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Credit Quality of Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2015
Receivables [Abstract]  
Components of Loans Receivable
The loan portfolio consisted of the following (in thousands):
 
 
September 30, 2015
 
December 31, 2014
Commercial, financial and agricultural
 
$
482,452

 
$
467,147

Real estate - construction
 
74,279

 
68,577

Real estate – commercial
 
473,319

 
467,172

Real estate – residential
 
151,667

 
154,602

Installment loans to individuals
 
113,199

 
119,328

Lease financing receivable
 
4,790

 
4,857

Other
 
1,746

 
2,748

 
 
1,301,452

 
1,284,431

Less allowance for loan losses
 
(18,939
)
 
(11,226
)
 
 
$
1,282,513

 
$
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 nine months ended September 30, 2015 and 2014 is as follows (in thousands):
 
 
 
September 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
 
(2,310
)
 
(76
)
 
(169
)
 
(45
)
 
(883
)
 
—

 
—

 
(3,483
)
Recoveries
 
185

 
1

 
20

 
10

 
80

 
—

 
—

 
296

Provision
 
8,016

 
(62
)
 
2,107

 
(104
)
 
923

 
13

 
7

 
10,900

Ending balance
 
$
11,620

 
$
817

 
$
4,360

 
$
671

 
$
1,431

 
$
29

 
$
11

 
$
18,939

Ending balance: individually evaluated for impairment
 
$
2,569

 
$
26

 
$
1,739

 
$
147

 
$
216

 
$
—

 
$
—

 
$
4,697

Ending balance: collectively evaluated for impairment
 
$
9,051

 
$
791

 
$
2,621

 
$
524

 
$
1,215

 
$
29

 
$
11

 
$
14,242

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
482,452

 
$
74,279

 
$
473,319

 
$
151,667

 
$
113,199

 
$
4,790

 
$
1,746

 
$
1,301,452

Ending balance: individually evaluated for impairment
 
$
29,185

 
$
212

 
$
19,928

 
$
1,796

 
$
386

 
$
—

 
$
—

 
$
51,507

Ending balance: collectively evaluated for impairment
 
$
453,267

 
$
74,067

 
$
452,758

 
$
149,788

 
$
112,813

 
$
4,790

 
$
1,746

 
$
1,249,229

Ending balance: loans acquired with deteriorated credit quality
 
$
—

 
$
—

 
$
633

 
$
83

 
$
—

 
$
—

 
$
—

 
$
716

 
 
September 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
 
(2,084
)
 
(1
)
 
(93
)
 
(188
)
 
(566
)
 
—

 
—

 
(2,932
)
Recoveries
 
101

 
—

 
398

 
44

 
110

 
—

 
—

 
653

Provision
 
2,731

 
103

 
(345
)
 
(8
)
 
450

 
(6
)
 
—

 
2,925

Ending balance
 
$
4,654

 
$
1,148

 
$
1,349

 
$
989

 
$
1,267

 
$
15

 
$
3

 
$
9,425

Ending balance: individually evaluated for impairment
 
$
853

 
$
3

 
$
55

 
$
87

 
$
140

 
$
—

 
$
—

 
$
1,138

Ending balance: collectively evaluated for impairment
 
$
3,801

 
$
1,145

 
$
1,294

 
$
902

 
$
1,127

 
$
15

 
$
3

 
$
8,287

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
452,065

 
$
86,315

 
$
430,930

 
$
153,915

 
$
116,340

 
$
5,285

 
$
3,523

 
$
1,248,373

Ending balance: individually evaluated for impairment
 
$
2,662

 
$
106

 
$
3,312

 
$
1,073

 
$
426

 
$
—

 
$
—

 
$
7,579

Ending balance: collectively evaluated for impairment
 
$
449,403

 
$
86,209

 
$
426,942

 
$
152,742

 
$
115,914

 
$
5,285

 
$
3,523

 
$
1,240,018

Ending balance: loans acquired with deteriorated credit quality
 
$
—

 
$
—

 
$
676

 
$
100

 
$
—

 
$
—

 
$
—

 
$
776
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):
 
 
September 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
 
$
4,065

 
$
3,124

 
$
3,879

 
$
11,068

 
$
471,384

 
$
482,452

 
$
23

Commercial real estate - construction
 
93

 
99

 
12

 
204

 
55,484

 
55,688

 
—

Commercial real estate - other
 
7,252

 
2,745

 
16,999

 
26,996

 
446,323

 
473,319

 
—

Residential - construction
 
—

 
—

 
172

 
172

 
18,419

 
18,591

 
—

Residential - prime
 
1,383

 
264

 
1,378

 
3,025

 
148,642

 
151,667

 
—

Consumer - credit card
 
38

 
11

 
27

 
76

 
5,683

 
5,759

 
27

Consumer - other
 
1,228

 
162

 
329

 
1,719

 
105,721

 
107,440

 
32

Lease financing receivable
 
—

 
—

 
—

 
—

 
4,790

 
4,790

 
—

Other loans
 
148

 
—

 
—

 
148

 
1,598

 
1,746

 
—

 
 
