Loans | 6 Months Ended |
Jun. 30, 2014 |
Receivables [Abstract] | ' |
Loans | ' |
Loans |
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A summary of the balances of loans follows (in thousands): |
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| June 30, 2014 | December 31, 2013 | | | | | | | | | | | | | | | |
Construction and Land Development | $ | 15,060 | | $ | 20,745 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Farmland and Agricultural Production | 7,659 | | 8,505 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Residential 1-4 Family | 95,284 | | 86,770 | | | | | | | | | | | | | | | | |
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Commercial Real Estate | 369,854 | | 366,689 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Commercial | 166,975 | | 159,427 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Consumer and other | 9,784 | | 10,315 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| 664,616 | | 652,451 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
Net deferred loan (fees) costs | (226 | ) | (320 | ) | | | | | | | | | | | | | | | |
Allowance for loan losses | (14,383 | ) | (15,820 | ) | | | | | | | | | | | | | | | |
| $ | 650,007 | | $ | 636,311 | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
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The following table presents the contractual aging of the recorded investment in past due and non-accrual loans by class of loans as of June 30, 2014 and December 31, 2013 (in thousands): |
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June 30, 2014 | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due and Still Accruing | Total Accruing Loans | Non-accrual Loans | Total Loans | |
Construction and Land Development | $ | 15,060 | | $ | — | | $ | — | | — | | $ | 15,060 | | $ | — | | $ | 15,060 | | |
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Farmland and Agricultural Production | 7,659 | | — | | — | | — | | 7,659 | | — | | 7,659 | | |
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Residential 1-4 Family | 94,397 | | — | | — | | 461 | | 94,858 | | 426 | | 95,284 | | |
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Commercial Real Estate | | | | | | | | |
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Multifamily | 23,432 | | — | | — | | — | | 23,432 | | — | | 23,432 | | |
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Retail | 85,206 | | — | | — | | — | | 85,206 | | 947 | | 86,153 | | |
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Office | 42,481 | | — | | — | | — | | 42,481 | | — | | 42,481 | | |
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Industrial and Warehouse | 63,575 | | — | | — | | — | | 63,575 | | 1,899 | | 65,474 | | |
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Health Care | 33,486 | | — | | — | | — | | 33,486 | | — | | 33,486 | | |
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Other | 114,076 | | 1,800 | | — | | — | | 115,876 | | 2,952 | | 118,828 | | |
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Commercial | 164,880 | | 302 | | — | | — | | 165,182 | | 1,793 | | 166,975 | | |
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Consumer and other | 9,763 | | 5 | | 8 | | — | | 9,776 | | 8 | | 9,784 | | |
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Total | $ | 654,015 | | $ | 2,107 | | $ | 8 | | 461 | | $ | 656,591 | | $ | 8,025 | | $ | 664,616 | | |
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December 31, 2013 | Current | 30-59 Days Past Due | 60-89 Days Past Due | 90+ Days Past Due and Still Accruing | Total Accruing Loans | Non-accrual Loans | Total Loans |
Construction and Land Development | $ | 16,309 | | $ | — | | $ | — | | $ | — | | $ | 16,309 | | $ | 4,436 | | $ | 20,745 | |
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Farmland and Agricultural Production | 8,505 | | — | | — | | — | | 8,505 | | — | | 8,505 | |
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Residential 1-4 Family | 85,965 | | 67 | | 57 | | — | | 86,089 | | 681 | | 86,770 | |
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Commercial Real Estate | | | | | | | | | | | |
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Multifamily | 21,342 | | — | | — | | — | | 21,342 | | 597 | | 21,939 | |
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Retail | 86,896 | | — | | — | | — | | 86,896 | | 7,358 | | 94,254 | |
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Office | 35,659 | | — | | — | | — | | 35,659 | | 436 | | 36,095 | |
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Industrial and Warehouse | 63,825 | | — | | — | | 351 | | 64,176 | | — | | 64,176 | |
