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Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2014
Allowance For Loan Losses Disclosure [Abstract]  
Schedule of allowances for loan losses by portfolio segment
Allowance for Loan Losses

The following table presents the activity of the allowance for loan losses by portfolio segment for the three months
ended June 30. 
Allowance for Loan Losses:
 
June 30, 2014
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
12,453

 
$
1,581

 
$
3,864

 
$
2,510

 
$
20,408

Provision for loan losses*
 
(1,051
)
 
(54
)
 
533

 
(248
)
 
(820
)
Loans charged -off
 
(710
)
 
(633
)
 
(982
)
 
—

 
(2,325
)
Recoveries
 
158

 
480

 
354

 
—

 
992

Ending Balance
 
$
10,850

 
$
1,374

 
$
3,769

 
$
2,262

 
$
18,255


* Provision before increase of $464 thousand in 2014 for decrease in FDIC indemnification asset
Allowance for Loan Losses:
 
June 30, 2013
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
14,144

 
$
5,400

 
$
3,481

 
$
2,247

 
$
25,272

Provision for loan losses*
 
1,660

 
303

 
611

 
126

 
2,700

Loans charged -off
 
(1,435
)
 
(4,127
)
 
(811
)
 
—

 
(6,373
)
Recoveries
 
162

 
16

 
356

 
—

 
534

Ending Balance
 
$
14,531

 
$
1,592

 
$
3,637

 
$
2,373

 
$
22,133


* Provision before increase of $260 thousand in 2013 for decrease in FDIC indemnification asset









The following table presents the activity of the allowance for loan losses by portfolio segment for the six months
ended June 30. 
Allowance for Loan Losses:
 
June 30, 2014
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
12,450

 
$
1,585

 
$
3,650

 
$
2,383

 
$
20,068

Provision for loan losses*
 
(319
)
 
12

 
1,333

 
(121
)
 
905

Loans charged -off
 
(1,646
)
 
(805
)
 
(2,035
)
 
 
 
(4,486
)
Recoveries
 
365

 
582

 
821

 
 
 
1,768

Ending Balance
 
$
10,850

 
$
1,374

 
$
3,769

 
$
2,262

 
$
18,255


* Provision before increase of $699 thousand in 2014 for decrease in FDIC indemnification asset
Allowance for Loan Losses:
 
June 30, 2013
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
10,987

 
$
5,426

 
$
3,879

 
$
1,666

 
$
21,958

Provision for loan losses*
 
2,924

 
500

 
844

 
707

 
4,975

Loans charged -off
 
(1,885
)
 
(4,399
)
 
(1,837
)
 
 
 
(8,121
)
Recoveries
 
2,505

 
65

 
751

 
 
 
3,321

Ending Balance
 
$
14,531

 
$
1,592

 
$
3,637

 
$
2,373

 
$
22,133


* Provision before increase of $1.01 million in 2013 for decrease in FDIC indemnification asset
Allocation of the allowance for loan losses by portfolio segment based on the impairment method
The following table presents the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method at June 30, 2014 and December 31, 2013. 
Allowance for Loan Losses
 
June 30, 2014
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
$
2,590

 
$
—

 
$
—

 
$
—

 
$
2,590

Collectively evaluated for impairment
 
7,467

 
1,295

 
3,769

 
2,262

 
14,793

Acquired with deteriorated credit quality
 
793

 
79

 
—

 
—

 
872

Ending Balance
 
$
10,850

 
$
1,374

 
$
3,769

 
$
2,262

 
$
18,255

 
Loans:
 
June 30, 2014
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
$
15,548

 
$
35

 
$
—

 
 
 
$
15,583

Collectively evaluated for impairment
 
1,028,728

 
476,753

 
269,610

 
 
 
1,775,091

Acquired with deteriorated credit quality
 
7,665

 
1,872

 
—

 
 
 
9,537

Ending Balance
 
$
1,051,941

 
$
478,660

 
$
269,610

 
 
 
$
1,800,211

Allowance for Loan Losses:
 
December 31, 2013
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
3,158

 
—

 
—

 
—

 
3,158

Collectively evaluated for impairment
 
8,421

 
1,408

 
3,650

 
2,383

 
15,862

Acquired with deteriorated credit quality
 
871

 
177

 
—

 
—

 
1,048

Ending Balance
 
$
12,450

 
$
1,585

 
$
3,650

 
$
2,383

 
$
20,068

Loans
 
December 31, 2013
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
18,825

 
37

 
—

 
 
 
18,862

Collectively evaluated for impairment
 
1,020,771

 
481,439

 
269,352

 
 
 
1,771,562

Acquired with deteriorated credit quality
 
8,001

 
2,397

 
—

 
 
 
10,398

Ending Balance
 
$
1,047,597

 
$
483,873

 
$
269,352

 
 
 
$
1,800,822
Schedule of loans individually evaluated for impairment by class of loans
The following tables present loans individually evaluated for impairment by class of loans. 
 
