Annual report pursuant to Section 13 and 15(d)

LOANS, NET (Tables)

v3.3.1.900
LOANS, NET (Tables)
 12 Months Ended
Dec. 31, 2015
Loans Tables  
Schedule of composition of the loan portfolio

Loan Portfolio Composition. The composition of the loan portfolio at December 31 was as follows:

 

(Dollars in Thousands)   2015     2014  
Commercial, Financial and Agricultural   $ 179,816     $ 136,925  
Real Estate – Construction     46,484       41,596  
Real Estate – Commercial Mortgage     499,813       510,120  
Real Estate – Residential(1)     290,585       295,969  
Real Estate – Home Equity     233,901       229,572  
Consumer     241,676       217,192  
Loans, Net of Unearned Income   $ 1,492,275     $ 1,431,374  

 

  (1) Includes loans in process with outstanding balances of $8.5 million and $7.4 million for 2015 and 2014, respectively.
Schedule of recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans at December 31:

 

    2015     2014  
(Dollars in Thousands)   Nonaccrual     90 + Days     Nonaccrual     90 + Days  
Commercial, Financial and Agricultural   $ 96       —     $ 507       —  
Real Estate – Construction     97       —       424       —  
Real Estate – Commercial Mortgage     4,191       —       5,806       —  
Real Estate – Residential     4,739       —       6,737       —  
Real Estate – Home Equity     1,017       —       2,544       —  
Consumer     165       —       751       —  
Total   $ 10,305       —     $ 16,769       —  
Schedule of aging of past due loans by class of loans

The following table presents the aging of the recorded investment in past due loans by class of loans at December 31,

 

 

(Dollars in Thousands)

   30-59
DPD 		    60-89
DPD 		    90 +
DPD 		    Total
Past Due		     Total
Current 		    Total
Loans 		 
2015                                                
Commercial, Financial and Agricultural   $ 153     $ 18     $ —     $ 171     $ 179,549     $ 179,816  
Real Estate – Construction     690       —       —       690       45,697       46,484  
Real Estate – Commercial Mortgage     754       1,229       —       1,983       493,639       499,813  
Real Estate – Residential     567       347       —       914       284,932       290,585  
Real Estate – Home Equity     787       97       —       884       232,000       233,901  
Consumer     735       398       —       1,133       240,378       241,676  
Total   $ 3,686     $ 2,089     $ —     $ 5,775     $ 1,476,195     $ 1,492,275  
                                                 
2014                                                
Commercial, Financial and Agricultural   $ 352     $ 155     $ —     $ 507     $ 135,911     $ 136,925  
Real Estate – Construction     690       —       —       690       40,482       41,596  
Real Estate – Commercial Mortgage     1,701       569       —       2,270       502,044       510,120  
Real Estate – Residential     682       1,147       —       1,829       287,403       295,969  
Real Estate – Home Equity     689       85       —       774       226,254       229,572  
Consumer     625       97       —       722       215,719       217,192  
Total   $ 4,739     $ 2,053     $ —     $ 6,792     $ 1,407,813     $ 1,431,374  
Schedule of activity in the allowance for loan losses by portfolio class

The following table details the activity in the allowance for loan losses by portfolio class for the years ended December 31. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

 

    Commercial,           Real Estate           Real Estate                    
    Financial,     Real Estate     Commercial     Real Estate     Home                    
(Dollars in Thousands)   Agricultural     Construction     Mortgage     Residential     Equity     Consumer     Unallocated     Total  
2015                                                                
Beginning Balance   $ 784     $ 843     $ 5,287     $ 6,520     $ 2,882     $ 1,223     $ —     $ 17,539  
Provision for Loan Losses     911       (742 )     278       (964 )     858       1,253       —       1,594  
Charge-Offs     (1,029 )     —       (1,250 )     (1,852 )     (1,403 )     (1,901 )     —       (7,435 )
Recoveries     239       —       183       705       136       992       —       2,255  
Net Charge-Offs     (790 )     —       (1,067 )     (1,147 )     (1,267 )     (909 )     —       (5,180 )
Ending Balance   $ 905     $ 101     $ 4,498     $ 4,409     $ 2,473     $ 1,567     $ —     $ 13,953  
                                                                 
2014                                                                
Beginning Balance   $ 699     $ 1,580     $ 7,710     $ 9,073     $ 3,051     $ 982     $ —     $ 23,095  
Provision for Loan Losses     742       (718 )     897       (1,145 )     1,069       1,060       —       1,905  
Charge-Offs     (871 )     (28 )     (3,788 )     (2,160 )     (1,379 )     (1,820 )     —       (10,046 )
Recoveries     214       9       468       752       141       1,001       —       2,585  
Net Charge-Offs     (657 )     (19 )     (3,320 )     (1,408 )     (1,238 )     (819 )     —       (7,461 )
Ending Balance   $ 784     $ 843     $ 5,287     $ 6,520     $ 2,882     $ 1,223     $ —     $ 17,539  
                                                                 
2013                                                                
Beginning Balance   $ 1,253     $ 2,856     $ 11,081     $ 8,678     $ 2,945     $ 1,327     $ 1,027     $ 29,167  
Provision for Loan Losses     (15 )     (207 )     (83 )     3,392       971       441       (1,027 )     3,472  
Charge-Offs     (748 )     (1,070 )     (3,651 )     (3,835 )     (1,159 )     (1,751 )     —       (12,214 )
Recoveries     209       1       363       838       294       965       —       2,670  
Net Charge-Offs     (539 )     (1,069 )     (3,288 )     (2,997 )     (865 )     (786 )     —       (9,544 )
Ending Balance   $ 699     $ 1,580     $ 7,710     $ 9,073     $ 3,051     $ 982     $ —     $ 23,095  
Schedule of allowance for loan losses by portfolio class and disaggregated on the basis of the impairment methodology

The following table details the amount of the allowance for loan losses by portfolio class at December 31, disaggregated on the basis of the Company’s impairment methodology.

 

    Commercial,           Real Estate           Real Estate              
    Financial,     Real Estate     Commercial     Real Estate     Home              
(Dollars in Thousands)   Agricultural     Construction     Mortgage     Residential     Equity     Consumer     Total  
2015                                                        
Period-end amount                                                        
Allocated to:                                                        
Loans Individually Evaluated for Impairment   $ 77     $ —     $ 2,049     $ 2,118     $ 384     $ 18     $ 4,646  
Loans Collectively Evaluated for Impairment     828       101       2,449       2,291       2,089       1,549       9,307  
Ending Balance   $ 905     $ 101     $ 4,498     $ 4,409     $ 2,473     $ 1,567     $ 13,953  
                                                         
2014                                                        
Period-end amount                                                        
Allocated to:                                                        
Loans Individually Evaluated for Impairment   $ 293     $ —     $ 2,733     $ 2,113     $ 638     $ 5     $ 5,782  
Loans Collectively Evaluated for Impairment     491       843       2,554       4,407       2,244       1,218       11,757  
Ending Balance   $ 784     $ 843     $ 5,287     $ 6,520     $ 2,882     $ 1,223     $ 17,539  
                                                         
2013                                                        
Period-end amount                                                        
Allocated to:                                                        
Loans Individually Evaluated for Impairment   $ 75     $ 66     $ 4,336     $ 2,047     $ 682     $ 23     $ 7,229  
Loans Collectively Evaluated for Impairment     624       1,514       3,374       7,026       2,369       959       15,866  
Ending Balance   $ 699     $ 1,580     $ 7,710     $ 9,073     $ 3,051     $ 982     $ 23,095  
Schedule of allowance for loan losses by portfolio class

The Company’s recorded investment in loans as of December 31 related to each balance in the allowance for loan losses by portfolio class and disaggregated on the basis of the Company’s impairment methodology was as follows: 

                                           
    Commercial,           Real Estate           Real Estate              
    Financial,     Real Estate     Commercial     Real Estate     Home              
(Dollars in Thousands)   Agricultural     Construction     Mortgage     Residential     Equity     Consumer     Total  
2015                                                        
Individually Evaluated for Impairment   $ 834     $ 97     $ 20,847     $ 18,569     $ 3,144     $ 261     $ 43,752  
Collectively Evaluated for Impairment     178,982       46,387       478,966       272,016       230,757       241,415       1,448,523  
Total   $ 179,816     $ 46,484     $ 499,813     $ 290,585     $ 233,901     $ 241,676     $ 1,492,275  
                                                         
2014                                                        
Individually Evaluated for Impairment   $ 1,040     $ 401     $ 32,242     $ 20,120     $ 3,074     $ 216     $ 57,093  
Collectively Evaluated for Impairment     135,885       41,195       477,878       275,849       226,498       216,976       1,374,281  
Total   $ 136,925     $ 41,596     $ 510,120     $ 295,969     $ 229,572     $ 217,192     $ 1,431,374  
                                                         
2013                                                        
Individually Evaluated for Impairment   $ 1,580     $ 557     $ 49,973     $ 20,470     $ 3,359     $ 355     $ 76,294  
Collectively Evaluated for Impairment     125,027       30,455       483,898       289,222       224,563       159,145       1,312,310  
Total   $ 126,607     $ 31,012     $ 533,871     $ 309,692     $ 227,922     $ 159,500     $ 1,388,604  
Schedule of loans individually evaluated for impairment by class of loans

The following table presents loans individually evaluated for impairment by class of loans at December 31:

 

 

(Dollars in Thousands)

   Unpaid
Principal
Balance		     Recorded
Investment
With No
Allowance		     Recorded
Investment
With Allowance		     Related
Allowance		  
2015                                
Commercial, Financial and Agricultural   $ 834     $ 279     $ 555     $ 77  
Real Estate – Construction     97       97       —       —  
Real Estate – Commercial Mortgage     20,847       3,265       17,582       2,049  
Real Estate – Residential     18,569       2,941       15,628       2,118  
Real Estate – Home Equity     3,144       1,101       2,043       384  
Consumer     261       79       182       18  
Total   $ 43,752     $ 7,762     $ 35,990     $ 4,646  
                                 
2014                                
Commercial, Financial and Agricultural   $ 1,040     $ 189     $ 851     $ 293  
Real Estate – Construction     401       401       —       —  
Real Estate – Commercial Mortgage     32,242       11,984       20,258       2,733  
Real Estate – Residential     20,120       5,492       14,628       2,113  
Real Estate – Home Equity     3,074       758       2,316       638  
Consumer     216       3       213       5  
Total   $ 57,093     $ 18,827     $ 38,266     $ 5,782  
Schedule of Average recorded investment and interest income recognized by class of impaired loans

The following table summarizes the average recorded investment and interest income recognized for each of the last three years by class of impaired loans:

 

    2015     2014     2013  
(Dollars in Thousands)   Average
Recorded
Investment		     Total
Interest
Income		     Average
Recorded
Investment		     Total
Interest
Income		     Average
Recorded
Investment		     Total
Interest
Income		  
Commercial, Financial and Agricultural   $ 1,002     $ 46     $ 1,440     $ 62     $ 2,861     $ 140  
Real Estate – Construction     335       —       637       4       1,181       7  
Real Estate – Commercial Mortgage     27,644       1,093       41,435       1,725       60,043       2,062  
Real Estate – Residential     19,105       842       21,122       1,070       21,238       860  
Real Estate – Home Equity     3,001       86       3,000       72       4,037       72  
Consumer     201       7       294       9       501       10  
Total   $ 51,288     $ 2,074     $ 67,928     $ 2,942     $ 89,861     $ 3,151  
Schedule of risk category of loans by segment

The following table presents the risk category of loans by segment at December 31: 

                         
    Commercial,
Financial,		                 Total
Criticized		  
(Dollars in Thousands)   Agriculture     Real Estate      Consumer     Loans  
2015                                
Special Mention   $ 5,938     $ 27,838     $ 69     $ 33,845  
Substandard     1,307       51,425       819       53,551  
Doubtful     —       —       —       —  
Total Criticized Loans   $ 7,245     $ 79,263     $ 888     $ 87,396  
                                 
2014                                
Special Mention   $ 8,059     $ 51,060     $ 114     $ 59,233  
Substandard     2,817       79,167       1,153       83,137  
Doubtful     —       —       —       —  
Total Criticized Loans   $ 10,876     $ 130,227     $ 1,267     $ 142,370  
Schedule of troubled debt restructurings loans

The following table presents loans classified as TDRs at December 31:

 

    2015     2014  
(Dollars in Thousands)   Accruing     Nonaccruing     Accruing     Nonaccruing  
Commercial, Financial and Agricultural   $ 897     $ —     $ 838     $ 266  
Real Estate – Construction     —       —       —       —  
Real Estate – Commercial Mortgage     16,621       1,070       26,565       1,591  
Real Estate – Residential     14,979       1,582       14,940       2,531  
Real Estate – Home Equity     2,914       —       1,856       356  
Consumer     223       35       211       —  
Total TDRs   $ 35,634     $ 2,687     $ 44,410     $ 4,744  
Schedule of loans classified as troubled debt in which modifications made

 

Loans classified as TDRs during 2015, 2014, and 2013 are presented in the table below. The modifications made during the reporting period involved either an extension of the loan term, a principal moratorium, a reduction in the interest rate, or a combination thereof. The financial impact of these modifications was not material.

 

    2015     2014     2013  
    Number           Number           Number        
    of     Recorded     of     Recorded     of     Recorded  
(Dollars in Thousands)   Contracts     Investment(1)     Contracts     Investment(1)     Contracts     Investment(1)  
Commercial, Financial and Agricultural     1     $ 40       3     $ 320       4     $ 337  
Real Estate – Construction     —       —       —       —       —       —  
Real Estate – Commercial Mortgage     4       631       3       1,769       13       9,653  
Real Estate – Residential     14       1,531       11       1,972       18       2,073  
Real Estate – Home Equity     21       1,005       10       883       9       587  
Consumer     3       110       1       34       6       93  
Total TDRs     43     $ 3,317       28     $ 4,978       50     $ 12,743  

 

(1) Recorded investment reflects charge-offs and additional funds advanced at time of restructure, if applicable.
Schedule of loans classified as troubled debt subsequently defaulted

The following table provides information on how TDRs were modified during the periods included.

 

    2015     2014     2013  
    Number     Post-Modified     Number     Post-Modified     Number     Post-Modified  
    of     Recorded     of     Recorded     of     Recorded  
(Dollars in Thousands)   Contracts     Investment     Contracts     Investment     Contracts     Investment  
Extended Amortization     16     $ 973       10     $ 1,894       15     $ 4,334  
Interest Rate Adjustment     5       284       1       156       9       982  
Extended Amortization and                                                
   Interest Rate Adjustment     22       2,060       8       1,179       17       5,381  
Principal Moratorium     —       —       —       —       1       1,700  
Other     —       —       9       1,749       8       346  
Total TDRs     43     $ 3,317       28     $ 4,978       50     $ 12,743  
                                                 

The following table presents loans classified as TDRs for which there was a payment default during the years presented and the loans were modified within the twelve months prior to default.

 

    2015     2014     2013  
    Number           Number           Number        
    of     Recorded     of     Recorded     of     Recorded  
(Dollars in Thousands)   Contracts     Investment(1)     Contracts     Investment(1)     Contracts     Investment(1)  
Commercial, Financial and Agricultural     —     $ —       —     $ —       —     $ —  
Real Estate – Construction     —       —       —       —       —       —  
Real Estate – Commercial Mortgage     —       —       1       60       1       73  
Real Estate – Residential     —       —       2       177       —       —  
Real Estate – Home Equity     —       —       1       153       1       50  
Consumer     —       —       —       —       —       —  
Total TDRs     —     $ —       4     $ 390       2     $ 123