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Loans and Asset Quality Information (Tables)
9 Months Ended
Sep. 30, 2016
Loans and Asset Quality Information [Abstract]  
Summary of balances related to the expired and terminated agreements
   Bank of
Asheville non-
single family
agreement
termination
April 1, 2016
   Remaining loss
share agreement
terminations
July 1, 2016
 
Carrying value of total covered loans transferred to non-covered  $17,737    78,387 
Covered nonaccrual loans transferred to non-covered   2,785    4,194 
Covered foreclosed real estate transferred to non-covered   1,165    385 
Allowance for loan losses associated with covered loans
transferred to allowance for non-covered loans
   307    1,074 
Summary of the major categories of total loans outstanding
($ in thousands)  September 30, 2016   December 31, 2015   September 30, 2015 
   Amount   Percentage   Amount   Percentage   Amount   Percentage 
All loans:                        
                         
Commercial, financial, and agricultural  $248,877    9%   $202,671    8%   $199,630    8% 
Real estate – construction, land development & other land loans   327,863    12%    308,969    12%    294,426    12% 
Real estate – mortgage – residential (1-4 family) first mortgages   756,880    29%    768,559    31%    770,691    31% 
Real estate – mortgage – home equity loans / lines of credit   239,049    9%    232,601    9%    224,639    9% 
Real estate – mortgage – commercial and other   1,026,328    39%    957,587    38%    944,432    38% 
Installment loans to individuals   52,264    2%    47,666    2%    47,120    2% 
    Subtotal   2,651,261    100%    2,518,053    100%    2,480,938    100% 
Unamortized net deferred loan costs   198         873         765      
    Total loans  $2,651,459        $2,518,926        $2,481,703      
Summary of the major categories of non-covered and covered loans outstanding
($ in thousands)  December 31, 2015   September 30, 2015 
   Non-covered   Covered   Total   Non-covered   Covered   Total 
                         
Commercial, financial, and agricultural  $201,798    873    202,671    198,624    1,006    199,630 
Real estate – construction, land development & other land loans   305,228    3,741    308,969    290,465    3,961    294,426 
Real estate – mortgage – residential (1-4 family) first mortgages   692,902    75,657    768,559    692,431    78,260    770,691 
Real estate – mortgage – home equity loans / lines of credit   221,995    10,606    232,601    213,435    11,204    224,639 
Real estate – mortgage – commercial and other   945,823    11,764    957,587    932,254    12,178    944,432 
Installment loans to individuals   47,666        47,666    47,120        47,120 
    Subtotal   2,415,412    102,641    2,518,053    2,374,329    106,609    2,480,938 
Unamortized net deferred loan costs   873        873    765        765 
    Total  $2,416,285    102,641    2,518,926    2,375,094    106,609    2,481,703 
Schedule of the carrying amount of the covered loans

 

 

($ 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  $        873    886    873    886 
Real estate – construction, land development & other land loans   277    365    3,464    3,457    3,741    3,822 
Real estate – mortgage – residential (1-4 family) first mortgages   102    633    75,555    88,434    75,657    89,067 
Real estate – mortgage – home equity loans / lines of credit   7    14    10,599    12,099    10,606    12,113 
Real estate – mortgage – commercial and other   1,003    3,136    10,761    11,458    11,764    14,594 
     Total  $1,389    4,148    101,252    116,334    102,641    120,482 
Schedule of activity in covered purchased nonimpaired loans

($ in thousands)

 

    
Carrying amount of nonimpaired covered loans at December 31, 2014  $125,644 
Principal repayments   (30,238)
Transfers to foreclosed real estate   (1,211)
Net loan recoveries   2,306 
Accretion of loan discount   4,751 
Carrying amount of nonimpaired covered loans at December 31, 2015   101,252 
Principal repayments   (7,997)
Transfers to foreclosed real estate   (1,036)
Net loan recoveries   1,784 
Accretion of loan discount   1,908 
Transfer to non-covered loans due to expiration of loss-share agreement, April 1, 2016   (17,530)
Transfer to non-covered loans due to termination of loss-share agreements, July 1, 2016   (78,381)
Carrying amount of nonimpaired covered loans at September 30, 2016  $ 
Schedule of activity in purchased impaired loans

