Note 5 - Loans and Allowance for Loan Losses

6 Months Ended

Jun. 30, 2017

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

Note

– Loans and Allowance for Loan Losses

The Company’s loan portfolio was comprised of the following at:

	June 30, 2017						December 31, 2016
	PCI loans		All other loans		Total		PCI loans		All other loans		Total
Commercial:
Commercial and industrial	$	2,688	$	452,264	$	454,952	$	3,920	$	383,481	$	387,401
Commercial real estate (CRE) - owner-occupied		12,166		349,047		361,213		15,401		352,152		367,553
CRE - investor income producing		29,022		772,676		801,698		30,700		712,407		743,107
AC&D - 1-4 family construction		-		95,236		95,236		-		82,707		82,707
AC&D - lots, land & development		7,443		85,318		92,761		8,074		97,288		105,362
AC&D - CRE		-		150,170		150,170		-		194,732		194,732
Other commercial		1,934		13,778		15,712		1,962		10,938		12,900
Total commercial loans		53,253		1,918,489		1,971,742		60,057		1,833,705		1,893,762

Consumer:
Residential mortgage		18,765		265,146		283,911		21,472		239,049		260,521
Home equity lines of credit (HELOC)		1,066		172,774		173,840		1,088		175,711		176,799
Residential construction		1,655		50,567		52,222		2,470		56,590		59,060
Other loans to individuals		335		16,798		17,133		368		18,537		18,905
Total consumer loans		21,821		505,285		527,106		25,398		489,887		515,285
Total loans		75,074		2,423,774		2,498,848		85,455		2,323,592		2,409,047
Deferred costs		-		3,272		3,272		-		3,139		3,139
Total loans, net of deferred costs	$	75,074	$	2,427,046	$	2,502,120	$	85,455	$	2,326,731	$	2,412,186

June 30, 2017

and

December 31, 2016,

the Company had sold participations in loans aggregating

$27.5

million and

$20.2

million, respectively, to other financial institutions on a nonrecourse basis. Collections on loan participations and remittances to participating institutions conform to customary banking practices.

The Bank accepts residential mortgage loan applications and funds loans of qualified borrowers. Funded loans are sold with limited recourse to investors under the terms of pre-existing commitments. The Bank executes all of its loan sales agreements under best efforts contracts with investors. From time to time, the Company

may

choose to hold certain mortgage loans on balance sheet. The Company serviced residential mortgage loans for the benefit of others totaling

$2.3

million as of both

June 30, 2017

and

December 31, 2016.

Loans sold are

family residential mortgages originated by the Company and sold to various other financial institutions. The Company’s exposure to credit loss in the event of nonperformance by the other party to the loan is represented by the contractual notional amount of the loan. Since only a few of the loans have ever been returned to the Company, the amount of total loans sold does

not

necessarily represent future cash requirements. Total loans sold in the

three

and

six

months ended

June 30, 2017

were

$21.6

million and

$53.0

million, respectively. Total loans sold in the

three

and

six

months ended

June 30, 2016

were

$26.0

million and

$43.6

million, respectively

June 30, 2017

the carrying value of loans pledged as collateral to the FHLB on borrowings and to the Federal Reserve totaled

$979

million compared to

$1.0

billion at

December 31, 2016.

Concentrations of Credit

Loans are primarily made within the Company’s operating footprint of North Carolina, South Carolina, Virginia and Georgia. Real estate loans can be affected by the condition of the local real estate market. Commercial and industrial loans can be affected by the local economic conditions. The commercial loan portfolio has concentrations in business loans secured by real estate and real estate development loans. Primary concentrations in the

consumer loan portfolio include home equity lines of credit and residential mortgages. At

June 30, 2017

and

December 31, 2016,

the Company had

loans outstanding with foreign entities.

Allowance for Loan Losses

The following table presents, by portfolio segment, the activity in the allowance for loan losses for the

three

and

six

months ended

June 30, 2017

and

2016.

