XML 38 R27.htm IDEA: XBRL DOCUMENT v3.10.0.1
Loans and Asset Quality Information (Tables)
9 Months Ended
Sep. 30, 2018
Summary of the major categories of total loans outstanding

($ in thousands)  September 30, 2018   December 31, 2017   September 30, 2017 
   Amount   Percentage   Amount   Percentage   Amount   Percentage 
All  loans:                              
                               
Commercial, financial, and agricultural  $435,730    10%   $381,130    10%   $376,940    11% 
Real estate – construction, land development & other land loans   559,450    13%    539,020    13%    450,746    13% 
Real estate – mortgage – residential (1-4 family) first mortgages   1,038,436    25%    972,772    24%    796,222    23% 
Real estate – mortgage – home equity loans / lines of credit   362,829    9%    379,978    9%    315,322    10% 
Real estate – mortgage – commercial and other   1,723,598    41%    1,696,107    42%    1,431,934    41% 
Installment loans to individuals   70,096    2%    74,348    2%    59,028    2% 
    Subtotal   4,190,139    100%    4,043,355    100%    3,430,192    100% 
Unamortized net deferred loan costs (fees)   489         (986)        (437)     
    Total loans  $4,190,628        $4,042,369        $3,429,755      

 

Schedule of activity in purchased credit impaired loans

The following table presents changes in the carrying value of PCI loans.

 

($ in thousands)

 

 

 

Purchased Credit Impaired Loans

  For the Nine
Months Ended
September 30,
2018
   For the Year
Ended
December 31,
2017
 
Balance at beginning of period  $23,165    514 
Additions due to acquisition of Carolina Bank       19,254 
Additions due to acquisition of Asheville Savings Bank       9,886 
Change due to payments received and accretion   (2,994)   (6,016)
Change due to loan charge-offs   (10)   (12)
Transfers to foreclosed real estate       (69)
Other   28    (392)
Balance at end of period  $20,189    23,165 

 

The following table presents changes in the accretable yield for PCI loans.

 

($ in thousands)

 

 

 

Accretable Yield for PCI loans

  For the Nine
Months Ended
September 30,
2018
   For the Year
Ended
December 31,
2017
 
Balance at beginning of period  $4,688     
Additions due to acquisition of Carolina Bank       3,617 
Additions due to acquisition of Asheville Savings Bank       1,804 
Accretion   (1,169)   (1,846)
Reclassification from (to) nonaccretable difference   712    423 
Other, net   831    690 
Balance at end of period  $5,062    4,688 

 

Summary of nonperforming assets

($ in thousands)  September 30,
2018
   December 31,
2017
   September 30,
2017
 
             
Nonperforming assets               
Nonaccrual loans  $18,267    20,968    23,350 
Restructured loans - accruing   16,657    19,834    20,330 
Accruing loans > 90 days past due            
     Total nonperforming loans   34,924    40,802    43,680 
Foreclosed real estate   6,140    12,571    9,356 
Total nonperforming assets  $41,064    53,373    53,036 
                
       Purchased credit impaired loans not included above (1)  $20,189    23,165    15,034 

 

(1) In the March 3, 2017 acquisition of Carolina Bank, and the October 1, 2017 acquisition of Asheville Savings Bank, the Company acquired $19.3 million and $9.9 million, respectively, in PCI loans in accordance with ASC 310-30 accounting guidance. These loans are excluded from nonperforming loans, including $0.6 million, $0.6 million, and $0.4 million in PCI loans at September 30, 2018, December 31, 2017, and September 30, 2017, respectively, that were contractually past due 90 days or more.

Schedule of nonaccrual loans

($ in thousands)  September 30,
2018
   December 31,
2017
 
Commercial, financial, and agricultural  $2,092    1,001 
Real estate – construction, land development & other land loans   651    1,822 
Real estate – mortgage – residential (1-4 family) first mortgages   8,807    12,201 
Real estate – mortgage – home equity loans / lines of credit   1,419    2,524 
Real estate – mortgage – commercial and other   5,178    3,345 
Installment loans to individuals   120    75 
  Total  $18,267    20,968 
           

 

Schedule of analysis of the payment status of loans

The following table presents an analysis of the payment status of the Company’s loans as of September 30, 2018.

