Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 5. LOANS RECEIVABLE Loans receivable consisted of the following at September 30, 2016 and December 31, 2015 (in thousands): September 30, 2016 December 31, 2015 Real estate: One- to four-family residential $ 385,126 $ 401,036 Multifamily residential 93,444 74,226 Nonfarm nonresidential 472,858 487,684 Farmland 94,187 94,235 Construction and land development 119,433 116,015 Commercial 312,957 246,304 Consumer 36,645 38,594 Total loans receivable 1,514,650 1,458,094 Unearned discounts and net deferred loan costs 516 558 Allowance for loan and lease losses (15,112 ) (14,550 ) Loans receivable—net $ 1,500,054 $ 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 September 30, 2016 and December 31, 2015 were $14.8 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 September 30, 2016 and 2015 was not significant. As of September 30, 2016 and December 31, 2015, qualifying loans collateralized by first lien one- to four-family mortgages with balances totaling approximately $27.9 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 September 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 September 30 , 2016 December 31 , 2015 September 30, 2015 One- to four-family residential $ 2,833 $ 3,189 $ 3,963 Nonfarm nonresidential 8,353 9,886 10,035 Farmland 58 70 80 Construction and land development 1,419 2,127 2,242 Commercial 570 1,012 1,020 Consumer 55 63 76 Total carrying value of PCI loans $ 13,288 $ 16,347 $ 17,416 Outstanding principal balance of PCI loans $ 17,676 $ 20,289 $ 21,732 The following table documents changes for the nine months ended September 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 (622 ) (827 ) Adjustments to accretable differences due to: Reclassification from nonaccretable difference 1,328 88 Changes in expected cash flows that do not affect nonaccretable differences (868 ) (41 ) Transfers to real estate owned 5 7 Balance at September 30 $ 1,213 $ 1,392 Age analyses of loans as of the dates indicated, including both accruing and nonaccrual loans are presented below (in thousands): September 30, 2016 30-89 Days Past Due 90 Days or More Past Due Current Total One- to four-family residential $ 2,363 $ 2,451 $ 380,312 $ 385,126 Multifamily residential -- -- 93,444 93,444 Nonfarm nonresidential 392 2,039 470,427 472,858 Farmland 986 647 92,554 94,187 Construction and land development 138 523 118,772 119,433 Commercial 1,185 1,418 310,354 312,957 Consumer 360 57 36,228 36,645 Total $ 5,424 $ 7,135 $ 1,502,091 $ 1,514,650 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 September 30, 2016 and December 31, 2015, there were $1.4 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 September 30, 2016 and December 31, 2015, respectively, with $1.2 million and $1.4 million of such restructured loans on nonaccrual status at September 30, 2016 and December 31, 2015, respectively. The following table presents age analyses of nonaccrual loans as of the dates indicated (in thousands): September 30, 2016 30-89 Days Past Due 90 Days or More Past Due Current Total One- to four-family residential $ 939 $ 1,900 $ 3,798 $ 6,637 Nonfarm nonresidential 94 1,338 4,029 5,461 Farmland -- 647 140 787 Construction and land development 42 455 -- 497 Commercial 237 1,240 2,463 3,940 Consumer 51 57 58 166 Total $ 1,363 $ 5,637 $ 10,488 $ 17,488 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 both September 30, 2016 and December 31, 2015, there were $1.8 million of loans in the process of foreclosure. The following tables summarize information pertaining to impaired loans as of September 30, 2016 and December 31, 2015 and for the three and nine months ended September 30, 2016 and 2015 (in thousands). The tables below do not include ASC 310-30 PCI loans which are disclosed separately above. September 