Allowance for Loan Losses (Tables)

6 Months Ended

Jun. 30, 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 six months ended June 30, 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		(68)		23		218		(225)		162		4,095		4,205
Loans charged off		(45)		—		(29)		—		(162)		(6,966)		(7,202)
Recoveries of loans previously charged off		9		—		3		—		115		2,248		2,375
Balance at June 30, 2019	$	2,142	$	750	$	6,880	$	881	$	372	$	22,376	$	33,401

The following table presents the changes in the allowance for loan losses by major classification during the six months ended June 30, 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		(108)		340		(520)		229		59		5,300		5,300
Loans charged off		—		—		(2)		—		(133)		(7,948)		(8,083)
Recoveries of loans previously charged off		35		—		22		—		95		2,298		2,450
Balance at June 30, 2018	$	2,298	$	945	$	6,978	$	917	$	252	$	24,003	$	35,393

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

The following table presents, as of June 30, 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	$	81	$	—	$	70	$	187	$	121	$	—	$	459
Collectively evaluated for impairment		2,061		750		6,810		694		251		22,376		32,942
Acquired loans - PCI		—		—		—		—		—		—		—
Total allowance	$	2,142	$	750	$	6,880	$	881	$	372	$	22,376	$	33,401
Loans:
Individually evaluated for impairment	$	2,727	$	—	$	1,569	$	217	$	125	$	—	$	4,638
Collectively evaluated for impairment		180,139		58,372		472,058		53,489		13,020		308,009		1,085,087
Acquired loans - PCI		115		—		460		35		—		—		610
Total loans	$	182,981	$	58,372	$	474,087	$	53,741	$	13,145	$	308,009	$	1,090,335

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 June 30, 2019 were as follows:

			Special				Substandard
(Dollars in thousands)	Pass		Mention		Substandard		Nonaccrual		Total1
Real estate – residential mortgage	$	179,536	$	1,654	$	1,206	$	585	$	182,981
Real estate – construction:
Construction lending		46,324		—		—		—		46,324
Consumer lot lending		12,048		—		—		—		12,048
Commercial, financial and agricultural:
Commercial real estate lending		312,591		2,756		422		—		315,769
Land acquisition and development lending		34,040		9,475		—		—		43,515
Builder line lending		34,348		—		—		—		34,348
Commercial business lending		79,759		696		—		—		80,455
Equity lines		53,069		320		30		322		53,741
Consumer		13,008		8		8		121		13,145
	$	764,723	$	14,909	$	1,666	$	1,028	$	782,326

¹ At June 30, 2019, the Corporation did not have any loans classified as Doubtful or Loss.

			Non-
(Dollars in thousands)	Performing		Performing		Total
Consumer finance	$	307,704	$	305	$	308,009

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