Loans And The Allowance For Credit Losses (Tables)

9 Months Ended

Sep. 30, 2013

Loans And The Allowance For Credit Losses [Abstract]

Composition Of The Loan Portfolio

(In thousands)	September 30, 2013		December 31, 2012
Commercial, financial and agricultural	$	163,138	$	165,023
Municipal loans		96,491		84,689
Real estate loans – residential		493,667		460,395
Real estate loans – commercial		373,085		357,178
Real estate loans – construction		32,768		10,561
Installment loans		5,898		4,701
All other loans		454		376
Total loans	$	1,165,501	$	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 September 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	$	3,274	$	400	$	3,385	$	5,018	$	551	$	21	$	9	$	12,658
Charge-offs		0		0		(49)		0		0		(9)		(27)		(85)
Recoveries		13		0		0		0		1		0		4		18
Provision (credit)		137		346		(192)		100		(19)		6		22		400
Ending balance	$	3,424	$	746	$	3,144	$	5,118	$	533	$	18	$	8	$	12,991

The following table reflects our loan loss experience and activity in the allowance for credit losses by portfolio segment for the nine months ended September 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	$	3,421	$	4,660	$	234	$	17	$	11	$	12,312
Charge-offs		0		0		(152)		(1)		0		(9)		(75)		(237)
Recoveries		62		0		4		40		2		0		8		116
Provision (credit)		(85)		224		(129)		419		297		10		64		800
Ending balance	$	3,424	$	746	$	3,144	$	5,118	$	533	$	18	$	8	$	12,991

The following table reflects our loan loss experience and activity in the allowance for credit losses by portfolio segment  for the three months ended September 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	$	3,102	$	410	$	3,357	$	4,676	$	233	$	21	$	18	$	11,817
Charge-offs		0		0		0		0		0		0		0		0
Recoveries		3		0		1		1		8		0		0		13
Provision (credit)		136		31		75		13		(10)		(2)		7		250
Ending balance	$	3,241	$	441	$	3,433	$	4,690	$	231	$	19	$	25	$	12,080

The following table reflects our loan loss experience and activity in the allowance for credit losses by portfolio segment  for the nine months ended September 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	$	3,017	$	4,605	$	477	$	23	$	17	$	11,353
Charge-offs		(9)		0		(20)		0		0		0		0		(29)
Recoveries		21		0		13		1		21		0		0		56
Provision (credit)		324		132		423		84		(267)		(4)		8		700
Ending balance	$	3,241	$	441	$	3,433	$	4,690	$	231	$	19	$	25	$	12,080

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 September 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	$	253	$	0	$	129	$	56	$	0	$	0	$	0	$	438
Ending balance collectively evaluated for impairment		3,171		746		3,015		5,062		533		18		8		12,553
Totals	$	3,424	$	746	$	3,144	$	5,118	$	533	$	18	$	8	$	12,991
Financing receivables:
Ending balance individually evaluated for impairment	$	1,275	$	0	$	1,135	$	274	$	0	$	0	$	0	$	2,684
Ending balance collectively evaluated for impairment		161,863		96,491		492,532		372,811		32,768		5,898		454		1,162,817
Totals	$	163,138	$	96,491	$	493,667	$	373,085	$	32,768	$	5,898	$	454	$	1,165,501
Components:
Allowance for loan losses	$	2,810	$	731	$	3,057	$	5,075	$	500	$	18	$	8	$	12,199
Reserve for undisbursed lines of credit		614		15		87		43		33		0		0		792
Total allowance for credit losses	$	3,424	$	746	$	3,144	$	5,118	$	533	$	18	$	8	$	12,991

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		3,060		4,601		234		17		11		11,743
Totals	$	3,447	$	522	$	3,421	$	4,660	$	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		458,078		356,706		10,561		4,701		376		1,079,901
Totals	$	165,023	$	84,689	$	460,395	$	357,178	$	10,561	$	4,701	$	376	$	1,082,923
Components:
Allowance for loan losses	$	2,915	$	494	$	3,333	$	4,605	$	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	$	3,421	$	4,660	$	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 September 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	$	133	$	65	$	8	$	206	$	162,932	$	163,138	$	0
Municipal		0		0		0		0		96,491		96,491		0
Real estate-residential:
First mortgage		9		436		702		1,147		457,430		458,577		0
Second mortgage		65		0		199		264		34,826		35,090		83
Real estate-commercial:
Owner occupied		158		0		107		265		217,091		217,356		0
Non-owner occupied		0		0		0		0		155,729		155,729		0
Real estate-construction:
Residential		0		0		0		0		2,223		2,223		0
Commercial		0		0		0		0		30,545		30,545		0
Installment		0		0		0		0		5,898		5,898		0
Other		0		0		0		0		454		454		0
Total	$	365	$	501	$	1,016	$	1,882	$	1,163,619	$	1,165,501	$	83

Out of the total past due loans above $1.01 million 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		420,400		421,485		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		134,870		134,870		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 September 30, 2013 are as follows:

(In thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance
With no related allowance recorded
Commercial, financial and agricultural	$	275	$	1,152	$	0
Real estate – residential:
First mortgage		499		920		0
Second mortgage		199		235		0
Real estate – commercial:
Owner occupied		107		242		0
Non-owner occupied		0		70		0
Installment		0		53		0
With related allowance recorded
Commercial, financial and agricultural		1,000		1,000		253
Real estate – residential:
First mortgage		384		393		96
Second mortgage		53		53		33
Real estate – commercial:
Owner occupied		167		176		56
Installment		0		0		0
Total
Commercial, financial and agricultural		1,275		2,152		253
Real estate – residential		1,135		1,601		129
Real estate – commercial		274		488		56
Installment		0		53		0
Total	$	2,684	$	4,294	$	438

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 nine months ended September 30, 2013 are as follows:

	Three Months				Nine Months
(In thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial, financial and agricultural	$	272	$	15	$	223	$	42
Real estate – residential:
First mortgage		463		24		622		68
Second mortgage		188		1		133		2
Real estate – commercial:
Owner occupied		107		0		83		15
Non-owner occupied		0		0		0		0
Installment		0		0		1		0
With related allowance recorded
Commercial, financial and agricultural		333		0		342		0
Real estate – residential:
First mortgage		399		0		523		0
Second mortgage		18		0		317		0
Real estate – commercial:
Owner occupied		168		0		171		0
Installment		6		0		6		0
Total
Commercial, financial and agricultural		605		15		565		42
Real estate – residential		1,068		25		1,595		70
Real estate – commercial		275		0		254		15
Installment		6		0		7		0
Total	$	1,954	$	40	$	2,421	$	127

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

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

	Three Months				Nine Months
(In thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
With no related allowance recorded
Commercial, financial and agricultural	$	24	$	0	$	49	$	1
Real estate – residential:
First mortgage		888		27		818		47
Second mortgage		331		7		325		34
Real estate – commercial:
Owner occupied		350		2		405		5
Non-owner occupied		0		0		0		0
Installment		2		0		1		0
With related allowance recorded
Commercial, financial and agricultural		13		0		23		0
Real estate – residential:
First mortgage		580		0		662		0
Second mortgage		481		0		194		0
Real estate – commercial:
Owner occupied		231		0		113		0
Total
Commercial, financial and agricultural		37		0		72		1
Real estate – residential		2,280		34		1,999		81
Real estate – commercial		581		2		518		5
Installment		2		0		1		0
Total	$	2,900	$	36	$	2,590	$	87

Nonperforming Loans

(In thousands)	September 30, 2013		December 31, 2012
Nonaccrual  loans	$	2,236	$	2,355
Loans greater than 90 days and accruing		83		0
Troubled debt restructurings ("TDRs")		365		557
Total nonperforming loans	$	2,684	$	2,912

Nonaccrual Loans By Class

(In thousands)	September 30, 2013		December 31, 2012
Commercial, financial and agricultural	$	1,266	$	225
Real estate - residential:
First mortgage		686		1,119
Second mortgage		177		716
Real estate - commercial:
Owner occupied		107		295
Non owner occupied		0		0
Installment		0		0
Total nonaccruing non-TDR loans	$	2,236	$	2,355
Nonaccruing TDR’s
Commercial, financial and agricultural		1		8
Real estate – residential:
First mortgage		74		189
Real estate - commercial:
Owner occupied		167		177
Total nonaccrual loans including TDRs	$	2,478	$	2,729

Summary Of Loans By Credit Quality Indicator

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

	Unrated Residential and				Pass-		Special		Sub-
(In thousands)	Consumer		Pass		Watch		Mention		Standard		Total
Commercial, financial and agricultural	$	235	$	143,379	$	10,875	$	1,010	$	7,639	$	163,138
Municipal		37		70,951		23,740		1,763		0		96,491
Real estate – residential:
First mortgage		455,233		2,787		0		66		491		458,577
Second mortgage		35,080		0		0		0		10		35,090
Real estate – commercial:
Owner occupied		144		181,775		20,852		3,833		10,752		217,356
Non-owner occupied		153		134,616		11,817		300		8,843		155,729
Real estate – construction:
Residential		691		103		1,429		0		0		2,223
Commercial		751		29,301		493		0		0		30,545
Installment		5,898		0		0		0		0		5,898
All other loans		454		0		0		0		0		454
Total	$	498,676	$	562,912	$	69,206	$	6,972	$	27,735	$	1,165,501

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		1,718		32		71		862		421,485
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		120,521		11,454		736		2,119		134,870
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