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Credit Quality | 12 Months Ended
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Dec. 31, 2013
Credit Quality |
Note 5. | Credit Quality
The Company identifies loans for potential impairment through a variety of means, including, but not limited to, ongoing loan review, renewal processes, delinquency data, market communications, and public information. If the Company determines that it is probable all principal and interest amounts contractually due will not be collected, the loan is generally deemed to be impaired. The following tables present the recorded investment and related information for loans considered to be impaired, excluding PCI loans, as of the periods indicated:
|  | December 31, 2013 |
(Amounts in thousands) |  | Recorded Investment |  |  | Average Annual Recorded Investment |  |  | Unpaid Principal Balance |  |  | Related Allowance |
Impaired loans with no related allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | — |  |  | $ | 3,850 |  |  | $ | — |  |  | $ | — |
Commercial and industrial |  |  | 292 |  |  |  | 698 |  |  |  | 292 |  |  |  | — |
Multi-family residential |  |  | — |  |  |  | 18 |  |  |  | — |  |  |  | — |
Single family non-owner occupied |  |  | 289 |  |  |  | 939 |  |  |  | 317 |  |  |  | — |
Non-farm, non-residential |  |  | 5,352 |  |  |  | 7,225 |  |  |  | 5,682 |  |  |  | — |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Farmland |  |  | 351 |  |  |  | 370 |  |  |  | 363 |  |  |  | — |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 257 |  |  |  | 454 |  |  |  | 264 |  |  |  | — |
Single family owner occupied |  |  | 2,006 |  |  |  | 2,156 |  |  |  | 2,414 |  |  |  | — |
Owner occupied construction |  |  | — |  |  |  | 15 |  |  |  | — |  |  |  | — |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | — |  |  |  | 3 |  |  |  | — |  |  |  | — |
Total impaired loans with no related allowance |  |  | 8,547 |  |  |  | 15,728 |  |  |  | 9,332 |  |  |  | — |
Impaired loans with a related allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | — |  |  | $ | 1,057 |  |  | $ | — |  |  | $ | — |
Commercial and industrial |  |  | 4,897 |  |  |  | 4,281 |  |  |  | 10,244 |  |  |  | 3,794 |
Multi-family residential |  |  | — |  |  |  | 94 |  |  |  | — |  |  |  | — |
Single family non-owner occupied |  |  | 375 |  |  |  | 892 |  |  |  | 375 |  |  |  | 47 |
Non-farm, non-residential |  |  | 600 |  |  |  | 1,494 |  |  |  | 600 |  |  |  | 114 |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Farmland |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 215 |  |  |  | 304 |  |  |  | 230 |  |  |  | 52 |
Single family owner occupied |  |  | 4,844 |  |  |  | 4,498 |  |  |  | 5,035 |  |  |  | 735 |
Owner occupied construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total impaired loans with a related allowance |  |  | 10,931 |  |  |  | 12,620 |  |  |  | 16,484 |  |  |  | 4,742 |
Total impaired loans |  | $ | 19,478 |  |  | $ | 28,348 |  |  | $ | 25,816 |  |  | $ | 4,742 |
|  | December 31, 2012 |
(Amounts in thousands) |  | Recorded Investment |  |  | Average Annual Recorded Investment |  |  | Unpaid Principal Balance |  |  | Related Allowance |
Impaired loans with no related allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 2,916 |  |  | $ | 935 |  |  | $ | 2,916 |  |  | $ | — |
Commercial and industrial |  |  | 284 |  |  |  | 320 |  |  |  | 284 |  |  |  | — |
Multi-family residential |  |  | — |  |  |  | 517 |  |  |  | — |  |  |  | — |
Single family non-owner occupied |  |  | 383 |  |  |  | 1,101 |  |  |  | 684 |  |  |  | — |
Non-farm, non-residential |  |  | 5,282 |  |  |  | 2,619 |  |  |  | 5,362 |  |  |  | — |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Farmland |  |  | — |  |  |  | 93 |  |  |  | — |  |  |  | — |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 276 |  |  |  | 370 |  |  |  | 277 |  |  |  | — |
Single family owner occupied |  |  | 277 |  |  |  | 4,441 |  |  |  | 383 |  |  |  | — |
Owner occupied construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |
Total impaired loans with no related allowance |  |  | 9,418 |  |  |  | 10,397 |  |  |  | 9,906 |  |  |  | — |
Impaired loans with a related allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  |  | — |  |  |  | 69 |  |  |  | — |  |  |  | — |
Commercial and industrial |  |  | 3,318 |  |  |  | 4,510 |  |  |  | 8,502 |  |  |  | 3,192 |
Multi-family residential |  |  | 378 |  |  |  | 143 |  |  |  | 397 |  |  |  | 18 |
Single family non-owner occupied |  |  | 2,411 |  |  |  | 2,484 |  |  |  | 2,460 |  |  |  | 996 |
