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5. LOANS
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
NOTE 5. LOANS

Loans held for investment as of December 31, 2018, and 2017 were as follows:

 

    2018     2017  
Construction/Land Development   $ 61,659     $ 71,620  
Farmland     17,030       13,606  
Real Estate     192,278       184,546  
Multi-Family     9,665       10,298  
Commercial Real Estate     147,342       148,906  
Home Equity – closed end     11,039       11,606  
Home Equity – open end     53,197       54,739  
Commercial & Industrial – Non-Real Estate     36,021       36,912  
Consumer     9,861       6,633  
Dealer Finance     97,523       75,169  
Credit Cards     3,184       2,939  
Total   $ 638,799     $ 616,974  

 

The Company has pledged loans held for investment as collateral for borrowings with the Federal Home Loan Bank of Atlanta totaling $186,673 and $218,323 as of December 31, 2018, and 2017, respectively. The Company maintains a blanket lien on its entire residential real estate portfolio and certain commercial and home equity loans.

 

Loans held for sale consists of loans originated by F&M Mortgage for sale in the secondary market, and the Bank’s commitment to purchase residential mortgage loan participations from Northpointe Bank. The volume of loans purchased from Northpointe fluctuates due to a number of factors including changes in secondary market rates, which affects demand for mortgage loans; the number of participating banks involved in the program; the number of mortgage loan originators selling loans to the lead bank and the funding capabilities of the lead bank. Loans held for sale as of December 31, 2018, and 2017 were $55,910 and $39,775, respectively.

 

The following is a summary of information pertaining to impaired loans:

 

    December 31, 2018     December 31, 2017  
          Unpaid                 Unpaid        
    Recorded     Principal     Related     Recorded     Principal     Related  
    Investment     Balance     Allowance     Investment     Balance     Allowance  
Impaired loans without a valuation allowance:                                    
     Construction/Land Development   $ 2,414     $ 2,414     $ -     $ 4,352     $ 5,269     $ -  
     Farmland     1,941       1,941       -       1,984       1,984       -  
     Real Estate     1,932       1,932       -       1,273       1,273       -  
     Multi-Family     -       -       -       -       -       -  
     Commercial Real Estate     6,176       6,176       -       6,229       6,229       -  
     Home Equity – closed end     -       -       -       -       -       -  
     Home Equity – open end     -       -       -       -       347       -  
     Commercial & Industrial – Non-Real Estate     -       -       -       -       -       -  
     Consumer     -       -       -       8       8       -  
     Credit cards     -       -       -       -       -       -  
     Dealer Finance     32       32       -       31       31       -  
      12,495       12,495       -       13,877       15,141       -  
Impaired loans with a valuation allowance                                                
     Construction/Land Development     4,311       4,871       1,627       4,998       4,998       1,661  
     Farmland     -       -       -       -       -       -  
     Real Estate     422       422       7       1,188       1,188       209  
     Multi-Family     -       -       -       -       -       -  
     Commercial Real Estate     -       1,500       -       -       -       -  
     Home Equity – closed end     -       -       -       -       -       -  
     Home Equity – open end     -       -       -       -       -       -  
     Commercial & Industrial – Non-Real Estate     -       -       -       -       -       -  
     Consumer     8       8       2       -       -       -  
     Credit cards     -       -       -       -       -       -  
     Dealer Finance     194       194       10       47       47       12  
      4,935       6,995       1,646       6,233       6,233       1,882  
Total impaired loans   $ 17,430     $ 19,490     $ 1,646     $ 20,110     $ 21,374     $ 1,882  

 

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

 

The following is a summary of the average investment and interest income recognized for impaired loans (dollars in thousands):

 

