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)
 9 Months Ended
Sep. 30, 2020
Loans Held For Investment And Allowance For Credit Losses [Abstract]  
Schedule of composition of the loan portfolio

(Dollars in Thousands)

September 30, 2020

 

December 31, 2019

Commercial, Financial and Agricultural

$

402,997

 

$

255,365

Real Estate – Construction

 

125,804

 

 

115,018

Real Estate – Commercial Mortgage

 

656,064

 

 

625,556

Real Estate – Residential(1)

 

346,201

 

 

361,450

Real Estate – Home Equity

 

197,363

 

 

197,360

Consumer(2)

 

269,732

 

 

281,180

 

Loans HFI, Net of Unearned Income

$

1,998,161

 

$

1,835,929

(1)Includes loans in process with outstanding balances of $11.5 million and $8.3 million at September 30, 2020 and December 31, 2019, respectively.

(2)Includes overdraft balances of $1.3 million and $1.6 million at September 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

$

2,468

 

$

1,955

 

$

6,640

 

$

5,440

 

$

2,753

 

$

3,201

 

$

22,457

 

Provision for Credit Losses

 

(195)

 

 

161

 

 

616

 

 

(344)

 

 

196

 

 

831

 

 

1,265

 

Charge-Offs

 

(137)

 

 

-

 

 

(17)

 

 

(1)

 

 

(58)

 

 

(1,069)

 

 

(1,282)

 

Recoveries

 

74

 

 

-

 

 

30

 

 

35

 

 

41

 

 

517

 

 

697

 

Net Charge-Offs

 

(63)

 

 

-

 

 

13

 

 

34

 

 

(17)

 

 

(552)

 

 

(585)

Ending Balance

$

2,210

 

$

2,116

 

$

7,269

 

$

5,130

 

$

2,932

 

$

3,480

 

$

23,137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 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

 

544

 

 

1,444

 

 

2,132

 

 

745

 

 

337

 

 

2,668

 

 

7,870

 

Charge-Offs

 

(685)

 

 

-

 

 

(28)

 

 

(112)

 

 

(141)

 

 

(3,810)

 

 

(4,776)

 

Recoveries

 

188

 

 

-

 

 

291

 

 

126

 

 

138

 

 

2,126

 

 

2,869

 

Net Charge-Offs

 

(497)

 

 

-

 

 

263

 

 

14

 

 

(3)

 

 

(1,684)

 

 

(1,907)

Ending Balance

$

2,210

 

$

2,116

 

$

7,269

 

$

5,130

 

$

2,932

 

$

3,480

 

$

23,137

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

$

1,648

 

$

521

 

$

3,889

 

$

3,210

 

$

2,383

 

$

2,942

 

$

14,593

 

Provision for Credit Losses

 

236

 

 

81

 

 

(304)

 

 

3

 

 

71

 

 

689

 

 

776

 

Charge-Offs

 

(289)

 

 

(223)

 

 

(26)

 

 

(44)

 

 

(333)

 

 

(744)

 

 

(1,659)

 

Recoveries

 

86

 

 

-

 

 

142

 

 

46

 

 

58

 

 

277

 

 

609

 

Net Charge-Offs

 

(203)

 

 

(223)

 

 

116

 

 

2

 

 

(275)

 

 

(467)

 

 

(1,050)

Ending Balance

$

1,681

 

$

379

 

$

3,701

 

$

3,215

 

$

2,179

 

$

3,164

 

$

14,319

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

$

1,434

 

$

280

 

$

4,181

 

$

3,400

 

$

2,301

 

$

2,614

 

$

14,210

 

Provision for Credit Losses

 

648

 

 

322

 

 

(611)

 

 

(125)

 

 

158

 

 

1,797

 

 

2,189

 

Charge-Offs

 

(619)

 

 

(223)

 

 

(181)

 

 

(373)

 

 

(430)

 

 

(2,059)

 

 

(3,885)

 

Recoveries

 

218

 

 

-

 

 

312

 

 

313

 

 

150

 

 

812

 

 

1,805

 

Net Charge-Offs

 

(401)

 

 

(223)

 

 

131

 

 

(60)

 

 

(280)

 

 

(1,247)

 

 

(2,080)

Ending Balance

$

1,681

 

$

379

 

$

3,701

 

$

3,215

 

$

2,179

 

$

3,164

 

$

14,319
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

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial, Financial and Agricultural

$

163

 

$

87

 

$

-

 

$

250

 

$

402,417

 

$

330

 

$

402,997

 

Real Estate – Construction

 

-

 

 

-

 

 

-

 

 

-

 

 

125,521

 

 

283

 

 

125,804

 

Real Estate – Commercial Mortgage

 

76

 

 

109

 

 

-

 

 

185

 

 

654,514

 

 

1,365

 

 

656,064

 

Real Estate – Residential

 

650

 

 

126

 

 

-

 

 

776

 

 

342,610

 

 

2,815

 

 

346,201

 

Real Estate – Home Equity

 

176

 

 

20

 

 

-

 

 

196

 

 

196,575

 

 

592

 

 

197,363

 

Consumer

 

1,495

 

 

289

 

 

-

 

 

1,784

 

 

267,828

 

 

120

 

 

