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Loans and Allowance for Loan Losses (Tables)

9 Months Ended

Sep. 30, 2021

Loans and Allowances for Loan Losses

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


	September 30,		December 31,
(in thousands)	2021		2020
Commercial, financial, and agricultural (a)	$	232,532	$	272,918
Real estate construction − residential		33,514		29,692
Real estate construction − commercial		72,031		78,144
Real estate mortgage − residential		273,768		262,339
Real estate mortgage − commercial		647,043		617,133
Installment and other consumer		23,932		26,741
Total loans held for investment	$	1,282,820	$	1,286,967

(a)	Includes $26.0 million and $63.3 million of SBA PPP loans, net as of September 30, 2021 and December 31, 2020, respectively.

Schedule of summary of the allowance for loan losses


	Three Months Ended September 30, 2021
	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	$	5,336	$	251	$	495	$	2,467	$	9,915	$	252	$	19	$	18,735
Additions:
Provision for loan losses		(609)		(16)		(70)		216		780		59		(60)		300
Deductions:
Loans charged off		45		—		—		18		15		78		—		156
Less recoveries on loans		(19)		—		—		(8)		(1)		(22)		—		(50)
Net loan charge-offs (recoveries)		26		—		—		10		14		56		—		106
Balance at end of period	$	4,701	$	235	$	425	$	2,673	$	10,681	$	255	$	(41)	$	18,929


	Three Months Ended September 30, 2020
	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	$	3,614	$	171	$	722	$	2,711	$	9,048	$	306	$	50	$	16,622
Additions:
Provision for loan losses		178		49		100		577		218		58		20		1,200
Deductions:
Loans charged off		46		—		—		—		13		42		—		101
Less recoveries on loans		(11)		(13)		—		(4)		—		(15)		—		(43)
Net loan charge-offs (recoveries)		35		(13)		—		(4)		13		27		—		58
Balance at end of period	$	3,757	$	233	$	822	$	3,292	$	9,253	$	337	$	70	$	17,764


	Nine Months Ended September 30, 2021
	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	$	5,121	$	213	$	475	$	2,679	$	9,354	$	264	$	7	$	18,113
Additions:
Provision for loan losses		(522)		9		(50)		(167)		1,368		110		(48)		700
Deductions:
Loans charged off		100		—		—		22		42		181		—		345
Less recoveries on loans		(202)		(13)		—		(183)		(1)		(62)		—		(461)
Net loan charge-offs (recoveries)		(102)		(13)		—		(161)		41		119		—		(116)
Balance at end of period	$	4,701	$	235	$	425	$	2,673	$	10,681	$	255	$	(41)	$	18,929


	Nine Months Ended September 30, 2020
	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	$	2,918	$	64	$	369	$	2,118	$	6,547	$	381	$	80	$	12,477
Additions:
Provision for loan losses		867		125		453		1,186		2,740		39		(10)		5,400
Deductions:
Loans charged off		130		—		—		52		37		133		—		352
Less recoveries on loans		(102)		(44)		—		(40)		(3)		(50)		—		(239)
Net loan charge-offs (recoveries)		28		(44)		—		12		34		83		—		113
Balance at end of period	$	3,757	$	233	$	822	$	3,292	$	9,253	$	337	$	70	$	17,764

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
September 30, 2021
Allowance for loan losses:
Individually evaluated for impairment	$	2,154	$	—	$	14	$	201	$	2,556	$	7	$	—	$	4,932
Collectively evaluated for impairment		2,547		235		411		2,472		8,125		248		(41)		13,997
Total	$	4,701	$	235	$	425	$	2,673	$	10,681	$	255	$	(41)	$	18,929
Loans outstanding:
Individually evaluated for impairment	$	6,565	$	—	$	108	$	2,743	$	25,272	$	58	$	—	$	34,746
Collectively evaluated for impairment		225,967		33,514		71,923		271,025		621,771		23,874		—		1,248,074
Total	$	232,532	$	33,514	$	72,031	$	273,768	$	647,043	$	23,932	$	—	$	1,282,820

December 31, 2020
Allowance for loan losses:
Individually evaluated for impairment	$	2,187	$	27	$	28	$	263	$	2,594	$	14	$	—	$	5,113
Collectively evaluated for impairment		2,934		186		447		2,416		6,760		250		7		13,000
Total	$	5,121	$	213	$	475	$	2,679	$	9,354	$	264	$	7	$	18,113
Loans outstanding:
Individually evaluated for impairment	$	7,552	$	192	$	200	$	3,626	$	25,657	$	108	$	—	$	37,335
Collectively evaluated for impairment		265,366		29,500		77,944		258,713		591,476		26,633		—		1,249,632
Total	$	272,918	$	29,692	$	78,144	$	262,339	$	617,133	$	26,741	$	—	$	1,286,967

Schedule of impaired loans


	September 30,		December 31,
(in thousands)	2021		2020
Non-accrual loans	$	32,835	$	34,559
Performing TDRs		1,911		2,776
Total impaired loans	$	34,746	$	37,335

The following tables provide additional information about impaired loans at September 30, 2021 and December 31, 2020, 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
September 30, 2021
With no related allowance recorded:
Commercial, financial and agricultural	$	1,451	$	1,500	$	—
Real estate mortgage − residential		1,106		1,219		—
Real estate mortgage − commercial		9,311		9,433		—
Total	$	11,868	$	12,152	$	—
With an allowance recorded:
Commercial, financial and agricultural	$	5,114	$	5,324	$	2,154
Real estate construction − commercial		108		140		14
Real estate mortgage − residential		1,637		2,039		201
Real estate mortgage − commercial		15,961		16,242		2,556
Installment and other consumer		58		60		7
Total	$	22,878	$	23,805	$	4,932
Total impaired loans	$	34,746	$	35,957	$	4,932


			Unpaid
	Recorded		Principal		Specific
(in thousands)	Investment		Balance		Reserves
December 31, 2020
With no related allowance recorded:
Commercial, financial and agricultural	$	1,703	$	1,731	$	—
Real estate mortgage − residential		1,300		1,395		—
Real estate mortgage − commercial		8,943		8,943		—
Total	$	11,946	$	12,069	$	—
With an allowance recorded:
Commercial, financial and agricultural	$	5,849	$	6,180	$	2,187
Real estate construction − residential		192		192		27
Real estate construction − commercial		200		251		28
Real estate mortgage − residential		2,326		2,786		263
Real estate mortgage − commercial		16,714		16,787		2,594
Installment and other consumer		108		112		14
Total	$	25,389	$	26,308	$	5,113
Total impaired loans	$	37,335	$	38,377	$	5,113

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 September 30,								Nine Months Ended September 30,
	2021				2020				2021				2020
			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	$	1,517	$	18	$	172	$	128	$	1,703	$	31	$	1,612	$	128
Real estate construction − commercial		—		—		—		—		—		—		179		—
Real estate mortgage − residential		1,131		—		1,414		17		1,238		21		2,101		17
Real estate mortgage − commercial		9,376		—		861		—		9,411		—		870		13
Installment and other consumer		—		—		—		—		—		—		7		—
Total	$	12,024	$	18	$	2,447	$	145	$	12,352	$	52	$	4,769	$	158
With an allowance recorded:
Commercial, financial and agricultural	$	5,295	$	5	$	1,359	$	8	$	5,409	$	19	$	1,237	$	27
Real estate construction − residential		—		—		—		—		63		—		—		—
Real estate construction − commercial		109		—		609		—		139		—		461		—
Real estate mortgage − residential		1,713		16		2,412		—		1,691		26		2,360		36
Real estate mortgage − commercial		16,102		7		1,133		8		16,111		21		984		14
Installment and other consumer		55		—		113		8		63		3		115		7
Total	$	23,274	$	28	$	5,626	$	24	$	23,476	$	69	$	5,157	$	84
Total impaired loans	$	35,298	$	46	$	8,073	$	169	$	35,828	$	121	$	9,926	$	242

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
September 30, 2021
Commercial, Financial, and Agricultural	$	226,230	$	10	$	—	$	6,292	$	232,532
Real estate construction − residential		33,154		360		—		—		33,514
Real estate construction − commercial		71,923		—		—		108		72,031
Real estate mortgage − residential		272,068		225		—		1,475		273,768
Real estate mortgage − commercial		622,062		41		—		24,940		647,043
Installment and Other Consumer		23,846		66		—		20		23,932
Total	$	1,249,283	$	702	$	—	$	32,835	$	1,282,820
December 31, 2020
Commercial, Financial, and Agricultural	$	265,821	$	380	$	—	$	6,717	$	272,918
Real estate construction − residential		29,500		—		—		192		29,692
Real estate construction − commercial		77,944		—		—		200		78,144
Real estate mortgage − residential		259,688		546		—		2,105		262,339
Real estate mortgage − commercial		591,815		4		—		25,314		617,133
Installment and Other Consumer		26,576		117		17		31		26,741
Total	$	1,251,344	$	1,047	$	17	$	34,559	$	1,286,967

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 September 30, 2021
Watch	$	9,169	$	—	$	3,796	$	13,096	$	46,805	$	—	$	72,866
Substandard		101		—		2,671		766		547		—		4,085
Performing TDRs		273		—		—		1,268		332		38		1,911
Non-accrual loans		6,292		—		108		1,475		24,940		20		32,835
Total	$	15,835	$	—	$	6,575	$	16,605	$	72,624	$	58	$	111,697
At December 31, 2020
Watch	$	9,649	$	545	$	10,806	$	15,835	$	66,936	$	—	$	103,771
Substandard		598		—		—		1,002		1,662		—		3,262
Performing TDRs		835		—		—		1,521		343		77		2,776
Non-accrual loans		6,717		192		200		2,105		25,314		31		34,559
Total	$	17,799	$	737	$	11,006	$	20,463	$	94,255	$	108	$	144,368

Schedule of summary of loans that were modified as TDRs


	Nine Months Ended September 30,
	2021					2020
	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	$	111	$	117
Installment and other consumer	—		—		—	1		6		4
Total	—	$	—	$	—	2	$	117	$	121

(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.