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LOANS (Tables)
 12 Months Ended
Dec. 31, 2018
Receivables [Abstract]  
Summary of the Loan Portfolio
The loan portfolio is summarized as follows (in thousands):
 
 
December 31,
 
 
2018
 
2017
Commercial, financial and agricultural
 
$
267,340

 
$
435,207

Real estate – construction
 
87,506

 
90,287

Real estate – commercial
 
368,449

 
454,051

Real estate – residential
 
132,435

 
146,751

Consumer and other
 
43,506

 
56,398

Lease financing receivable
 
549

 
732

Total loans
 
899,785

 
1,183,426

Less allowance for loan losses
 
(17,430
)
 
(26,888
)
Total loans, net
 
$
882,355

 
$
1,156,538
Summary of Activity in Allowance for Loan Losses
The following table summarizes the allowance for loan losses for the periods indicated (in thousands):
 
 
December 31,
 
 
2018
 
2017
Balance, beginning of year
 
$
26,888

 
$
24,372

Provision for loan losses
 
16,740

 
30,200

Recoveries
 
2,056

 
1,193

Charge-offs
 
(28,254
)
 
(28,877
)
Balance, end of year
 
$
17,430

 
$
26,888
Roll Forward of Activity
The following table details activity in the allowance for loan losses by loan type for the years indicated (in thousands):
 
 
December 31, 2018
 
 
Commercial, Financial & Agricultural
 
Real Estate - Construction
 
Real Estate - Commercial
 
Real Estate - Residential
 
Consumer and Other
 
Lease Financing Receivable
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
20,577

 
$
596

 
$
3,893

 
$
837

 
$
982

 
$
3

 
$
26,888

Charge-offs
 
(17,815
)
 
(78
)
 
(8,956
)
 
(667
)
 
(738
)
 
—

 
(28,254
)
Recoveries
 
1,704

 
—

 
7

 
41

 
304

 
—

 
2,056

Provision
 
6,167

 
(378
)
 
9,969

 
945

 
37

 
—

 
16,740

Ending balance
 
$
10,633

 
$
140

 
$
4,913

 
$
1,156

 
$
585

 
$
3

 
$
17,430

Ending balance: individually evaluated for impairment
 
$
470

 
$
4

 
$
—

 
$
—

 
$
—

 
$
—

 
$
474

Ending balance: collectively evaluated for impairment
 
$
10,163

 
$
136

 
$
4,913

 
$
1,156

 
$
585

 
$
3

 
$
16,956

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
267,340

 
$
87,506

 
$
368,449

 
$
132,435

 
$
43,506

 
$
549

 
$
899,785

Loans individually evaluated for impairment
 
$
3,949

 
$
248

 
$
3,395

 
$
—

 
$
—

 
$
—

 
$
7,592

Loans collectively evaluated for impairment
 
$
263,391

 
$
87,258

 
$
365,054

 
$
132,435

 
$
43,506

 
$
549

 
$
892,193

 
 
December 31, 2017
 
 
Commercial, Financial & Agricultural
 
Real Estate - Construction
 
Real Estate - Commercial
 
Real Estate - Residential
 
Consumer and Other
 
Lease Financing Receivable
 
Total
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
16,057

 
$
585

 
$
5,384

 
$
940

 
$
1,401

 
$
5

 
$
24,372

Charge-offs
 
(20,451
)
 
(70
)
 
(6,648
)
 
(543
)
 
(1,165
)
 
—

 
(28,877
)
Recoveries
 
652

 
—

 
162

 
105

 
274

 
—

 
1,193

Provision
 
24,319

 
81

 
4,995

 
335

 
472

 
(2
)
 
30,200

Ending balance
 
$
20,577

 
$
596

 
$
3,893

 
$
837

 
$
982

 
$
3

 
$
26,888

Loans individually evaluated for impairment
 
$
7,197

 
$
23

 
$
131

 
$
5

 
$
14

 
$
—

 
$
7,370

Loans collectively evaluated for impairment
 
$
13,380

 
$
573

 
$
3,762

 
$
832

 
$
968

 
$
3

 
$
19,518

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 

 
 

 
 

 
 

 
 

 
 

 
 

Ending balance
 
$
435,207

 
$
90,287

 
$
454,051

 
$
146,751

 
$
56,398

 
$
732

 
$
1,183,426

Loans individually evaluated for impairment
 
$
38,778

 
$
66

 
$
11,128

 
$
618

 
$
48

 
$
—

 
$
50,638

Loans collectively evaluated for impairment
 
$
396,429

 
$
90,221

 
$
442,923

 
$
146,071

 
$
56,350

 
$
732

 
$
1,132,726

Loans acquired with deteriorated credit quality
 
$
—

 
$
—

 
$
—

 
$
62

 
$
—

 
$
—

 
$
62
Age Analysis of Past Due Loans
The following table presents an analysis of past due loans, by loan type, at the dates indicated (in thousands):
 
 
December 31, 2018
 
 
30-59 Days Past Due
 
60-89 Days Past Due
 
Greater than 90 Days Past Due
 
Total Past Due
 
Current
 
Total Loans
 
Loans > 90 days and Accruing
Commercial, financial, and agricultural
 
$
385

 
$
902

 
$
2,173

 
$
3,460

 
$
263,880

 
$
267,340

 
$
—

Real estate - construction
 
47

 
—

 
117

 
164

 
87,342

 
87,506

 
—

Real estate - commercial
 
435

 
—

 
771

 
1,206

 
367,243

 
368,449

 
—

Real estate - residential
 
695

 
31

 
1,407

 
2,133

 
130,302

 
132,435

 
—

Consumer and other
 
176

 
28

 
56

 
260

 
43,246

 
43,506

 
—

Lease financing receivable
 
—

 
—

 
—

 
—

 
549

 
549

 
—

 
 
$
1,738

 
$
961

 
$
4,524

 
$
7,223

 
$
892,562

 
$
899,785

 
$
—

 
 
 
December 31, 2017
 
 
30-59 Days Past Due
 
60-89 Days Past Due
 
Greater than 90 Days Past Due
 
Total Past Due
 
Current
 
Total Loans
 
Loans > 90 days and Accruing
Commercial, financial, and agricultural
 
$
1,195

 
$
1,893

 
$
14,847

 
$
17,935

 
$
417,272

 
$
435,207

 
$
545

Real estate - construction
 
616

 
—

 
190

 
806

 
89,481

 
90,287

 
125

Real estate - commercial
 
5,889

 
6,402

 
4,163

 
16,454

 
437,597

 
454,051

 
58

Real estate - residential
 
1,065

 
235

 
559

 
1,859

 
144,892

 
146,751

 
—

Consumer and other
 
276

 
32

 
34

 
342

 
56,056

 
56,398

 
—

Lease financing receivable
 
—

 
—

 
—

 
—

 
732

 
732

 
—

 
 
$
9,041

 
$
8,562

 
$
19,793

 
$
37,396

 
$
1,146,030

 
$
1,183,426

 
$
728
Schedule of Non-Accrual Loans
The following table presents nonaccrual loans, by loan type, at the dates indicated (in thousands): 
 
 
December 31,
 
 
2018
 
2017
Commercial, financial and agricultural
 
$
3,599

 
$
37,418

Real estate - construction
 
278

 
66

Real estate - commercial
 
2,977

 
11,128

Real estate - residential
 
2,008

 
618

Consumer and other
 
58

 
48

Total nonaccrual loans¹
 
$
8,920

 
$
49,278


¹ As of 12/31/2018, the Company had signed a letter of intent for a bulk sale of impaired loans which included $20.4 million of nonaccrual loans. These loans are reported as loans held-for-sale and thus not included in the above table.
Schedule of Loans that are Individually Evaluated for Impairment
The following table presents information related to the average recorded investment and interest income recognized on impaired loans, for the periods presented (in thousands):
 
 
December 31, 2018
 
 
Recorded Investment (1)
 
Unpaid Principal Balance
 
Related Allowance (1)
 
Average Recorded Investment
 
Interest Income Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Commercial, financial, and agricultural
 
$
2,924

 
$
3,011

 
$
—

 
$
13,791

 
$
56

Real estate - construction
 
117

 
117

 
—

 
59

 
—

Real estate - commercial
 
3,395

 
3,395

 
—

 
6,922

 
38

Real estate - residential
 
—

 
—

 
—

 
151

 
—

Consumer and other
 
—

 
—

 
—

 
—

 
—

Subtotal
 
6,436

 
6,523

 
—

 
20,923

 
94

With related allowance recorded:
 
 

 
 

 
 

 
 

 
 

Commercial, financial, and agricultural
 
1,025

 
1,025

 
470

 
7,572

 
—

Real estate - construction
 
131

 
131

 
4

 
97

 
—

Real estate - commercial
 
—

 
—

 
—

 
329

 
—

Real estate - residential
 
—

 
—

 
—

 
158

 
—

Consumer and other
 
—

 
—

 
—

 
24

 
—

Subtotal
 
1,156

 
1,156

 
474

 
8,180

 
—

Total impaired loans
 
$
7,592

 
$
7,679

 
$
474

 
$
29,103

 
$
94

 
 
