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LOANS | 12 Months Ended
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Dec. 31, 2019
Receivables [Abstract] |
LOANS | Note 5—LOANS Loans summarized by category are as follows:
|  | December 31, |
(Dollars in thousands) |  | 2019 |  |  | 2018 |
Commercial, financial and agricultural |  | $ | 51,805 |  |  | $ | 53,933 |
Real estate: |  |  |  |  |  |  |  |
Construction |  |  | 73,512 |  |  |  | 58,440 |
Mortgage-residential |  |  | 45,357 |  |  |  | 52,764 |
Mortgage-commercial |  |  | 527,447 |  |  |  | 513,833 |
Consumer: |  |  |  |  |  |  |  |
Home equity |  |  | 28,891 |  |  |  | 29,583 |
Other |  |  | 10,016 |  |  |  | 9,909 |
Total |  | $ | 737,028 |  |  | $ | 718,462 |
Activity in the allowance for loan losses was as follows:
|  | Years ended December 31, |
(Dollars in thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Balance at the beginning of year |  | $ | 6,263 |  |  | $ | 5,797 |  |  | $ | 5,214 |
Provision for loan losses |  |  | 139 |  |  |  | 346 |  |  |  | 530 |
Charged off loans |  |  | (145 | ) |  |  | (164 | ) |  |  | (173 | )
Recoveries |  |  | 370 |  |  |  | 284 |  |  |  | 226 |
Balance at end of year |  | $ | 6,627 |  |  | $ | 6,263 |  |  | $ | 5,797 |
The detailed activity in the allowance for loan losses and the recorded investment in loans receivable as of and for the years ended December 31, 2019, December 31, 2018 and December 31, 2017 follows:
(Dollars in thousands) |  | Commercial |  |  | Real estate Construction |  |  | Real estate Mortgage Residential |  |  | Real estate Mortgage Commercial |  |  | Consumer Home equity |  |  | Consumer Other |  |  | Unallocated |  |  | Total |
2019 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 430 |  |  | $ | 89 |  |  | $ | 431 |  |  | $ | 4,318 |  |  | $ | 261 |  |  | $ | 88 |  |  | $ | 646 |  |  | $ | 6,263 |
Charge-offs |  |  | (12 | ) |  |  | — |  |  |  | (12 | ) |  |  | — |  |  |  | (1 | ) |  |  | (120 | ) |  |  | — |  |  |  | (145 | )
Recoveries |  |  | 3 |  |  |  | — |  |  |  | — |  |  |  | 307 |  |  |  | 15 |  |  |  | 45 |  |  |  | — |  |  |  | 370 |
Provisions |  |  | 6 |  |  |  | 22 |  |  |  | (52 | ) |  |  | (23 | ) |  |  | (35 | ) |  |  | 84 |  |  |  | 137 |  |  |  | 139 |
Ending balance |  | $ | 427 |  |  | $ | 111 |  |  | $ | 367 |  |  | $ | 4,602 |  |  | $ | 240 |  |  | $ | 97 |  |  | $ | 783 |  |  | $ | 6,627 |
Ending balances: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 6 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 6 |
Collectively evaluated for impairment |  |  | 427 |  |  |  | 111 |  |  |  | 367 |  |  |  | 4,596 |  |  |  | 240 |  |  |  | 97 |  |  |  | 783 |  |  |  | 6,621 |
Loans receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance-total |  | $ | 51,805 |  |  | $ | 73,512 |  |  | $ | 45,357 |  |  | $ | 527,447 |  |  | $ | 28,891 |  |  | $ | 10,016 |  |  | $ | — |  |  | $ | 737,028 |
Ending balances: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  |  | 400 |  |  |  | — |  |  |  | 392 |  |  |  | 3,135 |  |  |  | 70 |  |  |  | — |  |  |  | — |  |  |  | 3,997 |
