Quarterly report pursuant to Section 13 or 15(d)

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

v3.20.2
LOANS HELD FOR INVESTMENT AND ALLOWANCE FOR CREDIT LOSSES (Tables)
 6 Months Ended
Jun. 30, 2020
Loans Held For Investment And Allowance For Credit Losses [Abstract]  
Schedule of composition of the loan portfolio

(Dollars in Thousands)

June 30, 2020

 

December 31, 2019

Commercial, Financial and Agricultural

$

421,270

 

$

255,365

Real Estate – Construction

 

117,794

 

 

115,018

Real Estate – Commercial Mortgage

 

662,434

 

 

625,556

Real Estate – Residential(1)

 

358,714

 

 

361,450

Real Estate – Home Equity

 

194,479

 

 

197,360

Consumer(2)

 

267,486

 

 

281,180

 

Loans, Net of Unearned Income

$

2,022,177

 

$

1,835,929

(1)

Includes loans in process with outstanding balances of $5.7 million and $8.3 million at June 30, 2020 and December 31, 2019, respectively.

(2)Includes overdraft balances of $1.1 million and $1.6 million at June 30, 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

$

2,247

 

$

1,239

 

$

5,828

 

$

6,005

 

$

2,701

 

$

3,063

 

$

21,083

 

Provision for Credit Losses

 

333

 

 

716

 

 

742

 

 

(615)

 

 

40

 

 

399

 

 

1,615

 

Charge-Offs

 

(186)

 

 

-

 

 

-

 

 

(1)

 

 

(52)

 

 

(1,175)

 

 

(1,414)

 

Recoveries

 

74

 

 

-

 

 

70

 

 

51

 

 

64

 

 

914

 

 

1,173

 

Net Charge-Offs

 

(112)

 

 

-

 

 

70

 

 

50

 

 

12

 

 

(261)

 

 

(241)

Ending Balance

$

2,468

 

$

1,955

 

$

6,640

 

$

5,440

 

$

2,753

 

$

3,201

 

$

22,457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 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

 

739

 

 

1,283

 

 

1,516

 

 

1,089

 

 

141

 

 

1,837

 

 

6,605

 

Charge-Offs

 

(548)

 

 

-

 

 

(11)

 

 

(111)

 

 

(83)

 

 

(2,741)

 

 

(3,494)

 

Recoveries

 

114

 

 

-

 

 

261

 

 

91

 

 

97

 

 

1,609

 

 

2,172

 

Net Charge-Offs

 

(434)

 

 

-

 

 

250

 

 

(20)

 

 

14

 

 

(1,132)

 

 

(1,322)

Ending Balance

$

2,468

 

$

1,955

 

$

6,640

 

$

5,440

 

$

2,753

 

$

3,201

 

$

22,457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

$

1,630

 

$

381

 

$

3,993

 

$

3,186

 

$

2,261

 

$

2,669

 

$

14,120

 

Provision for Credit Losses

 

195

 

 

140

 

 

(204)

 

 

(134)

 

 

107

 

 

542

 

 

646

 

Charge-Offs

 

(235)

 

 

-

 

 

-

 

 

(65)

 

 

(45)

 

 

(520)

 

 

(865)

 

Recoveries

 

58

 

 

-

 

 

100

 

 

223

 

 

60

 

 

251

 

 

692

 

Net Charge-Offs

 

(177)

 

 

-

 

 

100

 

 

158

 

 

15

 

 

(269)

 

 

(173)

Ending Balance

$

1,648

 

$

521

 

$

3,889

 

$

3,210

 

$

2,383

 

$

2,942

 

$

14,593

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

$

1,434

 

$

280

 

$

4,181

 

$

3,400

 

$

2,301

 

$

2,614

 

$

14,210

 

Provision for Credit Losses

 

412

 

 

241

 

 

(307)

 

 

(128)

 

 

87

 

 

1,108

 

 

1,413

 

Charge-Offs

 

(330)

 

 

-

 

 

(155)

 

 

(329)

 

 

(97)

 

 

(1,315)

 

 

(2,226)

 

Recoveries

 

132

 

 

-

 

 

170

 

 

267

 

 

92

 

 

535

 

 

1,196

 

Net Charge-Offs

 

(198)

 

 

-

 

 

15

 

 

(62)

 

 

(5)

 

 

(780)

 

 

(1,030)

Ending Balance

$

1,648

 

$

521

 

$

3,889

 

$

3,210

 

$

2,383

 

$

2,942

 

$

14,593
Schedule of recorded investment in nonaccrual loans and loans past due over 90 days and still on accrual by class of loans

 

June 30, 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

$

548

 

$

-

 

$

-

 

$

446

 

$

-

 

$

-

Real Estate – Construction

 

146

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

Real Estate – Commercial Mortgage

 

2,580

 

 

1,789

 

 

-

 

 

1,434

 

 

958

 

 

-

Real Estate – Residential

 

2,400

 

 

1,516

 

 

-

 

 

1,392

 

 

227

 

 

-

Real Estate – Home Equity

 

1,010

 

 

-

 

 

-

 

 

797

 

 

-

 

 

-

Consumer

 

282

 

 

-

 

 

-

 

 

403

 

 

-

 

 

-

Total Nonaccrual Loans

$

6,966

 

$

3,305

 

$

-

 

$

4,472

 

$

1,185

 

$

-
Amortized cost basis of collateral-dependent loans

 

June 30, 2020

 

Real Estate

 

Non Real Estate

(Dollars in Thousands)

Secured

 

Secured

Commercial, Financial and Agricultural

$

106

 

$

-

Real Estate - Commercial Mortgage

 

4,939

 

 

-

Real Estate - Residential

 

2,358

 

 

-

Real Estate - Home Equity

 

429

 

 

-

Consumer

 

-

 

 

-

Total

$

7,832

 

$

-
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)

June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, Financial and Agricultural

$

165

 

$

220

 

$

-

 

$

385

 

$

420,337

 

$

421,270

Real Estate – Construction

 

-

 

 

130

 

 

-

 

 

130

 

 

117,518

 

 

117,794

Real Estate – Commercial Mortgage

 

83

 

 

-

 

 

-

 

 

83

 

 

659,771

 

 

662,434

Real Estate – Residential

 

143

 

 

583

 

 

-

 

 

726

 

 

355,588

 

 

358,714

Real Estate – Home Equity

 

122

 

 

26

 

 

-

 

 

148

 

 

193,321

 

 

194,479

Consumer

 

1,110

 

 

366

 

 

-

 

 

1,476

 

 

265,728

 

 

267,486

Total Loans

$

1,623

 

$

1,325

 

$

-

 

$

2,948

 

$

2,012,263

 

$

2,022,177

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 $7.0.0 million and $4.5 million at June 30, 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 June 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, Financial, Agriculture:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

214,844

 

$

54,639

 

$

49,571

 

$

19,873

 

$

16,582

 

$

14,016

 

$

50,597

 

$

420,122

Special Mention

 

-

 

 

4

 

 

61

 

 

9

 

 

-

 

 

64

 

 

-

 

 

138

Substandard

 

-

 

 

11

 

 

553

 

 

312

 

 

39

 

 

92

 

 

3

 

 

1,010

Total

$

214,844

 

$

54,654

 

$

50,185

 

$

20,194

 

$

16,621

 

$

14,172

 

$

50,600

 

$

421,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

27,315

 

$

73,360

 

$

11,162

 

$

2,148

 

$

-

 

$

-

 

$

3,533

 

$

117,518

Substandard

 

-

 

 

276

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

276

Total

$

27,315

 

$

73,636

 

$

11,162

 

$

2,148

 

$

-

 

$

-

 

$

3,533

 

$

117,794

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Commercial Mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

89,447

 

$

118,464

 

$

148,746

 

$

99,444

 

$

53,748

 

$

106,278

 

$

21,014

 

$

637,141

Special Mention

 

6,116

 

 

123

 

 

5,141

 

 

216

 

 

-

 

 

6,494

 

 

-

 

 

18,090

Substandard

 

154

 

 

279

 

 

295

 

 

2,853

 

 

31

 

 

3,097

 

 

494

 

 

7,203

Total

$

95,717

 

$

118,866

 

$

154,182

 

$

102,513

 

$

53,779

 

$

115,869

 

$

21,508

 

$

662,434

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

53,539

 

$

82,903

 

$

57,856

 

$

49,232

 

$

23,327

 

$

77,875

 

$

6,800

 

$

351,532

Special Mention

 

143

 

 

26

 

 

128

 

 

178

 

 

96

 

 

345

 

 

-

 

 

916

Substandard

 

-

 

 

1,126

 

 

1,118

 

 

563

 

 

1,005

 

 

2,369

 

 

85

 

 

6,266

Total

$

53,682

 

$

84,055

 

$

59,102

 

$

49,973

 

$

24,428

 

$

80,589

 

$

6,885

 

$

358,714

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Home Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

1,558

 

$

378

 

$

252

 

$

780

 

$

200

 

$

2,780

 

$

187,703

 

$

193,651

Nonperforming

 

-

 

 

20

 

 

25

 

 

81

 

 

-

 

 

24

 

 

678

 

 

828

Total

$

1,558

 

$

398

 

$

277

 

$

861

 

$

200

 

$

2,804

 

$

188,381

 

$

194,479

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

46,790

 

$

89,192

 

$

67,729

 

$

35,130

 

$

16,947

 

$

6,200

 

$

5,215

 

$

267,203

Nonperforming

 

-

 

 

105

 

 

138

 

 

-

 

 

20

 

 

20

 

 

-

 

 

283

Total

$

46,790

 

$

89,297

 

$

67,867

 

$

35,130

 

$

16,967

 

$

6,220

 

$

5,215

 

$

267,486