XML 20 R10.htm IDEA: XBRL DOCUMENT v3.21.2
Loans
 9 Months Ended
Sep. 30, 2021
Loans  
Note 3. Loans

Note 3. Loans

 

During the pandemic, modifications allowing principal and interest deferrals were granted in connection with COVID-19 relief.  These modifications and deferrals were not considered troubled debt restructurings pursuant to interagency guidance issued in March 2020 and the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. As of September 30, 2021 one loan remains in deferral status.

 

Loans held for investment outstanding at September 30, 2021 and December 31, 2020 are summarized as follows (in thousands):

 

 

 

2021

 

 

2020

 

Construction/Land Development

 

$70,102

 

 

$71,467

 

Farmland

 

 

66,367

 

 

 

53,728

 

Real Estate

 

 

145,647

 

 

 

163,018

 

Multi-Family

 

 

4,632

 

 

 

5,918

 

Commercial Real Estate

 

 

156,504

 

 

 

142,516

 

Home Equity – closed end

 

 

6,365

 

 

 

8,476

 

Home Equity – open end

 

 

42,872

 

 

 

46,613

 

Commercial & Industrial – Non-Real Estate

 

 

48,133

 

 

 

65,470

 

Consumer

 

 

8,239

 

 

 

9,405

 

Dealer Finance

 

 

104,418

 

 

 

91,861

 

Credit Cards

 

 

2,790

 

 

 

2,857

 

    Gross loans

 

 

656,069

 

 

 

661,329

 

Less: Deferred loan fees, net of costs

 

 

(238)

 

 

-

 

    Total

 

$655,831

 

 

$661,329

 

The Company has pledged loans held for investment as collateral for borrowings with the Federal Home Loan Bank of Atlanta totaling $159,725 and $173,029 as of September 30, 2021 and December 31, 2020, respectively.  The Company maintains a blanket lien on certain loans in its residential real estate, commercial and home equity portfolios.

 

Loans held for sale, at fair value consists of loans originated by F&M Mortgage for sale in the secondary market. The volume of loans fluctuates due to changes in secondary market rates, which affects demand for mortgage loans. Loans held for sale, participations consists of residential mortgage loan participations from Northpointe Bank.  Loans held for sale as of September 30, 2021 and December 31, 2020 were $3,610 and $58,679, respectively.

 

The following is a summary of information pertaining to impaired loans (dollars in thousand):

 

 

 

September 30, 2021

 

 

December 31, 2020

 

 

 

 

 

 

Unpaid

 

 

 

 

 

 

Unpaid

 

 

 

 

 

Recorded

 

 

Principal

 

 

Related

 

 

Recorded

 

 

Principal

 

 

Related

 

 

 

Investment(1)

 

 

Balance

 

 

Allowance

 

 

Investment

 

 

Balance

 

 

Allowance

 

Impaired loans without a valuation allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Construction/Land Development

 

$733

 

 

$733

 

 

$-

 

 

$1,693

 

 

$1,693

 

 

$-

 

     Farmland

 

 

2,371

 

 

 

2,371

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Real Estate

 

 

2,977

 

 

 

2,977

 

 

 

-

 

 

 

6,648

 

 

 

6,648

 

 

 

-

 

     Multi-Family

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Commercial Real Estate

 

 

8,524

 

 

 

8,524

 

 

 

-

 

 

 

8,592

 

 

 

8,656

 

 

 

-

 

     Home Equity – closed end

 

 

161

 

 

 

161

 

 

 

-

 

 

 

687

 

 

 

687

 

 

 

-

 

     Home Equity – open end

 

 

-

 

 

 

-

 

 

 

-

 

 

 

151

 

 

 

151

 

 

 

-

 

     Commercial & Industrial – Non-Real Estate

 

 

-

 

 

 

-

 

 

 

-

 

 

 

8

 

 

 

8

 

 

 

-

 

     Consumer

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Credit cards

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Dealer Finance

 

 

15

 

 

 

15

 

 

 

-

 

 

 

8

 

 

 

8

 

 

 

-

 

 

 

 

14,781

 

 

 

14,781

 

 

 

-

 

 

 

17,787

 

 

 

17,851

 

 

 

-

 

Impaired loans with a valuation allowance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Construction/Land Development

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1,737

 

 

 

1,737

 

 

 

370

 

     Real Estate

 

 

1,180

 

 

 

1,180

 

 

 

169

 

 

 

7,143

 

 

 

7,143

 

 

 

365

 

     Multi-Family

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Commercial Real Estate

 

 

6,034

 

 

 

6,034

 

 

 

617

 

 

 

7,464

 

 

 

7,464

 

 

 

1,833

 

     Home Equity – closed end

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Home Equity – open end

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Commercial & Industrial – Non-Real Estate

