Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Loans

v3.8.0.1
Note 5 - Loans
 9 Months Ended
Sep. 30, 2017
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
NOTE
5
– LOANS
 
The following table details the Company’s loans at
September 30, 2017
and
December 31, 2016:
 
    September 30,
2017		   December 31,
2016
    (Dollars In Thousands)
Commercial, financial and agricultural   $
2,223,910
     $
1,982,267
  
Real estate - construction    
467,838
      
335,085
  
Real estate - mortgage:                
Owner-occupied commercial    
1,323,383
      
1,171,719
  
1-4 family mortgage    
593,180
      
536,805
  
Other mortgage    
962,690
      
830,683
  
Subtotal: Real estate - mortgage    
2,879,253
      
2,539,207
  
Consumer    
57,764
      
55,211
  
Total Loans    
5,628,765
      
4,911,770
  
Less: Allowance for loan losses    
(58,459
 )    
(51,893
 )
Net Loans   $
5,570,306
     $
4,859,877
  
                 
                 
Commercial, financial and agricultural    
39.51
 %    
40.36
 %
Real estate - construction    
8.31
 %    
6.82
 %
Real estate - mortgage:                
Owner-occupied commercial    
23.51
 %    
23.86
 %
1-4 family mortgage    
10.54
 %    
10.93
 %
Other mortgage    
17.10
 %    
16.91
 %
Subtotal: Real estate - mortgage    
51.15
 %    
51.70
 %
Consumer    
1.03
 %    
1.12
 %
Total Loans    
100.00
 %    
100.00
 %
 
The credit quality of the loan portfolio is summarized
no
less frequently than quarterly using categories similar to the standard asset classification system used by the federal banking agencies. The following table presents credit quality indicators for the loan loss portfolio segments and classes. These categories are utilized to develop the associated allowance for loan losses using historical losses adjusted for current economic conditions defined as follows:
 
·
 Pass – loans which are well protected by the current net worth and paying capacity of the obligor (or obligors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral.
·
 Special Mention – loans with potential weakness that
may,
if
not
reversed or corrected, weaken the credit or inadequately protect the Company’s position at some future date. These loans are
not
adversely classified and do
not
expose an institution to sufficient risk to warrant an adverse classification.
·
 Substandard – loans that exhibit well-defined weakness or weaknesses that currently jeopardize debt repayment. These loans are characterized by the distinct possibility that the institution will sustain some loss if the weaknesses are
not
corrected.
·
 Doubtful – loans that have all the weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable.
 
Loans by credit quality indicator as of
September 30, 2017
and
December 31, 2016
were as follows:
 
September 30, 2017
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
 
 
(In Thousands)
Commercial, financial and agricultural
 
$
2,144,426
 
 
$
49,079
 
 
$
30,405
 
 
$
-
 
 
$
2,223,910
 
Real estate - construction
 
 
457,188
 
 
 
7,367
 
 
 
3,283
 
 
 
-
 
 
 
467,838
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
1,305,408
 
 
 
11,814
 
 
 
6,161
 
 
 
-
 
 
 
1,323,383
 
1-4 family mortgage
 
 
587,451
 
 
 
1,492
 
 
 
4,237
 
 
 
-
 
 
 
593,180
 
Other mortgage
 
 
945,548
 
 
 
14,118
 
 
 
3,024
 
 
 
-
 
 
 
962,690
 
Total real estate mortgage
 
 
2,838,407
 
 
 
27,424
 
 
 
13,422
 
 
 
-
 
 
 
2,879,253
 
Consumer
 
 
57,672
 
 
 
4
 
 
 
88
 
 
 
-
 
 
 
57,764
 
Total
 
$
5,497,693
 
 
$
83,874
 
 
$
47,198
 
 
$
-
 
 
$
5,628,765
 
 
December 31, 2016
 
Pass
 
Special
Mention
 
Substandard
 
Doubtful
 
Total
 
 
(In Thousands)
Commercial, financial and agricultural
 
$
1,893,664
 
 
$
61,035
 
 
$
27,568
 
 
$
-
 
 
$
1,982,267
 
Real estate - construction
 
 
324,958
 
 
 
