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Credit Quality of Loans and Leases and the Reserve for Loan and Lease Losses
 6 Months Ended
Jun. 30, 2011
Credit Quality of Loans and Leases and the Reserve for Loan and Lease Losses [Abstract]  
Credit Quality of Loans and Leases and the Reserve for Loan and Lease Losses
Note 4. Credit Quality of Loans and Leases and the Reserve for Loan and Lease Losses
Age Analysis of Past Due Loans and Leases
The following presents, by class of loans and leases, an aging of past due loans and leases, loans and leases which are current and the recorded investment in loans and leases greater than 90 days past due which are accruing interest at June 30, 2011 and December 31, 2010:
                                                         
                                                    Recorded  
                                                    Investment  
                                                    Greater than  
                    Greater                             90 Days  
                    Than                             Past Due  
    30-59 Days     60-89 Days     90 Days     Total             Total Loans     and Accruing  
(Dollars in thousands)   Past Due*     Past Due*     Past Due*     Past Due*     Current*     and Leases     Interest*  
 
                                                       
At June 30, 2011
                                                       
 
                                                       
Commercial, financial and agricultural
  $ 153     $ 214     $ 4     $ 371     $ 473,312     $ 479,670     $ 4  
Real estate-commercial real estate and construction:
                                                       
Commercial real estate
    828       —       468       1,296       477,615       511,162       468  
Construction
    —       —       —       —       75,959       84,857       —  
Real estate-residential and home equity:
                                                       
Residential secured for business purpose
    100       52       —       152       32,347       32,717       —  
Residential secured for personal purpose
    55       —       —       55       132,280       132,554       —  
Home equity secured for personal purpose
    356       69       44       469       79,730       80,230       44  
Loans to individuals
    306       173       133       612       41,913       42,577       133  
Lease financings
    894       399       10       1,303       72,752       74,940       10  
 
                                         
Total
  $ 2,692     $ 907     $ 659     $ 4,258     $ 1,385,908     $ 1,438,707     $ 659  
 
                                         
     
*  
Excludes impaired loans and leases.
                                                         
                                                    Recorded  
                                                    Investment  
                                                    Greater than  
                    Greater                             90 Days  
                    Than                             Past Due  
    30-59 Days     60-89 Days     90 Days     Total             Total Loans     and Accruing  
(Dollars in thousands)   Past Due*     Past Due*     Past Due*     Past Due*     Current*     and Leases     Interest*  
 
                                                       
At December 31, 2010
                                                       
 
                                                       
Commercial, financial and agricultural
  $ 924     $ —     $ —     $ 924     $ 454,792     $ 463,518     $ —  
Real estate-commercial real estate and construction:
                                                       
Commercial real estate
    3,836       —       —       3,836       484,527       516,546       —  
Construction
    156       —       —       156       112,739       119,769       —  
Real estate-residential and home equity:
                                                       
Residential secured for business purpose
    —       —       —       —       42,008       42,459       —  
Residential secured for personal purpose
    92       —       270       362       120,250       121,876       270  
Home equity secured for personal purpose
    118       74       44       236       80,639       80,875       44  
Loans to individuals
    537       153       382       1,072       42,934       44,087       382  
Lease financings
    1,071       421       —       1,492       79,437       82,056       —  
 
                                         
Total
  $ 6,734     $ 648     $ 696     $ 8,078     $ 1,417,326     $ 1,471,186     $ 696  
 
                                         
     
*  
Excludes impaired loans and leases.
Nonaccrual and Troubled Debt Restructured Loans and Leases
The following presents, by class of loans and leases, nonaccrual loans and leases (including nonaccrual troubled debt restructured loans and leases) and accruing troubled debt restructured loans and leases at June 30, 2011 and December 31, 2010. Troubled debt restructured loans and leases include concessions primarily related to extensions of interest-only payment periods and an occasional payment modification. These modifications typically are on a short-term basis up to one year.
                                                 
