XNYS:BXS BancorpSouth Inc. Quarterly Report 10-Q Filing - 3/31/2012

Effective Date 3/31/2012

BXS Fair Value Estimate
Premium
BXS Consider Buying
Premium
BXS Consider Selling
Premium
BXS Fair Value Uncertainty
Premium
BXS Economic Moat
Premium
BXS Stewardship
Premium
 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
________________________________________

FORM 10-Q
(Mark One)
 X
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2012

OR

 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ________________    to    ________________

Commission File Number:  001-12991
 

BANCORPSOUTH, INC.
(Exact name of registrant as specified in its charter)

Mississippi
64-0659571
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
   
One Mississippi Plaza, 201 South Spring Street          Tupelo, Mississippi
 
38804
(Address of principal executive offices)
(Zip Code)

Registrant's telephone number, including area code:  (662) 680-2000

NOT APPLICABLE
 (Former name, former address, and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant:  (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes  [X]   No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  [X] Yes [  ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check One):  Large accelerated filer [X]  Accelerated filer [  ]  Non-accelerated filer (Do not check if a smaller reporting company) [  ]  Smaller reporting company [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X] 
 
 
As of May 1, 2012, the registrant had outstanding 94,436,177 shares of common stock, par value $2.50 per share.
 
 
1

 

 BANCORPSOUTH, INC.
TABLE OF CONTENTS

PART I.
       Financial Information
Page
 
ITEM 1.
Financial Statements
 
   
Consolidated Balance Sheets March 31, 2012  and 2011 (Unaudited) and December 31, 2011
3
   
Consolidated Statements of Operations (Unaudited) Three Months Ended March 31, 2012 and 2011
4
   
Consolidated Statements of Comprehensive Income
Three Months Ended March 31, 2012 and 2011
5
   
Consolidated Statements of Cash Flows (Unaudited) Three Months Ended March 31, 2012  and 2011
6
   
Notes to Consolidated Financial Statements (Unaudited)
7
 
ITEM 2.
Management's Discussion and Analysis of Financial
 
   
Condition and Results of Operations
35
 
ITEM 3.
Quantitative and Qualitative Disclosures About Market Risk
67
 
ITEM 4.
Controls and Procedures
67
       
PART II.
 
Other Information
 
 
ITEM 1.
Legal Proceedings
68
 
ITEM 1A.
Risk Factors
69
 
ITEM 5.
Other Information
69
 
ITEM 6.
Exhibits
69

 
2

 



PART I.
 
FINANCIAL INFORMATION
 
                   
ITEM 1.  FINANCIAL STATEMENTS.
                 
                   
BANCORPSOUTH, INC. AND SUBSIDIARIES
 
Consolidated Balance Sheets
 
                   
   
March 31,
   
December 31,
   
March 31,
 
   
2012
   
2011
   
2011
 
   
(Unaudited)
      (1)    
(Unaudited)
 
   
(Dollars in thousands, except per share amounts)
 
ASSETS
                   
Cash and due from banks
  $ 184,441     $ 195,681     $ 146,989  
Interest bearing deposits with other banks
    665,675       303,663       102,312  
Held-to-maturity securities, at amortized cost
    -       -       1,667,203  
Available-for-sale securities, at fair value
    2,573,535       2,513,518       1,145,463  
 Federal funds sold and securities purchased under agreement to resell
    -       -       150,000  
Loans and leases
    8,777,538       8,911,258       9,255,609  
  Less:  Unearned income
    39,615       40,947       41,773  
            Allowance for credit losses
    181,777       195,118       198,333  
Net loans
    8,556,146       8,675,193       9,015,503  
Loans held for sale
    110,294       83,458       56,876  
Premises and equipment, net
    321,720       323,383       329,862  
Accrued interest receivable
    50,008       51,266       61,105  
Goodwill
    271,297       271,297       271,297  
Bank-owned life insurance
    202,698       200,085       194,988  
Other real estate owned
    167,808       173,805       136,412  
Other assets
    203,950       204,502       269,228  
TOTAL ASSETS
  $ 13,307,572     $ 12,995,851     $ 13,547,238  
                         
LIABILITIES
                       
Deposits:
                       
