Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2019

ALL by Loans Evaluated for Impairment Individually and Collectively by Type

The following table presents the ALL by loans evaluated for impairment individually and collectively by loan type as of the dates stated.

September 30, 2019	Mortgage Loans on Real Estate		Commercial and Industrial		Consumer		Total
Allowance for loan losses applicable to:
Loans individually evaluated for impairment	$	750	$	141	$	116	$	1,007
Loans collectively evaluated for impairment		4,331		1,511		646		6,488
Purchased credit-impaired loans		—		—		—		—
Total allowance for loan losses	$	5,081	$	1,652	$	762	$	7,495
Loan balances applicable to:
Loans individually evaluated for impairment	$	6,302	$	2,689	$	116	$	9,107
Loans collectively evaluated for impairment		720,103		183,592		14,312		918,007
Purchased credit-impaired loans		4,875		—		43		4,918
Total loans	$	731,280	$	186,281	$	14,471	$	932,032
December 31, 2018
Allowance for loan losses applicable to:
Loans individually evaluated for impairment	$	1,036	$	—	$	121	$	1,157
Loans collectively evaluated for impairment		3,931		1,374		1,440		6,745
Purchased credit-impaired loans		—		—		—		—
Total allowance for loan losses	$	4,967	$	1,374	$	1,561	$	7,902
Loan balances applicable to:
Loans individually evaluated for impairment	$	7,485	$	—	$	121	$	7,606
Loans collectively evaluated for impairment		701,235		164,608		23,573		889,416
Purchased credit-impaired loans		5,277		—		46		5,323
Total loans	$	713,997	$	164,608	$	23,740	$	902,345

ALL by Loan Type

The following tables present an analysis of the change in the ALL by loan type for the periods presented.

For the Three Months Ended September 30, 2019	Mortgage Loans on Real Estate			Commercial and Industrial			Consumer			Total
Beginning Balance	$	5,052		$	1,537		$	890		$	7,479
Charge-offs		(209	)		—			(345	)		(554	)
Recoveries		24			1			50			75
Provision		214			114			167			495
Ending Balance	$	5,081		$	1,652		$	762		$	7,495

For the Three Months Ended September 30, 2018	Mortgage Loans on Real Estate			Commercial and Industrial			Consumer			Total
Beginning Balance	$	4,244		$	944		$	1,925		$	7,113
Charge-offs		(54	)		—			(418	)		(472	)
Recoveries		60			—			77			137
Provision		157			186			166			509
Ending Balance	$	4,407		$	1,130		$	1,750		$	7,287

For the Nine Months Ended September 30, 2019	Mortgage Loans on Real Estate			Commercial and Industrial			Consumer			Total
Beginning Balance	$	4,967		$	1,374		$	1,561		$	7,902
Charge-offs		(368	)		—			(1,163	)		(1,531	)
Recoveries		67			1			185			253
Provision		415			277			179			871
Ending Balance	$	5,081		$	1,652		$	762		$	7,495

For the Nine Months Ended September 30, 2018	Mortgage Loans on Real Estate			Commercial and Industrial			Consumer			Total
Beginning Balance	$	3,864		$	878		$	3,028		$	7,770
Charge-offs		(168	)		(116	)		(1,095	)		(1,379	)
Recoveries		103			1			311			415
Provision (recovery of)		608			367			(494	)		481
Ending Balance	$	4,407		$	1,130		$	1,750		$	7,287

Company's Recorded Investment and Borrowers' Unpaid Principal Balances for Impaired Loans, Excluding PCI Loans, with Associated ALL Amount

The following table presents the Company’s recorded investment and the borrowers’ unpaid principal balances for impaired loans, excluding PCI loans, with the associated ALL amount, if applicable, by loan type as of the dates stated.

	As of September 30, 2019						As of December 31, 2018
	Recorded Investment		Borrowers’ Unpaid Principal Balance		Related Allowance		Recorded Investment		Borrowers’ Unpaid Principal Balance		Related Allowance
With no related allowance:
Construction, land and land development	$	324	$	395	$	—	$	335	$	406	$	—
Commercial mortgages (non-owner occupied)		—		—		—		386		386		—
Commercial mortgages (owner occupied)		425		425		—		—		—		—
Residential first mortgages		1,027		1,027		—		—		—		—
Residential revolving and junior mortgages		—		—		—		1,028		1,028		—
Commercial and industrial		—		—		—		—		—		—
Consumer		—		—		—		—		—		—
Total impaired loans with no related allowance		1,776		1,847		—		1,749		1,820		—
With an allowance recorded:
Construction, land and land development		173		173		38		275		275		132
Commercial mortgages (non-owner occupied)		433		433		33		443		443		18
Commercial mortgages (owner occupied)		1,052		1,052		53		1,069		1,069		57
Residential first mortgages		2,785		2,785		543		3,447		3,447		565
Residential revolving and junior mortgages		83		83		83		502		502		264
Commercial and industrial		2,689		2,689		141		—		—		—
Consumer		116		116		116		121		121		121
Total impaired loans with allowance recorded		7,331		7,331		1,007		5,857		5,857		1,157
Total impaired loans:
Construction, land and land development		497		568		38		610		681		132
Commercial mortgages (non-owner occupied)		433		433		33		829		829		18
Commercial mortgages (owner occupied)		1,477		1,477		53		1,069		1,069		57
Residential first mortgages		3,812		3,812		543		3,447		3,447		565
Residential revolving and junior mortgages		83		83		83		1,530		1,530		264
Commercial and industrial		2,689		2,689		141		—		—		—
Consumer		116		116		116		121		121		121
Total impaired loans	$	9,107	$	9,178	$	1,007	$	7,606	$	7,677	$	1,157

The following table presents the average recorded investment and interest income recognized for impaired loans, excluding PCI loans, by loan type for the periods presented.

