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Loans (Tables)
 6 Months Ended
Jun. 30, 2020
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 June 30, 2020 and December 31, 2019:
 
 
June 30, 2020
 
 
 
 
Past Due
 
Past Due 90
 
 
 
 
 
 
 
 
30 To 89
 
Days Or More
 
Non-
 
 
(In Thousands)
 
Current
 
Days
 
& Still Accruing
 
Accrual
 
Total
Commercial, financial, and agricultural
 
$
167,025

 
$
41

 
$
2

 
$
1,836

 
$
168,904

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

Residential
 
602,480

 
1,709

 
933

 
1,092

 
606,214

Commercial
 
345,638

 
25

 
331

 
6,536

 
352,530

Construction
 
43,960

 
—

 
—

 
60

 
44,020

Consumer automobile loans
 
155,219

 
199

 
9

 
294

 
155,721

Other consumer installment loans
 
20,583

 
431

 
4

 
—

 
21,018

 
 
1,334,905

 
$
2,405

 
$
1,279

 
$
9,818

 
1,348,407

Net deferred loan fees and discounts
 
940

 
 

 
 

 
 

 
940

Allowance for loan losses
 
(12,977
)
 
 

 
 

 
 

 
(12,977
)
Loans, net
 
$
1,322,868

 
 

 
 

 
 

 
$
1,336,370


 
 
December 31, 2019
 
 
 
 
Past Due
 
Past Due 90
 
 
 
 
 
 
 
 
30 To 89
 
Days Or More
 
Non-
 
 
(In Thousands)
 
Current
 
Days
 
& Still Accruing
 
Accrual
 
Total
Commercial, financial, and agricultural
 
$
153,737

 
$
249

 
$
30

 
$
2,197

 
$
156,213

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

Residential
 
615,580

 
4,881

 
1,529

 
1,266

 
623,256

Commercial
 
355,597

 
775

 
164

 
6,725

 
363,261

Construction
 
37,871

 
131

 
—

 
65

 
38,067

Consumer automobile loans
 
149,703

 
709

 
—

 
105

 
150,517

Other consumer installment loans
 
22,124

 
579

 
324

 
16

 
23,043

 
 
1,334,612

 
$
7,324

 
$
2,047

 
$
10,374

 
1,354,357

Net deferred loan fees and discounts
 
1,187

 
 

 
 

 
 

 
1,187

Allowance for loan losses
 
(11,894
)
 
 

 
 

 
 

 
(11,894
)
Loans, net
 
$
1,323,905

 
 

 
 

 
 

 
$
1,343,650
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 and six months ended June 30, 2020 and 2019:
 
 
Three Months Ended June 30,
 
 
2020
 
2019
(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
 
$
26

 
$
—

 
$
33

 
$
44

Real estate mortgage:
 
 

 
 

 
 

 
 

Residential
 
4

 
—

 
33

 
19

Commercial
 
22

 
—

 
76

 
34

Construction
 
1

 
—

 
1

 
1

Consumer automobile loans
 
—

 
3

 
1

 
1

Other consumer installment loans
 
3

 
—

 
—

 
—

 
 
$
56

 
$
3

 
$
144

 
$
99

 
 
Six Months Ended June 30,
 
 
2020
 
2019
(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
 
$
35

 
$
—

 
$
57

 
$
83

Real estate mortgage:
 
 

 
 

 
 

 
 

Residential
 
13

 
—

 
66

 
42

Commercial
 
64

 
—

 
165

 
74

Construction
 
1

 
—

 
2

 
2

Consumer automobile loans
 
2

 
3

 
3

 
2

Other consumer installment loans
 
3

 
—

 
1

 
—

 
 
$
118

 
$
3

 
$
294

 
$
203
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 June 30, 2020 and December 31, 2019:
 
 
June 30, 2020
 
 
Recorded
 
Unpaid Principal
 
Related
(In Thousands)
 
Investment
 
Balance
 
Allowance
With no related allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
$
1,820

 
$
4,607

 
$
—

Real estate mortgage:
 
 

 
 

 
 

Residential
 
4,305

 
4,305

 
—

Commercial
 
4,113

 
4,113

 
—

Construction
 
60

 
60

 
—

Consumer automobile loans
 
—

 
—

 
—

Installment loans to individuals
 
—

 
—

 
—

 
 