    December 31, 2018     December 31, 2017  
    Average     Interest     Average     Interest  
    Recorded     Income     Recorded     Income  
    Investment     Recognized     Investment     Recognized  
Impaired loans without a valuation allowance:                        
     Construction/Land Development   $ 3,586     $ 89     $ 4,969     $ 382  
     Farmland     1,963       80       1,921       62  
     Real Estate     1,542       98       878       57  
     Multi-Family     -       -       -       -  
     Commercial Real Estate     2,304       286       1,682       44  
     Home Equity – closed end     -       -       -       -  
     Home Equity – open end     -       -       347       -  
     Commercial & Industrial – Non-Real Estate     -       -       124       -  
     Consumer     -       -       10       -  
     Credit cards     -       -       -       -  
     Dealer Finance     28       5       24       3  
      9,423       558       9,955       548  
Impaired loans with a valuation allowance                                
     Construction/Land Development     6,352       91       5,911       258  
     Farmland     -       -       -       -  
     Real Estate     554       23       1,194       49  
     Multi-Family     -       -       -       -  
     Commercial Real Estate     4,167       -       -       -  
     Home Equity – closed end     -       -       -       -  
     Home Equity – open end     -       -       -       -  
     Commercial & Industrial – Non-Real Estate     -       -       -       -  
     Consumer     10       1       -       -  
     Credit cards     -       -       -       -  
     Dealer Finance     206       14       56       3  
      11,289       129       7,161       310  
Total impaired loans   $ 20,712     $ 687     $ 17,116     $ 858  

 

The following table presents the aging of the recorded investment of past due loans:

  

    30-59 Days Past due     60-89 Days Past Due     Greater than 90 Days     Total Past Due     Current     Total Loan Receivable     Non-Accrual Loans     Recorded Investment >90 days & accruing  
December 31, 2018                                                
Construction/Land Development   $ 290     $ -     $ 1,767     $ 2,057     $ 59,602     $ 61,659     $ 2,327     $ -  
Farmland     -       -       -       -       17,030       17,030       -       -  
Real Estate     3,074       677       1,729       5,480       186,798       192,278       1,477       726  
Multi-Family     -       -       -       -       9,665       9,665       -       -  
Commercial Real Estate     479       189       5,073       5,741       141,601       147,342       5,074       -  
Home Equity – closed end     -       -       12       12       11,027       11,039       -       12  
Home Equity – open end     148       171       320       639       52,558       53,197       269       51  
Commercial & Industrial – Non- Real Estate     40       22       80       142       35,879       36,021       98       -  
Consumer     89       26       3       118       9,743       9,861       5       2  
Dealer Finance     2,763       337       96       3,196       94,327       97,523       155       9  
Credit Cards     50       11       9       70       3,114       3,184       -       -  
Total   $ 6,933     $ 1,433     $ 9,089     $ 17,455     $ 621,344     $ 638,799     $ 9,405     $ 800  

 

    30-59 Days Past due     60-89 Days Past Due     Greater than 90 Days     Total Past Due     Current     Total Loan Receivable     Non-Accrual Loans     Recorded Investment >90 days & accruing  
December 31, 2017                                                
Construction/Land Development   $ 167     $ 5,459     $ 3,908     $ 9,534     $ 62,086     $ 71,620     $ 3,908     $ -  
Farmland     -       -       -       -       13,606       13,606       -       -  
Real Estate     2,858       1,954       560       5,372       179,174       184,546       1,720       143  
Multi-Family     179       -       -       179       10,119       10,298       -       -  
Commercial Real Estate     544       -       -       544       148,362       148,906       -       -  
Home Equity – closed end     -       25       -       25       11,581       11,606       3       -  
Home Equity – open end     454       165       268       887       53,852       54,739       448       -  
Commercial & Industrial – Non- Real Estate     108       36       595       739       36,173       36,912       599       -  
Consumer     43       5       -       48       6,585       6,633       -       -  
Dealer Finance     1,300       252       189       1,741       73,428       75,169       226       54  
Credit Cards     30       8       1       39       2,900       2,939       -       1  
Total   $ 5,683     $ 7,904     $ 5,521     $ 19,108     $ 597,866     $ 616,974     $ 6,904     $ 198