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LOANS (Tables)
 12 Months Ended
Dec. 31, 2013
LOANS [Abstract]  
Components of Loans Receivable
The loan portfolio consisted of the following (in thousands):
 
 
December 31,
 
 
2013
  
2012
 
Commercial, financial and agricultural
 
$
403,976
  
$
315,655
 
Real estate – construction
  
82,691
   
75,334
 
Real estate – commercial
  
397,135
   
414,384
 
Real estate – residential
  
146,841
   
142,858
 
Installment loans to individuals
  
97,459
   
90,561
 
Lease financing receivable
  
5,542
   
5,769
 
Other
  
3,910
   
2,379
 
  
1,137,554
   
1,046,940
 
Less allowance for loan losses
  
(8,779
)
  
(7,370
)
 
$
1,128,775
  
$
1,039,570
 
Summary of Activity in Allowance for Loan Losses
An analysis of the activity in the allowance for loan losses is as follows (in thousands):
 
 
December 31,
 
 
2013
  
2012
  
2011
 
Balance, beginning of year
 
$
7,370
  
$
7,276
  
$
8,813
 
Provision for loan losses
  
3,050
   
2,050
   
3,925
 
Recoveries
  
265
   
300
   
310
 
Loans charged-off
  
(1,906
)
  
(2,256
)
  
(5,772
)
Balance, end of year
 
$
8,779
  
$
7,370
  
$
7,276
 
Allowance for Loan Losses and Recorded Investment in Loans
A rollforward of the activity within the allowance for loan losses by loan type and recorded investment in loans for the years ended December 31, 2013 and 2012 is as follows (in thousands):
 
 
 
December 31, 2013
 
 
 
  
Real Estate
  
  
  
  
 
 
 
Coml, fin,
and agric
  
Construction
  
Commercial
  
Residential
  
Installment
loans to
individuals
  
Lease
financing receivable
  
Other
  
Total
 
Allowance for loan losses:
 
  
  
  
  
  
  
  
 
Beginning balance
 
$
1,535
  
$
2,147
  
$
2,166
  
$
936
  
$
543
  
$
41
  
$
2
  
$
7,370
 
Charge-offs
  
(935
)
  
-
   
(18
)
  
(129
)
  
(824
)
  
-
   
-
   
(1,906
)
Recoveries
  
80
   
8
   
29
   
39
   
109
   
-
   
-
   
265
 
Provision
  
3,226
   
(1,109
)
  
(788
)
  
295
   
1,445
   
(20
)
  
1
   
3,050
 
Ending balance
 
$
3,906
  
$
1,046
  
$
1,389
  
$
1,141
  
$
1,273
  
$
21
  
$
3
  
$
8,779
 
Ending balance: individually evaluated for impairment
 
$
168
  
$
3
  
$
54
  
$
60
  
$
120
  
$
-
  
$
-
  
$
405
 
Ending balance: collectively evaluated for impairment
 
$
3,738
  
$
1,043
  
$
1,335
  
$
1,081
  
$
1,153
  
$
21
  
$
3
  
$
8,374
 
 
                                
Loans:
                                
Ending balance
 
$
403,976
  
$
82,691
  
$
397,135
  
$
146,841
  
$
97,459
  
$
5,542
  
$
3,910
  
$
1,137,554
 
Ending balance: individually evaluated for impairment
 
$
1,241
  
$
100
  
$
2,213
  
$
900
  
$
271
  
$
-
  
$
-
  
$
4,725
 
Ending balance: collectively evaluated for impairment
 
$
402,735
  
$
82,591
  
$
394,218
  
$
145,773
  
$
97,188
  
$
5,542
  
$
3,910
  
$
1,131,957
 
Ending balance: loans acquired with deteriorated credit quality
 
$
-
  
$
-
  
$
704
  
$
168
  
$
-
  
$
-
  
$
-
  
$
872
 

 
 
December 31, 2012
 
 
 
  
Real Estate
  
  
  
  
 
 
 
Coml, fin,
and agric
  
Construction
  
Commercial
  
Residential
  
Installment
loans to
individuals
  
Lease
financing receivable
  
Other
  
Total
 
Allowance for loan losses:
 
  
  
  
  
  
  
  
 
Beginning balance
 
$
1,734
  
$
1,661
  
$
2,215
  
$
936
  
$
710
  
$
19
  
$
1
  
$
7,276
 
Charge-offs
  
(1,054
)
  
-
   
(550
)
  
(126
)
  
(526
)
  
-
   
-
   
(2,256
)
Recoveries
  
181
   
18
   
1
   
2
   
98
   
-
   
-
   
300
 
Provision
  
674
   
468
   
500
   
124
   
261
   
22
   
1
   
2,050
 
Ending balance
 
$
1,535
  
$
2,147
  
$
2,166
  
$
936
  
$
543
  
$
41
  
$
2
  
$
7,370
 
Ending balance: individually evaluated for impairment
 
$
391
  
$
57
  
$
35
  
$
30
  
$
114
  
$
-
  
$
-
  
$
627
 
Ending balance: collectively evaluated for impairment
 
$
1,144
  
$
2,090
  
$
2,131
  
$
906
  
$
429
  
$
41
  
$
2
  
$
6,743
 
 
                                
Loans:
                                
Ending balance
 
$
315,655
  
$
75,334
  
$
414,384
  
$
142,858
  
$
90,561
  
$
5,769
  
$
2,379
  
$
1,046,940
 
Ending balance: individually evaluated for impairment
 
$
1,636
  
$
936
  
$
2,911
  
$
1,627
  
$
330
  
$
-
  
$
-
  
$
7,440
 
Ending balance: collectively evaluated for impairment
 
$
313,937
  
$
74,398
  
$
407,267
  
$
140,777
  
$
90,231
  
$
5,769
  
$
2,379
  
$
1,034,758
 
Ending balance: loans acquired with deteriorated credit quality
 
$
82
  
$
-
  
$
4,206
  
$
454
  
$
-
  
$
-
  
$
-
  
$
4,742
 
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):
 
 
 
December 31, 2013
 
 
 
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
 
$
4,350
  
$
208
  
$
1,256
  
$
5,814
  
$
398,162
  
$
403,976
  
$
26
 
Commercial real estate - construction
  
36
   
-
   
63
   
99
   
64,794
   
64,893
   
-
 
Commercial real estate - other
  
1,230
   
1,447
   
2,395
   
5,072
   
392,063
   
397,135
   
141
 
Residential - construction
  
149
   
-
   
-
   
149
   
17,649
   
17,798
   
-
 
Residential - prime
  
2,984
   
870
   
307
   
4,161
   
142,680
   
146,841
   
-
 
Consumer - credit card
  
36
   
-
   
7
   
43
   
6,163
   
6,206
   
7
 
Consumer - other
  
767
   
102
   
269
   
1,138
   
90,115
   
91,253
   
4
 
Lease financing receivable
  
-
   
-
   
-
   
-
   
5,542
   
5,542
   
-
 
Other loans
  
125
   
-
   
-
   
125
   
3,785
   
3,910
   
-
 
 
 
$
9,677
  
$
2,627
  
$
4,297
  
$
16,601
  
$
1,120,953
  
$
1,137,554
  
$
178
 

 
 
December 31, 2012 (1)
 
 
 
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
 
$
2,220
  
$
321
  
$
2,580
  
$
5,121
  
$
310,534
  
$
315,655
  
$
1,019
 
Commercial real estate - construction
  
66
   
96
   
101
   
263
   
58,087
   
58,350
   
-
 
Commercial real estate - other
  
4,123
   
2,108
   
3,577
   
9,808
   
404,576
   
414,384
   
952
 
Residential - construction
  
-
   
-
   
-
   
-
   
16,984
   
16,984
   
-
 
Residential - prime
  
1,140
   
239
   
1,121
   
2,500
   
140,358
   
142,858
   
-
 
Consumer - credit card
  
24
   
2
   
15
   
41
   
6,766
   
6,807
   
15
 
Consumer - other
  
421
   
134
   
186
   
741
   
83,013
   
83,754
   
-
 
Lease financing receivable
  
-
   
-
   
-
   
-
   
5,769
   
5,769
   
-
 
Other loans
  
87
   
-
   
-
   
87
   
2,292
   
2,379
   
-
 
 
 
$
8,081
  
$
2,900
  
$
7,580
  
$
18,561
  
$
1,028,379
  
$
1,046,940
  
$
1,986
 

(1) Balances have been adjusted from previously reported amounts for discounts associated with purchase credit impaired loans.
Loans on Nonaccrual Status
Non-accrual loans are as follows (in thousands):
 
 
 
December 31, 2013
  
December 31, 2012 (1)
 
