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LOANS
 6 Months Ended 12 Months Ended
Jun. 30, 2014
Dec. 31, 2013
LOANS    
LOANS

5. LOANS

        The composition of loans is as follows (dollars in thousands):

 
   June 30,
2014		   December 31,
2013		   June 30,
2013		  

Commercial real estate

   $ 274,500   $ 268,809   $ 243,363  

Commercial, financial, and agricultural

     89,515     79,655     84,145  

One to four family residential real estate

     105,868     103,768     94,254  

Construction:

                    

Consumer

     7,464     6,895     4,305  

Commerical

     10,550     10,904     16,053  

Consumer

     15,043     13,801     13,435  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total loans

   $ 502,940   $ 483,832   $ 455,555  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        An analysis of the allowance for loan losses for the six months ended June 30, 2014, the year ended December 31, 2013, and the six months ended June 30, 2013 is as follows (dollars in thousands):

 
   June 30,
2014		   December 31,
2013		   June 30,
2013		  

Balance at beginning of period

   $ 4,661   $ 5,218   $ 5,218  

Loans charged off

     (115 )   (2,432 )   (616 )

Recoveries on loans previously charged off

     177     200     100  

Provision

     374     1,675     475  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Balance at end of period

   $ 5,097   $ 4,661   $ 5,177  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        In the first half of 2014, net recoveries were $62,000, compared to net charge-offs of $.516 million, or .11% of average loans, in the same period in 2013. In the first half of 2014, the Corporation recorded a provision for loan loss of $.374 million compared to $.475 million in the first half of 2013. The Corporation's allowance for loan loss reserve policy calls for a measurement of the adequacy of the reserve at each quarter end. This process includes an analysis of the loan portfolio to take into account increases in loans outstanding and portfolio composition, historical loss rates, and specific reserve requirements of nonperforming loans.

        A breakdown of the allowance for loan losses and recorded balances in loans at June 30, 2014 is as follows (dollars in thousands):

 
   Commercial
real estate		   Commercial,
financial and
agricultural		   Commercial
construction		   One to four
family residential
real estate		   Consumer
construction		   Consumer   Unallocated   Total  

Three Months Ended June 30, 2014
Allowance for loan loss reserve:

                                                  

Beginning balance ALLR

   $ 1,756   $ 1,572   $ 41   $ 391   $ 16   $ 114   $ 993   $ 4,883  

Charge-offs

     —     (3 )   —     (13 )   —     (17 )   —     (33 )

Recoveries

     20     15     3     8     —     10     —     56  

Provision

     (146 )   85     (4 )   (41 )   (1 )   4     294     191  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance ALLR

   $ 1,630   $ 1,669   $ 40   $ 345   $ 15   $ 111   $ 1,287   $ 5,097  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Six Months Ended June 30, 2014
Allowance for loan loss reserve:

                                                  

Beginning balance ALLR

   $ 1,849   $ 1,378   $ 80   $ 516   $ 25   $ 148   $ 665   $ 4,661  

Charge-offs

     (1 )   (65 )   —     (16 )   —     (33 )   —     (115 )

Recoveries

     74     59     6     14     —     24     —     177  

Provision

     (292 )   297     (46 )   (169 )   (10 )   (28 )   622     374  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance ALLR

   $ 1,630   $ 1,669   $ 40   $ 345   $ 15   $ 111   $ 1,287   $ 5,097  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

At June 30,2014
Loans:

                                                  

Ending balance

   $ 274,500   $ 89,515   $ 10,550   $ 105,868   $ 7,464   $ 15,043   $ —   $ 502,940  

Ending balance ALLR

     (1,630 )   (1,669 )   (40 )   (345 )   (15 )   (111 )   (1,287 )   (5,097 )
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net loans

   $ 272,870   $ 87,846   $ 10,510   $ 105,523   $ 7,449   $ 14,932   $ (1,287 ) $ 497,843  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Ending balance ALLR:

                                                  

Individually evaluated

   $ 189   $ 1,110   $ —   $ 118   $ —   $ 21   $ —   $ 1,438  

Collectively evaluated

     1,441     559     40     227     15     90     1,287     3,659  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 1,630   $ 1,669   $ 40   $ 345   $ 15   $ 111   $ 1,287   $ 5,097  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Ending balance Loans:

                                                  

Individually evaluated

   $ 609   $ 1,744   $ —   $ 622   $ —   $ 64   $ —   $ 3,039  

Collectively evaluated

     273,891     87,771     10,550     105,246     7,464     14,979     —     499,901  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 274,500   $ 89,515   $ 10,550   $ 105,868   $ 7,464   $ 15,043   $ —   $ 502,940  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Impaired loans, by definition, are individually evaluated.

        A breakdown of the allowance for loan losses and recorded balances in loans at December 31, 2013 is as follows (dollars in thousands):

 
   Commercial
real estate		   Commercial,
financial and
agricultural		   Commercial
construction		   One to four
family residential
real estate		   Consumer
construction		   Consumer   Unallocated   Total  

Allowance for loan loss reserve:

                                                  

Beginning balance ALLR

   $ 3,267   $ 692   $ 125   $ 980   $ —   $ —   $ 154     5,218  

Charge-offs

     (1,539 )   (632 )   —     (141 )   —     (120 )   —     (2,432 )

Recoveries

     92     56     2     26     2     22     —     200  

Provision

     29     1,262     (47 )   (349 )   23     246     511     1,675  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance ALLR

   $ 1,849   $ 1,378   $ 80   $ 516   $ 25   $ 148   $ 665   $ 4,661  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Loans:

                                                  

Ending balance

   $ 268,809   $ 79,655   $ 10,904   $ 103,768   $ 6,895   $ 13,801   $ —   $ 483,832  

Ending balance ALLR

     (1,849 )   (1,378 )   (80 )   (516 )   (25 )   (148 )   (665 )   (4,661 )
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net loans

   $ 266,960   $ 78,277   $ 10,824   $ 103,252   $ 6,870   $ 13,653   $ (665 ) $ 479,171  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Ending balance ALLR:

                                                  

Individually evaluated

   $ 99   $ 891   $ —   $ 103   $ —   $ 18   $ —   $ 1,111  

Collectively evaluated

     1,750     487     80     413     25     130     665     3,550  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 1,849   $ 1,378   $ 80   $ 516   $ 25   $ 148   $ 665   $ 4,661  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Ending balance Loans:

                                                  

Individually evaluated

   $ 649   $ 1,830   $ —   $ 385   $ —   $ 42   $ —   $ 2,906  

Collectively evaluated

     268,160     77,825     10,904     103,383     6,895     13,759     —     480,926  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 268,809   $ 79,655   $ 10,904   $ 103,768   $ 6,895   $ 13,801   $ —   $ 483,832  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

        A breakdown of the allowance for loan losses and recorded balances in loans at June 30, 2013 is as follows (dollars in thousands):

 
   Commercial
real estate		   Commercial,
financial and
agricultural		   Commercial
construction		   One to four
family residential
real estate		   Consumer
construction		   Consumer   Unallocated   Total  

Three Months Ended June 30, 2013 Allowance for loan loss reserve:

                                                  

Beginning balance ALLR

   $ 2,964   $ 847   $ 118   $ 990   $ —   $ 13   $ 105   $ 5,037  

Charge-offs

     (21 )   (4 )   —     (6 )   —     (5 )   —     (36 )

Recoveries

     29     30     1     6     —     10     —     76  

Provision

     (311 )   217     (22 )   (113 )   —     (5 )   334     100  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance ALLR

   $ 2,661   $ 1,090   $ 97   $ 877   $ —   $ 13   $ 439   $ 5,177  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Six Months Ended June 30, 2013
Allowance for loan loss reserve:

                                                  

Beginning balance ALLR

   $ 3,267   $ 692   $ 125   $ 980   $ —   $ —   $ 154   $ 5,218  

Charge-offs

     (456 )   (76 )   —     (13 )   —     (71 )   —     (616 )

Recoveries

     41     33     2     11     —     13     —     100  

Provision

     (191 )   441     (30 )   (101 )   —     71     285     475  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance ALLR

   $ 2,661   $ 1,090   $ 97   $ 877   $ —   $ 13   $ 439   $ 5,177  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

At June 30,2013
Loans:

                                                  

Ending balance

   $ 243,363   $ 84,145   $ 16,053   $ 94,254   $ 4,305   $ 13,435   $ —   $ 455,555  

Ending balance ALLR

     (2,661 )   (1,090 )   (97 )   (877 )   —     (13 )   (439 )   (5,177 )
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net loans

   $ 240,702   $ 83,055   $ 15,956   $ 93,377   $ 4,305   $ 13,422   $ (439 ) $ 450,378  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Ending balance ALLR:

                                                  

Individually evaluated

   $ 1,396   $ 643   $ 8   $ 148   $ —   $ 13   $ —   $ 2,208  

Collectively evaluated

     1,265     447     89     729     —     —     439     2,969  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 2,661   $ 1,090   $ 97   $ 877   $ —   $ 13   $ 439   $ 5,177  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Ending balance Loans:

                                                  

Individually evaluated

   $ 14,499   $ 6,668   $ 917   $ 640   $ —   $ 22   $ —   $ 22,746  

Collectively evaluated

     228,864     77,477     15,136     93,614     4,305     13,413     —     432,809  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 243,363   $ 84,145   $ 16,053   $ 94,254   $ 4,305   $ 13,435   $ —   $ 455,555  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Impaired loans, by definition, are individually evaluated.

