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Credit Quality of Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2015
Receivables [Abstract]  
Components of Loans Receivable
The loan portfolio consisted of the following (in thousands):
 
 
June 30, 2015
 
December 31, 2014
Commercial, financial and agricultural
 
$
471,397

 
$
467,147

Real estate - construction
 
79,176

 
68,577

Real estate – commercial
 
469,022

 
467,172

Real estate – residential
 
153,820

 
154,602

Installment loans to individuals
 
113,626

 
119,328

Lease financing receivable
 
5,561

 
4,857

Other
 
1,790

 
2,748

 
 
1,294,392

 
1,284,431

Less allowance for loan losses
 
(16,048
)
 
(11,226
)
 
 
$
1,278,344

 
$
1,273,205
Roll Forward of Activity in Allowance for Loan Losses
A rollforward of the activity within the allowance for loan losses by loan type and recorded investment in loans for the six months ended June 30, 2015 and 2014 is as follows (in thousands):
 
 
 
June 30, 2015
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
 
 
Coml, Fin,
and Agric
 
Constru-ction
 
Commercial
 
Residential
 
Installment
loans to
individuals
 
Lease
financing
receivable
 
Other
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
5,729

 
$
954

 
$
2,402

 
$
810

 
$
1,311

 
$
16

 
$
4

 
$
11,226

Charge-offs
 
(1,855
)
 
(6
)
 
(48
)
 
(37
)
 
(537
)
 
—

 
—

 
(2,483
)
Recoveries
 
144

 
—

 
14

 
5

 
42

 
—

 
—

 
205

Provision
 
5,074

 
20

 
1,560

 
608

 
(173
)
 
9

 
2

 
7,100

Ending balance
 
$
9,092

 
$
968

 
$
3,928

 
$
1,386

 
$
643

 
$
25

 
$
6

 
$
16,048

Ending balance: individually evaluated for impairment
 
$
889

 
$
—

 
$
1,123

 
$
107

 
$
156

 
$
—

 
$
—

 
$
2,275

Ending balance: collectively evaluated for impairment
 
$
8,203

 
$
968

 
$
2,805

 
$
1,279

 
$
487

 
$
25

 
$
6

 
$
13,773

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
471,397

 
$
79,176

 
$
469,022

 
$
153,820

 
$
113,626

 
$
5,561

 
$
1,790

 
$
1,294,392

Ending balance: individually evaluated for impairment
 
$
23,750

 
$
531

 
$
18,423

 
$
1,823

 
$
324

 
$
—

 
$
—

 
$
44,851

Ending balance: collectively evaluated for impairment
 
$
447,647

 
$
78,645

 
$
449,957

 
$
151,912

 
$
113,302

 
$
5,561

 
$
1,790

 
$
1,248,814

Ending balance: loans acquired with deteriorated credit quality
 
$
—

 
$
—

 
$
642

 
$
85

 
$
—

 
$
—

 
$
—

 
$
727

 
 
June 30, 2014
 
 
 
 
Real Estate
 
 
 
 
 
 
 
 
 
 
Coml, Fin,
and Agric
 
Constr-uction
 
Commercial
 
Residential
 
Installment
loans to
individuals
 
Lease
financing
receivable
 
Other
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
3,906

 
$
1,046

 
$
1,389

 
$
1,141

 
$
1,273

 
$
21

 
$
3

 
$
8,779

Charge-offs
 
(1,135
)
 
—

 
(17
)
 
(176
)
 
(350
)
 
—

 
—

 
(1,678
)
Recoveries
 
42

 
—

 
42

 
39

 
101

 
—

 
—

 
224

Provision
 
1,970

 
(53
)
 
(23
)
 
(325
)
 
184

 
(4
)
 
