LOANS

v2.4.0.8

LOANS	9 Months Ended
	Sep. 30, 2013
Receivables [Abstract]
LOANS	NOTE 5 – LOANS   The following table details the company’s loans at September 30, 2013 and December 31, 2012:       September 30,     December 31,       2013     2012       (Dollars In Thousands)   Commercial, financial and agricultural   $ 1,222,953     $ 1,030,990   Real estate - construction     156,595       158,361   Real estate - mortgage:                 Owner-occupied commercial     667,401       568,041   1-4 family mortgage     262,144       235,909   Other mortgage     379,490       323,599   Subtotal: Real estate - mortgage     1,309,035       1,127,549   Consumer     43,390       46,282   Total Loans     2,731,973       2,363,182   Less: Allowance for loan losses     (28,927)       (26,258)   Net Loans   $ 2,703,046     $ 2,336,924                     Commercial, financial and agricultural     44.76 %     43.63 % Real estate - construction     5.73 %     6.70 % Real estate - mortgage:                 Owner-occupied commercial     24.43 %     24.04 % 1-4 family mortgage     9.60 %     9.98 % Other mortgage     13.89 %     13.69 % Subtotal: Real estate - mortgage     47.92 %     47.71 % Consumer     1.59 %     1.96 % Total Loans     100.00 %     100.00 %   The credit quality of the loan portfolio is summarized no less frequently than quarterly using categories similar to the standard asset classification system used by the federal banking agencies. The following table presents credit quality indicators for the loan loss portfolio segments and classes. These categories are utilized to develop the associated allowance for loan losses using historical losses adjusted for current economic conditions defined as follows:     · Pass – loans which are well protected by the current net worth and paying capacity of the obligor (or obligors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral.         · Special Mention – loans with potential weakness that may, if not reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.         · Substandard – loans that exhibit well-defined weakness or weaknesses that presently jeopardize debt repayment. These loans are characterized by the distinct possibility that the institution will sustain some loss if the weaknesses are not corrected.         · Doubtful – loans that have all the weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable.   Loans by credit quality indicator as of September 30, 2013 and December 31, 2012 were as follows:             Special                     September 30, 2013   Pass   Mention   Substandard   Doubtful   Total       (In Thousands)   Commercial, financial     and agricultural   $ 1,183,674   $ 33,412   $ 5,867   $ -   $ 1,222,953   Real estate - construction     142,093     3,492     11,010     -     156,595   Real estate - mortgage:                                 Owner-occupied     commercial     653,524     9,463     4,414     -     667,401   1-4 family mortgage     248,425     1,393     12,326     -     262,144   Other mortgage     365,911     9,788     3,791     -     379,490   Total real estate mortgage     1,267,860     20,644     20,531     -     1,309,035   Consumer     42,615     51     724     -     43,390   Total   $ 2,636,242   $ 57,599   $ 38,132   $ -   $ 2,731,973               Special                     December 31, 2012   Pass   Mention   Substandard   Doubtful   Total       (In Thousands)   Commercial, financial     and agricultural   $ 1,004,043   $ 19,172   $ 7,775   $ -   $ 1,030,990   Real estate - construction     121,168     22,771     14,422     -     158,361   Real estate - mortgage:                                 Owner-occupied     commercial     555,536     4,142     8,363     -     568,041   1-4 family mortgage     223,152     6,379     6,378     -     235,909   Other mortgage     312,473     6,674     4,452     -     323,599   Total real estate mortgage     1,091,161     17,195     19,193     -     1,127,549   Consumer     46,076     71     135     -     46,282   Total   $ 2,262,448   $ 59,209   $ 41,525   $ -   $ 2,363,182       Loans by performance status as of September 30, 2013 and December 31, 2012 were as follows:   September 30, 2013   Performing   Nonperforming   Total                             (In Thousands)   Commercial, financial     and agricultural   $ 1,222,110   $ 843   $ 1,222,953   Real estate - construction     152,037     4,558     156,595   Real estate - mortgage:                     Owner-occupied     commercial     663,709     3,692     667,401   1-4 family mortgage     262,144     -     262,144   Other mortgage     379,253     237     379,490   Total real estate mortgage     1,305,106     3,929     1,309,035   Consumer     43,324     66     43,390   Total   $ 2,722,577   $ 9,396   $ 2,731,973     December 31, 2012   Performing   Nonperforming   Total                             (In Thousands)   Commercial, financial     and agricultural   $ 1,030,714   $ 276   $ 1,030,990   Real estate - construction     151,901     6,460     158,361   Real estate - mortgage:                     Owner-occupied     commercial     565,255     2,786     568,041   1-4 family mortgage     235,456     453     235,909   Other mortgage     323,359     240     323,599   Total real estate mortgage     1,124,070     