LOANS AND ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Dec. 31, 2019

Loans and Allowance for Loan Losses [Abstract]

Schedule of loans, net of unearned income

Loans, net of deferred fees, consist of the following at year end (in thousands):

	December 31, 2019		December 31, 2018
Loans secured by real estate:
Commercial real estate - owner occupied	$	414,479	$	407,031
Commercial real estate - non-owner occupied		559,195		540,698
Secured by farmland		17,622		20,966
Construction and land loans		150,750		146,654
Residential 1-4 family (1)		604,777		565,083
Multi- family residential		82,055		82,516
Home equity lines of credit (1)		109,006		128,225
Total real estate loans		1,937,884		1,891,173
Commercial loans		221,447		255,441
Consumer loans		26,304		32,347
Subtotal		2,185,635		2,178,961
Plus (less) deferred costs (fees) on loans		412		(137)
Loans, net of deferred fees	$	2,186,047	$	2,178,824

(1) Includes $13.5 million and $18.3 million of loans as of December 31, 2019 and 2018, respectively, acquired in the GAB transaction covered under an FDIC loss-share agreement. The agreement covering single family loans expired on December 31, 2019.

Schedule of summary of impaired loans

Impaired loans for the portfolio were as follows (in thousands):

	Total Loans
			Unpaid
	Recorded		Principal		Related
December 31, 2019	Investment (1)		Balance		Allowance
With no related allowance recorded
Commercial real estate - owner occupied	$	6,890	$	8,530	$	—
Commercial real estate - non-owner occupied (2)		3,120		3,363		—
Construction and land development		345		747		—
Commercial loans		5,049		8,490		—
Residential 1-4 family (3)		1,021		2,719		—
Other consumer loans		—		—		—
Total	$	16,425	$	23,849	$	—
With an allowance recorded
Commercial real estate - owner occupied	$	—	$	—	$	—
Commercial real estate - non-owner occupied (2)		176		281		1
Construction and land development		—		—		—
Commercial loans		2,498		2,533		957
Residential 1-4 family (3)		2,841		3,243		92
Other consumer loans		39		39		1
Total	$	5,554	$	6,096	$	1,051
Grand total	$	21,979	$	29,945	$	1,051

(1) Recorded investment is after cumulative prior charge offs of $1.5 million. These loans also have aggregate SBA guarantees of $4.4 million.

(2) Includes loans secured by farmland and multi-family residential loans.

(3) Includes home equity lines of credit.

	Total Loans
			Unpaid
	Recorded		Principal		Related
December 31, 2018	Investment (1)		Balance		Allowance
With no related allowance recorded
Commercial real estate - owner occupied	$	2,795	$	4,777	$	—
Commercial real estate - non-owner occupied (2)		171		333		—
Construction and land development		—		336		—
Commercial loans		3,450		6,013		—
Residential 1-4 family (3)		1,591		5,911		—
Other consumer loans		—		—		—
Total	$	8,007	$	17,370	$	—
With an allowance recorded
Commercial real estate - owner occupied	$	—	$	—	$	—
Commercial real estate - non-owner occupied (2)		—		—		—
Construction and land development		—		—		—
Commercial loans		2,626		3,276		612
Residential 1-4 family (3)		1,429		1,476		6
Other consumer loans		—		—		—
Total	$	4,055	$	4,752	$	618
Grand total	$	12,062	$	22,122	$	618

(1) Recorded investment is after cumulative prior charge offs of $1.5 million. These loans also have aggregate SBA guarantees of $3.4 million.

(2) Includes loans secured by farmland and multi-family residential loans.

(3) Includes home equity lines of credit.

Schedule of details of average recorded investment and interest income for impaired loans recognized by class of loans

The following tables present the average recorded investment and interest income recognized for impaired loans recognized by class of loans for the years ended December 31, 2019, 2018 and 2017 (in thousands):

	Total Loans
	Average		Interest
	Recorded		Income
Year Ended December 31, 2019	Investment		Recognized
With no related allowance recorded
Commercial real estate - owner occupied	$	7,387	$	453
Commercial real estate - non-owner occupied (1)		3,205		191
Construction and land development		398		57
Commercial loans		5,254		214
Residential 1-4 family (2)		1,061		149
Other consumer loans		—		—
Total	$	17,305	$	1,064
With an allowance recorded
Commercial real estate - owner occupied	$	—	$	—
Commercial real estate - non-owner occupied (1)		182		19
Construction and land development		—		—
Commercial loans		3,027		176
Residential 1-4 family (2)		2,944		111
Other consumer loans		39		—
Total	$	6,192	$	306
Grand total	$	23,497	$	1,370

(1) Includes loans secured by farmland and multi-family residential loans.