    At June 30, 2011     At December 31, 2010  
            Accruing                     Accruing        
            Troubled     Total             Troubled     Total  
            Debt     Impaired             Debt     Impaired  
    Nonaccrual     Restructured     Loans     Nonaccrual     Restructured     Loans  
    Loans and     Loans and     and     Loans and     Loans and     and  
(Dollars in thousands)   Leases*     Leases     Leases     Leases*     Leases     Leases  
 
                                               
Commercial, financial and agricultural
  $ 5,979     $ 8     $ 5,987     $ 7,627     $ 175     $ 7,802  
Real estate-commercial real estate and construction:
                                               
Commercial real estate
    29,797       2,454       32,251       28,183       —       28,183  
Construction
    6,831       2,067       8,898       6,874       —       6,874  
Real estate-residential and home equity:
                                               
Residential secured for business purpose
    109       109       218       361       90       451  
Residential secured for personal purpose
    61       158       219       1,264       —       1,264  
Home equity secured for personal purpose
    —       31       31       —       —       —  
Loans to individuals
    —       52       52       21       60       81  
Lease financings
    736       149       885       902       225       1,127  
 
                                   
Total
  $ 43,513     $ 5,028     $ 48,541     $ 45,232     $ 550     $ 45,782  
 
                                   
     
*  
Includes non-accrual troubled debt restructured loans and leases of $2.8 million and $1.2 million at June 30, 2011 and December, 31, 2010, respectively.
Credit Quality Indicators
The following tables present by class, the recorded investment in loans and leases by credit quality indicator at June 30, 2011 and December 31, 2010.
The Corporation employs a ten (10) grade risk rating system related to the credit quality of commercial loans and residential real estate loans secured for a business purpose of which the first six categories are pass categories (credits not adversely rated). The following is a description of the internal risk ratings and the likelihood of loss related to each risk rating. Loans with risk ratings of one through five are reviewed based on the relationship dollar amount with the borrower: loans with a relationship total of $2.5 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.5 million but greater than $500 thousand are reviewed annually based on the borrower’s fiscal year; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with risk ratings of six are also reviewed based on the relationship dollar amount with the borrower: loans with a relationship balance of $2.0 million or greater are reviewed quarterly; loans with a relationship balance of less than $2.0 million but greater than $500 thousand are reviewed annually; loans with a relationship balance of less than $500 thousand are reviewed only if the loan becomes 60 days or more past due. Loans with risk ratings of seven are reviewed at least quarterly, and as often as monthly, at management’s discretion. Loans with risk ratings of eight through ten are reviewed monthly.
  1.  
Cash Secured — No credit risk
  2.  
Fully Secured — Negligible credit risk
  3.  
Strong — Minimal credit risk
  4.  
Satisfactory — Nominal credit risk
  5.  
Acceptable — Moderate credit risk
  6.  
Pre-Watch — Marginal, but stable credit risk
  7.  
Special Mention — Potential weakness
  8.  
Substandard — Well-defined weakness
  9.  
Doubtful — Collection in-full improbable
  10.  
Loss — Considered uncollectible
Commercial Credit Exposure Credit Risk by Internally Assigned Grades
                                                                 
                                                    Real Estate-Residential  
    Commercial, Financial                                     Secured for  
    and Agricultural     Real Estate-Commercial     Real Estate-Construction     Business Purpose  
    At June 30,     At December 31,     At June 30,     At December 31,     At June 30,     At December 31,     At June 30,     At December 31,  
(Dollars in thousands)   2011     2010     2011     2010     2011     2010     2011     2010  
 
                                                               
Grade:
                                                               