3,479     1,127,549   Consumer     46,139     143     46,282   Total   $ 2,352,824   $ 10,358   $ 2,363,182     Loans by past due status as of September 30, 2013 and December 31, 2012 were as follows:   September 30, 2013   Past Due Status (Accruing Loans)                                           Total Past                         30-59 Days   60-89 Days   90+ Days   Due   Non-Accrual   Current   Total Loans       (In Thousands)   Commercial, financial     and agricultural   $ 82   $ 971   $ -   $ 1,053   $ 843   $ 1,221,057   $ 1,222,953   Real estate - construction     -     1,510     -     1,510     4,558     150,527     156,595   Real estate - mortgage:                                             Owner-occupied     commercial     -     -     -     -     3,692     663,709     667,401   1-4 family mortgage     349     5,148     -     5,497     -     256,647     262,144   Other mortgage     -     -     -     -     237     379,253     379,490   Total real estate -     mortgage     349     5,148     -     5,497     3,929     1,299,609     1,309,035   Consumer     56     -     -     56     66     43,268     43,390   Total   $ 487   $ 7,629   $ -   $ 8,116   $ 9,396   $ 2,714,461   $ 2,731,973     December 31, 2012   Past Due Status (Accruing Loans)                                           Total Past                         30-59 Days   60-89 Days   90+ Days   Due   Non-Accrual   Current   Total Loans       (In Thousands)   Commercial, financial     and agricultural   $ 1,699   $ 385   $ -   $ 2,084   $ 276   $ 1,028,630   $ 1,030,990   Real estate - construction     -     -     -     -     6,460     151,901     158,361   Real estate - mortgage:                                             Owner-occupied     commercial     1,480     10     -     1,490     2,786     563,765     568,041   1-4 family mortgage     420     16     -     436     453     235,020     235,909   Other mortgage     516     -     -     516     240     322,843     323,599   Total real estate -     mortgage     2,416     26     -     2,442     3,479     1,121,628     1,127,549   Consumer     108     -     8     116     135     46,031     46,282   Total   $ 4,223   $ 411   $ 8   $ 4,642   $ 10,350   $ 2,348,190   $ 2,363,182     The Company assesses the adequacy of its allowance for loan losses prior to the end of each calendar quarter. The level of the allowance is based on management’s evaluation of the loan portfolios, past loan loss experience, current asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. This evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. Loan losses are charged off when management believes that the full collectability of the loan is unlikely. A loan may be partially charged-off after a “confirming event” has occurred which serves to validate that full repayment pursuant to the terms of the loan is unlikely. Allocation of the allowance is made for specific loans, but the entire allowance is available for any loan that in management’s judgment deteriorates and is uncollectible. The portion of the reserve attributable to qualitative factors is management’s evaluation of potential future losses that would arise in the loan portfolio should management’s assumption about qualitative and environmental conditions materialize. This qualitative factor portion of the allowance for loan losses is based on management’s judgment regarding various external and internal factors including macroeconomic trends, management’s assessment of the Company’s loan growth prospects, and evaluations of internal risk controls.   The following table presents an analysis of the allowance for loan losses by portfolio segment as of September 30, 2013 and December 31, 2012. The total allowance for loan losses is disaggregated into those amounts associated with loans individually evaluated and those associated with loans collectively evaluated.       Commercial,                                     financial and   Real estate -   Real estate -       Qualitative             agricultural   construction   mortgage   Consumer   Factors   Total       (In Thousands)       Three Months Ended September 30, 2013   Allowance for loan losses:                                       Balance at June 30, 2013   $ 11,140   $ 5,453   $ 6,039   $ 224   $ 5,901   $ 28,757   Charge-offs     (849)     (394)     (1,746)     (42)     -     (3,031)   Recoveries     13     124     24     6     -     167   Provision     739     307     1,078     563     347     3,034   Balance at September 30, 2013   $ 11,043   $ 5,490   $ 5,395   $ 751   $ 6,248   $ 28,927                                               Three Months Ended September 30, 2012   Allowance for loan losses:                                       Balance at June 30, 2012   $ 6,511   $ 7,582   $ 3,640   $ 285   $ 5,221   $ 23,239   Charge-offs     (349)     (16)     (30)     (79)     -     (474)   Recoveries     24     47     582     1     -     654   Provision     1,090     (1,560)     615     96     944     1,185   Balance at September 30, 2012   $ 7,276   $ 6,053   $ 4,807   $ 303   $ 6,165   $ 24,604                                               Nine Months Ended September 30, 2013   Allowance for loan losses:                                       Balance at December 31, 2012   $ 8,233   $ 6,511   $ 4,912   $ 199   $ 6,403   $ 26,258   Charge-offs     (1,838)     (4,271)     (2,016)     (172)     -     (8,297)   Recoveries     50     226     28     10     -     314   Provision     4,598     3,024     2,471     714     (155)     10,652   Balance at September 30, 2013   $ 11,043   $ 5,490   $ 5,395   $ 751   $ 6,248   $ 28,927                                               Nine Months Ended September 30, 2012   Allowance for loan losses:                                       Balance at December 31, 2011   $ 6,627   $ 6,542   $ 3,295   $ 531   $ 5,035   $ 22,030   Charge-offs     (898)     (2,935)     (311)     (707)     -     (4,851)   Recoveries     124     55     588     7     -     774   Provision     1,423     2,391     1,235     472     1,130     6,651   Balance at September 30, 2012   $ 7,276   $ 6,053   $ 4,807   $ 303   $ 6,165   $ 24,604                                               As of September 30, 2013   Allowance for loan losses:                                       Individually Evaluated for Impairment   $ 1,817   $ 1,363   $ 1,576   $ 592   $ -   $ 5,348   Collectively Evaluated for Impairment     9,226     4,127     3,819     159     6,248     23,579                                           Loans:                                       Ending Balance   $ 1,222,953   $ 156,595   $ 1,309,035   $ 43,390   $ -   $ 2,731,973   Individually Evaluated for Impairment     4,048     11,010     20,475     608     -     36,141   Collectively Evaluated for Impairment     1,218,905     145,585     1,288,560     42,782     -     2,695,832                                               As of December 31, 2012   Allowance for loan losses:                                       Individually Evaluated for Impairment   $ 577   $ 1,013   $ 1,921   $ -   $ -   $ 3,511   Collectively Evaluated for Impairment     7,656     5,498     2,991     199     6,403     22,747                                           Loans:                                       Ending Balance   $ 1,030,990   $ 158,361   $ 1,127,549   $ 46,282   $ -   $ 2,363,182   Individually Evaluated for Impairment     3,910     14,422     18,927     135     -     37,394   Collectively Evaluated for Impairment     1,027,080     143,939     1,108,622     46,147     -     2,325,788     The following table presents details of the Company’s impaired loans as of September 30, 2013 and December 31, 2012, respectively. Loans which have been fully charged off do not appear in the tables.                         For the three months   For the nine months                         ended September 30,   ended September 30,       September 30, 2013   2013   2013                               Interest         Interest             Unpaid         Average   Income   Average   Income       Recorded   Principal   Related   Recorded   Recognized   Recorded   Recognized       Investment   Balance   Allowance   Investment   in Period   Investment   in Period       (In Thousands)   With no allowance recorded:                                             Commercial, financial and     agricultural   $ 856   $ 876   $ -   $ 875   $ 11   $ 875   $ 33   Real estate - construction     5,217     6,135     -     4,847     35     4,201     113   Real estate - mortgage:                                             Owner-occupied commercial     2,792     2,918     -     2,884     8     2,923     51   1-4 family mortgage     1,349     1,349     -     1,350     15     1,352     45   Other mortgage     3,500     3,599     -     3,963     46     4,147     150   Total real estate - mortgage     7,641     7,866     -     8,197     69     8,422     246   Consumer     16     16     -     17     -     20     1   Total with no allowance recorded     13,730     14,893     -     13,936     115     13,518     393                                                 With an allowance recorded:                                             Commercial, financial and     agricultural     3,192     3,632     1,817     3,622     21     3,573     106   Real estate - construction     5,793     5,793     1,363     5,572     41     5,309     126   Real estate - mortgage:                                             Owner-occupied commercial     1,566     1,566     527     1,571     (16)     1,582     19   1-4 family mortgage     10,977     10,977     973     10,804     111     10,968     268   Other mortgage     291     291     76     293     5     298     15   Total real estate - mortgage     12,834     12,834     1,576     12,668     100     12,848     302   Consumer     592     592     592     593     8     698     30   Total with allowance recorded     22,411     22,851     5,348     22,455     170     22,428     564                                                 Total Impaired Loans:                                             Commercial, financial and     agricultural     4,048     4,508     1,817     4,497     32     4,448     139   Real estate - construction     11,010     11,928     1,363     10,419     76     9,510     239   Real estate - mortgage:                                             Owner-occupied commercial     4,358     4,484     527     4,455     (8)     4,505     70   1-4 family mortgage     12,326     12,326     973     12,154     126     12,320     313   Other mortgage     3,791     