LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Mar. 31, 2019

Receivables [Abstract]

Summary of Loan Portfolio by Type of Loan

The following table summarizes the Company’s loan portfolio by type of loan as of:

	March 31, 2019			December 31, 2018
Commercial and industrial	$	246,176		$	261,779
Real estate:
Construction and development		250,852			237,503
Commercial real estate		581,926			582,519
Farmland		72,274			67,845
1-4 family residential		390,618			393,067
Multi-family residential		37,430			38,386
Consumer		56,158			54,777
Agricultural		19,994			23,277
Overdrafts		275			382
Total loans		1,655,703			1,659,535
Net of:
Deferred loan costs		466			560
Allowance for loan losses		(15,190	)		(14,651	)
Total net loans	$	1,640,979		$	1,645,444

Schedule of Allowance for Loan Losses Activity

The following tables present the activity in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method for the three months ended March 31, 2019, for the year ended December 31, 2018 and for the three months ended March 31, 2018:

For the Three Months Ended March 31, 2019	Commercial and industrial			Construction and development		Commercial real estate		Farmland		1-4 family residential			Multi-family residential			Consumer			Agricultural			Overdrafts			Total
Allowance for loan losses:
Beginning balance	$	1,751		$	1,920	$	6,025	$	643	$	2,868		$	631		$	565		$	238		$	10		$	14,651
Provision for loan losses		213			81		269		16		7			(56	)		46			(35	)		34			575
Loans charged-off		(6	)		—		—		—		(6	)		—			(17	)		—			(49	)		(78	)
Recoveries		5			—		—		—		1			—			23			—			13			42
Ending balance	$	1,963		$	2,001	$	6,294	$	659	$	2,870		$	575		$	617		$	203		$	8		$	15,190
Allowance ending balance:
Individually evaluated for impairment	$	57		$	—	$	746	$	74	$	—		$	—		$	—		$	—		$	—		$	877
Collectively evaluated for impairment		1,906			2,001		5,548		585		2,870			575			617			203			8			14,313
Ending balance	$	1,963		$	2,001	$	6,294	$	659	$	2,870		$	575		$	617		$	203		$	8		$	15,190
Loans:
Individually evaluated for impairment	$	483		$	1,250	$	5,453	$	139	$	1,450		$	—		$	—		$	233		$	—		$	9,008
Collectively evaluated for impairment		245,693		$	249,602		576,473		72,135		389,168			37,430			56,158			19,761			275			1,646,695
Ending balance	$	246,176		$	250,852	$	581,926	$	72,274	$	390,618		$	37,430		$	56,158		$	19,994		$	275		$	1,655,703

For the Year Ended December 31, 2018	Commercial and industrial			Construction and development		Commercial real estate			Farmland		1-4 family residential			Multi-family residential		Consumer			Agricultural			Overdrafts			Total
Allowance for loan losses:
Beginning balance	$	1,581		$	1,724	$	4,585		$	523	$	3,022		$	629	$	602		$	187		$	6		$	12,859
Provision for loan losses		426			196		1,472			120		(196	)		2		127			(12	)		115			2,250
Loans charged-off		(367	)		—		(33	)		—		(93	)		—		(254	)		(2	)		(169	)		(918	)
Recoveries		111			—		1			—		135			—		90			65			58			460
Ending balance	$	1,751		$	1,920	$	6,025		$	643	$	2,868		$	631	$	565		$	238		$	10		$	14,651
Allowance ending balance:
Individually evaluated for impairment	$	64		$	4	$	341		$	78	$	6		$	—	$	—		$	—		$	—		$	493
Collectively evaluated for impairment		1,687			1,916		5,684			565		2,862			631		565			238			10			14,158
Ending balance	$	1,751		$	1,920	$	6,025		$	643	$	2,868		$	631	$	565		$	238		$	10		$	14,651
Loans:
Individually evaluated for impairment	$	1,022		$	1,250	$	7,153		$	140	$	1,383		$	—	$	—		$	408		$	—		$	11,356
Collectively evaluated for impairment		260,757		$	236,253		575,366			67,705		391,684			38,386		54,777			22,869			382			1,648,179
Ending balance	$	261,779		$	237,503	$	582,519		$	67,845	$	393,067		$	38,386	$	54,777		$	23,277		$	382		$	1,659,535

