Annual report pursuant to Section 13 and 15(d)

LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

v2.4.0.8
LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 12 Months Ended
Dec. 31, 2013
LOANS AND ALLOWANCE FOR LOAN LOSSES [Abstract]  
Loans Stated at Face Amount, Net of Unearned Income

Loans are stated at their face amount, net of unearned income, and consist of the following at December 31, 2013  and 2012 (dollars in thousands):

 

 

 

 

 

 

 

 

2013

 

2012

Commercial:

 

 

 

 

 

Commercial Construction

$
213,675 

 

$
202,344 

Commercial Real Estate - Owner Occupied

 
500,764 

 

 
513,671 

Commercial Real Estate - Non-Owner Occupied

 
755,905 

 

 
682,760 

Raw Land and Lots

 
187,529 

 

 
205,726 

Single Family Investment Real Estate

 
237,640 

 

 
233,395 

Commercial and Industrial

 
215,702 

 

 
217,661 

Other Commercial

 
52,490 

 

 
47,551 

Consumer:

 

 

 

 

 

Mortgage

 
237,414 

 

 
220,567 

Consumer Construction

 
48,984 

 

 
33,969 

Indirect Auto

 
174,843 

 

 
157,518 

Indirect Marine

 
38,633 

 

 
36,586 

HELOCs

 
281,579 

 

 
288,092 

Credit Card

 
23,211 

 

 
21,968 

Other Consumer

 
70,999 

 

 
105,039 

       Total

$
3,039,368 

 

$
2,966,847 

 

Summary of Aging of the Loan Portfolio by Class

The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2013 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-59 Days Past Due

 

60-89 Days Past Due

 

Greater Than 90 Days and still Accruing

 

Purchased Impaired (net of credit mark)

 

Nonaccrual

 

Current

 

Total Loans

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Construction

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$
1,596 

 

$
212,079 

 

$
213,675 

Commercial Real Estate - Owner Occupied

 
514 

 

 

 -

 

 
258 

 

 

 -

 

 
2,037 

 

 
497,955 

 

 
500,764 

Commercial Real Estate - Non-Owner Occupied

 
185 

 

 
42 

 

 
1,996 

 

 

 -

 

 
175 

 

 
753,507 

 

 
755,905 

Raw Land and Lots

 
922 

 

 
545 

 

 

 -

 

 
2,457 

 

 
2,560 

 

 
181,045 

 

 
187,529 

Single Family Investment Real Estate

 
1,783 

 

 
277 

 

 
563 

 

 
275 

 

 
1,689 

 

 
233,053 

 

 
237,640 

Commercial and Industrial

 
348 

 

 
152 

 

 
220 

 

 

 -

 

 
3,848 

 

 
211,134 

 

 
215,702 

Other Commercial

 
87 

 

 
1 

 

 
50 

 

 

 -

 

 
126 

 

 
52,226 

 

 
52,490 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage

 
6,779 

 

 
1,399 

 

 
1,141 

 

 

 -

 

 
2,446 

 

 
225,649 

 

 
237,414 

Consumer Construction

 

 -

 

 

 -

 

 
208 

 

 

 -

 

 

 -

 

 
48,776 

 

 
48,984 

Indirect Auto

 
2,237 

 

 
252 

 

 
349 

 

 
7 

 

 

 -

 

 
171,998 

 

 
174,843 

Indirect Marine

 
459 

 

 

 -

 

 

 -

 

 

 -

 

 
288 

 

 
37,886 

 

 
38,633 

HELOCs

 
2,124 

 

 
422 

 

 
1,190 

 

 
787 

 

 
43 

 

 
277,013 

 

 
281,579 

Credit Card

 
105 

 

 
133 

 

 
281 

 

 

 -

 

 

 -

 

 
22,692 

 

 
23,211 

Other Consumer

 
888 

 

 
124 

 

 
490 

 

 
96 

 

 
227 

 

 
69,174 

 

 
70,999 

Total

$
16,431 

 

$
3,347 

 

$
6,746 

 

$
3,622 

 

$
15,035 

 

$
2,994,187 

 

$
3,039,368 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table shows the aging of the Company’s loan portfolio, by class, at December 31, 2012 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-59 Days Past Due

 

60-89 Days Past Due

 

Greater Than 90 Days and still Accruing

 

Purchased Impaired (net of credit mark)

 

Nonaccrual

 

Current

 

