Quarterly report pursuant to Section 13 or 15(d)

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

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LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 3 Months Ended
Mar. 31, 2020
Loans Held For Investment And Allowance For Credit Losses [Abstract]  
Schedule of composition of the loan portfolio
(Dollars in Thousands) March 31, 2020   December 31, 2019
Commercial, Financial and Agricultural $ 249,020   $ 255,365
Real Estate – Construction   122,595     115,018
Real Estate – Commercial Mortgage   656,084     625,556
Real Estate – Residential(1)   360,730     361,450
Real Estate – Home Equity   196,443     197,360
Consumer(2)   277,515     281,180
Loans, Net of Unearned Income $ 1,862,387   $ 1,835,929

(1) Includes loans in process with outstanding balances of $7.3 million and $8.3 million at March 31, 2020 and December 31, 2019, respectively.

(2) Includes overdraft balances of $1.5 million and $1.6 million at March 31, 2020 and December 31, 2019, respectively.

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
Three Months Ended
March 31, 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 406 567 774 1,704 101 1,438 4,990
Charge-Offs (362) - (11) (110) (31) (1,566) (2,080)
Recoveries 40 - 191 40 33 695 999
Net Charge-Offs (322) - 180 (70) 2 (871) (1,081)
Ending Balance $ 2,247 $ 1,239 $ 5,828 $ 6,005 $ 2,701 $ 3,063 $ 21,083
Three Months Ended
March 31, 2019
Beginning Balance $ 1,434 $ 280 $ 4,181 $ 3,400 $ 2,301 $ 2,614 $ 14,210
Provision for Credit Losses 217 101 (103) 6 (20) 566 767
Charge-Offs (95) - (155) (264) (52) (795) (1,361)
Recoveries 74 - 70 44 32 284 504
Net Charge-Offs (21) - (85) (220) (20) (511) (857)
Ending Balance $ 1,630 $ 381 $ 3,993 $ 3,186 $ 2,261 $ 2,669 $ 14,120
Schedule of recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans
March 31, 2020 December 31, 2019
Nonaccrual Nonaccrual
Total With No 90 + Days Total With No 90 + Days
(Dollars in Thousands) Nonaccrual   ACL   Still Accruing   Nonaccrual   ACL Still Accruing
Commercial, Financial and Agricultural $ 358 $ - $ - $ 446 $ - $ -
Real Estate – Commercial Mortgage   1,332   676 - 1,434 958 -
Real Estate – Residential   2,214   1,656 - 1,392 227 -
Real Estate – Home Equity   692   - - 797 - -
Consumer   278   - - 403 - -
Total Nonaccrual Loans $ 4,874 $ 2,332 $ - $ 4,472 $ 1,185 $ -
Amortized cost basis of collateral-dependent loans
March 31, 2020
Real Estate Non Real Estate
(Dollars in Thousands) Secured Secured
Commercial, Financial and Agricultural $ 46 $ -
Real Estate - Commercial Mortgage 4,481 -
Real Estate - Residential 2,373 -
Real Estate - Home Equity   489   -
Consumer   -   -
Total $ 7,389 $ -
Schedule of aging of the recorded investment in accruing past due loans by class of loans
30-59 60-89 90 + Total Total Total
(Dollars in Thousands) DPD DPD DPD Past Due Current Loans(1)
March 31, 2020
Commercial, Financial and Agricultural $ 495 $ 454 $ - $ 949 $ 247,713 $ 249,020
Real Estate – Construction   530 - - 530 122,065 122,595
Real Estate – Commercial Mortgage   233 631 - 864 653,888 656,084
Real Estate – Residential   562 - - 562 357,954 360,730
Real Estate – Home Equity   459 - - 459 195,292 196,443
Consumer   1,557 156 - 1,713 275,524 277,515
Total Loans $ 3,836 $ 1,241 $ - $ 5,077 $ 1,852,436 $ 1,862,387
December 31, 2019
Commercial, Financial and Agricultural $ 489 $ 191 $ - $ 680 $ 254,239 $ 255,365
Real Estate – Construction   300 10 - 310 114,708 115,018
Real Estate – Commercial Mortgage   148 84 - 232 623,890 625,556
Real Estate – Residential   629 196 - 825 359,233 361,450
Real Estate – Home Equity   155 20 - 175 196,388 197,360
Consumer   2,000 649 - 2,649 278,128 281,180
Total Loans $ 3,721 $ 1,150 $ - $ 4,871 $ 1,826,586 $ 1,835,929
(1) Total Loans include nonaccrual loans of $4.9 million and $4.5 million at March 31, 2020 and December 31, 2019, respectively.
Summary of gross loans held for investment by years of origination
The following table summarizes gross loans held for investment by years of origination and internally assigned credit risk ratings (refer to Credit Risk Management section for detail on risk rating system).
Term Loans by Origination Year Revolving
(Dollars in Thousands) 2020 2019 2018 2017 2016 Prior Loans Total
As of March 31, 2020
Commercial, Financial, Agriculture:
Pass $ 15,540 $ 59,938 $ 56,515 $ 22,991 $ 19,601 $ 16,357 $ 57,074 $ 248,016
Special Mention - 4 61 17 - 65 - 147
Substandard   -   -   456   310   59   27   5   857
Total $ 15,540 $ 59,942 $ 57,032 $ 23,318 $ 19,660 $ 16,449 $ 57,079 $ 249,020
Real Estate - Construction:
Pass $ 10,866 $ 73,609 $ 24,500 $ 9,548 $ - $ 104 $ 3,968 $ 122,595
Total $ 10,866 $ 73,609 $ 24,500 $ 9,548 $ - $ 104 $ 3,968 $ 122,595
Real Estate - Commercial Mortgage:
Pass $ 48,981 $ 126,785 $ 145,264 $ 107,176 $ 54,565 $ 121,379 $ 25,938 $ 630,088
Special Mention 6,782 199 5,139 216 - 6,819 - 19,155
Substandard   155   434   305   2,384   32   3,037   494   6,841
Total $ 55,918 $ 127,418 $ 150,708 $ 109,776 $ 54,597 $ 131,235 $ 26,432 $ 656,084
Real Estate - Residential:
Pass $ 24,620 $ 91,383 $ 67,070 $ 52,706 $ 25,740 $ 83,396 $ 8,215 $ 353,130
Special Mention 143 27 128 180 96 350 - 924
Substandard   -   1,134   1,123   566   727   3,126   -   6,676
Total $ 24,763 $ 92,544 $ 68,321 $ 53,452 $ 26,563 $ 86,872 $ 8,215 $ 360,730

Real Estate - Home Equity:
Performing $ 72 $ 405 $ 278 $ 867 $ 206 $ 3,001 $ 190,922 $ 195,751
Nonperforming   -   -   25   -   -   49   618   692
Total $ 72 $ 405 $ 303 $ 867 $ 206 $ 3,050 $ 191,540 $ 196,443
Consumer:
Performing $ 26,670 $ 98,981 $ 76,080 $ 40,469 $ 20,286 $ 9,047 $ 5,704 $ 277,237
Nonperforming - 59 23 103 54 28 11 278
Total $ 26,670 $ 99,040 $ 76,103 $ 40,572 $ 20,340 $ 9,075 $ 5,715 $ 277,515