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Consumer

 

 

-

 

 

 

-

 

 

 

-

 

 

 

1

 

 

 

1

 

 

 

1

 

     Credit cards

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Dealer Finance

 

 

103

 

 

 

103

 

 

 

14

 

 

 

147

 

 

 

147

 

 

 

15

 

 

 

 

7,317

 

 

 

7,317

 

 

 

800

 

 

 

16,492

 

 

 

16,492

 

 

 

2,584

 

Total impaired loans

 

$22,098

 

 

$22,098

 

 

$800

 

 

$34,279

 

 

$34,343

 

 

$2,584

 

 

1The Recorded Investment is defined as the original principal balance less principal payments, charge-offs and nonaccrual payments applied to principal. 

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

 

 

 

Three Months Ended September 30,

 

 

Nine Months Ended September 30,

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

 

Average Recorded

 

 

Interest Income

 

 

Average Recorded

 

 

Interest Income

 

 

Average Recorded

 

 

Interest Income

 

 

Average Recorded

 

 

Interest Income

 

 

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

 

 

Investment

 

 

Recognized

 

Impaired loans without a valuation allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Construction/Land Development

 

$757

 

 

$7

 

 

$1,547

 

 

$19

 

 

$1,213

 

 

$23

 

 

$1,853

 

 

$59

 

     Farmland

 

 

2,376

 

 

 

9

 

 

 

-

 

 

 

-

 

 

 

1,186

 

 

 

117

 

 

 

-

 

 

 

-

 

     Real Estate

 

 

3,016

 

 

 

39

 

 

 

4,908

 

 

 

78

 

 

 

4,813

 

 

 

126

 

 

 

5,024

 

 

 

214

 

     Multi-Family

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Commercial Real Estate

 

 

9,408

 

 

 

53

 

 

 

1,561

 

 

 

(19)

 

 

8,558

 

 

 

176

 

 

 

1,063

 

 

 

30

 

     Home Equity – closed end

 

 

415

 

 

 

5

 

 

 

701

 

 

 

5

 

 

 

424

 

 

 

16

 

 

 

708

 

 

 

26

 

     Home Equity – open end

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

76

 

 

 

-

 

 

 

-

 

 

 

-

 

     Commercial & Industrial – Non-Real Estate

 

 

1

 

 

 

-

 

 

 

13

 

 

 

1

 

 

 

4

 

 

 

-

 

 

 

14

 

 

 

1

 

     Consumer

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Credit Cards

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Dealer Finance

 

 

16

 

 

 

-

 

 

 

30

 

 

 

(1)

 

 

12

 

 

 

1

 

 

 

48

 

 

 

1

 

 

 

 

15,989

 

 

 

113

 

 

 

8,760

 

 

 

83

 

 

 

16,286

 

 

 

459

 

 

 

8,710

 

 

 

331

 

Impaired loans with a valuation allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

     Construction/Land Development

 

$-

 

 

$-

 

 

$309

 

 

$28

 

 

$-

 

 

$-

 

 

$649

 

 

$28

 

     Farmland

 

 

-

 

 

 

-

 

 

 

1,763

 

 

 

35

 

 

 

869

 

 

 

-

 

 

 

1.842

 

 

 

219

 

     Real Estate

 

 

1,399

 

 

 

-

 

 

 

9,456

 

 

 

119

 

 

 

4,162

 

 

 

32

 

 

 

9.849

 

 

 

381

 

     Multi-Family

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Commercial Real Estate

 

 

5,844

 

 

 

40

 

 

 

3,566

 

 

 

72

 

 

 

6,749

 

 

 

131

 

 

 

2.465

 

 

 

121

 

     Home Equity – closed end

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Home Equity – open end

 

 

-

 

 

 

-

 

 

 

151

 

 

 

2

 

 

 

-

 

 

 

-

 

 

 

151

 

 

 

6

 

     Commercial & Industrial – Non-Real Estate

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

96

 

 

 

-

 

     Consumer

 

 

-

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

1

 

 

 

-

 

 

 

3

 

 

 

-

 

     Credit Card

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

     Dealer Finance

 

 

110

 

 

 

2

 

 

 

142

 

 

 

4

 

 

 

125

 

 

 

7

 

 

 

145

 

 

 

9

 

 

 

 

7,353

 

 

 

42

 

 

 

15,388

 

 

 

260

 

 

 

11,906

 

 

 

170

 

 

 

15.200

 

 

 

764

 

Total Impaired Loans

 

$23,342

 

 

$155

 

 

$24,148

 

 

$343

 

 

$28,192

 

 

$629

 

 

$23.910

 

 

$1,095

 

The following table presents the aging of the recorded investment of past due loans (dollars in thousands) as of September 30, 2021 and December 31, 2020:

 

September 30, 2021

 

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

 

Construction/Land Development

 

$61

 

 

$39

 

 

$-

 

 

$100

 

 

$70,002

 

 

$70,102

 

 

$267

 

 

$-

 

Farmland

 

 

21

 

 

 

-

 

 

 

-

 

 

 

21

 

 

 

66,346

 

 

 

66,367

 

 

 

1,395

 

 

 

-

 

Real Estate

 

 

1,328

 

 

 

156

 

 

 

464

 

 

 

1,948

 

 

 

143,699

 

 

 

145,647

 

 

 

842

 

 

 

-

 

Multi-Family

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

4,632

 

 

 

4,632

 

 

 

-

 

 

 

-

 

Commercial Real Estate

 

 

-

 

 

 

108

 

 

 

-

 

 

 

108

 

 

 

156,396

 

 

 

156,504

 

 

 

2,877

 

 

 

-

 

Home Equity – closed end

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

6,365

 

 

 

6,365

 

 

 

-

 

 

 

-

 

Home Equity – open end

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

42,872

 

 

 

42,872

 

 

 

-

 

 

 

-

 

Commercial & Industrial – Non- Real Estate

 

 

21

 

 

 

40

 

 

 

-

 

 

 

61

 

 

 

48,072

 

 

 

48,133

 

 

 

-

 

 

 

-

 

Consumer

 

 

26

 

 

 

8

 

 

 

-

 

 

 

34

 

 

 

8,205

 

 

 

8,239

 

 

 

-

 

 

 

-

 

Dealer Finance

 

 

705

 

 

 

67

 

 

 

-

 

 

 

772

 

 

 

103,646

 

 

 

104,418

 

 

 

29

 

 

 

-

 

Credit Cards

 

 

14

 

 

 

-

 

 

 

20

 

 

 

34

 

 

 

2,756

 

 

 

2,790

 

 

 

-

 

 

 

20

 

Less: Deferred loan fees, net of costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(238)

 

 

(238)

 

 

-

 

 

 

-

 

Total

 

$2,176

 

 

$418

 

 

$484

 

 

$3,078

 

 

$652,753

 

 

$655,831

 

 

$5,410

 

 

$20

 

December 31, 2020

 

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

 

Construction/Land Development

 

$2,557

 

 

$-

 

 

$-

 

 

$2,557

 

 

$68,910

 

 

$71,467

 

 

$251

 

 

$-

 

Farmland

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

53,728

 

 

 

53,728

 

 

 

1,737

 

 

 

-

 

Real Estate

 

 

1,724

 

 

 

512

 

 

 

304

 

 

 

2,540

 

 

 

160,478

 

 

 

163,018

 

 

 

368

 

 

 

102

 

Multi-Family

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

5,918

 

 

 

5,918

 

 

 

-

 

 

 

-

 

Commercial Real Estate

 

 

554

 

 

 

-

 

 

 

920

 

 

 

1,474

 

 

 

141,042

 

 

 

142,516

 

 

 

3,820

 

 

 

-

 

Home Equity – closed end

 

 

3

 

 

 

30

 

 

 

-

 

 

 

33

 

 

 

8,443

 

 

 

8,476

 

 

 

-

 

 

 

-

 

Home Equity – open end

 

 

716

 

 

 

-

 

 

 

212

 

 

 

928

 

 

 

45,685

 

 

 

46,613

 

 

 

212

 

 

 

-

 

Commercial & Industrial – Non- Real Estate

 

 

95

 

 

 

44

 

 

 

-

 

 

 

139

 

 

 

65,331

 

 

 

65,470

 

 

 

3

 

 

 

-

 

Consumer

 

 

39

 

 

 

-

 

 

 

-

 

 

 

39

 

 

 

9,366

 

 

 

9,405

 

 

 

-

 

 

 

-

 

Dealer Finance

 

 

694

 

 

 

157

 

 

 

-

 

 

 

851

 

 

 

91,010

 

 

 

91,861

 

 

 

44

 

 

 

-

 

Credit Cards

 

 

45

 

 

 

-

 

 

 

-

 

 

 

45

 

 

 

2,812

 

 

 

2,857

 

 

 

-

 

 

 

-

 

Total

 

$6,427

 

 

$743

 

 

$1,436

 

 

$8,606

 

 

$652,723

 

 

$661,329

 

 

$6,435

 

 

$102

 

 

On September 30, 2021 and December 31, 2020, other real estate owned did not include any foreclosed residential real estate.  The Company has $281 thousand of consumer mortgages for which foreclosure was in process on September 30, 2021.

 

Nonaccrual loans on September 30, 2021 would have earned approximately $67 thousand in interest income for the quarter had they been accruing loans.