 

($ in thousands)

 

 

 

Purchased Impaired Loans

  Contractual
Principal
Receivable
   Fair Market
Value
Adjustment –
Write Down
(Nonaccretable
Difference)
   Carrying
Amount
 
Balance at December 31, 2014  $5,859    3,262    2,597 
Change due to payments received   (634)   (102)   (532)
Transfer to foreclosed real estate   (431)   (336)   (95)
Other   (3)   (3)    
Balance at December 31, 2015  $4,791    2,821    1,970 
Change due to payments received   (3,400)   (2,244)   (1,156)
Change due to loan charge-off   (428)   (358)   (70)
Balance at September 30, 2016  $963    219    744 
Summary of nonperforming assets

 

ASSET QUALITY DATA ($ in thousands)

  September 30,
2016
   December 31,
2015
   September 30,
2015
 
             
Nonperforming assets               
Nonaccrual loans  $32,796    47,810    47,720 
Restructured loans - accruing   27,273    31,489    33,075 
Accruing loans > 90 days past due            
     Total nonperforming loans   60,069    79,299    80,795 
Foreclosed real estate   10,103    9,994    10,873 
Total nonperforming assets  $70,172    89,293    91,668 
                
Total covered nonperforming assets included above (1)  $    12,100    10,767 

 

 

(1) All FDIC loss share agreements were terminated effective July 1, 2016 and, accordingly, assets previously covered under those agreements become non-covered on that date.

Schedule of nonaccrual loans
($ in thousands)
 
  September 30,
2016
   December 31,
2015
   September 30,
2015
 
Commercial, financial, and agricultural  $2,253    2,964    2,852 
Real estate – construction, land development & other land loans   3,858    4,704    5,434 
Real estate – mortgage – residential (1-4 family) first mortgages   17,989    23,829    25,206 
Real estate – mortgage – home equity loans / lines of credit   2,441    3,525    2,472 
Real estate – mortgage – commercial and other   6,151    12,571    11,398 
Installment loans to individuals   104    217    358 
  Total  $32,796    47,810    47,720 
                
Total covered nonperforming assets included above  $    7,816    5,373 
Schedule of analysis of the payment status of loans
($ in thousands)  30-59
Days Past
Due
   60-89 Days
Past Due
   Nonaccrual
Loans
   Current   Total Loans
Receivable
 
                     
Commercial, financial, and agricultural  $111    90    2,253    246,423    248,877 
Real estate – construction, land development & other land loans   1,117    338    3,858    322,550    327,863 
Real estate – mortgage – residential (1-4 family) first mortgages   2,835    1,052    17,989    735,004    756,880 
Real estate – mortgage – home equity loans / lines of credit   670    65    2,441    235,873    239,049 
Real estate – mortgage – commercial and other   3,670    261    6,151    1,016,246    1,026,328 
Installment loans to individuals   345    258    104    51,557    52,264 
  Total  $8,748    2,064    32,796    2,607,653    2,651,261 
Unamortized net deferred loan costs                       198 
           Total loans                      $2,651,459 

 

($ in thousands)  30-59
Days Past
Due
   60-89 Days
Past Due
   Nonaccrual
Loans
   Current   Total Loans
Receivable
 
                     
Commercial, financial, and agricultural  $999    127    2,964    198,581    202,671 
Real estate – construction, land development & other land loans   1,512    429    4,704    302,324    308,969 
Real estate – mortgage – residential (1-4 family) first mortgages   15,443    3,614    23,829    725,673    768,559 
Real estate – mortgage – home equity loans / lines of credit   1,276    105    3,525    227,695    232,601 
Real estate – mortgage – commercial and other   5,591    864    12,571    938,561    957,587 
Installment loans to individuals   278    255    217    46,916    47,666 
           Total loans  $25,099    5,394    47,810    2,439,750    2,518,053 
Unamortized net deferred loan costs                       873 
           Total loans                      $2,518,926 
                          
