Loans and Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 2020

Loans and Allowances for Loan Losses

Schedule of summary of loans, by major class within the Company's loan portfolio

	June 30,		December 31,
(in thousands)	2020		2019
Commercial, financial, and agricultural (a)	$	296,323	$	199,022
Real estate construction - residential		27,188		23,035
Real estate construction - commercial		85,009		84,998
Real estate mortgage - residential		250,452		252,643
Real estate mortgage - commercial		592,855		576,635
Installment and other consumer		28,788		32,464
Total loans held for investment	$	1,280,615	$	1,168,797

Schedule of summary of the allowance for loan losses

	Three Months Ended June 30, 2020
	Commercial,		Real Estate		Real Estate		Real Estate		Real Estate		Installment
	Financial, &		Construction -		Construction -		Mortgage -		Mortgage -		and Other		Un-
(in thousands)	Agricultural		Residential		Commercial		Residential		Commercial		Consumer		allocated		Total
Balance at beginning of period	$	3,623	$	117	$	622	$	2,363	$	8,614	$	351	$	3	$	15,693
Additions:
Provision for loan losses		(32)		22		100		354		435		(26)		47		900
Deductions:
Loans charged off		43		—		—		33		2		39		—		117
Less recoveries on loans		(66)		(32)		—		(27)		(1)		(20)		—		(146)
Net loan charge-offs (recoveries)		(23)		(32)		—		6		1		19		—		(29)
Balance at end of period	$	3,614	$	171	$	722	$	2,711	$	9,048	$	306	$	50	$	16,622

	Six Months Ended June 30, 2020
	Commercial,		Real Estate		Real Estate		Real Estate		Real Estate		Installment
	Financial, &		Construction -		Construction -		Mortgage -		Mortgage -		and Other		Un-
(in thousands)	Agricultural		Residential		Commercial		Residential		Commercial		Consumer		allocated		Total
Balance at beginning of period	$	2,918	$	64	$	369	$	2,118	$	6,547	$	381	$	80	$	12,477
Additions:
Provision for loan losses		689		75		353		609		2,522		(18)		(30)		4,200
Deductions:
Loans charged off		84		—		—		52		24		91		—		251
Less recoveries on loans		(91)		(32)		—		(36)		(3)		(34)		—		(196)
Net loan charge-offs (recoveries)		(7)		(32)		—		16		21		57		—		55
Balance at end of period	$	3,614	$	171	$	722	$	2,711	$	9,048	$	306	$	50	$	16,622

	Three Months Ended June 30, 2019
	Commercial,		Real Estate		Real Estate		Real Estate		Real Estate		Installment
	Financial, &		Construction -		Construction -		Mortgage -		Mortgage -		and Other		Un-
(in thousands)	Agricultural		Residential		Commercial		Residential		Commercial		Consumer		allocated		Total
Balance at beginning of period	$	3,232	$	74	$	638	$	1,890	$	5,523	$	333	$	155	$	11,845
Additions:
Provision for loan losses		(327)		(17)		66		(27)		591		(20)		(16)		250
Deductions:
Loans charged off		140		—		—		96		8		39		—		283
Less recoveries on loans		(18)		(12)		—		(5)		(3)		(33)		—		(71)
Net loan charge-offs (recoveries)		122		(12)		—		91		5		6		—		212
Balance at end of period	$	2,783	$	69	$	704	$	1,772	$	6,109	$	307	$	139	$	11,883

	Six Months Ended June 30, 2019
	Commercial,		Real Estate		Real Estate		Real Estate		Real Estate		Installment
	Financial, &		Construction -		Construction -		Mortgage -		Mortgage -		and Other		Un-
(in thousands)	Agricultural		Residential		Commercial		Residential		Commercial		Consumer		allocated		Total
Balance at beginning of period	$	3,237	$	140	$	757	$	2,071	$	4,914	$	334	$	199	$	11,652
Additions:
Provision for loan losses		(388)		(83)		(53)		(223)		1,208		(1)		(60)		400
Deductions:
Loans charged off		193		—		—		180		16		91		—		480
Less recoveries on loans		(127)		(12)		—		(104)		(3)		(65)		—		(311)
Net loan charge-offs (recoveries)		66		(12)		—		76		13		26		—		169
Balance at end of period	$	2,783	$	69	$	704	$	1,772	$	6,109	$	307	$	139	$	11,883

