Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 5. LOANS RECEIVABLE Loans receivable consisted of the following at June 30, 2016 and December 31, 2015 (in thousands): June 30, 2016 December 31, 2015 Real estate: One- to four-family residential $ 390,066 $ 401,036 Multifamily residential 80,334 74,226 Nonfarm nonresidential 477,278 487,684 Farmland 92,452 94,235 Construction and land development 124,369 116,015 Commercial 281,874 246,304 Consumer 36,339 38,594 Total loans receivable 1,482,712 1,458,094 Unearned discounts and net deferred loan costs 677 558 Allowance for loan and lease losses (14,751 ) (14,550 ) Loans receivable—net $ 1,468,638 $ 1,444,102 Loan Origination and Underwriting Real Estate Loans Commercial Loans Consumer Loans Mortgage loans serviced for others are not included in the accompanying consolidated statements of financial condition. The unpaid principal balances of such loans at June 30, 2016 and December 31, 2015 were $15.2 million and $20.4 million, respectively. Servicing loans for others generally consists of collecting payments and disbursing payments to investors. Servicing income for the periods ended June 30, 2016 and 2015 was not significant. As of June 30, 2016 and December 31, 2015, qualifying loans collateralized by first lien one- to four-family mortgages with balances totaling approximately $29.4 million and $33.1 million, respectively, were held in custody by the Federal Home Loan Bank of Dallas (“FHLB”) and were pledged for outstanding advances or available for future advances. The Bank also pledged substantially all of its remaining loans at June 30, 2016 and December 31, 2015 under a blanket lien with the FHLB. Purchased Loans Nonrefundable Fees and Other Costs The Company evaluated $364.5 million of net loans ($375.0 million gross loans less $10.5 million discount) purchased in conjunction with the acquisition of Metropolitan in 2015 in accordance with the provisions of FASB ASC Topic 310-20, Nonrefundable Fees and Other Costs The Company evaluated $21.1 million of net loans ($26.9 million gross loans less $5.8 million discount) purchased in conjunction with the acquisition of FNSC in 2014 in accordance with the provisions of FASB ASC Topic 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality June 30 , 2016 December 31 , 2015 June 30, 2015 One- to four-family residential $ 2,951 $ 3,189 $ 4,049 Nonfarm nonresidential 9,446 9,886 9,299 Farmland 62 70 84 Construction and land development 1,932 2,127 3,212 Commercial 586 1,012 1,130 Consumer 62 63 84 Total carrying value of PCI loans $ 15,039 $ 16,347 $ 17,858 Outstanding principal balance of PCI loans $ 19,313 $ 20,289 $ 20,913 The following table documents changes for the six months ended June 30, 2016 and 2015 to the amount of accretable yield on loans evaluated in accordance with the provisions of FASB ASC Topic 310-30 (in thousands). 2016 2015 Balance at January 1 $ 1,370 $ 2,165 Accretion (424 ) (569 ) Adjustments to accretable differences due to: Reclassification from nonaccretable difference 573 142 Changes in expected cash flows that do not affect nonaccretable differences (582 ) (41 ) Transfers to real estate owned -- 7 Balance at June 30 $ 937 $ 1,704 Age analyses of loans as of the dates indicated, including both accruing and nonaccrual loans are presented below (in thousands): June 30, 2016 30-89 Days Past Due 90 Days or More Past Due Current Total One- to four-family residential $ 3,037 $ 2,778 $ 384,251 $ 390,066 Multifamily residential -- -- 80,334 80,334 Nonfarm nonresidential 574 4,354 472,350 477,278 Farmland 19 671 91,762 92,452 Construction and land development 133 572 123,664 124,369 Commercial 500 3,605 277,769 281,874 Consumer 243 87 36,009 36,339 Total $ 4,506 $ 12,067 $ 1,466,139 $ 1,482,712 December 31, 2015 30-89 Days Past Due 90 Days or More Past Due Current Total One- to four-family residential $ 6,051 $ 3,363 $ 391,622 $ 401,036 Multifamily residential 125 67 74,034 74,226 Nonfarm nonresidential 1,060 2,646 483,978 487,684 Farmland 42 668 93,525 94,235 Construction and land development 