XML 110 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
Loans and Related Allowance for Loan Losses
 12 Months Ended
Dec. 31, 2013
Loans and Related Allowance for Credit Losses [Abstract]  
Loans and Related Allowance for Loan Losses

 

 

6.  Loans and Related Allowance for Loan Losses

 

The following table presents the classes of the loan portfolio summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system as of December 31, 2013 and December 31, 2012 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2013

Pass

 

Special Mention

 

Substandard

 

Doubtful

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial and agricultural

$
20,388 

 

$
5,658 

 

$
235 

 

$

 -

 

$
26,281 

Real estate - commercial

 
56,867 

 

 
11,706 

 

 
5,620 

 

 
278 

 

 
74,471 

Real estate - construction

 
15,803 

 

 
292 

 

 
1,754 

 

 
1,832 

 

 
19,681 

Real estate - mortgage

 
130,706 

 

 
3,995 

 

 
4,272 

 

 
1,486 

 

 
140,459 

Obligations of states and political subdivisions

 
12,674 

 

 
28 

 

 

 

 

 

 -

 

 
12,702 

Personal

 
4,204 

 

 

 -

 

 

 

 

 

 -

 

 
4,204 

Total

$
240,642 

 

$
21,679 

 

$
11,881 

 

$
3,596 

 

$
277,798 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2012

Pass

 

Special Mention

 

Substandard

 

Doubtful

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial and agricultural

$
17,570 

 

$
904 

 

$
822 

 

$

 -

 

$
19,296 

Real estate - commercial

 
55,198 

 

 
8,939 

 

 
5,010 

 

 
40 

 

 
69,187 

Real estate - construction

 
14,001 

 

 
1,022 

 

 
867 

 

 
2,202 

 

 
18,092 

Real estate - mortgage

 
144,179 

 

 
3,864 

 

 
2,350 

 

 
2,729 

 

 
153,122 

Obligations of states and political subdivisions

 
12,769 

 

 

 -

 

 

 -

 

 

 -

 

 
12,769 

Personal

 
5,024 

 

 
10 

 

 

 -

 

 

 -

 

 
5,034 

Total

$
248,741 

 

$
14,739 

 

$
9,049 

 

$
4,971 

 

$
277,500 

 

The Company has certain loans in its portfolio that are considered to be impaired. It is the policy of the Company to recognize income on impaired loans that have been transferred to nonaccrual status on a cash basis, only to the extent that it exceeds principal balance recovery. Until an impaired loan is placed on nonaccrual status, income is recognized on the accrual basis. A collateral analysis is performed on each impaired loan at least quarterly and results are used to determine if a specific reserve is necessary to adjust the carrying value of each individual loan down to the estimated fair value. Generally, specific reserves are carried against impaired loans based upon estimated collateral value until a confirming loss event occurs or until termination of the credit is scheduled through liquidation of the collateral or foreclosure. Charge off will occur when a confirmed loss is identified. Professional appraisals of collateral, discounted for expected selling costs, are used to determine the charge-off amount. The following tables summarize information regarding impaired loans by portfolio class as of December 31, 2013 and December 31, 2012 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2013

 

 

As of December 31, 2012

Impaired loans

 

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

 

 

Recorded Investment

 

 

Unpaid Principal Balance

 

 

Related Allowance

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial and agricultural

 

$
94 

 

$
94 

 

$

 -

 

$
160 

 

$
160 

 

$

 -

Real estate - commercial

 

 
2,017 

 

 
2,142 

 

 

 -

 

 
2,672 

 

 
2,672 

 

 

 -

Real estate - construction

 

 
504 

 

 
813 

 

 

 -

 

 
2,004 

 

 
2,197 

 

 

 -

Real estate - mortgage

 

 
3,353 

 

 
4,751 

 

 

 -

 

 
487 

 

 
523 

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial

 

$
238 

 

$
238 

 

$
26 

 

$

 -

 

$

 -

 

$

 -

Real estate - construction

 

 
1,478 

 

 
1,502 

 

 
93 

 

 
198 

 

 
198 

 

 
91 

Real estate - mortgage

 

 
365 

 

 
394 

 

 
45 

 

 
2,141 

 

 
2,141 

 

 
1,036 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial and agricultural

 

$
94 

 

$
94 

 

$

 -

 

$
160 

 

$
160 

 

$

 -

Real estate - commercial

 

 
2,255 

 

 
2,380 

 

 
26 

 

 
2,672 

 

 
2,672 

 

 

 -

Real estate - construction

 

 
1,982 

 

 
2,315 

 

 
93 

 

 
2,202 

 

 
2,395 

 

 
91 

Real estate - mortgage

 

 
3,718 

 

 
5,145 

 

 
45 

 

 
2,628 

 

 
2,664 

 

 
1,036 

 

 

$
8,049 

 

$
9,934 

 

$
164 

 

$
7,662 

 

$
7,891 

 

$
1,127 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31,  2013

 

 

Year Ended December 31,  2012

 

 

Year Ended December 31,  2011

Impaired loans

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

 

Cash Basis Interest Income

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

 

Cash Basis Interest Income

 

 

Average Recorded Investment

 

 

Interest Income Recognized

 

 

Cash Basis Interest Income

With no related allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial and agricultural

 

$
127 

 

$

 -

 

$

 -

 

$
199 

 

$
14 

 

$

 -

 

$
274 

 

$
19 

 

$

 -

Real estate - commercial

 

 
2,345 

 

 
96 

 

 
24 

 

 
2,492 

 

 
119 

 

 
3 

 

 
2,354 

 

 
139 

 

 
10 

Real estate - construction

 

 
1,254 

 

 
2 

 

 
6 

 

 
1,362 

 

 

 -

 

 

 -

 

 
485 

 

 
42 

 

 
14 

Real estate - mortgage

 

 
1,920 

 

 
64 

 

 
24 

 

 
1,371 

 

 

 -

 

 

 -

 

 
2,453 

 

 
34 

 

 
47 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

With an allowance recorded:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate - commercial

 

$
119 

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

 

$

 -

Real estate - construction

 

 
838 

 

 

 -

 

 

 -

 

 
674 

 

 

 -

 

 
15 

 

 
1,025 

 

 

 -

 

 

 -

Real estate - mortgage

 

 
1,253 

 

 

 -

 

 
7 

 

 
2,503 

 

 

 -

 

 

 -

 

 
2,051 

 

 
65 

 

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial and agricultural

 

$
127 

 

$

 -

 

$

 -

 

$
199 

 

$
14 

 

$

 -

 

$
274 

 

$
19 

 

$

 -

Real estate - commercial

 

 
2,464 

 

 
96 

 

 
24 

 

 
2,492 

 

 
119 

 

 
3 

 

 
2,354 

 

 
139 

 

 
10 

Real estate - construction

 

 
2,092 

 

 
2 

 

 
6 

 

 
2,036 

 

 

 -

 

 
15 

 

 
1,510 

 

 
42 

 

 
14 

Real estate - mortgage

 

 
3,173 

 

 
64 

 

 
31 

 

 
3,874 

 

 

 -

 

 

 -

 

 
4,504 

 

 
99 

 

 
47 

 

 

$
7,856 

 

$
162 

 

$
61 

 

$
8,601 

 

$
133 

 

$
18 

 

$
8,642 

 

$
299 

 

$
71 

 

 

The following table presents nonaccrual loans by classes of the loan portfolio as of December 31, 2013 and December 31, 2012 (in thousands):

 

 

 

 

 

 

 

 

Nonaccrual loans:

 

December 31, 2013

 

 

December 31, 2012

Commercial, financial and agricultural

$
10 

 

$
20 

Real estate - commercial

 
1,331 

 

 
1,835 

Real estate - construction

 
1,982 

 

 
2,376 

Real estate - mortgage

 
2,629 

 

 
4,615 

Total

$
5,952 

 

$
8,846 

 

Interest income not recorded based on the original contractual terms of the loans for nonaccrual loans was $490,000, $472,000 and $405,000 in 2013, 2012 and 2011, respectively. The aggregate amount of demand deposits that have been reclassified as loan balances at December 31, 2013 and 2012 were $41,000 and $620,000, respectively.

 

The performance and credit quality of the loan portfolio is also monitored by analyzing the age of the loans receivable as determined by the length of time a recorded payment is past due. The following table presents the classes of the loan portfolio summarized by the past due status as of December 31, 2013 and December 31, 2012 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of  December 31, 2013

 

30-59 Days Past Due

 

 

60-89 Days Past Due

 

 

Greater than 90 Days

 

 

Total Past Due

 

 

Current

 

 

Total Loans

 

 

Loans Past Due greater than 90 Days and Accruing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial and agricultural

$
19 

 

$

 -

 

$
10 

 

$
29 

 

$
26,252 

 

$
26,281 

 

$

 -

Real estate - commercial

 
35 

 

 
1,092 

 

 
947 

 

 
2,074 

 

 
72,397 

 

 
74,471 

 

 
61 

Real estate - construction

 
239 

 

 
7 

 

 
1,801 

 

 
2,047 

 

 
17,634 

 

 
19,681 

 

 

 -

Real estate - mortgage

 
1,239 

 

 
2,130 

 

 
2,585 

 

 
5,954 

 

 
134,505 

 

 
140,459 

 

 
251 

Obligations of states and political subdivisions

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 
12,702 

 

 
12,702 

 

 

 -

Personal

 
23 

 

 
1 

 

 

 

 

 
24 

 

 
4,180 

 

 
4,204 

 

 

 -

Total

$
1,555 

 

$
3,230 

 

$
5,343 

 

$
10,128 

 

$
267,670 

 

$
277,798 

 

$
312 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2012

 

30-59 Days Past Due

 

 

60-89 Days Past Due

 

 

Greater than 90 Days

 

 

Total Past Due

 

 

Current

 

 

Total Loans

 

 

Loans Past Due greater than 90 Days and Accruing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, financial and agricultural

$
30 

 

$

 -

 

$
191 

 

$
221 

 

$
19,075 

 

$
19,296 

 

$
171 

Real estate - commercial

 
295 

 

 
819 

 

 
1,928 

 

 
3,042 

 

 
66,145 

 

 
69,187 

 

 
93 

Real estate - construction

 
9 

 

 
136 

 

 
2,335 

 

 
2,480 

 

 
15,612 

 

 
18,092 

 

 
156 

Real estate - mortgage

 
1,359 

 

 
3,131 

 

 
4,428 

 

 
8,918 

 

 
144,204 

 

 
153,122 

 

 
320 

Obligations of states and political subdivisions

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 
12,769 

 

 
12,769 

 

 

 -

Personal

 
29 

 

 
25 

 

 
2 

 

 
56 

 

 
4,978 

 

 
5,034 

 

 
2 

Total

$
1,722 

 

$
4,111 

 

$
8,884 

 

$
14,717 

 

$
262,783 

 

$
277,500 

 

$
742 

 

The following table summarizes information regarding troubled debt restructurings by loan portfolio class as of and for the year ended December 31, 2013, in thousands of dollars. There were no loans identified as troubled debt restructurings as of or for the year ended December 31, 2012.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Contracts

 

Pre-Modification Outstanding Recorded Investment

 

Post-Modification Outstanding Recorded Investment

 

Recorded Investment

2013

 

 

 

 

 

 

 

 

 

 

Accruing troubled debt restructurings:

 

 

 

 

 

 

 

 

 

 

  Real estate - commercial

1

 

$
64 

 

$
61 

 

$
61 

Real estate - mortgage

6

 

 
706 

 

 
714 

 

 
714 

 

7

 

$
770 

 

$
775 

 

$
775 

 

The Company’s troubled debt restructurings are also impaired loans, which may result in a specific allocation and subsequent charge-off if appropriate. As of December 31, 2013, there were no specific reserves or charge-offs relating to the troubled debt restructurings. The amended terms of the restructured loans vary, whereby interest rates have been reduced, principal payments have been reduced or deferred for a period of time and/or maturity dates have been extended. One restructured loan was delinquent in excess of 90 days with respect to the terms of the restructuring as of December 31, 2013. This loan has a balance of $61,000 and is in the process of foreclosure.

 

There were no loans modified resulting in troubled debt restructurings during 2012. There have been no defaults of troubled debt restructuring that took place during 2012 and 2013 within 12 months of restructure.

 

The following tables summarize the activity in the allowance for loan losses by loan class and loans by loan class, segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of and for the years ended December 31, 2013, 2012 and  2011 (in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

Commercial, financial and agricultural

 

Real estate - commercial

 

Real estate - construction

 

Real estate - mortgage

 

Obligations of states and political subdivisions

 

Personal

 

Total

Beginning Balance, January 1, 2013

$
179 

 

$
463 

 

$
202 

 

$
2,387 

 

$

 -

 

$
50 

 

$
3,281 

Charge-offs

 
(4)

 

 

 -

 

 
(117)

 

 
(1,281)

 

 

 -

 

 
(29)

 

 
(1,431)

Recoveries

 
13 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 
9 

 

 
22 

Provisions

 
65 

 

 
71 

 

 
127 

 

 
140 

 

 

 -

 

 
12 

 

 
415 

Ending balance

$
253 

 

$
534 

 

$
212 

 

$
1,246 

 

$

 -

 

$
42 

 

$
2,287 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2013

Commercial, financial and agricultural

 

Real estate - commercial

 

Real estate - construction

 

Real estate - mortgage

 

Obligations of states and political subdivisions

 

Personal

 

Total

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$
253 

 

$
534 

 

$
212 

 

$
1,246 

 

$

 -

 

$
42 

 

$
2,287 

evaluated for impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

individually

$

 -

 

$
26 

 

$
93 

 

$
45 

 

$

 -

 

$

 -

 

$
164 

collectively

$
253 

 

$
508 

 

$
119 

 

$
1,201 

 

$

 -

 

