Quarterly report pursuant to Section 13 or 15(d)

Note 5 - Loans

v3.10.0.1
Note 5 - Loans
 6 Months Ended
Jun. 30, 2018
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
June 30, 2018
and
December 31, 2017:
 
    June 30,   December 31,
    2018   2017
    (Dollars In Thousands)
Commercial, financial and agricultural   $
2,345,879
     $
2,279,366
  
Real estate - construction    
522,788
      
580,874
  
Real estate - mortgage:                
Owner-occupied commercial    
1,383,882
      
1,328,666
  
1-4 family mortgage    
584,133
      
603,063
  
Other mortgage    
1,225,906
      
997,079
  
Subtotal: Real estate - mortgage    
3,193,921
      
2,928,808
  
Consumer    
67,061
      
62,213
  
Total Loans    
6,129,649
      
5,851,261
  
Less: Allowance for loan losses    
(64,239
 )    
(59,406
 )
Net Loans   $
6,065,410
     $
5,791,855
  
                 
Commercial, financial and agricultural    
38.27
 %    
38.96
 %
Real estate - construction    
8.53
 %    
9.93
 %
Real estate - mortgage:                
Owner-occupied commercial    
22.58
 %    
22.71
 %
1-4 family mortgage    
9.53
 %    
10.30
 %
Other mortgage    
20.00
 %    
17.04
 %
Subtotal: Real estate - mortgage    
52.11
 %    
50.05
 %
Consumer    
1.09
 %    
1.06
 %
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
June 30, 2018
and
December 31, 2017
were as follows:
 
        Special            
June 30, 2018   Pass   Mention   Substandard   Doubtful   Total
    (In Thousands)
Commercial, financial and agricultural   $
2,289,789
     $
36,027
     $
20,063
     $
-
     $
2,345,879
  
Real estate - construction    
515,543
      
5,664
      
1,581
      
-
      
522,788
  
Real estate - mortgage:                                        
Owner-occupied commercial    
1,369,814
      
10,042
      
4,026
      
-
      
1,383,882
  
1-4 family mortgage    
579,288
      
1,350
      
3,495
      
-
      
584,133
  
Other mortgage    
1,203,952
      
15,497
      
6,457
      
-
      
1,225,906
  
Total real estate mortgage    
3,153,054
      
26,889
      
13,978
      
-
      
3,193,921
  
Consumer    
67,009
      
3
      
49
      
-
      
67,061
  
Total   $
6,025,395
     $
68,583
     $
35,671
     $
-
     $
6,129,649
  
 
        Special            
December 31, 2017   Pass   Mention   Substandard   Doubtful   Total
    (In Thousands)
Commercial, financial and agricultural   $
2,225,084
     $
27,835
     $
26,447
     $
-
     $
2,279,366
  
Real estate - construction    
572,657
      
6,691
      
1,526
      
-
      
580,874
  
Real estate - mortgage:                                        
Owner-occupied commercial    
1,317,113
      
7,333
      
4,220
      
-
      
1,328,666
  
1-4 family mortgage    
598,222
      
1,599
      
3,242
      
-
      
603,063
  
Other mortgage    
976,348
      
18,122
      
2,609
      
-
      
997,079
  
Total real estate mortgage    
2,891,683
      
27,054
      
10,071
      
-
      
2,928,808
  
Consumer    
62,083
      
42
      
88
      
-
      
62,213
  
Total   $
5,751,507
     $
61,622
     $
38,132
     $
-
     $
5,851,261
  
 
Loans by performance status as of
June 30, 2018
and
December 31, 2017
were as follows:
 
June 30, 2018   Performing   Nonperforming   Total
    (In Thousands)
Commercial, financial and agricultural   $
2,338,563
     $
7,316
     $
2,345,879
  
Real estate - construction    
522,788
      
-
      
522,788
  
Real estate - mortgage:                        
Owner-occupied commercial    
1,383,210
      
672
      
1,383,882
  
1-4 family mortgage    
583,130
      
1,003
      
584,133
  
Other mortgage    
1,220,835
      
5,071
      
1,225,906
  
Total real estate mortgage    
3,187,175
      
6,746
      
3,193,921
  
Consumer    
67,020
      
41
      
67,061
  
Total   $
6,115,546
     $
14,103
     $
6,129,649
  
 
December 31, 2017   Performing   Nonperforming   Total
    (In Thousands)
Commercial, financial and agricultural   $
2,269,642
     $
9,724
     $
2,279,366
  
Real estate - construction    
580,874
      
-
      
580,874
  
Real estate - mortgage:                        
Owner-occupied commercial    
1,328,110
      
556
      
1,328,666
  
1-4 family mortgage    
602,604
      
459
      
603,063
  
Other mortgage    
997,079
      
-
      
997,079
  
Total real estate mortgage    
2,927,793
      
1,015
      
2,928,808
  
Consumer    
62,127
      
86
      
62,213
  
Total   $
5,840,436
     $
10,825
     $
5,851,261
  
 
Loans by past due status as of
June 30, 2018
and
December 31, 2017
were as follows:
 
June 30, 2018   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   $
7,259
     $
1,554
     $
431
     $
9,244
     $
6,885
     $
2,329,750
     $
2,345,879
  
Real estate - construction    
2,097
      
3,182
      
-
      
5,279
      
-
      
517,509
      
522,788
  
Real estate - mortgage:                                                        
Owner-occupied commercial    
3,365
      
591
      
250
      
4,206
      
422
      
1,379,254
      
1,383,882
  
1-4 family mortgage    
919
      
263
      
288
      
1,470
      
715
      
581,948
      
584,133
  
Other mortgage    
1,203
      
12,941
      
5,071
      
19,215
      
-
      
1,206,691
      
1,225,906
  
Total real estate - mortgage    
5,487
      
13,795
      
5,609
      
24,891
      
1,137
      
3,167,893
      
3,193,921
  
Consumer    
316
      
49
      
41
      
406
      
-
      
66,655
      
67,061
  
Total   $
15,159
     $
18,580
     $
6,081
     $
39,820
     $
8,022
     $
6,081,807
     $
6,129,649
  
 
December 31, 2017   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   $
1,410
     $
5,702
     $
12
     $
7,124
     $
9,712
     $
2,262,530
     $
2,279,366
  
Real estate - construction    
56
      
997
      
-
      
1,053
      
-
      
579,821
      
580,874
  
Real estate - mortgage:                                                        
Owner-occupied commercial    
-
      
3,664
      
-
      
3,664
      
556
      
1,324,446
      
1,328,666
  
1-4 family mortgage    
430
      
850
      
-
      
1,280
      
459
      
601,324
      
603,063
  
Other mortgage    
5,116
      
-
      
-
      
5,116
      
-
      
991,963
      
997,079
  
Total real estate - mortgage    
5,546
      
4,514
      
-
      
10,060
      
1,015
      
2,917,733
      
2,928,808
  
Consumer    
131
      
23
      
48
      
202
      
38
      
61,973
      
62,213
  
Total   $
7,143
     $
11,236
     $
60
     $
18,439
     $
10,765
     $
5,822,057
     $
5,851,261
  
 
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
six
months ended
June 30, 2018
and
June 30, 2017.
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 June 30, 2018
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2018
 
$
35,787
 
 
$
4,138
 
 
$
21,606
 
 
$
519
 
 
$
62,050
 
Charge-offs
 
 
(1,732
)
 
 
-
 
 
 
(440
)
 
 
(47
)
 
 
(2,219
)
Recoveries
 
 
173
 
 
 
97
 
 
 
2
 
 
 
15
 
 
 
287
 
Provision
 
 
1,950
 
 
 
(173
)
 
 
2,270
 
 
 
74
 
 
 
4,121
 
Balance at June 30, 2018
 
$
36,178
 
 
$
4,062
 
 
$
23,438
 
 
$
561
 
 
$
64,239
 
 
 
 
 
 
Three Months Ended June 30, 2017
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at March 31, 2017
 
$
28,707
 
 
$
4,825
 
 
$
19,962
 
 
$
398
 
 
$
53,892
 
Charge-offs
 
 
(3,067
)
 
 
(40
)
 
 
(106
)
 
 
(33
)
 
 
(3,246
)
Recoveries
 
 
16
 
 
 
14
 
 
 
2
 
 
 
-
 
 
 
32
 
Provision
 
 
3,471
 
 
 
339
 
 
 
534
 
 
 
37
 
 
 
4,381
 
Balance at June 30, 2017
 
$
29,127
 
 
$
5,138
 
 
$
20,392
 
 
$
402
 
 
$
55,059
 
 
 
 
 
 
Six Months Ended June 30, 2018
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2017
 
$
32,880
 
 
$
4,989
 
 
$
21,022
 
 
$
515
 
 
$
59,406
 
Charge-offs
 
 
(2,820
)
 
 
-
 
 
 
(821
)
 
 
(135
)
 
 
(3,776
)
Recoveries
 
 
177
 
 
 
104
 
 
 
44
 
 
 
24
 
 
 
349
 
Provision
 
 
5,941
 
 
 
(1,031
)
 
 
3,193
 
 
 
157
 
 
 
8,260
 
Balance at June 30, 2018
 
$
36,178
 
 
$
4,062
 
 
$
23,438
 
 
$
561
 
 
$
64,239
 
 
 
 
 
 
Six Months Ended June 30, 2017
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at December 31, 2016
 
$
28,872
 
 
$
5,125
 
 
$
17,504
 
 
$
392
 
 
$
51,893
 
Charge-offs
 
 
(5,922
)
 
 
(40
)
 
 
(372
)
 
 
(108
)
 
 
(6,442
)
Recoveries
 
 
206
 
 
 
30
 
 
 
4
 
 
 
1
 
 
 
241
 
Provision
 
 
5,971
 
 
 
23
 
 
 
3,256
 
 
 
117
 
 
 
9,367
 
Balance at June 30, 2017
 
$
29,127
 
 
$
5,138
 
 
$
20,392
 
 
$
402
 
 
$
55,059
 
 
 
 
 
 
As of June 30, 2018
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually Evaluated for Impairment
 
$
5,423
 
 
$
120
 
 
$
285
 
 
$
49
 
 
$
5,877
 
Collectively Evaluated for Impairment
 
 
30,755
 
 
 
3,942
 
 
 
23,153
 
 
 
512
 
 
 
58,362
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
2,345,879
 
 
$
522,788
 
 
$
3,193,921
 
 
$
67,061
 
 
$
6,129,649
 
Individually Evaluated for Impairment
 
 
20,063
 
 
 
1,623
 
 
 
16,240
 
 
 
49
 
 
 
37,975
 
Collectively Evaluated for Impairment
 
 
2,325,816
 
 
 
521,165
 
 
 
3,177,681
 
 
 
67,012
 
 
 
6,091,674
 
 
 
 
 
 
As of December 31, 2017
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually Evaluated for Impairment
 
$
4,276
 
 
$
120
 
 
$
1,163
 
 
$
50
 
 
$
5,609
 
Collectively Evaluated for Impairment
 
 
28,604
 
 
 
4,869
 
 
 
19,859
 
 
 
465
 
 
 
53,797
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending Balance
 
$
2,279,366
 
 
$
580,874
 
 
$
2,928,808
 
 
$
62,213
 
 
$
5,851,261
 
Individually Evaluated for Impairment
 
 
26,447
 
 
 
1,571
 
 
 
12,404
 
 
 
88
 
 
 
40,510
 
Collectively Evaluated for Impairment
 
 
2,252,919
 
 
 
579,303
 
 
 
2,916,404
 
 
 
62,125
 
 
 
5,810,751
 
 
The following table presents details of the Company’s impaired loans as of
June 30, 2018
and
December 31, 2017,
respectively. Loans which have been fully charged off do
not
appear in the tables.
 
                For the three months   For the six months
                ended June 30,   ended June 30,
    June 30, 2018   2018   2018
   
 
  
 
  
 
  
 
  
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   $
4,842
 
   $
5,733
 
   $
-
 
   $
5,257
 
   $
53
 
   $
5,611
 
   $
113
 
Real estate - construction    
626
 
    
629
 
    
-
 
    
629
 
    
8
 
    
630
 
    
16
 
Real estate - mortgage:                                                        
Owner-occupied commercial    
2,512
 
    
2,679
 
    
-
 
    
2,836
 
    
42
 
    
2,910
 
    
86
 
1-4 family mortgage    
2,258
 
    
2,258
 
    
-
 
    
2,255
 
    
23
 
    
2,255
 
    
48
 
Other mortgage    
5,071
 
    
5,071
 
    
-
 
    
5,082
 
    
62
 
    
5,098
 
    
125
 
Total real estate - mortgage    
9,841
 
    
10,008
 
    
-
 
    
10,173
 
    
127
 
    
10,263
 
    
259
 
Consumer    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
Total with no allowance recorded    
15,309
 
    
16,370
 
    
-
 
    
16,059
 
    
188
 
    
16,504
 
    
388
 
                                                         
With an allowance recorded:                                                        
Commercial, financial and agricultural    
15,221
 
    
22,044
 
    
5,423
 
    
15,200
 
    
121
 
    
15,542
 
    
245
 
Real estate - construction    
997
 
    
997
 
    
120
 
    
997
 
    
14
 
    
997
 
    
28
 
Real estate - mortgage:                                                        
Owner-occupied commercial    
3,776
 
    
3,776
 
    
27
 
    
3,775
 
    
46
 
    
3,775
 
    
94
 
1-4 family mortgage    
1,237
 
    
1,237
 
    
178
 
    
1,240
 
    
12
 
    
1,240
 
    
26
 
Other mortgage    
1,386
 
    
1,386
 
    
80
 
    
1,540
 
    
16
 
    
1,700
 
    
36
 
Total real estate - mortgage    
6,399
 
    
6,399
 
    
285
 
    
6,555
 
    
74
 
    
6,715
 
    
156
 
Consumer    
49
 
    
49
 
    
49
 
    
49
 
    
1
 
    
49
 
    
1
 
Total with allowance recorded    
22,666
 
    
29,489
 
    
5,877
 
    
22,801
 
    
210
 
    
23,303
 
    
430
 
                                                         
Total Impaired Loans:                                                        
Commercial, financial and agricultural    
20,063
 
    
27,777
 
    
5,423
 
    
20,457
 
    
174
 
    
21,153
 
    
358
 
Real estate - construction    
1,623
 
    
1,626
 
    
120
 
    
1,626
 
    
22
 
    
1,627
 
    
44
 
Real estate - mortgage:                                                        
Owner-occupied commercial    
6,288
 
    
6,455
 
    
27
 
    
6,611
 
    
88
 
    
6,685
 
    
180
 
1-4 family mortgage    
3,495
 
    
3,495
 
    
178
 
    
3,495
 
    
35
 
    
3,495
 
    
74
 
Other mortgage    
6,457
 
    
6,457
 
    
80
 
    
6,622
 
    
78
 
    
6,798
 
    
161
 
Total real estate - mortgage    
16,240
 
    
16,407
 
    
285
 
    
16,728
 
    
201
 
    
16,978
 
    
415
 
Consumer    
49
 
    
49
 
    
49
 
    
49
 
    
1
 
    
49
 
    
1
 
Total impaired loans   $
37,975
 
   $
45,859
 
   $
5,877
 
   $
38,860
 
   $
398
 
   $
39,807
 
   $
818
 
 
 
December 31, 2017
                For the twelve months
                ended December 31, 2017
   
 
  
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   $
10,036
 
   $
16,639
 
   $
-
 
   $
16,417
 
   $
571
 
Real estate - construction    
574
 
    
577
 
    
-
 
    
663
 
    
31
 
Real estate - mortgage:                                        
Owner-occupied commercial    
2,640
 
    
2,806
 
    
-
 
    
2,875
 
    
159
 
1-4 family mortgage    
2,262
 
    
2,262
 
    
-
 
    
2,289
 
    
93
 
Other mortgage    
746
 
    
746
 
    
-
 
    
727
 
    
44
 
Total real estate - mortgage    
5,648
 
    
5,814
 
    
-
 
    
5,891
 
    
296
 
Consumer    
38
 
    
39
 
    
-
 
    
42
 
    
3
 
Total with no allowance recorded    
16,296
 
    
23,069
 
    
-
 
    
23,013
 
    
901
 
                                         
With an allowance recorded:                                        
Commercial, financial and agricultural    
16,411
 