$
14,207

 
$
6,405

 
$
22,796

 
$
43,408

 
$
1,258,044

 
$
1,301,452

 
$
82

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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):
 
 
 
September 30, 2015
 
December 31, 2014
Commercial, financial, and agricultural
 
$
29,171

 
$
2,642

Commercial real estate – construction
 
39

 
54

Commercial real estate - other
 
19,952

 
6,429

Residential - construction
 
172

 
—

Residential - prime
 
1,896

 
1,194

Consumer - credit card
 
—

 
—

Consumer - other
 
386

 
382

Lease financing receivable
 
—

 
—

Other
 
—

 
—

 
 
$
51,616

 
$
10,701
Schedule of Loans Evaluated for Impairment
Loans that are individually evaluated for impairment are as follows (in thousands):
 
 
September 30, 2015
 
 
Recorded
Investment
 
Unpaid
Principal
 Balance
 
Related
Allowance
 
Average
Recorded
Investment
 
Interest
 Income
Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Commercial, financial, and agricultural
 
$
22,149

 
$
22,412

 
$
—

 
$
21,863

 
$
703

Commercial real estate – construction
 
39

 
39

 
—

 
40

 
—

Commercial real estate – other
 
5,440

 
5,440

 
—

 
6,244

 
47

Residential – prime
 
1,144

 
1,164

 
—

 
1,211

 
11

Residential – construction
 
55

 
55

 
—

 
273

 
1

Consumer – other
 
30

 
30

 
—

 
33

 
—

Subtotal:
 
28,857

 
29,140

 
—

 
29,664

 
762

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

Commercial, financial, and agricultural
 
7,036

 
7,036

 
2,569

 
4,604

 
159

Commercial real estate – other
 
14,488

 
14,488

 
1,739

 
12,932

 
33

Residential – prime
 
652

 
652

 
147

 
599

 
5

Residential – construction
 
118

 
118

 
26

 
59

 
—

Consumer – other
 
356

 
371

 
216

 
322

 
4

Subtotal:
 
22,650

 
22,665

 
4,697

 
18,516

 
201

Totals:
 
 

 
 

 
 

 
 

 
 

Commercial
 
49,152

 
49,415

 
4,308

 
45,683

 
942

Residential
 
1,969

 
1,989

 
173

 
2,142

 
17

Consumer
 
386

 
401

 
216

 
355

 
4

Grand total:
 
$
51,507

 
$
51,805

 
$
4,697

 
$
48,180

 
$
963

 
 
 
 
 
 
 
 
 
 
 
 
 
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):
 
 
 
  
 
September 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
 
 
 
$
417,600

 
$
55,525

 
$
417,095

 
$
890,220

 
88.02
%
Special mention
 
 
 
23,104

 
34

 
20,277

 
43,415

 
4.29
%
Substandard
 
 
 
41,521

 
129

 
35,947

 
77,597

 
7.67
%
Doubtful
 
 
 
227

 
—

 
—

 
227

 
0.02
%
 
 
 
 
$
482,452

 
$
55,688

 
$
473,319

 
$
1,011,459

 
100.00
%
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Credit Exposure
 
 
 
 

 
 

 
 

 
 

 
 

Credit Risk Profile by
Creditworthiness Category
 
 
 
 

 
 

 
 

 
 

 
 

 
 
 
 
 

 
Residential -
construction
 
Residential
- prime
 
Total
 
% of Total
Pass
 
 
 
 

 
$
18,419

 
$
147,721

 
$
166,140

 
97.58
%
Special mention
 
 
 
 

 
—

 
1,326

 
1,326

 
0.78
%
Substandard
 
 
 
 

 
172

 
2,620

 
2,792

 
1.64
%
 
 
 
 
 

 
$
18,591

 
$
151,667

 
$
170,258

 
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
 
$
5,721

 
$
107,022

 
$
4,790

 
$
1,746

 
$
119,279

 
99.62
%
Nonperforming
 
38

 
418

 
—

 
—

 
456

 
0.38
%
 
 
$
5,759

 
$
107,440

 
$
4,790

 
$
1,746

 
$
119,735

 
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):
 
 
 
September 30, 2015
 
 
Current
 
Past Due Greater Than 30 Days
 
Nonaccrual
TDRs
 
Total
TDRs
Commercial, financial and agricultural
 
$
18

 
$
—

 
$
21,324

 
$
21,342

Real estate - commercial
 
—

 
150

 
—

 
150

 
 
$
18

 
$
150

 
$
21,324

 
$
21,492

 
 
 
 
 
 
 
 
 
 
 
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