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Credit Quality of Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2014
Credit Quality of Loans and Allowance for Loan Losses [Abstract]  
Components of Loans Receivable
The loan portfolio consisted of the following (in thousands):
 
 
 
June 30, 2014
  
December 31, 2013
 
Commercial, financial and agricultural
 
$
454,310
  
$
403,976
 
Real estate - construction
  
86,238
   
82,691
 
Real estate – commercial
  
413,565
   
397,135
 
Real estate – residential
  
153,082
   
146,841
 
Installment loans to individuals
  
108,581
   
97,459
 
Lease financing receivable
  
4,750
   
5,542
 
Other
  
3,656
   
3,910
 
 
  
1,224,182
   
1,137,554
 
Less allowance for loan losses
  
(9,075
)
  
(8,779
)
 
 
$
1,215,107
  
$
1,128,775
 
Allowance for Loan Losses and Recorded Investment in Loans
A rollforward of the activity within the allowance for loan losses by loan type and recorded investment in loans for the six months ended June 30, 2014 and 2013 is as follows (in thousands):

 
 
June 30, 2014
 
 
 
  
Real Estate
  
  
  
  
 
 
 
Coml, Fin,
and Agric
  
Construction
  
Commercial
  
Residential
  
Consumer
  
Finance
Leases Coml
  
Other
  
Total
 
Allowance for loan losses:
 
  
  
  
  
  
  
  
 
Beginning balance
 
$
3,906
  
$
1,046
  
$
1,389
  
$
1,141
  
$
1,273
  
$
21
  
$
3
  
$
8,779
 
Charge-offs
  
(1,135
)
  
-
   
(17
)
  
(176
)
  
(350
)
  
-
   
-
   
(1,678
)
Recoveries
  
42
   
-
   
42
   
39
   
101
   
-
   
-
   
224
 
Provision
  
1,970
   
(53
)
  
(23
)
  
(325
)
  
184
   
(4
)
  
1
   
1,750
 
Ending balance
 
$
4,783
  
$
993
  
$
1,391
  
$
679
  
$
1,208
  
$
17
  
$
4
  
$
9,075
 
Ending balance: individually evaluated for impairment
 
$
208
  
$
3
  
$
55
  
$
152
  
$
145
  
$
-
  
$
-
  
$
563
 
Ending balance: collectively evaluated for impairment
 
$
4,575
  
$
990
  
$
1,336
  
$
527
  
$
1,063
  
$
17
  
$
4
  
$
8,512
 
 
                                
Loans:
                                
Ending balance
 
$
454,310
  
$
86,238
  
$
413,565
  
$
153,082
  
$
108,581
  
$
4,750
  
$
3,656
  
$
1,224,182
 
Ending balance: individually evaluated for impairment
 
$
1,793
  
$
152
  
$
3,234
  
$
1,214
  
$
340
  
$
-
  
$
-
  
$
6,733
 
Ending balance: collectively evaluated for impairment
 
$
452,517
  
$
86,086
  
$
409,631
  
$
151,763
  
$
108,241
  
$
4,750
  
$
3,656
  
$
1,216,644
 
Ending balance: loans acquired with deteriorated credit quality
 
$
-
  
$
-
  
$
700
  
$
105
  
$
-
  
$
-
  
$
-
  
$
805
 
 
      
June 30, 2013
 
 
 
  
Real Estate
  
  
  
  
 
 
 
Coml, Fin,
and Agric
  
Construction
  
Commercial
  
Residential
  
Consumer
  
Finance
Leases Coml
  
Other
  
Total
 
Allowance for loan losses:
 
  
  
  
  
  
  
  
 
Beginning balance
 
$
1,535
  
$
2,147
  
$
2,166
  
$
936
  
$
543
  
$
41
  
$
2
  
$
7,370
 
Charge-offs
  
(245
)
  
-
   
(18
)
  
(115
)
  
(413
)
  
