Edgar Filing: ServisFirst Bancshares, Inc.

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 SEPTEMBER 30, 2013

	¨	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 000-53149

SERVISFIRST BANCSHARES, INC.

(Exact Name of Registrant as Specified in Its Charter)

Delaware	26-0734029
(State or Other Jurisdiction of	(I.R.S. Employer
Incorporation or Organization)	Identification No.)

	850 Shades Creek Parkway, Birmingham, Alabama	35209
	(Address of Principal Executive Offices)	(Zip Code)

(205) 949-0302

(Registrant's Telephone Number, Including Area Code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or Section 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 during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes x 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 definition of “large accelerated filer”, “accelerated filer”, and “smaller reporting company” in Rule 12b-2 of the Exchange Act (Check one):

Large accelerated filer ¨ Accelerated filer x Non-accelerated filer ¨ 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

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practical date.

Class	Outstanding as of October 29, 2013
Common stock, $.001 par value	7,076,347

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
Item 1.	Consolidated Financial Statements		3
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		23
Item 3.	Quantitative and Qualitative Disclosures about Market Risk		38
Item 4.	Controls and Procedures		39

PART II. OTHER INFORMATION
Item 1	Legal Proceedings		39
Item 1A.	Risk Factors		39
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds		39
Item 3.	Defaults Upon Senior Securities		40
Item 4.	Mine Safety Disclosures		40
Item 5.	Other Information		40
Item 6.	Exhibits		40

EX-31.01		SECTION 302 CERTIFICATION OF THE CEO
EX-31.02		SECTION 302 CERTIFICATION OF THE CFO
EX-32.01		SECTION 906 CERTIFICATION OF THE CEO
EX-32.02		SECTION 906 CERTIFICATION OF THE CFO

	2

PART 1. FINANCIAL INFORMATION

ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2013 AND DECEMBER 31, 2012

(In thousands, except share and per share amounts)

	September 30, 2013		December 31, 2012
	(Unaudited)		(Audited)
ASSETS
Cash and due from banks	$	71,833	$	58,031
Interest-bearing balances due from depository institutions		185,657		119,423
Federal funds sold		7,923		3,291
Cash and cash equivalents		265,413		180,745
Available for sale debt securities, at fair value		256,385		233,877
Held to maturity debt securities (fair value of $32,671 and $27,350 at September 30, 2013 and December 31, 2012, respectively)		33,130		25,967
Restricted equity securities		3,738		3,941
Mortgage loans held for sale		11,592		25,826
Loans		2,731,973		2,363,182
Less allowance for loan losses		(28,927)		(26,258)
Loans, net		2,703,046		2,336,924
Premises and equipment, net		8,518		8,847
Accrued interest and dividends receivable		9,604		9,158
Deferred tax assets		9,160		7,386
Other real estate owned and repossessed assets		14,258		9,873
Bank owned life insurance contracts		68,460		57,014
Other assets		12,849		6,756
Total assets	$	3,396,153	$	2,906,314
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Deposits:
Noninterest-bearing	$	635,153	$	545,174
Interest-bearing		2,284,064		1,966,398
Total deposits		2,919,217		2,511,572
Federal funds purchased		170,090		117,065
Other borrowings		19,932		19,917
Trust preferred securities		-		15,050
Accrued interest and dividends payable		4,553		942
Other liabilities		6,061		8,511
Total liabilities		3,119,853		2,673,057
Stockholders' equity:
Preferred stock, Series A Senior Non-Cumulative Perpetual, par value $.001 (liquidation preference $1,000), net of discount; 40,000 shares authorized, 40,000 shares issued and outstanding at September 30, 2013 and at December 31, 2012		39,958		39,958
Preferred stock, par value $.001 per share; 1,000,000 authorized and 960,000 currently undesignated		-		-
Common stock, par value $.001 per share; 15,000,000 shares authorized; 7,076,347 shares issued and outstanding at September 30, 2013 and 6,268,812 shares issued and outstanding at December 31, 2012		7		6
Additional paid-in capital		113,441		93,505
Retained earnings		118,391		92,492
Accumulated other comprehensive income		4,503		7,296
Total stockholders' equity		276,300		233,257
Total liabilities and stockholders' equity	$	3,396,153	$	2,906,314

See Notes to Consolidated Financial Statements.

