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LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)
 6 Months Ended
Jun. 30, 2019
Receivables [Abstract]  
Schedule of Loan Portfolio Excluding Loans Held for Sale
The Company’s loan portfolio consists of the following categories of loans as of the dates presented (dollars in thousands).
 
 
June 30, 2019
 
December 31, 2018
Construction and development
 
$
167,232

 
$
157,946

1-4 Family
 
305,512

 
287,137

Multifamily
 
56,081

 
50,501

Farmland
 
25,203

 
21,356

Commercial real estate
 
677,556

 
627,004

Total mortgage loans on real estate
 
1,231,584

 
1,143,944

Commercial and industrial
 
276,902

 
210,924

Consumer
 
34,822

 
45,957

Total loans
 
$
1,543,308

 
$
1,400,825
Schedule of Aging Analysis of Loans
The table below provides an analysis of the aging of loans as of the dates presented (dollars in thousands).
 
 
June 30, 2019
 
 
Accruing
 
 
 
 
 
 
 
 
 
 
Current
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days or More
Past Due
 
Nonaccrual
 
Total Past Due & Nonaccrual
 
Acquired Impaired Loans
 
Total Loans
Construction and development
 
$
166,349

 
$
27

 
$
450

 
$
—

 
$
406

 
$
883

 
$
—

 
$
167,232

1-4 Family
 
302,408

 
566

 
559

 
—

 
1,507

 
2,632

 
472

 
305,512

Multifamily
 
56,081

 
—

 
—

 
—

 
—

 
—

 
—

 
56,081

Farmland
 
22,939

 
—

 
—

 
—

 
—

 
—

 
2,264

 
25,203

Commercial real estate
 
674,289

 
44

 
870

 
—

 
803

 
1,717

 
1,550

 
677,556

Total mortgage loans on real estate
 
1,222,066

 
637

 
1,879

 
—

 
2,716

 
5,232

 
4,286

 
1,231,584

Commercial and industrial
 
276,616

 
247

 
21

 
—

 
18

 
286

 
—

 
276,902

Consumer
 
33,734

 
278

 
71

 
—

 
697

 
1,046

 
42

 
34,822

Total loans
 
$
1,532,416

 
$
1,162

 
$
1,971

 
$
—

 
$
3,431

 
$
6,564

 
$
4,328

 
$
1,543,308

 
 
 
December 31, 2018
 
 
Accruing
 
 
 
 
 
 
 
 
 
 
Current
 
30-59 Days Past Due
 
60-89 Days Past Due
 
90 Days or More
Past Due
 
Nonaccrual
 
Total Past Due & Nonaccrual
 
Acquired Impaired Loans
 
Total Loans
Construction and development
 
$
157,202

 
$
175

 
$
—

 
$
—

 
$
556

 
$
731

 
$
13

 
$
157,946

1-4 Family
 
284,205

 
1,101

 
41

 
—

 
1,300

 
2,442

 
490

 
287,137

Multifamily
 
50,392

 
109

 
—

 
—

 
—

 
109

 
—

 
50,501

Farmland
 
19,092

 
—

 
—

 
—

 
—

 
—

 
2,264

 
21,356

Commercial real estate
 
624,244

 
66

 
—

 
—

 
683

 
749

 
2,011

 
627,004

Total mortgage loans on real estate
 
1,135,135

 
1,451

 
41

 
—

 
2,539

 
4,031

 
4,778

 
1,143,944

Commercial and industrial
 
209,399

 
221

 
45

 
—

 
64

 
330

 
1,195

 
210,924

Consumer
 
44,493

 
375

 
51

 
—

 
994

 
1,420

 
44

 
45,957

Total loans
 
$
1,389,027

 
$
2,047

 
$
137

 
$
—

 
$
3,597

 
$
5,781

 
$
6,017

 
$
1,400,825
Summary of the Company's Loan Portfolio by Category and Credit Quality Indicator
The table below presents the Company’s loan portfolio by category and credit quality indicator as of the dates presented (dollars in thousands).
 
 
June 30, 2019
 
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
Construction and development
 
$
166,713

 
$
—

 
$
439

 
$
80

 
$
167,232

1-4 Family
 
303,700

 
—

 
1,740

 
72

 
305,512

Multifamily
 
56,081

 
—

 
—

 
—

 
56,081

Farmland
 
22,939

 
—

 
2,264

 
—

 
25,203

Commercial real estate
 
676,753

 
—

 
803

 
—

 
677,556

Total mortgage loans on real estate
 
1,226,186

 
—

 
5,246

 
152

 
1,231,584

Commercial and industrial
 
273,905

 
—

 
2,997

 
—

 
276,902

Consumer
 
34,544

 
221

 
57

 
—

 
34,822

Total loans
 
$
1,534,635

 
$
221

 
$
8,300

 
$
152

 
$
1,543,308

 
 