-
   
-
   
(791
)
Recoveries
  
39
   
5
   
15
   
26
   
67
   
-
   
-
   
152
 
Provision
  
2,364
   
(1,061
)
  
80
   
(328
)
  
760
   
(17
)
  
2
   
1,800
 
Ending balance
 
$
3,693
  
$
1,091
  
$
2,243
  
$
519
  
$
957
  
$
24
  
$
4
  
$
8,531
 
Ending balance: individually evaluated for impairment
 
$
328
  
$
54
  
$
21
  
$
68
  
$
128
  
$
-
  
$
-
  
$
599
 
Ending balance: collectively evaluated for impairment
 
$
3,365
  
$
1,037
  
$
2,222
  
$
451
  
$
829
  
$
24
  
$
4
  
$
7,932
 
 
                                
Loans:
                                
Ending balance
 
$
391,241
  
$
82,851
  
$
404,543
  
$
141,689
  
$
90,571
  
$
5,656
  
$
2,021
  
$
1,118,572
 
Ending balance: individually evaluated for impairment
 
$
1,648
  
$
262
  
$
2,556
  
$
1,024
  
$
315
  
$
-
  
$
-
  
$
5,805
 
Ending balance: collectively evaluated for impairment
 
$
389,593
  
$
82,589
  
$
401,277
  
$
140,375
  
$
90,256
  
$
5,656
  
$
2,021
  
$
1,111,767
 
Ending balance: loans acquired with deteriorated credit quality
 
$
-
  
$
-
  
$
710
  
$
290
  
$
-
  
$
-
  
$
-
  
$
1,000
 
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):

 
 
June 30, 2014
 
 
 
  
  
  
  
  
  
 
 
 
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
 
$
1,846
  
$
790
  
$
1,591
  
$
4,227
  
$
450,083
  
$
454,310
  
$
27
 
Commercial real estate - construction
  
58
   
-
   
73
   
131
   
62,626
   
62,757
   
-
 
Commercial real estate - other
  
1,658
   
378
   
2,902
   
4,938
   
408,627
   
413,565
   
159
 
Residential - construction
  
-
   
-
   
44
   
44
   
23,437
   
23,481
   
-
 
Residential - prime
  
763
   
33
   
905
   
1,701
   
151,381
   
153,082
   
-
 
Consumer - credit card
  
22
   
8
   
17
   
47
   
5,957
   
6,004
   
17
 
Consumer - other
  
514
   
321
   
333
   
1,168
   
101,409
   
102,577
   
-
 
Lease financing receivable
  
-
   
-
   
-
   
-
   
4,750
   
4,750
   
-
 
Other loans
  
118
   
5
   
-
   
123
   
3,533
   
3,656
   
-
 
 
 
$
4,979
  
$
1,535
  
$
5,865
  
$
12,379
  
$
1,211,803
  
$
1,224,182
  
$
203
 

 
 
December 31, 2013
 
 
 
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
 
$
4,350
  
$
208
  
$
1,256
  
$
5,814
  
$
398,162
  
$
403,976
  
$
26
 
Commercial real estate - construction
  
36
   
-
   
63
   
99
   
64,794
   
64,893
   
-
 
Commercial real estate - other
  
1,230
   
1,447
   
2,395
   
5,072
   
392,063
   
397,135
   
141
 
Residential - construction
  
149
   
-
   
-
   
149
   
17,649
   
17,798
   
-
 
Residential - prime
  
2,984
   
870
   
307
   
4,161
   
142,680
   
146,841
   
-
 
Consumer - credit card
  
36
   
-
   
7
   
43
   
6,163
   
6,206
   
7
 
Consumer - other
  
767
   
102
   
269
   
1,138
   
90,115
   
91,253
   
4
 
Lease financing receivable
  
-
   
-
   
-
   
-
   
5,542
   
5,542
   
-
 
Other loans
  
125
   
-
   
-
   
125
   
3,785
   
3,910
   
-
 
 
 
