Loans and Asset Quality Information (Tables)

6 Months Ended

Jun. 30, 2014

Loans And Asset Quality Information Tables

Summary of the major categories of total loans outstanding

The following is a summary of the major categories of total loans outstanding:

($ in thousands)	June 30, 2014				December 31, 2013				June 30, 2013
	Amount		Percentage		Amount		Percentage		Amount		Percentage
All  loans (non-covered and covered):
Commercial, financial, and agricultural	$	165,021		7%	$	168,469		7%	$	164,767		7%
Real estate – construction, land development & other land loans		295,868		12%		305,246		12%		297,390		12%
Real estate – mortgage – residential (1-4 family) first mortgages		814,712		33%		838,862		34%		832,761		34%
Real estate – mortgage – home equity loans / lines of credit		227,381		9%		227,907		9%		231,446		10%
Real estate – mortgage – commercial and other		868,599		36%		855,249		35%		834,554		34%
Installment loans to individuals		62,153		3%		66,533		3%		68,776		3%
Subtotal		2,433,734		100%		2,462,266		100%		2,429,694		100%
Unamortized net deferred loan costs		651				928				1,168
Total loans	$	2,434,385			$	2,463,194			$	2,430,862

Summary of the major categories of non-covered loans outstanding

The following is a summary of the major categories of non-covered loans outstanding:

($ in thousands)	June 30, 2014				December 31, 2013				June 30, 2013
	Amount		Percentage		Amount		Percentage		Amount		Percentage
Non-covered loans:
Commercial, financial, and agricultural	$	162,303		7%	$	164,195		7%	$	159,964		7%
Real estate – construction, land development & other land loans		274,975		12%		273,412		12%		262,397		12%
Real estate – mortgage – residential (1-4 family) first mortgages		718,962		32%		730,712		32%		712,802		33%
Real estate – mortgage – home equity loans / lines of credit		213,542		9%		213,016		10%		214,473		10%
Real estate – mortgage – commercial and other		825,450		37%		804,621		36%		771,711		35%
Installment loans to individuals		61,647		3%		66,001		3%		68,068		3%
Subtotal		2,256,879		100%		2,251,957		100%		2,189,415		100%
Unamortized net deferred loan costs		651				928				1,168
Total non-covered loans	$	2,257,530			$	2,252,885			$	2,190,583

Schedule of the carrying amount of the covered loans

The carrying amount of the covered loans at June 30, 2014 consisted of impaired and nonimpaired purchased loans (as determined on the date of acquisition), as follows:

($ in thousands)	Impaired Purchased Loans – Carrying Value		Impaired Purchased Loans – Unpaid Principal Balance		Nonimpaired Purchased Loans – Carrying Value		Nonimpaired Purchased Loans - Unpaid Principal Balance		Total Covered Loans – Carrying Value		Total Covered Loans – Unpaid Principal Balance
Covered loans:
Commercial, financial, and agricultural	$	69		129		2,649		3,015		2,718		3,144
Real estate – construction, land development & other land loans		322		548		20,571		28,878		20,893		29,426
Real estate – mortgage – residential (1-4 family) first mortgages		429		1,317		95,321		111,278		95,750		112,595
Real estate – mortgage – home equity loans / lines of credit		13		20		13,826		16,359		13,839		16,379
Real estate – mortgage – commercial and other		2,050		3,959		41,099		47,359		43,149		51,318
Installment loans to individuals		—		—		506		507		506		507
Total	$	2,883		5,973		173,972		207,396		176,855		213,369

The carrying amount of the covered loans at December 31, 2013 consisted of impaired and nonimpaired purchased loans (as determined on the date of the acquisition), as follows:

($ in thousands)	Impaired Purchased Loans – Carrying Value		Impaired Purchased Loans – Unpaid Principal Balance		Nonimpaired Purchased Loans – Carrying Value		Nonimpaired Purchased Loans - Unpaid Principal Balance		Total Covered Loans – Carrying Value		Total Covered Loans – Unpaid Principal Balance
Covered loans:
Commercial, financial, and agricultural	$	75		136		4,199		5,268		4,274		5,404
Real estate – construction, land development & other land loans		325		564		31,509		47,792		31,834		48,356
Real estate – mortgage – residential (1-4 family) first mortgages		575		1,500		107,575		126,882		108,150		128,382
Real estate – mortgage – home equity loans / lines of credit		14		21		14,877		18,318		14,891		18,339
Real estate – mortgage – commercial and other		2,153		4,042		48,475		62,630		50,628		66,672
Installment loans to individuals		—		—		532		607		532		607
Total	$	3,142		6,263		207,167		261,497		210,309		267,760

Schedule of covered purchased nonimpaired loans

The following table presents information regarding covered purchased nonimpaired loans since December 31, 2012. The amounts include principal only and do not reflect accrued interest as of the date of the acquisition or beyond.

($ in thousands)
Carrying amount of nonimpaired covered loans at December 31, 2012	$	277,489
Principal repayments		(63,588	)
Transfers to foreclosed real estate		(13,977	)
Loan charge-offs		(12,957	)
Accretion of loan discount		20,200
Carrying amount of nonimpaired covered loans at December 31, 2013		207,167
Principal repayments		(36,715	)
Transfers to foreclosed real estate		(4,616	)
Loan charge-offs		(3,123	)
Accretion of loan discount		11,259
Carrying amount of nonimpaired covered loans at June 30, 2014	$	173,972

Schedule of purchased impaired loans

The following table presents information regarding all purchased impaired loans since December 31, 2012, all of which are covered loans. The Company has applied the cost recovery method to all purchased impaired loans at their respective acquisition dates due to the uncertainty as to the timing of expected cash flows, as reflected in the following table.

($ in thousands) Purchased Impaired Loans	Contractual Principal Receivable			Fair Market Value Adjustment – Write Down (Nonaccretable Difference)			Carrying Amount
Balance at December 31, 2012	$	8,815			3,990			4,825
Change due to payments received		(301	)		(31	)		(270	)
Transfer to foreclosed real estate		(2,100	)		(784	)		(1,316	)
Change due to loan charge-off		(150	)		(54	)		(96	)
Other		(1	)		—			(1	)
Balance at December 31, 2013	$	6,263			3,121			3,142
Change due to payments received		(487	)		84			(571	)
Other		197			(115	)		312
Balance at June 30, 2014	$	5,973			3,090			2,883

Summary of nonperforming assets

Nonperforming assets are defined as nonaccrual loans, restructured loans, loans past due 90 or more days and still accruing interest, nonperforming loans held for sale, and foreclosed real estate. Nonperforming assets are summarized as follows:

ASSET QUALITY DATA ($ in thousands)	June 30, 2014		December 31, 2013		June 30, 2013
Non-covered nonperforming assets
Nonaccrual loans	$	47,533	$	41,938	$	42,338
Restructured loans - accruing		27,250		27,776		21,333
Accruing loans > 90 days past due		—		—		—
Total non-covered nonperforming loans		74,783		69,714		63,671
Foreclosed real estate		9,346		12,251		15,425
Total non-covered nonperforming assets	$	84,129	$	81,965	$	79,096
Covered nonperforming assets
Nonaccrual loans (1)	$	20,938	$	37,217	$	50,346
Restructured loans - accruing		8,193		8,909		6,790
Accruing loans > 90 days past due		—		—		—
Total covered nonperforming loans		29,131		46,126		57,136
Foreclosed real estate		9,934		24,497		32,005
Total covered nonperforming assets	$	39,065	$	70,623	$	89,141
Total nonperforming assets	$	123,194	$	152,588	$	168,237

(1) At June 30, 2014, December 31, 2013, and June 30, 2013, the contractual balance of the nonaccrual loans covered by FDIC loss share agreements was $34.3 million, $60.4 million, and $89.3 million, respectively.

Schedule of nonaccrual loans

The following table presents the Company’s nonaccrual loans as of June 30, 2014.

