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Acquired Loans (Tables)
 3 Months Ended
Mar. 31, 2012
Acquired Loans Disclosure [Abstract]  
Schedule of covered and noncovered acquired loans by type
For the periods presented, acquired loans consisted of the following ($ in thousands):
 
   
March 31, 2012
  
December 31, 2011
 
   
Covered
  
Noncovered
  
Covered
  
Noncovered (1)
 
Loans secured by real estate:
            
Construction, land development and other land loans
 $3,940  $14,346  $4,209  $- 
Secured by 1-4 family residential properties
  30,221   20,409   31,874   76 
Secured by nonfarm, nonresidential properties
  30,737   54,954   30,889   - 
Other
  5,087   695   5,126   - 
Commercial and industrial loans
  2,768   5,732   2,971   69 
Consumer loans
  206   4,188   290   4,146 
Other loans
  1,460   345   1,445   72 
Acquired loans
  74,419   100,669   76,804   4,363 
Less allowance for loan losses, acquired loans
  736   37   502   - 
Net acquired loans
 $73,683  $100,632  $76,302  $4,363 
 
(1)
Acquired noncovered loans were included in LHFI at December 31, 2011.
Fair value of acquired loans
The following table presents the fair value of loans acquired as of the date of the Bay Bank acquisition ($ in thousands):
 
At acquisition date:
 
March 16, 2012
 
Contractually required principal and interest
 $134,961 
Nonaccretable difference
  19,852 
Cash flows expected to be collected
  115,109 
Accretable yield
  17,056 
Fair value of loans at acquisition
 $98,053 
Changes in the carrying value of acquired loans
The following tables present changes in the carrying value of the acquired loans for the periods presented ($ in thousands):
 
   
Covered
  
Noncovered (1)
 
   
Acquired
  
Acquired
  
Acquired
  
Acquired
 
   
Impaired
  
Nonimpaired (2)
  
Impaired
  
Nonimpaired (2)
 
Carrying value at January 1, 2011
 $-  $-  $-  $- 
Loans acquired
  93,940   3,830   9,468   176 
Accretion to interest income
  4,347   543   349   4 
Payments received, net (3)
  (25,764)  (202)  (5,076)  (47)
Other
  110   -   (391)  (120)
Less allowance for loan losses, acquired loans
  (502)  -   -   - 
Carrying value at December 31, 2011
  72,131   4,171   4,350   13 
Loans acquired (4)
  -   -   92,312   5,741 
Accretion to interest income (5)
  2,311   59   148   - 
Payments received, net
  (4,606)  (238)  (1,990)  (332)
Other
  56   33   186   241 
Less allowance for loan losses, acquired loans
  (234)  -   (37)  - 
Carrying value at March 31, 2012
 $69,658  $4,025  $94,969  $5,663 
 
(1)
Acquired noncovered loans were included in LHFI at December 31, 2011.
(2)
Acquired nonimpaired loans consist of revolving credit agreements that are not in scope for FASB ASC Topic 310-30.
(3)
Includes $4.3 million  for loan recoveries and an adjustment to payments recorded for covered acquired impaired loans,which was reported as "Changes in expected cash flows" at December 31, 2011.
(4)
Fair value of loans acquired from Bay Bank on March 16, 2012.
(5)
Accretion to interest income for Bay Bank since acquisition at March 16, 2012 is considered immaterial.
Changes in accretable yield of acquired loans
The following table presents changes in the accretable yield for the three months ended March 31, 2012 ($ in thousands):

Accretable yield at January 1, 2012 (1)
 $(17,653)
Additions due to acquisition (2)
  (17,056)
Accretion to interest income (3)
  2,459 
Disposals
  323 
Reclassification to / (from) nonaccretable difference
  - 
Accretable yield at March 31, 2012
 $(31,927)
 