Covered loans included above  $3,313    402    7,816    91,110    102,641 
Schedule of activity in the allowance for loan losses for non-covered and covered loans

 

 

($ in thousands)

  Commercial,
Financial,
and
Agricultural
   Real Estate

Construction,
Land
Development,
& Other
Land Loans
   Real Estate

Residential
(1-4 Family)
First
Mortgages
   Real Estate
– Mortgage
– Home
Equity
Lines of
Credit
   Real Estate
– Mortgage

Commercial
and Other
   Installment
Loans to
Individuals
   Unallo
-cated
   Covered   Total 
 
As of and for the three months ended September 30, 2016
                                     
Beginning balance  $4,282    2,899    7,860    2,285    5,571    1,480    572    1,074    26,023 
Charge-offs   (495)   (161)   (692)   (196)   (288)   (223)           (2,055)
Recoveries   252    588    377    69    317    55            1,658 
Transfer from covered status       3    788    281    1        1    (1,074)    
Removed due to branch loan sale   (263)   (39)   (347)   (110)   (228)   (63)   (1)       (1,051)
Provisions   755    (612)   (492)   54    (165)   (38)   498         
Ending balance  $4,531    2,678    7,494    2,383    5,208    1,211    1,070        24,575 
                                              
As of and for the nine months ended September 30, 2016
                                              
Beginning balance  $4,742    3,754    7,832    2,893    5,816    1,051    696    1,799    28,583 
Charge-offs   (1,229)   (638)   (3,383)   (930)   (850)   (741)       (244)   (8,015)
Recoveries   554    799    672    188    602    308        1,958    5,081 
Transfer from covered status   56    65    839    293    127        1    (1,381)    
Removed due to branch loan sale   (263)   (39)   (347)   (110)   (228)   (63)   (1)       (1,051)
Provisions   671    (1,263)   1,881    49    (259)   656    374    (2,132)   (23)
Ending balance  $4,531    2,678    7,494    2,383    5,208    1,211    1,070        24,575 
                                              
Ending balances as of September 30, 2016:  Allowance for loan losses
                                              
Individually evaluated for impairment  $9    169    1,306    5    444                1,933 
Collectively evaluated for impairment  $4,522    2,509    6,188    2,372    4,764    1,211    1,070        22,636 
Loans acquired with deteriorated credit quality  $            6                    6 
                                              
Loans receivable as of September 30, 2016:
                                              
Ending balance – total  $248,877    327,863    756,880    239,049    1,026,328    52,264            2,651,261 
Unamortized net deferred loan costs                                           198 
Total loans                                          $2,651,459 
                                              
Ending balances as of September 30, 2016: Loans
                                              
Individually evaluated for impairment  $1,732    4,181    21,611    310    11,291    1            39,126 
Collectively evaluated for impairment  $247,145    323,682    735,062    238,733    1,014,506    52,263            2,611,391 
Loans acquired with deteriorated credit quality  $        207    6    531                744 

The following table presents the activity in the allowance for loan losses for non-covered and covered loans for the year ended December 31, 2015.

 

($ in thousands)  Commercial,
Financial,
and
Agricultural
   Real Estate –
Construction,
Land
Development,
& Other Land
Loans
   Real Estate
– Residential
(1-4 Family)
First
Mortgages
   Real
Estate–
Mortgage –
Home
Equity
Lines of
Credit
   Real
Estate–
Mortgage–
Commercial
and Other
   Installment
Loans to
Individuals
   Unallo-
cated
   Total Non-
Covered
   Total
Covered
 
                                     
As of and for the year ended December 31, 2015    
Beginning balance  $6,769    8,158    10,136    4,753    6,466    1,916    147    38,345    2,281 
Charge-offs   (2,908)   (3,034)   (4,904)   (1,054)   (2,804)   (2,411)       (17,115)   (1,316)
Recoveries   831    998    279    121    904    413        3,546    3,622 
Provisions   50    (2,368)   2,321    (927)   1,250    1,133    549    2,008    (2,788)
Ending balance  $4,742    3,754    7,832    2,893    5,816    1,051    696    26,784    1,799 
                                              
