XML 30 R18.htm IDEA: XBRL DOCUMENT v3.4.0.3
Credit Quality of Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2016
Receivables [Abstract]  
Components of Loans Receivable
The loan portfolio consisted of the following (in thousands):
 
 
March 31, 2016
 
December 31, 2015
Commercial, financial and agricultural
 
$
441,160

 
$
454,028

Real estate - construction
 
84,790

 
74,952

Real estate – commercial
 
467,648

 
471,141

Real estate – residential
 
149,961

 
149,064

Installment loans to individuals
 
103,181

 
111,009

Lease financing receivable
 
1,590

 
1,968

Other
 
1,719

 
1,483

 
 
1,250,049

 
1,263,645

Less allowance for loan losses
 
(20,347
)
 
(19,011
)
 
 
$
1,229,702

 
$
1,244,634
Roll Forward of Activity in Allowance for Loan Losses
A rollforward of the activity within the allowance for loan losses by loan type and recorded investment in loans for the three months ended March 31, 2016 and 2015 is as follows (in thousands):
 
 
 
March 31, 2016
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
 
 
Coml, Fin,
and Agric
 
Constru-ction
 
Commercial
 
Residential
 
Installment
loans to
individuals
 
Lease
financing
receivable
 
Other
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
11,268

 
$
819

 
$
4,614

 
$
816

 
$
1,468

 
$
14

 
$
12

 
$
19,011

Charge-offs
 
(1,307
)
 
—

 
—

 
(4
)
 
(283
)
 
—

 
—

 
(1,594
)
Recoveries
 
26

 
—

 
76

 
3

 
25

 
—

 
—

 
130

Provision
 
2,194

 
(420
)
 
861

 
(170
)
 
336

 
(3
)
 
2

 
2,800

Ending balance
 
$
12,181

 
$
399

 
$
5,551

 
$
645

 
$
1,546

 
$
11

 
$
14

 
$
20,347

Ending balance: individually evaluated for impairment
 
$
1,021

 
$
—

 
$
2,586

 
$
267

 
$
278

 
$
—

 
$
—

 
$
4,152

Ending balance: collectively evaluated for impairment
 
$
11,160

 
$
399

 
$
2,965

 
$
378

 
$
1,268

 
$
11

 
$
14

 
$
16,195

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
441,160

 
$
84,790

 
$
467,648

 
$
149,961

 
$
103,181

 
$
1,590

 
$
1,719

 
$
1,250,049

Ending balance: individually evaluated for impairment
 
$
29,097

 
$
35

 
$
27,511

 
$
2,230

 
$
506

 
$
—

 
$
—

 
$
59,379

Ending balance: collectively evaluated for impairment
 
$
412,063

 
$
84,755

 
$
439,530

 
$
147,653

 
$
102,675

 
$
1,590

 
$
1,719

 
$
1,189,985

Ending balance: loans acquired with deteriorated credit quality
 
$
—

 
$
—

 
$
607

 
$
78

 
$
—

 
$
—

 
$
—

 
$
685

 
 
March 31, 2015
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
 
 
Coml, Fin,
and Agric
 
Constr-uction
 
Commercial
 
Residential
 
Installment
loans to
individuals
 
Lease
financing
receivable
 
Other
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
5,729

 
$
954

 
$
2,402

 
$
810

 
$
1,311

 
$
16

 
$
4

 
$
11,226

Charge-offs
 
(1,001
)
 
(6
)
 
—

 
(2
)
 
(323
)
 