        As part of the management of the loan portfolio, risk ratings are assigned to all commercial loans. Through the loan review process, ratings are modified as believed to be appropriate to reflect changes in the credit. Our ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans.

        To do so, we operate a credit risk rating system under which our credit management personnel assign a credit risk rating to each loan at the time of origination and review loans on a regular basis to determine each loan's credit risk rating on a scale of 1 through 8, with higher scores indicating higher risk. The credit risk rating structure used is shown below.

        In the context of the credit risk rating structure, the term Classified is defined as a problem loan which may or may not be in a nonaccrual status, dependent upon current payment status and collectability.

Strong (1)

        Borrower is not vulnerable to sudden economic or technological changes. They have "strong" balance sheets and are within an industry that is very typical for our markets or type of lending culture. Borrowers also have "strong" financial and cash flow performance and excellent collateral (low loan to value or readily available to liquidate collateral) in conjunction with an impeccable repayment history.

Good (2)

        Borrower shows limited vulnerability to sudden economic change. These borrowers have "above average" financial and cash flow performance and a very good repayment history. The balance sheet of the company is also very good as compared to peer and the company is in an industry that is familiar to our markets or our type of lending. The collateral securing the deal is also very good in terms of its type, loan to value, etc.

Average (3)

        Borrower is typically a well-seasoned business, however may be susceptible to unfavorable changes in the economy, and could be somewhat affected by seasonal factors. The borrowers within this category exhibit financial and cash flow performance that appear "average" to "slightly above average" when compared to peer standards and they show an adequate payment history. Collateral securing this type of credit is good, exhibiting above average loan to values, etc.

Acceptable/Acceptable Watch (4)

        A borrower within this category exhibits financial and cash flow performance that appear adequate and satisfactory when compared to peer standards and they show a satisfactory payment history. The collateral securing the request is within supervisory limits and overall is acceptable. Borrowers rated acceptable could also be newer businesses that are typically susceptible to unfavorable changes in the economy, and more than likely could be affected by seasonal factors.

Special Mention (5)

        The borrower may have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Examples of this type of credit include a start-up company fully based on projections, a documentation issue that needs to be corrected or a general market condition that the borrower is working through to get corrected.

Substandard (6)

        Substandard loans are classified assets exhibiting a number of well-defined weaknesses that jeopardize normal repayment. The assets are no longer adequately protected due to declining net worth, lack of earning capacity, or insufficient collateral offering the distinct possibility of the loss of a portion of the loan principal. Loans classified as substandard clearly represent troubled and deteriorating credit situations requiring constant supervision.

Doubtful (7)

        Loans in this category exhibit the same, if not more pronounced weaknesses used to describe the substandard credit. Loans are frozen with collection improbable. Such loans are not yet rated as Charge-off because certain actions may yet occur which would salvage the loan.

Charge-off/Loss (8)

        Loans in this category are largely uncollectible and should be charged against the loan loss reserve immediately.

General Reserves:

        For loans with a credit risk rating of 5 or better and any loans with a risk rating of 6 or 7 with no specific reserve, reserves are established based on the type of loan collateral, if any, and the assigned credit risk rating. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogenous loans based on historical loss experience, and consideration of current environmental factors and economic trends, all of which may be susceptible to significant change.

        Using a historical average loss by loan type as a base, each loan graded as higher risk is assigned a specific percentage. Within the commercial loan portfolio, the historical loss rates are used for specific industries such as hospitality, gaming, petroleum, and forestry. The residential real estate and consumer loan portfolios are assigned a loss percentage as a homogenous group. If, however, on an individual loan the projected loss based on collateral value and payment histories are in excess of the computed allowance, the allocation is increased for the higher anticipated loss. These computations provide the basis for the allowance for loan losses as recorded by the Corporation.

        Commercial construction loans in the amount of $3.153 million, $2.951 million and $3.394 million for the periods ended June 30, 2014, December 31, 2013 and June 30, 2013, respectively did not receive a specific risk rating. These amounts represent loans made for land development and unimproved land purchases. Below is a breakdown of loans by risk category as of June 30, 2014 (dollars in thousands):

 
   (1)
Excellent		   (2)
Good		   (3)
Average		   (4)
Acceptable/
Acceptable Watch		   (5)
Sp. Mention		   (6)
Substandard		   (7)
Doubtful		   Rating
Unassigned		   Total  

Commercial real estate

   $ 15   $ 25,065   $ 121,108   $ 126,593   $ —   $ 1,719   $ —   $ —   $ 274,500  

Commercial, financial and agricultural

     2,107     4,418     31,875     46,320     —     4,795     —     —     89,515  

Commercial construction

     —     460     2,919     3,616     —     402     —     3,153     10,550  

One to four family residential real estate        

     —     2,329     1,303     4,344     —     —     —     97,892     105,868  

Consumer construction

     —     —     —     —     —     —     —     7,464     7,464  

Consumer

     —     —     20     39     —     —     —     14,984     15,043  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total loans

   $ 2,122   $ 32,272   $ 157,225   $ 180,912   $ —   $ 6,916   $ —   $ 123,493   $ 502,940  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                       

        Below is a breakdown of loans by risk category as of December 31, 2013 (dollars in thousands):

 
   (1)
Excellent		   (2)
Good		   (3)
Average		   (4)
Acceptable/
Acceptable Watch		   (5)
Sp. Mention		   (6)
Substandard		   (7)
Doubtful		   Rating
Unassigned		   Total  

Commercial real estate

   $ 1,502   $ 23,310   $ 116,702   $ 125,010   $ —   $ 2,285   $ —   $ —   $ 268,809  

Commercial, financial and agricultural

     3,741     4,348     27,455     39,070     —     5,041     —     —     79,655  

Commercial construction

     30     479     2,702     4,340     —     402     —     2,951     10,904  

One-to-four family residential real estate

     251     3,074     1,275     4,482     —     710     —     93,976     103,768  

Consumer construction

     —     —     —     —     —     —     —     6,895     6,895  

Consumer

     10     —     37     43     —     30     —     13,681     13,801  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total loans

   $ 5,534   $ 31,211   $ 148,171   $ 172,945   $ —   $ 8,468   $ —   $ 117,503   $ 483,832  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                       

        Below is a breakdown of loans by risk category as of June 30, 2013 (dollars in thousands):

 
   (1)
Excellent		   (2)
Good		   (3)
Average		   (4)
Acceptable/
Acceptable Watch		   (5)
Sp. Mention		   (6)
Substandard		   (7)
Doubtful		   Rating
Unassigned		   Total  

Commercial real estate

   $ 2,294   $ 22,319   $ 86,404   $ 111,180   $ 16,446   $ 4,531   $ 189   $ —   $ 243,363  

Commercial, financial and agricultural

     4,997     5,253     21,780     46,214     4,176     1,725     —     —     84,145  

Commercial construction

     —     723     5,119     5,660     755     402     —     3,394     16,053  

One to four family residential real estate        

     —     1,954     2,465     4,565     —     —     —     85,270     94,254  

Consumer construction

     —     —     —     —     —     —     —     4,305     4,305  

Consumer

     —     109     36     470     —     —     —     12,820     13,435  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total loans

   $ 7,291   $ 30,358   $ 115,804   $ 168,089   $ 21,377   $ 6,658   $ 189   $ 105,789   $ 455,555  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                       

Impaired Loans

        Nonperforming loans are those which are contractually past due 90 days or more as to interest or principal payments, on nonaccrual status, or loans, the terms of which have been renegotiated to provide a reduction or deferral on interest or principal. There was no interest income recorded during impairment for the three and six months ended June 30, 2014. Interest income that would have been recognized during these periods was $.029 million and $.053 million, respectively. For the three and six months ended June 30, 2013, the amounts that would have been recognized were $.059 million and $.117 million, respectively.

        The accrual of interest on loans is discontinued when, in management's opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

        Loans are considered impaired when, based on current information and events, it is probable the Corporation will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loans basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan's existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible.