  Demand:  Noninterest bearing
  $ 2,260,012     $ 2,269,799     $ 2,027,990  
                  Interest bearing
    4,897,585       4,706,825       5,023,073  
  Savings
    1,067,256       991,702       932,574  
  Other time
    2,857,469       2,986,863       3,480,477  
Total deposits
    11,082,322       10,955,189       11,464,114  
 Federal funds purchased and securities sold under agreement to repurchase
    401,089       373,933       421,782  
Short-term Federal Home Loan Bank and
                       
   other short-term borrowings
    1,500       1,500       2,715  
Accrued interest payable
    7,652       8,644       13,238  
Junior subordinated debt securities
    160,312       160,312       160,312  
Long-term Federal Home Loan Bank borrowings
    33,500       33,500       110,000  
Other liabilities
    228,998       199,861       164,016  
TOTAL LIABILITIES
    11,915,373       11,732,939       12,336,177  
                         
SHAREHOLDERS' EQUITY
                       
Common stock, $2.50 par value per share
Authorized - 500,000,000 shares; Issued - 94,436,177,
83,483,796 and 83,481,737 shares, respectively
    236,090        208,709        208,704   
Capital surplus
    309,426       227,567       225,597  
Accumulated other comprehensive loss
    (4,136 )     (2,261 )     (16,579 )
Retained earnings
    850,819       828,897       793,339  
TOTAL SHAREHOLDERS' EQUITY
    1,392,199       1,262,912       1,211,061  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  $ 13,307,572     $ 12,995,851     $ 13,547,238  
                         
(1)  Derived from audited financial statements.
                       
                         
See accompanying notes to consolidated financial statements.
                 

 
3

 

 
 
BANCORPSOUTH, INC. AND SUBSIDIARIES
 
Consolidated Statements of Operations
 
(Unaudited)
 
             
   
Three months ended
 
   
March 31,
 
   
2012
   
2011
 
   
(In thousands, except for per share amounts)
 
INTEREST REVENUE:
           
Loans and leases
  $ 109,012     $ 117,358  
Deposits with other banks
    401       122  
Federal funds sold and securities purchased under agreement to resell
    -       131  
Held-to-maturity securities:
               
  Taxable
    -       8,014  
  Tax-exempt
    -       3,347  
Available-for-sale securities:
               
  Taxable
    11,162       8,585  
  Tax-exempt
    4,256       824  
Loans held for sale
    544       447  
  Total interest revenue
    125,375       138,828  
                 
INTEREST EXPENSE:
               
Deposits:
               
  Interest bearing demand
    4,449       6,546  
  Savings
    714       826  
  Other time
    11,291       17,483  
                 
Federal funds purchased and securities sold under agreement to repurchase
    63       152  
Federal Home Loan Bank borrowings
    367       1,523  
Junior subordinated debt
    2,879       2,859  
Other
    2       2  
  Total interest expense
    19,765       29,391  
  Net interest revenue
    105,610       109,437  
Provision for credit losses
    10,000       53,479  
   Net interest revenue, after provision for credit losses
    95,610       55,958  
                 
NONINTEREST REVENUE:
               
Mortgage lending
    15,142       7,581  
Credit card, debit card and merchant fees
    7,523       10,346  
Service charges
    15,116       15,368  
Trust income
    2,282       3,134  
Security gains, net
    74       17  
Insurance commissions
    23,153       22,549  
Other
    9,070       9,316  
  Total noninterest revenue
    72,360       68,311  
                 
NONINTEREST EXPENSE:
               
Salaries and employee benefits
    74,931       70,375  
Occupancy, net of rental income
    10,066       10,671  
Equipment
    5,333       5,658  
Deposit insurance assessments
    5,383       5,425  
Other
    39,967       37,881  
  Total noninterest expense
    135,680       130,010  
  Income (loss) before income taxes
    32,290       (5,741 )
Income tax expense (benefit)
    9,424       (5,247 )
  Net income (loss)
  $ 22,866     $ (494 )
                 
Earnings (loss) per share:  Basic
  $ 0.25     $ (0.01 )
                                        Diluted
  $ 0.25     $ (0.01 )
                 
Dividends declared per common share
  $ 0.01     $ 0.11  
                 
See accompanying notes to consolidated financial statements.
         
