Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2014

Receivables [Abstract]

Schedule of Details on Loans of Company

The following schedule details the loans of the Company at September 30, 2014 and December 31, 2013:

	(In Thousands)
	September 30, 2014			December 31, 2013
Mortgage Loans on real estate
Residential 1-4 family	$	345,346		$	332,432
Multifamily		13,743			13,920
Commercial		564,744			526,258
Construction and land development		235,324			194,426
Farmland		29,344			22,771
Second mortgages		9,752			10,511
Equity lines of credit		38,404			34,185
Total mortgage loans on real estate		1,236,657			1,134,503
Commercial loans		26,237			29,444
Agricultural loans		2,075			2,099
Consumer installment loans
Personal		37,913			37,789
Credit cards		3,008			3,329
Total consumer installment loans		40,921			41,118
Other loans		7,517			3,291
		1,313,407			1,210,455
Net deferred loan fees		(4,227	)		(3,253	)
Total loans		1,309,180			1,207,202
Less: Allowance for loan losses		(23,314	)		(22,935	)
Net Loans	$	1,285,866		$	1,184,267

Transactions in Allowance for Loan Losses

Transactions in the allowance for loan losses for the nine months ended September 30, 2014 and year ended December 31, 2013 are summarized as follows:

	(In Thousands)
	Residential 1-4 Family			Multifamily			Commercial Real Estate			Construction			Farmland		Second Mortgages			Equity Lines of Credit			Commercial			Agricultural			Installment and Other			Total
September 30, 2014
Allowance for loan losses:
Beginning balance	$	4,935			77			10,918			5,159			618		205			300			395			7			321			22,935
Provision		1,079			(1	)		(1,079	)		830			228		(154	)		(20	)		(591	)		(7	)		79			364
Charge-offs		(372	)		—			(128	)		(7	)		—		—			—			(37	)		—			(213	)		(757	)
Recoveries		47			—			5			140			1		20			1			458			3			97			772
Ending balance	$	5,689			76			9,716			6,122			847		71			281			225			3			284			23,314
Ending balance individually evaluated for impairment	$	316			—			1,753			501			122		—			—			—			—			—			2,692
Ending balance collectively evaluated for impairment	$	5,373			76			7,963			5,621			725		71			281			225			3			284			20,622
Ending balance loans acquired with deteriorated credit quality	$	—			—			—			—			—		—			—			—			—			—			—
Loans:
Ending balance	$	345,346			13,743			564,744			235,324			29,344		9,752			38,404			26,237			2,075			48,438			1,313,407
Ending balance individually evaluated for impairment	$	1,967			—			13,886			2,427			702		—			—			—			—			—			18,982
Ending balance collectively evaluated for impairment	$	343,379			13,743			550,858			232,897			28,642		9,752			38,404			26,237			2,075			48,438			1,294,425
Ending balance loans acquired with deteriorated credit quality	$	—			—			—			—			—		—			—			—			—			—			—

	(In Thousands)
	Residential 1-4 Family			Multifamily			Commercial Real Estate			Construction			Farmland			Second Mortgages			Equity Lines of Credit			Commercial			Agricultural			Installment and Other			Total
December 31, 2013
Allowance for loan losses:
Beginning balance	$	5,699			89			9,305			7,191			1,658			272			492			382			15			394			25,497
Provision		36			(12	)		3,063			(741	)		(266	)		(70	)		(89	)		131			(14	)		139			2,177
Charge-offs		(877	)		—			(1,478	)		(1,470	)		(781	)		(7	)		(104	)		(149	)		(1	)		(380	)		(5,247	)
Recoveries		77			—			28			179			7			10			1			31			7			168			508
Ending balance	$	4,935			77			10,918			5,159			618			205			300			395			7			321			22,935
Ending balance individually evaluated for impairment	$	1,150			—			2,300			950			57			49			10			—			—			—			4,516
Ending balance collectively evaluated for impairment	$	3,785			77			8,618			4,209			561			156			290			395			7			321			18,419
Ending balance loans acquired with deteriorated credit quality	$	—			—			—			—			—			—			—			—			—			—			—
Loans:
Ending balance	$	332,432			13,920			526,258			194,426			22,771			10,511			34,185			29,444			2,099			44,409			1,210,455
Ending balance individually evaluated for impairment	$	4,303			—			17,722			3,806			1,300			761			174			—			—			—			26,896
Ending balance collectively evaluated for impairment	$	328,129			13,920			508,536			190,620			22,641			9,750			34,011			29,444			2,099			44,409			1,183,559
Ending balance loans acquired with deteriorated credit quality	$	—			—			—			—			—			—			—			—			—			—			—

Company's Impaired Loans

The following table presents the Company’s impaired loans at September 30, 2014 and December 31, 2013.

