Investment securities decreased $131.5 million, or 21.0%, year-over-year to $493.4 million at December 31, 2012, and were down $51.7 million sequentially from September 30, 2012. During the fourth quarter of 2012, the Company sold $24.9 million of investment securities resulting in a $1.5 million realized gain on sale of securities. The investment portfolio contains two pooled trust preferred securities with a book value of $5.1 million, and a market value of $357 thousand at December 31, 2012, for which the Company performs a quarterly analysis to determine whether any other than temporary impairment exists. The analysis includes stress tests on the underlying collateral and cash flow estimates based on the current and projected future levels of deferrals, defaults, and prepayments within each pool. There has been no recorded impairment loss for the year ended December 31, 2012, compared to an impairment loss of $732 thousand for the same time period in 2011.
Loans, net of allowance for loan losses, increased $22.6 million, or 1.1%. Non-farm, non-residential real estate loans increased $22.3 million, or 2.0%, one-to-four family residential increased $26.9 million or 7.2%, multifamily real estate loans increased $1.9 million, or 2.5%, C&I loans were up $8.6 million, or 3.4%, and ADC loans fell by $44.4 million, or 13.6%, from December 31, 2011, to December 31, 2012. Sequentially, loans, net of allowance for loan losses, increased $40.3 million, or 1.9%. The sequential increase in loans was primarily attributable to a $31.1 million increase in C&I loans, a $21.1 million increase in ADC loans and a $19.2 million increase in owner-occupied non-farm, non-residential loans partially offset by a $22.7 million decline in non-owner-occupied non-farm, non-residential loans and an $8.4 million decrease in multi-family residential loans. The sequential increase in C&I loans was driven by a combination of new term funding for several significant business expansion transactions, increased credit line usage partly attributable to year-end tax planning and borrowings in anticipation of changes in the tax code. The rise in ADC loans represented increased funding of new and ongoing construction projects, primarily consisting of single family and multi-family residential properties. The sequential increase in owner-occupied non-farm, non-residential loans represented the refinance of several new business and non-profit clients’ operating facilities. The sequential decreases in non-owner-occupied non-farm, non-residential loans and multi-family loans primarily represented early payoffs, scheduled principal amortization and maturities in excess of new loan generation. The orientation of loan generation efforts and loan mix continues to be reflective of the Bank’s strategic emphasis on building greater market share in commercial lending, owner-occupied commercial real estate and residential real estate lending, while focusing ADC lending and non-owner-occupied commercial real estate lending on select transactions in key markets with solid economic metrics.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV