Quarterly report pursuant to Section 13 or 15(d)

LOANS, NET (Tables)

v2.4.0.8
LOANS, NET (Tables)
 6 Months Ended
Jun. 30, 2014
Receivables [Abstract]  
Loan Portfolio Composition

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

 

(Dollars in Thousands)   June 30,
2014		   December 31,
2013
Commercial, Financial and Agricultural   $ 134,833     $ 126,607  
Real Estate – Construction     34,244       31,012  
Real Estate – Commercial Mortgage     518,580       533,871  
Real Estate – Residential(1)     305,829       309,692  
Real Estate – Home Equity     228,232       227,922  
Consumer     183,873       159,500  
Loans, Net of Unearned Income   $ 1,405,591     $ 1,388,604  

 

  (1) Includes loans in process with outstanding balances of $7.9 million and $6.8 million at June 30, 2014 and December 31, 2013, respectively.
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.

 

    June 30, 2014   December 31, 2013
(Dollars in Thousands)   Nonaccrual   90 + Days   Nonaccrual   90 + Days
Commercial, Financial and Agricultural   $ 187       —       $ 188       —    
Real Estate – Construction     846       —         426       —    
Real Estate – Commercial Mortgage     14,089       —         25,227       —    
Real Estate – Residential     7,267       —         6,440       —    
Real Estate – Home Equity     2,784       —         4,084       —    
Consumer     497       —         599       —    
Total Nonaccrual Loans   $ 25,670       —       $ 36,964       —    
Aging of the recorded investment in 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.

 

(Dollars in Thousands)   30-59
DPD 		    60-89
DPD 		    90 +
DPD 		    Total
Past Due 		    Total
Current 		    Total
Loans 		 
June 30, 2014                                                
Commercial, Financial and Agricultural   $ 62     $ 217     $ —       $ 279     $ 134,367     $ 134,833  
Real Estate – Construction     —         —         —         —         33,398       34,244  
Real Estate – Commercial Mortgage     1,180       55       —         1,235       503,256       518,580  
Real Estate – Residential     1,363       668       —         2,031       296,531       305,829  
Real Estate – Home Equity     689       119       —         808       224,640       228,232  
Consumer     555       184       —         739       182,637       183,873  
Total Past Due Loans   $ 3,849     $ 1,243     $ —       $ 5,092     $ 1,374,829     $ 1,405,591  
                                                 
December 31, 2013                                                
Commercial, Financial and Agricultural   $ 258     $ 100     $ —       $ 358     $ 126,062     $ 126,607  
Real Estate – Construction     —         —         —         —         30,587       31,012  
Real Estate – Commercial Mortgage     1,548       672       —         2,220       506,424       533,871  
Real Estate – Residential     1,647       1,090       —         2,737       300,514       309,692  
Real Estate – Home Equity     848       212       —         1,060       222,778       227,922  
Consumer     1,127       244       —         1,371       157,529       159,500  
Total Past Due Loans   $ 5,428     $ 2,318     $ —       $ 7,746     $ 1,343,894     $ 1,388,604  
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. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.

 

(Dollars in Thousands)   Commercial, Financial, Agricultural      Real Estate Construction     Real Estate Commercial Mortgage     Real Estate Residential     Real Estate Home Equity     Consumer     Unallocated     Total  
Three Months Ended
June 30, 2014		                                                                
Beginning Balance   $ 633     $ 1,842     $ 7,080     $ 8,842     $ 2,853     $ 860     $ —       $ 22,110  
Provision for Loan Losses     114       (576 )     (56 )     15       523       479       —         499  
Charge-Offs     (86 )     —         (1,029 )     (695 )     (375 )     (421 )     —         (2,606 )
Recoveries     45       1       152       52       65       225       —         540  
Net Charge-Offs     (41 )     1       (877 )     (643 )     (310 )     (196 )     —         (2,066 )
Ending Balance   $ 706     $ 1,267     $ 6,147     $ 8,214     $ 3,066     $ 1,143     $ —       $ 20,543  
                                                                 
Six Months Ended
June 30, 2014		                                                                
Beginning Balance   $ 699     $ 1,580     $ 7,710     $ 9,073     $ 3,051     $ 982     $ —       $ 23,095  
Provision for Loan Losses     (16 )     (318 )     (119 )     120       717       474       —         858  
Charge-Offs     (97 )     —         (1,623 )     (1,426 )     (778 )     (826 )     —         (4,750 )
Recoveries     120       5       179       447       76       513       —         1,340  
Net Charge-Offs     23       5       (1,444 )     (979 )     (702 )     (313 )     —         (3,410 )
Ending Balance   $ 706     $ 1,267     $ 6,147     $ 8,214     $ 3,066     $ 1,143     $ —       $ 20,543  
                                                                 
Three Months Ended
June 30, 2013		                                                                
Beginning Balance   $ 857     $ 2,387     $ 10,998     $ 8,266     $ 3,077     $ 1,218     $ 1,000     $ 27,803  
Provision for Loan Losses     119       (34 )     (141 )     1,649       (100 )     (69 )     26       1,450  
Charge-Offs     (119 )     (110 )     (1,050 )     (1,053 )     (322 )     (351 )     —         (3,005 )
Recoveries     38       —         144       396       224       244       —         1,046  
Net Charge-Offs     (81 )     (110 )     (906 )     (657 )     (98 )     (107 )     —         (1,959 )
Ending Balance   $ 895     $ 2,243     $ 9,951     $ 9,258     $ 2,879     $ 1,042     $ 1,026     $ 27,294  
                                                                 
Six Months Ended
June 30, 2013		                                                                
Beginning Balance   $ 1,253     $ 2,856     $ 11,081     $ 8,678     $ 2,945     $ 1,327     $ 1,027     $ 29,167  
Provision for Loan Losses     (174 )     107       781       1,824       127       (144 )     (1 )     2,520  
Charge-Offs     (273 )     (720 )     (2,093 )     (1,736 )     (435 )     (647 )     —         (5,904 )
Recoveries     89       —         182       492       242       506       —         1,511  
Net Charge-Offs     (184 )     (720 )     (1,911 )     (1,244 )     (193 )     (141 )     —         (4,393 )
Ending Balance   $ 895     $ 2,243     $ 9,951     $ 9,258     $ 2,879     $ 1,042     $ 1,026     $ 27,294  
Allowance for loan losses by portfolio class disaggregated on the basis

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

 

(Dollars in Thousands)   Commercial, Financial, Agricultural   Real Estate Construction   Real Estate Commercial Mortgage   Real Estate Residential   Real Estate Home Equity   Consumer   Unallocated   Total
June 30, 2014                                                                
Period-end amount
Allocated to:		                                                                
Loans Individually
Evaluated for Impairment		   $ 185     $ 63     $ 3,565     $ 2,563     $ 305     $ 20     $ —       $ 6,701  
Loans Collectively
Evaluated for Impairment		     521       1,204       2,582       5,651       2,761       1,123       —         13,842  
Ending Balance   $ 706     $ 1,267     $ 6,147     $ 8,214     $ 3,066     $ 1,143     $ —       $ 20,543  
                                                                 
December 31, 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  
                                                                 
June 30, 2013                                                                
Period-end amount
Allocated to:		                                                                
Loans Individually
Evaluated for Impairment		   $ 238     $ 160     $ 6,022     $ 2,542     $ 524     $ 60     $ —       $ 9,546  
Loans Collectively
Evaluated for Impairment		     657       2,083       3,929       6,716       2,355       982       1,026       17,748  
Ending Balance   $ 895     $ 2,243     $ 9,951     $ 9,258     $ 2,879     $ 1,042     $ 1,026     $ 27,294  
Recorded investment in loans related to each balance in the allowance for loan losses

The Company’s recorded investment in loans 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:

 

(Dollars in Thousands)   Commercial, Financial, Agricultural   Real Estate Construction   Real Estate Commercial Mortgage   Real Estate Residential   Real Estate Home Equity   Consumer   Unallocated   Total
June 30, 2014                                                                
Individually Evaluated for Impairment   $ 1,378     $ 821     $ 40,516     $ 22,273     $ 2,563     $ 315     $ —       $ 67,866  
Collectively Evaluated for Impairment     133,455       33,423       478,064       283,556       225,669       183,558       —         1,337,725  
Total   $ 134,833     $ 34,244     $ 518,580     $ 305,829     $ 228,232     $ 183,873     $ —       $ 1,405,591  
                                                                 
December 31, 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  
                                                                 
June 30, 2013                                                                
Individually Evaluated for Impairment   $ 1,955     $ 1,097     $ 61,494     $ 21,090     $ 4,124     $ 526     $ —       $ 90,286  
Collectively Evaluated for Impairment     124,976       34,726       520,007       287,068       228,406       144,648       —         1,339,831  
Total   $ 126,931     $ 35,823     $ 581,501     $ 308,158     $ 232,530     $ 145,174     $ —       $ 1,430,117  
Loans individually evaluated for impairment by class of loans

The following table presents loans individually evaluated for impairment by class of loans.