($ in thousands)	Non-covered		Covered		Total
Commercial, financial, and agricultural:
Commercial – unsecured	$	110		5		115
Commercial – secured		3,628		277		3,905
Secured by inventory and accounts receivable		338		—		338
Real estate – construction, land development & other land loans		9,001		5,299		14,300
Real estate – residential, farmland and multi-family		21,168		7,215		28,383
Real estate – home equity lines of credit		2,436		241		2,677
Real estate – commercial		10,297		7,899		18,196
Consumer		555		2		557
Total	$	47,533		20,938		68,471

The following table presents the Company’s nonaccrual loans as of December 31, 2013.

($ in thousands)	Non-covered		Covered		Total
Commercial, financial, and agricultural:
Commercial – unsecured	$	222		38		260
Commercial – secured		2,662		114		2,776
Secured by inventory and accounts receivable		545		782		1,327
Real estate – construction, land development & other land loans		8,055		13,502		21,557
Real estate – residential, farmland and multi-family		17,814		12,344		30,158
Real estate – home equity lines of credit		2,200		335		2,535
Real estate – commercial		10,115		10,099		20,214
Consumer		325		3		328
Total	$	41,938		37,217		79,155

Schedule of analysis of the payment status of loans

The following table presents an analysis of the payment status of the Company’s loans as of June 30, 2014.

($ in thousands)	30-59 Days Past Due		60-89 Days Past Due		Nonaccrual Loans		Current		Total Loans Receivable
Non-covered loans
Commercial, financial, and agricultural:
Commercial - unsecured	$	426		7		110		35,534		36,077
Commercial - secured		1,309		310		3,628		118,854		124,101
Secured by inventory and accounts receivable		146		64		338		17,944		18,492
Real estate – construction, land development & other land loans		308		605		9,001		237,455		247,369
Real estate – residential, farmland, and multi-family		7,867		3,523		21,168		834,617		867,175
Real estate – home equity lines of credit		1,058		133		2,436		196,883		200,510
Real estate - commercial		1,758		447		10,297		705,403		717,905
Consumer		411		139		555		44,145		45,250
Total non-covered	$	13,283		5,228		47,533		2,190,835		2,256,879
Unamortized net deferred loan costs										651
Total non-covered loans									$	2,257,530
Covered loans	$	994		1,025		20,938		153,898		176,855
Total loans	$	14,277		6,253		68,471		2,344,733		2,434,385

The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2013.

($ in thousands)	30-59 Days Past Due		60-89 Days Past Due		Nonaccrual Loans		Current		Total Loans Receivable
Non-covered loans
Commercial, financial, and agricultural:
Commercial - unsecured	$	347		94		222		36,352		37,015
Commercial - secured		1,233		462		2,662		117,923		122,280
Secured by inventory and accounts receivable		438		767		545		19,426		21,176
Real estate – construction, land development & other land loans		2,304		1,391		8,055		232,920		244,670
Real estate – residential, farmland, and multi-family		11,682		2,631		17,814		837,260		869,387
Real estate – home equity lines of credit		1,465		305		2,200		194,157		198,127
Real estate - commercial		3,196		214		10,115		696,081		709,606
Consumer		494		187		325		48,690		49,696
Total non-covered	$	21,159		6,051		41,938		2,182,809		2,251,957
Unamortized net deferred loan costs										928
Total non-covered loans									$	2,252,885
Covered loans	$	5,179		768		37,217		167,145		210,309
Total loans	$	26,338		6,819		79,155		2,349,954		2,463,194

Schedule of activity in the allowance for loan losses for non-covered loans

The following table presents the activity in the allowance for loan losses for non-covered loans for the three and six months ended June 30, 2014.

