Quarterly report pursuant to Section 13 or 15(d)

LOANS

v3.3.0.814
LOANS
9 Months Ended
Sep. 30, 2015
Receivables [Abstract]  
LOANS
NOTE 6 – LOANS
 
The following table details the Company’s loans at September 30, 2015 and December 31, 2014:
 
 
 
September 30,
 
 
December 31,
 
 
 
2015
 
 
2014
 
 
 
(Dollars In Thousands)
 
Commercial, financial and agricultural
 
$
1,671,014
 
 
$
1,495,092
 
Real estate - construction
 
 
232,895
 
 
 
208,769
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
978,721
 
 
 
793,917
 
1-4 family mortgage
 
 
417,011
 
 
 
333,455
 
Other mortgage
 
 
677,822
 
 
 
471,363
 
Subtotal: Real estate - mortgage
 
 
2,073,554
 
 
 
1,598,735
 
Consumer
 
 
66,779
 
 
 
57,262
 
Total Loans
 
 
4,044,242
 
 
 
3,359,858
 
Less: Allowance for loan losses
 
 
(42,574)
 
 
 
(35,629)
 
Net Loans
 
$
4,001,668
 
 
$
3,324,229
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
 
41.32
%
 
 
44.50
%
Real estate - construction
 
 
5.76
%
 
 
6.21
%
Real estate - mortgage:
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
24.20
%
 
 
23.63
%
1-4 family mortgage
 
 
10.31
%
 
 
9.92
%
Other mortgage
 
 
16.76
%
 
 
14.03
%
Subtotal: Real estate - mortgage
 
 
51.27
%
 
 
47.58
%
Consumer
 
 
1.65
%
 
 
1.71
%
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, 2015 and December 31, 2014 were as follows:
 
 
 
 
 
Special
 
 
 
 
 
 
 
September 30, 2015
 
Pass
 
Mention
 
Substandard
 
Doubtful
 
Total
 
 
 
(In Thousands)
 
Commercial, financial and agricultural
 
$
1,601,109
 
$
55,877
 
$
14,028
 
$
-
 
$
1,671,014
 
Real estate - construction
 
 
222,200
 
 
6,051
 
 
4,644
 
 
-
 
 
232,895
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
951,547
 
 
19,307
 
 
7,867
 
 
-
 
 
978,721
 
1-4 family mortgage
 
 
410,247
 
 
3,984
 
 
2,780
 
 
-
 
 
417,011
 
Other mortgage
 
 
659,394
 
 
13,086
 
 
5,342
 
 
-
 
 
677,822
 
Total real estate mortgage
 
 
2,021,188
 
 
36,377
 
 
15,989
 
 
-
 
 
2,073,554
 
Consumer
 
 
66,702
 
 
44
 
 
33
 
 
-
 
 
66,779
 
Total
 
$
3,911,199
 
$
98,349
 
$
34,694
 
$
-
 
$
4,044,242
 
 
 
 
 
 
Special
 
 
 
 
 
 
 
December 31, 2014
 
Pass
 
Mention
 
       Substandard
 
Doubtful
 
Total
 
 
 
 
 
 
 
 
 
(In Thousands)  
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
$
1,459,356
 
$
25,416
 
$
10,320
 
$
-
 
$
1,495,092
 
Real estate - construction
 
 
197,727
 
 
5,332
 
 
5,710
 
 
-
 
 
208,769
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
784,492
 
 
6,848
 
 
2,577
 
 
-
 
 
793,917
 
1-4 family mortgage
 
 
326,316
 
 
4,253
 
 
2,886
 
 
-
 
 
333,455
 
Other mortgage
 
 
457,782
 
 
9,015
 
 
4,566
 
 
-
 
 
471,363
 
Total real estate mortgage
 
 
1,568,590
 
 
20,116
 
 
10,029
 
 
-
 
 
1,598,735
 
Consumer
 
 
56,559
 
 
37
 
 
666
 
 
-
 
 
57,262
 
Total
 
$
3,282,232
 
$
50,901
 
$
26,725
 
$
-
 
$
3,359,858
 
 
Loans by performance status as of September 30, 2015 and December 31, 2014 were as follows:
 
September 30, 2015
 
Performing
 
Nonperforming
 
Total
 
 
 
(In Thousands)
 