 

 

(Dollars in Thousands)

   Unpaid
Principal
Balance		   Recorded
Investment
With No
Allowance		   Recorded
Investment
With Allowance		   Related
Allowance
June 30, 2014                                
Commercial, Financial and Agricultural   $ 1,378     $ 200     $ 1,178     $ 185  
Real Estate – Construction     821       401       421       63  
Real Estate – Commercial Mortgage     40,516       11,585       28,931       3,565  
Real Estate – Residential     22,273       5,564       16,708       2,563  
Real Estate – Home Equity     2,563       809       1,754       305  
Consumer     315       96       219       20  
Total   $ 67,866     $ 18,655     $ 49,211     $ 6,701  
                                 
December 31, 2013                                
Commercial, Financial and Agricultural   $ 1,580     $ 443     $ 1,137     $ 75  
Real Estate – Construction     557       —         557       66  
Real Estate – Commercial Mortgage     49,973       19,860       30,113       4,336  
Real Estate – Residential     20,470       4,330       16,140       2,047  
Real Estate – Home Equity     3,359       646       2,713       682  
Consumer     355       90       265       23  
Total   $ 76,294     $ 25,369     $ 50,925     $ 7,229  
Average recorded investment and interest income recognized by class of impaired loans

The following table summarizes the average recorded investment and interest income recognized by class of impaired loans.

 

    Three Months Ended June 30,   Six Months Ended June 30,
    2014   2013   2014   2013
(Dollars in Thousands)   Average Recorded Investment   Total Interest Income   Average Recorded Investment   Total Interest Income   Average Recorded Investment   Total Interest Income   Average Recorded Investment   Total Interest Income
Commercial, Financial and Agricultural   $ 1,482     $ 17     $ 2,176     $ 33     $ 1,514     $ 35     $ 2,226     $ 76  
Real Estate - Construction     689       1       1,589       2       645       2       2,469       3  
Real Estate - Commercial Mortgage     45,215       389       62,267       524       46,801       917       66,395       1,065  
Real Estate - Residential     21,558       307       21,582       213       21,195       517       22,065       419  
Real Estate - Home Equity     2,768       17       4,096       16       2,965       34       4,017       36  
Consumer     338       2       587       3       344       5       620       5  
Total   $ 72,050     $ 733     $ 92,297     $ 791     $ 73,464     $ 1,510     $ 97,792     $ 1,604  
Risk category of loans by segment

The following table presents the risk category of loans by segment.

 

(Dollars in Thousands)   Commercial,
Financial,
Agriculture		   Real Estate   Consumer   Total
Criticized
Loans
June 30, 2014                                
Special Mention   $ 4,821     $ 44,384     $ 155     $ 49,360  
Substandard     4,292       89,722       1,023       95,037  
Doubtful     —         —         —         —    
Total Criticized Loans   $ 9,113     $ 134,106     $ 1,178     $ 144,397  
                                 
December 31, 2013                                
Special Mention   $ 3,656     $ 45,870     $ 115     $ 49,641  
Substandard     4,243       108,990       1,496       114,729  
Doubtful     —         900       —         900  
Total Criticized Loans   $ 7,899     $ 155,760     $ 1,611     $ 165,270  
Loans classified as TDRs

The following table presents loans classified as TDRs.

 

    June 30, 2014   December 31, 2013
(Dollars in Thousands)   Accruing     Nonaccruing     Accruing     Nonaccruing  
Commercial, Financial and Agricultural   $ 1,317     $ —       $ 1,511     $ —    
Real Estate – Construction     —         —         156       —    
Real Estate – Commercial Mortgage     25,854       4,116       24,735       10,308  
Real Estate – Residential     16,459       1,478       16,441       458  
Real Estate – Home Equity     1,500       184       1,576       241  
Consumer     310       —         345       —    
Total TDRs   $ 45,440     $ 5,778     $ 44,764     $ 11,007  
Loans classified as TDRs during the three months ended

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

 