($ in thousands)	Commercial, Financial, and Agricultural			Real Estate – Construction, Land Development, & Other Land Loans			Real Estate – Residential, Farmland, and Multi- family			Real Estate – Home Equity Lines of Credit			Real Estate – Commercial and Other			Consumer			Unallo- cated			Total
As of and for the three months ended June 30, 2014
Beginning balance	$	8,889			8,650			12,733			3,662			9,375			1,030			367			44,706
Charge-offs		(2,041	)		(307	)		(861	)		(397	)		(277	)		(371	)		—			(4,254	)
Recoveries		21			73			114			6			26			116			—			356
Provisions		2,079			(1,002	)		(854	)		484			88			131			232			1,158
Ending balance	$	8,948			7,414			11,132			3,755			9,212			906			599			41,966
As of and for the six months ended June 30, 2014
Beginning balance	$	7,432			12,966			15,142			1,838			5,524			1,513			(152	)		44,263
Charge-offs		(2,666	)		(1,234	)		(1,631	)		(503	)		(889	)		(799	)		—			(7,722	)
Recoveries		49			309			179			11			121			233			—			902
Provisions		4,133			(4,627	)		(2,558	)		2,409			4,456			(41	)		751			4,523
Ending balance	$	8,948			7,414			11,132			3,755			9,212			906			599			41,966
Ending balances as of June 30, 2014:  Allowance for loan losses
Individually evaluated for impairment	$	290			818			2,016			—			528			—			—			3,652
Collectively evaluated for impairment	$	8,658			6,596			9,116			3,755			8,684			906			599			38,314
Loans acquired with deteriorated credit quality	$	—			—			—			—			—			—			—			—
Loans receivable as of June 30, 2014:
Ending balance – total	$	178,670			247,369			867,175			200,510			717,905			45,250			—			2,256,879
Ending balances as of June 30, 2014: Loans
Individually evaluated for impairment	$	679			7,541			22,505			483			17,009			10			—			48,227
Collectively evaluated for impairment	$	177,991			239,828			844,670			200,027			700,896			45,240			—			2,208,652
Loans acquired with deteriorated credit quality	$	—			—			—			—			—			—			—			—

The following table presents the activity in the allowance for loan losses for non-covered loans for the year ended December 31, 2013.

($ in thousands)	Commercial, Financial, and Agricultural			Real Estate – Construction, Land Development, & Other Land Loans			Real Estate – Residential, Farmland, and Multi-family			Real Estate – Home Equity Lines of Credit			Real Estate – Commercial and Other			Consumer			Unallo- cated			Total
As of and for the year ended December 31, 2013
Beginning balance	$	4,687			12,856			14,082			1,884			5,247			1,939			948			41,643
Charge-offs		(4,418	)		(2,739	)		(3,732	)		(1,314	)		(4,346	)		(2,174	)		(660	)		(19,383	)
Recoveries		299			743			753			87			1,381			474			—			3,737
Provisions		6,864			2,106			4,039			1,181			3,242			1,274			(440	)		18,266
Ending balance	$	7,432			12,966			15,142			1,838			5,524			1,513			(152	)		44,263
Ending balances as of December 31, 2013:  Allowance for loan losses
Individually evaluated for impairment	$	202			544			1,162			1			649			1			—			2,559
Collectively evaluated for impairment	$	7,230			12,422			13,980			1,837			4,875			1,512			(152	)		41,704
Loans acquired with deteriorated credit quality	$	—			—			—			—			—			—			—			—
Loans receivable as of December 31, 2013:
Ending balance – total	$	180,471			244,670			869,387			198,127			709,606			49,696			—			2,251,957
Ending balances as of December 31, 2013: Loans
Individually evaluated for impairment	$	582			8,027			19,111			22			16,894			13			—			44,649
Collectively evaluated for impairment	$	179,889			236,643			850,276			198,105			692,712			49,683			—			2,207,308
Loans acquired with deteriorated credit quality	$	—			—			—			—			—			—			—			—

The following table presents the activity in the allowance for loan losses for non-covered loans for the three and six months ended June 30, 2013.