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Health Care | 34,771 | | — | | — | | — | | 34,771 | | — | | 34,771 | |
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Other | 109,305 | | 1,685 | | — | | — | | 110,990 | | 4,464 | | 115,454 | |
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Commercial | 154,586 | | — | | — | | — | | 154,586 | | 4,841 | | 159,427 | |
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Consumer and other | 10,273 | | 11 | | 1 | | — | | 10,285 | | 30 | | 10,315 | |
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Total | $ | 627,436 | | $ | 1,763 | | $ | 58 | | $ | 351 | | $ | 629,608 | | $ | 22,843 | | $ | 652,451 | |
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As part of the on-going monitoring of the credit quality of the Company’s loan portfolio, management categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt and comply with various terms of their loan agreements. The Company considers current financial information, historical payment experience, credit documentation, public information and current economic trends. Generally, all sizable credits receive a financial review no less than annually to monitor and adjust, if necessary, the credit’s risk profile. Credits classified as watch generally receive a review more frequently than annually. For special mention, substandard, and doubtful credit classifications, the frequency of review is increased to no less than quarterly in order to determine potential impact on credit loss estimates. |
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The Company categorizes loans into the following risk categories based on relevant information about the ability of borrowers to service their debt: |
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Pass - A pass asset is well protected by the current worth and paying capacity of the borrower (or guarantors, if any) or by the fair value, less cost to acquire and sell, of any underlying collateral in a timely manner. Pass assets also include certain assets considered watch, which are still protected by the worth and paying capacity of the borrower but deserve closer attention and a higher level of credit monitoring. |
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Special Mention - A special mention asset, or risk rating of 5, has potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention assets are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. |
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Substandard - A substandard asset, or risk rating of 6 or 7, is an asset with a well-defined weakness that jeopardizes repayment, in whole or in part, of the debt. These credits are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged. These assets are characterized by the distinct possibility that the Company will or has sustained some loss of principal and/or interest if the deficiencies are not corrected. |
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Doubtful - An asset that has all the weaknesses, or risk rating of 8, inherent in the substandard classification, with 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. These credits have a high probability for loss, yet because certain important and reasonably specific pending factors may work toward the strengthening of the asset, its classification of loss is deferred until its more exact status can be determined. |
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Loss - An asset, or portion thereof, classified as loss, or risk rated 9, is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted. This classification does not necessarily mean that an asset has no recovery or salvage value but that it is not practical or desirable to defer writing off this basically worthless asset even though a partial recovery may occur in the future. Therefore, there was no balance to report at June 30, 2014 and December 31, 2013. |
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Residential 1-4 family, consumer and other loans are assessed for credit quality based on the contractual aging status of the loan and payment activity. In certain cases, based upon payment performance, the loan being related with another commercial type loan or for other reasons, a loan may be categorized into one of the risk categories noted above. Such assessment is completed at the end of each reporting period. |
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The following tables present the risk category of loans evaluated by internal asset classification based on the most recent analysis performed and the contractual aging as of June 30, 2014 and December 31, 2013 (in thousands): |
