Quarterly report pursuant to Section 13 or 15(d)

LOANS, NET (Tables)

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

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

 

(Dollars in Thousands)   September 30, 2014     December 31, 2013  
Commercial, Financial and Agricultural   $ 133,756     $ 126,607  
Real Estate – Construction     38,121          31,012  
Real Estate – Commercial Mortgage     501,863       533,871  
Real Estate – Residential(1)     308,295       309,692  
Real Estate – Home Equity     228,968       227,922  
Consumer     203,372       159,500  
Loans, Net of Unearned Income   $ 1,414,375     $ 1,388,604  

 

  (1) Includes loans in process with outstanding balances of $5.5 million and $6.8 million at September 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.

 

    September 30, 2014     December 31, 2013  
(Dollars in Thousands)   Nonaccrual     90 + Days     Nonaccrual     90 + Days  
Commercial, Financial and Agricultural   $ 933     $ —     $ 188     $ —  
Real Estate – Construction     860       —       426       —  
Real Estate – Commercial Mortgage     11,920       —       25,227       —  
Real Estate – Residential     7,416       —       6,440       —  
Real Estate – Home Equity     2,018       —       4,084       —  
Consumer     335       62       599       —  
Total   $ 23,482     $ 62     $ 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 		 
September 30, 2014                                                
Commercial, Financial and Agricultural   $ 296     $ 59     $ —     $ 355     $ 132,468     $ 133,756  
Real Estate – Construction     —       —       —       —       37,261       38,121  
Real Estate – Commercial Mortgage     711       26       —       737       489,206       501,863  
Real Estate – Residential     1,193       1,094       —       2,287       298,592       308,295  
Real Estate – Home Equity     255       119       —       374       226,576       228,968  
Consumer     795       178       62       1,035       202,002       203,372  
Total   $ 3,250     $ 1,476     $ 62     $ 4,788     $ 1,386,105     $ 1,414,375  
                                                 
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   $ 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 September 30, 2014                                                                
Beginning Balance   $ 706     $ 1,267     $ 6,147     $ 8,214     $ 3,066     $ 1,143     $ —     $ 20,543  
Provision for Loan Losses     387       (280 )     386       (505 )     331       105       —       424  
Charge-Offs     (86 )     —       (1,208 )     (212 )     (621 )     (386 )     —       (2,513 )
Recoveries     28       2       213       93       37       266       —       639  
Net Charge-Offs     (58 )     2       (955 )     (119 )     (584 )     (120 )     —       (1,874 )
Ending Balance   $ 1,035     $ 989     $ 5,538     $ 7,590     $ 2,813     $ 1,128     $ —     $ 19,093  
                                                                 
Nine Months Ended
September 30, 2014 		                                                               
Beginning Balance   $ 699     $ 1,580     $ 7,710     $ 9,073     $ 3,051     $ 982     $ —     $ 23,095  
Provision for Loan Losses     371       (598 )     267       (385 )     1,048       579       —       1,282  
Charge-Offs     (183 )     —       (2,831 )     (1,638 )     (1,399 )     (1,212 )     —       (7,263 )
Recoveries     148       7       392       540       113       779       —       1,979  
Net Charge-Offs     (35 )     7       (2,439 )     (1,098 )     (1,286 )     (433 )     —       (5,284 )
Ending Balance   $ 1,035     $ 989     $ 5,538     $ 7,590     $ 2,813     $ 1,128     $ —     $ 19,093  
                                                                 
Three Months Ended September 30, 2013                                                                
Beginning Balance   $ 895     $ 2,243     $ 9,951     $ 9,258     $ 2,879     $ 1,042     $ 1,026     $ 27,294  
Provision for Loan Losses     (171 )     (237 )     (630 )     1,044       277       297       (25 )     555  
Charge-Offs     (138 )     (278 )     (882 )     (1,178 )     (362 )     (674 )     —       (3,512 )
Recoveries     87       1       167       167       13       238       —       673  
Net Charge-Offs     (51 )     (277 )     (715 )     (1,011 )     (349 )     (436 )     —       (2,839 )
Ending Balance   $ 673     $ 1,729     $ 8,606     $ 9,291     $ 2,807     $ 903     $ 1,001     $ 25,010  
                                                                 
Nine Months Ended
September 30, 2013 		                                                               
Beginning Balance   $ 1,253     $ 2,856     $ 11,081     $ 8,678     $ 2,945     $ 1,327     $ 1,027     $ 29,167  
Provision for Loan Losses     (345 )     (130 )     151       2,868       404       153       (26 )     3,075  
Charge-Offs     (411 )     (998 )     (2,975 )     (2,914 )     (797 )     (1,321 )     —       (9,416 )
Recoveries     176       1       349       659       255       744       —       2,184  
Net Charge-Offs     (235 )     (997 )     (2,626 )     (2,255 )     (542 )     (577 )     —       (7,232 )
Ending Balance   $ 673     $ 1,729     $ 8,606     $ 9,291     $ 2,807     $ 903     $ 1,001     $ 25,010
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  
September 30, 2014                                                                
Period-end amount Allocated to:                                                                
Loans Individually Evaluated for Impairment   $ 576     $ 94     $ 3,359     $ 2,526     $ 471     $ 12     $ —     $ 7,038  
Loans Collectively Evaluated for Impairment     459       895       2,179       5,064       2,342       1,116       —       12,055  
Ending Balance   $ 1,035     $ 989     $ 5,538     $ 7,590     $ 2,813     $ 1,128     $ —     $ 19,093  
                                                                 
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  
                                                                 
September 30, 2013                                                                
Period-end amount Allocated to:                                                                
Loans Individually Evaluated for Impairment   $ 218     $ 124     $ 5,045     $ 2,184     $ 508     $ 31     $ —     $ 8,110  
Loans Collectively Evaluated for Impairment     455       1,605       3,561       7,107       2,299       872       1,001       16,900  
Ending Balance   $ 673     $ 1,729     $ 8,606     $ 9,291     $ 2,807     $ 903     $ 1,001     $ 25,010
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  
September 30, 2014                                                
Individually Evaluated for Impairment   $ 1,489     $ 835     $ 37,524     $ 22,087     $ 2,796     $ 271     $ —     $ 65,002  
Collectively Evaluated for Impairment     132,267       37,286       464,339       286,208       226,172       203,101       —       1,349,373  
Total   $ 133,756     $ 38,121     $ 501,863     $ 308,295     $ 228,968     $ 203,372     $ —     $ 1,414,375  
                                                                 
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  
                                                                 
September 30, 2013                                                                
Individually Evaluated for Impairment   $ 3,546     $ 773     $ 57,820     $ 20,894     $ 3,977     $ 416     $ —     $ 87,426  
Collectively Evaluated for Impairment     119,707       30,681       512,916       290,137       226,235       150,740       —       1,330,416  
Total   $ 123,253     $ 31,454     $ 570,736     $ 311,031     $ 230,212     $ 151,156     $ —     $ 1,417,842
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  
September 30, 2014                                
Commercial, Financial and Agricultural   $ 1,489     $ 195     $ 1,294     $ 576  
Real Estate – Construction     835       —       835       94  
Real Estate – Commercial Mortgage     37,524       11,062       26,462       3,359  
Real Estate – Residential     22,087       5,265       16,822       2,526  
Real Estate – Home Equity     2,796       792       2,004       471  
Consumer     271       20       251       12  
Total   $ 65,002     $ 17,334     $ 47,668     $ 7,038  
                                 
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 September 30,     Nine Months Ended September 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   $ 1,433       15     $ 2,750       34     $ 1,482       50     $ 2,633       110  
Real Estate - Construction     828       1       935       2       738       4       1,317       5  
Real Estate - Commercial Mortgage     39,020       381       59,657       510       42,671       1,298       60,785       1,575  
Real Estate - Residential     22,180       284       20,992       217       21,610       800       21,353       637  
Real Estate - Home Equity     2,680       18       4,050       19       2,906       52       4,056       54  
Consumer     293       2       472       3       314       7       529       7  
Total   $ 66,434       701     $ 88,856       785     $ 69,721       2,211     $ 90,673       2,388  
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 		 
September 30, 2014                                
Special Mention   $ 4,225     $ 43,372     $ 179     $ 47,776  
Substandard     3,994       84,526       910       89,430  
Doubtful     420       —       —       420  
Total Criticized Loans   $ 8,639     $ 127,898     $ 1,089     $ 137,626  
                                 
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 on accruing and nonaccruing basis

The following table presents loans classified as TDRs.