        The following is a summary of impaired loans and their effect on interest income (dollars in thousands):

 
    
    
    
    
    
   Three Months Ended   Six Months Ended  
June 30, 2014
  Nonaccrual
Basis		   Accrual
Basis		   QTD
Average
Investment		   YTD
Average
Investment		   Related
Valuation
Reserve		   Interest Income
Recognized
During Impairment		   Interest Income
on
Accrual Basis		   Interest Income
Recognized
During Impairment		   Interest Income
on
Accrual Basis		  

With no valuation reserve:

                                                        

Commercial real estate

   $ 278   $ —   $ 279   $ 304   $ —   $ —   $ 4   $ —   $ 8  

Commercial, financial and agricultural

     82     —     97     140     —     —     2     —     4  

Commercial construction

     —     —     —     —     —     —     —     —     —  

One to four family residential real estate        

     37     —     38     97     —     —     —     —     3  

Consumer construction

     —     —     —     —     —     —     —     —     —  

Consumer

     —     —     3     6     —     —     —     —     —  

With a valuation reserve:

    
 		    
 		    
 		    
 		    
 		    
 		    
 		    
 		    
 		  

Commercial real estate

   $ 176   $ —   $ 176   $ 176   $ 104   $ —   $ 3   $ —   $ 7  

Commercial, financial and agricultural

     1,726     —     1,157     918     1,110     —     13     —     20  

Commercial construction

     —     —     —     —     —     —     —     —     —  

One to four family residential real estate        

     346     —     279     299     100     —     7     —     11  

Consumer construction

     —     —     —     —     —     —     —     —     —  

Consumer

     7     —     7     8     1     —     —     —     —  

Total:

    
 		    
 		    
 		    
 		    
 		    
 		    
 		    
 		    
 		  

Commercial real estate

   $ 454   $ —   $ 455   $ 480   $ 104   $ —   $ 7   $ —   $ 15  

Commercial, financial and agricultural

     1,808     —     1,254     1,058     1,110     —     15     —     24  

Commercial construction

     —     —     —     —     —     —     —     —     —  

One to four family residential real estate        

     383     —     317     396     100     —     7     —     14  

Consumer construction

     —     —     —     —     —     —     —     —     —  

Consumer

     7     —     10     14     1     —     —     —     —  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 2,652   $ —   $ 2,036   $ 1,948   $ 1,315   $ —   $ 29   $ —   $ 53  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                       

 

For the Year Ended:
December 31, 2013
  Nonaccrual
Basis		   Accrual
Basis		   Average
Investment		   Related
Valuation
Reserve		   Interest Income
Recognized
During Impairment		   Interest Income
on
Accrual Basis		  

With no valuation reserve:

                                      

Commercial real estate

   $ 513   $ —   $ 3,045   $ —   $ —   $ 153  

Commercial, financial and agricultural

     59     —     505     —     —     13  

Commercial construction

     —     —     626     —     —     3  

One to four family residential real estate        

     361     —     625     —     —     16  

Consumer construction

     —     —     —     —     —     —  

Consumer

     —     —     2     —     —     —  

With a valuation reserve:

    
 		    
 		    
 		    
 		    
 		    
 		  

Commercial real estate

   $ 59   $ —   $ 71   $ 14   $ —   $ 5  

Commercial, financial and agricultural

     752     —     834     265     —     18  

Commercial construction

     —     —     —     —     —     —  

One to four family residential real estate        

     250     —     261     78     —     20  

Consumer construction

     —     —     —     —     —     —  

Consumer

     30     —     30     13     —     —  

Total:

    
 		    
 		    
 		    
 		    
 		    
 		  

Commercial real estate

   $ 572   $ —   $ 3,116   $ 14   $ —   $ 158  

Commercial, financial and agricultural

     811     —     1,339     265     —     31  

Commercial construction

     —     —     626     —     —     3  

One to four family residential real estate        

     611     —     886     78     —     36  

Consumer construction

     —     —     —     —     —     —  

Consumer

     30     —     32     13     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 2,024   $ —   $ 5,999   $ 370   $ —   $ 228  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

 

 
    
    
    
    
    
   Three Months Ended   Six Months Ended  
June 30, 2013
  Nonaccrual
Basis		   Accrual
Basis		   QTD
Average
Investment		   YTD
Average
Investment		   Related
Valuation
Reserve		   Interest Income
Recognized
During Impairment		   Interest Income
on
Accrual Basis		   Interest Income
Recognized
During Impairment		   Interest Income
on
Accrual Basis		  

With no valuation reserve:

                                                        

Commercial real estate

   $ 728   $ —   $ 733   $ 797   $ —   $ —   $ 14   $ —   $ 26  

Commercial, financial and agricultural

     176     —     206     248     —     —     3     —     6  

Commercial construction

     —     —     —     275     —     —     —     —     3  

One to four family residential real estate                

     94     —     133     165     —     —     3     —     5  

Consumer construction

     —     —     —     —     —     —     —     —     —  

Consumer

     9     —     2     1     —     —     —     —     —  

With a valuation reserve:

    
 		    
 		    
 		    
 		    
 		    
 		    
 		    
 		    
 		  

Commercial real estate

   $ 2,329   $ —   $ 2,308   $ 2,298   $ 1,240   $ —   $ 30   $ —   $ 60  

Commercial, financial and agricultural

     341     —     267     199     106     —     4     —     6  

Commercial construction

     —     —     —     —     —     —     —     —     —  

One to four family residential real estate                

     306     —     303     289     126     —     5     —     11  

Consumer construction

     —     —     —     —     —     —     —     —     —  

Consumer

     —     —     —     —     —     —     —     —     —  

Total:

    
 		    
 		    
 		    
 		    
 		    
 		    
 		    
 		    
 		  

Commercial real estate

   $ 3,057   $ —   $ 3,041   $ 3,095   $ 1,240   $ —   $ 44   $ —   $ 86  

Commercial, financial and agricultural

     517     —     473     447     106     —     7     —     12  

Commercial construction

     —     —     —     275     —     —     —     —     3  

One to four family residential real estate                

     400     —     436     454     126     —     8     —     16  

Consumer construction

     —     —     —     —     —     —     —     —     —  

Consumer

     9     —     2     1     —     —     —     —     —  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 3,983   $ —   $ 3,952   $ 4,272   $ 1,472   $ —   $ 59   $ —   $ 117  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                       

        A summary of past due loans at June 30, 2014, December 31, 2013 and June 30, 2013 is as follows (dollars in thousands):

 
   June 30, 2014   December 31, 2013   June 30, 2013  
 
   30 - 89 days
Past Due
(accruing)		   90+ days
Past Due/
Nonaccrual		   Total   30 - 89 days
Past Due
(accruing)		   90+ days
Past Due/
Nonaccrual		   Total   30 - 89 days
Past Due
(accruing)		   90+ days
Past Due/
Nonaccrual		   Total  

Commercial real estate

   $ 602   $ 454   $ 1,056   $ —   $ 572   $ 572   $ 146   $ 3,057   $ 3,203  

Commercial, financial and agricultural

     5     1,808     1,813     4     811     815     92     517     609  

Commercial construction

     —     —     —     20     —     20     —     —     —  

One to four family residential real estate

     141     383     524     201     611     812     100     400     500  

Consumer construction

     —     —     —     —     —     —     —     —     —  

Consumer

     57     7     64     14     30     44     18     9     27  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total past due loans

   $ 805   $ 2,652   $ 3,457   $ 239   $ 2,024   $ 2,263   $ 356   $ 3,983   $ 4,339  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                       

        A roll-forward of nonperforming loan activity for the three months ended June 30, 2014 (dollars in thousands):

 
   For the Three Months Ended June 30, 2014  
 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer
Construction		   Consumer   Total  

NONACCRUAL

                                            

Beginning balance

  
$
455		  
$
730		  
$
—		  
$
299		  
$
—		  
$
7		  
$
1,491		  

Principal payments

    
(3
)		  
(63
)		  
—		    
(14
)		  
—		    
—		    
(80
)

Charge-offs

     —     —     —     —     —     (6 )   (6 )

Advances

     —     —     —     —     —     —     —  

Class transfers

     —     —     —     —     —     —     —  

Transfers to OREO

     —     —     —     —     —     —     —  

Transfers to accruing

     —     —     —     —     —     —     —  

Transfers from accruing

     —     1,139     —     89     —     6     1,234  

Other

     2     2     —     9     —     —     13  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance

   $ 454   $ 1,808   $ —   $ 383   $ —   $ 7   $ 2,652  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                               

        A roll-forward of nonperforming loan activity for the three months ended June 30, 2013 (dollars in thousands):

 
   For the Three Months Ended June 30, 2013  
 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer
Construction		   Consumer   Total  

NONACCRUAL

                                            

Beginning balance

  
$
2,963		  
$
424		  
$
—		  
$
446		  
$
—		  
$
—		  
$
3,833		  

Principal payments

    
(31
)		  
(66
)		  
—		    
(16
)		  
—		    
—		    
(113
)

Charge-offs

     —     —     —     (6 )   —     (4 )   (10 )

