Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2013 |
Loans and Allowance For Loan Losses [Abstract] | ' |
Loans and Allowance for Loan Losses | ' |
Note 5 – Loans and Allowance for Loan Losses |
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Major classifications of loans as of September 30, 2013, December 31, 2012 and September 30, 2012, are summarized as follows (in thousands). |
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| | September 30, | | | December 31, | | | September 30, | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2013 | | | 2012 | | | 2012 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | $ | 1,742,771 | | | $ | 1,813,365 | | | $ | 1,819,155 | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial & industrial | | | 457,414 | | | | 458,246 | | | | 459,997 | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial construction | | | 137,146 | | | | 154,769 | | | | 160,765 | | | | | | | | | | | | | | | | | | | | | | | | | |
Total commercial | | | 2,337,331 | | | | 2,426,380 | | | | 2,439,917 | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 1,309,295 | | | | 1,214,203 | | | | 1,174,236 | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential construction | | | 317,789 | | | | 381,677 | | | | 388,742 | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer installment | | | 302,652 | | | | 152,748 | | | | 134,950 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Total loans | | | 4,267,067 | | | | 4,175,008 | | | | 4,137,845 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Less allowance for loan losses | | | (80,372 | ) | | | (107,137 | ) | | | (107,642 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
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Loans, net | | $ | 4,186,695 | | | $ | 4,067,871 | | | $ | 4,030,203 | | | | | | | | | | | | | | | | | | | | | | | | | |
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United’s wholly-owned Georgia banking subsidiary, United Community Bank (the “Bank”) makes loans and extends credit to individuals and a variety of firms and corporations located primarily in counties in north Georgia, the Atlanta, Georgia metropolitan statistical area, the Gainesville, Georgia metropolitan statistical area, coastal Georgia, western North Carolina, east and central Tennessee and the Greenville, South Carolina metropolitan statistical area. Although the Bank has a diversified loan portfolio, a substantial portion of its loan portfolio is collateralized by improved and unimproved real estate and is dependent upon the real estate market. Home equity lines of credit are included in the residential mortgage category and are primarily responsible for the growth in that loan class compared to prior periods. Indirect auto loans are included in the consumer installment category above and contributed to the significant growth in that class of loans. |
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Changes in the allowance for loan losses for the three and nine months ended September 30, 2013 and 2012 are summarized as follows (in thousands). |
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| | Three Months Ended | | | Nine Months Ended | | | | | | | | | | | | | | | | | | | | | |
| | September 30, | | | September 30, | | | | | | | | | | | | | | | | | | | | | |
| | 2013 | | | 2012 | | | 2013 | | | 2012 | | | | | | | | | | | | | | | | | | | | | |
Balance beginning of period | | $ | 81,845 | | | $ | 112,705 | | | $ | 107,137 | | | $ | 114,468 | | | | | | | | | | | | | | | | | | | | | |
Provision for loan losses | | | 3,000 | | | | 15,500 | | | | 62,500 | | | | 48,500 | | | | | | | | | | | | | | | | | | | | | |
Charge-offs: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | | 1,928 | | | | 8,445 | | | | 34,122 | | | | 16,791 | | | | | | | | | | | | | | | | | | | | | |
Commercial & industrial | | | 826 | | | | 343 | | | | 18,581 | | | | 1,987 | | | | | | | | | | | | | | | | | | | | | |
Commercial construction | | | 134 | | | | 3,198 | | | | 6,484 | | | | 3,650 | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 1,306 | | | | 3,575 | | | | 10,380 | | | | 13,356 | | | | | | | | | | | | | | | | | | | | | |
Residential construction | | | 1,096 | | | | 6,231 | | | | 22,608 | | | | 21,706 | | | | | | | | | | | | | | | | | | | | | |
Consumer installment | | | 419 | | | | 442 | | | | 1,691 | | | | 1,603 | | | | | | | | | | | | | | | | | | | | | |
Total loans charged-off | | | 5,709 | | | | 22,234 | | | | 93,866 | | | | 59,093 | | | | | | | | | | | | | | | | | | | | | |
Recoveries: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | | 71 | | | | 271 | | | | 1,556 | | | | 571 | | | | | | | | | | | | | | | | | | | | | |
Commercial & industrial | | | 690 | | | | 602 | | | | 1,368 | | | | 802 | | | | | | | | | | | | | | | | | | | | | |
Commercial construction | | | 1 | | | | 8 | | | | 60 | | | | 38 | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 231 | | | | 48 | | | | 649 | | | | 592 | | | | | | | | | | | | | | | | | | | | | |
Residential construction | | | 24 | | | | 555 | | | | 57 | | | | 1,153 | | | | | | | | | | | | | | | | | | | | | |
Consumer installment | | | 219 | | | | 187 | | | | 911 | | | | 611 | | | | | | | | | | | | | | | | | | | | | |
Total recoveries | | | 1,236 | | | | 1,671 | | | | 4,601 | | | | 3,767 | | | | | | | | | | | | | | | | | | | | | |
Net charge-offs | | | 4,473 | | | | 20,563 | | | | 89,265 | | | | 55,326 | | | | | | | | | | | | | | | | | | | | | |
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Balance end of period | | $ | 80,372 | | | $ | 107,642 | | | $ | 80,372 | | | $ | 107,642 | | | | | | | | | | | | | | | | | | | | | |
