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Loans (Tables)
 9 Months Ended
Sep. 30, 2017
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of related aging categories of loans by segment
The following table presents the related aging categories of loans, by segment, as of September 30, 2017 and December 31, 2016:
 
 
 
September 30, 2017
 
 
 
 
Past Due
 
Past Due 90
 
 
 
 
 
 
 
 
30 To 89
 
Days Or More
 
Non-
 
 
(In Thousands)
 
Current
 
Days
 
& Still Accruing
 
Accrual
 
Total
Commercial, financial, and agricultural
 
$
174,993

 
$
6

 
$
53

 
$
247

 
$
175,299

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

Residential
 
572,303

 
1,929

 
26

 
1,876

 
576,134

Commercial
 
316,493

 
1,144

 
—

 
5,873

 
323,510

Construction
 
29,243

 
9

 
100

 
—

 
29,352

Installment loans to individuals
 
85,872

 
625

 
82

 
60

 
86,639

 
 
1,178,904

 
$
3,713

 
$
261

 
$
8,056

 
1,190,934

Net deferred loan fees and discounts
 
(1,220
)
 
 

 
 

 
 

 
(1,220
)
Allowance for loan losses
 
(12,933
)
 
 

 
 

 
 

 
(12,933
)
Loans, net
 
$
1,164,751

 
 

 
 

 
 

 
$
1,176,781


 
 
December 31, 2016
 
 
 
 
Past Due
 
Past Due 90
 
 
 
 
 
 
 
 
30 To 89
 
Days Or More
 
Non-
 
 
(In Thousands)
 
Current
 
Days
 
& Still Accruing
 
Accrual
 
Total
Commercial, financial, and agricultural
 
$
145,179

 
$
785

 
$
14

 
$
132

 
$
146,110

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

Residential
 
553,053

 
9,112

 
587

 
1,988

 
564,740

Commercial
 
296,537

 
786

 
268

 
8,591

 
306,182

Construction
 
33,879

 
771

 
—

 
—

 
34,650

Installment loans to individuals
 
43,008

 
202

 
1

 
45

 
43,256

 
 
1,071,656

 
$
11,656

 
$
870

 
$
10,756

 
1,094,938

Net deferred loan fees and discounts
 
(1,257
)
 
 

 
 

 
 

 
(1,257
)
Allowance for loan losses
 
(12,896
)
 
 

 
 

 
 

 
(12,896
)
Loans, net
 
$
1,057,503

 
 

 
 

 
 

 
$
1,080,785
Schedule of interest income if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans
The following table presents interest income the Banks would have recorded if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans for the three and nine months ended September 30, 2017 and 2016:

 
 
Three Months Ended September 30,
 
 
2017
 
2016
(In Thousands)
 
Interest Income That
Would Have Been
Recorded Based on
Original Term and Rate
 
Interest
Income
Recorded on
a Cash Basis
 
Interest Income That
Would Have Been
Recorded Based on
Original Term and Rate
 
Interest
Income
Recorded on
a Cash Basis
Commercial, financial, and agricultural
 
$
8

 
$
2

 
$
1

 
$
—

Real estate mortgage:
 
 

 
 

 
 

 
 

Residential
 
29

 
30

 
57

 
68

Commercial
 
90

 
23

 
109

 
90

Construction
 
—

 
—

 


 
—

Installment
 
1

 
1

 
—

 
—

 
 
$
128

 
$
56

 
$
167

 
$
158

 
 
Nine Months Ended September 30,
 
 
2017
 
2016
(In Thousands)
 
Interest Income That
Would Have Been
Recorded Based on
Original Term and Rate
 
Interest
Income
Recorded on
a Cash Basis
 
Interest Income That
Would Have Been
Recorded Based on
Original Term and Rate
 
Interest
Income
Recorded on
a Cash Basis
Commercial, financial, and agricultural
 
$
21

 
$
8

 
$
5

 
$
1

Real estate mortgage:
 
 

 
 

 
 

 
 

Residential
 
123

 
81

 
113

 
95

Commercial
 
322

 
42

 
388

 
170

Construction
 
—

 
—

 
—

 
—

Installment
 
3

 
2

 
—

 
—

 
 
$
469

 
$
133

 
$
506

 
$
266
Schedule of recorded investment, unpaid principal balance, and related allowance of impaired loans by segment
The following table presents the recorded investment, unpaid principal balance, and related allowance of impaired loans by segment as of September 30, 2017 and December 31, 2016:

 
 
September 30, 2017
 
 
Recorded
 
Unpaid Principal
 
Related
(In Thousands)
 
Investment
 
Balance
 
Allowance
With no related allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
$
1,141

 
$
1,141

 
$
—

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,775

 
1,775

 
—

Commercial
 
2,222

 
2,222

 
—

Installment loans to individuals
 
—

 
—

 
—

 
 
5,138

 
5,138

 
—

With an allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
255

 
255

 
207

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,022

 
1,070

 
224

Commercial
 
8,433

 
8,529

 
1,629

Installment loans to individuals
 
—

 
—

 
—

 
 
9,710

 
9,854

 
2,060

Total:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
1,396

 
1,396

 
207

Real estate mortgage:
 
 

 
 

 
 

Residential
 
2,797

 
2,845

 
224

Commercial
 
10,655

 
10,751

 
1,629

Installment loans to individuals
 
—

 
—

 
—

 
 
$
14,848

 
$
14,992

 
$
2,060


 
 
December 31, 2016
 
 
Recorded
 
Unpaid Principal
 
Related
(In Thousands)
 
Investment
 
Balance
 
Allowance
With no related allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
$
109

 
$
109

 
$
—

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,584

 
1,584

 
—

Commercial
 
1,833

 
1,833

 
—

Installment loans to individuals
 
—

 
—

 
—

 
 
3,526

 
3,526

 
—

With an allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
132

 
132

 
74

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,893

 
1,893

 
437

Commercial
 
10,425

 
10,520

 
1,668

Installment loans to individuals
 
—

 
—

 
—

 
 
12,450

 
12,545

 
2,179

Total:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
241

 
241

 
74

Real estate mortgage:
 
 

 
 

 
 

Residential
 
3,477

 
3,477

 
437

Commercial
 
12,258

 
12,353

 
1,668

Installment loans to individuals
 
—

 
—

 
—

 
 
$
15,976

 
$
16,071

 
$
2,179
Schedule of average recorded investment in impaired loans and related interest income recognized
The following table presents the average recorded investment in impaired loans and related interest income recognized for the three and nine months ended for September 30, 2017 and 2016:

 
 
Three Months Ended September 30,
 
 
2017
 
2016
(In Thousands)
 
Average
Investment in
Impaired Loans
 
Interest Income
Recognized on an
Accrual Basis on
Impaired Loans
 
Interest Income
Recognized on a
Cash Basis on
Impaired Loans
 
Average
Investment in
Impaired Loans
 
Interest Income
Recognized on an
Accrual Basis on
Impaired Loans
 
Interest Income
Recognized on a
Cash Basis on
Impaired Loans
Commercial, financial, and agricultural
 
$
394

 
$
17

 
$
1

 
$
346

 
$
4

 
$
—

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

 
 

Residential
 
3,199

 
12

 
34

 
2,784

 
23

 
41

Commercial
 
12,885

 
52

 
23

 
12,383

 
83

 
16

Construction
 
—

 
—

 
—

 
67

 
—

 
—

Installment loans to individuals
 
—

 
—

 
—

 
—

 
—

 
—

 
 
$
16,478

 
$
81

 
$
58

 
$
15,580

 
$
110

 
$
57

 
 
Nine Months Ended September 30,
 
 
2017
 
2016
(In Thousands)
 
Average
Investment in
Impaired Loans
 
Interest Income
Recognized on an
Accrual Basis on
Impaired Loans
 
Interest Income
Recognized on a
Cash Basis on
Impaired Loans
 
Average
Investment in
Impaired Loans
 
Interest Income
Recognized on an
Accrual Basis on
Impaired Loans
 
Interest Income
Recognized on a
Cash Basis on
Impaired Loans
Commercial, financial, and agricultural
 
$
324

 
$
24

 
$
7

 
$
586

 
$
12

 
$
1

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

 
 

Residential
 
3,212

 
48

 
80

 
4,539

 
67

 
68

Commercial
 
12,635

 
137

 
42

 
16,988

 
247

 
96

Construction
 
—

 
—

 
—

 
208

 
—

 
—

Installment loans to individuals
 
8

 
—

 
2

 
—

 
—

 
—

 
 
$
16,179

 
$
209

 
$
131

 
$
22,321

 
$
326

 
$
165
Schedule of loan modifications that are considered TDRs
Loan modifications that are considered TDRs completed during the three and nine months ended September 30, 2016 were as follows:
 
 
Three Months Ended September 30,
 
 
2017
 
2016
(In Thousands, Except Number of Contracts)
 
Number
of
Contracts
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
 
Number
of
Contracts
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Commercial, financial, and agricultural
 
—

 
$
—

 
$
—

 
—

 
$
—

 
$
—

Real estate mortgage:
 
 

 
 

 
 

 
 
 
 
 
 
Residential
 
—

 
—

 
—

 
2

 
580

 
580

Commercial
 
2

 
375

 
375

 
—

 
—

 
—

Construction
 
—

 
—

 
—

 
—

 
—

 
—

 
 
2

 
$
375

 
$
375

 
2

 
$
580

 
$
580

 
 
Nine Months Ended September 30,
 
 
2017
 
2016
(In Thousands, Except Number of Contracts)
 
Number
of
Contracts
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
 
Number
of
Contracts
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
Commercial, financial, and agricultural
 
—

 
$
—

 
$
—

 
—

 
$
—

 
$
—

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

 
 

Residential
 
—

 
—

 
—

 
4

 
922

 
922

Commercial
 
2

 
375

 
375

 
1

 
838

 
838

Construction
 
—

 
—

 
—

 
—

 
—

 
—

 
 
2

 
$
375

 
$
375

 
5

 
$
1,760

 
$
1,760
Schedule of credit quality categories
The following table presents the credit quality categories identified above as of September 30, 2017 and December 31, 2016:

 
 
September 30, 2017
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Totals
Pass
 
$
170,812

 
$
572,591

 
$
300,679

 
$
29,202

 
$
86,639

 
$
1,159,923

Special Mention
 
775

 
1,287

 
8,522

 
—

 
—

 
10,584

Substandard
 
3,712

 
2,256

 
14,309

 
150

 
—

 
20,427

 
 
$
175,299

 
$
576,134

 
$
323,510

 
$
29,352

 
$
86,639

 
$
1,190,934


 
 
December 31, 2016
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Totals
Pass
 
$
140,497

 
$
561,440

 
$
277,916

 
$
34,493

 
$
43,256

 
$
1,057,602

Special Mention
 
2,943

 
740

 
11,143

 
—

 
—

 
14,826

Substandard
 
2,670

 
2,560

 
17,123

 
157

 
—

 
22,510

 
 
$
146,110

 
$
564,740

 
$
306,182

 
$
34,650

 
$
43,256

 
$
1,094,938
Schedule of activity in the allowance
Activity in the allowance is presented for the three and nine months ended September 30, 2017 and 2016:
 
 
Three Months Ended September 30, 2017
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Unallocated
 
Totals
Beginning Balance
 
$
1,731

 
$
5,337

 
$
3,727

 
$
172

 
$
779

 
$
1,363

 
$
13,109

Charge-offs
 
(68
)
 
(155
)
 
—

 
—

 
(55
)
 
—

 
(278
)
Recoveries
 
6

 
16

 
—

 
2

 
18

 
—

 
42

Provision
 
(81
)
 
232

 
300

 
(26
)
 
144

 
(509
)
 
60

Ending Balance
 
$
1,588

 
$
5,430

 
$
4,027

 
$
148

 
$
886

 
$
854

 
$
12,933

 
 
 
Three Months Ended September 30, 2016
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Unallocated
 
