Allowance for Loan Losses (Tables)

3 Months Ended

Mar. 31, 2021

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, 2021:

	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, 2020	$	2,914	$	975	$	10,696	$	687	$	371	$	23,513	$	39,156
Provision charged (credited) to operations		(28)		(153)		311		(16)		(84)		250		280
Loans charged off		—		—		—		—		(45)		(1,651)		(1,696)
Recoveries of loans previously charged off		7		—		—		—		35		1,251		1,293
Balance at March 31, 2021	$	2,893	$	822	$	11,007	$	671	$	277	$	23,363	$	39,033

The following table presents the changes in the allowance for loan losses by major classification during the three months ended March 31, 2020:

	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, 2019	$	2,080	$	681	$	7,121	$	733	$	465	$	21,793	$	32,873
Provision charged (credited) to operations		60		90		831		37		(18)		1,650		2,650
Loans charged off		(4)		—		(18)		—		(93)		(3,426)		(3,541)
Recoveries of loans previously charged off		4		—		1		—		62		1,249		1,316
Balance at March 31, 2020	$	2,140	$	771	$	7,935	$	770	$	416	$	21,266	$	33,298

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, 2021, 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	$	69	$	—	$	720	$	—	$	102	$	—	$	891
Collectively evaluated for impairment		2,824		822		10,287		671		175		23,363		38,142
Acquired loans - PCI		—		—		—		—		—		—		—
Total allowance	$	2,893	$	822	$	11,007	$	671	$	277	$	23,363	$	39,033
Loans:
Individually evaluated for impairment	$	1,640	$	—	$	3,803	$	110	$	105	$	—	$	5,658
Collectively evaluated for impairment		214,366		52,884		733,305		46,816		8,985		317,144		1,373,500
Acquired loans - PCI		914		—		4,872		50		42		—		5,878
Total loans	$	216,920	$	52,884	$	741,980	$	46,976	$	9,132	$	317,144	$	1,385,036

The following table presents, as of December 31, 2020, 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	$	77	$	—	$	674	$	—	$	128	$	—	$	879
Collectively evaluated for impairment		2,837		975		10,022		687		243		23,513		38,277
Acquired loans - PCI		—		—		—		—		—		—		—
Total allowance	$	2,914	$	975	$	10,696	$	687	$	371	$	23,513	$	39,156
Loans:
Individually evaluated for impairment	$	2,210	$	—	$	3,825	$	111	$	132	$	—	$	6,278
Collectively evaluated for impairment		214,615		62,147		691,632		48,275		10,848		312,252		1,339,769
Acquired loans - PCI		1,473		—		4,758		80		48		—		6,359
Total loans	$	218,298	$	62,147	$	700,215	$	48,466	$	11,028	$	312,252	$	1,352,406

Schedule of loans by credit quality indicators

Loans by credit quality indicators as of March 31, 2021 were as follows:

			Special				Substandard
(Dollars in thousands)	Pass		Mention		Substandard		Nonaccrual		Total1
Real estate – residential mortgage	$	215,312	$	699	$	631	$	278	$	216,920
Real estate – construction:
Construction lending		39,525		—		—		—		39,525
Consumer lot lending		13,359		—		—		—		13,359
Commercial, financial and agricultural:
Commercial real estate lending		430,671		15,507		8,124		—		454,302
Land acquisition and development lending		33,615		—		—		—		33,615
Builder line lending		22,388		—		—		—		22,388
Commercial business lending		226,063		3,104		99		2,409		231,675
Equity lines		46,658		126		3		189		46,976
Consumer		8,964		42		16		110		9,132
	$	1,036,555	$	19,478	$	8,873	$	2,986	$	1,067,892

1 At March 31, 2021, the Corporation did not have any loans classified as Doubtful or Loss.

			Non-
(Dollars in thousands)	Performing		Performing		Total
Consumer finance	$	316,962	$	182	$	317,144

Loans by credit quality indicators as of December 31, 2020 were as follows:

			Special				Substandard
(Dollars in thousands)	Pass		Mention		Substandard		Nonaccrual		Total1
Real estate – residential mortgage	$	215,712	$	1,715	$	595	$	276	$	218,298
Real estate – construction:
Construction lending		49,659		—		—		—		49,659
Consumer lot lending		12,488		—		—		—		12,488
Commercial, financial and agricultural:
Commercial real estate lending		415,506		15,507		10,890		—		441,903
Land acquisition and development lending		37,724		—		—		—		37,724
Builder line lending		18,194		—		—		—		18,194
Commercial business lending		196,743		3,124		99		2,428		202,394
Equity lines		48,140		132		3		191		48,466
Consumer		10,832		48		41		107		11,028
	$	1,004,998	$	20,526	$	11,628	$	3,002	$	1,040,154

1 At December 31, 2020, the Corporation did not have any loans classified as Doubtful or Loss.

			Non-
(Dollars in thousands)	Performing		Performing		Total
Consumer finance	$	311,850	$	402	$	312,252