	For the Three Months Ended								For the Nine Months Ended
	September 30, 2019				September 30, 2018				September 30, 2019				September 30, 2018
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance:
Construction, land and land development	$	326	$	1	$	93	$	—	$	330	$	4	$	147	$	1
Commercial mortgages (non-owner occupied)		—		—		—		—		—		—		—		—
Commercial mortgages (owner occupied)		427		6		1,013		8		405		20		985		29
Residential first mortgages		1,039		14		1,472		21		1,113		43		1,282		62
Residential revolving and junior mortgages		—		—		416		1		—		—		415		4
Commercial and industrial		—		—		—		—		—		—		—		—
Consumer		—		—		—		3		—		—		—		—
Total impaired loans with no allowance		1,792		21		2,994		33		1,848		67		2,829		96
With an allowance recorded:
Construction, land and land development		175		3		524		8		224		18		512		24
Commercial mortgages (non-owner occupied)		434		3		445		11		436		30		223		11
Commercial mortgages (owner occupied)		1,055		14		935		13		1,061		42		945		39
Residential first mortgages		3,039		34		2,394		32		3,181		93		2,277		94
Residential revolving and junior mortgages		128		2		130		2		397		7		125		7
Commercial and industrial		1,344		30		—		—		672		30		—		—
Consumer		118		2		—		—		119		6		—		8
Total impaired loans with allowance recorded		6,293		88		4,428		66		6,090		226		4,082		183
Total impaired loans:
Construction, land and land development		501		4		617		8		554		22		659		25
Commercial mortgages (non-owner occupied)		434		3		445		11		436		30		223		11
Commercial mortgages (owner occupied)		1,482		20		1,948		21		1,466		62		1,930		68
Residential first mortgages		4,078		48		3,866		53		4,294		136		3,559		156
Residential revolving and junior mortgages		128		2		546		3		397		7		540		11
Commercial and industrial		1,344		30		—		—		672		30		—		—
Consumer		118		2		—		3		119		6		—		8
Total impaired loans	$	8,085	$	109	$	7,422	$	99	$	7,938	$	293	$	6,911	$	279

Reconciliation of Nonaccrual Loans to Impaired Loans

The following table presents a reconciliation of nonaccrual loans to impaired loans as of the dates stated.

	September 30, 2019			December 31, 2018
Nonaccrual loans	$	7,194		$	5,206
Nonaccrual loans collectively evaluated for impairment		(1,601	)		(2,040	)
Nonaccrual impaired loans		5,593			3,166
TDRs on accrual		3,514			4,115
Other impaired loans on accrual		—			325
Total impaired loans	$	9,107		$	7,606

Summary of Troubled Debt Restructurings

TDRs are considered impaired loans and are individually evaluated for impairment for the ALL. The following tables present by loan type information related to loans modified as TDRs for the periods presented.

	For the Three Months Ended						For the Three Months Ended
	September 30, 2019						September 30, 2018
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial Mortgages (Owner Occupied) (1)		—	$	—	$	—		1	$	644	$	672
Residential first mortgages (2)		—	$	—	$	—		3	$	628	$	631

(1)	Modification in the 2018 period was interest capitalized to principal.

(2)	Modifications in the 2018 period consisted of one rate reduction and two extensions of loan terms.

	For the Nine Months Ended						For the Nine Months Ended
	September 30, 2019						September 30, 2018
	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial Mortgages (Owner Occupied) (1)		1	$	48	$	52		1	$	644	$	672
Residential first mortgages (2)		—	$	—	$	—		7	$	1,218	$	1,222

(1)	Modification in the 2019 period was an extension of the loan term and in the 2018 period was interest capitalized to principal.

(2)	Modifications in the 2018 period were five extensions of loan terms, a principal forbearance, and a rate reduction.

Summary of Roll Forward of Accruing and Nonaccrual TDRs

The following table presents a roll-forward of accruing and nonaccrual TDRs for the period presented.

	Accruing			Nonaccrual			Total
Balance as of December 31, 2018	$	4,115		$	1,477		$	5,592
Charge-offs		—			—			—
Payments and other adjustments		(584	)		(122	)		(706	)
New TDR designation		52			—			52
Release TDR designation		—			—			—
Transfer		(69	)		69			—
Balance as of September 30, 2019	$	3,514		$	1,424		$	4,938