Credit Quality and Nonperforming Assets (Tables)

6 Months Ended

Jun. 30, 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)


	June 30, 2020
	Pass		Special Mention		Substandard		Impaired		Total
Real estate:
1-4 family residential construction	$	89,225	$	—	$	—	$	—	$	89,225
Other construction/land		87,747		2,227		—		571		90,545
1-4 family - closed end		172,085		1,635		146		4,205		178,071
Equity lines		38,147		1,955		60		4,156		44,318
Multi-family residential		55,577		—		—		344		55,921
Commercial real estate - owner occupied		304,684		3,444		3,068		2,667		313,863
Commercial real estate - non-owner occupied		689,589		511		565		627		691,292
Farmland		132,584		1,040		128		702		134,454
Total real estate		1,569,638		10,812		3,967		13,272		1,597,689

Agricultural		48,356		159		—		2		48,516
Commercial and industrial		208,434		11,213		471		1,383		221,502
Mortgage warehouse		338,124		—		—		—		338,124
Consumer loans		5,834		54		34		344		6,266
Total gross loans and leases	$	2,170,386	$	22,238	$	4,472	$	15,001	$	2,212,097


	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


	June 30, 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	$	—	$	—	$	—	$	—	$	89,225	$	89,225	$	—
Other construction/land		—		—		—		—		90,545		90,545		4
1-4 family - closed end		11		684		409		1,104		176,967		178,071		843
Equity lines		84		1,120		349		1,553		42,765		44,318		626
Multi-family residential		—		—		—		—		55,921		55,921		—
Commercial real estate - owner occupied		—		—		989		989		312,874		313,863		1,909
Commercial real estate - non-owner occupied		—		—		628		628		690,664		691,292		627
Farmland		128		—		684		812		133,642		134,454		702
Total real estate		223		1,804		3,059		5,086		1,592,603		1,597,689		4,711

Agricultural		—		—		—		—		48,516		48,516		—
Commercial and industrial		337		16		772		1,125		220,377		221,502		1,086
Mortgage warehouse lines		—		—		—		—		338,124		338,124		—
Consumer		4		32		—		36		6,230		6,266		11
Total gross loans and leases	$	564	$	1,852	$	3,831	$	6,247	$	2,205,850	$	2,212,097	$	5,808

(1)	As of June 30, 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

Troubled Debt Restructurings, by Type of Loan Modification

(dollars in thousands, unaudited)


	Three months ended June 30, 2020
	Rate Modification		Term Modification		Interest Only Modification		Rate & Term Modification		Term & Interest Modification		Total
Real estate:
Other construction/land	$	—	$	85	$	—	$	—	$	—	$	85
1-4 family - closed-end		—		1,325		—		—		—		1,325
Equity lines		—		—		—		—		—		—
Multi-family residential		—		—		—		—		—		—
Commercial real estate - owner occupied		—		178		—		—		—		178
Farmland		—		—		—		—		—		—
Total real estate loans		—		1,588		—		—		—		1,588
Agricultural		—		—		—		—		—		—
Commercial and industrial		—		28		—		—		—		28
Consumer loans		—		—		—		—		—		—
Total	$	—	$	1,616	$	—	$	—	$	—	$	1,616


	Three months ended June 30, 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		—		244		—		—		—		244
Multi-family residential		—		—		—		—		—		—
Commercial real estate - owner occupied		—		—		—		—		—		—
Farmland		—		—		—		—		—		—
Total real estate loans		—		244		—		—		—		244
Agricultural		—		—		—		—		—		—
Commercial and industrial		—		22		—		52		—		74
Consumer loans		—		—		—		50		—		50
Total	$	—	$	266	$	—	$	102	$	—	$	368

Troubled Debt Restructurings, by Type of Loan Modification

(dollars in thousands, unaudited)


		Six months ended June 30, 2020
	Rate Modification		Term Modification		Interest Only Modification		Rate & Term Modification		Term & Interest Modification		Total
Real estate:											$
Other construction/land	$	—	$	85	$	—	$	—	$	—		85
1-4 family - closed-end		—		1,325		—		—		—		1,325
Equity lines		—		—		—		—		—		—
Multi-family residential		—		—		—		—		—		—
Commercial real estate - owner occupied		—		178		—		—		338		516
Farmland		—		—		—		—		—		—
Total real estate loans		—		1,588		—		—		338		1,926
Agricultural		—		—		—		—				—
Commercial and industrial		—		28		—		—		—		28
Consumer loans		—		—		—		—		—		—
Total	$	—	$	1,616	$	—	$	—	$	338	$	1,954


		Six months ended June 30, 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		—		344		—		—		—		344
Multi-family residential		—		—		—		—		—		—
Commercial real estate - owner occupied		—		—		—		—		—		—
Farmland		—		—		—		—		—		—
Total real estate loans		—		344		—		—		—		344
Agricultural		—		—		—		—				—
Commercial and industrial		94		22		—		52		—		168
Consumer loans		—		9		—		50		—		59
Total	$	94	$	375	$	—	$	102	$	—	$	571

Troubled Debt Restructurings

(dollars in thousands, unaudited)


	Three months ended June 30, 2020
		Pre- Modification		Post- Modification
	Number of Loans	Outstanding Recorded Investment		Outstanding Recorded Investment		Reserve Difference⁽¹⁾		Reserve
Real estate:
Other construction/land	1	$	86	$	85	$	40	$	41
1-4 family - closed-end	1		1,325		1,325		10		17
Equity lines	0		—		—		—		—
Multi-family residential	0		—		—		—		—
Commercial real estate - owner occupied	1		178		178		8		9
Farmland	0		—		—		—		—
Total real estate loans			1,589		1,588		58		67

Agricultural	0		—		—		—		—
Commercial and industrial	1		28		28		1		2
Consumer loans	0		—		—		—		—
Total		$	1,617	$	1,616	$	59	$	69

(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 June 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	1		244		244		—		1
Multi-family residential	0		—		—		—		—
Commercial real estate - owner occupied	0		—		—		—		—
Farmland	0		—		—		—		—
Total real estate loans			244		244		—		1

Agricultural	0		—		—		—		—
Commercial and industrial	2		74		74		—		45
Consumer loans	1		50		50		(45)		2
Total		$	368	$	368	$	$(45)	$	48

(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)


	Six months ended June 30, 2020
		Pre- Modification		Post- Modification
	Number of Loans	Outstanding Recorded Investment		Outstanding Recorded Investment		Reserve Difference⁽¹⁾		Reserve
Real estate:
Other construction/land	1	$	86	$	85	$	40	$	41
1-4 family - closed-end	1		1,325		1,325		10		17
Equity lines	0		`		—		—		—
Multi-family residential	0		—		—		—		—
Commercial real estate - owner occupied	2		516		516		8		9
Farmland	0		—		—		—		—
Total real estate loans			1,927		1,926		58		67

Agricultural	0		—		—		—		—
Commercial and industrial	1		28		28		1		2
Consumer loans	0		—		—		—		—
Total		$	1,955	$	1,954	$	59	$	69

(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.


	Six months ended June 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	4		168		168		(20)		46
Consumer loans	2		59		59		(47)		3
Total		$	571	$	571	$	$(67)	$	50

(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

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	$	—	$	—

June 30, 2020

Unpaid Principal Balance

Carrying Value

Real estate secured

Total purchased credit impaired loans