10,298

 
13,085

 
—

With an allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
16

 
16

 
—

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,168

 
1,168

 
180

Commercial
 
3,311

 
3,361

 
959

Construction
 
—

 
—

 
—

Consumer automobile loans
 
111

 
293

 
151

Installment loans to individuals
 
—

 
—

 
—

 
 
4,606

 
4,838

 
1,290

Total:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
1,836

 
4,623

 
—

Real estate mortgage:
 
 

 
 

 
 

Residential
 
5,473

 
5,473

 
180

Commercial
 
7,424

 
7,474

 
959

Construction
 
60

 
60

 
—

Consumer automobile loans
 
111

 
293

 
151

Installment loans to individuals
 
—

 
—

 
—

 
 
$
14,904

 
$
17,923

 
$
1,290


 
 
December 31, 2019
 
 
Recorded
 
Unpaid Principal
 
Related
(In Thousands)
 
Investment
 
Balance
 
Allowance
With no related allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
$
2,285

 
$
5,072

 
$
—

Real estate mortgage:
 
 

 
 

 
 

Residential
 
5,008

 
5,008

 
—

Commercial
 
5,035

 
5,035

 
—

Construction
 
65

 
65

 
—

Consumer automobile loans
 
—

 
—

 
—

Installment loans to individuals
 
—

 
—

 
—

 
 
12,393

 
15,180

 
—

With an allowance recorded:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
—

 
—

 
—

Real estate mortgage:
 
 

 
 

 
 

Residential
 
1,168

 
1,200

 
211

Commercial
 
3,540

 
3,590

 
1,104

Construction
 
—

 
—

 
—

Consumer automobile loans
 
130

 
130

 
62

Installment loans to individuals
 
16

 
16

 
16

 
 
4,854

 
4,936

 
1,393

Total:
 
 

 
 

 
 

Commercial, financial, and agricultural
 
2,285

 
5,072

 
—

Real estate mortgage:
 
 

 
 

 
 

Residential
 
6,176

 
6,208

 
211

Commercial
 
8,575

 
8,625

 
1,104

Construction
 
65

 
65

 
—

Consumer automobile loans
 
130

 
130

 
62

Installment loans to individuals
 
16

 
16

 
16

 
 
$
17,247

 
$
20,116

 
$
1,393
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 and six months ended June 30, 2020 and 2019:
 
 
Three Months Ended June 30,
 
 
2020
 
2019
(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
 
$
1,931

 
$
—

 
$
—

 
$
5,298

 
$
2

 
$
44

Real estate mortgage:
 
 

 
 

 
 

 

 

 
 

 
 

Residential
 
5,602

 
57

 
—

 
4,078

 
27

 
22

Commercial
 
7,992

 
20

 
—

 
9,894

 
30

 
33

Construction
 
62

 
—

 
—

—

72

 
—

 
1

Consumer automobile
 
157

 
1

 
2

—

55

 
—

 
—

Other consumer installment loans
 
—

 
—

 
—

—

18

 
—

 
—

 
 
$
15,744

 
$
78

 
$
2

$
—

$
19,415

 
$
59

 
$
100

 
 
Six Months Ended June 30,
 
 
2020
 
2019
(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
 
$
2,049

 
$
1

 
$
—

 
$
5,286

 
$
2

 
$
82

Real estate mortgage:
 
 

 
 

 
 

 
 

 
 

 
 

Residential
 
5,793

 
114

 
—

 
4,122

 
55

 
39

Commercial
 
8,186

 
46

 
—

 
10,484

 
61

 
69

Construction
 
63

 
—

 
—

 
73

 
—

 
2

Consumer automobile
 
148

 
1

 
2

 
47

 
—

 
1

Other consumer installment loans
 
5

 
—

 
—

 
13

 
—

 
—

 
 
$
16,244

 
$
162

 
$
2

 
$
20,025

 
$
118

 
$
193
Schedule of Loan Modifications that are Considered TDRs Loan modifications that are considered TDRs completed during the three and six months ended June 30, 2019 were as follows:
 
Three Months Ended June 30,
 
 
2019
(In Thousands, Except Number of Contracts)
 
Number
of
Contracts
 
Pre-Modification Outstanding Recorded Investment
 
Post-Modification Outstanding Recorded Investment
Commercial, financial, and agricultural
 
