Loans and Allowance for Loan and Lease Losses | 9 Months Ended |
Sep. 30, 2014 |
Loans and Allowance for Loan and Lease Losses | ' |
Loans and Allowance for Loan and Lease Losses | ' |
Note 5. Loans and Allowance for Loan and Lease Losses |
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The following table provides a summary of outstanding loan balances: |
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| | | | December 31, | | | | | | | | | |
| | September 30, 2014 | | 2013 | | | | | | | | | |
| | Non-PCI | | PCI | | Total Loans | | Non-PCI | | | | | | | | | |
| | Loans | | Loans | | Receivable | | Loans | | | | | | | | | |
| | (dollars in thousands) | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | | | |
Multi-family residential | | $ | 76,821 | | $ | - | | $ | 76,821 | | | $ | 31,140 | | | | | | | | | |
Residential 1 to 4 family | | 120,500 | | 561 | | 121,061 | | | 88,904 | | | | | | | | | |
Home equity lines of credit | | 37,886 | | 81 | | 37,967 | | | 31,178 | | | | | | | | | |
Commercial | | 577,639 | | 4,961 | | 582,600 | | | 432,203 | | | | | | | | | |
Farmland | | 92,292 | | 1,673 | | 93,965 | | | 50,414 | | | | | | | | | |
Land | | 23,763 | | 871 | | 24,634 | | | 24,523 | | | | | | | | | |
Construction | | 17,845 | | - | | 17,845 | | | 13,699 | | | | | | | | | |
Total real estate secured | | 946,746 | | 8,147 | | 954,893 | | | 672,061 | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | 142,076 | | 1,785 | | 143,861 | | | 119,121 | | | | | | | | | |
Agriculture | | 42,787 | | 1,417 | | 44,204 | | | 32,686 | | | | | | | | | |
Other | | 20 | | - | | 20 | | | 38 | | | | | | | | | |
Total commercial | | 184,883 | | 3,202 | | 188,085 | | | 151,845 | | | | | | | | | |
Installment loans to individuals | | 8,198 | | - | | 8,198 | | | 3,246 | | | | | | | | | |
Overdrafts | | 400 | | - | | 400 | | | 332 | | | | | | | | | |
Total gross loans held for investment | | 1,140,227 | | 11,349 | | 1,151,576 | | | 827,484 | | | | | | | | | |
Net deferred loan fees | | (1,414 | ) | - | | (1,414 | ) | | (1,281 | ) | | | | | | | | |
Allowance for loan and lease losses | | (16,787 | ) | - | | (16,787 | ) | | (17,859 | ) | | | | | | | | |
Total net loans held for investment | | $ | 1,122,026 | | $ | 11,349 | | $ | 1,133,375 | | | $ | 808,344 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Loans held for sale | | $ | 5,977 | | $ | - | | $ | 5,977 | | | $ | 2,386 | | | | | | | | | |
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Total net loans in the table above include $280.3 million of loans acquired through the MISN acquisition at fair value on the acquisition date. $267.5 million of these loans were acquired with no impairment while the remaining $12.8 million were determined to be PCI loans. Loans held for sale are primarily single-family residential mortgage loans under contract to be sold in the secondary market. In most cases, loans in this category are sold within thirty to sixty days. |
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Under a blanket lien to the Federal Home Loan Bank (“FHLB”), the Bank has pledged $816.6 million in loans to secure a credit facility totaling $417.8 million, of which $75.6 million is outstanding as of September 30, 2014. Of this credit facility, $11.5 million is available as a line of credit and $340.9 million is available for potential future borrowings. The Bank also has a collateralized borrowing line with the Federal Reserve Bank secured by $12.3 million of loans as of September 30, 2014. |
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Concentration of Credit Risk |
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The Company held loans that were collateralized by various forms of real estate totaling $954.9 million and $672.1 million at September 30, 2014 and December 31, 2013, respectively. Such loans are generally made to borrowers located in the counties of San Luis Obispo, Santa Barbara and Ventura. The Company attempts to reduce its concentration of credit risk by making loans which are diversified by product type. While management believes that the collateral presently securing this portfolio is adequate, there can be no assurances that deterioration in the California real estate market, or the impact of the current California drought on our real estate collateralized loans, would not expose the Company to significantly greater credit risk. |
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Loans Serviced for Others |
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Loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of loans serviced for others, exclusive of Small Business Administration (“SBA”) loans, was $46.9 million at September 30, 2014 and $22.6 million at December 31, 2013. |
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From time to time, the Company also originates SBA loans for sale for which it retains the servicing of the guaranteed portion of the loan sold. At September 30, 2014 and December 31, 2013, the unpaid principal balance of SBA loans serviced for others totaled $16.1 million and $6.6 million, respectively. The Company recognized $16 thousand and $43 thousand in gains from the sale of SBA loans during the three and nine months ended September 30, 2014. Gains on the sale of SBA loans during the three and nine months ended September 30, 2013 totaled $4 thousand and $0.4 million, respectively. |