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During the second quarter of 2013, United executed a plan to accelerate the disposition of classified assets including performing classified loans, nonperforming loans and foreclosed properties. The purpose of the accelerated classified asset disposition plan was to resolve legacy credit problems remaining from the recent financial crisis and to accelerate the improvement of United’s credit measures toward pre-crisis levels. The classified asset sales included individual note and foreclosed property sales and a large bulk sale of classified assets to a single investor. The bulk sale included performing and nonperforming classified loans and foreclosed properties. The assets were divided into four separate pools that were bid for separately by potential buyers. A single purchaser was the high bidder for each of the four pools. The table below shows the allocation among impaired loans, loans that were not considered impaired and foreclosed properties, including United’s recorded investment in those assets, the sales proceeds and the resulting net charge-offs of assets sold in the bulk sale transaction (in thousands). |
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| | Recorded Investment | | | Net Sales | | | Net | | | | | | | | | | | | | | | | | | | | | | | | | |
Proceeds | Charge-Off | | | | | | | | | | | | | | | | | | | | | | | | |
Loans considered impaired | | $ | 96,829 | | | $ | 56,298 | | | $ | (40,531 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Loans not considered impaired | | | 25,687 | | | | 15,227 | | | | (10,460 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Foreclosed properties | | | 8,398 | | | | 5,933 | | | | (2,465 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
Total assets sold | | $ | 130,914 | | | $ | 77,458 | | | $ | (53,456 | ) | | | | | | | | | | | | | | | | | | | | | | | | |
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The loans considered impaired in the table above were assigned specific reserves of $6.86 million in the most recent analysis of the allowance for loan losses prior to the sale. Because the assets were sold at liquidation prices in a bulk transaction with no recourse, the sales price was generally lower than the appraised value of the foreclosed properties and loan collateral. Although the classified asset sales increased charge-offs during the second quarter of 2013, they accomplished management’s goal of moving classified asset levels toward the pre-crisis range. |
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United considers all loans that are on nonaccrual with a balance of $500,000 or greater and all troubled debt restructurings (“TDRs”) to be impaired. In addition, United reviews all accruing substandard loans greater than $2 million to determine if the loan is impaired. A loan is considered impaired when, based on current events and circumstances, it is probable that all amounts due, according to the contractual terms of the loan, will not be collected. All TDRs are considered impaired regardless of accrual status. Impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. A specific reserve is established for impaired loans for the amount of calculated impairment. Interest payments received on impaired nonaccrual loans are applied as a reduction of the outstanding principal balance. For impaired loans not on nonaccrual status, interest is accrued according to the terms of the loan agreement. Loans are evaluated for impairment quarterly and specific reserves are established in the allowance for loan losses for any measured impairment. |
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Each quarter, United’s management prepares an analysis of the allowance for loan losses to determine the appropriate balance that measures and quantifies the amount of loss inherent in the loan portfolio. The allowance is comprised of specific reserves which are determined as described above, general reserves which are determined based on historical loss experience as adjusted for current trends and economic conditions and an unallocated portion. United uses eight quarters of historical loss experience weighted toward the most recent quarters to determine the loss factors to be used. Eight quarters has been determined to be an appropriate time period as it is recent enough to be relevant to current conditions and covers a length of time sufficient to minimize distortions caused by nonrecurring and unusual activity that might otherwise influence a shorter time period. The weighted average is calculated by multiplying each quarter’s annualized historical net charge-off rate by 1 through 8, with 8 representing the most recent quarter and 1 representing the oldest quarter. United uses annualized charge-off rates under the broad assumption that losses inherent in the loan portfolio will generally be resolved within twelve months. Problem loans that are not resolved within twelve months are often larger loans that are more complex in nature requiring more time to either rehabilitate or work out of the bank. These credits are subject to impairment testing and specific reserves. |
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The weighted loss factor results for each quarter are added together and divided by 36 (the sum of 1, 2, 3, 4, 5, 6, 7 and 8) to arrive at the weighted average historical loss factor for each category of loans. United calculates loss factors for each major category of loans (commercial real estate, commercial & industrial, commercial construction, residential construction and consumer installment) except residential mortgage real estate loans which are further divided into home equity first lien, home equity junior lien and all other residential mortgage real estate loans and a loss factor is calculated for each category. |
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Management carefully reviews the resulting loss factors for each category of the loan portfolio and evaluates whether qualitative adjustments are necessary to take into consideration recent credit trends such as increases or decreases in past due, nonaccrual, criticized and classified loans, acceleration or delays in timing of recognition of losses that may render the use of annualized charge-off rates to be inappropriate, and other macro environmental factors such as changes in unemployment rates, lease vacancy rates and trends in property values and absorption rates. |