Total Loans

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Construction

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$
5,781 

 

$
196,563 

 

$
202,344 

Commercial Real Estate - Owner Occupied

 
2,105 

 

 
153 

 

 
1,711 

 

 
247 

 

 
2,206 

 

 
507,249 

 

 
513,671 

Commercial Real Estate - Non-Owner Occupied

 
866 

 

 
63 

 

 
207 

 

 

 -

 

 
812 

 

 
680,812 

 

 
682,760 

Raw Land and Lots

 
277 

 

 

 -

 

 
75 

 

 
2,942 

 

 
8,760 

 

 
193,672 

 

 
205,726 

Single Family Investment Real Estate

 
1,819 

 

 
261 

 

 
756 

 

 
326 

 

 
3,420 

 

 
226,813 

 

 
233,395 

Commercial and Industrial

 
506 

 

 
270 

 

 
441 

 

 
79 

 

 
2,036 

 

 
214,329 

 

 
217,661 

Other Commercial

 
70 

 

 
182 

 

 
1 

 

 

 -

 

 
193 

 

 
47,105 

 

 
47,551 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage

 
5,610 

 

 
2,244 

 

 
3,017 

 

 

 -

 

 
747 

 

 
208,949 

 

 
220,567 

Consumer Construction

 
157 

 

 

 -

 

 

 -

 

 

 -

 

 
235 

 

 
33,577 

 

 
33,969 

Indirect Auto

 
2,504 

 

 
276 

 

 
329 

 

 
21 

 

 

 -

 

 
154,388 

 

 
157,518 

Indirect Marine

 
67 

 

 

 -

 

 
114 

 

 

 -

 

 
158 

 

 
36,247 

 

 
36,586 

HELOCs

 
3,063 

 

 
640 

 

 
1,239 

 

 
845 

 

 
1,325 

 

 
280,980 

 

 
288,092 

Credit Card

 
269 

 

 
101 

 

 
397 

 

 

 -

 

 

 -

 

 
21,201 

 

 
21,968 

Other Consumer

 
1,525 

 

 
487 

 

 
556 

 

 
105 

 

 
533 

 

 
101,833 

 

 
105,039 

Total

$
18,838 

 

$
4,677 

 

$
8,843 

 

$
4,565 

 

$
26,206 

 

$
2,903,718 

 

$
2,966,847 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchased Impaired Commercial and Consumer Loan Portfolios by Class

The following table shows purchased impaired commercial and consumer loan portfolios, by class and their delinquency status, at December 31, 2013 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-89 Days Past Due

 

Greater than 90 Days

 

Current

 

Total

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Raw Land and Lots

$

 -

 

$

 -

 

$
2,457 

 

$
2,457 

Single Family Investment Real Estate

 

 -

 

 

 -

 

 
275 

 

 
275 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

Indirect Auto

 

 -

 

 

 -

 

 
7 

 

 
7 

HELOCs

 

 -

 

 
31 

 

 
756 

 

 
787 

Other Consumer

 
40 

 

 

 -

 

 
56 

 

 
96 

Total

$
40 

 

$
31 

 

$
3,551 

 

$
3,622 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table shows purchased impaired commercial and consumer loan portfolios, by class and their delinquency status, at December 31, 2012 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30-89 Days Past Due

 

Greater than 90 Days

 

Current

 

Total

Commercial:

 

 

 

 

 

 

 

 

 

 

 

Commercial Real Estate - Owner Occupied

$

 -

 

$
193 

 

$
54 

 

$
247 

Raw Land and Lots

 

 -

 

 
81 

 

 
2,861 

 

 
2,942 

Single Family Investment Real Estate

 

 -

 

 
14 

 

 
312 

 

 
326 

Commercial and Industrial

 

 -

 

 
79 

 

 

 -

 

 
79 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

Indirect Auto

 
3 

 

 
2 

 

 
16 

 

 
21 

HELOCs

 

 -

 

 
51 

 

 
794 

 

 
845 

Other Consumer

 

 -

 

 

 -

 

 
105 

 

 
105 

Total

$
3 

 

$
420 

 

$
4,142 

 

$
4,565 

 

Impaired Loans by Class

The following table shows the Company’s impaired loans, by class, at December 31, 2013 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded Investment

 

Unpaid Principal Balance

 

Related Allowance

 

YTD Average Investment

 

Interest Income Recognized

Loans without a specific allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Construction

$
10,520 

 