 
December 31, 2018
 
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
Construction and development
 
$
157,360

 
$
—

 
$
586

 
$
—

 
$
157,946

1-4 Family
 
285,692

 
69

 
1,303

 
73

 
287,137

Multifamily
 
50,501

 
—

 
—

 
—

 
50,501

Farmland
 
19,092

 
—

 
2,264

 
—

 
21,356

Commercial real estate
 
625,670

 
—

 
1,334

 
—

 
627,004

Total mortgage loans on real estate
 
1,138,315

 
69

 
5,487

 
73

 
1,143,944

Commercial and industrial
 
207,941

 
—

 
2,983

 
—

 
210,924

Consumer
 
44,798

 
167

 
992

 
—

 
45,957

Total loans
 
$
1,391,054

 
$
236

 
$
9,462

 
$
73

 
$
1,400,825

 
Schedule of Aggregate Amount of Loans to Related Parties
The table below shows the aggregate principal balance of loans to such related parties as of the dates presented (dollars in thousands).
 
 
June 30, 2019
 
December 31, 2018
Balance, beginning of period
 
$
93,021

 
$
31,153

New loans
 
3,981

 
79,639

Repayments and changes in relationship
 
(7,745
)
 
(17,771
)
Balance, end of period
 
$
89,257

 
$
93,021
Schedule of Allowance for Loan Losses
The table below shows a summary of the activity in the allowance for loan losses for the three and six months ended June 30, 2019 and 2018 (dollars in thousands).
 
 
Three months ended June 30,
 
Six months ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Balance, beginning of period
 
$
9,642

 
$
8,130

 
$
9,454

 
$
7,891

Provision for loan losses
 
369

 
567

 
634

 
1,192

Loans charged off
 
(120
)
 
(291
)
 
(224
)
 
(737
)
Recoveries
 
33

 
45

 
60

 
105

Balance, end of period
 
$
9,924

 
$
8,451

 
$
9,924

 
$
8,451
Summary of Allowance for Loan Losses
The following tables outline the activity in the allowance for loan losses by collateral type for the three and six months ended June 30, 2019 and 2018, and show both the allowances and portfolio balances for loans individually and collectively evaluated for impairment as of June 30, 2019 and 2018 (dollars in thousands).
 
 
Three months ended June 30, 2019
 
 
Construction & Development
 
Farmland
 
1-4 Family
 
Multifamily
 
Commercial Real Estate
 
Commercial &
Industrial
 
Consumer
 
Total
Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
1,094

 
$
101

 
$
1,511

 
$
380

 
$
4,226

 
$
1,673

 
$
657

 
$
9,642

Provision
 
34

 
(4
)
 
(77
)
 
(9
)
 
53

 
424

 
(52
)
 
369

Charge-offs
 
(51
)
 
—

 
—

 
—

 
—

 
—

 
(69
)
 
(120
)
Recoveries
 
15

 
—

 
5

 
—

 
—

 
1

 
12

 
33

Ending balance
 
$
1,092

 
$
97

 
$
1,439

 
$
371

 
$
4,279

 
$
2,098

 
$
548

 
$
9,924

 
 
Three months ended June 30, 2018
 
 
Construction & Development
 
Farmland
 
1-4 Family
 
Multifamily
 
Commercial Real Estate
 
Commercial &
Industrial
 
Consumer
 
Total
Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
974

 
$
63

 
$
1,283

 
$
359

 
$
3,608

 
$
935

 
$
908

 
$
8,130

Provision
 
58

 
3

 
81

 
(40
)
 
209

 
246

 
10

 
567

Charge-offs
 
(16
)
 
—

 
(28
)
 
—

 
—

 
(141
)
 
(106
)
 
(291
)
Recoveries
 
2

 
—

 
3

 
—

 
—

 
8

 
32

 
45

Ending balance
 
$
1,018

 
$
66

 
$
1,339

 
$
319

 
$
3,817

 
$
1,048

 
$
844

 
$
8,451




 
 
Six months ended June 30, 2019
 
 
Construction & Development
 
Farmland
 
1-4 Family
 
Multifamily
 
Commercial Real Estate
 
Commercial & Industrial
 
Consumer
 
Total
Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
1,038

 
$
81

 
$
1,465

 
$
331

 
$
4,182

 
$
1,641

 
$
716

 
$
9,454

Provision
 
89

 
16

 
(33
)
 
40

 
97

 
445

 
(20
)
 
634

Charge-offs
 
(51
)
 
—

 
—

 
—

 
—

 
—

 
(173
)
 