December 31, 2017
 
 
Recorded Investment (1)
 
Unpaid Principal Balance
 
Related Allowance (1)
 
Average Recorded Investment
 
Interest Income Recognized
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
Commercial, financial, and agricultural
 
$
24,659

 
$
30,630

 
$
—

 
$
19,880

 
$
90

Real estate - construction
 
—

 
—

 
—

 
5

 
—

Real estate - commercial
 
10,471

 
11,965

 
—

 
11,590

 
—

Real estate - residential
 
302

 
302

 
—

 
602

 
—

Consumer
 
—

 
—

 
—

 
37

 
—

Subtotal
 
35,432

 
42,897

 
—

 
32,114

 
90

With related allowance recorded:
 
 

 
 

 
 

 
 

 
 

Commercial, financial, and agricultural
 
14,119

 
14,150

 
7,197

 
15,245

 
1

Real estate – construction
 
66

 
136

 
23

 
33

 
—

Real estate - commercial
 
657

 
657

 
131

 
8,318

 
—

Real estate - residential
 
316

 
316

 
5

 
620

 
—

Consumer
 
48

 
50

 
14

 
258

 
—

Subtotal
 
15,206

 
15,309

 
7,370

 
24,474

 
1

Total impaired loans
 
$
50,638

 
$
58,206

 
$
7,370

 
$
56,588

 
$
91


(1) Troubled debt restructuring totaling $1.3 million and $9.9 million are included in the recorded investment of impaired loans as of December 31, 2018 and 2017. There is no related allowance with troubled debt restructuring as of December 31, 2018 and 2017.
Schedule of Risk Grade by Loan Type
The following table presents the risk grades, by loan type, at the dates indicated (dollars in thousands):
 
  
 
Special
 
 
 
 
 
 
 
Pass
 
Mention
 
Substandard
 
Doubtful
 
Total
December 31, 2018
 
 
 
 
 
 
 
 
 
Commercial, Financial & Agricultural
$
240,232

 
$
20,259

 
$
6,849

 
$
—

 
$
267,340

Real Estate - Construction
83,240

 
3,910

 
356

 
—

 
87,506

Real Estate - Commercial
329,213

 
23,475

 
15,761

 
—

 
368,449

Real Estate - Residential
125,984

 
1,955

 
4,496

 
—

 
132,435

Consumer and other
43,416

 
5

 
85

 
—

 
43,506

Lease Financing Receivable
549

 
—

 
—

 
—

 
549

Total loans
$
822,634

 
$
49,604

 
$
27,547

 
$
—

 
$
899,785

December 31, 2017
 
 
 
 
 
 
 
 
 
Commercial, Financial & Agriculture
$
358,373

 
$
9,687

 
$
67,147

 
$
—

 
$
435,207

Real Estate - Construction
89,323

 
600

 
364

 
—

 
90,287

Real Estate - Commercial
416,925

 
3,823

 
33,303

 
—

 
454,051

Real Estate - Residential
144,250

 
1,233

 
1,268

 
—

 
146,751

Consumer and other
56,041

 
—

 
357

 
—

 
56,398

Lease Financing Receivable
699

 
—

 
33

 
—

 
732

Total loans
$
1,065,611

 
$
15,343

 
$
102,472

 
$
—

 
$
1,183,426
Schedule of Modified Troubled Debt Restructurings During the Period
The following tables provides information on loans that were modified as TDRs during the periods presented (in thousands):
 
 
 
December 31, 2018
 
 
 
December 31, 2017
 
 
 
 
Number of loans
 
Pre-modification recorded investment
 
Post-modification recorded investment(1)
 
Number of loans
 
Pre-modification recorded investment
 
Post-modification recorded investment(1)
Commercial, financial and agricultural
 
—

 
$
—

 
$
—

 
6

 
$
2,002

 
$
2,002

Real estate – commercial
 
1

 
557

 
557

 
—

 
—

 
—

 
 
1

 
$
557

 
$
557

 
6

 
$
2,002

 
$
2,002

(1)The pre-modification and post-modification recorded investment amount represent the recorded investment on the date of the loan modification. Since the modifications on these loans were payment modifications, not principal reductions, the pre-modification and post-modification recorded investment amount is the same.