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Impaired Loans |
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The following tables provide a summary of the Company’s recorded investment in non-PCI and PCI impaired loans as of and for the three and nine months ended September 30, 2014: |
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| | | | | | | | For the Three Months Ended | | For the Nine Months Ended | |
| | September 30, 2014 | | September 30, 2014 | | September 30, 2014 | |
| | | | Unpaid | | Specific | | Average | | Interest | | Average | | Interest | |
| | Recorded | | Principal | | Allowance for | | Recorded | | Income | | Recorded | | Income | |
| | Investment (1) | | Balance | | Impaired Loans | | Investment (1) | | Recognized | | Investment (1) | | Recognized | |
| | (dollars in thousands) | |
Non-PCI loans | | | | | | | | | | | | | | | |
Without related allowance | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | |
Residential 1 to 4 family | | $ | 217 | | $ | 354 | | $ | - | | $ | 222 | | $ | 6 | | $ | 496 | | $ | 16 | |
Home equity lines of credit | | 100 | | 183 | | - | | 100 | | - | | 100 | | - | |
Commercial | | 2,014 | | 4,423 | | - | | 2,269 | | 6 | | 1,862 | | 19 | |
Farmland | | 289 | | 288 | | - | | 292 | | 2 | | 294 | | 12 | |
Construction | | 380 | | 375 | | - | | 380 | | 5 | | 380 | | 5 | |
Land | | 460 | | 1,152 | | - | | 935 | | 2 | | 1,170 | | 32 | |
Commercial | | | | | | | | | | | | | | | |
Commercial and industrial | | 2,316 | | 3,480 | | - | | 3,152 | | 51 | | 3,616 | | 111 | |
Agriculture | | 722 | | 761 | | - | | 724 | | 2 | | 741 | | 2 | |
Installment loans to individuals | | 117 | | 205 | | - | | 118 | | 1 | | 145 | | 3 | |
Total | | 6,615 | | 11,221 | | - | | 8,192 | | 75 | | 8,804 | | 200 | |
| | | | | | | | | | | | | | | |
With related allowance | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | |
Residential 1 to 4 family | | - | | - | | - | | - | | - | | - | | - | |
Home equity lines of credit | | - | | - | | - | | - | | - | | - | | - | |
Commercial | | 331 | | 331 | | 58 | | 331 | | - | | 331 | | - | |
Farmland | | - | | - | | - | | - | | - | | - | | - | |
Construction | | - | | - | | - | | - | | - | | - | | - | |
Land | | 6,087 | | 9,755 | | 1,764 | | 6,380 | | 16 | | 6,602 | | 58 | |
Commercial | | | | - | | - | | - | | - | | - | | - | |
Commercial and industrial | | 1,887 | | 1,809 | | 260 | | 1,916 | | 41 | | 2,013 | | 90 | |
Agriculture | | - | | - | | - | | - | | - | | - | | - | |
Installment loans to individuals | | - | | - | | - | | - | | - | | - | | - | |
Total | | 8,305 | | 11,895 | | 2,082 | | 8,627 | | 57 | | 8,946 | | 148 | |
Total non-PCI impaired loans | | $ | 14,920 | | $ | 23,116 | | $ | 2,082 | | $ | 16,819 | | $ | 132 | | $ | 17,750 | | $ | 348 | |
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(1) Recorded investment includes net deferred loan fees and costs attributable to these loans. |
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| | | | | | | | For the Three Months Ended | | For the Nine Months Ended | |
| | September 30, 2014 | | September 30, 2014 | | September 30, 2014 | |
| | | | Unpaid | | Specific | | Average | | Interest | | Average | | Interest | |
| | Recorded | | Principal | | Allowance for | | Recorded | | Income | | Recorded | | Income | |
| | Investment (1) | | Balance | | Impaired Loans | | Investment (1) | | Recognized | | Investment (1) | | Recognized | |
| | (dollars in thousands) | |
PCI loans | | | | | | | | | | | | | | | |
Without related allowance | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | |
Residential 1 to 4 family | | $ | 564 | | $ | 888 | | $ | - | | $ | 565 | | $ | 13 | | $ | 585 | | $ | 29 | |
Home equity lines of credit | | 82 | | 98 | | - | | 81 | | 2 | | 81 | | 4 | |
Commercial | | 4,981 | | 6,903 | | - | | 4,993 | | 130 | | 5,160 | | 327 | |
Farmland | | 1,681 | | 2,044 | | - | | 1,699 | | 20 | | 1,706 | | 64 | |
Land | | 874 | | 1,019 | | - | | 923 | | 21 | | 943 | | 47 | |
Commercial | | | | | | | | | | | | | | | |
Commercial and industrial | | 1,790 | | 2,322 | | - | | 2,081 | | 185 | | 2,236 | | 263 | |
Agriculture | | 1,425 | | 1,492 | | - | | 1,301 | | 34 | | 1,291 | | 62 | |
Installment loans to individuals | | - | | - | | - | | - | | - | | - | | - | |
Total | | 11,397 | | 14,766 | | - | | 11,643 | | 405 | | 12,002 | | 796 | |
| | | | | | | | | | | | | | | |
With related allowance | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | |
Residential 1 to 4 family | | - | | - | | - | | - | | - | | - | | - | |
Home equity lines of credit | | - | | - | | - | | - | | - | | - | | - | |
Commercial | | - | | - | | - | | - | | - | | - | | - | |
Farmland | | - | | - | | - | | - | | - | | - | | - | |
Land | | - | | - | | - | | - | | - | | - | | - | |
Commercial | | | | | | | | | | | | | | | |
Commercial and industrial | | - | | - | | - | | - | | - | | - | | - | |
Agriculture | | - | | - | | - | | - | | - | | - | | - | |
Installment loans to individuals | | - | | - | | - | | - | | - | | - | | - | |
Total | | - | | - | | - | | - | | - | | - | | - | |
Total PCI loans | | $ | 11,397 | | $ | 14,766 | | $ | - | | $ | 11,643 | | $ | 405 | | $ | 12,002 | | $ | 796 | |
