39
Contractual Obligations
(dollars in thousands)
Long-termdebt obligations
36,928
$
4,000
$
2,000
$
-
$
30,928
$
Operating lease obligations
7,829
1,143
2,099
1,499
3,088
Other long-termobligations
914
914
Total
45,671
$
5,143
$
4,099
$
1,499
$
34,930
$
Payments Due by Period
Total
Less Than 1
Year
1-3 Years
3-5 Years
More Than 5
Years
Nonperforming Assets
Nonperforming assets (“NPAs”) are comprised of loans for which the Company is no longer accruing interest, and
foreclosed assets including mobile homes and OREO. If the Company grants a concession to a borrower in financial
difficulty the loan falls into the category of a troubled debt restructuring (“TDR”), which may be classified as either
nonperforming or performing depending on the loan’s accrual status. The following table presents comparative data
for the Company’s nonperforming assets and performing TDRs as of the dates noted:
Nonperforming Assets andPerforming TDRs
(dollars in thousands)
2014
2013
2012
2011
2010
Real Estate:
1-4 family residential construction
-
$
-
$
153
$
2,244
$
4,057
$
Other Construction/Land
3,547
5,528
11,163
4,083
6,185
1-4 family - closed-end
3,042
13,168
15,381
7,605
4,894
Equity Lines
1,049
778
1,026
1,309
1,239
Multi-family residential
171
-
-
2,941
-
Commercial RE- owner occupied
3,417
5,516
5,314
7,086
7,412
Commercial RE- non-owner occupied
7,754
8,058
11,642
13,958
14,704
Farmland
51
282
1,933
6,919
405
TOTAL REAL ESTATE
19,031
33,330
46,612
46,145
38,896
Agricultural
-
470
664
-
-
Commercial and Industrial
821
2,622
4,545
7,230
5,445
Direct finance leases
-
-
135
591
501
Consumer loans
826
992
1,138
2,144
1,112
TOTAL NONPERFORMINGLOANS
(1)
20,678
$
37,414
$
53,094
$
56,110
$
45,954
$
Foreclosed assets
3,991
8,185
19,754
15,364
20,691
Total nonperforming assets
24,669
$
45,599
$
72,848
$
71,474
$
66,645
$
Performing TDRs
(1)
12,359
$
15,239
$
18,652
$
36,058
$
12,465
$
Nonperforming loans as a % of total gross loans and leases
2.13%
4.66%
6.03%
7.41%
5.70%
Nonperforming assets as a % of total gross loans
and leases and foreclosed assets
2.53%
5.62%
8.10%
9.25%
8.07%
(1)
Performing TDRs are not included in nonperforming loans above, nor are they included
in the numerators used to calculate the ratios disclosed in this table.
As of December 31,
At the end of 2006, prior to the recession, NPAs totaled less than $1 million and comprised only 0.08% of total loans
and leases plus foreclosed assets. They subsequently escalated to as high as $80 million, or close to 9% of total loans
and leases plus foreclosed assets at September 30, 2009, due to deterioration in economic conditions and the associ-
ated negative impact on our borrowers. By the end of 2014 total NPAs had declined to $24.7 million, or less than 3%
of gross loans and leases plus foreclosed assets, in response to better economic conditions and our concerted efforts
to improve credit quality. This contraction in NPAs includes a drop of $21 million, or 46%, during 2014, comprised
of a $17 million reduction in nonperforming loans and a $4 million reduction in foreclosed assets. The balance of
nonperforming loans at December 31, 2014 includes $4.8 million in TDRs and other loans that were paying as agreed
under modified terms or forbearance agreements but were still classified as nonperforming. We also had $12.4
million in loans classified as performing TDRs for which we were still accruing interest at December 31, 2014, a
reduction of $2.9 million, or 19%, relative to performing TDRs at December 31, 2013. Notes 2 and 4 to the
consolidated financial statements provide a more comprehensive disclosure of TDR balances and activity within
recent periods.