 

($ in thousands)  Accruing
30-59
Days Past
Due
   Accruing
60-89 Days
Past Due
   Accruing
90 Days or
More Past
Due
   Nonaccrual
Loans
   Accruing
Current
   Total Loans
Receivable
 
                         
Commercial, financial, and agricultural  $2,302    278        2,092    430,794    435,466 
Real estate – construction, land development & other land loans   1,948    738        651    555,588    558,925 
Real estate – mortgage – residential (1-4 family) first mortgages   6,160    398        8,807    1,016,896    1,032,261 
Real estate – mortgage – home equity loans / lines of credit   1,056    270        1,419    359,739    362,484 
Real estate – mortgage – commercial and other   3,196    573        5,178    1,702,063    1,711,010 
Installment loans to individuals   360    139        120    69,185    69,804 
Purchased credit impaired   132    304    627        19,126    20,189 
  Total  $15,154    2,700    627    18,267    4,153,391    4,190,139 
Unamortized net deferred loan costs                            489 
           Total loans                           $4,190,628 

 

The following table presents an analysis of the payment status of the Company’s loans as of December 31, 2017.

 

($ in thousands)  Accruing
30-59
Days Past
Due
   Accruing
60-89
Days Past
Due
   Accruing
90 Days or
More Past
Due
   Nonaccrual
Loans
   Accruing
Current
   Total Loans
Receivable
 
                         
Commercial, financial, and agricultural  $89    151        1,001    379,241    380,482 
Real estate – construction, land development & other land loans   1,154    214        1,822    535,423    538,613 
Real estate – mortgage – residential (1-4 family) first mortgages   6,777    1,370        12,201    943,565    963,913 
Real estate – mortgage – home equity loans / lines of credit   1,347    10        2,524    375,814    379,695 
Real estate – mortgage – commercial and other   1,270    451        3,345    1,678,529    1,683,595 
Installment loans to individuals   445    95        75    73,277    73,892 
Purchased credit impaired   821    77    601        21,666    23,165 
  Total  $11,903    2,368    601    20,968    4,007,515    4,043,355 
Unamortized net deferred loan fees                            (986)
           Total loans                           $4,042,369 

 

Schedule of activity in the allowance for loan losses for non-covered and covered loans

The following table presents the activity in the allowance for loan losses for all loans for the three and nine months ended September 30, 2018.

 

 

($ in thousands)

  Commercial,
Financial,
and
Agricultural
   Real Estate

Construction,
Land
Development
& Other Land
Loans
   Real Estate

Residential
(1-4 Family)
First Mortgages
   Real Estate
– Mortgage
– Home
Equity
Lines of
Credit
   Real Estate
– Mortgage

Commercial
and Other
   Installment
Loans to
Individuals
   Unallo
-cated
   Total 
                     
As of and for the three months ended September 30, 2018
Beginning balance  $2,268    2,692    7,059    2,250    7,295    897    837    23,298 
Charge-offs   (933)   (126)   (1,183)   (192)   (1,086)   (232)       (3,752)
Recoveries   159    181    155    51    209    158        913 
Provisions   1,221    (366)   (664)   (330)   753    79    (606)   87 
Ending balance  $2,715    2,381    5,367    1,779    7,171    902    231    20,546 
                                         
As of and for the nine months ended September 30, 2018
                                         
Beginning balance  $3,111    2,816    6,147    1,827    6,475    950    1,972    23,298 
Charge-offs   (1,542)   (158)   (1,598)   (378)   (1,398)   (494)       (5,568)
Recoveries   971    3,568    671    294    1,333    261        7,098 
Provisions   175    (3,845)   147    36    761    185    (1,741)   (4,282)
Ending balance  $2,715    2,381    5,367    1,779    7,171    902    231    20,546 
                                         
Ending balances as of September 30, 2018: Allowance for loan losses
Individually evaluated for impairment  $126        1,004        502            1,632 
Collectively evaluated for impairment  $2,585    2,335    4,306    1,765    6,662    887    231    18,771 
Purchased credit impaired  $4    46    57    14    7    15        143 
                                         
Loans receivable as of September 30, 2018:
Ending balance – total  $435,730    559,450    1,038,436    362,829    1,723,598    70,096        4,190,139 
Unamortized net deferred loan costs                                      489 
Total loans                                     $4,190,628 
                                         
Ending balances as of September 30, 2018: Loans
Individually evaluated for impairment  $1,981    2,642    12,617    22    10,490            27,752 
Collectively evaluated for impairment  $433,485    556,283    1,019,645    362,462    1,700,519    69,804        4,142,198 
Purchased credit impaired  $264    525    6,174    345    12,589    292        20,189 

 

 

The following table presents the activity in the allowance for loan losses for the year ended December 31, 2017.