	Commercial and industrial			Shared National Credits		CRE - owner- occupied			CRE - investor income producing			AC&D - 1-4 family construction		AC&D - lots, land & development			AC&D - CRE			Other commercial			Residential mortgage			HELOC Jr. Lien*			HELOC Sr. Lien			Residential construction			Other loans to individuals			Total

For the three months ended June 30, 2017
Allowance for Loan Losses:
Balance, beginning of period	$	3,093		$	-	$	1,348		$	2,844		$	595	$	513		$	1,353		$	77		$	984		$	1,513		$	-		$	358		$	155		$	12,833
Provision for loan losses		(435	)		556		6			33			82		(56	)		(186	)		15			124			(730	)		577			6			8			-
Charge-offs		(96	)		-		-			(23	)		-		-			-			-			(130	)		(31	)		-			(20	)		(28	)		(328	)
Recoveries		11			-		-			94			2		23			-			-			33			14			-			2			18			198
Net (charge-offs) recoveries		(85	)		-		-			71			2		23			-			-			(97	)		(17	)		-			(18	)		(10	)		(131	)
Total Allowance for Loan Losses	$	2,573		$	556	$	1,354		$	2,948		$	679	$	480		$	1,167		$	92		$	1,011		$	766		$	577		$	346		$	153		$	12,702


For the six months ended June 30, 2017
Allowance for Loan Losses:
Balance, beginning of period	$	2,720		$	-	$	1,286		$	2,583		$	567	$	526		$	1,484		$	126		$	841		$	-		$	1,391		$	435		$	166		$	12,125
Provision for loan losses		(4	)		556		(26	)		300			85		(108	)		(317	)		(36	)		258			864			(814	)		(73	)		(7	)		678
Charge-offs		(158	)		-		39			(36	)		-		-			-			-			(130	)		(133	)		-			(20	)		(38	)		(476	)
Recoveries		15			-		55			101			27		62			-			2			42			35			-			4			32			375
Net (charge-offs) recoveries		(143	)		-		93			65			27		62			-			2			(88	)		(98	)		-			(16	)		(6	)		(102	)
Total Allowance for Loan Losses	$	2,573		$	556	$	1,354		$	2,948		$	679	$	480		$	1,167		$	92		$	1,011		$	766		$	577		$	346		$	153		$	12,702

*Prior to the quarter ended

June 30, 2017,

HELOCs were evalauted collectively for purposes of the allowance for loan and lease losses. Beginning in

second

quarter of

2017,

HELOCs were evaluated for purposes of the allowance calculation based on the sequence of lien associated with the underlying collateral of the loan.

	Commercial and industrial			Shared National Credits		CRE - owner- occupied		CRE - investor income producing		AC&D - 1-4 family construction		AC&D - lots, land & development			AC&D - CRE		Other commercial			Residential mortgage			HELOC Jr. Lien*		HELOC Sr. Lien			Residential construction			Other loans to individuals			Total

For the three months ended June 30, 2016
Allowance for Loan Losses:
Balance, beginning of period	$	2,047		$	-	$	1,108	$	2,217	$	381	$	398		$	808	$	67		$	724		$	-	$	1,393		$	449		$	240		$	9,832
Provision for loan losses		66			-		123		348		91		(70	)		28		3			104			-		130			(12	)		71			882
Charge-offs		(1	)		-		-		-		-		-			-		-			(15	)		-		(56	)		-			(21	)		(94	)
Recoveries		15			-		-		7		13		121			-		-			8			-		66			2			19			252
Net (charge-offs) recoveries		14			-		-		7		13		121			-		-			(7	)		-		10			2			(2	)		158
Total Allowance for Loan Losses	$	2,127		$	-	$	1,231	$	2,572	$	485	$	449		$	836	$	70		$	821		$	-	$	1,533		$	439		$	309		$	10,872


For the six months ended June 30, 2016
Allowance for Loan Losses:
Balance, beginning of period	$	1,821		$	-	$	1,135	$	2,099	$	247	$	278		$	679	$	69		$	672		$	-	$	1,337		$	461		$	266		$	9,064
Provision for loan losses		283			-		96		451		221		16			157		(37	)		129			-		95			(39	)		66			1,438
Charge-offs		(16	)		-		-		-		-		-			-		-			(32	)		-		(56	)		(11	)		(61	)		(176	)
Recoveries		39			-		-		22		17		155			-		38			52			-		157			28			38			546
Net (charge-offs) recoveries		23			-		-		22		17		155			-		38			20			-		101			17			(23	)		370
Total Allowance for Loan Losses	$	2,127		$	-	$	1,231	$	2,572	$	485	$	449		$	836	$	70		$	821		$	-	$	1,533		$	439		$	309		$	10,872

*Prior to

2017,

HELOCs were evalauted collectively for purposes of the allowance for loan and lease losses. Beginning in

2017,

HELOCs were evaluated for purposes of the allowance calculation based on the sequence of lien associated with the underlying collateral of the loan.