5,861
 
 
 
4,266
 
 
 
-
 
 
 
335,085
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
1,158,615
 
 
 
6,037
 
 
 
7,067
 
 
 
-
 
 
 
1,171,719
 
1-4 family mortgage
 
 
531,868
 
 
 
2,065
 
 
 
2,872
 
 
 
-
 
 
 
536,805
 
Other mortgage
 
 
818,724
 
 
 
11,224
 
 
 
735
 
 
 
-
 
 
 
830,683
 
Total real estate mortgage
 
 
2,509,207
 
 
 
19,326
 
 
 
10,674
 
 
 
-
 
 
 
2,539,207
 
Consumer
 
 
55,135
 
 
 
76
 
 
 
-
 
 
 
-
 
 
 
55,211
 
Total
 
$
4,782,964
 
 
$
86,298
 
 
$
42,508
 
 
$
-
 
 
$
4,911,770
 
 
Loans by performance status as of
September 30, 2017
and
December 31, 2016
were as follows:
 
September 30, 2017   Performing   Nonperforming   Total
             
    (In Thousands)
Commercial, financial and agricultural   $
2,216,004
     $
7,906
     $
2,223,910
  
Real estate - construction    
465,553
      
2,285
      
467,838
  
Real estate - mortgage:                        
Owner-occupied commercial    
1,320,886
      
2,497
      
1,323,383
  
1-4 family mortgage    
591,544
      
1,636
      
593,180
  
Other mortgage    
962,260
      
430
      
962,690
  
Total real estate mortgage    
2,874,690
      
4,563
      
2,879,253
  
Consumer    
57,656
      
108
      
57,764
  
Total   $
5,613,903
     $
14,862
     $
5,628,765
  
 
December 31, 2016   Performing   Nonperforming   Total
             
    (In Thousands)
Commercial, financial and agricultural   $
1,974,975
     $
7,292
     $
1,982,267
  
Real estate - construction    
331,817
      
3,268
      
335,085
  
Real estate - mortgage:                        
Owner-occupied commercial    
1,165,511
      
6,208
      
1,171,719
  
1-4 family mortgage    
536,731
      
74
      
536,805
  
Other mortgage    
830,683
      
-
      
830,683
  
Total real estate mortgage    
2,532,925
      
6,282
      
2,539,207
  
Consumer    
55,166
      
45
      
55,211
  
Total   $
4,894,883
     $
16,887
     $
4,911,770
  
 
Loans by past due status as of
September 30, 2017
and
December 31, 2016
were as follows:
 
September 30, 2017   Past Due Status (Accruing Loans)            
    30-59 Days   60-89 Days   90+ Days   Total Past
Due		   Non-Accrual   Current   Total Loans
                             
    (In Thousands)
Commercial, financial and agricultural   $
5,317
     $
12,081
     $
2,108
     $
19,506
     $
5,798
     $
2,198,606
     $
2,223,910
  
Real estate - construction    
997
      
618
      
-
      
1,615
      
2,285
      
463,938
      
467,838
  
Real estate - mortgage:                                                        
Owner-occupied commercial    
310
      
3,354
      
-
      
3,664
      
2,497
      
1,317,222
      
1,323,383
  
1-4 family mortgage    
1,132
      
295
      
328
      
1,755
      
1,308
      
590,117
      
593,180
  
Other mortgage    
-
      
-
      
-
      
-
      
430
      
962,260
      
962,690
  
Total real estate - mortgage    
1,442
      
3,649
      
328
      
5,419
      
4,235
      
2,869,599
      
2,879,253
  
Consumer    
102
      
13
      
70
      
185
      
38
      
57,541
      
57,764
  
Total   $
7,858
     $
16,361
     $
2,506
     $
26,725
     $
12,356
     $
5,589,684
     $
5,628,765
  