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(1) Recorded investment includes accrued interest receivable for PCI impaired loans. |
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The following table provides a summary of the Company’s recorded investment in non-PCI impaired loans as of and for the three and nine months ended September 30, 2013. The Company did not have any PCI loans during 2013. |
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| | | | | | | | For the Three Months Ended | | For the Nine Months Ended | |
| | September 30, 2013 | | September 30, 2013 | | September 30, 2013 | |
| | | | Unpaid | | Specific | | Average | | Interest | | Average | | Interest | |
| | Recorded | | Principal | | Allowance for | | Recorded | | Income | | Recorded | | Income | |
| | Investment (1) | | Balance | | Impaired Loans | | Investment (1) | | Recognized | | Investment (1) | | Recognized | |
| | (dollars in thousands) | |
Non-PCI loans | | | | | | | | | | | | | | | |
Without related allowance | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | |
Residential 1 to 4 family | | $ | 703 | | $ | 735 | | $ | - | | $ | - | | $ | - | | $ | 269 | | $ | - | |
Home equity lines of credit | | - | | - | | - | | - | | - | | - | | - | |
Commercial | | 552 | | 811 | | - | | 2 | | - | | 90 | | - | |
Land | | 1,013 | | 1,367 | | - | | 852 | | - | | 724 | | - | |
Commercial | | | | | | | | | | | | | | | |
Commercial and industrial | | 1,208 | | 1,546 | | - | | 1,041 | | - | | 1,314 | | - | |
Agriculture | | 745 | | 779 | | - | | 1,022 | | - | | 937 | | - | |
Installment loans to individuals | | - | | - | | - | | - | | - | | - | | - | |
Total | | 4,221 | | 5,238 | | - | | 2,917 | | - | | 3,334 | | - | |
| | | | | | | | | | | | | | | |
With related allowance | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | |
Residential 1 to 4 family | | 109 | | 230 | | 17 | | 339 | | - | | 190 | | - | |
Commercial | | 642 | | 1,114 | | 91 | | 26 | | - | | 21 | | - | |
Land | | 7,050 | | 10,726 | | 3,854 | | 112 | | 4 | | 116 | | 4 | |
Commercial | | | | | | | | | | | | | | | |
Commercial and industrial | | 3,463 | | 3,650 | | 2,826 | | 3,430 | | 8 | | 2,969 | | 11 | |
Agriculture | | 65 | | 69 | | 27 | | 41 | | - | | 29 | | - | |
Installment loans to individuals | | 26 | | 71 | | 10 | | 7,116 | | - | | 6,573 | | - | |
Total | | 11,355 | | 15,860 | | 6,825 | | 11,064 | | 12 | | 9,898 | | 15 | |
Total non-PCI impaired loans | | $ | 15,576 | | $ | 21,098 | | $ | 6,825 | | $ | 13,981 | | $ | 12 | | $ | 13,232 | | $ | 15 | |
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(1) Recorded investment includes net deferred loan fees and costs attributable to these loans. |
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The following table provides a summary of the Company’s recorded investment in non-PCI impaired loans as of December 31, 2013. The Company did not have any PCI loans during 2013. |
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| | December 31, 2013 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | Unpaid | | Specific | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | Recorded | | Principal | | Allowance for | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | Investment (1) | | Balance | | Impaired Loans | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| | (dollars in thousands) | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Non-PCI loans | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Without related allowance | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Residential 1 to 4 family | | $ | 944 | | $ | 1,102 | | $ | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Home equity lines of credit | | - | | - | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial | | 901 | | 1,646 | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Farmland | | - | | - | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Land | | 1,221 | | 1,948 | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | 1,857 | | 2,241 | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Agriculture | | 789 | | 824 | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Installment loans to individuals | | 118 | | 190 | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total | | 5,830 | | 7,951 | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
With related allowance | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Residential 1 to 4 family | | - | | - | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Home equity lines of credit | | - | | - | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial | | - | | - | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Farmland | | - | | - | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Land | | 6,706 | | 10,158 | | 2,531 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | 3,480 | | 3,602 | | 623 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Agriculture | | - | | - | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Installment loans to individuals | | - | | - | | - | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total | | 10,186 | | 13,760 | | 3,154 | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Total non-PCI impaired loans | | $ | 16,016 | | $ | 21,711 | | $ | 3,154 | | | | | | | | | | | | | |
