Quarterly report pursuant to Section 13 or 15(d)

LOANS, NET (Tables)

v2.4.0.8
LOANS, NET (Tables)
 9 Months Ended
Sep. 30, 2013
Debt Disclosure [Abstract]  
Loan Portfolio Composition

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

 

(Dollars in Thousands)   September 30, 2013   December 31, 2012
Commercial, Financial and Agricultural   $ 123,253     $ 139,850  
Real Estate - Construction     31,454       37,512  
Real Estate - Commercial Mortgage     570,736       613,625  
Real Estate - Residential(1)     311,031       321,986  
Real Estate - Home Equity     230,212       236,263  
Consumer     151,156       157,877  
Loans, Net of Unearned Income   $ 1,417,842     $ 1,507,113  

 

  (1) Includes loans in process with outstanding balances of $5.8 million and $11.9 million at September 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:

 

    September 30, 2013   December 31, 2012
(Dollars in Thousands)   Nonaccrual   90 + Days   Nonaccrual   90 + Days
Commercial, Financial and Agricultural   $ 489       —       $ 1,069       —    
Real Estate - Construction     640       —         4,071       —    
Real Estate - Commercial Mortgage     25,714       —         41,045       —    
Real Estate - Residential     9,530       —         13,429       —    
Real Estate - Home Equity     4,741       —         4,034       —    
Consumer     568       —         574       —    
Total Nonaccrual Loans   $ 41,682       —       $ 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
September 30, 2013                                                
Commercial, Financial and Agricultural   $ 324     $ 58     $ —       $ 382     $ 122,383     $ 123,253  
Real Estate - Construction     —         108       —         108       30,707       31,454  
Real Estate - Commercial Mortgage     2,070       563       —         2,633       542,390       570,736  
Real Estate - Residential     1,734       1,665       —         3,399       298,102       311,031  
Real Estate - Home Equity     587       119       —         706       224,764       230,212  
Consumer     1,021       178       —         1,199       149,386       151,156  
Total Past Due Loans   $ 5,736     $ 2,691     $ —       $ 8,427     $ 1,367,732     $ 1,417,842  

 

 

(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  

 
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
September 30, 2013		                                                                
Beginning Balance   $ 895     $ 2,243     $ 9,951     $ 9,258     $ 2,879     $ 1,042     $ 1,026     $ 27,294  
Provision for Loan Losses     (171 )     (237 )     (630 )     1,044       277       297       (25 )     555  
Charge-Offs     (138 )     (278 )     (882 )     (1,178 )     (362 )     (674 )     —         (3,512 )
Recoveries     87       1       167       167       13       238       —         673  
Net Charge-Offs     (51 )     (277 )     (715 )     (1,011 )     (349 )     (436 )     —         (2,839 )
Ending Balance   $ 673     $ 1,729     $ 8,606     $ 9,291     $ 2,807     $ 903     $ 1,001     $ 25,010  
                                                                 
Nine Months Ended
September 30, 2013		                                                                
Beginning Balance   $ 1,253     $ 2,856     $ 11,081     $ 8,678     $ 2,945     $ 1,327     $ 1,027     $ 29,167  
Provision for Loan Losses     (345 )     (130 )     151       2,868       404       153       (26 )     3,075  
Charge-Offs     (411 )     (998 )     (2,975 )     (2,914 )     (797 )     (1,321 )     —         (9,416 )
Recoveries     176       1       349       659       255       744       —         2,184  
Net Charge-Offs     (235 )     (997 )     (2,626 )     (2,255 )     (542 )     (577 )     —         (7,232 )
Ending Balance   $ 673     $ 1,729     $ 8,606     $ 9,291     $ 2,807     $ 903     $ 1,001     $ 25,010  
                                                                 