1. Cash secured/ 2. Fully secured
  $ 1,160     $ 2,714     $ —     $ —     $ —     $ —     $ —     $ —  
3. Strong
    5,275       16,350       10,024       11,542       1,284       2,674       —       28  
4. Satisfactory
    34,315       71,258       30,591       47,755       1,634       12,217       1,386       1,836  
5. Acceptable
    291,171       254,422       278,855       261,520       42,235       78,116       19,761       24,987  
6. Pre-watch
    87,861       70,259       116,331       109,493       22,511       11,296       8,530       6,322  
7. Special Mention
    16,133       8,476       22,580       17,596       5,701       684       741       700  
8. Substandard
    40,692       36,933       51,788       67,379       11,492       14,782       2,299       8,586  
9. Doubtful
    3,063       3,106       993       1,261       —       —       —       —  
10. Loss
    —       —       —       —       —       —       —       —  
 
                                               
Total
  $ 479,670     $ 463,518     $ 511,162     $ 516,546     $ 84,857     $ 119,769     $ 32,717     $ 42,459  
 
                                               
The Corporation monitors the credit risk profile by payment activity for the following classifications of loans and leases: residential real estate loans secured for a personal purpose, home equity loans secured for a personal purpose, loans to individuals and lease financings by payment activity. Nonperforming loans and leases are loans past due 90 days or more and loans and leases on non-accrual of interest as well as troubled debt restructured loans. Performing loans and leases are reviewed only if the loan becomes 60 days or more past due. Nonperforming loans and leases are reviewed monthly. Performing loans and leases have a nominal to moderate risk of loss. Nonperforming loans and leases are loans with a well-defined weakness as well as loans where collection in-full is improbable.
Credit Exposure — Real Estate-Residential Secured for Personal Purpose, Real Estate-Home Equity Secured for Personal Purpose, Loans to individuals, Lease Financing Credit Risk Profile by Payment Activity
                                                                 
    Real Estate-Residential     Real Estate-Home Equity              
    Secured for     Secured for              
    Personal Purpose     Personal Purpose     Loans to individuals     Lease Financing  
    At June 30,     At December 31,     At June 30,     At December 31,     At June 30,     At December 31,     At June 30,     At December 31,  
(Dollars in thousands)   2011     2010     2011     2010     2011     2010     2011     2010  
 
                                                               
Performing
  $ 132,336     $ 120,342     $ 80,155     $ 80,831     $ 42,392     $ 43,624     $ 74,045     $ 80,929  
Nonperforming
    218       1,534       75       44       185       463       895       1,127  
 
                                               
Total
  $ 132,554     $ 121,876     $ 80,230     $ 80,875     $ 42,577     $ 44,087     $ 74,940     $ 82,056  
 