($ in thousands)	Commercial, Financial, and Agricultural			Real Estate – Construction, Land Development, & Other Land Loans			Real Estate – Residential, Farmland, and Multi- family			Real Estate – Home Equity Lines of Credit			Real Estate – Commercial and Other			Consumer			Unallo- cated			Total
As of and for the three months ended June 30, 2013
Beginning balance	$	4,949			14,857			15,285			2,040			5,714			1,791			125			44,761
Charge-offs		(560	)		(394	)		(858	)		(265	)		(1,907	)		(562	)		—			(4,546	)
Recoveries		214			24			117			4			93			106			—			558
Provisions		1,357			106			417			282			1,339			368			174			4,043
Ending balance	$	5,960			14,593			14,961			2,061			5,239			1,703			299			44,816
As of and for the six months ended June 30, 2013
Beginning balance	$	4,687			12,856			14,082			1,884			5,247			1,939			948			41,643
Charge-offs		(1,384	)		(1,217	)		(1,655	)		(889	)		(2,447	)		(1,090	)		(659	)		(9,341	)
Recoveries		233			617			663			62			882			243			—			2,700
Provisions		2,424			2,337			1,871			1,004			1,557			611			10			9,814
Ending balance	$	5,960			14,593			14,961			2,061			5,239			1,703			299			44,816
Ending balances as of June 30, 2013:  Allowance for loan losses
Individually evaluated for impairment	$	902			480			1,373			1			781			1			—			3,538
Collectively evaluated for impairment	$	5,058			14,113			13,588			2,060			4,458			1,702			299			41,278
Loans acquired with deteriorated credit quality	$	—			—			—			—			—			—			—			—
Loans receivable as of June 30, 2013:
Ending balance – total	$	176,662			232,352			850,060			198,281			680,607			51,453			—			2,189,415
Ending balances as of June 30, 2013: Loans
Individually evaluated for impairment	$	1,920			7,596			19,080			22			17,585			14			—			46,217
Collectively evaluated for impairment	$	174,742			224,756			830,980			198,259			663,022			51,439			—			2,143,198
Loans acquired with deteriorated credit quality	$	—			—			—			—			—			—			—			—

Schedule of activity in the allowance for loan losses for covered loans

The following table presents the activity in the allowance for loan losses for covered loans for the three and six months ended June 30, 2014.

($ in thousands)	Covered Loans
As of and for the three months ended June 30, 2014
Beginning balance	$	3,421
Charge-offs		(2,722	)
Recoveries		630
Provisions		2,501
Ending balance	$	3,830
As of and for the six months ended June 30, 2014
Beginning balance	$	4,242
Charge-offs		(5,670	)
Recoveries		2,547
Provisions		2,711
Ending balance	$	3,830
Ending balances as of June 30, 2014: Allowance for loan losses
Individually evaluated for impairment	$	1,340
Collectively evaluated for impairment		2,490
Loans acquired with deteriorated credit quality		46
Loans receivable as of June 30, 2014:
Ending balance – total	$	176,855
Ending balances as of June 30, 2014: Loans
Individually evaluated for impairment	$	23,336
Collectively evaluated for impairment		153,519
Loans acquired with deteriorated credit quality		2,883

The following table presents the activity in the allowance for loan losses for covered loans for the year ended December 31, 2013.

($ in thousands)	Covered Loans
As of and for the year ended December 31, 2013
Beginning balance	$	4,759
Charge-offs		(13,053	)
Recoveries		186
Provisions		12,350
Ending balance	$	4,242
Ending balances as of December 31, 2013:  Allowance for loan losses
Individually evaluated for impairment	$	3,133
Collectively evaluated for impairment		1,109
Loans acquired with deteriorated credit quality		25
Loans receivable as of December 31, 2013:
Ending balance – total	$	210,309
Ending balances as of December 31, 2013: Loans
Individually evaluated for impairment	$	46,126
Collectively evaluated for impairment		164,183
Loans acquired with deteriorated credit quality		3,142

The following table presents the activity in the allowance for loan losses for covered loans for the three and six months ended June 30, 2013.

($ in thousands)	Covered Loans
As of and for the three months ended June 30, 2013
Beginning balance	$	5,028
Charge-offs		(541	)
Recoveries		—
Provisions		1,548
Ending balance	$	6,035
As of and for the six months ended June 30, 2013
Beginning balance	$	4,759
Charge-offs		(5,650	)
Recoveries		—
Provisions		6,926
Ending balance	$	6,035
Ending balances as of June 30, 2013: Allowance for loan losses
Individually evaluated for impairment	$	4,700
Collectively evaluated for impairment		1,335
Loans acquired with deteriorated credit quality		17
Loans receivable as of June 30, 2013:
Ending balance – total	$	240,279
Ending balances as of June 30, 2013: Loans
Individually evaluated for impairment	$	57,136
Collectively evaluated for impairment		183,143
Loans acquired with deteriorated credit quality		3,340

Schedule of impaired loans

The following table presents the Company’s impaired loans as of June 30, 2014.