Totals
Beginning Balance
 
$
1,273

 
$
5,851

 
$
4,001

 
$
143

 
$
277

 
$
972

 
$
12,517

Charge-offs
 
(18
)
 
(4
)
 
—

 
—

 
(67
)
 
—

 
(89
)
Recoveries
 
4

 
8

 
3

 
1

 
16

 
—

 
32

Provision
 
(9
)
 
(550
)
 
642

 
(29
)
 
111

 
93

 
258

Ending Balance
 
$
1,250

 
$
5,305

 
$
4,646

 
$
115

 
$
337

 
$
1,065

 
$
12,718

 
 
 
Nine Months Ended September 30, 2017
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Unallocated
 
Totals
Beginning Balance
 
$
1,554

 
$
5,383

 
$
4,975

 
$
178

 
$
416

 
$
390

 
$
12,896

Charge-offs
 
(81
)
 
(540
)
 
—

 
—

 
(186
)
 
—

 
(807
)
Recoveries
 
117

 
51

 
1

 
7

 
63

 
—

 
239

Provision
 
(2
)
 
536

 
(949
)
 
(37
)
 
593

 
464

 
605

Ending Balance
 
$
1,588

 
$
5,430

 
$
4,027

 
$
148

 
$
886

 
$
854

 
$
12,933

 
 
Nine Months Ended September 30, 2016
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Unallocated
 
Totals
Beginning Balance
 
$
1,532

 
$
5,116

 
$
4,217

 
$
160

 
$
243

 
$
776

 
$
12,044

Charge-offs
 
(167
)
 
(11
)
 
—

 
—

 
(171
)
 
—

 
(349
)
Recoveries
 
56

 
14

 
8

 
6

 
73

 
—

 
157

Provision
 
(171
)
 
186

 
421

 
(51
)
 
192

 
289

 
866

Ending Balance
 
$
1,250

 
$
5,305

 
$
4,646

 
$
115

 
$
337

 
$
1,065

 
$
12,718
Schedule of concentration of loan
The Company has a concentration of the following to gross loans at September 30, 2017 and 2016:
 
 
 
September 30,
 
 
2017
 
2016
Owners of residential rental properties
 
15.34
%
 
16.64
%
Owners of commercial rental properties
 
13.45
%
 
14.11
%
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method as of September 30, 2017 and December 31, 2016:

 
 
September 30, 2017
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
Unallocated
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
 
Totals
Allowance for Loan Losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending allowance balance attributable to loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
207

 
$
224

 
$
1,629

 
$
—

 
$
—

 
$
—

 
$
2,060

Collectively evaluated for impairment
 
1,381

 
5,206

 
2,398

 
148

 
886

 
854

 
10,873

Total ending allowance balance
 
$
1,588

 
$
5,430

 
$
4,027

 
$
148

 
$
886

 
$
854

 
$
12,933

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
1,396

 
$
2,797

 
$
10,655

 
$
—

 
$
—

 


 
$
14,848

Collectively evaluated for impairment
 
173,903

 
573,337

 
312,855

 
29,352

 
86,639

 


 
1,176,086

Total ending loans balance
 
$
175,299

 
$
576,134

 
$
323,510

 
$
29,352

 
$
86,639

 


 
$
1,190,934


 
 
December 31, 2016
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
Unallocated
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
 
Totals
Allowance for Loan Losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending allowance balance attributable to loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
74

 
$
437

 
$
1,668

 
$
—

 
$
—

 
$
—

 
$
2,179

Collectively evaluated for impairment
 
1,480

 
4,946

 
3,307

 
178

 
416

 
390

 
10,717

Total ending allowance balance
 
$
1,554

 
$
5,383

 
$
4,975

 
$
178

 
$
416

 
$
390

 
$
12,896

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
241

 
$
3,477

 
$
12,258

 
$
—

 
$
—

 
 

 
$
15,976

Collectively evaluated for impairment
 
145,869

 
561,263

 
293,924

 
34,650

 
43,256

 
 

 
1,078,962

Total ending loans balance
 
$
146,110

 
$
564,740

 
$
306,182

 
$
34,650

 
$
43,256

 
 

 
$
1,094,938