Loans | 9 Months Ended |
Sep. 30, 2014 |
Receivables [Abstract] | ' |
Loans | ' |
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NOTE 4—LOANS |
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Loans at September 30, 2014 and December 31, 2013 were as follows: |
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| | September 30, | | | December 31, | | | | | | | | | | | | | | | | | |
2014 | 2013 | | | | | | | | | | | | | | | | |
Loans that are not PCI loans | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | $ | 213,975 | | | $ | 113,710 | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | | 218,149 | | | | 114,852 | | | | | | | | | | | | | | | | | |
Other | | | 5,671 | | | | 10,350 | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Closed-end 1-4 family | | | 128,693 | | | | 98,615 | | | | | | | | | | | | | | | | | |
Other | | | 72,737 | | | | 39,851 | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 68,693 | | | | 36,397 | | | | | | | | | | | | | | | | | |
Consumer and other | | | 7,442 | | | | 8,250 | | | | | | | | | | | | | | | | | |
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Loans before net deferred loan fees | | | 715,360 | | | | 422,025 | | | | | | | | | | | | | | | | | |
Deferred loan fees, net | | | (873 | ) | | | (721 | ) | | | | | | | | | | | | | | | | |
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Total loans that are not PCI loans | | | 714,487 | | | | 421,304 | | | | | | | | | | | | | | | | | |
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PCI loans | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | $ | 78 | | | $ | — | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | | 1,830 | | | | — | | | | | | | | | | | | | | | | | |
Other | | | 532 | | | | — | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Closed-end 1-4 family | | | 842 | | | | — | | | | | | | | | | | | | | | | | |
Other | | | 152 | | | | — | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 1,352 | | | | — | | | | | | | | | | | | | | | | | |
Consumer and other | | | 2 | | | | — | | | | | | | | | | | | | | | | | |
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Total PCI loans | | | 4,788 | | | | — | | | | | | | | | | | | | | | | | |
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Allowance for loan losses | | | (5,883 | ) | | | (4,900 | ) | | | | | | | | | | | | | | | | |
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Total loans, net of allowance for loan losses | | $ | 713,392 | | | $ | 416,404 | | | | | | | | | | | | | | | | | |
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The following table presents the activity in the allowance for loan losses by portfolio segment for the three month periods ending September 30, 2014 and 2013: |
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| | Construction | | | Commercial | | | Residential | | | Commercial | | | Consumer | | | Total | |
and Land | Real | Real | and | and |
Development | Estate | Estate | Industrial | Other |
Three Months Ending September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,910 | | | $ | 1,740 | | | $ | 1,560 | | | $ | 508 | | | $ | 53 | | | $ | 5,771 | |
Provision for loan losses | | | 231 | | | | 173 | | | | 192 | | | | 72 | | | | (4 | ) | | | 664 | |
Loans charged-off | | | — | | | | (540 | ) | | | (11 | ) | | | (4 | ) | | | — | | | | (555 | ) |
Recoveries | | | — | | | | — | | | | 3 | | | | — | | | | — | | | | 3 | |
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Total ending allowance balance | | $ | 2,141 | | | $ | 1,373 | | | $ | 1,744 | | | $ | 576 | | | $ | 49 | | | $ | 5,883 | |
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There was no allowance for loan losses for PCI loans for the three months ended September 30, 2014 or for the three months ended September 30, 2013. |
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The adequacy of the allowance for loan losses is assessed at the end of each calendar quarter. The level of the allowance is based upon evaluation of the loan portfolio, current asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers’ ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, historical loss experience, industry and peer bank loan quality indications and other pertinent factors. The impact of the three months ended activity based allowance disclosures was not material to the Company’s results of operations during the three months ended September 30, 2013. |
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The following table presents the activity in the allowance for loan losses by portfolio segment for the nine month periods ending September 30, 2014 and 2013: |
