Loans (Tables)

9 Months Ended

Sep. 30, 2016

Receivables [Abstract]

Composition of Net Loans

The composition of net loans (in thousands) at September 30, 2016 and December 31, 2015 was as follows:

	September 30, 2016			December 31, 2015
Real Estate:
Land Development and Construction	$	23,346		$	33,133
Farmland		19,902			23,293
1-4 Family Mortgages		100,301			104,046
Commercial Real Estate		191,956			180,691
Total Real Estate Loans		335,505			341,163
Business Loans:
Commercial and Industrial Loans		54,208			61,425
Farm Production and Other Farm Loans		887			1,055
Total Business Loans		55,095			62,480
Consumer Loans:
Credit Cards		1,003			1,061
Other Consumer Loans		19,102			25,564
Total Consumer Loans		20,105			26,625
Total Gross Loans		410,705			430,268
Unearned Income		(687	)		(686	)
Allowance for Loan Losses		(4,113	)		(6,474	)
Loans, net	$	405,905		$	423,108

Period-End Non-Accrual Loans, Segregated by Class

Period-end, non-accrual loans (in thousands), segregated by class, were as follows:

	September 30, 2016		December 31, 2015
Real Estate:
Land Development and Construction	$	139	$	75
Farmland		537		158
1-4 Family Mortgages		2,145		2,464
Commercial Real Estate		6,827		11,662
Total Real Estate Loans		9,648		14,359
Business Loans:
Commercial and Industrial Loans		55		28
Total Business Loans		55		28
Consumer Loans:
Other Consumer Loans		31		36
Total Consumer Loans		31		36
Total Nonaccrual Loans	$	9,734	$	14,423

Aging Analysis of Past Due Loans, Segregated by Class

An aging analysis of past due loans (in thousands), segregated by class, as of September 30, 2016, was as follows:

	Loans 30-89 Days Past Due		Loans 90 or more Days Past Due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or more Days Past Due
Real Estate:
Land Development and Construction	$	199	$	78	$	277	$	23,069	$	23,346	$	—
Farmland		233		407		640		19,262		19,902		—
1-4 Family Mortgages		6,326		1,720		8,046		92,255		100,301		1,067
Commercial Real Estate		1,022		1,923		2,945		189,011		191,956		—
Total Real Estate Loans		7,780		4,128		11,908		323,597		335,505		1,067
Business Loans:
Commercial and Industrial Loans		292		77		369		53,839		54,208		22
Farm Production and Other Farm Loans		11		—		11		876		887		—
Total Business Loans		303		77		380		54,715		55,095		22
Consumer Loans:
Credit Cards		9		2		11		992		1,003		2
Other Consumer Loans		751		—		751		18,351		19,102		—
Total Consumer Loans		760		2		762		19,343		20,105		2
Total Loans	$	8,843	$	4,207	$	13,050	$	397,655	$	410,705	$	1,091

An aging analysis of past due loans (in thousands), segregated by class, as of December 31, 2015 was as follows:

	Loans 30-89 Days Past Due		Loans 90 or more Days Past Due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or more Days Past Due
Real Estate:
Land Development and Construction	$	1,126	$	21	$	1,147	$	31,986	$	33,133	$	21
Farmland		947		4		951		22,342		23,293		4
1-4 Family Mortgages		5,131		573		5,704		98,342		104,046		—
Commercial Real Estate		4,015		6,748		10,763		169,928		180,691		—
Total Real Estate Loans		11,219		7,346		18,565		322,598		341,163		25
Business Loans:
Commercial and Industrial Loans		245		12		257		61,168		61,425		12
Farm Production and Other Farm Loans		12		—		12		1,043		1,055		—
Total Business Loans		257		12		269		62,211		62,480		12
Consumer Loans:
Credit Cards		12		9		21		1,040		1,061		9
Other Consumer Loans		1,017		30		1,047		24,517		25,564		30
Total Consumer Loans		1,029		39		1,068		25,557		26,625		39
Total Loans	$	12,505	$	7,397	$	19,902	$	410,366	$	430,268	$	76

Impaired Loans, Segregated by Class

Impaired loans (in thousands) as of September 30, 2016, segregated by class, were as follows:

	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Allowance
Real Estate:
Land Development and Construction	$	—	$	—	$	—	$	—	$	—	$	—
Farmland		163		—		163		163		28		14
1-4 Family Mortgages		2,587		—		2,587		2,587		354		2,764
Commercial Real Estate		5,771		—		5,771		5,771		466		7,383
Total Real Estate Loans		8,521		—		8,521		8,521		848		10,161
Business Loans:
Commercial and Industrial Loans		—		—		—		—		—		—
Farm Production and Other Farm Loans		—		—		—		—		—		—
Total Business Loans		—		—		—		—		—		—
Consumer Loans:
Credit Cards		—		—		—		—		—		—
Other Consumer Loans		—		—		—		—		—		—
Total Consumer Loans		—		—		—		—		—		—
Total Loans	$	8,521	$	—	$	8,521	$	8,521	$	848	$	10,161

	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Allowance
Real Estate:
Land Development and Construction	$	75	$	—	$	75	$	75	$	75	$	85
Farmland		679		69		610		679		54		739
1-4 Family Mortgages		3,103		1,754		1,349		3,103		183		2,829
Commercial Real Estate		11,662		1,409		10,253		11,662		2,685		10,552
Total Real Estate Loans		15,519		3,232		12,287		15,519		2,997		14,205
Business Loans:
Commercial and Industrial Loans		28		28		—		28		—		49
Farm Production and Other Farm Loans		—		—		—		—		—		—
Total Business Loans		28		28		—		28		—		49
Consumer Loans:
Credit Cards		—		—		—		—		—		—
Other Consumer Loans		36		36		—		36		—		78
Total Consumer Loans		36		36		—		36		—		78
Total Loans	$	15,583	$	3,296	$	12,287	$	15,583	$	2,997	$	14,332

Troubled Debt Restructurings Segregated by Class

The following table presents troubled debt restructurings (in thousands, except for number of loans), segregated by class:

September 30, 2016	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial real estate		3	$	4,871	$	3,467
Total		3	$	4,871	$	3,467

December 31, 2015	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial real estate		3	$	4,871	$	3,858
Total		3	$	4,871	$	3,858

Changes in Troubled Debt Restructurings

Changes in the Corporation’s troubled debt restructurings (in thousands, except for number of loans) are set forth in the table below:

	Number of Loans		Recorded Investment
Totals at January 1, 2016		3	$	3,858
Reductions due to:
Principal paydowns				(391	)
Total at September 30, 2016		3	$	3,467

Detailed Amount of Gross Loans Segregated by Loan Grade and Class

The following table details the amount of gross loans (in thousands), segregated by loan grade and class, as of September 30, 2016:

	Satisfactory 1,2,3,4		Special Mention 5,6		Substandard 7		Doubtful 8		Loss 9		Total Loans
Real Estate:
Land Development and Construction	$	22,402	$	190	$	754	$	—	$	—	$	23,346
Farmland		17,732		925		1,245		—		—		19,902
1-4 Family Mortgages		86,404		2,964		10,933		—		—		100,301
Commercial Real Estate		180,676		2,619		8,661		—		—		191,956
Total Real Estate Loans		307,214		6,698		21,593		—		—		335,505
Business Loans:
Commercial and Industrial Loans		53,260		767		181		—		—		54,208
Farm Production and Other Farm Loans		887		—		—		—		—		887
Total Business Loans		54,147		767		181		—		—		55,095
Consumer Loans:
Credit Cards		1,001		—		2		—		—		1,003
Other Consumer Loans		18,859		106		137		—		—		19,102
Total Consumer Loans		19,860		106		139		—		—		20,105
Total Loans	$	381,221	$	7,571	$	21,913	$	—	$	—	$	410,705