                                               
Risks associated with lending activities include, among other things, the impact of changes in interest rates and economic conditions, which may adversely impact the ability of borrowers to repay outstanding loans, and impact the value of the associated collateral.
Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans with a business purpose are generally perceived as having more risk of default than residential real estate loans with a personal purpose and consumer loans. These types of loans involve larger loan balances to a single borrower or groups of related borrowers. Commercial real estate loans may be affected to a greater extent than residential loans by adverse conditions in real estate markets or the economy because commercial real estate borrowers’ ability to repay their loans depends on successful development of their properties, as well as the factors affecting residential real estate borrowers.
Commercial, financial and agricultural business loans are typically based on the borrowers’ ability to repay the loans from the cash flow of their businesses. These loans may involve greater risk because the availability of funds to repay each loan depends substantially on the success of the business itself. In addition, the collateral securing the loans often depreciates over time, is difficult to appraise and liquidate and fluctuates in value based on the success of the business.
Risk of loss on a construction loan depends largely upon whether our initial estimate of the property’s value at completion of construction equals or exceeds the cost of the property construction (including interest). During the construction phase, a number of factors can result in delays and cost overruns. If estimates of value are inaccurate or if actual construction costs exceed estimates, the value of the property securing the loan may be insufficient to ensure full repayment when completed through a permanent loan or by seizure of collateral. Included in real estate-construction is track development financing. Risk factors related to track development financing include the demand for residential housing and the real estate valuation market. When projects move slower than anticipated, the properties may have significantly lower values than when the original underwriting was completed, resulting in lower collateral values to support the loan. Extended time frames also cause the interest carrying cost for a project to be higher than the builder projected, negatively impacting the builder’s profit and cash flow and, therefore, their ability to make principal and interest payments.
Commercial real estate loans and residential real estate loans with a business purpose secured by owner-occupied properties are dependent upon the successful operation of the borrower’s business. If the operating company suffers difficulties in terms of sales volume and/or profitability, the borrower’s ability to repay the loan may be impaired. Loans secured by properties where repayment is dependent upon payment of rent by third party tenants or the sale of the property may be impacted by loss of tenants, lower lease rates needed to attract new tenants or the inability to sell a completed project in a timely fashion and at a profit.
Commercial, financial and agricultural loans, commercial real estate loans, construction loans and residential real estate loans secured for a business purpose are more susceptible to a risk of loss during a downturn in the business cycle. The Corporation has strict underwriting, review, and monitoring procedures in place, however, these procedures cannot eliminate all of the risks related to these loans.
The Corporation focuses on both assessing the borrower’s capacity and willingness to repay and on obtaining sufficient collateral. Commercial, financial and agricultural loans are generally secured by the borrower’s assets and by personal guarantees. Commercial real estate and residential real estate loans secured for a business purpose are originated primarily within the Eastern Pennsylvania market area at conservative loan-to-value ratios and often by a guarantee of the borrowers. Management closely monitors the composition and quality of the total commercial loan portfolio to ensure that any credit concentrations by borrower or industry are closely monitored.
The Corporation originates fixed-rate and adjustable-rate real estate-residential mortgage loans that are secured by the underlying 1- to 4-family residential properties for personal purposes. Credit risk exposure in this area of lending is minimized by the evaluation of the credit worthiness of the borrower, including debt-to-equity ratios, credit scores and adherence to underwriting policies that emphasize conservative loan-to-value ratios of generally no more than 80%. Residential mortgage loans granted in excess of the 80% loan-to-value ratio criterion are generally insured by private mortgage insurance.
In the real estate-home equity loan portfolio secured for a personal purpose, combined loan-to-value ratios at origination are generally limited to 80%. Other credit considerations may warrant higher combined loan-to-value ratios and are generally insured by private mortgage insurance.
Credit risk in the loans to individuals portfolio, which includes, direct consumer loans and credit cards, is controlled by strict adherence to conservative underwriting standards that consider debt-to-income levels and the creditworthiness of the borrower and, if secured, collateral values.
The primary risks that are involved with lease financing receivables are credit underwriting and borrower industry concentrations. The Corporation has strict underwriting, review, and monitoring procedures in place to mitigate this risk. Risk also lies in the residual value of the underlying equipment. Residual values are subject to judgments as to the value of the underlying equipment that can be affected by changes in economic and market conditions and the financial viability of the residual guarantors and insurers. To the extent not guaranteed or assumed by a third party, or otherwise insured against, the Corporation bears the risk of ownership of the leased assets. This includes the risk that the actual value of the leased assets at the end of the lease term will be less than the residual value. The Corporation greatly reduces this risk by using $1.00 buyout leases, in which the entire cost of the leased equipment is included in the contractual payments, leaving no residual payment at the end of the lease terms.
Reserve for Loan and Lease Losses and Recorded Investment in Loans and Leases
The following presents, by portfolio segment, a summary of the activity in the reserve for loan and lease losses, the balance in the reserve for loan and lease losses disaggregated on the basis of impairment method and the recorded investment in loans and leases disaggregated on the basis of impairment method for the three and six months ended June 30, 2011 and 2010:
                                                                 
                            Real Estate-                          
                            Residential                          
                    Real Estate-     and                          
    Commercial,     Real Estate-     Residential     Home Equity                          
    Financial     Commercial     Secured for     Secured for     Loans                    
    and     and     Business     Personal     to     Lease              
(Dollars in thousands)   Agricultural     Construction     Purpose     Purpose     Individuals     Financings     Unallocated     Total  
 