$
9,677
  
$
2,627
  
$
4,297
  
$
16,601
  
$
1,120,953
  
$
1,137,554
  
$
178
 
Loans on Nonaccrual Status
Non-accrual loans are as follows (in thousands):
 
 
 
June 30, 2014
  
December 31, 2013
 
Commercial, financial, and agricultural
 
$
1,779
  
$
1,272
 
Commercial real estate – construction
  
108
   
100
 
Commercial real estate - other
  
3,296
   
2,290
 
Residential - construction
  
44
   
-
 
Residential - prime
  
1,340
   
1,153
 
Consumer - credit card
  
-
   
-
 
Consumer - other
  
346
   
284
 
Lease financing receivable
  
-
   
-
 
Other
  
-
   
-
 
 
 
$
6,913
  
$
5,099
 
Impaired Loans by Class of Loans
Loans that are individually evaluated for impairment are as follows (in thousands):

 
 
June 30, 2014
 
 
 
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
 
  
  
  
  
 
Commercial, financial, and agricultural
 
$
508
  
$
901
  
$
-
  
$
1,175
  
$
-
 
Commercial real estate – construction
  
69
   
69
   
-
   
71
   
-
 
Commercial real estate – other
  
2,869
   
3,343
   
-
   
2,783
   
2
 
Residential – prime
  
469
   
469
   
-
   
499
   
1
 
Residential – construction
  
44
   
44
   
-
   
44
   
-
 
Consumer – other
  
64
   
64
   
-
   
62
   
-
 
Subtotal:
  
4,023
   
4,890
   
-
   
4,634
   
3
 
With an allowance recorded:
                    
Commercial, financial, and agricultural
  
1,285
   
1,285
   
208
   
858
   
1
 
Commercial real estate – construction
  
39
   
39
   
3
   
39
   
1
 
Commercial real estate – other
  
365
   
365
   
55
   
431
   
-
 
Residential – prime
  
745
   
764
   
152
   
583
   
10
 
Consumer – other
  
276
   
291
   
145
   
254
   
1
 
Subtotal:
  
2,710
   
2,744
   
563
   
2,165
   
13
 
Totals:
                    
Commercial
  
5,027
   
5,894
   
263
   
5,247
   
3
 
Residential
  
1,214
   
1,233
   
152
   
1,082
   
11
 
Construction
  
152
   
152
   
3
   
154
   
1
 
Consumer
  
340
   
355
   
145
   
316
   
1
 
Grand total:
 
$
6,733
  
$
7,634
  
$
563
  
$
6,799
  
$
16
 
 
 
 
December 31, 2013
 
 
 
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
 
  
  
  
  
 
Commercial, financial, and agricultural
 
$
671
  
$
1,107
  
$
-
  
$
617
  
$
3
 
Commercial real estate – construction
  
61
   
61
   
-
   
416
   
-
 
Commercial real estate – other
  
1,850
   
2,324
   
-
   
2,190
   
8
 
Residential – prime
  
525
   
525
   
-
   
1,050
   
14
 
Consumer – other
  
66
   
66
   
-
   
90
   
1
 
Subtotal:
  
3,173
   
4,083
   
-
   
4,363
   
26
 
With an allowance recorded:
                    
Commercial, financial, and agricultural
  
570
   
570
   
168
   
821
   
3
 
Commercial real estate – construction
  
39
   
39
   
3
   
102
   
1
 
Commercial real estate – other
  
363
   
363
   
54
   
372
   
11
 
Residential – prime
  
375
   
395
   
60
   
214
   
4
 
Consumer – other
  
205
   
205
   
120
   
211
   
2
 
Subtotal:
  
1,552
   
1,572
   
405
   
1,720
   
21
 
Totals:
                    
Commercial
  
3,454
   
4,364
   
222
   
4,000
   
25
 
Residential
  
900
   
920
   
60
   
1,264
   
18
 
Construction
  
100
   
100
   
3
   
518
   
1
 
Consumer
  
271
   
271
   
120
   
301
   
3
 
Grand total:
 
