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LOANS (Tables)
 12 Months Ended
Dec. 31, 2014
LOANS [Abstract]  
Components of Loans Receivable
The loan portfolio consisted of the following (in thousands):
 
  
December 31,
 
  
2014
  
2013
 
Commercial, financial and agricultural
 
$
467,147
  
$
403,976
 
Real estate – construction
  
68,577
   
82,691
 
Real estate – commercial
  
467,172
   
397,135
 
Real estate – residential
  
154,602
   
146,841
 
Installment loans to individuals
  
119,328
   
97,459
 
Lease financing receivable
  
4,857
   
5,542
 
Other
  
2,748
   
3,910
 
   
1,284,431
   
1,137,554
 
Less allowance for loan losses
  
(11,226
)
  
(8,779
)
  
$
1,273,205
  
$
1,128,775
 
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,
 
  
2014
  
2013
  
2012
 
Balance, beginning of year
 
$
8,779
  
$
7,370
  
$
7,276
 
Provision for loan losses
  
5,625
   
3,050
   
2,050
 
Recoveries
  
738
   
265
   
300
 
Loans charged-off
  
(3,916
)
  
(1,906
)
  
(2,256
)
Balance, end of year
 
$
11,226
  
$
8,779
  
$
7,370
 
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 years ended December 31, 2014 and 2013 is as follows (in thousands):
 
  
December 31, 2014
 
    
Real Estate
         
  
Coml, fin,
and agric
  
Construction
  
Commercial
  
Residential
  
Installment loans to individuals
  
Lease financing receivable
  
Other
  
Total
 
Allowance for loan losses:
                
Beginning balance
 
$
3,906
  
$
1,046
  
$
1,389
  
$
1,141
  
$
1,273
  
$
21
  
$
3
  
$
8,779
 
Charge-offs
  
(2,843
)
  
(1
)
  
(93
)
  
(273
)
  
(706
)
  
-
   
-
   
(3,916
)
Recoveries
  
164
   
-
   
407
   
47
   
120
   
-
   
-
   
738
 
Provision
  
4,502
   
(91
)
  
699
   
(105
)
  
624
   
(5
)
  
1
   
5,625
 
Ending balance
 
$
5,729
  
$
954
  
$
2,402
  
$
810
  
$
1,311
  
$
16
  
$
4
  
$
11,226
 
Ending balance: individually evaluated for impairment
 
$
1,010
  
$
-
  
$
907
  
$
68
  
$
179
  
$
-
  
$
-
  
$
2,164
 
Ending balance: collectively evaluated for impairment
 
$
4,719
  
$
954
  
$
1,495
  
$
742
  
$
1,132
  
$
16
  
$
4
  
$
9,062
 
                                 
Loans:
                                
Ending balance
 
$
467,147
  
$
68,577
  
$
467,172
  
$
154,602
  
$
119,328
  
$
4,857
  
$
2,748
  
$
1,284,431
 
Ending balance: individually evaluated for impairment
 
$
2,656
  
$
54
  
$
6,388
  
$
1,072
  
$
377
  
$
-
  
$
-
  
$
10,547
 
Ending balance: collectively evaluated for impairment
 
$
464,491
  
$
68,523
  
$
460,118
  
$
153,436
  
$
118,951
  
$
4,857
  
$
2,748
  
$
1,273,124
 
Ending balance: loans acquired with deteriorated credit quality
 
$
-
  
$
-
  
$
666
  
$
94
  
$
-
  
$
-
  
$
-
  
$
760
 
 
  
December 31, 2013
   
    
Real Estate
         
  
Coml, fin, and agric
  
Construction
  
Commercial
  
Residential
  
Installment loans to individuals
  
Lease financing receivable
  
Other
  
Total
 
Allowance for loan losses:
                
Beginning balance
 
$
1,535
  
$
2,147
  
$
2,166
  
$
936
  
$
543
  
$
41
  
$
2
  
$
7,370
 
Charge-offs
  
(935
)
  
-
   
(18
)
  
(129
)
  
(824
)
  
-
   
-
   
(1,906
)
Recoveries
  
80
   
8
   
29
   
39
   
109
   
-
   
-
   
265
 
Provision
  
3,226
   
(1,109
)
  
(788
)
  
295
   
1,445
   
(20
)
  