—

 
—

 
(1,332
)
Recoveries
 
132

 
—

 
6

 
2

 
26

 
—

 
—

 
166

Provision
 
5,523

 
3

 
202

 
7

 
260

 
4

 
1

 
6,000

Ending balance
 
$
10,383

 
$
951

 
$
2,610

 
$
817

 
$
1,274

 
$
20

 
$
5

 
$
16,060

Ending balance: individually evaluated for impairment
 
$
737

 
$
—

 
$
645

 
$
57

 
$
206

 
$
—

 
$
—

 
$
1,645

Ending balance: collectively evaluated for impairment
 
$
9,646

 
$
951

 
$
1,965

 
$
760

 
$
1,068

 
$
20

 
$
5

 
$
14,415

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
484,508

 
$
76,964

 
$
471,737

 
$
153,647

 
$
115,284

 
$
6,350

 
$
2,439

 
$
1,310,929

Ending balance: individually evaluated for impairment
 
$
2,427

 
$
477

 
$
7,977

 
$
1,471

 
$
405

 
$
—

 
$
—

 
$
12,757

Ending balance: collectively evaluated for impairment
 
$
482,081

 
$
76,487

 
$
463,106

 
$
152,087

 
$
114,879

 
$
6,350

 
$
2,439

 
$
1,297,429

Ending balance: loans acquired with deteriorated credit quality
 
$
—

 
$
—

 
$
654

 
$
89

 
$
—

 
$
—

 
$
—

 
$
743
Age Analysis of Past Due Loans by Class of Loans
An age analysis of past due loans (including both accruing and non-accruing loans) is as follows (in thousands):
 
 
March 31, 2016
 
 
30-59
Days
Past Due
 
60-89
Days
Past
Due
 
Greater
than 90
Days
Past Due
 
Total
Past
Due
 
Current
 
Total Loans
 
Recorded
Investment
> 90 days
 and
Accruing
Commercial, financial, and agricultural
 
$
6,021

 
$
1,922

 
$
24,116

 
$
32,059

 
$
409,101

 
$
441,160

 
$
204

Commercial real estate - construction
 
260

 
—

 
11

 
271

 
64,549

 
64,820

 
—

Commercial real estate - other
 
10,754

 
—

 
16,275

 
27,029

 
440,619

 
467,648

 
—

Residential - construction
 
1,468

 
—

 
—

 
1,468

 
18,502

 
19,970

 
—

Residential - prime
 
1,046

 
97

 
1,625

 
2,768

 
147,193

 
149,961

 
—

Consumer - credit card
 
37

 
17

 
16

 
70

 
5,648

 
5,718

 
16

Consumer - other
 
625

 
306

 
478

 
1,409

 
96,054

 
97,463

 
38

Lease financing receivable
 
—

 
—

 
—

 
—

 
1,590

 
1,590

 
—

Other loans
 
66

 
3

 
—

 
69

 
1,650

 
1,719

 
—

 
 
$
20,277

 
$
2,345

 
$
42,521

 
$
65,143

 
$
1,184,906

 
$
1,250,049

 
$
258

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
30-59
Days
Past Due
 
60-89
Days
Past
Due
 
Greater
than 90
Days
Past Due
 
Total
Past
Due
 
Current
 
Total Loans
 
Recorded
Investment
> 90 days
and
Accruing
Commercial, financial, and agricultural
 
$
1,362

 
$
2,317

 
$
25,696

 
$
29,375

 
$
424,653

 
$
454,028

 
$
59

Commercial real estate - construction
 
1,047

 
—

 
12

 
1,059

 
55,839

 
56,898

 
—

Commercial real estate - other
 
1,164

 
514

 
19,512

 
21,190

 
449,951

 
471,141

 
—

Residential - construction
 
—

 
—

 
—

 
—

 
18,054

 
18,054

 
—

Residential - prime
 
1,703

 
367

 
1,563

 
3,633

 
145,431

 
149,064

 
19

Consumer - credit card
 
38

 
25

 
22

 
85

 
5,970

 
6,055

 
22

Consumer - other
 
984

 
219

 
387

 
1,590

 
103,364

 
104,954

 
47

Lease financing receivable
 
—

 
—

 
—

 
—

 
1,968

 
1,968

 
—

Other loans
 
101

 
4

 
—

 
105

 
1,378

 
1,483

 
—

 
 
$
6,399

 
$
3,446

 
$
47,192

 
$
57,037

 
$
1,206,608

 
$
1,263,645

 
$
147
Schedule of Loans on Nonaccrual Status
Non-accrual loans are as follows (in thousands):
 
 
 
March 31, 2016
 
December 31, 2015
Commercial, financial, and agricultural
 
$
24,900

 
$
27,705

Commercial real estate – construction
 
35

 
37

Commercial real estate - other
 
25,951

 
19,907

Residential - construction
 
—

 
—

Residential - prime
 
2,322

 
1,998

Consumer - credit card
 
—

 
—

Consumer - other
 
506

 
404

Lease financing receivable
 
—

 
—

Other
 
—

 
—

 
 
$
53,714

 
$
50,051
Schedule of Loans Evaluated for Impairment
Loans that are individually evaluated for impairment are as follows (in thousands):
 
 
March 31, 2016
 
 
Recorded
Investment
 
Unpaid Principal Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Commercial, financial, and agricultural
 
$
26,064

 
$
26,328

 
$
—

 
$
24,297

 
$
267

Commercial real estate – construction
 
35

 
35

 
—

 
36

 
—

Commercial real estate – other
 
7,564

 
7,564

 
—

 
6,725

 
45

Residential – prime
 
1,181

 
1,201

 
—

 
1,273

 
10

Consumer – other
 
24

 
24

 
—

 
29

 
—

Subtotal:
 
34,868

 
35,152

 
—

 
32,360

 
322

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

Commercial, financial, and agricultural
 
3,033

 
3,033

 
1,021

 
4,111

 
374

Commercial real estate – other
 
19,947

 
19,947

 
2,586

 
16,976

 
208

Residential – prime
 
1,049

 
1,049

 
267

 
794

 
7

Consumer – other
 
482

 
496

 
278

 
426

 
5

Subtotal:
 
24,511

 
24,525

 
4,152

 
22,307

 
594

Totals:
 
 

 
 

 
 

 
 

 
 

Commercial
 
56,643

 
56,907

 
3,607

 
52,145

 
894

Residential
 
2,230

 
2,250

 
267

 
2,067

 
17

Consumer
 
506

 
520

 
278

 
455

 
5

Grand total:
 
$
59,379

 
$
59,677

 
$
4,152

 
$
54,667

 
$
916

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Commercial, financial, and agricultural
 
$
22,529

 
$
22,793

 
$
—

 
$
11,484

 
$
745

Commercial real estate – construction
 
37

 
37

 
—

 
45

 
—

Commercial real estate – other
 
5,886

 
5,886

 
—

 
3,903

 
97

Residential – prime
 
1,365

 
1,385

 
—

 
954

 
17

Consumer – other
 
34

 
34

 
—

 
56

 
—

Subtotal:
 
29,851

 
30,135

 
—

 
16,442

 
859

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

Commercial, financial, and agricultural
 
5,189

 
6,373

 
961

 
3,704

 
138

Commercial real estate – other
 
14,004

 
14,004

 
1,585

 
9,236

 
161

Residential – prime
 
538

 
538

 
160

 
533

 
7

Consumer – other
 
370

 
384

 
221

 
334

 
8

Subtotal:
 
20,101

 
21,299

 
2,927

 
13,807

 
314

Totals:
 
 

 
 

 
 

 
 

 
 

Commercial
 
47,645

 
49,093

 
2,546

 
28,372

 
1,141

Residential
 
1,903

 
1,923

 
160

 
1,487

 
24

Consumer
 
404

 
418

 
221

 
390

 
8

Grand total:
 
$
49,952

 
$
51,434

 
$
2,927

 
$
30,249

 
$
1,173
Credit Quality Indicators by Class of Loans
The following tables present the classes of loans by risk rating (in thousands):
 
 
 
  
 
March 31, 2016
Commercial Credit Exposure
 
 
 
 
 
 
 
 
 
 
 
 
Credit Risk Profile by
Creditworthiness Category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial,
financial, and
agricultural
 
Commercial
real estate -
construction
 
Commercial
real estate -
other
 
Total
 
% of Total
Pass
 
 
 
$
368,557

 
$
64,602

 
$
406,237

 
$
839,396

 
86.22
%
Special mention
 
 
 
24,933

 
99

 
24,759

 
49,791

 
5.11
%
Substandard
 
 
 
47,466

 
119

 
36,652

 
84,237

 
8.65
%
Doubtful
 
 
 
204

 
—

 
—

 
204

 
0.02
%
 
 
 
 
$
441,160

 
$
64,820

 
$
467,648

 
$
973,628

 
100.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Credit Exposure
 
 
 
 

 
 

 
 

 
 

 
 

Credit Risk Profile by
Creditworthiness Category
 
 
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 

 
Residential -
construction
 
Residential
- prime
 
Total
 
% of Total
Pass
 
 
 