 
December 31, 2016   Past Due Status (Accruing Loans)            
    30-59 Days   60-89 Days   90+ Days   Total Past
Due		   Non-Accrual   Current   Total Loans
                             
    (In Thousands)
Commercial, financial and agricultural   $
710
     $
40
     $
10
     $
760
     $
7,282
     $
1,974,225
     $
1,982,267
  
Real estate - construction    
59
      
-
      
-
      
59
      
3,268
      
331,758
      
335,085
  
Real estate - mortgage:                                                        
Owner-occupied commercial    
-
      
-
      
6,208
      
6,208
      
-
      
1,165,511
      
1,171,719
  
1-4 family mortgage    
160
      
129
      
-
      
289
      
74
      
536,442
      
536,805
  
Other mortgage    
95
      
811
      
-
      
906
      
-
      
829,777
      
830,683
  
Total real estate - mortgage    
255
      
940
      
6,208
      
7,403
      
74
      
2,531,730
      
2,539,207
  
Consumer    
52
      
17
      
45
      
114
      
-
      
55,097
      
55,211
  
Total   $
1,076
     $
997
     $
6,263
     $
8,336
     $
10,624
     $
4,892,810
     $
4,911,770
  
 
The allowance for loan losses is maintained at a level which, in management’s judgment, is adequate to absorb credit losses inherent in the loan portfolio. The amount of the allowance is based on management’s evaluation of the collectability of the loan portfolio, including the nature of the portfolio, credit concentrations, trends in historical loss experience, specific impaired loans, economic conditions and other risks inherent in the portfolio. Allowances for impaired loans are generally determined based on collateral values or the present value of the estimated cash flows. The allowance is increased by a provision for loan losses, which is charged to expense, and reduced by charge-offs, net of recoveries. In addition, various regulatory agencies, as an integral part of their examination process, periodically review the allowance for losses on loans. Such agencies
may
require the Company to recognize adjustments to the allowance based on their judgments about information available to them at the time of their examination.
 
The methodology utilized for the calculation of the allowance for loan losses is divided into
four
distinct categories. Those categories include allowances for non-impaired loans (ASC
450
), impaired loans (ASC
310
), external qualitative factors, and internal qualitative factors. A description of each category of the allowance for loan loss methodology is listed below.
 
Non-Impaired Loans.
Non-impaired loans are grouped into homogeneous loan pools by loan type and are the following: commercial and industrial, construction and development, commercial real estate,
second
lien home equity lines of credit, and all other loans. Each loan pool is stratified by internal risk rating and multiplied by a loss allocation percentage derived from the loan pool historical loss rate. The historical loss rate is based on an age weighted
five
year history of net charge-offs experienced by pool, with the most recent net charge-off experience given a greater weighting. This results in the expected loss rate per year, adjusted by a qualitative adjustment factor and a years-to-impairment factor, for each pool of loans to derive the total amount of allowance for non-impaired loans.
 
Impaired Loans.
Loans are considered impaired when, based on current information and events, it is probable that the Bank will be unable to collect all amounts due according to the original terms of the loan agreement. The collection of all amounts due according to contractual terms means that both the contractual interest and principal payments of a loan will be collected as scheduled in the loan agreement. Impaired loans are measured based on the present value of expected future cash flows discounted at the loan’s effective interest rate, at the loan’s observable market price or the fair value of the underlying collateral. The fair value of collateral, reduced by costs to sell on a discounted basis, is used if a loan is collateral-dependent. Fair value estimates for specifically impaired collateral-dependent loans are derived from appraised values based on the current market value or “as is” value of the property, normally from recently received and reviewed appraisals. Appraisals are obtained from certified and licensed appraisers and are based on certain assumptions, which
may
include construction or development status and the highest and best use of the property.
 
These appraisals are reviewed by our credit administration department, and values are adjusted downward to reflect anticipated disposition costs. Once this estimated net realizable value has been determined, the value used in the impairment assessment is updated for each impaired loan. As subsequent events dictate and estimated net realizable values decline, required reserves
may
be established or further adjustments recorded.
 
External Qualitative Factors
. The determination of the portion of the allowance for loan losses relating to external qualitative factors is based on consideration of the following factors: gross domestic product growth rate, changes in prime rate, delinquency trends, peer delinquency trends, year-over-year loan growth and state unemployment rate trends. Data for the
three
most recent periods is utilized in the calculation for each external qualitative component. The factors have a consistent weighted methodology to calculate the amount of allowance due to external qualitative factors.
 
Internal Qualitative Factors
. The determination of the portion of the allowance for loan losses relating to internal qualitative factors is based on the consideration of criteria which includes the following: number of extensions and deferrals, single pay and interest only loans, current financial information, credit concentrations and risk grade accuracy. A self-assessment for each of the criteria is made with a consistent weighted methodology used to calculate the amount of allowance required for internal qualitative factors.
 
The following table presents an analysis of the allowance for loan losses by portfolio segment and changes in the allowance for loan losses for the
three
and
nine
months ended
September 30, 2017
and
September 30, 2016.
The total allowance for loan losses is disaggregated into those amounts associated with loans individually evaluated and those associated with loans collectively evaluated.
 
 
 
Commercial
financial and
agricultural
 
Real estate -
construction
 
Real estate -
mortgage
 
Consumer
 
Total
 
 
 
 
 
(In Thousands)
 
 
Three Months Ended September 30, 2017
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2017
 
$
29,127
 
 
$
5,138
 
 
$
20,392
 
 
$
402
 
 
$
55,059
 
Charge-offs
 
 
(924
)
 
 
(16
)
 
 
(550
)
 
 
(65
)
 
 
(1,555
)
Recoveries
 
 
67
 
 
 
12
 
 
 
59
 
 
 
14
 
 
 
152
 
Provision
 
 
3,431
 
 
 
197
 
 
 
1,065
 
 
 
110
 
 
 
4,803
 
Balance at September 30, 2017
 
$
31,701
 
 
$
5,331
 
 
$
20,966
 
 
$
461
 
 
$
58,459
 
 
 
 
 
 
Three Months Ended September 30, 2016
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2016
 
$
23,655
 
 
$
5,279
 
 
$
17,600
 
 
$
464
 
 
$
46,998
 
Charge-offs
 
 
(1,270
)
 
 
(79
)
 
 
(144
)
 
 
(81
)
 
 
(1,574
)
Recoveries
 
 
35
 
 
 
9
 
 
 
1
 
 
 
-
 
 
 
45
 
Provision
 
 
3,560
 
 
 
(394
)
 
 
282
 
 
 
16
 
 
 
3,464
 
Balance at September 30, 2016
 
$
25,980
 
 
$
4,815
 
 
$
17,739
 
 
$
399
 
 
$
48,933
 
 
 
 
 
 
Nine Months Ended September 30, 2017
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2016
 
$
28,872
 
 
$
5,125
 
 
$
17,504
 
 
$
392
 
 
$
51,893
 
Charge-offs
 
 
(6,846
)
 
 
(56
)
 
 
(922
)
 
 
(173
)
 
 
(7,997
)
Recoveries
 
 
273
 
 
 
42
 
 
 
62
 
 
 
16
 
 
 
393
 
Provision
 
 
9,402
 
 
 
220
 
 
 
4,322
 
 
 
226
 
 
 
14,170
 
Balance at September 30, 2017
 
$
31,701
 
 
$
5,331
 
 
$
20,966
 
 
$
461
 
 
$
58,459
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine Months Ended September 30, 2016
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2015
 
$
21,495
 
 
$
5,432
 
 
$
16,061
 
 
$
431
 
 
$
43,419
 
Charge-offs
 
 
(2,732
)
 
 
(815
)
 
 
(335
)
 
 
(130
)
 
 
(4,012
)
Recoveries
 
 
39
 
 
 
64
 
 
 
100
 
 
 
-
 
 
 
203
 
Provision
 
 
7,178
 
 
 
134
 
 
 
1,913
 
 
 
98
 
 
 
9,323
 
Balance at September 30, 2016
 
$
25,980
 
 
$
4,815
 
 
$
17,739
 
 
$
399
 
 
$
48,933
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
As of September 30, 2017
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually Evaluated for Impairment
 
$
5,725
 
 
$
829
 
 
$
1,892
 
 
$
50
 
 
$
8,496
 
Collectively Evaluated for Impairment
 
 
25,976
 
 
 
4,502
 
 
 
19,074
 
 
 
411
 
 
 
49,963
 
                                         
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
2,223,910
 
 
$
467,838
 
 
$
2,879,253
 
 
$
57,764
 
 
$
5,628,765
 
Individually Evaluated for Impairment
 
 
30,405
 
 
 
3,328
 
 
 
15,789
 
 
 
88
 
 
 
49,610
 
Collectively Evaluated for Impairment
 
 
2,193,505
 
 
 
464,510
 
 
 
2,863,464
 
 
 
57,676
 
 
 
5,579,155
 
 
 
 
 
 
As of December 31, 2016
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually Evaluated for Impairment
 
$
6,607
 
 
$
923
 
 
$
622
 
 
$
-
 
 
$
8,152
 
Collectively Evaluated for Impairment
 
 
22,265
 
 
 
4,202
 
 
 
16,882
 
 
 
392
 
 
 
43,741
 
                                         
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
1,982,267
 
 
$
335,085
 
 
$
2,539,207
 
 
$
55,211
 
 
$
4,911,770
 
Individually Evaluated for Impairment
 
 
27,922
 
 
 
4,314
 
 
 
13,350
 
 
 
3
 
 
 
45,589
 
Collectively Evaluated for Impairment
 
 
1,954,345
 
 
 
330,771
 
 
 
2,525,857
 
 
 
55,208
 
 
 
4,866,181
 
 
The following table presents details of the Company’s impaired loans as of
September 30, 2017
and
December 31, 2016,
respectively. Loans which have been fully charged off do
not
appear in the tables.
 
    September 30, 2017   For the three months
ended September 30,
2017		   For the nine months
ended September 30,
2017
    Recorded
Investment		   Unpaid
Principal
Balance		   Related
Allowance
   Average
Recorded
Investment		   Interest
Income
Recognized
in Period
   Average
Recorded
Investment		   Interest
Income
Recognized
in Period
                             
    (In Thousands)
With no allowance recorded:                                                        
Commercial, financial and agricultural   $
4,671
     $
4,671
     $
-
     $
4,770
     $
52
     $
4,998
     $
164
  
Real estate - construction    
45
      
48
      
-
      
48
      
1
      
49
      
2
  
Real estate - mortgage:                                                        
Owner-occupied commercial    
2,366
      
2,532
      
-
      
2,551
      
37
      
2,584
      
113
  
1-4 family mortgage    
1,752
      
1,752
      
-
      
1,756
      
22
      
1,781
      
67
  
Other mortgage    
732
      
732
      
-
      
732
      
10
      
733
      
32
  
Total real estate - mortgage    
4,850
      
5,016
      
-
      
5,039
      
69
      
5,098
      
212
  
Consumer    
38
      
40
      
-
      
41
      
1
      
42
      
2
  
Total with no allowance recorded    
9,604
      
9,775
      
-
      
9,898
      
123
      
10,187
      
380
  
                                                         
With an allowance recorded:                                                        
Commercial, financial and agricultural    
25,734
      