Commercial, financial and agricultural
 
$
1,666,626
 
$
4,388
 
$
1,671,014
 
Real estate - construction
 
 
228,895
 
 
4,000
 
 
232,895
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
978,600
 
 
121
 
 
978,721
 
1-4 family mortgage
 
 
416,184
 
 
827
 
 
417,011
 
Other mortgage
 
 
676,820
 
 
1,002
 
 
677,822
 
Total real estate mortgage
 
 
2,071,604
 
 
1,950
 
 
2,073,554
 
Consumer
 
 
66,743
 
 
36
 
 
66,779
 
Total
 
$
4,033,868
 
$
10,374
 
$
4,044,242
 
 
December 31, 2014
 
Performing
 
Nonperforming
 
Total
 
 
 
(In Thousands)
 
Commercial, financial and agricultural
 
$
1,493,995
 
$
1,097
 
$
1,495,092
 
Real estate - construction
 
 
203,720
 
 
5,049
 
 
208,769
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
793,234
 
 
683
 
 
793,917
 
1-4 family mortgage
 
 
331,859
 
 
1,596
 
 
333,455
 
Other mortgage
 
 
470,404
 
 
959
 
 
471,363
 
Total real estate mortgage
 
 
1,595,497
 
 
3,238
 
 
1,598,735
 
Consumer
 
 
56,596
 
 
666
 
 
57,262
 
Total
 
$
3,349,808
 
$
10,050
 
$
3,359,858
 
 
Loans by past due status as of September 30, 2015 and December 31, 2014 were as follows:
   
September 30, 2015
 
Past Due Status (Accruing Loans)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Past
 
 
 
 
 
 
 
 
 
30-59 Days
 
60-89 Days
 
90+ Days
 
Due
 
Non-Accrual
 
Current
 
Total Loans
 
 
 
(In Thousands)
 
Commercial, financial and agricultural
 
$
13
 
$
-
 
$
49
 
$
62
 
$
4,339
 
$
1,666,613
 
$
1,671,014
 
Real estate - construction
 
 
-
 
 
-
 
 
-
 
 
-
 
 
4,000
 
 
228,895
 
 
232,895
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
34
 
 
-
 
 
-
 
 
34
 
 
121
 
 
978,566
 
 
978,721
 
1-4 family mortgage
 
 
50
 
 
154
 
 
472
 
 
676
 
 
355
 
 
415,980
 
 
417,011
 
Other mortgage
 
 
1,401
 
 
-
 
 
-
 
 
1,401
 
 
1,002
 
 
675,419
 
 
677,822
 
Total real estate - mortgage
 
 
1,485
 
 
154
 
 
472
 
 
2,111
 
 
1,478
 
 
2,069,965
 
 
2,073,554
 
Consumer
 
 
17
 
 
-
 
 
3
 
 
20
 
 
33
 
 
66,726
 
 
66,779
 
Total
 
$
1,515
 
$
154
 
$
524
 
$
2,193
 
$
9,850
 
$
4,032,199
 
$
4,044,242
 
 
December 31, 2014
 
Past Due Status (Accruing Loans)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Past
 
 
 
 
 
 
 
 
 
30-59 Days
 
60-89 Days
 
90+ Days
 
Due
 
Non-Accrual
 
Current
 
Total Loans
 
 
 
(In Thousands)
 
Commercial, financial and agricultural
 
$
1,388
 
$
3,490
 
$
925
 
$
5,803
 
$
172
 
$
1,489,117
 
$
1,495,092
 
Real estate - construction
 
 
-
 
 
-
 
 
-
 
 
-
 
 
5,049
 
 
203,720
 
 
208,769
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
-
 
 
-
 
 
-
 
 
-
 
 
683
 
 
793,234
 
 
793,917
 
1-4 family mortgage
 
 
14
 
 
-
 
 
-
 
 
14
 
 
1,596
 
 
331,845
 
 
333,455
 
Other mortgage
 
 
-
 
 
-
 
 
-
 
 
-
 
 
959
 
 
470,404
 
 
471,363
 
Total real estate - mortgage
 
 
14
 
 
-
 
 
-
 
 
14
 
 
3,238
 
 
1,595,483
 
 
1,598,735
 
Consumer
 
 
21
 
 
-
 
 
-
 
 
21
 
 
666
 
 
56,575
 
 
57,262
 
Total
 
$
1,423
 
$
3,490
 
$
925
 
$
5,838
 
$
9,125
 
$
3,344,895
 
$
3,359,858
 
 
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 5 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 as of September 30, 2015 and December 31, 2014. 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
 
Real estate -
 
Real estate -
 
 
 
 
 
 
 
 
 
agricultural
 
construction
 
mortgage
 
Consumer
 
Total
 
 
 
(In Thousands)
 
 
 
Three Months Ended September 30, 2015
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2015
 
$
19,052
 
$
5,674
 
$
14,171
 
$
1,123
 
$
40,020
 
Charge-offs
 
 
(388)
 
