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Credit Quality of Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2014
Credit Quality of Loans and Allowance for Loan Losses [Abstract]  
Components of Loans Receivable
The loan portfolio consisted of the following (in thousands):
 
  
September 30, 2014
  
December 31, 2013
 
Commercial, financial and agricultural
 
$
452,065
  
$
403,976
 
Real estate - construction
  
86,315
   
82,691
 
Real estate – commercial
  
430,930
   
397,135
 
Real estate – residential
  
153,915
   
146,841
 
Installment loans to individuals
  
116,340
   
97,459
 
Lease financing receivable
  
5,285
   
5,542
 
Other
  
3,523
   
3,910
 
   
1,248,373
   
1,137,554
 
Less allowance for loan losses
  
(9,425
)
  
(8,779
)
  
$
1,238,948
  
$
1,128,775
 
Allowance for Loan Losses and Recorded Investment in Loans
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, 2014 and 2013 is as follows (in thousands):

  
September 30, 2014
 
    
Real Estate
         
  
Coml, Fin, and Agric
  
Construction
  
Commercial
  
Residential
  
Consumer
  
Finance Leases Coml
  
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
 
 
  
September 30, 2013
 
    
Real Estate
         
  
Coml, Fin, and Agric
  
Construction
  
Commercial
  
Residential
  
Consumer
  
Finance Leases Coml
  
Other
  
Total
 
Allowance for loan losses:
                
Beginning balance
 
$
1,535
  
$
2,147
  
$
2,166
  
$
936
  
$
543
  
$
41
  
$
2
  
$
7,370
 
Charge-offs
  
(461
)
  
-
   
(18
)
  
(129
)
  
(558
)
  
-
   
-
   
(1,166
)
Recoveries
  
61
   
5
   
21
   
34
   
92
   
-
   
-
   
213
 
Provision
  
3,090
   
(1,081
)
  
(661
)
  
(46
)
  
962
   
(16
)
  
2
   
2,250
 
Ending balance
 
$
4,225
  
$
1,071
  
$
1,508
  
$
795
  
$
1,039
  
$
25
  
$
4
  
$
8,667
 
Ending balance: individually evaluated for impairment
 
$
419
  
$
36
  
$
54
  
$
55
  
$
134
  
$
-
  
$
-
  
$
698
 
Ending balance: collectively evaluated for impairment
 
$
3,806
  
$
1,035
  
$
1,454
  
$
740
  
$
905
  
$
25
  
$
4
  
$
7,969
 
                                 
Loans:
                                
Ending balance
 
$
423,073
  
$
76,213
  
$
401,080
  
$
142,431
  
$
94,722
  
$
5,340
  
$
2,164
  
$
1,145,023
 
Ending balance: individually evaluated for impairment
 
$
1,450
  
$
164
  
$
2,285
  
$
994
  
$
322
  
$
-
  
$
-
  
$
5,215
 
Ending balance: collectively evaluated for impairment
 
$
421,623
  
$
76,049
  
$
398,080
  
$
141,136
  
$
94,400
  
$
5,340
  
$
2,164
  
$
1,138,792
 
Ending balance: loans acquired with deteriorated credit quality
 
$
-
  
$
-
  
$
715
  
$
301
  
$
-
  
$
-
  
$
-
  
$
1,016
 
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, 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
 
$
1,692
  
$
1,435
  
$
2,443
  
$
5,570
  
$
446,495
  
$
452,065
  
$
11
 
Commercial real estate - construction
  
548
   
651
   
73
   
1,272
   
59,078
   
60,350
   
-
 
Commercial real estate - other
  
913
   
200
   
2,513
   
3,626
   
427,304
   
430,930
   
-
 
Residential - construction
  
-
   
-
   
-
   
-
   
25,965
   
25,965
   
-
 
Residential - prime
  
973
   
1,030
   
712
   
2,715
   
151,200
   
153,915
   
-
 
Consumer - credit card
  
34
   
9
   
12
   
55
   
5,763
   
5,818
   
12
 
Consumer - other
  
644
   
101
   
413
   
1,158
   
109,364
   
110,522
   
-
 
Lease financing receivable
  
-
   
-
   
-
   
-
   
5,285
   
5,285
   
-
 
Other loans
  
106
   
-
   
-
   
106
   
3,417
   
3,523
   
-
 
  
$
4,910
  
$
3,426
  
$
6,166
  
$
14,502
  
$
1,233,871
  
$
1,248,373
  
$
23
 

  
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
 
Loans on Nonaccrual Status
Non-accrual loans are as follows (in thousands):
  
September 30, 2014
  
December 31, 2013
 
Commercial, financial, and agricultural
 
$
2,649
  
$
1,272
 
Commercial real estate – construction
  
106
   
100
 
Commercial real estate - other
  
3,358
   
2,290
 
Residential - construction
  
-
   
-
 
Residential - prime
  
1,206
   
1,153
 
Consumer - credit card
  
-
   
-
 
Consumer - other
  
431
   
284
 
Lease financing receivable
  
-
   
-
 
Other
  
-
   
-
 
  
$
7,750
  
$
5,099
 
Impaired Loans by Class of Loans
Loans that are individually evaluated for impairment are as follows (in thousands):
 
