XML 100 R13.htm IDEA: XBRL DOCUMENT v3.20.1
LOANS
 12 Months Ended
Dec. 31, 2019
Receivables [Abstract]  
LOANS

NOTE 6 LOANS

 

Loans receivable outstanding at December 31, are summarized as follows: 

         
(Dollars are in thousands)   2019   2018
Real estate secured:                
Commercial   $ 170,436     $ 140,862  
Construction and land development     31,130       35,119  
Residential 1-4 family     242,922       249,946  
Multifamily     13,638       13,496  
Farmland     20,790       22,114  
Total real estate loans     478,916       461,537  
Commercial     53,994       55,157  
Agriculture     4,797       5,266  
Consumer installment loans     23,127       24,538  
All other loans     1,710       598  
Total loans   $ 562,544     $ 547,096  

  

Loans receivable on nonaccrual status at December 31, are summarized as follows:

 

(Dollars are in thousands)   2019   2018
Real estate secured:                
Commercial   $ 1,601     $ 784  
Construction and land development     45       157  
Residential 1-4 family     2,544       3,626  
Multifamily     —         76  
Farmland     531       1,657  
Total real estate loans     4,721       6,300  
Commercial     390       61  
Consumer installment and other loans     45       8  
Total loans receivable on nonaccrual status   $ 5,156     $ 6,369  

 

Total interest income not recognized on nonaccrual loans for 2019 and 2018 was $714 thousand and $500 thousand, respectively. In 2019, $4.4 million of non-performing and under-performing real estate loans were sold resulting in $113 thousand of charge-offs and $57 thousand of recoveries processed through the allowance for loan losses. In 2018, four nonperforming or under performing loans totaling $1.9 million were sold to further reduce the level of nonaccrual loans with proceeds of $1.5 million received. Charge offs of $365 thousand associated with these accounts were realized and fully absorbed by the allowance for loan losses during 2018.

 

The following table presents information concerning the Company’s investment in loans considered impaired as of December 31, 2019 and December 31, 2018:

 

 As of December 31, 2019 

(Dollars are in thousands) 

   Average
Recorded
Investment		   Interest
Income
Recognized		   Recorded
Investment		   Unpaid Principal Balance   Related
Allowance
With no related allowance recorded:                                        
Real estate secured:                                        
Commercial   $ 2,017     $ 100     $ 2,416     $ 2,478     $ -  
Construction and land development     91       7       70       346       -  
Residential 1-4 family     1,944       55       1,263       1,460       -  
Multifamily     29       1       -       -       -  
Farmland     1,143       47       778       970       -  
Commercial     578       11       128       178       -  
Agriculture     -       -       -       1       -  
Consumer installment loans     2       -       -       -       -  
All other loans     -       -       -       -       -  
With an allowance recorded:                                        
Real estate secured:                                        
Commercial     470       1       363       379       70  
Construction and land development     -       -       -       -       -  
Residential 1-4 family     302       -       55       60       44  
Multifamily     -       -       -       -       -  
Farmland     221       11       216       228       9  
Commercial     507       7       286       886       200  
Agriculture     -       -       -       -       -  
Consumer installment loans     3       -       -       -       -  
All other loans     -       -       -       -       -  
Total   $ 7,307     $ 240     $ 5,575     $ 6,986     $ 323  

  

 

 As of December 31, 2018 

(Dollars are in thousands) 

   Average
Recorded
Investment		   Interest
Income
Recognized		   Recorded
Investment		   Unpaid Principal Balance   Related
Allowance
With no related allowance recorded:                                        
Real estate secured:                                        
Commercial   $ 2,556     $ 95     $ 1,887     $ 1,941     $ -  
Construction and land development     199       1       114       379       -  
Residential 1-4 family     3,159       175       2,880       3,168       -  
Multifamily     146       6       75       117       -  
Farmland     1,551       54       1,693       1,880       -  
Commercial     132       1       -       -       -  
Agriculture     3       -       -       -       -  
Consumer installment loans     2       -       -       -       -  
All other loans     -       -       -       -       -  
With an allowance recorded:                                        
Real estate secured:                                        
Commercial     1,214       16       435       539       40  
Construction and land development     -       -       -       -       -  
Residential 1-4 family     399       16       431       454       132  
Multifamily     -       -       -       -       -  
Farmland     361       -       345       358       132  
Commercial     256       3       109       109       13  
Agriculture     -       -       -       -       -  
Consumer installment loans     6       1       7       7       1  
All other loans     -       -       -       -       -  
Total   $ 9,984     $ 368     $ 7,976     $ 8,952     $ 318  

  

An age analysis of past due loans receivable is below. At December 31, 2019 and 2018, there were no loans over 90 days past due that were accruing.

