XML 22 R8.htm IDEA: XBRL DOCUMENT  v2.3.0.11
Loans
 6 Months Ended
Jun. 30, 2011
Receivables [Abstract]  
Loans
Note 3 — Loans
The following table summarizes loans at June 30, 2011 and December 31, 2010.
                 
    June 30, 2011     December 31, 2010  
    (Dollars in thousands)  
 
               
Commercial, financial, and agricultural
  $ 185,106       189,128  
Real estate:
               
Commercial
    335,841       327,458  
Residential
    162,184       157,680  
Acquisition, development and construction
    175,771       182,412  
Consumer installment
    14,975       17,412  
 
           
 
  $ 873,877       874,090  
 
               
Less allowance for loan losses
    28,410       26,657  
Less deferred loan origination fees (costs)
    76       (5 )
 
           
 
  $ 845,391       847,438  
 
           
The following table presents the activity in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2011.
                                                                                                 
    Commercial,                                                                    
    Financial, and     CRE - Owner     CRE - Non Owner     Residential     ADC     ADC     ADC     ADC     ADC     ADC              
    Agricultural     Occupied     Occupied     Real Estate     CSRA     Savannah     Greenville     Athens     Participations - FL     Participations - GA     Consumer     Total  
    (Dollars in thousands)  
Allowance for loan losses:
                                                                                               
Beginning balance
  $ 3,463       3,921       4,777       5,372       5,097       453       284       796       888       975       631       26,657  
Charge-offs
    1,304       115       512       764       760       300       —       596       888       —       73       5,312  
Recoveries
    304       —       —       8       —       —       6       —       —       —       83       401  
Provision
    1,581       2,026       235       683       1,290       165       (111 )     465       —       374       (44 )     6,664  
 
                                                                       
Ending balance
  $ 4,044       5,832       4,500       5,299       5,627       318       179       665       —       1,349       597       28,410  
 
                                                                       
 
                                                                                               
Ending balance attributable to loans:
                                                                                               
Individually evaluated for impairment
    117       370       —       100       —       —       105       —       —       —       —       692  
Collectively evaluated for impairment
    3,927       5,462       4,500       5,199       5,627       318       74       665       —       1,349       597       27,718  
 
                                                                       
 
  $ 4,044       5,832       4,500       5,299       5,627       318       179       665       —       1,349       597       28,410  
 
                                                                       
 
                                                                                               
Loans:
                                                                                               
Individually evaluated for impairment
    1,636       4,469       3,704       6,457       3,137       1,534       885       2,909       521       —       105       25,357  
Collectively evaluated for impairment
    183,394       182,982       144,686       155,727       143,374       10,377       670       5,864       —       6,500       14,870       848,444  
 
                                                                       
 
  $ 185,030       187,451       148,390       162,184       146,511       11,911       1,555       8,773       521       6,500       14,975       873,801  
 
                                                                       
The following tables present loans individually evaluated for impairment by class of loans as of June 30, 2011 and December 31, 2010.
                                                 
    June 30, 2011  
                    Allowance for     Average             Cash Basis  
    Unpaid Principal     Recorded     Loan Losses     Recorded     Interest Income     Interest Income  
    Balance     Investment     Allocated     Investment     Recognized     Recognized  
    (Dollars in thousands)  
With no related allowance recorded:
                                               
Commercial, financial, and agricultural:
                                               
Commerical
  $ —       —       —       —       1       1  
Financial
    —       —       —       —       —       —  
Agricultural
    931       931       —       1,250       31       31  
Equity lines
    724       724       —       724       —       —  
Other
    —       —       —       —       —       —  
Commercial real estate:
                                               
Owner occupied
    —       —       —       —       —       —  
Non Owner occupied
    244       244       —       246       —       —  
Residential real estate:
                                               
Secured by first liens
    1,378       1,378       —       1,379       14       14  
Secured by junior liens
    46       46       —       46       3       3  
Acquisition, development and construction:
                                               
Residential
    73       73       —       73       —       —  
Other
    1,669       1,669       —       1,670       20       20  
Consumer
    19       19       —       8       —       —  
 
                                   
 
    5,084       5,084       —       5,396       69       69  
 
                                   
 
                                               
With an allowance recorded:
                                               
Commercial, financial, and agricultural:
                                               
Commerical
    215       215       117       219       —       —  
Financial
    —       —       —       —       —       —  
Agricultural
    —       —       —       —       —       —  
Equity lines
    638       638       —       334       —       —  
Other
    —       —       —       —       —       —  
Commercial real estate:
                                               
Owner occupied
    4,469       4,469       370       4,460       34       34  
Non Owner occupied
    3,460       3,466       —       3,583       —       —  
Residential real estate:
                                               
Secured by first liens
    3,748       3,754       100       4,979       8       8  
Secured by junior liens
    106       106       —       135       5       5  
Acquisition, development and construction:
                                               
Residential
    307       307       —       —       —       —  
Other
    7,244       7,244       105       7,782       6       6  
Consumer
    86       86       —       87       —       —  
 