3,890     76     4,256     51     4,445     165   Total real estate - mortgage     20,475     20,700     1,576     20,865     169     21,270     548   Consumer     608     608     592     610     8     718     31   Total impaired loans   $ 36,141   $ 37,744   $ 5,348   $ 36,391   $ 285   $ 35,946   $ 957         December 31, 2012                         Unpaid         Average   Interest Income       Recorded   Principal   Related   Recorded   Recognized in       Investment   Balance   Allowance   Investment   Period       (In Thousands)   With no allowance recorded:                                 Commercial, financial and agricultural   $ 2,602   $ 2,856   $ -   $ 2,313   $ 105   Real estate - construction     6,872     7,894     -     7,631     188   Owner-occupied commercial     5,111     5,361     -     5,411     145   1-4 family mortgage     2,166     2,388     -     2,177     108   Other mortgage     4,151     4,249     -     4,206     275   Total real estate - mortgage     11,428     11,998     -     11,794     528   Consumer     135     344     -     296     6   Total with no allowance recorded     21,037     23,092     -     22,034     827                                     With an allowance recorded:                                 Commercial, financial and agricultural     1,308     1,308     577     1,325     90   Real estate - construction     7,550     8,137     1,013     6,961     154   Real estate - mortgage:                                 Owner-occupied commercial     3,195     3,195     779     3,277     77   1-4 family mortgage     4,002     4,002     1,007     4,001     139   Other mortgage     302     302     135     307     20   Total real estate - mortgage     7,499     7,499     1,921     7,585     236   Total with allowance recorded     16,357     16,944     3,511     15,871     480                                     Total Impaired Loans:                                 Commercial, financial and agricultural     3,910     4,164     577     3,638     195   Real estate - construction     14,422     16,031     1,013     14,592     342   Real estate - mortgage:                                 Owner-occupied commercial     8,306     8,556     779     8,688     222   1-4 family mortgage     6,168     6,390     1,007     6,178     247   Other mortgage     4,453     4,551     135     4,513     295   Total real estate - mortgage     18,927     19,497     1,921     19,379     764   Consumer     135     344     -     296     6   Total impaired loans   $ 37,394   $ 40,036   $ 3,511   $ 37,905   $ 1,307     Troubled Debt Restructurings (“TDR”) at September 30, 2013, December 31, 2012 and September 30, 2012 totaled $8.4 million, $12.3 million and $12.0 million, respectively. At September 30, 2013, the Company had a related allowance for loan losses of $0.8 million allocated to these TDRs, compared to $1.4 million at December 31, 2012 and $1.4 million at September 30, 2012. During the third quarter 2013, the Company had three TDR loans to one borrower in the amount of $3.1 million enter into payment default status. Two of these loans were fully charged-off and a partial charge-off was taken on the remaining loan for a total charge-off of $0.9 million, leaving a balance of $2.2 million on the TDR at September 30, 2013. All other loans classified as TDRs as of September 30, 2013 are performing as agreed under the terms of their restructured plans. The following table presents an analysis of TDRs as of September 30, 2013 and September 30, 2012.         September 30, 2013   September 30, 2012           Pre-   Post-       Pre-   Post-           Modification   Modification       Modification   Modification           Outstanding   Outstanding       Outstanding   Outstanding       Number of   Recorded   Recorded   Number of   Recorded   Recorded       Contracts   Investment   Investment   Contracts   Investment   Investment       (In Thousands)   Troubled Debt Restructurings                                   Commercial, financial and agricultural   2   $ 1,017   $ 1,017   2   $ 1,216   $ 1,216   Real estate - construction   -     -     -   15     2,899     2,899   Real estate - mortgage:                                   Owner-occupied commercial   1     3,121     2,200   6     5,907     5,907   1-4 family mortgage   1     4,925     4,925   5     1,709     1,709   Other mortgage   1     291     291   1     304     304   Total real estate - mortgage   3     8,337     7,416   12     7,920     7,920   Consumer   -     -     -   -     -     -       5   $ 9,354   $ 8,433   29   $ 12,035   $ 12,035       Number of   Recorded         Number of   Recorded     Contracts   Investment         Contracts   Investment                                                           Troubled Debt Restructurings                           That Subsequently Defaulted                           Commercial, financial and agricultural -   $ -         -   $ -   Real estate - construction -     -         -     -   Real estate - mortgage:                           Owner-occupied commercial 1     2,200         -     -   1-4 family mortgage -     -         -     -   Other mortgage -     -         -     -   Total real estate - mortgage 1     2,200         -     -   Consumer -     -         -     -     1   $ 2,200         -   $ -