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Impaired Loans and Valuation Allowance For Loan Losses
 6 Months Ended
Jun. 30, 2011
Impaired Loans and Valuation Allowance For Loan Losses [Abstract]  
IMPAIRED LOANS AND VALUATION ALLOWANCE FOR LOAN LOSSES
NOTE E — IMPAIRED LOANS AND VALUATION ALLOWANCE FOR LOAN LOSSES
At June 30, 2011 and 2010, the Company’s recorded investments in impaired loans and the related valuation allowances were as follows:
                                         
    Impaired Loans for the Six Months Ended June 30, 2011  
            Unpaid     Related     Average     Interest  
    Recorded     Principal     Valuation     Recorded     Income  
(Dollars in thousands)   Investment     Balance     Allowance     Investment     Recognized  
With no related allowance recorded:
                                       
Construction & land development
  $ 2,040     $ 6,601     $ —     $ 3,191     $ 7  
Commercial real estate
    18,923       19,611       —       23,702       214  
Residential real estate
    8,263       11,915       —       8,912       22  
Commercial and financial
    —       —       —       1,536       —  
Consumer
    524       548       —       342       1  
 
                                       
With an allowance recorded:
                                       
Construction & land development
    3,698       3,812       464       23,748       76  
Commercial real estate
    45,322       48,678       7,316       44,345       915  
Residential real estate
    26,955       27,285       3,690       27,408       436  
Commercial and financial
    111       111       10       203       2  
Consumer
    567       570       102       809       15  
 
                                       
Total:
                                       
Construction & land development
    5,738       10,413       464       26,939       83  
Commercial real estate
    64,245       68,289       7,316       68,047       1,129  
Residential real estate
    35,218       39,200       3,690       36,320       458  
Commercial and financial
    111       111       10       1,739       2  
Consumer
    1,091       1,118       102       1,151       16  
 
                             
 
  $ 106,403     $ 119,131     $ 11,582     $ 134,196     $ 1,688  
 
                             
                                 
    Impaired Loans for the Six Months Ended June 30, 2010  
            Related     Average     Interest  
    Recorded     Valuation     Recorded     Income  
(Dollars in thousands)   Investment     Allowance     Investment     Recognized  
 
                               
With no related allowance recorded
  $ 43,771     $ —                  
With an allowance recorded
    113,590       10,291                  
 
                           
 
  $ 157,361     $ 10,291     $ 156,254     $ 1,517  
 
                       
Impaired loans also include loans that have been modified in troubled debt restructurings (“TDRs”) where concessions to borrowers who experienced financial difficulties have been granted. At June 30, 2011 and 2010, accruing TDRs totaled $60.2 million and $64.9 million, respectively.
The valuation allowance is included in the allowance for loan losses. The average recorded investment in impaired loans for the six months ended June 30, 2011 and 2010 was $134,196,000 and $156,254,000, respectively. The impaired loans were measured for impairment based primarily on the value of underlying collateral.
Interest payments received on impaired loans are recorded as interest income unless collection of the remaining recorded investment is doubtful at which time payments received are recorded as reductions to principal. For the six months ended June 30, 2011 and 2010, the Company recorded $1,688,000 and $1,517,000, respectively, in interest income on impaired loans.
The nonaccrual loans and accruing loans past due 90 days or more were $46,165,000 and none, respectively, at June 30, 2011 and were $90,885,000 and $78,000, respectively, at June 30, 2010.
Transactions in the allowance for loan losses for the three months and six months ended June 30, 2011 are summarized as follows:
                                                 
    Allowance for Loan Losses for the Three Months Ended June 30, 2011  
            Provision                     Net        
    Beginning     for Loan     Charge-             Charge-     Ending  
(Dollars in thousands)   Balance     Losses     Offs     Recoveries     Offs     Balance  
 
                                               
Construction & land development
  $ 4,112     $ (244 )   $ (1,848 )   $ 11     $ (1,837 )   $ 2,031  
Commercial real estate
    16,767       153       (676 )     7       (669 )     16,251  
Residential real estate
    11,530       1,403       (1,631 )     73       (1,558 )     11,375  
Commercial and financial
    739       (212 )     —       45       45       572  
Consumer
    1,205       (198 )     (22 )     17       (5 )     1,002  
 
                                   
 
  $ 34,353     $ 902     $ (4,177 )   $ 153     $ (4,024 )   $ 31,231  
 
                                   
                                                 
    Allowance for Loan Losses for the Six Months Ended June 30, 2011  
            Provision                     Net        
    Beginning     for Loan     Charge-             Charge-     Ending  
(Dollars in thousands)   Balance     Losses     Offs     Recoveries     Offs     Balance  
 
                                               
Construction & land development
  $ 7,214     $ (1,802 )   $ (3,698 )   $ 317     $ (3,381 )   $ 2,031  
Commercial real estate
    18,563       (1,073 )     (1,257 )     18       (1,239 )     16,251  
Residential real estate
    10,102       4,678       (3,554 )     149       (3,405 )     11,375  
Commercial and financial
    480       (40 )     —       132       132       572  
Consumer
    1,385       (221 )     (204 )     42       (162 )     1,002  
 
                                   
 
  $ 37,744     $ 1,542     $ (8,713 )   $ 658     $ (8,055 )   $ 31,231  
 
                                   
The allowance for loan losses is composed of specific allowances for certain impaired loans and general allowances grouped into loan pools based on similar characteristics. The Company’s loan portfolio and related allowance at June 30, 2011 is shown in the table below:
                                                 
    At June 30, 2011  
    Individually Evaluated for     Collectively Evaluated for        
    Impairment     Impairment     Total  
    Carrying     Associated     Carrying     Associated     Carrying     Associated  
(Dollars in thousands)   Value     Allowance     Value     Allowance     Value     Allowance  
 
                                               
Construction & land development
  $ 5,738     $ 464     $ 43,455     $ 1,567     $ 49,193     $ 2,031  
Commercial real estate
    64,245       7,316       452,690       8,935       516,935       16,251  
Residential real estate
    35,218       3,690       487,844       7,685       523,062       11,375  
Commercial and financial
    111       10       47,901       562       48,012       572  
Consumer
    1,091       102       50,652       900       51,743       1,002  
 
                                   
 
  $ 106,403     $ 11,582     $ 1,082,542     $ 19,649     $ 1,188,945     $ 31,231