                                   
 
    20,273       20,285       692       21,579       53       53  
 
                                   
 
                                               
 
  $ 25,357       25,369       692       26,975       122       122  
 
                                   
                         
    December 31, 2010  
                    Allowance for  
    Unpaid Principal     Recorded     Loan Losses  
    Balance     Investment     Allocated  
    (Dollars in thousands)  
With no related allowance recorded:
                       
Commercial, financial, and agricultural:
                       
Commerical
  $ 8       8       —  
Financial
    —       —       —  
Agricultural
    1,016       1,016       —  
Equity lines
    720       720       —  
Other
    —       —       —  
Commercial real estate:
                       
Owner occupied
    390       390       —  
Non Owner occupied
    180       180       —  
Residential real estate:
                       
Secured by first liens
    1,742       1,742       —  
Secured by junior liens
    —       —       —  
Acquisition, development and construction:
                       
Residential
    636       636       —  
Other
    5,987       5,987       —  
Consumer
    —       —       —  
 
                 
 
    10,679       10,679       —  
 
                 
 
                       
With an allowance recorded:
                       
Commercial, financial, and agricultural:
                       
Commerical
    —       —       —  
Financial
    —       —       —  
Agricultural
    —       —       —  
Equity lines
    —       —       —  
Other
    —       —       —  
Commercial real estate:
                       
Owner occupied
    129       129       3  
Non Owner occupied
    3,227       3,230       210  
Residential real estate:
                       
Secured by first liens
    3,229       3,234       42  
Secured by junior liens
    —       —       —  
Acquisition, development and construction:
                       
Residential
    156       156       —  
Other
    7,628       7,638       1,219  
Consumer
    —       —       —  
 
                 
 
    14,369       14,387       1,474  
 
                 
 
                       
 
  $ 25,048       25,066       1,474  
 
                 
Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.
The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2011 and December 31, 2010.
                 
    June 30, 2011  
            Loans Past Due  
            90 Days or More  
    Nonaccrual     Still Accruing  
    (Dollars in thousands)  
Commercial, financial, and agricultural:
               
Commerical
  $ 449       —  
Financial
    —       —  
Agricultural
    961       —  
Equity lines
    1,562       —  
Other
    —       —  
Commercial real estate:
               
Owner occupied
    4,963       —  
Non Owner occupied
    2,553       —  
Residential real estate:
               
Secured by first liens
    5,046       —  
Secured by junior liens
    186       —  
Acquisition, development and construction:
               
Residential
    187       —  
Other
    9,071       —  
Consumer
    254       —  
 
           
 
  $ 25,232       —  
 
           
                 
    December 31, 2010  
            Loans Past Due  
            90 Days or More  
    Nonaccrual     Still Accruing  
    (Dollars in thousands)  
Commercial, financial, and agricultural:
               
Commerical
  $ 190       —  
Financial
    —       —  
Agricultural
    1,250       —  
Equity lines
    1,136       —  
Other
    348       —  
Commercial real estate:
               
Owner occupied
    1,207       —  
Non Owner occupied
    2,586       —  
Residential real estate:
               
Secured by first liens
    4,551       69  
Secured by junior liens
    183       —  
Acquisition, development and construction:
               
Residential
    1,275       —  
Other
    10,678       —  
Consumer
    301       —  
 
           
 
  $ 23,705       69  
 
           
The following tables present the aging of the recorded investment in past due loans as of June 30, 2011 and December 31, 2010 by class of loans.
                                                 
    June 30, 2011  
    30 - 89 Days     90 Days or     Nonaccrual     Total     Loans Not        
    Past Due     More Past Due     Loans     Past Due     Past Due     Total  
    (Dollars in thousands)  
Commercial, financial, and agricultural:
                                               
Commerical
  $ 75       —       449       524       121,149       121,673  
Financial
    —       —       —       —       3,411       3,411  
Agricultural
    888       —       961       1,849       12,955       14,804  
Equity lines
    181       —       1,562       1,743       38,262       40,005  
Other
    —       —       —       —       5,213       5,213  
Commercial real estate:
                                               
Owner occupied
    289       —       4,963       5,252       182,199       187,451  
Non Owner occupied
    212       —       2,553       2,765       145,625       148,390  
Residential real estate:
                                               
Secured by first liens
    2,595       —       5,046       7,641       144,472       152,113  
Secured by junior liens
    154       —       186       340       9,731       10,071  
Acquisition, development and construction:
                                               
Residential
    —       —       187       187       42,001       42,188  
Other
    10       —       9,071       9,081       124,502       133,583  
Consumer
    52       —       254       306       14,669       14,975  
 
                                   
 
  $ 4,456       —       25,232       29,688       844,189       873,877  
 
                                   
                                                 
    December 31, 2010  
    30 - 89 Days     90 Days or     Nonaccrual     Total     Loans Not        
    Past Due     More Past Due     Loans     Past Due     Past Due     Total  
    (Dollars in thousands)  
Commercial, financial, and agricultural:
                                               