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| | Construction | | | Commercial | | | Residential | | | Commercial | | | Consumer | | | Total | |
and Land | Real | Real | and | and |
Development | Estate | Estate | Industrial | Other |
Nine Months Ending September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,552 | | | $ | 1,511 | | | $ | 1,402 | | | $ | 337 | | | $ | 98 | | | $ | 4,900 | |
Provision for loan losses | | | 589 | | | | 402 | | | | 304 | | | | 243 | | | | (49 | ) | | | 1,489 | |
Loans charged-off | | | — | | | | (540 | ) | | | (11 | ) | | | (4 | ) | | | — | | | | (555 | ) |
Recoveries | | | — | | | | — | | | | 49 | | | | — | | | | — | | | | 49 | |
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Total ending allowance balance | | $ | 2,141 | | | $ | 1,373 | | | $ | 1,744 | | | $ | 576 | | | $ | 49 | | | $ | 5,883 | |
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Nine Months Ending September 30, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | |
Beginning balance | | $ | 1,342 | | | $ | 1,267 | | | $ | 893 | | | $ | 275 | | | $ | 206 | | | $ | 3,983 | |
Provision for loan losses | | | 243 | | | | 20 | | | | 119 | | | | 131 | | | | (56 | ) | | | 457 | |
Loans charged-off | | | — | | | | — | | | | (107 | ) | | | — | | | | — | | | | (107 | ) |
Recoveries | | | — | | | | — | | | | 99 | | | | — | | | | — | | | | 99 | |
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Total ending allowance balance | | $ | 1,585 | | | $ | 1,287 | | | $ | 1,004 | | | $ | 406 | | | $ | 150 | | | $ | 4,432 | |
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There was no allowance for loan losses for PCI loans for the nine months ended September 30, 2014 or for the nine months ended September 30, 2013. |
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The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of September 30, 2014 and December 31, 2013. For purposes of this disclosure, recorded investment in loans excludes accrued interest receivable and loan fees, net due to immateriality. |
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| | Construction | | | Commercial | | | Residential | | | Commercial | | | Consumer | | | Total | |
and Land | Real | Real | and | and |
Development | Estate | Estate | Industrial | Other |
September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | — | | | $ | — | | | $ | — | | | $ | 39 | | | $ | — | | | $ | 39 | |
Collectively evaluated for impairment | | | 2,141 | | | | 1,373 | | | | 1,744 | | | | 537 | | | | 49 | | | | 5,844 | |
Purchased credit-impaired loans | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
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Total ending allowance balance | | $ | 2,141 | | | $ | 1,373 | | | $ | 1,744 | | | $ | 576 | | | $ | 49 | | | $ | 5,883 | |
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Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | — | | | $ | 835 | | | $ | — | | | $ | 59 | | | $ | — | | | $ | 894 | |
Collectively evaluated for impairment | | | 213,975 | | | | 222,985 | | | | 201,430 | | | | 68,634 | | | | 7,442 | | | | 714,466 | |
Purchased credit-impaired loans | | | 78 | | | | 2,362 | | | | 994 | | | | 1,352 | | | | 2 | | | | 4,788 | |
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Total ending loans balance | | $ | 214,053 | | | $ | 226,182 | | | $ | 202,424 | | | $ | 70,045 | | | $ | 7,444 | | | $ | 720,148 | |
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| | Construction | | | Commercial | | | Residential | | | Commercial | | | Consumer | | | Total | |
and Land | Real | Real | and | and |
Development | Estate | Estate | Industrial | Other |
December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses: | | | | | | | | | | | | | | | | | | | | | | | | |
Ending allowance balance attributable to loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | — | | | $ | 455 | | | $ | 93 | | | $ | — | | | $ | — | | | $ | 548 | |
Collectively evaluated for impairment | | | 1,552 | | | | 1,056 | | | | 1,309 | | | | 337 | | | | 98 | | | | 4,352 | |
Purchased credit-impaired loans | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
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Total ending allowance balance | | $ | 1,552 | | | $ | 1,511 | | | $ | 1,402 | | | $ | 337 | | | $ | 98 | | | $ | 4,900 | |
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Loans: | | | | | | | | | | | | | | | | | | | | | | | | |
Individually evaluated for impairment | | $ | — | | | $ | 3,361 | | | $ | 1,262 | | | $ | — | | | $ | — | | | $ | 4,623 | |
Collectively evaluated for impairment | | | 113,710 | | | | 121,841 | | | | 137,204 | | | | 36,397 | | | | 8,250 | | | | 417,402 | |
