Credit Quality and Nonperforming Assets (Tables)

3 Months Ended

Mar. 31, 2020

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)


	March 31, 2020
	Pass		Special Mention		Substandard		Impaired		Total
Real estate:
1-4 family residential construction	$	94,114	$	464	$	—	$	—	$	94,578
Other construction/land		87,861		2,219		—		522		90,602
1-4 family - closed end		182,832		3,523		169		3,110		189,634
Equity lines		42,010		2,084		61		4,381		48,536
Multi-family residential		57,891		—		—		347		58,238
Commercial real estate - owner occupied		293,360		3,936		3,109		2,529		302,934
Commercial real estate - non-owner occupied		471,003		747		568		2,608		474,926
Farmland		140,307		1,047		130		256		141,740
Total real estate		1,369,378		14,020		4,037		13,753		1,401,188

Agricultural		49,030		164		—		5		49,199
Commercial and industrial		97,081		12,994		510		1,405		111,990
Mortgage warehouse		228,608		—		—		—		228,608
Consumer loans		6,579		70		15		376		7,040
Total gross loans and leases	$	1,750,676	$	27,248	$	4,562	$	15,539	$	1,798,025


	December 31, 2019
	Pass		Special Mention		Substandard		Impaired		Total
Real estate:
1-4 family residential construction	$	105,979	$	—	$	—	$	—	$	105,979
Other construction/land		90,761		98		—		554		91,413
1-4 family - closed end		194,572		2,425		164		3,020		200,181
Equity lines		43,111		1,995		72		4,421		49,599
Multi-family residential		54,104		—		—		353		54,457
Commercial real estate - owner occupied		334,460		4,005		3,384		2,034		343,883
Commercial real estate - non-owner occupied		409,289		1,164		11		2,105		412,569
Farmland		142,594		1,048		132		259		144,033
Total real estate		1,374,870		10,735		3,763		12,746		1,402,114

Agricultural		47,814		217		—		5		48,036
Commercial and industrial		100,584		13,415		556		977		115,532
Mortgage warehouse		189,103		—		—		—		189,103
Consumer loans		7,245		85		25		425		7,780
Total gross loans and leases	$	1,719,616	$	24,452	$	4,344	$	14,153	$	1,762,565

Aging of Loan Balances by Number of Days Past Due


	March 31, 2020
	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	$	464	$	—	$	—	$	464	$	94,114	$	94,578	$	—
Other construction/land		—		—		—		—		90,602		90,602		10
1-4 family - closed end		2,349		14		783		3,146		186,488		189,634		866
Equity lines		122		—		141		263		48,273		48,536		535
Multi-family residential		—		—		—		—		58,238		58,238		—
Commercial real estate - owner occupied		196		—		837		1,033		301,901		302,934		1,941
Commercial real estate - non-owner occupied		633		—		2,127		2,760		472,166		474,926		2,608
Farmland		213		—		—		213		141,527		141,740		257
Total real estate		3,977		14		3,888		7,879		1,393,309		1,401,188		6,217

Agricultural		—		—		—		—		49,199		49,199		—
Commercial and industrial		617		358		195		1,170		110,820		111,990		1,116
Mortgage warehouse lines		—		—		—		—		228,608		228,608		—
Consumer		42		8		—		50		6,990		7,040		18
Total gross loans and leases	$	4,636	$	380	$	4,083	$	9,099	$	1,788,926	$	1,798,025	$	7,351

(1)

As of March 31, 2020 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, 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	$	—	$	—	$	—	$	—	$	105,979	$	105,979	$	—
Other construction/land		16		—		—		16		91,397		91,413		31
1-4 family - closed end		485		380		659		1,524		198,657		200,181		741
Equity lines		177		10		78		265		49,334		49,599		480
Multi-family residential		—		—		—		—		54,457		54,457		—
Commercial real estate - owner occupied		1,552		—		88		1,640		342,243		343,883		1,440
Commercial real estate - non-owner occupied		500		—		1,605		2,105		410,464		412,569		2,105
Farmland		—		—		—		—		144,033		144,033		258
Total real estate		2,730		390		2,430		5,550		1,396,564		1,402,114		5,055

Agricultural		—		—		—		—		48,036		48,036		—
Commercial and industrial		160		215		—		375		115,157		115,532		651
Mortgage warehouse lines		—		—		—		—		189,103		189,103		—
Consumer		55		12		2		69		7,711		7,780		31
Total gross loans and leases	$	2,945	$	617	$	2,432	$	5,994	$	1,756,571	$	1,762,565	$	5,737

(1)

As of December 31, 2019 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

(dollars in thousands, unaudited)


	Three months ended March 31, 2020
	Rate Modification		Term Modification		Interest Only Modification		Rate & Term Modification		Term & Interest Modification		Total
Real estate:
Other construction/land	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family - closed-end		—		—		—		—		—		—
Equity lines		—		—		—		—		—		—
Multi-family residential		—		—		—		—		—		—
Commercial real estate - owner occupied		—		—		—		—		86		86
Farmland		—		—		—		—		—		—
Total real estate loans		—		—		—		—		86		86
Agricultural		—		—		—		—		—		—
Commercial and industrial		—		—		—		—		—		—
Consumer loans		—		—		—		—		—		—
Total	$	—	$	—	$	—	$	—	$	86	$	86


	Three months ended March 31, 2019
	Rate Modification		Term Modification		Interest Only Modification		Rate & Term Modification		Term & Interest Modification		Total
Real estate:
Other construction/land	$	—	$	—	$	—	$	—	$	—	$	—
1-4 family - closed-end		—		—		—		—		—		—
Equity lines		—		100		—		—		—		100
Multi-family residential		—		—		—		—		—		—
Commercial real estate - owner occupied		—		—		—		—		—		—
Farmland		—		—		—		—		—		—
Total real estate loans		—		100		—		—		—		100
Agricultural		—		—		—		—		—		—
Commercial and industrial		94		—		—		—		—		94
Consumer loans		—		9		—		—		—		9
Total	$	94	$	109	$	—	$	—	$	—		203

Troubled Debt Restructurings

(dollars in thousands, unaudited)


	Three months ended March 31, 2020
		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	1		86		86		—		—
Farmland	0		—		—		—		—
Total real estate loans			86		86		—		—

Agricultural	0		—		—		—		—
Commercial and industrial	0		—		—		—		—
Consumer loans	0		—		—		—		—
Total		$	86	$	86	$	—	$	—

(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 March 31, 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	1		100		100		—		—
Multi-family residential	0		—		—		—		—
Commercial real estate - owner occupied	0		—		—		—		—
Farmland	0		—		—		—		—
Total real estate loans			100		100		—		—

Agricultural	0		—		—		—		—
Commercial and industrial	2		94		94		(20)		1
Consumer loans	1		9		9		(2)		—
Total		$	203	$	203	$	$(22)	$	1

(1)

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)


	December 31, 2019
	Unpaid Principal Balance		Carrying Value
Real estate secured	$	88	$	—
Total purchased credit impaired loans	$	—	$	—

March 31, 2020

Unpaid Principal Balance

Carrying Value

Real estate secured

Total purchased credit impaired loans