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June 30, 2014 | Pass | Special Mention | Substandard | Doubtful | Total | | | | | | |
Construction and Land Development | $ | 13,885 | | $ | 1,175 | | $ | — | | $ | — | | $ | 15,060 | | | | | | | |
| | | | | |
Farmland and Agricultural Production | 7,659 | | — | | — | | — | | 7,659 | | | | | | | |
| | | | | |
Commercial Real Estate | | | | | | | | | | | |
| | | | | |
Multifamily | 23,432 | | — | | — | | — | | 23,432 | | | | | | | |
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Retail | 85,206 | | — | | 947 | | — | | 86,153 | | | | | | | |
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Office | 42,481 | | — | | — | | — | | 42,481 | | | | | | | |
| | | | | |
Industrial and Warehouse | 62,942 | | 633 | | — | | 1,899 | | 65,474 | | | | | | | |
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Health Care | 33,486 | | — | | — | | — | | 33,486 | | | | | | | |
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Other | 103,947 | | 7,610 | | 4,743 | | 2,528 | | 118,828 | | | | | | | |
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Commercial | 157,093 | | 5,719 | | 3,242 | | 921 | | 166,975 | | | | | | | |
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Total | $ | 530,131 | | $ | 15,137 | | $ | 8,932 | | $ | 5,348 | | $ | 559,548 | | | | | | | |
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June 30, 2014 | Performing | Non-performing | Total | | | | | | | | | | | | |
Residential 1-4 Family | $ | 94,858 | | $ | 426 | | $ | 95,284 | | | | | | | | | | | | | |
| | | | | | | | | | | |
Consumer and other | 9,776 | | 8 | | 9,784 | | | | | | | | | | | | | |
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Total | $ | 104,634 | | $ | 434 | | $ | 105,068 | | | | | | | | | | | | | |
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December 31, 2013 | Pass | Special Mention | Substandard | Doubtful | Total | | | | | | | |
Construction and Land Development | $ | 10,213 | | $ | 6,008 | | $ | 4,524 | | — | | $ | 20,745 | | | | | | | | |
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Farmland and Agricultural Production | 8,505 | | — | | — | | — | | 8,505 | | | | | | | | |
| | | | | | |
Commercial Real Estate | | | | | | | | | | | | | | | | | |
| | | | | | |
Multifamily | 20,629 | | 713 | | 597 | | — | | 21,939 | | | | | | | | |
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Retail | 71,489 | | 15,407 | | 4,768 | | 2,590 | | 94,254 | | | | | | | | |
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Office | 35,115 | | 544 | | 436 | | — | | 36,095 | | | | | | | | |
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Industrial and Warehouse | 63,531 | | 645 | | — | | — | | 64,176 | | | | | | | | |
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Health Care | 34,771 | | — | | — | | — | | 34,771 | | | | | | | | |
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Other | 105,896 | | 2,228 | | 3,681 | | 3,649 | | 115,454 | | | | | | | | |
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Commercial | 148,224 | | 5,899 | | 3,175 | | 2,129 | | 159,427 | | | | | | | | |
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Total | $ | 498,373 | | $ | 31,444 | | $ | 17,181 | | 8,368 | | $ | 555,366 | | | | | | | | |
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December 31, 2013 | Performing | Non-performing | Total | | | | | | | | | | | | |
Residential 1-4 Family | $ | 86,089 | | $ | 681 | | $ | 86,770 | | | | | | | | | | | | | |
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Consumer and other | 10,285 | | 30 | | 10,315 | | | | | | | | | | | | | |
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Total | $ | 96,374 | | $ | 711 | | $ | 97,085 | | | | | | | | | | | | | |
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Non-performing loans include those on non-accrual status and those past due 90 days or more and still on accrual. |
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The following table provides additional detail of the activity in the allowance for loan losses, by portfolio segment, for the three months ended June 30, 2014 and 2013 (in thousands): |
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June 30, 2014 | Construction and Land Development | Farmland and Agricultural Production | Residential 1-4 Family | Commercial Real Estate | Commercial | Consumer and other | Total |
Allowance for loan losses: | | | | | | | |
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Beginning balance | $ | 1,455 | | $ | 404 | | $ | 1,540 | | $ | 8,930 | | $ | 3,757 | | $ | 265 | | $ | 16,351 | |