Purchased credit-impaired loans | | | — | | | | — | | | | — | | | | — | | | | — | | | | — | |
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Total ending loans balance | | $ | 113,710 | | | $ | 125,202 | | | $ | 138,466 | | | $ | 36,397 | | | $ | 8,250 | | | $ | 422,025 | |
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Loans collectively evaluated for impairment reported at September 30, 2014 include certain loans acquired from MidSouth on July 1, 2014. The acquired loans were recorded at estimated fair value at date of acquisition, which included an estimated credit discount. On July 1, 2014, acquired non-PCI loans were recorded at an estimated fair value of $178,818, comprised of contractually unpaid principal totaling $183,832 net of estimated discounts totaling $5,014 which included both credit and interest rate discount components. Management evaluated these loans for credit deterioration since acquisition and determined that no allowance for loan losses was necessary at September 30, 2014. |
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The following table presents information related to impaired loans by class of loans as of September 30, 2014 and December 31, 2013: |
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| | Unpaid | | | Recorded | | | Allowance for | | | | | | | | | | | | | |
Principal | Investment | Loan Losses | | | | | | | | | | | | |
Balance | | Allocated | | | | | | | | | | | | |
September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | |
With no allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | $ | 2,422 | | | $ | 835 | | | $ | — | | | | | | | | | | | | | |
With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | | — | | | | — | | | | — | | | | | | | | | | | | | |
Commercial and industrial | | | 59 | | | | 59 | | | | 39 | | | | | | | | | | | | | |
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Subtotal | | | 59 | | | | 59 | | | | 39 | | | | | | | | | | | | | |
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Total | | $ | 2,481 | | | $ | 894 | | | $ | 39 | | | | | | | | | | | | | |
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December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
With no allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | $ | 1,986 | | | $ | 1,986 | | | $ | — | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
1-4 family | | | 36 | | | | 36 | | | | — | | | | | | | | | | | | | |
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Subtotal | | | 2,022 | | | | 2,022 | | | | — | | | | | | | | | | | | | |
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With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | $ | 2,480 | | | $ | 1,375 | | | $ | 455 | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
1-4 family | | | 1,687 | | | | 1,226 | | | | 93 | | | | | | | | | | | | | |
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Subtotal | | | 4,167 | | | | 2,601 | | | | 548 | | | | | | | | | | | | | |
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Total | | $ | 6,189 | | | $ | 4,623 | | | $ | 548 | | | | | | | | | | | | | |
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The following table presents the average recorded investment of impaired loans by class of loans for the three and nine months ended September 30, 2014 and 2013: |
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| | Three Months Ended | | | Nine Months Ended | | | | | | | | | |
September 30, | September 30, | | | | | | | | |
Average Recorded Investment | | 2014 | | | 2013 | | | 2014 | | | 2013 | | | | | | | | | |
With no allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | | 211 | | | | — | | | | 71 | | | | — | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
1-4 family | | | — | | | | 36 | | | | — | | | | 36 | | | | | | | | | |
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Subtotal | | | 211 | | | | 36 | | | | 71 | | | | 36 | | | | | | | | | |
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With an allowance recorded: | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | | — | | | $ | 74 | | | | — | | | | 73 | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | | 1,194 | | | | 1,375 | | | | 837 | | | | 1,375 | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
1-4 family | | | — | | | | 1,226 | | | | 476 | | | | 1,226 | | | | | | | | | |
Commercial and industrial | | | 64 | | | | — | | | | 65 | | | | 20 | | | | | | | | | |
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Subtotal | | | 1,258 | | | | 2,675 | | | | 1,378 | | | | 2,694 | | | | | | | | | |
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Total | | $ | 1,469 | | | $ | 2,711 | | | $ | 1,449 | | | $ | 2,730 | | | | | | | | | |
