Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2019

Allowance for Loan Losses

Schedule of changes in the allowance for loan losses

The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2019:

	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance for loan losses:
Balance at December 31, 2018	$	2,246	$	727	$	6,688	$	1,106	$	257	$	22,999	$	34,023
Provision charged (credited) to operations		(47)		114		(25)		(205)		163		2,395		2,395
Loans charged off		—		—		—		—		(76)		(3,890)		(3,966)
Recoveries of loans previously charged off		5		—		1		—		42		1,089		1,137
Balance at March 31, 2019	$	2,204	$	841	$	6,664	$	901	$	386	$	22,593	$	33,589

The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2018:

	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance for loan losses:
Balance at December 31, 2017	$	2,371	$	605	$	7,478	$	688	$	231	$	24,353	$	35,726
Provision charged (credited) to operations		(16)		251		(238)		—		3		3,300		3,300
Loans charged off		—		—		(2)		—		(71)		(4,583)		(4,656)
Recoveries of loans previously charged off		22		—		5		—		48		1,155		1,230
Balance at March 31, 2018	$	2,377	$	856	$	7,243	$	688	$	211	$	24,225	$	35,600

Schedule of balance of the allowance for loan losses and the balance of loans by impairment methodology

The following table presents, as of March 31, 2019, the balance of the allowance for loan losses and the balance of loans by impairment methodology.

	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance balance attributable to loans:
Individually evaluated for impairment	$	127	$	—	$	69	$	187	$	124	$	—	$	507
Collectively evaluated for impairment		2,077		841		6,595		714		262		22,593		33,082
Acquired loans - PCI		—		—		—		—		—		—		—
Total allowance	$	2,204	$	841	$	6,664	$	901	$	386	$	22,593	$	33,589
Loans:
Individually evaluated for impairment	$	3,033	$	—	$	2,150	$	217	$	128	$	—	$	5,528
Collectively evaluated for impairment		180,384		65,588		456,181		53,804		12,705		299,592		1,068,254
Acquired loans - PCI		280		—		1,489		90		—		—		1,859
Total loans	$	183,697	$	65,588	$	459,820	$	54,111	$	12,833	$	299,592	$	1,075,641

The following table presents, as of December 31, 2018, the balance of the allowance for loan losses, the allowance by impairment methodology, total loans and loans by impairment methodology.

	Real Estate				Commercial,
	Residential		Real Estate		Financial &		Equity				Consumer
(Dollars in thousands)	Mortgage		Construction		Agricultural		Lines		Consumer		Finance		Total
Allowance balance attributable to loans:
Individually evaluated for impairment	$	92	$	—	$	10	$	326	$	—	$	—	$	428
Collectively evaluated for impairment		2,154		727		6,678		780		257		22,999		33,595
Acquired loans - PCI		—		—		—		—		—		—		—
Total allowance	$	2,246	$	727	$	6,688	$	1,106	$	257	$	22,999	$	34,023
Loans:
Individually evaluated for impairment	$	2,965	$	—	$	2,450	$	357	$	5	$	—	$	5,777
Collectively evaluated for impairment		181,652		54,461		452,024		55,213		15,004		296,154		1,054,508
Acquired loans - PCI		284		—		1,461		90		—		—		1,835
Total loans	$	184,901	$	54,461	$	455,935	$	55,660	$	15,009	$	296,154	$	1,062,120

Schedule of loans by credit quality indicators

Loans by credit quality indicators as of March 31, 2019 were as follows:

			Special				Substandard
(Dollars in thousands)	Pass		Mention		Substandard		Nonaccrual		Total1
Real estate – residential mortgage	$	179,808	$	2,210	$	978	$	701	$	183,697
Real estate – construction:
Construction lending		53,319		—		—		—		53,319
Consumer lot lending		12,269		—		—		—		12,269
Commercial, financial and agricultural:
Commercial real estate lending		299,627		3,008		445		—		303,080
Land acquisition and development lending		35,151		10,094		—		—		45,245
Builder line lending		28,743		—		437		—		29,180
Commercial business lending		81,735		551		—		29		82,315
Equity lines		52,895		409		47		760		54,111
Consumer		12,697		9		3		124		12,833
	$	756,244	$	16,281	$	1,910	$	1,614	$	776,049

¹ At March 31, 2019, the Corporation did not have any loans classified as Doubtful or Loss.

			Non-
(Dollars in thousands)	Performing		Performing		Total
Consumer finance	$	299,072	$	520	$	299,592

Loans by credit quality indicators as of December 31, 2018 were as follows:

			Special				Substandard
(Dollars in thousands)	Pass		Mention		Substandard		Nonaccrual		Total1
Real estate – residential mortgage	$	180,232	$	2,832	$	1,243	$	594	$	184,901
Real estate – construction:
Construction lending		42,051		—		—		—		42,051
Consumer lot lending		12,410		—		—		—		12,410
Commercial, financial and agricultural:
Commercial real estate lending		306,578		3,801		454		—		310,833
Land acquisition and development lending		33,156		10,248		—		—		43,404
Builder line lending		31,201		—		—		—		31,201
Commercial business lending		69,897		576		—		24		70,497
Equity lines		54,289		389		99		883		55,660
Consumer		14,998		5		6		—		15,009
	$	744,812	$	17,851	$	1,802	$	1,501	$	765,966

¹ At December 31, 2018, the Corporation did not have any loans classified as Doubtful or Loss.

			Non-
(Dollars in thousands)	Performing		Performing		Total
Consumer finance	$	295,442	$	712	$	296,154