Non-farm, non-residential |  |  | 2,781 |  |  |  | 5,820 |  |  |  | 2,958 |  |  |  | 358 |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Farmland |  |  | — |  |  |  | 93 |  |  |  | — |  |  |  | — |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 223 |  |  |  | 150 |  |  |  | 230 |  |  |  | 223 |
Single family owner occupied |  |  | 4,673 |  |  |  | 3,511 |  |  |  | 4,903 |  |  |  | 806 |
Owner occupied construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total impaired loans with a related allowance |  |  | 13,784 |  |  |  | 16,780 |  |  |  | 19,450 |  |  |  | 5,593 |
Total impaired loans |  | $ | 23,202 |  |  | $ | 27,177 |  |  | $ | 29,356 |  |  | $ | 5,593 |
The following table presents interest income recognized on impaired loans, excluding PCI loans, in the periods indicated:
|  | Year ended December 31, |
(Amounts in thousands) |  | 2013 |  |  | 2012 |  |  | 2011 |
Impaired loans with no related allowance: |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 294 |  |  | $ | 3 |  |  | $ | — |
Commercial and industrial |  |  | 17 |  |  |  | 17 |  |  |  | 4 |
Multi-family residential |  |  | 3 |  |  |  | 4 |  |  |  | 24 |
Single family non-owner occupied |  |  | 99 |  |  |  | 56 |  |  |  | 39 |
Non-farm, non-residential |  |  | 296 |  |  |  | 102 |  |  |  | 25 |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |
Farmland |  |  | 12 |  |  |  | — |  |  |  | — |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 25 |  |  |  | 28 |  |  |  | 15 |
Single family owner occupied |  |  | 70 |  |  |  | 113 |  |  |  | 43 |
Owner occupied construction |  |  | 5 |  |  |  | — |  |  |  | 3 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | — |  |  |  | — |  |  |  | 2 |
Total impaired loans with no related allowance |  |  | 821 |  |  |  | 323 |  |  |  | 155 |
Impaired loans with a related allowance: |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  |  | 117 |  |  |  | 1 |  |  |  | 9 |
Commercial and industrial |  |  | 18 |  |  |  | 948 |  |  |  | 21 |
Multi-family residential |  |  | 7 |  |  |  | 3 |  |  |  | — |
Single family non-owner occupied |  |  | 3 |  |  |  | 80 |  |  |  | 107 |
Non-farm, non-residential |  |  | 29 |  |  |  | 317 |  |  |  | 191 |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |
Farmland |  |  | — |  |  |  | — |  |  |  | — |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 12 |  |  |  | 1 |  |  |  | — |
Single family owner occupied |  |  | 54 |  |  |  | 103 |  |  |  | 164 |
Owner occupied construction |  |  | — |  |  |  | — |  |  |  | — |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | — |  |  |  | — |  |  |  | — |
Total impaired loans with a related allowance |  |  | 240 |  |  |  | 1,453 |  |  |  | 492 |
Total impaired loans |  | $ | 1,061 |  |  | $ | 1,776 |  |  | $ | 647 |
As of December 31, 2013, the Company determined that 4 of the 7 PCI loan pools were impaired. No impairment was recognized on loan pools before 2013. The following tables present balance and interest income related to the impaired loan pools as of the dates, and in the periods, indicated:
|  | December 31, |
(Amounts in thousands) |  | 2013 |  |  | 2012 |
Recorded investment |  | $ | 52,033 |  |  | $ | — |
Average annual recorded investment |  |  | 35,220 |  |  |  | — |
Unpaid principal balance |  |  | 69,320 |  |  |  | — |
Allowance for loan losses |  |  | 747 |  |  |  | — |
|  | Year ended December 31, |
(Amounts in thousands) |  | 2013 |  |  | 2012 |  |  | 2011 |
Interest income recognized |  | $ | 1,966 |  |  | $ | — |  |  | $ | — |
As part of the ongoing monitoring of the Company’s loan portfolio, management tracks certain credit quality indicators that include: trends related to the risk rating of commercial loans, the level of classified commercial loans, net charge-offs, nonperforming loans, and general economic conditions. The Company’s loan review function generally analyzes all commercial loan relationships greater than $3.0 million on an annual basis and at various times during the year. In addition, smaller commercial and retail loans are sampled for review during the year. Loan risk ratings may be upgraded or downgraded to reflect current information identified during the loan review process. The Company uses a risk grading matrix to assign a risk grade to each loan in its portfolio. The general characteristics of each risk grade are as follows:
| • |  | Pass – This grade is assigned to loans with acceptable credit quality and risk. The Company further segments this grade based on borrower characteristics that include: capital strength, earnings stability, liquidity leverage, and industry conditions.
