10-Q 1 a12-19639_110q.htm 10-Q

Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C.  20549

 

FORM 10-Q

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

 

For The Quarterly Period Ended September 30, 2012

 

Commission File Number 0-16759

 

FIRST FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

 

INDIANA

 

35-1546989

(State or other jurisdiction

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

One First Financial Plaza, Terre Haute, IN

 

47807

(Address of principal executive office)

 

(Zip Code)

 

(812)238-6000

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes x  No o.

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes x  No o.

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,”  “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer o

 

Accelerated filer x

 

 

 

Non-accelerated filer o

 

Smaller reporting company o

(Do not check if a smaller reporting company)

 

 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes o  No x.

 

As of November 5, 2012, the registrant had outstanding 13,237,523 shares of common stock, without par value.

 

 

 



Table of Contents

 

FIRST FINANCIAL CORPORATION

 

FORM 10-Q

 

INDEX

 

 

Page No.

PART I. Financial Information

 

 

 

Item 1. Financial Statements:

 

 

 

Consolidated Balance Sheets

3

 

 

Consolidated Statements of Income and Comprehensive Income

4

 

 

Consolidated Statements of Shareholders’ Equity

5

 

 

Consolidated Statements of Cash Flows

7

 

 

Notes to Consolidated Financial Statements

8

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

 

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

27-30

 

 

Item 4. Controls and Procedures

31

 

 

PART II. Other Information:

 

 

 

Item 1. Legal Proceedings

31

 

 

Item 1A. Risk Factors

31

 

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

31

 

 

Item 3. Defaults upon Senior Securities

31

 

 

Item 4. Mine Safety Disclosures

31

 

 

Item 5. Other Information

31

 

 

Item 6. Exhibits

32

 

 

Signatures

33

 

2



Table of Contents

 

Part I — Financial Information

 

Item 1. Financial Statements

 

FIRST FINANCIAL CORPORATION

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands, except per share data)

 

 

 

September 30,

 

December 31,

 

 

 

2012

 

2011

 

 

 

(Unaudited)

 

ASSETS

 

 

 

 

 

Cash and due from banks

 

$

63,638

 

$

134,280

 

Federal funds sold and short-term investments

 

55,773

 

11,725

 

Securities available-for-sale

 

656,506

 

666,287

 

Loans:

 

 

 

 

 

Commercial

 

1,078,449

 

1,099,324

 

Residential

 

507,446

 

505,600

 

Consumer

 

273,196

 

289,717

 

 

 

1,859,091

 

1,894,641

 

Less:

 

 

 

 

 

Unearned Income

 

(930

)

(962

)

Allowance for loan losses

 

(21,457

)

(19,241

)

 

 

1,836,704

 

1,874,438

 

 

 

 

 

 

 

Restricted Stock

 

21,296

 

22,282

 

Accrued interest receivable

 

12,785

 

12,947

 

Premises and equipment, net

 

44,722

 

40,105

 

Bank-owned life insurance

 

76,280

 

82,646

 

Goodwill

 

37,612

 

37,612

 

Other intangible assets

 

4,216

 

5,142

 

Other real estate owned

 

8,670

 

4,964

 

FDIC Indemnification asset

 

1,602

 

2,384

 

Other assets

 

59,437

 

59,964

 

TOTAL ASSETS

 

$

2,879,241

 

$

2,954,776

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Deposits:

 

 

 

 

 

Noninterest-bearing

 

$

430,619

 

$

435,236

 

Interest-bearing:

 

 

 

 

 

Certificates of deposit of $100 or more

 

233,814

 

242,001

 

Other interest-bearing deposits

 

1,595,237

 

1,597,262

 

 

 

2,259,670

 

2,274,499

 

Short-term borrowings

 

43,997

 

100,022

 

Other borrowings

 

125,863

 

146,427

 

Other liabilities

 

80,950

 

86,867

 

TOTAL LIABILITIES

 

2,510,480

 

2,607,815

 

Shareholders’ equity

 

 

 

 

 

Common stock, $.125 stated value per share;
Authorized shares-40,000,000
Issued shares-14,490,609 in 2012 and 14,450,966 in 2011
Outstanding shares-13,237,523 in 2012 and 13,197,880 in 2011

 

1,808

 

1,806

 

Additional paid-in capital

 

69,692

 

69,328

 

Retained earnings

 

336,147

 

318,130

 

Accumulated other comprehensive income (loss)

 

(7,077

)

(10,494

)

Treasury shares at cost-1,253,086 in 2012 and 2011

 

(31,809

)

(31,809

)

TOTAL SHAREHOLDERS’ EQUITY

 

368,761

 

346,961

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

2,879,241

 

$

2,954,776

 

 

See accompanying notes.

 

3



Table of Contents

 

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Dollar amounts in thousands, except per share data)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2012

 

2011

 

2012

 

2011

 

 

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

(unaudited)

 

INTEREST INCOME:

 

 

 

 

 

 

 

 

 

Loans, including related fees

 

$

24,725

 

$

22,943

 

$

75,149

 

$

68,903

 

Securities:

 

 

 

 

 

 

 

 

 

Taxable

 

3,308

 

4,016

 

10,339

 

12,532

 

Tax-exempt

 

1,827

 

1,712

 

5,442

 

5,075

 

Other

 

568

 

479

 

1,781

 

1,426

 

TOTAL INTEREST INCOME

 

30,428

 

29,150

 

92,711

 

87,936

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

Deposits

 

1,881

 

2,974

 

6,714

 

9,339

 

Short-term borrowings

 

33

 

56

 

116

 

151

 

Other borrowings

 

1,108

 

1,216

 

3,648

 

3,628

 

TOTAL INTEREST EXPENSE

 

3,022

 

4,246

 

10,478

 

13,118

 

NET INTEREST INCOME

 

27,406

 

24,904

 

82,233

 

74,818

 

Provision for loan losses

 

2,559

 

1,360

 

7,304

 

3,894

 

NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES

 

24,847

 

23,544

 

74,929

 

70,924

 

NON-INTEREST INCOME:

 

 

 

 

 

 

 

 

 

Trust and financial services

 

1,413

 

1,002

 

4,332

 

3,530

 

Service charges and fees on deposit accounts

 

2,560

 

2,305

 

7,166

 

6,808

 

Other service charges and fees

 

2,506

 

2,142

 

7,237

 

6,223

 

Securities gains/(losses), net

 

17

 

 

677

 

7

 

Total impairment losses

 

 

(13

)

(11

)

(110

)

Loss recognized in other comprehensive loss

 

 

 

 

 

Net impairment loss recognized in earnings

 

 

(13

)

(11

)

(110

)

Insurance commissions

 

1,736

 

1,935

 

5,426

 

5,328

 

Gain on sales of mortgage loans

 

1,253

 

406

 

2,970

 

1,144

 

Other

 

203

 

1,133

 

1,159

 

2,168

 

TOTAL NON-INTEREST INCOME

 

9,688

 

8,910

 

28,956

 

25,098

 

NON-INTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

13,695

 

11,475

 

42,005

 

34,430

 

Occupancy expense

 

1,465

 

1,171

 

4,370

 

3,624

 

Equipment expense

 

1,335

 

1,079

 

4,016

 

3,308

 

FDIC Expense

 

494

 

161

 

1,449

 

1,440

 

Other

 

5,975

 

4,667

 

17,646

 

14,113

 

TOTAL NON-INTEREST EXPENSE

 

22,964

 

18,553

 

69,486

 

56,915

 

INCOME BEFORE INCOME TAXES

 

11,571

 

13,901

 

34,399

 

39,107

 

Provision for income taxes

 

3,480

 

4,087

 

10,160

 

12,073

 

NET INCOME

 

8,091

 

