XML 58 R26.htm IDEA: XBRL DOCUMENT v2.4.1.9
Loans (Tables)
 3 Months Ended
Mar. 31, 2015
Loans and Leases Receivable Disclosure [Abstract]  
Schedule of related aging categories of loans by segment
The following table presents the related aging categories of loans, by segment, as of March 31, 2015 and December 31, 2014:
 
 
 
March 31, 2015
 
 
 
 
Past Due
 
Past Due 90
 
 
 
 
 
 
 
 
30 To 89
 
Days Or More
 
Non-
 
 
(In Thousands)
 
Current
 
Days
 
& Still Accruing
 
Accrual
 
Total
Commercial, financial, and agricultural
 
$
130,868

 
$
665

 
$
216

 
$
834

 
$
132,583

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

Residential
 
466,322

 
7,043

 
129

 
709

 
474,203

Commercial
 
281,544

 
2,682

 
—

 
8,311

 
292,537

Construction
 
21,538

 
4

 
46

 
908

 
22,496

Installment loans to individuals
 
22,867

 
402

 
—

 
4

 
23,273

 
 
923,139

 
$
10,796

 
$
391

 
$
10,766

 
945,092

Net deferred loan fees and discounts
 
(1,222
)
 
 

 
 

 
 

 
(1,222
)
Allowance for loan losses
 
(10,826
)
 
 

 
 

 
 

 
(10,826
)
Loans, net
 
$
911,091

 
 

 
 

 
 

 
$
933,044

 
 
December 31, 2014
 
 
 
 
Past Due
 
Past Due 90
 
 
 
 
 
 
 
 
30 To 89
 
Days Or More
 
Non-
 
 
(In Thousands)
 
Current
 
Days
 
& Still Accruing
 
Accrual
 
Total
Commercial, financial, and agricultural
 
$
122,624

 
$
773

 
$
—

 
$
759

 
$
124,156

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

Residential
 
450,503

 
6,078

 
332

 
847

 
457,760

Commercial
 
279,731

 
1,819

 
54

 
9,744

 
291,348

Construction
 
21,485

 
—

 
—

 
511

 
21,996

Installment loans to individuals
 
21,125

 
383

 
1

 
—

 
21,509

 
 
895,468

 
$
9,053

 
$
387

 
$
11,861

 
916,769

Net deferred loan fees and discounts
 
(1,190
)
 
 

 
 

 
 

 
(1,190
)
Allowance for loan losses
 
(10,579
)
 
 

 
 

 
 

 
(10,579
)
Loans, net
 
$
883,699

 
 

 
 

 
 

 
$
905,000
Schedule of changes in the amortizable yield for purchased credit-impaired loans
Changes in the amortizable yield for purchased credit-impaired loans were as follows for the three months ended March 31, 2014:

(In Thousands)
 
March 31, 2014
Balance at beginning of period or at acquisition
 
$
35

Accretion
 
(7
)
Balance at end of period
 
$
28
Schedule of additional information regarding loans acquired and accounted
The following table presents additional information regarding loans acquired in the Luzerne Bank transaction with specific evidence of deterioration in credit quality:
(In Thousands)
 
March 31, 2015
 
December 31, 2014
Outstanding balance
 
$
447

 
$
449

Carrying amount
 
347

 
349
Schedule of interest income if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans
The following table presents interest income the Banks would have recorded if interest had been recorded based on the original loan agreement terms and rate of interest for non-accrual loans and interest income recognized on a cash basis for non-accrual loans for the three months ended March 31, 2015 and 2014:

 
 
Three Months Ended March 31,
 
 
2015
 
2014
(In Thousands)
 
Interest Income That
Would Have Been
Recorded Based on
Original Term and Rate
 
Interest
Income
Recorded on
a Cash Basis
 
Interest Income That
Would Have Been
Recorded Based on
Original Term and Rate
 
Interest
Income
Recorded on
a Cash Basis
Commercial, financial, and agricultural
 
$
12

 
$
8

 
$
2

 
$
—

Real estate mortgage:
 
 

 
 

 
 

 
 

Residential
 
5

 
9

 
8

 
4

Commercial
 
105

 
25

 
131

 
34

Construction
 
15

 
7

 
19

 
8

 
 