| • |  | Special Mention – This grade is assigned to loans that require an above average degree of supervision and attention. These loans have the characteristics of an asset with acceptable credit quality and risk; however, adverse economic or financial conditions exist that create potential weaknesses deserving of management’s close attention. If potential weaknesses are not corrected, the prospect of repayment may worsen.
| • |  | Substandard – This grade is assigned to loans that have well defined weaknesses that may make payment default, or principal exposure, possible. In order to meet repayment terms, these loans will likely be dependent on collateral liquidation, secondary repayment sources, or events outside the normal course of business.
| • |  | Doubtful – This grade is assigned to loans on nonaccrual status. These loans have the weaknesses inherent in substandard loans; however, the weaknesses are so severe that collection or liquidation in full is extremely unlikely based on current facts, conditions, and values. Due to certain specific pending factors, the amount of loss cannot yet be determined.
| • |  | Loss – This grade is assigned to loans that will be charged off or charged down when payments, including the timing and value of payments, are determined to be uncertain. This risk grade does not imply that the asset has no recovery or salvage value, but simply means that it is not practical or desirable to defer writing off, either all or a portion of, the loan balance even though partial recovery may be realized in the future.
Losses on covered loans are generally reimbursable by the FDIC at the applicable loss share percentage, 80%; therefore, covered loans are disclosed separately in the following credit quality discussion. PCI loan pools are disaggregated and included in their applicable loan class in the following discussion. In addition, PCI loans are generally not classified as nonaccrual or nonperforming due to the accrual of interest income under the accretion method of accounting. The following tables present loans held for investment, by internal credit risk grade, as of the periods indicated:
|  | December 31, 2013 |
(Amounts in thousands) |  | Pass |  |  | Special Mention |  |  | Substandard |  |  | Doubtful |  |  | Loss |  |  | Total |
Non-covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 30,719 |  |  | $ | 1,094 |  |  | $ | 3,139 |  |  | $ | 303 |  |  | $ | — |  |  | $ | 35,255 |
Commercial and industrial |  |  | 87,589 |  |  |  | 1,056 |  |  |  | 2,919 |  |  |  | 3,891 |  |  |  | — |  |  |  | 95,455 |
Multi-family residential |  |  | 67,257 |  |  |  | 2,237 |  |  |  | 703 |  |  |  | — |  |  |  | — |  |  |  | 70,197 |
Single family non-owner occupied |  |  | 121,367 |  |  |  | 4,501 |  |  |  | 9,316 |  |  |  | 375 |  |  |  | — |  |  |  | 135,559 |
Non-farm, non-residential |  |  | 440,334 |  |  |  | 21,046 |  |  |  | 14,500 |  |  |  | 31 |  |  |  | — |  |  |  | 475,911 |
Agricultural |  |  | 2,306 |  |  |  | 8 |  |  |  | 10 |  |  |  | — |  |  |  | — |  |  |  | 2,324 |
Farmland |  |  | 27,421 |  |  |  | 1,721 |  |  |  | 3,472 |  |  |  | — |  |  |  | — |  |  |  | 32,614 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 107,411 |  |  |  | 1,355 |  |  |  | 2,789 |  |  |  | 215 |  |  |  | — |  |  |  | 111,770 |
Single family owner occupied |  |  | 460,166 |  |  |  | 8,170 |  |  |  | 27,507 |  |  |  | 169 |  |  |  | — |  |  |  | 496,012 |
Owner occupied construction |  |  | 28,242 |  |  |  | 261 |  |  |  | 200 |  |  |  | — |  |  |  | — |  |  |  | 28,703 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 69,973 |  |  |  | 864 |  |  |  | 472 |  |  |  | — |  |  |  | 4 |  |  |  | 71,313 |
Other |  |  | 3,918 |  |  |  | — |  |  |  | 8 |  |  |  | — |  |  |  | — |  |  |  | 3,926 |
Total non-covered loans |  |  | 1,446,703 |  |  |  | 42,313 |  |  |  | 65,035 |  |  |  | 4,984 |  |  |  | 4 |  |  |  | 1,559,039 |
Covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  |  | 9,722 |  |  |  | 1,378 |  |  |  | 4,714 |  |  |  | 51 |  |  |  | — |  |  |  | 15,865 |
Commercial and industrial |  |  | 2,865 |  |  |  | 247 |  |  |  | 189 |  |  |  | 24 |  |  |  | — |  |  |  | 3,325 |
Multi-family residential |  |  | 1,472 |  |  |  | — |  |  |  | 461 |  |  |  | — |  |  |  | — |  |  |  | 1,933 |
Single family non-owner occupied |  |  | 4,362 |  |  |  | 1,519 |  |  |  | 1,552 |  |  |  | 16 |  |  |  | — |  |  |  | 7,449 |
Non-farm, non-residential |  |  | 13,077 |  |  |  | 4,630 |  |  |  | 16,901 |  |  |  | 38 |  |  |  | — |  |  |  | 34,646 |
Agricultural |  |  | 164 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 164 |
Farmland |  |  | 572 |  |  |  | — |  |  |  | 301 |  |  |  | — |  |  |  | — |  |  |  | 873 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 66,797 |  |  |  | 1,138 |  |  |  | 1,269 |  |  |  | 2 |  |  |  | — |  |  |  | 69,206 |
Single family owner occupied |  |  | 10,832 |  |  |  | 148 |  |  |  | 5,939 |  |  |  | — |  |  |  | — |  |  |  | 16,919 |
Owner occupied construction |  |  | 198 |  |  |  | — |  |  |  | 986 |  |  |  | — |  |  |  | — |  |  |  | 1,184 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 118 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 118 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total covered loans |  |  | 110,179 |  |  |  | 9,060 |  |  |  | 32,312 |  |  |  | 131 |  |  |  | — |  |  |  | 151,682 |
Total loans |  | $ | 1,556,882 |  |  | $ | 51,373 |  |  | $ | 97,347 |  |  | $ | 5,115 |  |  | $ | 4 |  |  | $ | 1,710,721 |
|  | December 31, 2012 |
(Amounts in thousands) |  | Pass |  |  | Special Mention |  |  | Substandard |  |  | Doubtful |  |  | Loss |  |  | Total |
Non-covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 41,850 |  |  | $ | 1,497 |  |  | $ | 13,546 |  |  | $ | 541 |  |  | $ | — |  |  | $ | 57,434 |
Commercial and industrial |  |  | 77,573 |  |  |  | 2,506 |  |  |  | 4,821 |  |  |  | 3,838 |  |  |  | — |  |  |  | 88,738 |
Multi-family residential |  |  | 60,161 |  |  |  | 4,043 |  |  |  | 1,490 |  |  |  | — |  |  |  | — |  |  |  | 65,694 |
Single family non-owner occupied |  |  | 112,562 |  |  |  | 5,938 |  |  |  | 16,092 |  |  |  | 1,320 |  |  |  | — |  |  |  | 135,912 |
Non-farm, non-residential |  |  | 399,907 |  |  |  | 15,975 |  |  |  | 32,808 |  |  |  | 120 |  |  |  | — |  |  |  | 448,810 |
Agricultural |  |  | 1,657 |  |  |  | 19 |  |  |  | 33 |  |  |  | — |  |  |  | — |  |  |  | 1,709 |
Farmland |  |  | 28,887 |  |  |  | 2,262 |  |  |  | 3,421 |  |  |  | — |  |  |  | — |  |  |  | 34,570 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 104,750 |  |  |  | 2,739 |  |  |  | 3,592 |  |  |  | — |  |  |  | — |  |  |  | 111,081 |
Single family owner occupied |  |  | 436,587 |  |  |  | 9,599 |  |  |  | 27,319 |  |  |  | — |  |  |  | 42 |  |  |  | 473,547 |
Owner occupied construction |  |  | 15,841 |  |  |  | 382 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 16,223 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 76,787 |  |  |  | 867 |  |  |  | 501 |  |  |  | 8 |  |  |  | — |  |  |  | 78,163 |
Other |  |  | 5,657 |  |  |  | 8 |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 5,666 |
Total non-covered loans |  |  | 1,362,219 |  |  |  | 45,835 |  |  |  | 103,624 |  |  |  | 5,827 |  |  |  | 42 |  |  |  | 1,517,547 |
Covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  |  | 6,463 |  |  |  | 2,120 |  |  |  | 17,834 |  |  |  | 178 |  |  |  | — |  |  |  | 26,595 |
Commercial and industrial |  |  | 6,225 |  |  |  | 445 |  |  |  | 197 |  |  |  | 81 |  |  |  | — |  |  |  | 6,948 |
Multi-family residential |  |  | 1,962 |  |  |  | — |  |  |  | 649 |  |  |  | — |  |  |  | — |  |  |  | 2,611 |
Single family non-owner occupied |  |  | 6,065 |  |  |  | 2,223 |  |  |  | 3,015 |  |  |  | 125 |  |  |  | — |  |  |  | 11,428 |
Non-farm, non-residential |  |  | 23,855 |  |  |  | 5,477 |  |  |  | 19,189 |  |  |  | 44 |  |  |  | — |  |  |  | 48,565 |