(1)
Accretable yield at January 1, 2012, includes $777 thousand of accretable yield for noncovered loans acquired from Heritage and accounted for under FASB ASC Topic 310-30.
(2)
Accretable yield on loans acquired from Bay Bank on March 16, 2012.
(3)
Accretion to interest income for Bay Bank since acquisition at March, 16, 2012 is considered immaterial.
Components of the allowance for loan losses on acquired impaired loans
The following table presents the components of the allowance for loan losses on acquired impaired loans for the three months ended March 31, 2012 ($ in thousands):

   
Covered
  
Noncovered
  
Total
 
Balance at January 1, 2012
 $502  $-  $502 
Provision for loan losses, acquired loans
  (248)  54   (194)
Loans charged-off
  89   (26)  63 
Recoveries
  393   9   402 
Net charge-offs
  482   (17)  465 
Balance at March 31, 2012
 $736  $37  $773 
Carrying Amount of Acquired Loans by Credit Quality Indicator
The tables below illustrate the carrying amount of acquired loans by credit quality indicator at March 31, 2012 and December 31, 2011 ($ in thousands):

   
March 31, 2012
 
   
Commercial Loans
 
   
Pass -
  
Special Mention -
  
Substandard -
  
Doubtful -
    
   
Categories 1-6
  
Category 7
  
Category 8
  
Category 9
  
Subtotal
 
Covered Loans: (1)
               
Loans secured by real estate:
               
Construction, land development and other land loans
 $1,098  $192  $1,363  $819  $3,472 
Secured by 1-4 family residential properties
  4,323   1,673   3,017   92   9,105 
Secured by nonfarm, nonresidential properties
  10,875   4,667   11,762   2,187   29,491 
Other
  874   562   1,010   46   2,492 
Commercial and industrial loans
  1,345   1,305   118   -   2,768 
Consumer loans
  -   -   -   -   - 
Other loans
  195   67   427   572   1,261 
Total covered loans
  18,710   8,466   17,697   3,716   48,589 
                      
Noncovered loans:
                    
Loans secured by real estate:
                    
Construction, land development and other land loans
  3,840   938   7,184   1,703   13,665 
Secured by 1-4 family residential properties
  5,179   1,436   5,735   49   12,399 
Secured by nonfarm, nonresidential properties
  21,297   13,171   17,896   2,497   54,861 
Other
  175   31   478   -   684 
Commercial and industrial loans
  4,325   752   628   27   5,732 
Consumer loans
  -   -   -   -   - 
Other loans
  240   -   27   -   267 
Total noncovered loans
  35,056   16,328   31,948   4,276   87,608 
Total acquired loans
 $53,766  $24,794  $49,645  $7,992  $136,197 

   
Consumer Loans
    
      
Past Due
  
Past Due Greater
        
Total
 
   
Current
  
30-89 Days
  
Than 90 Days
  
Nonaccrual
  
Subtotal
  
Acquired Loans
 
Covered Loans: (1)
                  
Loans secured by real estate:
                  
Construction, land development and other land loans
 $446  $19  $3  $-  $468  $3,940 
Secured by 1-4 family residential properties
  18,168   985   1,925   38   21,116   30,221 
Secured by nonfarm, nonresidential properties
  1,139   107   -   -   1,246   30,737 
Other
  2,550   45   -   -   2,595   5,087 
Commercial and industrial loans
  -   -   -   -   -   2,768 
Consumer loans
  206   -   -   -   206   206 
Other loans
  199   -   -   -   199   1,460 
Total covered loans
  22,708   1,156   1,928   38   25,830   74,419 
                          
Noncovered loans:
                        
Loans secured by real estate:
                        
Construction, land development and other land loans
  610   71   -   -   681   14,346 
Secured by 1-4 family residential properties
  7,277   518   215   -   8,010   20,409 
Secured by nonfarm, nonresidential properties
  93   -   -   -   93   54,954 
Other
  11   -   -   -   11   695 
Commercial and industrial loans
  -   -   -   -   -   5,732 
Consumer loans
  4,022   164   2   -   4,188   4,188 
Other loans
  78   -   -   -   78   345 
Total noncovered loans
  12,091   753   217   -   13,061   100,669 
Total acquired loans
 $34,799  $1,909  $2,145  $38  $38,891  $175,088 

(1)
Total dollar balances are presented in this table; however, these loans are covered by the loss-share agreement with the FDIC.
 
TNB is at risk for only 20% of the losses incurred on these loans.
 
      
December 31, 2011
 
      
Commercial Loans
 
      
Pass -
  
Special Mention -
  
Substandard -
  
Doubtful -
    
      
Categories 1-6
  
Category 7
  
Category 8
  
Category 9
  
Subtotal
 
Covered Loans: (1)
                  
Loans secured by real estate:
                  
  Construction, land development and other land loans
    $1,212  $194  $1,425  $909  $3,740 
  Secured by 1-4 family residential properties
     6,402   1,256   1,943   19   9,620 
  Secured by nonfarm, nonresidential properties
     13,302   5,275   8,932   2,134   29,643 
  Other
     878   429   658   86   2,051 
Commercial and industrial loans
     1,780   1,109   82   -   2,971 
Consumer loans
     -   -   -   -   - 
Other loans
     212   63   402   535   1,212 
Total covered loans
     23,786   8,326   13,442   3,683   49,237 
                         
Noncovered loans: (2)
                       
Loans secured by real estate:
                       
  Construction, land development and other land loans
     -   -   -   -   - 
  Secured by 1-4 family residential properties
     -   -   -   -   - 
  Secured by nonfarm, nonresidential properties
     -   -   -   -   - 
  Other
     -   -   -   -   - 
Commercial and industrial loans
     27   -   42   -   69 
Consumer loans
     -   -   -   -   - 
Other loans
     (3)  -   -   -   (3)
Total noncovered loans
     24   -   42   -   66 
Total acquired loans
    $23,810  $8,326  $13,484  $3,683  $49,303 
                         
   
Consumer Loans
     
      
Past Due
  
Past Due Greater
          
Total
 
   
Current
  
30-89 Days
  
Than 90 Days
  
Nonaccrual
  
Subtotal
  
Acquired Loans
 
Covered Loans: (1)
                       
Loans secured by real estate:
                       
  Construction, land development and other land loans
 $448  $18  $3  $-  $469  $4,209 
  Secured by 1-4 family residential properties
  19,159   1,044   2,013   38   22,254   31,874 
  Secured by nonfarm, nonresidential properties
  1,246   -   -   -   1,246   30,889 
  Other
  2,953   108   14   -   3,075   5,126 
Commercial and industrial loans
  -   -   -   -   -   2,971 
Consumer loans
  290   -   -   -   290   290 
Other loans
  230   3   -   -   233   1,445 
Total covered loans
  24,326   1,173   2,030   38   27,567   76,804 
                          
Noncovered loans:
                        
Loans secured by real estate:
                        
  Construction, land development and other land loans
  -   -   -   -   -   - 
  Secured by 1-4 family residential properties
  71   5   -   -   76   76 
  Secured by nonfarm, nonresidential properties
  -   -   -   -   -   - 
  Other
  -   -   -   -   -   - 
Commercial and industrial loans
  -   -   -   -   -   69 
Consumer loans
  3,943   202   1   -   4,146   4,146 
Other loans
  75   -   -   -   75   72 
Total noncovered loans
  4,089   207   1   -   4,297   4,363 
Total acquired loans
 $28,415  $1,380  $2,031  $38  $31,864  $81,167 
                          
(1) Total dollar balances are presented in this table; however, these loans are covered by the loss-share agreement with the FDIC.
      
TNB is at risk for only 20% of the losses incurred on these loans.
      