Advances

     —     —     —     —     —     —     —  

Class transfers

     —     —     —     —     —     —     —  

Transfers to OREO

     —     —     —     (38 )   —     —     (38 )

Transfers to accruing

     —     —     —     —     —     —     —  

Transfers from accruing

     126     179     —     14     —     13     332  

Other

     (1 )   (20 )   —     —     —     —     (21 )
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance

   $ 3,057   $ 517   $ —   $ 400   $ —   $ 9   $ 3,983  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                               

        A roll-forward of nonperforming loan activity for the first six months ended June 30, 2014 (dollars in thousands):

 
   For the Six Months Ended June 30, 2014  
 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer
Construction		   Consumer   Total  

NONACCRUAL

                                            

Beginning balance

  
$
572		  
$
811		  
$
—		  
$
611		  
$
—		  
$
30		  
$
2,024		  

Principal payments

    
(102
)		  
(81
)		  
—		    
(22
)		  
—		    
(4
)		  
(209
)

Charge-offs

     —     (53 )   —     (3 )   —     (25 )   (81 )

Advances

     —     —     —     —     —     —     —  

Class transfers

     —     —     —     —     —     —     —  

Transfers to OREO

     (26 )   —     —     (256 )   —     —     (282 )

Transfers to accruing

     —     (10 )   —     (127 )   —     —     (137 )

Transfers from accruing

     —     1,139     —     171     —     6     1,316  

Other

     10     2     —     9     —     —     21  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance

   $ 454   $ 1,808   $ —   $ 383   $ —   $ 7   $ 2,652  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                               

        A roll-forward of nonperforming loan activity for the first six months ended June 30, 2013 (dollars in thousands):

 
   For the Six Months Ended June 30, 2013  
 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer
Construction		   Consumer   Total  

NONACCRUAL

                                            

Beginning balance

  
$
3,071		  
$
436		  
$
675		  
$
505		  
$
—		  
$
—		  
$
4,687		  

Principal payments

    
(148
)		  
(68
)		  
(100
)		  
(65
)		  
—		    
—		    
(381
)

Charge-offs

     (329 )   (72 )   —     (13 )   —     (4 )   (418 )

Advances

     —     —     —     —     —     —     —  

Class transfers

     —     —     —     —     —     —     —  

Transfers to OREO

     —     —     (580 )   (107 )   —     —     (687 )

Transfers to accruing

     —     —     —     —     —     —     —  

Transfers from accruing

     443     241     —     76     —     13     773  

Other

     20     (20 )   5     4     —     —     9  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance

   $ 3,057   $ 517   $ —   $ 400   $ —   $ 9   $ 3,983  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                               

        A roll-forward of nonperforming loan activity during the year ended December 31, 2013 (dollars in thousands):

 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer
Construction		   Consumer   Total  

NONACCRUAL

                                            

Beginning balance

  
$
3,071		  
$
436		  
$
675		  
$
505		  
$
—		  
$
—		  
$
4,687		  

Principal payments

    
(1,478
)		  
(319
)		  
(100
)		  
(88
)		  
—		    
(2
)		  
(1,987
)

Charge-offs

     (1,304 )   (616 )   —     (141 )   —     (4 )   (2,065 )

Advances

     —     —     —     —     —     —     —  

Class transfers

     —     —     —     —     —     —     —  

Transfers to OREO

     (208 )   (37 )   (580 )   (107 )   —     —     (932 )

Transfers to accruing

     —     —     —     —     —     —     —  

Transfers from accruing

     443     1,346     —     434     —     36     2,259  

Other

     48     1     5     8     —     —     62  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance

   $ 572   $ 811   $ —   $ 611   $ —   $ 30   $ 2,024  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                               

Troubled Debt Restructuring

        Troubled debt restructurings ("TDR") are determined on a loan-by-loan basis. Generally restructurings are related to interest rate reductions, loan term extensions and short term payment forbearance as means to maximize collectability of troubled credits. If a portion of the TDR loan is uncollectible (including forgiveness of principal), the uncollectible amount will be charged off against the allowance at the time of the restructuring. In general, a borrower must make at least six consecutive timely payments before the Corporation would consider a return of a restructured loan to accruing status in accordance with FDIC guidelines regarding restoration of credits to accrual status.

        The Corporation has, in accordance with generally accepted accounting principles and per recently enacted accounting standard updates, evaluated all loan modifications to determine the fair value impact of the underlying asset. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan's original rate, or for collateral dependent loans, to the fair value of the collateral.

        A summary of troubled debt restructurings for the periods indicated is as follows (dollars in thousands):

 
   June 30, 2014   December 31, 2013   June 30, 2013  
 
   Number of
Modifications		   Recorded
Investment		   Number of
Modifications		   Recorded
Investment		   Number of
Modifications		   Recorded
Investment		  

Commercial real estate

     —   $ —     —   $ —     —   $ —  

Commercial, financial and agricultural

     —     —     1     528     —     —  

Commercial construction

     —     —     —     —     —     —  

One to four family residential real estate

     1     89     —     —     —     —  

Consumer construction

     —     —     —     —     —     —  

Consumer

     —     —     —     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total troubled debt restructurings

     1   $ 89     1   $ 528     —   $ —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

        A roll-forward of troubled debt restructuring during the three months ended June 30, 2014 (dollars in thousands):

 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer and
Consumer
Construction		   Total  

ACCRUING

                                      

Beginning balance

  
$
1,009		  
$
1,186		  
$
858		  
$
187		  
$
—		  
$
3,240		  

Principal payments

    
(2
)		  
—		    
—		    
—		    
—		    
(2
)

Charge-offs

     —     —     —     —     —     —  

Advances

     —     —     —     —     —     —  

New restructured

     —     —     —     —     —     —  

Transferred out of TDR

     —     —     —     —     —     —  

Transfers to nonaccrual

     —     —     —     (89 )   —     (89 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 1,007   $ 1,186   $ 858   $ 98   $ —   $ 3,149  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

NONACCRUAL

                                      

Beginning balance

  
$
—		  
$
508		  
$
—		  
$
—		  
$
—		  
$
508		  

Principal payments

    
—		    
—		    
—		    
—		    
—		    
—		  

Charge-offs

     —     —     —     —     —     —  

Advances

     —     —     —     —     —     —  

New restructured

     —     —     —     —     —     —  

Transfers to foreclosed properties

     —     —     —     —     —     —  

Transfers from accruing

     —     —     —     89     —     89  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ —   $ 508   $ —   $ 89   $ —   $ 597  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

TOTALS

                                      

Beginning balance

  
$
1,009		  
$
1,694		  
$
858		  
$
187		  
$
—		  
$
3,748		  

Principal payments

    
(2
)		  
—		    
—		    
—		    
—		    
(2
)

Charge-offs

     —     —     —     —     —     —  

Advances

     —     —     —     —     —     —  

New restructured

     —     —     —     —     —     —  

Transfers out of TDRs

     —     —     —     —     —     —  

Tansfers to nonaccrual

     —     —     —     (89 )   —     (89 )

Transfers to foreclosed properties

     —     —     —     —     —     —  

Transfers from accruing

     —     —     —     89     —     89  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 1,007   $ 1,694   $ 858   $ 187   $ —   $ 3,746  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

        A roll-forward of troubled debt restructuring during the three months ended June 30, 2013 (dollars in thousands):

 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer and
Consumer
Construction		   Total  

ACCRUING

                                      

Beginning balance

  
$
3,588		  
$
2,174		  
$
858		  
$
100		  
$
—		  
$
6,720		  

Principal payments

    
(25
)		  
—		    
—		    
—		    
—		    
(25
)

Charge-offs

     —     —     —     —     —     —  

Advances

     —     —     —     —     —     —  

New restructured

     —     —     —     —     —     —  

Transferred out of TDRs

     —     —     —     —     —     —  

Transfers to nonaccrual

     —     —     —     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 3,563   $ 2,174   $ 858   $ 100   $ —   $ 6,695  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

NONACCRUAL

                                      

Beginning balance

  
$
2,169		  
$
—		  
$
—		  
$
106		  
$
—		  
$
2,275		  

Principal payments

    
—		    
—		    
—		    
—		    
—		    
—		  

Charge-offs

     —     —     —     —     —     —  

Advances

     —     —     —     —     —     —  

New restructured

     —     —     —     —     —     —  

Transfers to foreclosed properties

     —     —     —     —     —     —  

Transfers from accruing

     —     —     —     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 2,169   $ —   $ —   $ 106   $ —   $ 2,275  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

TOTALS

                                      

Beginning balance

  
$
5,757		  
$
2,174		  
$
858		  
$
206		  
$
—		  
$
8,995		  

Principal payments

    
(25
)		  
—		    
—		    
—		    
—		    
(25
)