Agricultural |  |  | 143 |  |  |  | — |  |  |  | 1 |  |  |  | — |  |  |  | — |  |  |  | 144 |
Farmland |  |  | 935 |  |  |  | — |  |  |  | 156 |  |  |  | — |  |  |  | — |  |  |  | 1,091 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 16,323 |  |  |  | 11,981 |  |  |  | 53,116 |  |  |  | 25 |  |  |  | — |  |  |  | 81,445 |
Single family owner occupied |  |  | 16,011 |  |  |  | 927 |  |  |  | 5,786 |  |  |  | 237 |  |  |  | — |  |  |  | 22,961 |
Owner occupied construction |  |  | 484 |  |  |  | — |  |  |  | 1,160 |  |  |  | — |  |  |  | — |  |  |  | 1,644 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 2,987 |  |  |  | 562 |  |  |  | 125 |  |  |  | — |  |  |  | — |  |  |  | 3,674 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total covered loans |  |  | 81,453 |  |  |  | 23,735 |  |  |  | 101,228 |  |  |  | 690 |  |  |  | — |  |  |  | 207,106 |
Total loans |  | $ | 1,443,672 |  |  | $ | 69,570 |  |  | $ | 204,852 |  |  | $ | 6,517 |  |  | $ | 42 |  |  | $ | 1,724,653 |
As of December 31, 2013, non-covered special mention and classified loans decreased $42.99 million, or 27.68%, compared to December 31, 2012, which was primarily due to loan workout activity across the portfolio coupled with continued credit improvement. Credit quality also significantly improved in the covered loan portfolio with special mention and classified loans declining $84.15 million, or 66.97%, as of December 31, 2013, compared to December 31, 2012. The following table presents nonaccrual loans, by loan class, as of the dates indicated:
|  | December 31, |
|  | 2013 |  |  | 2012 |
(Amounts in thousands) |  | Non-covered |  |  | Covered |  |  | Total |  |  | Non-covered |  |  | Covered |  |  | Total |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 1,187 |  |  | $ | 761 |  |  | $ | 1,948 |  |  | $ | 405 |  |  | $ | 1,990 |  |  | $ | 2,395 |
Commercial and industrial |  |  | 5,341 |  |  |  | 92 |  |  |  | 5,433 |  |  |  | 3,912 |  |  |  | 35 |  |  |  | 3,947 |
Multi-family residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 378 |  |  |  | — |  |  |  | 378 |
Single family non-owner occupied |  |  | 1,966 |  |  |  | 222 |  |  |  | 2,188 |  |  |  | 7,071 |  |  |  | 21 |  |  |  | 7,092 |
Non-farm, non-residential |  |  | 2,685 |  |  |  | — |  |  |  | 2,685 |  |  |  | 5,938 |  |  |  | 951 |  |  |  | 6,889 |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 2 |
Farmland |  |  | 441 |  |  |  | 301 |  |  |  | 742 |  |  |  | — |  |  |  | — |  |  |  | — |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 765 |  |  |  | 232 |  |  |  | 997 |  |  |  | 872 |  |  |  | 436 |  |  |  | 1,308 |
Single family owner occupied |  |  | 6,567 |  |  |  | 1,555 |  |  |  | 8,122 |  |  |  | 5,219 |  |  |  | 831 |  |  |  | 6,050 |
Owner occupied construction |  |  | — |  |  |  | 190 |  |  |  | 190 |  |  |  | — |  |  |  | 59 |  |  |  | 59 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 201 |  |  |  | — |  |  |  | 201 |  |  |  | 126 |  |  |  | — |  |  |  | 126 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 19,153 |  |  |  | 3,353 |  |  |  | 22,506 |  |  |  | 23,923 |  |  |  | 4,323 |  |  |  | 28,246 |
Purchased impaired loans |  |  | 8 |  |  |  | — |  |  |  | 8 |  |  |  | 8 |  |  |  | — |  |  |  | 8 |
Total nonaccrual loans |  | $ | 19,161 |  |  | $ | 3,353 |  |  | $ | 22,514 |  |  | $ | 23,931 |  |  | $ | 4,323 |  |  | $ | 28,254 |
The following tables present the aging of past due loans, by loan class, as of the dates indicated. Nonaccrual loans 30 days or more past due are included in the applicable delinquency category. There were no non-covered accruing loans contractually past due 90 days or more as of December 31, 2013, or December 31, 2012. Accruing loans contractually past due 90 days or more were $86 thousand as of December 31, 2013, which was attributed to covered home equity lines. There were no accruing loans contractually past due 90 days or more as of December 31, 2012.