2

 
$
4,014

 
$
4,014

Real estate mortgage:
 
 
 
 
 
 
Residential
 
—

 
—

 
—

Commercial
 
—

 
—

 
—

Construction
 
2

 
2,862

 
2,862

 
 
4

 
$
6,876

 
$
6,876

 
 
 
 
 
 
 
 
Six Months Ended June 30,
 
 
2019
(In Thousands, Except Number of Contracts)
 
Number
of
Contracts
 
Pre-Modification
Outstanding
Recorded
Investment
 
Post-Modification
Outstanding
Recorded
Investment
Commercial, financial, and agricultural
 
2

 
$
4,014

 
$
4,014

Real estate mortgage:
 
 

 
 

 
 

Residential
 
—

 
—

 
—

Commercial
 
—

 
—

 
—

Construction
 
2

 
2,862

 
2,860

 
 
4

 
$
6,876

 
$
6,874
Schedule of credit quality categories
The following table presents the credit quality categories identified above as of June 30, 2020 and December 31, 2019:
 
 
June 30, 2020
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Consumer automobile
 
Other consumer installment loans
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
 
Totals
Pass
 
$
162,604

 
$
603,806

 
$
339,507

 
$
44,010

 
$
155,694

 
$
21,018

 
$
1,326,639

Special Mention
 
5,043

 
1,444

 
10,368

 
10

 
—

 
—

 
16,865

Substandard
 
1,257

 
964

 
2,655

 
—

 
27

 
—

 
4,903

 
 
$
168,904

 
$
606,214

 
$
352,530

 
$
44,020

 
$
155,721

 
$
21,018

 
$
1,348,407


 
 
December 31, 2019
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Consumer automobile
 
Other consumer installment loans
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
 
Totals
Pass
 
$
149,349

 
$
618,350

 
$
348,864

 
$
37,931

 
$
150,517

 
$
23,039

 
$
1,328,050

Special Mention
 
3,174

 
2,436

 
5,080

 
—

 
—

 
—

 
10,690

Substandard
 
3,690

 
2,470

 
9,317

 
136

 
—

 
4

 
15,617

 
 
$
156,213

 
$
623,256

 
$
363,261

 
$
38,067

 
$
150,517

 
$
23,043

 
$
1,354,357
Schedule of activity in the allowance
Activity in the allowance is presented for the three and six months ended June 30, 2020 and 2019:
 
 
Three Months Ended June 30, 2020
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Consumer automobile
 
Other consumer installment
 
 
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
 
Unallocated
 
Totals
Beginning Balance
 
$
1,897

 
$
4,537

 
$
3,414

 
$
160

 
$
1,855

 
$
267

 
$
370

 
$
12,500

Charge-offs
 
(8
)
 
(127
)
 
—

 
—

 
(14
)
 
(82
)
 
—

 
(231
)
Recoveries
 
2

 
26

 
—

 
3

 
6

 
26

 
—

 
63

Provision
 
62

 
42

 
(79
)
 
(13
)
 
367

 
(84
)
 
350

 
645

Ending Balance
 
$
1,953

 
$
4,478

 
$
3,335

 
$
150

 
$
2,214

 
$
127

 
$
720

 
$
12,977

 
 
 
Three Months Ended June 30, 2019
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Consumer automobile
 
Other consumer installment
 
 
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
 
Unallocated
 
Totals
Beginning Balance
 
$
1,732

 
$
5,730

 
$
3,802

 
$
130

 
$
1,402

 
$
278

 
$
718

 
$
13,792

Charge-offs
 
(30
)
 
(64
)
 
(11
)
 
—

 
(38
)
 
(66
)
 
—

 
(209
)
Recoveries
 
36

 
—

 
1

 
2

 
34

 
30

 
—

 
103

Provision
 
(154
)
 
83

 
(269
)
 
—

 
37

 
(2
)
 
620

 
315

Ending Balance
 
$
1,584

 
$
5,749

 
$
3,523

 
$
132

 
$
1,435

 
$
240

 
$
1,338

 
$
14,001

 
t
 
Six Months Ended June 30, 2020
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Consumer automobile
 
Other consumer installment
 
 
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
 
Unallocated
 
Totals
Beginning Balance
 
$
1,779

 
$
4,306

 
$
3,210

 
$
118

 
$
1,780

 
$
278

 
$
423

 
$
11,894

Charge-offs
 
(22
)
 
(168
)
 
—

 
—

 
(89
)
 
(182
)
 
—

 
(461
)
Recoveries
 
23

 
47

 
—

 
5

 
7

 
67

 
—

 
149

Provision
 
173

 
293

 
125

 
27

 
516

 
(36
)
 
297

 
1,395

Ending Balance
 
$
1,953

 
$
4,478

 
$
3,335

 
$
150

 
$
2,214

 
$
127

 
$
720

 
$
12,977

 
 
Six Months Ended June 30, 2019
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Consumer automobile
 
Other consumer installment
 
 
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
 
Unallocated
 
Totals
Beginning Balance
 
$
1,680

 
$
5,616

 
$
4,047

 
$
143

 
$
1,328

 
$
259

 
$
764

 
$
13,837

Charge-offs
 
(80
)
 
(137
)
 
(150
)
 
—

 
(138
)
 
(162
)
 
—

 
(667
)
Recoveries
 
42

 
1

 
1

 
7

 
60

 
45

 
—

 
156

Provision
 
(58
)
 
269

 
(375
)
 
(18
)
 
185

 
98

 
574

 
675

Ending Balance
 
$
1,584

 
$
5,749

 
$
3,523

 
$
132

 
$
1,435

 
$
240

 
$
1,338

 
$
14,001
Schedule of concentration of loan
The Company has a concentration of the following to gross loans at June 30, 2020 and 2019: 
 
 
June 30,
 
 
2020
 
2019
Owners of residential rental properties
 
15.98
%
 
15.07
%
Owners of commercial rental properties
 
13.00
%
 
12.09
%
Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment 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 June 30, 2020 and December 31, 2019:
 
 
June 30, 2020
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Consumer Automobile
 
Other consumer installment
 
Unallocated
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
 
 
Totals
Allowance for Loan Losses:
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

Ending allowance balance attributable to loans:
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

Individually evaluated for impairment
 
$
—

 
$
180

 
$
959

 
$
—

 
$
151

 
$
—

 
$
—

 
$
1,290

Collectively evaluated for impairment
 
1,953

 
4,298

 
2,376

 
150

 
2,063

 
127

 
720

 
11,687

Total ending allowance balance
 
$
1,953

 
$
4,478

 
$
3,335

 
$
150

 
$
2,214

 
$
127

 
$
720

 
$
12,977

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

Individually evaluated for impairment
 
$
1,836

 
$
5,473

 
$
7,424

 
$
60

 
$
111

 
$
—

 


 
$
14,904

Collectively evaluated for impairment
 
167,068

 
600,741

 
345,106

 
43,960

 
155,610

 
21,018

 


 
1,333,503

Total ending loans balance
 
$
168,904

 
$
606,214

 
$
352,530

 
$
44,020

 
$
155,721

 
$
21,018

 


 
$
1,348,407


 
 
December 31, 2019
 
 
Commercial, Financial, and Agricultural
 
Real Estate Mortgages
 
Consumer Automobile
 
Other consumer installment
 
Unallocated
 
 
(In Thousands)
 
 
Residential
 
Commercial
 
Construction
 
 
 
 
Totals
Allowance for Loan Losses:
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

Ending allowance balance attributable to loans:
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

Individually evaluated for impairment
 
$
—

 
$
211

 
$
1,104

 
$
—

 
$
62

 
$
16

 
$
—

 
$
1,393

Collectively evaluated for impairment
 
1,779

 
4,095

 
2,106

 
118

 
1,718

 
262

 
423

 
10,501

Total ending allowance balance
 
$
1,779

 
$
4,306

 
$
3,210

 
$
118

 
$
1,780

 
$
278

 
$
423

 
$
11,894

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

Individually evaluated for impairment
 
$
2,285

 
$
6,176

 
$
8,575

 
$
65

 
$
130

 
$
16

 
 

 
$
17,247

Collectively evaluated for impairment
 
153,928

 
617,080

 
354,686

 
38,002

 
150,387

 
23,027

 
 

 
1,337,110

Total ending loans balance
 
$
156,213

 
$
623,256

 
$
363,261

 
$
38,067

 
$
150,517

 
$
23,043

 
 

 
$
1,354,357