Charge-offs

     —     —     —     —     —     —  

Advances

     —     —     —     —     —     —  

New restructured

     —     —     —     —     —     —  

Transfers out of TDRs

     —     —     —     —     —     —  

Tansfers to nonaccrual

     —     —     —     —     —     —  

Transfers to foreclosed properties

     —     —     —     —     —     —  

Transfers from accruing

     —     —     —     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 5,732   $ 2,174   $ 858   $ 206   $ —   $ 8,970  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

        A roll-forward of troubled debt restructuring during the six months ended June 30, 2014 (dollars in thousands):

 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer and
Consumer
Construction		   Total  

ACCRUING

                                      

Beginning balance

  
$
3,520		  
$
1,186		  
$
858		  
$
99		  
$
—		  
$
5,663		  

Principal payments

    
(2,513
)		  
—		    
—		    
(3
)		  
—		    
(2,516
)

Charge-offs

     —                             —  

Advances

     —                             —  

New restructured

     —                             —  

Transferred out of TDRs

     —                             —  

Transfers from accruing

     —     —     —     91     —     91  

Transfers to nonaccruing

     —     —     —     (89 )   —     (89 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 1,007   $ 1,186   $ 858   $ 98   $ —   $ 3,149  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

NONACCRUAL

                                      

Beginning balance

  
$
—		  
$
523		  
$
—		  
$
91		  
$
—		  
$
614		  

Principal payments

    
—		    
(15
)		  
—		    
—		    
—		    
(15
)

Charge-offs

     —     —     —     —     —     —  

Advances

     —     —     —     —     —     —  

New restructured

     —     —     —     —     —     —  

Transfers to accruing

     —     —     —     (91 )   —     (91 )

Transfers from accruing

     —     —     —     89     —     89  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ —   $ 508   $ —   $ 89   $ —   $ 597  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

TOTALS

                                      

Beginning balance

  
$
3,520		  
$
1,709		  
$
858		  
$
190		  
$
—		  
$
6,277		  

Principal payments

    
(2,513
)		  
(15
)		  
—		    
(3
)		  
—		    
(2,531
)

Charge-offs

     —     —     —     —     —     —  

Advances

     —     —     —     —     —     —  

New restructured

     —     —     —     —     —     —  

Transfers out of TDR

     —     —     —     —     —     —  

Transfers to nonaccrual

     —     —     —     (89 )   —     (89 )

Transfers to accruing

     —     —     —     89     —     89  

Transfer from accruing

     —     —     —     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 1,007   $ 1,694   $ 858   $ 187   $ —   $ 3,746  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

        A roll-forward of troubled debt restructuring during the six months ended June 30, 2013 (dollars in thousands):

 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer and
Consumer
Construction		   Total  

ACCRUING

                                      

Beginning balance

  
$
3,611		  
$
1,221		  
$
858		  
$
102		  
$
—		  
$
5,792		  

Principal payments

    
(48
)		  
—		    
—		    
(2
)		  
—		    
(50
)

Charge-offs

     —     —     —     —     —     —  

Advances

     —     —     —     —     —     —  

New restructured

     —     953     —     —     —     953  

Transferred out of TDRs

     —     —     —     —     —     —  

Transfers to nonaccrual

     —     —     —     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 3,563   $ 2,174   $ 858   $ 100   $ —   $ 6,695  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

NONACCRUAL

                                      

Beginning balance

  
$
2,162		  
$
—		  
$
—		  
$
102		  
$
—		  
$
2,264		  

Principal payments

    
—		    
—		    
—		    
—		    
—		    
—		  

Charge-offs

     —     —     —     —     —     —  

Advances

     —     —     —     —     —     —  

New restructured

     7     —     —     4     —     11  

Transfers to foreclosed properties

     —     —     —     —     —     —  

Transfers from accruing

     —     —     —     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 2,169   $ —   $ —   $ 106   $ —   $ 2,275  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

TOTALS

                                      

Beginning balance

  
$
5,773		  
$
1,221		  
$
858		  
$
204		  
$
—		  
$
8,056		  

Principal payments

    
(48
)		  
—		    
—		    
(2
)		  
—		    
(50
)

Charge-offs

     —     —     —     —     —     —  

Advances

     —     —     —     —     —     —  

New restructured

     7     953     —     4     —     964  

Transfers out of TDRs

     —     —     —     —     —     —  

Transfers to nonaccrual

     —     —     —     —     —     —  

Transfers to foreclosed properties

     —     —     —     —     —     —  

Transfers from accruing

     —     —     —     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 5,732   $ 2,174   $ 858   $ 206   $ —   $ 8,970  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

        A roll-forward of troubled debt restructuring during the year ended December 31, 2013 (dollars in thousands):

 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer and
Consumer
Construction		   Total  

ACCRUING

    
 		    
 		    
 		    
 		    
 		    
 		  

Beginning balance

  
$
3,611		  
$
1,221		  
$
858		  
$
102		  
$
—		  
$
5,792		  

Principal payments

    
(91
)		  
(460
)		        
(3
)		  
—		    
(554
)

Charge-offs

     —     —           —     —     —  

Advances

     —     —           —     —     —  

New restructured

     —     953           —     —     953  

Transferred out of TDR

     —     —           —     —     —  

Transfers to nonaccrual

     —     (528 )         —     —     (528 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 3,520   $ 1,186   $ 858   $ 99   $ —   $ 5,663  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

NONACCRUAL

                                      

Beginning balance

  
$
2,162		  
$
—		  
$
—		  
$
102		  
$
—		  
$
2,264		  

Principal payments

     (1,376 )   (5 )   —     (15 )   —     (1,396 )

Charge-offs

     (793 )   —     —     —     —     (793 )

Advances

     —     —     —     —     —     —  

New restructured

     7     528     —     4     —     539  

Transfers to foreclosed properties

     —     —     —     —     —     —  

Transfers from accruing

     —     —     —     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ —   $ 523   $ —   $ 91   $ —   $ 614  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

TOTALS

                                      

Beginning balance

  
$
5,773		  
$
1,221		  
$
858		  
$
204		  
$
—		  
$
8,056		  

Principal payments

    
(1,467
)		  
(465
)		  
—		    
(18
)		  
—		    
(1,950
)

Charge-offs

     (793 )   —     —     —     —     (793 )

Advances

     —     —     —     —     —     —  

New restructured

     7     1,481     —     4     —     1,492  

Transfers out of TDRs

     —     —     —     —     —     —  

Tansfers to nonaccrual

     —     (528 )   —     —     —     (528 )

Transfers to foreclosed properties

     —     —     —     —     —     —  

Transfers from accruing

     —     —     —     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 3,520   $ 1,709   $ 858   $ 190   $ —   $ 6,277  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

Insider Loans

        The Bank, in the ordinary course of business, grants loans to the Corporation's executive officers and directors, including their families and firms in which they are principal owners. Activity in such loans is summarized below (dollars in thousands):

 
   June 30,
2014		   December 31,
2013		   June 30,
2013		  

Loans outstanding, beginning of period

   $ 9,043   $ 11,297   $ 11,297  

New loans

     —     496     496  

Net activity on revolving lines of credit

     1,178     (266 )   (25 )

Principal payments

     (1,523 )   (2,484 )   (1,298 )
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Loans outstanding, end of period

   $ 8,698   $ 9,043   $ 10,470  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        There were no loans to related parties classified substandard as of June 30, 2014, December 31, 2013 or June 30, 2013. In addition to the outstanding balances above, there were unfunded commitments of $.575 million to related parties at June 30, 2014.

NOTE 4—LOANS

        The composition of loans at December 31 is as follows (dollars in thousands):

 
   2013   2012  

Commercial real estate

   $ 268,809   $ 244,966  

Commercial, financial, and agricultural

     79,655     80,646  

One to four family residential real estate

     103,768     87,948  

Commercial construction

     10,904     17,229  

Consumer

     13,801     10,923  

Consumer construction

     6,895     7,465  

Total loans

  
$
483,832		  
$
449,177		  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

        An analysis of the allowance for loan losses for the years ended December 31 is as follows (dollars in thousands):

 
   2013   2012   2011  

Balance, January 1

   $ 5,218   $ 5,251   $ 6,613  

Recoveries on loans previously charged off

     200     278     138  

Loans charged off

     (2,432 )   (1,256 )   (3,800 )

Provision

     1,675     945     2,300  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Balance, December 31

   $ 4,661   $ 5,218   $ 5,251  
               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
               

        In 2013, net charge off activity was $2.232 million, or .48% of average loans outstanding compared to net charge-offs of $.978 million, or .23% of average loans, in the same period in 2012 and $3.662 million, or .94% of average loans, in 2011. During 2013, a provision of $1.675 million was made to increase the allowance. This provision was made in accordance with the Corporation's allowance for loan loss reserve policy, which calls for a measurement of the adequacy of the reserve at each quarter end. This process includes an analysis of the loan portfolio to take into account increases in loans outstanding and portfolio composition, historical loss rates, and specific reserve requirements of nonperforming loans.

        A breakdown of the allowance for loan losses and recorded balances in loans at December 31, 2013 is as follows (dollars in thousands):

 
   Commercial
real estate		   Commercial,
financial and
agricultural		   Commercial
construction		   One to four
family
residential
real estate		   Consumer
construction		   Consumer   Unallocated   Total  

Allowance for loan loss reserve:

                                                  

Beginning balance ALLR

   $ 3,267   $ 692   $ 125   $ 980   $ —   $ —   $ 154   $ 5,218  

Charge-offs

     (1,539 )   (632 )   —     (141 )   —     (120 )   —     (2,432 )

Recoveries

     92     56     2     26     2     22     —     200  

Provision

     29     1,262     (47 )   (349 )   23     246     511     1,675  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance ALLR

   $ 1,849   $ 1,378   $ 80   $ 516   $ 25   $ 148   $ 665   $ 4,661  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Loans:

                                                  

Ending balance

   $ 268,809   $ 79,655   $ 10,904   $ 103,768   $ 6,895   $ 13,801   $ —   $ 483,832  

Ending balance ALLR

     (1,849 )   (1,378 )   (80 )   (516 )   (25 )   (148 )   (665 )   (4,661 )
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net loans

   $ 266,960   $ 78,277   $ 10,824   $ 103,252   $ 6,870   $ 13,653   $ (665 ) $ 479,171  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Ending balance ALLR:

                                                  

Individually evaluated

   $ 99   $ 891   $ —   $ 103   $ —   $ 18   $ —   $ 1,111  

Collectively evaluated

     1,750     487     80     413     25     130     665     3,550  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 1,849   $ 1,378   $ 80   $ 516   $ 25   $ 148   $ 665   $ 4,661  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Ending balance Loans:

                                                  

Individually evaluated

   $ 649   $ 1,830   $ —   $ 385   $ —   $ 42   $ —   $ 2,906  

Collectively evaluated

     268,160     77,825     10,904     103,383     6,895     13,759     —     480,926  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 268,809   $ 79,655   $ 10,904   $ 103,768   $ 6,895   $ 13,801   $ —   $ 483,832  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Impaired loans, by definition, are individually evaluated.

        A breakdown of the allowance for loan losses, the activity for the period, and recorded balances in loans for the year ended December 31, 2012 is as follows (dollars in thousands):

 
   Commercial
real estate		   Commercial,
financial and
agricultural		   Commercial
construction		   One to four
family
residential
real estate		   Consumer
construction		   Consumer   Unallocated   Total  

Allowance for loan loss reserve:

                                                  

Beginning balance ALLR

   $ 2,823   $ 1,079   $ 207   $ 1,114   $ —   $ —   $ 28   $ 5,251  

Charge-offs

     (729 )   (40 )   (6 )   (399 )   —     (82 )   —     (1,256 )

Recoveries

     52     201     —     7     —     18     —     278  

Provision

     1,121     (548 )   (76 )   258     —     64     126     945  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance ALLR

   $ 3,267   $ 692   $ 125   $ 980   $ —   $ —   $ 154   $ 5,218  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Loans:

                                                  

Ending balance

   $ 244,966   $ 80,646   $ 17,229   $ 87,948   $ 7,465   $ 10,923   $ —   $ 449,177  

Ending balance ALLR

     (3,267 )   (692 )   (125 )   (980 )   —     —     (154 )   (5,218 )
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net loans

   $ 241,699   $ 79,954   $ 17,104   $ 86,968   $ 7,465   $ 10,923   $ (154 ) $ 443,959  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Ending balance ALLR:

                                                  

Individually evaluated

   $ 1,662   $ 155   $ 10   $ 112   $ —   $ —   $ —   $ 1,939  

Collectively evaluated

     1,605     537     115     868     —     —     154     3,279  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 3,267   $ 692   $ 125   $ 980   $ —   $ —   $ 154   $ 5,218  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Ending balance Loans:

                                                  

Individually evaluated

   $ 22,910   $ 6,070   $ 858   $ 796   $ —   $ —   $ —   $ 30,634  

Collectively evaluated

     222,056     74,576     16,371     87,152     7,465     10,923     —     418,543  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 244,966   $ 80,646   $ 17,229   $ 87,948   $ 7,465   $ 10,923   $ —   $ 449,177  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Impaired loans, by definition, are individually evaluated.

        A breakdown of the allowance for loan losses, the activity for the period, and recorded balances in loans for the year ended December 31, 2011 is as follows (dollars in thousands):

 
   Commercial
real estate		   Commercial,
financial and
agricultural		   Commercial
construction		   One to four
family
residential
real estate		   Consumer
construction		   Consumer   Unallocated   Total  

Allowance for loan loss reserve:

                                                  

Beginning balance ALLR

   $ 3,460   $ 1,018   $ 389   $ 1,622   $ —   $ —   $ 124   $ 6,613  

Charge-offs

     (2,267 )   (579 )   (412 )   (490 )   —     (52 )   —     (3,800 )

Recoveries

     32     21     75     1     —     9     —     138  

Provision

     1,598     619     155     (19 )   —     43     (96 )   2,300  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance ALLR

   $ 2,823   $ 1,079   $ 207   $ 1,114   $ —   $ —   $ 28   $ 5,251  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Loans:

                                                  

Ending balance

   $ 199,201   $ 92,269   $ 19,745   $ 77,332   $ 5,774   $ 6,925   $ —   $ 401,246  

Ending balance ALLR

     (2,823 )   (1,079 )   (207 )   (1,114 )   —     —     (28 )   (5,251 )
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Net loans

   $ 196,378   $ 91,190   $ 19,538   $ 76,218   $ 5,774   $ 6,925   $ (28 ) $ 395,995  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Ending balance ALLR:

                                                  

Individually evaluated

   $ 926   $ 160   $ —   $ 114   $ —   $ —   $ —   $ 1,200  

Collectively evaluated

     1,897     919     207     1,000     —     —     28     4,051  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 2,823   $ 1,079   $ 207   $ 1,114   $ —   $ —   $ 28   $ 5,251  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Ending balance Loans:

                                                  

Individually evaluated

   $ 13,628   $ 1,707   $ —   $ 1,930   $ —   $ —   $ —   $ 17,265  

Collectively evaluated

     185,573     90,562     19,745     75,402     5,774     6,925     —     383,981  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 199,201   $ 92,269   $ 19,745   $ 77,332   $ 5,774   $ 6,925   $ —   $ 401,246  
                                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                   

Impaired loans, by definition, are individually evaluated.

        As part of the management of the loan portfolio, risk ratings are assigned to all commercial loans. Through the loan review process, ratings are modified as believed to be appropriate to reflect changes in the credit. Our ability to manage credit risk depends in large part on our ability to properly identify and manage problem loans.

        To do so, we operate a credit risk rating system under which our credit management personnel assign a credit risk rating to each loan at the time of origination and review loans on a regular basis to determine each loan's credit risk rating on a scale of 1 through 8, with higher scores indicating higher risk. The credit risk rating structure used is shown below.

        In the context of the credit risk rating structure, the term Classified is defined as a problem loan which may or may not be in a nonaccrual status, dependent upon current payment status and collectability.

Strong (1)

        Borrower is not vulnerable to sudden economic or technological changes. They have "strong" balance sheets and are within an industry that is very typical for our markets or type of lending culture. Borrowers also have "strong" financial and cash flow performance and excellent collateral (low loan to value or readily available to liquidate collateral) in conjunction with an impeccable repayment history.

Good (2)

        Borrower shows limited vulnerability to sudden economic change. These borrowers have "above average" financial and cash flow performance and a very good repayment history. The balance sheet of the company is also very good as compared to peer and the company is in an industry that is familiar to our markets or our type of lending. The collateral securing the deal is also very good in terms of its type, loan to value, etc.

Average (3)

        Borrower is typically a well-seasoned business, however may be susceptible to unfavorable changes in the economy, and could be somewhat affected by seasonal factors. The borrowers within this category exhibit financial and cash flow performance that appear "average" to "slightly above average" when compared to peer standards and they show an adequate payment history. Collateral securing this type of credit is good, exhibiting above average loan to values, etc.

Acceptable (4)

        A borrower within this category exhibits financial and cash flow performance that appear adequate and satisfactory when compared to peer standards and they show a satisfactory payment history. The collateral securing the request is within supervisory limits and overall is acceptable. Borrowers rated acceptable could also be newer businesses that are typically susceptible to unfavorable changes in the economy, and more than likely could be affected by seasonal factors.

Special Mention (5)

        The borrower may have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the institution's credit position at some future date. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Examples of this type of credit include a start-up company fully based on projections, a documentation issue that needs to be corrected or a general market condition that the borrower is working through to get corrected.