Schedule of allowance for loan losses and recorded investment by portfolio segment

	Commercial,		Real Estate		Real Estate		Real Estate		Real Estate		Installment
	Financial, and		Construction -		Construction -		Mortgage -		Mortgage -		and Other		Un-
(in thousands)	Agricultural		Residential		Commercial		Residential		Commercial		Consumer		allocated		Total
June 30, 2020
Allowance for loan losses:
Individually evaluated for impairment	$	291	$	—	$	122	$	231	$	52	$	14	$	—	$	710
Collectively evaluated for impairment		3,323		171		600		2,480		8,996		292		50		15,912
Total	$	3,614	$	171	$	722	$	2,711	$	9,048	$	306	$	50	$	16,622
Loans outstanding:
Individually evaluated for impairment	$	3,538	$	—	$	959	$	4,857	$	1,866	$	118	$	—	$	11,338
Collectively evaluated for impairment		292,785		27,188		84,050		245,595		590,989		28,670		—		1,269,277
Total	$	296,323	$	27,188	$	85,009	$	250,452	$	592,855	$	28,788	$	—	$	1,280,615
December 31, 2019
Allowance for loan losses:
Individually evaluated for impairment	$	311	$	—	$	—	$	264	$	23	$	17	$	—	$	615
Collectively evaluated for impairment		2,607		64		369		1,854		6,524		364		80		11,862
Total	$	2,918	$	64	$	369	$	2,118	$	6,547	$	381	$	80	$	12,477
Loans outstanding:
Individually evaluated for impairment	$	1,514	$	—	$	137	$	3,856	$	1,711	$	177	$	—	$	7,395
Collectively evaluated for impairment		197,508		23,035		84,861		248,787		574,924		32,287		—		1,161,402
Total	$	199,022	$	23,035	$	84,998	$	252,643	$	576,635	$	32,464	$	—	$	1,168,797

Schedule of impaired loans

	June 30,		December 31,
(in thousands)	2020		2019
Non-accrual loans	$	8,849	$	4,754
Non-performing TDRs - 90 days past due		—		106
Performing TDRs		2,489		2,535
Total impaired loans	$	11,338	$	7,395

The following tables provide additional information about impaired loans at June 30, 2020 and December 31, 2019, respectively, segregated between loans for which an allowance has been provided and loans for which no allowance has been provided.

			Unpaid
	Recorded		Principal		Specific
(in thousands)	Investment		Balance		Reserves
June 30, 2020
With no related allowance recorded:
Commercial, financial and agricultural	$	2,275	$	2,510	$	—
Real estate - construction commercial		393		443		—
Real estate - residential		2,560		2,711		—
Real estate - commercial		1,082		1,148		—
Installment and other consumer		10		11		—
Total	$	6,320	$	6,823	$	—
With an allowance recorded:
Commercial, financial and agricultural	$	1,263	$	1,577	$	291
Real estate - construction commercial		566		575		122
Real estate - residential		2,297		2,690		231
Real estate - commercial		784		900		52
Installment and other consumer		108		116		14
Total	$	5,018	$	5,858	$	710
Total impaired loans	$	11,338	$	12,681	$	710

			Unpaid
	Recorded		Principal		Specific
(in thousands)	Investment		Balance		Reserves
December 31, 2019
With no related allowance recorded:
Commercial, financial and agricultural	$	342	$	487	$	—
Real estate - construction commercial		137		173		—
Real estate - residential		697		784		—
Real estate - commercial		1,388		1,433		—
Installment and other consumer		12		12		—
Total	$	2,576	$	2,889	$	—
With an allowance recorded:
Commercial, financial and agricultural	$	1,172	$	1,470	$	311
Real estate - residential		3,159		3,482		264
Real estate - commercial		323		425		23
Installment and other consumer		165		189		17
Total	$	4,819	$	5,566	$	615
Total impaired loans	$	7,395	$	8,455	$	615

The following table presents by class, information related to the average recorded investment and interest income recognized on impaired loans during the periods indicated.

	Three Months Ended June 30,								Six Months Ended June 30,
	2020				2019				2020				2019
			Interest				Interest				Interest				Interest
	Average		Recognized		Average		Recognized		Average		Recognized		Average		Recognized
	Recorded		For the		Recorded		For the		Recorded		For the		Recorded		For the
(in thousands)	Investment		Period Ended		Investment		Period Ended		Investment		Period Ended		Investment		Period Ended
With no related allowance recorded:
Commercial, financial and agricultural	$	3,059	$	—	$	1,189	$	—	$	1,370	$	—	$	1,304	$	—
Real estate - construction commercial		528		—		147		—		271		—		152		—
Real estate - residential		2,758		—		1,092		—		1,355		—		785		—
Real estate - commercial		1,448		7		107		—		1,178		13		144		—
Installment and other consumer		15		—		—		—		12		—		—		—
Total	$	7,808	$	7	$	2,535	$	—	$	4,186	$	13	$	2,385	$	—
With an allowance recorded:
Commercial, financial and agricultural	$	1,615	$	11	$	1,079	$	11	$	1,195	$	19	$	1,115	$	21
Real estate - construction commercial		766		—		—		—		142		—		—		—
Real estate - residential		3,724		8		3,481		21		2,990		28		4,044		46
Real estate - commercial		540		3		1,170		7		438		6		927		16
Installment and other consumer		147		1		236		1		135		7		245		2
Total	$	6,792	$	23	$	5,966	$	40	$	4,900	$	60	$	6,331	$	85
Total impaired loans	$	14,600	$	30	$	8,501	$	40	$	9,086	$	73	$	8,716	$	85

Schedule of aging information for the Company's past due and non-accrual loans

	Current or				90 Days
	Less Than				Past Due
	30 Days		30 - 89 Days		And Still
(in thousands)	Past Due		Past Due		Accruing		Non-Accrual		Total
June 30, 2020
Commercial, Financial, and Agricultural	$	292,873	$	428	$	—	$	3,022	$	296,323
Real Estate Construction - Residential		27,188		—		—		—		27,188
Real Estate Construction - Commercial		84,050		—		—		959		85,009
Real Estate Mortgage - Residential		245,472		1,619		51		3,310		250,452
Real Estate Mortgage - Commercial		591,264		70		—		1,521		592,855
Installment and Other Consumer		28,699		45		7		37		28,788
Total	$	1,269,546	$	2,162	$	58	$	8,849	$	1,280,615
December 31, 2019
Commercial, Financial, and Agricultural	$	197,828	$	212	$	—	$	982	$	199,022
Real Estate Construction - Residential		22,468		567		—		—		23,035
Real Estate Construction - Commercial		84,861		—		—		137		84,998
Real Estate Mortgage - Residential		249,516		688		304		2,135		252,643
Real Estate Mortgage - Commercial		575,140		136		—		1,359		576,635
Installment and Other Consumer		32,179		132		12		141		32,464
Total	$	1,161,992	$	1,735	$	316	$	4,754	$	1,168,797