The following table details the amount of gross loans (in thousands) segregated by loan grade and class, as of December 31, 2015:

	Satisfactory 1,2,3,4		Special Mention 5,6		Substandard 7		Doubtful 8		Loss 9		Total Loans
Real Estate:
Land Development and Construction	$	31,889	$	202	$	1,042	$	—	$	—	$	33,133
Farmland		21,084		989		1,220		—		—		23,293
1-4 Family Mortgages		88,425		4,874		10,747		—		—		104,046
Commercial Real Estate		155,898		12,286		12,507		—		—		180,691
Total Real Estate Loans		297,296		18,351		25,516		—		—		341,163
Business Loans:
Commercial and Industrial Loans		60,918		377		130		—		—		61,425
Farm Production and Other Farm Loans		1,055		—		—		—		—		1,055
Total Business Loans		61,973		377		130		—		—		62,480
Consumer Loans:
Credit Cards		1,052		—		9		—		—		1,061
Other Consumer Loans		24,666		111		777		7		3		25,564
Total Consumer Loans		25,718		111		786		7		3		26,625
Total Loans	$	384,987	$	18,839	$	26,432	$	7	$	3	$	430,268

Detailed Activity in Allowance for Possible Loan Losses by Portfolio Segment

The following table details activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2016:

September 30, 2016	Real Estate		Business Loans			Consumer			Total
Beginning Balance, January 1, 2016	$	5,238,895	$	643,248		$	591,560		$	6,473,703
Provision for possible loan losses		214,491		(93,733	)		(23,290	)		97,468
Chargeoffs		2,508,459		5,428			49,317			2,563,204
Recoveries		32,424		14,381			58,670			105,475
Net chargeoffs		2,476,035		(8,953	)		(9,353	)		2,457,729
Ending Balance	$	2,977,351	$	558,468		$	577,623		$	4,113,442
Period end allowance allocated to:
Loans individually evaluated for impairment	$	848,091	$	—		$	—		$	848,091
Loans collectively evaluated for impairment		2,129,260		558,468			577,623			3,265,351
Ending Balance, September 30, 2016	$	2,977,351	$	558,468		$	577,623		$	4,113,442

The following table details activity in the allowance for loan losses by portfolio segment for the nine months ended September 30, 2015:

September 30, 2015	Real Estate		Business Loans			Consumer		Total
Beginning Balance, January 1, 2015	$	5,202,151	$	873,815		$	466,360	$	6,542,326
Provision for possible loan losses		338,668		(81,216	)		150,246		407,698
Chargeoffs		152,503		—			111,897		264,400
Recoveries		67,843		11,545			63,770		143,158
Net chargeoffs		84,660		(11,545	)		48,127		121,242
Ending Balance	$	5,456,159	$	804,144		$	568,479	$	6,828,782
Period end allowance allocated to:
Loans individually evaluated for impairment	$	2,767,962	$	25,000		$	—	$	2,792,962
Loans collectively evaluated for impairment		2,688,197		779,144			568,479		4,035,820
Ending Balance, September 30, 2015	$	5,456,159	$	804,144		$	568,479	$	6,828,782

Recorded Investment in Loans Related to Balance in Allowance for Possible Loan Losses by Portfolio Segment

The Corporation’s recorded investment in loans as of September 30, 2016 and December 31, 2015 related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of the Corporation’s impairment methodology was as follows (in thousands):

September 30, 2016	Real Estate		Business Loans		Consumer		Total
Loans individually evaluated for specific impairment	$	8,521	$	—	$	—	$	8,521
Loans collectively evaluated for general impairment		326,984		55,095		20,105		402,184
	$	335,505	$	55,095	$	20,105	$	410,705
December 31, 2015	Real Estate		Business Loans		Consumer		Total
Loans individually evaluated for specific impairment	$	15,519	$	28	$	36	$	15,583
Loans collectively evaluated for general impairment		325,644		62,452		26,589		414,685
	$	341,163	$	62,480	$	26,625	$	430,268