Substandard (6)

        Substandard loans are classified assets exhibiting a number of well-defined weaknesses that jeopardize normal repayment. The assets are no longer adequately protected due to declining net worth, lack of earning capacity, or insufficient collateral offering the distinct possibility of the loss of a portion of the loan principal. Loans classified as substandard clearly represent troubled and deteriorating credit situations requiring constant supervision.

Doubtful (7)

        Loans in this category exhibit the same, if not more pronounced weaknesses used to describe the substandard credit. Loans are frozen with collection improbable. Such loans are not yet rated as Charge-off because certain actions may yet occur which would salvage the loan.

Charge-off/Loss (8)

        Loans in this category are largely uncollectible and should be charged against the loan loss reserve immediately.

General Reserves:

        For loans with a credit risk rating of 5 or better and any loans with a risk rating of 6 or 7 with no specific reserve, reserves are established based on the type of loan collateral, if any, and the assigned credit risk rating. Determination of the allowance is inherently subjective as it requires significant estimates, including the amounts and timing of expected future cash flows on impaired loans, estimated losses on pools of homogenous loans based on historical loss experience, and consideration of current environmental factors and economic trends, all of which may be susceptible to significant change.

        Using a historical average loss by loan type as a base, each loan graded as higher risk is assigned a specific percentage. Within the commercial loan portfolio, the historical loss rates are used for specific industries such as hospitality, gaming, petroleum, and forestry. The residential real estate and consumer loan portfolios are assigned a loss percentage as a homogenous group. If, however, on an individual loan the projected loss based on collateral value and payment histories are in excess of the computed allowance, the allocation is increased for the higher anticipated loss. These computations provide the basis for the allowance for loan losses as recorded by the Corporation. In 2013 and 2012, commercial construction loans of $2.951 million and $3.468 million, respectively, did not receive a specific risk rating. These amounts represent loans made for land development and unimproved land purchases.

        Below is a breakdown of loans by risk category as of December 31, 2013 (dollars in thousands):

 
   (1)
Strong		   (2)
Good		   (3)
Average		   (4)
Acceptable/
Acceptable Watch		   (5)
Sp. Mention		   (6)
Substandard		   (7)
Doubtful		   Rating
Unassigned		   Total  

Commercial real estate

   $ 1,502   $ 23,310   $ 116,702   $ 125,010   $ —   $ 2,285   $ —   $ —   $ 268,809  

Commercial, financial and agricultural

     3,741     4,348     27,455     39,070     —     5,041     —     —     79,655  

Commercial construction

     30     479     2,702     4,340     —     402     —     2,951     10,904  

One-to-four family residential real estate

     251     3,074     1,275     4,482     —     710     —     93,976     103,768  

Consumer construction

     —     —     —     —     —     —     —     6,895     6,895  

Consumer

     10     —     37     43     —     30     —     13,681     13,801  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total loans

   $ 5,534   $ 31,211   $ 148,171   $ 172,945   $ —   $ 8,468   $ —   $ 117,503   $ 483,832  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                       

        Below is a breakdown of loans by risk category as of December 31, 2012 (dollars in thousands)

 
   (1)
Strong		   (2)
Good		   (3)
Average		   (4)
Acceptable/
Acceptable Watch		   (5)
Sp. Mention		   (6)
Substandard		   (7)
Doubtful		   Rating
Unassigned		   Total  

Commercial real estate

   $ 4,807   $ 20,491   $ 84,164   $ 113,379   $ 16,754   $ 5,189   $ 182   $ —   $ 244,966  

Commercial, financial and agricultural

     5,026     3,936     23,821     41,785     4,296     1,782     —     —     80,646  

Commercial construction

     —     1,038     5,103     5,784     759     1,077     —     3,468     17,229  

One-to-four family residential real estate

     —     1,969     3,635     4,791     —     646     —     76,907     87,948  

Consumer construction

     —     —     —     —     —     —     —     7,465     7,465  

Consumer

     —     359     71     257     —     6     —     10,230     10,923  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total loans

   $ 9,833   $ 27,793   $ 116,794   $ 165,996   $ 21,809   $ 8,700   $ 182   $ 98,070   $ 449,177  
                                       
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                                       

Impaired Loans

        Nonperforming loans are those which are contractually past due 90 days or more as to interest or principal payments, on nonaccrual status, or loans, the terms of which have been renegotiated to provide a reduction or deferral on interest or principal. There was no interest income recorded during impairment, and that which would have been recognized was $.228 million for the year ended December 31, 2013. For the year ended December 31, 2012, the amounts of interest recorded during impairment was $.054 million and that which would have been recognized was $.313 million.

        The accrual of interest on loans is discontinued when, in management's opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

        Loans are considered impaired when, based on current information and events, it is probable the Corporation will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loans basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan's existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible.

        The following is a summary of impaired loans and their effect on interest income (dollars in thousands):

 
   Nonaccrual
Basis		   Accrual
Basis		   Average
Investment		   Related
Valuation Reserve		   Interest Income
Recognized
During Impairment		   Interest Income
on
Accrual Basis		  

December 31, 2013

                                      

With no valuation reserve:

    
 		    
 		    
 		    
 		    
 		    
 		  

Commercial real estate

   $ 513   $ —   $ 3,045   $ —   $ —   $ 153  

Commercial, financial and agricultural

     59     —     505     —     —     13  

Commercial construction

     —     —     626     —     —     3  

One to four family residential real estate

     361     —     625     —     —     16  

Consumer construction

     —     —     —     —     —     —  

Consumer

     —     —     2     —     —     —  

With a valuation reserve:

    
 		    
 		    
 		    
 		    
 		    
 		  

Commercial real estate

   $ 59   $ —   $ 71   $ 14   $ —   $ 5  

Commercial, financial and agricultural

     752     —     834     265     —     18  

Commercial construction

     —     —     —     —     —     —  

One to four family residential real estate

     250     —     261     78     —     20  

Consumer construction

     —     —     —     —     —     —  

Consumer

     30     —     30     13     —     —  

Total:

    
 		    
 		    
 		    
 		    
 		    
 		  

Commercial real estate

   $ 572   $ —   $ 3,116   $ 14   $ —   $ 158  

Commercial, financial and agricultural

     811     —     1,339     265     —     31  

Commercial construction

     —     —     626     —     —     3  

One to four family residential real estate

     611     —     886     78     —     36  

Consumer construction

     —     —     —     —     —     —  

Consumer

     30     —     32     13     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 2,024   $ —   $ 5,999   $ 370   $ —   $ 228  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

December 31, 2012

                                      

With no valuation reserve:

    
 		    
 		    
 		    
 		    
 		    
 		  

Commercial real estate

   $ 132   $ —   $ 1,550   $ —   $ —   $ 37  

Commercial, financial and agricultural

     —     —     1,063     —     —     19  

Commercial construction

     675     —     675     —     —     15  

One to four family residential real estate

     230     —     1,074     —     —     41  

Consumer construction

     —     —     16     —     —     1  

Consumer

     —     —     3     —     —     —  

With a valuation reserve:

    
 		    
 		    
 		    
 		    
 		    
 		  

Commercial real estate

   $ 2,939   $ —   $ 3,173   $ 1,315   $ 54   $ 177  

Commercial, financial and agricultural

     436     —     504     109     —     17  

Commercial construction

     —     —     —     —     —     —  

One to four family residential real estate

     275     —     281     95     —     6  

Consumer construction

     —     —     —     —     —     —  

Consumer

     —     —     —     —     —     —  

Total:

    
 		    
 		    
 		    
 		    
 		    
 		  

Commercial real estate

   $ 3,071   $ —   $ 4,723   $ 1,315   $ 54   $ 214  

Commercial, financial and agricultural

     436     —     1,567     109     —     36  

Commercial construction

     675     —     675     —     —     15  

One to four family residential real estate

     505     —     1,355     95     —     47  

Consumer construction

     —     —     16     —     —     1  

Consumer

     —     —     3     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total

   $ 4,687   $ —   $ 8,339   $ 1,519   $ 54   $ 313  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

        A summary of past due loans at December 31, is as follows (dollars in thousands):

 
   2013   2012  
 
   30 - 89 days
Past Due
(accruing)		   90+ days
Past Due/
Nonaccrual		   Total   30 - 89 days
Past Due
(accruing)		   90+ days
Past Due/
Nonaccrual		   Total  

Commercial real estate

   $ —   $ 572   $ 572   $ 575   $ 3,071   $ 3,646  

Commercial, financial and agricultural

     4     811     815     71     436     507  

Commercial construction

     20     —     20     —     675     675  

One to four family residential real estate

     201     611     812     291     505     796  

Consumer construction

     —     —     —     —     —     —  

Consumer

     14     30     44     14     —     14  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total past due loans

   $ 239   $ 2,024   $ 2,263   $ 951   $ 4,687   $ 5,638  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