$
137

 
$
49

 
$
160

 
$
46

 
Schedule of recorded investment, unpaid principal balance, and related allowance of impaired loans by segment
The following table presents the recorded investment, unpaid principal balance, and related allowance of impaired loans by segment as of March 31, 2015 and December 31, 2014:

 
 
March 31, 2015
 
 
Recorded
 
Unpaid Principal
 
Related
(In Thousands)
 
Investment
 
Balance
 
Allowance
With no related allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
$
516

 
$
516

 
$
—

Real estate mortgage:
 
 

 
 

 
 

Residential
 
594

 
594

 
—

Commercial
 
4,435

 
4,435

 
—

Construction
 
610

 
610

 
—

 
 
6,155

 
6,155

 
—

With an allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
670

 
670

 
264

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,314

 
1,414

 
211

Commercial
 
10,196

 
10,433

 
1,451

Construction
 
307

 
307

 
66

 
 
12,487

 
12,824

 
1,992

Total:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
1,186

 
1,186

 
264

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,908

 
2,008

 
211

Commercial
 
14,631

 
14,868

 
1,451

Construction
 
917

 
917

 
66

 
 
$
18,642

 
$
18,979

 
$
1,992

 
 
December 31, 2014
 
 
Recorded
 
Unpaid Principal
 
Related
(In Thousands)
 
Investment
 
Balance
 
Allowance
With no related allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
$
439

 
$
439

 
$
—

Real estate mortgage:
 
 

 
 

 
 

Residential
 
139

 
139

 
—

Commercial
 
3,228

 
3,228

 
—

Construction
 
716

 
716

 
—

 
 
4,522

 
4,522

 
—

With an allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
673

 
673

 
298

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,327

 
1,449

 
147

Commercial
 
10,745

 
10,889

 
1,581

Construction
 
309

 
309

 
67

 
 
13,054

 
13,320

 
2,093

Total:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
1,112

 
1,112

 
298

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,466

 
1,588

 
147

Commercial
 
13,973

 
14,117

 
1,581

Construction
 
1,025

 
1,025

 
67

 
 
$
17,576

 
$
17,842

 
$
2,093
Schedule of average recorded investment in impaired loans and related interest income recognized
The following table presents the average recorded investment in impaired loans and related interest income recognized for the three months ended for March 31, 2015 and 2014:
 
 
Three Months Ended March 31,
 
 
2015
 
2014
(In Thousands)
 
Average
Investment in
Impaired Loans
 
Interest Income
Recognized on an
Accrual Basis on
Impaired Loans
 
Interest Income
Recognized on a
Cash Basis on
Impaired Loans
 
Average
Investment in
Impaired Loans
 
Interest Income
Recognized on an
Accrual Basis on
Impaired Loans
 
Interest Income
Recognized on a
Cash Basis on
Impaired Loans
Commercial, financial, and agricultural
 
$
1,149

 
$
5

 
$
7

 
$
528

 
$
7

 
$
—

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

 
 

Residential
 
1,644

 
12

 
5

 
1,170

 
13

 
4

Commercial
 
14,773

 
71

 
25

 
9,492

 
42

 
15

Construction
 
719

 
—

 
7

 
1,120

 
—

 
8

 
 
$
18,285

 
$
88

 
$
44

 
$
12,310

 
$
62

 
$
27

 
Schedule of loan modifications that are considered TDRs
Loan modifications that are considered TDRs completed during the three months ended March 31, 2015 were as follows:
 
 
 
Three Months Ended March 31,
 
 
2015
(In Thousands, Except Number of Contracts)
 
Number
of
Contracts
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Commercial, financial, and agricultural
 
2

 
$
97

 
$
97

Real estate mortgage:
 
 

 
 

 
 

Residential
 
5

 
234

 
234

Commercial
 
1

 
270

 
270

 
 
8

 
$
601

 
$
601

 
Schedule of credit quality categories
The following table presents the credit quality categories identified above as of March 31, 2015 and December 31, 2014:
 
 
March 31, 2015
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Totals
Pass
 
$
127,707

 
$
471,113

 
$
260,831

 
$
21,486

 
$
23,273

 
$
904,410

Special Mention
 
2,315

 
1,971

 
13,983

 
400

 
—

 
18,669

Substandard
 
2,561

 
1,119

 
17,723

 
610

 
—

 
22,013

 
 
$
132,583

 
$
474,203

 
$
292,537

 
$
22,496

 
$
23,273

 
$
945,092

 
 
