Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2018

Schedule of changes in the allowance for loan losses

The following table presents the changes in the allowance for loan losses by major classification during the nine months ended September 30, 2018:


	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance for loan losses:
Balance at December 31, 2017	$	2,371	$	605	$	7,478	$	688	$	231	$	24,353	$	35,726
Provision charged (credited) to operations		(122)		174		(625)		450		123		7,700		7,700
Loans charged off		—		—		(2)		—		(248)		(11,743)		(11,993)
Recoveries of loans previously charged off		52		—		46		—		174		3,254		3,526
Balance at September 30, 2018	$	2,301	$	779	$	6,897	$	1,138	$	280	$	23,564	$	34,959

The following table presents the changes in the allowance for loan losses by major classification during the nine months ended September 30, 2017:


	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance for loan losses:
Balance at December 31, 2016	$	2,559	$	816	$	7,393	$	685	$	261	$	25,352	$	37,066
Provision charged (credited) to operations		(69)		(278)		500		23		24		11,735		11,935
Loans charged off		(154)		—		(273)		(20)		(224)		(15,464)		(16,135)
Recoveries of loans previously charged off		59		—		18		2		143		3,247		3,469
Balance at September 30, 2017	$	2,395	$	538	$	7,638	$	690	$	204	$	24,870	$	36,335

Schedule of total allowance for loan losses, allowance by impairment methodology, and total loans and loans by impairment methodology

The following table presents, as of September 30, 2018, the total allowance for loan losses, the allowance by impairment methodology, total loans and loans by impairment methodology.


	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance for loan losses:
Ending balance at September 30, 2018	$	2,301	$	779	$	6,897	$	1,138	$	280	$	23,564	$	34,959
Ending balance: individually evaluated for impairment	$	99	$	—	$	674	$	326	$	5	$	—	$	1,104
Ending balance: collectively evaluated for impairment	$	2,202	$	779	$	6,223	$	812	$	275	$	23,564	$	33,855
Ending balance: acquired loans - PCI	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans:
Ending balance at September 30, 2018	$	184,362	$	55,650	$	426,310	$	55,655	$	15,464	$	299,941	$	1,037,382
Ending balance: individually evaluated for impairment	$	2,921	$	—	$	3,999	$	358	$	5	$	—	$	7,283
Ending balance: collectively evaluated for impairment	$	181,002	$	55,650	$	420,718	$	55,181	$	15,459	$	299,941	$	1,027,951
Ending balance: acquired loans - PCI	$	439	$	—	$	1,593	$	116	$	—	$	—	$	2,148

The following table presents, as of December 31, 2017, the total allowance for loan losses, the allowance by impairment methodology, total loans and loans by impairment methodology.


	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance for loan losses:
Ending balance at December 31, 2017	$	2,371	$	605	$	7,478	$	688	$	231	$	24,353	$	35,726
Ending balance: individually evaluated for impairment	$	214	$	—	$	615	$	—	$	—	$	—	$	829
Ending balance: collectively evaluated for impairment	$	2,157	$	605	$	6,863	$	688	$	231	$	24,353	$	34,897
Ending balance: acquired loans - PCI	$	—	$	—	$	—	$	—	$	—	$	—	$	—
Loans:
Ending balance at December 31, 2017	$	184,863	$	44,782	$	437,884	$	55,237	$	13,018	$	292,004	$	1,027,788
Ending balance: individually evaluated for impairment	$	3,636	$	—	$	6,907	$	31	$	322	$	—	$	10,896
Ending balance: collectively evaluated for impairment	$	180,735	$	44,782	$	428,505	$	55,067	$	12,696	$	292,004	$	1,013,789
Ending balance: acquired loans - PCI	$	492	$	—	$	2,472	$	139	$	—	$	—	$	3,103

Schedule of loans by credit quality indicators

Loans by credit quality indicators as of September 30, 2018 were as follows:


			Special				Substandard
(Dollars in thousands)	Pass		Mention		Substandard		Nonaccrual		Total1
Real estate – residential mortgage	$	180,854	$	1,223	$	1,674	$	611	$	184,362
Real estate – construction:
Construction lending		44,756		—		—		—		44,756
Consumer lot lending		10,044		850		—		—		10,894
Commercial, financial and agricultural:
Commercial real estate lending		298,883		5,007		687		1,206		305,783
Land acquisition and development lending		24,040		9,995		—		—		34,035
Builder line lending		27,840		—		—		—		27,840
Commercial business lending		58,191		437		—		24		58,652
Equity lines		54,257		393		93		912		55,655
Consumer		15,457		1		6		—		15,464
	$	714,322	$	17,906	$	2,460	$	2,753	$	737,441

At September 30, 2018, the Corporation did not have any loans classified as Doubtful or Loss.

Included in the table above are loans purchased in connection with the acquisition of CVB of $38.49 million pass rated, $1.20 million special mention, $528,000 substandard and $101,000 substandard nonaccrual.


			Non-
(Dollars in thousands)	Performing		Performing		Total
Consumer finance	$	298,916	$	1,025	$	299,941

Loans by credit quality indicators as of December 31, 2017 were as follows:


			Special				Substandard
(Dollars in thousands)	Pass		Mention		Substandard		Nonaccrual		Total1
Real estate – residential mortgage	$	179,963	$	1,235	$	2,835	$	830	$	184,863
Real estate – construction:
Construction lending		41,449		—		—		—		41,449
Consumer lot lending		3,333		—		—		—		3,333
Commercial, financial and agricultural:
Commercial real estate lending		293,292		2,874		4,528		3,796		304,490
Land acquisition and development lending		24,253		—		15,591		—		39,844
Builder line lending		29,596		—		—		—		29,596
Commercial business lending		63,749		34		137		34		63,954
Equity lines		53,870		465		251		651		55,237
Consumer		12,693		3		322		—		13,018
	$	702,198	$	4,611	$	23,664	$	5,311	$	735,784

At December 31, 2017, the Corporation did not have any loans classified as Doubtful or Loss.

Included in the table above are loans purchased in connection with the acquisition of CVB of $42.67 million pass rated, $1.09 million special mention, $1.98 million substandard and $161,000 substandard nonaccrual.


			Non-
(Dollars in thousands)	Performing		Performing		Total
Consumer finance	$	291,240	$	764	$	292,004