Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4 . LOANS RECEIVABLE Loans receivable consisted of the following at September 30, 2017 December 31, 2016 September 30 , 2017 December 31, 201 6 Real estate : One- to four-family residential $ 393,082 $ 389,107 Multifamily residential 92,837 92,460 Nonfarm nonresidential 568,318 495,173 Farmland 99,189 94,018 Construction and land development 147,071 125,785 Commercial 373,464 323,096 Consumer 36,859 36,265 Total loans receivable 1,710,820 1,555,904 Unearned discounts and net deferred loan costs 325 485 Allowance for loan and lease losses (18,682 ) (15,584 ) Loans receivable —net $ 1,692,463 $ 1,540,805 Loan Origination and Underwriting – The Bank employs several tools to manage risk in its loan portfolio. Prior to origination, a borrower’s ability to repay is analyzed by reviewing financial information with a comparison of the sustainability of these cash flows to the proposed loan terms, with consideration given to possible changes in underlying business and economic conditions. The financial strength and support offered by any guarantors to the loan is evaluated and any collateral offered is assessed using internal and external valuation resources. Finally, the credit request is compared against the Bank’s board-approved written lending policies and standards. The ongoing risk in the loan portfolio is managed through regularly reviewing loans to assess key credit elements, providing for an adequate allowance for loan losses and diversifying the portfolio based on certain metrics including industry and collateral types, loan purpose and underlying source of repayment. Real Estate Loans – The real estate loan portfolio consists primarily of single family residential, commercial real estate and construction loans. Loans in this category are differentiated by whether the property owner or parties unrelated to the borrower occupy the property. This difference can directly affect the sensitivity of the source of loan repayment to changes in interest rates and market conditions, which can impact the underlying collateral value. Therefore, the analysis of these credits focuses on current and forecasted economic trends in certain sub-markets, including residential, industrial, retail, office and multi-family segments. Changes in these segments are influenced by both local and national cycles, which may Commercial Loans – This portfolio includes loans with funds used for commercial purposes including loans to finance enterprise, including agricultural, working capital needs; equipment purchases; accounts receivable and inventory and other similar business needs. The risk of loans in this category is driven by the cash flow and creditworthiness of the borrowers, the monitoring of which occurs through the ongoing analysis of interim financial information. Also, the terms of these loans are generally shorter than credits secured by real estate, helping to reduce the impact of changes in interest rates on the Bank’s interest rate sensitivity position. Consumer Loans – Our portfolio of consumer loans generally includes loans to individuals for household, family and other personal expenditures. Proceeds from such loans are used to, among other things, fund the purchase of automobiles, recreational vehicles, boats, mobile homes and for other similar purposes. Consumer loans generally have higher interest rates. However, such loans pose additional risks of collectability and loss when compared to certain other types of loans. The borrower’s ability to repay is of primary importance in the underwriting of consumer loans. L oans sold with servicing retained are not September 30, 2017 December 31, 2016 $4.2 $14.7 September 30, 2017 2016 not As of September 30, 2017 December 31, 2016, first one four $22.6 $26.4 September 30, 2017 Purchased Loans – The Company evaluated $583.6 $595.1 $11.5 2014 310 20, Nonrefundable Fees and Other Costs The Company evaluated $364.5 $375.0 $10.5 National Bank (“Metropolitan”) in 2015 310 20, Nonrefundable Fees and Other Costs The Company evaluated $21.1 $26.9 million gross loans less $5.8 2014 310 30, Loans and Debt Securities Acquired with Deteriorated Credit Quality September 30 , 201 7 December 31 , 201 6 September 30 , 2016 One- to four-family residential $ 2,265 $ 2,714 $ 2,833 Nonfarm nonresidential 1,858 7,576 8,353 Farmland 29 53 58 Construction and land development 1,445 1,432 1,419 Commercial 524 556 570 Consumer 43 53 55 Total carrying value of PCI loans $ 6,164 $ 12,384 $ 13,288 Outstanding principal balance of PCI loans $ 8,652 $ 15,468 $ 17,676 The following table documents changes for the nine September 30, 2017 2016 310 30 201 7 201 6 Balance at January 1 $ 890 $ 1,370 Accretion (972 ) (622 ) Adjustments to accretable differences due to: Reclassification from nonaccretable difference 2,082 1,328 Changes in expected cash flows that do not affect nonaccretable differences (695 ) (868 ) Transfers to real estate owned 10 5 Balance at September 30 $ 1,315 $ 1,213 A ge analyses of loans as of the dates indicated, including both accruing and nonaccrual loans are presented below (in thousands): September 30 , 2017 30-89 Days Past Due 90 Days or More Past Due Current Total One- to four-family residential $ 2,801 $ 2,638 $ 387,643 $ 393,082 Multifamily residential -- -- 92,837 92,837 Nonfarm nonresidential 1,835 5,566 560,917 568,318 Farmland 416 550 98,223 99,189 Construction and land development 146 197 146,728 147,071 Commercial 1,276 1,137 371,051 373,464 Consumer 352 116 36,391 36,859 Total $ 6,826 $ 10,204 $ 1,693,790 $ 1,710,820 December 31, 2016 30-89 Days Past Due 90 Days or More Past Due Current Total One- to four-family residential $ 4,472 $ 2,750 $ 381,885 $ 389,107 Multifamily residential 119 -- 92,341 92,460 Nonfarm nonresidential 1,651 1,317 492,205 495,173 Farmland 131 649 93,238 94,018 Construction and land development 20 522 125,243 125,785 Commercial 413 503 322,180 323,096 Consumer 422 81 35,762 36,265 Total $ 7,228 $ 5,822 $ 1,542,854 $ 1,555,904 As of September 30, 2017 December 31, 2016, $0.5 $0.8 90 $5.6 September 30, 2017 $6.0 December 31, 2016, $4.4 $1.2 September 30, 2017 December 31, 2016, The following table presents age analyses of nonaccrual loans as of the dates indicated (in thousands): September 30 , 2017 30-89 Days Past Due 90 Days or More Past Due Current Total One- to four-family residential $ 683 $ 2,460 $ 3,748 $ 6,891 Nonfarm nonresidential 1,186 5,421 1,521 8,128 Farmland 240 550 384 1,174 Construction and land development -- 128 79 207 Commercial 42 1,008 250 1,300 Consumer 12 116 39 167 Total $ 2,163 $ 9,683 $ 6,021 $ 17,867 December 31, 2016 30-89 Days Past Due 90 Days or More Past Due Current Total One- to four-family residential $ 1,194 $ 2,332 $ 3,183 $ 6,709 Nonfarm nonresidential 94 1,156 3,927 5,177 Farmland 41 650 92 783 Construction and land development 13 450 -- 463 Commercial 229 386 3,456 4,071 Consumer 39 78 56 173 Total $ 1,610 $ 5,052 $ 10,714 $ 17,376 As of September 30, 2017 December 31, 2016, $3.0 $1.0 $0.9 $0.5 one four September 30, 2017 December 31, 2016, The following tables summarize information pertaining to impaired loans as of September 30, 2017 December 31, 2016 three nine September 30, 2017 2016 not 310 30 September 30 , 2017 December 31 , 201 6 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 $ 242 $ 220 $ 68 $ 244 $ 229 $ 74 Multifamily -- -- -- -- -- -- Nonfarm nonresidential -- -- -- -- -- -- Farmland -- -- -- -- -- -- Construction and land development -- -- -- -- -- -- Commercial 434 434 333 1,865 1,788 488 Consumer 5 5 5 5 5 5 681 659 406 2,114 2,022 567 Impaired loans without a valuation allowance: One- to four-family residential 9,060 6,862 -- 8,704 6,677 -- Multifamily -- -- -- -- -- -- Nonfarm nonresidential 10,179 8,760 -- 11,022 9,421 -- Farmland 1,214 1,174 -- 1,226 783 -- Construction and land development 370 278 -- 728 539 -- Commercial 1,409 1,152 -- 2,893 2,570 -- Consumer 174 162 -- 184 168 -- 22,406 18,388 -- 24,757 20,158 -- Total impaired loans $ 23,087 $ 19,047 $ 406 $ 26,871 $ 22,180 $ 567 Three Months Ended September 30 , 201 7 201 6 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired loans with a valuation allowance: One- to four-family residential $ 222 $ 2 $ 233 $ 2 Nonfarm nonresidential -- -- 698 -- Farmland -- -- -- -- Construction and land development -- -- -- -- Commercial 217 -- 3,209 -- Consumer 5 -- 5 -- 444 2 4,145 2 Impaired loans without a valuation allowance: One- to four-family residential 6,849 -- 7,177 -- Multifamily 60 -- 75 -- Nonfarm nonresidential 8,287 9 4,842 -- Farmland 1,099 -- 802 -- Construction and land development 282 1 576 1 Commercial 1,141 4 860 -- Consumer 174 -- 198 -- 17,892 14 14,530 1 Total impaired loans $ 18,336 $ 16 $ 18,675 $ 3 Interest based on original terms $ 255 $ 277 Interest income recognized on a cash basis on impaired loans $ -- $ -- Nine Months Ended September 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Impaired loans with a valuation allowance: One- to four-family residential $ 225 $ 5 $ 357 $ 5 Nonfarm nonresidential -- -- 1,129 -- Farmland 95 -- 118 -- Construction and land development -- -- 94 -- Commercial 997 -- 2,707 -- Consumer 