 

As of December 31, 2019 

(Dollars are in thousands) 

   Loans
30-59
Days
Past
Due		   Loans
60-89
Days
Past
Due		   Loans
90 or
More
Days
Past
Due		   Total
Past
Due
Loans		   Current
Loans		   Total
Loans
Real estate secured:                                                
Commercial   $ 502     $ 125     $ 262     $ 889     $ 169,547     $ 170,436  
Construction and land
development		     50       18       18       86       31,044       31,130  
Residential 1-4 family     3,700       1,096       710       5,506       237,416       242,922  
Multifamily     262       -       -       262       13,376       13,638  
Farmland     111       47       152       310       20,480       20,790  
Total real estate loans     4,625       1,286       1,142       7,053       471,863       485,916  
Commercial     406       -       323       729       53,265       53,994  
Agriculture     244       -       21       265       4,532       4,797  
Consumer installment
Loans		     98       24       23       145       22,982       23,127  
All other loans     -       -       -       -       1,710       1,710  
Total loans   $ 5,373     $ 1,310     $ 1,509     $ 8,192     $ 554,352     $ 562,544  

  

 

 

 

As of December 31, 2018 

(Dollars are in thousands) 

   Loans
30-59
Days
Past
Due		   Loans
60-89
Days
Past
Due		   Loans
90 or
More
Days
Past
Due		   Total
Past
Due
Loans		   Current
Loans		   Total
Loans
Real estate secured:                                                
Commercial   $ 80     $ 31     $ 137     $ 248     $ 140,614     $ 140,862  
Construction and land
development		     70       -       27       97       35,022       35,119  
Residential 1-4 family     3,468       564       525       4,557       245,389       249,946  
Multifamily     -       273       —         273       13,223       13,496  
Farmland     316       —         1090       1,406       20,708       22,114  
Total real estate loans     3,934       868       1,779       6,581       454,956       461,537  
Commercial     68       -       61       129       55,028       55,157  
Agriculture     22       -       -       22       5,244       5,266  
Consumer installment
Loans		     74       15       -       89       24,449       24,538  
All other loans     -       —         -       -       598       598  
Total loans   $ 4,098     $ 883     $ 1,840     $ 6,821     $ 540,275     $ 547,096  

 

The Company categorizes loans receivable into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans receivable as to credit risk. The Company uses the following definitions for risk ratings:

 

Pass - Loans in this category are considered to have a low likelihood of loss based on relevant information analyzed about the ability of the borrowers to service their debt and other factors. 

 

Special Mention - Loans in this category are currently protected but are potentially weak, including adverse trends in borrower’s operations, credit quality or financial strength. Those loans constitute an undue and unwarranted credit risk but not to the point of justifying a substandard classification. The credit risk may be relatively minor yet constitute an unwarranted risk in light of the circumstances.  Special mention loans have potential weaknesses which may, if not checked or corrected, weaken the loan or inadequately protect the Company’s credit position at some future date. 

 

Substandard - A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

 

Doubtful - Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. There was one loan categorized as doubtful at December 31, 2019 and none at December 31, 2018.

 

Based on the most recent analysis performed, the risk category of loans receivable was as follows:

 

 As of December 31, 2019 

(Dollars are in thousands) 

   Pass   Special
Mention		   Substandard   Doubtful   Total
Real estate secured:                                        
Commercial   $ 165,570     $ 3,265     $ 1,601     $ -     $ 170,436  
Construction and land development     30,747       360       23       -       31,130  
Residential 1-4 family     239,210       1,207       2,505       -       242,922  
Multifamily     13,638       -       -       -       13,638  
Farmland     18,779       1,480       531       -       20,790  
Total real estate loans     467,944       6,312       4,660       -       478,916  
Commercial     51,086       2,504       118       286       53,994  
Agriculture     4,753       4       40       -       4,797  
Consumer installment loans     23,087       12       28       -       23,127  
All other loans     1,710       -       -       -       1,710  
Total   $ 548,580     $ 8,832     $ 4,846     $ 286     $ 562,544  

  

As of December 31, 2018

(Dollars are in thousands) 

   Pass   Special
Mention		   Substandard   Doubtful   Total
Real estate secured:                                        
Commercial   $ 137,146     $ 2,890     $ 826     $ -     $ 140,862  
Construction and land development     34,231       718       170       -       35,119  
Residential 1-4 family     243,950       1,523       4,473       -       249,946  
Multifamily     13,357       63       76       -       13,496  
Farmland     18,126       2,331       1,657       -       22,114  
Total real estate loans     446,810       7,525       7,202       -       461,537  
Commercial     52,156       2,940       61       -       55,157  
Agriculture     5,255       10       1       -       5,266  
Consumer installment loans     24,493       35       10       -       24,538  
All other loans     598       -       -       -       598  
Total   $ 529,312     $ 10,510     $ 7,274     $ -     $ 547,096