Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 5. LOANS RECEIVABLE Loans receivable consisted of the following at December 31 201 7 201 6 Real estate: One- to four-family residential $ 391,225 $ 389,107 Multifamily residential 89,087 92,460 Nonfarm nonresidential 557,185 495,173 Farmland 96,786 94,018 Construction and land development 157,453 125,785 Commercial 345,087 323,096 Consumer 36,036 36,265 Total loans receivable 1,672,859 1,555,904 Unearned discounts and net deferred loan costs 378 485 Allowance for loan and lease losses (18,992 ) (15,584 ) Loans receivable —net $ 1,654,245 $ 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 December 31, 2017 December 31, 2016 $3.8 $14.7 December 31, 2017 2016 not As of December 31 , 2017 December 31, 2016, first one four $21.7 $26.4 December 31, 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 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 December 31, 201 7 December 31, 201 6 June 13, 2014 One- to four-family residential $ 2,210 $ 2,714 $ 4,728 Nonfarm nonresidential 1,987 7,576 10,790 Farmland 26 53 95 Construction and land development 1,442 1,432 3,432 Commercial 514 556 1,882 Consumer 41 53 178 Total carrying value of PCI loans $ 6,220 $ 12,384 $ 21,105 Outstanding principal balance of PCI loans $ 8,529 $ 15,468 $ 26,942 The following table reflects the carrying amount of the fair value adjustments for purchased loans with evidence of credit deterioration as of June 13, 2014 ( Contractually required principal and interest $ 29,704 Nonaccretable differences (6,293 ) Cash flows expected to be collected 23,411 Accretable differences (2,306 ) Day 1 Fair Value $ 21,105 The following table documents changes as of December 31, 201 7, 2016 2015 310 30 201 7 2016 2015 Balance at January 1 $ 890 $ 1,370 $ 2,165 Accretable yield acquired -- -- -- Accretion (1,259 ) (848 ) (1,062 ) Adjustments to accretable differences due to: Reclassification from nonaccretable difference 2,207 1,462 317 Changes in expected cash flows that do not affect nonaccretable differences (695 ) (1,140 ) (60 ) Transfers to real estate owned 11 46 10 Balance at December 31 $ 1,154 $ 890 $ 1,370 Age Analysis – Age analyses of loans as of the dates indicated, including both accruing and nonaccrual loans, are presented below (in thousands): December 31, 201 7 30-89 Days Past Due 90 Days or More Past Due Current Total One- to four-family residential $ 4,742 $ 3,560 $ 382,923 $ 391,225 Multifamily residential -- -- 89,087 89,087 Nonfarm nonresidential 174 6,098 550,913 557,185 Farmland 404 88 96,294 96,786 Construction and land development 60 173 157,220 157,453 Commercial 766 1,353 342,968 345,087 Consumer 561 209 35,266 36,036 Total $ 6,707 $ 11,481 $ 1,654,671 $ 1,672,859 December 31, 201 6 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 December 31, 2017 December 31, 2016, $0.5 $0.8 90 $5.6 December 31, 2017 $6.0 December 31, 2016, $4.7 $1.2 December 31, 2017 December 31, 2016, The following tables present age analyses of nonaccrual loans as of December 31, 201 7 2016 December 31, 201 7 30-89 Days Past Due 90 Days or More Past Due Current Total One- to four-family residential $ 778 $ 3,326 $ 2,957 $ 7,061 Nonfarm nonresidential 76 5,954 1,344 7,374 Farmland 223 88 346 657 Construction and land development 11 103 74 188 Commercial 76 1,238 355 1,669 Consumer 7 172 33 212 Total $ 1,171 $ 10,881 $ 5,109 $ 17,161 December 31, 201 6 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 December 31, 2017 2016, $2.6 $1.0 $1.0 $0.5 one four Impaired Loans – The following tables summarize information pertaining to impaired loans as of December 31, 2017, 2016 2015 not 310 30 As of or For the Year Ended December 31, 201 7 Unpaid Principal Balance Recorded Investment Valuation Allowance Average Recorded Investment Interest Income Recognized Impaired loans with a valuation allowance: One- to four-family residential $ 240 $ 215 $ 64 $ 223 $ 7 Nonfarm nonresidential 305 305 9 61 -- Farmland -- -- -- 76 -- Commercial 678 676 431 933 -- Consumer 5 5 5 5 -- 1,228 1,201 509 1,298 7 Impaired loans without a valuation allowance: One- to four-family residential 9,277 7,035 -- 6,828 -- Multifamily -- -- -- 48 -- Nonfarm nonresidential 9,110 7,692 -- 8,627 36 Farmland 704 657 -- 908 -- Construction and land