XML 29 R36.htm IDEA: XBRL DOCUMENT v3.20.1
LOANS (Tables)
 12 Months Ended
Dec. 31, 2019
LOANS [Abstract]  
Major Classifications of Loans
Major classifications of loans at year-end are summarized as follows:

  
2019
  
2018
 
Residential real estate
 
$
389,985
  
$
381,027
 
Multifamily real estate
  
36,684
   
54,016
 
Commercial real estate:
        
Owner occupied
  
164,218
   
138,209
 
Non-owner occupied
  
304,316
   
282,608
 
Commercial and industrial
  
105,079
   
103,624
 
Consumer
  
29,007
   
27,688
 
Construction and land
  
136,138
   
128,926
 
All other
  
29,868
   
33,203
 
Total
 
$
1,195,295
  
$
1,149,301
 
Major Classifications of Loans Acquired
The composition of the major classifications of the loans acquired from First National Bank of Jackson at October 25, 2019 are summarized as follows:

  
2019
 
Residential real estate
 
$
15,156
 
Multifamily real estate
  
2,220
 
Commercial real estate:
    
Owner occupied
  
3,364
 
Non owner occupied
  
7,174
 
Commercial and industrial
  
4,133
 
Consumer
  
4,644
 
Construction and land
  
3,116
 
All other
  
1,825
 
  
$
41,632
 
Analysis of Activity with Respect to all Director and Executive Officer Loans
An analysis of the 2019 activity with respect to all director and executive officer loans is as follows:

Balance, December 31, 2018
 
$
12,973
 
Additions, including loans now meeting disclosure requirements
  
7,851
 
Amounts collected and loans no longer meeting disclosure requirements
  
(6,834
)
Balance, December 31, 2019
 
$
13,990
 
Activity in the Allowance for Loan Losses by Portfolio Segment
Activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2019 was as follows:

Loan Class
 
Balance
Dec 31,
2018
  
Provision
(credit) for
loan losses
  
Loans
charged-
off
  
Recoveries
  
Balance
Dec 31,
2019
 
                
Residential real estate
 
$
1,808
  
$
73
  
$
(207
)
 
$
37
  
$
1,711
 
Multifamily real estate
  
1,649
   
298
   
-
   
7
   
1,954
 
Commercial real estate:
                    
Owner occupied
  
2,120
   
880
   
(565
)
  
6
   
2,441
 
Non-owner occupied
  
3,058
   
178
   
(57
)
  
5
   
3,184
 
Commercial and industrial
  
1,897
   
232
   
(418
)
  
56
   
1,767
 
Consumer
  
351
   
81
   
(193
)
  
42
   
281
 
Construction and land
  
2,255
   
(517
)
  
(14
)
  
-
   
1,724
 
All other
  
600
   
25
   
(262
)
  
117
   
480
 
Total
 
$
13,738
  
$
1,250
  
$
(1,716
)
 
$
270
  
$
13,542
 

Activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2018 was as follows:

Loan Class
 
Balance
Dec 31,
2017
  
Provision
(credit) for
loan losses
  
Loans
charged-
off
  
Recoveries
  
Balance
Dec 31,
2018
 
                
Residential real estate
 
$
2,986
  
$
(967
)
 
$
(247
)
 
$
36
  
$
1,808
 
Multifamily real estate
  
978
   
676
   
(11
)
  
6
   
1,649
 
Commercial real estate:
                    
Owner occupied
  
1,653
   
491
   
(25
)
  
1
   
2,120
 
Non-owner occupied
  
2,313
   
839
   
(98
)
  
4
   
3,058
 
Commercial and industrial
  
1,101
   
1,298
   
(545
)
  
43
   
1,897
 
Consumer
  
328
   
121
   
(156
)
  
58
   
351
 
Construction and land
  
2,408
   
(533
)
  
(20
)
  
400
   
2,255
 
All other
  
337
   
390
   
(266
)
  
139
   
600
 
Total
 
$
12,104
  
$
2,315
  
$
(1,368
)
 
$
687
  
$
13,738
 

Activity in the allowance for loan losses by portfolio segment for the year ending December 31, 2017 was as follows:

Loan Class
 
Balance
Dec 31,
2016
  
Provision
(credit) for
loan losses
  
Loans
charged-
off
  
Recoveries
  
Balance
Dec 31,
2017
 
                
Residential real estate
 
$
2,948
  
$
439
  
$
(458
)
 