1

 
1,750

Ending balance
 
$
4,783

 
$
993

 
$
1,391

 
$
679

 
$
1,208

 
$
17

 
$
4

 
$
9,075

Ending balance: individually evaluated for impairment
 
$
208

 
$
3

 
$
55

 
$
152

 
$
145

 
$
—

 
$
—

 
$
563

Ending balance: collectively evaluated for impairment
 
$
4,575

 
$
990

 
$
1,336

 
$
527

 
$
1,063

 
$
17

 
$
4

 
$
8,512

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
454,310

 
$
86,238

 
$
413,565

 
$
153,082

 
$
108,581

 
$
4,750

 
$
3,656

 
$
1,224,182

Ending balance: individually evaluated for impairment
 
$
1,793

 
$
152

 
$
3,234

 
$
1,214

 
$
340

 
$
—

 
$
—

 
$
6,733

Ending balance: collectively evaluated for impairment
 
$
452,517

 
$
86,086

 
$
409,631

 
$
151,763

 
$
108,241

 
$
4,750

 
$
3,656

 
$
1,216,644

Ending balance: loans acquired with deteriorated credit quality
 
$
—

 
$
—

 
$
700

 
$
105

 
$
—

 
$
—

 
$
—

 
$
805
Age Analysis of Past Due Loans by Class of Loans
An age analysis of past due loans (including both accruing and non-accruing loans) is as follows (in thousands):
 
 
June 30, 2015
 
 
30-59
Days
Past Due
 
60-89
Days
Past
Due
 
Greater
than 90
Days
Past Due
 
Total
Past
Due
 
Current
 
Total Loans
 
Recorded
Investment
> 90 days
 and
Accruing
Commercial, financial, and agricultural
 
$
1,710

 
$
592

 
$
2,999

 
$
5,301

 
$
466,096

 
$
471,397

 
$
501

Commercial real estate - construction
 
364

 
—

 
13

 
377

 
57,151

 
57,528

 
—

Commercial real estate - other
 
13,681

 
361

 
4,994

 
19,036

 
449,986

 
469,022

 
—

Residential - construction
 
—

 
—

 
490

 
490

 
21,158

 
21,648

 
—

Residential - prime
 
523

 
449

 
1,378

 
2,350

 
151,470

 
153,820

 
—

Consumer - credit card
 
29

 
29

 
13

 
71

 
5,749

 
5,820

 
13

Consumer - other
 
1,065

 
264

 
324

 
1,653

 
106,153

 
107,806

 
95

Lease financing receivable
 
—

 
—

 
—

 
—

 
5,561

 
5,561

 
—

Other loans
 
100

 
—

 
—

 
100

 
1,690

 
1,790

 
—

 
 
$
17,472

 
$
1,695

 
$
10,211

 
$
29,378

 
$
1,265,014

 
$
1,294,392

 
$
609

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
30-59
Days
Past Due
 
60-89
Days
Past
Due
 
Greater
than 90
Days
Past Due
 
Total
Past
Due
 
Current
 
Total Loans
 
Recorded
Investment
> 90 days
and
Accruing
Commercial, financial, and agricultural
 
$
2,179

 
$
654

 
$
2,556

 
$
5,389

 
$
461,758

 
$
467,147

 
$
26

Commercial real estate - construction
 
15

 
—

 
105

 
120

 
43,390

 
43,510

 
97

Commercial real estate - other
 
4,989

 
270

 
2,464

 
7,723

 
459,449

 
467,172

 
—

Residential - construction
 
431

 
—

 
—

 
431

 
24,636

 
25,067

 
—

Residential - prime
 
1,843

 
523

 
704

 
3,070

 
151,532

 
154,602

 
—

Consumer - credit card
 
5

 
19

 
18

 
42

 
5,970

 
6,012

 
18

Consumer - other
 
671

 
392

 
107

 
1,170

 
112,146

 
113,316

 
46

Lease financing receivable
 
—

 
—

 
—

 
—

 
4,857

 
4,857

 
—

Other loans
 
134

 
—

 
—

 
134

 
2,614

 
2,748

 
—

 
 
$
10,267

 
$
1,858

 
$
5,954

 
$
18,079

 
$
1,266,352

 
$
1,284,431

 
$
187
Schedule of Loans on Nonaccrual Status
Non-accrual loans are as follows (in thousands):
 
 
 
June 30, 2015
 
December 31, 2014
Commercial, financial, and agricultural
 
$
2,636

 
$
2,642

Commercial real estate – construction
 
41

 
54

Commercial real estate - other
 
18,452

 
6,429

Residential - construction
 
490

 
—

Residential - prime
 
1,930

 
1,194

Consumer - credit card
 
—

 
—

Consumer - other
 
324

 
382

Lease financing receivable
 
—

 
—

Other
 
—

 
—

 
 
$
23,873

 
$
10,701
Schedule of Loans Evaluated for Impairment
Loans that are individually evaluated for impairment are as follows (in thousands):
 
 
 
June 30, 2015
 
 
Recorded
Investment
 
Unpaid
Principal
 Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
 Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Commercial, financial, and agricultural
 
$
21,578

 
$
21,842

 
$
—

 
$
10,993

 
$
507

Commercial real estate – construction
 
41

 
41

 
—

 
42

 
—

Commercial real estate – other
 
7,048

 
7,048

 
—

 
5,450

 
33

Residential – prime
 
1,278

 
1,298

 
—

 
1,167

 
9

Residential – construction
 
490

 
490

 
—

 
462

 
1

Consumer – other
 
36

 
36

 
—

 
46

 
—

Subtotal:
 
30,471

 
30,755

 
—

 
18,160

 
550

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

Commercial, financial, and agricultural
 
2,172

 
2,172

 
889

 
2,096

 
18

Commercial real estate – other
 
11,375

 
11,375

 
1,123

 
7,750

 
—

Residential – prime
 
545

 
545

 
107

 
480

 
6

Consumer – other
 
288

 
302

 
156

 
318

 
1

Subtotal:
 
14,380

 
14,394

 
2,275

 
10,644

 
25

Totals:
 
 

 
 

 
 

 
 

 
 

Commercial
 
42,214

 
42,478

 
2,012

 
26,331

 
558

Residential
 
2,313

 
2,333

 
107

 
2,109

 
16

Consumer
 
324

 
338

 
156

 
364

 
1

Grand total:
 
$
44,851

 
$
45,149

 
$
2,275

 
$
28,804

 
$
575

 
 
 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
Recorded
Investment
 
Unpaid
Principal
Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Commercial, financial, and agricultural
 
$
438

 
$
521

 
$
—

 
$
554

 
$
—

Commercial real estate – construction
 
54

 
54

 
—

 
58

 
—

Commercial real estate – other
 
1,921

 
1,921

 
—

 
1,885

 
17

Residential – prime
 
543

 
543

 
—

 
534

 
15

Consumer – other
 
78

 
78

 
—

 
72

 
—

Subtotal:
 
3,034

 
3,117

 
—

 
3,103

 
32

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

Commercial, financial, and agricultural
 
2,218

 
2,333

 
1,010

 
1,394

 
35

Commercial real estate – construction
 
—

 
—

 
—

 
19

 
—

Commercial real estate – other
 
4,467

 
4,467

 
1,484

 
2,416

 
220

Residential – prime
 
529

 
548

 
68

 
452

 
3

Consumer – other
 
299

 
313

 
179

 
252

 
4

Subtotal:
 
7,513

 
7,661

 
2,741

 
4,533

 
262

Totals:
 
 

 
 

 
 

 
 

 
 

Commercial
 
9,098

 
9,296

 
2,494

 
6,326

 
272

Residential
 
1,072

 
1,091

 
68

 
986

 
18

Consumer
 
377

 
391

 
179

 
324

 
4

Grand total:
 
$
10,547

 
$
10,778

 
$
2,741

 
$
7,636

 
$
294
Credit Quality Indicators by Class of Loans
The following tables present the classes of loans by risk rating (in thousands):
 
 
 
  
 
June 30, 2015
Commercial Credit Exposure
 
 
 
 
 
 
 
 
 
 
 
 
Credit Risk Profile by
Creditworthiness Category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial,
financial, and
agricultural
 
Commercial
real estate -
construction
 
Commercial
real estate -
other
 
Total
 
% of Total
Pass
 
 
 
$
418,761

 
$
57,361

 
$
421,359

 
$
897,481

 
89.93
%
Special mention
 
 
 
19,477

 
126

 
14,039

 
33,642

 
3.37
%
Substandard
 
 
 
32,812

 
41

 
33,624

 
66,477

 
6.66
%
Doubtful
 
 
 
347

 
—

 
—

 
347

 
0.04
%
 
 
 
 
$
471,397

 
$
57,528

 
$
469,022

 
$
997,947

 
100.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Credit Exposure
 
 
 
 

 
 

 
 

 
 

 
 

Credit Risk Profile by
Creditworthiness Category
 
 
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 

 
Residential -
construction
 
Residential
- prime
 
Total
 
% of Total
Pass
 
 
 
 

 
$
20,666

 
$
149,209

 
$
169,875

 
96.81
%
Special mention
 
 
 
 

 
492

 
1,320

 
1,812

 
1.03
%
Substandard
 
 
 
 

 
490

 
3,291

 
3,781

 
2.16
%
 
 
 
 
 

 
$
21,648

 
$
153,820

 
$
175,468

 
100.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Commercial Credit
Exposure
 
 
 
 

 
 

 
 

 
 

 
 

Credit Risk Profile Based on
Payment Activity
 
 
 
 

 
 

 
 

 
 

 
 

 
 
Consumer -
credit card
 
Consumer -
other
 
Lease
financing
receivable
 
Other
 
Total
 
% of Total
Performing
 
$
5,817

 
$
107,809

 
$
5,561

 
$
1,790

 
$
120,977

 
100.00
%
Nonperforming
 
—

 
—

 
—

 
—

 
—

 
—
%
 
 
$
5,817

 
$
107,809

 
$
5,561

 
$
1,790

 
$
120,977

 
100.00
%
 
 
December 31, 2014
Commercial Credit Exposure
 
 
 
 
 
 
 
 
 
 
 
 
Credit Risk Profile by
Creditworthiness Category
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial,
financial, and
agricultural
 
Commercial
real estate -
construction
 
Commercial
real estate -
other
 
Total
 
%
of Total
Pass
 
 
 
$
456,221

 
$
43,320

 
$
440,281

 
$
939,822

 
96.11
%
Special mention
 
 
 
4,861

 
132

 
7,120

 
12,113

 
1.24
%
Substandard
 
 
 
5,541

 
58

 
19,771

 
25,370

 
2.60
%
Doubtful
 
 
 
524

 
—

 
—

 
524

 
0.05
%
 
 
 
 
$
467,147

 
$
43,510

 
$
467,172

 
$
977,829

 
100.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Credit Exposure
 
 
 
 

 
 

 
 

 
 

 
 

Credit Risk Profile by
Creditworthiness Category
 
 
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 

 
Residential -
construction
 
Residential
- prime
 
Total
 
%
of Total
Pass
 
 
 
 

 
$
25,067

 
$
150,664

 
$
175,731

 
97.81
%
Special mention
 
 
 
 

 
—

 
1,184

 
1,184

 
0.66
%
Substandard
 
 
 
 

 
—

 
2,754

 
2,754

 
1.53
%
 
 
 
 
 

 
$
25,067

 
$
154,602

 
$
179,669

 
100.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Consumer and Commercial Credit Exposure
 
 
 
 

 
 

 
 

 
 

 
 

Credit Risk Profile Based on
Payment Activity
 
 
 
 

 
 

 
 

 
 

 
 

 
 
Consumer -
credit card
 
Consumer -
other
 
Lease
financing
receivable
 
Other
 
Total
 
%
of Total
Performing
 
$
5,995

 
$
112,893

 
$
4,857

 
$
2,748

 
$
126,493

 
99.65
%
Nonperforming
 
17

 
423

 
—

 
—

 
440

 
0.35
%
 
 
$
6,012

 
$
113,316

 
$
4,857

 
$
2,748

 
$
126,933

 
100.00
%
Summary of Troubled Debt Restructurings
Information about the Company’s TDRs is as follows (in thousands):
 
 
 
June 30, 2015
 
 
Current
 
Past Due Greater Than 30 Days
 
Nonaccrual
TDRs
 
Total
TDRs
Commercial, financial and agricultural
 
$
21,377

 
$
—

 
$
234

 
$
21,611

Real estate - commercial
 
152

 
—

 
—

 
152

 
 
$
21,529

 
$
—

 
$
234

 
$
21,763

 
 
 
 
 
 
 
 
 
 
 
December 31, 2014
 
 
Current
 
Past Due Greater Than 30 Days
 
Nonaccrual
TDRs
 
Total
TDRs
Commercial, financial and agricultural
 
$
21

 
$
—

 
$
234

 
$
255

Real estate - commercial
 
155

 
—

 
—

 
155

 
 
$
176

 
$
—

 
$
234

 
$
410