($ in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Non-covered loans with no related allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	—		—		—		22
Commercial - secured		71		74		—		134
Secured by inventory and accounts receivable		—		—		—		—
Real estate – construction, land development & other land loans		5,617		6,116		—		5,954
Real estate – residential, farmland, and multi-family		8,646		9,665		—		6,471
Real estate – home equity lines of credit		483		498		—		327
Real estate – commercial		9,514		11,453		—		8,495
Consumer		10		12		—		7
Total non-covered impaired loans with no allowance	$	24,341		27,818		—		21,410
Total covered impaired loans with no allowance	$	14,444		25,495		—		23,192
Total impaired loans with no allowance recorded	$	38,785		53,313		—		44,602
Non-covered  loans with an allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	99		100		80		110
Commercial - secured		509		509		210		494
Secured by inventory and accounts receivable		—		—		—		25
Real estate – construction, land development & other land loans		1,924		1,987		818		1,705
Real estate – residential, farmland, and multi-family		13,859		13,969		2,016		14,438
Real estate – home equity lines of credit		—		—		—		7
Real estate – commercial		7,495		7,588		528		8,156
Consumer		—		—		—		4
Total non-covered impaired loans with allowance	$	23,886		24,153		3,652		24,939
Total covered impaired loans with allowance	$	8,892		10,106		1,340		10,478
Total impaired loans with an allowance recorded	$	32,778		34,259		4,992		35,417

 The following table presents the Company’s impaired loans as of December 31, 2013.

($ in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Average Recorded Investment
Non-covered loans with no related allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	—		—		—		—
Commercial - secured		—		—		—		334
Secured by inventory and accounts receivable		—		—		—		—
Real estate – construction, land development & other land loans		6,398		6,907		—		5,005
Real estate – residential, farmland, and multi-family		3,883		4,429		—		2,329
Real estate – home equity lines of credit		—		—		—		—
Real estate – commercial		7,324		9,008		—		9,981
Consumer		—		—		—		—
Total non-covered impaired loans with no allowance	$	17,605		20,344		—		17,649
Total covered impaired loans with no allowance	$	29,058		48,785		—		39,215
Total impaired loans with no allowance recorded	$	46,663		69,129		—		56,864
Non-covered  loans with an allowance recorded:
Commercial, financial, and agricultural:
Commercial - unsecured	$	115		115		63		72
Commercial - secured		392		394		64		1,081
Secured by inventory and accounts receivable		75		75		75		80
Real estate – construction, land development & other land loans		1,629		2,148		544		2,339
Real estate – residential, farmland, and multi-family		15,228		15,642		1,162		13,417
Real estate – home equity lines of credit		22		22		1		637
Real estate – commercial		9,570		10,873		649		5,914
Consumer		13		35		1		466
Total non-covered impaired loans with allowance	$	27,044		29,304		2,559		24,006
Total covered impaired loans with allowance	$	17,068		22,367		3,133		14,343
Total impaired loans with an allowance recorded	$	44,112		51,671		5,692		38,349

Schedule of recorded investment in loans by credit quality indicators

The following describes the Company’s internal risk grades in ascending order of likelihood of loss:

	Numerical Risk Grade	Description
Pass:
	1	Cash secured loans.
	2	Non-cash secured loans that have no minor or major exceptions to the lending guidelines.
	3	Non-cash secured loans that have no major exceptions to the lending guidelines.
Weak Pass:
	4	Non-cash secured loans that have minor or major exceptions to the lending guidelines, but the exceptions are properly mitigated.
Watch or Standard:
	9	Loans that meet the guidelines for a Risk Graded 5 loan, except the collateral coverage is sufficient to satisfy the debt with no risk of loss under reasonable circumstances.  This category also includes all loans to insiders and any other loan that management elects to monitor on the watch list.
Special Mention:
	5	Existing loans with major exceptions that cannot be mitigated.
Classified:
	6	Loans that have a well-defined weakness that may jeopardize the liquidation of the debt if deficiencies are not corrected.
	7	Loans that have a well-defined weakness that make the collection or liquidation improbable.
	8	Loans that are considered uncollectible and are in the process of being charged-off.