$
57
  
$
2,986
 
Multifamily real estate
  
785
   
693
   
(500
)
  
-
   
978
 
Commercial real estate:
                    
Owner occupied
  
1,543
   
(100
)
  
(32
)
  
242
   
1,653
 
Non-owner occupied
  
2,350
   
(27
)
  
(10
)
  
-
   
2,313
 
Commercial and industrial
  
1,140
   
51
   
(189
)
  
99
   
1,101
 
Consumer
  
347
   
132
   
(278
)
  
127
   
328
 
Construction and land
  
1,397
   
1,130
   
(129
)
  
10
   
2,408
 
All other
  
326
   
181
   
(307
)
  
137
   
337
 
Total
 
$
10,836
  
$
2,499
  
$
(1,903
)
 
$
672
  
$
12,104
 
Purchased Impaired Loans
The carrying amount of those loans is as follows at December 31, 2019 and December 31, 2018.

  
2019
  
2018
 
Residential real estate
 
$
2,565
  
$
2,665
 
Commercial real estate
        
Owner occupied
  
1,804
   
2,040
 
Non-owner occupied
  
2,628
   
3,434
 
Commercial and industrial
  
305
   
1,720
 
Consumer
  
22
   
-
 
Construction and land
  
483
   
1,212
 
All other
  
174
   
225
 
Total carrying amount
 
$
7,981
  
$
11,296
 
Contractual principal balance
 
$
11,681
  
$
15,436
 
 
        
Carrying amount, net of allowance
 
$
7,981
  
$
11,296
 
Purchase Loans Accretable Yield, or Income Expected to be Collected
The accretable yield, or income expected to be collected, on the purchased loans above is as follows the three years ended December 31, 2019.

  
2019
  
2018
  
2017
 
Balance at January 1
 
$
642
  
$
754
  
$
1,208
 
New loans purchased
  
371
   
139
   
-
 
Accretion of income
  
(180
)
  
(134
)
  
(249
)
Loans placed on non-accrual
  
(82
)
  
(63
)
  
-
 
Income recognized upon full repayment
  
(79
)
  
(38
)
  
(205
)
Reclassifications from non-accretable difference
  
-
   
(16
)
  
-
 
Disposals
  
(53
)
  
-
   
-
 
Balance at December 31
 
$
619
  
$
642
  
$
754
 
Past Due and Non-performing Loans
The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of December 31, 2019 and December 31, 2018.  The recorded investment in non-accrual loans is less than the principal owed on non-accrual loans due to discounts applied to the carrying value of the loan at time of their acquisition or interest payments made by the borrower which have been used to reduce the recorded investment in the loan rather than recognized as interest income.

December 31, 2019
 
Principal
Owed on
Non-accrual
Loans
  
Recorded
Investment in
Non-accrual
Loans
  
Loans Past
Due Over 90
Days, still
accruing
 
          
Residential real estate
 
$
5,801
  
$
4,618
  
$
1,425
 
Multifamily real estate
  
4,113
   
3,726
   
-
 
Commercial real estate
            
Owner occupied
  
3,399
   
2,995
   
-
 
Non-owner occupied
  
3,120
   
1,852
   
340
 
Commercial and industrial
  
1,026
   
420
   
451
 
Consumer
  
364
   
313
   
9
 
Construction and land
  
470
   
440
   
3
 
All other
  
75
   
73
   
-
 
Total
 
$
18,368
  
$
14,437
  
$
2,228
 

December 31, 2018
 
Principal
Owed on
Non-accrual
Loans
  
Recorded
Investment in
Non-accrual
Loans
  
Loans Past
Due Over 90
Days, still
accruing
 
          
Residential real estate
 
$
4,966
  
$
3,708
  
$
954
 
Multifamily real estate
  
4,127
   
3,905
   
-
 
Commercial real estate
            
Owner occupied
  
3,692
   
3,436
   
56
 
Non-owner occupied
  
5,761
   
4,592
   
76
 
Commercial and industrial
  
1,303
   
625
   
-
 
Consumer
  
292
   
253
   
-
 
Construction and land
  
857
   
856
   
-
 
All other
  
75
   
73
   
-
 
Total
 
$
21,073
  
$
17,448
  
$
1,086
 
Aging of Recorded Investment in Past Due Loans by Loan Class
The following table presents the aging of the recorded investment in past due loans as of December 31, 2019 by class of loans:

Loan Class
 
Total Loans
  
30-89 Days
Past Due
  
Greater
than 90
days past
due
  
Total Past
Due
  
Loans Not
Past Due
 
                
Residential real estate
 
$
389,985
  
$
9,479
  
$
3,192
  
$
12,671
  
$
377,314
 
Multifamily real estate
  
36,684
   
-
   
3,726
   
3,726
   
32,958
 
Commercial real estate:
                    
Owner occupied
  
164,218
   
337
   
1,199
   
1,536
   
162,682
 
Non-owner occupied
  
304,316
   
838
   
1,017
   
1,855
   
302,461
 
Commercial and industrial
  
105,079
   
245
   
708
   
953
   
104,126
 
Consumer
  
29,007
   
309
   
230
   
539
   
28,468
 
Construction and land
  
136,138
   
3,856
   
4
   
3,860
   
132,278
 
All other
  
29,868
   
-
   
73
   
73
   
29,795
 
Total
 
$
1,195,295
  
$
15,064
  
$
10,149
  
$
25,213
  
$
1,170,082
 

The following table presents the aging of the recorded investment in past due loans as of December 31, 2018 by class of loans:

Loan Class
 
Total Loans
  
30-89 Days
Past Due
  
Greater
than 90
days past
due
  
Total Past
Due
  
Loans Not
Past Due
 
                
Residential real estate
 
$
381,027
  
$
7,078
  
$
2,594
  
$
9,672
  
$
371,355
 
Multifamily real estate
  
54,016
   
-
   
110
   
110
   
53,906
 
Commercial real estate:
                    
Owner occupied
  
138,209
   
124
   
2,601
   
2,725
   
135,484
 
Non-owner occupied
  
282,608
   
172
   
3,301
   
3,473
   
279,135
 
Commercial and industrial
  
103,624
   
2,235
   
262
   
2,497
   
101,127
 
Consumer
  
27,688
   
247
   
112
   
359
   
27,329
 
Construction and land
  
128,926
   
388
   
810
   
1,198
   
127,728
 
All other
  
33,203
   
546
   
73
   
619
   
32,584
 
Total
 
$
1,149,301
  
$
10,790
  
$
9,863
  
$
20,653
  
$
1,128,648
 
Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment Based on Impairment Method
The following tables presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 and December 31, 2018.
 
December 31, 2019
 
Allowance for Loan Losses
  
Loan Balances
 
Loan Class
 
Individually
Evaluated for
Impairment
  
Collectively
Evaluated for
Impairment
  
Acquired with
Deteriorated
Credit Quality
  
Total
  
Individually
Evaluated for
Impairment
  
Collectively
Evaluated for
Impairment
  
Acquired with
Deteriorated
Credit Quality
  
Total
 
                         
Residential real estate
 
$
-
  
$
1,711
  
$
-
  
$
1,711
  
$
63
  
$
387,357
  
$
2,565
  
$
389,985
 
Multifamily real estate
  
1,737
   
217
   
-
   
1,954
   
3,726
   
32,958
   
-
   
36,684
 
Commercial real estate:
                                
Owner occupied
  
653
   
1,788
   
-
   
2,441
   
2,685
   
159,729
   
1,804
   
164,218
 
Non-owner occupied
  
271
   
2,913
   
-
   
3,184
   
3,830
   
297,858
   
2,628
   
304,316
 
Commercial and industrial
  
390
   
1,377
   
-
   
1,767
   
678
   
104,096
   
305
   
105,079
 
Consumer
  
-
   
281
   
-
   
281
   
-
   
28,985
   
22
   
29,007
 
Construction and land
  
51
   
1,673
   
-
   
1,724
   
431
   
135,224
   
483
   
136,138
 
All other
  
-
   
480
   
-
   
480
   
-
   
29,694
   
174
   
29,868
 
Total
 
$
3,102
  
$
10,440
  
$
-
  
$
13,542
  
$
11,413
  
$
1,175,901
  
$
7,981
  
$
1,195,295
 

December 31, 2018
 
Allowance for Loan Losses
  
Loan Balances
 
Loan Class
 
Individually
Evaluated for
Impairment
  
Collectively
Evaluated for
Impairment
  
Acquired with
Deteriorated
Credit Quality
  
Total
  
Individually
Evaluated for
Impairment
  
Collectively
Evaluated for
Impairment
  
Acquired with
Deteriorated
Credit Quality
  
Total
 
                         
Residential real estate
 
$
-
  
$
1,808
  
$
-
  
$
1,808
  
$
298
  
$
378,064
  
$
2,665
  
$
381,027
 
Multifamily real estate
  
1,281
   
368
   
-
   
1,649
   
3,905
   
50,111
   
-
   
54,016
 
Commercial real estate:
                                