	3

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share amounts)

(Unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Interest income:
Interest and fees on loans	$	30,475	$	25,609	$	86,667	$	73,372
Taxable securities		980		1,189		2,851		3,828
Nontaxable securities		858		827		2,537		2,423
Federal funds sold		44		50		77		145
Other interest and dividends		142		68		224		200
Total interest income		32,499		27,743		92,356		79,968
Interest expense:
Deposits		3,131		3,079		8,628		9,229
Borrowed funds		403		616		1,381		2,048
Total interest expense		3,534		3,695		10,009		11,277
Net interest income		28,965		24,048		82,347		68,691
Provision for loan losses		3,034		1,185		10,652		6,651
Net interest income after provision for loan losses		25,931		22,863		71,695		62,040
Noninterest income:
Service charges on deposit accounts		823		666		2,391		1,986
Mortgage banking		402		865		2,154		2,701
Securities gains		-		-		131		-
Increase in cash surrender value life insurance		491		386		1,446		1,161
Other operating income		553		443		1,517		1,209
Total noninterest income		2,269		2,360		7,639		7,057
Noninterest expenses:
Salaries and employee benefits		7,048		5,697		19,783		16,110
Equipment and occupancy expense		1,272		988		3,852		2,884
Professional services		443		322		1,329		960
FDIC and other regulatory assessments		405		409		1,263		1,155
OREO expense		357		1,159		951		1,832
Other operating expenses		2,542		2,696		8,013		7,256
Total noninterest expenses		12,067		11,271		35,191		30,197
Income before income taxes		16,133		13,952		44,143		38,900
Provision for income taxes		5,321		4,650		14,394		13,011
Net income		10,812		9,302		29,749		25,889
Preferred stock dividends		100		100		300		300
Net income available to common stockholders	$	10,712	$	9,202	$	29,449	$	25,589

Basic earnings per common share	$	1.53	$	1.53	$	4.35	$	4.28

Diluted earnings per common share	$	1.46	$	1.35	$	4.10	$	3.75

See Notes to Consolidated Financial Statements.

	4

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In thousands)

(Unaudited)

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
Net income	$	10,812	$	9,302	$	29,749	$	25,889
Other comprehensive income (loss), net of tax:
Unrealized holding gains (losses) arising during period from securities available for sale, net of tax of $199 and $(1,458) for the three and nine months ended September 30, 2013, respectively, and $348 and $525 for the three and nine months ended September 30, 2012, respectively		369		646		(2,708)		1,316
Reclassification adjustment for net gains on sale of securities in net income, net of tax of $46 for the nine months ended September 30, 2013		-		-		(85)		-
Other comprehensive income (loss), net of tax		369		646		(2,793)		1,316
Comprehensive income	$	11,181	$	9,948	$	26,956	$	27,205

See Notes to Consolidated Financial Statements.

	5

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY

NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(In thousands, except share amounts)

(Unaudited)

	Preferred Stock		Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income		Total Stockholders' Equity
Balance, December 31, 2012	$	39,958	$	6	$	93,505	$	92,492	$	7,296	$	233,257
Dividends paid		-		-		-		(12)		-		(12)
Dividends declared		-		-		-		(3,538)		-		(3,538)
Preferred dividends paid		-		-		-		(300)		-		(300)
Exercise 113,500 stock options and warrants, including tax benefit of $243		-		-		2,632		-		-		2,632
Issuance of 600,000 shares upon mandatory conversion of subordinated mandatorily convertible debentures		-		1		14,999		-		-		15,000
Common stock issued		-		-		1,416		-		-		1,416
Other comprehensive income		-		-		-		-		(2,793)		(2,793)
Stock-based compensation expense		-		-		889		-		-		889
Net income		-		-		-		29,749		-		29,749
Balance, September 30, 2013		39,958		7		113,441		118,391		4,503		276,300

Balance, December 31, 2011		39,958		6		87,805		61,581		6,942		196,292
Preferred dividends paid		-		-		-		(300)		-		(300)
Exercise 74,036 stock options and warrants, including tax benefit of $127		-		-		1,021		-		-		1,021
Other comprehensive income		-		-		-		-		1,316		1,316
Stock-based compensation expense		-		-		788		-		-		788
Net income		-		-		-		25,889		-		25,889
Balance, September 30, 2012		39,958		6		89,614		87,170		8,258		225,006

See Notes to Consolidated Financial Statements.