$
10,523 

 

$

 -

 

$
9,073 

 

$
282 

Commercial Real Estate - Owner Occupied

 
4,281 

 

 
4,648 

 

 

 -

 

 
4,845 

 

 
206 

Commercial Real Estate - Non-Owner Occupied

 
15,012 

 

 
15,100 

 

 

 -

 

 
15,288 

 

 
572 

Raw Land and Lots

 
52,259 

 

 
52,551 

 

 

 -

 

 
61,606 

 

 
2,024 

Single Family Investment Real Estate

 
5,520 

 

 
6,021 

 

 

 -

 

 
6,396 

 

 
261 

Commercial and Industrial

 
4,035 

 

 
6,835 

 

 

 -

 

 
7,083 

 

 
195 

Other Commercial

 
55 

 

 
134 

 

 

 -

 

 
134 

 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage

 
1,361 

 

 
1,361 

 

 

 -

 

 
1,374 

 

 
60 

Indirect Auto

 
11 

 

 
19 

 

 

 -

 

 
26 

 

 

 -

Indirect Marine

 
495 

 

 
874 

 

 

 -

 

 
887 

 

 
42 

HELOCs

 
1,604 

 

 
1,755 

 

 

 -

 

 
1,921 

 

 
11 

Other Consumer

 
162 

 

 
211 

 

 

 -

 

 
214 

 

 

 -

Total impaired loans without a specific allowance

$
95,315 

 

$
100,032 

 

$

 -

 

$
108,847 

 

$
3,653 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans with a specific allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Construction

$
357 

 

$
692 

 

$
135 

 

$
1,136 

 

$
9 

Commercial Real Estate - Owner Occupied

 
3,797 

 

 
3,937 

 

 
284 

 

 
4,000 

 

 
181 

Commercial Real Estate - Non-Owner Occupied

 
549 

 

 
597 

 

 
76 

 

 
616 

 

 
40 

Raw Land and Lots

 
1,875 

 

 
1,905 

 

 
83 

 

 
1,985 

 

 
101 

Single Family Investment Real Estate

 
3,389 

 

 
3,676 

 

 
335 

 

 
3,894 

 

 
114 

Commercial and Industrial

 
2,722 

 

 
3,086 

 

 
204 

 

 
3,214 

 

 
84 

Other Commercial

 
255 

 

 
269 

 

 
35 

 

 
254 

 

 
6 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage

 
4,041 

 

 
4,147 

 

 
660 

 

 
4,183 

 

 
123 

Other Consumer

 
321 

 

 
343 

 

 
151 

 

 
350 

 

 
10 

Total impaired loans with a specific allowance

$
17,306 

 

$
18,652 

 

$
1,963 

 

$
19,632 

 

$
668 

Total impaired loans

$
112,621 

 

$
118,684 

 

$
1,963 

 

$
128,479 

 

$
4,321 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table shows the Company’s impaired loans, by class, at December 31, 2012 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recorded Investment

 

Unpaid Principal Balance

 

Related Allowance

 

YTD Average Investment

 

Interest Income Recognized

Loans without a specific allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Construction

$
28,212 

 

$
28,696 

 

$

 -

 

$
28,925 

 

$
1,237 

Commercial Real Estate - Owner Occupied

 
13,573 

 

 
13,665 

 

 

 -

 

 
14,579 

 

 
787 

Commercial Real Estate - Non-Owner Occupied

 
14,319 

 

 
14,398 

 

 

 -

 

 
15,482 

 

 
790 

Raw Land and Lots

 
40,421 

 

 
40,485 

 

 

 -

 

 
43,162 

 

 
1,538 

Single Family Investment Real Estate

 
5,487 

 

 
6,185 

 

 

 -

 

 
7,031 

 

 
253 

Commercial and Industrial

 
2,201 

 

 
2,232 

 

 

 -

 

 
2,757 

 

 
154 

Other Commercial

 
189 

 

 
189 

 

 

 -

 

 
191 

 

 
11 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage

 
857 

 

 
857 

 

 

 -

 

 
892 

 

 
43 

Indirect Auto

 
35 

 

 
42 

 

 

 -

 

 
56 

 

 

 -

Indirect Marine

 
158 

 

 
283 

 

 

 -

 

 
283 

 

 
3 

HELOCs

 
1,592 

 

 
1,748 

 

 

 -

 

 
1,802 

 

 
6 

Other Consumer

 
286 

 