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Provision for loan losses | (334 | ) | 49 | | (266 | ) | 1,125 | | 66 | | 27 | | 667 | |
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Loans charged-off | — | | — | | (88 | ) | (2,494 | ) | (264 | ) | — | | (2,846 | ) |
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Recoveries of loans previously charged-off | 18 | | — | | 5 | | 149 | | 39 | | | 211 | |
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Ending balance | $ | 1,139 | | $ | 453 | | $ | 1,191 | | $ | 7,710 | | $ | 3,598 | | $ | 292 | | $ | 14,383 | |
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June 30, 2013 | | | | | | | |
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Allowance for loan losses: | | | | | | | |
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Beginning balance | $ | 3,206 | | $ | 355 | | $ | 2,223 | | $ | 12,163 | | $ | 3,826 | | $ | 158 | | $ | 21,931 | |
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Provision for loan losses | (566 | ) | 24 | | (26 | ) | 229 | | 1,460 | | 347 | | 1,468 | |
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Loans charged-off | (109 | ) | — | | (189 | ) | (686 | ) | (1,785 | ) | (374 | ) | (3,143 | ) |
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Recoveries of loans previously charged-off | 198 | | — | | 16 | | 136 | | 28 | | — | | 378 | |
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Ending balance | $ | 2,729 | | $ | 379 | | $ | 2,024 | | $ | 11,842 | | $ | 3,529 | | $ | 131 | | $ | 20,634 | |
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The following table provides additional detail of the activity in the allowance for loan losses, by portfolio segment, for the six months ended June 30, 2014 and 2013 (in thousands): |
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June 30, 2014 | Construction and Land Development | Farmland and Agricultural Production | Residential 1-4 Family | Commercial Real Estate | Commercial | Consumer and other | Total |
Allowance for loan losses: | | | | | | | |
Beginning balance | $ | 2,711 | | $ | 427 | | $ | 1,440 | | $ | 7,909 | | $ | 3,183 | | $ | 150 | | $ | 15,820 | |
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Provision for loan losses | (424 | ) | 26 | | (112 | ) | 1,653 | | 1,372 | | 152 | | 2,667 | |
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Loans charged-off | (1,186 | ) | — | | (156 | ) | (2,677 | ) | (1,067 | ) | (16 | ) | (5,102 | ) |
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Recoveries of loans previously charged-off | 38 | | — | | 19 | | 825 | | 110 | | 6 | | 998 | |
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Ending balance | $ | 1,139 | | $ | 453 | | $ | 1,191 | | $ | 7,710 | | $ | 3,598 | | $ | 292 | | $ | 14,383 | |
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June 30, 2013 | | | | | | | |
Allowance for loan losses: | | | | | | | |
Beginning balance | $ | 4,755 | | $ | 472 | | $ | 2,562 | | $ | 11,864 | | $ | 3,075 | | $ | 150 | | $ | 22,878 | |
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Provision for loan losses | (1,617 | ) | (93 | ) | (176 | ) | 1,221 | | 2,799 | | 566 | | 2,700 | |
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Loans charged-off | (1,288 | ) | — | | (411 | ) | (1,397 | ) | (2,475 | ) | (593 | ) | (6,164 | ) |
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Recoveries of loans previously charged-off | 879 | | — | | 49 | | 154 | | 130 | | 8 | | 1,220 | |
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Ending balance | $ | 2,729 | | $ | 379 | | $ | 2,024 | | $ | 11,842 | | $ | 3,529 | | $ | 131 | | $ | 20,634 | |
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The following table presents the balance in the allowance for loan losses and the unpaid principal balance of loans by portfolio segment and based on impairment method as of June 30, 2014 and December 31, 2013 (in thousands): |
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June 30, 2014 | Construction and Land Development | Farmland and Agricultural Production | Residential 1-4 Family | Commercial Real Estate | Commercial | Consumer and other | Total |
Period-ended amount allocated to: | | | | | | | |
Individually evaluated for impairment | $ | — | | $ | — | | $ | 45 | | $ | 345 | | $ | 26 | | $ | — | | $ | 416 | |
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Collectively evaluated for impairment | 1,139 | | 453 | | 1,146 | | 7,365 | | 3,572 | | 292 | | 13,967 | |
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Ending balance | $ | 1,139 | | $ | 453 | | $ | 1,191 | | $ | 7,710 | | $ | 3,598 | | $ | 292 | | $ | 14,383 | |
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Loans: | | | | | | | |
Individually evaluated for impairment | $ | — | | $ | — | | $ | 2,317 | | $ | 9,712 | | $ | 4,443 | | $ | 8 | | $ | 16,480 | |
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Collectively evaluated for impairment | 15,060 | | 7,659 | | 92,967 | | 360,142 | | 162,532 | | 9,776 | | 648,136 | |
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Ending balance | $ | 15,060 | | $ | 7,659 | | $ | 95,284 | | $ | 369,854 | | $ | 166,975 | | $ | 9,784 | | $ | 664,616 | |
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December 31, 2013 | | | | | | | |
Period-ended amount allocated to: | | | | | | | |
Individually evaluated for impairment | $ | 1,185 | | — | | $ | 45 | | $ | 1,190 | | $ | — | | $ | — | | $ | 2,420 | |
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Collectively evaluated for impairment | 1,526 | | 427 | | 1,395 | | 6,719 | | 3,183 | | 150 | | 13,400 | |
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Ending balance | $ | 2,711 | | $ | 427 | | $ | 1,440 | | $ | 7,909 | | $ | 3,183 | | $ | 150 | | $ | 15,820 | |
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Loans: | | | | | | | |
Individually evaluated for impairment | $ | 4,436 | | — | | $ | 1,362 | | $ | 17,960 | | $ | 4,841 | | $ | 30 | | $ | 28,629 | |
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Collectively evaluated for impairment | 16,309 | | 8,505 | | 85,408 | | 348,729 | | 154,586 | | 10,285 | | 623,822 | |
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Ending balance | $ | 20,745 | | $ | 8,505 | | $ | 86,770 | | $ | 366,689 | | $ | 159,427 | | $ | 10,315 | | $ | 652,451 | |
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The following tables present additional detail of impaired loans, segregated by class, as of and for the three and six months ended June 30, 2014 and year ended December 31, 2013 (dollars in thousands). The unpaid principal balance represents the recorded balance prior to any partial charge-offs. The recorded investment represents customer balances net of any partial charge-offs recognized on the loans. The interest income recognized column represents all interest income reported after the loan became impaired. |
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June 30, 2014 | | |
| | | | Three Months Ended | Six Months Ended |
| Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized |
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With no related allowance recorded: | | | | | | | |
Construction and Land Development | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |
|
Farmland and Agricultural Production | — | | | — | | — | | — | | — | | — | |
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Residential 1-4 Family | 1,722 | | 1,642 | | — | | 1,303 | | — | | 1,096 | | 32 | |
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Commercial Real Estate | | | | | | | 0 |
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Multifamily | — | | — | | — | | — | | — | | — | | — | |
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Retail | 947 | | 947 | | — | | 473 | | — | | 199 | | — | |
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Office | — | | — | | — | | 166 | | — | | 1,179 | | — | |
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Industrial and Warehouse | 2,435 | | 1,899 | | — | | 950 | | — | | 1,129 | | — | |
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Health Care | — | | — | | — | | — | | | 1,461 | | — | |
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Other | 7,918 | | 5,060 | | — | | 6,438 | | 6 | | 5,780 | | 39 | |
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Commercial | 5,896 | | 4,262 | | — | | 4,024 | | — | | 4,297 | | 86 | |
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Consumer and other | 17 | | 8 | | — | | 9 | | — | | 16 | | — | |
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With an allowance recorded: | | | | | | | |
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Construction and Land Development | — | | — | | — | | — | | — | | 1,479 | | — | |
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Farmland and Agricultural Production | — | | — | | — | | — | | — | | — | | — | |
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Residential 1-4 Family | 675 | | 675 | | 45 | | 677 | | 8 | | 678 | | 16 | |
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Commercial Real Estate | | | | | | | |
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Multifamily | — | | — | | — | | 299 | | — | | 199 | | — | |
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Retail | — | | — | | — | | 2,383 | | — | | 3,179 | | — | |
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Office | — | | — | | — | | — | | — | | — | | — | |
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Industrial and Warehouse | — | | — | | — | | — | | — | | — | | — | |
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Health Care | — | | — | | — | | — | | — | | — | | — | |
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Other | 1,806 | | 1,806 | | 345 | | 1,810 | | 4 | | 1,206 | | 30 | |
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Commercial | 181 | | 181 | | 26 | | 185 | | — | | 123 | | — | |
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Consumer and other | — | | — | | — | | — | | — | | — | | — | |
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Total | $ | 21,597 | | $ | 16,480 | | $ | 416 | | $ | 18,717 | | $ | 18 | | $ | 22,021 | | $ | 203 | |
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December 31, 2013 | | | | | | |
| Unpaid Principal Balance | Recorded Investment | Allowance for Loan Losses Allocated | Average Recorded Investment | Interest Income Recognized | | | | | | |
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With no related allowance recorded: | | | | | | | | | | | |
Construction and Land Development | $ | — | | $ | — | | $ | — | | $ | 865 | | | | | | | | | |
| | | | | |
Farmland and Agricultural Production | — | | — | | — | | — | | — | | | | | | | |
| | | | | |
Residential 1-4 Family | 1,129 | | 681 | | — | | 3,529 | | — | | | | | | | |
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Commercial Real Estate | | | | | | | | | | | |
Multifamily | 597 | | 597 | | — | | 122 | | — | | | | | | | |
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Retail | 4,108 | | 2,590 | | — | | 880 | | — | | | | | | | |
| | | | | |
Office | 3,055 | | 3,055 | | — | | 3,168 | | — | | | | | | | |
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Industrial and Warehouse | 2,486 | | 2,486 | | — | | 2,505 | | 93 | | | | | | | |
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Health Care | — | | — | | — | | — | | | | | | | | | |
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Other | 7,497 | | 4,464 | | — | | 7,987 | | — | | | | | | | |
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Commercial | 9,441 | | 4,841 | | — | | 8,765 | | — | | | | | | | |
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Consumer and other | 187 | | 30 | | — | | 125 | | — | | | | | | | |
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With an allowance recorded: | | | | | | | | | | | |
Construction and Land Development | 4,436 | | 4,436 | | 1,185 | | — | | — | | | | | | | |
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Farmland and Agricultural Production | — | | — | | — | | — | | — | | | | | | | |
| | | | | |
Residential 1-4 Family | 681 | | 681 | | 45 | | 1,458 | | 8 | | | | | | | |
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Commercial Real Estate | | | | | | | | | | | |
Multifamily | — | | — | | — | | — | | — | | | | | | | |
| | | | | |
Retail | 5,980 | | 4,768 | | 1,190 | | — | | — | | | | | | | |
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Office | — | | — | | — | | — | | — | | | | | | | |
| | | | | |
Industrial and Warehouse | — | | — | | — | | — | | — | | | | | | | |
| | | | | |
Health Care | — | | — | | — | | — | | — | | | | | | | |
| | | | | |
Other | — | | — | | — | | 2,516 | | — | | | | | | | |
| | | | | |
Commercial | — | | — | | — | | 2,324 | | — | | | | | | | |
| | | | | |
Consumer and other | — | | — | | — | | — | | — | | | | | | | |
| | | | | |
Total | $ | 39,597 | | $ | 28,629 | | $ | 2,420 | | $ | 34,244 | | $ | 101 | | | | | | | |
| | | | | |
|
|
|
The following tables present troubled debt restructurings during the three and six months ended June 30, 2014 and 2013 (in thousands, except number of contracts): |
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Three months ended June 30, 2014 | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Charge-offs and Specific Reserves | | | | | | | | | | |
Construction and Land Development | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | |
| | | | | | | | | |
Farmland and Agricultural Production | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Residential 1-4 Family | 1 | | 41 | | 41 | | — | | | | | | | | | | | |
| | | | | | | | | |
Commercial Real Estate | | | | | | | | | | | | | | |
| | | | | | | | | |
Multifamily | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Retail | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Office | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Industrial and Warehouse | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Health Care | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Other | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Commercial | 1 | | 413 | | 544 | | — | | | | | | | | | | | |
| | | | | | | | | |
Consumer and other | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
| 2 | | $ | 454 | | $ | 585 | | $ | — | | | | | | | | | | | |
| | | | | | | | | |
Three months ended June 30, 2013 | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Construction and Land Development | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | |
| | | | | | | | | |
Farmland and Agricultural Production | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Residential 1-4 Family | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Commercial Real Estate | | | | | | | | | | | | | | | | | | |
| | | | | | | | | |
Multifamily | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Retail | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Office | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Industrial and Warehouse | 1 | | 2,567 | | 2,567 | | — | | | | | | | | | | | |
| | | | | | | | | |
Health Care | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Other | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Commercial | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Consumer and other | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
| 1 | | $ | 2,567 | | $ | 2,567 | | $ | — | | | | | | | | | | | |
| | | | | | | | | |
|
| | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Six months ended June 30, 2014 | Number of Contracts | Pre-Modification Outstanding Recorded Investment | Post-Modification Outstanding Recorded Investment | Charge-offs and Specific Reserves | | | | | | | | | | |
Construction and Land Development | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | |
| | | | | | | | | |
Farmland and Agricultural Production | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Residential 1-4 Family | 1 | | 41 | | 41 | | — | | | | | | | | | | | |
| | | | | | | | | |
Commercial Real Estate | | | | | | | | | | | | | | |
Multifamily | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Retail | 1 | | 931 | | 1,041 | | — | | | | | | | | | | | |
| | | | | | | | | |
Office | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Industrial and Warehouse | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Health Care | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Other | 1 | | 1,815 | | 1,815 | | 265 | | | | | | | | | | | |
| | | | | | | | | |
Commercial | 1 | | 413 | | 544 | | — | | | | | | | | | | | |
| | | | | | | | | |
Consumer and other | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
| 4 | | $ | 3,200 | | $ | 3,441 | | $ | 265 | | | | | | | | | | | |
| | | | | | | | | |
Six months ended June 30, 2013 | | | | | | | | | | | | | | |
Construction and Land Development | — | | $ | — | | $ | — | | $ | — | | | | | | | | | | | |
| | | | | | | | | |
Farmland and Agricultural Production | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Residential 1-4 Family | 1 | | 211 | | 211 | | 70 | | | | | | | | | | | |
| | | | | | | | | |
Commercial Real Estate | | | | — | | | | | | | | | | | |
| | | | | | | | | |
Multifamily | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Retail | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Office | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Industrial and Warehouse | 1 | | 2,567 | | 2,567 | | — | | | | | | | | | | | |
| | | | | | | | | |
Health Care | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Other | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Commercial | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
Consumer and other | — | | — | | — | | — | | | | | | | | | | | |
| | | | | | | | | |
| 2 | | 2,778 | | 2,778 | | 70 | | | | | | | | | | | |
| | | | | | | | | |
|
The following tables present troubled debt restructurings during the three and six months ended June 30, 2014 and 2013, by class and type of modification (in thousands): |
|
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Three months ended June 30, 2014 | | | |
| | Interest Rate Reduction | | | | | | |
| Payment of Real Estate Taxes | To Below Market Rate | To Interest Only | Payment Concession | Debt Concession | Total | | | |
Construction and Land Development | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | |
| | |
Farmland and Agricultural Production | — | | — | | — | | — | | — | | — | | | | |
| | |
Residential 1-4 Family | — | | — | | — | | — | | — | | — | | | | |
| | |
Commercial Real Estate | — | | — | | — | | 41 | | — | | 41 | | | | |
| | |
Commercial | 413 | | — | | — | | — | | — | | 413 | | | | |
| | |
Consumer and other | — | | — | | — | | — | | — | | — | | | | |
| | |
| $ | 413 | | $ | — | | $ | — | | $ | 41 | | $ | — | | $ | 454 | | | | |
| | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Three months ended June 30, 2013 | | | |
| | Interest Rate Reduction | | | | | | |
| Payment of Real Estate Taxes | To Below Market Rate | To Interest Only | Payment Concession | Debt Concession | Total | | | |
Construction and Land Development | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | |
| | |
Farmland and Agricultural Production | — | | — | | — | | — | | — | | — | | | | |
| | |
Residential 1-4 Family | — | | — | | — | | — | | — | | — | | | | |
| | |
Commercial Real Estate | — | | — | | 2,567 | | — | | — | | 2,567 | | | | |
| | |
Commercial | — | | — | | — | | — | | — | | — | | | | |
| | |
Consumer and other | — | | — | | — | | — | | — | | — | | | | |
| | |
| $ | — | | $ | — | | $ | 2,567 | | $ | — | | $ | — | | $ | 2,567 | | | | |
| | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Six months ended June 30, 2014 | | | |
| | Interest Rate Reduction | | | | | | |
| Payment of Real Estate Taxes | To Below Market Rate | To Interest Only | Payment Concession | Debt Concession | Total | | | |
Construction and Land Development | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | |
| | |
Farmland and Agricultural Production | — | | — | | — | | — | | — | | — | | | | |
| | |
Residential 1-4 Family | — | | — | | — | | — | | — | | — | | | | |
| | |
Commercial Real Estate | 2,746 | | — | | — | | 41 | | — | | 2,787 | | | | |
| | |
Commercial | 413 | | — | | — | | — | | — | | 413 | | | | |
| | |
Consumer and other | — | | — | | — | | — | | — | | — | | | | |
| | |
| $ | 3,159 | | $ | — | | $ | — | | $ | 41 | | $ | — | | $ | 3,200 | | | | |
| | |
| | | |
| | | | | | | | | | | | | | | | | | | | | |
| Six months ended June 30, 2013 | | | |
| | Interest Rate Reduction | | | | | | |
| Payment of Real Estate Taxes | To Below Market Rate | To Interest Only | Payment Concession | Debt Concession | Total | | | |
Construction and Land Development | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | | | |
| | |
Farmland and Agricultural Production | — | | — | | — | | — | | — | | — | | | | |
| | |
Residential 1-4 Family | — | | — | | 211 | | — | | — | | 211 | | | | |
| | |
Commercial Real Estate | — | | — | | 2,567 | | — | | — | | 2,567 | | | | |
| | |
Commercial | — | | — | | — | | — | | — | | — | | | | |
| | |
Consumer and other | — | | — | | — | | — | | — | | — | | | | |
| | |
| $ | — | | $ | — | | $ | 2,778 | | $ | — | | $ | — | | $ | 2,778 | | | | |
| | |
|
|
|
|
Troubled debt restructurings that were accruing were $2.5 million and $3.2 million, respectively, as of June 30, 2014 and December 31, 2013. Troubled debt restructurings that were non-accruing were $4.3 million and $5.1 million, respectively, as of June 30, 2014 and December 31, 2013. Of the troubled debt restructurings entered into during the past twelve months, one commercial real estate loan of approximately $1.9 million subsequently defaulted during the six months ended June 30, 2014. Performing troubled debt restructurings are considered to have defaulted when they become 90 days or more past due post restructuring or are placed on nonaccrual status. |
|
The following presents a rollfoward activity of troubled debt restructurings (in thousands except number of loans): |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Six months ended | | | | | | | | | | | | | | | | |
| June 30, 2014 | | | | | | | | | | | | | | | | |
| Recorded Investment | Number of Loans | | | | | | | | | | | | | | | | |
Balance, beginning | $ | 8,274 | | 11 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Additions to troubled debt restructurings | 3,200 | | 4 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Removal of troubled debt restructurings | — | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Charge-off related to troubled debt restructurings | (780 | ) | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Transfers to other real estate owned | — | | — | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Repayments and other reductions | (3,853 | ) | (5 | ) | | | | | | | | | | | | | | | | |
Balance, ending | $ | 6,841 | | 10 | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
|
Restructured loans are evaluated for impairment at each reporting date as part of the Company’s determination of the allowance for loan losses. |