Loans (Tables)

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Composition of Net Loans

The composition of loans, net at December 31, 2015 and 2014 is as follows:

	2015			2014
	(In Thousands)
Real Estate:
Land Development and Construction	$	33,133		$	43,233
Farmland		23,293			26,463
1-4 Family Mortgages		104,046			104,170
Commercial Real Estate		180,691			151,746
Total Real Estate Loans		341,163			325,612
Business Loans:
Commercial and Industrial Loans		61,425			38,333
Farm Production and other Farm Loans		1,055			1,035
Total Business Loans		62,480			39,368
Consumer Loans:
Credit Cards		1,061			1,075
Other Consumer Loans		25,564			25,440
Total Consumer Loans		26,625			26,515
Total Gross Loans		430,268			391,495
Unearned income		(686	)		(535	)
Allowance for loan losses		(6,474	)		(6,542	)
Loans, net	$	423,108		$	384,418

Activity in Related Party Loans

Activity in related party loans during 2015 is presented in the following table.

Balance outstanding at December 31, 2014	$	4,139,357
Principal additions		2,648,168
Principal reductions		(1,166,551	)
Balance outstanding at December 31, 2015	$	5,620,974

Year-End Non-Accrual Loans, Segregated by Class of Loans

Year-end non-accrual loans, segregated by class of loans, were as follows:

	2015		2014
	(in thousands)
Real Estate:
Land Development and Construction	$	75	$	92
Farmland		158		222
1-4 Family Mortgages		2,464		1,905
Commercial Real Estate		11,662		9,444
Total Real Estate Loans		14,359		11,663
Business Loans:
Commercial and Industrial Loans		28		70
Total Business Loans		28		70
Consumer Loans:
Other Consumer Loans		36		133
Total Consumer Loans		36		133
Total Non-Accrual Loans	$	14,423	$	11,854

Age Analysis of Past Due Loans, Segregated by Class

An age analysis of past due loans, segregated by class of loans, as of December 31, 2015 was as follows (in thousands):

											Accruing
			Loans								Loans
	Loans		90 or more								90 or more
	30-89 Days		Days Past		Total Past		Current		Total		Days
	Past Due		Due		Due Loans		Loans		Loans		Past Due
Real Estate:
Land Development and Construction	$	1,126	$	21	$	1,147	$	31,986	$	33,133	$	21
Farmland		947		4		951		22,342		23,293		4
1-4 Family Mortgages		5,131		573		5,704		98,342		104,046		—
Commercial Real Estate		4,015		6,748		10,763		169,928		180,691		—
Total Real Estate Loans		11,219		7,346		18,565		322,598		341,163		25
Business Loans:
Commercial and Industrial Loans		245		12		257		61,168		61,425		12
Farm Production and other Farm Loans		12		—		12		1,043		1,055		—
Total Business Loans		257		12		269		62,211		62,480		12
Consumer Loans:
Credit Cards		12		9		21		1,040		1,061		9
Other Consumer Loans		1,017		30		1,047		24,517		25,564		30
Total Consumer Loans		1,029		39		1,068		25,557		26,625		39
Total Loans	$	12,505	$	7,397	$	19,902	$	410,366	$	430,268	$	76

An age analysis of past due loans, segregated by class of loans, as of December 31, 2014 was as follows (in thousands):

											Accruing
			Loans								Loans
	Loans		90 or more								90 or more
	30-89 Days Past Due		Days Past Due		Total Past Due Loans		Current Loans		Total Loans		Days Past Due
Real Estate:
Land Development and Construction	$	578	$	—	$	578	$	42,655	$	43,233	$	—
Farmland		889		17		906		25,557		26,463		—
1-4 Family Mortgages		4,606		837		5,443		98,727		104,170		131
Commercial Real Estate		2,211		4,471		6,682		145,064		151,746		724
Total Real Estate Loans		8,284		5,325		13,609		312,003		325,612		855
Business Loans:
Commercial and Industrial Loans		115		3		118		38,215		38,333		3
Farm Production and other Farm Loans		22		—		22		1,013		1,035		—
Total Business Loans		137		3		140		39,228		39,368		3
Consumer Loans:
Credit Cards		27		6		33		1,042		1,075		6
Other Consumer Loans		1,179		53		1,232		24,208		25,440		16
Total Consumer Loans		1,206		59		1,265		25,250		26,515		22
Total Loans	$	9,627	$	5,387	$	15,014	$	376,481	$	391,495	$	880

Impaired Loans, Segregated by Class of Loans

Impaired loans as of December 31, by class of loans, are as follows (in thousands):

