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Loans (Tables)
 3 Months Ended
Mar. 31, 2017
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, 2017 and December 31, 2016:
 
 
 
March 31, 2017
 
 
 
 
Past Due
 
Past Due 90
 
 
 
 
 
 
 
 
30 To 89
 
Days Or More
 
Non-
 
 
(In Thousands)
 
Current
 
Days
 
& Still Accruing
 
Accrual
 
Total
Commercial, financial, and agricultural
 
$
141,648

 
$
277

 
$
9

 
$
128

 
$
142,062

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

Residential
 
558,068

 
5,244

 
—

 
1,899

 
565,211

Commercial
 
302,700

 
671

 
132

 
8,682

 
312,185

Construction
 
37,289

 
101

 
—

 
—

 
37,390

Installment loans to individuals
 
54,950

 
605

 
—

 
21

 
55,576

 
 
1,094,655

 
$
6,898

 
$
141

 
$
10,730

 
1,112,424

Net deferred loan fees and discounts
 
(1,324
)
 
 

 
 

 
 

 
(1,324
)
Allowance for loan losses
 
(12,905
)
 
 

 
 

 
 

 
(12,905
)
Loans, net
 
$
1,080,426

 
 

 
 

 
 

 
$
1,098,195


 
 
December 31, 2016
 
 
 
 
Past Due
 
Past Due 90
 
 
 
 
 
 
 
 
30 To 89
 
Days Or More
 
Non-
 
 
(In Thousands)
 
Current
 
Days
 
& Still Accruing
 
Accrual
 
Total
Commercial, financial, and agricultural
 
$
145,179

 
$
785

 
$
14

 
$
132

 
$
146,110

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

Residential
 
553,053

 
9,112

 
587

 
1,988

 
564,740

Commercial
 
296,537

 
786

 
268

 
8,591

 
306,182

Construction
 
33,879

 
771

 
—

 
—

 
34,650

Installment loans to individuals
 
43,008

 
202

 
1

 
45

 
43,256

 
 
1,071,656

 
$
11,656

 
$
870

 
$
10,756

 
1,094,938

Net deferred loan fees and discounts
 
(1,257
)
 
 

 
 

 
 

 
(1,257
)
Allowance for loan losses
 
(12,896
)
 
 

 
 

 
 

 
(12,896
)
Loans, net
 
$
1,057,503

 
 

 
 

 
 

 
$
1,080,785
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, 2017 and 2016:
 
 
Three Months Ended March 31,
 
 
2017
 
2016
(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
 
$
6

 
$
—

 
$
4

 
$
1

Real estate mortgage:
 
 

 
 

 
 

 
 

Residential
 
151

 
101

 
32

 
14

Commercial
 
496

 
105

 
169

 
64

Construction
 
—

 
—

 
6

 
—

 
 
$
653

 
$
206

 
$
211

 
$
79

 
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, 2017 and December 31, 2016:
 
 
March 31, 2017
 
 
Recorded
 
Unpaid Principal
 
Related
(In Thousands)
 
Investment
 
Balance
 
Allowance
With no related allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
$
55

 
$
55

 
$
—

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,563

 
1,563

 
—

Commercial
 
1,564

 
1,564

 
—

Installment loans to individuals
 
—

 
—

 
—

 
 
3,182

 
3,182

 
—

With an allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
129

 
129

 
74

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,674

 
1,674

 
567

Commercial
 
10,571

 
10,666

 
1,723

Installment loans to individuals
 
4

 
4

 
4

 
 
12,378

 
12,473

 
2,368

Total:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
184

 
184

 
74

Real estate mortgage:
 
 

 
 

 
 

Residential
 
3,237

 
3,237

 
567

Commercial
 
12,135

 
12,230

 
1,723

Installment loans to individuals
 
4

 
4

 
4

 
 
$
15,560

 
$
15,655

 
$
2,368


 
 
December 31, 2016
 
 
Recorded
 
Unpaid Principal
 
Related
(In Thousands)
 
Investment
 
Balance
 
Allowance
With no related allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
$
109

 
$
109

 
$
—

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,584

 
1,584

 
—

Commercial
 
1,833

 
1,833

 
—

Installment loans to individuals
 
—

 
—

 
—

 
 
3,526

 
3,526

 
—

With an allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
132

 
132

 
74

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,893

 
1,893

 
437

Commercial
 
10,425

 
10,520

 
1,668

Installment loans to individuals
 
—

 
—

 
—

 
 
12,450

 
12,545

 
2,179

Total:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
241

 
241

 
74

Real estate mortgage:
 
 

 
 

 
 

Residential
 
3,477

 
3,477

 
437

Commercial
 
12,258

 
12,353

 
1,668

Installment loans to individuals
 
—

 
—

 
—

 
 
$
15,976

 
$
16,071

 
$
2,179
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, 2017 and 2016:
 
 
Three Months Ended March 31,
 
 
2017
 
2016
(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
 
$
212

 
$
4

 
$
—

 
$
533

 
$
4

 
$
1

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

 
 