 
 
 
 
 
June 30, 2014
 
 
 
 
 
 
Unpaid
Principal
 
Recorded
 
Allowance
for Loan
Losses
 
Average
Recorded
 
Interest
Income
 
Cash Basis
Interest
(Dollar amounts in thousands)
 
Balance
 
Investment
 
Allocated
 
Investment
 
Recognized
 
Recognized
With no related allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
265

 
$
265

 
$
—

 
$
1,359

 
$
—

 
$
—

Farmland
 
—

 
—

 
—

 
—

 
—

 
—

Non Farm, Non Residential
 
250

 
84

 
—

 
97

 
—

 
—

Agriculture
 
—

 
—

 
—

 
—

 
—

 
—

All Other Commercial
 
—

 
—

 
—

 
—

 
—

 
—

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
—

 
—

 
—

 
—

 
—

 
—

Home Equity
 
—

 
—

 
—

 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

 
—

 
—

 
—

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
8,895

 
7,381

 
1,623

 
7,850

 
—

 
—

Farmland
 
—

 
—

 
—

 
—

 
—

 
—

Non Farm, Non Residential
 
6,518

 
6,518

 
802

 
6,666

 
—

 
—

Agriculture
 
—

 
—

 
—

 
—

 
—

 
—

All Other Commercial
 
1,384

 
1,384

 
165

 
1,159

 
—

 
—

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
35

 
35

 
—

 
36

 
—

 
—

Home Equity
 
—

 
—

 
—

 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

 
—

 
—

 
—

TOTAL
 
$
17,347

 
$
15,667

 
$
2,590

 
$
17,167

 
$
—

 
$
—

 

 
 
 
 
 
 
December 31, 2013
 
 
 
 
 
 
Unpaid
Principal
 
Recorded
 
Allowance
for Loan
Losses
 
Average
Recorded
 
Interest
Income
 
Cash Basis
Interest
Income
(Dollar amounts in thousands)
 
Balance
 
Investment
 
Allocated
 
Investment
 
Recognized
 
Recognized
With no related allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
2,120

 
$
1,918

 
$
—

 
$
1,555

 
$
—

 
$
—

Farmland
 
—

 
—

 
—

 
—

 
—

 
—

Non Farm, Non Residential
 
271

 
105

 
—

 
26

 
—

 
—

Agriculture
 
—

 
—

 
—

 
—

 
—

 
—

All Other Commercial
 
—

 
—

 
—

 
—

 
—

 
—

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
—

 
—

 
—

 
7

 
—

 
—

Home Equity
 
—

 
—

 
—

 
—

 
—

 
—

Junior Liens
 
—

 
—

 
—

 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

 
—

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

 
—

 
—

 
—

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
10,134

 
8,620

 
1,612

 
13,029

 
217

 
217

Farmland
 
—

 
—

 
—

 
356

 
113

 
113

Non Farm, Non Residential
 
7,664

 
7,204

 
1,500

 
7,921

 
—

 
—

Agriculture
 
—

 
—

 
—

 
—

 
—

 
—

All Other Commercial
 
1,062

 
1,062

 
46

 
2,979

 
—

 
—

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
37

 
37

 
—

 
524

 
—

 
—

Home Equity
 
—

 
—

 
—

 
113

 
—

 
—

Junior Liens
 
—

 
—

 
—

 
—

 
—

 
—

Multifamily
 
—

 
—

 
—

 
2,216

 
—

 
—

All Other Residential
 
—

 
—

 
—

 
—

 
—

 
—

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
—

 
—

 
—

 
—

 
—

 
—

All Other Consumer
 
—

 
—

 
—

 
—

 
—

 
—

TOTAL
 
$
21,288

 
$
18,946

 
$
3,158

 
$
28,726

 
$
330

 
$
330

 
Schedule of non-performing loans
The table below presents the recorded investment in non-performing loans.
 
 
June 30, 2014
 
December 31, 2013
 
 
Loans Past
Due Over
90 Day Still
 
Troubled
Debt
 
 
 
Loans Past
Due Over
90 Day Still
 
Troubled
Debt
 
 
(Dollar amounts in thousands)
 
Accruing
 
Restructurings
 
Nonaccrual
 
Accruing
 
Restructurings
 
Nonaccrual
Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
—

 
$
5,053

 
$
4,606

 
$
240

 
$
6,578

 
$
6,861

Farmland
 
—

 
—

 
91

 
—

 
—

 
99

Non Farm, Non Residential
 
—

 
4,080

 
5,364

 
489

 
5,687

 
4,918

Agriculture
 
—

 
—

 
320

 
—

 
—

 
134

All Other Commercial
 
—

 
—

 
1,720

 
—

 
—

 
1,412

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
722

 
4,916

 
4,493

 
1,100

 
4,283

 
4,047

Home Equity
 
9

 
—

 
287

 
40

 
—

 
195

Junior Liens
 
80

 
—

 
409

 
147

 
—

 
390

Multifamily
 
—

 
56

 
1

 
—

 
61

 
433

All Other Residential
 
3

 
—

 
119

 
1

 
—

 
130

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
108

 
524

 
385

 
187

 
626

 
186

All Other Consumer
 
—

 
35

 
611

 
3

 
17

 
974

TOTAL
 
$
922

 
$
14,664

 
$
18,406

 
$
2,207

 
$
17,252

 
$
19,779
Aging of recorded investment in loans by past due category and class of loans
The following table presents the aging of the recorded investment in loans by past due category and class of loans. 
 
 
June 30, 2014
 
 
30-59 Days
 
60-89 Days
 
Greater
than 90 days
 
Total
 
 
 
 
(Dollar amounts in thousands)
 
Past Due
 
Past Due
 
Past Due
 
Past Due
 
Current
 
Total
Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
2,952

 
$
905

 
$
3,199

 
$
7,056

 
$
467,757

 
$
474,813

Farmland
 
—

 
—

 
—

 
—

 
92,786

 
92,786

Non Farm, Non Residential
 
452

 
422

 
565

 
1,439

 
235,586

 
237,025

Agriculture
 
111

 
—

 
151

 
262

 
120,851

 
121,113

All Other Commercial
 
41

 
122

 
188

 
351

 
125,853

 
126,204

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
1,060

 
967

 
2,039

 
4,066

 
320,554

 
324,620

Home Equity
 
149

 
10

 
97

 
256

 
40,292

 
40,548

Junior Liens
 
245

 
102

 
277

 
624

 
31,616

 
32,240

Multifamily
 
16

 
—

 
—

 
16

 
73,717

 
73,733

All Other Residential
 
—

 
—

 
3

 
3

 
7,516

 
7,519

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
2,948

 
350

 
115

 
3,413

 
245,839

 
249,252

All Other Consumer
 
41

 
28

 
—

 
69

 
20,289

 
20,358

TOTAL
 
$
8,015

 
$
2,906

 
$
6,634

 
$
17,555

 
$
1,782,656

 
$
1,800,211

 
 
 
December 31, 2013
 
 
30-59 Days
 
60-89 Days
 
Greater
than 90 days
 
Total
 
 
 
 
(Dollar amounts in thousands)
 
Past Due
 
Past Due
 
Past Due
 
Past Due
 
Current
 
Total
Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
1,076

 
$
266

 
$
7,900

 
$
9,242

 
$
459,076

 
$
468,318

Farmland
 
—

 
—

 
—

 
—

 
92,602

 
92,602

Non Farm, Non Residential
 
362

 
—

 
2,042

 
2,404

 
239,183

 
241,587

Agriculture
 
31

 
32

 
—

 
63

 
136,388

 
136,451

All Other Commercial
 
50

 
217

 
188

 
455

 
108,184

 
108,639

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
5,594

 
1,513

 
1,701

 
8,808

 
324,141

 
332,949

Home Equity
 
307

 
7

 
40

 
354

 
41,350

 
41,704

Junior Liens
 
392

 
170

 
471

 
1,033

 
32,269

 
33,302

Multifamily
 
103

 
19

 
400

 
522

 
66,138

 
66,660

All Other Residential
 
88

 
—

 
1

 
89

 
9,169

 
9,258

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
3,579

 
612

 
227

 
4,418

 
243,146

 
247,564

All Other Consumer
 
123

 
22

 
7

 
152

 
21,636

 
21,788

TOTAL
 
$
11,705

 
$
2,858

 
$
12,977

 
$
27,540

 
$
1,773,282

 
$
1,800,822
Analysis of risk category of loans by class of loans
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as not rated are either less than $100 thousand or are included in groups of homogeneous loans. As of June 30, 2014 and December 31, 2013, and based on the most recent analysis performed, the risk category of loans by class of loans are as follows:
 
 
June 30, 2014
(Dollar amounts in thousands)
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Not Rated
 
Total
Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
417,190

 
$
29,830

 
$
19,433

 
$
3,628

 
$
3,478

 
$
473,559

Farmland
 
85,730

 
5,386

 
368

 
—

 
19

 
91,503

Non Farm, Non Residential
 
190,004

 
20,980

 
25,427

 
114

 
—

 
236,525

Agriculture
 
111,137

 
7,439

 
849

 
—

 
423

 
119,848

All Other Commercial
 
105,137

 
7,756

 
9,663

 
38

 
2,854

 
125,448

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
112,178

 
4,452

 
8,434

 
1,070

 
197,425

 
323,559

Home Equity
 
12,014

 
422

 
1,452

 
100

 
26,497

 
40,485

Junior Liens
 
8,284

 
99

 
573

 
65

 
23,117

 
32,138

Multifamily
 
68,865

 
3,614

 
1,104

 
—

 
—

 
73,583

All Other Residential
 
1,287

 
195

 
427

 
—

 
5,591

 
7,500

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
11,083

 
213

 
339

 
17

 
236,521

 
248,173

All Other Consumer
 
3,296

 
47

 
70

 
10

 
16,807

 
20,230

TOTAL
 
$
1,126,205

 
$
80,433

 
$
68,139

 
$
5,042

 
$
512,732

 
$
1,792,551

 
 
December 31, 2013
(Dollar amounts in thousands)
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Not Rated
 
Total
Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
$
406,650

 
$
18,968

 
$
30,986

 
$
4,069

 
$
6,426

 
$
467,099

Farmland
 
86,633

 
3,631

 
347

 
—

 
445

 
91,056

Non Farm, Non Residential
 
207,115

 
13,408

 
19,719

 
809

 
—

 
241,051

Agriculture
 
128,137

 
6,482

 
105

 
—

 
71

 
134,795

All Other Commercial
 
93,515

 
2,297

 
10,038

 
44

 
2,243

 
108,137

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
114,074

 
3,834

 
8,498

 
995

 
204,416

 
331,817

Home Equity
 
12,883

 
274

 
1,071

 
113

 
27,295

 
41,636

Junior Liens
 
8,858

 
60

 
550

 
67

 
23,654

 
33,189

Multifamily
 
63,073

 
1,908

 
1,482

 
48

 
—

 
66,511

All Other Residential
 
3,643

 
—

 
31

 
—

 
5,550

 
9,224

Consumer
 


 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 
11,447

 
219

 
510

 
9

 
234,210

 
246,395

All Other Consumer
 
3,507

 
46

 
79

 
22

 
17,984

 
21,638

TOTAL
 
$
1,139,535

 
$
51,127

 
$
73,416

 
$
6,176

 
$
522,294

 
$
1,792,548
Troubled Debt Restructurings on Financing Receivables
During the three and six months ended June 30, 2014 and 2013, the terms of certain loans were modified as troubled debt restructurings (TDRs). The following tables present the activity for TDR's.
 
 
 
 
2014
 
 
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Total
April 1,
 
9,343

 
4,362

 
620

 
14,325

    Added
 
441

 
668

 
30

 
1,139

    Charged Off
 
—

 
—

 
(19
)
 
(19
)
    Payments
 
(578
)
 
(74
)
 
(72
)
 
(724
)
June 30,
 
9,206

 
4,956

 
559

 
14,721

 
 
 
 
2013
 
 
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Total
April 1,
 
16,070

 
4,747

 
700

 
21,285

    Added
 
—

 
—

 
90

 
90

    Charged Off
 
—

 
(50
)
 
(23
)
 
(73
)
    Payments
 
(1,065
)
 
(125
)
 
(74
)
 
(1,264
)
June 30,
 
15,005

 
4,572

 
693

 
20,270

 
 
 
 
2014
 
 
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Total
January 1,
 
12,327

 
4,330

 
644

 
17,301

    Added
 
441

 
801

 
98

 
1,340

    Charged Off
 
(1,069
)
 
—

 
(39
)
 
(1,108
)
    Payments
 
(2,493
)
 
(175
)
 
(144
)
 
(2,812
)
June 30,
 
9,206

 
4,956

 
559

 
14,721

 
 
 
 
2013
 
 
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Total
January 1,
 
16,474

 
4,107

 
704

 
21,285

    Added
 
—

 
780

 
163

 
943

    Charged Off
 
—

 
(50
)
 
(32
)
 
(82
)
    Payments
 
(1,469
)
 
(265
)
 
(142
)
 
(1,876
)
June 30,
 
15,005

 
4,572

 
693

 
20,270