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To validate the results, management closely monitors the loan portfolio to determine the range of potential losses based upon probability of default and losses upon default for each major loan category. The potential range of losses resulting from this analysis is compared to the resulting loss factors for each major loan category to validate the loss factors and determine if qualitative adjustments are necessary. United’s management believes that its method of determining the balance of the allowance for loan losses provides a reasonable and reliable basis for measuring and reporting losses that are inherent in the loan portfolio as of the reporting date. |
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The following table presents the balance and activity in the allowance for loan losses by portfolio segment and the recorded investment in loans by portfolio segment based on the impairment method as of September 30, 2013, December 31, 2012 and September 30, 2012 (in thousands). |
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Nine Months Ended September 30, 2013 | | Commercial (Secured by Real Estate) | | Commercial & Industrial | | | Commercial Construction | | | Residential Mortgage | | | Residential Construction | | | Consumer Installment | | | Unallocated | | | Total | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 27,847 | | | $ | 5,537 | | | $ | 8,389 | | | $ | 26,642 | | | $ | 26,662 | | | $ | 2,747 | | | $ | 9,313 | | | $ | 107,137 | | | | | |
Charge-offs | | | (34,122 | ) | | | (18,581 | ) | | | (6,484 | ) | | | (10,380 | ) | | | (22,608 | ) | | | (1,691 | ) | | | - | | | | (93,866 | ) | | | | |
Recoveries | | | 1,556 | | | | 1,368 | | | | 60 | | | | 649 | | | | 57 | | | | 911 | | | | - | | | | 4,601 | | | | | |
Provision | | | 28,854 | | | | 19,608 | | | | 1,853 | | | | 3,791 | | | | 10,231 | | | | 450 | | | | (2,287 | ) | | | 62,500 | | | | | |
Ending balance | | $ | 24,135 | | | $ | 7,932 | | | $ | 3,818 | | | $ | 20,702 | | | $ | 14,342 | | | $ | 2,417 | | | $ | 7,026 | | | $ | 80,372 | | | | | |
Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 1,975 | | | $ | 546 | | | $ | 150 | | | $ | 2,008 | | | $ | 662 | | | $ | 11 | | | $ | - | | | $ | 5,352 | | | | | |
Collectively evaluated for impairment | | | 22,160 | | | | 7,386 | | | | 3,668 | | | | 18,694 | | | | 13,680 | | | | 2,406 | | | | 7,026 | | | | 75,020 | | | | | |
Total ending allowance balance | | $ | 24,135 | | | $ | 7,932 | | | $ | 3,818 | | | $ | 20,702 | | | $ | 14,342 | | | $ | 2,417 | | | $ | 7,026 | | | $ | 80,372 | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 54,463 | | | $ | 4,105 | | | $ | 13,478 | | | $ | 18,970 | | | $ | 14,121 | | | $ | 204 | | | $ | - | | | $ | 105,341 | | | | | |
Collectively evaluated for impairment | | | 1,688,308 | | | | 453,309 | | | | 123,668 | | | | 1,290,325 | | | | 303,668 | | | | 302,448 | | | | - | | | | 4,161,726 | | | | | |
Total loans | | $ | 1,742,771 | | | $ | 457,414 | | | $ | 137,146 | | | $ | 1,309,295 | | | $ | 317,789 | | | $ | 302,652 | | | $ | - | | | $ | 4,267,067 | | | | | |
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31-Dec-12 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 6,106 | | | $ | 490 | | | $ | 2,239 | | | $ | 2,165 | | | $ | 625 | | | $ | 19 | | | $ | - | | | $ | 11,644 | | | | | |
Collectively evaluated for impairment | | | 21,741 | | | | 5,047 | | | | 6,150 | | | | 24,477 | | | | 26,037 | | | | 2,728 | | | | 9,313 | | | | 95,493 | | | | | |
Total ending allowance balance | | $ | 27,847 | | | $ | 5,537 | | | $ | 8,389 | | | $ | 26,642 | | | $ | 26,662 | | | $ | 2,747 | | | $ | 9,313 | | | $ | 107,137 | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 104,409 | | | $ | 51,501 | | | $ | 40,168 | | | $ | 22,247 | | | $ | 34,055 | | | $ | 430 | | | $ | - | | | $ | 252,810 | | | | | |
Collectively evaluated for impairment | | | 1,708,956 | | | | 406,745 | | | | 114,601 | | | | 1,191,956 | | | | 347,622 | | | | 152,318 | | | | - | | | | 3,922,198 | | | | | |
Total loans | | $ | 1,813,365 | | | $ | 458,246 | | | $ | 154,769 | | | $ | 1,214,203 | | | $ | 381,677 | | | $ | 152,748 | | | $ | - | | | $ | 4,175,008 | | | | | |
Nine Months Ended September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 31,644 | | | $ | 5,681 | | | $ | 6,097 | | | $ | 29,076 | | | $ | 30,379 | | | $ | 2,124 | | | $ | 9,467 | | | $ | 114,468 | | | | | |
Charge-offs | | | (16,791 | ) | | | (1,987 | ) | | | (3,650 | ) | | | (13,356 | ) | | | (21,706 | ) | | | (1,603 | ) | | | - | | | | (59,093 | ) | | | | |
Recoveries | | | 571 | | | | 802 | | | | 38 | | | | 592 | | | | 1,153 | | | | 611 | | | | - | | | | 3,767 | | | | | |
Provision | | | 11,351 | | | | 362 | | | | 6,101 | | | | 11,163 | | | | 18,233 | | | | 1,738 | | | | (448 | ) | | | 48,500 | | | | | |
Ending balance | | $ | 26,775 | | | $ | 4,858 | | | $ | 8,586 | | | $ | 27,475 | | | $ | 28,059 | | | $ | 2,870 | | | $ | 9,019 | | | $ | 107,642 | | | | | |
Ending allowance attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 6,692 | | | $ | 725 | | | $ | 2,289 | | | $ | 1,856 | | | $ | 1,270 | | | $ | 21 | | | $ | - | | | $ | 12,853 | | | | | |
Collectively evaluated for impairment | | | 20,083 | | | | 4,133 | | | | 6,297 | | | | 25,619 | | | | 26,789 | | | | 2,849 | | | | 9,019 | | | | 94,789 | | | | | |
Total ending allowance balance | | $ | 26,775 | | | $ | 4,858 | | | $ | 8,586 | | | $ | 27,475 | | | $ | 28,059 | | | $ | 2,870 | | | $ | 9,019 | | | $ | 107,642 | | | | | |
Loans: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | 119,023 | | | $ | 53,531 | | | $ | 42,249 | | | $ | 21,678 | | | $ | 31,576 | | | $ | 498 | | | $ | - | | | $ | 268,555 | | | | | |
Collectively evaluated for impairment | | | 1,700,132 | | | | 406,466 | | | | 118,516 | | | | 1,152,558 | | | | 357,166 | | | | 134,452 | | | | - | | | | 3,869,290 | | | | | |