Three Months Ended
September 30, 2012		                                                                
Beginning Balance   $ 1,320     $ 2,703     $ 8,550     $ 12,085     $ 2,830     $ 1,441     $ 1,000     $ 29,929  
Provision for Loan Losses     572       329       1,788       (792 )     1,130       (130 )     (33 )     2,864  
Charge-Offs     (331 )     (127 )     (512 )     (981 )     (834 )     (355 )     —         (3,140 )
Recoveries     53       9       34       76       15       382       —         569  
Net Charge-Offs     (278 )     (118 )     (478 )     (905 )     (819 )     27       —         (2,571 )
Ending Balance   $ 1,614     $ 2,914     $ 9,860     $ 10,388     $ 3,141     $ 1,338     $ 967     $ 30,222  
                                                                 
Nine Months Ended
September 30, 2012		                                                                
Beginning Balance   $ 1,534     $ 1,133     $ 10,660     $ 12,518     $ 2,392     $ 1,887     $ 911     $ 31,035  
Provision for Loan Losses     534       2,147       4,548       3,505       2,752       (142 )     56       13,400  
Charge-Offs     (657 )     (402 )     (5,562 )     (6,843 )     (2,152 )     (1,635 )     —         (17,251 )
Recoveries     203       36       214       1,208       149       1,228       —         3,038  
Net Charge-Offs     (454 )     (366 )     (5,348 )     (5,635 )     (2,003 )     (407 )     —         (14,213 )
Ending Balance   $ 1,614     $ 2,914     $ 9,860     $ 10,388     $ 3,141     $ 1,338     $ 967     $ 30,222  

 

 
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
September 30, 2013
Period-end amount Allocated to:		                                                                
Loans Individually Evaluated for Impairment   $ 218     $ 124     $ 5,045     $ 2,184     $ 508     $ 31     $ —       $ 8,110  
Loans Collectively Evaluated for Impairment     455       1,605       3,561       7,107       2,299       872       1,001       16,900  
Ending Balance   $ 673     $ 1,729     $ 8,606     $ 9,291     $ 2,807     $ 903     $ 1,001     $ 25,010  
                                                                 
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  
                                                                 
September 30, 2012
Period-end amount Allocated to:		                                                                
Loans Individually Evaluated for Impairment   $ 453     $ 700     $ 5,566     $ 3,604     $ 858     $ 18     $ —       $ 11,199  
Loans Collectively Evaluated for Impairment     1,161       2,214       4,294       6,784       2,283       1,320       967       19,023  
Ending Balance   $ 1,614     $ 2,914     $ 9,860     $ 10,388     $ 3,141     $ 1,338     $ 967     $ 30,222  

 

 
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
September 30, 2013                                                                
Individually Evaluated for Impairment   $ 3,546     $ 773     $ 57,820     $ 20,894     $ 3,977     $ 416     $ —       $ 87,426  
Collectively Evaluated for Impairment     119,707       30,681       512,916       290,137       226,235       150,740       —         1,330,416  
Total   $ 123,253     $ 31,454     $ 570,736     $ 311,031     $ 230,212     $ 151,156     $ —       $ 1,417,842  
                                                                 
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  
                                                                 
September 30, 2012                                                                
Individually Evaluated for Impairment   $ 2,379     $ 5,716     $ 75,707     $ 28,592     $ 3,380     $ 112     $ —       $ 115,886  
Collectively Evaluated for Impairment     133,560       37,562       533,964       319,344       236,066       156,913       —         1,417,409  
Total   $ 135,939     $ 43,278     $ 609,671     $ 347,936     $ 239,446     $ 157,025     $ —       $ 1,533,295  

 

 
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
September 30, 2013                                
Commercial, Financial and Agricultural   $ 3,546     $ 2,279     $ 1,267     $ 218  
Real Estate - Construction     773       —         773       124  
Real Estate - Commercial Mortgage     57,820       23,441       34,379       5,045  
Real Estate - Residential     20,894       2,674       18,220       2,184  
Real Estate - Home Equity     3,977       1,159       2,818       508  
Consumer     416       96       320       31  
Total   $ 87,426     $ 29,649     $ 57,777     $ 8,110  
 