The following table presents the Company’s recorded investment in loans by credit quality indicators as of June 30, 2014.

($ in thousands)	Credit Quality Indicator (Grouped by Internally Assigned Grade)
	Pass (Grades 1, 2, & 3)		Weak Pass (Grade 4)		Watch or Standard Loans (Grade 9)		Special Mention Loans (Grade 5)		Classified Loans (Grades 6, 7, & 8)		Nonaccrual Loans		Total
Non-covered loans:
Commercial, financial, and agricultural:
Commercial - unsecured	$	11,722		20,737		7		1,435		2,066		110		36,077
Commercial - secured		34,642		76,763		93		4,403		4,572		3,628		124,101
Secured by inventory and accounts receivable		5,863		9,912		—		1,346		1,033		338		18,492
Real estate – construction, land development & other land loans		65,376		149,982		2,118		11,174		9,718		9,001		247,369
Real estate – residential, farmland, and multi-family		222,681		536,597		5,038		45,084		36,607		21,168		867,175
Real estate – home equity lines of credit		122,853		64,446		1,293		4,030		5,452		2,436		200,510
Real estate - commercial		138,088		517,412		8,743		28,269		15,096		10,297		717,905
Consumer		24,700		18,404		54		684		853		555		45,250
Total	$	625,925		1,394,253		17,346		96,425		75,397		47,533		2,256,879
Unamortized net deferred loan costs														651
Total non-covered  loans													$	2,257,530
Total covered loans	$	17,850		96,435		82		12,888		28,662		20,938		176,855
Total loans	$	643,775		1,490,688		17,428		109,313		104,059		68,471		2,434,385

The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2013.

($ in thousands)	Credit Quality Indicator (Grouped by Internally Assigned Grade)
	Pass (Grades 1, 2, & 3)		Weak Pass (Grade 4)		Watch or Standard Loans (Grade 9)		Special Mention Loans (Grade 5)		Classified Loans (Grades 6, 7, & 8)		Nonaccrual Loans		Total
Non-covered loans:
Commercial, financial, and agricultural:
Commercial - unsecured	$	8,495		24,415		7		1,509		2,367		222		37,015
Commercial - secured		31,494		77,441		100		5,597		4,986		2,662		122,280
Secured by inventory and accounts receivable		4,098		12,800		—		2,022		1,711		545		21,176
Real estate – construction, land development & other land loans		31,221		181,050		2,365		11,646		10,333		8,055		244,670
Real estate – residential, farmland, and multi-family		227,053		540,349		5,062		41,583		37,526		17,814		869,387
Real estate – home equity lines of credit		120,205		63,400		1,499		5,699		5,124		2,200		198,127
Real estate - commercial		115,397		533,680		10,014		24,557		15,843		10,115		709,606
Consumer		25,703		21,790		54		829		995		325		49,696
Total	$	563,666		1,454,925		19,101		93,442		78,885		41,938		2,251,957
Unamortized net deferred loan costs														928
Total non-covered  loans													$	2,252,885
Total covered loans	$	25,078		92,147		—		8,857		47,010		37,217		210,309
Total loans	$	588,744		1,547,072		19,101		102,299		125,895		79,155		2,463,194

Schedule of information related to loans modified in a troubled debt restructuring

The following table presents information related to loans modified in a troubled debt restructuring during the three and six months ended June 30, 2014.