Ending balances as of December 31, 2015:  Allowance for loan losses
Individually evaluated for impairment  $304    241    1,440    321    336    45        2,687    554 
Collectively evaluated for impairment  $4,438    3,513    6,392    2,572    5,480    1,006    696    24,097    1,175 
Loans acquired with deteriorated credit quality  $                                70 
                                              
Loans receivable as of December 31, 2015:
Ending balance – total  $201,798    305,228    692,902    221,995    945,823    47,666        2,415,412    102,641 
Unamortized net deferred loan costs                                      873     
Total non-covered loans                                      2,416,285    102,641 
                                              
Ending balances as of December 31, 2015: Loans
Individually evaluated for impairment  $992    4,898    21,325    758    16,605    76        44,654    7,055 
Collectively evaluated for impairment  $200,806    300,330    671,577    221,237    928,637    47,590        2,370,177    94,197 
Loans acquired with deteriorated credit quality  $                581            581    1,389 

 

The following table presents the activity in the allowance for loan losses for non-covered and covered loans for the three and nine months ended September 30, 2015.

 

($ in thousands)  Commercial,
Financial,
and
Agricultural
   Real Estate –
Construction,
Land
Development,
& Other Land
Loans
   Real Estate
– Residential
(1-4 Family)
First
Mortgages
   Real
Estate–
Mortgage–
Home
Equity
Lines of
Credit
   Real
Estate–
Mortgage–
Commercial
and Other
   Installment
Loans to
Individuals
   Unallo-
cated
   Total Non-
Covered
   Total
Covered
 
                                     
As of and for the three months ended September 30, 2015    
Beginning balance  $5,387    5,427    8,082    3,383    5,664    1,116    1,096    30,155    1,935 
Charge-offs   (473)   (642)   (1,692)   (129)   (289)   (419)       (3,644)   (84)
Recoveries   354    626    82    47    150    118        1,377    1,730 
Provisions   (187)   (1,088)   1,275    (498)   226    223    316    267    (1,681)
Ending balance  $5,081    4,323    7,747    2,803    5,751    1,038    1,412    28,155    1,900 
                                              
As of and for the nine months ended September 30, 2015
Beginning balance  $6,769    8,158    10,136    4,753    6,466    1,916    147    38,345    2,281 
Charge-offs   (2,774)   (2,650)   (3,949)   (726)   (2,311)   (1,997)       (14,407)   (1,200)
Recoveries   697    944    241    105    545    313        2,845    2,928 
Provisions   389    (2,129)   1,319    (1,329)   1,051    806    1,265    1,372    (2,109)
Ending balance  $5,081    4,323    7,747    2,803    5,751    1,038    1,412    28,155    1,900 
                                              
Ending balances as of September 30, 2015:  Allowance for loan losses
Individually evaluated for impairment  $93    270    1,502    46    456    42        2,409    466 
Collectively evaluated for impairment  $4,988    4,053    6,245    2,757    5,295    996    1,412    25,746    1,391 
Loans acquired with deteriorated credit quality  $                                43 
                                              
Loans receivable as of September 30, 2015:
Ending balance – total  $198,624    290,465    692,431    213,435    932,254    47,120        2,374,329    106,609 
Unamortized net deferred loan costs                                      765     
Total non-covered loans                                      2,375,094    106,609 
                                              
Ending balances as of September 30, 2015: Loans
Individually evaluated for impairment  $909    5,126    20,857    435    18,521    77        45,925    5,167 
Collectively evaluated for impairment  $197,715    285,339    671,574    213,000    913,136    47,043        2,327,807    99,892 
Loans acquired with deteriorated credit quality  $                597            597    1,520 
Schedule of impaired loans individually evaluated

 

($ in thousands)

  Recorded
Investment
   Unpaid
Principal
Balance
   Related
Allowance
   Average
Recorded
Investment
 
Loans with no related allowance recorded:                    
                     
Commercial, financial, and agricultural  $1,674    1,796        872 
Real estate – mortgage – construction, land development & other land loans   3,397    4,703        3,746 
Real estate – mortgage – residential (1-4 family) first mortgages   10,321    12,522        9,098 
Real estate – mortgage –home equity loans / lines of credit   143    202        140 
Real estate – mortgage –commercial and other   6,103    7,049        8,777 
Installment loans to individuals   1    2        2 
Total impaired loans with no allowance  $21,639    26,274        22,635 
                     
Loans with an allowance recorded:                    
                     
Commercial, financial, and agricultural  $58    110    9    229 
Real estate – mortgage – construction, land development & other land loans   784    800    169    861 
Real estate – mortgage – residential (1-4 family) first mortgages   11,497    11,725    1,306    12,021 
Real estate – mortgage –home equity loans / lines of credit   173    179    11    358 
Real estate – mortgage –commercial and other   5,719    5,887    444    5,548 
Installment loans to individuals               61 
Total impaired loans with allowance  $18,231    18,701    1,939    19,078 

 

 

($ in thousands)

  Recorded
Investment
   Unpaid
Principal
Balance
   Related
Allowance
   Average
Recorded
Investment
 
Impaired loans with no related allowance recorded:                    
                     
Commercial, financial, and agricultural  $360    422        235 
Real estate – mortgage – construction, land development & other land loans   3,944    7,421        4,651 
Real estate – mortgage – residential (1-4 family) first mortgages   12,346    14,644        11,258 
Real estate – mortgage –home equity loans / lines of credit   121    175        505 
Real estate – mortgage –commercial and other   13,156    16,818        18,112 
Installment loans to individuals   3    4        5 
Total impaired loans with no allowance  $29,930    39,484        34,766 
                     
Total covered impaired loans with no allowance included above  $5,231    8,529        5,607 
                     
Impaired loans with an allowance recorded:                    
                     
Commercial, financial, and agricultural  $676    709    348    616 
Real estate – mortgage – construction, land development & other land loans   954    976    241    1,980 
Real estate – mortgage – residential (1-4 family) first mortgages   15,285    15,691    1,912    15,636 
Real estate – mortgage –home equity loans / lines of credit   667    678    344    430 
Real estate – mortgage –commercial and other   6,094    6,279    421    4,950 
Installment loans to individuals   73    80    45    111 
Total impaired loans with allowance  $23,749    24,413    3,311    23,723 
                     
Total covered impaired loans with allowance included above  $3,213    3,476    624    3,742 
Schedule of recorded investment in loans by credit quality indicators
($ in thousands)    
   Pass   Special
Mention Loans
   Classified
Accruing Loans
   Classified
Nonaccrual
Loans
   Total 
                     
Commercial, financial, and agricultural  $233,267    10,062    3,295    2,253    248,877 
Real estate – construction, land development & other land loans   305,881    9,693    8,431    3,858    327,863 
Real estate – mortgage – residential (1-4 family) first mortgages   684,241    16,997    37,653    17,989    756,880 
Real estate – mortgage – home equity loans / lines of credit   226,103    1,394    9,111    2,441    239,049 
Real estate – mortgage – commercial and other   977,505    27,950    14,722    6,151    1,026,328 
Installment loans to individuals   51,561    349    250    104    52,264 
  Total  $2,478,558    66,445    73,462    32,796    2,651,261 
Unamortized net deferred loan costs                       198 
            Total loans                       2,651,459 

 

($ in thousands)    
   Pass   Special
Mention Loans
   Classified
Accruing Loans
   Classified
Nonaccrual
Loans
   Total 
                     
Commercial, financial, and agricultural  $192,454    3,733    3,520    2,964    202,671 
Real estate – construction, land development & other land loans   280,647    13,489    10,129    4,704    308,969 
Real estate – mortgage – residential (1-4 family) first mortgages   664,618    39,895    40,217    23,829    768,559 
Real estate – mortgage – home equity loans / lines of credit   212,391    7,374    9,311    3,525    232,601 
Real estate – mortgage – commercial and other   897,579    33,155    14,282    12,571    957,587 
Installment loans to individuals   46,209    776    464    217    47,666 
  Total  $2,293,898    98,422    77,923    47,810    2,518,053 
Unamortized net deferred loan costs                       873 
Total loans                       2,518,926 
                          