 

 
 
4

 
 
 
BANCORPSOUTH, INC. AND SUBSIDIARIES
 
Consolidated Statements of Comprehensive Income
 
             
   
Three months ended
 
   
March 31,
 
   
2012
   
2011
 
   
(In thousands)
 
Net income (loss)
  $ 22,866     $ (494 )
                 
Other comprehensive loss, net of tax
               
Unrealized losses on securities, net of tax
    (2,953 )     (2,517 )
Pension and other postretirement benefits
    1,078       391  
Other comprehensive loss
    (1,875 )     (2,126 )
Comprehensive income
  $ 20,991     $ (2,620 )
 
See accompanying notes to consolidated financial statements.
               

 
5

 
 
 
BANCORPSOUTH, INC. AND SUBSIDIARIES
 
Consolidated Statements of Cash Flows
 
(Unaudited)
 
   
Three months ended
 
   
March 31,
 
   
2012
   
2011
 
   
(In thousands)
       
Operating Activities:
           
Net income
  $ 22,866     $ (494 )
  Adjustment to reconcile net income to net
               
    cash provided by operating activities:
               
      Provision for credit losses
    10,000       53,479  
      Depreciation and amortization
    6,832       7,476  
      Deferred taxes
    -       (145 )
      Amortization of intangibles
    763       854  
      Amortization of debt securities premium and discount, net
    2,820       1,813  
      Share-based compensation expense
    562       617  
      Security gains, net
    (74 )     (17 )
      Net deferred loan origination expense
    (2,006 )     (2,127 )
      Excess tax benefit from exercise of stock options
    -       (4 )
      Decrease (increase) in interest receivable
    1,258       (80 )
      Decrease in interest payable
    (992 )     (1,098 )
      Realized gain on mortgages sold
    (11,879 )     (7,486 )
      Proceeds from mortgages sold
    376,931       244,030  
      Origination of mortgages held for sale
    (395,149 )     (202,796 )
      Increase in bank-owned life insurance
    (2,612 )     (924 )
      Decrease (increase) in prepaid pension asset
    465       (93 )
      Decrease in prepaid deposit insurance assessments
    5,187       4,887  
      Other, net
    29,584       (18,026 )
Net cash provided by operating activities
    44,556       79,866  
Investing activities:
               
Proceeds from calls and maturities of held-to-maturity securities
    -       88,896  
Proceeds from calls and maturities of available-for-sale securities
    131,578       22,576  
Purchases of held-to-maturity securities
    -       (143,549 )
Purchases of available-for-sale securities
    (199,404 )     (77,349 )
Net decrease in loans and leases
    117,050       66,339  
Purchases of premises and equipment
    (5,925 )     (4,453 )
Proceeds from sale of premises and equipment
    906       17  
Contingency earn-out payment
    -       (1,200 )
Other, net
    (8 )     (16 )
Net cash provided by (used in) investing activities
    44,197       (48,739 )
Financing activities:
               
Net increase (decrease) in deposits
    127,133       (25,907 )
Net increase (decrease) in short-term debt and other liabilities
    27,153       (18,826 )
Issuance of common stock
    108,677       -  
Excess tax benefit from exercise of stock options
    -       4  
Payment of cash dividends
    (944 )     (9,183 )
Net cash provided by (used in) financing activities
    262,019       (53,912 )
                 
Increase (decrease) in cash and cash equivalents
    350,772       (22,785 )
Cash and cash equivalents at beginning of period
    499,344       272,086  
Cash and cash equivalents at end of period
  $ 850,116     $ 249,301  
                 
See accompanying notes to consolidated financial statements.
               


 
6

 


BANCORPSOUTH, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements
(Unaudited)

NOTE 1 – BASIS OF FINANCIAL STATEMENT PRESENTATION AND PRINCIPLES OF CONSOLIDATION

The accompanying unaudited interim consolidated financial statements of BancorpSouth, Inc. (the “Company”) have been prepared in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and follow general practices within the industries in which the Company operates.  For further information, refer to the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.  In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial statements have been included and all such adjustments were of a normal, recurring nature.  The results of operations for the three-month period ended March 31, 2012 are not necessarily indicative of the results to be expected for the full year.  Certain 2011 amounts have been reclassified to conform with the 2012 presentation.
The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, BancorpSouth Bank (the “Bank”) and Gumtree Wholesale Insurance Brokers, Inc., and the Bank’s wholly-owned subsidiaries, Century Credit Life Insurance Company, Personal Finance Corporation of Tennessee, BancorpSouth Insurance Services, Inc., BancorpSouth Investment Services, Inc., BancorpSouth Municipal Development Corporation and BancorpSouth Bank Securities Corporation.

NOTE 2 – LOANS AND LEASES

The Company’s loan and lease portfolio is disaggregated into the following segments:  commercial and industrial; real estate; credit card; and all other loans and leases.  The real estate segment is further disaggregated into the following classes:  consumer mortgage; home equity; agricultural; commercial and industrial-owner occupied; construction, acquisition and development; and commercial real estate.  A summary of gross loans and leases by segment and class as of the dates indicated follows:


   
March 31,
   
December 31,
 
   
2012
   
2011
   
2011
 
   
(In thousands)
 
                   
Commercial and industrial
  $ 1,452,492     $ 1,497,380     $ 1,484,967  
Real estate
                       
   Consumer mortgages
    1,937,997       1,958,367       1,945,190  
   Home equity
    501,331       531,406       514,362  
   Agricultural
    256,683       250,393       239,487  
   Commercial and industrial-owner occupied
    1,287,542       1,316,824       1,301,575  
   Construction, acquisition and development
    858,110       1,117,335       908,362  
   Commercial real estate
    1,742,001       1,831,226       1,754,022  
Credit cards
    100,527       100,732       106,281  
All other
    640,855       651,946       657,012  
     Total
  $ 8,777,538     $ 9,255,609     $ 8,911,258  



 
7

 
 
The following table shows the Company’s  loans and leases, net of unearned income, as of March 31, 2012 by segment, class and geographical location:


   
Alabama
and Florida
Panhandle
   
Arkansas*
   
Mississippi*
   
Missouri
   
Greater
Memphis
Area
   
Tennessee*
   
Texas and
Louisiana
   
Other
   
Total
 
   
(In thousands)
       
Commercial and industrial
  $ 56,958     $ 165,503     $ 333,153     $ 51,881     $ 16,991     $ 78,288     $ 249,569     $ 489,384     $ 1,441,727  
Real estate
                                                                       
   Consumer
mortgages
    108,285       270,476       757,160       55,566       82,585       166,615       444,094       53,216       1,937,997  
   Home equity
    57,995       39,922       170,628       24,849       67,484       75,894       62,253       2,306       501,331  
   Agricultural
    5,775       83,839       72,900       3,937       9,262       13,199       62,470       5,301       256,683  
   Commercial and industrial-owner occupied
    114,985       166,065       453,201       68,002       95,874       95,133       244,967       49,315       1,287,542  
   Construction, acquisition and development
    104,362       69,566       244,459       48,115       95,198       92,608       185,781       18,021       858,110  
   Commercial real estate
    203,365       342,591       342,816       219,999       115,186       101,142       362,700       54,202       1,742,001  
Credit cards
    -       -       -       -       -       -       -       100,527       100,527  
All other
    31,347       88,646       195,309       5,662       57,105       47,204       95,521       91,211       612,005  
     Total
  $ 683,072     $ 1,226,608     $ 2,569,626     $ 478,011     $ 539,685     $ 670,083     $ 1,707,355     $ 863,483     $ 8,737,923  
* Excludes the Greater Memphis Area.
 

The Company’s loan concentrations which exceed 10% of total loans are reflected in the preceding tables.  A substantial portion of construction, acquisition and development loans are secured by real estate in markets in which the Company is located.  The Company’s general loan policy prohibits the use of interest reserves on loans originated after March 2010.  Certain of the construction, acquisition and development loans were structured with interest-only terms.  A portion of the consumer mortgage and commercial real estate portfolios originated through the permanent financing of construction, acquisition and development loans.  The prolonged economic downturn has negatively impacted many borrowers’ and guarantors’ ability to make payments under the terms of the loans as their liquidity has been depleted.  Accordingly, the ultimate collectability of a substantial portion of these loans and the recovery of a substantial portion of the carrying amount of other real estate owned are susceptible to changes in real estate values in the corresponding market areas.  Continued economic distress could negatively impact additional borrowers’ and guarantors’ ability to repay their debt which would make more of the Company’s loans collateral dependent.
The following tables provide details regarding the aging of the Company’s loan and lease portfolio, net of unearned income, by segment and class at March 31, 2012 and December 31, 2011:


   
March 31, 2012
 
   
30-59 Days
Past Due
   
60-89 Days
Past Due
   
90+ Days
Past Due
   
Total
Past Due
   
Current
   
Total
Outstanding
   
90+ Days
Past Due still
Accruing
 
   
(In thousands)
 
