XML 167 R20.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Loans and Allowance for Credit Losses | 12 Months Ended
--- | ---
Dec. 31, 2012
Loans and Allowance for Credit Losses | Note 12—Loans and Allowance for Credit Losses The following table provides outstanding balances related to each of our loan types as of December 31:
|  | 2012 |  |  | 2011 |
|  | (dollars in thousands) |
Commercial, financial, agricultural and other |  | $ | 1,019,822 |  |  | $ | 996,739 |
Real estate construction |  |  | 87,438 |  |  |  | 76,564 |
Residential real estate |  |  | 1,241,565 |  |  |  | 1,137,059 |
Commercial real estate |  |  | 1,273,661 |  |  |  | 1,267,432 |
Loans to individuals |  |  | 582,218 |  |  |  | 565,849 |
Total loans net of unearned income |  | $ | 4,204,704 |  |  | $ | 4,043,643 |
Credit Quality Information As part of the on-going monitoring of credit quality within the loan portfolio, the following credit worthiness categories are used in grading our loans:
Pass |  | Acceptable levels of risk exist in the relationship. Includes all loans not adversely classified as OAEM, substandard or doubtful.
Other Assets Especially Mentioned (OAEM)
|  | Potential weaknesses that deserve management’s close attention. The potential weaknesses may result in deterioration of the repayment prospects or weaken the Bank’s credit position at some future date. The credit risk may be relatively minor, yet constitute an undesirable risk in light of the circumstances surrounding the specific credit. No loss of principal or interest is expected.
Substandard |  | Well-defined weakness or a weakness that jeopardizes the repayment of the debt. A loan may be classified as substandard as a result of deterioration of the borrower’s financial condition and repayment capacity. Loans for which repayment plans have not been met or collateral equity margins do not protect the Company may also be classified as substandard.
Doubtful |  | Loans with the characteristics of substandard loans with the added characteristic that collection or liquidation in full, on the basis of presently existing facts and conditions, is highly improbable.
The use of creditworthiness categories to grade loans permits management’s use of migration analysis to estimate a portion of credit risk. The Company’s internal creditworthiness grading system provides a measurement of credit risk based primarily on an evaluation of the borrower’s cash flow and collateral. Movements between these rating categories provide a predictive measure of credit losses and therefore assists in determining the appropriate level for the loan loss reserves. Category ratings are reviewed each quarter, at which time management analyzes the results, as well as other external statistics and factors related to loan performance. Loans that migrate towards higher risk rating levels generally have an increased risk of default, whereas, loans that migrate toward lower risk ratings generally will result in a lower risk factor being applied to those related loan balances. The following tables represent our credit risk profile by creditworthiness category for the years ended December 31:
|  | 2012 |
|  | Commercial, financial, agricultural and other |  |  | Real estate construction |  |  | Residential real estate |  |  | Commerical real estate |  |  | Loans to individuals |  |  | Total |
|  | (dollars in thousands) |
Pass |  | $ | 925,868 |  |  | $ | 64,353 |  |  | $ | 1,224,849 |  |  | $ | 1,119,093 |  |  | $ | 582,039 |  |  | $ | 3,916,202 |
Non-Pass |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OAEM |  |  | 31,049 |  |  |  | 925 |  |  |  | 5,647 |  |  |  | 82,581 |  |  |  | 3 |  |  |  | 120,205 |
Substandard |  |  | 62,905 |  |  |  | 18,638 |  |  |  | 11,069 |  |  |  | 71,987 |  |  |  | 176 |  |  |  | 164,775 |
Doubtful |  |  | 0 |  |  |  | 3,522 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 3,522 |
Total Non-Pass |  |  | 93,954 |  |  |  | 23,085 |  |  |  | 16,716 |  |  |  | 154,568 |  |  |  | 179 |  |  |  | 288,502 |
Total |  | $ | 1,019,822 |  |  | $ | 87,438 |  |  | $ | 1,241,565 |  |  | $ | 1,273,661 |  |  | $ | 582,218 |  |  | $ | 4,204,704 |
|  | 2011 |
|  | Commercial, financial, agricultural and other |  |  | Real estate construction |  |  | Residential real estate |  |  | Commercial real estate |  |  | Loans to individuals |  |  | Total |
|  | (dollars in thousands) |
Pass |  | $ | 904,057 |  |  | $ | 44,914 |  |  | $ | 1,126,143 |  |  | $ | 1,110,664 |  |  | $ | 565,842 |  |  | $ | 3,751,620 |
Non-Pass |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
OAEM |  |  | 27,627 |  |  |  | 4,238 |  |  |  | 5,484 |  |  |  | 61,855 |  |  |  | 7 |  |  |  | 99,211 |
Substandard |  |  | 60,114 |  |  |  | 21,701 |  |  |  | 5,432 |  |  |  | 94,913 |  |  |  | 0 |  |  |  | 182,160 |
Doubtful |  |  | 4,941 |  |  |  | 5,711 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 10,652 |