(224
)
Recoveries
 
16

 
—

 
7

 
—

 
—

 
12

 
25

 
60

Ending balance
 
$
1,092

 
$
97

 
$
1,439

 
$
371

 
$
4,279

 
$
2,098

 
$
548

 
$
9,924

Ending allowance balance for loans individually evaluated for impairment
 
$
66

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
185

 
$
251

Ending allowance balance for loans acquired with deteriorated credit quality
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Ending allowance balance for loans collectively evaluated for impairment
 
$
1,026

 
$
97

 
$
1,439

 
$
371

 
$
4,279

 
$
2,098

 
$
363

 
$
9,673

Loans receivable:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance of loans individually evaluated for impairment
 
$
346

 
$
—

 
$
1,312

 
$
—

 
$
878

 
$
6

 
$
658

 
$
3,200

Balance of loans acquired with deteriorated credit quality
 
—

 
2,264

 
472

 
—

 
1,550

 
—

 
42

 
4,328

Balance of loans collectively evaluated for impairment
 
166,886

 
22,939

 
303,728

 
56,081

 
675,128

 
276,896

 
34,122

 
1,535,780

Total period-end balance
 
$
167,232

 
$
25,203

 
$
305,512

 
$
56,081

 
$
677,556

 
$
276,902

 
$
34,822

 
$
1,543,308

 
 
 
Six months ended June 30, 2018
 
 
Construction & Development
 
Farmland
 
1-4 Family
 
Multifamily
 
Commercial Real Estate
 
Commercial & Industrial
 
Consumer
 
Total
Allowance for loan losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Beginning balance
 
$
945

 
$
60

 
$
1,287

 
$
332

 
$
3,599

 
$
693

 
$
975

 
$
7,891

Provision
 
81

 
6

 
81

 
(13
)
 
218

 
765

 
54

 
1,192

Charge-offs
 
(16
)
 
—

 
(35
)
 
—

 
—

 
(451
)
 
(235
)
 
(737
)
Recoveries
 
8

 
—

 
6

 
—

 
—

 
41

 
50

 
105

Ending balance
 
$
1,018

 
$
66

 
$
1,339

 
$
319

 
$
3,817

 
$
1,048

 
$
844

 
$
8,451

Ending allowance balance for loans individually evaluated for impairment
 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
—

 
$
296

 
$
296

Ending allowance balance for loans acquired with deteriorated credit quality
 
—

 
—

 
—

 
—

 
—

 
—

 
—

 
—

Ending allowance balance for loans collectively evaluated for impairment
 
$
1,018

 
$
66

 
$
1,339

 
$
319

 
$
3,817

 
$
1,048

 
$
548

 
$
8,155

Loans receivable:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Balance of loans individually evaluated for impairment
 
$
230

 
$
—

 
$
1,248

 
$
—

 
$
711

 
$
89

 
$
1,010

 
$
3,288

Balance of loans acquired with deteriorated credit quality
 
52

 
2,264

 
1,194

 
820

 
2,057

 
1,217

 
—

 
7,604

Balance of loans collectively evaluated for impairment
 
165,113

 
17,880

 
277,893

 
48,018

 
577,498

 
144,248

 
58,769

 
1,289,419

Total period-end balance
 
$
165,395

 
$
20,144

 
$
280,335

 
$
48,838

 
$
580,266

 
$
145,554

 
$
59,779

 
$
1,300,311
Schedule of Aging Analysis of Loans
The following tables contain information on the Company’s impaired loans, which include troubled debt restructurings (“TDRs”), discussed in more detail below, and nonaccrual loans individually evaluated for impairment for purposes of determining the allowance for loan losses. The average balances are calculated based on the month-end balances of the loans during the period reported (dollars in thousands).
 
 
June 30, 2019
 
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
With no related allowance recorded:
 
 

 
 

 
 

Construction and development
 
$
266

 
$
285

 
$
—

1-4 Family
 
1,312

 
1,315

 
—

Commercial real estate
 
878

 
908

 
—

Total mortgage loans on real estate
 
2,456

 
2,508

 
—

Commercial and industrial
 
6

 
7

 
—

Consumer
 
164

 
199

 
—

Total
 
2,626

 
2,714

 
—

 
 
 
 
 
 
 
With related allowance recorded:
 
 

 
 

 
 

Construction and development
 
80

 
136

 
66

Total mortgage loans on real estate
 
80

 
136

 
66

Consumer
 
494

 
538

 
185

Total
 
574

 
674

 
251

 
 
 
 
 
 
 
Total loans:
 
 

 
 

 
 

Construction and development
 
346

 
421

 
66

1-4 Family
 
1,312

 
1,315

 
—

Commercial real estate
 
878

 
908

 
—

Total mortgage loans on real estate
 
2,536

 
2,644

 
66

Commercial and industrial
 
6

 
7

 
—

Consumer
 
658

 
737

 
185

Total
 
$
3,200

 
$
3,388

 
$
251


 
 
