Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2019

Allowance for Loan Losses

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, 2019:

	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, 2018	$	2,246	$	727	$	6,688	$	1,106	$	257	$	22,999	$	34,023
Provision (credited) charged to operations		(85)		77		103		(214)		229		5,895		6,005
Loans charged off		(46)		—		(29)		(19)		(261)		(10,092)		(10,447)
Recoveries of loans previously charged off		20		—		4		—		173		3,440		3,637
Balance at September 30, 2019	$	2,135	$	804	$	6,766	$	873	$	398	$	22,242	$	33,218

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 (credited) charged 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

Schedule of balance of the allowance for loan losses and the balance of loans by impairment methodology

The following table presents, as of September 30, 2019, the balance of the allowance for loan losses and the balance of loans by impairment methodology.

	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance balance attributable to loans:
Individually evaluated for impairment	$	81	$	—	$	75	$	187	$	119	$	—	$	462
Collectively evaluated for impairment		2,054		804		6,691		686		279		22,242		32,756
Acquired loans - PCI		—		—		—		—		—		—		—
Total allowance	$	2,135	$	804	$	6,766	$	873	$	398	$	22,242	$	33,218
Loans:
Individually evaluated for impairment	$	2,804	$	—	$	1,571	$	217	$	123	$	—	$	4,715
Collectively evaluated for impairment		177,046		62,554		464,345		52,159		13,398		313,743		1,083,245
Acquired loans - PCI		110		—		433		35		—		—		578
Total loans	$	179,960	$	62,554	$	466,349	$	52,411	$	13,521	$	313,743	$	1,088,538

The following table presents, as of December 31, 2018, the balance of the 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 balance attributable to loans:
Individually evaluated for impairment	$	92	$	—	$	10	$	326	$	—	$	—	$	428
Collectively evaluated for impairment		2,154		727		6,678		780		257		22,999		33,595
Acquired loans - PCI		—		—		—		—		—		—		—
Total allowance	$	2,246	$	727	$	6,688	$	1,106	$	257	$	22,999	$	34,023
Loans:
Individually evaluated for impairment	$	2,965	$	—	$	2,450	$	357	$	5	$	—	$	5,777
Collectively evaluated for impairment		181,652		54,461		452,024		55,213		15,004		296,154		1,054,508
Acquired loans - PCI		284		—		1,461		90		—		—		1,835
Total loans	$	184,901	$	54,461	$	455,935	$	55,660	$	15,009	$	296,154	$	1,062,120

Schedule of loans by credit quality indicators

Loans by credit quality indicators as of September 30, 2019 were as follows:

			Special				Substandard
(Dollars in thousands)	Pass		Mention		Substandard		Nonaccrual		Total1
Real estate – residential mortgage	$	176,844	$	1,313	$	1,240	$	563	$	179,960
Real estate – construction:
Construction lending		48,164		—		—		—		48,164
Consumer lot lending		14,390		—		—		—		14,390
Commercial, financial and agricultural:
Commercial real estate lending		311,126		867		391		—		312,384
Land acquisition and development lending		32,017		9,224		—		—		41,241
Builder line lending		29,606		—		—		—		29,606
Commercial business lending		82,673		376		69		—		83,118
Equity lines		51,699		237		173		302		52,411
Consumer		13,401		—		1		119		13,521
	$	759,920	$	12,017	$	1,874	$	984	$	774,795

¹ At September 30, 2019, the Corporation did not have any loans classified as Doubtful or Loss.

			Non-
(Dollars in thousands)	Performing		Performing		Total
Consumer finance	$	313,216	$	527	$	313,743

Loans by credit quality indicators as of December 31, 2018 were as follows:

			Special				Substandard
(Dollars in thousands)	Pass		Mention		Substandard		Nonaccrual		Total1
Real estate – residential mortgage	$	180,232	$	2,832	$	1,243	$	594	$	184,901
Real estate – construction:
Construction lending		42,051		—		—		—		42,051
Consumer lot lending		12,410		—		—		—		12,410
Commercial, financial and agricultural:
Commercial real estate lending		306,578		3,801		454		—		310,833
Land acquisition and development lending		33,156		10,248		—		—		43,404
Builder line lending		31,201		—		—		—		31,201
Commercial business lending		69,897		576		—		24		70,497
Equity lines		54,289		389		99		883		55,660
Consumer		14,998		5		6		—		15,009
	$	744,812	$	17,851	$	1,802	$	1,501	$	765,966

¹ At December 31, 2018, the Corporation did not have any loans classified as Doubtful or Loss.

			Non-
(Dollars in thousands)	Performing		Performing		Total
Consumer finance	$	295,442	$	712	$	296,154