 
December 31, 2014
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Totals
Pass
 
$
118,210

 
$
454,885

 
$
256,444

 
$
20,927

 
$
21,509

 
$
871,975

Special Mention
 
3,186

 
2,384

 
16,262

 
445

 
—

 
22,277

Substandard
 
2,760

 
491

 
18,642

 
624

 
—

 
22,517

 
 
$
124,156

 
$
457,760

 
$
291,348

 
$
21,996

 
$
21,509

 
$
916,769
Schedule of activity in the allowance
Activity in the allowance is presented for the three months ended March 31, 2015 and 2014:
 
 
Three Months Ended March 31, 2015
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Unallocated
 
Totals
Beginning Balance
 
$
1,124

 
$
3,755

 
$
4,205

 
$
786

 
$
245

 
$
464

 
$
10,579

Charge-offs
 
(20
)
 
(1
)
 
(449
)
 
—

 
(56
)
 
—

 
(526
)
Recoveries
 
26

 
24

 
—

 
11

 
12

 
—

 
73

Provision
 
348

 
449

 
117

 
(45
)
 
(8
)
 
(161
)
 
700

Ending Balance
 
$
1,478

 
$
4,227

 
$
3,873

 
$
752

 
$
193

 
$
303

 
$
10,826

 
 
 
Three Months Ended March 31, 2014
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Unallocated
 
Totals
Beginning Balance
 
$
474

 
$
3,917

 
$
4,079

 
$
741

 
$
139

 
$
794

 
$
10,144

Charge-offs
 
—

 
(56
)
 
(2,038
)
 
—

 
(40
)
 
—

 
(2,134
)
Recoveries
 
3

 
2

 
—

 
—

 
20

 
—

 
25

Provision
 
60

 
(801
)
 
1,283

 
54

 
42

 
(153
)
 
485

Ending Balance
 
$
537

 
$
3,062

 
$
3,324

 
$
795

 
$
161

 
$
641

 
$
8,520

 
 
 
Schedule of concentration of loan
The Company has a concentration of loans at March 31, 2015 and 2014 as follows:
 
 
 
March 31,
 
 
2015
 
2014
Owners of residential rental properties
 
16.20
%
 
15.87
%
Owners of commercial rental properties
 
14.46
%
 
13.18
%
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based on impairment method as of March 31, 2015 and December 31, 2014:
 
 
March 31, 2015
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
Unallocated
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
 
Totals
Allowance for Loan Losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending allowance balance attributable to loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
264

 
$
211

 
$
1,451

 
$
66

 
$
—

 
$
—

 
$
1,992

Collectively evaluated for impairment
 
1,214

 
4,016

 
2,422

 
686

 
193

 
303

 
8,834

Total ending allowance balance
 
$
1,478

 
$
4,227

 
$
3,873

 
$
752

 
$
193

 
$
303

 
$
10,826

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
1,186

 
$
1,561

 
$
14,631

 
$
917

 
$
—

 


 
$
18,295

Loans acquired with deteriorated credit quality
 
—

 
347

 
—

 
—

 
—

 


 
347

Collectively evaluated for impairment
 
131,397

 
472,295

 
277,906

 
21,579

 
23,273

 


 
926,450

Total ending loans balance
 
$
132,583

 
$
474,203

 
$
292,537

 
$
22,496

 
$
23,273

 


 
$
945,092

 
 
 
December 31, 2014
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
Unallocated
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
 
Totals
Allowance for Loan Losses:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending allowance balance attributable to loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
298

 
$
147

 
$
1,581

 
$
67

 
$
—

 
$
—

 
$
2,093

Collectively evaluated for impairment
 
826

 
3,608

 
2,624

 
719

 
245

 
464

 
8,486

Total ending allowance balance
 
$
1,124

 
$
3,755

 
$
4,205

 
$
786

 
$
245

 
$
464

 
$
10,579

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
1,112

 
$
1,117

 
$
13,973

 
$
1,025

 
$
—

 
 

 
$
17,227

Loans acquired with deteriorated credit quality
 
—

 
349

 
—

 
—

 
—

 
 
 
349

Collectively evaluated for impairment
 
123,044

 
456,294

 
277,375

 
20,971

 
21,509

 
 

 
899,193

Total ending loans balance
 
$
124,156

 
$
457,760

 
$
291,348

 
$
21,996

 
$
21,509

 
 

 
$
916,769