  
September 30, 2014
 
   
Recorded Investment
  
Unpaid Principal Balance
  
Related Allowance
  
Average Recorded Investment
  
Interest Income Recognized
 
With no related allowance recorded:
          
Commercial, financial, and agricultural
 
$
441
  
$
524
  
$
-
  
$
474
  
$
-
 
Commercial real estate – construction
  
67
   
67
   
-
   
69
   
-
 
Commercial real estate – other
  
2,947
   
2,947
   
-
   
2,908
   
19
 
Residential – prime
  
554
   
554
   
-
   
511
   
4
 
Residential – construction
  
-
   
-
   
-
   
22
   
-
 
Consumer – other
  
184
   
184
   
-
   
124
   
-
 
Subtotal:
  
4,193
   
4,276
   
-
   
4,108
   
23
 
With an allowance recorded:
                    
Commercial, financial, and agricultural
  
2,221
   
2,336
   
853
   
1,753
   
32
 
Commercial real estate – construction
  
39
   
39
   
3
   
39
   
1
 
Commercial real estate – other
  
365
   
365
   
55
   
365
   
-
 
Residential – prime
  
519
   
539
   
87
   
632
   
10
 
Consumer – other
  
242
   
257
   
140
   
260
   
1
 
Subtotal:
  
3,386
   
3,536
   
1,138
   
3,049
   
44
 
Totals:
                    
Commercial
  
5,974
   
6,172
   
908
   
5,500
   
51
 
Residential
  
1,073
   
1,093
   
87
   
1,143
   
14
 
Construction
  
106
   
106
   
3
   
130
   
1
 
Consumer
  
426
   
441
   
140
   
384
   
1
 
Grand total:
 
$
7,579
  
$
7,812
  
$
1,138
  
$
7,157
  
$
67
 
 
  
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
  
3,454
   
4,364
   
222
   
4,000
   
25
 
Residential
  
900
   
920
   
60
   
1,264
   
18
 
Construction
  
100
   
100
   
3
   
518
   
1
 
Consumer
  
271
   
271
   
120
   
301
   
3
 
Grand total:
 
$
4,725
  
$
5,655
  
$
405
  
$
6,083
  
$
47
 
Credit Quality Indicators by Class of Loans
The following tables present the classes of loans by risk rating (in thousands):
 
  
September 30, 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
 
$
439,626
  
$
60,087
  
$
406,546
  
$
906,259
   
96.07
%
Special mention
  
6,130
   
151
   
4,839
   
11,120
   
1.18
%
Substandard
  
5,777
   
112
   
19,545
   
25,434
   
2.69
%
Doubtful
  
532
   
-
   
-
   
532
   
.06
%
  
$
452,065
  
$
60,350
  
$
430,930
  
$
943,345
   
100.00
%
                     
Residential Credit Exposure
                    
Credit Risk Profile by Creditworthiness Category
                    
      
Residential -construction
  
Residential - prime
  
Total
  
% of Total
 
Pass
     
$
25,965
  
$
149,167
  
$
175,132
   
97.36
%
Special mention
      
-
   
1,504
   
1,504
   
.84
%
Substandard
      
-
   
3,244
   
3,244
   
1.80
%
      
$
25,965
  
$
153,915
  
$
179,880
   
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
 
$
5,806
  
$
110,096
  
$
5,285
  
$
3,523
  
$
124,710
   
99.65
%
Nonperforming
  
12
   
426
   
-
   
-
   
438
   
.35
%
  
$
5,818
  
$
110,522
  
$
5,285
  
$
3,523
  
$
125,148
   
100.00
%
 
  
December 31, 2013
 
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
 
$
397,513
  
$
63,577
  
$
371,618
  
$
832,708
   
96.15
%
Special mention
  
2,962
   
49
   
8,781
   
11,792
   
1.36
%
Substandard
  
3,272
   
1,267
   
16,736
   
21,275
   
2.46
%
Doubtful
  
229
   
-
   
-
   
229
   
0.03
%
  
$
403,976
  
$
64,893
  
$
397,135
  
$
866,004
   
100.00
%
                     
Residential Credit Exposure
                    
Credit Risk Profile by Creditworthiness Category
                    
      
Residential -construction
  
Residential - prime
  
Total
  
% of Total
 
Pass
     
$
17,798
  
$
143,790
  
$
161,588
   
98.15
%
Special mention
      
-
   
548
   
548
   
0.33
%
Substandard
      
-
   
2,503
   
2,503
   
1.52
%
      
$
17,798
  
$
146,841
  
$
164,639
   
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
 
$
6,196
  
$
90,978
  
$
5,542
  
$
3,910
  
$
106,626
   
99.73
%
Nonperforming
  
10
   
275
   
-
   
-
   
285
   
0.27
%
  
$
6,206
  
$
91,253
  
$
5,542
  
$
3,910
  
$
106,911
   
100.00
%
Modifications by Class of Loans
Information about the Company’s TDRs is as follows (in thousands):
 
  
September 30, 2014
 
  
Current
  
Past Due Greater Than 30 Days
  
Nonaccrual TDRs
  
Total TDRs
 
Commercial, financial and agricultural
 
$
22
  
$
-
  
$
236
  
$
258
 
Real estate - commercial
  
158
   
-
   
-
   
158
 
  
$
180
  
$
-
  
$
236
  
$
416
 
 
  
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