 
329 

 

 

 -

 

 
332 

 

 

 -

Total impaired loans without a specific allowance

$
107,330 

 

$
109,109 

 

$

 -

 

$
115,492 

 

$
4,822 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans with a specific allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Construction

$
4,057 

 

$
4,104 

 

$
643 

 

$
4,914 

 

$
177 

Commercial Real Estate - Owner Occupied

 
4,100 

 

 
4,239 

 

 
921 

 

 
4,300 

 

 
124 

Commercial Real Estate - Non-Owner Occupied

 
15,084 

 

 
15,121 

 

 
848 

 

 
15,209 

 

 
851 

Raw Land and Lots

 
10,715 

 

 
10,953 

 

 
2,472 

 

 
11,741 

 

 
190 

Single Family Investment Real Estate

 
3,341 

 

 
3,437 

 

 
711 

 

 
3,643 

 

 
147 

Commercial and Industrial

 
4,511 

 

 
4,728 

 

 
1,000 

 

 
4,938 

 

 
110 

Other Commercial

 
714 

 

 
722 

 

 
153 

 

 
686 

 

 
33 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage

 
2,801 

 

 
2,805 

 

 
545 

 

 
2,851 

 

 
72 

Consumer Construction

 
235 

 

 
262 

 

 
106 

 

 
230 

 

 

 -

HELOCs

 
1,620 

 

 
1,687 

 

 
952 

 

 
1,897 

 

 
27 

Other Consumer

 
867 

 

 
910 

 

 
273 

 

 
916 

 

 
17 

Total impaired loans with a specific allowance

$
48,045 

 

$
48,968 

 

$
8,624 

 

$
51,325 

 

$
1,748 

Total impaired loans

$
155,375 

 

$
158,077 

 

$
8,624 

 

$
166,817 

 

$
6,570 

 

Summary of Modified Loans that Continue to Accrue Interest Under the Terms of Restructuring Agreement

The following table provides a summary, by class, of modified loans that continue to accrue interest under the terms of the restructuring agreement, which are considered to be performing, and modified loans that have been placed in nonaccrual status, which are considered to be nonperforming, as of December 31, 2013 and 2012 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

December 31, 2012

 

No. of Loans

 

Recorded Investment

 

Outstanding Commitment

 

No. of Loans

 

Recorded Investment

 

Outstanding Commitment

Performing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Construction
1 

 

$
684 

 

$

 -

 
5 

 

$
4,549 

 

$
73 

Commercial Real Estate - Owner Occupied
4 

 

 
2,278 

 

 

 -

 
11 

 

 
6,009 

 

 

 -

Commercial Real Estate - Non-Owner Occupied
6 

 

 
3,771 

 

 

 -

 
10 

 

 
13,103 

 

 

 -

Raw Land and Lots
15 

 

 
20,741 

 

 

 -

 
13 

 

 
22,886 

 

 

 -

Single Family Investment Real Estate
13 

 

 
3,497 

 

 

 -

 
6 

 

 
928 

 

 

 -

Commercial and Industrial
7 

 

 
1,125 

 

 

 -

 
5 

 

 
1,041 

 

 

 -

Other Commercial

 -

 

 

 -

 

 

 -

 
1 

 

 
236 

 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage
10 

 

 
2,318 

 

 

 -

 
12 

 

 
2,256 

 

 

 -

Other Consumer
3 

 

 
106 

 

 

 -

 
4 

 

 
460 

 

 

 -

Total performing
59 

 

$
34,520 

 

$

 -

 
67 

 

$
51,468 

 

$
73 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial Construction
3 

 

$
947 

 

$

 -

 
4 

 

 
4,260 

 

 

 -

Commercial Real Estate - Owner Occupied
3 

 

 
283 

 

 

 -

 
3 

 

 
1,079 

 

 

 -

Commercial Real Estate - Non-Owner Occupied

 -

 

 

 -

 

 

 -

 
2 

 

 
514 

 

 

 -

Raw Land and Lots
2 

 

 
3,973 

 

 

 -

 
2 

 

 
4,032 

 

 

 -

Single Family Investment Real Estate
1 

 

 
50 

 

 

 -

 
2 

 

 
427 

 

 

 -

Commercial and Industrial
8 

 

 
1,195 

 

 

 -

 
7 

 

 
1,251 

 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage
2 

 

 
794 

 

 

 -

 
1 

 

