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Acquired Loans (Tables)
 9 Months Ended
Sep. 30, 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):
 
   
September 30, 2012
  
December 31, 2011
 
   
Covered
  
Noncovered
  
Covered
  
Noncovered (1)
 
Loans secured by real estate:
            
Construction, land development and other land loans
 $3,714  $11,504  $4,209  $- 
Secured by 1-4 family residential properties
  24,949   18,032   31,874   76 
Secured by nonfarm, nonresidential properties
  28,291   47,114   30,889   - 
Other
  4,198   378   5,126   - 
Commercial and industrial loans
  1,803   3,371   2,971   69 
Consumer loans
  172   2,575   290   4,146 
Other loans
  1,376   136   1,445   72 
Acquired loans
  64,503   83,110   76,804   4,363 
Less allowance for loan losses, acquired loans
  3,526   817   502   - 
Net acquired loans
 $60,977  $82,293  $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
 $134,615 
Nonaccretable difference
  20,161 
Cash flows expected to be collected
  114,454 
Accretable yield (1)
  16,540 
Fair value of loans at acquisition
 $97,914 
 
(1)
Includes $1.002 million of accretable yield relating to acquired loans not accounted for under FASB ASC Topic 310-30.
Changes in the carrying value of acquired loans
The following tables present changes in the carrying value of the acquired loans for the periods presented ($ in thousands):
 
   
Covered
  
Noncovered (1)
 
   
Acquired
  
Acquired
  
Acquired
  
Acquired
 
   
Impaired
  
Not ASC 310-30 (2)
  
Impaired
  
Not ASC 310-30 (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)
  -   -   91,987   5,927 
Accretion to interest income
  6,359   167   2,686   128 
Payments received, net
  (19,994)  (683)  (20,820)  (1,331)
Other
  1,822   28   268   (98)
Less allowance for loan losses, acquired loans
  (3,024)  -   (817)  - 
Carrying value at September 30, 2012
 $57,294  $3,683  $77,654  $4,639 
 
(1)
Acquired noncovered loans were included in LHFI at December 31, 2011.
(2)
"Acquired Not ASC 310-30" loans consist of revolving credit agreements that are not in scope for FASB ASC Topic 310-30.
(3)
Includes $4.3 million  for loan recoveries and an adjustment to payments recorded for covered acquired impaired loans, which was reported as "Changes in expected cash flows" at December 31, 2011.
(4)
Fair value of loans acquired from Bay Bank on March 16, 2012.
Changes in accretable yield of acquired loans
The following table presents changes in the accretable yield for the nine months ended September 30, 2012 ($ in thousands):

Accretable yield at January 1, 2012 (1)
 $(17,653)
Additions due to acquisition (2)
  (15,538)
Accretion to interest income
  9,045 
Disposals
  2,687 
Reclassification to / (from) nonaccretable difference
  (6,429)
Accretable yield at September 30, 2012
 $(27,888)
 
(1)
Accretable yield at January 1, 2012, includes $777 thousand of accretable yield for noncovered loans acquired  from Heritage and accounted for under FASB ASC Topic 310-30.
(2)
Accretable yield on loans acquired from Bay Bank on March 16, 2012.
Components of the allowance for loan losses on acquired impaired loans
The following table presents the components of the allowance for loan losses on acquired impaired loans for the nine months ended September 30, 2012 ($ in thousands):

   
Covered
  
Noncovered
  
Total
 
Balance at January 1, 2012
 $502  $-  $502 
Loans charged-off
  174   (278)  (104)
Recoveries
  195   167   362 
Net charge-offs
  369   (111)  258 
Provision for loan losses, acquired loans
  2,655   928   3,583 
Balance at September 30, 2012
 $3,526  $817  $4,343 
Carrying Amount of Acquired Loans by Credit Quality Indicator
The tables below illustrate the carrying amount of acquired loans by credit quality indicator at September 30, 2012 and December 31, 2011 ($ in thousands):

