Loans And The Allowance For Credit Losses (Tables)

6 Months Ended

Jun. 30, 2013

Loans And The Allowance For Credit Losses [Abstract]

Composition Of The Loan Portfolio

(In thousands)	June 30, 2013		December 31, 2012
Commercial, financial and agricultural	$	169,215	$	165,023
Municipal loans		45,319		84,689
Real estate loans – residential		520,393		489,951
Real estate loans – commercial		331,064		327,622
Real estate loans – construction		31,813		10,561
Installment loans		5,667		4,701
All other loans		544		376
Total loans	$	1,104,015	$	1,082,923

Loan Loss Experience And Activity In The Allowance For Credit Losses

The following table reflects our loan loss experience and activity in the allowance for credit losses by portfolio segment for the three months ended June 30, 2013:

(In thousands)	Commercial, financial and agricultural		Municipal		Real estate- residential		Real estate- commercial		Real estate-construction		Installment		All other		Totals
Allowance for credit losses:
Beginning balance	$	3,411	$	655	$	3,708	$	4,511	$	275	$	16	$	12	$	12,588
Charge-offs		0		0		(96)		0		0		0		(28)		(124)
Recoveries		40		0		1		0		0		0		3		44
Provision (credit)		(177)		(255)		(52)		331		276		5		22		150
Ending balance	$	3,274	$	400	$	3,561	$	4,842	$	551	$	21	$	9	$	12,658

The following table reflects our loan loss experience and activity in the allowance for credit losses by portfolio segment for the six months ended June 30, 2013:

(In thousands)	Commercial, financial and agricultural		Municipal		Real estate- residential		Real estate- commercial		Real estate-construction		Installment		All other		Totals
Allowance for credit losses:
Beginning balance	$	3,447	$	522	$	3,582	$	4,499	$	234	$	17	$	11	$	12,312
Charge-offs		0		0		(103)		(1)		0		0		(48)		(152)
Recoveries		49		0		4		40		1		0		4		98
Provision (credit)		(222)		(122)		78		304		316		4		42		400
Ending balance	$	3,274	$	400	$	3,561	$	4,842	$	551	$	21	$	9	$	12,658

The following table reflects our loan loss experience and activity in the allowance for credit losses by portfolio segment  for the three months ended June 30, 2012:

(In thousands)	Commercial, financial and agricultural		Municipal		Real estate- residential		Real estate- commercial		Real estate-construction		Installment		All other		Totals
Allowance for credit losses:
Beginning balance	$	2,733	$	542	$	3,374	$	4,684	$	280	$	18	$	1	$	11,632
Charge-offs		(9)		0		(20)		0		0		0		0		(29)
Recoveries		(2)		0		12		(1)		5		0		0		14
Provision (credit)		380		(132)		110		(126)		(52)		3		17		200
Ending balance	$	3,102	$	410	$	3,476	$	4,557	$	233	$	21	$	18	$	11,817

The following table reflects our loan loss experience and activity in the allowance for credit losses by portfolio segment  for the six months ended June 30, 2012:

(In thousands)	Commercial, financial and agricultural		Municipal		Real estate- residential		Real estate- commercial		Real estate-construction		Installment		All other		Totals
Allowance for credit losses:
Beginning balance	$	2,905	$	309	$	3,138	$	4,484	$	477	$	23	$	17	$	11,353
Charge-offs		(9)		0		(20)		0		0		0		0		(29)
Recoveries		18		0		12		0		13		0		0		43
Provision (credit)		188		101		346		73		(257)		(2)		1		450
Ending balance	$	3,102	$	410	$	3,476	$	4,557	$	233	$	21	$	18	$	11,817

Allowance For Loan Losses And The Recorded Investment In Loans

The following presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based upon impairment method at June 30, 2013:

(In thousands)	Commercial, financial and agricultural		Municipal		Real estate- residential		Real estate- commercial		Real estate-construction		Installment		All other		Totals
Allowance for credit losses:
Ending balance individually evaluated for impairment	$	0	$	0	$	129	$	57	$	0	$	3	$	0	$	189
Ending balance collectively evaluated for impairment		3,274		400		3,432		4,785		551		18		9		12,469
Totals	$	3,274	$	400	$	3,561	$	4,842	$	551	$	21	$	9	$	12,658
Financing receivables:
Ending balance individually evaluated for impairment	$	283	$	0	$	1,031	$	277	$	0	$	9	$	0	$	1,600
Ending balance collectively evaluated for impairment		168,932		45,319		519,362		330,787		31,813		5,658		544		1,102,415
Totals	$	169,215	$	45,319	$	520,393	$	331,064	$	31,813	$	5,667	$	544	$	1,104,015
Components:
Allowance for loan losses	$	2,695	$	392	$	3,474	$	4,799	$	500	$	21	$	9	$	11,890
Reserve for undisbursed lines of credit		579		8		87		43		51		0		0		768
Total allowance for credit losses	$	3,274	$	400	$	3,561	$	4,842	$	551	$	21	$	9	$	12,658

The following presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment based upon impairment method at December 31, 2012:

(In thousands)	Commercial, financial and agricultural		Municipal		Real estate- residential		Real estate- commercial		Real estate-construction		Installment		All other		Totals
Allowance for credit losses:
Ending balance individually evaluated for impairment	$	149	$	0	$	361	$	59	$	0	$	0	$	0	$	569
Ending balance collectively evaluated for impairment		3,298		522		3,221		4,440		234		17		11		11,743
Totals	$	3,447	$	522	$	3,582	$	4,499	$	234	$	17	$	11	$	12,312
Financing receivables:
Ending balance individually evaluated for impairment	$	233	$	0	$	2,317	$	472	$	0	$	0	$	0	$	3,022
Ending balance collectively evaluated for impairment		164,790		84,689		487,634		327,150		10,561		4,701		376		1,079,901
Totals	$	165,023	$	84,689	$	489,951	$	327,622	$	10,561	$	4,701	$	376	$	1,082,923
Components:
Allowance for loan losses	$	2,915	$	494	$	3,494	$	4,444	$	187	$	17	$	11	$	11,562
Reserve for undisbursed lines of credit		532		28		88		55		47		0		0		750
Total allowance for credit losses	$	3,447	$	522	$	3,582	$	4,499	$	234	$	17	$	11	$	12,312

Recorded Investment of Loans, Including Nonaccrual And Restructured Loans, By Class

The table below presents the recorded investment of loans, including nonaccrual and restructured loans, segregated by class, with delinquency aging as of June 30, 2013:

	30-59 Days		60-89 Days		90 Days or More		Total Past						Greater Than 90 Days and
(In thousands)	Past Due		Past Due		Past Due		Due		Current		Total		Accruing
Commercial, financial and agricultural	$	6	$	0	$	0	$	6	$	169,209	$	169,215	$	0
Municipal		0		0		0		0		45,319		45,319		0
Real estate-residential:
First mortgage		5		17		658		680		483,904		484,584		0
Second mortgage		48		0		165		213		35,596		35,809		75
Real estate-commercial:
Owner occupied		49		0		107		156		223,111		223,267		0
Non-owner occupied		0		0		0		0		107,797		107,797		0
Real estate-construction:
Residential		0		0		0		0		1,828		1,828		0
Commercial		74		0		0		74		29,911		29,985		0
Installment		9		0		0		9		5,658		5,667		0
Other		0		0		0		0		544		544		0
Total	$	191	$	17	$	930	$	1,138	$	1,102,877	$	1,104,015	$	75

Out of the total past due loans above $869 thousand are non-accruing or restructured.

The table below presents the recorded investment of loans, including nonaccrual and restructured loans, segregated by class, with delinquency aging as of December 31, 2012:

	30-59 Days		60-89 Days		90 Days or More		Total Past						Greater Than 90 Days and
(In thousands)	Past Due		Past Due		Past Due		Due		Current		Total		Accruing
Commercial, financial and agricultural	$	0	$	0	$	0	$	0	$	165,023	$	165,023	$	0
Municipal		0		0		0		0		84,689		84,689		0
Real estate-residential:
First mortgage		92		43		950		1,085		449,956		451,041		0
Second mortgage		0		0		716		716		38,194		38,910		0
Real estate-commercial:
Owner occupied		0		0		295		295		222,013		222,308		0
Non-owner occupied		0		0		0		0		105,314		105,314		0
Real estate-construction:
Residential		0		0		0		0		1,559		1,559		0
Commercial		0		0		0		0		9,002		9,002		0
Installment		0		0		0		0		4,701		4,701		0
Other		0		0		0		0		376		376		0
Total	$	92	$	43	$	1,961	$	2,096	$	1,080,827	$	1,082,923	$	0

Impaired Loans By Class

Impaired loans by class at June 30, 2013 are as follows:

(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Commercial, financial and agricultural	$	283	$	1,186	$	0
Real estate – residential:
First mortgage		372		759		0
Second mortgage		165		202		0
Real estate – commercial:
Owner occupied		107		243		0
Non-owner occupied		0		70		0
Installment		0		44		0
With related allowance recorded
Commercial, financial and agricultural		0		0		0
Real estate – residential:
First mortgage		494		501		129
Second mortgage		0		0		0
Real estate – commercial:
Owner occupied		170		177		57
Installment		9		9		3
Total
Commercial, financial and agricultural		283		1,186		0
Real estate – residential		1,031		1,462		129
Real estate – commercial		277		490		57
Installment		9		53		3
Total	$	1,600	$	3,191	$	189

Impaired loans by class at December 31, 2012 are as follows:

(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Commercial, financial and agricultural	$	7	$	970	$	0
Real estate – residential:
First mortgage		853		1,174		0
Second mortgage		16		52		0
Real estate – commercial:
Owner occupied		295		487		0
Non-owner occupied		0		70		0
Installment		0		45		0
With related allowance recorded
Commercial, financial and agricultural		226		228		149
Real estate – residential:
First mortgage		748		766		173
Second mortgage		700		700		188
Real estate – commercial:
Owner occupied		177		179		59
Total
Commercial, financial and agricultural		233		1,198		149
Real estate – residential		2,317		2,692		361
Real estate – commercial		472		736		59
Installment		0		45		0
Total	$	3,022	$	4,671	$	569

Average Recorded Investment And Interest Income Recognized On Impaired Loans

Average recorded investment and interest income recognized on our impaired loans for the three and six months ended June 30, 2013 are as follows:

	Three Months				Six Months
(In thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial, financial and agricultural	$	292	$	19	$	199	$	27
Real estate – residential:
First mortgage		562		11		701		44
Second mortgage		142		1		105		1
Real estate – commercial:
Owner occupied		107		0		71		15
Non-owner occupied		0		0		0		0
Installment		0		0		2		0
With related allowance recorded
Commercial, financial and agricultural		279		0		346		0
Real estate – residential:
First mortgage		493		0		585		0
Second mortgage		233		0		467		0
Real estate – commercial:
Owner occupied		171		0		173		0
Installment		9		0		6		0
Total
Commercial, financial and agricultural		571		19		545		27
Real estate – residential		1,430		12		1,858		45
Real estate – commercial		278		0		244		15
Installment		9		0		8		0
Total	$	2,288	$	31	$	2,655	$	87

There was no interest recognized on a cash basis for either period in the table above.

Average recorded investment and interest income recognized on our impaired loans for the three and six months ended June 30, 2012 are as follows:

	Three Months				Six Months
(In thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial, financial and agricultural	$	54	$	1	$	62	$	1
Real estate – residential:
First mortgage		747		16		782		20
Second mortgage		443		27		321		27
Real estate – commercial:
Owner occupied		531		2		433		3
Non-owner occupied		0		0		0		0
Installment		0		0		0		0
With related allowance recorded
Commercial, financial and agricultural		24		0		28		0
Real estate – residential:
First mortgage		624		0		704		0
Second mortgage		17		0		50		0
Real estate – commercial:
Owner occupied		0		0		54		0
Total
Commercial, financial and agricultural		78		1		90		1
Real estate – residential		1,831		43		1,857		47
Real estate – commercial		531		2		487		3
Installment		0		0		0		0
Total	$	2,440	$	46	$	2,434	$	51

Nonperforming Loans

(In thousands)	June 30, 2013		December 31, 2012
Nonaccrual  loans	$	1,116	$	2,355
Loans greater than 90 days and accruing		75		0
Troubled debt restructurings ("TDRs")		409		557
Total nonperforming loans	$	1,600	$	2,912

Summary Of TDRs

	Three Months Ended					Six Months Ended
	Number	Pre-Modification Recorded		Post-Modification Recorded		Number	Pre-Modification Recorded		Post-Modification Recorded
(Dollars in thousands)	of Loans	Investment		Investment		of Loans	Investment		Investment
Real estate – residential:
First mortgage	3	$	93	$	93	3	$	93	$	93
Real estate - commercial:
Owner occupied	0	$	0	$	0	1	$	182	$	182

Nonaccrual Loans By Class

(In thousands)	June 30, 2013		December 31, 2012
Commercial, financial and agricultural	$	279	$	225
Real estate - residential:
First mortgage		631		1,119
Second mortgage		90		716
Real estate - commercial:
Owner occupied		107		295
Non owner occupied		0		0
Installment		9		0
Total nonaccruing non-TDR loans	$	1,116	$	2,355
Nonaccruing TDR’s
Commercial, financial and agricultural		4		8
Real estate – residential:
First mortgage		64		189
Real estate - commercial:
Owner occupied		170		177
Total nonaccrual loans including TDRs	$	1,354	$	2,729

Summary Of Loans By Credit Quality Indicator

Below is a summary of loans by credit quality indicator as of June 30, 2013:

	Unrated Residential and				Pass-		Special		Sub-
(In thousands)	Consumer		Pass		Watch		Mention		Standard		Total
Commercial, financial and agricultural	$	233	$	140,652	$	24,714	$	124	$	3,492	$	169,215
Municipal		0		29,795		15,524		0		0		45,319
Real estate – residential:
First mortgage		446,705		35,375		1,352		69		1,083		484,584
Second mortgage		35,799		0		0		0		10		35,809
Real estate – commercial:
Owner occupied		111		178,151		26,082		224		18,699		223,267
Non-owner occupied		54		94,323		11,692		0		1,728		107,797
Real estate – construction:
Residential		398		0		1,430		0		0		1,828
Commercial		766		28,713		506		0		0		29,985
Installment		5,667		0		0		0		0		5,667
All other loans		544		0		0		0		0		544
Total	$	490,277	$	507,009	$	81,300	$	417	$	25,012	$	1,104,015

Below is a summary of loans by credit quality indicator as of December 31, 2012:

	Unrated Residential and				Pass-		Special		Sub-
(In thousands)	Consumer		Pass		Watch		Mention		Standard		Total
Commercial, financial and agricultural	$	85	$	138,307	$	18,738	$	5,704	$	2,189	$	165,023
Municipal		5		77,242		7,442		0		0		84,689
Real estate – residential:
First mortgage		418,802		29,237		1,275		194		1,533		451,041
Second mortgage		37,200		1,000		0		0		710		38,910
Real estate – commercial:
Owner occupied		86		188,330		16,718		3,546		13,628		222,308
Non-owner occupied		40		93,002		10,211		613		1,448		105,314
Real estate – construction:
Residential		41		0		1,518		0		0		1,559
Commercial		598		7,882		522		0		0		9,002
Installment		4,701		0		0		0		0		4,701
All other loans		376		0		0		0		0		376
Total	$	461,934	$	535,000	$	56,424	$	10,057	$	19,508	$	1,082,923