December 31, 2018
 
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
With no related allowance recorded:
 
 

 
 

 
 

Construction and development
 
$
339

 
$
359

 
$
—

1-4 Family
 
1,177

 
1,180

 
—

Commercial real estate
 
761

 
777

 
—

Total mortgage loans on real estate
 
2,277

 
2,316

 
—

Commercial and industrial
 
76

 
77

 
 
Consumer
 
215

 
237

 
—

Total
 
2,568

 
2,630

 
—

 
 
 
 
 
 
 
With related allowance recorded:
 
 

 
 

 
 

Consumer
 
701

 
738

 
236

Total
 
701

 
738

 
236

 
 
 
 
 
 
 
Total loans:
 
 

 
 

 
 

Construction and development
 
339

 
359

 
—

1-4 Family
 
1,177

 
1,180

 
—

Commercial real estate
 
761

 
777

 
—

Total mortgage loans on real estate
 
2,277

 
2,316

 
—

Commercial and industrial
 
76

 
77

 
—

Consumer
 
916

 
975

 
236

Total
 
$
3,269

 
$
3,368

 
$
236
Schedule Of Average Recorded Investment And Interest Income Recognized For TDRs
Presented in the tables below is the average recorded investment of the impaired loans and the related amount of interest income recognized during the time within the period that the loans were impaired. The average balances are calculated based on the month-end balances of the loans during the periods reported (dollars in thousands).
 
 
Three months ended June 30,
 
 
2019
 
2018
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With no related allowance recorded:
 
 

 
 

 
 

 
 

Construction and development
 
$
265

 
$
3

 
$
182

 
$
2

1-4 Family
 
1,281

 
7

 
1,209

 
10

Multifamily
 
36

 
—

 
—

 
—

Commercial real estate
 
1,198

 
2

 
869

 
8

Total mortgage loans on real estate
 
2,780

 
12

 
2,260

 
20

Commercial and industrial
 
7

 
—

 
215

 
—

Consumer
 
188

 
—

 
241

 
—

Total
 
2,975

 
12

 
2,716

 
20

 
 
 
 
 
 
 
 
 
With related allowance recorded:
 
 

 
 

 
 

 
 

Construction and development
 
114

 
—

 
—

 
—

Total mortgage loans on real estate
 
114

 
—

 
—

 
—

Commercial and industrial
 
—

 
—

 
—

 
—

Consumer
 
479

 
—

 
785

 
—

Total
 
593

 
—

 
785

 
—

 
 
 
 
 
 
 
 
 
Total loans:
 
 

 
 

 
 

 
 

Construction and development
 
379

 
3

 
182

 
2

1-4 Family
 
1,281

 
7

 
1,209

 
10

Multifamily
 
36

 
—

 
—

 
—

Commercial real estate
 
1,198

 
2

 
869

 
8

Total mortgage loans on real estate
 
2,894

 
12

 
2,260

 
20

Commercial and industrial
 
7

 
—

 
215

 
—

Consumer
 
667

 
—

 
1,026

 
—

Total
 
$
3,568

 
$
12

 
$
3,501

 
$
20

 
 
Six months ended June 30,
 
 
2019
 
2018
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With no related allowance recorded:
 
 

 
 

 
 

 
 

Construction and development
 
$
264

 
$
8

 
$
171

 
$
4

1-4 Family
 
1,257

 
17

 
1,210

 
21

Multifamily
 
72

 
—

 
—

 
—

Commercial real estate
 
1,079

 
4

 
1,029

 
16

Total mortgage loans on real estate
 
2,672

 
29

 
2,410

 
41

Commercial and industrial
 
14

 
—

 
480

 
—

Consumer
 
258

 
—

 
296

 
—

Total
 
2,944

 
29

 
3,186

 
41

 
 
 
 
 
 
 
 
 
With related allowance recorded:
 
 
 
 
 
 
 
 
Construction and development
 
124

 
—

 
—

 
—

Total mortgage loans on real estate
 
124

 
—

 
—

 
—

Commercial and industrial
 
—

 
—

 
—

 
—

Consumer
 
489

 
—

 
785

 
—

Total
 
613

 
—

 
785

 
—

 
 
 
 
 
 
 
 
 
Total loans:
 
 
 
 
 
 
 
 
Construction and development
 
388

 
8

 
171

 
4

Multifamily
 
72

 
—

 
—

 
—

1-4 Family
 
1,257

 
17

 
1,210

 
21

Commercial real estate
 
1,079

 
4

 
1,029

 
16

Total mortgage loans on real estate
 
2,796

 
29

 
2,410

 
41

Commercial and industrial
 
14

 
—

 
480

 
—

Consumer
 
747

 
—

 
1,081

 
—

Total
 
3,557

 
29

 
3,971

 
41