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(1) Recorded investment includes net deferred loan fees and costs attributable to these loans. |
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The Company did not record income from the receipt of cash payments related to non-accruing loans during the three and nine months ended September 30, 2014 and 2013. Interest income recognized on impaired loans in the tables above, if any, represents interest the Company recognized on accruing troubled debt restructurings. Because loans identified as impaired have unique risk characteristics, the Company has determined the related valuation allowances for such loans on a loan-by-loan basis. |
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Troubled Debt Restructurings (“TDR”) |
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The majority of the Bank’s TDRs were granted concessions regarding interest rates, payment structure and/or maturity. Modifications for the three and nine months ended September 30, 2014, and 2013 include a combination of partial charge-offs of principal along with extensions of the maturity date at the loan’s original interest rate, which was lower than the current market rate for new debt with similar risk. The maturity date extensions granted were for periods ranging from 6 months to 10 years. As of September 30, 2014, the Company was not committed to lend any additional funds to borrowers whose obligations to the Company were restructured. |
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The following table provides a summary of loans that were classified as TDRs as of the dates indicated below: |
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| | September 30, 2014 | | December 31, 2013 | | | | |
| | Accrual | | Non-accrual | | Total | | Accrual | | Non-accrual | | Total | | | | |
| | | | | | |
(dollars in thousands) | | | |
| | | | | | | | | | | | | | | | |
Non-PCI loans | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Real estate secured | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Residential 1 to 4 family | | $ | 128 | | $ | 89 | | $ | 217 | | $ | 499 | | $ | 109 | | $ | 608 | | | | |
| | | | | | | | | | | | | | | | |
Commercial | | 370 | | 83 | | 453 | | 225 | | 136 | | 361 | | | | |
| | | | | | | | | | | | | | | | |
Farmland | | 289 | | - | | 289 | | - | | - | | - | | | | |
| | | | | | | | | | | | | | | | |
Construction | | 380 | | - | | 380 | | - | | - | | - | | | | |
| | | | | | | | | | | | | | | | |
Land | | 1,320 | | 5,103 | | 6,423 | | 2,010 | | 5,883 | | 7,893 | | | | |
| | | | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Commercial and industrial | | 2,426 | | 1,398 | | 3,824 | | 3,119 | | 903 | | 4,022 | | | | |
| | | | | | | | | | | | | | | | |
Agriculture | | 36 | | - | | 36 | | - | | 45 | | 45 | | | | |
| | | | | | | | | | | | | | | | |
Installment loans to individuals | | 70 | | - | | 70 | | - | | - | | - | | | | |
| | | | | | | | | | | | | | | | |
Total non-PCI loans | | 5,019 | | 6,673 | | 11,692 | | 5,853 | | 7,076 | | 12,929 | | | | |
| | | | | | | | | | | | | | | | |
PCI loans (1) | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Real estate secured | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Commercial | | 226 | | - | | 226 | | - | | - | | - | | | | |
| | | | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | |
Commercial and industrial | | - | | 118 | | 118 | | - | | - | | - | | | | |
| | | | | | | | | | | | | | | | |
Total PCI loans | | 226 | | 118 | | 344 | | - | | - | | - | | | | |
| | | | | | | | | | | | | | | | |
Total TDRs | | $ | 5,245 | | $ | 6,791 | | $ | 12,036 | | $ | 5,853 | | $ | 7,076 | | $ | 12,929 | | | | |
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(1) The Company did not have any PCI loans at December 31, 2013. |
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The following tables summarize loan modifications which resulted in TDRs for non-PCI and PCI loans during the periods presented below: |
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| | For the Three Months Ended | | For the Nine Months Ended | | | | | | |
September 30, 2014 | September 30, 2014 | | | | | |
| | | | Pre-Modification | | Post-Modification | | | | Pre-Modification | | Post-Modification | | | | | | |
| | Number of | | Outstanding Recorded | | Outstanding Recorded | | Number of | | Outstanding Recorded | | Outstanding Recorded | | | | | | |
| | TDRs | | Investment | | Investment | | TDRs | | Investment | | Investment | | | | | | |
| | | | | | | | |
(dollars in thousands) | | | | | |
| | | | | | | | | | | | | | | | | | |
Non-PCI Loans | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Commercial real estate | | - | | $ | - | | $ | - | | 1 | | $ | 166 | | $ | 166 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Farmland | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Land | | 1 | | 168 | | 168 | | 3 | | 444 | | 444 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Construction | | 1 | | 367 | | 367 | | 1 | | 367 | | 367 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Commercial and industrial | | 4 | | 377 | | 377 | | 14 | | 1,604 | | 1,604 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Agriculture | | - | | - | | - | | 1 | | 662 | | 662 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Other | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Installment loans to individuals | | - | | - | | - | | 1 | | 73 | | 73 | | | | | | |