Total loans | | $ | 1,819,155 | | | $ | 459,997 | | | $ | 160,765 | | | $ | 1,174,236 | | | $ | 388,742 | | | $ | 134,950 | | | $ | - | | | $ | 4,137,845 | | | | | |
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When a loan officer determines that a loan is uncollectible, he or she is responsible for recommending to the local bank president that the loan be charged off. Full or partial charge-offs may also be recommended by the Collections Department, the Special Assets Department and the Foreclosure / OREO department. Nonaccrual real estate loans that are collateral dependent are generally charged down to 80% of the appraised value of the underlying collateral at the time they are placed on nonaccrual status. |
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A committee consisting of the Chief Risk Officer, Senior Risk Officer and the Senior Credit Officers meets monthly to review charge-offs that have occurred during the previous month. The 10 largest charge-offs are reported quarterly to the Board of Directors. |
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Generally, closed-end retail loans (installment and residential mortgage loans) past due 90 cumulative days are charged-off unless the loan is well secured and in process of collection (within the next 90 days). Open-end (revolving) retail loans which are past due 90 cumulative days from their contractual due date are generally charged-off. |
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At September 30, 2013, December 31, 2012 and September 30, 2012, loans with a carrying value of $1.94 billion, $1.90 billion and $1.78 billion, respectively, were pledged as collateral to secure FHLB advances and other contingent funding sources. |
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The average balances of impaired loans and income recognized on impaired loans while they were considered impaired is presented below for the three and nine months ended September 30, 2013 and 2012 (in thousands). |
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| | 2013 | | | 2012 | | | | | | | | | | | | | |
Three Months Ended September 30, | | Average | | | Interest | | | Cash Basis | | | Average | | | Interest | | | Cash Basis | | | | | | | | | | | | | |
Balance | Revenue | Interest | Balance | Revenue | Interest | | | | | | | | | | | | |
| Recognized | Revenue | | Recognized | Revenue | | | | | | | | | | | | |
| During | Received | | During | Received | | | | | | | | | | | | |
| Impairment | | | Impairment | | | | | | | | | | | | | |
Commercial (secured by real estate) | | $ | 55,303 | | | $ | 1,336 | | | $ | 1,461 | | | $ | 124,681 | | | $ | 1,218 | | | $ | 1,311 | | | | | | | | | | | | | |
Commercial & industrial | | | 4,189 | | | | 114 | | | | 104 | | | | 43,764 | | | | 141 | | | | 611 | | | | | | | | | | | | | |
Commercial construction | | | 13,501 | | | | 244 | | | | 246 | | | | 43,488 | | | | 238 | | | | 255 | | | | | | | | | | | | | |
Total commercial | | | 72,993 | | | | 1,694 | | | | 1,811 | | | | 211,933 | | | | 1,597 | | | | 2,177 | | | | | | | | | | | | | |
Residential mortgage | | | 19,070 | | | | 436 | | | | 446 | | | | 22,920 | | | | 254 | | | | 274 | | | | | | | | | | | | | |
Residential construction | | | 14,136 | | | | 346 | | | | 307 | | | | 40,653 | | | | 252 | | | | 473 | | | | | | | | | | | | | |
Consumer installment | | | 214 | | | | 7 | | | | 7 | | | | 454 | | | | 7 | | | | 8 | | | | | | | | | | | | | |
Total | | $ | 106,413 | | | $ | 2,483 | | | $ | 2,571 | | | $ | 275,960 | | | $ | 2,110 | | | $ | 2,932 | | | | | | | | | | | | | |
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Nine Months Ended September 30, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | $ | 76,060 | | | $ | 2,913 | | | $ | 3,126 | | | $ | 121,223 | | | $ | 3,883 | | | $ | 4,128 | | | | | | | | | | | | | |
Commercial & industrial | | | 8,821 | | | | 333 | | | | 803 | | | | 47,263 | | | | 450 | | | | 1,921 | | | | | | | | | | | | | |
Commercial construction | | | 14,620 | | | | 509 | | | | 593 | | | | 40,202 | | | | 722 | | | | 1,016 | | | | | | | | | | | | | |
Total commercial | | | 99,501 | | | | 3,755 | | | | 4,522 | | | | 208,688 | | | | 5,055 | | | | 7,065 | | | | | | | | | | | | | |
Residential mortgage | | | 19,906 | | | | 882 | | | | 862 | | | | 23,547 | | | | 734 | | | | 832 | | | | | | | | | | | | | |
Residential construction | | | 14,219 | | | | 850 | | | | 882 | | | | 48,679 | | | | 989 | | | | 1,422 | | | | | | | | | | | | | |
Consumer installment | | | 228 | | | | 17 | | | | 17 | | | | 393 | | | | 20 | | | | 21 | | | | | | | | | | | | | |
Total | | $ | 133,854 | | | $ | 5,504 | | | $ | 6,283 | | | $ | 281,307 | | | $ | 6,798 | | | $ | 9,340 | | | | | | | | | | | | | |
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The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2013, December 31, 2012 and September 30, 2012 (in thousands). |
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| | 30-Sep-13 | | | 31-Dec-12 | | | 30-Sep-12 | |
| | Unpaid | | | Recorded | | | Allowance | | | Unpaid Principal Balance | | | Recorded Investment | | | Allowance | | | Unpaid Principal Balance | | | Recorded Investment | | | Allowance | |
Principal | Investment | for Loan | for Loan | for Loan |
Balance | | Losses | Losses Allocated | Losses Allocated |
| | Allocated | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | $ | 25,066 | | | $ | 20,384 | | | $ | - | | | $ | 74,066 | | | $ | 62,609 | | | $ | - | | | $ | 85,137 | | | $ | 77,801 | | | $ | - | |
Commercial & industrial | | | 235 | | | | 235 | | | | - | | | | 74,572 | | | | 49,572 | | | | - | | | | 76,247 | | | | 51,247 | | | | - | |
Commercial construction | | | 1,127 | | | | 1,127 | | | | - | | | | 23,938 | | | | 17,305 | | | | - | | | | 17,739 | | | | 16,656 | | | | - | |
Total commercial | | | 26,428 | | | | 21,746 | | | | - | | | | 172,576 | | | | 129,486 | | | | - | | | | 179,123 | | | | 145,704 | | | | - | |
Residential mortgage | | | 4,768 | | | | 3,729 | | | | - | | | | 10,336 | | | | 8,383 | | | | - | | | | 11,091 | | | | 8,746 | | | | - | |