Total Non-Pass |  |  | 92,682 |  |  |  | 31,650 |  |  |  | 10,916 |  |  |  | 156,768 |  |  |  | 7 |  |  |  | 292,023 |
Total |  | $ | 996,739 |  |  | $ | 76,564 |  |  | $ | 1,137,059 |  |  | $ | 1,267,432 |  |  | $ | 565,849 |  |  | $ | 4,043,643 |
Portfolio Risks Credit quality of our loan portfolio represents significant risk to our earnings, capital, regulatory agency relationships, investment community and shareholder returns. First Commonwealth devotes a substantial amount of resources managing this risk primarily through our credit administration department that develops and administers policies and procedures for underwriting, maintaining, monitoring and collecting activities. Credit administration is independent of lending departments and oversight is provided by the credit committee of the First Commonwealth Board of Directors. Total gross charge-offs for the year ended December 31, 2012 were $17.0 million. Total gross charge-offs for the year ended December 31, 2011 were $68.3 million, including charge-offs of $9.5 million recognized on loans transferred to held for sale. Criticized loans have been evaluated with respect to the adequacy of the allowance for credit losses which we believe is adequate at this time. However, changes in economic conditions, interest rates, borrower financial condition, delinquency trends or previously established fair values of collateral factors could significantly change those judgmental estimates. The credit administration department continually monitors and evaluates those evolving factors in order to adjust the allowance for credit losses. Our local markets of western Pennsylvania, which comprise 91% of our loan portfolio, have not been as intensely affected by the most recent economic recession as some other regions of the country and are evidencing a quicker economic recovery. We believe adhering to tighter geographic markets and credit standards will improve ongoing credit quality in the portfolios. Risk factors associated with commercial real estate and construction related loans are monitored closely since this is an area that represents the most significant portion of the loan portfolio and has experienced the most stress during the economic downturn and has evidenced little recovery strength. Age Analysis of Past Due Loans by Segment The following tables delineate the aging analysis of the recorded investments in past due loans as of December 31. Also included in these tables are loans that are 90 days or more past due and still accruing because they are well-secured and in the process of collection.
|  | 2012 |
|  | 30 - 59 days past due |  |  | 60 - 89 days past due |  |  | 90 days and greater and still accruing |  |  | Nonaccrual |  |  | Total past due and nonaccrual |  |  | Current |  |  | Total |
|  | (dollars in thousands) |
Commercial, financial, agricultural and other |  | $ | 991 |  |  | $ | 620 |  |  | $ | 288 |  |  | $ | 29,258 |  |  | $ | 31,157 |  |  | $ | 988,665 |  |  | $ | 1,019,822 |
Real estate construction |  |  | 2 |  |  |  | 19 |  |  |  | 15 |  |  |  | 9,778 |  |  |  | 9,814 |  |  |  | 77,624 |  |  |  | 87,438 |
Residential real estate |  |  | 6,597 |  |  |  | 2,357 |  |  |  | 730 |  |  |  | 9,283 |  |  |  | 18,967 |  |  |  | 1,222,598 |  |  |  | 1,241,565 |
Commercial real estate |  |  | 3,339 |  |  |  | 1,389 |  |  |  | 195 |  |  |  | 46,023 |  |  |  | 50,946 |  |  |  | 1,222,715 |  |  |  | 1,273,661 |
Loans to individuals |  |  | 3,140 |  |  |  | 934 |  |  |  | 1,219 |  |  |  | 176 |  |  |  | 5,469 |  |  |  | 576,749 |  |  |  | 582,218 |
Total |  | $ | 14,069 |  |  | $ | 5,319 |  |  | $ | 2,447 |  |  | $ | 94,518 |  |  | $ | 116,353 |  |  | $ | 4,088,351 |  |  | $ | 4,204,704 |
|  | 2011 |
|  | 30 - 59 days past due |  |  | 60 - 89 days past due |  |  | 90 days and greater and still accruing |  |  | Nonaccrual |  |  | Total past due and nonaccrual |  |  | Current |  |  | Total |
|  | (dollars in thousands) |
Commercial, financial, agricultural and other |  | $ | 5,433 |  |  | $ | 824 |  |  | $ | 287 |  |  | $ | 33,459 |  |  | $ | 40,003 |  |  | $ | 956,736 |  |  | $ | 996,739 |
Real estate construction |  |  | 0 |  |  |  | 180 |  |  |  | 0 |  |  |  | 14,911 |  |  |  | 15,091 |  |  |  | 61,473 |  |  |  | 76,564 |
Residential real estate |  |  | 7,144 |  |  |  | 2,100 |  |  |  | 8,767 |  |  |  | 3,153 |  |  |  | 21,164 |  |  |  | 1,115,895 |  |  |  | 1,137,059 |
Commercial real estate |  |  | 3,671 |  |  |  | 1,241 |  |  |  | 157 |  |  |  | 26,953 |  |  |  | 32,022 |  |  |  | 1,235,410 |  |  |  | 1,267,432 |
Loans to individuals |  |  | 2,952 |  |  |  | 962 |  |  |  | 1,804 |  |  |  | 0 |  |  |  | 5,718 |  |  |  | 560,131 |  |  |  | 565,849 |
Total |  | $ | 19,200 |  |  | $ | 5,307 |  |  | $ | 11,015 |  |  | $ | 78,476 |  |  | $ | 113,998 |  |  | $ | 3,929,645 |  |  | $ | 4,043,643 |
