Credit Quality and Nonperforming Assets (Tables)

9 Months Ended

Sep. 30, 2019

Credit Quality and Nonperforming Assets [Abstract]

Credit Quality Classifications for Loan Balances

Credit quality classifications for the Company’s loan balances were as follows, as of the dates indicated:

Credit Quality Classifications

(dollars in thousands, unaudited)

	September 30, 2019
	Pass		Special Mention		Substandard		Impaired		Total
Real estate:
1-4 family residential construction	$	115,821	$	—	$	—	$	—	$	115,821
Other construction/land		92,008		704		—		405		93,117
1-4 family - closed end		204,871		1,618		424		3,814		210,727
Equity lines		44,352		1,971		89		4,795		51,207
Multi-family residential		51,945		—		—		357		52,302
Commercial real estate - owner occupied		310,413		5,751		4,324		2,050		322,538
Commercial real estate - non-owner occupied		412,689		1,390		526		2,819		417,424
Farmland		143,396		1,060		137		25		144,618
Total real estate		1,375,495		12,494		5,500		14,265		1,407,754
Agricultural		39,165		9,934		—		6		49,105
Commercial and industrial		101,108		13,162		657		810		115,737
Mortgage warehouse		216,913		—		—		—		216,913
Consumer loans		7,351		76		18		706		8,151
Total gross loans and leases	$	1,740,032	$	35,666	$	6,175	$	15,787	$	1,797,660

	December 31, 2018
	Pass		Special Mention		Substandard		Impaired		Total
Real estate:
1-4 family residential construction	$	105,676	$	—	$	—	$	—	$	105,676
Other construction/land		108,304		231		—		488		109,023
1-4 family - closed end		230,022		1,861		1,310		3,632		236,825
Equity lines		49,346		2,194		64		4,716		56,320
Multi-family residential		54,504		—		—		373		54,877
Commercial real estate - owner occupied		292,886		4,192		3,021		1,225		301,324
Commercial real estate - non-owner occupied		429,835		2,730		4,354		1,425		438,344
Farmland		148,680		1,073		146		1,642		151,541
Total real estate		1,419,253		12,281		8,895		13,501		1,453,930
Agricultural		48,517		580		—		6		49,103
Commercial and industrial		110,413		15,686		377		1,744		128,220
Mortgage warehouse		91,813		—		—		—		91,813
Consumer loans		7,851		151		39		821		8,862
Total gross loans and leases	$	1,677,847	$	28,698	$	9,311	$	16,072	$	1,731,928

Aging of Loan Balances by Number of Days Past Due

Loan Portfolio Aging

(dollars in thousands, unaudited)

	September 30, 2019
	30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due(1)		Total Past Due		Current		Total Financing Receivables		Non-Accrual Loans(2)
Real estate:
1-4 family residential construction	$	—	$	—	$	—	$	—	$	115,821	$	115,821	$	—
Other construction/land		621		—		—		621		92,496		93,117		37
1-4 family - closed end		24		—		1,359		1,383		209,344		210,727		1,445
Equity lines		343		70		22		435		50,772		51,207		457
Multi-family residential		—		—		—		—		52,302		52,302		—
Commercial real estate - owner occupied		—		—		982		982		321,556		322,538		1,449
Commercial real estate - non-owner occupied		198		2,819		—		3,017		414,407		417,424		2,819
Farmland		—		—		—		—		144,618		144,618		24
Total real estate		1,186		2,889		2,363		6,438		1,401,316		1,407,754		6,231
Agricultural		—		—		—		—		49,105		49,105		—
Commercial and industrial		60		60		52		172		115,565		115,737		405
Mortgage warehouse lines		—		—		—		—		216,913		216,913		—
Consumer		76		4		13		93		8,058		8,151		83
Total gross loans and leases	$	1,322	$	2,953	$	2,428	$	6,703	$	1,790,957	$	1,797,660	$	6,719

(1) As of September 30, 2019 there were no loans over 90 days past due and still accruing.

(2) Included in total financing receivables

Loan Portfolio Aging

(dollars in thousands, unaudited)

	December 31, 2018
	30-59 Days Past Due		60-89 Days Past Due		90 Days Or More Past Due(1)		Total Past Due		Current		Total Financing Receivables		Non-Accrual Loans(2)
Real estate:
1-4 family residential construction	$	—	$	—	$	—	$	—	$	105,676	$	105,676	$	—
Other construction/land		210		—		27		237		108,786		109,023		82
1-4 family - closed end		319		—		775		1,094		235,731		236,825		799
Equity lines		1,471		—		57		1,528		54,792		56,320		408
Multi-family residential		—		—		—		—		54,877		54,877		—
Commercial real estate - owner occupied		183		—		102		285		301,039		301,324		605
Commercial real estate - non-owner occupied		49		—		—		49		438,295		438,344		49
Farmland		1,555		—		—		1,555		149,986		151,541		1,642
Total real estate		3,787		—		961		4,748		1,449,182		1,453,930		3,585
Agricultural		—		—		—		—		49,103		49,103		—
Commercial and industrial		1,567		83		886		2,536		125,684		128,220		1,425
Mortgage warehouse lines		—		—		—		—		91,813		91,813		—
Consumer		95		45		56		196		8,666		8,862		146
Total gross loans and leases	$	5,449	$	128	$	1,903	$	7,480	$	1,724,448	$	1,731,928	$	5,156

(1) As of December 31, 2018 there were no loans over 90 days past due and still accruing.

(2) Included in total financing receivables

Troubled Debt Restructurings, by Type of Loan Modification

Troubled Debt Restructurings, by Type of Loan Modification

(dollars in thousands, unaudited)

	Three months ended September 30, 2019
	Rate Modification		Term Modification		Interest Only Modification		Rate & Term Modification		Total
Real estate:
Other construction/land	$	—	$	—	$	—	$	—	$	—
1-4 family - closed-end		—		—		—		—		—
Equity lines		—		—		—		—		—
Multi-family residential		—		—		—		—		—
Commercial real estate - owner occupied		—		—		—		—		—
Farmland		—		—		—		—		—
Total real estate loans		—		—		—		—		—
Agricultural		—		—		—		—		—
Commercial and industrial		—		233		—		—		233
Consumer loans		—		—		—		—		—
Total	$	—	$	233	$	—	$	—	$	233

	Three months ended September 30, 2018
	Rate Modification		Term Modification		Interest Only Modification		Rate & Term Modification		Total
Real estate:
Other construction/land	$	—	$	—	$	—	$	—	$	—
1-4 family - closed-end		—		—		—		—		—
Equity lines		—		97		—		—		97
Multi-family residential		—		—		—		—		—
Commercial real estate - owner occupied		—		—		—		—		—
Farmland		—		—		—		—		—
Total real estate loans		—		97		—		—		97
Agricultural		—		7		—		—		7
Commercial and industrial		—		10		—		—		10
Consumer loans		—		—		10		—		10
Total	$	—	$	114	$	10	$	—	$	124

Troubled Debt Restructurings, by Type of Loan Modification

(dollars in thousands, unaudited)

		Nine months ended September 30, 2019
	Rate Modification		Term Modification		Interest Only Modification		Rate & Term Modification		Total
Real estate:
Other construction/land	$	—	$	—	$	—	$	—	$	—
1-4 family - closed-end		—		—		—		—		—
Equity lines		—		344		—		—		344
Multi-family residential		—		—		—		—		—
Commercial real estate - owner occupied		—		—		—		—		—
Farmland		—		—		—		—		—
Total real estate loans		—		344		—		—		344
Agricultural		—		—		—		—		—
Commercial and industrial		94		255		—		52		401
Consumer loans		—		9		—		50		59
Total	$	94	$	608	$	—	$	102	$	804

		Nine months ended September 30, 2018
	Rate Modification		Term Modification		Interest Only Modification		Rate & Term Modification		Total
Real estate:
Other construction/land	$	—	$	—	$	—	$	—	$	—
1-4 family - closed-end		—		—		—		—		—
Equity lines		—		460		504		—		964
Multi-family residential		—		—		—		—		—
Commercial real estate - owner occupied		—		—		—		—		—
Farmland		—		—		—		—		—
Total real estate loans		—		460		504		—		964
Agricultural		—		7		—		—		7
Commercial and industrial		—		73		25		225		323
Consumer loans		—		—		10		—		10
Total	$	—	$	540	$	539	$	225	$	1,304

The following tables present, by class, additional details related to loans classified as TDRs during the referenced periods, including the recorded investment in the loan both before and after modification and balances that were modified during the period:

Troubled Debt Restructurings

(dollars in thousands, unaudited)

	Three months ended September 30, 2019
		Pre- Modification		Post- Modification
	Number of Loans	Outstanding Recorded Investment		Outstanding Recorded Investment		Reserve Difference⁽¹⁾		Reserve
Real estate:
Other construction/land	0	$	—	$	—	$	—	$	—
1-4 family - closed-end	0		—		—		—		—
Equity lines	0		—		—		—		—
Multi-family residential	0		—		—		—		—
Commercial real estate - owner occupied	0		—		—		—		—
Farmland	0		—		—		—		—
Total real estate loans			—		—		—		—
Agricultural	0		—		—		—		—
Commercial and industrial	3		233		233		(40)		9
Consumer loans	0		—		—		—		—
Total		$	233	$	233	$	(40)	$	9

(1) This represents the change in the ALLL reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology.

	Three months ended September 30, 2018
		Pre- Modification		Post- Modification
	Number of Loans	Outstanding Recorded Investment		Outstanding Recorded Investment		Reserve Difference⁽¹⁾		Reserve
Real estate:
Other construction/land	0	$	—	$	—	$	—	$	—
1-4 family - closed-end	0		—		—		—		—
Equity lines	1		97		97		—		3
Multi-family residential	0		—		—		—		—
Commercial real estate - owner occupied	0		—		—		—		—
Farmland	0		—		—		—		—
Total real estate loans			97		97		—		3
Agricultural	1		7		7		2		2
Commercial and industrial	1		10		10		—		1
Consumer loans	1		10		10		—		—
Total		$	124	$	124	$	2	$	6

(1) This represents the change in the ALLL reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology.

Troubled Debt Restructurings

(dollars in thousands, unaudited)

	Nine months ended September 30, 2019
		Pre- Modification		Post- Modification
	Number of Loans	Outstanding Recorded Investment		Outstanding Recorded Investment		Reserve Difference⁽¹⁾		Reserve
Real estate:
Other construction/land	0	$	—	$	—	$	—	$	—
1-4 family - closed-end	0		—		—		—		—
Equity lines	2		344		344		—		1
Multi-family residential	0		—		—		—		—
Commercial real estate - owner occupied	0		—		—		—		—
Farmland	0		—		—		—		—
Total real estate loans			344		344		—		1
Agricultural	0		—		—		—		—
Commercial and industrial	7		401		401		(59)		10
Consumer loans	2		59		59		(47)		2
Total		$	804	$	804	$	$(106)	$	13

(1) This represents the change in the ALLL reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology.

	Nine months ended September 30, 2018
		Pre- Modification		Post- Modification
	Number of Loans	Outstanding Recorded Investment		Outstanding Recorded Investment		Reserve Difference⁽¹⁾		Reserve
Real estate:
Other construction/land	0	$	—	$	—	$	—	$	—
1-4 family - closed-end	0		—		—		—		—
Equity lines	7		964		964		4		21
Multi-family residential	0		—		—		—		—
Commercial real estate - owner occupied	0		—		—		—		—
Farmland	0		—		—		—		—
Total real estate loans			964		964		4		21
Agricultural	0		7		7		2		2
Commercial and industrial	3		323		323		—		26
Consumer loans	0		10		10		—		—
Total		$	1,304	$	1,304	$	6	$	49

(1) This represents the change in the ALLL reserve for these credits measured as the difference between the specific post-modification impairment reserve and the pre-modification reserve calculated under our general allowance for loan loss methodology.

Schedule of Debtor Troubled Debt Restructuring, Subsequent Periods

The carrying amount and unpaid principal balance of those PCI loans was as follows, as of the dates indicated:

Purchased Credit Impaired Loans:

(dollars in thousands, unaudited)

	September 30, 2019
	Unpaid Principal Balance		Carrying Value
Real estate secured	$	91	$	—
Total purchased credit impaired loans	$	91	$	—

	December 31, 2018
	Unpaid Principal Balance		Carrying Value
Real estate secured	$	103	$	—
Total purchased credit impaired loans	$	103	$	—