148 510 115,357 116,015 Commercial 1,722 336 244,246 246,304 Consumer 489 140 37,965 38,594 Total $ 9,637 $ 7,730 $ 1,440,727 $ 1,458,094 As of June 30, 2016 and December 31, 2015, there were $1.5 million and $1.0 million, respectively, of PCI loans acquired in the merger with FNSC that were 90 days or more past due and accruing and there were two non-PCI loans totaling $451,000 past due 90 days and still accruing at December 31, 2015. Restructured loans totaled $1.5 million and $1.7 million as of June 30, 2016 and December 31, 2015, respectively, with $1.2 million and $1.4 million of such restructured loans on nonaccrual status at June 30, 2016 and December 31, 2015, respectively. The following table presents age analyses of nonaccrual loans as of the dates indicated (in thousands): June 30, 2016 30-89 Days Past Due 90 Days or More Past Due Current Total One- to four-family residential $ 929 $ 2,293 $ 4,561 $ 7,783 Multifamily -- -- 149 149 Nonfarm nonresidential 344 3,576 1,699 5,619 Farmland -- 671 144 815 Construction and land development 15 479 7 501 Commercial 270 3,446 480 4,196 Consumer 40 85 114 239 Total $ 1,598 $ 10,550 $ 7,154 $ 19,302 December 31, 2015 30-89 Days Past Due 90 Days or More Past Due Current Total One- to four-family residential $ 1,419 $ 2,868 $ 2,168 $ 6,455 Multifamily -- 67 163 230 Nonfarm nonresidential 136 1,742 4,760 6,638 Farmland -- 668 305 973 Construction and land development 6 432 184 622 Commercial 23 325 3,887 4,235 Consumer 14 132 41 187 Total $ 1,598 $ 6,234 $ 11,508 $ 19,340 As of June 30, 2016 and December 31, 2015, there were $2.0 million and $1.8 million, respectively, of loans in the process of foreclosure. The following tables summarize information pertaining to impaired loans as of June 30, 2016 and December 31, 2015 and for the three and six months ended June 30, 2016 and 2015 (in thousands). The tables below do not include ASC 310-30 PCI loans which are disclosed separately above. June 30, 2016 December 31, 2015 Unpaid Principal Balance Recorded Investment Valuation Allowance Unpaid Principal Balance Recorded Investment Valuation Allowance Impaired loans with a valuation allowance: One- to four-family residential $ 249 $ 234 $ 77 $ 430 $ 312 $ 83 Nonfarm nonresidential 895 706 131 2,728 2,395 522 Farmland -- -- -- 616 473 112 Construction and land development -- -- -- 215 211 89 Commercial 3,269 3,261 685 1,153 1,150 250 Consumer 5 5 5 5 5 5 4,418 4,206 898 5,147 4,546 1,061 Impaired loans without a valuation allowance: One- to four-family residential 9,866 7,751 -- 7,605 6,348 -- Multifamily 156 149 -- 282 230 -- Nonfarm nonresidential 6,215 4,913 -- 5,352 4,243 -- Farmland 1,255 815 -- 796 499 -- Construction and land development 755 578 -- 686 490 -- Commercial 1,145 935 -- 3,293 3,085 -- Consumer 246 234 -- 188 183 -- 19,638 15,375 -- 18,202 15,078 -- Total impaired loans $ 24,056 $ 19,581 $ 898 $ 23,349 $ 19,624 $ 1,061 Three Months Ended June 30, 2016 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired loans with a valuation allowance: One- to four-family residential $ 443 $ 1 $ 901 $ 2 Nonfarm nonresidential 715 -- 2,179 -- Farmland -- -- 480 -- Construction and land development 83 -- 106 -- Commercial 3,261 -- -- -- Consumer 5 -- 15 -- 4,507 1 3,681 2 Impaired loans without a valuation allowance: One- to four-family residential 7,870 -- 4,345 -- Multifamily 153 -- -- -- Nonfarm nonresidential 4,924 -- 929 -- Farmland 817 -- 250 -- Construction and land development 681 2 527 1 Commercial 942 -- 576 -- Consumer 245 -- 104 -- 15,632 2 6,731 1 Total impaired loans $ 20,139 $ 3 $ 10,412 $ 3 Interest based on original terms $ 299 $ 189 Interest income recognized on a cash basis on impaired loans $ -- $ -- Six Months Ended June 30, 2016 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired loans with a valuation allowance: One- to four-family residential $ 399 $ 3 $ 1,002 $ 4 Nonfarm nonresidential 1,275 -- 2,194 -- Farmland 158 -- 481 -- Construction and land development 126 -- 126 -- Commercial 2,557 -- -- -- Consumer 5 -- 15 -- 4,520 3 3,818 4 Impaired loans without a valuation allowance: One- to four-family residential 7,362 -- 4,309 1 Multifamily 179 -- -- -- Nonfarm nonresidential 4,697 -- 915 -- Farmland 711 -- 250 -- Construction and land development 617 3 531 3 Commercial 1,656 -- 486 -- Consumer 224 -- 75 -- 15,446 3 6,566 4 Total impaired loans $ 19,966 $ 6 $ 10,384 $ 8 Interest based on original terms $ 604 $ 389 Interest income recognized on a cash basis on impaired loans $ -- $ -- Credit Quality Indicators. Pass. Special Mention. rated as substandard are inadequately protected by the current sound net worth and paying capacity of the borrower or the collateral pledged, if any. These assets must have a well-defined weakness based on objective evidence and be characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful. rated as doubtful have all the weaknesses inherent in a substandard asset. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances. Loss. rated as a loss are considered uncollectible and of such little value that continuance as an asset is not warranted. A loss classification does not mean that an asset has no recovery or salvage value, but that it is not practical or desirable to defer writing off or reserving all or a portion of the asset, even though partial recovery may be effected in the future. Based on analyses performed at June 30, 2016 and December 31, 2015, the risk categories of loans are as follows (in thousands): June 30, 2016 Pass / Not Rated Special Mention Substandard Total One- to four-family residential $ 372,940 $ 179 $ 16,947 $ 390,066 Multifamily residential 80,185 -- 149 80,334 Nonfarm nonresidential 454,468 13 22,797 477,278 Farmland 90,077 -- 2,375 92,452 Construction and land development 123,133 85 1,151 124,369 Commercial 275,834 3 6,037 281,874 Consumer 35,979 -- 360 36,339 Total $ 1,432,616 $ 280 $ 49,816 $ 1,482,712 December 31, 2015 Pass / Not Rated Special Mention Substandard Total One- to four-family residential $ 384,193 $ 1,098 $ 15,745 $ 401,036 Multifamily residential 74,063 -- 163 74,226 Nonfarm nonresidential 462,552 10 25,122 487,684 Farmland 91,665 1,095 1,475 94,235 Construction and land development 114,534 91 1,390 116,015 Commercial 240,209 501 5,594 246,304 Consumer 38,283 12 299 38,594 Total $ 1,405,499 $ 2,807 $ 49,788 $ 1,458,094 As of June 30, 2016 and December 31, 2015, the Bank did not have any loans classified as doubtful or loss. Troubled Debt Restructurings. The following table summarizes TDRs as of June 30, 2016 and December 31, 2015 (dollars in thousands): June 30, 2016 Number of Accruing TDR Loans Balance Number of Nonaccrual TDR Loans Balance Total Number of TDR Loans Total Balance One- to four-family residential 2 $ 202 6 $ 331 8 $ 533 Nonfarm nonresidential -- -- 3 435 3 435 Farmland -- -- 1 250 1 250 Construction and land development 1 77 2 227 3 304 Consumer -- -- 1 5 1 5 Total 3 $ 279 13 $ 1,248 16 $ 1,527 December 31, 2015 Number of Accruing TDR Loans Balance Number of Nonaccrual TDR Loans Balance Total Number of TDR Loans Total Balance One- to four-family residential 2 $ 205 6 $ 450 8 $ 655 Nonfarm nonresidential -- -- 3 461 3 461 Farmland -- -- 1 250 1 250 Construction and land development 1 79 2 242 3 321 Commercial -- -- 1 21 1 21 Consumer -- -- 1 5 1 5 Total 3 $ 284 14 $ 1,429 17 $ 1,713 No loans receivable were restructured as TDRs during the three or six months ended June 30, 2015. Loans receivable that were restructured as TDRs during the three and six months ended June 30, 2016 were as follows (dollars in thousands): Three and Six Months Ended June 30, 201 6 Balance Nature of Modification Number of Loans Prior to TDR Balance at June 30, 2016 Payment Term (1) Other Commercial 1 $ 35 $ -- $ 35 $ -- Total 1 $ 35 $ -- $ 35 $ -- _____________________________________ (1) Concessions represent skipped payments, maturity date extensions or amortization term extensions. There were no loans receivable for which a payment default occurred during the three or six months ended June 30, 2016 or 2015 that had been modified as a TDR within 12 months or less of the payment default. |