Nonaccrual Loans The previous table summarizes nonaccrual loans by loan segment. The company generally places loans on nonaccrual status when the full and timely collection of interest or principal becomes uncertain, when part of the principal balance has been charged off and no restructuring has occurred or the loans reach a certain number of days past due. Generally loans 90 days or more past due are placed on nonaccrual status, except for consumer loans which are placed in nonaccrual status at 150 days past due. In periods prior to the third quarter of 2012, if a consumer loan was well secured and in the process of collection, it remained on accrual status, as delinquency was not a factor in moving it to nonaccrual status. When a loan is placed on nonaccrual, the accrued unpaid interest receivable is reversed against interest income and all future payments received are applied as a reduction to the loan principal. Generally, the loan is returned to accrual status when (a) all delinquent interest and principal become current under the terms of the loan agreement or (b) the loan is both well-secured and in the process of collection and collectability is no longer doubtful. Impaired Loans Management considers loans to be impaired when, based on current information and events, it is determined that the company will probably not be able to collect all amounts due according to the loan contract, including scheduled interest payments. Determination of impairment is treated the same across all loan categories. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole source or repayment for the loan is the operation or liquidation of collateral. When the loan is collateral dependent, the appraised value less estimated cost to sell is utilized. If management determines the value of the impaired loan is less than the recorded investment in the loan, impairment is recognized through an allowance estimate or a charge-off to the allowance. Troubled debt restructured loans on accrual status are considered to be impaired loans. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal, under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received, under the cash basis method. Included in the 2011 total of nonperforming loans was $13.4 million of loans held for sale. While these loans were considered to be nonperforming, they were not taken into consideration when determining the allowance for credit losses as they were carried at the lower of cost or fair value. Nonperforming loans at December 31, 2011 included an $11.3 million loan for a waste management company, which was classified as a troubled debt restructured loan. This loan was paid off in full in January 2012. Additionally, a $10.3 million loan to an information technology firm was returned to accrual status in the second quarter of 2012. The most significant loans placed in nonperforming status during 2012, include $6.5 million to a western Pennsylvania in-patient health care facility, $4.9 million commercial real estate loan for student housing in western Pennsylvania, $4.6 million for a hotel resort syndication loan located in the state of Washington, $3.8 million for a commercial real estate loan to a nonprofit institution in Alabama, $2.8 million to a western Pennsylvania construction firm, and $2.5 million to a manufacturer of medical equipment in Pennsylvania. In addition to the aforementioned loans which were placed on nonaccrual status, a $3.3 million commercial real estate loan in western Pennsylvania was modified with a maturity extension and therefore was classified as a TDR. Also, impacting the balance of nonperforming loans at December 31, 2012, was the inclusion of $6.7 million in consumer loans which were 150 days or more past due. Of the consumer loans on nonaccrual status as of December 31, 2012, $6.5 million of the $6.7 million, were residential real estate loans. Unfunded commitments related to nonperforming loans were $4.6 million and $6.7 million at December 31, 2012 and 2011, respectively. After consideration of available collateral related to these commitments, an off balance sheet reserve of $0.2 million was established for these commitments at December 31, 2012 and 2011. Significant nonaccrual loans as of December 31, 2012 include the following;
| • |  | $19.1 million, the remaining portion of a $44.1 million unsecured loan to a western Pennsylvania real estate developer. This loan was originated in 2004 and was placed in nonaccrual status in the fourth quarter of 2009. A settlement plan with the borrower and three other lenders was reached in the fourth quarter of 2010 and resulted in an $8.0 million principal payment and a $15.4 million partial charge-off.
| • |  | $15.7 million commercial real estate loan for a real estate developer in eastern Pennsylvania. This loan was originated in 2007 and restructured in the fourth quarter of 2011 which resulted in a charge-off of $4.2 million. The most recent appraisal for the real estate collateral was completed in the third quarter of 2011, as the bank was expecting a fourth quarter external refinance of this loan.
| • |  | $6.5 million commercial real estate loan to an in-patient health care facility in western Pennsylvania. This loan was originated in 2008 and placed in nonaccrual status in September 2012. The most recent appraisal for the real estate collateral was completed in the fourth quarter of 2012.
| • |  | $4.9 million for a western Pennsylvania student housing complex. This loan was originated in 2008 and placed in nonaccrual status in December 2012. The most recent appraisal for the real estate collateral was completed in the fourth quarter of 2012.
| • |  | $4.6 million real estate secured loan to a hotel resort syndication in Washington. This loan was originated in 2007 and placed in nonaccrual status in December of 2012. The most recent appraisals for the real estate collateral were completed in the second quarter of 2012.
The following tables include the recorded investment and unpaid principal balance for impaired loans with the associated allowance amount, if applicable, as of December 31, 2012 and 2011. Also presented are the average recorded investment in impaired loans and the related amount of interest recognized while the loan was considered impaired for the years ended December 31, 2012, 2011 and 2010. Average balances are calculated based on month-end balances of the loans for the period reported.
|  | 2012 |
|  | Recorded Investment |  |  | Unpaid Principal Balance |  |  | Related Allowance |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
|  | (dollars in thousands) |
With no related allowance recorded: |  |  |  |
Commercial, financial, agricultural and other |  | $ | 8,080 |  |  | $ | 8,983 |  |  | $ | 0 |  |  | $ | 9,217 |  |  | $ | 173 |
Real estate construction |  |  | 8,491 |  |  |  | 35,555 |  |  |  | 0 |  |  |  | 11,912 |  |  |  | 0 |
Residential real estate |  |  | 7,928 |  |  |  | 8,401 |  |  |  | 0 |  |  |  | 8,114 |  |  |  | 72 |
Commercial real estate |  |  | 33,259 |  |  |  | 35,401 |  |  |  | 0 |  |  |  | 28,574 |  |  |  | 66 |
Loans to individuals |  |  | 256 |  |  |  | 256 |  |  |  | 0 |  |  |  | 103 |  |  |  | 2 |
Subtotal |  |  | 58,014 |  |  |  | 88,596 |  |  |  | 0 |  |  |  | 57,920 |  |  |  | 313 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other |  |  | 26,532 |  |  |  | 27,412 |  |  |  | 10,331 |  |  |  | 21,979 |  |  |  | 9 |
Real estate construction |  |  | 2,756 |  |  |  | 3,087 |  |  |  | 300 |  |  |  | 1,457 |  |  |  | 0 |
Residential real estate |  |  | 2,695 |  |  |  | 2,696 |  |  |  | 780 |  |  |  | 1,599 |  |  |  | 15 |
Commercial real estate |  |  | 17,558 |  |  |  | 17,896 |  |  |  | 6,367 |  |  |  | 5,024 |  |  |  | 32 |
Loans to individuals |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Subtotal |  |  | 49,541 |  |  |  | 51,091 |  |  |  | 17,778 |  |  |  | 30,059 |  |  |  | 56 |
Total |  | $ | 107,555 |  |  | $ | 139,687 |  |  | $ | 17,778 |  |  | $ | 87,979 |  |  | $ | 369 |
|  | 2011 |
|  | Recorded Investment |  |  | Unpaid Principal Balance |  |  | Related Allowance |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
|  | (dollars in thousands) |
With no related allowance recorded: |  |  |  |
Commercial, financial, agricultural and other |  | $ | 2,010 |  |  | $ | 3,418 |  |  | $ | 0 |  |  | $ | 3,887 |  |  | $ | 20 |
Real estate construction |  |  | 10,814 |  |  |  | 20,161 |  |  |  | 0 |  |  |  | 23,254 |  |  |  | 10 |
Residential real estate |  |  | 3,125 |  |  |  | 3,513 |  |  |  | 0 |  |  |  | 2,702 |  |  |  | 9 |
Commercial real estate |  |  | 36,777 |  |  |  | 41,974 |  |  |  | 0 |  |  |  | 35,817 |  |  |  | 799 |
Loans to individuals |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 10 |  |  |  | 0 |
Subtotal |  |  | 52,726 |  |  |  | 69,066 |  |  |  | 0 |  |  |  | 65,670 |  |  |  | 838 |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other |  |  | 34,056 |  |  |  | 34,341 |  |  |  | 9,069 |  |  |  | 30,456 |  |  |  | 152 |
Real estate construction |  |  | 6,298 |  |  |  | 21,402 |  |  |  | 2,960 |  |  |  | 14,465 |  |  |  | 0 |