Collectively evaluated for impairment |  |  | 51,405 |  |  |  | 73,512 |  |  |  | 44,965 |  |  |  | 524,312 |  |  |  | 28,821 |  |  |  | 10,016 |  |  |  | — |  |  |  | 733,031 |
(Dollars in thousands) |  | Commercial |  |  | Real estate Construction |  |  | Real estate Mortgage Residential |  |  | Real estate Mortgage Commercial |  |  | Consumer Home equity |  |  | Consumer Other |  |  | Unallocated |  |  | Total |
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 221 |  |  | $ | 101 |  |  | $ | 461 |  |  | $ | 3,077 |  |  | $ | 308 |  |  | $ | 35 |  |  | $ | 1,594 |  |  | $ | 5,797 |
Charge-offs |  |  | — |  |  |  | — |  |  |  | (1 | ) |  |  | — |  |  |  | (23 | ) |  |  | (140 | ) |  |  | — |  |  |  | (164 | )
Recoveries |  |  | 3 |  |  |  | — |  |  |  | 4 |  |  |  | 210 |  |  |  | 6 |  |  |  | 61 |  |  |  | — |  |  |  | 284 |
Provisions |  |  | 206 |  |  |  | (12 | ) |  |  | (33 | ) |  |  | 1,031 |  |  |  | (30 | ) |  |  | 132 |  |  |  | (948 | ) |  |  | 346 |
Ending balance |  | $ | 430 |  |  | $ | 89 |  |  | $ | 431 |  |  | $ | 4,318 |  |  | $ | 261 |  |  | $ | 88 |  |  | $ | 646 |  |  | $ | 6,263 |
Ending balances: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 14 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 14 |
Collectively evaluated for impairment |  |  | 430 |  |  |  | 89 |  |  |  | 431 |  |  |  | 4,304 |  |  |  | 261 |  |  |  | 88 |  |  |  | 646 |  |  |  | 6,249 |
Loans receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance-total |  | $ | 53,933 |  |  | $ | 58,440 |  |  | $ | 52,764 |  |  | $ | 513,833 |  |  | $ | 29,583 |  |  | $ | 9,909 |  |  | $ | — |  |  | $ | 718,462 |
Ending balances: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  |  | — |  |  |  | — |  |  |  | 322 |  |  |  | 4,030 |  |  |  | 29 |  |  |  | — |  |  |  | — |  |  |  | 4,381 |
Collectively evaluated for impairment |  |  | 53,933 |  |  |  | 58,440 |  |  |  | 52,442 |  |  |  | 509,803 |  |  |  | 29,554 |  |  |  | 9,909 |  |  |  | — |  |  |  | 714,081 |
(Dollars in thousands) |  | Commercial |  |  | Real estate Construction |  |  | Real estate Mortgage Residential |  |  | Real estate Mortgage Commercial |  |  | Consumer Home equity |  |  | Consumer Other |  |  | Unallocated |  |  | Total |
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning balance |  | $ | 145 |  |  | $ | 104 |  |  | $ | 438 |  |  | $ | 2,793 |  |  | $ | 153 |  |  | $ | 127 |  |  | $ | 1,454 |  |  | $ | 5,214 |
Charge-offs |  |  | (5 | ) |  |  | — |  |  |  | — |  |  |  | (30 | ) |  |  | (7 | ) |  |  | (131 | ) |  |  | — |  |  |  | (173 | )
Recoveries |  |  | 5 |  |  |  | — |  |  |  | 5 |  |  |  | 172 |  |  |  | 24 |  |  |  | 20 |  |  |  | — |  |  |  | 226 |
Provisions |  |  | 76 |  |  |  | (3 | ) |  |  | 18 |  |  |  | 142 |  |  |  | 138 |  |  |  | 19 |  |  |  | 140 |  |  |  | 530 |
Ending balance |  | $ | 221 |  |  | $ | 101 |  |  | $ | 461 |  |  | $ | 3,077 |  |  | $ | 308 |  |  | $ | 35 |  |  | $ | 1,594 |  |  | $ | 5,797 |
Ending balances: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  | $ | — |  |  | $ | — |  |  | $ | 2 |  |  | $ | 25 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 27 |
Collectively evaluated for impairment |  |  | 221 |  |  |  | 101 |  |  |  | 459 |  |  |  | 3,052 |  |  |  | 308 |  |  |  | 35 |  |  |  | 1,594 |  |  |  | 5,770 |
Loans receivable: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ending balance-total |  | $ | 51,040 |  |  | $ | 45,401 |  |  | $ | 46,901 |  |  | $ | 460,276 |  |  | $ | 32,451 |  |  | $ | 10,736 |  |  | $ | — |  |  | $ | 646,805 |
Ending balances: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Individually evaluated for impairment |  |  | — |  |  |  | — |  |  |  | 413 |  |  |  | 4,742 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 5,155 |
Collectively evaluated for impairment |  |  | 51,040 |  |  |  | 45,401 |  |  |  | 46,488 |  |  |  | 455,534 |  |  |  | 32,451 |  |  |  | 10,736 |  |  |  | — |  |  |  | 641,650 |
At December 31, 2019, $28.0 million of loans acquired in the Cornerstone acquisition were excluded in the evaluation of the adequacy of the allowance for loan losses. These loans were recorded at fair value at acquisition which included a credit component of approximately $1.5 million. Loans acquired prior to 2017 have been included in the evaluation of the allowance for loan losses. Related party loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and generally do not involve more than the normal risk of collectability. The following table presents related party loan transactions for the years ended December 31, 2019 and December 31, 2018.
(Dollars in thousands) |  | For the years ended December 31, |
|  | 2019 |  |  | 2018 |
Balance, beginning of year |  | $ | 5,937 |  |  | $ | 5,938 |
New Loans |  |  | 129 |  |  |  | 778 |
Less loan repayments |  |  | 1,958 |  |  |  | 779 |
Balance, end of year |  | $ | 4,108 |  |  | $ | 5,937 |
The following table presents at December 31, 2019, 2018 and 2017, loans individually evaluated and considered impaired under FASB ASC 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings.
|  | December 31, |
(Dollars in thousands) |  | 2019 |  |  | 2018 |  |  | 2017 |
Total loans considered impaired at year end |  | $ | 3,997 |  |  | $ | 4,381 |  |  | $ | 5,155 |
Loans considered impaired for which there is a related allowance for loan loss: |  |  |  |  |  |  |  |  |  |  |  |
Outstanding loan balance |  | $ | 256 |  |  | $ | 453 |  |  | $ | 1,696 |
Related allowance |  | $ | 6 |  |  | $ | 14 |  |  | $ | 27 |
Loans considered impaired and previously written down to fair value |  | $ | 2,275 |  |  | $ | 3,928 |  |  | $ | 3,485 |
Average impaired loans |  | $ | 4,431 |  |  | $ | 4,128 |  |  | $ | 5,513 |
Amount of interest earned during period of impairment |  | $ | 263 |  |  | $ | 160 |  |  | $ | 132 |
The following tables are by loan category and present at December 31, 2019, December 31, 2018 and December 31, 2017 loans individually evaluated and considered impaired under FASB ASC 310, “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings.
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2019 |  | Recorded Investment |  |  | Unpaid Principal Balance |  |  | Related Allowance |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
With no allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | 400 |  |  | $ | 400 |  |  | $ | — |  |  | $ | 600 |  |  | $ | 49 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-residential |  |  | 392 |  |  |  | 460 |  |  |  | — |  |  |  | 439 |  |  |  | 19 |
Mortgage-commercial |  |  | 2,879 |  |  |  | 5,539 |  |  |  | — |  |  |  | 2,961 |  |  |  | 170 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home Equity |  |  | 70 |  |  |  | 73 |  |  |  | — |  |  |  | 76 |  |  |  | 2 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-commercial |  |  | 256 |  |  |  | 256 |  |  |  | 6 |  |  |  | 355 |  |  |  | 23 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home Equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | 400 |  |  |  | 400 |  |  |  | — |  |  |  | 600 |  |  |  | 49 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-residential |  |  | 392 |  |  |  | 460 |  |  |  | — |  |  |  | 439 |  |  |  | 19 |
Mortgage-commercial |  |  | 3,135 |  |  |  | 5,795 |  |  |  | 6 |  |  |  | 3,316 |  |  |  | 193 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home Equity |  |  | 70 |  |  |  | 73 |  |  |  | — |  |  |  | 76 |  |  |  | 2 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 3,997 |  |  | $ | 6,728 |  |  | $ | 6 |  |  | $ | 4,431 |  |  | $ | 263 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2018 |  | Recorded Investment |  |  | Unpaid Principal Balance |  |  | Related Allowance |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
With no allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-residential |  |  | 322 |  |  |  | 371 |  |  |  | — |  |  |  | 483 |  |  |  | 9 |
Mortgage-commercial |  |  | 3,577 |  |  |  | 6,173 |  |  |  | — |  |  |  | 3,232 |  |  |  | 128 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home Equity |  |  | 29 |  |  |  | 30 |  |  |  | — |  |  |  | 33 |  |  |  | 2 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-residential |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-commercial |  |  | 453 |  |  |  | 453 |  |  |  | 14 |  |  |  | 380 |  |  |  | 21 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home Equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-residential |  |  | 322 |  |  |  | 371 |  |  |  | — |  |  |  | 483 |  |  |  | 9 |
Mortgage-commercial |  |  | 4,030 |  |  |  | 6,626 |  |  |  | 14 |  |  |  | 3,612 |  |  |  | 149 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home Equity |  |  | 29 |  |  |  | 30 |  |  |  | — |  |  |  | 33 |  |  |  | 2 |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 4,381 |  |  | $ | 7,027 |  |  | $ | 14 |  |  | $ | 4,128 |  |  | $ | 160 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2017 |  | Recorded Investment |  |  | Unpaid Principal Balance |  |  | Related Allowance |  |  | Average Recorded Investment |  |  | Interest Income Recognized |
With no allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-residential |  |  | 371 |  |  |  | 437 |  |  |  | — |  |  |  | 399 |  |  |  | — |
Mortgage-commercial |  |  | 3,087 |  |  |  | 5,966 |  |  |  | — |  |  |  | 3,420 |  |  |  | 13 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home Equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-residential |  |  | 42 |  |  |  | 42 |  |  |  | 2 |  |  |  | 43 |  |  |  | 2 |
Mortgage-commercial |  |  | 1,654 |  |  |  | 2,261 |  |  |  | 25 |  |  |  | 1,652 |  |  |  | 117 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home Equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Total: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Mortgage-residential |  |  | 413 |  |  |  | 479 |  |  |  | 2 |  |  |  | 442 |  |  |  | 2 |
Mortgage-commercial |  |  | 4,742 |  |  |  | 8,227 |  |  |  | 25 |  |  |  | 5,072 |  |  |  | 130 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home Equity |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
Other |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |
|  | $ | 5,155 |  |  | $ | 8,706 |  |  | $ | 27 |  |  | $ | 5,514 |  |  | $ | 132 |
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a monthly basis. The Company uses the following definitions for risk ratings: Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be “Pass” rated loans. As of December 31, 2019 and December 31, 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is shown in the table below. As of December 31, 2019 and December 31, 2018, no loans were classified as doubtful.
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2019 |  | Pass |  |  | Special Mention |  |  | Substandard |  |  | Doubtful |  |  | Total |
Commercial, financial & agricultural |  | $ | 51,166 |  |  | $ | 239 |  |  | $ | 400 |  |  | $ | — |  |  | $ | 51,805 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 73,512 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 73,512 |
Mortgage – residential |  |  | 44,221 |  |  |  | 509 |  |  |  | 627 |  |  |  | — |  |  |  | 45,357 |
Mortgage – commercial |  |  | 521,072 |  |  |  | 2,996 |  |  |  | 3,379 |  |  |  | — |  |  |  | 527,447 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home Equity |  |  | 27,450 |  |  |  | 1,157 |  |  |  | 284 |  |  |  | — |  |  |  | 28,891 |
Other |  |  | 9,981 |  |  |  | 35 |  |  |  | — |  |  |  | — |  |  |  | 10,016 |
Total |  | $ | 727,402 |  |  | $ | 4,936 |  |  | $ | 4,690 |  |  | $ | — |  |  | $ | 737,028 |
(Dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
December 31, 2018 |  | Pass |  |  | Special Mention |  |  | Substandard |  |  | Doubtful |  |  | Total |
Commercial, financial & agricultural |  | $ | 53,709 |  |  | $ | 224 |  |  | $ | — |  |  | $ | — |  |  | $ | 53,933 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 58,440 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 58,440 |
Mortgage – residential |  |  | 51,286 |  |  |  | 633 |  |  |  | 845 |  |  |  | — |  |  |  | 52,764 |
Mortgage – commercial |  |  | 505,493 |  |  |  | 5,176 |  |  |  | 3,164 |  |  |  | — |  |  |  | 513,833 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home Equity |  |  | 28,071 |  |  |  | 1,197 |  |  |  | 315 |  |  |  | — |  |  |  | 29,583 |
Other |  |  | 9,907 |  |  |  | — |  |  |  | 2 |  |  |  | — |  |  |  | 9,909 |
Total |  | $ | 706,906 |  |  | $ | 7,230 |  |  | $ | 4,326 |  |  | $ | — |  |  | $ | 718,462 |
At December 31, 2019 and 2018, non-accrual loans totaled $2.3 million and $2.5 million, respectively. The gross interest income which would have been recorded under the original terms of the non-accrual loans amounted to $148 thousand and $218 thousand in 2019 and 2018, respectively. Interest recorded on non-accrual loans in 2019 and 2018 amounted to $66 thousand and $38 thousand, respectively. Troubled debt restructurings (“TDRs”) that are still accruing are included in impaired loans at December 31, 2019 and 2018 amounted to $1.7 million and $2.0 million, respectively. Interest earned during 2019 and 2018 on these loans amounted to $144 thousand and $132 thousand, respectively. There were loans of $0.3 thousand and $31.2 thousand that were greater than 90 days delinquent and still accruing interest as of December 31, 2019 and December 31, 2018, respectively. The following tables are by loan category and present loans past due and on non-accrual status as of December 31, 2019 and December 31, 2018:
(Dollars in thousands) December 31, 2019 |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | Greater than 90 Days and Accruing |  |  | Nonaccrual |  |  | Total Past Due |  |  | Current |  |  | Total Loans |
Commercial |  | $ | — |  |  | $ | 99 |  |  | $ | — |  |  | $ | 400 |  |  | $ | 499 |  |  | $ | 51,306 |  |  | $ | 51,805 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | 113 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 113 |  |  |  | 73,399 |  |  |  | 73,512 |
Mortgage-residential |  |  | 151 |  |  |  | — |  |  |  | — |  |  |  | 392 |  |  |  | 543 |  |  |  | 44,814 |  |  |  | 45,357 |
Mortgage-commercial |  |  | 39 |  |  |  | — |  |  |  | — |  |  |  | 1,467 |  |  |  | 1,506 |  |  |  | 525,941 |  |  |  | 527,447 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity |  |  | 2 |  |  |  | 9 |  |  |  | — |  |  |  | 70 |  |  |  | 81 |  |  |  | 28,810 |  |  |  | 28,891 |
Other |  |  | 40 |  |  |  | 23 |  |  |  | — |  |  |  | — |  |  |  | 63 |  |  |  | 9,953 |  |  |  | 10,016 |
Total |  | $ | 345 |  |  | $ | 131 |  |  | $ | — |  |  | $ | 2,329 |  |  | $ | 2,805 |  |  | $ | 734,223 |  |  | $ | 737,028 |
(Dollars in thousands) December 31, 2018 |  | 30-59 Days Past Due |  |  | 60-89 Days Past Due |  |  | Greater than 90 Days and Accruing |  |  | Nonaccrual |  |  | Total Past Due |  |  | Current |  |  | Total Loans |
Commercial |  | $ | 18 |  |  | $ | 8 |  |  | $ | — |  |  | $ | — |  |  | $ | 26 |  |  | $ | 53,907 |  |  | $ | 53,933 |
Real estate: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 58,440 |  |  |  | 58,440 |
Mortgage-residential |  |  | 110 |  |  |  | 163 |  |  |  | — |  |  |  | 284 |  |  |  | 557 |  |  |  | 52,207 |  |  |  | 52,764 |
Mortgage-commercial |  |  | 1,302 |  |  |  | — |  |  |  | — |  |  |  | 2,232 |  |  |  | 3,534 |  |  |  | 510,299 |  |  |  | 513,833 |
Consumer: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity |  |  | 146 |  |  |  | 11 |  |  |  | 31 |  |  |  | 29 |  |  |  | 217 |  |  |  | 29,366 |  |  |  | 29,583 |
Other |  |  | 14 |  |  |  | 55 |  |  |  | — |  |  |  | — |  |  |  | 69 |  |  |  | 9,840 |  |  |  | 9,909 |
Total |  | $ | 1,590 |  |  | $ | 237 |  |  | $ | 31 |  |  | $ | 2,545 |  |  | $ | 4,403 |  |  | $ | 714,059 |  |  | $ | 718,462 |
There were no loans determined to be TDR’s during the twelve month period ended December 31, 2019 and December 31, 2018. Additionally, there were no loans determined to be TDRs in the twelve months ended December 31, 2019 and December 31, 2018 that had subsequent payment defaults. Defaulted loans are those loans that are greater than 90 days past due. In the determination of the allowance for loan losses, all TDRs are reviewed to ensure that one of the three proper valuation methods (fair market value of the collateral, present value of cash flows, or observable market price) is adhered to. All non-accrual loans are written down to its corresponding collateral value. All TDR accruing loans where the loan balance exceeds the present value of cash flow will have a specific allocation. All nonaccrual loans are considered impaired. Under ASC 310-10, a loan is impaired when it is probable that the Bank will be unable to collect all amounts due including both principal and interest according to the contractual terms of the loan agreement. Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, found in FASB ASC Topic 310-30, (Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality), and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loans. Loans acquired in business combinations with evidence of credit deterioration are considered impaired. Loans acquired through business combinations that do not meet the specific criteria of FASB ASC Topic 310-30, but for which a discount is attributable, at least in part to credit quality, are also accounted for under this guidance. Certain acquired loans, including performing loans and revolving lines of credit (consumer and commercial), are accounted for in accordance with FASB ASC Topic 310-20, where the discount is accreted through earnings based on estimated cash flows over the estimated life of the loan. A summary of changes in the accretable yield for PCI loans for the years ended December 31, 2019, 2018 and 2017 follows:
(Dollars in thousands) |  | Year Ended December 31, 2019 |  |  | Year Ended December 31, 2018 |  |  | Year Ended December 31, 2017 |
Accretable yield, beginning of period |  | $ | 153 |  |  | $ | 21 |  |  | $ | 34 |
Additions |  |  | — |  |  |  | — |  |  |  | 10 |
Accretion |  |  | (30 | ) |  |  | (256 | ) |  |  | (67 | )
Reclassification of non-accretable difference due to improvement in expected cash flows |  |  | — |  |  |  | 284 |  |  |  | 44 |
Other changes, net |  |  | — |  |  |  | 104 |  |  |  | — |
Accretable yield, end of period |  | $ | 123 |  |  | $ | 153 |  |  | $ | 21 |
At December 31, 2019 and 2018 the recorded investment in purchased impaired loans was $112 thousand and $112 thousand respectively. The unpaid principal balance was $190 thousand and $205 thousand at December 31, 2019 and 2018, respectively. At December 31, 2019 and 2018 these loans were all secured by commercial real estate.

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