PARK STERLING CORPORATION

Notes to Condensed Consolidated Financial Statements (Unaudited)

(table amounts in thousands, except share data and per share amounts)

The following table presents, by portfolio segment, the balance in the allowance for loan losses disaggregated on the basis of the Company’s impairment measurement method and the related recorded investment in loans at

June 30, 2017

and

December 31, 2016.

	Commercial and industrial		Shared National Credits		CRE - owner- occupied		CRE - investor income producing		AC&D - 1-4 family construction		AC&D - lots, land & development		AC&D - CRE		Other commercial		Residential mortgage		HELOC Jr. Lien*		HELOC Sr. Lien		Residential construction		Other loans to individuals		Total

At June 30, 2017
Allowance for Loan Losses:
Individually evaluated for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	222	$	-	$	20	$	-	$	242
Collectively evaluated for impairment		2,573		556		1,354		2,948		679		480		1,167		92		1,011		544		577		326		153		12,460
		2,573		556		1,354		2,948		679		480		1,167		92		1,011		766		577		346		153		12,702
Purchased credit-impaired		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Total	$	2,573	$	556	$	1,354	$	2,948	$	679	$	480	$	1,167	$	92	$	1,011	$	766	$	577	$	346	$	153	$	12,702

Recorded Investment in Loans:
Individually evaluated for impairment	$	460	$	-	$	434	$	1,874	$	-	$	564	$	-	$	210	$	2,161	$	2,473	$	-	$	221	$	-	$	8,398
Collectively evaluated for impairment		451,708		96		348,613		770,802		95,236		84,754		150,170		13,568		262,985		86,681		83,620		50,346		16,798		2,415,376
		452,168		96		349,047		772,676		95,236		85,318		150,170		13,778		265,146		89,154		83,620		50,567		16,798		2,423,774
Purchased credit-impaired		2,688		-		12,166		29,022		-		7,443		-		1,934		18,765		1,066		-		1,655		335		75,074
Total	$	454,856	$	96	$	361,213	$	801,698	$	95,236	$	92,761	$	150,170	$	15,712	$	283,911	$	90,220	$	83,620	$	52,222	$	17,133	$	2,498,848

At December 31, 2016
Allowance for Loan Losses:
Individually evaluated for impairment	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	178	$	20	$	-	$	198
Collectively evaluated for impairment		2,720		-		1,286		2,583		567		526		1,484		126		841		-		1,213		415		166		11,927
		2,720		-		1,286		2,583		567		526		1,484		126		841		-		1,391		435		166		12,125
Purchased credit-impaired		-		-		-		-		-		-		-		-		-		-		-		-		-		-
Total	$	2,720	$	-	$	1,286	$	2,583	$	567	$	526	$	1,484	$	126	$	841	$	-	$	1,391	$	435	$	166	$	12,125
Recorded Investment in Loans:
Individually evaluated for impairment	$	-	$	-	$	1,006	$	1,951	$	-	$	622	$	-	$	211	$	2,014	$	-	$	2,392	$	243	$	-	$	8,439
Collectively evaluated for impairment		383,481		-		351,146		710,456		82,707		96,666		194,732		10,727		237,035		-		173,319		56,347		18,537		2,315,153
		383,481		-		352,152		712,407		82,707		97,288		194,732		10,938		239,049		-		175,711		56,590		18,537		2,323,592
Purchased credit-impaired		3,920		-		15,401		30,700		-		8,074		-		1,962		21,472		-		1,088		2,470		368		85,455
Total	$	387,401	$	-	$	367,553	$	743,107	$	82,707	$	105,362	$	194,732	$	12,900	$	260,521	$	-	$	176,799	$	59,060	$	18,905	$	2,409,047

*Prior to

2017,

HELOCs were evalauted collectively for purposes of the allowance for loan and lease losses. Beginning in

2017,

HELOCs were evaluated for purposes of the allowance calculation based on the sequence of lien associated with the underlying collateral of the loan.

The Company’s loan loss allowance methodology includes

four

components, as described below:

)

Specific Reserve Component

. Specific reserves represent the current impairment estimate on specific loans, for which it is probable that the Company will be unable to collect all amounts due according to contractual terms based on current information and events. Impairment measurement reflects only a deterioration of credit quality and

not

changes in market rates that

may

cause a change in the fair value of the impaired loan. The amount of impairment

may

be measured in

one

three

ways, including (i) calculating the present value of expected future cash flows, discounted at the loan’s interest rate implicit in the original document and deducting estimated selling costs, if any; (ii) observing quoted market prices for identical or similar instruments traded in active markets, or employing model-based valuation techniques for which all significant assumptions are observable in the market; and (iii) determining the fair value of collateral, which is utilized for both collateral-dependent loans and for loans when foreclosure is probable.

)

Quantitative Reserve Component

. Quantitative reserves represent the current loss contingency estimate on pools of loans, which is an estimate of the amount for which it is probable that the Company will be unable to collect all amounts due on homogeneous groups of loans according to contractual terms should

one

or more events occur, excluding those loans specifically identified above.

The historical loss experience of the Company is collected quarterly by evaluating internal loss data. The estimated historical loss rates are grouped by loan product type. The Company utilizes average historical losses to represent management’s estimate of losses inherent in a particular portfolio. The historical look back period is estimated by loan type, and the Company applies the appropriate historical loss period which best reflects the inherent loss in the applicable portfolio considering prevailing market conditions. The historic look back periods utilized by management for all loan types was

quarters at both

June 30, 2017

and

December 31, 2016.

On a semi-annual basis, the Company establishes a minimum historical loss rate based on historic loss data published by the Federal Reserve. As noted in paragraph

vii below, a qualitative reserve is established when the actual quantitative historical loss rate is less than the established minimum reserve.

The Company also performs a quantitative calculation on the acquired purchased performing loan portfolio. There is

allowance for loan losses established at the acquisition date for purchased performing loans. The historical loss experience discussed above is applied to the purchased performing loan portfolio and the result is compared to the remaining fair value mark on this portfolio. A provision for loan losses is recorded for any further deterioration in these loans subsequent to the acquisition. This analysis indicated the need for an allowance for loan losses of

$272

thousand and

$257

thousand for the purchased performing portfolio at

June 30, 2017

and

December 31, 2016,

respectively. The remaining mark on the purchased performing loan portfolio was

$2.6

million and

$3.4

million at

June 30, 2017

and

December 31, 2016,

respectively. Approximately

$1.7

million of the remaining mark at

June 30, 2017

on the purchased performing loan portfolio was associated with the First Capital merger.

)

Qualitative Reserve Component

. Qualitative reserves represent an estimate of the amount for which it is probable that environmental or other relevant factors will cause the aforementioned loss contingency estimate to differ from the Company’s historical loss experience or other assumptions. These factors include portfolio trends, portfolio concentrations, economic and market conditions, changes in lending practices, changes in loan review systems, geographical considerations, minimum loss factor and other factors. Each of the factors, except other factors, can range from

0.00%

(

not

applicable) to

0.15%

(very high). Other factors are reviewed on a situational basis and are adjusted in

five

basis point increments, up or down, with a maximum positive factor of

1.00%

and a negative factor of

1.00%.

Details of the

eight

environmental factors for inclusion in the allowance methodology are as follows:

Portfolio trends, which

may

relate to such factors as type or level of loan origination activity, changes in asset quality (i.e., past due, special mention, non performing) and/or changes in collateral values;

ii.

Portfolio concentrations, which

may

relate to individual borrowers and/or guarantors, geographic regions, industry sectors, loan types and/or other factors;

iii.

Economic and market trends, which

may

relate to trends and/or levels of gross domestic production, unemployment, bankruptcies, foreclosures, housing starts, housing prices, equity prices, competitor activities and/or other factors;

iv.

Changes in lending practices, which

may

relate to changes in credit policies, procedures, systems or staff;

Changes in loan review system, which

may

introduce variation in loan grading, collateral adequacy and valuation and impairment classification;

vi.

Geographical considerations, which

may

relate to economic and/or environmental issues unique to a geographical area including but

not

limited to elimination of a major employer, natural disaster, or long-term states of emergency;

vii.

Minimum loss factor, pursuant to which, based on the review of historic loss rates as reported by the Federal Reserve (the “Net Charge-Off Rates on Loans and Leases for Banks

Not

Among Top

100

in Size-

Not

Seasonally Adjusted), a minimum loss rate is established and reviewed semi-annually for each loan type and an incremental factor, as calculated by taking the difference of the established minimum loss and the calculated historical loss for the trailing

quarters, is applied; and

viii.