For the Three Months Ended March 31, 2018	Commercial and industrial			Construction and development			Commercial real estate			Farmland		1-4 family residential			Multi-family residential		Consumer			Agricultural		Overdrafts			Total
Allowance for loan losses:
Beginning balance	$	1,581		$	1,724		$	4,585		$	523	$	3,022		$	629	$	602		$	187	$	6		$	12,859
Provision for loan losses		164			(24	)		439			83		(147	)		18		—			46		21			600
Loans charged-off		(10	)		—			(33	)		—		(13	)		—		(28	)		—		(32	)		(116	)
Recoveries		2			—			—			—		5			—		11			—		14			32
Ending balance	$	1,737		$	1,700		$	4,991		$	606	$	2,867		$	647	$	585		$	233	$	9		$	13,375
Allowance ending balance:
Individually evaluated for impairment	$	12		$	—		$	69		$	80	$	3		$	—	$	—		$	11	$	—		$	175
Collectively evaluated for impairment		1,725			1,700			4,922			526		2,864			647		585			222		9			13,200
Ending balance	$	1,737		$	1,700		$	4,991		$	606	$	2,867		$	647	$	585		$	233	$	9		$	13,375
Loans:
Individually evaluated for impairment	$	816		$	—		$	4,918		$	230	$	800		$	212	$	—		$	653	$	—		$	7,629
Collectively evaluated for impairment		205,492		$	193,909			445,158			63,741		376,478			37,780		48,982			21,892		273			1,393,705
Ending balance	$	206,308		$	193,909		$	450,076		$	63,971	$	377,278		$	37,992	$	48,982		$	22,545	$	273		$	1,401,334

Summary of Credit Exposure by Internally Assigned Grade

The following tables summarize the credit exposure in the Company’s consumer and commercial loan portfolios as of:

March 31, 2019	Commercial and industrial		Construction and development		Commercial real estate		Farmland		1-4 family residential		Multi-family residential		Consumer and Overdrafts		Agricultural		Total
Grade:
Pass	$	245,829	$	249,602	$	572,655	$	71,977	$	389,448	$	37,430	$	56,375	$	19,651	$	1,642,967
Special mention		—		—		3,772		47		308		—		20		114		4,261
Substandard		347		1,250		5,499		250		862		—		38		229		8,475
Total	$	246,176	$	250,852	$	581,926	$	72,274	$	390,618	$	37,430	$	56,433	$	19,994	$	1,655,703

December 31, 2018	Commercial and industrial		Construction and development		Commercial real estate		Farmland		1-4 family residential		Multi-family residential		Consumer and Overdrafts		Agricultural		Total
Grade:
Pass	$	260,863	$	236,253	$	569,648	$	67,541	$	391,956	$	38,386	$	55,055	$	22,713	$	1,642,415
Special mention		224	—			5,691		49		514	—			48		115		6,641
Substandard		692		1,250		7,180		255		597	—			56		449		10,479
Total	$	261,779	$	237,503	$	582,519	$	67,845	$	393,067	$	38,386	$	55,159	$	23,277	$	1,659,535

Summary of Payment Status of Loans

The following tables summarize the payment status of loans in the Company’s total loan portfolio, including an aging of delinquent loans, loans 90 days or more past due continuing to accrue interest and loans classified as nonperforming as of:

March 31, 2019	30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days and Greater Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial and industrial	$	173	$	18	$	69	$	260	$	245,916	$	246,176	$	—
Real estate:
Construction and development		648		—		—		648		250,204		250,852		—
Commercial real estate		2,867		1,403		449		4,719		577,207		581,926		—
Farmland		328		—		—		328		71,946		72,274		—
1-4 family residential		3,067		263		908		4,238		386,380		390,618		—
Multi-family residential		—		—		—		—		37,430		37,430		—
Consumer		482		20		38		540		55,618		56,158		—
Agricultural		98		—		—		98		19,896		19,994		—
Overdrafts		—		—		—		—		275		275		—
Total	$	7,663	$	1,704	$	1,464	$	10,831	$	1,644,872	$	1,655,703	$	—

December 31, 2018	30 to 59 Days Past Due		60 to 89 Days Past Due		90 Days and Greater Past Due		Total Past Due		Current		Total Loans		Recorded Investment > 90 Days and Accruing
Commercial and industrial	$	209	$	493	$	266	$	968	$	260,811	$	261,779	$	—
Real estate:
Construction and development		735		2,816		—		3,551		233,952		237,503		—
Commercial real estate		1,803		3		3,227		5,033		577,486		582,519		—
Farmland		485		—		—		485		67,360		67,845		—
1-4 family residential		2,849		666		596		4,111		388,956		393,067		—
Multi-family residential		—		—		—		—		38,386		38,386		—
Consumer		526		51		56		633		54,144		54,777		—
Agricultural		105		59		41		205		23,072		23,277		—
Overdrafts		—		—		—		—		382		382		—
Total	$	6,712	$	4,088	$	4,186	$	14,986	$	1,644,549	$	1,659,535	$	—

Schedule of Nonaccrual Loans

The following table presents information regarding nonaccrual loans as of:

	March 31, 2019		December 31, 2018
Commercial and industrial	$	213	$	366
Real estate:
Construction and development		—		—
Commercial real estate		913		3,700
Farmland		139		140
1-4 family residential		2,194		1,567
Multi-family residential		—		—
Consumer		109		66
Agricultural		56		52
Total	$	3,624	$	5,891

Summary of Troubled Debt Restructuring

The outstanding balances of TDRs are shown below:

	March 31, 2019		December 31, 2018
Nonaccrual TDRs	$	487	$	335
Performing TDRs		671		861
Total	$	1,158	$	1,196
Specific reserves on TDRs	$	—	$	—

The following tables present loans by class, modified as TDRs, that occurred during the three months ended March 31, 2019, the twelve months ended December 31, 2018 and the three months ended March 31, 2018:

Three Months Ended March 31, 2019	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings:
1-4 family residential		—	$	—	$	—
Farmland		—		—		—
Total		—	$	—	$	—

There were no TDRs that subsequently defaulted through March 31, 2019.    

Year Ended December 31, 2018	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings:
Commercial and industrial		3	$	504	$	504
1-4 family residential		1		78		78
Total		4	$	582	$	582

There was one TDR that subsequently defaulted, therefore remained on nonaccrual status as of December 31, 2018. The TDRs described above did not increase the allowance for loan losses and resulted in no charge-offs during the year ended December 31, 2018.

Three Months Ended March 31, 2018	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Troubled Debt Restructurings:
Commercial and industrial		1	$	15	$	15
1-4 family residential		1		78		78
Total		2	$	93	$	93

Summary of Impaired Loans

The following table presents information about the Company’s impaired loans as of:

March 31, 2019	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial and industrial	$	326	$	326	$	—	$	83
Real estate:
Construction and development		1,250		1,250		—		312
Commercial real estate		2,700		2,700		—		1,107
Farmland		—		—		—		—
1-4 family residential		1,450		1,450		—		294
Multi-family residential		—		—		—		—
Consumer		—		—		—		—
Agricultural		233		233		—		73
Subtotal		5,959		5,959		—		1,869
With allowance recorded:
Commercial and industrial		157		157		57		41
Real estate:
Construction and development		—		—		—		—
Commercial real estate		2,753		2,753		746		764
Farmland		139		139		74		35
1-4 family residential		—		—		—		55
Multi-family residential		—		—		—		—
Consumer		—		—		—		—
Agricultural		—		—		—		—
Subtotal		3,049		3,049		877		895
Total	$	9,008	$	9,008	$	877	$	2,764

The following table presents information about the Company’s impaired loans as of:

December 31, 2018	Unpaid Principal Balance		Recorded Investment		Related Allowance		Average Recorded Investment
With no related allowance recorded:
Commercial and industrial	$	837	$	837	$	—	$	842
Real estate:
Construction and development		720		720		—		518
Commercial real estate		5,168		5,168		—		5,138
Farmland		—		—		—		62
1-4 family residential		1,223		1,223		—		1,132
Multi-family residential		—		—		—		54
Consumer		—		—		—		—
Agricultural		408		408		—		456
Subtotal		8,356		8,356		—		8,202
With allowance recorded:
Commercial and industrial		185		185		64		300
Real estate:
Construction and development		530		530		4		44
Commercial real estate		1,985		1,985		341		677
Farmland		140		140		78		147
1-4 family residential		160		160		6		128
Multi-family residential		—		—		—		—
Consumer		—		—		—		—
Agricultural		—		—		—		52
Subtotal		3,000		3,000		493		1,348
Total	$	11,356	$	11,356	$	493	$	9,550