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The impact on net interest income for these loans was not material to the Company’s results of operations for the three and nine months ended September 30, 2014 and 2013. |
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The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of September 30, 2014 and December 31, 2013: |
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| | Nonaccrual | | | Loans Past Due | | | | | | | | | | | | | | | | | |
Over 90 Days | | | | | | | | | | | | | | | | |
September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | $ | 1,628 | | | $ | — | | | | | | | | | | | | | | | | | |
Other | | | 532 | | | | — | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Closed-end1-4 family | | | 337 | | | | 411 | | | | | | | | | | | | | | | | | |
Other | | | 42 | | | | — | | | | | | | | | | | | | | | | | |
Construction and land development | | | 78 | | | | — | | | | | | | | | | | | | | | | | |
Commercial and industrial | | | 287 | | | | 41 | | | | | | | | | | | | | | | | | |
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Total | | $ | 2,904 | | | $ | 452 | | | | | | | | | | | | | | | | | |
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December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | $ | 1,375 | | | $ | — | | | | | | | | | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
1-4 family | | | 1,226 | | | | — | | | | | | | | | | | | | | | | | |
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Total | | $ | 2,601 | | | $ | — | | | | | | | | | | | | | | | | | |
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Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. |
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The following table presents the aging of the recorded investment in past due loans as of September 30, 2014 and December 31, 2013 by class of loans: |
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| | 30-59 | | | 60-89 | | | Greater | | | Total | | | Loans Not | | | Total | |
Days | Days | Than | Past Due | Past Due |
Past Due | Past Due | 89 Days | | |
| | Past Due | | |
September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | $ | — | | | $ | — | | | $ | 78 | | | $ | 78 | | | $ | 213,897 | | | $ | 213,975 | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | | — | | | | — | | | | 1,628 | | | | 1,628 | | | | 216,521 | | | | 218,149 | |
Other | | | — | | | | — | | | | 532 | | | | 532 | | | | 5,139 | | | | 5,671 | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Closed-end 1-4 family | | | 861 | | | | — | | | | 748 | | | | 1,609 | | | | 127,084 | | | | 128,693 | |
Other | | | — | | | | — | | | | 42 | | | | 42 | | | | 72,695 | | | | 72,737 | |
Commercial and industrial | | | — | | | | 32 | | | | 328 | | | | 360 | | | | 68,333 | | | | 68,693 | |
Consumer and other | | | 1 | | | | — | | | | — | | | | 1 | | | | 7,441 | | | | 7,442 | |
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| | $ | 862 | | | $ | 32 | | | $ | 3,356 | | | $ | 4,250 | | | $ | 711,110 | | | $ | 715,360 | |
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| | | | | | | | Greater | | | | | | | | | | |
| | 30-59 | | | 60-89 | | | Than | | | Total | | | Loans | | | Total | |
Days | Days | 89 Days | Past Due | Not |
Past Due | Past Due | Past Due | | Past Due |
December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | $ | — | | | $ | — | | | $ | — | | | $ | — | | | $ | 113,710 | | | $ | 113,710 | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | | 1,985 | | | | — | | | | 1,375 | | | | 3,360 | | | | 111,492 | | | | 114,852 | |
Other | | | — | | | | — | | | | — | | | | — | | | | 10,350 | | | | 10,350 | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Closed end 1-4 family | | | 245 | | | | — | | | | 1,226 | | | | 1,471 | | | | 97,144 | | | | 98,615 | |
Other | | | — | | | | — | | | | — | | | | — | | | | 39,851 | | | | 39,851 | |
Commercial and industrial | | | — | | | | — | | | | — | | | | — | | | | 36,397 | | | | 36,397 | |
Consumer and other | | | — | | | | — | | | | — | | | | — | | | | 8,250 | | | | 8,250 | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 2,230 | | | $ | — | | | $ | 2,601 | | | $ | 4,831 | | | $ | 417,194 | | | $ | 422,025 | |
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Credit Quality Indicators: The Company categorizes loans into risk categories based on 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 Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans as well as non-homogeneous residential real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: |
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Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date. |
