ALLOWANCE FOR LOAN LOSSES (Tables)

9 Months Ended

Sep. 30, 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
September 30, 2018
Beginning balance	$	7,257	$	10,375	$	3,482	$	1,326	$	1,419	$	566	$	68	$	285	$	24,778
Provision (recapture) for loan loss		2,218		(3,467)		124		1,126		211		(173)		3		371		413
Charge-offs		(1,136)		(9)		—		(3)		—		(1)		—		(3)		(1,152)
Recoveries		424		14		—		5		—		2		—		2		447
Net (charge-offs) recoveries		(712)		5		—		2		—		1		—		(1)		(705)
Ending balance	$	8,763	$	6,913	$	3,606	$	2,454	$	1,630	$	394	$	71	$	655	$	24,486
Period-end amount allocated to:
Specific reserve	$	542	$	1	$	—	$	115	$	—	$	—	$	—	$	127	$	785
General reserve		8,221		6,912		3,606		2,339		1,630		394		71		528		23,701
Total	$	8,763	$	6,913	$	3,606	$	2,454	$	1,630	$	394	$	71	$	655	$	24,486

			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
September 30, 2017
Beginning balance	$	6,409	$	10,770	$	4,598	$	1,286	$	916	$	353	$	79	$	595	$	25,006
Provision (recapture) for loan loss		631		(1,137)		(1,234)		(16)		444		332		(27)		(381)		(1,388)
Charge-offs		(791)		—		—		—		—		(83)		—		—		(874)
Recoveries		945		7		—		12		—		24		17		8		1,013
Net (charge-offs) recoveries		154		7		—		12		—		(59)		17		8		139
Ending balance	$	7,194	$	9,640	$	3,364	$	1,282	$	1,360	$	626	$	69	$	222	$	23,757
Period-end amount allocated to:
Specific reserve	$	424	$	—	$	—	$	132	$	—	$	—	$	—	$	—	$	556
General reserve		6,770		9,640		3,364		1,150		1,360		626		69		222		23,201
Total	$	7,194	$	9,640	$	3,364	$	1,282	$	1,360	$	626	$	69	$	222	$	23,757

Presentation of risk grades and classified loans by loan class

			Special
(Dollars in thousands)	Pass		Mention		Substandard		Total Loans
September 30, 2018
Commercial and industrial	$	553,492		5,041		10,801	$	569,334
Real estate:
Commercial real estate		766,348		2,719		7,372		776,439
Construction and development		483,067		4,204		18		487,289
1-4 family residential		281,094		2,186		5,457		288,737
Multi-family residential		229,698		7,209		—		236,907
Consumer		39,539		246		22		39,807
Agriculture		11,580		—		29		11,609
Other		51,074		—		8,410		59,484
Total loans	$	2,415,892	$	21,605	$	32,109	$	2,469,606

			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
September 30, 2018
Commercial and industrial	$	5,508	$	4,327	$	542	$	4,869	$	542	$	6,266
Real estate:
Commercial real estate		6,316		5,501		604		6,105		1		6,610
Construction and development		13		13		—		13		—		182
1-4 family residential		4,558		2,607		1,837		4,444		115		4,650
Consumer		—		—		—		—		—		9
Other		8,332		—		8,332		8,332		127		8,101
Total loans	$	24,727	$	12,448	$	11,315	$	23,763	$	785	$	25,818

	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		8,625		667		9,292		64		9,438
Construction and development		296		252		—		252		—		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
September 30, 2017
Commercial and industrial	$	15,963	$	10,673	$	1,109	$	11,782	$	424	$	13,626
Real estate:
Commercial real estate		11,575		11,350		—		11,350		—		9,313
Construction and development		305		265		—		265		—		364
1-4 family residential		5,000		3,036		1,887		4,923		132		2,536
Multi-family residential		8		1		—		1		—		4
Consumer		—		—		—		—		—		37
Agriculture		—		—		—		—		—		35
Other		5,176		5,176		—		5,176		—		7,439
Total loans	$	38,027	$	30,501	$	2,996	$	33,497	$	556	$	33,354

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

	September 30, 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	$	4,869	$	564,465	$	569,334	$	7,292	$	552,071	$	559,363
Real estate:
Commercial real estate		6,105		770,334		776,439		9,292		729,001		738,293
Construction and development		13		487,276		487,289		252		448,959		449,211
1-4 family residential		4,444		284,293		288,737		4,924		253,660		258,584
Multi-family residential		—		236,907		236,907		—		220,305		220,305
Consumer		—		39,807		39,807		—		40,433		40,433
Agriculture		—		11,609		11,609		—		11,256		11,256
Other		8,332		51,152		59,484		7,152		33,192		40,344
Total	$	23,763	$	2,445,843	$	2,469,606	$	28,912	$	2,288,877	$	2,317,789