Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2019

Loans and Allowances for Loan Losses

Schedule of summary of loans, by major class within the Company's loan portfolio


	June 30,		December 31,
(in thousands)	2019		2018
Commercial, financial, and agricultural	$	201,232	$	207,720
Real estate construction - residential		24,527		28,610
Real estate construction - commercial		120,931		106,784
Real estate mortgage - residential		248,980		241,517
Real estate mortgage - commercial		529,217		529,536
Installment and other consumer		32,056		32,460
Total loans	$	1,156,943	$	1,146,627

Schedule of summary of the allowance for loan losses


	Three Months Ended June 30, 2019
	Commercial,		Real Estate		Real Estate		Real Estate		Real Estate		Installment
	Financial, &		Construction -		Construction -		Mortgage -		Mortgage -		and Other		Un-
(in thousands)	Agricultural		Residential		Commercial		Residential		Commercial		Consumer		allocated		Total
Balance at beginning of period	$	3,232	$	74	$	638	$	1,890	$	5,523	$	333	$	155	$	11,845
Additions:
Provision for loan losses		(327)		(17)		66		(27)		591		(20)		(16)		250
Deductions:
Loans charged off		140		—		—		96		8		39		—		283
Less recoveries on loans		(18)		(12)		—		(5)		(3)		(33)		—		(71)
Net loan charge-offs (recoveries)		122		(12)		—		91		5		6		—		212
Balance at end of period	$	2,783	$	69	$	704	$	1,772	$	6,109	$	307	$	139	$	11,883


	Six Months Ended June 30, 2019
	Commercial,		Real Estate		Real Estate		Real Estate		Real Estate		Installment
	Financial, &		Construction -		Construction -		Mortgage -		Mortgage -		and Other		Un-
(in thousands)	Agricultural		Residential		Commercial		Residential		Commercial		Consumer		allocated		Total
Balance at beginning of period	$	3,237	$	140	$	757	$	2,071	$	4,914	$	334	$	199	$	11,652
Additions:
Provision for loan losses		(388)		(83)		(53)		(223)		1,208		(1)		(60)		400
Deductions:
Loans charged off		193		—		—		180		16		91		—		480
Less recoveries on loans		(127)		(12)		—		(104)		(3)		(65)		—		(311)
Net loan charge-offs (recoveries)		66		(12)		—		76		13		26		—		169
Balance at end of period	$	2,783	$	69	$	704	$	1,772	$	6,109	$	307	$	139	$	11,883


	Three Months Ended June 30, 2018
	Commercial,		Real Estate		Real Estate		Real Estate		Real Estate		Installment
	Financial, &		Construction -		Construction -		Mortgage -		Mortgage -		and Other		Un-
(in thousands)	Agricultural		Residential		Commercial		Residential		Commercial		Consumer		allocated		Total
Balance at beginning of period	$	3,261	$	240	$	895	$	2,057	$	4,008	$	352	$	134	$	10,947
Additions:
Provision for loan losses		865		(52)		10		48		(388)		90		(123)		450
Deductions:
Loans charged off		193		—		—		12		15		49		—		269
Less recoveries on loans		(10)		(13)		—		(16)		(25)		(20)		—		(84)
Net loan charge-offs (recoveries)		183		(13)		—		(4)		(10)		29		—		185
Balance at end of period	$	3,943	$	201	$	905	$	2,109	$	3,630	$	413	$	11	$	11,212


	Six Months Ended June 30, 2018
	Commercial,		Real Estate		Real Estate		Real Estate		Real Estate		Installment
	Financial, &		Construction -		Construction -		Mortgage -		Mortgage -		and Other		Un-
(in thousands)	Agricultural		Residential		Commercial		Residential		Commercial		Consumer		allocated		Total
Balance at beginning of period	$	3,325	$	170	$	807	$	1,689	$	4,437		345	$	79	$	10,852
Additions:
Provision for loan losses		898		54		128		416		(809)		131		(68)		750
Deductions:
Loans charged off		303		48		30		32		29		106		—		548
Less recoveries on loans		(23)		(25)		—		(36)		(31)		(43)		—		(158)
Net loan charge-offs (recoveries)		280		23		30		(4)		(2)		63		—		390
Balance at end of period	$	3,943	$	201	$	905	$	2,109	$	3,630	$	413	$	11	$	11,212

Schedule of allowance for loan losses and recorded investment by portfolio segment


	Commercial,		Real Estate		Real Estate		Real Estate		Real Estate		Installment
	Financial, and		Construction -		Construction -		Mortgage -		Mortgage -		and Other		Un-
(in thousands)	Agricultural		Residential		Commercial		Residential		Commercial		Consumer		allocated		Total
June 30, 2019
Allowance for loan losses:
Individually evaluated for impairment	$	328	$	—	$	—	$	364	$	51	$	24	$	—	$	767
Collectively evaluated for impairment		2,455		69		704		1,408		6,058		283		139		11,116
Total	$	2,783	$	69	$	704	$	1,772	$	6,109	$	307	$	139	$	11,883
Loans outstanding:
Individually evaluated for impairment	$	2,142	$	—	$	146	$	4,463	$	1,524	$	218	$	—	$	8,493
Collectively evaluated for impairment		199,090		24,527		120,785		244,517		527,693		31,838		—		1,148,450
Total	$	201,232	$	24,527	$	120,931	$	248,980	$	529,217	$	32,056	$	—	$	1,156,943

December 31, 2018
Allowance for loan losses:
Individually evaluated for impairment	$	551	$	—	$	—	$	579	$	37	$	27	$	—	$	1,194
Collectively evaluated for impairment		2,686		140		757		1,492		4,877		307		199		10,458
Total	$	3,237	$	140	$	757	$	2,071	$	4,914	$	334	$	199	$	11,652
Loans outstanding:
Individually evaluated for impairment	$	2,428	$	—	$	153	$	4,793	$	850	$	254	$	—	$	8,478
Collectively evaluated for impairment		205,292		28,610		106,631		236,724		528,686		32,206		—		1,138,149
Total	$	207,720	$	28,610	$	106,784	$	241,517	$	529,536	$	32,460	$	—	$	1,146,627

Schedule of impaired loans


	June 30,		December 31,
(in thousands)	2019		2018
Non-accrual loans	$	5,623	$	5,414
Performing TDRs		2,870		3,064
Total impaired loans	$	8,493	$	8,478

The following tables provide additional information about impaired loans at June 30, 2019 and December 31, 2018, respectively, segregated between loans for which an allowance has been provided and loans for which no allowance has been provided.


			Unpaid
	Recorded		Principal		Specific
(in thousands)	Investment		Balance		Reserves
June 30, 2019
With no related allowance recorded:
Commercial, financial and agricultural	$	1,181	$	1,510	$	—
Real estate - construction commercial		146		177		—
Real estate - residential		735		813		—
Real estate - commercial		107		113		—
Total	$	2,169	$	2,613	$	—
With an allowance recorded:
Commercial, financial and agricultural	$	961	$	1,039	$	328
Real estate - residential		3,728		4,020		364
Real estate - commercial		1,417		1,529		51
Installment and other consumer		218		249		24
Total	$	6,324	$	6,837	$	767
Total impaired loans	$	8,493	$	9,450	$	767


			Unpaid
	Recorded		Principal		Specific
(in thousands)	Investment		Balance		Reserves
December 31, 2018
With no related allowance recorded:
Commercial, financial and agricultural	$	1,264	$	1,550	$	—
Real estate - construction commercial		153		180		—
Real estate - residential		561		602		—
Real estate - commercial		115		119		—
Total	$	2,093	$	2,451	$	—
With an allowance recorded:
Commercial, financial and agricultural	$	1,164	$	1,236	$	551
Real estate - residential		4,232		4,458		579
Real estate - commercial		735		1,093		37
Installment and other consumer		254		280		27
Total	$	6,385	$	7,067	$	1,194
Total impaired loans	$	8,478	$	9,518	$	1,194

The following table presents by class, information related to the average recorded investment and interest income recognized on impaired loans during the periods indicated.


	Three Months Ended June 30,								Six Months Ended June 30,
	2019				2018				2019				2018
			Interest				Interest				Interest				Interest
	Average		Recognized		Average		Recognized		Average		Recognized		Average		Recognized
	Recorded		For the		Recorded		For the		Recorded		For the		Recorded		For the
(in thousands)	Investment		Period Ended		Investment		Period Ended		Investment		Period Ended		Investment		Period Ended
With no related allowance recorded:
Commercial, financial and agricultural	$	1,189	$	—	$	1,153	$	—	$	1,304	$	—	$	1,302	$	1
Real estate - construction commercial		147		—		113		—		152		—		42		—
Real estate - residential		1,092		—		933		3		785		—		900		6
Real estate - commercial		107		—		116		10		144		—		237		19
Installment and other consumer		—		—		137		—		—		—		34		—
Total	$	2,535	$	—	$	2,452	$	13	$	2,385	$	—	$	2,515	$	26
With an allowance recorded:
Commercial, financial and agricultural	$	1,079	$	11	$	1,621	$	8	$	1,115	$	21	$	1,737	$	15
Real estate - construction residential		—		—		20		—		—		—		15		—
Real estate - construction commercial		—		—		—		—		—		—		24		—
Real estate - residential		3,481		21		4,118		14		4,044		46		4,247		47
Real estate - commercial		1,170		7		1,732		5		927		16		1,691		10
Installment and other consumer		236		1		172		1		245		2		167		1
Total	$	5,966	$	40	$	7,663	$	28	$	6,331	$	85	$	7,881	$	73
Total impaired loans	$	8,501	$	40	$	10,115	$	41	$	8,716	$	85	$	10,396	$	99

Schedule of aging information for the Company's past due and non-accrual loans


	Current or				90 Days
	Less Than				Past Due
	30 Days		30 - 89 Days		And Still
(in thousands)	Past Due		Past Due		Accruing		Non-Accrual		Total
June 30, 2019
Commercial, Financial, and Agricultural	$	199,298	$	393	$	—	$	1,541	$	201,232
Real Estate Construction - Residential		24,527		—		—		—		24,527
Real Estate Construction - Commercial		120,314		471		—		146		120,931
Real Estate Mortgage - Residential		245,305		875		197		2,603		248,980
Real Estate Mortgage - Commercial		527,069		993		—		1,155		529,217
Installment and Other Consumer		31,661		197		20		178		32,056
Total	$	1,148,174	$	2,929	$	217	$	5,623	$	1,156,943
December 31, 2018
Commercial, Financial, and Agricultural	$	205,597	$	266	$	—	$	1,857	$	207,720
Real Estate Construction - Residential		28,404		206		—		—		28,610
Real Estate Construction - Commercial		106,531		100		—		153		106,784
Real Estate Mortgage - Residential		235,734		2,907		156		2,720		241,517
Real Estate Mortgage - Commercial		527,968		1,094		—		474		529,536
Installment and Other Consumer		32,002		242		6		210		32,460
Total	$	1,136,236	$	4,815	$	162	$	5,414	$	1,146,627

Schedule of risk categories by class


	Commercial,		Real Estate		Real Estate		Real Estate		Real Estate		Installment
	Financial, &		Construction -		Construction -		Mortgage -		Mortgage -		and other
(in thousands)	Agricultural		Residential		Commercial		Residential		Commercial		Consumer		Total
At June 30, 2019
Watch	$	12,534	$	1,116	$	4,838	$	13,712	$	37,047	$	7	$	69,254
Substandard		1,267		—		—		1,332		690		3		3,292
Performing TDRs		601		—		—		1,860		369		40		2,870
Non-accrual		1,541		—		146		2,603		1,155		178		5,623
Total	$	15,943	$	1,116	$	4,984	$	19,507	$	39,261	$	228	$	81,039
At December 31, 2018
Watch	$	8,871	$	588	$	4,063	$	12,790	$	36,408	$	8	$	62,728
Substandard		53		—		—		1,411		702		3		2,169
Performing TDRs		570		—		—		2,073		377		44		3,064
Non-accrual		1,857		—		153		2,720		474		210		5,414
Total	$	11,351	$	588	$	4,216	$	18,994	$	37,961	$	265	$	73,375

Schedule of summary of loans that were modified as TDRs


	Three Months Ended June 30,
	2019					2018
	Recorded Investment (1)					Recorded Investment (1)
	Number of	Pre-		Post-		Number of	Pre-		Post-
(in thousands)	Contracts	Modification		Modification		Contracts	Modification		Modification
Troubled Debt Restructurings
Real estate mortgage - residential	—	$	—	$	—	1	$	75	$	75
Real estate mortgage - commercial	—		—		—	1		68		64
Installment and other consumer	—		—		—	4		48		47
Total	—	$	—	$	—	6	$	191	$	186


	Six Months Ended June 30,
	2019					2018
	Recorded Investment (1)					Recorded Investment (1)
	Number of	Pre-		Post-		Number of	Pre-		Post-
(in thousands)	Contracts	Modification		Modification		Contracts	Modification		Modification
Troubled Debt Restructurings
Commercial, financial and agricultural	2	$	80	$	80	—	$	—	$	—
Real estate mortgage - residential	—		—		—	1		75		75
Real estate mortgage - commercial	—		—		—	1		68		64
Installment and other consumer	—		—		—	4		48		47
Total	2	$	80	$	80	6	$	191	$	186

(1)

The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported.