Quarterly report pursuant to Section 13 or 15(d)

LOANS

v3.5.0.2
LOANS
9 Months Ended
Sep. 30, 2016
Receivables [Abstract]  
LOANS
NOTE 5 – LOANS
 
The following table details the Company’s loans at September 30, 2016 and December 31, 2015:
 
 
 
September 30,
 
 
December 31,
 
 
 
2016
 
 
2015
 
 
 
(Dollars In Thousands)
 
Commercial, financial and agricultural
 
$
1,910,777
 
 
$
1,760,479
 
Real estate - construction
 
 
292,721
 
 
 
243,267
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
1,138,308
 
 
 
1,014,669
 
1-4 family mortgage
 
 
520,394
 
 
 
444,134
 
Other mortgage
 
 
740,127
 
 
 
698,779
 
Subtotal: Real estate - mortgage
 
 
2,398,829
 
 
 
2,157,582
 
Consumer
 
 
54,957
 
 
 
55,047
 
Total Loans
 
 
4,657,284
 
 
 
4,216,375
 
Less: Allowance for loan losses
 
 
(48,933)
 
 
 
(43,419)
 
Net Loans
 
$
4,608,351
 
 
$
4,172,956
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
 
41.03
%
 
 
41.75
%
Real estate - construction
 
 
6.29
%
 
 
5.77
%
Real estate - mortgage:
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
24.44
%
 
 
24.07
%
1-4 family mortgage
 
 
11.17
%
 
 
10.53
%
Other mortgage
 
 
15.89
%
 
 
16.57
%
Subtotal: Real estate - mortgage
 
 
51.50
%
 
 
51.17
%
Consumer
 
 
1.18
%
 
 
1.31
%
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, 2016 and December 31, 2015 were as follows:
 
 
 
 
 
 
Special
 
 
 
 
 
 
 
September 30, 2016
 
Pass
 
Mention
 
Substandard
 
Doubtful
 
Total
 
 
 
(In Thousands)
 
Commercial, financial and agricultural
 
$
1,823,652
 
$
52,635
 
$
34,490
 
$
-
 
$
1,910,777
 
Real estate - construction
 
 
281,586
 
 
1,309
 
 
9,826
 
 
-
 
 
292,721
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
1,119,043
 
 
3,339
 
 
15,926
 
 
-
 
 
1,138,308
 
1-4 family mortgage
 
 
514,979
 
 
946
 
 
4,469
 
 
-
 
 
520,394
 
Other mortgage
 
 
725,983
 
 
2,852
 
 
11,292
 
 
-
 
 
740,127
 
Total real estate mortgage
 
 
2,360,005
 
 
7,137
 
 
31,687
 
 
-
 
 
2,398,829
 
Consumer
 
 
54,746
 
 
211
 
 
-
 
 
-
 
 
54,957
 
Total
 
$
4,519,989
 
$
61,292
 
$
76,003
 
$
-
 
$
4,657,284
 
 
 
 
 
 
 
Special
 
 
 
 
 
 
 
December 31, 2015
 
Pass
 
Mention
 
Substandard
 
Doubtful
 
Total
 
 
 
(In Thousands)
 
Commercial, financial and agricultural
 
$
1,701,591
 
$
47,393
 
$
11,495
 
$
-
 
$
1,760,479
 
Real estate - construction
 
 
233,046
 
 
6,221
 
 
4,000
 
 
-
 
 
243,267
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
988,762
 
 
18,169
 
 
7,738
 
 
-
 
 
1,014,669
 
1-4 family mortgage
 
 
437,834
 
 
3,301
 
 
2,999
 
 
-
 
 
444,134
 
Other mortgage
 
 
683,157
 
 
11,086
 
 
4,536
 
 
-
 
 
698,779
 
Total real estate mortgage
 
 
2,109,753
 
 
32,556
 
 
15,273
 
 
-
 
 
2,157,582
 
Consumer
 
 
54,973
 
 
42
 
 
32
 
 
-
 
 
55,047
 
Total
 
$
4,099,363
 
$
86,212
 
$
30,800
 
$
-
 
$
4,216,375
 
 
Loans by performance status as of September 30, 2016 and December 31, 2015 were as follows:
 
September 30, 2016
 
Performing
 
Nonperforming
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands)
 
Commercial, financial and agricultural
 
$
1,909,606
 
$
1,171
 
$
1,910,777
 
Real estate - construction
 
 
289,345
 
 
3,376
 
 
292,721
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
1,136,869
 
 
1,439
 
 
1,138,308
 
1-4 family mortgage
 
 
520,139
 
 
255
 
 
520,394
 
Other mortgage
 
 
739,719
 
 
408
 
 
740,127
 
Total real estate mortgage
 
 
2,396,727
 
 
2,102
 
 
2,398,829
 
Consumer
 
 
54,916
 
 
41
 
 
54,957
 
Total
 
$
4,650,594
 
$
6,690
 
$
4,657,284
 
 
December 31, 2015
 
Performing
 
Nonperforming
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(In Thousands)
 
Commercial, financial and agricultural
 
$
1,758,561
 
$
1,918
 
$
1,760,479
 
Real estate - construction
 
 
239,267
 
 
4,000
 
 
243,267
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
1,014,669
 
 
-
 
 
1,014,669
 
1-4 family mortgage
 
 
443,936
 
 
198
 
 
444,134
 
Other mortgage
 
 
697,160
 
 
1,619
 
 
698,779
 
Total real estate mortgage
 
 
2,155,765
 
 
1,817
 
 
2,157,582
 
Consumer
 
 
55,015
 
 
32
 
 
55,047
 
Total
 
$
4,208,608
 
$
7,767
 
$
4,216,375
 
 
Total past due loans were $33 million as of September 30, 2016, an increase of $32.4 million compared to $0.6 million as of December 31, 2015.  These past due loans are primarily long-term secured credit relationships.  Management anticipates repayment of these loans in an ordinary, customary manner. Loans by past due status as of September 30, 2016 and December 31, 2015 were as follows:
 
September 30, 2016
 
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
 
$
8,108
 
$
24
 
$
2
 
$
8,134
 
$
1,169
 
$
1,901,474
 
$
1,910,777
 
Real estate - construction
 
 
5,570
 
 
-
 
 
-
 
 
5,570
 
 
3,376
 
 
283,775
 
 
292,721
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
3,058
 
 
6,208
 
 
-
 
 
9,266
 
 
1,439
 
 
1,127,603
 
 
1,138,308
 
1-4 family mortgage
 
 
301
 
 
-
 
 
-
 
 
301
 
 
255
 
 
519,838
 
 
520,394
 
Other mortgage
 
 
9,598
 
 
-
 
 
-
 
 
9,598
 
 
408
 
 
730,121
 
 
740,127
 
Total real estate - mortgage
 
 
12,957
 
 
6,208
 
 
-
 
 
19,165
 
 
2,102
 
 
2,377,562
 
 
2,398,829
 
Consumer
 
 
36
 
 
26
 
 
41
 
 
103
 
 
-
 
 
54,854
 
 
54,957
 
Total
 
$
26,671
 
$
6,258
 
$
43
 
$
32,972
 
$
6,647
 
$
4,617,665
 
$
4,657,284
 
 
December 31, 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
 
$
50
 
$
35
 
$
-
 
$
85
 
$
1,918
 
$
1,758,476
 
$
1,760,479
 
Real estate - construction
 
 
198
 
 
12
 
 
-
 
 
210
 
 
4,000
 
 
239,057
 
 
243,267
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
1,014,669
 
 
1,014,669
 
1-4 family mortgage
 
 
-
 
 
210
 
 
-
 
 
210
 
 
198
 
 
443,726
 
 
444,134
 
Other mortgage
 
 
-
 
 
-
 
 
-
 
 
-
 
 
1,619
 
 
697,160
 
 
698,779
 
Total real estate - mortgage
 
 
-
 
 
210
 
 
-
 
 
210
 
 
1,817
 
 
2,155,555
 
 
2,157,582
 
Consumer
 
 
45
 
 
6
 
 
1
 
 
52
 
 
31
 
 
54,964
 
 
55,047
 
Total
 
$
293
 
$
263
 
$
1
 
$
557
 
$
7,766
 
$
4,208,052
 
$
4,216,375
 
 
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 and changes in the allowance for loan losses for the three and nine months ended September 30, 2016 and September 30, 2015. 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, 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
 
 
 
 
 
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
 
 
 
 
 
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
 
 
 
 
 
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
 
 
 
 
 
As of September 30, 2016
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually Evaluated for Impairment
 
$
5,120
 
$
940
 
$
1,880
 
$
-
 
$
7,940
 
Collectively Evaluated for Impairment
 
 
20,860
 
 
3,875
 
 
15,859
 
 
399
 
 
40,993
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
1,910,777
 
$
292,721
 
$
2,398,829
 
$
54,957
 
$
4,657,284
 
Individually Evaluated for Impairment
 
 
34,490
 
 
9,875
 
 
34,187
 
 
3
 
 
78,555
 
Collectively Evaluated for Impairment
 
 
1,876,287
 
 
282,846
 
 
2,364,642
 
 
54,954
 
 
4,578,729
 
 
 
 
 
As of December 31, 2015
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually Evaluated for Impairment
 
$
2,698
 
$
1,223
 
$
1,730
 
$
32
 
$
5,683
 
Collectively Evaluated for Impairment
 
 
18,797
 
 
4,209
 
 
14,331
 
 
399
 
 
37,736
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
1,760,479
 
$
243,267
 
$
2,157,582
 
$
55,047
 
$
4,216,375
 
Individually Evaluated for Impairment
 
 
11,513
 
 
4,052
 
 
17,880
 
 
46
 
 
33,491
 
Collectively Evaluated for Impairment
 
 
1,748,966
 
 
239,215
 
 
2,139,702
 
 
55,001
 
 
4,182,884
 
 
The following tables present details of the Company’s impaired loans as of September 30, 2016 and December 31, 2015, 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, 2016
 
2016
 
2016
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
$
10,173
 
$
10,173
 
$
-
 
$
10,215
 
$
192
 
$
10,044
 
$
556
 
Real estate - construction
 
 
6,497
 
 
7,362
 
 
-
 
 
6,529
 
 
115
 
 
6,058
 
 
311
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
7,581
 
 
7,743
 
 
-
 
 
7,801
 
 
185
 
 
8,079
 
 
560
 
1-4 family mortgage
 
 
3,159
 
 
3,159
 
 
-
 
 
3,179
 
 
47
 
 
3,129
 
 
123
 
Other mortgage
 
 
9,586
 
 
9,586
 
 
-
 
 
9,405
 
 
180
 
 
9,443
 
 
526
 
Total real estate - mortgage
 
 
20,326
 
 
20,488
 
 
-
 
 
20,385
 
 
412
 
 
20,651
 
 
1,209
 
Consumer
 
 
3
 
 
5
 
 
-
 
 
6
 
 
-
 
 
6
 
 
-
 
Total with no allowance recorded
 
 
36,999
 
 
38,028
 
 
-
 
 
37,135
 
 
719
 
 
36,759
 
 
2,076
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
 
24,317
 
 
28,626
 
 
5,120
 
 
25,584
 
 
327
 
 
23,725
 
 
959
 
Real estate - construction
 
 
3,378
 
 
3,378
 
 
940
 
 
3,602
 
 
18
 
 
3,644
 
 
54
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
10,845
 
 
10,845
 
 
1,320
 
 
10,863
 
 
113
 
 
10,827
 
 
360
 
1-4 family mortgage
 
 
1,310
 
 
1,310
 
 
300
 
 
681
 
 
9
 
 
668
 
 
19
 
Other mortgage
 
 
1,706
 
 
1,706
 
 
260
 
 
1,725
 
 
23
 
 
1,734
 
 
69
 
Total real estate - mortgage
 
 
13,861
 
 
13,861
 
 
1,880
 
 
13,269
 
 
145
 
 
13,229
 
 
448
 
Consumer
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
 
-
 
Total with allowance recorded
 
 
41,556
 
 
45,865
 
 
7,940
 
 
42,455
 
 
490
 
 
40,598
 
 
1,461
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Impaired Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
 
34,490
 
 
38,799
 
 
5,120
 
 
35,799
 
 
519
 
 
33,769
 
 
1,515
 
Real estate - construction
 
 
9,875
 
 
10,740
 
 
940
 
 
10,131
 
 
133
 
 
9,702
 
 
365
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
18,426
 
 
18,588
 
 
1,320
 
 
18,664
 
 
298
 
 
18,906
 
 
920
 
1-4 family mortgage
 
 
4,469
 
 
4,469
 
 
300
 
 
3,860
 
 
56
 
 
3,797
 
 
142
 
Other mortgage
 
 
11,292
 
 
11,292
 
 
260
 
 
11,130
 
 
203
 
 
11,177
 
 
595
 
Total real estate - mortgage
 
 
34,187
 
 
34,349
 
 
1,880
 
 
33,654
 
 
557
 
 
33,880
 
 
1,657
 
Consumer
 
 
3
 
 
5
 
 
-
 
 
6
 
 
-
 
 
6
 
 
-
 
Total impaired loans
 
$
78,555
 
$
83,893
 
$
7,940
 
$
79,590
 
$
1,209
 
$
77,357
 
$
3,537
 
 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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
 
$
478
 
$
487
 
$
-
 
$
482
 
$
24
 
Real estate - construction
 
 
161
 
 
163
 
 
-
 
 
370
 
 
1
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
3,980
 
 
4,140
 
 
-
 
 
3,815
 
 
214
 
1-4 family mortgage
 
 
2,396
 
 
2,572
 
 
-
 
 
2,409
 
 
147
 
Other mortgage
 
 
4,079
 
 
4,694
 
 
-
 
 
4,559
 
 
222
 
Total real estate - mortgage
 
 
10,455
 
 
11,406
 
 
-
 
 
10,783
 
 
583
 
Consumer
 
 
14
 
 
20
 
 
-
 
 
18
 
 
1
 
Total with no allowance recorded
 
 
11,108
 
 
12,076
 
 
-
 
 
11,653
 
 
609
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
 
11,035
 
 
13,035
 
 
2,698
 
 
13,882
 
 
672
 
Real estate - construction
 
 
3,891
 
 
4,370
 
 
1,223
 
 
3,920
 
 
-
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
6,365
 
 
6,365
 
 
1,328
 
 
9,958
 
 
568
 
1-4 family mortgage
 
 
603
 
 
603
 
 
263
 
 
567
 
 
19
 
Other mortgage
 
 
457
 
 
457
 
 
139
 
 
880
 
 
17
 
Total real estate - mortgage
 
 
7,425
 
 
7,425
 
 
1,730
 
 
11,405
 
 
604
 
Consumer
 
 
32
 
 
32
 
 
32
 
 
34
 
 
-
 
Total with allowance recorded
 
 
22,383
 
 
24,862
 
 
5,683
 
 
29,241
 
 
1,276
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total Impaired Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial, financial and agricultural
 
 
11,513
 
 
13,522
 
 
2,698
 
 
14,364
 
 
696
 
Real estate - construction
 
 
4,052
 
 
4,533
 
 
1,223
 
 
4,290
 
 
1
 
Real estate - mortgage:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner-occupied commercial
 
 
10,345
 
 
10,505
 
 
1,328
 
 
13,773
 
 
782
 
1-4 family mortgage
 
 
2,999
 
 
3,175
 
 
263
 
 
2,976
 
 
166
 
Other mortgage
 
 
4,536
 
 
5,151
 
 
139
 
 
5,439
 
 
239
 
Total real estate - mortgage
 
 
17,880
 
 
18,831
 
 
1,730
 
 
22,188
 
 
1,187
 
Consumer
 
 
46
 
 
52
 
 
32
 
 
52
 
 
1
 
Total impaired loans
 
$
33,491
 
$
36,938
 
$
5,683
 
$
40,894
 
$
1,885
 
 
Troubled Debt Restructurings (“TDR”) at September 30, 2016, December 31, 2015 and September 30, 2015 totaled $6.7 million, $7.7 million and $8.3 million, respectively. At September 30, 2016, the Company had a related allowance for loan losses of $1.7 million allocated to these TDRs, compared to $0.9 million at December 31, 2015 and $1.3 million at September 30, 2015. TDR activity by portfolio segment for the three and nine months ended September 30, 2016 is presented in the table below. There were no modifications made to new TDRs or renewals of existing TDRs for the three and nine months ended September 30, 2015.  
  
 
 
Three Months Ended September 30, 2016
 
Nine Months Ended September 30, 2016
 
 
 
 
 
 
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
 
$
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, 2016 and 2015, 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, 2016, the Company’s TDRs have all resulted from term extensions, rather than from interest rate reductions or debt forgiveness.