	6

SERVISFIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(In thousands) (Unaudited)

	2013		2012
OPERATING ACTIVITIES
Net income	$	29,749	$	25,889
Adjustments to reconcile net income to net cash provided by
Deferred tax benefit		(270)		(1,602)
Provision for loan losses		10,652		6,651
Depreciation and amortization		1,356		911
Net amortization of investments		712		789
Market value adjustment of interest rate cap		-		9
Increase in accrued interest and dividends receivable		(446)		(996)
Stock-based compensation expense		889		788
Increase (decrease) in accrued interest payable		73		(78)
Proceeds from sale of mortgage loans held for sale		159,266		176,753
Originations of mortgage loans held for sale		(143,523)		(184,706)
Gain on sale of securities available for sale		(131)		-
Gain on sale of mortgage loans held for sale		(2,199)		(2,746)
Net loss on sale of other real estate owned		135		88
Write down of other real estate owned		402		1,424
Decrease in special prepaid FDIC insurance assessments		2,498		972
Increase in cash surrender value of life insurance contracts		(1,446)		(1,161)
Excess tax benefits from exercise of warrants		(248)		-
Net change in other assets, liabilities, and other operating activities		(3,186)		(401)
Net cash provided by operating activities		54,283		22,584
INVESTMENT ACTIVITIES
Purchase of securities available for sale		(66,120)		(34,040)
Proceeds from maturities, calls and paydowns of securities available for sale		38,734		92,021
Purchase of securities held to maturity		(10,668)		(6,005)
Proceeds from maturities, calls and paydowns of securities held to maturity		3,505		423
Increase in loans		(386,247)		(335,877)
Purchase of premises and equipment		(1,027)		(2,195)
Purchase of restricted equity securities		-		(787)
Purchase of bank-owned life insurance contracts		(10,000)		-
Proceeds from sale of restricted equity securities		203		347
Proceeds from sale of other real estate owned and repossessions		5,258		2,534
Investment in tax credit partnerships		(7,907)		-
Net cash used in investing activities		(434,269)		(283,579)
FINANCING ACTIVITIES
Net increase in noninterest-bearing deposits		89,979		94,152
Net increase in interest-bearing deposits		317,666		171,482
Net increase in federal funds purchased		53,025		12,052
Proceeds from sale of common stock, net		1,416		-
Proceeds from exercise of stock options and warrants		2,632		1,021
Excess tax benefits from exercise of warrants		248		-
Repayment of other borrowings		-		(5,000)
Dividends paid on common stock		(12)		-
Dividends paid on preferred stock		(300)		(300)
Net cash provided by financing activities		464,654		273,407
Net increase in cash and cash equivalents		84,668		12,412
Cash and cash equivalents at beginning of year		180,745		242,933
Cash and cash equivalents at end of year	$	265,413	$	255,345
SUPPLEMENTAL DISCLOSURE
Cash paid for:
Interest	$	9,936	$	11,355
Income taxes		15,488		12,203
NONCASH TRANSACTIONS
Conversion of mandatorily convertible subordinated debentures	$	15,000	$	-
Transfers of loans from held for sale to held for investment		690		-
Other real estate acquired in settlement of loans		10,163		1,436
Internally financed sales of other real estate owned		-	$	24
Dividends declared		3,538		-

See Notes to Consolidated Financial Statements.

	7

SERVISFIRST BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2013

(Unaudited)

NOTE 1 - GENERAL

The accompanying consolidated financial statements in this report have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission, including Regulation S-X and the instructions for Form 10-Q, and have not been audited. These consolidated financial statements do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements. In the opinion of management, all adjustments necessary to present fairly the consolidated financial position and the consolidated results of operations for the interim periods have been made. All such adjustments are of a normal nature. The consolidated results of operations are not necessarily indicative of the consolidated results of operations which ServisFirst Bancshares, Inc. (the “Company”) may achieve for future interim periods or the entire year. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Form 10-K for the year ended December 31, 2012.

All reported amounts are in thousands except share and per share data.

NOTE 2 - CASH AND CASH EQUIVALENTS

Cash on hand, cash items in process of collection, amounts due from banks, and federal funds sold are included in cash and cash equivalents.

NOTE 3 - EARNINGS PER COMMON SHARE

Basic earnings per common share are computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share include the dilutive effect of additional potential common shares issuable under stock options and warrants.

	Three Months Ended September 30,				Nine Months Ended September 30,
	2013		2012		2013		2012
	(In Thousands, Except Shares and Per Share Data)
Earnings per common share
Weighted average common shares outstanding		7,019,069		6,005,242		6,768,678		5,977,590
Net income available to common stockholders	$	10,712	$	9,202	$	29,449	$	25,589
Basic earnings per common share	$	1.53	$	1.53	$	4.35	$	4.28

