| Portfolio Loans Covered by Loss Share (Covered loans) |
PORTFOLIO LOANS COVERED BY LOSS SHARE ("Covered loans")
Below is a summary of Covered loans by category at September 30, 2013, and December 31, 2012: | | | | | | | | | | | | September 30, 2013 | | December 31, 2012 | (in thousands) | Weighted- Average Risk Rating | Recorded Investment Covered Loans | | Weighted- Average Risk Rating | Recorded Investment Covered Loans | Real Estate Loans: | | | | | | Construction and Land Development | 6.96 |
| $15,332 |
| | 7.06 |
| $30,537 |
| Commercial real estate - Investor Owned | 6.54 | 51,842 |
| | 6.08 | 57,602 |
| Commercial real estate - Owner Occupied | 6.87 | 43,252 |
| | 6.65 | 47,140 |
| Residential real estate | 5.95 | 37,446 |
| | 5.68 | 42,531 |
| Total real estate loans | |
| $147,872 |
| | |
| $177,810 |
| Commercial and industrial | 6.99 | 9,095 |
| | 6.57 | 22,034 |
| Consumer & other | 6.43 | 1,845 |
| | 4.19 | 1,274 |
| Portfolio Loans | |
| $158,812 |
| | |
| $201,118 |
|
The aging of the recorded investment in past due Covered loans by portfolio class and category at September 30, 2013, and December 31, 2012, is shown below.
| | | | | | | | | | | | | | | | | | | | | | September 30, 2013 | (in thousands) | 30-89 Days Past Due | | 90 or More
Days Past Due | | Total Past Due | | Current | | Total | Commercial & Industrial | $ | 1,642 |
| | $ | 1,166 |
| | $ | 2,808 |
| | $ | 6,287 |
| | $ | 9,095 |
| Real Estate: | | | | | | | | | | Commercial - Owner Occupied | 3,323 |
| | 5,024 |
| | 8,347 |
| | 34,905 |
| | 43,252 |
| Commercial - Investor Owned | 1,653 |
| | 4,465 |
| | 6,118 |
| | 45,724 |
| | 51,842 |
| Construction and Land Development | — |
| | 3,886 |
| | 3,886 |
| | 11,446 |
| | 15,332 |
| Residential | 673 |
| | 6,591 |
| | 7,264 |
| | 30,182 |
| | 37,446 |
| Consumer & Other | — |
| | — |
| | — |
| | 1,845 |
| | 1,845 |
| Total | $ | 7,291 |
| | $ | 21,132 |
| | $ | 28,423 |
| | $ | 130,389 |
| | $ | 158,812 |
|
| | | | | | | | | | | | | | | | | | | | | | December 31, 2012 | (in thousands) | 30-89 Days Past Due | | 90 or More
Days Past Due | | Total Past Due | | Current | | Total | Commercial & Industrial | $ | 319 |
| | $ | 3,925 |
| | $ | 4,244 |
| | $ | 17,790 |
| | $ | 22,034 |
| Real Estate: | | | | | | | | | | Commercial - Owner Occupied | 887 |
| | 5,144 |
| | 6,031 |
| | 41,109 |
| | 47,140 |
| Commercial - Investor Owned | 308 |
| | 665 |
| | 973 |
| | 56,629 |
| | 57,602 |
| Construction and Land Development | 36 |
| | 13,532 |
| | 13,568 |
| | 16,969 |
| | 30,537 |
| Residential | 1,232 |
| | 2,907 |
| | 4,139 |
| | 38,392 |
| | 42,531 |
| Consumer & Other | 1 |
| | 2 |
| | 3 |
| | 1,271 |
| | 1,274 |
| Total | $ | 2,783 |
| | $ | 26,175 |
| | $ | 28,958 |
| | $ | 172,160 |
| | $ | 201,118 |
|
The following table is a rollforward of Covered loans, net of the allowance for loan losses, for the nine months ended September 30, 2013 and 2012.
| | | | | | | | | | | | | | | | | (In thousands) | Contractual Cashflows | | Less: Non-accretable Difference | | Less: Accretable Yield | | Carrying Amount | Balance January 1, 2013 | $ | 386,966 |
| | $ | 118,627 |
| | $ | 78,768 |
| | $ | 189,571 |
| Principal reductions and interest payments | (37,421 | ) | | — |
| | — |
| | (37,421 | ) | Accretion of loan discount | — |
| | — |
| | (19,987 | ) | | 19,987 |
| Changes in contractual and expected cash flows due to remeasurement | 9,216 |
| | (10,858 | ) | | 14,233 |
| | 5,841 |
| Reductions due to disposals | (68,953 | ) | | (23,867 | ) | | (12,288 | ) | | (32,798 | ) | Balance September 30, 2013 | $ | 289,808 |
| | $ | 83,902 |
| | $ | 60,726 |
| | $ | 145,180 |
| | | | | | | | | Balance January 1, 2012 | $ | 618,791 |
| | $ | 256,481 |
| | $ | 63,335 |
| | $ | 298,975 |
| Principal reductions and interest payments | (68,783 | ) | | — |
| | — |
| | (68,783 | ) | Accretion of loan discount | — |
| | — |
| | (22,231 | ) | | 22,231 |
| Changes in contractual and expected cash flows due to remeasurement | 1,671 |
| | (67,401 | ) | | 67,178 |
| | 1,894 |
| Reductions due to disposals | (107,669 | ) | | (50,846 | ) | | (12,837 | ) | | (43,986 | ) | Balance September 30, 2012 | $ | 444,010 |
| | $ | 138,234 |
| | $ | 95,445 |
| | $ | 210,331 |
|
The accretable yield is accreted into interest income over the estimated life of the acquired loans using the effective yield method.
A summary of activity in the FDIC loss share receivable for the nine months ended September 30, 2013 is as follows:
| | | | | (In thousands) | September 30,
2013 | Balance at beginning of period | $ | 61,475 |
| Adjustments not reflected in income: | | Cash received from the FDIC for covered assets | (9,654 | ) | FDIC reimbursable losses, net | 1,880 |
| Adjustments reflected in income: | | Amortization, net | (9,574 | ) | Loan impairment (recapture) | 2,205 |
| Reductions for payments on covered assets in excess of expected cash flows | (6,278 | ) | Balance at end of period | $ | 40,054 |
|
Due to continued favorable projections in the expected cash flows of its Covered loans, the Company continues to anticipate that it will be required to pay the FDIC at the end of one of the loss share agreements. Accordingly, a liability of $1.4 million has been recorded at September 30, 2013. As part of the remeasurement process, the Company recorded a $62,000 adjustment to increase the liability through Other noninterest expense during the quarter ended September 30, 2013. The liability will continue to be adjusted as part of the quarterly remeasurement process through the end of the loss share agreement. |