Commercial, financial, and agricultural
 
$
1,272
  
$
1,777
 
Commercial real estate - construction
  
100
   
941
 
Commercial real estate - other
  
2,290
   
3,009
 
Residential - construction
  
-
   
-
 
Residential - prime
  
1,153
   
2,505
 
Consumer - credit card
  
-
   
-
 
Consumer - other
  
284
   
409
 
Lease financing receivable
  
-
   
-
 
Other
 
-
  
-
 
 
 
$
5,099
  
$
8,276
 
Impaired Loans by Class of Loans
Loans that are individually evaluated for impairment are as follows (in thousands):
 
December 31, 2013 
 
 
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Average
 Recorded
 Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
 
  
  
  
  
 
Commercial, financial, and agricultural
 
$
671
  
$
1,107
  
$
-
  
$
617
  
$
3
 
Commercial real estate – construction
  
61
   
61
   
-
   
416
   
-
 
Commercial real estate – other
  
1,850
   
2,324
   
-
   
2,190
   
8
 
Residential – prime
  
525
   
525
   
-
   
1,050
   
14
 
Consumer – other
  
66
   
66
   
-
   
90
   
1
 
Subtotal:
  
3,173
   
4,083
   
-
   
4,363
   
26
 
With an allowance recorded:
                    
Commercial, financial, and agricultural
  
570
   
570
   
168
   
821
   
3
 
Commercial real estate – construction
  
39
   
39
   
3
   
102
   
1
 
Commercial real estate – other
  
363
   
363
   
54
   
372
   
11
 
Residential – prime
  
375
   
395
   
60
   
214
   
4
 
Consumer – other
  
205
   
205
   
120
   
211
   
2
 
Subtotal:
  
1,552
   
1,572
   
405
   
1,720
   
21
 
Totals:
                    
Commercial
  
3,554
   
4,464
   
225
   
4,518
   
26
 
Residential
  
900
   
920
   
60
   
1,264
   
18
 
Consumer
  
271
   
271
   
120
   
301
   
3
 
Grand total:
 
$
4,725
  
$
5,655
  
$
405
  
$
6,083
  
$
47
 

(1) Balances have been adjusted from previously reported amounts for discounts associated with purchase credit impaired loans.
 
 
December 31, 2012
 
 
 
Recorded
Investment
  
Unpaid
Principal
Balance
  
Related
Allowance
  
Average
Recorded
Investment
  
Interest
Income
Recognized
 
With no related allowance recorded:
 
  
  
  
  
 
Commercial, financial, and agricultural
 
$
564
  
$
675
  
$
-
  
$
861
  
$
5
 
Commercial real estate – construction
  
771
   
770
   
-
   
834
   
1
 
Commercial real estate – other
  
2,530
   
3,059
   
-
   
1,780
   
38
 
Residential – prime
  
1,575
   
1,575
   
-
   
1,213
   
26
 
Consumer – other
  
114
   
122
   
-
   
81
   
1
 
Subtotal:
  
5,554
   
6,201
   
-
   
4,769
   
71
 
With an allowance recorded:
                    
Commercial, financial, and agricultural
  
1,072
   
1,072
   
391
   
1,128
   
21
 
Commercial real estate – construction
  
165
   
165
   
57
   
85
   
7
 
Commercial real estate – other
  
381
   
381
   
35
   
811
   
3
 
Residential – prime
  
52
   
52
   
30
   
172
   
4
 
Consumer – other
  
216
   
216
   
114
   
228
   
6
 
Subtotal:
  
1,886
   
1,886
   
627
   
2,424
   
41
 
Totals:
                    
Commercial
  
5,483
   
6,122
   
483
   
5,499
   
75
 
Residential
  
1,627
   
1,627
   
30
   
1,385
   
30
 
Consumer
  
330
   
338
   
114
   
309
   
7
 
Grand total:
 
$
7,440
  
$
8,087
  
$
627
  
$
7,193
  
$
112
 
Credit Quality Indicators by Class of Loans
The following tables present the classes of loans by risk rating (in thousands):
 
 
 
December 31, 2013
 
Commercial Credit Exposure
 
  
  
  
  
 
Credit Risk Profile by Creditworthiness Category
 
  
  
  
  
 
 
 
  
