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LOANS (Tables)
 12 Months Ended
Dec. 31, 2017
Receivables [Abstract]  
Summary of the Loan Portfolio
The loan portfolio consisted of the following (in thousands):
 
 
December 31,
 
 
2017
 
2016
Commercial, financial and agricultural
 
$
435,207

 
$
459,574

Real estate – construction
 
90,287

 
100,959

Real estate – commercial
 
448,406

 
481,155

Real estate – residential
 
146,751

 
157,872

Installment loans to individuals
 
56,398

 
82,660

Lease financing receivable
 
732

 
1,095

Other
 
5,645

 
767

 
 
1,183,426

 
1,284,082

Less allowance for loan losses
 
(26,888
)
 
(24,372
)
 
 
$
1,156,538

 
$
1,259,710
Summary of Activity in Allowance for Loan Losses
An analysis of the activity in the allowance for loan losses is as follows (in thousands):
 
 
December 31,
 
 
2017
 
2016
 
2015
Balance, beginning of year
 
$
24,372

 
$
19,011

 
$
11,226

Provision for loan losses
 
30,200

 
10,600

 
13,900

Recoveries
 
1,193

 
776

 
459

Loans charged-off
 
(28,877
)
 
(6,015
)
 
(6,574
)
Balance, end of year
 
$
26,888

 
$
24,372

 
$
19,011
Roll Forward of Activity
A rollforward of the activity within the allowance for loan losses by loan type and recorded investment in loans for the years ended December 31, 2017 and 2016 is as follows (in thousands):
 
 
December 31, 2017
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
 
 
Coml, fin, and agric
 
Construction
 
Commercial
 
Residential
 
Installment loans to individuals
 
Lease financing receivable
 
Other
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
16,057

 
$
585

 
$
5,384

 
$
940

 
$
1,395

 
$
5

 
$
6

 
$
24,372

Charge-offs
 
(20,451
)
 
(70
)
 
(6,648
)
 
(543
)
 
(1,165
)
 
—

 
—

 
(28,877
)
Recoveries
 
652

 
—

 
162

 
105

 
274

 
—

 
—

 
1,193

Provision
 
24,319

 
81

 
4,995

 
335

 
453

 
(2
)
 
19

 
30,200

Ending balance
 
$
20,577

 
$
596

 
$
3,893

 
$
837

 
$
957

 
$
3

 
$
25

 
$
26,888

Ending balance: individually evaluated for impairment
 
$
7,197

 
$
23

 
$
131

 
$
5

 
$
14

 
$
—

 
$
—

 
$
7,370

Ending balance: collectively evaluated for impairment
 
$
13,380

 
$
573

 
$
3,762

 
$
832

 
$
943

 
$
3

 
$
25

 
$
19,518

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
435,207

 
$
90,287

 
$
448,406

 
$
146,751

 
$
56,398

 
$
732

 
$
5,645

 
$
1,183,426

Ending balance: individually evaluated for impairment
 
$
38,778

 
$
66

 
$
11,128

 
$
618

 
$
48

 
$
—

 
$
—

 
$
50,638

Ending balance: collectively evaluated for impairment
 
$
396,429

 
$
90,221

 
$
437,278

 
$
146,071

 
$
56,350

 
$
732

 
$
5,645

 
$
1,132,726

Ending balance: loans acquired with deteriorated credit quality
 
$
—

 
$
—

 
$
—

 
$
62

 
$
—

 
$
—

 
$
—

 
$
62

 
 
December 31, 2016
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
 
 
Coml, fin, and agric
 
Construction
 
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
 
(4,366
)
 
—

 
(218
)
 
(24
)
 
(1,407
)
 
—

 
—

 
(6,015
)
Recoveries
 
459

 
—

 
123

 
5

 
189

 
—

 
—

 
776

Provision
 
8,696

 
(234
)
 
865

 
143

 
1,145

 
(9
)
 
(6
)
 
10,600

Ending balance
 
$
16,057

 
$
585

 
$
5,384

 
$
940

 
$
1,395

 
$
5

 
$
6

 
$
24,372

Ending balance: individually evaluated for impairment
 
$
4,369

 
$
—

 
$
2,216

 
$
260

 
$
308

 
$
—

 
$
—

 
$
7,153

Ending balance: collectively evaluated for impairment
 
$
11,688

 
$
585

 
$
3,168

 
$
680

 
$
1,087

 
$
5

 
$
6

 
$
17,219

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
459,574

 
$
100,959

 
$
481,155

 
$
157,872

 
$
82,660

 
$
1,095

 
$
767

 
$
1,284,082

Ending balance: individually evaluated for impairment
 
$
31,473

 
$
9

 
$
28,689

 
$
1,826

 
$
541

 
$
—

 
$
—

 
$
62,538

Ending balance: collectively evaluated for impairment
 
$
428,101

 
$
100,950

 
$
451,887

 
$
155,975

 
$
82,119

 
$
1,095

 
$
767

 
$
1,220,894

Ending balance: loans acquired with deteriorated credit quality
 
$
—

 
$
—

 
$
579

 
$
71

 
$
—

 
$
—

 
$
—

 
$
650
Age Analysis of Past Due Loans
An aging analysis of past due loans (including both accruing and non-accruing loans) is as follows (in thousands):
 
 
December 31, 2017
 
 
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
 
$
1,195

 
$
1,893

 
$
14,847

 
$
17,935

 
$
417,272

 
$
435,207

 
$
545

Real estate - construction
 
616

 
—

 
190

 
806

 
89,481

 
90,287

 
125

Real estate - commercial
 
5,889

 
6,402

 
4,163

 
16,454

 
431,952

 
448,406

 
58

Real estate - residential
 
1,065

 
235

 
559

 
1,859

 
144,892

 
146,751

 
—

Installment loans to individuals
 
276

 
32

 
34

 
342

 
56,056

 
56,398

 
—

Lease financing receivable
 
—

 
—

 
—

 
—

 
732

 
732

 
—

Other
 
—

 
—

 
—

 
—

 
5,645

 
5,645

 
—

 
 
$
9,041

 
$
8,562

 
$
19,793

 
$
37,396

 
$
1,146,030

 
$
1,183,426

 
$
728

 
 
 
December 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
 
$
2,297

 
$
902

 
$
31,425

 
$
34,624

 
$
424,950

 
$
459,574

 
$
96

Real estate - construction
 
2,613

 
399

 
9

 
3,021

 
97,938

 
100,959

 
—

Real estate - commercial
 
5,159

 
1,931

 
25,408

 
32,498

 
448,657

 
481,155

 
140

Real estate - residential
 
1,956

 
207

 
1,553

 
3,716

 
154,156

 
157,872

 
16

Installment loans to individuals
 
756

 
36

 
538

 
1,330

 
81,330

 
82,660

 
16

Lease financing receivable
 
—

 
—

 
—

 
—

 
1,095

 
1,095

 
—

Other
 
89

 
5

 
—

 
94

 
673

 
767

 
—

 
 
$
12,870

 
$
3,480

 
$
58,933

 
$
75,283

 
$
1,208,799

 
$
1,284,082

 
$
268
Schedule of Non-Accrual Loans
Non-accrual loans are as follows (in thousands): 
 
 
December 31,
 
 
2017
 
2016
Commercial, financial and agricultural
 
$
37,418

 
$
31,461

Real estate - construction
 
66

 
9

Real estate - commercial
 
11,128

 
28,688

Real estate - residential
 
618

 
1,881

Installment loans to individuals
 
48

 
541

 
 
$
49,278

 
$
62,580
Schedule of Loans that are Individually Evaluated for Impairment
Loans that are individually evaluated for impairment are as follows (in thousands). Interest income recognized represents interest on accruing loans modified in a TDR:
 
 
December 31, 2017
 
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
Average Recorded Investment
 
Interest Income Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Commercial, financial, and agricultural
 
$
24,659

 
$
30,630

 
$
—

 
$
19,880

 
$
90

Real estate - construction
 
—

 
—

 
—

 
5

 
—

Real estate - commercial
 
10,471

 
11,965

 
—

 
11,590

 
—

Real estate - residential
 
302

 
302

 
—

 
602

 
—

Installment loans to individuals
 
—

 
—

 
—

 
37

 
—

Subtotal:
 
35,432

 
42,897

 
—

 
32,114

 
90

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

Commercial, financial, and agricultural
 
14,119

 
14,150

 
7,197

 
15,245

 
1

Real estate – construction
 
66

 
136

 
23

 
33

 
—

Real estate - commercial
 
657

 
657

 
131

 
8,318

 
—

Real estate - residential
 
316

 
316

 
5

 
620

 
—

Installment loans to individuals
 
48

 
50

 
14

 
258

 
—

Subtotal:
 
15,206

 
15,309

 
7,370

 
24,474

 
1

Totals:
 
 

 
 

 
 

 
 

 
 

Commercial
 
49,906

 
57,402

 
7,328

 
55,033

 
91

Construction
 
66

 
136

 
23

 
38

 
—

Residential
 
618

 
618

 
5

 
1,222

 
—

Consumer
 
48

 
50

 
14

 
295

 
—

Grand total:
 
$
50,638

 
$
58,206

 
$
7,370

 
$
56,588

 
$
91

 
 
December 31, 2016
 
 
Recorded Investment
 
Unpaid Principal Balance
 
Related Allowance
 
Average Recorded Investment
 
Interest Income Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Commercial, financial, and agricultural
 
$
15,101

 
$
15,428

 
$
—

 
$
18,815

 
$
115

Real estate - construction
 
9

 
9

 
—

 
23

 
—

Real estate - commercial
 
12,710

 
12,710

 
—

 
9,297

 
14

Real estate - residential
 
903

 
903

 
—

 
1,134

 
—

Installment loans to individuals
 
73

 
87

 
—

 
54

 
—

Subtotal:
 
28,796

 
29,137

 
—

 
29,323

 
129

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

Commercial, financial, and agricultural
 
16,372

 
16,470

 
4,369

 
10,781

 
1

Real estate - commercial
 
15,979

 
15,979

 
2,216

 
14,992

 
—

Real estate - residential
 
923

 
923

 
260

 
730

 
—

Installment loans to individuals
 
468

 
478

 
308

 
419

 
—

Subtotal:
 
33,742

 
33,850

 
7,153

 
26,922

 
1

Totals:
 
 

 
 

 
 

 
 

 
 

Commercial
 
60,162

 
60,587

 
6,585

 
53,885

 
130

Construction
 
9

 
9

 
—

 
23

 
—

Residential
 
1,826

 
1,826

 
260

 
1,864

 
—

Consumer
 
541

 
565

 
308

 
473

 
—

Grand total:
 
$
62,538

 
$
62,987

 
$
7,153

 
$
56,245

 
$
130
Schedule of Classes of Loans by Risk Rating
The following tables present the classes of loans by risk rating (in thousands):
 
 
December 31, 2017
Commercial Credit Exposure
 
 
 
 
 
 
 
 
Credit Risk Profile by Creditworthiness Category
 
 
 
 
 
 
 
 
 
 
Commercial, financial, and agricultural
 
Real estate - commercial
 
Total
 
Percentage of Total
Pass
 
$
358,373

 
$
411,280

 
$
769,653

 
87.10
%
Special mention
 
9,687

 
3,823

 
13,510

 
1.53
%
Substandard
 
67,147

 
33,303

 
100,450

 
11.37
%
 
 
$
435,207

 
$
448,406

 
$
883,613

 
100.00
%
 
Construction Credit Exposure
 
 
 
 
 
 
 
 
Credit Risk Profile by Creditworthiness Category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - construction
 
Percentage of Total
Pass
 
 
 
 
 
$
89,323

 
98.93
%
Special mention
 
 
 
 
 
600

 
0.67
%
Substandard
 
 
 
 
 
364

 
0.40
%
 
 

 

 
$
90,287

 
100.00
%

Residential Credit Exposure
 
 
 
 
 
 
 
 
Credit Risk Profile by Creditworthiness Category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - Residential
 
Percentage of Total
Pass
 

 

 
$
144,250

 
98.30
%
Special mention
 

 

 
1,233

 
0.84
%
Substandard
 

 

 
1,268

 
0.86
%
 
 

 

 
$
146,751

 
100.00
%
 
Consumer and Commercial Credit Exposure
 
 
 
 
 
 
 
 
 
 
Credit Risk Profile Based on Payment Activity
 
 
 
 
 
 
 
 
 
 
 
 
Installment loans to individuals
 
Lease financing receivable
 
Other
 
Total
 
Percentage of Total
Performing
 
$
56,041

 
$
699

 
$
5,645

 
$
62,385

 
99.38
%
Nonperforming
 
357

 
33

 
—

 
390

 
0.62
%
 
 
$
56,398

 
$
732

 
$
5,645

 
$
62,775

 
100.00
%

 
 
December 31, 2016
Commercial Credit Exposure
 
 
 
 
 
 
 
 
Credit Risk Profile by Creditworthiness Category
 
 
 
 
 
 
 
 
 
 
Commercial, financial, and agricultural
 
Real estate - commercial
 
Total
 
Percentage of Total
Pass
 
$
346,246

 
$
420,970

 
$
767,216

 
81.56
%
Special mention
 
22,611

 
23,085

 
45,696

 
4.86
%
Substandard
 
90,300

 
37,100

 
127,400

 
13.54
%
Doubtful
 
417

 
—

 
417

 
0.04
%
 
 
$
459,574

 
$
481,155

 
$
940,729

 
100.00
%
 
Construction Credit Exposure
 
 
 
 
 
 
 
 
Credit Risk Profile by Creditworthiness Category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - construction
 
Percentage of Total
Pass
 
 
 
 
 
$
100,775

 
99.82
%
Special mention
 
 
 
 
 
—

 
—
%
Substandard
 
 
 
 
 
184

 
0.18
%
 
 
 
 
 
 
$
100,959

 
100.00
%

Residential Credit Exposure
 
 
 
 
 
 
 
 
Credit Risk Profile by Creditworthiness Category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Real estate - Residential
 
Percentage of Total
Pass
 
 
 
 
 
$
153,403

 
97.17
%
Special mention
 
 
 
 
 
1,181

 
0.75
%
Substandard
 
 
 
 
 
3,288

 
2.08
%
 
 
 
 
 
 
$
157,872

 
100.00
%
 
Consumer and Commercial Credit Exposure
 
 
 
 
 
 
 
 
 
 
Credit Risk Profile Based on Payment Activity
 
 
 
 
 
 
 
 
 
 
 
 
Installment loans to individuals
 
Lease financing receivable
 
Other
 
Total
 
Percentage of Total
Performing
 
$
82,103

 
$
1,095

 
$
767

 
$
83,965

 
99.34
%
Nonperforming
 
557

 
—

 
—

 
557

 
0.66
%
 
 
$
82,660

 
$
1,095

 
$
767

 
$
84,522

 
100.00
%
Schedule of Modified Troubled Debt Restructurings During the Period
The following tables present information about TDRs that were modified during the years ended December 31:
 
 
 
 
2017
 
2016
 
 
Number of loans
 
Pre-modification recorded investment
 
Number of loans
 
Pre-modification recorded investment
Commercial, financial and agricultural
 
6

 
$
2,002

 
2

 
$
3,943

Real estate – commercial
 
—

 
—

 
2

 
1,572

 
 
6

 
$
2,002

 
4

 
$
5,515
Schedule of Defaults on Troubled Debt Restructurings
The following table presents TDRs that had a payment default during the twelve-month periods ending December 31, 2017 and 2016, and that were modified within the previous 12 months. The Company defines a payment default as any loan that is greater than 30 days past due or was past due greater than 30 days at any point during the reporting period, or since the date of modification, whichever is shorter.

 
 
2017
 
2016
 
 
Recorded Investment
 
Recorded Investment
Commercial, financial and agricultural
 
$
18

 
$
3,943

Real estate – commercial
 
—

 
1,572

 
 
$
18

 
$
5,515
Analysis of Activity in Related Party Loans and Commitments to Extend Credit
An analysis of the 2017 activity with respect to these related party loans and commitments to extend credit is as follows (in thousands):
Balance, beginning of year
$
1,951

New loans
453

Repayments and adjustments
(573
)
Balance, end of year
$
1,831