    
16,992
 
    
4,276
 
    
17,912
 
    
651
 
Real estate - construction    
997
 
    
997
 
    
120
 
    
997
 
    
56
 
Real estate - mortgage:                                        
Owner-occupied commercial    
3,914
 
    
3,914
 
    
601
 
    
3,801
 
    
215
 
1-4 family mortgage    
980
 
    
980
 
    
281
 
    
1,113
 
    
54
 
Other mortgage    
1,862
 
    
1,862
 
    
281
 
    
1,862
 
    
80
 
Total real estate - mortgage    
6,756
 
    
6,756
 
    
1,163
 
    
6,776
 
    
349
 
Consumer    
50
 
    
50
 
    
50
 
    
42
 
    
3
 
Total with allowance recorded    
24,214
 
    
24,795
 
    
5,609
 
    
25,727
 
    
1,059
 
                                         
Total Impaired Loans:                                        
Commercial, financial and agricultural    
26,447
 
    
33,631
 
    
4,276
 
    
34,329
 
    
1,222
 
Real estate - construction    
1,571
 
    
1,574
 
    
120
 
    
1,660
 
    
87
 
Real estate - mortgage:                                        
Owner-occupied commercial    
6,554
 
    
6,720
 
    
601
 
    
6,676
 
    
374
 
1-4 family mortgage    
3,242
 
    
3,242
 
    
281
 
    
3,402
 
    
147
 
Other mortgage    
2,608
 
    
2,608
 
    
281
 
    
2,589
 
    
124
 
Total real estate - mortgage    
12,404
 
    
12,570
 
    
1,163
 
    
12,667
 
    
645
 
Consumer    
88
 
    
89
 
    
50
 
    
84
 
    
6
 
Total impaired loans   $
40,510
 
   $
47,864
 
   $
5,609
 
   $
48,740
 
   $
1,960
 
 
Troubled Debt Restructurings (“TDR”) at
June 30, 2018,
December 31, 2017
and
June 30, 2017
totaled
$17.3
million,
$20.6
million and
$16.4
million, respectively. At
June 30, 2018,
the Company had a related allowance for loan losses of
$3.6
million allocated to these TDRs, compared to
$4.3
million at
December 31, 2017
and
$3.1
million at
June 30, 2017.
There were
no
modifications made to new TDRs or renewals of existing TDRs for the
three
and
six
months ended
June 30, 2018.
TDR activity by portfolio segment for the
three
and
six
months ended
June 30, 2017
is presented in the table below.
 
    Three Months Ended June 30, 2017   Six Months Ended June 30, 2017
        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    
5
 
   $
7,205
 
   $
7,205
 
    
5
 
   $
7,205
 
   $
7,205
 
Real estate - construction    
1
 
    
997
 
    
997
 
    
1
 
    
997
 
    
997
 
Real estate - mortgage:                                                
Owner-occupied commercial    
2
 
    
3,664
 
    
3,664
 
    
2
 
    
3,664
 
    
3,664
 
1-4 family mortgage    
1
 
    
850
 
    
850
 
    
1
 
    
850
 
    
850
 
Other mortgage    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
Total real estate mortgage    
3
 
    
4,514
 
    
4,514
 
    
3
 
    
4,514
 
    
4,514
 
Consumer    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
    
-
 
     
9
 
   $
12,716
 
   $
12,716
 
    
9
 
   $
12,716
 
   $
12,716
 
 
One commercial TDR loan totaling
$0.3
million which was modified in the previous
twelve
months (i.e.,
twelve
months prior to default) defaulted during the
three
and
six
months ended
June 30, 2018.
No
TDRs which were modified in the previous
twelve
months defaulted during the
three
and
six
months ended
June 30, 2017.
For purposes of this disclosure, default is defined as
90
days past due and still accruing or placement on nonaccrual status. As of
June 30, 2018,
the Company’s TDRs have all resulted from term extensions, rather than from interest rate reductions or debt forgiveness.