        A roll-forward of nonaccrual activity during the year ended December 31, 2013 (dollars in thousands):

 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer
Construction		   Consumer   Total  

NONACCRUAL

                                            

Beginning balance

  
$
3,071		  
$
436		  
$
675		  
$
505		  
$
—		  
$
—		  
$
4,687		  

Principal payments

    
(1,478
)		  
(319
)		  
(100
)		  
(88
)		  
—		    
(2
)		  
(1,987
)

Charge-offs

     (1,304 )   (616 )   —     (141 )   —     (4 )   (2,065 )

Advances

     —     —     —     —     —     —     —  

Transfers to OREO

     (208 )   (37 )   (580 )   (107 )   —     —     (932 )

Transfers to accruing

     —     —     —     —     —     —     —  

Transfers from accruing

     443     1,346     —     434     —     36     2,259  

Other

     48     1     5     8     —     —     62  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance

   $ 572   $ 811   $ —   $ 611   $ —   $ 30   $ 2,024  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                               

        A roll-forward of nonaccrual activity during the year ended December 31, 2012 (dollars in thousands):

 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer
Construction		   Consumer   Total  

NONACCRUAL

                                            

Beginning balance

  
$
2,362		  
$
1,111		  
$
—		  
$
1,997		  
$
20		  
$
—		  
$
5,490		  

Principal payments

    
(1,569
)		  
(1,385
)		  
—		    
(1,068
)		  
—		    
—		    
(4,022
)

Charge-offs

     (463 )   —     —     (387 )   (5 )   (3 )   (858 )

Advances

     —     —     —     —     —     —     —  

Class transfers

     —     —     —     —     —     —     —  

Transfers to OREO

     (675 )   —     —     (662 )   (15 )   —     (1,352 )

Transfers to accruing

     —     —     —     —     —     —     —  

Transfers from accruing

     3,377     716     675     617     —     3     5,388  

Other

     39     (6 )   —     8     —     —     41  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending balance

   $ 3,071   $ 436   $ 675   $ 505   $ —   $ —   $ 4,687  
                               
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                               

Troubled Debt Restructuring

        Troubled debt restructurings ("TDR") are determined on a loan-by-loan basis. Generally, restructurings are related to interest rate reductions, loan term extensions and short term payment forbearance as means to maximize collectability of troubled credits. If a portion of the TDR loan is uncollectible (including forgiveness of principal), the uncollectible amount will be charged off against the allowance at the time of the restructuring. In general, a borrower must make at least six consecutive timely payments before the Corporation would consider a return of a restructured loan to accruing status in accordance with FDIC guidelines regarding restoration of credits to accrual status.

        The Corporation has, in accordance with generally accepted accounting principles and per recently enacted accounting standard updates, evaluated all loan modifications to determine the fair value impact of the underlying asset. The carrying amount of the loan is compared to the expected payments to be received, discounted at the loan's original rate, or for collateral dependent loans, to the fair value of the collateral.

        A summary of troubled debt restructurings that occurred during the years ended December 31 is as follows (dollars in thousands):

 
   2013   2012  
 
   Number of
Modifications		   Recorded
Investment		   Number of
Modifications		   Recorded
Investment		  

Commercial real estate

     —   $ —     3   $ 4,614  

Commercial, financial and agricultural

     1     528     1     1,221  

Commercial construction

     —     —     3     860  

One to four family residential real estate

     —     —     1     102  

Consumer construction

     —     —     —     —  

Consumer

     —     —     —     —  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Total troubled debt restructurings

     1   $ 528     8   $ 6,797  
                   
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                   

        A roll-forward of troubled debt restructuring during the year ended December 31, 2013 (dollars in thousands):

 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer and
Consumer
Construction		   Total  

ACCRUING

                                      

Beginning balance

  
$
3,611		  
$
1,221		  
$
858		  
$
102		  
$
—		  
$
5,792		  

Principal payments

    
(91
)		  
(460
)		        
(3
)		  
—		    
(554
)

Charge-offs

     —     —           —     —     —  

Advances

     —     —           —     —     —  

New restructured

     —     953           —     —     953  

Transferred out of TDR

     —     —           —     —     —  

Transfers to nonaccrual

     —     (528 )         —     —     (528 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 3,520   $ 1,186   $ 858   $ 99   $ —   $ 5,663  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

NONACCRUAL

                                      

Beginning balance

  
$
2,162		  
$
—		  
$
—		  
$
102		  
$
—		  
$
2,264		  

Principal payments

    
(1,376
)		  
(5
)		  
—		    
(15
)		  
—		    
(1,396
)

Charge-offs

     (793 )   —     —     —     —     (793 )

Advances

     —     —     —     —     —     —  

New restructured

     7     528     —     4     —     539  

Transfers to foreclosed properties

     —     —     —     —     —     —  

Transfers from accruing

     —     —     —     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ —   $ 523   $ —   $ 91   $ —   $ 614  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

TOTALS

                                      

Beginning balance

  
$
5,773		  
$
1,221		  
$
858		  
$
204		  
$
—		  
$
8,056		  

Principal payments

    
(1,467
)		  
(465
)		  
—		    
(18
)		  
—		    
(1,950
)

Charge-offs

     (793 )   —     —     —     —     (793 )

Advances

     —     —     —     —     —     —  

New restructured

     7     1,481     —     4     —     1,492  

Transfers out of TDRs

     —     —     —     —     —     —  

Tansfers to nonaccrual

     —     (528 )   —     —     —     (528 )

Transfers to foreclosed properties

     —     —     —     —     —     —  

Transfers from accruing

     —     —     —     —     —     —  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 3,520   $ 1,709   $ 858   $ 190   $ —   $ 6,277  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

        A roll-forward of troubled debt restructuring during the year ended December 31, 2012 (dollars in thousands):

 
   Commercial
Real Estate		   Commercial,
Financial and
Agricultural		   Commercial
Construction		   One to four
family residential
real estate		   Consumer and
Consumer
Construction		   Total  

ACCRUING

                                      

Beginning balance

  
$
2,400		  
$
—		  
$
—		  
$
103		  
$
—		  
$
2,503		  

Principal payments

    
(84
)		  
—		    
(2
)		  
(1
)		  
—		    
(87
)

Charge-offs

     —     —     —     —     —     —  

Advances

     —     —     —     —     —     —  

New restructured

     3,695     1,221     860     —     —     5,776  

Transferred out of TDRs

     —     —     —     —     —     —  

Transfers to nonaccrual

     (2,400 )   —     —     —     —     (2,400 )
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 3,611   $ 1,221   $ 858   $ 102   $ —   $ 5,792  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

NONACCRUAL

                                      

Beginning balance

  
$
—		  
$
—		  
$
—		  
$
—		  
$
—		  
$
—		  

Principal payments

    
(432
)		  
—		    
—		    
—		    
—		    
(432
)

Charge-offs

     (772 )   —     —     —     —     (772 )

Advances

     47     —     —     —     —     47  

New restructured

     919     —     —     102     —     1,021  

Transfers to foreclosed properties

     —     —     —     —     —     —  

Transfers from accruing

     2,400     —     —     —     —     2,400  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 2,162   $ —   $ —   $ 102   $ —   $ 2,264  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

TOTALS

                                      

Beginning balance

  
$
2,400		  
$
—		  
$
—		  
$
103		  
$
—		  
$
2,503		  

Principal payments

    
(516
)		  
—		    
(2
)		  
(1
)		  
—		    
(519
)

Charge-offs

     (772 )   —     —     —     —     (772 )

Advances

     47     —     —     —     —     47  

New restructured

     4,614     1,221     860     102     —     6,797  

Transfers out of TDRs

     —     —     —     —     —     —  

Transfers to nonaccrual

     (2,400 )   —     —     —     —     (2,400 )

Transfers to foreclosed properties

     —     —     —     —     —     —  

Transfers from accruing

     2,400     —     —     —     —     2,400  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​

Ending Balance

   $ 5,773   $ 1,221   $ 858   $ 204   $ —   $ 8,056  
                           
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
                           

Insider Loans

        The Bank, in the ordinary course of business, grants loans to the Corporation's executive officers and directors, including their families and firms in which they are principal owners. Activity in such loans is summarized below (dollars in thousands):

 
   2013   2012  

Loans outstanding, January 1

   $ 11,297   $ 8,827  

New loans

     496     3,911  

Net activity on revolving lines of credit

     (266 )   233  

Repayment

     (2,484 )   (1,674 )
           
​ ​ ​ ​ ​ ​ ​ ​

Loans outstanding, December 31

   $ 9,043   $ 11,297  
           
​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ ​ ​ ​ ​ ​
           

        There were no loans to related-parties classified substandard as of December 31, 2013 and 2012. In addition to the outstanding balances above, there were unfunded commitments of $5,000 to related parties at December 31, 2013.