5 -- 5 -- 1,322 5 4,410 5 Impaired loans without a valuation allowance: One- to four-family residential 6,777 -- 7,173 1 Multifamily 60 -- 134 -- Nonfarm nonresidential 8,861 9 4,715 -- Farmland 971 -- 730 -- Construction and land development 404 4 606 4 Commercial 1,803 13 1,438 -- Consumer 180 -- 209 -- 19,056 26 15,005 5 Total impaired loans $ 20,378 $ 31 $ 19,415 $ 10 Interest based on original terms $ 862 $ 832 Interest income recognized on a cash basis on impaired loans $ -- $ -- Credit Quality Indicators. As part of the on-going monitoring of the credit quality of the Bank’s loan portfolio, the Bank categorizes loans into risk categories based on available and relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Bank analyzes loans individually by assigning a credit risk rating to loans on at least an annual basis for non-homogeneous loans over $1.0 Pass. Loans rated as pass generally meet or exceed normal credit standards. Factors influencing the level of pass grade include repayment source and strength, collateral, borrower cash flows, existence of and strength of guarantors, industry/business sector, financial trends, performance history, etc. Special Mention. Loans rated as special mention, while still adequately protected by the borrower’s repayment capability, exhibit distinct weakening trends. If left unchecked or uncorrected, these potential weaknesses may Substandard. Loans 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 Doubtful. Loans 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. Loans rated as a loss are considered uncollectible and of such little value that continuance as an asset is not not no not may Based on analyses performed at September 30, 2017 December 31, 2016, September 30 , 2017 Pass / Not Rated Special Mention Substandard Total One- to four-family residential $ 381,310 $ 153 $ 11,619 $ 393,082 Multifamily residential 92,837 -- -- 92,837 Nonfarm nonresidential 553,832 295 14,191 568,318 Farmland 96,981 -- 2,208 99,189 Construction and land development 138,483 -- 8,588 147,071 Commercial 369,750 -- 3,714 373,464 Consumer 36,549 -- 310 36,859 Total $ 1,669,742 $ 448 $ 40,630 $ 1,710,820 December 31, 201 6 Pass / Not Rated Special Mention Substandard Total One- to four-family residential $ 375,287 $ 206 $ 13,614 $ 389,107 Multifamily residential 92,460 -- -- 92,460 Nonfarm nonresidential 473,343 314 21,516 495,173 Farmland 92,131 -- 1,887 94,018 Construction and l and development 116,269 -- 9,516 125,785 Commercial 317,069 -- 6,027 323,096 Consumer 35,953 1 311 36,265 Total $ 1,502,512 $ 521 $ 52,871 $ 1,555,904 As of September 30, 2017 December 31, 2016, not Troubled Debt Restructurings. Troubled debt restructurings (“TDRs”) are loans where the contractual terms on the loan have been modified and both of the following conditions exist: (i) the borrower is experiencing financial difficulty and (ii) the restructuring constitutes a concession that the Bank would not not The following table summarizes TDRs as of September 30, 2017 December 31, 2016 ( September 30 , 2017 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 $ 191 3 $ 93 5 $ 284 Nonfarm nonresidential 1 632 2 4,323 3 4,955 Construction and land development 1 71 1 -- 2 71 Commercial 1 286 -- -- 1 286 Consumer -- -- 1 5 1 5 Total 5 $ 1,180 7 $ 4,421 12 $ 5,601 December 31, 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 $ 197 6 $ 315 8 $ 512 Nonfarm nonresidential 1 4,244 3 410 4 4,654 Farmland -- -- 1 250 1 250 Construction and land development 1 76 2 215 3 291 Commercial 1 287 -- -- 1 287 Consumer -- -- 1 5 1 5 Total 5 $ 4,804 13 $ 1,195 18 $ 5,999 No three September 30, 2017 2016. Loans receivable that were restructured as TDRs during the nine September 30, 2017 2016 Nine Months Ended September 30, 201 7 Balance Balance at Nature of Modification Number of Loans Prior to TDR September 30, 2017 Payment Term (1) Other Nonfarm nonresidential 1 $ 642 $ 632 $ 642 $ -- Total 1 $ 642 $ 632 $ 642 $ -- _________________________ ( 1 The borrower ’s payment was lowered for the remainder of the term resulting in an extended amortization term. Nine Months Ended September 30, 201 6 Balance Balance at Nature of Modification Number of Loans Prior to TDR September 30, 201 6 Payment Term ( 2 ) Other Commercial 1 $ 35 $ -- $ 35 $ -- Total 1 $ 35 $ -- $ 35 $ -- _________________________ ( 2 Concessions represent skipped payments , maturity date extensions or amortization term extensions. The Bank had one $4.2 nine September 30, 2017 12 no three September 30, 2017 2016 nine September 30, 2016 12 As of September 30, 2017 December 31, 2016, not |