Owner occupied
  
692
   
1,428
   
-
   
2,120
   
2,820
   
133,349
   
2,040
   
138,209
 
Non-owner occupied
  
267
   
2,791
   
-
   
3,058
   
10,111
   
269,063
   
3,434
   
282,608
 
Commercial and industrial
  
414
   
1,483
   
-
   
1,897
   
558
   
101,346
   
1,720
   
103,624
 
Consumer
  
-
   
351
   
-
   
351
   
-
   
27,688
   
-
   
27,688
 
Construction and land
  
142
   
2,113
   
-
   
2,255
   
1,351
   
126,363
   
1,212
   
128,926
 
All other
  
-
   
600
   
-
   
600
   
-
   
32,978
   
225
   
33,203
 
Total
 
$
2,796
  
$
10,942
  
$
-
  
$
13,738
  
$
19,043
  
$
1,118,962
  
$
11,296
  
$
1,149,301
 
Loans Individually Evaluated for Impairment by Class of Loans
The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2019.  The table includes $758 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.

  
Unpaid
Principal
Balance
  
Recorded
Investment
  
Allowance
for Loan
Losses
Allocated
 
With no related allowance recorded:
         
Residential real estate
 
$
188
  
$
63
  
$
-
 
Multifamily real estate
  
96
   
89
   
-
 
Commercial real estate
            
Owner occupied
  
2,201
   
1,842
   
-
 
Non-owner occupied
  
2,512
   
1,732
   
-
 
Commercial and industrial
  
509
   
-
   
-
 
   
5,506
   
3,726
   
-
 
With an allowance recorded:
            
Multifamily real estate
 
$
4,017
  
$
3,637
  
$
1,737
 
Commercial real estate
            
Owner occupied
  
1,189
   
1,162
   
653
 
Non-owner occupied
  
2,654
   
2,537
   
271
 
Commercial and industrial
  
689
   
678
   
390
 
Construction and land
  
460
   
431
   
51
 
   
9,009
   
8,445
   
3,102
 
Total
 
$
14,515
  
$
12,171
  
$
3,102
 

The following table presents loans individually evaluated for impairment by class of loans as of December 31, 2018.  The table includes $1,060 of loans acquired with deteriorated credit quality that the Company cannot reasonably estimate cash flows such that they are accounted for on the cost recovery method and are still individually evaluated for impairment.

  
Unpaid
Principal
Balance
  
Recorded
Investment
  
Allowance
for Loan
Losses
Allocated
 
With no related allowance recorded:
         
Residential real estate
 
$
426
  
$
298
  
$
-
 
Multifamily real estate
  
110
   
110
   
-
 
Commercial real estate
            
Owner occupied
  
1,305
   
1,092
   
-
 
Non-owner occupied
  
8,458
   
7,740
   
-
 
Commercial and industrial
  
531
   
-
   
-
 
Construction and land
  
786
   
786
   
-
 
   
11,616
   
10,026
   
-
 
With an allowance recorded:
            
Multifamily real estate
 
$
4,016
  
$
3,795
  
$
1,281
 
Commercial real estate
            
Owner occupied
  
2,523
   
2,478
   
692
 
Non-owner occupied
  
2,852
   
2,781
   
267
 
Commercial and industrial
  
562
   
558
   
414
 
Construction and land
  
565
   
565
   
142
 
   
10,518
   
10,177
   
2,796
 
Total
 
$
22,134
  
$
20,203
  
$
2,796
 
Average Balance of Loans Individually Evaluated for Impairment and Interest Income Recognized
The following table presents by loan class, the average balance of loans individually evaluated for impairment and interest income recognized on these loans for the three years ended December 31, 2019.  The table includes loans acquired with deteriorated credit quality that are still individually evaluated for impairment.

  
Year ended Dec 31, 2019
  
Year ended Dec 31, 2018
  
Year ended Dec 31, 2017
 
Loan Class
 
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Cash Basis
Interest
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Cash Basis
Interest
Recognized
  
Average
Recorded
Investment
  
Interest
Income
Recognized
  
Cash Basis
Interest
Recognized
 
                            
Residential real estate
 
$
186
  
$
-
  
$
-
  
$
300
  
$
-
  
$
-
  
$
333
  
$
3
  
$
3
 
Multifamily real estate
  
3,803
   
-
   
-
   
2,534
   
11
   
11
   
11,376
   
262
   
246
 
Commercial real estate:
                                    
Owner occupied
  
3,624
   
14
   
15
   
3,094
   
57
   
57
   
3,335
   
74
   
74
 
Non-owner occupied
  
8,062
   
712
   
712
   
9,226
   
412
   
412
   
4,680
   
213
   
213
 
Commercial and industrial
  
549
   
4
   
4
   
904
   
22
   
22
   
1,480
   
123
   
123
 
Construction and land
  
814
   
123
   
123
   
3,977
   
24
   
15
   
7,804
   
314
   
309
 
All other
  
-
   
-
   
-
   
173
   
10
   
10
   
302
   
18
   
18
 
Total
 
$
17,038
  
$
854
  
$
855
  
$
20,208
  
$
536
  
$
527
  
$
29,310
  
$
1,007
  
$
986
 
Troubled Debt Restructurings
The following table presents TDR’s as of December 31, 2019 and 2018:

December 31, 2019
 
TDR’s on
Non-accrual
  
Other
TDR’s
  
Total
TDR’s
 
          
Residential real estate
 
$
32
  
$
157
  
$
189
 
Multifamily real estate
  
3,636
   
-
   
3,636
 
Commercial real estate
            
Owner occupied
  
1,162
   
207
   
1,369
 
Non-owner occupied
  
-
   
2,656
   
2,656
 
Commercial and industrial
  
191
   
-
   
191
 
Total
 
$
5,021
  
$
3,020
  
$
8,041
 

December 31, 2018
 
TDR’s on
Non-accrual
  
Other
TDR’s
  
Total
TDR’s
 
          
Residential real estate
 
$
347
  
$
97
  
$
444
 
Multifamily real estate
  
3,795
   
-
   
3,795
 
Commercial real estate
            
Owner occupied
  
1,647
   
222
   
1,869
 
Non-owner occupied
  
-
   
5,964
   
5,964
 
Commercial and industrial
  
191
   
-
   
191
 
Total
 
$
5,980
  
$
6,283
  
$
12,263
 
Risk Category of Loans by Class of Loans
As of December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class
 
Pass
  
Special
Mention
  
Substandard
  
Doubtful
  
Total
Loans
 
                
Residential real estate
 
$
374,835
  
$
3,477
  
$
11,673
  
$
-
  
$
389,985
 
Multifamily real estate
  
28,103
   
4,855
   
3,726
   
-
   
36,684
 
Commercial real estate:
                    
Owner occupied
  
152,695
   
5,123
   
6,400
   
-
   
164,218
 
Non-owner occupied
  
290,096
   
8,617
   
5,603
   
-
   
304,316
 
Commercial and industrial
  
101,085
   
2,693
   
1,301
   
-
   
105,079
 
Consumer
  
28,618
   
5
   
384
   
-
   
29,007
 
Construction and land
  
123,473
   
11,868
   
797
   
-
   
136,138
 
All other
  
29,698
   
97
   
73
   
-
   
29,868
 
Total
 
$
1,128,603
  
$
36,735
  
$
29,957
  
$
-
  
$
1,195,295
 

As of December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows:

Loan Class
 
Pass
  
Special
Mention
  
Substandard
  
Doubtful
  
Total
Loans
 
                
Residential real estate
 
$
369,808
  
$
1,376
  
$
9,681
  
$
162
  
$
381,027
 
Multifamily real estate
  
45,187
   
4,924
   
3,905
   
-
   
54,016
 
Commercial real estate:
                    
Owner occupied
  
126,422
   
4,840
   
6,947
   
-
   
138,209
 
Non-owner occupied
  
262,149
   
7,647
   
12,812
   
-
   
282,608
 
Commercial and industrial
  
96,066
   
5,280
   
2,278
   
-
   
103,624
 
Consumer
  
27,344
   
31
   
313
   
-
   
27,688
 
Construction and land
  
107,196
   
19,728
   
2,002
   
-
   
128,926
 
All other
  
32,749
   
381
   
73
   
-
   
33,203
 
Total
 
$
1,066,921
  
$
44,207
  
$
38,011
  
$
162
  
$
1,149,301