$
42 

 

$
2,123 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$
26,281 

 

$
74,471 

 

$
19,681 

 

$
140,459 

 

$
12,702 

 

$
4,204 

 

$
277,798 

evaluated for impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

individually

$
94 

 

$
2,255 

 

$
1,982 

 

$
3,718 

 

$

 -

 

$

 -

 

$
8,049 

collectively

$
26,187 

 

$
72,216 

 

$
17,699 

 

$
136,741 

 

$
12,702 

 

$
4,204 

 

$
269,749 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

Commercial, financial and agricultural

 

Real estate - commercial

 

Real estate - construction

 

Real estate - mortgage

 

Obligations of states and political subdivisions

 

Personal

 

Total

Beginning Balance, January 1, 2012

$
195 

 

$
455 

 

$
442 

 

$
1,771 

 

$

 -

 

$
68 

 

$
2,931 

Charge-offs

 
(25)

 

 

 -

 

 
(193)

 

 
(852)

 

 

 -

 

 
(1)

 

 
(1,071)

Recoveries

 
8 

 

 

 -

 

 

 -

 

 

 -

 

 

 -

 

 
2 

 

 
10 

Provisions

 
1 

 

 
8 

 

 
(47)

 

 
1,468 

 

 

 -

 

 
(19)

 

 
1,411 

Ending balance

$
179 

 

$
463 

 

$
202 

 

$
2,387 

 

$

 -

 

$
50 

 

$
3,281 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 2012

Commercial, financial and agricultural

 

Real estate - commercial

 

Real estate - construction

 

Real estate - mortgage

 

Obligations of states and political subdivisions

 

Personal

 

Total

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$
179 

 

$
463 

 

$
202 

 

$
2,387 

 

$

 -

 

$
50 

 

$
3,281 

evaluated for impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

individually

$

 -

 

$

 -

 

$
91 

 

$
1,036 

 

$

 -

 

$

 -

 

$
1,127 

collectively

$
179 

 

$
463 

 

$
111 

 

$
1,351 

 

$

 -

 

$
50 

 

$
2,154 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$
19,296 

 

$
69,187 

 

$
18,092 

 

$
153,122 

 

$
12,769 

 

$
5,034 

 

$
277,500 

evaluated for impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

individually

$
160 

 

$
2,672 

 

$
2,202 

 

$
2,628 

 

$

 -

 

$

 -

 

$
7,662 

collectively

$
19,136 

 

$
66,515 

 

$
15,890 

 

$
150,494 

 

$
12,769 

 

$
5,034 

 

$
269,838 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses:

 

Commercial, financial and agricultural

 

 

Real estate - commercial

 

 

Real estate - construction

 

 

Real estate - mortgage

 

 

Obligations of states and political subdivisions

 

 

Personal

 

 

Total

Beginning Balance, January 1, 2011

$
163 

 

$
442 

 

$
336 

 

$
1,810 

 

$

 -

 

$
73 

 

$
2,824 

Charge-offs

 
(18)

 

 
(37)

 

 

 -

 

 
(205)

 

 

 -

 

 
(22)

 

 
(282)

Recoveries

 
2 

 

 

 -

 

 

 -

 

 
10 

 

 

 -

 

 
13 

 

 
25 

Provisions

 
48 

 

 
50 

 

 
106 

 

 
156 

 

 

 -

 

 
4 

 

 
364 

Ending balance

$
195 

 

$
455 

 

$
442 

 

$
1,771 

 

$

 -

 

$
68 

 

$
2,931 

As of December 31, 2011

 

Commercial, financial and agricultural

 

 

Real estate - commercial

 

 

Real estate - construction

 

 

Real estate - mortgage

 

 

Obligations of states and political subdivisions

 

 

Personal

 

 

Total

Allowance for loan losses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$
195 

 

$
455 

 

$
442 

 

$
1,771 

 

$

 -

 

$
68 

 

$
2,931 

evaluated for impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

individually

$

 -

 

$

 -

 

$
343 

 

$
432 

 

$

 -

 

$

 -

 

$
775 

collectively

$
195 

 

$
455 

 

$
99 

 

$
1,339 

 

$

 -

 

$
68 

 

$
2,156 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans, net of unearned interest:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending balance

$
19,417 

 

$
60,774 

 

$
17,508 

 

$
176,544 

 

$
8,780 

 

$
6,658 

 

$
289,681 

evaluated for impairment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

individually

$
238 

 

$
2,312 

 

$
1,870 

 

$
5,119 

 

$

 -

 

$

 -

 

$
9,539 

collectively

$
19,179 

 

$
58,462 

 

$
15,638 

 

$
171,425 

 

$
8,780 

 

$
6,658 

 

$
280,142