Annual report pursuant to Section 13 and 15(d)

LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Tables)

v3.20.4
LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 12 Months Ended
Dec. 31, 2020
Loans, net [Abstract]  
Schedule of composition of the loan portfolio
(Dollars in Thousands)
2020
2019
Commercial, Financial and Agricultural
$
393,930
 
$
255,365
Real Estate – Construction
 
135,831
 
 
115,018
Real Estate – Commercial Mortgage
 
648,393
 
 
625,556
Real Estate – Residential
(1)
 
352,543
 
 
361,450
Real Estate – Home Equity
 
205,479
 
 
197,360
Consumer
(2)
 
270,250
 
 
281,180
Loans Held for Investment, Net of Unearned Income
$
2,006,426
 
$
1,835,929
(1)
 
Includes loans in process with outstanding
 
balances of $
(2)
 
Includes overdraft balances of $
0.7
 
million and $
1.6
 
million for December 31, 2020 and 2019, respectively.
 
 
Net deferred fees, which include premiums on purchased
 
loans, included in loans were $
0.1
 
million at December 31, 2020 and net
deferred costs were $
1.8
 
million at December 31, 2019.
 
Net deferred fees at December 31, 2020 included $
3.2
 
million in net fees
for SBA PPP loans.
 
Accrued interest receivable on loans which is excluded
 
from amortized cost totaled $
6.9
 
million at December 31, 2020 and $
5.5
million at December 31, 2019, and is reported separately
 
in Other Assets.
 
 
The Company has pledged a blanket floating lien on all 1-4
 
family residential mortgage loans, commercial real estate mortgage
loans, and home equity loans to support available borrowing
 
capacity at the FHLB of Atlanta and has pledged a blanket
 
floating
lien on all consumer loans, commercial loans, and construction
 
loans to support available borrowing capacity at the Federal
Reserve Bank of Atlanta.
 
 
Loan Purchases
.
 
The Company will periodically purchase newly originated 1-4
 
family real estate secured adjustable rate loans
from CCHL, a related party effective on
 
March 1, 2020 (see Note 1 – Significant Accounting Policies).
 
Loan purchases totaled
$
48.4
 
million and $
25.2
 
million for the years ended December 31, 2020 and December
 
31, 2019, respectively,
 
and were not credit
impaired.
Schedule of activity in the allowance for loan losses by portfolio class
`
Commercial
,
Real Estate
Financial,
 
Real Estate
Commercial
 
Real Estate
Real Estate
(Dollars in Thousands)
Agricultural
Construction
Mortgage
Residential
Home Equity
Consumer
Total
2020
Beginning Balance
$
1,675
$
370
$
3,416
$
3,128
$
2,224
$
3,092
$
13,905
Impact of Adopting ASC
326
488
302
1,458
1,243
374
(596)
3,269
Provision for Credit Losses
578
1,757
1,865
940
486
3,409
9,035
Charge-Offs
(789)
-
(28)
(150)
(151)
(5,042)
(6,160)
Recoveries
 
252
50
318
279
178
2,690
3,767
Net Charge-Offs
(537)
50
290
129
27
(2,352)
(2,393)
Ending Balance
$
2,204
$
2,479
$
7,029
$
5,440
$
3,111
$
3,553
$
23,816
2019
Beginning Balance
$
1,434
$
280
$
4,181
$
3,400
$
2,301
$
2,614
$
14,210
Provision for Credit Losses
664
371
(1,129)
(301)
178
2,244
2,027
Charge-Offs
(768)
(281)
(214)
(400)
(430)
(2,878)
(4,971)
Recoveries
345
-
578
429
175
1,112
2,639
Net Charge-Offs
(423)
(281)
364
29
(255)
(1,766)
(2,332)
Ending Balance
$
1,675
$
370
$
3,416
$
3,128
$
2,224
$
3,092
$
13,905
2018
Beginning Balance
$
1,191
$
122
$
4,346
$
3,206
$
2,506
$
1,936
$
13,307
Provision for Credit Losses
428
139
(223)
331
137
2,109
2,921
Charge-Offs
(644)
(7)
(315)
(780)
(533)
(2,395)
(4,674)
Recoveries
459
26
373
643
191
964
2,656
Net Charge-Offs
(185)
19
58
(137)
(342)
(1,431)
(2,018)
Ending Balance
$
1,434
$
280
$
4,181
$
3,400
$
2,301
$
2,614
$
14,210
Schedule of aging of the recorded investment in accruing past due loans by class of loans
30-59
 
60-89
 
90 +
 
Total
Total
Nonaccrual
Total
(Dollars in Thousands)
DPD
DPD
DPD
Past Due
Current
Loans
Loans
2020
Commercial, Financial and Agricultural
$
194
$
124
$
-
$
318
$
393,451
$
161
$
393,930
Real Estate – Construction
 
-
717
-
717
134,935
179
135,831
Real Estate – Commercial Mortgage
 
293
-
-
293
646,688
1,412
648,393
Real Estate – Residential
 
375
530
-
905
348,508
3,130
352,543
Real Estate – Home Equity
 
325
138
-
463
204,321
695
205,479
Consumer
 
1,556
342
-
1,898
268,058
294
270,250
Total Past Due Loans
$
2,743
$
1,851
$
-
$
4,594
$
1,995,961
$
5,871
$
2,006,426
2019
Commercial, Financial and Agricultural
$
489
$
191
$
-
$
680
$
254,239
$
446
$
255,365
Real Estate – Construction
 
300
10
-
310
114,708
-
115,018
Real Estate – Commercial Mortgage
 
148
84
-
232
623,890
1,434
625,556
Real Estate – Residential
 
629
196
-
825
359,233
1,392
361,450
Real Estate – Home Equity
 
155
20
-
175
196,388
797
197,360
Consumer
 
2,000
649
-
2,649
278,128
403
281,180
Total Past Due Loans
$
3,721
$
1,150
$
-
$
4,871
$
1,826,586
$
4,472
$
1,835,929
Schedule of recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans
2020
 
2019
Nonaccrual
Nonaccrual
90 + Days
Nonaccrual
Nonaccrual
90 + Days
With No
With
Still
With No
With
Still
(Dollars in Thousands)
ACL
 
ACL
 
Accruing
ACL
 
ACL
 
Accruing
Commercial, Financial and Agricultural
$
-
$
161
$
-
$
-
$
446
$
-
Real Estate – Construction
 
-
179
-
-
-
-
Real Estate – Commercial Mortgage
 
1,075
337
-
958
476
-
Real Estate – Residential
 
1,513
1,617
-
227
1,165
-
Real Estate – Home Equity
 
-
695
-
-
797
-
Consumer
 
-
294
-
-
403
-
Total Nonaccrual
 
Loans
$
2,588
$
3,283
$
-
$
1,185
$
3,287
$
-
Amortized cost basis of collateral-dependent loans
2020
Real Estate
Non Real Estate
(Dollars in Thousands)
Secured
Secured
Real Estate – Commercial Mortgage
3,900
-
Real Estate – Residential
3,022
-
Real Estate – Home Equity
219
-
Consumer
-
29
Total
$
7,141
$
29
Summary of gross loans held for investment by years of origination
Term Loans by Origination Year
Revolving
(Dollars in Thousands)
2020
2019
2018
2017
2016
Prior
Loans
Total
Commercial, Financial,
Agricultural:
Pass
$
231,805
$
45,651
$
35,866
$
15,212
$
13,321
$
10,051
$
41,214
$
393,120
Special Mention
-
4
28
-
-
58
-
90
Substandard
 
12
 
195
 
289
 
145
 
50
 
20
 
9
 
720
Total
$
231,817
$
45,850
$
36,183
$
15,357
$
13,371
$
10,129
$
41,223
$
393,930
Real Estate -
Construction:
Pass
$
71,173
$
51,634
$
7,369
$
1,592
$
-
$
-
$
2,635
$
134,403
Substandard
 
-
 
1,428
 
-
 
-
 
-
 
-
 
-
 
1,428
Total
$
71,173
$
53,062
$
7,369
$
1,592
$
-
$
-
$
2,635
$
135,831
Real Estate - Commercial
Mortgage:
Pass
$
156,011
$
93,424
$
131,180
$
78,474
$
45,507
$
88,397
$
19,933
$
612,926
Special Mention
4,165
8,932
9,249
244
379
6,172
397
29,538
Substandard
 
570
 
130
 
137
 
2,687
 
28
 
1,883
 
494
 
5,929
Total
$
160,746
$
102,486
$
140,566
$
81,405
$
45,914
$
96,452
$
20,824
$
648,393
Real Estate - Residential:
Pass
$
100,704
$
66,893
$
42,884
$
40,205
$
19,231
$
66,119
$
6,706
$
342,742
Special Mention
141
24
126
175
236
446
-
1,148
Substandard
 
1,257
 
1,800
 
1,377
 
837
 
890
 
2,492
 
-
 
8,653
Total
 
$
102,102
$
68,717
$
44,387
$
41,217
$
20,357
$
69,057
$
6,706
$
352,543
Real Estate - Home
Equity:
Performing
$
1,385
$
313
$
244
$
830
$
183
$
2,238
$
199,591
$
204,784
Nonperforming
-
-
-
-
-
-
695
695
Total
 
$
1,385
 
313
 
244
 
830
 
183
 
2,238
 
200,286
 
205,479
Consumer:
Performing
$
105,551
$
69,941
$
51,513
$
24,613
$
10,639
$
2,472
$
5,227
$
269,956
Nonperforming
61
109
49
-
8
67
-
294
Total
 
$
105,612
 
70,050
 
51,562
 
24,613
 
10,647
 
2,539
 
5,227
 
270,250