| ALLOWANCE FOR LOAN LOSSES |
NOTE 4 - ALLOWANCE FOR LOAN LOSSES
An analysis of the changes in the allowance for loan losses for the three month periods ended September 30 was as follows:
(Dollars in Thousands) |
2011 |
|
|
2010 |
|
Balance, Beginning of Year |
$ |
35,436 |
|
|
$ |
43,999 |
|
Provision for Loan Losses |
|
11,396 |
|
|
|
20,041 |
|
Recoveries on Loans Previously Charged-Off |
|
2,077 |
|
|
|
2,653 |
|
Loans Charged-Off |
|
(19,251 |
) |
|
|
(28,973 |
) |
Balance, End of Period |
$ |
29,658 |
|
|
$ |
37,720 |
|
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio class based on impairment method as of September 30, 2011 and December 31, 2010:
|
September 30, 2011
(Dollars in Thousands)
|
Commercial,
Financial,
Agricultural
|
Real Estate Construction |
Real Estate
Commercial
Mortgage
|
Real Estate
Residential
|
Real Estate
Home Equity
|
Consumer
|
|
Unallocated
|
Total
|
Allowance Allocated to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Individually
Evaluated for Impairment
|
|
$ |
419
|
|
484
|
|
5,931
|
|
4,062
|
|
103
|
|
-
|
|
-
|
|
$ |
10,999
|
|
Loans Collectively
Evaluated for Impairment
|
|
|
1,195
|
|
656 |
|
4,823
|
|
7,426 |
|
2,029
|
|
1,530 |
|
1,000 |
|
|
18,659 |
Total |
|
$ |
1,614 |
|
1,140 |
|
10,754 |
|
11,488 |
|
2,132 |
|
1,530 |
|
1,000 |
|
$ |
29,658 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually Evaluated
for Impairment
|
|
$ |
1,435
|
|
2,690 |
|
44,911
|
|
26,063 |
|
1,756
|
|
- |
|
- |
|
$ |
76,855 |
|
Collectively Evaluated
for Impairment
|
|
|
141,076
|
|
29,301 |
|
599,217
|
|
376,343 |
|
243,682
|
|
191,225 |
|
- |
|
|
1,580,844 |
Total |
|
$ |
142,511 |
|
31,991 |
|
644,128 |
|
402,406 |
|
245,438 |
|
191,225 |
|
- |
|
$ |
1,657,699 |
|
December 31, 2010
(Dollars in Thousands)
|
|
Commercial,
Financial,
Agricultural
|
Real Estate
Construction
|
Real Estate
Commercial
Mortgage
|
Real Estate
Residential
|
Real Estate
Home Equity
|
|
Consumer |
|
Unallocated |
Total |
Allowance Allocated to: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Individually
Evaluated for Impairment
|
|
$ |
252
|
|
413
|
|
4,640
|
|
7,965
|
|
|
1,389
|
|
71
|
|
-
|
|
$
|
14,730
|
|
Loans Collectively
Evaluated for Impairment
|
|
|
1,292
|
|
1,647 |
|
4,005
|
|
9,081 |
|
|
1,133 |
|
2,541 |
|
1,007 |
|
|
20,706
|
Total |
|
$ |
1,544 |
|
2,060 |
|
8,645 |
|
17,046 |
|
|
2,522 |
|
2,612 |
|
1,007 |
|
$ |
35,436 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Loans: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually Evaluated
for Impairment
|
|
|
1,685
|
|
2,533 |
|
42,369
|
|
37,779 |
|
|
3,278 |
|
144 |
|
- |
|
$ |
87,788
|
|
Collectively Evaluated
for Impairment
|
|
|
155,709
|
|
40,706 |
|
629,333
|
|
392,762
|
|
|
248,287 |
|
204,086 |
|
- |
|
|
1,670,883
|
Total |
|
$ |
157,394 |
|
43,239 |
|
671,702 |
|
430,541 |
|
|
251,565 |
|
204,230 |
|
- |
|
$ |
1,758,671 |
Impaired Loans. Loans are deemed to be impaired when, based on current information and events, it is probable that the Company will not be able to collect all amounts due (principal and interest payments), according to the contractual terms of the loan agreement. Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired.
The following table presents loans individually evaluated for impairment by class of loans as of September 30, 2011 and December 31, 2010:
|
(Dollars in Thousands)
|
|
Unpaid Principal Balance |
|
|
Recorded Investment With No Allowance |
|
|
Recorded Investment With Allowance
|
|
|
Related Allowance
|
|
|
Average Recorded Investment(1)
|
|
September 30, 2011: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, Financial and Agricultural |
|
$ |
1,435 |
|
|
$ |
330 |
|
|
$ |
1,105 |
|
|
$ |
419 |
|
|
$ |
1,582 |
|
Real Estate - Construction |
|
|
2,690 |
|
|
|
148 |
|
|
|
2,542 |
|
|
|
484 |
|
|
|
2,000 |
|
Real Estate - Commercial Mortgage |
|
|
44,911 |
|
|
|
16,477 |
|
|
|
28,434 |
|
|
|
5,931 |
|
|
|
43,722 |
|
Real Estate - Residential |
|
|
26,063 |
|
|
|
4,016 |
|
|
|
22,047 |
|
|
|
4,062 |
|
|
|
27,946 |
|
Real Estate - Home Equity |
|
|
1,756 |
|
|
|
406 |
|
|
|
1,350 |
|
|
|
103 |
|
|
|
2,054 |
|
Consumer |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
39 |
|
Total |
|
$ |
76,855 |
|
|
$ |
21,377 |
|
|
$ |
55,478 |
|
|
$ |
10,999 |
|
|
$ |
77,343 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2010: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial, Financial and Agricultural |
|
$ |
1,684 |
|
|
$ |
389 |
|
|
$ |
1,295 |
|
|
$ |
252 |
|
|
$ |
2,768 |
|
Real Estate - Construction |
|
|
2,533 |
|
|
|
- |
|
|
|
2,533 |
|
|
|
413 |
|
|
|
5,801 |
|
Real Estate - Commercial Mortgage |
|
|
42,370 |
|
|
|
9,030 |
|
|
|
33,340 |
|
|
|
4,640 |
|
|
|
48,820 |
|
Real Estate - Residential |
|
|
37,780 |
|
|
|
3,295 |
|
|
|
34,485 |
|
|
|
7,965 |
|
|
|
41,958 |
|
Real Estate - Home Equity |
|
|
3,278 |
|
|
|
375 |
|
|
|
2,903 |
|
|
|
1,389 |
|
|
|
3,087 |
|
Consumer |
|
|
143 |
|
|
|
- |
|
|
|
143 |
|
|
|
71 |
|
|
|
172 |
|
Total |
|
$ |
87,788 |
|
|
$ |
13,089 |
|
|
$ |
74,699 |
|
|
$ |
14,730 |
|
|
$ |
102,606 |
|
(1) Reflects quarter-to-date average balance
Interest income recognized on impaired loans was approximately $2.8 million for the nine month periods ended September 30, 2011 and September 30, 2010, respectively.
|