	In Thousands
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
September 30, 2014
With no related allowance recorded:
Residential 1-4 family	$	864		854		—		811		37
Multifamily		—		—		—		—		—
Commercial real estate		6,916		6,899		—		7,528		292
Construction		—		—		—		897		—
Farmland		—		—		—		—		—
Second mortgages		—		—		—		202		—
Equity lines of credit		—		—		—		—		—
Commercial		—		—		—		—		—
Agricultural		—		—		—		—		—
	$	7,780		7,753		—		9,438		329
With allowance recorded:
Residential 1-4 family	$	1,137		1,114		316		1,411		36
Multifamily		—		—		—		—		—
Commercial real estate		7,010		8,689		1,753		5,963		235
Construction		2,427		2,427		501		2,419		—
Farmland		703		702		122		788		5
Second mortgages		—		—		—		—		—
Equity lines of credit		—		—		—		—		—
Commercial		—		—		—		—		—
Agricultural		—		—		—		—		—
	$	11,277		12,932		2,692		10,581		276
Total
Residential 1-4 family	$	2,001		1,968		316		2,222		73
Multifamily		—		—		—		—		—
Commercial real estate		13,926		15,588		1,753		13,491		527
Construction		2,427		2,427		501		3,316		—
Farmland		703		702		122		788		5
Second mortgages		—		—		—		202		—
Equity lines of credit		—		—		—		—		—
Commercial		—		—		—		—		—
Agricultural		—		—		—		—		—
	$	19,057		20,685		2,692		20,019		605

	In Thousands
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
December 31, 2013
With no related allowance recorded:
Residential 1-4 family	$	357		404		—		2,947		16
Multifamily		—		—		—		—		—
Commercial real estate		7,234		7,199		—		3,750		260
Construction		1,393		1,393		—		2,265		11
Farmland		—		—		—		—		—
Second mortgages		606		606		—		665		—
Equity lines of credit		—		—		—		—		—
Commercial		—		—		—		52		—
Agricultural		—		—		—		—		—
	$	9,590		9,602		—		9,679		287
With allowance recorded:
Residential 1-4 family	$	3,972		4,186		1,150		5,107		187
Multifamily		—		—		—		—		—
Commercial real estate		10,589		12,226		2,300		11,834		264
Construction		2,413		2,413		950		5,859		—
Farmland		131		131		57		1,818		8
Second mortgages		156		155		49		157		—
Equity lines of credit		174		174		10		175		9
Commercial		—		—		—		—		—
Agricultural		—		—		—		—		—
	$	17,435		19,285		4,516		24,950		468
Total
Residential 1-4 family	$	4,329		4,590		1,150		8,054		203
Multifamily		—		—		—		—		—
Commercial real estate		17,823		19,425		2,300		15,584		524
Construction		3,806		3,806		950		8,124		11
Farmland		131		131		57		1,818		8
Second mortgages		762		761		49		822		—
Equity lines of credit		174		174		10		175		9
Commercial		—		—		—		52		—
Agricultural		—		—		—		—		—
	$	27,025		28,887		4,516		34,629		755

Summary of Carrying Balances of TDRs

The following table summarizes the carrying balances of TDRs at September 30, 2014 and December 31, 2013.

	September 30, 2014		December 31, 2013
Performing TDRs	$	4,572	$	6,487
Nonperforming TDRs		2,050		758
Total TDRS	$	6,622	$	7,245

Troubled Debt Restructuring Categorized by Loan

The following table outlines the amount of each troubled debt restructuring categorized by loan classification for the nine months ended September 30, 2014 and the year ended December 31, 2013:

	September 30, 2014						December 31, 2013
	Number of Contracts		Pre Modification Outstanding Recorded Investment		Post Modification Outstanding Recorded Investment, Net of Related Allowance		Number of Contracts		Pre Modification Outstanding Recorded Investment		Post Modification Outstanding Recorded Investment, Net of Related Allowance
Residential 1-4 family		3	$	602	$	602		6	$	800	$	800
Multifamily		—		—		—		—		—		—
Commercial real estate		1		22		22		2		5,522		3,291
Construction		—		—		—		1		282		282
Farmland		—		—		—		—		—		—
Second mortgages		—		—		—		1		24		24
Equity lines of credit		—		—		—		—		—		—
Commercial		—		—		—		—		—		—
Agricultural, installment and other		—		—		—		2		13		13
Total		4	$	624	$	624		12	$	6,641	$	4,410

Summary of Loan Portfolio by Risk Rating

The following table is a summary of the Bank’s loan portfolio by risk rating:

	(In Thousands)
	Residential 1-4 Family		Multifamily		Commercial Real Estate		Construction		Farmland		Second Mortgages		Equity Lines of Credit		Commercial		Agricultural		Installment and Other		Total
September 30, 2014
Credit Risk Profile by Internally Assigned Rating
Pass	$	333,565		13,743		540,262		232,262		28,322		9,101		38,181		26,125		2,067		48,286		1,271,914
Special Mention		8,912		—		10,697		582		65		402		176		20		2		27		20,883
Substandard		2,869		—		13,785		2,480		957		249		47		92		6		125		20,610
Doubtful		—		—		—		—		—		—		—		—		—		—		—
Total	$	345,346		13,743		564,744		235,324		29,344		9,752		38,404		26,237		2,075		48,438		1,313,407
December 31, 2013
Credit Risk Profile by Internally Assigned Rating
Pass	$	319,762		13,920		507,769		190,083		22,324		9,135		33,964		29,298		2,089		44,159		1,172,503
Special Mention		9,460		—		5,308		367		64		665		174		26		3		43		16,110
Substandard		3,210		—		13,181		3,976		383		711		47		120		7		207		21,842
Doubtful		—		—		—		—		—		—		—		—		—		—		—
Total	$	332,432		13,920		526,258		194,426		22,771		10,511		34,185		29,444		2,099		44,409		1,210,455