Residential construction | | | 9,101 | | | | 7,364 | | | | - | | | | 35,439 | | | | 19,093 | | | | - | | | | 32,228 | | | | 19,601 | | | | - | |
Consumer installment | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | 62 | | | | 62 | | | | - | |
Total with no related allowance recorded | | | 40,297 | | | | 32,839 | | | | - | | | | 218,351 | | | | 156,962 | | | | - | | | | 222,504 | | | | 174,113 | | | | - | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | | 36,183 | | | | 34,079 | | | | 1,975 | | | | 44,395 | | | | 41,800 | | | | 6,106 | | | | 44,590 | | | | 41,222 | | | | 6,692 | |
Commercial & industrial | | | 4,002 | | | | 3,870 | | | | 546 | | | | 2,170 | | | | 1,929 | | | | 490 | | | | 2,321 | | | | 2,284 | | | | 725 | |
Commercial construction | | | 12,430 | | | | 12,351 | | | | 150 | | | | 23,746 | | | | 22,863 | | | | 2,239 | | | | 26,476 | | | | 25,593 | | | | 2,289 | |
Total commercial | | | 52,615 | | | | 50,300 | | | | 2,671 | | | | 70,311 | | | | 66,592 | | | | 8,835 | | | | 73,387 | | | | 69,099 | | | | 9,706 | |
Residential mortgage | | | 15,598 | | | | 15,241 | | | | 2,008 | | | | 14,267 | | | | 13,864 | | | | 2,165 | | | | 13,410 | | | | 12,932 | | | | 1,856 | |
Residential construction | | | 7,257 | | | | 6,757 | | | | 662 | | | | 15,412 | | | | 14,962 | | | | 625 | | | | 13,105 | | | | 11,975 | | | | 1,270 | |
Consumer installment | | | 214 | | | | 204 | | | | 11 | | | | 441 | | | | 430 | | | | 19 | | | | 444 | | | | 436 | | | | 21 | |
Total with an allowance recorded | | | 75,684 | | | | 72,502 | | | | 5,352 | | | | 100,431 | | | | 95,848 | | | | 11,644 | | | | 100,346 | | | | 94,442 | | | | 12,853 | |
Total | | $ | 115,981 | | | $ | 105,341 | | | $ | 5,352 | | | $ | 318,782 | | | $ | 252,810 | | | $ | 11,644 | | | $ | 322,850 | | | $ | 268,555 | | | $ | 12,853 | |
|
|
There were no loans more than 90 days past due and still accruing interest at September 30, 2013, December 31, 2012 or September 30, 2012. Nonaccrual loans include both homogeneous loans that are collectively evaluated for impairment and individually evaluated impaired loans. United’s policy is to place loans on nonaccrual status when, in the opinion of management, the principal and interest on a loan is not likely to be repaid in accordance with the loan terms or when the loan becomes 90 days past due and is not well secured and in the process of collection. When a loan is classified on nonaccrual status, interest previously accrued but not collected is reversed against current interest revenue. Principal and interest payments received on a nonaccrual loan are applied to reduce outstanding principal. |
|
The following table presents the recorded investment (unpaid principal less amounts charged-off) in nonaccrual loans by loan class as of September 30, 2013, December 31, 2012 and September 30, 2102 (in thousands). |
|
| | Nonaccrual Loans | | | | | | | | | | | | | | | | | | | | | | | | | |
| | September 30, | | | December 31, | | | September 30, | | | | | | | | | | | | | | | | | | | | | | | | | |
2013 | 2012 | 2012 | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | $ | 8,015 | | | $ | 22,148 | | | $ | 25,896 | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial & industrial | | | 609 | | | | 31,817 | | | | 32,678 | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial construction | | | 343 | | | | 23,843 | | | | 18,590 | | | | | | | | | | | | | | | | | | | | | | | | | |
Total commercial | | | 8,967 | | | | 77,808 | | | | 77,164 | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 12,504 | | | | 12,589 | | | | 13,996 | | | | | | | | | | | | | | | | | | | | | | | | | |
Residential construction | | | 4,097 | | | | 18,702 | | | | 22,935 | | | | | | | | | | | | | | | | | | | | | | | | | |
Consumer installment | | | 520 | | | | 795 | | | | 906 | | | | | | | | | | | | | | | | | | | | | | | | | |
Total | | $ | 26,088 | | | $ | 109,894 | | | $ | 115,001 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as a percentage of unpaid principal | | | 61.6 | % | | | 69.5 | % | | | 68.8 | % | | | | | | | | | | | | | | | | | | | | | | | | |
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The following table presents the aging of the recorded investment in past due loans as of September 30, 2013, December 31, 2012 and September 30, 2012 by class of loans (in thousands). |
|
| | Loans Past Due | | | Loans Not | | | | | | | | | | | | | | | | |
As of September 30, 2013 | | 30 - 59 Days | | | 60 - 89 Days | | | > 90 Days | | | Total | | | Past Due | | | Total | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | $ | 2,026 | | | $ | 1,283 | | | $ | 2,429 | | | $ | 5,738 | | | $ | 1,737,033 | | | $ | 1,742,771 | | | | | | | | | | | | | |
Commercial & industrial | | | 763 | | | | 191 | | | | 93 | | | | 1,047 | | | | 456,367 | | | | 457,414 | | | | | | | | | | | | | |
Commercial construction | | | 16 | | | | - | | | | 235 | | | | 251 | | | | 136,895 | | | | 137,146 | | | | | | | | | | | | | |
Total commercial | | | 2,805 | | | | 1,474 | | | | 2,757 | | | | 7,036 | | | | 2,330,295 | | | | 2,337,331 | | | | | | | | | | | | | |
Residential mortgage | | | 8,849 | | | | 3,077 | | | | 4,652 | | | | 16,578 | | | | 1,292,717 | | | | 1,309,295 | | | | | | | | | | | | | |
Residential construction | | | 3,705 | | | | 418 | | | | 924 | | | | 5,047 | | | | 312,742 | | | | 317,789 | | | | | | | | | | | | | |
Consumer installment | | | 853 | | | | 103 | | | | 149 | | | | 1,105 | | | | 301,547 | | | | 302,652 | | | | | | | | | | | | | |
Total loans | | $ | 16,212 | | | $ | 5,072 | | | $ | 8,482 | | | $ | 29,766 | | | $ | 4,237,301 | | | $ | 4,267,067 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | $ | 8,106 | | | $ | 3,232 | | | $ | 7,476 | | | $ | 18,814 | | | $ | 1,794,551 | | | $ | 1,813,365 | | | | | | | | | | | | | |
Commercial & industrial | | | 1,565 | | | | 429 | | | | 867 | | | | 2,861 | | | | 455,385 | | | | 458,246 | | | | | | | | | | | | | |
Commercial construction | | | 2,216 | | | | - | | | | 4,490 | | | | 6,706 | | | | 148,063 | | | | 154,769 | | | | | | | | | | | | | |