Weighted average common shares outstanding		7,019,069		6,005,242		6,768,678		5,977,590
Dilutive effects of assumed conversions and exercise of stock options and warrants		302,842		942,187		437,840		954,088
Weighted average common and dilutive potential common shares outstanding		7,321,911		6,947,429		7,206,518		6,931,678
Net income available to common stockholders	$	10,712	$	9,202	$	29,449	$	25,589
Effect of interest expense on convertible debt, net of tax and discretionary expenditures related to conversion		-		143		-		426
Net income available to common stockholders, adjusted for effect of debt conversion	$	10,712	$	9,345	$	29,449	$	26,015
Diluted earnings per common share	$	1.46	$	1.35	$	4.10	$	3.75

	8

NOTE 4 - SECURITIES

The amortized cost and fair value of available-for-sale and held-to-maturity securities at September 30, 2013 and December 31, 2012 are summarized as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized		Market
	Cost		Gain		Loss		Value
	(In Thousands)
September 30, 2013
Securities Available for Sale
U.S. Treasury and government sponsored agencies	$	27,762	$	844	$	-	$	28,606
Mortgage-backed securities		82,347		3,130		(67)		85,410
State and municipal securities		123,631		3,639		(725)		126,545
Corporate debt		15,717		132		(25)		15,824
Total		249,457		7,745		(817)		256,385
Securities Held to Maturity
Mortgage-backed securities		27,587		369		(1,073)		26,883
State and municipal securities		5,543		245		-		5,788
Total	$	33,130	$	614	$	(1,073)	$	32,671

December 31, 2012
Securities Available for Sale
U.S. Treasury and government sponsored agencies	$	27,360	$	1,026	$	-	$	28,386
Mortgage-backed securities		69,298		4,168		-		73,466
State and municipal securities		112,319		5,941		(83)		118,177
Corporate debt		13,677		210		(39)		13,848
Total		222,654		11,345		(122)		233,877
Securities Held to Maturity
Mortgage-backed securities		20,429		768		(40)		21,157
State and municipal securities		5,538		655		-		6,193
Total	$	25,967	$	1,423	$	(40)	$	27,350

	9

All mortgage-backed securities are with government-sponsored enterprises (GSEs) such as Federal National Mortgage Association, Government National Mortgage Association, Federal Home Loan Bank, and Federal Home Loan Mortgage Corporation.

The following table identifies, as of September 30, 2013 and December 31, 2012, the Company’s investment securities that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. At September 30, 2013, one of the Company’s 647 debt securities had been in an unrealized loss position for 12 or more months. The Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell the securities before recovery of their amortized cost, which may be maturity; accordingly, the Company does not consider these securities to be other-than-temporarily impaired at September 30, 2013. Further, the Company believes any deterioration in value of its current investment securities is attributable to changes in market interest rates and not credit quality of the issuer.

	Less Than Twelve Months				Twelve Months or More				Total
	Gross				Gross				Gross
	Unrealized				Unrealized				Unrealized
	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
	(In Thousands)
September 30, 2013
U.S. Treasury and government sponsored agencies	$	-	$	-	$	-	$	-	$	-	$	-
Mortgage-backed securities		(1,140)		25,668		-		-		(1,140)		25,668
State and municipal securities		(723)		32,803		(2)		175		(725)		32,978
Corporate debt		(25)		5,959		-		-		(25)		5,959
Total	$	(1,888)	$	64,430	$	(2)	$	175	$	(1,890)	$	64,605

December 31, 2012
U.S. Treasury and government sponsored agencies	$	-	$	-	$	-	$	-	$	-	$	-
Mortgage-backed securities		(40)		4,439		-		-		(40)		4,439
State and municipal securities		(83)		8,801		-		166		(83)		8,967
Corporate debt		(39)		4,882		-		-		(39)		4,882
Total	$	(162)	$	18,122	$	-	$	166	$	(162)	$	18,288

NOTE 5 – LOANS

The following table details the company’s loans at September 30, 2013 and December 31, 2012:

	September 30,			December 31,
	2013			2012
	(Dollars In Thousands)
Commercial, financial and agricultural	$	1,222,953		$	1,030,990
Real estate - construction		156,595			158,361
Real estate - mortgage:
Owner-occupied commercial		667,401			568,041
1-4 family mortgage		262,144			235,909
Other mortgage		379,490			323,599
Subtotal: Real estate - mortgage		1,309,035			1,127,549
Consumer		43,390			46,282
Total Loans		2,731,973			2,363,182
Less: Allowance for loan losses		(28,927)			(26,258)
Net Loans	$	2,703,046		$	2,336,924

Commercial, financial and agricultural		44.76	%		43.63	%
Real estate - construction		5.73	%		6.70	%
Real estate - mortgage:
Owner-occupied commercial		24.43	%		24.04	%
1-4 family mortgage		9.60	%		9.98	%
Other mortgage		13.89	%		13.69	%
Subtotal: Real estate - mortgage		47.92	%		47.71	%
Consumer		1.59	%		1.96	%
Total Loans		100.00	%		100.00	%

	10

The credit quality of the loan portfolio is summarized no less frequently than quarterly using categories similar to the standard asset classification system used by the federal banking agencies. The following table presents credit quality indicators for the loan loss portfolio segments and classes. These categories are utilized to develop the associated allowance for loan losses using historical losses adjusted for current economic conditions defined as follows:

	·	Pass – loans which are well protected by the current net worth and paying capacity of the obligor (or obligors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral.