Residential real estate |  |  | 955 |  |  |  | 955 |  |  |  | 93 |  |  |  | 615 |  |  |  | 7 |
Commercial real estate |  |  | 4,717 |  |  |  | 4,863 |  |  |  | 1,114 |  |  |  | 28,716 |  |  |  | 396 |
Loans to individuals |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Subtotal |  |  | 46,026 |  |  |  | 61,561 |  |  |  | 13,236 |  |  |  | 74,252 |  |  |  | 555 |
Total |  | $ | 98,752 |  |  | $ | 130,627 |  |  | $ | 13,236 |  |  | $ | 139,922 |  |  | $ | 1,393 |
|  | 2010 |
|  | Average Recorded Investment |  |  | Interest Income Recognized |
|  | (dollars in thousands) |
With no related allowance recorded: |  |  |  |
Commercial, financial, agricultural and other |  | $ | 6,051 |  |  | $ | 0 |
Real estate construction |  |  | 35,898 |  |  |  | 0 |
Residential real estate |  |  | 3,165 |  |  |  | 0 |
Commercial real estate |  |  | 24,198 |  |  |  | 12 |
Loans to individuals |  |  | 58 |  |  |  | 0 |
Subtotal |  |  | 69,370 |  |  |  | 12 |
With an allowance recorded: |  |  |  |  |  |  |  |
Commercial, financial, agricultural and other |  |  | 43,778 |  |  |  | 14 |
Real estate construction |  |  | 16,641 |  |  |  | 0 |
Residential real estate |  |  | 237 |  |  |  | 0 |
Commercial real estate |  |  | 10,711 |  |  |  | 4 |
Loans to individuals |  |  | 0 |  |  |  | 0 |
Subtotal |  |  | 71,367 |  |  |  | 18 |
Total |  | $ | 140,737 |  |  | $ | 30 |
Troubled debt restructured loans are those loans whose terms have been renegotiated to provide a reduction or deferral of principal or interest as a result of the financial difficulties experienced by the borrower, who could not obtain comparable terms from alternate financing sources. As a result of adopting the amendments in ASU 2011-02, all restructurings that occurred on or after January 1, 2011 were assessed for identification as troubled debt restructurings considering the new guidance. No additional troubled debt restructurings were identified for loans for which the allowance for credit losses would have previously been measured under a general allowance for credit losses methodology. The following table provides detail as to the total troubled debt restructured loans and total commitments outstanding on troubled debt restructured loans as of December 31:
|  | 2012 |  |  | 2011 |  |  | 2010 |
|  | (dollars in thousands) |
Troubled debt restructured loans |  |  |  |  |  |  |  |  |  |  |  |
Accrual status |  | $ | 13,037 |  |  | $ | 20,276 |  |  | $ | 1,336 |
Nonaccrual status |  |  | 50,979 |  |  |  | 44,841 |  |  |  | 31,410 |
Total |  | $ | 64,016 |  |  | $ | 65,117 |  |  | $ | 32,746 |
Commitments |  |  |  |  |  |  |  |  |  |  |  |
Letters of credit |  | $ | 1,574 |  |  | $ | 12,580 |  |  | $ | 11,321 |
Unused lines of credit |  |  | 0 |  |  |  | 42 |  |  |  | 1,095 |
Total |  | $ | 1,574 |  |  | $ | 12,622 |  |  | $ | 12,416 |
During, 2012, a $2.8 million nonaccrual loan to a water treatment plant and a $3.7 million accruing loan to a gas well servicing operation were each restructured with a twelve month principal forbearance. The nonaccrual loan is fully reserved for while the accruing loan is secured by company assets with no reserve allocation. These loans are part of a $17.0 million commercial loan relationship with a shallow gas well operator whose business has been impacted by the sharp decline in natural gas prices due to the success of Marcellus deep well drilling. In addition to these two loans, other loans in this relationship include loans to a related exploration and production company and loans to the principal which are secured by real estate and investment securities. Also, in 2012 a $3.3 million commercial real estate loan was restructured with a six month maturity extension. This loan has remained on accruing status and the collateral shortfall is fully reserved. During 2012, all decreases in balances between the pre-modification and post-modification balance are due to customer payments. During 2011, a $2.7 million charge-off was recorded in relation to the transfer to held for sale of one of the loans included in commercial real estate in the table below. The sale of this loan was completed in 2012. Three commercial real estate loans, totaling $10.2 million, were classified as troubled debt restructured loans during 2011 and subsequently paid off prior to December 31, 2011. In addition, $5.6 million was charged-off in the restructuring of one relationship modified during the fourth quarter of 2011. As December 31, 2012, the remaining balance of the loans included in this relationship is $17.4 million. The remainder of changes in loan balances for 2011 between the pre-modification balance and the post-modification balance is due to customer payments. During 2010, a $15.4 million charge-off was recorded on a loan to a Pennsylvania real estate developer. The remaining changes between pre-modification balances and post-modification balances during 2010 are due to customer payments. The outstanding commitments as of December 31, 2011 and 2010 were primarily committed to one loan relationship that paid off in full in January 2012. The following tables provide detail, including specific reserve and reasons for modification, related to loans identified as troubled debt restructurings during the years ending December 31:
|  | 2012 |
|  |  |  |  | Reason for Modification |  |  |  |  |  |  |  |  |  |
|  | Number of Contracts |  |  | Extend Maturity |  |  | Modify Rate |  |  | Modify Payments |  |  | Other |  |  | Total Pre-Modification Outstanding Recorded Investment |  |  | Post- Modification Outstanding Recorded Investment |  |  | Specific Reserve |
|  | (dollars in thousands) |
Commercial, financial, agricultural and other |  |  | 12 |  |  | $ | 1,599 |  |  | $ | 187 |  |  | $ | 9,476 |  |  | $ | 0 |  |  | $ | 11,262 |  |  | $ | 11,335 |  |  | $ | 4,237 |
Real estate construction |  |  | 2 |  |  |  | 1,697 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 1,697 |  |  |  | 2,133 |  |  |  | 200 |
Residential real estate |  |  | 25 |  |  |  | 200 |  |  |  | 132 |  |  |  | 697 |  |  |  | 48 |  |  |  | 1,077 |  |  |  | 973 |  |  |  | 69 |
Commercial real estate |  |  | 4 |  |  |  | 3,280 |  |  |  | 4,308 |  |  |  | 71 |  |  |  | 0 |  |  |  | 7,659 |  |  |  | 7,607 |  |  |  | 409 |
Loans to individuals |  |  | 17 |  |  |  | 0 |  |  |  | 97 |  |  |  | 88 |  |  |  | 6 |  |  |  | 191 |  |  |  | 173 |  |  |  | 0 |
Total |  |  | 60 |  |  | $ | 6,776 |  |  | $ | 4,724 |  |  | $ | 10,332 |  |  | $ | 54 |  |  | $ | 21,886 |  |  | $ | 22,221 |  |  | $ | 4,915 |
|  | 2011 |
|  |  |  |  | Reason for Modification |  |  |  |  |  |  |  |  |  |
|  | Number of Contracts |  |  | Extend Maturity |  |  | Modify Rate |  |  | Modify Payments |  |  | Total Pre-Modification Outstanding Recorded Investment |  |  | Post- Modification Outstanding Recorded Investment |  |  | Specific Reserve |
|  | (dollars in thousands) |
Commercial, financial, agricultural and other |  |  | 13 |  |  | $ | 100 |  |  | $ | 475 |  |  | $ | 2,218 |  |  | $ | 2,793 |  |  | $ | 2,749 |  |  | $ | 743 |
Real estate construction |  |  | 6 |  |  |  | 2,554 |  |  |  | 86 |  |  |  | 0 |  |  |  | 2,640 |  |  |  | 2,852 |  |  |  | 0 |
Residential real estate |  |  | 10 |  |  |  | 0 |  |  |  | 515 |  |  |  | 601 |  |  |  | 1,116 |  |  |  | 1,100 |  |  |  | 65 |
Commercial real estate |  |  | 22 |  |  |  | 17,202 |  |  |  | 24,226 |  |  |  | 2,311 |  |  |  | 43,739 |  |  |  | 25,292 |  |  |  | 507 |
Total |  |  | 51 |  |  | $ | 19,856 |  |  | $ | 25,302 |  |  | $ | 5,130 |  |  | $ | 50,288 |  |  | $ | 31,993 |  |  | $ | 1,315 |
|  | 2010 |
|  |  |  |  | Reason for Modification |  |  |  |  |  |  |  |  |  |
|  | Number of Contracts |  |  | Extend Maturity |  |  | Modify Rate |  |  | Modify Payments |  |  | Total Pre-Modification Outstanding Recorded Investment |  |  | Post- Modification Outstanding Recorded Investment |  |  | Specific Reserve |
|  | (dollars in thousands) |
Commercial, financial, agricultural and other |  |  | 7 |  |  | $ | 250 |  |  | $ | 105 |  |  | $ | 36,591 |  |  | $ | 36,946 |  |  | $ | 21,180 |  |  | $ | 4,972 |