                                                               
For the Three Months Ended June 30, 2011
                                                               
 
                                                               
Reserve for loan and lease losses:
                                                               
Beginning balance
  $ 11,098     $ 16,464     $ 995     $ 594     $ 701     $ 1,946     $ 1,006     $ 32,804  
Charge-offs
    (1,644 )     (3,375 )     (136 )     (35 )     (396 )     (391 )             (5,977 )
Recoveries
    49       17       3       1       34       114               218  
Provision (recovery of provision)
    1,374       2,986       157       136       356       243       304       5,556  
 
                                               
Ending balance
  $ 10,877     $ 16,092     $ 1,019     $ 696     $ 695     $ 1,912     $ 1,310     $ 32,601  
 
                                               
 
                                                               
For the Three Months Ended June 30, 2010
                                                               
 
                                                               
Reserve for loan and lease losses:
                                                               
Beginning balance
  $ 14,088     $ 8,311     $ 860     $ 486     $ 822     $ 1,499     $ 999     $ 27,065  
Charge-offs
    (1,180 )     (1,638 )     (5 )     —       (194 )     (603 )     —       (3,620 )
Recoveries
    43       485       9       —       66       196       —       799  
Provision (recovery of provision)
    (420 )     4,170       (10 )     (4 )     111       931       87       4,865  
 
                                               
Ending balance
  $ 12,531     $ 11,328     $ 854     $ 482     $ 805     $ 2,023     $ 1,086     $ 29,109  
 
                                               
                                                                 
                            Real Estate-                          
                            Residential                          
                    Real Estate-     and                          
    Commercial,     Real Estate-     Residential     Home Equity                          
    Financial     Commercial     Secured for     Secured for     Loans                    
    and     and     Business     Personal     to     Lease              
(Dollars in thousands)   Agricultural     Construction     Purpose     Purpose     Individuals     Financings     Unallocated     Total  
 
                                                               
For the Six Months Ended June 30, 2011
                                                               
 
                                                               
Reserve for loan and lease losses:
                                                               
Beginning balance
  $ 9,630     $ 15,288     $ 1,333     $ 544     $ 734     $ 1,950     $ 1,419     $ 30,898  
Charge-offs
    (2,774 )     (5,063 )     (194 )     (38 )     (597 )     (859 )     —       (9,525 )
Recoveries
    181       80       6       3       78       190       —       538  
Provision (recovery of provision)
    3,840       5,787       (126 )     187       480       631       (109 )     10,690  
 
                                               
Ending balance
  $ 10,877     $ 16,092     $ 1,019     $ 696     $ 695     $ 1,912     $ 1,310     $ 32,601  
 
                                               
 
                                                               
For the Six Months Ended June 30, 2010
                                                               
 
                                                               
Reserve for loan and lease losses:
                                                               
Beginning balance
  $ 12,148     $ 7,975     $ 1,058     $ 501     $ 887     $ 1,175     $ 1,054     $ 24,798  
Charge-offs
    (2,348 )     (2,438 )     (5 )     —       (479 )     (1,192 )     —       (6,462 )
Recoveries
    68       489       10       —       142       304       —       1,013  
Provision (recovery of provision)
    2,663       5,302       (209 )     (19 )     255       1,736       32       9,760  
 
                                               
Ending balance
  $ 12,531     $ 11,328     $ 854     $ 482     $ 805     $ 2,023     $ 1,086     $ 29,109  
 
                                               
                                                                 
                            Real Estate-                          
                            Residential                          
                    Real Estate-     and                          
    Commercial,     Real Estate-     Residential     Home Equity                          
    Financial     Commercial     Secured for     Secured for     Loans                    
    and     and     Business     Personal     to     Lease              
(Dollars in thousands)   Agricultural     Construction     Purpose     Purpose     Individuals     Financings     Unallocated     Total  
 
                                                               
As of June 30, 2011
                                                               
 
                                                               