(2) Includes home equity lines of credit.

	Total Loans
	Average		Interest
	Recorded		Income
Year Ended December 31, 2018	Investment		Recognized
With no related allowance recorded
Commercial real estate - owner occupied	$	2,780	$	179
Commercial real estate - non-owner occupied (1)		169		22
Construction and land development		—		—
Commercial loans		3,319		92
Residential 1-4 family (2)		1,582		125
Other consumer loans		—		—
Total	$	7,850	$	418
With an allowance recorded
Commercial real estate - owner occupied	$	—	$	—
Commercial real estate - non-owner occupied (1)		—		—
Construction and land development		—		—
Commercial loans		2,530		200
Residential 1-4 family (2)		1,422		67
Other consumer loans		—		—
Total	$	3,952	$	267
Grand total	$	11,802	$	685

(1) Includes loans secured by farmland and multi-family residential loans.

(2) Includes home equity lines of credit.

	Total Loans
	Average		Interest
	Recorded		Income
For the Year Ended December 31, 2017	Investment		Recognized
With no related allowance recorded
Commercial real estate - owner occupied	$	875	$	34
Commercial real estate - non-owner occupied (1)		890		56
Construction and land development		9,942		139
Commercial loans		12,655		485
Residential 1-4 family (2)		3,398		91
Other consumer loans		—		—
Total	$	27,760	$	805
With an allowance recorded
Commercial real estate - owner occupied	$	—	$	—
Commercial real estate - non-owner occupied (1)		—		—
Construction and land development		—		—
Commercial loans		—		—
Residential 1-4 family (2)		—		—
Other consumer loans		—		—
Total	$	—	$	—
Grand total	$	27,760	$	805

(1) Includes loans secured by farmland and multi-family residential loans.

(2) Includes home equity lines of credit.

Schedule of details of aging of the recorded investment in past due loans by class of loans

The following tables present the aging of the recorded investment in past due loans by class of loans as of December 31, 2019 and 2018 (in thousands):

	30 - 59		60 - 89		90
	Days		Days		Days		Total		Nonaccrual		Loans Not		Total
December 31, 2019	Past Due		Past Due		or More		Past Due		Loans		Past Due		Loans
Total loans:
Commercial real estate - owner occupied	$	813	$	—	$	—	$	813	$	—	$	413,666	$	414,479
Commercial real estate - non-owner occupied (1)		936		—		—		936		—		657,936		658,872
Construction and land development		746		275		—		1,021		—		149,729		150,750
Commercial loans		234		62		—		296		6,337		214,814		221,447
Residential 1-4 family (2)		4,060		—		—		4,060		2,524		707,199		713,783
Other consumer loans		107		—		—		107		39		26,158		26,304
Total	$	6,896	$	337	$	—	$	7,233	$	8,900	$	2,169,502	$	2,185,635

	30 - 59		60 - 89		90
	Days		Days		Days		Total		Nonaccrual		Loans Not		Total
December 31, 2018	Past Due		Past Due		or More		Past Due		Loans		Past Due		Loans
Total loans:
Commercial real estate - owner occupied	$	577	$	344	$	—	$	921	$	1,284	$	404,826	$	407,031
Commercial real estate - non-owner occupied (1)		581		617		—		1,198		—		642,982		644,180
Construction and land development		851		—		—		851		—		145,803		146,654
Commercial loans		319		168		—		487		3,391		251,563		255,441
Residential 1-4 family (2)		5,523		197		—		5,720		2,055		685,533		693,308
Other consumer loans		142		18		—		160		—		32,187		32,347
Total	$	7,993	$	1,344	$	—	$	9,337	$	6,730	$	2,162,894	$	2,178,961

(1) Includes loans secured by farmland and multi-family residential loans.