9,814

 

24,239

 

27,034

 

OTHER COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

Change in unrealized gains/losses on securities, net of reclassifications

 

3,123

 

6,322

 

3,763

 

21,828

 

Tax effect

 

(1,249

)

(2,529

)

(1,505

)

(8,731

)

 

 

1,874

 

3,793

 

2,258

 

13,097

 

Change in funded status of post retirement benefits

 

645

 

505

 

1,932

 

1,513

 

Tax effect

 

(258

)

(202

)

(773

)

(605

)

 

 

387

 

303

 

1,159

 

908

 

TOTAL OTHER COMPREHENSIVE INCOME

 

2,261

 

4,096

 

3,417

 

14,005

 

COMPREHENSIVE INCOME

 

$

10,352

 

$

13,910

 

$

27,656

 

$

41,039

 

PER SHARE DATA

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

0.61

 

$

0.75

 

$

1.83

 

$

2.06

 

Dividends per Share

 

$

 

$

 

$

0.47

 

$

0.47

 

Weighted average number of shares outstanding (in thousands)

 

13,238

 

13,152

 

13,233

 

13,152

 

 

See accompanying notes.

 

4



Table of Contents

 

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

 

Three Months Ended

September 30, 2012, and 2011

(Dollar amounts in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Common

 

Additional

 

Retained

 

Comprehensive

 

Treasury

 

 

 

 

 

Stock

 

Capital

 

Earnings

 

Income/(Loss)

 

Stock

 

Total

 

Balance, July 1, 2012

 

$

1,807

 

$

69,571

 

$

328,056

 

$

(9,338

)

$

(31,809

)

$

358,287

 

Net income

 

 

 

8,091

 

 

 

8,091

 

Change in net unrealized gains/(losses) on securities available for-sale, net of tax

 

 

 

 

1,874

 

 

1,874

 

Change in funded status of retirement plans, net of tax

 

 

 

 

387

 

 

387

 

Omnibus Equity Incentive Plan

 

1

 

121

 

 

 

 

122

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, September 30, 2012

 

$

1,808

 

$

69,692

 

$

336,147

 

$

(7,077

)

$

(31,809

)

$

368,761

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, July 1, 2011

 

$

1,806

 

$

68,944

 

$

304,358

 

$

540

 

$

(32,983

)

$

342,665

 

Net income

 

 

 

9,814

 

 

 

9,814

 

Change in net unrealized gains/(losses) on securities available for-sale, net of tax

 

 

 

 

3,793

 

 

3,793

 

Change in funded status of retirement plans, net of tax

 

 

 

 

303

 

 

303

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, September 30, 2011

 

$

1,806

 

$

68,944

 

$

314,172

 

$

4,636

 

$

(32,983

)

$

356,575

 

 

See accompanying notes.

 

5



Table of Contents

 

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

 

Nine Months Ended

September 30, 2012, and 2011

(Dollar amounts in thousands, except per share data)

(Unaudited)

 

 

 

 

 

 

 

 

 

Accumulated

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

Common

 

Additional

 

Retained

 

Comprehensive

 

Treasury

 

 

 

 

 

Stock

 

Capital

 

Earnings

 

Income/(Loss)

 

Stock

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2012

 

$

1,806

 

$

69,328

 

$

318,130

 

$

(10,494

)

$

(31,809

)

$

346,961

 

Net income

 

 

 

24,239

 

 

 

24,239

 

Change in net unrealized gains/(losses) on securities available for-sale, net of tax

 

 

 

 

2,258

 

 

2,258

 

Change in funded status of retirement plans, net of tax

 

 

 

 

1,159

 

 

1,159

 

Omnibus Equity Incentive Plan

 

2

 

364

 

 

 

 

366

 

Cash Dividends, $.47 per share

 

 

 

(6,222

)

 

 

(6,222

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, September 30, 2012

 

$

1,808

 

$

69,692

 

$

336,147

 