Total commercial | | | 11,887 | | | | 3,661 | | | | 12,833 | | | | 28,381 | | | | 2,397,999 | | | | 2,426,380 | | | | | | | | | | | | | |
Residential mortgage | | | 12,292 | | | | 2,426 | | | | 4,848 | | | | 19,566 | | | | 1,194,637 | | | | 1,214,203 | | | | | | | | | | | | | |
Residential construction | | | 2,233 | | | | 1,934 | | | | 5,159 | | | | 9,326 | | | | 372,351 | | | | 381,677 | | | | | | | | | | | | | |
Consumer installment | | | 1,320 | | | | 245 | | | | 289 | | | | 1,854 | | | | 150,894 | | | | 152,748 | | | | | | | | | | | | | |
Total loans | | $ | 27,732 | | | $ | 8,266 | | | $ | 23,129 | | | $ | 59,127 | | | $ | 4,115,881 | | | $ | 4,175,008 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
As of September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | $ | 5,395 | | | $ | 5,210 | | | $ | 11,103 | | | $ | 21,708 | | | $ | 1,797,447 | | | $ | 1,819,155 | | | | | | | | | | | | | |
Commercial & industrial | | | 1,499 | | | | 295 | | | | 696 | | | | 2,490 | | | | 457,507 | | | | 459,997 | | | | | | | | | | | | | |
Commercial construction | | | 213 | | | | 880 | | | | 3,838 | | | | 4,931 | | | | 155,834 | | | | 160,765 | | | | | | | | | | | | | |
Total commercial | | | 7,107 | | | | 6,385 | | | | 15,637 | | | | 29,129 | | | | 2,410,788 | | | | 2,439,917 | | | | | | | | | | | | | |
Residential mortgage | | | 11,771 | | | | 4,798 | | | | 5,556 | | | | 22,125 | | | | 1,152,111 | | | | 1,174,236 | | | | | | | | | | | | | |
Residential construction | | | 4,318 | | | | 2,319 | | | | 11,054 | | | | 17,691 | | | | 371,051 | | | | 388,742 | | | | | | | | | | | | | |
Consumer installment | | | 1,269 | | | | 219 | | | | 394 | | | | 1,882 | | | | 133,068 | | | | 134,950 | | | | | | | | | | | | | |
Total loans | | $ | 24,465 | | | $ | 13,721 | | | $ | 32,641 | | | $ | 70,827 | | | $ | 4,067,018 | | | $ | 4,137,845 | | | | | | | | | | | | | |
|
|
As of September 30, 2013, December 31, 2012, and September 30, 2012, $4.72 million, $9.50 million and $10.8 million of specific reserves were allocated to customers whose loan terms have been modified in TDRs. United committed to lend additional amounts totaling up to $3,000, $689,000 and $377,000 as of September 30, 2013, December 31, 2012 and September 30, 2012, respectively, to customers with outstanding loans that are classified as TDRs. |
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The modification of the terms of the TDRs included one or a combination of the following: a reduction of the stated interest rate of the loan or an extension of the amortization period that would not otherwise be considered in the current market for new debt with similar risk characteristics; a permanent reduction of the principal amount; a restructuring of the borrower’s debt into an A/B note structure where the A note would fall within the borrower’s ability to pay and the remainder would be included in the B note, or a mandated bankruptcy restructuring. |
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The following table presents additional information on TDRs including the number of loan contracts restructured and the pre- and post-modification recorded investment as of September 30, 2013, December 31, 2012 and September 30, 2012 (dollars in thousands). |
|
| | 30-Sep-13 | | | 31-Dec-12 | | | 30-Sep-12 | |
| | Number | | | Pre- | | | Post- | | | Number | | | Pre-Modification | | | Post-Modification Outstanding Recorded Investment | | | Number | | | Pre- | | | Post- | |
of | Modification | Modification | of | Outstanding Recorded Investment | of | Modification | Modification |
Contracts | Outstanding | Outstanding Recorded Investment | Contracts | | Contracts | Outstanding Recorded Investment | Outstanding Recorded Investment |
| Recorded | | | | | | |
| | Investment | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (sec by RE) | | | 77 | | | $ | 47,963 | | | $ | 43,163 | | | | 96 | | | $ | 80,261 | | | $ | 75,340 | | | | 101 | | | $ | 84,672 | | | $ | 79,645 | |
Commercial & industrial | | | 34 | | | | 3,051 | | | | 2,919 | | | | 32 | | | | 7,492 | | | | 7,250 | | | | 30 | | | | 7,237 | | | | 7,199 | |
Commercial construction | | | 12 | | | | 12,904 | | | | 12,825 | | | | 25 | | | | 37,537 | | | | 33,809 | | | | 25 | | | | 37,832 | | | | 35,866 | |
Total commercial | | | 123 | | | | 63,918 | | | | 58,907 | | | | 153 | | | | 125,290 | | | | 116,399 | | | | 156 | | | | 129,741 | | | | 122,710 | |
Residential mortgage | | | 120 | | | | 19,032 | | | | 17,929 | | | | 117 | | | | 20,323 | | | | 19,296 | | | | 114 | | | | 18,226 | | | | 17,487 | |
Residential construction | | | 55 | | | | 12,360 | | | | 10,290 | | | | 67 | | | | 25,822 | | | | 23,786 | | | | 73 | | | | 28,629 | | | | 24,772 | |
Consumer installment | | | 36 | | | | 214 | | | | 204 | | | | 51 | | | | 1,292 | | | | 1,282 | | | | 50 | | | | 1,371 | | | | 1,363 | |
Total loans | | | 334 | | | $ | 95,524 | | | $ | 87,330 | | | | 388 | | | $ | 172,727 | | | $ | 160,763 | | | | 393 | | | $ | 177,967 | | | $ | 166,332 | |
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Loans modified under the terms of a TDR during the three and nine months ended September 30, 2013 and 2012 are presented in the table below. In addition, the following table presents loans modified under the terms of a TDR that became 90 days or more delinquent during the three and nine months ended September 30, 2013 and 2012 that were initially restructured within one year prior to the three and nine months ended September 30, 2013 and 2012 (dollars in thousands). |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
New Troubled Debt | | Number of Contracts | | | Pre- Modification Outstanding Recorded Investment | | | Post- Modification Outstanding Recorded Investment | | | Modified Within the Previous | | | | | | | | | | | | | | | | | |
Restructurings for the Three | Twelve Months that Have | | | | | | | | | | | | | | | | |
Months Ended September 30, 2013 | Subsequently Defaulted During | | | | | | | | | | | | | | | | |
| the Three Months Ended | | | | | | | | | | | | | | | | |