| | | | | | | | | | | | | | | | | | |
PCI Loans | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Commercial real estate | | - | | - | | - | | 1 | | 230 | | 230 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Commercial and industrial | | - | | - | | - | | 2 | | 138 | | 138 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total | | 6 | | $ | 912 | | $ | 912 | | 24 | | $ | 3,684 | | $ | 3,684 | | | | | | |
|
| | For the Three Months Ended | | For the Nine Months Ended | | | | | | |
September 30, 2013 | September 30, 2013 | | | | | |
| | | | Pre-Modification | | Post-Modification | | | | Pre-Modification | | Post-Modification | | | | | | |
| | Number of | | Outstanding Recorded | | Outstanding Recorded | | Number of | | Outstanding Recorded | | Outstanding Recorded | | | | | | |
| | TDRs | | Investment | | Investment | | TDRs | | Investment | | Investment | | | | | | |
| | | | | | | | |
(dollars in thousands) | | | | | |
| | | | | | | | | | | | | | | | | | |
Non-PCI Loans | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Commercial | | 1 | | $ | 227 | | $ | 227 | | 1 | | $ | 227 | | $ | 227 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
Commercial and industrial | | - | | - | | - | | 3 | | 91 | | 91 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Agriculture | | 1 | | 49 | | 49 | | 2 | | 67 | | 67 | | | | | | |
| | | | | | | | | | | | | | | | | | |
Total | | 2 | | $ | 276 | | $ | 276 | | 6 | | $ | 385 | | $ | 385 | | | | | | |
|
The following tables summarize loans that were modified as troubled debt restructurings within the twelve months prior to the balance sheet date, and for which there was a payment default during the periods presented below: |
|
| | For the Three Months Ended | | For the Nine Months Ended | | | | | | | | | | | | |
September 30, 2014 | September 30, 2014 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Number of | | Recorded | | Number of | | Recorded | | | | | | | | | | | | |
TDRs | Investment | TDRs | Investment | | | | | | | | | | | |
| | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | - | | $ | - | | 1 | | $ | 30 | | | | | | | | | | | | |
Total | | - | | $ | - | | 1 | | $ | 30 | | | | | | | | | | | | |
|
| | For the Three Months Ended | | | For the Nine Months Ended | | | | | | | | | | | |
September 30, 2013 | September 30, 2013 | | | | | | | | | | |
| | Number of | | Recorded | | | Number of | | Recorded | | | | | | | | | | | |
TDRs | Investment | TDRs | Investment | | | | | | | | | | |
| | (dollars in thousands) | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | | | | | | |
Residential 1 to 4 family | | - | | $ | - | | | 1 | | $ | 97 | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | - | | - | | | 3 | | 843 | | | | | | | | | | | |
Agriculture | | 1 | | 18 | | | 1 | | 18 | | | | | | | | | | | |
Total | | 1 | | $ | 18 | | | 5 | | $ | 958 | | | | | | | | | | | |
|
Credit Quality |
|
The following tables stratify loans held for investment by the Company’s internal risk grading system: |
|
| | September 30, 2014 | | | | | | | |
| | Credit Risk Grades | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
Special | | | | | | |
| | | | | | |
| | Pass | | Mention | | Substandard | | Doubtful | | Total | | | | | | | |
| | (dollars in thousands) | | | | | | | |
Non-PCI loans | | | | | | | | | | | | | | | | | |
Real estate secured | | | | | | | | | | | | | | | | | |
Multi-family residential | | $ | 75,627 | | $ | - | | $ | 1,194 | | $ | - | | $ | 76,821 | | | | | | | |
Residential 1 to 4 family | | 119,613 | | 202 | | 685 | | - | | 120,500 | | | | | | | |
Home equity lines of credit | | 37,539 | | - | | 347 | | - | | 37,886 | | | | | | | |
Commercial | | 549,595 | | 11,890 | | 16,154 | | - | | 577,639 | | | | | | | |
Farmland | | 88,030 | | 2,680 | | 1,582 | | - | | 92,292 | | | | | | | |
Land | | 17,197 | | - | | 6,566 | | - | | 23,763 | | | | | | | |
Construction | | 17,467 | | 378 | | - | | - | | 17,845 | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | |
Commercial and industrial | | 133,940 | | 995 | | 6,984 | | 157 | | 142,076 | | | | | | | |
Agriculture | | 41,609 | | 456 | | 722 | | - | | 42,787 | | | | | | | |
Other | | 20 | | - | | - | | - | | 20 | | | | | | | |
Installment loans to individuals | | 8,090 | | - | | 108 | | - | | 8,198 | | | | | | | |
Overdrafts | | 400 | | - | | - | | - | | 400 | | | | | | | |
Total non-PCI loans | | 1,089,127 | | 16,601 | | 34,342 | | 157 | | 1,140,227 | | | | | | | |
PCI loans | | | | | | | | | | | | | | | | | |
Real estate secured | | | | | | | | | | | | | | | | | |
Multi-family residential | | - | | - | | - | | - | | - | | | | | | | |
Residential 1 to 4 family | | - | | - | | 561 | | - | | 561 | | | | | | | |
Home equity lines of credit | | - | | - | | 81 | | - | | 81 | | | | | | | |
Commercial | | 127 | | - | | 4,834 | | - | | 4,961 | | | | | | | |
Farmland | | - | | - | | 1,673 | | - | | 1,673 | | | | | | | |
Land | | 310 | | - | | 561 | | - | | 871 | | | | | | | |
Construction | | - | | - | | - | | - | | - | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | |
Commercial and industrial | | 41 | | 102 | | 1,546 | | 96 | | 1,785 | | | | | | | |
