Quarterly report pursuant to Section 13 or 15(d)

LOANS, NET (Tables)

v2.4.0.8
LOANS, NET (Tables)
 6 Months Ended
Jun. 30, 2013
Loans, Net [Abstract]  
Loan Portfolio Composition

Loan Portfolio Composition. The composition of the loan portfolio was as follows:

 

(Dollars in Thousands)   June 30, 2013   December 31, 2012
Commercial, Financial and Agricultural   $ 126,931     $ 139,850  
Real Estate - Construction     35,823       37,512  
Real Estate - Commercial Mortgage     581,501       613,625  
Real Estate - Residential(1)     308,158       321,986  
Real Estate - Home Equity     232,530       236,263  
Consumer     145,174       157,877  
Loans, Net of Unearned Income   $ 1,430,117     $ 1,507,113  

 

(1) Includes loans in process with outstanding balances of $6.5 million and $11.9 million for June 30, 2013 and December 31, 2012, respectively.
Recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans:

 

    June 30, 2013   December 31, 2012
(Dollars in Thousands)   Nonaccrual   90 + Days   Nonaccrual   90 + Days
Commercial, Financial and Agricultural   $ 537       —       $ 1,069       —    
Real Estate - Construction     1,020       —         4,071       —    
Real Estate - Commercial Mortgage     25,957       —         41,045       —    
Real Estate - Residential     8,549       231       13,429       —    
Real Estate - Home Equity     4,817       —         4,034       —    
Consumer     686       22       574       —    
Total Nonaccrual Loans   $ 41,566       253      $ 64,222       —    
Aging of the recorded investment in past due loans by class of loans

The following table presents the aging of the recorded investment in past due loans by class of loans:

 

 

 

(Dollars in Thousands)

   30-59
DPD		   60-89
DPD		   90 +
DPD		   Total
Past Due		   Total
Current		   Total
Loans
June 30, 2013                                                  
Commercial, Financial and Agricultural     $ 95     $ 19     $ —       $ 114     $ 126,279     $ 126,931  
Real Estate - Construction       —         —         —         —         34,803       35,823  
Real Estate - Commercial Mortgage       4,488       398       —         4,886       550,658       581,501  
Real Estate - Residential       1,217       559       231       2,007       297,603       308,158  
Real Estate - Home Equity       605       134       —         739       226,973       232,530  
Consumer       1,204       45       22       1,271       143,217       145,174  
Total Past Due Loans     $ 7,609     $ 1,155     $ 253     $ 9,017     $ 1,379,533     $ 1,430,117  

 

 

(Dollars in Thousands)

   30-59
DPD		   60-89
DPD		   90 +
DPD		   Total
Past Due		   Total
Current		   Total
Loans
December, 31, 2012                                                  
Commercial, Financial and Agricultural     $ 302     $ 314     $ —       $ 616     $ 138,165     $ 139,850  
Real Estate - Construction       375       —         —         375       33,066       37,512  
Real Estate - Commercial Mortgage       1,090       583       —         1,673       570,907       613,625  
Real Estate - Residential       2,788       1,199       —         3,987       304,570       321,986  
Real Estate - Home Equity       711       487       —         1,198       231,031       236,263  
Consumer       1,693       392       —         2,085       155,218       157,877  
Total Past Due Loans     $ 6,959     $ 2,975     $ —       $ 9,934     $ 1,432,957     $ 1,507,113  

 

Allowance for Loan Losses. The allowance for loan losses is a reserve established through a provision for loan losses charged to expense, which represents management’s best estimate of probable losses within the existing portfolio of loans.  Loans are charged-off to the allowance when losses are deemed to be probable and reasonably quantifiable.
Activity in the allowance for loan losses by portfolio class

The following table details the activity in the allowance for loan losses by portfolio class. 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, Financial, Agricultural   Real Estate Construction   Real Estate  Commercial Mortgage   Real Estate Residential   Real Estate Home Equity   Consumer   Unallocated   Total
Three Months Ended June 30, 2013                                                                
Beginning Balance   $ 857     $ 2,387     $ 10,998     $ 8,266     $ 3,077     $ 1,218     $ 1,000     $ 27,803  
Provision for Loan Losses     119       (34 )     (141 )     1,649       (100 )     (69 )     26       1,450  
Charge-Offs     (119 )     (110 )     (1,050 )     (1,053 )     (322 )     (351 )     —         (3,005 )
Recoveries     38       —         144       396       224       244       —         1,046  
Net Charge-Offs     (81 )     (110 )     (906 )     (657 )     (98 )     (107 )     —         (1,959 )
Ending Balance   $ 895     $ 2,243     $ 9,951     $ 9,258     $ 2,879     $ 1,042     $ 1,026     $ 27,294  
                                                                 
