37
deferred loan origination costs. Although not reflected in the loan totals below and not currently comprising a mate-
rial part of our lending activities, the Company occasionally originates and sells, or participates out portions of, loans
to non-affiliated investors.
Loan andLease Distribution
(dollars in thousands)
2014
2013
2012
2011
2010
Real Estate:
1-4 family residential construction
5,858
$
1,720
$
3,174
$
8,488
$
13,866
$
Other Construction/Land
19,908
25,531
28,002
40,060
52,047
1-4 family - closed-end
114,259
87,024
99,917
104,953
105,459
Equity Lines
49,717
53,723
61,463
66,497
70,783
Multi-family residential
18,718
8,485
5,960
8,179
10,962
Commercial RE- owner occupied
218,654
186,012
182,614
183,070
187,970
Commercial RE- non-owner occupied
132,077
106,840
92,808
105,843
120,500
Farmland
145,039
108,504
71,851
60,142
61,293
Total Real Estate
704,230
577,839
545,789
577,232
622,880
Agricultural
27,746
25,180
22,482
17,078
13,457
Commercial and Industrial
113,771
103,262
112,328
98,933
110,846
Mortgage Warehouse Lines
106,021
73,425
170,324
28,224
12,772
Consumer loans
18,885
23,536
28,872
36,124
45,585
Total Loans andLeases
970,653
$
803,242
$
879,795
$
757,591
$
805,540
$
Percentage of Total Loans andLeases
Real Estate:
1-4 family residential construction
0.60%
0.21%
0.35%
1.12%
1.72%
Other Construction/land
2.05%
3.18%
3.18%
5.29%
6.46%
1-4 family - closed-end
11.77%
10.83%
11.36%
13.85%
13.09%
Equity Lines
5.12%
6.69%
6.99%
8.78%
8.79%
Multi-family residential
1.93%
1.06%
0.68%
1.08%
1.36%
Commercial RE- owner occupied
22.53%
23.16%
20.76%
24.16%
23.33%
Commercial RE- non-owner occupied
13.61%
13.30%
10.55%
13.97%
14.96%
Farmland
14.94%
13.51%
8.17%
7.94%
7.61%
Total Real Estate
72.55%
71.94%
62.04%
76.19%
77.32%
Agricultural
2.86%
3.13%
2.56%
2.25%
1.67%
Commercial and Industrial
11.72%
12.86%
12.76%
13.06%
13.76%
Mortgage Warehouse Lines
10.92%
9.14%
19.36%
3.73%
1.59%
Consumer loans
1.95%
2.93%
3.28%
4.77%
5.66%
100.00% 100.00% 100.00% 100.00% 100.00%
As of December 31,
Excluding the fluctuations caused by variability in outstanding balances on mortgage warehouse lines, the Company
experienced limited growth or runoff in loan and lease balances from 2010 through 2013 due to reductions associated
with the resolution of impaired loans, weak loan demand, stringent underwriting standards, and intense competition.
In 2014, however, net growth in outstanding balances totaled $167 million, or 21%, with only $33 million of that
growth coming from mortgage warehouse loans. The Company’s loan growth in 2014 includes $62 million in SCVB
loans, the purchase of $33 million in residential mortgage loans, and strong organic growth in agricultural real estate
loans, commercial real estate loans, and commercial loans. Reclassifications made in the course of our core
conversion contributed to the increase in real estate loans but understate the true increase in commercial loans.
Real estate loans classified as 1-4 family closed-end loans increased $27 million, or 31%, due to the aforementioned
purchase of well-underwritten, newer vintage residential mortgage loans which had an expected average life of about
eight years at the time of purchase. Management views the loan purchase primarily as a liquidity deployment
strategy rather than a loan growth strategy. Residential construction loans were up $4 million and multi-family
residential loans increased $10 million, but equity lines fell by $4 million, or 7%, in 2014. Aggregate commercial
real estate loans, which is the principal loan category impacted by the SCVB acquisition, increased $58 million, or
20%. We are also benefiting from escalating commercial real estate activity in certain markets in our footprint, and
as previously noted this category was favorably impacted by the reclassification of $11 million in loans as “real
estate” from “commercial and industrial” in the course of our core conversion. Real estate loans secured by farmland
