Loans | 12 Months Ended |
Dec. 31, 2013 |
Loans [Abstract] | ' |
Loans | ' |
Note 3. | Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
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Classes of loans are as follows: |
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| | December 31, | | | | | | | | | | | | | | | | | | | | | | | | | |
| | 2013 | | | 2012 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | (Amounts In Thousands) | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | 82,138 | | | $ | 76,190 | | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial and financial | | | 166,102 | | | | 148,034 | | | | | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | 30,309 | | | | 25,788 | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, land development and commercial | | | 69,182 | | | | 79,097 | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage, farmland | | | 142,685 | | | | 113,841 | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 605,687 | | | | 583,567 | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | 105,785 | | | | 104,278 | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage, multi-family | | | 244,090 | | | | 214,812 | | | | | | | | | | | | | | | | | | | | | | | | | |
Mortgage, commercial | | | 315,187 | | | | 312,506 | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans to individuals | | | 19,824 | | | | 20,350 | | | | | | | | | | | | | | | | | | | | | | | | | |
Obligations of state and political subdivisions | | | 45,167 | | | | 43,102 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 1,826,156 | | | | 1,721,565 | | | | | | | | | | | | | | | | | | | | | | | | | |
Net unamortized fees and costs | | | 641 | | | | 597 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | 1,826,797 | | | | 1,722,162 | | | | | | | | | | | | | | | | | | | | | | | | | |
Less allowance for loan losses | | | 25,550 | | | | 25,160 | | | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 1,801,247 | | | $ | 1,697,002 | | | | | | | | | | | | | | | | | | | | | | | | | |
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Changes in the allowance for loan losses and the allowance for loan loss balance applicable to impaired loans and the related loan balance of impaired loans for the year ended December 31, 2013, 2012 and 2011 are as follows: |
|
| | Agricultural | | | Commercial and Financial | | | Real Estate: Construction | | | Real Estate: | | | Real Estate: | | | Real Estate: | | | Other | | | Total | |
and land | Mortgage, | Mortgage, 1 to 4 family | Mortgage, multi-family and |
development | farmland | | commercial |
| | (Amounts In Thousands) | |
2013 | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,653 | | | $ | 4,573 | | | $ | 3,175 | | | $ | 1,746 | | | $ | 8,088 | | | $ | 5,104 | | | $ | 821 | | | $ | 25,160 | |
Charge-offs | | | - | | | | (1,692 | ) | | | (245 | ) | | | - | | | | (887 | ) | | | (356 | ) | | | (166 | ) | | | (3,346 | ) |
Recoveries | | | 35 | | | | 1,002 | | | | 323 | | | | - | | | | 618 | | | | 464 | | | | 163 | | | | 2,605 | |
Provision | | | 1,164 | | | | 850 | | | | (335 | ) | | | 811 | | | | (755 | ) | | | (425 | ) | | | (179 | ) | | | 1,131 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 2,852 | | | $ | 4,733 | | | $ | 2,918 | | | $ | 2,557 | | | $ | 7,064 | | | $ | 4,787 | | | $ | 639 | | | $ | 25,550 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance, individually evaluated for impairment | | $ | 3 | | | $ | 16 | | | $ | - | | | $ | 14 | | | $ | 66 | | | $ | 205 | | | $ | - | | | $ | 304 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance, collectively evaluated for impairment | | $ | 2,849 | | | $ | 4,717 | | | $ | 2,918 | | | $ | 2,543 | | | $ | 6,998 | | | $ | 4,582 | | | $ | 639 | | | $ | 25,246 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan balances: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 82,138 | | | $ | 166,102 | | | $ | 99,491 | | | $ | 142,685 | | | $ | 711,472 | | | $ | 559,277 | | | $ | 64,991 | | | $ | 1,826,156 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance, individually evaluated for impairment | | $ | 120 | | | $ | 2,407 | | | $ | 1,410 | | | $ | 284 | | | $ | 4,542 | | | $ | 17,763 | | | $ | - | | | $ | 26,526 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance, collectively evaluated for impairment | | $ | 82,018 | | | $ | 163,695 | | | $ | 98,081 | | | $ | 142,401 | | | $ | 706,930 | | | $ | 541,514 | | | $ | 64,991 | | | $ | 1,799,630 | |
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| | Agricultural | | | Commercial and Financial | | | Real Estate: Construction | | | Real Estate: | | | Real Estate: | | | Real Estate: | | | Other | | | Total | |
and land | Mortgage, | Mortgage, 1 to 4 family | Mortgage, multi-family and |
development | farmland | | commercial |
| | (Amounts In Thousands) | |
2012 | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,354 | | | $ | 6,429 | | | $ | 4,994 | | | $ | 1,411 | | | $ | 9,051 | | | $ | 6,150 | | | $ | 761 | | | $ | 30,150 | |
Charge-offs | | | (12 | ) | | | (1,395 | ) | | | (1,648 | ) | | | 0 | | | | (1,448 | ) | | | (318 | ) | | | (205 | ) | | | (5,026 | ) |
Recoveries | | | 71 | | | | 1,583 | | | | 52 | | | | 0 | | | | 521 | | | | 403 | | | | 255 | | | | 2,885 | |