Commercial and industrial
  $ 3,831     $ 1,511     $ 3,392     $ 8,734     $ 1,432,993     $ 1,441,727     $ 10  
Real estate
                                                       
   Consumer mortgages
    10,482       4,776       17,830       33,088       1,904,909       1,937,997       1,314  
   Home equity
    1,832       769       288       2,889       498,442       501,331       -  
   Agricultural
    638       25       1,518       2,181       254,502       256,683       -  
   Commercial and industrial-owner occupied
    2,493       1,601       8,603       12,697       1,274,845       1,287,542       -  
   Construction, acquisition and development
    9,860       331       16,142       26,333       831,777       858,110       -  
   Commercial real estate
    5,165       1,540       8,979       15,684       1,726,317       1,742,001       -  
Credit cards
    377       360       587       1,324       99,203       100,527       228  
All other
    1,740       359       372       2,471       609,534       612,005       146  
     Total
  $ 36,418     $ 11,272     $ 57,711     $ 105,401     $ 8,632,522     $ 8,737,923     $ 1,698  

 
8

 

   
December 31, 2011
 
   
30-59 Days
Past Due
   
60-89 Days
Past Due
   
90+ Days
Past Due
   
Total
Past Due
   
Current
   
Total
Outstanding
   
90+ Days
Past Due still
Accruing
 
   
(In thousands)
 
Commercial and industrial
  $ 5,571     $ 4,209     $ 4,193     $ 13,973     $ 1,459,755     $ 1,473,728     $ 12  
Real estate
                                                       
   Consumer mortgages
    15,740       6,485       14,569       36,794       1,908,396       1,945,190       2,974  
   Home equity
    1,837       265       594       2,696       511,666       514,362       -  
   Agricultural
    666       54       719       1,439       238,048       239,487       -  
   Commercial and industrial-owner occupied
    2,199       844       12,977       16,020       1,285,555       1,301,575       -  
   Construction, acquisition and development
    4,826       4,955       33,584       43,365       864,997       908,362       -  
   Commercial real estate
    3,778       2,702       9,397       15,877       1,738,145       1,754,022       -  
Credit cards
    595       303       697       1,595       104,686       106,281       299  
All other
    2,124       390       1,579       4,093       623,211       627,304       149  
     Total
  $ 37,336     $ 20,207     $ 78,309     $ 135,852     $ 8,734,459     $ 8,870,311     $ 3,434  

The Company utilizes an internal loan classification system to grade loans according to certain credit quality indicators.  These credit quality indicators include, but are not limited to, recent credit performance, delinquency, liquidity, cash flows, debt coverage ratios, collateral type and loan-to-value ratio.  The Company’s internal loan classification system is compatible with classifications used by the Federal Deposit Insurance Corporation, as well as other regulatory agencies.  Loans may be classified as follows:

Pass:  Loans which are performing as agreed with few or no signs of weakness.  These loans show sufficient cash flow, capital and collateral to repay the loan as agreed.  Borrowers for these loans include well capitalized public corporations.

Special Mention:  Loans where potential weaknesses have developed which could cause a more serious problem if not corrected.

Substandard:  Loans where well-defined weaknesses exist that require corrective action to prevent further deterioration.

Doubtful:  Loans having all the characteristics of Substandard and which have deteriorated to a point where collection and liquidation in full is highly questionable.

Loss:  Loans that are considered uncollectible or with limited possible recovery.

Impaired:  Loans for which it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement and for which a specific impairment reserve has been considered.


 
9

 
 
The following tables provide details of the Company’s loan and lease portfolio, net of unearned income, by segment, class and internally assigned grade at March 31, 2012 and December 31, 2011:


   
March 31, 2012
 
   
Pass
   
Special
Mention
   
Substandard
   
Doubtful
   
Loss
   
Impaired
   
Total
 
   
(In thousands)
 
Commercial and industrial
  $ 1,376,983     $ 6,449     $ 47,783     $ 4,159     $ 247     $ 6,106     $ 1,441,727  
Real estate
                                                       