	·	Special Mention – loans with potential weakness that may, if not reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.

	·	Substandard – loans that exhibit well-defined weakness or weaknesses that presently jeopardize debt repayment. These loans are characterized by the distinct possibility that the institution will sustain some loss if the weaknesses are not corrected.

	·	Doubtful – loans that have all the weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable.

Loans by credit quality indicator as of September 30, 2013 and December 31, 2012 were as follows:

			Special
September 30, 2013	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,183,674	$	33,412	$	5,867	$	-	$	1,222,953
Real estate - construction		142,093		3,492		11,010		-		156,595
Real estate - mortgage:
Owner-occupied commercial		653,524		9,463		4,414		-		667,401
1-4 family mortgage		248,425		1,393		12,326		-		262,144
Other mortgage		365,911		9,788		3,791		-		379,490
Total real estate mortgage		1,267,860		20,644		20,531		-		1,309,035
Consumer		42,615		51		724		-		43,390
Total	$	2,636,242	$	57,599	$	38,132	$	-	$	2,731,973

	11

			Special
December 31, 2012	Pass		Mention		Substandard		Doubtful		Total
	(In Thousands)
Commercial, financial and agricultural	$	1,004,043	$	19,172	$	7,775	$	-	$	1,030,990
Real estate - construction		121,168		22,771		14,422		-		158,361
Real estate - mortgage:
Owner-occupied commercial		555,536		4,142		8,363		-		568,041
1-4 family mortgage		223,152		6,379		6,378		-		235,909
Other mortgage		312,473		6,674		4,452		-		323,599
Total real estate mortgage		1,091,161		17,195		19,193		-		1,127,549
Consumer		46,076		71		135		-		46,282
Total	$	2,262,448	$	59,209	$	41,525	$	-	$	2,363,182

Loans by performance status as of September 30, 2013 and December 31, 2012 were as follows:

September 30, 2013	Performing		Nonperforming		Total

	(In Thousands)
Commercial, financial and agricultural	$	1,222,110	$	843	$	1,222,953
Real estate - construction		152,037		4,558		156,595
Real estate - mortgage:
Owner-occupied commercial		663,709		3,692		667,401
1-4 family mortgage		262,144		-		262,144
Other mortgage		379,253		237		379,490
Total real estate mortgage		1,305,106		3,929		1,309,035
Consumer		43,324		66		43,390
Total	$	2,722,577	$	9,396	$	2,731,973

December 31, 2012	Performing		Nonperforming		Total

	(In Thousands)
Commercial, financial and agricultural	$	1,030,714	$	276	$	1,030,990
Real estate - construction		151,901		6,460		158,361
Real estate - mortgage:
Owner-occupied commercial		565,255		2,786		568,041
1-4 family mortgage		235,456		453		235,909
Other mortgage		323,359		240		323,599
Total real estate mortgage		1,124,070		3,479		1,127,549
Consumer		46,139		143		46,282
Total	$	2,352,824	$	10,358	$	2,363,182

	12

Loans by past due status as of September 30, 2013 and December 31, 2012 were as follows:

September 30, 2013	Past Due Status (Accruing Loans)
							Total Past
	30-59 Days		60-89 Days		90+ Days		Due		Non-Accrual		Current		Total Loans
	(In Thousands)
Commercial, financial and agricultural	$	82	$	971	$	-	$	1,053	$	843	$	1,221,057	$	1,222,953
Real estate - construction		-		1,510		-		1,510		4,558		150,527		156,595
Real estate - mortgage:
Owner-occupied commercial		-		-		-		-		3,692		663,709		667,401
1-4 family mortgage		349		5,148		-		5,497		-		256,647		262,144
Other mortgage		-		-		-		-		237		379,253		379,490
Total real estate - mortgage		349		5,148		-		5,497		3,929		1,299,609		1,309,035
Consumer		56		-		-		56		66		43,268		43,390
Total	$	487	$	7,629	$	-	$	8,116	$	9,396	$	2,714,461	$	2,731,973

December 31, 2012

Past Due Status (Accruing Loans)