1
   
3,050
 
Ending balance
 
$
3,906
  
$
1,046
  
$
1,389
  
$
1,141
  
$
1,273
  
$
21
  
$
3
  
$
8,779
 
Ending balance: individually evaluated for impairment
 
$
168
  
$
3
  
$
54
  
$
60
  
$
120
  
$
-
  
$
-
  
$
405
 
Ending balance: collectively evaluated for impairment
 
$
3,738
  
$
1,043
  
$
1,335
  
$
1,081
  
$
1,153
  
$
21
  
$
3
  
$
8,374
 
                                 
Loans:
                                
Ending balance
 
$
403,976
  
$
82,691
  
$
397,135
  
$
146,841
  
$
97,459
  
$
5,542
  
$
3,910
  
$
1,137,554
 
Ending balance: individually evaluated for impairment
 
$
1,241
  
$
100
  
$
2,213
  
$
900
  
$
271
  
$
-
  
$
-
  
$
4,725
 
Ending balance: collectively evaluated for impairment
 
$
402,735
  
$
82,591
  
$
394,218
  
$
145,773
  
$
97,188
  
$
5,542
  
$
3,910
  
$
1,131,957
 
Ending balance: loans acquired with deteriorated credit quality
 
$
-
  
$
-
  
$
704
  
$
168
  
$
-
  
$
-
  
$
-
  
$
872
 
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):
 
  
December 31, 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
 
$
2,179
  
$
654
  
$
2,556
  
$
5,389
  
$
461,758
  
$
467,147
  
$
26
 
Commercial real estate - construction
  
15
   
-
   
105
   
120
   
43,390
   
43,510
   
97
 
Commercial real estate - other
  
4,989
   
270
   
2,464
   
7,723
   
459,449
   
467,172
   
-
 
Residential - construction
  
431
   
-
   
-
   
431
   
24,636
   
25,067
   
-
 
Residential - prime
  
1,843
   
523
   
704
   
3,070
   
151,532
   
154,602
   
-
 
Consumer - credit card
  
5
   
19
   
18
   
42
   
5,970
   
6,012
   
18
 
Consumer - other
  
671
   
392
   
107
   
1,170
   
112,146
   
113,316
   
46
 
Lease financing receivable
  
-
   
-
   
-
   
-
   
4,857
   
4,857
   
-
 
Other loans
  
134
   
-
   
-
   
134
   
2,614
   
2,748
   
-
 
  
$
10,267
  
$
1,858
  
$
5,954
  
$
18,079
  
$
1,266,352
  
$
1,284,431
  
$
187
 
 
  
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):
 
  
December 31,
 
  
2014
  
2013
 
Commercial, financial and agricultural
 
$
2,642
  
$
1,272
 
Commercial real estate – construction
  
54
   
100
 
Commercial real estate – other
  
6,429
   
2,290
 
Residential - construction
  
-
   
-
 
Residential - prime
  
1,194
   
1,153
 
Consumer – credit card
  
-
   
-
 
Consumer - other
  
382
   
284
 
Lease financing receivable
  
-
   
-
 
Other
  
-
   
-
 
  
$
10,701
  
$
5,099
 
Impaired Loans by Class of Loans
Loans that are individually evaluated for impairment are as follows (in thousands):
 
  
December 31, 2014
 
  
Recorded Investment
  
Unpaid Principal Balance
  
Related Allowance
  
Average Recorded Investment
  
Interest Income Recognized
 
With no related allowance recorded:
          
Commercial, financial, and agricultural
 
$
438
  
$
521
  
$
-
  
$
554
  
$
-
 
Commercial real estate – construction
  
54
   
54
   
-
   
58
   
-
 
Commercial real estate – other
  
1,921
   
1,921
   
-
   
1,885
   
17
 
Residential – prime
  
543
   
543
   
-
   
534
   
15
 
Consumer – other
  
78
   
78
   
-
   
72
   
-
 
Subtotal:
  
3,034
   
3,117
   
-
   
3,103
   
32
 
With an allowance recorded:
                    
Commercial, financial, and agricultural
  
2,218
   
2,333
   
1,010
   
1,394
   
35
 
Commercial real estate – construction
  
-
   
-
   
-
   
19
   
-
 
Commercial real estate – other
  
4,467
   
4,467
   
907
   
2,416
   
220
 
Residential – prime
  
529
   
548
   
68
   
452
   
3
 
Consumer – other
  
299
   
313
   
179
   
252
   
4
 
Subtotal:
  
7,513
   
7,661
   
2,164
   
4,533
   
262
 
Totals:
                    
Commercial
  
9,098
   
9,296
   
1,917
   
6,326
   
272
 
Residential
  
1,072
   
1,091
   
68
   
986
   
18
 
Consumer
  
377
   
391
   
179
   
324
   
4
 
Grand total:
 
$
10,547
  
$
10,778
  
$
2,164
  
$
7,636
  
$
294
 
 
  
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
  
3,554
   
4,464
   
225
   
4,518
   
26
 
Residential
  
900
   
920
   
60
   
1,264
   
18
 
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):
 
  
December 31, 2014
   
Commercial Credit Exposure
        
Credit Risk Profile by Creditworthiness Category
        
  
Commercial, financial, and agricultural
  
Commercial real estate –construction
  
Commercial real estate – other
  
Percentage of Total
 
Pass
 
$
456,221
  
$
43,320
  
$
440,281
   
96.11
%
Special mention
  
4,861
   
132
   
7,120
   
1.24
%
Substandard
  
5,541
   
58
   
19,771
   
2.60
%
Doubtful
  
524
   
-
   
-
   
0.05
%
  
$
467,147
  
$
43,510
  
$
467,172
   
100.00
%
 
Consumer Credit Exposure
        
Credit Risk Profile by Creditworthiness Category
        
  
Residential – construction
  
Residential – prime
  
Residential – subprime
  
Percentage of Total
 
Pass
 
$
25,067
  
$
150,664
  
$
-
   
97.81
%
Special mention
  
-
   
1,184
   
-
   
0.66
%
Substandard
  
-
   
2,754
   
-
   
1.53
%
  
$
25,067
  
$
154,602
  
$
-
   
100.00
%
 
Consumer and Commercial Credit Exposure
          
Credit Risk Profile Based on Payment Activity
          
  
Consumer - credit card
  
Consumer –other
  
Lease financing receivable
  
Other
  
Percentage of Total
 
Performing
 
$
5,995
  
$
112,893
  
$
4,857
  
$
2,748
   
99.65
%
Nonperforming
  
17
   
423
   
-
   
-
   
0.35
%
  
$
6,012
  
$
113,316
  
$
4,857
  
$
2,748
   
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
  
Percentage of Total
 
Pass
 
$
397,513
  
$
63,577
  
$
371,618
   
96.15
%
Special mention
  
2,962
   
49
   
8,781
   
1.36
%
Substandard
  
3,272
   
1,267
   
16,736
   
2.46
%
Doubtful
  
229
   
-
   
-
   
0.03
%
  
$
403,976
  
$
64,893
  
$
397,135
   
100.00
%
 
Consumer Credit Exposure
        
Credit Risk Profile by Creditworthiness Category
        
  
Residential – construction
  
Residential – prime
  
Residential – subprime
  
Percentage of Total
 
Pass
 
$
17,798
  
$
143,790
  
$
-
   
98.15
%
Special mention
  
-
   
548
   
-
   
0.33
%
Substandard
  
-
   
2,503
   
-
   
1.52
%
  
$
17,798
  
$
146,841
  
$
-
   
100.00
%
 
Consumer and Commercial Credit Exposure
          
Credit Risk Profile Based on Payment Activity
          
  
Consumer - credit card
  
Consumer –other
  
Lease financing receivable
  
Other
  
Percentage of Total
 
Performing
 
$
6,196
  
$
90,978
  
$
5,542
  
$
3,910
   
99.73
%
Nonperforming
  
10
   
275
   
-
   
-
   
0.27
%
  
$
6,206
  
$
91,253
  
$
5,542
  
$
3,910
   
100.00
%
Modifications by Class of Loans
Information about the Company’s TDRs is as follows (in thousands):
 
  
December 31, 2014
 
  
Current
  
Past Due Greater Than 30 Days
  
Nonaccrual TDRs
  
Total TDRs
 
Commercial, financial and agricultural
 
$
21
  
$
-
  
$
234
  
$
255
 
Real estate - commercial
  
155
   
-
   
-
   
155
 
  
$
176
  
$
-
  
$
234
  
$
410
 
 
  
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
 
Activity in Related Party Loans and Commitments to Extend Credit
An analysis of the 2014 activity with respect to these related party loans and commitments to extend credit is as follows (in thousands):
 
Balance, beginning of year
 
$
3,114
 
New loans
  
407
 
Repayments and adjustments
  
(544
)
Balance, end of year
 
$
2,977