$

(7,077

)

$

(31,809

)

$

368,761

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, January 1, 2011

 

$

1,806

 

$

68,944

 

$

293,319

 

$

(9,369

)

$

(32,983

)

$

321,717

 

Net income

 

 

 

27,034

 

 

 

27,034

 

Change in net unrealized gains/(losses) on securities available for-sale, net of tax

 

 

 

 

13,097

 

 

13,097

 

Change in funded status of retirement plans, net of tax

 

 

 

 

908

 

 

908

 

Cash Dividends, $.47 per share

 

 

 

(6,181

)

 

 

(6,181

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, September 30, 2011

 

$

1,806

 

$

68,944

 

$

314,172

 

$

4,636

 

$

(32,983

)

$

356,575

 

 

See accompanying notes.

 

6



Table of Contents

 

FIRST FINANCIAL CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands, except per share data)

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2012

 

2011

 

 

 

(Unaudited)

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

Net Income

 

$

24,239

 

$

27,034

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

 

Net amortization (accretion) of premiums and discounts on investments

 

2,209

 

11

 

Provision for loan losses

 

7,304

 

3,894

 

Securities (gains) losses

 

(677

)

(7

)

Securities impairment loss

 

11

 

110

 

Gain on exchange of bank owned life insurance

 

 

(928

)

(Gain) loss on sale of other real estate

 

46

 

232

 

Restricted stock compensation

 

366

 

 

Depreciation and amortization

 

3,741

 

2,329

 

Other, net

 

2,345

 

(5,300

)

NET CASH FROM OPERATING ACTIVITIES

 

39,584

 

27,375

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

Proceeds from sales of securities available-for-sale

 

9,015

 

3,368

 

Redemption of restricted stock

 

1,172

 

 

Purchases of restricted stock

 

(186

)

 

Purchases of customer list

 

(114

)

 

Redemption of bank owned life insurance

 

7,319

 

 

Purchases of bank owned life insurance

 

(1,551

)

(4,500

)

Calls, maturities and principal reductions on securities available-for-sale

 

99,465

 

98,661

 

Purchases of securities available-for-sale

 

(96,953

)

(127,003

)

Loans made to customers, net of repayment

 

24,248

 

(23,755

)

Proceeds from sales of other real estate owned

 

3,210

 

3,285

 

Net change in federal funds sold

 

(44,048

)

5,104

 

Additions to premises and equipment

 

(7,318

)

(374

)

NET CASH FROM INVESTING ACTIVITIES

 

(5,741

)

(45,214

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

 

 

 

Net change in deposits

 

(15,945

)

23,857

 

Net change in short-term borrowings

 

(56,025

)

6,531

 

Dividends paid

 

(12,425

)

(12,231

)

Repayments on other borrowings

 

(20,090

)

(1,583

)

NET CASH FROM FINANCING ACTIVITIES

 

(104,485

)

16,574

 

 

 

 

 

 

 

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

(70,642

)

(1,265

)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

134,280

 

58,511

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

63,638

 

$

57,246

 

 

See accompanying notes.

 

7



Table of Contents

 

FIRST FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

The accompanying September 30, 2012 and 2011 consolidated financial statements are unaudited.  The December 31, 2011 consolidated financial statements are as reported in the First Financial Corporation (the “Corporation”) 2011 annual report.  The information presented does not include all information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. The following notes should be read together with notes to the consolidated financial statements included in the 10-K filed with the Securities and Exchange Commission for the fiscal year ended December 31, 2011.

 

1.  Significant Accounting Policies

 

The significant accounting policies followed by the Corporation and its subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting.  All adjustments which are, in the opinion of management, necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated financial statements and are of a normal recurring nature.  The Corporation reports financial information for only one segment, banking. Some items in the prior year financials were reclassified to conform to the current presentation.