2015	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Real Estate:
Land Development and Construction	$	75	$	—	$	75	$	75	$	75	$	85
Farmland		679		69		610		679		54		739
1-4 Family Mortgages		3,103		1,754		1,349		3,103		183		2,829
Commercial Real Estate		11,662		1,409		10,253		11,662		2,685		10,552
Total Real Estate Loans		15,519		3,232		12,287		15,519		2,997		14,205
Business Loans:
Commercial and Industrial Loans		28		28		—		28		—		49
Farm Production and other Farm Loans		—		—		—		—		—		—
Total Business Loans		28		28		—		28		—		49
Consumer Loans:
Other Consumer Loans		36		36		—		36		—		78
Total Consumer Loans		36		36		—		36		—		78
Total Loans	$	15,583	$	3,296	$	12,287	$	15,583	$	2,997	$	14,332

2014	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
Real Estate:
Land Development and Construction	$	92	$	—	$	92	$	92	$	92	$	114
Farmland		798		104		694		798		108		575
1-4 Family Mortgages		2,554		1,685		869		2,554		143		2,210
Commercial Real Estate		9,444		895		8,549		9,444		1,642		9,169
Total Real Estate Loans		12,888		2,684		10,204		12,888		1,985		12,068
Business Loans:
Commercial and Industrial Loans		70		30		40		70		40		1,147
Total Business Loans		70		30		40		70		40		1,147
Consumer Loans:
Other Consumer Loans		121		121		—		121		—		120
Total Consumer Loans		121		121		—		121		—		120
Total Loans	$	13,079	$	2,835	$	10,244	$	13,079	$	2,025	$	13,335

Troubled Debt Restructurings Segregated by Class

The following table presents troubled debt restructurings segregated by class (in thousands, except number of loans):

December 31, 2015	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial real estate		3	$	4,871	$	3,858
Total		3	$	4,871	$	3,858
December 31, 2014	Number of Loans		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
Commercial real estate		4	$	6,850	$	4,741
Total		4	$	6,850	$	4,741

Changes in Troubled Debt Restructurings

Changes in the Company’s troubled debt restructurings are set forth in the table below:

	Number of Loans		Recorded Investment
Totals at January 1, 2015		4	$	4,741
Additional loans with concessions
Reductions due to:
Charge-off		1		(349	)
Principal paydowns				(534	)
Total at December 31, 2015		3	$	3,858

Detailed Amount of Gross Loans Segregated by Loan Grade and Class

The following table details the amount of gross loans by loan grade and class for the year ended December 31, 2015 (in thousands):

			Special
	Satisfactory		Mention		Substandard		Doubtful		Loss		Total
Grades	1, 2, 3,4		5,6		7		8		9		Loans
Real Estate:
Land Development and Construction	$	31,889	$	202	$	1,042	$	—	$	—	$	33,133
Farmland		21,084		989		1,220		—		—		23,293
1-4 Family Mortgages		88,425		4,874		10,747		—		—		104,046
Commercial Real Estate		155,898		12,286		12,507		—		—		180,691
Total Real Estate Loans		297,296		18,351		25,516		—		—		341,163
Business Loans:
Commercial and Industrial Loans		60,918		377		130		—		—		61,425
Farm Production and other Farm Loans		1,055		—		—		—		—		1,055
Total Business Loans		61,973		377		130		—		—		62,480
Consumer Loans:
Credit Cards		1,052		—		9		—		—		1,061
Other Consumer Loans		24,666		111		777		7		3		25,564
Total Consumer Loans		25,718		111		786		7		3		26,625
Total Loans	$	384,987	$	18,839	$	26,432	$	7	$	3	$	430,268

The following table details the amount of gross loans by loan grade and class for the year ended December 31, 2014:

			Special
	Satisfactory		Mention		Substandard		Doubtful		Loss		Total
Grades	1, 2, 3,4		5,6		7		8		9		Loans
Real Estate:
Land Development and Construction	$	41,431	$	424	$	1,378	$	—	$	—	$	43,233
Farmland		23,993		708		1,762		—		—		26,463
1-4 Family Mortgages		86,969		5,351		11,850		—		—		104,170
Commercial Real Estate		126,881		13,558		11,307		—		—		151,746
Total Real Estate Loans		279,274		20,041		26,297		—		—		325,612
Business Loans:
Commercial and Industrial Loans		37,890		232		211		—		—		38,333
Farm Production and other Farm Loans		1,035		—		—		—		—		1,035
Total Business Loans		38,925		232		211		—		—		39,368
Consumer Loans:
Credit Cards		1,069		—		6		—		—		1,075
Other Consumer Loans		24,889		177		358		16		—		25,440
Total Consumer Loans		25,958		177		364		16		—		26,515
Total Loans	$	344,157	$	20,450	$	26,872	$	16	$	—	$	391,495