    Three Months Ended June 30,   Six Months Ended June 30,
    2014   2014
(Dollars in Thousands)   Number of Contracts   Pre-Modified Recorded Investment   Post-Modified Recorded Investment   Number of Contracts   Pre-Modified Recorded Investment   Post-Modified Recorded Investment
Commercial, Financial and Agricultural     —       $ —       $ —         1     $ 51     $ 54  
Real Estate – Construction     —         —         —         —         —         —    
Real Estate - Commercial Mortgage     1       60       60       2       644       644  
Real Estate – Residential     3       271       317       6       1,107       1,207  
Real Estate - Home Equity     —         —         —         3       248       248  
Consumer     —         —         —         1       34       34  
Total TDRs     4     $ 331     $ 377       13     $ 2,084     $ 2,187  

 

    Three Months Ended June 30,   Six Months Ended June 30,
    2013   2013
(Dollars in Thousands)   Number of Contracts   Pre-Modified Recorded Investment   Post-Modified Recorded Investment   Number of Contracts   Pre-Modified Recorded Investment   Post-Modified Recorded Investment
Commercial, Financial and Agricultural     2     $ 268     $ 259       4     $ 294     $ 337  
Real Estate – Construction     —         —         —         —         —         —    
Real Estate - Commercial Mortgage     4       734       721       9       5,121       5,153  
Real Estate – Residential     7       804       833       10       1,176       1,214  
Real Estate - Home Equity     5       256       252       6       344       342  
Consumer     5       77       60       6       112       93  
Total TDRs     23     $ 2,139     $ 2,125       35     $ 7,047     $ 7,139  
Loans modified as TDRs within the previous 12 months and subsequently defaulted

Loans modified as TDRs within the previous 12 months that have subsequently defaulted during the periods indicated are presented in the table below.

 

    Three Months Ended June 30,   Six Months Ended June 30,
    2014   2014
(Dollars in Thousands)   Number of
Contracts		   Post-Modified
Recorded
Investment		   Number of
Contracts		   Post-Modified
Recorded
Investment
Commercial, Financial and Agricultural     —       $ —         —       $ —    
Real Estate - Construction     —         —         —         —    
Real Estate - Commercial Mortgage     —         —         —         —    
Real Estate - Residential     1       118       1       118  
Real Estate - Home Equity     1       153       1       153  
Consumer     —         —         —         —    
Total TDRs     2     $ 271       2     $ 271  

 

    Three Months Ended June 30,   Six Months Ended June 30,
    2013   2013
(Dollars in Thousands)   Number of
Contracts		   Post-Modified
Recorded
Investment		   Number of
Contracts		   Post-Modified
Recorded
Investment
Commercial, Financial and Agricultural     1     $ 83       1     $ 83  
Real Estate - Construction     —         —         —         —    
Real Estate - Commercial Mortgage     3       988       5       1,216  
Real Estate - Residential     1       264       2       283  
Real Estate - Home Equity     —         —         —         —    
Consumer     1       28       1       28  
Total TDRs     6     $ 1,363       9     $ 1,610  

 

  (1) Recorded investment reflects charge-offs and additional funds advanced at time of restructure, if applicable.
Loans modified as TDRs information

Loans modified as TDRs within the previous 12 months that have subsequently defaulted during the periods indicated are presented in the table below.

 

    Three Months Ended June 30,   Six Months Ended June 30,
    2014   2014
(Dollars in Thousands)   Number of
Contracts		   Post-Modified
Recorded
Investment		   Number of
Contracts		   Post-Modified
Recorded
Investment
Commercial, Financial and Agricultural     —       $ —         —       $ —    
Real Estate - Construction     —         —         —         —    
Real Estate - Commercial Mortgage     —         —         —         —    
Real Estate - Residential     1       118       1       118  
Real Estate - Home Equity     1       153       1       153  
Consumer     —         —         —         —    
Total TDRs     2     $ 271       2     $ 271  

 

    Three Months Ended June 30,   Six Months Ended June 30,
    2013   2013
(Dollars in Thousands)   Number of
Contracts		   Post-Modified
Recorded
Investment		   Number of
Contracts		   Post-Modified
Recorded
Investment
Commercial, Financial and Agricultural     1     $ 83       1     $ 83  
Real Estate - Construction     —         —         —         —    
Real Estate - Commercial Mortgage     3       988       5       1,216  
Real Estate - Residential     1       264       2       283  
Real Estate - Home Equity     —         —         —         —    
Consumer     1       28       1       28  
Total TDRs     6     $ 1,363       9     $ 1,610  

 

  (1) Recorded investment reflects charge-offs and additional funds advanced at time of restructure, if applicable.