ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Mar. 31, 2018

ALLOWANCE FOR LOAN LOSSES

Allowance for loan losses on the basis of the Company’s impairment methodology

			Real Estate
	Commercial				Construction
	and		Commercial		and		1-4 family		Multi-family
(Dollars in thousands)	industrial		real estate		development		residential		residential		Consumer		Agriculture		Other		Total
March 31, 2018
Beginning balance	$	7,257	$	10,375	$	3,482	$	1,326	$	1,419	$	566	$	68	$	285	$	24,778
Provision (recapture) for loan loss		479		364		(126)		5		101		(51)		(15)		108		865
Charge-offs		(469)		—		—		(3)		—		—		—		—		(472)
Recoveries		172		3		—		1		—		2		—		—		178
Net (charge-offs) recoveries		(297)		3		—		(2)		—		2		—		—		(294)
Ending balance	$	7,439	$	10,742	$	3,356	$	1,329	$	1,520	$	517	$	53	$	393	$	25,349
Period-end amount allocated to:
Specific reserve	$	845	$	55	$	—	$	107	$	—	$	—	$	—	$	—	$	1,007
General reserve		6,594		10,687		3,356		1,222		1,520		517		53		393		24,342
Total	$	7,439	$	10,742	$	3,356	$	1,329	$	1,520	$	517	$	53	$	393	$	25,349

			Real Estate
	Commercial				Construction
	and		Commercial		and		1-4 family		Multi-family
(Dollars in thousands)	industrial		real estate		development		residential		residential		Consumer		Agriculture		Other		Total
December 31, 2017
Beginning balance	$	6,409	$	10,770	$	4,598	$	1,286	$	916	$	353	$	79	$	595	$	25,006
Provision (recapture) for loan loss		642		(284)		(1,116)		35		503		263		(63)		(318)		(338)
Charge-offs		(904)		(120)		—		(8)		—		(93)		—		—		(1,125)
Recoveries		1,110		9		—		13		—		43		52		8		1,235
Net (charge-offs) recoveries		206		(111)		—		5		—		(50)		52		8		110
Ending balance	$	7,257	$	10,375	$	3,482	$	1,326	$	1,419	$	566	$	68	$	285	$	24,778
Period-end amount allocated to:
Specific reserve	$	852	$	64	$	—	$	119	$	—	$	—	$	—	$	—	$	1,035
General reserve		6,405		10,311		3,482		1,207		1,419		566		68		285		23,743
Total	$	7,257	$	10,375	$	3,482	$	1,326	$	1,419	$	566	$	68	$	285	$	24,778

			Real Estate
	Commercial				Construction
	and		Commercial		and		1-4 family		Multi-family
(Dollars in thousands)	industrial		real estate		development		residential		residential		Consumer		Agriculture		Other		Total
March 31, 2017
Beginning balance	$	6,409	$	10,770	$	4,598	$	1,286	$	916	$	353	$	79	$	595	$	25,006
Provision (recapture) for loan loss		1,454		(266)		(453)		(177)		(116)		235		(16)		299		960
Charge-offs		(508)		—		—		—		—		—		—		—		(508)
Recoveries		391		3		—		2		—		27		—		—		423
Net (charge-offs) recoveries		(117)		3		—		2		—		27		—		—		(85)
Ending balance	$	7,746	$	10,507	$	4,145	$	1,111	$	800	$	615	$	63	$	894	$	25,881
Period-end amount allocated to:
Specific reserve	$	364	$	52	$	—	$	—	$	—	$	84	$	—	$	—	$	500
General reserve		7,382		10,455		4,145		1,111		800		531		63		894		25,381
Total	$	7,746	$	10,507	$	4,145	$	1,111	$	800	$	615	$	63	$	894	$	25,881

Presentation of risk grades and classified loans by loan class

			Special
(Dollars in thousands)	Pass		Mention		Substandard		Total Loans
March 31, 2018
Commercial and industrial	$	538,484	$	7,841	$	12,745	$	559,070
Real estate:
Commercial real estate		755,816		2,862		8,430		767,108
Construction and development		435,217		540		503		436,260
1-4 family residential		254,464		—		6,116		260,580
Multi-family residential		228,651		7,349		—		236,000
Consumer		40,565		246		58		40,869
Agriculture		8,776		—		31		8,807
Other		43,913		—		8,469		52,382
Total loans	$	2,305,886	$	18,838	$	36,352	$	2,361,076