27,719
      
5,725
      
26,129
      
256
      
27,021
      
800
  
Real estate - construction    
3,283
      
3,283
      
829
      
3,357
      
14
      
3,369
      
42
  
Real estate - mortgage:                                                        
Owner-occupied commercial    
8,024
      
8,024
      
1,512
      
8,024
      
75
      
7,873
      
217
  
1-4 family mortgage    
2,485
      
2,485
      
328
      
2,485
      
10
      
2,506
      
56
  
Other mortgage    
430
      
980
      
52
      
974
      
(4
 )    
984
      
21
  
Total real estate - mortgage    
10,939
      
11,489
      
1,892
      
11,483
      
81
      
11,363
      
294
  
Consumer    
50
      
50
      
50
      
50
      
1
      
39
      
2
  
Total with allowance recorded    
40,006
      
42,541
      
8,496
      
41,019
      
352
      
41,792
      
1,138
  
                                                         
Total Impaired Loans:                                                        
Commercial, financial and agricultural    
30,405
      
32,390
      
5,725
      
30,899
      
308
      
32,019
      
964
  
Real estate - construction    
3,328
      
3,331
      
829
      
3,405
      
15
      
3,418
      
44
  
Real estate - mortgage:                                                        
Owner-occupied commercial    
10,390
      
10,556
      
1,512
      
10,575
      
112
      
10,457
      
330
  
1-4 family mortgage    
4,237
      
4,237
      
328
      
4,241
      
32
      
4,287
      
123
  
Other mortgage    
1,162
      
1,712
      
52
      
1,706
      
6
      
1,717
      
53
  
Total real estate - mortgage    
15,789
      
16,505
      
1,892
      
16,522
      
150
      
16,461
      
506
  
Consumer    
88
      
90
      
50
      
91
      
2
      
81
      
4
  
Total impaired loans   $
49,610
     $
52,316
     $
8,496
     $
50,917
     $
475
     $
51,979
     $
1,518
  
 
  
    December 31, 2016   For the twelve months
ended December 31, 2016
    Recorded
Investment
   Unpaid
Principal
Balance		   Related
Allowance
   Average
Recorded
Investment
   Interest Income
Recognized in
Period
                     
    (In Thousands)
With no allowance recorded:                                        
Commercial, financial and agricultural   $
1,003
     $
1,003
     $
-
     $
992
     $
64
  
Real estate - construction    
938
      
1,802
      
-
      
1,159
      
3
  
Real estate - mortgage:                                        
Owner-occupied commercial    
2,615
      
2,778
      
-
      
2,884
      
166
  
1-4 family mortgage    
1,899
      
1,899
      
-
      
1,901
      
102
  
Other mortgage    
940
      
940
      
-
      
965
      
60
  
Total real estate - mortgage    
5,454
      
5,617
      
-
      
5,750
      
328
  
Consumer    
3
      
5
      
-
      
6
      
-
  
Total with no allowance recorded    
7,398
      
8,427
      
-
      
7,907
      
395
  
                                         
With an allowance recorded:                                        
Commercial, financial and agricultural    
26,919
      
31,728
      
6,607
      
26,955
      
1,162
  
Real estate - construction    
3,376
      
3,376
      
923
      
3,577
      
68
  
Real estate - mortgage:                                        
Owner-occupied commercial    
6,924
      
6,924
      
348
      
6,934
      
362
  
1-4 family mortgage    
972
      
972
      
274
      
313
      
19
  
Other mortgage    
-
      
-
      
-
      
-
      
-
  
Total real estate - mortgage    
7,896
      
7,896
      
622
      
7,247
      
381
  
Consumer    
-
      
-
      
-
      
-
      
-
  
Total with allowance recorded    
38,191
      
43,000
      
8,152
      
37,779
      
1,611
  
                                         
Total Impaired Loans:                                        
Commercial, financial and agricultural    
27,922
      
32,731
      
6,607
      
27,947
      
1,226
  
Real estate - construction    
4,314
      
5,178
      
923
      
4,736
      
71
  
Real estate - mortgage:                                        
Owner-occupied commercial    
9,539
      
9,702
      
348
      
9,818
      
528
  
1-4 family mortgage    
2,871
      
2,871
      
274
      
2,214
      
121
  
Other mortgage    
940
      
940
      
-
      
965
      
60
  
Total real estate - mortgage    
13,350
      
13,513
      
622
      
12,997
      
709
  
Consumer    
3
      
5
      
-
      
6
      
-
  
Total impaired loans   $
45,589
     $
51,427
     $
8,152
     $
45,686
     $
2,006
  
 
Troubled Debt Restructurings (“TDR”) at
September 30, 2017,
December 31, 2016
and
September 30, 2016
totaled
$16.4
million,
$7.3
million and
$6.7
million, respectively. At
September 30, 2017,
the Company had a related allowance for loan losses of
$4.0
million allocated to these TDRs, compared to
$2.3
million at
December 31, 2016
and
$1.7
million at
September 30, 2016.
TDR activity by portfolio segment for the
three
and
nine
months ended
September 30, 2017
is presented in the table below.
 
    Three Months Ended September 30, 2017   Nine Months Ended September 30, 2017
    Number of
Contracts		   Pre-
Modification
Outstanding
Recorded
Investment		   Post-
Modification

Outstanding
Recorded
Investment		   Number of
Contracts		   Pre-
Modification
Outstanding
Recorded
Investment		   Post-
Modification
Outstanding
Recorded
Investment
    (In Thousands)
Troubled Debt Restructurings                                                
Commercial, financial and agricultural    
-
     $
-
     $
-
      
5
     $
7,205
     $
7,205
  
Real estate - construction    
-
      
-
      
-
      
1
      
997
      
997
  
Real estate - mortgage:                                                
Owner-occupied commercial    
-
      
-
      
-
      
2
      
3,664
      
3,664
  
1-4 family mortgage    
-
      
-
      
-
      
1
      
850
      
850
  
Other mortgage    
-
      
-
      
-
      
-
      
-
      
-
  
Total real estate mortgage    
-
      
-
      
-
      
3
      
4,514
      
4,514
  
Consumer    
-
      
-
      
-
      
-
      
-
      
-
  
     
-
     $
-
     $
-
      
9
     $
12,716
     $
12,716
  
 
    Three Months Ended September 30, 2016   Nine Months Ended September 30, 2016
    Number of
Contracts		   Pre-
Modification
Outstanding
Recorded
Investment		   Post-
Modification

Outstanding
Recorded
Investment
   Number of
Contracts		   Pre-
Modification
Outstanding
Recorded
Investment		   Post-
Modification
Outstanding
Recorded
Investment
    (In Thousands)
Troubled Debt Restructurings                                                
Commercial, financial and agricultural    
-
     $
-
     $
-
      
1
     $
366
     $
366
  
Real estate - construction    
-
      
-
      
-
      
-
      
-
      
-
  
Real estate - mortgage:                                                
Owner-occupied commercial    
-
      
-
      
-
      
-
      
-
      
-
  
1-4 family mortgage    
-
      
-
      
-
      
-
      
-
      
-
  
Other mortgage    
-
      
-
      
-
      
1
      
234
      
234
  
Total real estate mortgage    
-
      
-
      
-
      
1
      
234
      
234
  
Consumer    
-
      
-
      
-
      
-
      
-
      
-
  
     
-
     $
-
     $
-
      
2
     $
600
     $
600
  
 
There were
no
TDRs which defaulted during the
three
and
nine
months ended
September 30, 2017
and
2016,
and which were modified in the previous
twelve
months (i.e., the
twelve
months prior to default). For purposes of this disclosure, default is defined as
90
days past due and still accruing or placement on nonaccrual status. As of
September 30, 2017,
the Company’s TDRs have all resulted from term extensions, rather than from interest rate reductions or debt forgiveness.