 
202 

 

 

 -

Indirect Marine

 -

 

 

 -

 

 

 -

 
1 

 

 
158 

 

 

 -

Other Consumer
1 

 

 
62 

 

 

 -

 
1 

 

 
68 

 

 

 -

Total nonperforming
20 

 

$
7,304 

 

$

 -

 
23 

 

$
11,991 

 

$

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total performing and nonperforming
79 

 

$
41,824 

 

$

 -

 
90 

 

$
63,459 

 

$
73 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of TDR by Class and Modification Type

The following table shows, by class and modification type, TDRs that occurred during the year ended December 31, 2013 as well as TDRs that had a payment default during 2013 that had been restructured during the twelve month period preceding the default (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructurings with

 

All Restructurings

 

payment default

 

No. of Loans

 

Recorded investment at period end

 

No. of Loans

 

Recorded investment at period end

Modified to interest only, at a market rate

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Raw Land and Lots
1 

 

$
43 

 
1 

 

$
43 

Consumer:

 

 

 

 

 

 

 

 

 

Mortgage
2 

 

 
730 

 

 -

 

 

 -

       Total interest only at market rate of interest
3 

 

$
773 

 
1 

 

$
43 

 

 

 

 

 

 

 

 

 

 

Term modification, at a market rate

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Commercial Construction
2 

 

$
697 

 

 -

 

$

 -

Commercial Real Estate - Owner Occupied
2 

 

 
1,085 

 

 -

 

 

 -

Commercial Real Estate - Non-Owner Occupied
1 

 

 
745 

 

 -

 

 

 -

Raw Land and Lots
3 

 

 
378 

 

 -

 

 

 -

Single Family Investment Real Estate
7 

 

 
2,488 

 

 -

 

 

 -

Commercial and Industrial
5 

 

 
649 

 

 -

 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

Mortgage
3 

 

 
707 

 

 -

 

 

 -

Other Consumer
1 

 

 
34 

 

 -

 

 

 -

Total loan term extended at a market rate
24 

 

$
6,783 

 

 -

 

$

 -

 

 

 

 

 

 

 

 

 

 

Term modification, below market rate

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Commercial Real Estate - Owner Occupied
1 

 

$
115 

 

 -

 

$

 -

Commercial and Industrial
1 

 

 
8 

 

 -

 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

Mortgage
1 

 

 
154 

 

 -

 

 

 -

Total loan term extended at a below market rate
3 

 

$
277 

 

 -

 

$

 -

Total
30 

 

$
7,833 

 
1 

 

$
43 

 

 

 

 

 

 

 

 

 

 

 

The following table shows, by class and modification type, TDRs that occurred during the year ended December 31, 2012 as well as TDRs that had a payment default during 2012 that had been restructured during the twelve month period preceding the default (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restructurings with

 

All Restructurings

 

payment default

 

No. of Loans

 

Recorded investment at period end

 

No. of Loans

 

Recorded investment at period end

Modified to interest only, at a market rate

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Commercial Real Estate - Owner Occupied
1 

 

$
216 

 

 -

 

$

 -

Commercial Real Estate - Non-Owner Occupied
2 

 

 
759 

 

 -

 

 

 -

Raw Land and Lots
3 

 

 
257 

 

 -

 

 

 -

Single Family Investment Real Estate
2 

 

 
173 

 

 -

 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

Mortgage
1 

 

 
124 

 

 -

 

 

 -

Indirect Marine
1 

 

 
158 

 
1 

 

 
158 

       Total interest only at market rate of interest
10 

 

$
1,687 

 
1 

 

$
158 

 

 

 

 

 

 

 

 

 

 

Term modification, at a market rate

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Commercial Real Estate - Owner Occupied
5 

 

$
5,328 

 
2 

 

$
1,356 

Commercial Real Estate - Non-Owner Occupied
2 

 

 
715 

 

 -

 

 

 -

Raw Land and Lots
1 

 

 
595 

 

 -

 

 

 -

Commercial and Industrial
6 

 

 
408 

 

 -

 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

Mortgage
5 

 

 
858 

 

 -

 

 

 -

Indirect Marine

 -

 

 

 -

 
1 

 

 
26 

Other Consumer
4 

 

 
460 

 

 -

 

 

 -

Total loan term extended at a market rate
23 

 

$
8,364 

 
3 

 

$
1,382 

 

 

 

 

 

 

 

 

 

 