 

The Omnibus Equity Incentive Plan is a long-term incentive plan that was designed to align the interests of participants with the interests of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. These shares vest over 3 years in increments of 33%, 33%, and 34% respectively. In 2012, 39,643 shares were awarded. These shares had a grant date value of $1.4 million, vest over three years and their grant is not subject to future performance measures. Outstanding shares are increased at the award date for the total shares awarded.

 

2. Allowance for Loan Losses

 

The following table presents the activity of the allowance for loan losses by portfolio segment for the three months ended September 30.

 

Allowance for Loan Losses:

 

September 30, 2012

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

Unallocated

 

Total

 

Beginning balance

 

$

13,190

 

$

2,124

 

$

3,744

 

$

1,034

 

$

20,092

 

Provision for loan losses*

 

765

 

1,594

 

196

 

85

 

2,640

 

Loans charged -off

 

(715

)

(381

)

(779

)

 

(1,875

)

Recoveries

 

167

 

36

 

397

 

 

600

 

Ending Balance

 

$

13,407

 

$

3,373

 

$

3,558

 

$

1,119

 

$

21,457

 

 


* Provision before decrease of $81 thousand in 2012 for increase in FDIC indemnification asset

 

Allowance for Loan Losses:

 

September 30, 2011

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

Unallocated

 

Total

 

Beginning balance

 

$

12,886

 

$

3,564

 

$

3,978

 

$

1,197

 

$

21,625

 

Provision for loan losses*

 

(422

)

727

 

545

 

785

 

1,635

 

Loans charged -off

 

(536

)

(325

)

(802

)

 

(1,663

)

Recoveries

 

310

 

 

221

 

 

531

 

Ending Balance

 

$

12,238

 

$

3,966

 

$

3,942

 

$

1,982

 

$

22,128

 

 


* Provision before increase of $275 thousand in 2011 for decrease in FDIC indemnification asset

 

The following table presents the activity of the allowance for loan losses by portfolio segment for the nine months ended September 30.

 

Allowance for Loan Losses:

 

September 30, 2012

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

Unallocated

 

Total

 

Beginning balance

 

$

12,119

 

$

2,728

 

$

3,889

 

$

505

 

$

19,241

 

Provision for loan losses*

 

3,642

 

2,859

 

1,185

 

614

 

8,300

 

Loans charged -off

 

(2,917

)

(2,289

)

(2,635

)

 

(7,841

)

Recoveries

 

563

 

75

 

1,119

 

 

1,757

 

Ending Balance

 

$

13,407

 

$

3,373

 

$

3,558

 

$

1,119

 

$

21,457

 

 


* Provision before decrease of $1.0 million in 2012 for increase in FDIC indemnification asset

 

8



Table of Contents

 

Allowance for Loan Losses:

 

September 30, 2011

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

Unallocated

 

Total

 

Beginning balance

 

$

12,809

 

$

2,873

 

$

4,551

 

$

2,103

 

$

22,336

 

Provision for loan losses*

 

1,587

 

2,021

 

578

 

(121

)

4,065

 

Loans charged -off

 

(2,903

)

(1,015

)

(1,993

)

 

(5,911

)

Recoveries

 

745

 

87

 

806

 

 

1,638

 

Ending Balance

 

$

12,238

 

$

3,966

 

$

3,942

 

$

1,982

 

$

22,128

 

 


* Provision before increase of $171 thousand in 2011 for decrease in FDIC indemnification asset

 

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 September 30, 2012 and December 31, 2011.

 

Ending Balance Attributable to Loans:

 

September 30, 2012

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

Unallocated

 

Total

 

Individually evaluated for impairment

 

$

4,084

 

$

1,468

 

$

 

$

 

$

5,552

 

Collectively evaluated for impairment

 

8,732

 

1,814

 

3,558

 

1,119

 

15,223

 

Acquired with deteriorated credit quality

 

591

 

91

 

 

 

682

 

Ending Balance

 

$

13,407

 

$

3,373

 

$

3,558

 

$

1,119

 

$

21,457

 

 

Loans:

 

September 30, 2012

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

 

 

Total

 

Individually evaluated for impairment

 

$

24,709

 

$

6,992

 

$

 

 

 

$

31,701

 

Collectively evaluated for impairment

 

1,043,521

 

496,774

 

274,543

 

 

 

1,814,838

 

Acquired with deteriorated credit quality

 

16,655

 

5,397

 

7

 

 

 

22,059

 

Ending Balance

 

$

1,084,885

 

$

509,163

 

$

274,550

 

 

 

$

1,868,598

 

 

Ending Balance Attributable to Loans:

 

December 31, 2011

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

Unallocated

 

Total

 

Individually evaluated for impairment

 

$

3,071

 

$

190

 

$

 

$

 

$

3,261

 

Collectively evaluated for impairment

 

8,264

 

2,183

 

3,889

 

505

 

14,841

 

Acquired with deteriorated credit quality

 

784

 

355

 

 

 

1,139

 

Ending Balance

 

$

12,119

 

$

2,728

 

$

3,889

 

$

505

 

$

19,241

 

 

Loans

 

December 31, 2011

 

(Dollar amounts in thousands)

 

Commercial

 

Residential

 

Consumer

 

 

 

Total

 

Individually evaluated for impairment

 

$

25,393

 

$

2,213

 

$

 

 

 

$

27,606

 

Collectively evaluated for impairment

 

1,036,963

 

492,139

 

291,190

 

 

 

1,820,292

 

Acquired with deteriorated credit quality

 

43,389

 

12,986

 

11

 

 

 

56,386

 

Ending Balance

 

$

1,105,745

 

$

507,338

 

$

291,201

 

 

 

$

1,904,284

 

 

9



Table of Contents

 

The following tables present loans individually evaluated for impairment by class of loans.

 

 

 

September 30, 2012

 

 

 

 

 

 

 

Allowance

 

 

 

Unpaid

 

 

 

for Loan

 

 

 

Principal

 

Recorded

 

Losses

 

(Dollar amounts in thousands)

 

Balance

 

Investment

 

Allocated

 

With no related allowance recorded:

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

Commercial & Industrial

 

$

2,496

 

$

2,496

 

$

 

Farmland

 

 

 

 

Non Farm, Non Residential

 

 

 

 

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

 

15,389

 

15,389

 

3,925

 

Farmland

 

891

 

891

 

49

 

Non Farm, Non Residential

 

7,581

 

7,581

 

182

 

Agriculture

 

 

 

 

All Other Commercial

 

1,315

 

1,315

 

56

 

Residential

 

 

 

 

 

 

 

First Liens

 

1,255

 

1,255

 

190

 

Home Equity

 

197

 

197

 

 

Junior Liens

 

 

 

 

Multifamily

 

5,540

 

5,540

 

1,278

 

All Other Residential

 

 

 

 

Consumer

 

 

 

 

 

 

 

Motor Vehicle

 

 

 

 

All Other Consumer

 

 

 

 

TOTAL

 

$

34,664

 

$

34,664

 

$

5,680

 

 

10



Table of Contents

 

 

 

December 31, 2011

 

 

 

 

 

 

 

Allowance

 

 

 

 

 

 

 

 

 

Unpaid

 

 

 

for Loan

 

Average

 

Interest

 

Cash Basis

 

 

 

Principal

 

Recorded

 

Losses

 

Recorded

 

Income

 

Interest Income

 

(Dollar amounts in thousands)

 

Balance

 

Investment

 

Allocated

 

Investment

 

Recognized

 

Recognized

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

$

 

$

 

$

 

$

1,929

 

$

165

 

$

 

Farmland

 

 

 

 

 

 

 

Non Farm, Non Residential

 

4,444

 

4,444

 

 

3,262

 

 

 

Agriculture

 

 

 

 

 

 

 

All Other Commercial

 

 

 

 

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

750

 

750

 

 

150

 

 

 

Home Equity

 

 

 

 

 

 

 

Junior Liens

 

 

 

 

 

 

 

Multifamily

 

250

 

250

 

 

50

 

 

 

All Other Residential

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

 

 

 

 

 

 

All Other Consumer

 

 

 

 

 

 

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

17,890

 

17,866

 

2,664

 

16,746

 

 

 

Farmland

 

891

 

891

 

49

 

360

 

 

 

Non Farm, Non Residential

 

4,816

 

4,816

 

957

 

8,717

 

 

 

Agriculture

 

 

 

 

 

 

 

All Other Commercial

 

1,517

 

1,517

 

66

 

1,671

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

1,213

 

1,213

 

190

 

2,014

 

 

 

Home Equity

 

 

 

 

 

 

 

Junior Liens

 

879

 

879

 

347

 

937

 

 

 

Multifamily

 

 

 

 

510

 

 

 

All Other Residential

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

 

 

 

 

 

 

All Other Consumer

 

 

 

 

 

 

 

TOTAL

 

$

32,650

 

$

32,626

 

$

4,273

 

$

36,346

 

$

165

 

$

 

 

11



Table of Contents

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 2012

 

September 30, 2012

 

 

 

Average

 

Interest

 

Cash Basis

 

Average

 

Interest

 

Cash Basis

 

 

 

Recorded

 

Income

 

Interest Income

 

Recorded

 

Income

 

Interest Income

 

(Dollar amounts in thousands)

 

Investment

 

Recognized

 

Recognized

 

Investment

 

Recognized

 

Recognized

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

$

2,531

 

$

 

$

 

$

1,266

 

$

 

$

 

Farmland

 

 

 

 

 

 

 

Non Farm, Non Residential

 

987

 

 

 

2,098

 

 

 

Agriculture

 

 

 

 

 

 

 

All Other Commercial

 

 

 

 

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

 

 

 

188

 

 

 

Home Equity

 

 

 

 

 

 

 

Junior Liens

 

 

 

 

 

 

 

Multifamily

 

 

 

 

62

 

 

 

All Other Residential

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

 

 

 

 

 

 

All Other Consumer

 

 

 

 

 

 

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

15,427

 

 

 

16,648

 

 

 

Farmland

 

891

 

 

 

891

 

 

 

Non Farm, Non Residential

 

5,045

 

 

 

4,404

 

 

 

Agriculture

 

 

 

 

 

 

 

All Other Commercial

 

1,313

 

 

 

1,400

 

 

 

Residential

 

 

 

 

 

 

 

 

 

 

 

 

 

First Liens

 

1,234

 

 

 

1,224

 

 

 

Home Equity

 

99

 

 

 

49

 

 

 

Junior Liens

 

 

 

 

220

 

 

 

Multifamily

 

2,770

 

 

 

1,385

 

 

 

All Other Residential

 

 

 

 

 

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Motor Vehicle

 

 

 

 

 

 

 

All Other Consumer

 

 

 

 

 

 

 

TOTAL

 

$

30,297

 

$

 

$

 

$

29,835

 

$

 

$

 

 

12



Table of Contents

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

September 30, 2011

 

September 30, 2011

 

 

 

Average

 

Interest

 

Cash Basis

 

Average

 

Interest

 

Cash Basis

 

 

 

Recorded

 

Income

 

Interest Income

 

Recorded

 

Income

 

Interest Income

 

(Dollar amounts in thousands)

 

Investment

 

Recognized

 

Recognized

 

Investment

 

Recognized

 

Recognized

 

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial & Industrial

 

$

 

$

 

$

 

$

2,411

 

$

 

$

 

Farmland

 

 

 

 

 

 

 

Non Farm, Non Residential

 

2,877

 

 

 

2,967

 

 

 

Agriculture

 

 

 

 

 

 

 

All Other Commercial

 

 

 

 

 

 

 

Residential