(2) Includes home equity lines of credit.

Schedule of Activity for Loan and Lease Losses By Class of Loan

Activity in the allowance for loan and lease losses by class of loan for the years ended December 31, 2019, 2018 and 2017 is summarized below (in thousands):

	Commercial		Commercial
	Real Estate		Real Estate		Construction						Other
	Owner		Non-owner		and Land		Commercial		1-4 Family		Consumer
Year Ended December 31, 2019	Occupied		Occupied (1)		Development		Loans		Residential (2)		Loans		Unallocated		Total
Allowance for loan losses:
Beginning balance	$	802	$	1,669	$	821	$	7,097	$	1,106	$	224	$	564	$	12,283
Provision (recovery) for non-purchased loans		587		904		(138)		(1,708)		596		199		(390)		50
Provision for purchase credit impaired loans		—		—		—		300		—		—		—		300
Total provision (recovery)		587		904		(138)		(1,408)		596		199		(390)		350
Charge offs		(782)		(863)		—		(622)		(742)		(269)		—		(3,278)
Recoveries		203		10		—		351		306		36		—		906
Ending balance	$	810	$	1,720	$	683	$	5,418	$	1,266	$	190	$	174	$	10,261
Year Ended December 31, 2018
Allowance for loan losses:
Beginning balance	$	690	$	1,321	$	692	$	4,496	$	1,586	$	612	$	—	$	9,397
Provision (recovery) for non-purchased loans		497		348		129		1,941		237		(116)		564		3,600
Provision for purchase credit impaired loans		—		—		—		600		—		—		—		600
Total provision (recovery)		497		348		129		2,541		237		(116)		564		4,200
Charge offs		(400)		—		—		(1,566)		(842)		(290)		—		(3,098)
Recoveries		15		—		—		1,626		125		18		—		1,784
Ending balance	$	802	$	1,669	$	821	$	7,097	$	1,106	$	224	$	564	$	12,283
Year ended December 31, 2017
Allowance for loan losses:
Beginning balance	$	905	$	1,484	$	752	$	3,366	$	1,279	$	78	$	746	$	8,610
Provision (recovery)		(347)		(362)		(61)		8,842		659		640		(746)		8,625
Charge offs		—		(100)		—		(8,250)		(369)		(110)		—		(8,829)
Recoveries		132		299		1		538		17		4		—		991
Ending balance	$	690	$	1,321	$	692	$	4,496	$	1,586	$	612	$	—	$	9,397

(1) Includes loans secured by farmland and multi-family residential loans.

(2) Includes home equity lines of credit.

Schedule of allowance for loan losses and the recorded investment by portfolio segment

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 and 2018 (in thousands):

	Commercial		Commercial
	Real Estate		Real Estate		Construction						Other
	Owner		Non-owner		and Land		Commercial		1-4 Family		Consumer
December 31, 2019	Occupied		Occupied (1)		Development		Loans		Residential (2)		Loans		Unallocated		Total
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	957	$	85	$	—	$	—	$	1,042
Collectively evaluated for impairment		810		1,720		683		4,461		1,181		190		174		9,219
Total ending allowance	$	810	$	1,720	$	683	$	5,418	$	1,266	$	190	$	174	$	10,261
Loans:
Individually evaluated for impairment	$	6,890	$	3,120	$	345	$	7,544	$	1,443	$	—	$	—	$	19,342
Collectively evaluated for impairment		407,589		655,752		150,405		213,903		712,340		26,304		—		2,166,293
Total ending loan balances	$	414,479	$	658,872	$	150,750	$	221,447	$	713,783	$	26,304	$	—	$	2,185,635
December 31, 2018
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	600	$	—	$	—	$	—	$	600
Collectively evaluated for impairment		802		1,669		821		6,497		1,106		224		564		11,683
Total ending allowance	$	802	$	1,669	$	821	$	7,097	$	1,106	$	224	$	564	$	12,283
Loans:
Individually evaluated for impairment	$	2,795	$	171	$	—	$	6,076	$	1,591	$	—	$	—	$	10,633
Collectively evaluated for impairment		404,236		644,009		146,654		249,365		691,717		32,347		—		2,168,328
Total ending loan balances	$	407,031	$	644,180	$	146,654	$	255,441	$	693,308	$	32,347	$	—	$	2,178,961

(1) Includes loans secured by farmland and multi-family residential loans.