Six Months Ended
June 30, 2013		                                                                
Beginning Balance   $ 1,253     $ 2,856     $ 11,081     $ 8,678     $ 2,945     $ 1,327     $ 1,027     $ 29,167  
Provision for Loan Losses     (174 )     107       781       1,824       127       (144 )     (1 )     2,520  
Charge-Offs     (273 )     (720 )     (2,093 )     (1,736 )     (435 )     (647 )     —         (5,904 )
Recoveries     89       —         182       492       242       506       —         1,511  
Net Charge-Offs     (184 )     (720 )     (1,911 )     (1,244 )     (193 )     (141 )     —         (4,393 )
Ending Balance   $ 895     $ 2,243     $ 9,951     $ 9,258     $ 2,879     $ 1,042     $ 1,026     $ 27,294  
                                                                 
Three Months Ended June 30, 2012                                                                
Beginning Balance   $ 1,493     $ 1,761     $ 10,432     $ 12,225     $ 2,725     $ 1,589     $ 992     $ 31,217  
Provision for Loan Losses     (199 )     1,190       1,595       2,785       414       (50 )     8       5,743  
Charge-Offs     (57 )     (275 )     (3,519 )     (3,894 )     (425 )     (550 )     —         (8,720 )
Recoveries     83       27       42       969       116       452       —         1,689  
Net Charge-Offs     26       (248 )     (3,477 )     (2,925 )     (309 )     (98 )             (7,031 )
Ending Balance   $ 1,320     $ 2,703     $ 8,550     $ 12,085     $ 2,830     $ 1,441     $ 1,000     $ 29,929  
                                                                 
Six Months Ended
June 30, 2012		                                                                
Beginning Balance   $ 1,534     $ 1,133     $ 10,660     $ 12,518     $ 2,392     $ 1,887     $ 911     $ 31,035  
Provision for Loan Losses     (39 )     1,818       2,761       4,296       1,621       (10 )     89       10,536  
Charge-Offs     (325 )     (275 )     (5,051 )     (5,861 )     (1,317 )     (1,282 )     —         (14,111 )
Recoveries     150       27       180       1,132       134       846       —         2,469  
Net Charge-Offs     (175 )     (248 )     (4,871 )     (4,729 )     (1,183 )     (436 )     —         (11,642 )
Ending Balance   $ 1,320     $ 2,703     $ 8,550     $ 12,085     $ 2,830     $ 1,441     $ 1,000     $ 29,929  
 
Allowance for loan losses by portfolio class disaggregated on the basis

The following table details the amount of the allowance for loan losses by portfolio class disaggregated on the basis of the Company’s impairment methodology.

 

(Dollars in Thousands)

   Commercial, Financial, Agricultural   Real Estate Construction   Real Estate Commercial Mortgage   Real Estate Residential   Real Estate Home Equity   Consumer   Unallocated   Total
June 30, 2013
Period-end amount
Allocated to:		                                                                
Loans Individually Evaluated for Impairment   $ 238     $ 160     $ 6,022     $ 2,542     $ 524     $ 60     $ —       $ 9,546  
Loans Collectively Evaluated for Impairment     657       2,083       3,929       6,716       2,355       982       1,026       17,748  
Ending Balance   $ 895     $ 2,243     $ 9,951     $ 9,258     $ 2,879     $ 1,042     $ 1,026     $ 27,294  
                                                                 
December 31, 2012
Period-end amount Allocated to:		                                                                
Loans Individually Evaluated for Impairment   $ 210     $ 714     $ 6,641     $ 2,778     $ 546     $ 32     $ —       $ 10,921  
Loans Collectively Evaluated for Impairment     1,043       2,142       4,440       5,900       2,399       1,295       1,027       18,246  
Ending Balance   $ 1,253     $ 2,856     $ 11,081     $ 8,678     $ 2,945     $ 1,327     $ 1,027     $ 29,167  
                                                                 
June 30, 2012
Period-end amount Allocated to:		                                                                
Loans Individually Evaluated for Impairment   $ 86     $ 395     $ 4,227     $ 4,046     $ 1,033     $ 11     $ —       $ 9,798  
Loans Collectively Evaluated for Impairment     1,234       2,308       4,323       8,039       1,797       1,430       1,000       20,131  
Ending Balance   $ 1,320     $ 2,703     $ 8,550     $ 12,085     $ 2,830     $ 1,441     $ 1,000     $ 29,929  
Recorded investment in loans related to each balance in the allowance for loan losses