development 353 258 -- 375 5 Commercial 1,254 993 -- 1,641 -- Consumer 220 207 -- 186 -- 20,918 16,842 -- 18,613 41 Total impaired loans $ 22,146 $ 18,043 $ 509 $ 19,911 $ 48 Interest based on original terms $ 1,145 Interest income recognized on a cash basis on impaired loans $ -- As of or For the Year Ended December 31, 2016 Unpaid Principal Balance Recorded Investment Valuation Allowance Average Recorded Investment Interest Income Recognized Impaired loans with a valuation allowance: One- to four-family residential $ 244 $ 229 $ 74 $ 332 $ 7 Nonfarm nonresidential -- -- -- 903 -- Farmland -- -- -- 95 -- Construction and land development -- -- -- 75 -- Commercial 1,865 1,788 488 2,523 -- Consumer 5 5 5 5 -- 2,114 2,022 567 3,933 7 Impaired loans without a valuation allowance: One- to four-family residential 8,704 6,677 -- 7,074 -- Multifamily -- -- -- 107 -- Nonfarm nonresidential 11,022 9,421 -- 5,656 -- Farmland 1,226 783 -- 740 -- Construction and land development 728 539 -- 593 6 Commercial 2,893 2,570 -- 1,664 -- Consumer 184 168 -- 200 -- 24,757 20,158 -- 16,034 6 Total impaired loans $ 26,871 $ 22,180 $ 567 $ 19,967 $ 13 Interest based on original terms $ 1,360 Interest income recognized on a cash basis on impaired loans $ -- As of or For the Year Ended December 31, 2015 Unpaid Principal Balance Recorded Investment Valuation Allowance Average Recorded Investment Interest Income Recognized Impaired loans with a valuation allowance: One- to four-family residential $ 430 $ 312 $ 83 $ 833 $ 7 Nonfarm nonresidential 2,728 2,395 522 2,651 -- Farmland 616 473 112 479 -- Construction and land development 215 211 89 152 -- Commercial 1,153 1,150 250 461 -- Consumer 5 5 5 13 -- 5,147 4,546 1,061 4,589 7 Impaired loans without a valuation allowance: One- to four-family residential 7,605 6,348 -- 4,902 1 Multifamily 282 230 -- 50 -- Nonfarm nonresidential 5,352 4,243 -- 1,759 -- Farmland 796 499 -- 303 -- Construction and land development 686 490 -- 535 6 Commercial 3,293 3,085 -- 1,399 -- Consumer 188 183 -- 108 -- 18,202 15,078 -- 9,056 7 Total impaired loans $ 23,349 $ 19,624 $ 1,061 $ 13,645 $ 14 Interest based on original terms $ 1,179 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 December 31, 201 7 2016, December 31, 201 7 Pass Special Mention Substandard Total One- to four-family residential $ 379,407 $ 150 $ 11,668 $ 391,225 Multifamily residential 89,087 -- -- 89,087 Nonfarm nonresidential 543,427 287 13,471 557,185 Farmland 95,114 -- 1,672 96,786 Construction and land development 148,927 -- 8,526 157,453 Commercial 314,028 18,040 13,019 345,087 Consumer 35,644 -- 392 36,036 Total $ 1,605,634 $ 18,477 $ 48,748 $ 1,672,859 December 31, 201 6 Pass 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 land 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 December 31, 201 7 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 tables summarize TDRs as of December 31, 201 7 2016: December 31, 201 7 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 $ 189 3 $ 90 5 $ 279 Nonfarm nonresidential 1 623 2 4,321 3 4,944 Construction and land development 1 70 1 -- 2 70 Commercial -- -- 1 282 1 282 Consumer -- -- 1 5 1 5 Total 4 $ 882 8 $ 4,698 12 $ 5,580 December 31, 201 6 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 Loans receivable that were restructured as TDRs during the years ended December 31, 201 7 2016 No December 31, 2015. ( Year Ended December 31, 2017 Number of Loans Balance Prior to TDR Balance at December 31, 201 7 Nature of Modification Payment Term (1) Nonfarm nonresidential 1 642 623 642 Total 1 $ 642 $ 623 $ 642 ______________________ ( 1 The borrower ’s payment was lowered for the remainder of the term resulting in an extended amortization term. Year Ended December 31, 2016 Number of Loans Balance Prior to TDR Balance at December 31, 2016 Nature of Modification Payment Term ( 2 ) One- to four-family residential 1 $ 5 $ 2 $ 5 Nonfarm nonresidential 1 4,244 4,244 4,244 Commercial 2 323 288 323 Total 4 $ 4,572 $ 4,534 $ 4,572 ______________________ ( 2 Concessions represent skipped payments/maturity date extensions, amortization term extensions. The Bank had one two $4.5 December 31, 2017 that had been modified as a TDR within 12 no December 31, 2016 2015 12 As of December 31, 201 7 2016, not |