Loans (Tables)

6 Months Ended

Jun. 30, 2020

Summary of major classifications of loans


	June 30,		December 31,
(Dollars in thousands)	2020		2019
Real estate – residential mortgage	$	205,011	$	181,295
Real estate – construction ¹		72,094		54,246
Commercial, financial and agricultural ²		682,817		500,812
Equity lines		52,697		52,083
Consumer		15,722		13,756
Consumer finance		300,649		312,999
		1,328,990		1,115,191
Less allowance for loan losses		(36,094)		(32,873)
Loans, net	$	1,292,896	$	1,082,318

1	Includes the Corporation’s real estate construction lending and consumer real estate lot lending.

2	Includes the Corporation’s commercial real estate lending, land acquisition and development lending, builder line lending and commercial business lending.

Schedule of acquired loans


	June 30, 2020						December 31, 2019
	Acquired Loans -		Acquired Loans -				Acquired Loans -		Acquired Loans -
	Purchased		Purchased		Acquired Loans -		Purchased		Purchased		Acquired Loans -
(Dollars in thousands)	Credit Impaired		Performing		Total		Credit Impaired		Performing		Total
Outstanding principal balance	$	18,591	$	116,971	$	135,562	$	6,262	$	27,839	$	34,101
Carrying amount
Real estate – residential mortgage	$	1,814	$	22,448	$	24,262	$	107	$	7,035	$	7,142
Real estate – construction		—		3,762		3,762		—		—		—
Commercial, financial and agricultural¹		5,452		74,254		79,706		563		11,338		11,901
Equity lines		77		11,767		11,844		35		8,046		8,081
Consumer		488		2,317		2,805		—		3		3
Total acquired loans	$	7,831	$	114,548	$	122,379	$	705	$	26,422	$	27,127

1	Includes acquired loans classified by the Corporation as commercial real estate lending and commercial business lending.

Summary of change in the accretable yield of loans classified as purchased credit impaired (PCI)


	Six Months Ended June 30,
(Dollars in thousands)	2020		2019
Accretable yield, balance at beginning of period	$	4,721	$	5,987
Additions		3,372		—
Accretion		(1,687)		(1,760)
Reclassification of nonaccretable difference due to improvement in expected cash flows		923		727
Other changes, net		115		349
Accretable yield, balance at end of period	$	7,444	$	5,303

Schedule of loans on nonaccrual status


	June 30,		December 31,
(Dollars in thousands)	2020		2019
Real estate – residential mortgage	$	980	$	1,526
Commercial, financial and agricultural:
Commercial business lending		—		11
Equity lines		244		229
Consumer		542		118
Consumer finance		369		611
Total loans on nonaccrual status	$	2,135	$	2,495

Schedule of past due status of loans

The past due status of loans as of June 30, 2020 was as follows:


															90+ Days
	30 - 59 Days		60 - 89 Days		90+ Days		Total								Past Due and
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		PCI		Current¹		Total Loans		Accruing
Real estate – residential mortgage	$	537	$	285	$	880	$	1,702	$	1,814	$	201,495	$	205,011	$	291
Real estate – construction:
Construction lending		—		—		—		—		—		56,382		56,382		—
Consumer lot lending		—		—		—		—		—		15,712		15,712		—
Commercial, financial and agricultural:
Commercial real estate lending		232		—		—		232		5,452		415,999		421,683		—
Land acquisition and development lending		—		—		—		—		—		38,121		38,121		—
Builder line lending		—		—		—		—		—		22,172		22,172		—
Commercial business lending		—		—		—		—		—		200,841		200,841		—
Equity lines		47		—		50		97		76		52,524		52,697		—
Consumer		—		57		—		57		489		15,176		15,722		—
Consumer finance		5,096		705		369		6,170		—		294,479		300,649		—
Total	$	5,912	$	1,047	$	1,299	$	8,258	$	7,831	$	1,312,901	$	1,328,990	$	291

For the purposes of the table above, “Current” includes loans that are 1-29 days past due.

The table above includes nonaccrual loans that are current of $649,000, 60-89 days past due of $19,000 and 90+ days past due of $1.04 million, as well as nonaccrual loans that are PCI of $427,000.

The past due status of loans as of December 31, 2019 was as follows:


															90+ Days
	30 - 59 Days		60 - 89 Days		90+ Days		Total								Past Due and
(Dollars in thousands)	Past Due		Past Due		Past Due		Past Due		PCI		Current¹		Total Loans		Accruing
Real estate – residential mortgage	$	1,428	$	161	$	1,016	$	2,605	$	107	$	178,583	$	181,295	$	—
Real estate – construction:
Construction lending		—		—		—		—		—		40,943		40,943		—
Consumer lot lending		—		—		—		—		—		13,303		13,303		—
Commercial, financial and agricultural:
Commercial real estate lending		—		—		—		—		563		325,991		326,554		—
Land acquisition and development lending		—		—		—		—		—		42,891		42,891		—
Builder line lending		—		—		—		—		—		26,373		26,373		—
Commercial business lending		73		18		—		91		—		104,903		104,994		—
Equity lines		229		56		223		508		35		51,540		52,083		109
Consumer		20		10		—		30		—		13,726		13,756		—
Consumer finance		11,034		1,420		611		13,065		—		299,934		312,999		—
Total	$	12,784	$	1,665	$	1,850	$	16,299	$	705	$	1,098,187	$	1,115,191	$	109

For the purposes of the table above, “Current” includes loans that are 1-29 days past due.

The table above includes nonaccrual loans that are current of $547,000, 30-59 days past due of $197,000, 60-89 days past due of $10,000 and 90+ days past due of $1.74 million.

Schedule of impaired loans

Impaired loans, which included TDRs of $3.79 million, and the related allowance at June 30, 2020 were as follows:

Recorded

Investment

Average

Unpaid

in Loans

Balance-

Interest

Principal

without

with

Related

Impaired

Income

(Dollars in thousands)

Balance

Specific Reserve

Allowance

Loans

Recognized

Real estate – residential mortgage

2,892

1,072

1,677

2,875

Commercial, financial and agricultural:

Commercial real estate lending

1,401

—

1,401

1,409

Equity lines

121

113

—

120

Consumer

126

—

114

107

115

—

Total

4,540

1,185

3,192

248

4,519

Impaired loans, which included TDRs of $4.35 million, and the related allowance at December 31, 2019 were as follows:



			Recorded		Recorded
			Investment		Investment				Average
	Unpaid		in Loans		in Loans				Balance-		Interest
	Principal		without		with		Related		Impaired		Income
(Dollars in thousands)	Balance		Specific Reserve		Specific Reserve		Allowance		Loans		Recognized
Real estate – residential mortgage	$	3,891	$	2,192	$	1,479	$	72	$	3,506	$	155
Commercial, financial and agricultural:
Commercial real estate lending		1,459		4		1,447		77		1,581		82
Equity lines		31		31		—		—		32		2
Consumer		130		—		121		118		123		—
Total	$	5,511	$	2,227	$	3,047	$	267	$	5,242	$	239