|  | December 31, 2013 |
(Amounts in thousands) |  | 30 - 59 Days Past Due |  |  | 60 - 89 Days Past Due |  |  | 90+ Days Past Due |  |  | Total Past Due |  |  | Current Loans |  |  | Total Loans |
Non-covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 118 |  |  | $ | 10 |  |  | $ | 532 |  |  | $ | 660 |  |  | $ | 34,595 |  |  | $ | 35,255 |
Commercial and industrial |  |  | 93 |  |  |  | 39 |  |  |  | 2,631 |  |  |  | 2,763 |  |  |  | 92,692 |  |  |  | 95,455 |
Multi-family residential |  |  | 115 |  |  |  | — |  |  |  | — |  |  |  | 115 |  |  |  | 70,082 |  |  |  | 70,197 |
Single family non-owner occupied |  |  | 611 |  |  |  | 554 |  |  |  | 1,203 |  |  |  | 2,368 |  |  |  | 133,191 |  |  |  | 135,559 |
Non-farm, non-residential |  |  | 1,014 |  |  |  | 318 |  |  |  | 1,770 |  |  |  | 3,102 |  |  |  | 472,809 |  |  |  | 475,911 |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,324 |  |  |  | 2,324 |
Farmland |  |  | 245 |  |  |  | — |  |  |  | — |  |  |  | 245 |  |  |  | 32,369 |  |  |  | 32,614 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 289 |  |  |  | 317 |  |  |  | 442 |  |  |  | 1,048 |  |  |  | 110,722 |  |  |  | 111,770 |
Single family owner occupied |  |  | 7,428 |  |  |  | 1,228 |  |  |  | 145 |  |  |  | 8,801 |  |  |  | 487,211 |  |  |  | 496,012 |
Owner occupied construction |  |  | 205 |  |  |  | — |  |  |  | 2,284 |  |  |  | 2,489 |  |  |  | 26,214 |  |  |  | 28,703 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 811 |  |  |  | 86 |  |  |  | 105 |  |  |  | 1,002 |  |  |  | 70,311 |  |  |  | 71,313 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,926 |  |  |  | 3,926 |
Total non-covered loans |  |  | 10,929 |  |  |  | 2,552 |  |  |  | 9,112 |  |  |  | 22,593 |  |  |  | 1,536,446 |  |  |  | 1,559,039 |
Covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  |  | 479 |  |  |  | — |  |  |  | 453 |  |  |  | 932 |  |  |  | 14,933 |  |  |  | 15,865 |
Commercial and industrial |  |  | 5 |  |  |  | 44 |  |  |  | 92 |  |  |  | 141 |  |  |  | 3,184 |  |  |  | 3,325 |
Multi-family residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,933 |  |  |  | 1,933 |
Single family non-owner occupied |  |  | — |  |  |  | — |  |  |  | 184 |  |  |  | 184 |  |  |  | 7,265 |  |  |  | 7,449 |
Non-farm, non-residential |  |  | 209 |  |  |  | — |  |  |  | — |  |  |  | 209 |  |  |  | 34,437 |  |  |  | 34,646 |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 164 |  |  |  | 164 |
Farmland |  |  | — |  |  |  | — |  |  |  | 301 |  |  |  | 301 |  |  |  | 572 |  |  |  | 873 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 488 |  |  |  | 86 |  |  |  | 163 |  |  |  | 737 |  |  |  | 68,469 |  |  |  | 69,206 |
Single family owner occupied |  |  | 197 |  |  |  | 120 |  |  |  | 1,466 |  |  |  | 1,783 |  |  |  | 15,136 |  |  |  | 16,919 |
Owner occupied construction |  |  | — |  |  |  | — |  |  |  | 190 |  |  |  | 190 |  |  |  | 994 |  |  |  | 1,184 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | — |
Consumer loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 118 |  |  |  | 118 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total covered loans |  |  | 1,378 |  |  |  | 250 |  |  |  | 2,849 |  |  |  | 4,477 |  |  |  | 147,205 |  |  |  | 151,682 |
Total loans |  | $ | 12,307 |  |  | $ | 2,802 |  |  | $ | 11,961 |  |  | $ | 27,070 |  |  | $ | 1,683,651 |  |  | $ | 1,710,721 |
|  | December 31, 2012 |
(Amounts in thousands) |  | 30 - 59 Days Past Due |  |  | 60 - 89 Days Past Due |  |  | 90+ Days Past Due |  |  | Total Past Due |  |  | Current Loans |  |  | Total Loans |
Non-covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 344 |  |  | $ | — |  |  | $ | 188 |  |  | $ | 532 |  |  | $ | 56,902 |  |  | $ | 57,434 |
Commercial and industrial |  |  | 387 |  |  |  | 84 |  |  |  | 1,432 |  |  |  | 1,903 |  |  |  | 86,835 |  |  |  | 88,738 |
Multi-family residential |  |  | 624 |  |  |  | — |  |  |  | — |  |  |  | 624 |  |  |  | 65,070 |  |  |  | 65,694 |
Single family non-owner occupied |  |  | 1,841 |  |  |  | 1,348 |  |  |  | 3,715 |  |  |  | 6,904 |  |  |  | 129,008 |  |  |  | 135,912 |
Non-farm, non-residential |  |  | 2,702 |  |  |  | 936 |  |  |  | 3,621 |  |  |  | 7,259 |  |  |  | 441,551 |  |  |  | 448,810 |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 1,709 |  |  |  | 1,709 |
Farmland |  |  | 216 |  |  |  | 196 |  |  |  | — |  |  |  | 412 |  |  |  | 34,158 |  |  |  | 34,570 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 315 |  |  |  | 93 |  |  |  | 495 |  |  |  | 903 |  |  |  | 110,178 |  |  |  | 111,081 |
Single family owner occupied |  |  | 6,564 |  |  |  | 1,176 |  |  |  | 1,644 |  |  |  | 9,384 |  |  |  | 464,163 |  |  |  | 473,547 |
Owner occupied construction |  |  | 382 |  |  |  | — |  |  |  | — |  |  |  | 382 |  |  |  | 15,841 |  |  |  | 16,223 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 715 |  |  |  | 73 |  |  |  | 47 |  |  |  | 835 |  |  |  | 77,328 |  |  |  | 78,163 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5,666 |  |  |  | 5,666 |
Total non-covered loans |  |  | 14,090 |  |  |  | 3,906 |  |  |  | 11,142 |  |  |  | 29,138 |  |  |  | 1,488,409 |  |  |  | 1,517,547 |
Covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  |  | 252 |  |  |  | 161 |  |  |  | 1,121 |  |  |  | 1,534 |  |  |  | 25,061 |  |  |  | 26,595 |
Commercial and industrial |  |  | 45 |  |  |  | — |  |  |  | — |  |  |  | 45 |  |  |  | 6,903 |  |  |  | 6,948 |
Multi-family residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 2,611 |  |  |  | 2,611 |
Single family non-owner occupied |  |  | 8 |  |  |  | — |  |  |  | 21 |  |  |  | 29 |  |  |  | 11,399 |  |  |  | 11,428 |
Non-farm, non-residential |  |  | 501 |  |  |  | — |  |  |  | 927 |  |  |  | 1,428 |  |  |  | 47,137 |  |  |  | 48,565 |
Agricultural |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 144 |  |  |  | 144 |
Farmland |  |  | 6 |  |  |  | — |  |  |  | — |  |  |  | 6 |  |  |  | 1,085 |  |  |  | 1,091 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 217 |  |  |  | 112 |  |  |  | 204 |  |  |  | 533 |  |  |  | 80,912 |  |  |  | 81,445 |
Single family owner occupied |  |  | 413 |  |  |  | 135 |  |  |  | 475 |  |  |  | 1,023 |  |  |  | 21,938 |  |  |  | 22,961 |
Owner occupied construction |  |  | — |  |  |  | — |  |  |  | 59 |  |  |  | 59 |  |  |  | 1,585 |  |  |  | 1,644 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,674 |  |  |  | 3,674 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total covered loans |  |  | 1,442 |  |  |  | 408 |  |  |  | 2,807 |  |  |  | 4,657 |  |  |  | 202,449 |  |  |  | 207,106 |
Total loans |  | $ | 15,532 |  |  | $ | 4,314 |  |  | $ | 13,949 |  |  | $ | 33,795 |  |  | $ | 1,690,858 |  |  | $ | 1,724,653 |
The Company may make concessions in interest rates, loan terms and/or amortization terms when restructuring loans for borrowers experiencing financial difficulty. All restructured loans to borrowers experiencing financial difficulty in excess of $250 thousand are evaluated for a specific reserve based on either the collateral or net present value method, whichever is most applicable. Specific reserves in the allowance for loan losses attributed to TDRs totaled $1.84 million as of December 31, 2013, and $1.87 million as of December 31, 2012. Restructured loans under $250 thousand are subject to the reserve calculation at the historical loss rate for classified loans. Certain TDRs are classified as nonperforming at the time of restructuring and are returned to performing status after six months of satisfactory payment performance; however, these loans remain identified as impaired until full payment or other satisfaction of the obligation occurs. The Company recognized interest income on TDRs of $551 thousand in 2013, $640 thousand in 2012, and $411 thousand in 2011. Loans acquired with credit deterioration, with a discount, are generally not considered a TDR as long as the loan remains in the assigned loan pool. There were no covered loans recorded as TDRs as of December 31, 2013 or 2012. The following table presents loans modified as TDRs, by loan class, segregated by accrual status, as of the dates indicated:
|  | December 31, |
|  | 2013 |  |  | 2012 |
(Amounts in thousands) |  | Nonaccrual (1) |  |  | Accruing |  |  | Total |  |  | Nonaccrual (1) |  |  | Accruing |  |  | Total |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, andother land |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 63 |  |  | $ | — |  |  | $ | 63 |
Commercial and industrial |  |  | 1,115 |  |  |  | — |  |  |  | 1,115 |  |  |  | 1,119 |  |  |  | — |  |  |  | 1,119 |
Single family non-owner occupied |  |  | 375 |  |  |  | — |  |  |  | 375 |  |  |  | 1,380 |  |  |  | — |  |  |  | 1,380 |
Non-farm, non-residential |  |  | 128 |  |  |  | 5,490 |  |  |  | 5,618 |  |  |  | 764 |  |  |  | 5,897 |  |  |  | 6,661 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 159 |  |  |  | 51 |  |  |  | 210 |  |  |  | 305 |  |  |  | 55 |  |  |  | 360 |
Single family owner occupied |  |  | 423 |  |  |  | 6,670 |  |  |  | 7,093 |  |  |  | 197 |  |  |  | 6,095 |  |  |  | 6,292 |
Total TDRs |  | $ | 2,200 |  |  | $ | 12,211 |  |  | $ | 14,411 |  |  | $ | 3,828 |  |  | $ | 12,047 |  |  | $ | 15,875 |
(1) | TDRs on nonaccrual status are included in the total nonaccrual loan balance disclosed in the table above.
The following table presents loans modified as TDRs, by type of concession made and loan class, that were restructured during the years indicated. The post-modification recorded investment represents the loan balance immediately following modification.
|  | Year Ended December 31, |
|  | 2013 |  |  | 2012 |
(Amounts in thousands) |  | Total Contracts |  |  | Pre- Modification Recorded Investment |  |  | Post- Modification Recorded Investment |  |  | Total Contracts |  |  | Pre- Modification Recorded Investment |  |  | Post- Modification Recorded Investment |
Below market interest rate Single family owner occupied |  |  | 2 |  |  | $ | 601 |  |  | $ | 557 |  |  |  | — |  |  | $ | — |  |  | $ | — |
Below market interest rate andextended payment term Single family non-owner occupied |  |  | 1 |  |  |  | 375 |  |  |  | 328 |  |  |  |  |  |  |  | — |  |  |  | — |
Non-farm, non-residential |  |  | 1 |  |  |  | 511 |  |  |  | 511 |  |  |  | 2 |  |  |  | 5,822 |  |  |  | 5,822 |
Single family owner occupied |  |  | 4 |  |  |  | 809 |  |  |  | 757 |  |  |  | — |  |  |  | — |  |  |  | — |
Total |  |  | 8 |  |  | $ | 2,296 |  |  | $ | 2,153 |  |  |  | 3 |  |  | $ | 6,173 |  |  | $ | 6,141 |
The following table presents loans modified as TDRs, by loan class, that were restructured within the previous 12 months for which there was a payment default during the years indicated:
|  | Year Ended December 31, |
|  | 2013 |  |  | 2012 |
(Amounts in thousands) |  | Total Contracts |  |  | Recorded Investment |  |  | Total Contracts |  |  | Recorded Investment |
Single family non-owner occupied |  |  | 1 |  |  | $ | 375 |  |  |  | — |  |  | $ | — |
Single family owner occupied |  |  | 1 |  |  |  | 359 |  |  |  | — |  |  |  | — |
Total |  |  | 2 |  |  | $ | 734 |  |  |  | — |  |  | $ | — |

X
- Definition The entire disclosure for financing receivables. Examples of financing receivables include, but are not limited to, loans, trade accounts receivables, notes receivable, credit cards, and receivables relating to a lessor's right(s) to payment(s) from a lease other than an operating lease that is recognized as assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -Section 55 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=32702940&loc=SL6953791-111525 + Details
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