Residential
 
3,258

 
22

 
16

 
2,899

 
22

 
14

Commercial
 
11,946

 
33

 
10

 
12,829

 
82

 
63

Construction
 
—

 
—

 
—

 
245

 
—

 
1

Installment loans to individuals
 
2

 
—

 
—

 
—

 
—

 
—

 
 
$
15,418

 
$
59

 
$
26

 
$
16,506

 
$
108

 
$
79

 
Schedule of credit quality categories
The following table presents the credit quality categories identified above as of March 31, 2017 and December 31, 2016:
 
 
March 31, 2017
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Totals
Pass
 
$
136,886

 
$
561,995

 
$
283,564

 
$
37,236

 
$
55,576

 
$
1,075,257

Special Mention
 
2,852

 
850

 
9,907

 
—

 
—

 
13,609

Substandard
 
2,324

 
2,366

 
18,714

 
154

 
—

 
23,558

 
 
$
142,062

 
$
565,211

 
$
312,185

 
$
37,390

 
$
55,576

 
$
1,112,424


 
 
December 31, 2016
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Totals
Pass
 
$
140,497

 
$
561,440

 
$
277,916

 
$
34,493

 
$
43,256

 
$
1,057,602

Special Mention
 
2,943

 
740

 
11,143

 
—

 
—

 
14,826

Substandard
 
2,670

 
2,560

 
17,123

 
157

 
—

 
22,510

 
 
$
146,110

 
$
564,740

 
$
306,182

 
$
34,650

 
$
43,256

 
$
1,094,938
Schedule of activity in the allowance
Activity in the allowance is presented for the three months ended March 31, 2017 and 2016:
 
 
Three Months Ended March 31, 2017
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Unallocated
 
Totals
Beginning Balance
 
$
1,554

 
$
5,383

 
$
4,975

 
$
178

 
$
416

 
$
390

 
$
12,896

Charge-offs
 
(213
)
 
(98
)
 
—

 
—

 
(77
)
 
—

 
(388
)
Recoveries
 
6

 
30

 
—

 
3

 
28

 
—

 
67

Provision
 
94

 
256

 
(509
)
 
6

 
181

 
302

 
330

Ending Balance
 
$
1,441

 
$
5,571

 
$
4,466

 
$
187

 
$
548

 
$
692

 
$
12,905

 
 
 
Three Months Ended March 31, 2016
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Installment Loans to Individuals
 
 
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
Unallocated
 
Totals
Beginning Balance
 
$
1,532

 
$
5,116

 
$
4,217

 
$
160

 
$
243

 
$
776

 
$
12,044

Charge-offs
 
—

 
—

 
—

 
—

 
(51
)
 
—

 
(51
)
Recoveries
 
—

 
3

 
5

 
3

 
28

 
—

 
39

Provision
 
(278
)
 
4

 
250

 
(16
)
 
44

 
346

 
350

Ending Balance
 
$
1,254

 
$
5,123

 
$
4,472

 
$
147

 
$
264

 
$
1,122

 
$
12,382

 

The shifts in allocation of the loan provision is due to an increase in residential originations along with a tapering of commercial originations.
 
 
Schedule of concentration of loan
The Company has a concentration of the following to gross loans at March 31, 2017 and 2016:
 
 
 
March 31,
 
 
2017
 
2016
Owners of residential rental properties
 
16.29
%
 
16.27
%
Owners of commercial rental properties
 
14.66
%
 
14.27
%
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, 2017 and December 31, 2016:

 
 
March 31, 2017
 
 
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
 
$
74

 
$
567

 
$
1,723

 
$
—

 
$
4

 
$
—

 
$
2,368

Collectively evaluated for impairment
 
1,367

 
5,004

 
2,743

 
187

 
544

 
692

 
10,537

Total ending allowance balance
 
$
1,441

 
$
5,571

 
$
4,466

 
$
187

 
$
548

 
$
692

 
$
12,905

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
184

 
$
3,237

 
$
12,135

 
$
—

 
$
4

 


 
$
15,560

Collectively evaluated for impairment
 
141,878

 
561,974

 
300,050

 
37,390

 
55,572

 


 
1,096,864

Total ending loans balance
 
$
142,062

 
$
565,211

 
$
312,185

 
$
37,390

 
$
55,576

 


 
$
1,112,424


 
 
December 31, 2016
 
 
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
 
$
74

 
$
437

 
$
1,668

 
$
—

 
$
—

 
$
—

 
$
2,179

Collectively evaluated for impairment
 
1,480

 
4,946

 
3,307

 
178

 
416

 
390

 
10,717

Total ending allowance balance
 
$
1,554

 
$
5,383

 
$
4,975

 
$
178

 
$
416

 
$
390

 
$
12,896

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Individually evaluated for impairment
 
$
241

 
$
3,477

 
$
12,258

 
$
—

 
$
—

 
 

 
$
15,976

Collectively evaluated for impairment
 
145,869

 
561,263

 
293,924

 
34,650

 
43,256

 
 

 
1,078,962

Total ending loans balance
 
$
146,110

 
$
564,740

 
$
306,182

 
$
34,650

 
$
43,256

 
 

 
$
1,094,938