Provision | | | 240 | | | | (2,044 | ) | | | (223 | ) | | | 335 | | | | (36 | ) | | | (1,131 | ) | | | 10 | | | | (2,849 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 1,653 | | | $ | 4,573 | | | $ | 3,175 | | | $ | 1,746 | | | $ | 8,088 | | | $ | 5,104 | | | $ | 821 | | | $ | 25,160 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance, individually evaluated for impairment | | $ | - | | | $ | 22 | | | $ | - | | | $ | - | | | $ | 90 | | | $ | 261 | | | $ | - | | | $ | 373 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance, collectively evaluated for impairment | | $ | 1,653 | | | $ | 4,551 | | | $ | 3,175 | | | $ | 1,746 | | | $ | 7,998 | | | $ | 4,843 | | | $ | 821 | | | $ | 24,787 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan balances: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 76,190 | | | $ | 148,034 | | | $ | 104,885 | | | $ | 113,841 | | | $ | 687,845 | | | $ | 527,318 | | | $ | 63,452 | | | $ | 1,721,565 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance, individually evaluated for impairment | | $ | - | | | $ | 2,152 | | | $ | 2,978 | | | $ | 806 | | | $ | 3,565 | | | $ | 20,257 | | | $ | - | | | $ | 29,758 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance, collectively evaluated for impairment | | $ | 76,190 | | | $ | 145,882 | | | $ | 101,907 | | | $ | 113,035 | | | $ | 684,280 | | | $ | 507,061 | | | $ | 63,452 | | | $ | 1,691,807 | |
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| | Agricultural | | | Commercial and Financial | | | Real Estate: Construction | | | Real Estate: | | | Real Estate: | | | Real Estate: | | | Other | | | Total | |
and land | Mortgage, | Mortgage, 1 to | Mortgage, multi-family and |
development | farmland | 4 family | commercial |
| | (Amounts In Thousands) | |
2011 | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 2,170 | | | $ | 6,742 | | | $ | 4,394 | | | $ | 1,482 | | | $ | 7,952 | | | $ | 5,657 | | | $ | 833 | | | $ | 29,230 | |
Charge-offs | | | (81 | ) | | | (2,678 | ) | | | (549 | ) | | | (1 | ) | | | (2,892 | ) | | | (708 | ) | | | (220 | ) | | | (7,129 | ) |
Recoveries | | | 45 | | | | 896 | | | | 17 | | | | 4 | | | | 934 | | | | 298 | | | | 194 | | | | 2,388 | |
Provision | | | (780 | ) | | | 1,469 | | | | 1,132 | | | | (74 | ) | | | 3,057 | | | | 903 | | | | (46 | ) | | | 5,661 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 1,354 | | | $ | 6,429 | | | $ | 4,994 | | | $ | 1,411 | | | $ | 9,051 | | | $ | 6,150 | | | $ | 761 | | | $ | 30,150 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance, individually evaluated for impairment | | $ | 1 | | | $ | 97 | | | $ | 3 | | | $ | - | | | $ | 93 | | | $ | 65 | | | $ | - | | | $ | 259 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance, collectively evaluated for impairment | | $ | 1,353 | | | $ | 6,332 | | | $ | 4,991 | | | $ | 1,411 | | | $ | 8,958 | | | $ | 6,085 | | | $ | 761 | | | $ | 29,891 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Loan balances: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance | | $ | 68,556 | | | $ | 143,174 | | | $ | 106,816 | | | $ | 99,799 | | | $ | 682,233 | | | $ | 539,180 | | | $ | 51,745 | | | $ | 1,691,503 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance, individually evaluated for impairment | | $ | 13 | | | $ | 2,617 | | | $ | 662 | | | $ | 556 | | | $ | 4,801 | | | $ | 19,830 | | | $ | - | | | $ | 28,479 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ending balance, collectively evaluated for impairment | | $ | 68,543 | | | $ | 140,557 | | | $ | 106,154 | | | $ | 99,243 | | | $ | 677,432 | | | $ | 519,350 | | | $ | 51,745 | | | $ | 1,663,024 | |
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The Company evaluates the following loans to determine impairment: 1) all nonaccrual and TDR loans, 2) all non consumer and non 1 to 4 family residential loans with prior charge-offs, 3) all non consumer and non 1 to 4 family loan relationships classified as substandard and 4) loans with indications of or suspected deteriorating credit quality. |
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The following table presents the credit quality indicators by type of loans in each category as of December 31, 2013: |
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| | Agricultural | | | Commercial | | | Real Estate: | | | Real Estate: | | | | | | | | | | | | | | | | | |
and Financial | Construction, 1 to 4 | Construction, land | | | | | | | | | | | | | | | | |
| family residential | development and commercial | | | | | | | | | | | | | | | | |
| | (Amounts In Thousands) | | | | | | | | | | | | | | | | | |
2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | 71,370 | | | $ | 134,605 | | | $ | 26,519 | | | $ | 56,555 | | | | | | | | | | | | | | | | | |
Potential Watch | | | 3,579 | | | | 12,469 | | | | 758 | | | | 3,963 | | | | | | | | | | | | | | | | | |
Watch | | | 1,076 | | | | 12,971 | | | | 2,242 | | | | 6,854 | | | | | | | | | | | | | | | | | |
Substandard | | | 6,113 | | | | 6,057 | | | | 790 | | | | 1,810 | | | | | | | | | | | | | | | | | |
Total | | $ | 82,138 | | | $ | 166,102 | | | $ | 30,309 | | | $ | 69,182 | | | | | | | | | | | | | | | | | |
|
| | Real Estate: | | | Real Estate: | | | Real Estate: | | | Real Estate: | | | | | | | | | | | | | | | | | |
Mortgage, | Mortgage, 1 to 4 | Mortgage, 1 to 4 | Mortgage, multi- | | | | | | | | | | | | | | | | |
farmland | family first liens | family junior liens | family | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | 132,988 | | | $ | 532,921 | | | $ | 98,142 | | | $ | 196,616 | | | | | | | | | | | | | | | | | |
Potential Watch | | | 5,413 | | | | 30,454 | | | | 2,273 | | | | 28,438 | | | | | | | | | | | | | | | | | |
Watch | | | 1,795 | | | | 22,097 | | | | 3,187 | | | | 18,161 | | | | | | | | | | | | | | | | | |
Substandard | | | 2,489 | | | | 20,215 | | | | 2,183 | | | | 875 | | | | | | | | | | | | | | | | | |
Total | | $ | 142,685 | | | $ | 605,687 | | | $ | 105,785 | | | $ | 244,090 | | | | | | | | | | | | | | | | | |
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| | Real Estate: | | | Loans to | | | Obligations of state | | | Total | | | | | | | | | | | | | | | | | |
Mortgage, | individuals | and political | | | | | | | | | | | | | | | | |
commercial | | subdivisions | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | 262,252 | | | $ | 19,263 | | | $ | 43,047 | | | $ | 1,574,278 | | | | | | | | | | | | | | | | | |
Potential Watch | | | 30,140 | | | | 117 | | | | 1,061 | | | | 118,665 | | | | | | | | | | | | | | | | | |
Watch | | | 14,749 | | | | 316 | | | | 1,059 | | | | 84,507 | | | | | | | | | | | | | | | | | |
Substandard | | | 8,046 | | | | 128 | | | | - | | | | 48,706 | | | | | | | | | | | | | | | | | |
Total | | $ | 315,187 | | | $ | 19,824 | | | $ | 45,167 | | | $ | 1,826,156 | | | | | | | | | | | | | | | | | |
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The following table presents the credit quality indicators by type of loans in each category as of December 31, 2012: |
|
| | Agricultural | | | Commercial | | | Real Estate: | | | Real Estate: | | | | | | | | | | | | | | | | | |
and Financial | Construction, 1 to 4 | Construction, land | | | | | | | | | | | | | | | | |
| family residential | development and commercial | | | | | | | | | | | | | | | | |
| | (Amounts In Thousands) | | | | | | | | | | | | | | | | | |
2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | 70,821 | | | $ | 123,005 | | | $ | 20,698 | | | $ | 67,011 | | | | | | | | | | | | | | | | | |
Potential Watch | | | 1,169 | | | | 7,996 | | | | 2,232 | | | | 4,636 | | | | | | | | | | | | | | | | | |
Watch | | | 1,376 | | | | 10,927 | | | | 1,826 | | | | 3,855 | | | | | | | | | | | | | | | | | |
Substandard | | | 2,824 | | | | 6,106 | | | | 1,032 | | | | 3,595 | | | | | | | | | | | | | | | | | |
Total | | $ | 76,190 | | | $ | 148,034 | | | $ | 25,788 | | | $ | 79,097 | | | | | | | | | | | | | | | | | |
|
| Real Estate: | | Real Estate: | | Real Estate: | | Real Estate: | | | | | | | | | | | | | | | | | |
Mortgage, | Mortgage, 1 to 4 | Mortgage, 1 to 4 | Mortgage, multi-family | | | | | | | | | | | | | | | | |
farmland | family first liens | family junior liens | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | | | | | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | 106,041 | | | $ | 517,684 | | | $ | 94,219 | | | $ | 173,348 | | | | | | | | | | | | | | | | | |
Potential Watch | | | 2,434 | | | | 24,240 | | | | 3,839 | | | | 11,098 | | | | | | | | | | | | | | | | | |
Watch | | | 1,863 | | | | 21,266 | | | | 3,584 | | | | 27,936 | | | | | | | | | | | | | | | | | |
Substandard | | | 3,503 | | | | 20,377 | | | | 2,636 | | | | 2,430 | | | | | | | | | | | | | | | | | |
Total | | $ | 113,841 | | | $ | 583,567 | | | $ | 104,278 | | | $ | 214,812 | | | | | | | | | | | | | | | | | |
|
| | Real Estate: | | | Loans to | | | Obligations of state | | | Total | | | | | | | | | | | | | | | | | |
Mortgage, | individuals | and political | | | | | | | | | | | | | | | | |
commercial | | subdivisions | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Grade: | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Pass | | $ | 267,883 | | | $ | 19,763 | | | $ | 42,022 | | | $ | 1,502,495 | | | | | | | | | | | | | | | | | |
Potential Watch | | | 11,687 | | | | 118 | | | | - | | | | 69,449 | | | | | | | | | | | | | | | | | |
Watch | | | 24,890 | | | | 318 | | | | 1,080 | | | | 98,921 | | | | | | | | | | | | | | | | | |
Substandard | | | 8,046 | | | | 151 | | | | - | | | | 50,700 | | | | | | | | | | | | | | | | | |
Total | | $ | 312,506 | | | $ | 20,350 | | | $ | 43,102 | | | $ | 1,721,565 | | | | | | | | | | | | | | | | | |
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The below are descriptions of the credit quality indicators: |
|
Pass – Pass rated loans are supported by sound payment capacity, are adequately collateralized and have no apparent weaknesses that would affect the full repayment of the loan under the established terms and conditions. |
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Potential Watch – Potential watch rated loans are supported by adequate payment capacity, are adequately collateralized and are performing according to the established terms and conditions. However, the loan requires more than average monitoring due to a potential weakness. The potential watch indicator assists the Company in identifying and monitoring loans for which credit quality could deteriorate. |
|
Watch – Watch rated loans are supported by a marginal payment capacity and are marginally collateralized. There are identified weaknesses that if not monitored and corrected may adversely affect the Company’s credit position. A watch credit would typically have a weakness in one of the general categories (cash flow, collateral position or payment history) but not in all categories. |
|
Substandard – Substandard loans are not adequately supported by the paying capacity of the borrower and may be inadequately collateralized. These loans have a well-defined weakness or weaknesses. For these loans, it is more probable than not that the Company could sustain some loss if the deficiency(ies) is not corrected. |
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Past due loans as of December 31, 2013 and 2012 were as follows: |
|
| | | | | | | | 90 Days | | | | | | | | | Total | | | Accruing Loans | | | | | |
| | 30 - 59 Days | | | 60 - 89 Days | | | or More | | | Total Past | | | | | | Loans | | | Past Due 90 | | | | | |
| | Past Due | | | Past Due | | | Past Due | | | Due | | | Current | | | Receivable | | | Days or More | | | | | |
| | (Amounts In Thousands) | | | | | |
December 31, 2013: | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | 8 | | | $ | 10 | | | $ | - | | | $ | 18 | | | $ | 82,120 | | | $ | 82,138 | | | $ | - | | | | | |
Commercial and financial | | | 526 | | | | 177 | | | | 951 | | | | 1,654 | | | | 164,448 | | | | 166,102 | | | | - | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | - | | | | - | | | | - | | | | - | | | | 30,309 | | | | 30,309 | | | | - | | | | | |
Construction, land development and commercial | | | 276 | | | | 144 | | | | 731 | | | | 1,151 | | | | 68,031 | | | | 69,182 | | | | - | | | | | |
Mortgage, farmland | | | 108 | | | | - | | | | - | | | | 108 | | | | 142,577 | | | | 142,685 | | | | - | | | | | |
Mortgage, 1 to 4 family first liens | | | 4,418 | | | | 1,649 | | | | 2,223 | | | | 8,290 | | | | 597,397 | | | | 605,687 | | | | 959 | | | | | |
Mortgage, 1 to 4 family junior liens | | | 835 | | | | 43 | | | | 29 | | | | 907 | | | | 104,878 | | | | 105,785 | | | | - | | | | | |
Mortgage, multi-family | | | - | | | | 150 | | | | - | | | | 150 | | | | 243,940 | | | | 244,090 | | | | - | | | | | |
Mortgage, commercial | | | 1,350 | | | | - | | | | 493 | | | | 1,843 | | | | 313,344 | | | | 315,187 | | | | - | | | | | |
Loans to individuals | | | 7 | | | | 4 | | | | - | | | | 11 | | | | 19,813 | | | | 19,824 | | | | - | | | | | |
Obligations of state and political subdivisions | | | 14 | | | | - | | | | - | | | | 14 | | | | 45,153 | | | | 45,167 | | | | - | | | | | |
| | $ | 7,542 | | | $ | 2,177 | | | $ | 4,427 | | | $ | 14,146 | | | $ | 1,812,010 | | | $ | 1,826,156 | | | $ | 959 | | | | | |
|
| | | | | | | | 90 Days | | | | | | | | | Total | | | Accruing Loans | | | | | |
| | 30 - 59 Days | | | 60 - 89 Days | | | or More | | | Total Past | | | | | | Loans | | | Past Due 90 | | | | | |
| | Past Due | | | Past Due | | | Past Due | | | Due | | | Current | | | Receivable | | | Days or More | | | | | |
| | (Amounts In Thousands) | | | | | |
December 31, 2012: | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | 374 | | | $ | - | | | $ | - | | | $ | 374 | | | $ | 75,816 | | | $ | 76,190 | | | $ | - | | | | | |
Commercial and financial | | | 712 | | | | 100 | | | | 100 | | | | 912 | | | | 147,122 | | | | 148,034 | | | | 10 | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | - | | | | - | | | | - | | | | - | | | | 25,788 | | | | 25,788 | | | | - | | | | | |
Construction, land development and commercial | | | 909 | | | | 15 | | | | - | | | | 924 | | | | 78,173 | | | | 79,097 | | | | - | | | | | |
Mortgage, farmland | | | - | | | | - | | | | 512 | | | | 512 | | | | 113,329 | | | | 113,841 | | | | - | | | | | |
Mortgage, 1 to 4 family first liens | | | 5,433 | | | | 1,579 | | | | 2,033 | | | | 9,045 | | | | 574,522 | | | | 583,567 | | | | 1,592 | | | | | |
Mortgage, 1 to 4 family junior liens | | | 640 | | | | 43 | | | | 221 | | | | 904 | | | | 103,374 | | | | 104,278 | | | | 221 | | | | | |
Mortgage, multi-family | | | 840 | | | | - | | | | 845 | | | | 1,685 | | | | 213,127 | | | | 214,812 | | | | 592 | | | | | |
Mortgage, commercial | | | 2,060 | | | | - | | | | 1,415 | | | | 3,475 | | | | 309,031 | | | | 312,506 | | | | 228 | | | | | |
Loans to individuals | | | 22 | | | | - | | | | - | | | | 22 | | | | 20,328 | | | | 20,350 | | | | - | | | | | |
Obligations of state and political subdivisions | | | - | | | | - | | | | - | | | | - | | | | 43,102 | | | | 43,102 | | | | - | | | | | |
| | $ | 10,990 | | | $ | 1,737 | | | $ | 5,126 | | | $ | 17,853 | | | $ | 1,703,712 | | | $ | 1,721,565 | | | $ | 2,643 | | | | | |
|
The Company does not have a significant amount of loans that are past due less than 90 days where there are serious doubts as to the ability of the borrowers to comply with the loan repayment terms. |
|
Accruing loans past due 90 days or more decreased $1.68 million from December 31, 2012 to December 31, 2013. Real estate loans make up all of the nonaccrual loans as of December 31, 2013. As of December 31, 2013 and 2012, accruing loans past due 90 days or more were 0.05% and 0.15% of total loans, respectively. The average balance of the past due loans also decreased in 2013 as compared to 2012. The average 90 days or more past due loan balance per loan was $0.08 million as of December 31, 2013 compared to $0.11 million as of December 31, 2012. The loans 90 days or more past due and still accruing are believed to be adequately collateralized. Loans are placed on nonaccrual status when management believes the collection of future principal and interest is not reasonably assured. |
|
Certain impaired loan information by loan type at December 31, 2013 and 2012 was as follows: |
|
| | 31-Dec-13 | | | 31-Dec-12 | | | | | | | | | |
| | | | | Accruing loans | | | | | | | | | Accruing loans | | | | | | | | | | | | |
| | Nonaccrual | | | past due 90 | | | TDR | | | Nonaccrual | | | past due 90 | | | TDR | | | | | | | | | |
| | loans (1) | | | days or more(2) | | | loans | | | loans (1) | | | days or more(2) | | | loans | | | | | | | | | |
| | (Amounts In Thousands) | | | (Amounts In Thousands) | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | - | | | $ | - | | | $ | 120 | | | $ | - | | | $ | - | | | $ | - | | | | | | | | | |
Commercial and financial | | | 1,462 | | | | - | | | | 945 | | | | 265 | | | | 10 | | | | 1,824 | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | - | | | | - | | | | - | | | | 714 | | | | - | | | | - | | | | | | | | | |
Construction, land development and commercial | | | 1,319 | | | | - | | | | - | | | | 2,169 | | | | - | | | | 95 | | | | | | | | | |
Mortgage, farmland | | | - | | | | - | | | | 284 | | | | 512 | | | | - | | | | 294 | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 2,209 | | | | 959 | | | | 1,272 | | | | 580 | | | | 1,592 | | | | 1,065 | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | 178 | | | | - | | | | - | | | | 17 | | | | 221 | | | | 90 | | | | | | | | | |
Mortgage, multi-family | | | 456 | | | | - | | | | 5,608 | | | | 2,027 | | | | 592 | | | | 5,739 | | | | | | | | | |
Mortgage, commercial | | | 1,568 | | | | - | | | | 10,146 | | | | 1,401 | | | | 228 | | | | 10,323 | | | | | | | | | |
Loans to individuals | | | - | | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | |
| | $ | 7,192 | | | $ | 959 | | | $ | 18,375 | | | $ | 7,685 | | | $ | 2,643 | | | $ | 19,430 | | | | | | | | | |
|
-1 | There were $2.72 million and $2.69 million of TDR loans included within nonaccrual loans as of December 31, 2013 and 2012, respectively. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
-2 | There were $0.00 million and $0.26 million of TDR loans within accruing loans past due 90 days or more as of December 31, 2013 and 2012, respectively. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
The Company may modify the terms of a loan to maximize the collection of amounts due. In most cases, the modification is either a reduction in interest rate, conversion to interest only payments or an extension of the maturity date. The borrower is experiencing financial difficulties or is expected to experience financial difficulties in the near-term, so a concessionary modification is granted to the borrower that would otherwise not be considered. TDR loans accrue interest as long as the borrower complies with the revised terms and conditions and has demonstrated repayment performance at a level commensurate with the modified terms over several payment cycles. |
|
Below is a summary of information for TDR loans as of December 31, 2013 and 2012: |
|
| | 31-Dec-13 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Number of | | | Recorded | | | Commitments | | | | | | | | | | | | | | | | | | | | | |
| | contracts | | | investment | | | outstanding | | | | | | | | | | | | | | | | | | | | | |
| | | | | (Dollar Amounts In Thousands) | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | | 1 | | | $ | 120 | | | $ | 4 | | | | | | | | | | | | | | | | | | | | | |
Commercial and financial | | | 12 | | | | 2,214 | | | | 101 | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | |
Construction, land development and commercial | | | 1 | | | | 13 | | | | - | | | | | | | | | | | | | | | | | | | | | |
Mortgage, farmland | | | 1 | | | | 284 | | | | - | | | | | | | | | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 12 | | | | 1,697 | | | | - | | | | | | | | | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | - | | | | - | | | | 177 | | | | | | | | | | | | | | | | | | | | | |
Mortgage, multi-family | | | 3 | | | | 6,000 | | | | - | | | | | | | | | | | | | | | | | | | | | |
Mortgage, commercial | | | 9 | | | | 10,766 | | | | 10 | | | | | | | | | | | | | | | | | | | | | |
Loans to individuals | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | |
| | | 39 | | | $ | 21,094 | | | $ | 292 | | | | | | | | | | | | | | | | | | | | | |
|
| | 31-Dec-12 | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Number of | | | Recorded | | | Commitments | | | | | | | | | | | | | | | | | | | | | |
| | contracts | | | investment | | | outstanding | | | | | | | | | | | | | | | | | | | | | |
| | | | | (Dollar Amounts In Thousands) | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | | - | | | $ | - | | | $ | - | | | | | | | | | | | | | | | | | | | | | |
Commercial and financial | | | 11 | | | | 1,927 | | | | 15 | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | |
Construction, land development and commercial | | | 3 | | | | 401 | | | | - | | | | | | | | | | | | | | | | | | | | | |
Mortgage, farmland | | | 1 | | | | 295 | | | | - | | | | | | | | | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 8 | | | | 1,277 | | | | - | | | | | | | | | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | 2 | | | | 90 | | | | 8 | | | | | | | | | | | | | | | | | | | | | |
Mortgage, multi-family | | | 5 | | | | 7,364 | | | | - | | | | | | | | | | | | | | | | | | | | | |
Mortgage, commercial | | | 8 | | | | 10,771 | | | | - | | | | | | | | | | | | | | | | | | | | | |
Loans to individuals | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | |
| | | 38 | | | $ | 22,125 | | | $ | 23 | | | | | | | | | | | | | | | | | | | | | |
|
The following is a summary of TDR loans that were modified during the year ended December 31, 2013: |
|
| | 31-Dec-13 | | | | | | | | | | | | | | | | | | | | | |
| | | | | Pre-modification | | | Post-modification | | | | | | | | | | | | | | | | | | | | | |
| | Number of | | | recorded | | | recorded | | | | | | | | | | | | | | | | | | | | | |
| | Contracts | | | investment | | | investment | | | | | | | | | | | | | | | | | | | | | |
| | | | | ( Dollar Amounts In Thousands) | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | | 1 | | | $ | 125 | | | $ | 125 | | | | | | | | | | | | | | | | | | | | | |
Commercial and financial | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | |
Construction, land development and commercial | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | |
Mortgage, farmland | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 4 | | | | 613 | | | | 578 | | | | | | | | | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | |
Mortgage, multi-family | | | 1 | | | | 255 | | | | 255 | | | | | | | | | | | | | | | | | | | | | |
Mortgage, commercial | | | 3 | | | | 559 | | | | 559 | | | | | | | | | | | | | | | | | | | | | |
Loans to individuals | | | - | | | | - | | | | - | | | | | | | | | | | | | | | | | | | | | |
| | | 9 | | | $ | 1,552 | | | $ | 1,517 | | | | | | | | | | | | | | | | | | | | | |
|
The Bank has commitments to lend additional borrowings to TDR loan customers. These commitments are in the normal course of business and allow the borrowers to build pre-sold homes and commercial property and which increase their overall cash flow. The additional borrowings are not used to facilitate payments on these loans. |
|
There were no TDR loans modified during the year that were in payment default (defined as past due 90 days or more) as of December 31, 2013. |
|
Information regarding impaired loans as of and for the year ended December 31, 2013 is as follows: |
|
| | Recorded | | | Unpaid | | | Related | | | Average | | | Interest | | | | | | | | | | | | | |
Investment | Principal | Allowance | Recorded | Income | | | | | | | | | | | | |
| Balance | | Investment | Recognized | | | | | | | | | | | | |
| | (Amounts in Thousands) | | | | | | | | | | | | | |
2013 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | | | | | | | | | | | |
Commercial and financial | | | 1,602 | | | | 3,140 | | | | - | | | | 1,645 | | | | 45 | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | 1,270 | | | | 2,974 | | | | - | | | | 1,727 | | | | 4 | | | | | | | | | | | | | |
Construction, land development and commercial | | | 140 | | | | 140 | | | | - | | | | 229 | | | | - | | | | | | | | | | | | | |
Mortgage, farmland | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 2,597 | | | | 3,542 | | | | - | | | | 2,691 | | | | 24 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | 177 | | | | 451 | | | | - | | | | 198 | | | | - | | | | | | | | | | | | | |
Mortgage, multi-family | | | 456 | | | | 1,068 | | | | - | | | | 666 | | | | - | | | | | | | | | | | | | |
Mortgage, commercial | | | 2,494 | | | | 5,303 | | | | - | | | | 2,793 | | | | 46 | | | | | | | | | | | | | |
Loans to individuals | | | - | | | | 20 | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
| | $ | 8,736 | | | $ | 16,638 | | | $ | - | | | $ | 9,949 | | | $ | 119 | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | 120 | | | $ | 120 | | | $ | 3 | | | $ | 123 | | | $ | 5 | | | | | | | | | | | | | |
Commercial and financial | | | 805 | | | | 838 | | | | 16 | | | | 871 | | | | 46 | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
Construction, land development and commercial | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
Mortgage, farmland | | | 284 | | | | 284 | | | | 14 | | | | 289 | | | | 14 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 1,768 | | | | 1,897 | | | | 66 | | | | 1,821 | | | | 79 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
Mortgage, multi-family | | | 5,608 | | | | 5,608 | | | | 188 | | | | 5,673 | | | | 255 | | | | | | | | | | | | | |
Mortgage, commercial | | | 9,205 | | | | 9,205 | | | | 17 | | | | 9,300 | | | | 535 | | | | | | | | | | | | | |
Loans to individuals | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
| | $ | 17,790 | | | $ | 17,952 | | | $ | 304 | | | $ | 18,077 | | | $ | 934 | | | | | | | | | | | | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | 120 | | | $ | 120 | | | $ | 3 | | | $ | 123 | | | $ | 5 | | | | | | | | | | | | | |
Commercial and financial | | | 2,407 | | | | 3,978 | | | | 16 | | | | 2,516 | | | | 91 | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | 1,270 | | | | 2,974 | | | | - | | | | 1,727 | | | | 4 | | | | | | | | | | | | | |
Construction, land development and commercial | | | 140 | | | | 140 | | | | - | | | | 229 | | | | - | | | | | | | | | | | | | |
Mortgage, farmland | | | 284 | | | | 284 | | | | 14 | | | | 289 | | | | 14 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 4,365 | | | | 5,439 | | | | 66 | | | | 4,512 | | | | 103 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | 177 | | | | 451 | | | | - | | | | 198 | | | | - | | | | | | | | | | | | | |
Mortgage, multi-family | | | 6,064 | | | | 6,676 | | | | 188 | | | | 6,339 | | | | 255 | | | | | | | | | | | | | |
Mortgage, commercial | | | 11,699 | | | | 14,508 | | | | 17 | | | | 12,093 | | | | 581 | | | | | | | | | | | | | |
Loans to individuals | | | - | | | | 20 | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
| | $ | 26,526 | | | $ | 34,590 | | | $ | 304 | | | $ | 28,026 | | | $ | 1,053 | | | | | | | | | | | | | |
|
Information regarding impaired loans as of and for the year ended December 31, 2012 is as follows: |
|
| | Recorded | | | Unpaid | | | Related | | | Average | | | Interest | | | | | | | | | | | | | |
Investment | Principal | Allowance | Recorded | Income | | | | | | | | | | | | |
| Balance | | Investment | Recognized | | | | | | | | | | | | |
| | (Amounts in Thousands) | | | | | | | | | | | | | |
2012 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | | | | | | | | | | | |
Commercial and financial | | | 364 | | | | 1,911 | | | | - | | | | 750 | | | | 19 | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | 714 | | | | 946 | | | | - | | | | 1,262 | | | | - | | | | | | | | | | | | | |
Construction, land development and commercial | | | 2,264 | | | | 3,520 | | | | - | | | | 2,835 | | | | 7 | | | | | | | | | | | | | |
Mortgage, farmland | | | 806 | | | | 808 | | | | - | | | | 830 | | | | 18 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 952 | | | | 1,332 | | | | - | | | | 994 | | | | 24 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | 68 | | | | 361 | | | | - | | | | 71 | | | | 3 | | | | | | | | | | | | | |
Mortgage, multi-family | | | 2,027 | | | | 2,766 | | | | - | | | | 2,097 | | | | - | | | | | | | | | | | | | |
Mortgage, commercial | | | 2,369 | | | | 5,046 | | | | - | | | | 2,427 | | | | 52 | | | | | | | | | | | | | |
Loans to individuals | | | - | | | | 20 | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
| | $ | 9,564 | | | $ | 16,710 | | | $ | - | | | $ | 11,266 | | | $ | 123 | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | | | | | | | | | | | |
Commercial and financial | | | 1,788 | | | | 1,788 | | | | 22 | | | | 1,902 | | | | 99 | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
Construction, land development and commercial | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
Mortgage, farmland | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 2,286 | | | | 2,487 | | | | 83 | | | | 2,284 | | | | 106 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | 259 | | | | 259 | | | | 7 | | | | 262 | | | | 16 | | | | | | | | | | | | | |
Mortgage, multi-family | | | 6,331 | | | | 6,331 | | | | 241 | | | | 6,399 | | | | 320 | | | | | | | | | | | | | |
Mortgage, commercial | | | 9,530 | | | | 9,530 | | | | 20 | | | | 9,618 | | | | 568 | | | | | | | | | | | | | |
Loans to individuals | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
| | $ | 20,194 | | | $ | 20,395 | | | $ | 373 | | | $ | 20,465 | | | $ | 1,109 | | | | | | | | | | | | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | | | | | | | | | | | |
Commercial and financial | | | 2,152 | | | | 3,699 | | | | 22 | | | | 2,652 | | | | 118 | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | 714 | | | | 946 | | | | - | | | | 1,262 | | | | - | | | | | | | | | | | | | |
Construction, land development and commercial | | | 2,264 | | | | 3,520 | | | | - | | | | 2,835 | | | | 7 | | | | | | | | | | | | | |
Mortgage, farmland | | | 806 | | | | 808 | | | | - | | | | 830 | | | | 18 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 3,238 | | | | 3,819 | | | | 83 | | | | 3,278 | | | | 130 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | 327 | | | | 620 | | | | 7 | | | | 333 | | | | 19 | | | | | | | | | | | | | |
Mortgage, multi-family | | | 8,358 | | | | 9,097 | | | | 241 | | | | 8,496 | | | | 320 | | | | | | | | | | | | | |
Mortgage, commercial | | | 11,899 | | | | 14,576 | | | | 20 | | | | 12,045 | | | | 620 | | | | | | | | | | | | | |
Loans to individuals | | | - | | | | 20 | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
| | $ | 29,758 | | | $ | 37,105 | | | $ | 373 | | | $ | 31,731 | | | $ | 1,232 | | | | | | | | | | | | | |
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Information regarding impaired loans as of and for the year ended December 31, 2011 is as follows: |
|
| | Recorded | | | Unpaid | | | Related | | | Average | | | Interest | | | | | | | | | | | | | |
Investment | Principal | Allowance | Recorded | Income | | | | | | | | | | | | |
| Balance | | Investment | Recognized | | | | | | | | | | | | |
| | (Amounts in Thousands) | | | | | | | | | | | | | |
2011 | | | | | | | | | | | | | | | | | | | | | | | | | | | |
With no related allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | $ | - | | | | | | | | | | | | | |
Commercial and financial | | | 793 | | | | 1,679 | | | | - | | | | 919 | | | | - | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
Construction, land development and commercial | | | 648 | | | | 765 | | | | - | | | | 868 | | | | - | | | | | | | | | | | | | |
Mortgage, farmland | | | 556 | | | | 556 | | | | - | | | | 429 | | | | - | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 1,512 | | | | 1,905 | | | | - | | | | 1,577 | | | | 19 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | 291 | | | | 568 | | | | - | | | | 290 | | | | - | | | | | | | | | | | | | |
Mortgage, multi-family | | | 5,148 | | | | 5,757 | | | | - | | | | 4,795 | | | | 101 | | | | | | | | | | | | | |
Mortgage, commercial | | | 1,986 | | | | 4,305 | | | | - | | | | 2,125 | | | | 45 | | | | | | | | | | | | | |
Loans to individuals | | | - | | | | 21 | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
| | $ | 10,934 | | | $ | 15,556 | | | $ | - | | | $ | 11,003 | | | $ | 165 | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | 13 | | | $ | 13 | | | $ | 1 | | | $ | 13 | | | $ | 1 | | | | | | | | | | | | | |
Commercial and financial | | | 1,824 | | | | 2,954 | | | | 97 | | | | 2,670 | | | | 55 | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
Construction, land development and commercial | | | 14 | | | | 27 | | | | 3 | | | | 21 | | | | 1 | | | | | | | | | | | | | |
Mortgage, farmland | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 2,843 | | | | 3,187 | | | | 88 | | | | 3,071 | | | | 137 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | 155 | | | | 155 | | | | 5 | | | | 167 | | | | 7 | | | | | | | | | | | | | |
Mortgage, multi-family | | | 2,890 | | | | 2,890 | | | | 29 | | | | 2,914 | | | | 114 | | | | | | | | | | | | | |
Mortgage, commercial | | | 9,806 | | | | 9,806 | | | | 36 | | | | 9,910 | | | | 429 | | | | | | | | | | | | | |
Loans to individuals | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
| | $ | 17,545 | | | $ | 19,032 | | | $ | 259 | | | $ | 18,766 | | | $ | 744 | | | | | | | | | | | | | |
Total: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Agricultural | | $ | 13 | | | $ | 13 | | | $ | 1 | | | $ | 13 | | | $ | 1 | | | | | | | | | | | | | |
Commercial and financial | | | 2,617 | | | | 4,633 | | | | 97 | | | | 3,589 | | | | 55 | | | | | | | | | | | | | |
Real estate: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Construction, 1 to 4 family residential | | | - | | | | - | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
Construction, land development and commercial | | | 662 | | | | 792 | | | | 3 | | | | 889 | | | | 1 | | | | | | | | | | | | | |
Mortgage, farmland | | | 556 | | | | 556 | | | | - | | | | 429 | | | | - | | | | | | | | | | | | | |
Mortgage, 1 to 4 family first liens | | | 4,355 | | | | 5,092 | | | | 88 | | | | 4,648 | | | | 156 | | | | | | | | | | | | | |
Mortgage, 1 to 4 family junior liens | | | 446 | | | | 723 | | | | 5 | | | | 457 | | | | 7 | | | | | | | | | | | | | |
Mortgage, multi-family | | | 8,038 | | | | 8,647 | | | | 29 | | | | 7,709 | | | | 215 | | | | | | | | | | | | | |
Mortgage, commercial | | | 11,792 | | | | 14,111 | | | | 36 | | | | 12,035 | | | | 474 | | | | | | | | | | | | | |
Loans to individuals | | | - | | | | 21 | | | | - | | | | - | | | | - | | | | | | | | | | | | | |
| | $ | 28,479 | | | $ | 34,588 | | | $ | 259 | | | $ | 29,769 | | | $ | 909 | | | | | | | | | | | | | |
|
Impaired loans decreased by $3.23 million from December 31, 2012 to December 31, 2013. Impaired loans include any loan that has been placed on nonaccrual status, accruing loans past due 90 days or more and TDR loans. Impaired loans also include loans that, based on management’s evaluation of current information and events, the Bank expects to be unable to collect in full according to the contractual terms of the original loan agreement. The decrease in impaired loans is due mainly to a decrease in accruing loans past due 90 days or more of $1.68 million from December 31, 2012 to December 31, 2013. |
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For loans that are collateral dependent, losses are evaluated based on the portion of a loan that exceeds the fair market value of the collateral that can be identified as uncollectible. In general, this is the amount that the carrying value of the loan exceeds the related appraised value. Generally, it is the Company’s policy not to rely on appraisals that are older than one year prior to the date the impairment is being measured. The most recent appraisal values may be adjusted if, in the Company’s judgment, experience and other market data indicate that the property’s value, use, condition, exit market or other variable affecting its value may have changed since the appraisal was performed, consistent with the December 2006 joint interagency guidance on the allowance for loan losses. The charge off or loss adjustment supported by an appraisal is considered the minimum charge off. Any adjustments made to the appraised value are to provide additional charge off or loss allocations based on the applicable facts and circumstances. In instances where there is an estimated decline in value, either a loss allocation is provided or a charge off taken pending confirmation of the amount of the loss from an updated appraisal. Upon receipt of the new appraisals, an additional loss allocation may be provided or charge off taken based on the appraised value of the collateral. On average, appraisals are obtained within one month of order. |
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The Company has not experienced any significant time lapses in recognizing the required provisions for collateral dependent loans, nor has the Company delayed appropriate charge-offs. When an updated appraisal value has been obtained, the Company has used the appraisal amount in helping to determine the appropriate charge off or required reserve. The Company also evaluates any changes in the financial condition of the borrower and guarantors (if applicable), economic conditions, and the Company’s loss experience with the type of property in question. Any information utilized in addition to the appraisal is intended to identify additional charge-offs or provisions, not to override the appraised value. |
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The Bank regularly reviews loans in the portfolio and assesses whether the loans are impaired in accordance with ASC 310. If the loans are impaired, the Bank determines if a specific allowance is appropriate. In addition, the Bank's management also reviews and, where determined necessary, provides allowances for particular loans based upon (1) reviews of specific borrowers and (2) management’s assessment of areas that management considers are of higher credit risk, including loans that have been restructured. Loans that are determined not to be impaired and for which there are no specific allowances are classified into one or more risk categories. Based upon the risk category assigned, the Bank allocates a percentage, as determined by management, for a required allowance needed. The determination concerning the appropriate percentage begins with historical loss experience factors, which are then adjusted for levels and trends in past due loans, levels and trends in charged-off and recovered loans, trends in volume growth, trends in problem and watch loans, trends in TDR loans, local economic trends and conditions, industry and other conditions, and effects of changing interest rates. |