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Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. |
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Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of September 30, 2014 and December 31, 2013: |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | Pass | | | Special | | | Substandard | | | Total | | | | | | | | | |
Mention | | | | | | | | |
September 30, 2014 | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | $ | 213,772 | | | $ | 125 | | | $ | 78 | | | $ | 213,975 | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | | 214,202 | | | | 726 | | | | 3,221 | | | | 218,149 | | | | | | | | | |
Other | | | 5,142 | | | | — | | | | 529 | | | | 5,671 | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Closed-end 1-4 family | | | 125,676 | | | | 355 | | | | 2,662 | | | | 128,693 | | | | | | | | | |
Other | | | 72,502 | | | | 87 | | | | 148 | | | | 72,737 | | | | | | | | | |
Commercial and industrial | | | 66,462 | | | | 886 | | | | 1,345 | | | | 68,693 | | | | | | | | | |
Consumer and other | | | 7,442 | | | | — | | | | — | | | | 7,442 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 705,198 | | | $ | 2,179 | | | $ | 7,983 | | | $ | 715,360 | | | | | | | | | |
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| | | | | | | | | | | | | | | | | | | | | | | | |
| | Pass | | | Special | | | Substandard | | | Total | | | | | | | | | |
Mention | | | | | | | | |
December 31, 2013 | | | | | | | | | | | | | | | | | | | | | | | | |
Construction and land development | | $ | 113,710 | | | $ | — | | | $ | — | | | $ | 113,710 | | | | | | | | | |
Commercial real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
Nonfarm, nonresidential | | | 110,938 | | | | — | | | | 3,914 | | | | 114,852 | | | | | | | | | |
Other | | | 10,350 | | | | — | | | | — | | | | 10,350 | | | | | | | | | |
Residential real estate: | | | | | | | | | | | | | | | | | | | | | | | | |
1-4 family | | | 96,823 | | | | — | | | | 1,792 | | | | 98,615 | | | | | | | | | |
Other | | | 39,851 | | | | — | | | | — | | | | 39,851 | | | | | | | | | |
Commercial and industrial | | | 36,397 | | | | — | | | | — | | | | 36,397 | | | | | | | | | |
Consumer and other | | | 8,250 | | | | — | | | | — | | | | 8,250 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | $ | 416,319 | | | $ | — | | | $ | 5,706 | | | $ | 422,025 | | | | | | | | | |
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Purchased Credit-impaired (“PCI”) loans |
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Income is recognized on PCI loans pursuant to ASC Topic 310-30. A portion of the fair value discount has been recognized as an accretable yield that is accreted into interest income over the estimated remaining life of the loans. The remaining non-accretable difference represents cash flows not expected to be collected. |
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The table below summarizes the total contractually required principal and interest cash payments, management’s estimate of expected total cash payments and carrying value of the loans as of September 30, 2014. Contractually required principal and interest payments have been adjusted for estimated prepayments. |
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| | September 30, | | | | | | | | | | | | | | | | | | | | | |
2014 | | | | | | | | | | | | | | | | | | | | |
Contractually required principal and interest | | $ | 7,535 | | | | | | | | | | | | | | | | | | | | | |
Non-accretable difference | | | (1,629 | ) | | | | | | | | | | | | | | | | | | | | |
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Cash flows expected to be collected | | | 5,906 | | | | | | | | | | | | | | | | | | | | | |
Accretable yield | | | (1,118 | ) | | | | | | | | | | | | | | | | | | | | |
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Carrying value of acquired loans | | | 4,788 | | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | | — | | | | | | | | | | | | | | | | | | | | | |
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Carrying value less allowance for loan losses | | $ | 4,788 | | | | | | | | | | | | | | | | | | | | | |
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For the three and nine months ended September 30, 2014, the Company recognized $120 in accretion income from the accretable yield related to acquired PCI loans. |
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Troubled Debt Restructurings |
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The Company’s loan portfolio contains no loans that have been modified in a troubled debt restructuring. |