(2) Acquired noncovered loans were included in LHFI at December 31, 2011.
Aging Analysis of Past Due and Nonaccrual Acquired Loans, By Class
The following table provides an aging analysis of contractually past due and nonaccrual acquired loans, by class at March 31, 2012 and December 31, 2011 ($ in thousands):

   
March 31, 2012
 
   
Past Due
          
      
Greater than
        
Current
  
Total Acquired
 
   
30-89 Days
  
90 Days (1)
  
Total
  
Nonaccrual (2)
  
Loans
  
Loans
 
Covered loans:
                  
Loans secured by real estate:
                  
Construction, land development and other land loans
 $465  $1,021  $1,486  $445  $2,009  $3,940 
Secured by 1-4 family residential properties
  2,042   2,064   4,106   92   26,023   30,221 
Secured by nonfarm, nonresidential properties
  3,302   2,898   6,200   -   24,537   30,737 
Other
  739   -   739   -   4,348   5,087 
Commercial and industrial loans
  72   -   72   24   2,672   2,768 
Consumer loans
  -   -   -   -   206   206 
Other loans
  -   -   -   -   1,460   1,460 
Total past due covered loans
  6,620   5,983   12,603   561   61,255   74,419 
                          
Noncovered loans:
                        
Loans secured by real estate:
                        
Construction, land development and other land loans
  2,899   1,895   4,794   -   9,552   14,346 
Secured by 1-4 family residential properties
  1,223   1,236   2,459   -   17,950   20,409 
Secured by nonfarm, nonresidential properties
  228   904   1,132   -   53,822   54,954 
Other
  102   -   102   -   593   695 
Commercial and industrial loans
  16   19   35   -   5,697   5,732 
Consumer loans
  164   2   166   -   4,022   4,188 
Other loans
  -   -   -   -   345   345 
Total past due noncovered loans
  4,632   4,056   8,688   -   91,981   100,669 
Total past due acquired loans
 $11,252  $10,039  $21,291  $561  $153,236  $175,088 
 
(1)
- Past due greater than 90 days but still accruing interest.
(2)
- Acquired loans not accounted for under FASB ASC Topic 310-30.
 
  December 31, 2011 
  
Past Due
          
     Greater than        Current  Total Acquired 
  30-89 Days  90 Days (1)  Total  Nonaccrual (2)  
Loans
  Loans 
Covered loans:                  
Loans secured by real estate:
                  
Construction, land development and other land loans
 $253  $1,004  $1,257  $386  $2,566  $4,209 
Secured by 1-4 family residential properties
  1,339   2,159   3,498   92   28,284   31,874 
Secured by nonfarm, nonresidential properties
  4,464   2,463   6,927   -   23,962   30,889 
Other
  176   14   190   -   4,936   5,126 
Commercial and industrial loans
  37   45   82   13   2,876   2,971 
Consumer loans
  -   -   -   -   290   290 
Other loans
  3   -   3   -   1,442   1,445 
Total past due covered loans
  6,272   5,685   11,957   491   64,356   76,804 
                         
Noncovered loans: (3)                        
Loans secured by real estate:
                        
Construction, land development and other land loans
  -   -   -   -   -   - 
Secured by 1-4 family residential properties
  5   -   5   -   71   76 
Secured by nonfarm, nonresidential properties
  -   -   -   -   -   - 
Other
  -   -   -   -   -   - 
Commercial and industrial loans
  19   -   19   -   50   69 
Consumer loans
  202   2   204   -   3,942   4,146 
Other loans
  -   -   -   -   72   72 
Total past due noncovered loans
  226   2   228   -   4,135   4,363 
Total past due acquired loans
 $6,498  $5,687  $12,185  $491  $68,491  $81,167 
 
(1)
- Past due greater than 90 days but still accruing interest.
(2)
- Acquired loans not accounted for under FASB ASC Topic 310-30.
(3)
- Acquired noncovered loans were included in LHFI at December 31, 2011.