  Consumer mortgage
    1,729,187       23,918       151,679       4,351       446       28,416       1,937,997  
  Home equity
    476,300       2,793       19,626       754       275       1,583       501,331  
  Agricultural
    229,865       1,936       21,763       20       -       3,099       256,683  
  Commercial and industrial-owner occupied
    1,151,368       24,662       83,041       230       89       28,152       1,287,542  
  Construction, acquisition and development
    601,396       22,939       121,556       956       -       111,263       858,110  
  Commercial real estate
    1,491,021       47,535       171,891       72       -       31,482       1,742,001  
Credit Cards
    100,527       -       -       -       -       -       100,527  
All other
    575,399       16,685       18,222       678       10       1,011       612,005  
    Total
  $ 7,732,046     $ 146,917     $ 635,561     $ 11,220     $ 1,067     $ 211,112     $ 8,737,923  
 

 
   
December 31, 2011
 
   
Pass
   
Special
Mention
   
Substandard
   
Doubtful
   
Loss
   
Impaired
   
Total
 
   
(In thousands)
 
Commercial and industrial
  $ 1,415,731     $ 4,947     $ 43,549     $ 1,263     $ 405     $ 7,833     $ 1,473,728  
Real estate
                                                       
  Consumer mortgage
    1,742,593       17,914       148,267       4,434       189       31,793       1,945,190  
  Home equity
    492,235       2,775       17,050       1,134       493       675       514,362  
  Agricultural
    213,280       3,795       19,296       20       -       3,096       239,487  
  Commercial and industrial-owner occupied
    1,167,220       18,280       90,778       496       -       24,801       1,301,575  
  Construction, acquisition and development
    619,497       23,429       136,412       845       -       128,179       908,362  
  Commercial real estate
    1,501,196       37,409       179,295       -       -       36,122       1,754,022  
Credit Cards
    105,867       41       175       188       10       -       106,281  
All other
    587,970       16,104       20,263       470       73       2,424       627,304  
    Total
  $ 7,845,589     $ 124,694     $ 655,085     $ 8,850     $ 1,170     $ 234,923     $ 8,870,311  

 
 
10

 

The following tables provide details regarding impaired loans and leases, net of unearned income, by segment and class at March 31, 2012 and December 31, 2011:


   
March 31, 2012
 
   
Recorded
Investment
in Impaired
Loans
   
Unpaid
Principal
Balance of
Impaired
Loans
   
Related
Allowance
for Credit
Losses
   
Average
Recorded
Investment
   
Interest
Income
Recognized
 
   
(In thousands)
 
With no related allowance:
                             
Commercial and industrial
  $ 4,931     $ 5,684     $ -     $ 3,466     $ 38  
Real estate
                                       
  Consumer mortgage
    14,610       18,635       -       13,178       88  
  Home equity
    874       1,017       -       711       2  
  Agricultural
    1,718       2,895       -       1,602       17  
  Commercial and industrial-owner occupied
    16,390       21,261       -       9,438       98  
  Construction, acquisition and development
    64,770       90,905       -       60,417       348  
  Commercial real estate
    16,947       27,306       -       16,122       154  
All other
    723       1,035       -       788       6  
    Total
  $ 120,963     $ 168,738     $ -     $ 105,722     $ 751  
                                         
With an allowance:
                                       
Commercial and industrial
  $ 1,175     $ 1,293     $ 1,548     $ 3,783     $ 36  
Real estate
                                       
  Consumer mortgage
    13,806       14,867       3,977       17,469       170  
  Home equity
    709       709       178       258       -  
  Agricultural
    1,381       1,422       386       1,483       -  
  Commercial and industrial-owner occupied
    11,762       12,299       3,051       16,334       73  
  Construction, acquisition and development
    46,493       51,180       11,736       60,877       500  
  Commercial real estate
    14,535       15,616       4,410       18,416       148  
All other
    288       359       260       327       6  
    Total
  $ 90,149     $ 97,745     $ 25,546     $ 118,947     $ 933  
                                         
Total:
                                       
Commercial and industrial
  $ 6,106     $ 6,977     $ 1,548     $ 7,249     $ 74  
Real estate
                                       
  Consumer mortgage
    28,416       33,502       3,977       30,647       258  
  Home equity
    1,583       1,726       178       969       2  
  Agricultural
    3,099       4,317       386       3,085       17  
  Commercial and industrial-owner occupied
    28,152       33,560       3,051       25,772       171  
  Construction, acquisition and development
    111,263       142,085       11,736       121,294       848  
  Commercial real estate
    31,482       42,922       4,410       34,538       302  
All other
    1,011       1,394       260       1,115       12  
    Total
  $ 211,112     $ 266,483     $ 25,546     $ 224,669     $ 1,684  