Term modification, below market rate

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Commercial Real Estate - Owner Occupied
4 

 

$
647 

 

 -

 

$

 -

Raw Land and Lots
1 

 

 
59 

 

 -

 

 

 -

Consumer:

 

 

 

 

 

 

 

 

 

Mortgage
1 

 

 
64 

 

 -

 

 

 -

Other Consumer
1 

 

 
68 

 

 -

 

 

 -

Total loan term extended at a below market rate
7 

 

$
838 

 

 -

 

$

 -

 

 

 

 

 

 

 

 

 

 

Interest rate modification, below market rate

 

 

 

 

 

 

 

 

 

Commercial:

 

 

 

 

 

 

 

 

 

Commercial Real Estate - Non-Owner Occupied
2 

 

$
2,390 

 

 -

 

$

 -

       Total interest only at below market rate of interest
2 

 

$
2,390 

 

 -

 

$

 -

Total
42 

 

$
13,279 

 
4 

 

$
1,540 

 

 

 

 

 

 

 

 

 

 

 

Allowance for Loan Loss Activity, by Portfolio Segment, Balances for Allowance for Credit Losses, and Loans Based on Impairment Methodology

The following table shows the allowance for loan loss activity, balances for allowance for credit losses, and loans based on impairment methodology by portfolio segment for the year ended December 31, 2013.  Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

Consumer

 

Unallocated

 

Total

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of the year

 

$
24,821 

 

$
10,107 

 

$
(12)

 

$
34,916 

    Recoveries credited to allowance

 

 
1,496 

 

 
1,285 

 

 

 -

 

 
2,781 

    Loans charged off

 

 
(8,534)

 

 
(5,084)

 

 

 -

 

 
(13,618)

    Provision charged to operations

 

 
2,073 

 

 
3,919 

 

 
64 

 

 
6,056 

Balance, end of period

 

$
19,856 

 

$
10,227 

 

$
52 

 

$
30,135 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance, ALL:

 

 

 

 

 

 

 

 

 

 

 

 

Loans individually evaluated for impairment

 

$
1,152 

 

$
811 

 

$

 -

 

$
1,963 

Loans collectively evaluated for impairment

 

 
18,704 

 

 
9,416 

 

 
52 

 

 
28,172 

Loans acquired with deteriorated credit quality

 

 

 -

 

 

 -

 

 

 -

 

 

 -

    Total

 

$
19,856 

 

$
10,227 

 

$
52 

 

$
30,135 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance, Loans:

 

 

 

 

 

 

 

 

 

 

 

 

Loans individually evaluated for impairment

 

$
101,894 

 

$
7,105 

 

$

 -

 

$
108,999 

Loans collectively evaluated for impairment

 

 
2,059,079 

 

 
867,668 

 

 

 -

 

 
2,926,747 

Loans acquired with deteriorated credit quality

 

 
2,732 

 

 
890 

 

 

 -

 

 
3,622 

    Total

 

$
2,163,705 

 

$
875,663 

 

$

 -

 

$
3,039,368 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table shows the allowance for loan loss activity, balances for allowance for credit losses, and loans based on impairment methodology by portfolio segment for the year ended December 31, 2012.  Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

Consumer

 

Unallocated

 

Total

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of the year

 

$
27,891 

 

$
11,498 

 

$
81 

 

$
39,470 

    Recoveries credited to allowance

 

 
589 

 

 
1,122 

 

 

 -

 

 
1,711 

    Loans charged off

 

 
(12,852)

 

 
(5,613)

 

 

 -

 

 
(18,465)

    Provision charged to operations

 

 
9,193 

 

 
3,100 

 

 
(93)

 

 
12,200 

Balance, end of period

 

$
24,821 

 

$
10,107 

 

$
(12)

 

$
34,916 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance, ALL:

 

 

 

 

 

 

 

 

 

 

 

 

Loans individually evaluated for impairment

 

$
6,626 

 

$
1,876 

 

$

 -

 

$
8,502 

Loans collectively evaluated for impairment

 

 
18,073 

 

 
8,231 

 

 
(12)

 

 
26,292 

Loans acquired with deteriorated credit quality

 

 
122 

 

 

 -

 

 

 -

 

 
122 

    Total

 

$
24,821 

 

$
10,107 

 

$
(12)

 

$
34,916 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance, Loans:

 

 

 

 

 

 

 

 

 

 

 

 