Schedule of risk categories by class

	Commercial,		Real Estate		Real Estate		Real Estate		Real Estate		Installment
	Financial, &		Construction -		Construction -		Mortgage -		Mortgage -		and other
(in thousands)	Agricultural		Residential		Commercial		Residential		Commercial		Consumer		Total
At June 30, 2020
Watch	$	19,892	$	743	$	9,132	$	14,934	$	58,022	$	—	$	102,723
Substandard		1,220		—		—		1,426		590		—		3,236
Performing TDRs		516		—		—		1,547		345		81		2,489
Non-accrual loans		3,022		—		959		3,310		1,521		37		8,849
Total	$	24,650	$	743	$	10,091	$	21,217	$	60,478	$	118	$	117,297
At December 31, 2019
Watch	$	16,288	$	763	$	8,484	$	15,280	$	37,271	$	—	$	78,086
Substandard		3,249		—		273		2,291		677		—		6,490
Performing TDRs		532		—		—		1,615		352		36		2,535
Non-performing TDRs - 90 days past due		—		—		—		106		—		—		106
Non-accrual loans		982		—		137		2,135		1,359		141		4,754
Total	$	21,051	$	763	$	8,894	$	21,427	$	39,659	$	177	$	91,971

Schedule of loan modifications provided for under the CARES Act

	Loan Modifications under the CARES Act by NAICS Code
Industry Category	Interest Only		% Loans			Full Deferral		% Loans			Totals
(in thousands)
Real Estate and Rental and Leasing	$	123,792		43.2	%	$	34,534		12.0	%	$	158,326
Accommodations and Food Services		9,936		3.5			44,467		15.5			54,403
Construction		8,758		3.1			8,424		2.9			17,182
Manufacturing		8,002		2.8			1,089		0.4			9,091
Other Services		6,141		2.1			1,820		0.6			7,961
Cinemas		1,061		0.4			6,191		2.2			7,252
Health Care and Social Assistance		6,367		2.2			1,193		0.4			7,560
Retail Trade		4,338		1.5			846		0.3			5,184
Arts, Entertainment, Recreation		1,235		0.4			3,209		1.1			4,444
Non-NAICS (Consumer)		292		0.1			4,115		1.4			4,407
Other		7,299		2.5			3,701		1.3			11,000
Total modifications	$	177,221		61.8	%	$	109,589		38.2	%	$	286,810
Total loans held for investment											$	1,280,615
Percent of portfolio												22.4	%

	Loan Modifications under the CARES Act for Six Months by NAICS Code
Industry Category	Interest Only		% Loans			Full Deferral		% Loans			Totals
(in thousands)
Real Estate and Rental and Leasing	$	14,700		25.2	%	$	5,790		9.9	%	$	20,490
Accommodations and Food Services		7,059		12.1			22,469		38.5			29,528
Construction		505		0.9			720		1.2			1,225
Cinemas		-		—			6,191		10.6			6,191
Retail Trade		-		—			119		0.2			119
Arts, Entertainment, Recreation		65		0.1			—					65
Non-NAICS (Consumer)		-		—			142		0.3			142
Other		253		0.4			320		0.6			573
Total modifications	$	22,582		38.7	%	$	35,751		61.3	%	$	58,333
Total loans held for investment											$	1,280,615
Total CARES Act modifications											$	286,810
Percent of portfolio												4.6	%
Percent of modifications												20.3	%

Schedule of summary of loans that were modified as TDRs

	Three Months Ended June 30,
	2020					2019
	Recorded Investment (1)					Recorded Investment (1)
	Number of	Pre-		Post-		Number of		Pre-		Post-
(in thousands)	Contracts	Modification		Modification		Contracts		Modification		Modification
Troubled Debt Restructurings
Real estate mortgage - residential	1	$	111	$	119	—	$		—	$	—
Total	1	$	111	$	119	—		$	—	$	—

	Six Months Ended June 30,
	2020						2019
	Recorded Investment (1)						Recorded Investment (1)
	Number of	Pre-			Post-		Number of	Pre-		Post-
(in thousands)	Contracts	Modification			Modification		Contracts	Modification		Modification
Troubled Debt Restructurings
Commercial, financial and agricultural	—	$	—		$	—	2	$	80	$	80
Real estate mortgage - residential	1		111			119	—		—		—
Installment and other consumer	1		6	​		5	—		—		—
Total	2	$	117		$	124	2	$	80	$	80

(1) The amounts reported post-modification are inclusive of all partial pay-downs and charge-offs, and no portion of the debt was forgiven. Loans modified as a TDR that were fully paid down, charged-off or foreclosed upon during the period ended are not reported.