Reserve for loan and lease losses:
                                                               
Ending balance: individually evaluated for impairment
  $ 372     $ 933     $ —     $ —     $ —     $ —     $ N/A     $ 1,305  
Ending balance: collectively evaluated for impairment
    10,505       15,159       1,019       696       695       1,912       1,310       31,296  
 
                                               
Total ending balance
  $ 10,877     $ 16,092     $ 1,019     $ 696     $ 695     $ 1,912     $ 1,310     $ 32,601  
 
                                               
 
                                                               
Loans and leases:
                                                               
Ending balance: individually evaluated for impairment
  $ 5,987     $ 41,149     $ 218     $ 250     $ 52     $ 885             $ 48,541  
Ending balance: collectively evaluated for impairment
    473,683       554,870       32,499       212,534       42,525       74,055               1,390,166  
 
                                                 
Total ending balance
  $ 479,670     $ 596,019     $ 32,717     $ 212,784     $ 42,577     $ 74,940             $ 1,438,707  
 
                                                 
 
                                                               
As of June 30, 2010
                                                               
Reserve for loan and lease losses:
                                                               
Ending balance: individually evaluated for impairment
  $ 668     $ 3,395     $ 65     $ —     $ —     $ —     $ N/A     $ 4,128  
Ending balance: collectively evaluated for impairment
    11,863       7,933       789       482       805       2,023       1,086       24,981  
 
                                               
Total ending balance
  $ 12,531     $ 11,328     $ 854     $ 482     $ 805     $ 2,023     $ 1,086     $ 29,109  
 
                                               
 
                                                               
Loans and leases:
                                                               
Ending balance: individually evaluated for impairment
  $ 2,253     $ 25,741     $ 661     $ 1,338     $ 62     $ 985             $ 31,040  
Ending balance: collectively evaluated for impairment
    461,489       571,219       43,178       209,425       44,906       87,890               1,418,107  
 
                                                 
Total ending balance
  $ 463,742     $ 596,960     $ 43,839     $ 210,763     $ 44,968     $ 88,875             $ 1,449,147  
 
                                                 
Impaired Loans and Leases
The following presents, by class of loans and leases, the recorded investment and unpaid principal balance of impaired loans and leases, the amounts of the impaired loans and leases for which there is not an allowance for credit losses and the amounts for which there is an allowance for credit losses at June 30, 2011 and December 31, 2010:
                                                 
    At June 30, 2011     At December 31, 2010  
            Unpaid                     Unpaid        
    Recorded     Principal     Related     Recorded     Principal     Related  
(Dollars in thousands)   Investment     Balance     Allowance     Investment     Balance     Allowance  
 
                                               
Impaired loans and leases with no related allowance recorded:
                                               
Commercial, financial and agricultural
  $ 5,143     $ 6,028             $ 4,761     $ 5,074          
Real estate-commercial real estate
    25,011       28,869               21,403       23,094          
Real estate-construction
    7,469       9,453               6,225       8,025          
Real estate-residential secured for business purpose
    218       729               361       730          
Real estate-residential secured for personal purpose
    219       219               632       632          
Real estate-home equity secured for personal purpose
    31       31               —       —          
Loans to individuals
    52       52               81       81          
Lease financings
    885       885               1,127       1,127          
 
                                       
Total impaired loans and leases with no related allowance recorded:
  $ 39,028     $ 46,266             $ 34,590     $ 38,763          
 
                                       
 
                                               
Impaired loans and leases with an allowance recorded:
                                               
Commercial, financial and agricultural
  $ 844     $ 867     $ 372     $ 3,041     $ 3,058     $ 650  
Real estate-commercial real estate
    7,240       7,676       860       6,780       8,321       909  
Real estate-construction
    1,429       1,444       73       649       649       33  
Real estate-residential secured for business purpose
    —       —       —       90       90       29  
Real estate-residential secured for personal purpose
    —       —       —       632       632       2  
 
