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Loans | 12 Months Ended
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Dec. 31, 2011
Loans and Allowance for Loan Losses and Credit Quality [Abstract] |
Loans |
Note 4. | Loans
Loans, net of unearned income, consisted of the following at December 31, 2011 and 2010:
(Amounts in thousands) |  | 2011 |  |  | 2010 |
Commercial loans |  |  |  |  |  |  |  |
Construction — commercial |  | $ | 35,482 |  |  | $ | 42,694 |
Land development |  |  | 2,902 |  |  |  | 16,650 |
Other land loans |  |  | 23,384 |  |  |  | 24,468 |
Commercial and industrial |  |  | 91,939 |  |  |  | 94,123 |
Multi-family residential |  |  | 77,050 |  |  |  | 67,824 |
Single family non-owner occupied |  |  | 106,743 |  |  |  | 104,960 |
Non-farm, non-residential |  |  | 336,005 |  |  |  | 351,904 |
Agricultural |  |  | 1,374 |  |  |  | 1,342 |
Farmland |  |  | 37,161 |  |  |  | 36,954 |
Total commercial loans |  |  | 712,040 |  |  |  | 740,919 |
Consumer real estate loans |  |  |  |  |  |  |  |
Home equity lines |  |  | 111,387 |  |  |  | 111,620 |
Single family owner occupied |  |  | 473,067 |  |  |  | 444,197 |
Owner occupied construction |  |  | 19,577 |  |  |  | 18,349 |
Total consumer real estate loans |  |  | 604,031 |  |  |  | 574,166 |
Consumer and other loans |  |  |  |  |  |  |  |
Consumer loans |  |  | 67,129 |  |  |  | 63,475 |
Other |  |  | 12,867 |  |  |  | 7,646 |
Total consumer and other loans |  |  | 79,996 |  |  |  | 71,121 |
Loans held for investment, net of unearned income |  | $ | 1,396,067 |  |  | $ | 1,386,206 |
Loans held for sale |  | $ | 5,820 |  |  | $ | 4,694 |
Acquired, Impaired Loans Loans acquired in a business combination are recorded at estimated fair value on their purchase date. Under applicable accounting standards, it is not appropriate to carryover a valuation for allowance for loan losses at the time of acquisition when the acquired loans have evidence of credit deterioration. Evidence of credit quality deterioration as of the purchase date may include measures such as credit scores, decline in collateral value, past due and non-accrual status. For acquired, impaired loans the difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable difference, which is included in the carrying amount of the loans. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in cash flows result in a reversal of the provision for loan losses to the extent of prior charges or a reversal of the nonaccretable difference with a positive impact on interest income prospectively. Further, any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized in interest income over the remaining life of the loan when there is a reasonable expectation about the amount and timing of such cash flows. Acquired performing loans are recorded at fair value, including a credit component. The fair value adjustment is accreted as an adjustment to yield over the estimated lives of the loans. There is no allowance for loan losses established at the acquisition date for acquired performing loans. A provision for loan losses is recorded for any credit deterioration in these loans subsequent to acquisition. The carrying amount of acquired loans at July 31, 2009, consisted of loans with credit deterioration, or impaired loans, and loans with no credit deterioration, or performing loans. The following table presents the acquired performing loans receivable at the acquisition date of July 31, 2009. The amounts include principal only and do not reflect accrued interest as of the date of the acquisition or beyond.
|  | July 31, 2009 |
(Amounts in thousands) |  |  |
Contractually required principal payments to balance sheet received |  | $ | 125,366 |
Fair value of adjustment for credit, interest rate, and liquidity |  |  | (472 | )
Fair value of loans receivable, with no credit deterioration |  | $ | 124,894 |
The following table presents information regarding acquired, impaired loans. The Company has estimated the cash flows to be collected on the loans and discounted those cash flows at a market rate of interest.
|  | TriStone |  |  | Other |  |  | Total |
(Amounts in thousands) |  |  |  |  |  |  |  |  |
Balance, January 1, 2010 |  | $ | 3,838 |  |  | $ | 4,196 |  |  | $ | 8,034 |
Principal payments received |  |  | (1,034 | ) |  |  | (2,900 | ) |  |  | (3,934 | )
Accretion |  |  | 61 |  |  |  | — |  |  |  | 61 |
Other |  |  | 448 |  |  |  | — |  |  |  | 448 |
Charge-offs |  |  | (499 | ) |  |  | (889 | ) |  |  | (1,388 | )
Balance, December 31, 2010 |  | $ | 2,814 |  |  | $ | 407 |  |  | $ | 3,221 |
Balance, January 1, 2011 |  | $ | 2,814 |  |  | $ | 407 |  |  | $ | 3,221 |
Principal payments received |  |  | (513 | ) |  |  | — |  |  |  | (513 | )
Accretion |  |  | 174 |  |  |  | — |  |  |  | 174 |
Other |  |  | 4 |  |  |  | — |  |  |  | 4 |
Charge-offs |  |  | — |  |  |  | — |  |  |  | — |
Balance, December 31, 2011 |  | $ | 2,479 |  |  | $ | 407 |  |  | $ | 2,886 |
At December 31, 2011 and 2010, the remaining balance of the accretable difference totaled $919 thousand and $944 thousand, respectively. Off-Balance Sheet Financial Instruments The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and financial guarantees. These instruments involve, to varying degrees, elements of credit and interest rate risk beyond the amount recognized on the balance sheet. The contractual amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit and standby letters of credit and financial guarantees written is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments. Commitments to extend credit are agreements to lend to a customer as long as there is not a violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counterparties. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income producing commercial properties. Standby letters of credit and written financial guarantees are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. To the extent deemed necessary, collateral of varying types and amounts is held to secure customer performance under certain of those letters of credit outstanding. Financial instruments whose contract amounts represent credit risk are commitments to extend credit (including availability of lines of credit) of $194.27 million and standby letters of credit and financial guarantees written of $2.90 million at December 31, 2011. Additionally, the Company had gross notional amounts of outstanding commitments to lend related to secondary market mortgage loans of $9.15 million at December 31, 2011. Related Party Loans In the normal course of business, the Company’s subsidiary bank has made loans to directors and executive officers of the Company, its subsidiaries, and to affiliates of such directors and officers (collectively referred to as “related parties”). All loans and commitments made to such officers and directors and to companies in which they are officers, or have significant ownership interest, have been made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other persons not related to the Company. The aggregate dollar amount of loans to related parties totaled $18.41 million and $12.46 million at December 31, 2011 and 2010, respectively. During 2011, $10.08 million in new loans and increases were made and repayments on such loans to related parties totaled $4.13 million. There were no changes to related party loans resulting from changes in the composition of the Company’s subsidiary board members and executive officers. Overdrafts At December 31, 2011 and 2010, customer overdrafts totaling $1.48 million and $1.46 million, respectively, were reclassified as loans.

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- Definition The entire disclosure for claims held for amounts due a company. Examples include trade accounts receivables, notes receivables, loans receivables. + References Reference 1: 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=6965416&loc=d3e5066-111524 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 03 -Paragraph 7 -Article 9 Reference 3: 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 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=6965416&loc=d3e5162-111524 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 3, 4 -Article 5 Reference 6: 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 7: 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 8: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 4 -Section 08 -Paragraph k Reference 9: 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=6965416&loc=d3e5074-111524 + Details
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