 
(31)
 
 
-
 
 
(126)
 
 
(545)
 
Recoveries
 
 
13
 
 
13
 
 
1
 
 
-
 
 
27
 
Provision
 
 
2,020
 
 
(237)
 
 
1,767
 
 
(478)
 
 
3,072
 
Balance at September 30, 2015
 
$
20,697
 
$
5,419
 
$
15,939
 
$
519
 
$
42,574
 
 
 
 
Three Months Ended September 30, 2014
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2014
 
$
13,637
 
$
6,734
 
$
11,523
 
$
1,090
 
$
32,984
 
Charge-offs
 
 
(531)
 
 
(610)
 
 
(149)
 
 
(131)
 
 
(1,421)
 
Recoveries
 
 
-
 
 
97
 
 
14
 
 
20
 
 
131
 
Provision
 
 
1,364
 
 
461
 
 
905
 
 
18
 
 
2,748
 
Balance at September 30, 2014
 
$
14,470
 
$
6,682
 
$
12,293
 
$
997
 
$
34,442
 
 
 
 
Nine Months Ended September 30, 2015
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2014
 
$
16,079
 
$
6,395
 
$
12,112
 
$
1,043
 
$
35,629
 
Charge-offs
 
 
(1,616)
 
 
(506)
 
 
(641)
 
 
(150)
 
 
(2,913)
 
Recoveries
 
 
38
 
 
177
 
 
104
 
 
-
 
 
319
 
Provision
 
 
6,196
 
 
(647)
 
 
4,364
 
 
(374)
 
 
9,539
 
Balance at September 30, 2015
 
$
20,697
 
$
5,419
 
$
15,939
 
$
519
 
$
42,574
 
 
 
 
Nine Months Ended September 30, 2014
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2013
 
$
13,576
 
$
6,078
 
$
10,065
 
$
944
 
$
30,663
 
Charge-offs
 
 
(1,895)
 
 
(958)
 
 
(1,043)
 
 
(207)
 
 
(4,103)
 
Recoveries
 
 
46
 
 
285
 
 
28
 
 
23
 
 
382
 
Provision
 
 
2,743
 
 
1,277
 
 
3,243
 
 
237
 
 
7,500
 
Balance at September 30, 2014
 
$
14,470
 
$
6,682
 
$
12,293
 
$
997
 
$
34,442
 
 
 
 
As of September 30, 2015
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually Evaluated for Impairment
 
$
3,875
 
$
1,089
 
$
2,446
 
$
33
 
$
7,443
 
Collectively Evaluated for Impairment
 
 
16,822
 
 
4,330
 
 
13,493
 
 
486
 
 
35,131
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
1,671,014
 
$
232,895
 
$
2,073,554
 
$
66,779
 
$
4,044,242
 
Individually Evaluated for Impairment
 
 
14,049
 
 
4,697
 
 
18,632
 
 
51
 
 
37,429
 
Collectively Evaluated for Impairment
 
 
1,656,965
 
 
228,198
 
 
2,054,922
 
 
66,728
 
 
4,006,813
 
 
 
 
As of December 31, 2014
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually Evaluated for Impairment
 
$
1,344
 
$
1,448
 
$
1,636
 
$
666
 
$
5,094
 
Collectively Evaluated for Impairment
 
 
14,735
 
 
4,947
 
 
10,476
 
 
377
 
 
30,535
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
1,495,092
 
$
208,769
 
$
1,598,735
 
$
57,262
 
$
3,359,858
 
Individually Evaluated for Impairment
 
 
10,350
 
 
5,680
 
 
10,029
 
 
666
 
 
26,725
 
Collectively Evaluated for Impairment
 
 
1,484,742
 
 
203,089
 
 
1,588,706
 
 
56,596
 
 
3,333,133
 
 
The following table presents details of the Company’s impaired loans as of September 30, 2015 and December 31, 2014, respectively. Loans which have been fully charged off do not appear in the tables.
 
 
 
 
 
 
 
 
 
 
 
 
For the three months
 
For the nine months
 
 
 
 
 
 
 
 
 
 
 
 
ended September 30,
 
ended September 30,
 
 
 
September 30, 2015
 
2015
 
2015
 
 
 
 
 
 
 
 
 
 
 
Interest
 
 
 
Interest
 
 
 
 
 
Unpaid
 
 
 
Average
 
Income
 
Average
 
Income
 
 
 
Recorded
 
Principal
 
Related
 
Recorded
 
Recognized
 
Recorded
 
Recognized
 
 
 
Investment
 
Balance
 
Allowance
 
Investment
 
in Period
 
Investment
 
in Period
 
 
 
(In Thousands)
 
With no allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
$
1,133
 
$
1,142
 
$
-
 
$
1,135
 
$
5
 
$
1,181
 
$
13
 
Real estate - construction
 
 
806
 
 
809
 
 
-
 
 
910
 
 
9
 
 
1,094
 
 
26
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
4,137
 
 
4,294
 
 
-
 
 
4,177
 
 
58
 
 
3,908
 
 
183
 
1-4 family mortgage
 
 
1,377
 
 
1,553
 
 
-
 
 
1,385
 
 
26
 
 
1,385
 
 
71
 
Other mortgage
 
 
3,155
 
 
3,321
 
 
-
 
 
3,168
 
 
38
 
 
3,191
 
 
139
 
Total real estate - mortgage
 
 
8,669
 
 
9,168
 
 
-
 
 
8,730
 
 
122
 
 
8,484
 
 
393
 
Consumer
 
 
18
 
 
23
 
 
-
 
 
19
 
 
-
 
 
19
 
 
1
 
Total with no allowance recorded
 
 
10,626
 
 
11,142
 
 
-
 
 
10,794
 
 
136
 
 
10,778
 
 
433
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
 
12,916
 
 
13,001
 
 
3,875
 
 
13,728
 
 
122
 
 
14,079
 
 
554
 
Real estate - construction
 
 
3,891
 
 
4,371
 
 
1,089
 
 
3,914
 
 
-
 
 
4,249
 
 
-
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
6,373
 
 
6,373
 
 
1,336
 
 
8,645
 
 
140
 
 
11,167
 
 
475
 
1-4 family mortgage
 
 
1,402
 
 
1,403
 
 
415
 
 
1,406
 
 
15
 
 
1,397
 
 
46
 
Other mortgage
 
 
2,188
 
 
2,188
 
 
695
 
 
2,189
 
 
19
 
 
2,329
 
 
58
 
Total real estate - mortgage
 
 
9,963
 
 
9,964
 
 
2,446
 
 
12,240
 
 
174
 
 
14,893
 
 
579
 
Consumer
 
 
33
 
 
33
 
 
33
 
 
34
 
 
1
 
 
34
 
 
6
 
Total with allowance recorded
 
 
26,803
 
 
27,369
 
 
7,443
 
 
29,916
 
 
297
 
 
33,255
 
 
1,139
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Impaired Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
 
14,049
 
 
14,143
 
 
3,875
 
 
14,863
 
 
127
 
 
15,260
 
 
567
 
Real estate - construction
 
 
4,697
 
 
5,180
 
 
1,089
 
 
4,824
 
 
9
 
 
5,343
 
 
26
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
10,510
 
 
10,667
 
 
1,336
 
 
12,822
 
 
198
 
 
15,075
 
 
658
 
1-4 family mortgage
 
 
2,779
 
 
2,956
 
 
415
 
 
2,791
 
 
41
 
 
2,782
 
 
117
 
Other mortgage
 
 
5,343
 
 
5,509
 
 
695
 
 
5,357
 
 
57
 
 
5,520
 
 
197
 
Total real estate - mortgage
 
 
18,632
 
 
19,132
 
 
2,446
 
 
20,970
 
 
296
 
 
23,377
 
 
972
 
Consumer
 
 
51
 
 
56
 
 
33
 
 
53
 
 
1
 
 
53
 
 
7
 
Total impaired loans
 
$
37,429
 
$
38,511
 
$
7,443
 
$
40,710
 
$
433
 
$
44,033
 
$
1,572
 
 
December 31, 2014
 
 
 
 
 
Unpaid
 
 
 
Average
 
Interest Income
 
 
 
Recorded
 
Principal
 
Related
 
Recorded
 
Recognized in
 
 
 
Investment
 
Balance
 
Allowance
 
Investment
 
Period
 
 
 
(In Thousands)
 
With no allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
$
7,059
 
$
7,059
 
$
-
 
$
7,104
 
$
406
 
Real estate - construction
 
 
1,527
 
 
1,527
 
 
-
 
 
1,493
 
 
40
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
1,576
 
 
1,576
 
 
-
 
 
236
 
 
12
 
1-4 family mortgage
 
 
542
 
 
592
 
 
-
 
 
592
 
 
19
 
Other mortgage
 
 
1,944
 
 
1,944
 
 
-
 
 
2,283
 
 
142
 
Total real estate - mortgage
 
 
4,062
 
 
4,112
 
 
-
 
 
3,111
 
 
173
 
Consumer
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total with no allowance recorded
 
 
12,648
 
 
12,698
 
 
-
 
 
11,708
 
 
619
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
 
3,291
 
 
3,291
 
 
1,344
 
 
3,262
 
 
156
 
Real estate - construction
 
 
4,153
 
 
4,633
 
 
1,448
 
 
4,382
 
 
19
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
1,001
 
 
1,001
 
 
160
 
 
1,140
 
 
29
 
1-4 family mortgage
 
 
2,344
 
 
2,344
 
 
694
 
 
2,743
 
 
56
 
Other mortgage
 
 
2,622
 
 
2,622
 
 
782
 
 
2,767
 
 
84
 
Total real estate - mortgage
 
 
5,967
 
 
5,967
 
 
1,636
 
 
6,650
 
 
169
 
Consumer
 
 
666
 
 
666
 
 
666
 
 
681
 
 
-
 
Total with allowance recorded
 
 
14,077
 
 
14,557
 
 
5,094
 
 
14,975
 
 
344
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Impaired Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
 
10,350
 
 
10,350
 
 
1,344
 
 
10,366
 
 
562
 
Real estate - construction
 
 
5,680
 
 
6,160
 
 
1,448
 
 
5,875
 
 
59
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
2,577
 
 
2,577
 
 
160
 
 
1,376
 
 
41
 
1-4 family mortgage
 
 
2,886
 
 
2,936
 
 
694
 
 
3,335
 
 
75
 
Other mortgage
 
 
4,566
 
 
4,566
 
 
782
 
 
5,050
 
 
226
 
Total real estate - mortgage
 
 
10,029
 
 
10,079
 
 
1,636
 
 
9,761
 
 
342
 
Consumer
 
 
666
 
 
666
 
 
666
 
 
681
 
 
-
 
Total impaired loans
 
$
26,725
 
$
27,255
 
$
5,094
 
$
26,683
 
$
963
 
 
Troubled Debt Restructurings (“TDR”) at September 30, 2015, December 31, 2014 and September 30, 2014 totaled $8.3 million, $ 9.0 million and $7.9 million, respectively. At September 30, 2015, the Company had a related allowance for loan losses of $1.2 million allocated to these TDRs, compared to $1.0 million at December 31, 2014 and $1.9 million at September 30, 2014. There were no modifications made to new TDRs or renewals of existing TDRs for the three and nine months ended September 30, 2015. TDR activity by portfolio segment for the three and nine months ended September 30, 2014 is presented in the table below.
 
 
 
Three Months Ended September 30, 2014
 
Nine Months Ended September 30, 2014
 
 
 
 
 
Pre-
 
Post-
 
 
 
Pre-
 
Post-
 
 
 
 
 
Modification
 
Modification
 
 
 
Modification
 
Modification
 
 
 
 
 
Outstanding
 
Outstanding
 
 
 
Outstanding
 
Outstanding
 
 
 
Number of
 
Recorded
 
Recorded
 
Number of
 
Recorded
 
Recorded
 
 
 
Contracts
 
Investment
 
Investment
 
Contracts
 
Investment
 
Investment
 
 
 
(In Thousands)
 
Troubled Debt Restructurings
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
 
1
 
$
390
 
$
390
 
 
2
 
$
889
 
$
889
 
Real estate - construction
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
1-4 family mortgage
 
 
1
 
 
4,449
 
 
4,449
 
 
1
 
 
4,449
 
 
4,449
 
Other mortgage
 
 
1
 
 
275
 
 
275
 
 
2
 
 
1,684
 
 
1,684
 
Total real estate mortgage
 
 
2
 
 
4,724
 
 
4,724
 
 
3
 
 
6,133
 
 
6,133
 
Consumer
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
 
 
3
 
$
5,114
 
$
5,114
 
 
5
 
$
7,022
 
$
7,022
 
 
The following table presents TDRs by portfolio segment which defaulted during the three and nine months ended September 30, 2015 and 2014, 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.
 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
 
 
2015
 
2014
 
2015
 
2014
 
 
 
(In thousands)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Defaulted during the period, where modified in a TDR twelve months prior to default
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
$
-
 
$
-
 
$
-
 
$
-
 
Real estate - construction
 
 
-
 
 
-
 
 
-
 
 
-
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
-
 
 
-
 
 
-
 
 
-
 
1-4 family mortgage
 
 
-
 
 
4,313
 
 
-
 
 
4,313
 
Other mortgage
 
 
-
 
 
-
 
 
-
 
 
-
 
Total real estate mortgage
 
 
-
 
 
4,313
 
 
-
 
 
4,313
 
Consumer
 
 
-
 
 
-
 
 
-
 
 
-
 
 
 
$
-
 
$
4,313
 
$
-
 
$
4,313