($ in thousands)	For the three months ended June 30, 2014
	Number of Contracts		Pre-Modification Restructured Balances		Post-Modification Restructured Balances
Non-covered TDRs – Accruing
Real estate – residential, farmland, and multi-family		5	$	411	$	411
Non-covered TDRs - Nonaccrual
Real estate – residential, farmland, and multi-family		2		332		332
Total non-covered TDRs arising during period		7		743		743
Total covered TDRs arising during period– Accruing		2	$	248	$	245
Total covered TDRs arising during period – Nonaccrual		—		—		—
Total TDRs arising during period		9	$	991	$	988

($ in thousands)	For the six months ended June 30, 2014
	Number of Contracts		Pre-Modification Restructured Balances		Post-Modification Restructured Balances
Non-covered TDRs – Accruing
Real estate – residential, farmland, and multi-family		6	$	677	$	677
Non-covered TDRs - Nonaccrual
Real estate – residential, farmland, and multi-family		4		438		438
Total non-covered TDRs arising during period		10		1,115		1,115
Total covered TDRs arising during period– Accruing		2	$	248	$	245
Total covered TDRs arising during period – Nonaccrual		5		710		682
Total TDRs arising during period		17	$	2,073	$	2,042

The following table presents information related to loans modified in a troubled debt restructuring during the three and six months ended June 30, 2013.

($ in thousands)	For the three months ended June 30, 2013
	Number of Contracts		Pre-Modification Restructured Balances		Post-Modification Restructured Balances
Non-covered TDRs – Accruing
Real estate – residential, farmland, and multi-family		3	$	574	$	576
Real estate – commercial		1		103		103
Non-covered TDRs – Nonaccrual		—		—		—
Total non-covered TDRs arising during period		4		677		679
Total covered TDRs arising during period– Accruing		3	$	312	$	311
Total covered TDRs arising during period – Nonaccrual		—		—		—
Total TDRs arising during period		7	$	989	$	990

($ in thousands)	For the six months ended June 30, 2013
	Number of Contracts		Pre-Modification Restructured Balances		Post-Modification Restructured Balances
Non-covered TDRs – Accruing
Real estate – residential, farmland, and multi-family		9	$	1,082	$	1,084
Real estate – commercial		3		634		634
Consumer		1		14		14
Non-covered TDRs - Nonaccrual
Real estate – residential, farmland, and multi-family		3		209		209
Total non-covered TDRs arising during period		16		1,939		1,941
Total covered TDRs arising during period– Accruing		4	$	359	$	351
Total covered TDRs arising during period – Nonaccrual		—		—		—
Total TDRs arising during period		20	$	2,298	$	2,292

Schedule od accruing restructured loans that defaulted in the period

Accruing restructured loans that were modified in the previous 12 months and that defaulted during the three and six months ended June 30, 2014 are presented in the table below. The Company considers a loan to have defaulted when it becomes 90 or more days delinquent under the modified terms, has been transferred to nonaccrual status, or has been transferred to foreclosed real estate.

($ in thousands)	For the three months ended June 30, 2014				For the six months ended June 30, 2014
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Non-covered accruing TDRs that subsequently defaulted
Real estate – construction, land development & other land loans		—	$	—		1	$	5
Real estate – commercial		—		—		1		71
Total non-covered TDRs that subsequently defaulted		—	$	—		2	$	76
Total accruing covered TDRs that subsequently defaulted		—	$	—		—	$	—
Total accruing TDRs that subsequently defaulted		—	$	—		2	$	76

Accruing restructured loans that were modified in the previous 12 months and that defaulted during the three and six months ended June 30, 2013 are presented in the table below.

($ in thousands)	For the three months ended June 30, 2013				For the six months ended June 30, 2013
	Number of Contracts		Recorded Investment		Number of Contracts		Recorded Investment
Non-covered accruing TDRs that subsequently defaulted
Real estate – construction, land development & other land loans		1	$	342		1	$	342
Real estate – residential, farmland, and multi-family		—		—		1		252
Total non-covered TDRs that subsequently defaulted		1	$	342		2	$	594
Total accruing covered TDRs that subsequently defaulted		—	$	—		1	$	3,501
Total accruing TDRs that subsequently defaulted		1	$	342		3	$	4,095