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 $ 246 $ 232 $ 76 $ 430 $ 312 $ 83 Nonfarm nonresidential 891 690 115 2,728 2,395 522 Farmland -- -- -- 616 473 112 Construction and land development -- -- -- 215 211 89 Commercial 3,269 3,156 580 1,153 1,150 250 Consumer 5 5 5 5 5 5 4,411 4,083 776 5,147 4,546 1,061 Impaired loans without a valuation allowance: One- to four-family residential 8,584 6,604 -- 7,605 6,348 -- Multifamily -- -- -- 282 230 -- Nonfarm nonresidential 6,165 4,771 -- 5,352 4,243 -- Farmland 1,228 787 -- 796 499 -- Construction and land development 757 573 -- 686 490 -- Commercial 998 784 -- 3,293 3,085 -- Consumer 176 162 -- 188 183 -- 17,908 13,681 -- 18,202 15,078 -- Total impaired loans $ 22,319 $ 17,764 $ 776 $ 23,349 $ 19,624 $ 1,061 Three Months Ended September 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 $ 233 $ 2 $ 815 $ 2 Nonfarm nonresidential 698 -- 3,221 -- Farmland -- -- 478 -- Construction and land development -- -- 108 -- Commercial 3,209 -- 577 -- Consumer 5 -- 15 -- 4,145 2 5,214 2 Impaired loans without a valuation allowance: One- to four-family residential 7,177 -- 4,785 -- Multifamily 75 -- -- -- Nonfarm nonresidential 4,842 -- 1,373 -- Farmland 802 -- 255 -- Construction and land development 576 1 566 1 Commercial 860 -- 1,489 -- Consumer 198 -- 143 -- 14,530 1 8,611 1 Total impaired loans $ 18,675 $ 3 $ 13,825 $ 3 Interest based on original terms $ 277 $ 255 Interest income recognized on a cash basis on impaired loans $ -- $ -- Nine Months Ended September 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 $ 357 $ 5 $ 963 $ 5 Nonfarm nonresidential 1,129 -- 2,716 -- Farmland 118 -- 480 -- Construction and land development 94 -- 138 -- Commercial 2,707 -- 288 -- Consumer 5 -- 15 -- 4,410 5 4,600 5 Impaired loans without a valuation allowance: One- to four-family residential 7,173 1 4,496 1 Multifamily 134 -- -- -- Nonfarm nonresidential 4,715 -- 1,122 -- Farmland 730 -- 252 -- Construction and land development 606 4 546 5 Commercial 1,438 -- 955 -- Consumer 209 -- 89 -- 15,005 5 7,460 6 Total impaired loans $ 19,415 $ 10 $ 12,060 $ 11 Interest based on original terms $ 832 $ 780 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 September 30, 2016 and December 31, 2015, the risk categories of loans are as follows (in thousands): September 30, 2016 Pass / Not Rated Special Mention Substandard Total One- to four-family residential $ 371,070 $ 175 $ 13,881 $ 385,126 Multifamily residential 93,444 -- -- 93,444 Nonfarm nonresidential 450,162 12 22,684 472,858 Farmland 92,234 -- 1,953 94,187 Construction and land development 117,714 -- 1,719 119,433 Commercial 307,298 5 5,654 312,957 Consumer 36,332 -- 313 36,645 Total $ 1,468,254 $ 192 $ 46,204 $ 1,514,650 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 September 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 September 30, 2016 and December 31, 2015 (dollars in thousands): September 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 $ 199 6 $ 322 8 $ 521 Nonfarm nonresidential -- -- 3 421 3 421 Farmland -- -- 1 250 1 250 Construction and land development 1 77 2 220 3 297 Consumer -- -- 1 5 1 5 Total 3 $ 276 13 $ 1,218 16 $ 1,494 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 nine months ended September 30, 2015. No loans were restructured as TDRs during the three months ended September 30, 2016. Loans receivable that were restructured as TDRs during the nine months ended September 30, 2016 were as follows (dollars in thousands): Nine Months Ended September 30, 201 6 Number of Balance Balance at Nature of Modification Loans Prior to TDR September 30, 201 6 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 nine months ended September 30, 2016 or 2015 that had been modified as a TDR within 12 months or less of the payment default. |