 

    September 30, 2014     December 31, 2013  
(Dollars in Thousands)   Accruing     Nonaccruing     Accruing     Nonaccruing  
Commercial, Financial and Agricultural   $ 783     $ —     $ 1,511     $ —  
Real Estate – Construction     —       —       156       —  
Real Estate – Commercial Mortgage     24,916       4,645       24,735       10,308  
Real Estate – Residential     15,756       1,556       16,441       458  
Real Estate – Home Equity     1,856       181       1,576       241  
Consumer     267       —       345       —  
Total TDRs   $ 43,578     $ 6,382     $ 44,764     $ 11,007  
Loans classified as TDRs

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 September 30,     Nine Months Ended September 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       303       1,125       3       947       1,769  
Real Estate - Residential     2       201       182       8       1,308       1,390  
Real Estate - Home Equity     5       453       438       8       701       686  
Consumer     —       —       —       1       34       33  
Total TDRs     8     $ 957     $ 1,745       21     $ 3,041     $ 3,932  

 

                         
    Three Months Ended September 30,     Nine Months Ended September 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     —     $ —     $ —       4     $ 294     $ 337  
Real Estate - Construction     —       —       —       —       —       —  
Real Estate - Commercial Mortgage     3       4,264       4,250       12       9,385       9,403  
Real Estate - Residential     6       581       642       16       1,757       1,856  
Real Estate - Home Equity     2       85       85       8       429       427  
Consumer     —       —       —       6       112       93  
Total TDRs     11     $ 4,930     $ 4,977       46     $ 11,977     $ 12,116
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 September 30,     Nine Months Ended September 30,  
    2014     2014  
(Dollars in Thousands)   Number of
Contracts		     Post-Modified
Recorded
Investment(1) 		    Number of
Contracts		     Post-Modified
Recorded
Investment(1) 		 
Commercial, Financial and Agricultural     —     $ —       —     $ —  
Real Estate - Construction     —       —       —       —  
Real Estate - Commercial Mortgage     —       —       —       —  
Real Estate - Residential     3       334       4       451  
Real Estate - Home Equity     —       —       1       153  
Consumer     —       —       —       —  
Total TDRs     3     $ 334       5     $ 604  

 

    Three Months Ended September 30,     Nine Months Ended September 30,  
    2013     2013  
(Dollars in Thousands)   Number of
Contracts		     Post-Modified
Recorded
Investment(1) 		    Number of
Contracts		     Post-Modified
Recorded
Investment(1) 		 
Commercial, Financial and Agricultural     —     $ —       1     $ 83  
Real Estate - Construction     —       —       —       366  
Real Estate - Commercial Mortgage     1       304       2       728  
Real Estate - Residential     5       445       7       50  
Real Estate - Home Equity     1       50       1       —  
Consumer     —       —       —       —  
Total TDRs     7     $ 799       11     $ 1,227  

 

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

The following table provides information on how TDRs were modified during the periods indicated.

 

    Three Months Ended September 30,     Nine Months Ended September 30,  
    2014     2014  
(Dollars in Thousands)   Number of
Contracts		     Recorded
Investment(1) 		    Number of
Contracts		     Recorded
Investment(1) 		 
Extended amortization     2     $ 158       8     $ 1,736  
Interest rate adjustment     —       —       1       156  
Extended amortization and interest rate adjustment     2       231       5       488  
Other     4       1,356       7       1,552  
Total TDRs     8     $ 1,745       21     $ 3,932  

 

    Three Months Ended September 30,     Nine Months Ended September 30,  
    2013     2013  
(Dollars in Thousands)   Number of
Contracts		     Recorded
Investment(1) 		    Number of
Contracts		     Recorded
Investment(1) 		 
Extended amortization     4     $ 2,633       13     $ 3,924  
Interest rate adjustment     1       97       8       883  
Extended amortization and interest rate adjustment     4       473       16       5,263  
Principal Moratorium     1       1,700       1       1,700  
Other     1       74       8       346  
Total TDRs     11     $ 4,977       46     $ 12,116  

 

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