Loans individually evaluated for impairment

 

$
143,330 

 

$
7,480 

 

$

 -

 

$
150,810 

Loans collectively evaluated for impairment

 

 
1,956,184 

 

 
855,288 

 

 

 -

 

 
2,811,472 

Loans acquired with deteriorated credit quality

 

 
3,594 

 

 
971 

 

 

 -

 

 
4,565 

    Total

 

$
2,103,108 

 

$
863,739 

 

$

 -

 

$
2,966,847 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table shows the allowance for loan loss activity, balances for allowance for credit losses, and loans based on impairment methodology by portfolio segment for the year ended December 31, 2011.  Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

Consumer

 

Unallocated

 

Total

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

Balance, beginning of the year

 

$
28,255 

 

$
10,189 

 

$
(38)

 

$
38,406 

    Recoveries credited to allowance

 

 
924 

 

 
1,206 

 

 

 -

 

 
2,130 

    Loans charged off

 

 
(10,891)

 

 
(6,975)

 

 

 -

 

 
(17,866)

    Provision charged to operations

 

 
9,603 

 

 
7,078 

 

 
119 

 

 
16,800 

Balance, end of period

 

$
27,891 

 

$
11,498 

 

$
81 

 

$
39,470 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance, ALL:

 

 

 

 

 

 

 

 

 

 

 

 

Loans individually evaluated for impairment

 

$
10,127 

 

$
1,278 

 

$

 -

 

$
11,405 

Loans collectively evaluated for impairment

 

 
17,679 

 

 
10,220 

 

 
81 

 

 
27,980 

Loans acquired with deteriorated credit quality

 

 
85 

 

 

 -

 

 

 -

 

 
85 

    Total

 

$
27,891 

 

$
11,498 

 

$
81 

 

$
39,470 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balance, Loans:

 

 

 

 

 

 

 

 

 

 

 

 

Loans individually evaluated for impairment

 

$
239,853 

 

$
5,334 

 

$

 -

 

$
245,187 

Loans collectively evaluated for impairment

 

 
1,707,560 

 

 
855,939 

 

 

 -

 

 
2,563,499 

Loans acquired with deteriorated credit quality

 

 
8,828 

 

 
1,069 

 

 

 -

 

 
9,897 

    Total

 

$
1,956,241 

 

$
862,342 

 

$

 -

 

$
2,818,583 

 

Loans Receivables Related Risk Rating Excluding Purchased Impaired Loans

 

The following table shows all loans, excluding purchased impaired loans, in the commercial portfolios by class with their related risk rating current as of December 31, 2013 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-3

 

4

 

5

 

6

 

7

 

8

 

Total

Commercial Construction

$
24,399 

 

$
148,251 

 

$
20,370 

 

$
13,772 

 

$
6,883 

 

$

 -

 

$
213,675 

Commercial Real Estate - Owner Occupied

 
149,632 

 

 
324,394 

 

 
10,017 

 

 
10,926 

 

 
5,795 

 

 

 -

 

 
500,764 

Commercial Real Estate - Non-Owner Occupied

 
224,702 

 

 
453,279 

 

 
21,953 

 

 
46,084 

 

 
9,887 

 

 

 -

 

 
755,905 

Raw Land and Lots

 
8,648 

 

 
98,927 

 

 
14,132 

 

 
16,439 

 

 
46,926 

 

 

 -

 

 
185,072 

Single Family Investment Real Estate

 
38,327 

 

 
168,564 

 

 
12,302 

 

 
11,522 

 

 
6,650 

 

 

 -

 

 
237,365 

Commercial and Industrial

 
68,748 

 

 
123,585 

 

 
8,254 

 

 
8,752 

 

 
3,822 

 

 
2,541 

 

 
215,702 

Other Commercial

 
18,593 

 

 
23,160 

 

 
8,529 

 

 
1,897 

 

 
311 

 

 

 -

 

 
52,490 

Total

$
533,049 

 

$
1,340,160 

 

$
95,557 

 

$
109,392 

 

$
80,274 

 

$
2,541 

 

$
2,160,973 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table shows all loans, excluding purchased impaired loans, in the commercial portfolios by class with their related risk rating current as of December 31, 2012 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-3

 

4

 

5

 

6

 

7

 

8

 

Total

Commercial Construction

$
5,504 

 

$
117,769 

 

$
14,637 

 

$
33,815 

 

$
30,619 

 

$

 -

 