Real estate construction |  |  | 2 |  |  |  | 109 |  |  |  | 2,070 |  |  |  | 0 |  |  |  | 2,179 |  |  |  | 1,051 |  |  |  | 0 |
Residential real estate |  |  | 2 |  |  |  | 0 |  |  |  | 13 |  |  |  | 57 |  |  |  | 70 |  |  |  | 67 |  |  |  | 0 |
Commercial real estate |  |  | 4 |  |  |  | 0 |  |  |  | 10,685 |  |  |  | 241 |  |  |  | 10,926 |  |  |  | 9,870 |  |  |  | 3 |
Total |  |  | 15 |  |  | $ | 359 |  |  | $ | 12,873 |  |  | $ | 36,889 |  |  | $ | 50,121 |  |  | $ | 32,168 |  |  | $ | 4,975 |
The troubled debt restructurings included in the above tables are also included in the impaired loan tables provided earlier in this footnote. Loans defined as modified due to a change in rate include loans that were modified for a change in rate as well as a reamortization of the principal and an extension of the maturity. For the years ended December 31, 2012, 2011 and 2010, $4.7 million, $25.2 million and $0.1 million, respectively, of total rate modifications represent loans with modifications to the rate as well as payment due to reamortization. A troubled debt restructuring is considered to be in default when a restructured loan is 90 days or more past due. As of December 31, 2012, there were no loans restructured within the preceding twelve months which were considered to be in default. As of December 31, 2011, a $4.1 million commercial real estate loan, restructured during the first quarter of 2011 was considered to be in default. As of December 31, 2011, this loan was transferred to held for sale and the sale was completed in 2012. As of December 31, 2010, there were no loans restructured within the preceding twelve months which were considered to be in default. The following tables provide detail related to the allowance for credit losses for the years ended December 31:
|  | 2012 |
|  | Commercial, financial, agricultural and other |  |  | Real estate construction |  |  | Residential real estate |  |  | Commercial real estate |  |  | Loans to individuals |  |  | Unallocated |  |  | Total |
|  | (dollars in thousands) |
Allowance for credit losses: |  |  |  |
Beginning Balance |  | $ | 18,200 |  |  | $ | 6,756 |  |  | $ | 8,237 |  |  | $ | 18,961 |  |  | $ | 4,244 |  |  | $ | 4,836 |  |  | $ | 61,234 |
Charge-offs |  |  | (5,207 | ) |  |  | (3,601 | ) |  |  | (3,828 | ) |  |  | (851 | ) |  |  | (3,482 | ) |  |  | 0 |  |  |  | (16,969 | )
Recoveries |  |  | 443 |  |  |  | 582 |  |  |  | 422 |  |  |  | 410 |  |  |  | 521 |  |  |  | 0 |  |  |  | 2,378 |
Provision |  |  | 6,416 |  |  |  | 5,191 |  |  |  | 1,077 |  |  |  | 3,921 |  |  |  | 2,849 |  |  |  | 1,090 |  |  |  | 20,544 |
Ending Balance |  | $ | 19,852 |  |  | $ | 8,928 |  |  | $ | 5,908 |  |  | $ | 22,441 |  |  | $ | 4,132 |  |  | $ | 5,926 |  |  | $ | 67,187 |
Ending balance: individually evaluated for impaired |  | $ | 10,331 |  |  | $ | 300 |  |  | $ | 780 |  |  | $ | 6,367 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 17,778 |
Ending balance: collectively evaluated for impaired |  |  | 9,521 |  |  |  | 8,628 |  |  |  | 5,128 |  |  |  | 16,074 |  |  |  | 4,132 |  |  |  | 5,926 |  |  |  | 49,409 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  |  | 1,019,822 |  |  |  | 87,438 |  |  |  | 1,241,565 |  |  |  | 1,273,661 |  |  |  | 582,218 |  |  |  |  |  |  |  | 4,204,704 |
Ending balance: individually evaluated for impaired |  |  | 33,443 |  |  |  | 11,177 |  |  |  | 6,444 |  |  |  | 49,123 |  |  |  | 0 |  |  |  |  |  |  |  | 100,187 |
Ending balance: collectively evaluated for impaired |  |  | 986,379 |  |  |  | 76,261 |  |  |  | 1,235,121 |  |  |  | 1,224,538 |  |  |  | 582,218 |  |  |  |  |  |  |  | 4,104,517 |
|  | 2011 |
|  | Commercial, financial, agricultural and other |  |  | Real estate construction |  |  | Residential real estate |  |  | Commercial real estate |  |  | Loans to individuals |  |  | Unallocated |  |  | Total |
|  | (dollars in thousands) |
Allowance for credit losses: |  |  |  |