Commercial,
financial, and agricultural
  
Commercial
real estate –construction
  
Commercial
real estate –
other
  
Percentage
of Total
 
Pass
    
$
397,513
  
$
63,577
  
$
371,618
   
96.15
%
Special mention
      
2,962
   
49
   
8,781
   
1.36
%
Substandard
      
3,272
   
1,267
   
16,736
   
2.46
%
Doubtful
      
229
   
-
   
-
   
0.03
%
 
     
$
403,976
  
$
64,893
  
$
397,135
   
100.00
%
 
                    
Consumer Credit Exposure
                    
Credit Risk Profile by Creditworthiness Category
                    
 
     
Residential – construction
  
Residential –
prime
  
Residential –
subprime
  
Percentage
of Total
 
Pass
    
$
17,798
  
$
143,790
  
$
-
   
98.15
%
Special mention
      
-
   
548
   
-
   
0.33
%
Substandard
      
-
   
2,503
   
-
   
1.52
%
 
     
$
17,798
  
$
146,841
  
$
-
   
100.00
%
 
                    
Consumer and Commercial Credit Exposure
                    
Credit Risk Profile Based on Payment Activity
                    
 
 
Consumer -
credit card
  
Consumer –
other
  
Lease
financing
 receivable
  
Other
  
Percentage of
Total
 
Performing
 
$
6,196
  
$
90,978
  
$
5,542
  
$
3,910
   
99.73
%
Nonperforming
  
10
   
275
   
-
   
-
   
0.27
%
 
 
$
6,206
  
$
91,253
  
$
5,542
  
$
3,910
   
100.00
%
  
December 31, 2012
 
Commercial Credit Exposure
 
  
  
  
  
 
Credit Risk Profile by Creditworthiness Category
 
  
  
  
  
 
 
 
  
Commercial,
financial, and agricultural
  
Commercial
real estate –construction
  
Commercial
real estate –
other
  
Percentage
of Total
 
Pass
    
$
304,219
  
$
54,737
  
$
396,077
   
95.76
%
Special mention
      
5,748
   
684
   
6,224
   
1.61
%
Substandard
      
4,503
   
2,925
   
7,514
   
1.90
%
Doubtful
      
1,185
   
4
   
4,569
   
0.73
%
 
     
$
315,655
  
$
58,350
  
$
414,384
   
100.00
%
 
                    
Consumer Credit Exposure
                    
Credit Risk Profile by Creditworthiness Category
                    
 
     
Residential – construction
  
Residential –
prime
  
Residential
– subprime
  
Percentage
of Total
 
Pass
    
$
16,785
  
$
137,681
  
$
-
   
96.64
%
Special mention
      
-
   
1,612
   
-
   
1.01
%
Substandard
      
199
   
3,565
   
-
   
2.35
%
 
     
$
16,984
  
$
142,858
  
$
-
   
100.00
%
 
                    
Consumer and Commercial Credit Exposure
                    
Credit Risk Profile Based on Payment Activity
                    
 
 
Consumer -
credit card
  
Consumer –
other
  
Lease
financing
receivable
  
Other
  
Percentage
of Total
 
Performing
 
$
6,792
  
$
83,347
  
$
5,769
  
$
2,379
   
99.57
%
Nonperforming
  
15
   
407
   
-
   
-
   
0.43
%
 
 
$
6,807
  
$
83,754
  
$
5,769
  
$
2,379
   
100.00
%
Modifications by Class of Loans
Information about the Company’s TDRs is as follows (in thousands):
 
 
December 31, 2013
 
 
Current
  
Past Due
Greater
Than 30
Days
  
Nonaccrual
TDRs
  
Total TDRs
 
Commercial, financial and agricultural
 
$
-
  
$
23
  
$
233
  
$
256
 
Real estate - commercial
  
156
   
-
   
-
   
156
 
 
$
156
  
$
23
  
$
233
  
$
412
 

 
December 31, 2012
 
 
Current
  
Past Due
Greater
Than 30
Days
  
Nonaccrual
TDRs
  
Total TDRs
 
Commercial, financial and agricultural
 
$
-
  
$
-
  
$
232
  
$
232
 
Real estate - commercial
  
3,905
   
-
   
-
   
3,905
 
 
$
3,905
  
$
-
  
$
232
  
$
4,137
 
Activity in Related Party Loans and Commitments to Extend Credit
An analysis of the 2013 activity with respect to these related party loans and commitments to extend credit is as follows (in thousands):
 
Balance, beginning of year
 
$
6,921
 
New loans
  
-
 
Repayments and adjustments
  
(3,807
)
Balance, end of year
 
$
3,114