 

 

($ in thousands)

  Commercial,
Financial,
and
Agricultural
   Real Estate

Construction,
Land
Development,
& Other
Land Loans
   Real Estate

Residential
(1-4 Family)
First
Mortgages
   Real Estate
– Mortgage
– Home
Equity
Lines of
Credit
   Real Estate
– Mortgage

Commercial
and Other
   Installment
Loans to
Individuals
   Unallo
-cated
   Total 
                     
As of and for the year ended December 31, 2017
Beginning balance  $3,829    2,691    7,704    2,420    5,098    1,145    894    23,781 
Charge-offs   (1,622)   (589)   (2,641)   (978)   (1,182)   (799)       (7,811)
Recoveries   1,311    2,579    1,076    333    1,027    279        6,605 
Provisions   (407)   (1,865)   8    52    1,532    325    1,078    723 
Ending balance  $3,111    2,816    6,147    1,827    6,475    950    1,972    23,298 
                                         
Ending balances as of December 31, 2017:  Allowance for loan losses
Individually evaluated for impairment  $215    18    1,099        232            1,564 
Collectively evaluated for impairment  $2,896    2,798    4,831    1,788    6,226    950    1,972    21,461 
Purchased credit impaired  $        217    39    17            273 
                                         
Loans receivable as of December 31, 2017:
Ending balance – total  $381,130    539,020    972,772    379,978    1,696,107    74,348        4,043,355 
Unamortized net deferred loan fees                                      (986)
Total loans                                     $4,042,369 
                                         
Ending balances as of December 31, 2017: Loans
Individually evaluated for impairment  $579    2,975    14,800    368    8,493            27,215 
Collectively evaluated for impairment  $379,903    535,638    949,113    379,327    1,675,102    73,892        3,992,975 
Purchased credit impaired  $648    407    8,859    283    12,512    456        23,165 

 

 

The following table presents the activity in the allowance for loan losses for all loans for the three and nine months ended September 30, 2017.

 

 

($ in thousands)

  Commercial,
Financial,
and
Agricultural
   Real Estate

Construction,
Land
Development
& Other Land
Loans
   Real Estate

Residential
(1-4 Family)
First
Mortgages
   Real Estate
– Mortgage
– Home
Equity
Lines of
Credit
   Real Estate
– Mortgage

Commercial
and Other
   Installment
Loans to
Individuals
   Unallo
-cated
   Total 
                     
As of and for the three months ended September 30, 2017
Beginning balance  $3,430    2,676    7,085    2,057    6,153    1,074    1,550    24,025 
Charge-offs   (131)   (43)   (499)   (213)   (159)   (162)       (1,207)
Recoveries   330    809    170    120    275    71        1,775 
Provisions   (314)   (973)   (281)   (49)   (271)   45    1,843     
Ending balance  $3,315    2,469    6,475    1,915    5,998    1,028    3,393    24,593 
                                         
As of and for the nine months ended September 30, 2017
                                         
Beginning balance  $3,829    2,691    7,704    2,420    5,098    1,145    894    23,781 
Charge-offs   (1,335)   (312)   (1,746)   (791)   (573)   (521)       (5,278)
Recoveries   848    2,280    806    250    973    210        5,367 
Provisions   (27)   (2,190)   (289)   36    500    194    2,499    723 
Ending balance  $3,315    2,469    6,475    1,915    5,998    1,028    3,393    24,593 
                                         
Ending balances as of September 30, 2017:  Allowance for loan losses
Individually evaluated for impairment  $144    23    929        487            1,583 
Collectively evaluated for impairment  $3,171    2,446    5,546    1,915    5,511    1,028    3,393    23,010 
Purchased credit impaired  $                             
                                         
Loans receivable as of September 30, 2017:
Ending balance – total  $376,940    450,746    796,222    315,322    1,431,934    59,028        3,430,192 
Unamortized net deferred loan fees                                      (437)
Total loans                                     $3,429,755 
                                         
Ending balances as of September 30, 2017: Loans
Individually evaluated for impairment  $490    3,072    14,987    52    9,443            28,044 
Collectively evaluated for impairment  $376,195    446,798    777,925    314,559    1,412,666    58,971        3,387,114 
Purchased credit impaired  $255    876    3,310    711    9,825    57        15,034 

 

 

Schedule of impaired loans individually evaluated

The following table presents loans individually evaluated for impairment by class of loans, excluding PCI loans, as of September 30, 2018.

 

 

($ in thousands)

  Recorded
Investment
   Unpaid
Principal
Balance
   Related
Allowance
   Average
Recorded
Investment
 
Impaired loans with no related allowance recorded:                    
                     
Commercial, financial, and agricultural  $1,693    2,117        1,119 
Real estate – mortgage – construction, land development & other land loans   2,642    2,956        2,836 
Real estate – mortgage – residential (1-4 family) first mortgages   4,740    5,072        4,849 
Real estate – mortgage –home equity loans / lines of credit   22    32        109 
Real estate – mortgage –commercial and other   4,550    5,016        3,718 
Installment loans to individuals                
Total impaired loans with no allowance  $13,647    15,193        12,631 
                     
                     
Impaired loans with an allowance recorded:                    
                     
Commercial, financial, and agricultural  $288    289    126    431 
Real estate – mortgage – construction, land development & other land loans               266 
Real estate – mortgage – residential (1-4 family) first mortgages   7,877    8,017    1,004    9,263 
Real estate – mortgage –home equity loans / lines of credit               162 
Real estate – mortgage –commercial and other   5,940    6,233    502    5,877 
Installment loans to individuals               2 
Total impaired loans with allowance  $14,105    14,539    1,632    16,001 
                     

Interest income recorded on impaired loans during the nine months ended September 30, 2018 was insignificant.

 

The following table presents loans individually evaluated for impairment by class of loans, excluding PCI loans, as of December 31, 2017.

 

 

($ in thousands)

  Recorded
Investment
   Unpaid
Principal
Balance
   Related
Allowance
   Average
Recorded
Investment
 
Impaired loans with no related allowance recorded:                    
                     
Commercial, financial, and agricultural  $183    425        276 
Real estate – mortgage – construction, land development & other land loans   2,743    3,941        2,846 
Real estate – mortgage – residential (1-4 family) first mortgages   5,205    5,728        7,067 
Real estate – mortgage –home equity loans / lines of credit   368    387        129 
Real estate – mortgage –commercial and other   3,066    3,321        3,143 
Installment loans to individuals                
Total impaired loans with no allowance  $11,565    13,802        13,461 
                     
                     
Impaired loans with an allowance recorded:                    
                     
Commercial, financial, and agricultural  $396    396    215    214 
Real estate – mortgage – construction, land development & other land loans   232    241    18    503 
Real estate – mortgage – residential (1-4 family) first mortgages   9,595    9,829    1,099    10,077 
Real estate – mortgage –home equity loans / lines of credit               66 
Real estate – mortgage –commercial and other   5,427    5,427    232    5,369 
Installment loans to individuals                
Total impaired loans with allowance  $15,650    15,893    1,564    16,229 

 

Schedule of recorded investment in loans by credit quality indicators

The following table presents the Company’s recorded investment in loans by credit quality indicators as of September 30, 2018.

 

($ in thousands)    
   Pass   Special
Mention Loans
   Classified
Accruing Loans
   Classified
Nonaccrual
Loans
   Total 
                     
Commercial, financial, and agricultural  $429,721    2,797    856    2,092    435,466 
Real estate – construction, land development & other land loans   547,323    6,331    4,620    651    558,925 
Real estate – mortgage – residential (1-4 family) first mortgages   984,851    13,052    25,551    8,807    1,032,261 
Real estate – mortgage – home equity loans / lines of credit   351,575    1,697    7,793    1,419    362,484 
Real estate – mortgage – commercial and other   1,684,024    15,075    6,733    5,178    1,711,010 
Installment loans to individuals   69,072    212    400    120    69,804 
Purchased credit impaired   9,269    5,306    5,614        20,189 
  Total  $4,075,835    44,470    51,567    18,267    4,190,139 
Unamortized net deferred loan costs                       489 
            Total loans                       4,190,628 

 

The following table presents the Company’s recorded investment in loans by credit quality indicators as of December 31, 2017.

 

($ in thousands)    
   Pass   Special
Mention Loans
   Classified
Accruing Loans
   Classified
Nonaccrual
Loans
   Total 
                     
Commercial, financial, and agricultural  $368,658    9,901    922    1,001    380,482 
Real estate – construction, land development & other land loans   523,642    7,129    6,020    1,822    538,613 
Real estate – mortgage – residential (1-4 family) first mortgages   905,111    16,235    30,366    12,201    963,913 
Real estate – mortgage – home equity loans / lines of credit   365,982    3,784    7,405    2,524    379,695 
Real estate – mortgage – commercial and other   1,647,725    23,335    9,190    3,345    1,683,595 
Installment loans to individuals   73,379    222    216    75    73,892 
Purchased credit impaired   6,541    12,309    4,315        23,165 
  Total  $3,891,038    72,915    58,434    20,968    4,043,355 
Unamortized net deferred loan fees                       (986)
            Total loans                       4,042,369 

 

 

Schedule of information related to loans modified in a troubled debt restructuring

The following table presents information related to loans modified in a troubled debt restructuring during the three months ended September 30, 2018 and 2017.

 

($ in thousands)  For three months ended
September 30, 2018
   For the three months ended
September 30, 2017
 
   Number of
Contracts
   Pre-
Modification
Restructured
Balances
   Post-
Modification
Restructured
Balances
   Number of
Contracts
   Pre-
Modification
Restructured
Balances
   Post-
Modification
Restructured
Balances
 
TDRs – Accruing                              
Commercial, financial, and agricultural      $   $       $   $ 
Real estate – construction, land development & other land loans                        
Real estate – mortgage – residential (1-4 family) first mortgages                        
Real estate – mortgage – home equity loans / lines of credit                        
Real estate – mortgage – commercial and other               1    570    570 
Installment loans to individuals                        
                               
TDRs – Nonaccrual                              
Commercial, financial, and agricultural                        
Real estate – construction, land development & other land loans                        
Real estate – mortgage – residential (1-4 family) first mortgages               1    47    47 
Real estate – mortgage – home equity loans / lines of credit                        
Real estate – mortgage – commercial and other                        
Installment loans to individuals                        
Total TDRs arising during period      $   $    2   $617   $617 

 

The following table presents information related to loans modified in a troubled debt restructuring during the nine months ended September 30, 2018 and 2017.

 

($ in thousands)  For nine months ended
September 30, 2018
   For the nine months ended
September 30, 2017
 
   Number of
Contracts
   Pre-
Modification
Restructured Balances
   Post-
Modification
Restructured
Balances
   Number of
Contracts
   Pre-
Modification
Restructured
Balances
   Post-
Modification
Restructured
Balances
 
TDRs – Accruing                              
Commercial, financial, and agricultural      $   $       $   $ 
Real estate – construction, land development & other land loans                        
Real estate – mortgage – residential (1-4 family) first mortgages   1    18    18             
Real estate – mortgage – home equity loans / lines of credit                        
Real estate – mortgage – commercial and other               6    4,120    4,095 
Installment loans to individuals                        
                               
TDRs – Nonaccrual                              
Commercial, financial, and agricultural               1    38    25 
Real estate – construction, land development & other land loans   1    61    61    1    32    32 
Real estate – mortgage – residential (1-4 family) first mortgages   2    254    264    2    262    262 
Real estate – mortgage – home equity loans / lines of credit                        
Real estate – mortgage – commercial and other                        
Installment loans to individuals                        
                               
Total TDRs arising during period   4   $333   $343    10   $4,452   $4,414 
                               

Schedule of accruing restructured loans that defaulted in the period

 

($ in thousands)  For the nine months ended
September 30, 2018
   For the nine months ended
September 30, 2017
 
   Number of
Contracts
   Recorded
Investment
   Number of
Contracts
   Recorded
Investment
 
                 
Accruing TDRs that subsequently defaulted                    
Real estate – mortgage – residential (1-4 family first mortgages)   1   $60    2    880 
Real estate – mortgage – commercial and other   3    1,333         
Total accruing TDRs that subsequently defaulted   4   $1,393    2   $880 
Asheville Savings Bank [Member]  
Summary of contractually required payments expected at acquisition date

($ in thousands)  Asheville Savings Bank
Acquisition on
October 1, 2017
 
Contractually required payments  $13,424 
Nonaccretable difference   (1,734)
Cash flows expected to be collected at acquisition   11,690 
Accretable yield   (1,804)
Fair value of PCI loans at acquisition date  $9,886 

 

Summary of contractually required payments not expected at acquisition date

 

($ in thousands)

 

  Asheville Savings Bank
Acquisition on
October 1, 2017
 
Contractually required payments  $727,706 
Fair value of acquired loans at acquisition date   595,167 
Contractual cash flows not expected to be collected   7,000 
Carolina Bank [Member]  
Summary of contractually required payments expected at acquisition date

($ in thousands)

 

  Carolina Bank Acquisition
on March 3, 2017
 
Contractually required payments  $27,108 
Nonaccretable difference   (4,237)
Cash flows expected to be collected at acquisition   22,871 
Accretable yield   (3,617)
Fair value of PCI loans at acquisition date  $19,254 

 

Summary of contractually required payments not expected at acquisition date

($ in thousands)

 

  Carolina Bank Acquisition
on March 3, 2017
 
Contractually required payments  $569,980 
Fair value of acquired loans at acquisition date   478,515 
Contractual cash flows not expected to be collected   3,650