XML 22 R12.htm IDEA: XBRL DOCUMENT v3.20.2
Loans
6 Months Ended
Jun. 30, 2020
Loans  
Loans

NOTE 4: Loans

Major classifications of loans are summarized as follows:

June 30, 

December 31, 

 

(Dollars in thousands)

    

2020

    

2019

 

Real estate – residential mortgage

$

205,011

$

181,295

Real estate – construction 1

 

72,094

 

54,246

Commercial, financial and agricultural 2

 

682,817

 

500,812

Equity lines

 

52,697

 

52,083

Consumer

 

15,722

 

13,756

Consumer finance

 

300,649

 

312,999

 

1,328,990

 

1,115,191

Less allowance for loan losses

 

(36,094)

 

(32,873)

Loans, net

$

1,292,896

$

1,082,318

1Includes the Corporation’s real estate construction lending and consumer real estate lot lending.
2Includes the Corporation’s commercial real estate lending, land acquisition and development lending, builder line lending and commercial business lending.

Consumer loans included $173,000 and $449,000 of demand deposit overdrafts at June 30, 2020 and December 31, 2019, respectively.

Loans acquired in business combinations are recorded in the Consolidated Balance Sheets at fair value at the acquisition date under the acquisition method of accounting.  The outstanding principal balance and the carrying amount at June 30, 2020 and December 31, 2019 of loans acquired in business combinations were as follows:

June 30, 2020

December 31, 2019

 

Acquired Loans -

  

Acquired Loans -

  

  

Acquired Loans -

  

Acquired Loans -

  

 

Purchased

Purchased

Acquired Loans -

Purchased

Purchased

Acquired Loans -

 

(Dollars in thousands)

Credit Impaired

Performing

Total

Credit Impaired

Performing

Total

 

Outstanding principal balance

$

18,591

$

116,971

$

135,562

$

6,262

$

27,839

$

34,101

Carrying amount

Real estate – residential mortgage

$

1,814

$

22,448

$

24,262

$

107

$

7,035

$

7,142

Real estate – construction

3,762

3,762

Commercial, financial and agricultural1

 

5,452

 

74,254

 

79,706

 

563

 

11,338

 

11,901

Equity lines

 

77

 

11,767

 

11,844

 

35

 

8,046

 

8,081

Consumer

 

488

 

2,317

 

2,805

 

 

3

 

3

Total acquired loans

$

7,831

$

114,548

$

122,379

$

705

$

26,422

$

27,127

1Includes acquired loans classified by the Corporation as commercial real estate lending and commercial business lending.

The following table presents a summary of the change in the accretable yield of loans classified as purchased credit impaired (PCI):

Six Months Ended June 30, 

(Dollars in thousands)

    

2020

 

2019

 

Accretable yield, balance at beginning of period

$

4,721

$

5,987

Additions

 

3,372

 

Accretion

 

(1,687)

 

(1,760)

Reclassification of nonaccretable difference due to improvement in expected cash flows

 

923

 

727

Other changes, net

 

115

 

349

Accretable yield, balance at end of period

$

7,444

$

5,303

Loans on nonaccrual status were as follows:

June 30, 

December 31, 

 

(Dollars in thousands)

    

2020

    

2019

 

Real estate – residential mortgage

$

980

$

1,526

Commercial, financial and agricultural:

Commercial business lending

 

 

11

Equity lines

 

244

 

229

Consumer

 

542

 

118

Consumer finance

 

369

 

611

Total loans on nonaccrual status

$

2,135

$

2,495

The past due status of loans as of June 30, 2020 was as follows:

  

  

  

  

  

  

  

90+ Days

 

30 - 59 Days

60 - 89 Days

90+ Days

Total

Past Due and

 

(Dollars in thousands)

Past Due

Past Due

Past Due

Past Due

PCI

Current1

Total Loans

Accruing

 

Real estate – residential mortgage

$

537

$

285

$

880

$

1,702

$

1,814

$

201,495

$

205,011

$

291

Real estate – construction:

Construction lending

 

 

 

 

 

56,382

 

56,382

 

Consumer lot lending

 

 

 

 

 

15,712

 

15,712

 

Commercial, financial and agricultural:

Commercial real estate lending

 

232

 

 

 

232

5,452

 

415,999

 

421,683

 

Land acquisition and development lending

 

 

 

 

 

38,121

 

38,121

 

Builder line lending

 

 

 

 

 

22,172

 

22,172

 

Commercial business lending

 

 

 

 

 

200,841

 

200,841

 

Equity lines

 

47

 

 

50

 

97

76

 

52,524

 

52,697

 

Consumer

 

 

57

 

 

57

489

 

15,176

 

15,722

 

Consumer finance

 

5,096

 

705

 

369

 

6,170

 

294,479

 

300,649

 

Total

$

5,912

$

1,047

$

1,299

$

8,258

$

7,831

$

1,312,901

$

1,328,990

$

291

1For the purposes of the table above, “Current” includes loans that are 1-29 days past due.

The table above includes nonaccrual loans that are current of $649,000, 60-89 days past due of $19,000 and 90+ days past due of $1.04 million, as well as nonaccrual loans that are PCI of $427,000.

The past due status of loans as of December 31, 2019 was as follows:

  

  

  

  

  

  

  

90+ Days

 

30 - 59 Days

60 - 89 Days

90+ Days

Total

Past Due and

 

(Dollars in thousands)

Past Due

Past Due

Past Due

Past Due

PCI

Current1

Total Loans

Accruing

 

Real estate – residential mortgage

$

1,428

$

161

$

1,016

$

2,605

$

107

$

178,583

$

181,295

$

Real estate – construction:

Construction lending

 

 

 

 

 

40,943

 

40,943

 

Consumer lot lending

 

 

 

 

 

13,303

 

13,303

 

Commercial, financial and agricultural:

Commercial real estate lending

 

 

 

 

563

 

325,991

 

326,554

 

Land acquisition and development lending

 

 

 

 

 

42,891

 

42,891

 

Builder line lending

 

 

 

 

 

26,373

 

26,373

 

Commercial business lending

 

73

 

18

 

 

91

 

104,903

 

104,994

 

Equity lines

 

229

 

56

 

223

 

508

35

 

51,540

 

52,083

 

109

Consumer

 

20

 

10

 

 

30

 

13,726

 

13,756

 

Consumer finance

 

11,034

 

1,420

 

611

 

13,065

 

299,934

 

312,999

 

Total

$

12,784

$

1,665

$

1,850

$

16,299

$

705

$

1,098,187

$

1,115,191

$

109

1For the purposes of the table above, “Current” includes loans that are 1-29 days past due.

The table above includes nonaccrual loans that are current of $547,000, 30-59 days past due of $197,000, 60-89 days past due of $10,000 and 90+ days past due of $1.74 million.

There were no loan modifications during the three months ended June 30, 2020 classified as a troubled debt restructuring (TDR). There was one loan modification during the six months ended June 30, 2020 that was classified as a TDR.  This TDR was an equity line with a recorded investment of $84,000 at the time of its modification and included modifications of the loan’s payment structure. There was one loan modification during the three and six months ended June 30, 2019 that was classified as a TDR.  This TDR was a consumer loan with a recorded investment of $121,000 at the time of its modification and included a modification of the loan’s interest rate.

All TDRs are considered impaired loans and are individually evaluated in the determination of the allowance for loan losses. A TDR payment default occurs when, within 12 months of the original TDR modification, either a full or partial charge-off occurs or a TDR becomes 90 days or more past due. The specific reserve associated with a TDR is reevaluated

when a TDR payment default occurs. There were no TDR payment defaults during the three and six months ended June 30, 2020 and 2019.

In response to the effects of the COVID-19 pandemic, including economic disruption and adverse impacts to commercial and consumer borrowers, the Bank has accommodated certain borrowers by granting short-term payment deferrals or periods of interest-only payments of up to six months in each case.  As of June 30, 2020, the Bank had provided short-term payment deferrals on 200 loans with an aggregate balance of $94.91 million. Generally, a short-term payment deferral does not result in a loan modification being classified as a TDR.  Management cannot predict the overall impact of the COVID-19 pandemic on its loan portfolio or the extent of payment deferrals or other modifications that may be granted.

Impaired loans, which included TDRs of $3.79 million, and the related allowance at June 30, 2020 were as follows:

    

    

    

    

 

Recorded

Recorded

 

Investment

Investment

Average

 

Unpaid

in Loans

in Loans

Balance-

Interest

Principal

without

with

Related

Impaired

Income

(Dollars in thousands)

Balance

Specific Reserve

Specific Reserve

Allowance

Loans

Recognized

 

Real estate – residential mortgage

$

2,892

$

1,072

$

1,677

$

69

$

2,875

$

44

Commercial, financial and agricultural:

Commercial real estate lending

 

1,401

 

 

1,401

 

72

 

1,409

 

37

Equity lines

 

121

 

113

 

 

 

120

 

1

Consumer

 

126

 

 

114

 

107

 

115

 

Total

$

4,540

$

1,185

$

3,192

$

248

$

4,519

$

82

Impaired loans, which included TDRs of $4.35 million, and the related allowance at December 31, 2019 were as follows:

    

    

    

    

 

Recorded

Recorded

 

Investment

Investment

Average

 

Unpaid

in Loans

in Loans

Balance-

Interest

Principal

without

with

Related

Impaired

Income

(Dollars in thousands)

Balance

Specific Reserve

Specific Reserve

Allowance

Loans

Recognized

 

Real estate – residential mortgage

$

3,891

$

2,192

$

1,479

$

72

$

3,506

$

155

Commercial, financial and agricultural:

Commercial real estate lending

 

1,459

 

4

 

1,447

 

77

 

1,581

 

82

Equity lines

 

31

 

31

 

 

 

32

 

2

Consumer

 

130

 

 

121

 

118

 

123

 

Total

$

5,511

$

2,227

$

3,047

$

267

$

5,242

$

239