Other factors, which is intended to capture uncertainty into portfolio loss estimates, including situations of a rapidly improving or declining economic environment, significant recovery or loss periods, as well as environmental factors

not

specifically identified above.

In addition, qualitative reserves on purchased performing loans are based on the Company’s judgment around the timing difference expected to occur between accretion of the fair market value credit adjustment and realization of actual loan losses.

)

Reserve

PCI loans

In determining the acquisition date fair value of PCI loans, and in subsequent accounting, the Company generally aggregates PCI loans into pools of loans with common risk characteristics. Expected cash flows at the acquisition date in excess of the fair value of loans are recorded as interest income over the life of the loans using a level yield method if the timing and amount of the future cash flows of the pool is reasonably estimable. Subsequent to the acquisition date, significant increases in cash flows over those expected at the acquisition date are recognized as interest income prospectively. Decreases in expected cash flows after the acquisition date are recognized by recording a provision (an allowance for loan losses). In pools where impairment has already been recognized, an increase in cash flows will result in a reversal of prior impairment. Management analyzes these acquired loan pools using various assessments of risk to determine and calculate an expected loss. Trends are reviewed in terms of traditional credit metrics such as accrual status, past due status, and weighted-average risk grade of the loans within each of the accounting pools. In addition, the relationship between the change in the unpaid principal balance and change in the fair value mark is assessed to correlate the directional consistency of the expected loss for each pool.

There were

outstanding reserves on PCI loans as of

June 30, 2017

and

December 31, 2016.

The Company evaluates and estimates off-balance sheet credit exposure at the same time it estimates credit losses for loans by a similar process. These estimated credit losses are

not

recorded as part of the allowance for loan losses, but are recorded to a separate liability account by a charge to income, if material. Loan commitments, unused lines of credit and standby letters of credit make up the off-balance sheet items reviewed for potential credit losses. At both

June 30, 2017

and

December 31, 2016,

$125

thousand was recorded as an other liability for off-balance sheet credit exposure.

Credit Quality Indicators

The Company uses several credit quality indicators to manage credit risk in an ongoing manner. The Company's primary credit quality indicator is an internal credit risk rating system that categorizes loans into pass, special mention, or classified categories. Credit risk ratings are applied individually to loans that have significant or unique credit characteristics that benefit from a case-by-case evaluation. These are typically loans to businesses or individuals in the classes that comprise the commercial portfolio segment. Groups of loans that are underwritten and structured using standardized criteria and characteristics, such as statistical models (e.g., credit scoring or payment performance), are typically risk rated and monitored collectively. These are typically loans to individuals in the classes that comprise the consumer portfolio segment.

The following are the definitions of the Company's credit quality indicators:

Pass:	Loans in classes that comprise the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. PCI loans that were recorded at estimated fair value on the acquisition date are generally assigned a “pass” loan grade because their net financial statement value is based on the present value of expected cash flows. Management believes there is a low likelihood of loss related to those loans that are considered pass.

Special Mention:	Loans in classes that comprise the commercial and consumer portfolio segments that have potential weaknesses that deserve management's close attention. If not addressed, these potential weaknesses may result in deterioration of the repayment prospects for the loan. Management believes there is a moderate likelihood of some loss related to those loans that are considered special mention.

Classified:	Loans in the classes that comprise the commercial and consumer portfolio segments that are inadequately protected by the sound worth and paying capacity of the borrower or of the collateral pledged, if any. Management believes that there is a distinct possibility that the Company will sustain some loss if the deficiencies related to classified loans are not corrected in a timely manner.

The Company's credit quality indicators are periodically updated on a case-by-case basis. The following tables present the recorded investment in the Company's loans as of

June 30, 2017

and

December 31, 2016,

by loan class and by credit quality indicator.