269,732

 

Total Loans HFI

$

2,560

 

$

631

 

$

-

 

$

3,191

 

$

1,989,465

 

$

5,505

 

$

1,998,161

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 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 Loans HFI

$

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

 

September 30, 2020

 

December 31, 2019

 

Nonaccrual

 

Nonaccrual

 

 

 

 

Nonaccrual

 

Nonaccrual

 

 

 

 

With

 

With No

 

90 + Days

 

With

 

With No

 

90 + Days

(Dollars in Thousands)

ACL

 

ACL

 

Still Accruing

 

ACL

 

ACL

 

Still Accruing

Commercial, Financial and Agricultural

$

330

 

$

-

 

$

-

 

$

446

 

$

-

 

$

-

Real Estate – Construction

 

-

 

 

283

 

 

-

 

 

-

 

 

-

 

 

-

Real Estate – Commercial Mortgage

 

290

 

 

1,075

 

 

-

 

 

476

 

 

958

 

 

-

Real Estate – Residential

 

1,301

 

 

1,514

 

 

-

 

 

1,165

 

 

227

 

 

-

Real Estate – Home Equity

 

592

 

 

-

 

 

-

 

 

797

 

 

-

 

 

-

Consumer

 

120

 

 

-

 

 

-

 

 

403

 

 

-

 

 

-

Total Nonaccrual Loans

$

2,633

 

$

2,872

 

$

-

 

$

3,287

 

$

1,185

 

$

-
Amortized cost basis of collateral-dependent loans

 

September 30, 2020

 

Real Estate

 

Non Real Estate

(Dollars in Thousands)

Secured

 

Secured

Commercial, Financial and Agricultural

$

-

 

$

-

Real Estate – Construction

 

283

 

 

-

Real Estate – Commercial Mortgage

 

3,954

 

 

-

Real Estate – Residential

 

3,032

 

 

-

Real Estate – Home Equity

 

298

 

 

-

Consumer

 

-

 

 

33

Total

$

7,567

 

$

33
Summary of gross loans held for investment by years of origination

The following table summarizes gross loans held for investment at September 30, 2020 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

Commercial, Financial, Agriculture:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

230,847

 

$

49,683

 

$

40,767

 

$

17,780

 

$

15,419

 

$

12,374

 

$

35,191

 

$

402,061

Special Mention

 

1

 

 

4

 

 

33

 

 

-

 

 

-

 

 

59

 

 

-

 

 

97

Substandard

 

-

 

 

212

 

 

410

 

 

192

 

 

12

 

 

9

 

 

4

 

 

839

Total

$

230,848

 

$

49,899

 

$

41,210

 

$

17,972

 

$

15,431

 

$

12,442

 

$

35,195

 

$

402,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Construction:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

44,592

 

$

64,158

 

$

9,019

 

$

1,848

 

$

-

 

$

-

 

$

5,213

 

$

124,830

Substandard

 

-

 

 

974

 

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

974

Total

$

44,592

 

$

65,132

 

$

9,019

 

$

1,848

 

$

-

 

$

-

 

$

5,213

 

$

125,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Commercial Mortgage:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

115,966

 

$

113,732

 

$

145,628

 

$

91,828

 

$

49,478

 

$

100,856

 

$

19,650

 

$

637,138

Special Mention

 

5,849

 

 

123

 

 

-

 

 

215

 

 

390

 

 

6,126

 

 

-

 

 

12,703

Substandard

 

206

 

 

137

 

 

87

 

 

2,738

 

 

30

 

 

2,531

 

 

494

 

 

6,223

Total

$

122,021

 

$

113,992

 

$

145,715

 

$

94,781

 

$

49,898

 

$

109,513

 

$

20,144

 

$

656,064

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Residential:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

$

71,096

 

$

75,094

 

$

49,849

 

$

42,965

 

$

20,807

 

$

71,879

 

$

6,685

 

$

338,375

Special Mention

 

142

 

 

25

 

 

127

 

 

177

 

 

96

 

 

334

 

 

-

 

 

901

Substandard

 

680

 

 

1,154

 

 

1,203

 

 

890

 

 

848

 

 

2,150

 

 

-

 

 

6,925

Total

$

71,918

 

$

76,273

 

$

51,179

 

$

44,032

 

$

21,751

 

$

74,363

 

$

6,685

 

$

346,201

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real Estate - Home Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

1,416

 

$

337

 

$

246

 

$

852

 

$

190

 

$

2,486

 

$

191,244

 

$

196,771

Nonperforming

 

-

 

 

-

 

 

-

 

 

-

 

 

-

 

 

17

 

 

575

 

 

592

Total

$

1,416

 

$

337

 

$

246

 

$

852

 

$

190

 

$

2,503

 

$

191,819

 

$

197,363

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Performing

$

78,369

 

$

79,432

 

$

59,009

 

$

29,446

 

$

13,469

 

$

4,078

 

$

5,809

 

$

269,612

Nonperforming

 

4

 

 

-

 

 

44

 

 

-

 

 

33

 

 

39

 

 

-

 

 

120

Total

$

78,373

 

$

79,432

 

$

59,053

 

$

29,446

 

$

13,502

 

$

4,117

 

$

5,809

 

$

269,732