| 30-Sep-13 | | | | | | | | | | | | | | | | |
| | | | | | | | Number of Contracts | | | Recorded Investment | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | | 1 | | | $ | 1,841 | | | $ | 741 | | | $ | - | | | $ | - | | | | | | | | | | | | | | | | | |
Commercial & industrial | | | 1 | | | | 68 | | | | 68 | | | | - | | | | - | | | | | | | | | | | | | | | | | |
Commercial construction | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | |
Total commercial | | | 2 | | | | 1,909 | | | | 809 | | | | - | | | | - | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 16 | | | | 2,365 | | | | 2,207 | | | | 1 | | | | 533 | | | | | | | | | | | | | | | | | |
Residential construction | | | 3 | | | | 727 | | | | 727 | | | | 1 | | | | 414 | | | | | | | | | | | | | | | | | |
Consumer installment | | | 1 | | | | 7 | | | | 7 | | | | 2 | | | | 9 | | | | | | | | | | | | | | | | | |
Total loans | | | 22 | | | $ | 5,008 | | | $ | 3,750 | | | | 4 | | | $ | 956 | | | | | | | | | | | | | | | | | |
|
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
New Troubled Debt | | Number of Contracts | | | Pre- | | | Post- Modification Outstanding Recorded Investment | | | Modified Within the Previous | | | | | | | | | | | | | | | | | |
Restructurings for the Nine | Modification Outstanding Recorded Investment | Twelve Months that Have | | | | | | | | | | | | | | | | |
Months Ended September 30, 2013 | | Subsequently Defaulted During | | | | | | | | | | | | | | | | |
| | the Nine Months Ended | | | | | | | | | | | | | | | | |
| | 30-Sep-13 | | | | | | | | | | | | | | | | |
| | | | | | | | | Number of Contracts | | | Recorded Investment | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | | 18 | | | $ | 11,932 | | | $ | 10,832 | | | $ | 1 | | | $ | 432 | | | | | | | | | | | | | | | | | |
Commercial & industrial | | | 10 | | | | 883 | | | | 777 | | | | 1 | | | | 35 | | | | | | | | | | | | | | | | | |
Commercial construction | | | - | | | | - | | | | - | | | | 2 | | | | 1,454 | | | | | | | | | | | | | | | | | |
Total commercial | | | 28 | | | | 12,815 | | | | 11,609 | | | | 4 | | | | 1,921 | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 29 | | | | 5,129 | | | | 4,827 | | | | 3 | | | | 641 | | | | | | | | | | | | | | | | | |
Residential construction | | | 10 | | | | 1,850 | | | | 1,721 | | | | 3 | | | | 531 | | | | | | | | | | | | | | | | | |
Consumer installment | | | 5 | | | | 28 | | | | 28 | | | | 5 | | | | 29 | | | | | | | | | | | | | | | | | |
Total loans | | | 72 | | | $ | 19,822 | | | $ | 18,185 | | | | 15 | | | $ | 3,122 | | | | | | | | | | | | | | | | | |
|
New Troubled Debt | | Number of Contracts | | | Pre- | | | Post- Modification Outstanding Recorded Investment | | | Modified Within the Previous | | | | | | | | | | | | | | | | | |
Restructurings for the Three | Modification Outstanding Recorded Investment | Twelve Months that Have | | | | | | | | | | | | | | | | |
Months Ended September 30, 2012 | | Subsequently Defaulted During | | | | | | | | | | | | | | | | |
| | the Three Months Ended | | | | | | | | | | | | | | | | |
| | 30-Sep-12 | | | | | | | | | | | | | | | | |
| | | | | | | | | Number of Contracts | | | Recorded Investment | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | | 13 | | | $ | 7,914 | | | $ | 7,836 | | | $ | 3 | | | $ | 324 | | | | | | | | | | | | | | | | | |
Commercial & industrial | | | 3 | | | | 162 | | | | 162 | | | | - | | | | - | | | | | | | | | | | | | | | | | |
Commercial construction | | | 6 | | | | 5,531 | | | | 5,451 | | | | - | | | | - | | | | | | | | | | | | | | | | | |
Total commercial | | | 22 | | | | 13,607 | | | | 13,449 | | | | 3 | | | | 324 | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 15 | | | | 2,252 | | | | 2,102 | | | | 2 | | | | 47 | | | | | | | | | | | | | | | | | |
Residential construction | | | 12 | | | | 6,569 | | | | 6,188 | | | | 10 | | | | 2,953 | | | | | | | | | | | | | | | | | |
Consumer installment | | | 7 | | | | 44 | | | | 43 | | | | 1 | | | | 2 | | | | | | | | | | | | | | | | | |
Total loans | | | 56 | | | $ | 22,472 | | | $ | 21,782 | | | | 16 | | | $ | 3,326 | | | | | | | | | | | | | | | | | |
|
New Troubled Debt | | Number of Contracts | | | Pre- | | | Post- Modification Outstanding Recorded Investment | | | Modified Within the Previous | | | | | | | | | | | | | | | | | |
Restructurings for the Nine | Modification Outstanding Recorded Investment | Twelve Months that Have | | | | | | | | | | | | | | | | |
Months Ended September 30, 2012 | | Subsequently Defaulted During | | | | | | | | | | | | | | | | |
| | the Nine Months Ended | | | | | | | | | | | | | | | | |
| | 30-Sep-12 | | | | | | | | | | | | | | | | |
| | | | | | | | | Number of Contracts | | | Recorded Investment | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial (secured by real estate) | | | 47 | | | $ | 30,828 | | | $ | 29,305 | | | $ | 6 | | | $ | 2,631 | | | | | | | | | | | | | | | | | |
Commercial & industrial | | | 20 | | | | 3,484 | | | | 3,484 | | | | 2 | | | | 48 | | | | | | | | | | | | | | | | | |
Commercial construction | | | 20 | | | | 34,014 | | | | 33,934 | | | | 2 | | | | 4,174 | | | | | | | | | | | | | | | | | |
Total commercial | | | 87 | | | | 68,326 | | | | 66,723 | | | | 10 | | | | 6,853 | | | | | | | | | | | | | | | | | |
Residential mortgage | | | 59 | | | | 12,819 | | | | 12,487 | | | | 6 | | | | 447 | | | | | | | | | | | | | | | | | |
Residential construction | | | 46 | | | | 17,958 | | | | 15,738 | | | | 14 | | | | 4,550 | | | | | | | | | | | | | | | | | |
Consumer installment | | | 22 | | | | 314 | | | | 308 | | | | 2 | | | | 8 | | | | | | | | | | | | | | | | | |
Total loans | | | 214 | | | $ | 99,417 | | | $ | 95,256 | | | | 32 | | | $ | 11,858 | | | | | | | | | | | | | | | | | |
|
Collateral dependent TDRs that subsequently default and are placed on nonaccrual are charged down to the fair value of the collateral consistent with United’s policy for nonaccrual loans. Impairment on TDRs that are not collateral dependent continues to be measured on discounted cash flows regardless of whether the loan has subsequently defaulted. |
|
As of September 30, 2013, December 31, 2012 and September 30, 2012, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands). |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | Substandard | | | Doubtful / | | | | | | | | | | | | | | | |
As of September 30, 2013 | | Pass | | | Watch | | | Performing | | | Nonaccrual | | | Loss | | | Not Rated | | | Total | | | | | | | | | |
Commercial (secured by real estate) | | $ | 1,603,863 | | | $ | 55,351 | | | $ | 75,542 | | | $ | 8,015 | | | $ | - | | | $ | - | | | $ | 1,742,771 | | | | | | | | | |
Commercial & industrial | | | 435,635 | | | | 10,062 | | | | 10,342 | | | | 609 | | | | - | | | | 766 | | | | 457,414 | | | | | | | | | |
Commercial construction | | | 109,332 | | | | 10,560 | | | | 16,911 | | | | 343 | | | | - | | | | - | | | | 137,146 | | | | | | | | | |
Total commercial | | | 2,148,830 | | | | 75,973 | | | | 102,795 | | | | 8,967 | | | | - | | | | 766 | | | | 2,337,331 | | | | | | | | | |
Residential mortgage | | | 1,215,149 | | | | 28,470 | | | | 53,172 | | | | 12,504 | | | | - | | | | - | | | | 1,309,295 | | | | | | | | | |
Residential construction | | | 283,197 | | | | 14,943 | | | | 15,552 | | | | 4,097 | | | | - | | | | - | | | | 317,789 | | | | | | | | | |
Consumer installment | | | 298,823 | | | | 1,162 | | | | 2,147 | | | | 520 | | | | - | | | | - | | | | 302,652 | | | | | | | | | |
Total loans | | $ | 3,945,999 | | | $ | 120,548 | | | $ | 173,666 | | | $ | 26,088 | | | $ | - | | | $ | 766 | | | $ | 4,267,067 | | | | | | | | | |
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As of December 31, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial (secured by real estate) | | $ | 1,592,677 | | | $ | 80,997 | | | $ | 117,543 | | | $ | 22,148 | | | $ | - | | | $ | - | | | $ | 1,813,365 | | | | | | | | | |
Commercial & industrial | | | 401,606 | | | | 5,404 | | | | 18,477 | | | | 31,817 | | | | - | | | | 942 | | | | 458,246 | | | | | | | | | |
Commercial construction | | | 104,296 | | | | 7,345 | | | | 19,285 | | | | 23,843 | | | | - | | | | - | | | | 154,769 | | | | | | | | | |
Total commercial | | | 2,098,579 | | | | 93,746 | | | | 155,305 | | | | 77,808 | | | | - | | | | 942 | | | | 2,426,380 | | | | | | | | | |
Residential mortgage | | | 1,102,746 | | | | 33,689 | | | | 65,179 | | | | 12,589 | | | | - | | | | - | | | | 1,214,203 | | | | | | | | | |
Residential construction | | | 292,264 | | | | 32,907 | | | | 37,804 | | | | 18,702 | | | | - | | | | - | | | | 381,677 | | | | | | | | | |
Consumer installment | | | 147,214 | | | | 1,086 | | | | 3,653 | | | | 795 | | | | - | | | | - | | | | 152,748 | | | | | | | | | |
Total loans | | $ | 3,640,803 | | | $ | 161,428 | | | $ | 261,941 | | | $ | 109,894 | | | $ | - | | | $ | 942 | | | $ | 4,175,008 | | | | | | | | | |
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As of September 30, 2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Commercial (secured by real estate) | | $ | 1,591,321 | | | $ | 75,606 | | | $ | 126,332 | | | $ | 25,896 | | | $ | - | | | $ | - | | | $ | 1,819,155 | | | | | | | | | |
Commercial & industrial | | | 403,460 | | | | 4,179 | | | | 18,740 | | | | 32,678 | | | | - | | | | 940 | | | | 459,997 | | | | | | | | | |
Commercial construction | | | 108,909 | | | | 6,086 | | | | 27,180 | | | | 18,590 | | | | - | | | | - | | | | 160,765 | | | | | | | | | |
Total commercial | | | 2,103,690 | | | | 85,871 | | | | 172,252 | | | | 77,164 | | | | - | | | | 940 | | | | 2,439,917 | | | | | | | | | |
Residential mortgage | | | 1,051,402 | | | | 36,640 | | | | 72,198 | | | | 13,996 | | | | - | | | | - | | | | 1,174,236 | | | | | | | | | |
Residential construction | | | 292,002 | | | | 38,635 | | | | 35,170 | | | | 22,935 | | | | - | | | | - | | | | 388,742 | | | | | | | | | |
Consumer installment | | | 130,277 | | | | 881 | | | | 2,886 | | | | 906 | | | | - | | | | - | | | | 134,950 | | | | | | | | | |
Total loans | | $ | 3,577,371 | | | $ | 162,027 | | | $ | 282,506 | | | $ | 115,001 | | | $ | - | | | $ | 940 | | | $ | 4,137,845 | | | | | | | | | |
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Risk Ratings |
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United 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 industry and economic trends, among other factors. United analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continuous basis. United uses the following definitions for its risk ratings: |
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Watch. Loans in this category are presently protected from apparent loss; however, weaknesses exist that could cause future impairment, including the deterioration of financial ratios, past due status and questionable management capabilities. These loans require more than the ordinary amount of supervision. Collateral values generally afford adequate coverage, but may not be immediately marketable. |
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Substandard. These loans are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged. Specific and well-defined weaknesses exist that may include poor liquidity and deterioration of financial ratios. The loan may be past due and related deposit accounts experiencing overdrafts. There is the distinct possibility that United will sustain some loss if deficiencies are not corrected. If possible, immediate corrective action is taken. |
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Doubtful. Specific weaknesses characterized as Substandard that are severe enough to make collection in full highly questionable and improbable. There is no reliable secondary source of full repayment. |
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Loss. Loans categorized as Loss have the same characteristics as Doubtful; however, probability of loss is certain. Loans classified as Loss are charged-off. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are generally deposit account overdrafts that have not been assigned a grade. |