 
11

 

   
December 31, 2011
 
   
Recorded
Investment
in Impaired
Loans
   
Unpaid
Principal
Balance of
Impaired
Loans
   
Related
Allowance
for Credit
Losses
   
Average
Recorded
Investment
   
Interest
Income
Recognized
 
   
(In thousands)
 
With no related allowance:
                             
Commercial and industrial
  $ 4,874     $ 6,854     $ -     $ 3,879     $ 78  
Real estate
                                       
  Consumer mortgage
    16,883       19,538       -       19,628       397  
  Home equity
    627       771       -       541       1  
  Agricultural
    1,549       2,676       -       2,502       20  
  Commercial and industrial-owner occupied
    6,973       9,191       -       11,598       185  
  Construction, acquisition and development
    69,843       89,782       -       107,596       941  
  Commercial real estate
    15,184       24,198       -       20,702       311  
All other
    1,284       1,668       -       1,169       67  
    Total
  $ 117,217     $ 154,678     $ -     $ 167,615     $ 2,000  
                                         
With an allowance:
                                       
Commercial and industrial
  $ 2,959     $ 3,301     $ 4,071     $ 3,558     $ 49  
Real estate
                                       
  Consumer mortgage
    14,910       16,224       4,386       14,960       323  
  Home equity
    48       276       48       504       3  
  Agricultural
    1,547       1,547       380       3,164       18  
  Commercial and industrial-owner occupied
    17,828       21,085       3,601       10,329       146  
  Construction, acquisition and development
    58,336       67,426       21,581       80,957       1,651  
  Commercial real estate
    20,938       21,422       5,324       27,210       851  
All other
    1,140       1,140       317       1,307       8  
    Total
  $ 117,706     $ 132,421     $ 39,708     $ 141,989     $ 3,049  
                                         
Total:
                                       
Commercial and industrial
  $ 7,833     $ 10,155     $ 4,071     $ 7,437     $ 127  
Real estate
                                       
  Consumer mortgage
    31,793       35,762       4,386       34,588       720  
  Home equity
    675       1,047       48       1,045       4  
  Agricultural
    3,096       4,223       380       5,666       38  
  Commercial and industrial-owner occupied
    24,801       30,276       3,601       21,927       331  
  Construction, acquisition and development
    128,179       157,208       21,581       188,553       2,592  
  Commercial real estate
    36,122       45,620       5,324       47,912       1,162  
All other
    2,424       2,808       317       2,476       75  
    Total
  $ 234,923     $ 287,099     $ 39,708     $ 309,604     $ 5,049  


 
12

 


The following tables provide details regarding impaired real estate construction, acquisition and development loans and leases, net of unearned income, by collateral type at March 31, 2012 and December 31, 2011:


   
March 31, 2012
 
   
Recorded
Investment
in Impaired
Loans
   
Unpaid
Principal
Balance of
Impaired
Loans
   
Related
Allowance
for Credit
Losses
   
Average
Recorded
Investment
   
Interest
Income
Recognized
 
   
(In thousands)
 
With no related allowance:
                             
Multi-family construction
  $ -     $ -     $ -     $ -     $ -  
One-to-four family construction
    8,174       11,563       -       6,703       56  
Recreation and all other loans
    367       539       -       368       7  
Commercial construction
    3,241       4,088       -       1,522       34  
Commercial acquisition and development
    11,927       14,213       -       12,845       77  
Residential acquisition and development
    41,061       60,502       -       38,979       174  
    Total
  $ 64,770     $ 90,905     $ -     $ 60,417     $ 348  
                                         
With an allowance:
                                       
Multi-family construction
  $ -     $ -     $ -     $ -     $ -  
One-to-four family construction
    3,085       3,085       441       5,550       35  
Recreation and all other loans
    -       -       -       -       -  
Commercial construction
    318       839       95       2,395       8  
Commercial acquisition and development
    9,888       10,028       1,598       10,346       71  
Residential acquisition and development
    33,202       37,228       9,602       42,586       386  
    Total
  $ 46,493     $ 51,180     $ 11,736     $ 60,877     $ 500  
                                         
Total:
                                       
Multi-family construction
  $ -     $ -     $ -     $ -     $ -