Beginning Balance |  | $ | 21,700 |  |  | $ | 18,002 |  |  | $ | 5,454 |  |  | $ | 16,913 |  |  | $ | 4,215 |  |  | $ | 4,945 |  |  | $ | 71,229 |
Charge-offs |  |  | (7,114 | ) |  |  | (28,886 | ) |  |  | (4,107 | ) |  |  | (24,861 | ) |  |  | (3,325 | ) |  |  | 0 |  |  |  | (68,293 | )
Recoveries |  |  | 473 |  |  |  | 955 |  |  |  | 132 |  |  |  | 349 |  |  |  | 573 |  |  |  | 0 |  |  |  | 2,482 |
Provision |  |  | 3,141 |  |  |  | 16,685 |  |  |  | 6,758 |  |  |  | 26,560 |  |  |  | 2,781 |  |  |  | (109 | ) |  |  | 55,816 |
Ending Balance |  | $ | 18,200 |  |  | $ | 6,756 |  |  | $ | 8,237 |  |  | $ | 18,961 |  |  | $ | 4,244 |  |  | $ | 4,836 |  |  | $ | 61,234 |
Ending balance: individually evaluated for impaired |  | $ | 9,069 |  |  | $ | 2,960 |  |  | $ | 93 |  |  | $ | 1,114 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 13,236 |
Ending balance: collectively evaluated for impaired |  |  | 9,131 |  |  |  | 3,796 |  |  |  | 8,144 |  |  |  | 17,847 |  |  |  | 4,244 |  |  |  | 4,836 |  |  |  | 47,998 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  |  | 996,739 |  |  |  | 76,564 |  |  |  | 1,137,059 |  |  |  | 1,267,432 |  |  |  | 565,849 |  |  |  |  |  |  |  | 4,043,643 |
Ending balance: individually evaluated for impaired |  |  | 37,639 |  |  |  | 14,667 |  |  |  | 2,606 |  |  |  | 39,832 |  |  |  | 0 |  |  |  |  |  |  |  | 94,744 |
Ending balance: collectively evaluated for impaired |  |  | 959,100 |  |  |  | 61,897 |  |  |  | 1,134,453 |  |  |  | 1,227,600 |  |  |  | 565,849 |  |  |  |  |  |  |  | 3,948,899 |
|  | 2010 |
|  | Commercial, financial, agricultural and other |  |  | Real estate construction |  |  | Residential real estate |  |  | Commercial real estate |  |  | Loans to individuals |  |  | Unallocated |  |  | Total |
|  | (dollars in thousands) |
Allowance for credit losses: |  |  |  |
Beginning Balance |  | $ | 31,369 |  |  | $ | 18,224 |  |  | $ | 5,847 |  |  | $ | 17,526 |  |  | $ | 4,731 |  |  | $ | 3,942 |  |  | $ | 81,639 |
Charge-offs |  |  | (22,293 | ) |  |  | (41,483 | ) |  |  | (5,226 | ) |  |  | (2,466 | ) |  |  | (3,841 | ) |  |  | 0 |  |  |  | (75,309 | )
Recoveries |  |  | 2,409 |  |  |  | 0 |  |  |  | 252 |  |  |  | 163 |  |  |  | 523 |  |  |  | 0 |  |  |  | 3,347 |
Provision |  |  | 10,215 |  |  |  | 41,261 |  |  |  | 4,581 |  |  |  | 1,690 |  |  |  | 2,802 |  |  |  | 1,003 |  |  |  | 61,552 |
Ending Balance |  | $ | 21,700 |  |  | $ | 18,002 |  |  | $ | 5,454 |  |  | $ | 16,913 |  |  | $ | 4,215 |  |  | $ | 4,945 |  |  | $ | 71,229 |
Ending balance: individually evaluated for impaired |  | $ | 6,709 |  |  | $ | 11,855 |  |  | $ | 56 |  |  | $ | 5,287 |  |  | $ | 0 |  |  | $ | 0 |  |  | $ | 23,907 |
Ending balance: collectively evaluated for impaired |  |  | 14,991 |  |  |  | 6,147 |  |  |  | 5,398 |  |  |  | 11,626 |  |  |  | 4,215 |  |  |  | 4,945 |  |  |  | 47,322 |
Loans: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance |  |  | 913,814 |  |  |  | 261,482 |  |  |  | 1,127,273 |  |  |  | 1,354,074 |  |  |  | 561,440 |  |  |  |  |  |  |  | 4,218,083 |
Ending balance: individually evaluated for impaired |  |  | 25,694 |  |  |  | 44,485 |  |  |  | 832 |  |  |  | 42,863 |  |  |  | 0 |  |  |  |  |  |  |  | 113,874 |
Ending balance: collectively evaluated for impaired |  |  | 888,120 |  |  |  | 216,997 |  |  |  | 1,126,441 |  |  |  | 1,311,211 |  |  |  | 561,440 |  |  |  |  |  |  |  | 4,104,209 |

X
- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(k)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5074-111524 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5162-111524 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.3,4) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph k -Article 4 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 01-6 -Paragraph 13 -Subparagraph d -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=7512638&loc=d3e5066-111524 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 + Details
Name: | us-gaap_LoansNotesTradeAndOtherReceivablesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration