Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | NOTE 5 – LOANS AND ALLOWANCE FOR LOAN LOSSES The Company’s loan portfolio was comprised of the following at December 31: 2015 2014 PCI loans All other loans Total PCI loans All other loans Total Commercial: Commercial and industrial $ 4,825 $ 242,082 $ 246,907 $ 5,552 $ 168,234 $ 173,786 Commercial real estate (CRE) - owner-occupied 21,388 309,834 331,222 30,554 303,228 333,782 CRE - investor income producing 32,371 473,739 506,110 43,866 426,781 470,647 AC&D - 1-4 family construction 465 31,797 32,262 514 28,887 29,401 AC&D - lots, land, & development 4,797 39,614 44,411 13,660 41,783 55,443 AC&D - CRE - 87,452 87,452 112 71,478 71,590 Other commercial 1,870 6,731 8,601 1,187 3,858 5,045 Total commercial loans 65,716 1,191,249 1,256,965 95,445 1,044,249 1,139,694 Consumer: Residential mortgage 23,420 200,464 223,884 28,730 176,420 205,150 Home equity lines of credit (HELOC) 1,580 155,798 157,378 1,734 153,563 155,297 Residential construction 3,685 68,486 72,171 6,574 49,308 55,882 Other loans to individuals 516 28,300 28,816 758 21,828 22,586 Total consumer loans 29,201 453,048 482,249 37,796 401,119 438,915 Total loans 94,917 1,644,297 1,739,214 133,241 1,445,368 1,578,609 Deferred fees - 2,601 2,601 - 2,084 2,084 Total loans, net of deferred fees $ 94,917 $ 1,646,898 $ 1,741,815 $ 133,241 $ 1,447,452 $ 1,580,693 Included in the loan totals at December 31, 2015 and 2014 is $17.7 million and $42.3 million, respectively, of covered loans pursuant to the FDIC loss share agreements. Of these amounts, at December 31, 2015 and 2014, $15.6 million and $39.8 million, respectively, is included in PCI loans and $2.1 million and $2.5 million, respectively, is included in all other loans. Our loss share agreement related to Bank of Hiawassee’s non-single family assets expired on March 31, 2015, and on April 1, 2015, the remaining balance of $19.6 million associated with the Bank of Hiawassee non-single family loans was transferred from the covered portfolio to the non-covered portfolio. At December 31, 2015 and 2014, the Company had sold participations in loans aggregating $12.5 million and $6.5 million, respectively, to other financial institutions on a nonrecourse basis. Collections on loan participations and remittances to participating institutions conform to customary banking practices. The Bank accepts residential mortgage loan applications and funds loans of qualified borrowers. Funded loans are sold with limited recourse to investors under the terms of pre-existing commitments. The Bank executes all of its loan sales agreements under best efforts contracts with investors. From time to time, the Company may choose to hold certain mortgage loans on balance sheet. In addition, as part of the Provident Community merger, the Company serviced $2.8 million and $3.7 million residential mortgage loans for the benefit of others as of December 31, 2015 and 2014, respectively. Loans sold are 1-4 family residential mortgages originated by the Company and sold to various other financial institutions. The Company’s exposure to credit loss in the event of nonperformance by the other party to the loan is represented by the contractual notional amount of the loan. Since only a few loans have been returned to the Company, the amount of total loans sold does not necessarily represent future cash requirements. Total loans sold with limited recourse in 2015 and 2014 was $98.7 million and $58.8 million, respectively. The outstanding principal balance and the carrying amount of acquired loans that were recorded at fair value at the acquisition date that are included in the consolidated balance sheet at December 31, 2015 and 2014 were as follows: 2015 2014 PCI loans Purchased Performing loans Total PCI loans Purchased Performing loans Total Outstanding principal balance $ 120,958 $ 282,081 $ 403,039 $ 165,686 $ 367,768 $ 533,454 Carrying amount: Commercial and industrial 4,825 6,345 11,170 5,552 11,032 16,584 CRE - owner-occupied 21,388 82,204 103,592 30,554 101,071 131,625 CRE - investor income producing 32,371 49,105 81,476 43,866 62,493 106,359 AC&D - 1-4 family construction 465 - 465 514 - 514 AC&D - lots, land, & development 4,797 3,432 8,229 13,660 8,052 21,712 AC&D - CRE - - - 112 - 112 Other commercial 1,870 333 2,203 1,187 734 1,921 Residential mortgage 23,420 69,632 93,052 28,730 91,291 120,021 HELOC 1,580 69,577 71,157 1,734 83,573 85,307 Residential construction 3,685 1,642 5,327 6,574 3,928 10,502 Other loans to individuals 516 1,468 1,984 758 2,615 3,373 $ 94,917 $ 283,738 $ 378,655 $ 133,241 $ 364,789 $ 498,030 Concentrations of Credit - Allowance for Loan Losses Commercial and industrial CRE - owner-occupied CRE - investor income producing AC&D AC&D-1-4 family construction AC&D- lots, land, & development AC&D- CRE Other commercial Residential mortgage HELOC Residential construction Other loans to individuals Total For the year ended December 31, 2015 Allowance for Loan Losses, excluding PCI: Balance, beginning of year $ 1,563 $ 721 $ 1,751 $ - $ 458 $ 591 $ 395 $ 32 $ 443 $ 1,651 $ 542 $ 115 $ 8,262 Provision for loan losses 338 413 116 (219 ) (661 ) 284 76 307 (242 ) 32 145 589 Charge-offs (213 ) - (34 ) - - - (39 ) (176 ) (184 ) (129 ) (56 ) (831 ) Recoveries 133 1 266 8 348 - - 98 112 16 62 1,044 Net (charge-offs) recoveries (80 ) 1 232 - 8 348 - (39 ) (78 ) (72 ) (113 ) 6 213 Ending balance $ 1,821 $ 1,135 $ 2,099 $ - $ 247 $ 278 $ 679 $ 69 $ 672 $ 1,337 $ 461 $ 266 $ 9,064 PCI Impairment Allowance for Loan Losses: Balance, beginning of year $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - PCI impairment charge-offs (51 ) - (39 ) - - - - - (96 ) - - - (186 ) PCI impairment recoveries - - - - - - - - - - - - - Net PCI impairment charge-offs (51 ) - (39 ) - - - - - (96 ) - - - (186 ) Reversal of PCI impairment 51 - 39 - - - - - 96 - - - 186 Benefit attributable to FDIC loss share agreements - - (22 ) - - - - - (30 ) - - - (52 ) Total provision for loan losses charged to operations 51 - 17 - - - - - 66 - - - 134 Provision for loan losses recorded through FDIC loss share receivable - - 22 - - - - - 30 - - - 52 Ending balance $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Allowance for Loan Losses $ 1,821 $ 1,135 $ 2,099 $ - $ 247 $ 278 $ 679 $ 69 $ 672 $ 1,337 $ 461 $ 266 $ 9,064 For the year ended December 31, 2014 Allowance for Loan Losses, excluding PCI: Balance, beginning of year $ 1,491 $ 399 $ 1,797 $ - $ 839 $ 1,751 $ 299 $ 25 $ 358 $ 1,050 $ 390 $ 72 $ 8,471 Provision for loan losses (254 ) 252 123 (464 ) (2,871 ) 96 6 48 1,384 296 29 (1,355 ) Charge-offs (161 ) (193 ) (292 ) - (15 ) (16 ) - - (161 ) (852 ) (201 ) (50 ) (1,941 ) Recoveries 487 263 123 - 98 1,727 - 1 198 69 57 64 3,087 Net (charge-offs) recoveries 326 70 (169 ) - 83 1,711 - 1 37 (783 ) (144 ) 14 1,146 Ending balance $ 1,563 $ 721 $ 1,751 $ - $ 458 $ 591 $ 395 $ 32 $ 443 $ 1,651 $ 542 $ 115 $ 8,262 PCI Impairment Allowance for Loan Losses: Balance, beginning of year $ - $ - $ 360 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 360 PCI impairment charge-offs - - (6 ) - - - - - (1 ) (144 ) - - (151 ) PCI impairment recoveries - - - - - - - - - - - - - Net PCI impairment charge-offs - - (6 ) - - - - - (1 ) (144 ) - - (151 ) PCI provision for loan losses - - (354 ) - - - - - 1 144 - - (209 ) Benefit attributable to FDIC loss share agreements - - 278 - - - - - - - - - 278 Total provision for loan losses charged to operations - - (76 ) - - - - - 1 144 - - 69 Provision for loan losses recorded through FDIC loss share receivable - - (278 ) - - - - - - - - - (278 ) Ending balance $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Total Allowance for Loan Losses $ 1,563 $ 721 $ 1,751 $ - $ 458 $ 591 $ 395 $ 32 $ 443 $ 1,651 $ 542 $ 115 $ 8,262 For the year ended December 31, 2013 Allowance for Loan Losses, excluding PCI: Balance, beginning of year $ 849 $ 496 $ 1,102 $ 4,157 $ - $ - $ - $ 8 $ 454 $ 1,463 $ 1,046 $ 49 $ 9,624 Provision for loan losses 1,693 (52 ) 933 (4,157 ) 705 1,031 299 16 319 359 (673 ) 31 504 Charge-offs (1,238 ) (52 ) (718 ) - (87 ) (6 ) - - (831 ) (838 ) (44 ) (64 ) (3,878 ) Recoveries 187 7 480 - 221 726 - 1 416 66 61 56 2,221 Net (charge-offs) recoveries (1,051 ) (45 ) (238 ) - 134 720 - 1 (415 ) (772 ) 17 (8 ) (1,657 ) Ending balance $ 1,491 $ 399 $ 1,797 $ - $ 839 $ 1,751 $ 299 $ 25 $ 358 $ 1,050 $ 390 $ 72 $ 8,471 PCI Impairment Allowance for Loan Losses: Balance, beginning of year $ 225 $ - $ - $ 542 $ - $ - $ - $ - $ 200 $ - $ - $ - $ 967 PCI impairment charge-offs (216 ) - (16 ) (177 ) - - - (386 ) (311 ) - (233 ) (36 ) (1,375 ) PCI impairment recoveries - - - 25 - - - - - - - - 25 Net PCI impairment charge-offs (216 ) - (16 ) (152 ) - - - (386 ) (311 ) - (233 ) (36 ) (1,350 ) PCI provision for loan losses (9 ) - 376 (390 ) - - - 386 111 - 233 36 743 Benefit attributable to FDIC loss share agreements (104 ) - (205 ) (192 ) - - - - - - - - (501 ) Total provision for loan losses charged to operations (113 ) - 171 (582 ) - - - 386 111 - 233 36 242 Provision for loan losses recorded through FDIC loss share receivable 104 - 205 192 - - - - - - - - 501 Ending balance $ - $ - $ 360 $ - $ - $ - $ - $ - $ - $ - $ - $ - $ 360 Total Allowance for Loan Losses $ 1,491 $ 399 $ 2,157 $ - $ 839 $ 1,751 $ 299 $ 25 $ 358 $ 1,050 $ 390 $ 72 $ 8,831 Commercial and industrial CRE - owner-occupied CRE - investor income producing AC&D-1-4 family construction AC&D- lots, land, & development AC&D- CRE Other commercial Residential mortgage HELOC Residential construction Other loans to individuals Total At December 31, 2015 Allowance for Loan Losses: Individually evaluated for impairment $ - $ - $ - $ - $ - $ - $ - $ - $ 192 $ - $ - $ 192 Collectively evaluated for impairment 1,821 1,135 2,099 247 278 679 69 672 1,145 461 266 8,872 1,821 1,135 2,099 247 278 679 69 672 1,337 461 266 9,064 Purchased credit-impaired - - - - - - - - - - - - Total $ 1,821 $ 1,135 $ 2,099 $ 247 $ 278 $ 679 $ 69 $ 672 $ 1,337 $ 461 $ 266 $ 9,064 Recorded Investment in Loans: Individually evaluated for impairment $ - $ 1,266 $ 440 $ - $ 723 $ - $ - $ 1,304 $ 1,381 $ 238 $ - $ 5,352 Collectively evaluated for impairment 242,082 308,568 473,299 31,797 38,891 87,452 6,731 199,160 154,417 68,248 28,300 1,638,945 242,082 309,834 473,739 31,797 39,614 87,452 6,731 200,464 155,798 68,486 28,300 1,644,297 Purchased credit-impaired 4,825 21,388 32,371 465 4,797 - 1,870 23,420 1,580 3,685 516 94,917 Total $ 246,907 $ 331,222 $ 506,110 $ 32,262 $ 44,411 $ 87,452 $ 8,601 $ 223,884 $ 157,378 $ 72,171 $ 28,816 $ 1,739,214 Commercial and industrial CRE - owner-occupied CRE - investor income producing AC&D-1-4 family construction AC&D- lots, land, & development AC&D- CRE Other commercial Residential mortgage HELOC Residential construction Other loans to individuals Total At December 31, 2014 Allowance for Loan Losses: Individually evaluated for impairment $ 44 $ 18 $ 57 $ - $ 11 $ - $ 19 $ 138 $ 382 $ 4 $ 12 $ 685 Collectively evaluated for impairment 1,519 703 1,694 458 580 395 13 305 1,269 538 103 7,577 1,563 721 1,751 458 591 395 32 443 1,651 542 115 8,262 Purchased credit-impaired - - - - - - - - - - - - Total $ 1,563 $ 721 $ 1,751 $ 458 $ 591 $ 395 $ 32 $ 443 $ 1,651 $ 542 $ 115 $ 8,262 Recorded Investment in Loans: Individually evaluated for impairment $ 376 $ 2,889 $ 1,271 $ - $ 1,073 $ - $ 143 $ 2,525 $ 2,481 $ 369 $ 90 $ 11,217 Collectively evaluated for impairment 167,858 300,339 425,510 28,887 40,710 71,478 3,715 173,895 151,082 48,939 21,738 1,434,151 168,234 303,228 426,781 28,887 41,783 71,478 3,858 176,420 153,563 49,308 21,828 1,445,368 Purchased credit-impaired 5,552 30,554 43,866 514 13,660 112 1,187 28,730 1,734 6,574 758 133,241 Total $ 173,786 $ 333,782 $ 470,647 $ 29,401 $ 55,443 $ 71,590 $ 5,045 $ 205,150 $ 155,297 $ 55,882 $ 22,586 $ 1,578,609 The Company’s loan loss allowance methodology includes four components, as described below: 1) Specific Reserve Component In the second quarter of 2015 as part of management’s annual review of the allowance for loan loss methodology, management modified the methodology used for the determination of allowance for loan losses to collectively review impaired loans with a balance of less than or equal to $150 thousand. These loans are no longer individually reviewed for specific impairment but rather are reviewed on a pooled basis in a manner consistent with unimpaired loans with additional qualitative factors applied when necessary to reflect the additional risk characteristics of these loans. This change in methodology resulted in decrease in specific reserves and an increase in the quantitative and qualitative reserve components. 2) Quantitative Reserve Component The historical loss experience of the Company is collected quarterly by evaluating internal loss data. The estimated historical loss rates are grouped by loan product type. The Company utilizes average historical losses to represent management’s estimate of losses inherent in a particular portfolio. The historical look back period is estimated by loan type, and the Company applies the appropriate historical loss period which best reflects the inherent loss in the applicable portfolio considering prevailing market conditions. The historic look back periods utilized by management for all loan types was 15 quarters for both 2015 and 2014. The Company also performs a quantitative calculation on the acquired purchased performing loan portfolio. There is no allowance for loan losses established at the acquisition date for purchased performing loans. The historical loss experience discussed above is applied to the acquired purchased performing loan portfolio and the result is compared to the remaining fair value mark on this portfolio. A provision for loan losses is recorded for any further deterioration in these loans subsequent to the acquisition. This analysis indicated a need for a $178 thousand and $117 thousand provision for loan losses for the acquired purchased performing portfolio at December 31, 2015 and 2014, respectively. The remaining mark on the acquired purchased performing loan portfolio was $2.1 million and $3.0 million at December 31, 2015 and 2014, respectively. 3) Qualitative Reserve Compone nt i. Portfolio trends, which may relate to such factors as type or level of loan origination activity, changes in asset quality (i.e., past due, special mention, non-performing) and/or changes in collateral values; ii. Portfolio concentrations, which may relate to individual borrowers and/or guarantors, geographic regions, industry sectors, loan types and/or other factors; iii. Economic and market trends, which may relate to trends and/or levels of gross domestic production, unemployment, bankruptcies, foreclosures, housing starts, housing prices, equity prices, competitor activities and/or other factors; iv. Changes in lending practices, which may relate to changes in credit policies, procedures, systems or staff; v. Changes in loan review system, which may introduce variation in loan grading, collateral adequacy and valuation and impairment classification; vi. Geographical considerations, which may relate to economic and/or environmental issues unique to a geographical area including but not limited to elimination of a major employer, natural disaster, or long-term states of emergency; and vii. Other factors, which is intended to capture the incremental adjustment, by loan type, to internally calculated minimum reserves as well as environmental factors not specifically identified above. In addition, qualitative reserves on purchased performing loans are based on the Company’s judgment around the timing difference expected to occur between accretion of the fair market value credit adjustment and realization of actual loans losses. 4) Reserve on PCI Loans. There were no outstanding reserves on PCI loans as of December 31, 2015 and 2014. The allowance for loan losses is increased by provisions charged to operations and reduced by loans charged off, net of recoveries. The increase in the allowance for loan losses from December 31, 2014 to December 31, 2015 was a function of the following: (1) A decrease of $750 thousand in the quantitative component of the allowance due to a decrease in historical loss rates applied to the portfolio as significant charge-offs from 2011 are replaced with low loss or recovery periods in 2015. (2) An increase of $2.0 million in the qualitative component of the allowance primarily due to minimum reserve amounts applied as historical loss rates continue to decline as well as management’s decision to increase certain factors based on rapid loan growth, entrance into new markets, and caution surrounding the economic recovery. (3) A decrease of $493 thousand in specific reserves as impaired loans less than or equal to $150 thousand are no longer specifically reviewed. The Company evaluates and estimates off-balance sheet credit exposure at the same time it estimates credit losses for loans by a similar process. These estimated credit losses are not recorded as part of the allowance for loan losses, but are recorded to a separate liability account by a charge to income, if material. Loan commitments, unused lines of credit and standby letters of credit make up the off-balance sheet items reviewed for potential credit losses. At both December 31, 2015 and 2014, $125 thousand was recorded as an other liability for off-balance sheet credit exposure. Credit Quality Indicators - The following are the definitions of the Company's credit quality indicators: Pass: Loans in classes that comprise the commercial and consumer portfolio segments that are not adversely rated, are contractually current as to principal and interest, and are otherwise in compliance with the contractual terms of the loan agreement. PCI loans that were recorded at estimated fair value on the acquisition date are generally assigned a “pass” loan grade because their net financial statement value is based on the present value of expected cash flows. Management believes there is a low likelihood of loss related to those loans that are considered pass. The Company's credit quality indicators are periodically updated on a case-by-case basis. The following tables present the recorded investment in the Company's loans as of December 31, 2015 and 2014, by loan class and by credit quality indicator. As of December 31, 2015 Commercial CRE-Owner CRE-Investor AC&D-1-4 family construction AC&D- lots, land, & development AC&D- CRE Other Total Pass $ 243,228 $ 316,706 $ 500,964 $ 32,262 $ 43,454 $ 87,452 $ 8,467 $ 1,232,533 Special mention 3,571 11,986 3,824 - 404 - - 19,785 Classified 108 2,530 1,322 - 553 - 134 4,647 Total $ 246,907 $ 331,222 $ 506,110 $ 32,262 $ 44,411 $ 87,452 $ 8,601 $ 1,256,965 Residential Residential Other Loans to Total Mortgage HELOC Construction Individuals Consumer Pass $ 217,463 $ 150,217 $ 71,225 $ 28,762 $ 467,667 Special mention 4,690 6,213 457 23 11,383 Classified 1,731 948 489 31 3,199 Total $ 223,884 $ 157,378 $ 72,171 $ 28,816 $ 482,249 Total Loans $ 1,739,214 As of December 31, 2014 Commercial CRE-Owner CRE-Investor AC&D-1-4 family construction AC&D- lots, land, & development AC&D- CRE Other Total Pass $ 172,638 $ 328,712 $ 461,955 $ 29,401 $ 52,568 $ 71,590 $ 4,902 $ 1,121,766 Special mention 493 1,925 6,934 - 1,335 - - 10,687 Classified 655 3,145 1,758 - 1,540 - 143 7,241 Total $ 173,786 $ 333,782 $ 470,647 $ 29,401 $ 55,443 $ 71,590 $ 5,045 $ 1,139,694 Residential Residential Other Loans to Total Mortgage HELOC Construction Individuals Consumer Pass $ 202,214 $ 147,893 $ 55,290 $ 22,445 $ 427,842 Special mention 1,802 6,122 227 99 8,250 Classified 1,134 1,282 365 42 2,823 Total $ 205,150 $ 155,297 $ 55,882 $ 22,586 $ 438,915 Total Loans $ 1,578,609 Aging Analysis of Accruing and Non-Accruing Loans - 30-59 60-89 Past Due Days Days 90 Days PCI Past Due Past Due or More Loans Current Total Loans As of December 31, 2015 Commercial: Commercial and industrial $ 18 $ 28 $ 78 $ 4,825 $ 241,958 $ 246,907 CRE - owner-occupied 1,273 - 176 21,388 308,385 331,222 CRE - investor income producing - - 1,369 32,371 472,370 506,110 AC&D - 1-4 family construction - - - 465 31,797 32,262 AC&D - lots, land, & development - - - 4,797 39,614 44,411 AC&D - CRE - - - - 87,452 87,452 Other commercial - 212 - 1,870 6,519 8,601 Total commercial loans 1,291 240 1,623 65,716 1,188,095 1,256,965 Consumer: Residential mortgage 48 1,037 1,023 23,420 198,356 223,884 HELOC 132 139 204 1,580 155,323 157,378 Residential construction 12 - 306 3,685 68,168 72,171 Other loans to individuals 284 51 - 516 27,965 28,816 Total consumer loans 476 1,227 1,533 29,201 449,812 482,249 Total loans $ 1,767 $ 1,467 $ 3,156 $ 94,917 $ 1,637,907 $ 1,739,214 As of December 31, 2014 Commercial: Commercial and industrial $ 123 $ 18 $ 73 $ 5,552 $ 168,020 $ 173,786 CRE - owner-occupied - - 1,616 30,554 301,612 333,782 CRE - investor income producing - - 571 43,866 426,210 470,647 AC&D - 1-4 family construction - - - 514 28,887 29,401 AC&D - lots, land, & development - - - 13,660 41,783 55,443 AC&D - CRE - - - 112 71,478 71,590 Other commercial 40 143 - 1,187 3,675 5,045 Total commercial loans 163 161 2,260 95,445 1,041,665 1,139,694 Consumer: Residential mortgage 57 68 1,058 28,730 175,237 205,150 HELOC 343 60 228 1,734 152,932 155,297 Residential construction 157 - 341 6,574 48,810 55,882 Other loans to individuals 29 1 41 758 21,757 22,586 Total consumer loans 586 129 1,668 37,796 398,736 438,915 Total loans $ 749 $ 290 $ 3,928 $ 133,241 $ 1,440,401 $ 1,578,609 Impaired Loans December 31, 2015 December 31, 2014 Unpaid Related Unpaid Related Recorded Principal Allowance For Recorded Principal Allowance For Investment Balance Loan Losses Investment Balance Loan Losses Impaired Loans with No Related Allowance Recorded: Commercial: Commercial and industrial $ - $ - $ - $ 47 $ 126 $ - CRE - owner-occupied 1,266 1,312 - 2,753 2,841 - CRE - investor income producing 440 440 - 844 915 - AC&D - lots, land, & development 723 842 - 881 970 - Total commercial loans 2,429 2,594 - 4,525 4,852 - Consumer: Residential mortgage 1,304 1,339 - 1,135 1,222 - HELOC 157 278 - 756 1,256 - Residential construction 238 376 - 341 415 - Total consumer loans 1,699 1,993 - 2,232 2,893 - Total impaired loans with no related allowance recorded $ 4,128 $ 4,587 $ - $ 6,757 $ 7,745 $ - Impaired Loans with an Allowance Recorded: Commercial: Commercial and industrial $ - $ - $ - $ 329 $ 348 $ 44 CRE - owner-occupied - - - 136 141 18 CRE - investor income producing - - - 427 442 57 AC&D - lots, land, & development - - - 192 217 11 Other commercial - - - 143 159 19 Total commercial loans - - - 1,227 1,307 149 Consumer: Residential mortgage - - - 1,390 1,439 138 HELOC 1,224 1,248 192 1,725 1,777 382 Residential construction - - - 28 33 4 Other loans to individuals - - - 90 90 12 Total consumer loans 1,224 1,248 192 3,233 3,339 536 Total impaired loans with an allowance recorded $ 1,224 $ 1,248 $ 192 $ 4,460 $ 4,646 $ 685 Total Impaired Loans Individually Reviewed for Impairment Commercial: Commercial and industrial $ - $ - $ - $ 376 $ 474 $ 44 CRE - owner-occupied 1,266 1,312 - 2,889 2,982 18 CRE - investor income producing 440 440 - 1,271 1,357 57 AC&D - lots, land, & development 723 842 - 1,073 1,187 11 Other commercial - - - 143 159 19 Total commercial loans 2,429 2,594 - 5,752 6,159 149 Consumer: Residential mortgage 1,304 1,339 - 2,525 2,661 138 HELOC 1,381 1,526 192 2,481 3,033 382 Residential construction 238 376 - 369 448 4 Other loans to individuals - - - 90 90 12 Total consumer loans 2,923 3,241 192 5,465 6,232 536 Total Impaired Loans Individually Reviewed for Impairment $ 5,352 $ 5,835 $ 192 $ 11,217 $ 12,391 $ 685 Impaired Loans Collectively Reviewed for Impairment $ 2,429 $ 2,863 $ 368 $ - $ - $ - The average recorded investment and interest income recognized on impaired loans, by class, for the years ended December 31, 2015 and 2014 is shown in the table below. December 31, 2015 December 31, 2014 December 31, 2013 Average Interest Average Interest Average Interest Recorded Income Recorded Income Recorded Income Investment Recognized Investment Recognized Investment Recognized Impaired Loans with No Related Allowance Recorded: Commercial: Commercial and industrial $ - $ - $ 382 $ 19 $ 276 $ 5 CRE - owner-occupied 2,082 - 2,090 54 2,108 106 CRE - investor income producing 567 23 620 24 980 - AC&D - lots, land, & development 896 52 1,034 98 2,978 202 Other commercial - - 60 4 158 9 Total commercial loans 3,545 75 4,186 199 6,500 322 Consumer: Residential mortgage 941 5 1,689 31 2,688 57 HELOC 381 9 1,390 19 1,513 20 Residential construction 260 - 80 - 20 - Other loans to individuals - - 23 1 64 4 Total consumer loans 1,582 14 3,182 51 4,285 81 Total impaired loans with no related allowance recorded $ 5,127 $ 89 $ 7,368 $ 250 $ 10,785 $ 403 Impaired Loans with an Allowance Recorded: Commercial: Commercial and industrial $ - $ - $ 224 $ - $ 487 $ 2 CRE - owner-occupied - - 695 20 47 12 CRE - investor income producing - - 1,052 9 2,829 2 AC&D - 1-4 family construction - - 19 - - - AC&D - lots, land, & development 73 3 243 16 50 - Other commercial - - 176 8 22 - Total commercial loans 73 3 2,409 53 3,435 16 Consumer: Residential mortgage 542 18 1,825 42 1,282 33 HELOC 1,225 41 1,597 29 920 1 Residential construction - - 267 1 24 - Other loans to individuals - - 42 4 1 - Total consumer loans 1,767 59 3,731 76 2,227 34 Total impaired loans with an allowance recorded $ 1,840 $ 62 $ 6,140 $ 129 $ 5,662 $ 50 Total Impaired Loans Individually Reviewed for Impairment Commercial: Commercial and industrial $ - $ - $ 606 $ 19 $ 763 $ 7 CRE - owner-occupied 2,082 - 2,785 74 2,155 118 CRE - investor income producing 567 23 1,672 33 3,809 2 AC&D - 1-4 family construction - - 19 - - - AC&D - lots, land, & development 969 55 1,277 114 3,028 202 Other commercial - - 236 12 180 9 Total commercial loans 3,618 78 6,595 252 9,935 338 Consumer: Residential mortgage 1,483 23 3,514 73 3,970 90 HELOC 1,606 50 2,987 48 2,433 21 Residential construction 260 - 347 1 44 - Other loans to individuals - - 65 5 65 4 Total consumer loans 3,349 73 6,913 127 6,512 115 Total Impaired Loans Individually Reviewed for Impairment $ 6,967 $ 151 $ 13,508 $ 379 $ 16,447 $ 453 Other Impaired Loans $ 2,798 $ 39 $ - $ - $ - $ - During the year ended December 31, 2015, the Company recognized $190 thousand of interest income with respect to impaired loans, specifically accruing TDRs, within the period the loans were impaired. During the year ended December 31, 2014, the Company recognized $379 thousand of interest income with respect to impaired loans, specifically accruing TDRs, within the period the loans were impaired. During the year ended December 31, 2013, the Company recognized $453 thousand of interest income with respect to impaired loans, specifically accruing TDRs, within the period the loans were impaired. Nonaccrual and Past Due Loans - 2015 2014 Commercial: Commercial and industrial $ 97 $ 329 CRE - owner-occupied 1,266 1,616 CRE - investor income producing 318 680 AC&D - lots, land, & development 6 7 Total commercial loans 1,687 2,632 Consumer: Residential mortgage 1,333 1,549 HELOC 762 1,022 Residential construction 467 341 Other loans to individuals 77 41 Total consumer loans 2,639 2,953 Total nonaccrual loans $ 4,326 $ 5,585 Interest income included in the results of operations for 2015, 2014 and 2013, with respect to loans that subsequently went to nonaccrual, totaled $78 thousand, $158 thousand and $310 thousand, respectively. If interest on these loans had been accrued in accordance with their original terms, interest income would have increased by $1.0 million, $1.1 million and $3.0 million for the years ended December 31, 2015, 2014 and 2013, respectively. Purchased Credit-Impaired Loans – In conjunction with the Provident Community acquisition, the PCI loan portfolio was accounted for at fair value as follows: May 1, 2014 Contractual principal and interest at acquisition $ 46,177 Nonaccretable difference (10,153 ) Expected cash flows at acquisition 36,024 Accretable yield (5,589 ) Basis in PCI loans at acquisition - estimated fair value $ 30,435 A summary of changes in the accretable yield for PCI loans for the years ended December 31, 2015, 2014 and 2013 follows. Accretable yield table 2015 2014 Accretable yield, beginning of year $ 40,540 $ 39,249 Addition from the Provident Community acquisition - 5,589 Interest income (12,603 ) (15,766 ) Reclassification of nonaccretable difference due to improvement in expected cash flows 4,258 9,886 Other changes, net 314 1,582 Accretable yield, end of year $ 32,509 $ 40,540 Troubled Debt Restructuring - The Company allocated $192 thousand and $373 thousand, respectively, of specific reserves to customers whose loan terms have been modified in a TDR as of December 31, 2015 and December 31, 2014. As of December 31, 2015, the Company had 14 TDR loans totaling $3.3 million, of which $466 thousand are nonaccrual loans. As of December 31, 2014, the Company had 18 TDR loans totaling $4.1 million, of which $841 thousand are nonaccrual loans. The following table presents a breakdown of the types of concessions made by loan class during the twelve-month period ended December 31, 2015 and 2014: Year ended December 31, 2015 Year ended December 31, 2014 Number of loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Below market interest rate: AC&D- lots, land & development - $ - $ - 1 $ 184 $ 184 Total - - - 1 184 184 Extended payment terms: Commercial and industrial 1 15 15 1 10 10 CRE- owner occupied 1 206 206 - - - CRE- investor income producing 1 84 84 - - - Other commercial - - - 1 143 143 Residential mortgage 1 12 12 1 657 657 HELOC - - - 1 174 174 Total 4 317 317 4 984 984 Total 4 $ 317 $ 317 5 $ 1,168 $ 1,168 Commercial TDRs Consumer TDRs The following table presents loans modified as TDRs within the twelve months ended December 31, 2015 and 2014, and for which there was a payment default during the twelve months ended December 31, 2015 and 2014: Twelve months ended December 31, 2015 Twelve months ended December 31, 2014 Number of loans Recorded Investment Number of loans Recorded Investment Extended payment terms: CRE- investor income producing 1 $ 84 - $ - Residential mortgage 1 12 - - Residential construction - - 1 173 2 96 1 173 Total 2 $ 96 1 $ 173 The Company does not deem a TDR to be successful until it has been re-established as an accruing loan. The following table presents the successes and failures of the types of modifications indicated within the 12 months ended December 31, 2015 and 2014: Twelve Months Ended December 31, 2015 Paid in full Paying as restructured Foreclosure/Default Number of loans Recorded Investment Number of loans Recorded Investment Number of loans Recorded Investment Extended payment terms - $ - 2 $ 221 2 $ 96 Total - $ - 2 $ 221 2 $ 96 Twelve Months Ended December 31, 2014 Paid in full Paying as restructured Foreclosure/Default Number of loans Recorded Investment Number of loans Recorded Investment Number of loans Recorded Investment Below market interest rate - $ - 1 $ 222 - $ - Extended payment terms - - 3 970 2 338 Total - $ - 4 $ 1,192 2 $ 338 Related Party Loans – Loans to Directors, Executive Officers and Their Related Interests 2015 2014 Balance, beginning of year $ 14,040 $ 17,247 Disbursements 4,187 2,369 Repayments (3,823 ) (5,576 ) Balance, end of year $ 14,404 $ 14,040 At December 31, 2015, the Company had pre-approved but unused lines of credit totaling $2.9 million to related parties. |