LOAN PERFORMANCE

12 Months Ended

Dec. 31, 2020

LOAN PERFORMANCE

LOAN PERFORMANCE

NOTE 5: LOAN PERFORMANCE

The following is an aging analysis of the Company’s past due loans, segregated by loan class, as of the dates shown below:

					90 Days or								90 Days
	30 to 59 Days		60 to 89 Days		Greater		Total		Total				Past Due and
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		Current Loans		Total Loans		Still Accruing
December 31, 2020
Commercial and industrial	$	51	$	2,055	$	2,269	$	4,375	$	738,582	$	742,957	$	—
Real estate:
Commercial real estate		—		—		—		—		1,041,998		1,041,998		—
Construction and development		—		—		—		—		522,705		522,705		—
1-4 family residential		1,357		19		106		1,482		238,390		239,872		—
Multi-family residential		—		—		—		—		258,346		258,346		—
Consumer		5		—		—		5		33,879		33,884		—
Agriculture		50		—		—		50		8,620		8,670		—
Other		—		—		—		—		88,238		88,238		—
Total loans	$	1,463	$	2,074	$	2,375	$	5,912	$	2,930,758	$	2,936,670	$	—
December 31, 2019
Commercial and industrial	$	664	$	31	$	240	$	935	$	526,672	$	527,607	$	—
Real estate:
Commercial real estate		865		—		—		865		899,881		900,746		—
Construction and development		—		532		—		532		527,280		527,812		—
1-4 family residential		499		—		—		499		279,693		280,192		—
Multi-family residential		—		—		—		—		277,209		277,209		—
Consumer		43		—		—		43		36,739		36,782		—
Agriculture		—		—		—		—		9,812		9,812		—
Other		—		—		—		—		86,513		86,513		—
Total loans	$	2,071	$	563	$	240	$	2,874	$	2,643,799	$	2,646,673	$	—

The Company places loans on nonaccrual status because of delinquency or because collection of principal or interest is doubtful. Nonaccrual loans, segregated by loan class, as of the dates shown below were as follows:

	December 31,
(Dollars in thousands)	2020		2019
Commercial and industrial	$	12,588	$	596
Real estate:
Commercial real estate		10,665		67
Construction and development		238		—
1-4 family residential		526		314
Total nonaccrual loans	$	24,017	$	977

Interest income that would have been earned under the original terms of the nonaccrual loans was $804,000, $57,000 and $163,000 for the years ended December 31, 2020, 2019 and 2018, respectively.

Loans restructured due to the borrower’s financial difficulties, or troubled debt restructurings, which remain outstanding as of the end of the periods indicated below were as follows:

				Post-modification Recorded Investment
										Extended Maturity,
		Pre-modification						Extended		Restructured
		Outstanding						Maturity and		Payments
	Number	Recorded		Restructured		Extended		Restructured		and Adjusted
(Dollars in thousands)	of Loans	Investment		Payments		Maturity		Payments		Interest Rate
December 31, 2020
Commercial and industrial	17	$	10,343	$	7,475	$	—	$	2,637	$	231
Real estate:
Commercial real estate	9		18,867		18,867		—		—		—
1-4 family residential	5		1,629		1,651		—		—		—
Construction and development	5		12,905		12,648		—		—		257
Total	36	$	43,744	$	40,641	$	—	$	2,637	$	488
December 31, 2019
Commercial and industrial	3	$	202	$	39	$	—	$	163	$	—
Real estate:
1-4 family residential	1		111		—		—		—		115
Total	4	$	313	$	39	$	—	$	163	$	115

Loan modifications related to a loan refinancing or restructuring other than a troubled debt restructuring are accounted for as a new loan if the terms provided to the borrower are at least as favorable to the Company as terms for comparable loans to other borrowers with similar collection risks that is not a loan refinancing or restructuring. If the loan refinancing or restructuring does not meet this condition or if only minor modifications are made to the original loan contract, it is not considered a new loan and is considered a renewal or modification of the original contract. Restructured or modified loans are not considered past due if they are performing under the terms of the modified or restructured payment schedule.

In support of customers impacted by the COVID-19 pandemic, the Company provided contract modifications through the deferral of principal and/or interest payments, or COVID-19 deferrals. The deferral periods granted primarily ranged from one to six-months, with the majority of the deferrals involving three-month arrangements. The troubled debt restructurings for the year ended December 31, 2020 in the table above include 34 loans totaling $43.1 million that were subject to COVID-19 deferrals. As of December 31, 2020, the Company had 21 loans totaling $38.4 million still subject to COVID-19 related deferrals, which included 10 loans totaling $22.4 million that were restructured as troubled debt restructurings.

A troubled debt restructuring is considered in default when a payment in accordance with the terms of the restructuring is more than 30 days past due. All loans restructured in troubled debt restructurings are individually evaluated based on the underlying collateral for the determination of an ACL. See Note 6: Allowance for Credit Losses for further discussions on specific reserves.

Troubled debt restructuring during the twelve months ended indicated below with payment defaults were as follows:

	December 31, 2020			December 31, 2019
	Number			Number
(Dollars in thousands)	of Loans	Balance		of Loans	Balance
Commercial and industrial	3	$	1,983	—	$	—
Commercial real estate	3		3,370	—		—
1-4 family residential	4		12,270	—		—
Construction and development	2		94	1		111
Total	12	$	17,717	1	$	111

Loans individually evaluated for credit losses were as follows for the dates indicated below:

	Troubled Debt Restructurings
(Dollars in thousands)	Accruing		Non-Accrual		Total		Other Non-Accrual		Other Accruing		Total Loans Individually Evaluated
December 31, 2020
Commercial and industrial	$	2,594	$	8,228	$	10,822	$	4,360	$	746	$	15,928
Real estate:
Commercial real estate		8,103		10,601		18,704		64		—		18,768
Construction and development		12,648		238		12,886		—		—		12,886
1-4 family residential		1,684		106		1,790		420		—		2,210
Other		7,851		—		7,851		—		—		7,851
Total	$	32,880	$	19,173	$	52,053	$	4,844	$	746	$	57,643
December 31, 2019
Commercial and industrial	$	397	$	282	$	679	$	314	$	6	$	999
Real estate:
Commercial real estate		1,337		—		1,337		67		—		1,404
1-4 family residential		54		111		165		203		3,283		3,651
Consumer		—		—		—		—		210		210
Other		6,653		—		6,653		—		—		6,653
Total	$	8,441	$	393	$	8,834	$	584	$	3,499	$	12,917

At December 31, 2020 and 2019, the Company had an outstanding commitment to potentially fund $593,000 and $2.0 million on a line of credit previously restructured.