 

 
$
19,970

 
$
145,302

 
$
165,272

 
97.26
%
Special mention
 
 
 
 

 
—

 
1,122

 
1,122

 
0.66
%
Substandard
 
 
 
 

 
—

 
3,537

 
3,537

 
2.08
%
 
 
 
 
 

 
$
19,970

 
$
149,961

 
$
169,931

 
100.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Commercial Credit Exposure
 
 
 
 

 
 

 
 

 
 

 
 

Credit Risk Profile Based on
Payment Activity
 
 
 
 

 
 

 
 

 
 

 
 

 
 
Consumer -
credit card
 
Consumer -
other
 
Lease
financing
receivable
 
Other
 
Total
 
% of Total
Performing
 
$
5,702

 
$
96,919

 
$
1,590

 
$
1,719

 
$
105,930

 
99.47
%
Nonperforming
 
16

 
544

 
—

 
—

 
560

 
0.53
%
 
 
$
5,718

 
$
97,463

 
$
1,590

 
$
1,719

 
$
106,490

 
100.00
%
 
 
December 31, 2015
Commercial Credit Exposure
 
 
 
 
 
 
 
 
 
 
 
 
Credit Risk Profile by
Creditworthiness Category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial,
financial, and
agricultural
 
Commercial
real estate -
construction
 
Commercial
real estate -
other
 
Total
 
%
of Total
Pass
 
 
 
$
383,897

 
$
56,740

 
$
412,141

 
$
852,778

 
86.84
%
Special mention
 
 
 
32,506

 
34

 
28,217

 
60,757

 
6.18
%
Substandard
 
 
 
37,353

 
124

 
30,783

 
68,260

 
6.95
%
Doubtful
 
 
 
272

 
—

 
—

 
272

 
0.03
%
 
 
 
 
$
454,028

 
$
56,898

 
$
471,141

 
$
982,067

 
100.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Credit Exposure
 
 
 
 

 
 

 
 

 
 

 
 

Credit Risk Profile by
Creditworthiness Category
 
 
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 

 
Residential -
construction
 
Residential
- prime
 
Total
 
%
of Total
Pass
 
 
 
 

 
$
18,054

 
$
144,704

 
$
162,758

 
97.39
%
Special mention
 
 
 
 

 
—

 
1,225

 
1,225

 
0.73
%
Substandard
 
 
 
 

 
—

 
3,135

 
3,135

 
1.88
%
 
 
 
 
 

 
$
18,054

 
$
149,064

 
$
167,118

 
100.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Commercial Credit Exposure
 
 
 
 

 
 

 
 

 
 

 
 

Credit Risk Profile Based on
Payment Activity
 
 
 
 

 
 

 
 

 
 

 
 

 
 
Consumer -
credit card
 
Consumer -
other
 
Lease
financing
receivable
 
Other
 
Total
 
%
of Total
Performing
 
$
6,033

 
$
104,503

 
$
1,968

 
$
1,483

 
$
113,987

 
99.59
%
Nonperforming
 
22

 
451

 
—

 
—

 
473

 
0.41
%
 
 
$
6,055

 
$
104,954

 
$
1,968

 
$
1,483

 
$
114,460

 
100.00
%
Summary of Troubled Debt Restructurings
Information about the Company’s TDRs is as follows (in thousands):
 
 
 
March 31, 2016
 
 
Current
 
Past Due Greater Than 30 Days
 
Nonaccrual
TDRs
 
Total
TDRs
Commercial, financial and agricultural
 
$
16

 
$
3,943

 
$
20,708

 
$
24,667

Real estate - commercial
 
1,716

 
—

 
—

 
1,716

 
 
$
1,732

 
$
3,943

 
$
20,708

 
$
26,383

 
 
 
 
 
 
 
 
 
 
 
December 31, 2015
 
 
Current
 
Past Due Greater Than 30 Days
 
Nonaccrual
TDRs
 
Total
TDRs
Commercial, financial and agricultural
 
$
16

 
$
—

 
$
20,865

 
$
20,881

Real estate - commercial
 
—

 
148

 
—

 
148

 
 
$
16

 
$
148

 
$
20,865

 
$
21,029