                                   
Total impaired loans and leases with an allowance recorded
  $ 9,513     $ 9,987     $ 1,305     $ 11,192     $ 12,750     $ 1,623  
 
                                   
 
                                               
Total impaired loans and leases:
                                               
Commercial, financial and agricultural
  $ 5,987     $ 6,895     $ 372     $ 7,802     $ 8,132     $ 650  
Real estate-commercial real estate
    32,251       36,545       860       28,183       31,415       909  
Real estate-construction
    8,898       10,897       73       6,874       8,674       33  
Real estate-residential secured for business purpose
    218       729       —       451       820       29  
Real estate-residential secured for personal purpose
    219       219       —       1,264       1,264       2  
Real estate-home equity secured for personal purpose
    31       31       —       —       —       —  
Loans to individuals
    52       52       —       81       81       —  
Lease financings
    885       885       —       1,127       1,127       —  
 
                                   
Total impaired loans and leases:
  $ 48,541     $ 56,253     $ 1,305     $ 45,782     $ 51,513     $ 1,623  
 
                                   
The following presents by class of loans and leases, the average recorded investment in impaired loans and leases and an analysis of interest on impaired loans and leases:
                                                 
    Three Months Ended June 30, 2011     Three Months Ended June 30, 2010  
                    Interest                     Interest  
                    Income That                     Income That  
                    Would Have                     Would Have  
                    Been                     Been  
                    Recognized                     Recognized  
    Average     Interest     Under     Average     Interest     Under  
    Recorded     Income     Original     Recorded     Income     Original  
(Dollars in thousands)   Investment     Recognized*     Terms     Investment     Recognized*     Terms  
 
                                               
Commercial, financial and agricultural
  $ 6,387     $ 12     $ 105     $ 2,461     $ 3     $ 35  
Real estate-commercial real estate
    26,802       48       452       17,841       36       270  
Real estate-construction
    9,093       28       88       9,159       —       96  
Real estate-residential secured for business purpose
    327       1       3       879       9       7  
Real estate-residential secured for personal purpose
    544       2       5       1,122       —       18  
Real estate-home equity secured for personal purpose
    23       —       —       249       —       3  
Loans to individuals
    58       2       —       62       2       —  
Lease financings
    972       —       —       990       —       —  
 
                                   
Total
  $ 44,206     $ 93     $ 653     $ 32,763     $ 50     $ 429  
 
                                   
     
*  
Includes interest income recognized on accruing troubled debt restructured loans of $73 thousand and $26 thousand for the three months ended June 30, 2011 and 2010, respectively.
                                                 
    Six Months Ended June 30, 2011     Six Months Ended June 30, 2010  
                    Interest                     Interest  
                    Income That                     Income That  
                    Would Have                     Would Have  
                    Been                     Been  
                    Recognized                     Recognized  
    Average     Interest     Under     Average     Interest     Under  
    Recorded     Income     Original     Recorded     Income     Original  
(Dollars in thousands)   Investment     Recognized*     Terms     Investment     Recognized*     Terms  
 
                                               
Commercial, financial and agricultural
  $ 6,753     $ 14     $ 193     $ 2,937     $ 6     $ 89  
Real estate-commercial real estate
    26,225       52       844       17,016       58       520  
Real estate-construction
    8,141       28       175       11,607       —       289  
Real estate-residential secured for business purpose
    380       3       9       869       18       13  
Real estate-residential secured for personal purpose
    750       19       20       1,182       13       23  
Real estate-home equity secured for personal purpose
    13       —       —       249       —       5  
Loans to individuals
    62       3       1       63       3       —  
Lease financings
    1,034       —       —       949       —       —  
 
                                   
Total
  $ 43,358     $ 119     $ 1,242     $ 34,872     $ 98     $ 939  
 
                                   
     
*  
Includes interest income recognized on accruing troubled debt restructured loans of $79 thousand and $74 thousand for the six months ended June 30, 2011 and 2010, respectively.