Commerical
  $ 170       —       190       360       117,786       118,146  
Financial
    —       —       —       —       3,588       3,588  
Agricultural
    —       —       1,250       1,250       12,940       14,190  
Equity lines
    214       —       1,136       1,350       41,687       43,037  
Other
    —       —       348       348       9,819       10,167  
Commercial real estate:
                                               
Owner occupied
    317       —       1,207       1,524       182,939       184,463  
Non Owner occupied
    521       —       2,586       3,107       139,888       142,995  
Residential real estate:
                                               
Secured by first liens
    2,417       69       4,551       7,037       140,238       147,275  
Secured by junior liens
    155       —       183       338       10,067       10,405  
Acquisition, development and construction:
                                               
Residential
    —       —       1,275       1,275       41,538       42,813  
Other
    121       —       10,678       10,799       128,800       139,599  
Consumer
    31       —       301       332       17,080       17,412  
 
                                   
 
  $ 3,946       69       23,705       27,720       846,370       874,090  
 
                                   
Troubled Debt Restructurings:
The Company has troubled debt restructurings (TDRs) with a balance of $4,733 and $3,514 included in impaired loans at June 30, 2011 and December 31, 2010, respectively. The Company has recorded $321 and $446 in charge-offs on these TDRs during the period ended June 30, 2011 and December 31, 2010, respectively. Specific reserves of $0 and $80 have been allocated to customers whose loan terms have been modified in TDRs as of June 30, 2011 and December 31, 2010. The Company is not committed to lend additional amounts as of June 30, 2011 and December 31, 2010 to customers with outstanding loans that are classified as TDRs. The following table presents TDRs as of June 30, 2011.
                         
    June 30, 2011  
            Pre-Modification     Post-Modification  
    Number of     Outstanding     Outstanding  
    Contracts     Recorded Investment     Recorded Investment  
    (Dollars in thousands)  
Troubled Debt Restructurings:
                       
Commercial, financial, and agricultural:
                       
Commerical
    —     $ —     $ —  
Financial
    —       —       —  
Agricultural
    —       —       —  
Equity lines
    —       —       —  
Other
    —       —       —  
Commercial real estate:
                       
Owner occupied
    3       519       519  
Non Owner occupied
    5       2,053       2,035  
Residential real estate:
                       
Secured by first liens
    8       2,022       2,005  
Secured by junior liens
    2       120       113  
Acquisition, development and construction:
                       
Residential
    —       —       —  
Other
    —       —       —  
Consumer
    1       19       17  
Credit Quality Indicators:
The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company, through its originating account officer, places an initial credit risk rating on every loan. An annual review and analysis of loan relationships (irrespective of loan types included in the overall relationship) with total related exposure of $500 or greater is performed by the Credit Administration department in order to update risk ratings given current available information. The Company uses the following definitions for risk ratings.
Watch: Loans classified as watch have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.
Substandard: Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Doubtful: Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of June 30, 2011 and December 31, 2010, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows.
                                 
    June 30, 2011  
    Pass     Watch     Substandard     Doubtful  
    (Dollars in thousands)  
Commercial, financial, and agricultural:
                               
Commerical
  $ 108,404       6,320       6,949       —  
Financial
    1,013       2,398       —       —  
Agricultural
    10,792       1,934       2,078       —  
Equity lines
    37,461       729       1,815       —  
Other
    4,274       329       610       —  
Commercial real estate:
                               
Owner occupied
    158,765       17,304       11,382       —  
Non Owner occupied
    122,468       19,305       6,617       —  
Residential real estate:
                               
Secured by first liens
    128,435       13,398       10,280       —  
Secured by junior liens
    8,704       1,092       275       —  
Acquisition, development and construction:
                               
Residential
    40,516       1,485       187       —  
Other
    97,880       10,715       24,988       —  
Consumer
    14,098       423       454       —  
 
                       
 
  $ 732,810       75,432       65,635       —  
 
                       
                                 
    December 31, 2010  
    Pass     Watch     Substandard     Doubtful  
    (Dollars in thousands)  
Commercial, financial, and agricultural:
                               
Commerical
  $ 103,337       8,074       6,735       —  
Financial
    1,103       2,485       —       —  
Agricultural
    9,343       2,609       2,238       —  
Equity lines
    39,144       1,915       1,978       —  
Other
    8,893       926       348       —  
Commercial real estate:
                               
Owner occupied
    157,155       22,329       4,979       —  
Non Owner occupied
    119,160       16,579       7,256       —  
Residential real estate:
                               
Secured by first liens
    124,261       14,837       8,177       —  
Secured by junior liens
    9,418       708       279       —  
Acquisition, development and construction:
                               
Residential
    38,374       2,721       1,718       —  
Other
    92,514       23,285       23,800       —  
Consumer
    16,247       567       598       —  
 
                       
 
  $ 718,949       97,035       58,106       —