junior lien loans | | | 22 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other consumer loans | | | 99 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Total | | $ | 47,653 | | $ | 255 | | $ | 272 | | | | | | | | | | | | | | | | |
|
The recorded investment in loans does not include accrued interest. |
|
The following table presents loans individually evaluated for impairment by class of loans as of and for the nine-month period ended September 30, 2014: |
|
| | | | | | | | | Cash Basis | | | | | | | | | | | | | | | | |
| | | Average | | | Interest | | | Interest | | | | | | | | | | | | | | | | |
| | | Recorded | | | Income | | | Income | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | Investment | | | Recognized | | | Recognized | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | $ | 186 | | $ | 1 | | $ | 1 | | | | | | | | | | | | | | | | |
Non-working capital loans | | | 133 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Commercial real estate and multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | 178 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Owner occupied loans | | | 215 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Nonowner occupied loans | | | 341 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Multifamily loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 226 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Loans for ag production | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other commercial loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Consumer 1-4 family loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 691 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Open end and junior lien loans | | | 170 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Residential construction loans | | | 141 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other consumer loans | | | 1 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | | 1,893 | | | 55 | | | 47 | | | | | | | | | | | | | | | | |
Non-working capital loans | | | 13,762 | | | 387 | | | 388 | | | | | | | | | | | | | | | | |
Commercial real estate and multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | 2,341 | | | 37 | | | 36 | | | | | | | | | | | | | | | | |
Owner occupied loans | | | 2,956 | | | 45 | | | 43 | | | | | | | | | | | | | | | | |
Nonowner occupied loans | | | 8,507 | | | 104 | | | 105 | | | | | | | | | | | | | | | | |
Multifamily loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 411 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Loans for agricultural production | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other commercial loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Consumer 1-4 family mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 2,740 | | | 50 | | | 53 | | | | | | | | | | | | | | | | |
Open end and junior lien loans | | | 66 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Residential construction loans | | | 0 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other consumer loans | | | 87 | | | 1 | | | 1 | | | | | | | | | | | | | | | | |
Total | | $ | 35,045 | | $ | 680 | | $ | 674 | | | | | | | | | | | | | | | | |
|
The recorded investment in loans does not include accrued interest. |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents loans individually evaluated for impairment by class of loans as of and for the nine-month period ended September 30, 2013: |
|
| | | | | | | | | Cash Basis | | | | | | | | | | | | | | | | |
| | | Average | | | Interest | | | Interest | | | | | | | | | | | | | | | | |
| | | Recorded | | | Income | | | Income | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | Investment | | | Recognized | | | Recognized | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | $ | 65 | | $ | 0 | | $ | 0 | | | | | | | | | | | | | | | | |
Non-working capital loans | | | 11 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Commercial real estate and multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | | | | | | | | | | | | | | | | | | | | | | | |
Owner occupied loans | | | 575 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 480 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Consumer 1-4 family loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 275 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Open end and junior lien loans | | | 23 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other consumer loans | | | 1 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | | 3,019 | | | 39 | | | 41 | | | | | | | | | | | | | | | | |
Non-working capital loans | | | 14,081 | | | 391 | | | 402 | | | | | | | | | | | | | | | | |
Commercial real estate and multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | 3,860 | | | 63 | | | 67 | | | | | | | | | | | | | | | | |
Owner occupied loans | | | 3,592 | | | 88 | | | 96 | | | | | | | | | | | | | | | | |
Nonowner occupied loans | | | 20,960 | | | 255 | | | 258 | | | | | | | | | | | | | | | | |
Multifamily loans | | | 64 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 418 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Consumer 1-4 family mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 2,461 | | | 28 | | | 43 | | | | | | | | | | | | | | | | |
Open end and junior lien loans | | | 40 | | | 0 | | | 0 | | | | | | | | | | | | | | | | |
Other consumer loans | | | 86 | | | 1 | | | 1 | | | | | | | | | | | | | | | | |
Total | | $ | 50,010 | | $ | 865 | | $ | 908 | | | | | | | | | | | | | | | | |
|
The recorded investment in loans does not include accrued interest. |
|
The following table presents the aging of the recorded investment in past due loans as of September 30, 2014 by class of loans: |
|
| | | | | | 30-89 | | | Greater than | | | | | | | | | | | | | | | | |
| | | Loans Not | | | Days | | | 90 Days | | | | | | Total | | | | | | | | | | |
(dollars in thousands) | | | Past Due | | | Past Due | | | Past Due | | | Nonaccrual | | | Past Due | | | Total | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | $ | 517,009 | | $ | 0 | | $ | 0 | | $ | 1,105 | | $ | 1,105 | | $ | 518,114 | | | | | | | |
Non-working capital loans | | | 508,354 | | | 102 | | | 0 | | | 5,112 | | | 5,214 | | | 513,568 | | | | | | | |
Commercial real estate and multi-family | | | | | | | | | | | | | | | | | | | | | | | | | |
residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | 152,197 | | | 0 | | | 0 | | | 529 | | | 529 | | | 152,726 | | | | | | | |
Owner occupied loans | | | 393,498 | | | 414 | | | 0 | | | 2,013 | | | 2,427 | | | 395,925 | | | | | | | |
Nonowner occupied loans | | | 397,246 | | | 0 | | | 0 | | | 3,732 | | | 3,732 | | | 400,978 | | | | | | | |
Multifamily loans | | | 84,732 | | | 0 | | | 0 | | | 0 | | | 0 | | | 84,732 | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 131,034 | | | 0 | | | 0 | | | 485 | | | 485 | | | 131,519 | | | | | | | |
Loans for agricultural production | | | 78,289 | | | 0 | | | 0 | | | 0 | | | 0 | | | 78,289 | | | | | | | |
Other commercial loans | | | 77,075 | | | 0 | | | 0 | | | 0 | | | 0 | | | 77,075 | | | | | | | |
Consumer 1-4 family mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 140,719 | | | 1,699 | | | 0 | | | 1,204 | | | 2,903 | | | 143,622 | | | | | | | |
Open end and junior lien loans | | | 151,229 | | | 139 | | | 0 | | | 399 | | | 538 | | | 151,767 | | | | | | | |
Residential construction loans | | | 5,579 | | | 0 | | | 0 | | | 133 | | | 133 | | | 5,712 | | | | | | | |
Other consumer loans | | | 47,758 | | | 83 | | | 0 | | | 55 | | | 138 | | | 47,896 | | | | | | | |
Total | | $ | 2,684,719 | | $ | 2,437 | | $ | 0 | | $ | 14,767 | | $ | 17,204 | | $ | 2,701,923 | | | | | | | |
|
The recorded investment in loans does not include accrued interest. |
|
The following table presents the aging of the recorded investment in past due loans as of December 31, 2013 by class of loans: |
|
| | | | | | 30-89 | | | Greater than | | | | | | | | | | | | | | | | |
| | | Loans Not | | | Days | | | 90 Days | | | | | | Total | | | | | | | | | | |
(dollars in thousands) | | | Past Due | | | Past Due | | | Past Due | | | Nonaccrual | | | Past Due | | | Total | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | $ | 456,136 | | $ | 0 | | $ | 0 | | $ | 1,819 | | $ | 1,819 | | $ | 457,955 | | | | | | | |
Non-working capital loans | | | 440,050 | | | 46 | | | 0 | | | 3,796 | | | 3,842 | | | 443,892 | | | | | | | |
Commercial real estate and multi-family | | | | | | | | | | | | | | | | | | | | | | | | | |
residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | 156,594 | | | 0 | | | 0 | | | 544 | | | 544 | | | 157,138 | | | | | | | |
Owner occupied loans | | | 366,955 | | | 0 | | | 0 | | | 3,156 | | | 3,156 | | | 370,111 | | | | | | | |
Nonowner occupied loans | | | 382,478 | | | 0 | | | 0 | | | 11,758 | | | 11,758 | | | 394,236 | | | | | | | |
Multifamily loans | | | 63,392 | | | 0 | | | 0 | | | 0 | | | 0 | | | 63,392 | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 132,347 | | | 0 | | | 0 | | | 1,113 | | | 1,113 | | | 133,460 | | | | | | | |
Loans for agricultural production | | | 120,665 | | | 0 | | | 0 | | | 0 | | | 0 | | | 120,665 | | | | | | | |
Other commercial loans | | | 70,766 | | | 0 | | | 0 | | | 0 | | | 0 | | | 70,766 | | | | | | | |
Consumer 1-4 family mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 122,370 | | | 1,645 | | | 0 | | | 1,165 | | | 2,810 | | | 125,180 | | | | | | | |
Open end and junior lien loans | | | 147,123 | | | 135 | | | 46 | | | 291 | | | 472 | | | 147,595 | | | | | | | |
Residential construction loans | | | 4,481 | | | 0 | | | 0 | | | 150 | | | 150 | | | 4,631 | | | | | | | |
Other consumer loans | | | 45,826 | | | 145 | | | 0 | | | 106 | | | 251 | | | 46,077 | | | | | | | |
Total | | $ | 2,509,183 | | $ | 1,971 | | $ | 46 | | $ | 23,898 | | $ | 25,915 | | $ | 2,535,098 | | | | | | | |
|
The recorded investment in loans does not include accrued interest. |
|
Troubled Debt Restructurings: |
|
Troubled debt restructured loans are included in the totals for impaired loans. The Company has allocated $4.5 million and $8.3 million of specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2014 and December 31, 2013. The Company is not committed to lend additional funds to debtors whose loans have been modified in a troubled debt restructuring. |
|
| | | September 30, | | | December 31, | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | 2014 | | | 2013 | | | | | | | | | | | | | | | | | | | |
Accruing troubled debt restructured loans | | $ | 17,650 | | $ | 17,714 | | | | | | | | | | | | | | | | | | | |
Nonaccrual troubled debt restructured loans | | | 9,841 | | | 18,531 | | | | | | | | | | | | | | | | | | | |
Total troubled debt restructured loans | | $ | 27,491 | | $ | 36,245 | | | | | | | | | | | | | | | | | | | |
|
During the nine months ending September 30, 2014 certain loans were modified as troubled debt restructurings. The modified terms of these loans include one or a combination of the following: inadequate compensation for the terms of the restructure or renewal; a modification of the repayment terms which delays principal repayment for some period; or renewal terms offered to borrowers in financial distress where no additional credit enhancements were obtained at the time of renewal. |
|
During the quarter ending June 30, 2014 one loan previously identified as a troubled debt restructure was rewritten under terms that are not readily available in the marketplace. Terms in the current loan agreement include an amortization period that exceeds those of similar type loans for a borrower enduring financial hardship. This concession was granted without additional compensation. This loan had a balance of $173,000 as of June 30, 2014. |
|
During the quarter ending March 31, 2014, there were restructure terms offered to one borrower under financial duress which did not require additional compensation or consideration, and the terms offered would not have been readily available in the marketplace for loans bearing similar risk profiles. In this instance, it was determined that a concession had been granted. It is difficult to quantify the concession granted due to an absence of readily available market terms to be used for comparison. The restructure was granted to a borrower engaged in retail sales where the collateral and cash flow did not support the loan with a recorded investment of $159,000. |
|
An additional concession was granted to a borrower with a previously restructured loan. The new concession includes further forgiveness of principal if the terms of the restructured loan are met during the life of the loan. This borrower had a recorded investment of $2.7 million as of March 31, 2014. |
| | | | | | | | | | | | | | | | | | | | | | | | | |
|
The following table presents loans by class modified as troubled debt restructurings that occurred during the three-months ending September 30, 2014: |
|
| | All Modifications | | Modified Repayment Terms | | | | | | | | | | | | | |
| | | | | Pre-Modification | | | Post-Modification | | | | Extension | | | | | | | | | | | | | |
| | | | | Outstanding | | | Outstanding | | | | Period or | | | | | | | | | | | | | |
| | Number of | | | Recorded | | | Recorded | | Number of | | Range | | | | | | | | | | | | | |
(dollars in thousands) | | Loans | | | Investment | | | Investment | | Loans | | (in months) | | | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate and | | | | | | | | | | | | | | | | | | | | | | | | | |
Multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Owner occupied loans | | 1 | | $ | 929 | | $ | 1,000 | | 1 | | 24 | | | | | | | | | | | | | |
Total | | 1 | | $ | 929 | | $ | 1,000 | | 1 | | 24 | | | | | | | | | | | | | |
|
The following table presents loans by class modified as troubled debt restructurings that occurred during the nine-months ending September 30, 2014: |
|
| | All Modifications | | Interest Rate Reductions | | Modified Repayment Terms | | | | | |
| | | | | Pre-Modification | | | Post-Modification | | | | | | | | | | | | Extension | | | | | |
| | | | | Outstanding | | | Outstanding | | | | | Interest at | | | Interest at | | | | Period or | | | | | |
| | Number of | | | Recorded | | | Recorded | | Number of | | | Pre-Modification | | | Post-Modification | | Number of | | Range | | | | | |
(dollars in thousands) | | Loans | | | Investment | | | Investment | | Loans | | | Rate | | | Rate | | Loans | | (in months) | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Non-working capital loans | | 2 | | $ | 433 | | $ | 433 | | 0 | | $ | 0 | | $ | 0 | | 2 | | 15-Dec | | | | | |
Commercial real estate and multi- | | | | | | | | | | | | | | | | | | | | | | | | | |
family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Owner occupied loans | | 3 | | | 2,639 | | | 2,710 | | 1 | | | 89 | | | 95 | | 2 | | 24-Dec | | | | | |
Total | | 5 | | $ | 3,072 | | $ | 3,143 | | 1 | | $ | 89 | | $ | 95 | | 4 | | 24-Dec | | | | | |
|
For the quarter ending September 30, 2014, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $74,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above increased the allowance for loan losses by $53,000. For the nine month period ending September 30, 2014, the commercial and industrial troubled debt restructurings described above increased the allowance for loan losses by $211,000 and the commercial real estate and multi-family residential loan troubled debt restructuring described above increased the allowance for loan losses by $152,000. |
|
No charge-offs resulted from any of the troubled debt restructurings described above during the three-month and nine-month periods ending September 30, 2014. |
|
During the quarter ending June 30, 2013, loans totaling $328,000 were modified as troubled debt restructured loans. Concessions granted during the modifications included reduction in the interest rates to rates that would not be readily available in the marketplace for borrowers with a similar risk profile and/or capitalizing past due interest and other expenses into the principal balance of the loan. The troubled debt restructured loans during the quarter were all granted to consumer mortgage borrowers. |
|
During the quarter ending March 31, 2013, loans totaling $1.8 million were modified as troubled debt restructured loans. The modified terms of the loans included reductions in the interest rates to rates that would not be readily available in the marketplace for borrowers with a similar risk profile and modifications of the repayment terms. These restructured loans were provided to related borrowers who are engaged in land development. |
|
No loans were modified as troubled debt restructurings during the third quarter of 2013. |
|
The following table presents loans by class modified as troubled debt restructurings that occurred during the nine months ending September 30, 2013: |
|
| | All Modifications | | Interest Rate Reductions | | | | | | | | | |
| | | | | Pre-Modification | | | Post-Modification | | | | | | | | | | | | | | | | | |
| | | | | Outstanding | | | Outstanding | | | | | Interest at | | | Interest at | | | | | | | | | |
| | Number of | | | Recorded | | | Recorded | | Number of | | | Pre-Modification | | | Post-Modification | | | | | | | | | |
(dollars in thousands) | | Loans | | | Investment | | | Investment | | Loans | | | Rate | | | Rate | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate and: | | | | | | | | | | | | | | | | | | | | | | | | | |
multi-family residential loans | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | 6 | | $ | 2,198 | | $ | 2,198 | | 6 | | $ | 85 | | $ | 63 | | | | | | | | | |
Consumer 1-4 family loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | 4 | | | 317 | | | 328 | | 2 | | | 142 | | | 158 | | | | | | | | | |
Total | | 10 | | $ | 2,515 | | $ | 2,526 | | 8 | | $ | 227 | | $ | 221 | | | | | | | | | |
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| | Principal and Interest Forgiveness | | | | | | | | | | | |
| | | | | | | | | | | Interest at | | | Interest at | | | | | | | | | | | |
| | Number of | | | Principal at | | | Principal at | | | Pre-Modification | | | Post-Modification | | | | | | | | | | | |
(dollars in thousands) | | Loans | | | Pre-Modification | | | Post-Modification | | | Rate | | | Rate | | | | | | | | | | | |
Troubled Debt Restructurings | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate and | | | | | | | | | | | | | | | | | | | | | | | | | |
multi-family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | 0 | | $ | 0 | | $ | 0 | | $ | 0 | | $ | 0 | | | | | | | | | | | |
Consumer 1-4 family loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | 2 | | | 156 | | | 161 | | | 164 | | | 149 | | | | | | | | | | | |
Total | | 2 | | $ | 156 | | $ | 161 | | $ | 164 | | $ | 149 | | | | | | | | | | | |
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For the quarter ending September 30, 2013 the commercial real estate and multi-family residential loan troubled debt restructuring described above decreased the allowance for loan losses by $11,000 and the consumer 1-4 family loan troubled debt restructurings described above decreased the allowance for loan losses by $4,000 |
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For the nine month period ending September 30, 2013 the commercial real estate and multi-family residential loan troubled debt restructurings described above decreased the allowance for loan losses by $384,000 and the consumer 1-4 family loan troubled debt restructurings described above increased the allowance for loan losses by $61,000. |
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The troubled debt restructurings described above had charge-offs of $0 and $365,000, respectively, during the three-month and nine-month periods ending September 30, 2013. |
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There were no troubled debt restructurings which had payment defaults within the twelve months following modification during the three or nine months ended September 30, 2014. The following table presents loans by class modified as troubled debt restructurings for which there was a payment default within twelve months following the modification which occurred during the three month and nine month periods ending September 30, 2013: |
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| | Modifications | | | | | | | | | | | | | | | |
| | Three Months Ended September 30, 2013 | | Nine Months Ended September 30, 2013 | | | | | | | | | | | | | | | |
| | Number of | | | Recorded | | Number of | | | Recorded | | | | | | | | | | | | | | | |
| | Loans | | | Investment | | Loans | | | Investment | | | | | | | | | | | | | | | |
Troubled Debt Restructurings that Subsequently Defaulted | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer 1-4 family loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | 0 | | $ | 0 | | 1 | | $ | 912 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | 0 | | $ | 0 | | 1 | | $ | 912 | | | | | | | | | | | | | | | |
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A loan is considered to be in payment default once it is 30 days contractually past due under the modified terms. |
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The troubled debt restructurings described above that subsequently defaulted made a large principal payment during the second quarter of 2013, which decreased the allowance for loan losses by $80,000 and did not result in any charge offs during the three and nine month periods ending September 30, 2013. |
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During the first quarter of 2014 the Company sold, to an independent party, three loans totaling $6.7 million, representing a single commercial relationship. The three loans were accounted for as troubled debt restructurings. The Company received proceeds of $4.3 million and recognized charge offs of $2.4 million as a result of the sale. The amount charged-off had previously been reserved for by the Company. |
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Credit Quality Indicators: |
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The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes commercial loans individually by classifying the loans as to credit risk. This analysis is performed on a quarterly basis for Special Mention, Substandard and Doubtful grade loans and annually on Pass grade loans over $250,000. |
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The Company uses the following definitions for risk ratings: |
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Special Mention. Loans classified as Special Mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. |
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Substandard. Loans classified as Substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected. |
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Doubtful. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard, with the |
added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. |
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Loans not meeting the criteria above that are analyzed individually as part of the above-described process are considered to be Pass rated loans with the exception of consumer troubled debt restructurings which are evaluated and listed with Substandard commercial grade loans and consumer nonaccrual loans which are evaluated individually and listed with Not Rated loans. Loans listed as Not Rated are consumer loans included in groups of homogenous loans which are analyzed for credit quality indicators utilizing delinquency status. As of September 30, 2014, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: |
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| | | | | | Special | | | | | | | | | Not | | | | | | | | | | |
(dollars in thousands) | | | Pass | | | Mention | | | Substandard | | | Doubtful | | | Rated | | | Total | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | $ | 477,113 | | $ | 28,236 | | $ | 12,765 | | $ | 0 | | $ | 0 | | $ | 518,114 | | | | | | | |
Non-working capital loans | | | 458,676 | | | 31,335 | | | 21,199 | | | 0 | | | 2,358 | | | 513,568 | | | | | | | |
Commercial real estate and multi- | | | | | | | | | | | | | | | | | | | | | | | | | |
family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development loans | | | 145,217 | | | 558 | | | 6,951 | | | 0 | | | 0 | | | 152,726 | | | | | | | |
Owner occupied loans | | | 361,482 | | | 21,638 | | | 12,805 | | | 0 | | | 0 | | | 395,925 | | | | | | | |
Nonowner occupied loans | | | 382,386 | | | 12,616 | | | 5,976 | | | 0 | | | 0 | | | 400,978 | | | | | | | |
Multifamily loans | | | 84,732 | | | 0 | | | 0 | | | 0 | | | 0 | | | 84,732 | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 131,034 | | | 0 | | | 485 | | | 0 | | | 0 | | | 131,519 | | | | | | | |
Loans for agricultural production | | | 78,289 | | | 0 | | | 0 | | | 0 | | | 0 | | | 78,289 | | | | | | | |
Other commercial loans | | | 77,042 | | | 0 | | | 30 | | | 0 | | | 3 | | | 77,075 | | | | | | | |
Consumer 1-4 family mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 39,956 | | | 0 | | | 2,213 | | | 0 | | | 101,453 | | | 143,622 | | | | | | | |
Open end and junior lien loans | | | 9,336 | | | 225 | | | 2,014 | | | 0 | | | 140,192 | | | 151,767 | | | | | | | |
Residential construction loans | | | 0 | | | 0 | | | 0 | | | 0 | | | 5,712 | | | 5,712 | | | | | | | |
Other consumer loans | | | 13,399 | | | 540 | | | 77 | | | 0 | | | 33,880 | | | 47,896 | | | | | | | |
Total | | $ | 2,258,662 | | $ | 95,148 | | $ | 64,515 | | $ | 0 | | $ | 283,598 | | $ | 2,701,923 | | | | | | | |
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The recorded investment in loans does not include accrued interest. |
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As of December 31, 2013, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: |
|
| | | | | | Special | | | | | | | | | Not | | | | | | | | | | |
(dollars in thousands) | | | Pass | | | Mention | | | Substandard | | | Doubtful | | | Rated | | | Total | | | | | | | |
Commercial and industrial loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Working capital lines of credit loans | | $ | 431,069 | | $ | 15,212 | | $ | 11,674 | | $ | 0 | | $ | 0 | | $ | 457,955 | | | | | | | |
Non-working capital loans | | | 384,415 | | | 37,727 | | | 19,659 | | | 0 | | | 2,091 | | | 443,892 | | | | | | | |
Commercial real estate and multi- | | | | | | | | | | | | | | | | | | | | | | | | | |
family residential loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land | | | | | | | | | | | | | | | | | | | | | | | | | |
development loans | | | 148,338 | | | 763 | | | 8,037 | | | 0 | | | 0 | | | 157,138 | | | | | | | |
Owner occupied loans | | | 333,795 | | | 23,687 | | | 12,629 | | | 0 | | | 0 | | | 370,111 | | | | | | | |
Nonowner occupied loans | | | 367,108 | | | 9,180 | | | 17,948 | | | 0 | | | 0 | | | 394,236 | | | | | | | |
Multifamily loans | | | 63,392 | | | 0 | | | 0 | | | 0 | | | 0 | | | 63,392 | | | | | | | |
Agri-business and agricultural loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans secured by farmland | | | 132,331 | | | 0 | | | 1,113 | | | 0 | | | 16 | | | 133,460 | | | | | | | |
Loans for agricultural production | | | 120,665 | | | 0 | | | 0 | | | 0 | | | 0 | | | 120,665 | | | | | | | |
Other commercial loans | | | 70,766 | | | 0 | | | 0 | | | 0 | | | 0 | | | 70,766 | | | | | | | |
Consumer 1-4 family mortgage loans: | | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end first mortgage loans | | | 29,092 | | | 0 | | | 2,316 | | | 0 | | | 93,772 | | | 125,180 | | | | | | | |
Open end and junior lien loans | | | 8,291 | | | 1,863 | | | 0 | | | 0 | | | 137,441 | | | 147,595 | | | | | | | |
Residential construction loans | | | 0 | | | 0 | | | 0 | | | 0 | | | 4,631 | | | 4,631 | | | | | | | |
Other consumer loans | | | 10,722 | | | 416 | | | 291 | | | 0 | | | 34,648 | | | 46,077 | | | | | | | |
Total | | $ | 2,099,984 | | $ | 88,848 | | $ | 73,667 | | $ | 0 | | $ | 272,599 | | $ | 2,535,098 | | | | | | | |
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The recorded investment in loans does not include accrued interest. |
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