(2) Includes home equity lines of credit.

Schedule of the risk category of loans by class of loans

As of December 31, 2019 and 2018, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows (in thousands):

	Total Loans
	Special
December 31, 2019	Mention		Substandard (3)		Pass		Total
Commercial real estate - owner occupied	$	3,821	$	3,975	$	406,683	$	414,479
Commercial real estate - non-owner occupied (1)		4,193		176		654,503		658,872
Construction and land development		—		690		150,060		150,750
Commercial loans		3,432		4,462		213,553		221,447
Residential 1-4 family (2)		666		1,194		711,923		713,783
Other consumer loans		122		—		26,182		26,304
Total	$	12,234	$	10,497	$	2,162,904	$	2,185,635

	Total Loans
	Special
December 31, 2018	Mention		Substandard (3)		Pass		Total
Commercial real estate - owner occupied	$	6,611	$	2,810	$	397,610	$	407,031
Commercial real estate - non-owner occupied (1)		4,382		189		639,609		644,180
Construction and land development		—		—		146,654		146,654
Commercial loans		2,373		2,689		250,379		255,441
Residential 1-4 family (2)		395		1,982		690,931		693,308
Other consumer loans		142		—		32,205		32,347
Total	$	13,903	$	7,670	$	2,157,388	$	2,178,961

(1) Includes loans secured by farmland and multi-family residential loans.

(2) Includes home equity lines of credit.

(3) Includes SBA guarantees of $4.1 million and $3.4 million as of December 31, 2019 and 2018, respectively.

Schedule of carrying amount of covered purchased impaired and non-impaired loans

The following table presents the carrying amount of purchased impaired and non-impaired loans from the acquisitions as of December 31, 2019 and 2018 (in thousands):

	December 31, 2019						December 31, 2018
	Purchased		Purchased				Purchased		Purchased
	Impaired		Non-impaired				Impaired		Non-impaired
	Loans		Loans		Total		Loans		Loans		Total
Commercial real estate (1)	$	3,978	$	307,289	$	311,267	$	4,387	$	379,889	$	384,276
Construction and land development		26		21,111		21,137		358		47,466		47,824
Commercial loans		2,354		34,729		37,083		3,050		71,146		74,196
Residential 1-4 family (2)		2,841		232,887		235,728		3,654		275,527		279,181
Other consumer loans		—		15,153		15,153		—		21,731		21,731
Total	$	9,199	$	611,169	$	620,368	$	11,449	$	795,759	$	807,208

(1) Includes owner occupied and non-owner occupied as well as loans secured by farmland and multi-family residential loans.

(2) Includes home equity lines of credit.

Changes in Carrying Amount and Accretable Yield for Purchased Impaired and Nonimpaired Loans

Changes in the carrying amount and accretable yield for purchased impaired and non-impaired loans from the acquisitions were as follows for the years ended December 31, 2019 and 2018 (in thousands):

	December 31, 2019								December 31, 2018
	Purchased Impaired				Purchased Non-impaired				Purchased Impaired				Purchased Non-impaired
			Carrying				Carrying				Carrying				Carrying
	Accretable		Amount		Accretable		Amount		Accretable		Amount		Accretable		Amount
	Yield		of Loans		Discount		of Loans		Yield		of Loans		Discount		of Loans
Balance at beginning of the period	$	174	$	11,449	$	13,474	$	795,759	$	315	$	13,614	$	17,460	$	1,011,801
Additions		—		—		—		—		—		—		—		—
Accretion		(72)		72		(3,549)		3,549		(141)		141		(4,196)		4,196
Reclassifications from nonaccretable balance		—		—		—		—		—		—		210		—
Adjustment-transfer to OREO		—		—		—		—		—		—		—		—
Payments received		—		(2,322)		—		(188,139)		—		(2,306)		—		(220,238)
Balance at end of the period	$	102	$	9,199	$	9,925	$	611,169	$	174	$	11,449	$	13,474	$	795,759