	As of June 30, 2017
	Commercial and industrial		CRE - owner- occupied		CRE - investor income producing		AC&D - 1-4 family construction		AC&D - lots, land & development		AC&D - CRE		Other commercial		Total Commercial
Pass	$	447,136	$	351,049	$	794,561	$	95,236	$	91,415	$	150,170	$	13,655	$	1,943,222
Special mention		7,094		6,533		3,878		-		938		-		1,731		20,174
Classified		722		3,631		3,259		-		408		-		326		8,346
Total	$	454,952	$	361,213	$	801,698	$	95,236	$	92,761	$	150,170	$	15,712	$	1,971,742

	Residential mortgage		HELOC		Residential construction		Other loans to individuals		Total Consumer
Pass	$	275,473	$	165,280	$	51,887	$	16,954	$	509,594
Special mention		5,012		6,247		31		33		11,323
Classified		3,426		2,313		304		146		6,189
Total	$	283,911	$	173,840	$	52,222	$	17,133	$	527,106

Total Loans									$	2,498,848

	As of December 31, 2016
	Commercial and industrial		CRE - owner- occupied		CRE - investor income producing		AC&D - 1-4 family construction		AC&D - lots, land & development		AC&D - CRE		Other commercial		Total Commercial
Pass	$	378,592	$	356,214	$	735,698	$	82,707	$	102,146	$	194,732	$	12,569	$	1,862,658
Special mention		7,229		7,779		3,276		-		2,727		-		-		21,011
Classified		1,580		3,560		4,133		-		489		-		331		10,093
Total	$	387,401	$	367,553	$	743,107	$	82,707	$	105,362	$	194,732	$	12,900	$	1,893,762

	Residential mortgage		HELOC		Residential construction		Other loans to individuals		Total Consumer
Pass	$	252,934	$	168,460	$	58,486	$	18,711	$	498,591
Special mention		4,707		5,732		312		14		10,765
Classified		2,880		2,607		262		180		5,929
Total	$	260,521	$	176,799	$	59,060	$	18,905	$	515,285

Total Loans									$	2,409,047

Aging Analysis of Accruing and Non-Accruing Loans

–

The Company considers a loan to be past due or delinquent when the terms of the contractual obligation are

not

met by the borrower. PCI loans are included as a single category in the table below as management believes, regardless of their age, there is a lower likelihood of aggregate loss related to these loan pools. Additionally, PCI loans are discounted to allow for the accretion of income on a level yield basis over the life of the loan based on expected cash flows. Regardless of payment status, the associated discount on these loan pools results in income recognition. The following presents, by class, an aging analysis of the Company’s accruing and non-accruing loans as of

June 30, 2017

and

December 31, 2016.

	30-59		60-89		Past Due
	Days		Days		90 Days		PCI
	Past Due		Past Due		or More		Loans		Current		Total Loans

As of June 30, 2017
Commercial:
Commercial and industrial	$	10	$	-	$	463	$	2,688	$	451,791	$	454,952
CRE - owner-occupied		-		373		463		12,166		348,211		361,213
CRE - investor income producing		239		172		408		29,022		771,857		801,698
AC&D - 1-4 family construction		-		-		-		-		95,236		95,236
AC&D - lots, land & development		-		-		-		7,443		85,318		92,761
AC&D - CRE		-		-		-		-		150,170		150,170
Other commercial		-		-		211		1,934		13,567		15,712
Total commercial loans		249		545		1,545		53,253		1,916,150		1,971,742

Consumer:
Residential mortgage		1		440		2,218		18,765		262,487		283,911
HELOC		442		191		463		1,066		171,678		173,840
Residential construction		23		-		222		1,655		50,322		52,222
Other loans to individuals		25		88		59		335		16,626		17,133
Total consumer loans		491		719		2,962		21,821		501,113		527,106
Total loans	$	740	$	1,264	$	4,507	$	75,074	$	2,417,263	$	2,498,848

As of December 31, 2016
Commercial:
Commercial and industrial	$	587	$	7	$	167	$	3,920	$	382,720	$	387,401
CRE - owner-occupied		-		-		385		15,401		351,767		367,553
CRE - investor income producing		169		1,391		1,826		30,700		709,021		743,107
AC&D - 1-4 family construction		-		-		-		-		82,707		82,707
AC&D - lots, land & development		-		-		-		8,074		97,288		105,362
AC&D - CRE		-		-		-		-		194,732		194,732
Other commercial		-		-		211		1,962		10,727		12,900
Total commercial loans		756		1,398		2,589		60,057		1,828,962		1,893,762

Consumer:
Residential mortgage		328		69		2,940		21,472		235,712		260,521
HELOC		80		1,176		886		1,088		173,569		176,799
Residential construction		8		335		509		2,470		55,738		59,060
Other loans to individuals		46

Park Sterling Corp 10-Q