$
4,725
  
$
5,655
  
$
405
  
$
6,083
  
$
47
 
Credit Quality Indicators by Class of Loans
The following tables present the classes of loans by risk rating (in thousands):
 
 
 
June 30, 2014
 
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
 
$
443,503
  
$
62,615
  
$
387,732
  
$
893,850
   
96.05
%
Special mention
  
6,303
   
34
   
8,269
   
14,606
   
1.57
%
Substandard
  
4,250
   
108
   
17,564
   
21,922
   
2.35
%
Doubtful
  
254
   
-
   
-
   
254
   
0.03
%
 
 
$
454,310
  
$
62,757
  
$
413,565
  
$
930,632
   
100.00
%
 
Residential Credit Exposure
 
  
  
  
 
Credit Risk Profile by
Creditworthiness Category
 
  
  
  
 
 
 
Residential -
construction
  
Residential -
prime
  
Total
  
% of Total
 
Pass
 
$
23,437
  
$
148,562
  
$
171,999
   
97.42
%
Special mention
  
-
   
444
   
444
   
0.25
%
Substandard
  
44
   
4,076
   
4,120
   
2.33
%
 
 
$
23,481
  
$
153,082
  
$
176,563
   
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
 
$
5,995
  
$
102,178
  
$
4,750
  
$
3,656
  
$
116,579
   
99.65
%
Nonperforming
  
9
   
399
   
-
   
-
   
408
   
0.35
%
 
 
$
6,004
  
$
102,577
  
$
4,750
  
$
3,656
  
$
116,987
   
100.00
%
 
 
 
December 31, 2013
 
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
 
$
397,513
  
$
63,577
  
$
371,618
  
$
832,708
   
96.15
%
Special mention
  
2,962
   
49
   
8,781
   
11,792
   
1.36
%
Substandard
  
3,272
   
1,267
   
16,736
   
21,275
   
2.46
%
Doubtful
  
229
   
-
   
-
   
229
   
0.03
%
 
 
$
403,976
  
$
64,893
  
$
397,135
  
$
866,004
   
100.00
%
 
 
 
  
  
  
 
Residential Credit Exposure
 
  
  
  
 
Credit Risk Profile by
Creditworthiness Category
 
  
  
  
 
 
 
Residential -
construction
  
Residential -
prime
  
Total
  
% of Total
 
Pass
 
$
17,798
  
$
143,790
  
$
161,588
   
98.15
%
Special mention
  
-
   
548
   
548
   
0.33
%
Substandard
  
-
   
2,503
   
2,503
   
1.52
%
 
 
$
17,798
  
$
146,841
  
$
164,639
   
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
 
$
6,196
  
$
90,978
  
$
5,542
  
$
3,910
  
$
106,626
   
99.73
%
Nonperforming
  
10
   
275
   
-
   
-
   
285
   
0.27
%
 
 
$
6,206
  
$
91,253
  
$
5,542
  
$
3,910
  
$
106,911
   
100.00
%
Modifications by Class of Loans
Information about the Company’s TDRs is as follows (in thousands):

 
 
June 30, 2014
 
 
 
Current
  
Past Due
Greater
Than 30
Days
  
Nonaccrual TDRs
  
Total TDRs
 
Commercial, financial and agricultural
 
$
23
  
$
-
  
$
234
  
$
257
 
Real estate - commercial
  
160
   
-
   
-
   
160
 
 
 
$
183
  
$
-
  
$
234
  
$
417
 
 
 
December 31, 2013
 
 
Current
  
Past Due
Greater
Than 30
Days
  
Nonaccrual TDRs
  
Total TDRs
 
Commercial, financial and agricultural
 
$
-
  
$
23
  
$
233
  
$
256
 
Real estate - commercial
  
156
   
-
   
-
   
156
 
 
$
156
  
$
23
  
$
233
  
$
412