$
202,344 

Commercial Real Estate - Owner Occupied

 
145,977 

 

 
321,486 

 

 
15,197 

 

 
19,051 

 

 
11,713 

 

 

 -

 

 
513,424 

Commercial Real Estate - Non-Owner Occupied

 
161,343 

 

 
417,412 

 

 
48,840 

 

 
34,646 

 

 
20,519 

 

 

 -

 

 
682,760 

Raw Land and Lots

 
3,943 

 

 
114,053 

 

 
13,260 

 

 
29,194 

 

 
42,148 

 

 
186 

 

 
202,784 

Single Family Investment Real Estate

 
43,705 

 

 
156,636 

 

 
12,111 

 

 
13,150 

 

 
7,467 

 

 

 -

 

 
233,069 

Commercial and Industrial

 
68,308 

 

 
120,442 

 

 
10,584 

 

 
12,064 

 

 
6,045 

 

 
139 

 

 
217,582 

Other Commercial

 
14,189 

 

 
18,260 

 

 
10,710 

 

 
3,489 

 

 
844 

 

 
59 

 

 
47,551 

Total

$
442,969 

 

$
1,266,058 

 

$
125,339 

 

$
145,409 

 

$
119,355 

 

$
384 

 

$
2,099,514 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans Receivables Related Risk Rating Including Purchased Impaired Loans

The following table shows only purchased impaired loans in the commercial portfolios by class with their related risk rating and credit quality indicator information current as of December 31, 2013 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

5

 

6

 

7

 

8

 

Total

Raw Land and Lots

$

 -

 

$
653 

 

$

 -

 

$
1,804 

 

$

 -

 

$
2,457 

Single Family Investment Real Estate

 
275 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 
275 

Total

$
275 

 

$
653 

 

$

 -

 

$
1,804 

 

$

 -

 

$
2,732 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The following table shows only purchased impaired loans in the commercial portfolios by class with their related risk rating and credit quality indicator information current as of December 31, 2012 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

6

 

7

 

8

 

Total

Commercial Real Estate - Owner Occupied

$

 -

 

$

 -

 

$
247 

 

$

 -

 

$
247 

Raw Land and Lots

 

 -

 

 

 -

 

 
2,942 

 

 

 -

 

 
2,942 

Single Family Investment Real Estate

 
312 

 

 

 -

 

 
14 

 

 

 -

 

 
326 

Commercial and Industrial

 

 -

 

 

 -

 

 
79 

 

 

 -

 

 
79 

Total

$
312 

 

$

 -

 

$
3,282 

 

$

 -

 

$
3,594 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Acquired Loan Portfolio and Accretable Yield

 

The following shows changes in the Company’s acquired impaired loan portfolio and accretable yield for ASC 310-30 loans and the acquired performing loan portfolio and remaining discount for ASC 310-20 loans for the years ended December 31, 2013 and 2012 (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

December 31, 2012

 

ASC 310-30 Loans

 

ASC 310-20 Loans

 

ASC 310-30 Loans

 

ASC 310-20 Loans

 

Accretable Yield

 

Carrying Amount of Loans

 

Remaining Discount

 

Carrying Amount of Loans

 

Accretable Yield

 

Carrying Amount of Loans

 

Remaining Discount

 

Carrying Amount of Loans

Balance at beginning of period

$
3,147 

 

$
4,565 

 

$
5,350 

 

$
473,283 

 

$
5,140 

 

$
9,897 

 

$
9,010 

 

$
663,510 

Additions

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 

 -

Accretion

 
(55)

 

 

 -

 

 
(2,009)

 

 

 -

 

 
(353)

 

 

 -

 

 
(3,660)

 

 

 -

Charge-offs

 
(112)

 

 
(96)

 

 

 -

 

 
(1,774)

 

 
(1,640)

 

 
(412)

 

 

 -

 

 
(2,320)

Transfers to OREO

 

 -

 

 
(201)

 

 

 -

 

 
(207)

 

 

 -

 

 
(2,371)

 

 

 -

 

 
(2,895)

Payments received, net

 

 -

 

 
(646)

 

 

 -

 

 
(96,806)

 

 

 -

 

 
(2,549)

 

 

 -

 

 
(185,012)

Balance at end of period

$
2,980 

 

$
3,622 

 

$
3,341 

 

$
374,496 

 

$
3,147 

 

$
4,565 

 

$
5,350 

 

$
473,283