Agriculture | | - | | - | | 1,417 | | - | | 1,417 | | | | | | | |
Other | | - | | - | | - | | - | | - | | | | | | | |
Installment loans to individuals | | - | | - | | - | | - | | - | | | | | | | |
Total PCI loans | | 478 | | 102 | | 10,673 | | 96 | | 11,349 | | | | | | | |
Total loans held for investment | | $ | 1,089,605 | | $ | 16,703 | | $ | 45,015 | | $ | 253 | | $ | 1,151,576 | | | | | | | |
|
| | December 31, 2013 | | | | | | | |
| | | | Total | | | | | | | |
Credit Risk Grades | | | | | | |
| | | | | | | | | | Non-PCI | | | | | | | |
Special | | | | | | |
| | | | | | |
| | Pass | | Mention | | Substandard | | Doubtful | | Loans | | | | | | | |
| | (dollars in thousands) | | | | | | | |
Non-PCI loans | | | | | | | | | | | | | | | | | |
Real estate secured | | | | | | | | | | | | | | | | | |
Multi-family residential | | $ | 30,560 | | $ | - | | $ | 580 | | $ | - | | $ | 31,140 | | | | | | | |
Residential 1 to 4 family | | 87,350 | | 490 | | 1,064 | | - | | 88,904 | | | | | | | |
Home equity lines of credit | | 31,021 | | - | | 157 | | - | | 31,178 | | | | | | | |
Commercial | | 414,058 | | 3,574 | | 14,571 | | - | | 432,203 | | | | | | | |
Farmland | | 47,988 | | 975 | | 1,451 | | - | | 50,414 | | | | | | | |
Land | | 15,244 | | 862 | | 8,417 | | - | | 24,523 | | | | | | | |
Construction | | 13,699 | | - | | - | | - | | 13,699 | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | |
Commercial and industrial | | 105,991 | | 5,276 | | 7,854 | | - | | 119,121 | | | | | | | |
Agriculture | | 31,279 | | 196 | | 1,211 | | - | | 32,686 | | | | | | | |
Other | | 38 | | - | | - | | - | | 38 | | | | | | | |
Installment loans to individuals | | 3,050 | | 10 | | 186 | | - | | 3,246 | | | | | | | |
Overdrafts | | 332 | | - | | - | | - | | 332 | | | | | | | |
Total loans held for investment | | $ | 780,610 | | $ | 11,383 | | $ | 35,491 | | $ | - | | $ | 827,484 | | | | | | | |
|
|
The Company did not have any PCI loans as of December 31, 2013. |
|
Aging of Loans Held for Investment |
|
The following tables summarize the aging of loans held for investment as of the dates indicated below: |
|
| | September 30, 2014 | | | | |
| | | | Days Past Due | | | | | | | | |
| | | | | | | | 90+ and Still | | Non- | | | | | | |
| | Current | | 30-59 | | 60-89 | | Accruing | | Accruing | | Total | | | | |
| | (dollars in thousands) | | | | |
Non-PCI loans | | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | | |
Multi-family residential | | $ | 76,821 | | $ | - | | $ | - | | $ | - | | $ | - | | $ | 76,821 | | | | |
Residential 1 to 4 family | | 120,403 | | - | | - | | - | | 97 | | 120,500 | | | | |
Home equity lines of credit | | 37,786 | | - | | - | | - | | 100 | | 37,886 | | | | |
Commercial | | 575,701 | | - | | - | | - | | 1,938 | | 577,639 | | | | |
Farmland | | 92,292 | | - | | - | | - | | - | | 92,292 | | | | |
Land | | 18,537 | | - | | - | | - | | 5,226 | | 23,763 | | | | |
Construction | | 17,845 | | - | | - | | - | | - | | 17,845 | | | | |
Commercial | | | | | | | | | | | | | | | | |
Commercial and industrial | | 140,254 | | 36 | | - | | - | | 1,786 | | 142,076 | | | | |
Agriculture | | 42,102 | | - | | - | | - | | 685 | | 42,787 | | | | |
Other | | 20 | | - | | - | | - | | - | | 20 | | | | |
Installment loans to individuals | | 8,152 | | - | | - | | - | | 46 | | 8,198 | | | | |
Overdrafts | | 400 | | - | | - | | - | | - | | 400 | | | | |
Total non-PCI loans | | 1,130,313 | | 36 | | - | | - | | 9,878 | | 1,140,227 | | | | |
PCI loans | | | | | | | | | | | | | | | | |
Real estate secured | | | | | | | | | | | | | | | | |
Multi-family residential | | - | | - | | - | | - | | - | | - | | | | |
Residential 1 to 4 family | | 561 | | - | | - | | - | | - | | 561 | | | | |
Home equity lines of credit | | 81 | | - | | - | | - | | - | | 81 | | | | |
Commercial | | 4,961 | | - | | - | | - | | - | | 4,961 | | | | |
Farmland | | 1,673 | | - | | - | | - | | - | | 1,673 | | | | |
Land | | 871 | | - | | - | | - | | - | | 871 | | | | |
Construction | | - | | - | | - | | - | | - | | - | | | | |
Commercial | | | | | | | | | | | | | | | | |
Commercial and industrial | | 1,389 | | - | | - | | - | | 396 | | 1,785 | | | | |
Agriculture | | 1,417 | | - | | - | | - | | - | | 1,417 | | | | |
Total PCI loans | | 10,953 | | - | | - | | - | | 396 | | 11,349 | | | | |
Total loans held for investment | | $ | 1,141,266 | | $ | 36 | | $ | - | | $ | - | | $ | 10,274 | | $ | 1,151,576 | | | | |
| | | | | | | | | | | | | | | | |
| | December 31, 2013 | | | | |
| | | | Days Past Due | | | | | | | | |
| | | | | | | | 90+ and Still | | Non- | | | | | | |
| | Current | | 30-59 | | 60-89 | | Accruing | | Accruing | | Total | | | | |
| | (dollars in thousands) | | | | |
Non-PCI loans | | | | | | | | | | | | | | | | |
Real estate secured | | | | | | | | | | | | | | | | |
Multi-family residential | | $ | 31,140 | | $ | - | | $ | - | | $ | - | | $ | - | | $ | 31,140 | | | | |
Residential 1 to 4 family | | 88,455 | | - | | - | | - | | 449 | | 88,904 | | | | |
Home equity lines of credit | | 31,178 | | - | | - | | - | | - | | 31,178 | | | | |
Commercial | | 431,531 | | - | | - | | - | | 672 | | 432,203 | | | | |
Farmland | | 50,414 | | - | | - | | - | | - | | 50,414 | | | | |
Land | | 18,613 | | - | | - | | - | | 5,910 | | 24,523 | | | | |
Construction | | 13,699 | | - | | - | | - | | - | | 13,699 | | | | |
Commercial | | | | | | | | | | | | | | | | |
Commercial and industrial | | 116,841 | | 100 | | - | | - | | 2,180 | | 119,121 | | | | |
Agriculture | | 31,897 | | - | | - | | - | | 789 | | 32,686 | | | | |
Other | | 38 | | - | | - | | - | | - | | 38 | | | | |
Installment loans to individuals | | 3,127 | | - | | 2 | | - | | 117 | | 3,246 | | | | |
Overdrafts | | 332 | | - | | - | | - | | - | | 332 | | | | |
Total loans held for investment | | $ | 817,265 | | $ | 100 | | $ | 2 | | $ | - | | $ | 10,117 | | $ | 827,484 | | | | |
|
|
The Company did not have any PCI loans as of December 31, 2013. |
|
Purchased Credit Impaired Loans |
|
As part of the merger described in Note 2. Business Combination, the Company acquired on February 28, 2014, a portfolio of loans, some of which have shown evidence of credit deterioration since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount and unpaid principal balance of those loans are as follows: |
|
| | 30-Sep-14 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | Unpaid Principal | | Carrying Amount | | | | | | | | | | | | | | | | |
Balance | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | | | | | |
Real Estate Secured | | | | | | | | | | | | | | | | | | | | |
Residential 1 to 4 family | | $ | 888 | | $ | 561 | | | | | | | | | | | | | | | | |
Home equity lines of credit | | 98 | | 81 | | | | | | | | | | | | | | | | |
Commercial | | 6,903 | | 4,961 | | | | | | | | | | | | | | | | |
Farmland | | 2,044 | | 1,673 | | | | | | | | | | | | | | | | |
Land | | 1,019 | | 871 | | | | | | | | | | | | | | | | |
Total real estate secured | | 10,952 | | 8,147 | | | | | | | | | | | | | | | | |
Commercial | | | | | | | | | | | | | | | | | | | | |
Commercial and industrial | | 2,322 | | 1,785 | | | | | | | | | | | | | | | | |
Agriculture | | 1,492 | | 1,417 | | | | | | | | | | | | | | | | |
Total commercial | | 3,814 | | 3,202 | | | | | | | | | | | | | | | | |
Total PCI loans | | $ | 14,766 | | $ | 11,349 | | | | | | | | | | | | | | | | |
|
No ALLL was recorded on purchased credit impaired loans as of September 30, 2014. Purchased credit impaired loans acquired during the nine months ended September 30, 2014 for which it was probable at acquisition that not all contractually required payments would be collected are as follows: |
|
| | 28-Feb-14 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | | | | | | | | |
Contractually required payments including interest | | $ | 19,827 | | | | | | | | | | | | | | | | | | | |
Nonaccretable difference | | (2,320 | ) | | | | | | | | | | | | | | | | | | |
Cash flows expected to be collected | | 17,507 | | | | | | | | | | | | | | | | | | | |
Accretable difference | | (4,673 | ) | | | | | | | | | | | | | | | | | | |
Fair value at acquisition | | $ | 12,834 | | | | | | | | | | | | | | | | | | | |
|
The following table summarizes the accretable yield, or income expected to be collected for PCI loans: |
|
| | Nine Months Ended | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | 30-Sep-14 | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
(dollars in thousands) | | | | | | | | | | | | | | | | | | |
Balance at January 1, 2014 | | $ | - | | | | | | | | | | | | | | | | | | | |
New loans purchased | | 4,673 | | | | | | | | | | | | | | | | | | | |
Accretion of income | | (796 | ) | | | | | | | | | | | | | | | | | | |
Reclassifications from nonaccretable difference | | 619 | | | | | | | | | | | | | | | | | | | |
Balance at September 30, 2014 | | $ | 4,496 | | | | | | | | | | | | | | | | | | | |
|
Discount accretion on PCI loans was $392 thousand and $796 thousand for the three and nine months ended September 30, 2014, respectively. |
|
Allowance for Loan and Lease Losses |
|
The following table summarizes the activity in the allowance for loan and lease losses by portfolio segment for the periods presented below: |
|
| | For the Three Months Ended September 30, 2014 | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | Balance | | Charge-offs | | Recoveries | | Provision for | | Balance | | | | | | | |
June 30, | loan losses | September 30, | | | | | | |
2014 | | 2014 | | | | | | |
| | (dollars in thousands) | | | | | | | |
Land | | $ | 2,944 | | $ | - | | $ | 8 | | $ | (727 | ) | $ | 2,225 | | | | | | | |
Other real estate secured | | 8,857 | | (10 | ) | (19 | ) | 808 | | 9,636 | | | | | | | |
Commercial | | 4,436 | | - | | 174 | | (296 | ) | 4,314 | | | | | | | |
Installment loans to individuals | | 73 | | (2 | ) | 1 | | 2 | | 74 | | | | | | | |
All other loans | | 27 | | - | | - | | 8 | | 35 | | | | | | | |
Unallocated | | 298 | | - | | - | | 205 | | 503 | | | | | | | |
Total | | $ | 16,635 | | $ | (12 | ) | $ | 164 | | $ | - | | $ | 16,787 | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | For the Nine Months Ended September 30, 2014 | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | Balance | | Charge-offs | | Recoveries | | Provision for | | Balance | | | | | | | |
December 31, | loan losses | September 30, | | | | | | |
2013 | | 2014 | | | | | | |
| | (dollars in thousands) | | | | | | | |
Land | | $ | 3,402 | | $ | - | | $ | 30 | | $ | (1,207 | ) | $ | 2,225 | | | | | | | |
Other real estate secured | | 9,283 | | (1,119 | ) | 37 | | 1,435 | | 9,636 | | | | | | | |