The Company’s recorded investment in loans related to each balance in the allowance for loan losses by portfolio class and disaggregated on the basis of the Company’s impairment methodology was as follows:

 

(Dollars in Thousands) 

   Commercial, Financial, Agricultural   Real Estate Construction   Real Estate  
Commercial Mortgage		   Real Estate Residential   Real Estate Home Equity   Consumer   Unallocated   Total
June 30, 2013                                
Individually Evaluated for Impairment   $ 1,955     $ 1,097     $ 61,494     $ 21,090     $ 4,124     $ 526     $ —       $ 90,286  
Collectively Evaluated for Impairment     124,976       34,726       520,007       287,068       228,406       144,648       —         1,339,831  
Total   $ 126,931     $ 35,823     $ 581,501     $ 308,158     $ 232,530     $ 145,174     $ —       $ 1,430,117  
                                                                 
December 31, 2012                                                                
Individually Evaluated for Impairment   $ 2,325     $ 4,232     $ 74,650     $ 23,030     $ 3,858     $ 687     $ —       $ 108,782  
Collectively Evaluated for Impairment     137,525       33,280       538,975       298,956       232,405       157,190       —         1,398,331  
Total   $ 139,850     $ 37,512     $ 613,625     $ 321,986     $ 236,263     $ 157,877     $ —       $ 1,507,113  
                                                                 
June 30, 2012                                                                
Individually Evaluated for Impairment   $ 1,560     $ 6,559     $ 64,399     $ 29,434     $ 3,569     $ 70     $ —       $ 105,591  
Collectively Evaluated for Impairment     135,176       40,244       541,420       316,619       239,361       160,856       —         1,433,676  
Total   $ 136,736     $ 46,803     $ 605,819     $ 346,053     $ 242,930     $ 160,926     $ —       $ 1,539,267  
 
Loans individually evaluated for impairment by class of loans

The following table presents loans individually evaluated for impairment by class of loans:

 

(Dollars in Thousands)

   Unpaid Principal Balance   Recorded Investment With No Allowance   Recorded Investment With Allowance   Related Allowance
June 30, 2013                                
Commercial, Financial and Agricultural   $ 1,955     $ 702     $ 1,253     $ 238  
Real Estate – Construction     1,097       —         1,097       160  
Real Estate - Commercial Mortgage     61,494       20,900       40,594       6,022  
Real Estate – Residential     21,090       2,134       18,956       2,542  
Real Estate - Home Equity     4,124       1,077       3,047       524  
Consumer     526       81       445       60  
Total   $ 90,286     $ 24,894     $ 65,392     $ 9,546  
 
December 31, 2012		                                
Commercial, Financial and Agricultural   $ 2,325     $ 527     $ 1,797     $ 210  
Real Estate - Construction     4,232       —         4,232       714  
Real Estate - Commercial Mortgage     74,650       22,594       52,056       6,641  
Real Estate - Residential     23,030       2,635       20,395       2,778  
Real Estate - Home Equity     3,858       890       2,968       546  
Consumer     687       123       565       32  
Total   $ 108,782     $ 26,769     $ 82,013     $ 10,921  

 
Average recorded investment and interest income recognized by class of impaired loans

The following table summarizes the average recorded investment and interest income recognized by class of impaired loans:

 

    Three Months Ended June 30,   Six Months Ended June 30,
    2013   2012   2013   2012
(Dollars in Thousands)   Average Recorded Investment   Total Interest Income   Average Recorded Investment   Total Interest Income   Average Recorded Investment   Total Interest Income   Average Recorded Investment   Total Interest Income
Commercial, Financial and Agricultural   $ 2,176       33     $ 1,684       22     $ 2,226       76     $ 1,606       42  
Real Estate - Construction     1,589       2       3,913       67       2,469       3       3,535       71  
Real Estate - Commercial Mortgage     62,267       524       66,140       689       66,395       1,065       64,003       1,170  
Real Estate - Residential     21,582       213       31,630       261       22,065       419       32,880       496  
Real Estate - Home Equity     4,096       16       3,462       37       4,017       36       3,548       62  
Consumer     587       3       58       19       620       5       107       23  
Total   $ 92,297       791     $ 106,887       1,095     $ 97,792       1,604     $ 105,679       1,864  
Risk category of loans by segment

The following table presents the risk category of loans by segment:

 

 

(Dollars in Thousands)

   Commercial, Financial, Agriculture   Real Estate   Consumer   Total Loans
June 30, 2013                                
Special Mention   $ 6,906     $ 62,831     $ 167     $ 69,904  
Substandard     5,338       143,568       2,052       150,958  
Doubtful     —         2,123       —         2,123  
Total Criticized Loans   $ 12,244     $ 208,522     $ 2,219     $ 222,985  

 

 (Dollars in Thousands)   Commercial, Financial, Agriculture   Real Estate   Consumer   Total Loans
December 31, 2012                                
Special Mention   $ 4,380     $ 54,938     $ 142     $ 59,460  
Substandard     10,863       177,277       1,624       189,764  
Doubtful     158       1,515       —         1,673  
Total Criticized Loans   $ 15,401     $ 233,730     $ 1,766     $ 250,897  

 
Loans classified as TDRs

The following table presents loans classified as TDRs:

 

    June 30, 2013   December 31, 2012
(Dollars in Thousands)   Accruing   Nonaccruing   Accruing   Nonaccruing
Commercial, Financial and Agricultural   $ 1,597     $ 149     $ 1,462     $ 508  
Real Estate - Construction     159       —         161       —    
Real Estate - Commercial Mortgage     33,705       3,949       29,870       8,425  
Real Estate - Residential     15,174       795       13,824       936  
Real Estate - Home Equity     1,618       271       1,587       —    
Consumer     476       9       570       10  
Total TDRs   $ 52,729     $ 5,173     $ 47,474     $ 9,879  

Loans classified as TDRs during the three and six months ended

Loans classified as TDRs during the three and six months ended June 30, 2013 and 2012 are presented in the table below. The modifications made during the reporting period involved either an extension of the loan term or a principal moratorium and the financial impact of these modifications was not material.

 

    Three Months Ended June 30,   Six Months Ended June 30,
    2013   2013
(Dollars in Thousands)   Number of Contracts   Pre-Modified
Recorded
Investment		   Post-Modified
Recorded
Investment		   Number of Contracts   Pre-Modified
Recorded
Investment		   Post-Modified
Recorded
Investment
Commercial, Financial and Agricultural     2     $ 268     $ 259       4     $ 294     $ 337  
Real Estate - Construction     —         —         —         —         —         —    
Real Estate - Commercial Mortgage     4       734       721       9       5,121       5,153  
Real Estate - Residential     7       804       833       10       1,176       1,214  
Real Estate - Home Equity     5       256       252       6       344       342  
Consumer     5       77       60       6       112       93  
Total TDRs     23     $ 2,139     $ 2,125       35     $ 7,047     $ 7,139  

 

 

    Three Months Ended June 30,   Six Months Ended June 30,
    2012   2012
(Dollars in Thousands)   Number of Contracts   Pre-Modified
Recorded
Investment		   Post-Modified
Recorded
Investment		   Number of Contracts   Pre-Modified
Recorded
Investment		   Post-Modified
Recorded
Investment
Commercial, Financial and Agricultural     —       $ —       $ —         4     $ 656     $ 660  
Real Estate - Construction     4       807       814       4       807       814  
Real Estate - Commercial Mortgage     14       3,979       4,049       27       8,545       8,745  
Real Estate - Residential     12       1,635       1,649       20       2,493       2,557  
Real Estate - Home Equity     —         —         —         —         —         —    
Consumer     2       19       44       2       19       44  
Total TDRs     32     $ 6,440     $ 6,556       57     $ 12,520     $ 12,820  

Loans modified as TDRs within the previous 12 months and subsequently defaulted

Loans modified as TDRs within the previous 12 months that have subsequently defaulted during the three and six months ended June 30, 2013 and 2012 are presented in the table below.

    Three Months Ended June 30,   Six Months Ended June 30,
    2013   2013
(Dollars in Thousands)   Number of
Contracts		   Post-Modified
Recorded
Investment		   Number of
Contracts		   Post-Modified
Recorded
Investment
Commercial, Financial and Agricultural     1     $ 83       1     $ 83  
Real Estate - Construction     —         —         —         —    
Real Estate - Commercial Mortgage     3       988       5       1,216  
Real Estate - Residential     1       264       2       283  
Real Estate - Home Equity     —         —         —         —    
Consumer     1       28       1       28  
Total TDRs     6     $ 1,363       9     $ 1,610  
                                 

 

         
    Three Months Ended June 30,   Six Months Ended June 30,
    2012   2012
(Dollars in Thousands)   Number of
Contracts		   Post-Modified
Recorded
Investment		   Number of
Contracts		   Post-Modified
Recorded
Investment
Commercial, Financial and Agricultural     —       $ —         —       $ —    
Real Estate - Construction     —         —         —         —    
Real Estate - Commercial Mortgage     1       910       5       2,800  
Real Estate - Residential     2       699       8       1,409  
Real Estate - Home Equity     1       21       2       178  
Consumer     —         —         —         —    
Total TDRs     4     $ 1,630       15     $ 4,387