Purchased Loans

12 Months Ended

Dec. 31, 2019

Purchased Loans [Abstract]

Purchased loans

Note 6. Purchased Loans

(In Thousands)

For purposes of this Note 6, all references to “loans” means purchased loans.

The following is a summary of purchased loans at December 31:

	2019		2018
Real Estate:
Land Development and Construction	$	14,722	$	—
Farmland		510		—
1-4 Family Mortgages		35,952		—
Commercial Real Estate		32,436		—
Total Real Estate Loans		83,620		—
Business Loans:
Commercial and Industrial Loans		14,153		—
Farm Production and Other Farm Loans		884		—
Total Business Loans		15,037		—
Consumer Loans:
Credit Cards		—		—
Other Consumer Loans		1,973		—
Total Consumer Loans		1,973		—
Total Gross Loans		100,630		—
Unearned Income		—		—
Loans, net of unearned income	$	100,630	$	—

An age analysis of past due loans, segregated by class of loans, as of December 31, 2019 is as follows:

	Loans 30-89 Days Past Due		Loans 90 or more Days Past Due		Total Past Due Loans		Current Loans		Total Loans		Accruing Loans 90 or  more Days Past Due
Real Estate:
Land Development and Construction	$	528	$	—	$	528	$	14,194	$	14,722	$	—
Farmland		—		—		—		510		510		—
1-4 Family Mortgages		444		—		444		35,508		35,952		—
Commercial Real Estate		603		—		603		31,833		32,436		—
Total Real Estate Loans		1,576		—		965		82,044		83,620		—
Business Loans:
Commercial and Industrial Loans		379		3		382		13,771		14,153		—
Farm Production and Other Farm Loans		—		—		—		884		884		—
Total Business Loans		379		3		382		14,655		15,037		—
Consumer Loans:
Credit Cards		—		—		—		—		—		—
Other Consumer Loans		49		8		57		1,916		1,973		—
Total Consumer Loans		49		8		57		1,916		1,973		—
Total Loans	$	2,003	$	11	$	2,014	$	98,615	$	100,630	$	—

There were no non credit deteriorated loans that were subsequently impaired and recognized in conformity with ASC 310 as of December 31, 2019.

The following table details the amount of gross loans by loan grade which are consistent with the Company’s loan grades, and class for the year ended December 31, 2019:

			Special
	Satisfactory		Mention		Substandard		Doubtful		Loss		Total
	1,2,3,4		5,6		7		8		9		Loans
Real Estate:
Land Development and Construction	$	13,890	$	789	$	43	$	—	$	—	$	14,722
Farmland		510		—		—		—		—		510
1-4 Family Mortgages		33,737		1,535		680		—		—		35,952
Commercial Real Estate		30,780		1,656		—		—		—		32,436
Total Real Estate Loans		78,917		3,980		723		—		—		83,620
Business Loans:
Commercial and Industrial Loans		13,545		608		—		—		—		14,153
Farm Production and Other Farm Loans		884		—		—		—		—		884
Total Business Loans		14,429		608		—		—		—		15,037
Consumer Loans:
Credit Cards		—		—		—		—		—		—
Other Consumer Loans		1,937		36		—		—		—		1,973
Total Consumer Loans		1,937		36		—		—		—		1,973
Total Loans	$	95,283	$	4,624	$	723	$	—	$	—	$	100,630

Loans purchased in business combinations that exhibited, at the date of acquisition, evidence of deterioration of the credit quality since origination, such that it was probable that all contractually required payments would not be collected, were as follows as of December 31, 2019:

	2019		2018
Real Estate:
Land Development and Construction	$	43	$	—
Farmland		—		—
1-4 Family Mortgages		706		—
Commercial Real Estate		—		—
Total Real Estate Loans		749		—
Total PCD Loans	$	749	$	—

Non-accrual loans of $33 are included in the 1-4 Family Mortgages at December 31, 2019.

The following table presents the fair value of loans determined to be impaired at the time of acquisition:

	Total Purchased Credit Deteriorated Loans
Contractually-required principal	$	993
Nonaccretable difference		(68	)
Cash flows expected to be collected		925
Accretable yield		(36	)
Fair Value	$	889

Changes in the accretable yield of loans purchased with deteriorated credit quality were as follows:

Balance at January 1, 2019	$	—
Additions through acquisition		(36	)
Reclasses from nonaccretable difference		12
Accretion		8
Charge-off		—
Balance at December 31, 2019	$	(16	)

There were no loans classified as TDRs purchased as part of the acquisition of Charter.

The following table presents the fair value of loans purchased from Charter as of the October 1, 2019 acquisition date:

	October 1, 2019
At acquisition date:
Contractually-required principal	$	104,127
Nonaccretable difference		(68	)
Cash flows expected to be collected		104,059
Accretable yield		(394	)
Fair Value	$	103,665