   
September 30, 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
 $1,159  $18  $1,275  $742  $3,194 
Secured by 1-4 family residential properties
  3,575   1,444   2,519   83   7,621 
Secured by nonfarm, nonresidential properties
  10,295   3,186   13,024   810   27,315 
Other
  361   346   1,486   -   2,193 
Commercial and industrial loans
  255   1,316   215   17   1,803 
Consumer loans
  -   -   -   -   - 
Other loans
  238   -   431   537   1,206 
Total covered loans
  15,883   6,310   18,950   2,189   43,332 
                      
Noncovered loans:
                    
Loans secured by real estate:
                    
Construction, land development and other land loans
  2,227   882   6,207   835   10,151 
Secured by 1-4 family residential properties
  4,798   808   3,569   23   9,198 
Secured by nonfarm, nonresidential properties
  19,105   11,005   16,038   877   47,025 
Other
  208   31   122   -   361 
Commercial and industrial loans
  2,929   359   83   -   3,371 
Consumer loans
  -   -   -   -   - 
Other loans
  85   -   24   -   109 
Total noncovered loans
  29,352   13,085   26,043   1,735   70,215 
Total acquired loans
 $45,235  $19,395  $44,993  $3,924  $113,547 

   
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
 $311  $209  $-  $-  $520  $3,714 
Secured by 1-4 family residential properties
  14,982   1,105   1,203   38   17,328   24,949 
Secured by nonfarm, nonresidential properties
  807   169   -   -   976   28,291 
Other
  1,821   130   44   10   2,005   4,198 
Commercial and industrial loans
  -   -   -   -   -   1,803 
Consumer loans
  172   -   -   -   172   172 
Other loans
  170   -   -   -   170   1,376 
Total covered loans
  18,263   1,613   1,247   48   21,171   64,503 
                          
Noncovered loans:
                        
Loans secured by real estate:
                        
Construction, land development and other land loans
  1,314   -   39   -   1,353   11,504 
Secured by 1-4 family residential properties
  8,513   173   87   61   8,834   18,032 
Secured by nonfarm, nonresidential properties
  89   -   -   -   89   47,114 
Other
  17   -   -   -   17   378 
Commercial and industrial loans
  -   -   -   -   -   3,371 
Consumer loans
  2,474   80   21   -   2,575   2,575 
Other loans
  27   -   -   -   27   136 
Total noncovered loans
  12,434   253   147   61   12,895   83,110 
Total acquired loans
 $30,697  $1,866  $1,394  $109  $34,066  $147,613 
 
(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: (2)
                        
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 September 30, 2012 and December 31, 2011 ($ in thousands):
 
  
September 30, 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
 $257  $242  $499  $445  $2,770  $3,714 
Secured by 1-4 family residential properties
  1,936   1,379   3,315   237   21,397   24,949 
Secured by nonfarm, nonresidential properties
  1,603   3,514   5,117   -   23,174   28,291 
Other
  189   64   253   10   3,935   4,198 
Commercial and industrial loans
  152   -   152   41   1,610   1,803 
Consumer loans
  -   -   -   -   172   172 
Other loans
  429   -   429   -   947   1,376 
Total past due covered loans
  4,566   5,199   9,765   733   54,005   64,503 
                          
Noncovered loans:
                        
Loans secured by real estate:
                        
Construction, land development and other land loans
  2,181   1,487   3,668   -   7,836   11,504 
Secured by 1-4 family residential properties
  435   1,325   1,760   61   16,211   18,032 
Secured by nonfarm, nonresidential properties
  661   951   1,612   159   45,343   47,114 
Other
  29   -   29   -   349   378 
Commercial and industrial loans
  65   17   82   -   3,289   3,371 
Consumer loans
  80   21   101   -   2,474   2,575 
Other loans
  -   -   -   -   136   136 
Total past due noncovered loans
  3,451   3,801   7,252   220   75,638   83,110 
Total past due acquired loans
 $8,017  $9,000  $17,017  $953  $129,643  $147,613 
 
(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.