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 September 30,   Nine Months Ended September 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   $ 2,750       34     $ 1,969       48     $ 2,633       110     $ 2,016       90  
Real Estate - Construction     935       2       6,138       21       1,317       5       3,114       91  
Real Estate - Commercial Mortgage     59,657       510       68,202       1,051       60,785       1,575       69,741       2,221  
Real Estate - Residential     20,992       217       28,850       332       21,353       637       32,377       828  
Real Estate - Home Equity     4,050       19       3,474       71       4,056       54       3,453       133  
Consumer     472       3       91       9       529       7       128       33  
Total   $ 88,856       785     $ 108,724       1,532     $ 90,673       2,388     $ 110,829       3,396  
 
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
September 30, 2013                                
Special Mention   $ 9,642     $ 62,583     $ 74     $ 72,299  
Substandard     4,057       121,772       1,448       127,277  
Doubtful     —         914       —         914  
Total Criticized Loans   $ 13,699     $ 185,269     $ 1,522     $ 200,490  

 

 (Dollars in Thousands)   Commercial, Financial, Agriculture   Real Estate   Consumer   Total
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:

 

    September 30, 2013   December 31, 2012
(Dollars in Thousands)   Accruing   Nonaccruing   Accruing   Nonaccruing
Commercial, Financial and Agricultural   $ 1,445     $ 145     $ 1,462     $ 508  
Real Estate - Construction     158       —         161       —    
Real Estate - Commercial Mortgage     32,088       7,738       29,870       8,425  
Real Estate - Residential     14,814       672       13,824       936  
Real Estate - Home Equity     1,774       93       1,587       —    
Consumer     413       —         570       10  
Total TDRs   $ 50,692     $ 8,648     $ 47,474     $ 9,879  

 
Loans classified as TDRs during the three and nine months ended

Loans classified as TDRs 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 September 30,   Nine Months Ended September 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     —       $ —       $ —         4     $ 294     $ 337  
Real Estate - Construction     —         —         —         —         —         —    
Real Estate - Commercial Mortgage     3       4,264       4,250       12       9,385       9,403  
Real Estate - Residential     6       581       642       16       1,757       1,856  
Real Estate - Home Equity     2       85       85       8       429       427  
Consumer     —         —         —         6       112       93  
Total TDRs     11     $ 4,930     $ 4,977       46     $ 11,977     $ 12,116  

  

    Three Months Ended September 30,   Nine Months Ended September 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     1     $ 215     $ 215       5     $ 871     $ 875  
Real Estate - Construction     2       162       162       6       969       976  
Real Estate - Commercial Mortgage     18       5,255       5,360       45       13,799       14,104  
Real Estate - Residential     34       2,950       2,860       54       5,445       5,418  
Real Estate - Home Equity     16       611       610       16       611       610  
Consumer     57       568       591       59       586       635  
Total TDRs     128     $ 9,761     $ 9,798       185     $ 22,281     $ 22,618  

 
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 nine months ended September 30, 2013 and 2012 are presented in the table below.

 

 

    Three Months Ended September 30,   Nine Months Ended September 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  
Real Estate - Commercial Mortgage     1       304       2       366  
Real Estate - Residential     5       445       7       728  
Real Estate - Home Equity     1       50       1       50  
Total TDRs     7     $ 799       11     $ 1,227  

 

 

    Three Months Ended September 30,   Nine Months Ended September 30,
    2012   2012
(Dollars in Thousands)   Number of
Contracts		   Post-Modified
Recorded
Investment		   Number of
Contracts		   Post-Modified
Recorded
Investment
Real Estate - Commercial Mortgage     2     $ 282       4     $ 1,721  
Real Estate - Residential     4       751       7       1,710  
Total TDRs     6     $ 1,033       11     $ 3,431