Net Chargeoffs Segregated by Class of Loans

Net chargeoffs (recoveries), segregated by class of loans, were as follows:

	2015			2014		2013
Real Estate:
Land Development and Construction	$	(8,700	)	$	241,853	$	(15,787	)
Farmland		(5,156	)		52,731		14,915
1-4 Family Mortgages		149,014			22,205		152,756
Commercial Real Estate		415,413			42,582		513,841
Total Real Estate Loans		550,571			359,371		665,725
Business Loans:
Commercial and Industrial Loans		1,585			2,038,953		350,740
Farm Production and other Farm Loans		—			—		(1,700	)
Total Business Loans		1,585			2,038,953		349,040
Consumer Loans:
Credit Cards		15,493			11,482		17,726
Other Consumer Loans		57,661			49,022		48,387
Total Consumer Loans		73,154			60,504		66,113
Total Net Chargeoffs	$	625,310		$	2,458,828	$	1,080,878

Detailed Activity in Allowance for Possible Loan Losses by Portfolio Segment

The following table details activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2015, 2014 and 2013:

	Real		Business
2015	Estate		Loans			Consumer		Total
Beginning Balance	$	5,202,151	$	873,815		$	466,360	$	6,542,326
Provision for loan losses		587,315		(228,982	)		198,354		556,687
Chargeoffs		625,556		32,258			164,091		821,905
Recoveries		74,985		30,673			90,937		196,595
Net Chargeoffs		550,571		1,585			73,154		625,310
Ending Balance	$	5,238,895	$	643,248		$	591,560	$	6,473,703
Period end allowance allocated to:
Loans individually evaluated for impairment	$	2,996,708	$	—		$	—	$	2,996,708
Loans collectively evaluated for impairment		2,242,187		643,248			591,560		3,476,995
Ending Balance	$	5,238,895	$	643,248		$	591,560	$	6,473,703

2014	Real Estate		Business Loans		Consumer			Total
Beginning Balance	$	4,706,011	$	2,767,409	$	604,337		$	8,077,757
Provision for loan losses		855,511		145,359		(77,473	)		923,397
Chargeoffs		560,298		2,050,939		121,093			2,732,330
Recoveries		200,927		11,986		60,589			273,502
Net Chargeoffs		359,371		2,038,953		60,504			2,458,828
Ending Balance	$	5,202,151	$	873,815	$	466,360		$	6,542,326
Period end allowance allocated to:
Loans individually evaluated for impairment	$	1,984,671	$	40,083	$	—		$	2,024,754
Loans collectively evaluated for impairment		3,217,480		833,732		466,360			4,517,572
Ending Balance	$	5,202,151	$	873,815	$	466,360		$	6,542,326

2013	Real Estate		Business Loans		Consumer			Total
Beginning Balance	$	4,629,559	$	1,554,698	$	770,012		$	6,954,269
Provision for loan losses		742,177		1 ,561,751		(99,562	)		2,204,366
Chargeoffs		763,914		375,498		135,302			1,274,714
Recoveries		98,189		26,458		69,189			193,836
Net Chargeoffs		665,725		349,040		66,113			1,080,878
Ending Balance	$	4,706,011	$	2,767,409	$	604,337		$	8,077,757
Period end allowance allocated to:
Loans individually evaluated for impairment	$	1,224,874	$	1,071,729	$	—		$	2,296,603
Loans collectively evaluated for impairment		3,481,137		1,695,680		604,337			5,781,154
Ending Balance	$	4,706,011	$	2,767,409	$	604,337		$	8,077,757

Recorded Investment in Loans Related to Balance in Allowance for Possible Loan Losses by Portfolio Segment

The Company’s recorded investment in loans as of December 31, 2015 and 2014 related to each balance in the allowance for possible loan losses by portfolio segment and disaggregated on the basis of the Company’s impairment methodology was as follows (in thousands):

2015	Real Estate		Business Loans		Consumer		Total
Loans individually evaluated for impairment	$	15,519	$	28	$	36	$	15,583
Loans collectively evaluated for impairment		325,644		62,452		26,589		414,685
	$	341,163	$	62,480	$	26,625	$	430,268
2014	Real Estate		Business Loans		Consumer		Total
Loans individually evaluated for impairment	$	12,888	$	70	$	121	$	13,079
Loans collectively evaluated for impairment		312,724		39,298		26,394		378,416
	$	325,612	$	39,368	$	26,515	$	391,495