Total covered loans included above  $71,398    7,423    16,004    7,816    102,641 
Schedule of information related to loans modified in a troubled debt restructuring
($ in thousands)  For the three months ended
September 30, 2016
   For the three months ended
September 30, 2015
 
   Number of
Contracts
   Pre-
Modification
Restructured
Balances
   Post-
Modification
Restructured
Balances
   Number of
Contracts
   Pre-
Modification
Restructured
Balances
   Post-
Modification
Restructured
Balances
 
TDRs – Accruing                              
Commercial, financial, and agricultural   1   $1,071   $1,071       $   $ 
Real estate – construction, land development & other land loans               1    235    235 
Real estate – mortgage – residential (1-4 family) first mortgages                        
Real estate – mortgage – home equity loans / lines of credit               2    411    411 
Real estate – mortgage – commercial and other                        
Installment loans to individuals                        
                               
TDRs – Nonaccrual                              
Commercial, financial, and agricultural                        
Real estate – construction, land development & other land loans               2    495    495 
Real estate – mortgage – residential (1-4 family) first mortgages               1    95    95 
Real estate – mortgage – home equity loans / lines of credit                        
Real estate – mortgage – commercial and other                        
Installment loans to individuals                        
                               
Total TDRs arising during period   1   $1,071   $1,071    6   $1,236   $1,236 

 

($ in thousands)  For the nine months ended
September 30, 2016
   For the nine months ended
September 30, 2015
 
   Number of
Contracts
   Pre-
Modification
Restructured
Balances
   Post-
Modification
Restructured
Balances
   Number of
Contracts
   Pre-
Modification
Restructured
Balances
   Post-
Modification
Restructured
Balances
 
TDRs – Accruing                              
Commercial, financial, and agricultural   1   $1,071   $1,071    2   $52   $52 
Real estate – construction, land development & other land loans               1    235    235 
Real estate – mortgage – residential (1-4 family) first mortgages               2    265    265 
Real estate – mortgage – home equity loans / lines of credit                        
Real estate – mortgage – commercial and other               4    557    557 
Installment loans to individuals                        
                               
TDRs – Nonaccrual                              
Commercial, financial, and agricultural                        
Real estate – construction, land development & other land loans               3    496    496 
Real estate – mortgage – residential (1-4 family) first mortgages               4    399    399 
Real estate – mortgage – home equity loans / lines of credit                        
Real estate – mortgage – commercial and other                        
Installment loans to individuals                        
                               
Total TDRs arising during period   1   $1,071   $1,071    16   $2,004   $2,004 
                               
Total covered TDRs arising during period included above               2   $139   $139 
Schedule of accruing restructured loans that defaulted in the period
($ in thousands)  For the three months ended
September 30, 2016
   For the three months ended
September 30, 2015
 
   Number of
Contracts
   Recorded
Investment
   Number of
Contracts
   Recorded
Investment
 
                 
Accruing TDRs that subsequently defaulted                    
Real estate – mortgage – residential (1-4 family first mortgages)      $    1   $152 
                     
Total accruing TDRs that subsequently defaulted      $    1   $152 

 

($ in thousands)  For the nine months ended
September 30, 2016
   For the nine months ended
September 30, 2015
 
   Number of
Contracts
   Recorded
Investment
   Number of
Contracts
   Recorded
Investment
 
                 
Accruing TDRs that subsequently defaulted                    
Commercial, financial, and agricultural   1   $44    1   $7 
Real estate – mortgage – residential (1-4 family first mortgages)           2    186 
Real estate – mortgage – commercial and other   1    21         
                     
Total accruing TDRs that subsequently defaulted   2   $65    3   $193 
Total covererd accruing TDRs that subsequently defaulted included above   1   $44       $