5. LOANS (Tables)

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Schedule of loans held for investment

Loans held for investment as of December 31, 2016, and 2015 were as follows:

	2016		2015
Construction/Land Development	$	76,171,890	$	69,759,401
Farmland		12,901,023		13,377,740
Real Estate		172,758,171		166,586,877
Multi-Family		7,604,876		7,558,460
Commercial Real Estate		150,060,810		128,031,686
Home Equity – closed end		11,452,712		9,135,433
Home Equity – open end		54,419,961		56,599,337
Commercial & Industrial – Non-Real Estate		31,306,361		27,954,171
Consumer		6,643,868		8,219,391
Dealer Finance		65,494,924		54,085,791
Credit Cards		2,821,901		2,745,190
Total	$	591,636,497	$	544,053,477

The Company has pledged loans held for investment as collateral for borrowings with the Federal Home Loan Bank of Atlanta totaling $199,401,000 and $182,312,000 as of December 31, 2016, and 2015, respectively. The Company maintains a blanket lien on its entire residential real estate portfolio and certain commercial and home equity loans.

Schedule Impaired Loans

The following is a summary of information pertaining to impaired loans (in thousands), as of December 31, 2016 and 2015:

			Unpaid				Average		Interest
December 31, 2016	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
Impaired loans without a valuation allowance:
Construction/Land Development	$	3,296	$	3,652	$	-	$	2,547	$	10
Farmland		-		-		-		-		-
Real Estate		768		768		-		778		10
Multi-Family		-		-		-		-		-
Commercial Real Estate		1,958		1,958		-		1,087		114
Home Equity – closed end		-		-		-		-		-
Home Equity – open end		-		347		-		964		2
Commercial & Industrial – Non-Real Estate		170		170		-		174		2
Consumer		13		13		-		11		-
Credit Cards		-		-		-		-		-
Dealer Finance		-		-		-		14		1
		6,205		6,908		-		5,575		139
Impaired loans with a valuation allowance
Construction/Land Development		6,592		6,592		1,853		8,525		291
Farmland		-		-		-		-		-
Real Estate		1,206		1,206		221		1,215		10
Multi-Family		-		-		-		-		-
Commercial Real Estate		952		952		60		959		57
Home Equity – closed end		-		-		-		-		-
Home Equity – open end		-		-		-		969		-
Commercial & Industrial – Non-Real Estate		-		-		-		14		-
Consumer		-		-		-		-		-
Credit cards		-		-		-		-		-
Dealer Finance		87		87		20		77		1
		8,837		8,837		2,154		11.759		359
Total impaired loans	$	15,042	$	15,745	$	2,154	$	17,334	$	498

			Unpaid				Average		Interest
December 31, 2015	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
Impaired loans without a valuation allowance:
Construction/Land Development	$	1,361	$	1,499	$	-	$	3,622	$	73
Farmland		-		-		-		-		-
Real Estate		1,097		1,097		-		734		58
Multi-Family		-		-		-		-		-
Commercial Real Estate		307		307		-		874		17
Home Equity – closed end		-		-		-		-		-
Home Equity – open end		1,159		1,159		-		1,513		82
Commercial & Industrial – Non-Real Estate		181		181		-		186		10
Consumer		18		18		-		7		-
Credit cards		-		-		-		-		-
Dealer Finance		4		4		-		1		4
		4,127		4,265		-		6,937		244
Impaired loans with a valuation allowance
Construction/Land Development		11,534		11,534		2,373		12,884		299
Farmland		-		-		-		-		-
Real Estate		324		324		238		699		46
Multi-Family		-		-		-		-		-
Commercial Real Estate		890		890		18		900		15
Home Equity – closed end		-		-		-		-		-
Home Equity – open end		1,414		1,414		269		613		75
Commercial & Industrial – Non-Real Estate		-		-		-		-		-
Consumer		-		-		-		-		-
Credit cards		-		-		-		-		-
Dealer Finance		68		68		17		38		5
		14,230		14,230		2,915		15,134		440
Total impaired loans	$	18,357	$	18,495	$	2,915	$	22,071	$	684

The Recorded Investment is defined as the principal balance less principal payments and charge-offs.

Schedule of aging of the recorded investment of past due loans

The following table presents the aging of the recorded investment of past due loans (in thousands) as of December 31, 2016 and 2015:

	30-59 Days Past due		60-89 Days Past Due		Greater than 90 Days (excluding non-accrual)		Non-Accrual Loans		Total Past Due		Current		Total Loan Receivable
December 31, 2016
Construction/Land Development	$	73	$	101	$	-	$	2,805	$	2,979	$	73,193	$	76,172
Farmland		-		-		-		-		-		12,901		12,901
Real Estate		2,114		340		81		1,399		3,934		168,824		172,758
Multi-Family		-		-		-		-		-		7,605		7,605
Commercial Real Estate		139		-		-		-		139		149,922		150,061
Home Equity – closed end		101		-		-		32		133		11,320		11,453
Home Equity – open end		309		-		-		279		588		53,832		54,420
Commercial & Industrial – Non- Real Estate		313		5		-		70		388		30,918		31,306
Consumer		35		4		-		-		39		6,604		6,643
Dealer Finance		790		187		26		178		1,181		64,314		65,495
Credit Cards		18		4		-		-		22		2,800		2,822
Total	$	3,892	$	641	$	107	$	4,763	$	9,403	$	582,233	$	591,636

	30-59 Days Past due		60-89 Days Past Due		Greater than 90 Days (excluding non-accrual)		Non-Accrual Loans		Total Past Due		Current		Total Loan Receivable
December 31, 2015
Construction/Land Development	$	104	$	-	$	-	$	4,688	$	4,792	$	64,967	$	69,759
Farmland		-		-		-		-		-		13,378		13,378
Real Estate		2,684		1,332		272		1,010		5,298		161,289		166,587
Multi-Family		-		-		-		-		-		7,559		7,559
Commercial Real Estate		340		241		-		-		581		127,451		128,032
Home Equity – closed end		41		7		-		-		48		9,087		9,135
Home Equity – open end		918		46		107		40		1,111		55,488		56,599
Commercial & Industrial – Non- Real Estate		114		3		25		109		251		27,703		27,954
Consumer		120		10		-		-		130		8,089		8,219
Dealer Finance		905		183		152		108		1,348		52,738		54,086
Credit Cards		10		13		15		-		38		2,707		2,745
Total	$	5,236	$	1,835	$	571	$	5,955	$	13,597	$	530,456	$	544,053