			Special
(Dollars in thousands)	Pass		Mention		Substandard		Total Loans
December 31, 2017
Commercial and industrial	$	535,589	$	8,403	$	15,371	$	559,363
Real estate:
Commercial real estate		722,503		2,951		12,839		738,293
Construction and development		448,124		565		522		449,211
1-4 family residential		252,317		—		6,267		258,584
Multi-family residential		212,899		7,406		—		220,305
Consumer		40,144		246		43		40,433
Agriculture		11,223		—		33		11,256
Other		33,109		—		7,235		40,344
Total loans	$	2,255,908	$	19,571	$	42,310	$	2,317,789

Loan Impairment Assessment

	Unpaid		Recorded								Average
	contractual		investment		Recorded		Total				recorded
	principal		with no		investment		recorded		Related		investment
(Dollars in thousands)	balance		allowance		with allowance		investment		allowance		year-to-date
March 31, 2018
Commercial and industrial	$	11,390	$	4,693	$	2,169	$	6,862	$	845	$	7,072
Real estate:
Commercial real estate		7,006		4,279		2,523		6,802		55		6,902
Construction and development		282		234		—		234		—		238
1-4 family residential		4,833		2,878		1,862		4,740		107		4,802
Consumer		21		21		—		21		—		21
Other		8,387		8,387		—		8,387		—		8,077
Total loans	$	31,919	$	20,492	$	6,554	$	27,046	$	1,007	$	27,112

	Unpaid		Recorded								Average
	contractual		investment		Recorded		Total				recorded
	principal		with no		investment		recorded		Related		investment
(Dollars in thousands)	balance		allowance		with allowance		investment		allowance		year-to-date
December 31, 2017
Commercial and industrial	$	11,921	$	6,100	$	1,192	$	7,292	$	852	$	12,090
Real estate:
Commercial real estate		9,646		8,626		667		9,293		64		9,438
Construction and development		296		251		—		251		—		323
1-4 family residential		5,003		3,050		1,874		4,924		119		3,369
Multi-family residential		—		—		—		—		—		2
Consumer		—		—		—		—		—		21
Agriculture		—		—		—		—		—		1
Other		7,152		7,152		—		7,152		—		7,616
Total loans	$	34,018	$	25,179	$	3,733	$	28,912	$	1,035	$	32,860

	Unpaid		Recorded								Average
	contractual		investment		Recorded		Total				recorded
	principal		with no		investment		recorded		Related		investment
(Dollars in thousands)	balance		allowance		with allowance		investment		allowance		year-to-date
March 31, 2017
Commercial and industrial	$	15,821	$	9,340	$	2,475	$	11,815	$	364	$	12,090
Real estate:
Commercial real estate		6,564		4,504		1,866		6,370		52		6,408
Construction and development		405		414		—		414		—		430
1-4 family residential		1,503		1,427		—		1,427		—		1,524
Multi-family residential		10		5		—		5		—		5
Consumer		84		—		84		84		84		56
Agriculture		278		6		—		6		—		14
Other		8,673		8,670		—		8,670		—		8,481
Total loans	$	33,338	$	24,366	$	4,425	$	28,791	$	500	$	29,008

Allowance for loan losses on the basis of the Company’s impairment methodology

	March 31, 2018						December 31, 2017
	Individually		Collectively				Individually		Collectively
	Evaluated for		Evaluated for		Total		Evaluated for		Evaluated for		Total
(Dollars in thousands)	Impairment		Impairment			Loans	Impairment		Impairment		Loans
Commercial and industrial	$	6,862	$	552,208	$	559,070	$	7,292	$	552,071	$	559,363
Real estate:
Commercial real estate		6,802		760,306		767,108		9,293		729,000		738,293
Construction and development		234		436,026		436,260		251		448,960		449,211
1-4 family residential		4,740		255,840		260,580		4,924		253,660		258,584
Multi-family residential		—		236,000		236,000		—		220,305		220,305
Consumer		21		40,848		40,869		—		40,433		40,433
Agriculture		—		8,807		8,807		—		11,256		11,256
Other		8,387		43,995		52,382		7,152		33,192		40,344
Total	$	27,046	$	2,334,030	$	2,361,076	$	28,912	$	2,288,877	$	2,317,789