Commercial | | 4,781 | | (650 | ) | 628 | | (445 | ) | 4,314 | | | | | | | |
Installment loans to individuals | | 99 | | (8 | ) | 10 | | (27 | ) | 74 | | | | | | | |
All other loans | | 32 | | - | | - | | 3 | | 35 | | | | | | | |
Unallocated | | 262 | | - | | - | | 241 | | 503 | | | | | | | |
Total | | $ | 17,859 | | $ | (1,777 | ) | $ | 705 | | $ | - | | $ | 16,787 | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | For the Three Months Ended September 30, 2013 | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | Balance | | Charge-offs | | Recoveries | | Provision for | | Balance | | | | | | | |
June 30, | loan losses | September 30, | | | | | | |
2013 | | 2013 | | | | | | |
| | (dollars in thousands) | | | | | | | |
Land | | $ | 4,431 | | $ | - | | $ | 11 | | $ | 189 | | $ | 4,631 | | | | | | | |
Other real estate secured | | 6,663 | | (41 | ) | 20 | | (112 | ) | 6,530 | | | | | | | |
Commercial | | 6,584 | | (736 | ) | 475 | | (197 | ) | 6,126 | | | | | | | |
Installment loans to individuals | | 100 | | (207 | ) | 12 | | 183 | | 88 | | | | | | | |
All other loans | | 31 | | - | | - | | 1 | | 32 | | | | | | | |
Unallocated | | 125 | | - | | - | | (65 | ) | 60 | | | | | | | |
Total | | $ | 17,934 | | $ | (984 | ) | $ | 518 | | $ | - | | $ | 17,468 | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | For the Nine Months Ended September 30, 2013 | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | Balance | | Charge-offs | | Recoveries | | Provision for | | Balance | | | | | | | |
December 31, | loan losses | September 30, | | | | | | |
2012 | | 2013 | | | | | | |
| | (dollars in thousands) | | | | | | | |
Land | | $ | 4,670 | | $ | (34 | ) | $ | 45 | | $ | (50 | ) | $ | 4,631 | | | | | | | |
Other real estate secured | | 7,192 | | (300 | ) | 145 | | (507 | ) | 6,530 | | | | | | | |
Commercial | | 6,154 | | (1,137 | ) | 947 | | 162 | | 6,126 | | | | | | | |
Installment loans to individuals | | 64 | | (380 | ) | 64 | | 340 | | 88 | | | | | | | |
All other loans | | 38 | | - | | - | | (6 | ) | 32 | | | | | | | |
Unallocated | | - | | - | | - | | 60 | | 60 | | | | | | | |
Total | | $ | 18,118 | | $ | (1,851 | ) | $ | 1,201 | | $ | - | | $ | 17,468 | | | | | | | |
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The following tables disaggregate the allowance for loan and lease losses and the recorded investment in loans by impairment methodology as of the dates presented below: |
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| | 30-Sep-14 | | | | |
| | Allowance for Loan and Lease Losses | | Recorded Investment in Loans | | | | |
| | Individually | | Collectively | | Loans | | Individually | | Collectively | | Loans | | | | |
Evaluated for | Evaluated for | Acquired with | Evaluated for | Evaluated for | Acquired with | | | |
Impairment | Impairment | Deteriorated | Impairment | Impairment | Deteriorated | | | |
| | Credit Quality | | | Credit Quality | | | |
| | (dollars in thousands) | | | | |
Land | | $ | 1,764 | | $ | 461 | | $ | - | | $ | 6,547 | | $ | 17,213 | | $ | 874 | | | | |
Other real estate secured | | 58 | | 9,578 | | - | | 3,331 | | 919,620 | | 7,308 | | | | |
Commercial | | 260 | | 4,054 | | - | | 4,925 | | 179,945 | | 3,215 | | | | |
Installment loans to individuals | | - | | 74 | | - | | 117 | | 8,081 | | - | | | | |
All other loans | | - | | 35 | | - | | - | | 400 | | - | | | | |
Unallocated | | - | | 503 | | - | | - | | - | | - | | | | |
Total | | $ | 2,082 | | $ | 14,705 | | $ | - | | $ | 14,920 | | $ | 1,125,259 | | $ | 11,397 | | | | |
| | | | | | | | | | | | | | | | |
| | 31-Dec-13 | | | | |
| | Allowance for Loan and Lease Losses | | Recorded Investment in Loans | | | | |
| | Individually | | Collectively | | Loans | | Individually | | Collectively | | Loans | | | | |
Evaluated for | Evaluated for | Acquired with | Evaluated for | Evaluated for | Acquired with | | | |
Impairment | Impairment | Deteriorated | Impairment | Impairment | Deteriorated | | | |
| | Credit Quality | | | Credit Quality | | | |
| | (dollars in thousands) | | | | |
Land | | $ | 2,532 | | $ | 870 | | $ | - | | $ | 7,696 | | $ | 16,827 | | $ | - | | | | |
Other real estate secured | | - | | 9,283 | | - | | 1,462 | | 646,076 | | - | | | | |
Commercial | | 623 | | 4,158 | | - | | 5,291 | | 146,554 | | - | | | | |
Installment loans to individuals | | - | | 99 | | - | | - | | 3,246 | | - | | | | |
All other loans | | - | | 32 | | - | | - | | 332 | | - | | | | |
Unallocated | | - | | 262 | | - | | - | | - | | - | | | | |
Total | | $ | 3,155 | | $ | 14,704 | | $ | - | | $ | 14,449 | | $ | 813,035 | | $ | - | | | | |
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At September 30, 2014, total gross loans of $1.2 billion in the table above include $244.9 million of loans acquired through the MISN acquisition (at fair value on the acquisition date). The loans acquired through the MISN acquisition carry no related ALLL at September 30, 2014, as the remaining un-accreted purchase discounts associated with these loans has been deemed sufficient to absorb probable credit losses associated within the acquired MISN portfolio. At September 30, 2014, legacy Heritage Oaks loans totaled $906.6 million. The ALLL as a percentage of legacy Heritage Oaks loans was 1.9% at September 30, 2014. |
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