Financing Receivables [Text Block] | Note 6 – Loans and the Allowance for Loan Losses – Loans receivable at September 30, 2017 December 31 , 2016 September 30, December 31, 2017 2016 (Dollars in thousands) Real estate loans: Construction and land $ 121,377 $ 94,426 Farmland 10,469 9,217 1-4 family residential 145,911 129,052 Multi-family residential 19,750 22,737 Nonfarm nonresidential 331,053 298,057 Commercial 261,478 213,120 Consumer 47,738 44,342 Total loans held for investment 937,776 810,951 Less: Allowance for loan losses (9,241 ) (8,162 ) Net loans $ 928,535 $ 802,789 The performing 1 4 September 30, 2017 December 31, 2016. Net deferred loan origination fees were $1.3 $761,000 September 30, 2017 December 31, 2016, September 30, 2017 December 31, 2016, $187,000 $232,000, The Bank is the lead lender on participations sold, without recourse, to other financial institutions which are not approximately $67.3 $55.5 September 30, 2017 December 31, 2016, The Bank grants loans and extensions of credit to individuals and a variety of businesses and corporations in markets across Louisiana and Texas. Management segregates the loan portfolio into portfolio segments which is defined as the level at which the Bank develops and documents a systematic method for determining its allowance for loan losses. The portfolio segments are segregated based on loan types and the underlying risk factors present in each loan type. Such risk factors are periodically reviewed by management and revised as deemed appropriate. Loans acquired in business combinations are initially recorded at fair value, which includes an estimate of credit losses expected to be realized over the remaining lives of the loans and, therefore, no not Acquired loans are those associated with our acquisition of AGFC. These loans were recorded at estimated fair value at the acquisition date with no Total loans held for investment at September 30, 2017 includes $51.3 September 30, 2017 310 30, Loans and Debt Securities Acquired with Deteriorated Credit Quality 310 30” $728,000 not 310 30 $52.5 $1.9 Total loans held for investment at December 31, 2016 $65.3 December 31, 2016 carrying amount of $1.8 $65.9 $2.4 The following tables set forth, as of September 30, 2017 December 31, 2016, nts evaluated for impairment collectively and individually. The allowance for loan losses allocated to each portfolio segment is not not Allowance for Credit Losses and Recorded Investment in Loans Receivable September 30, 2017 (Dollars in thousands) Real Estate: Real Estate: Real Estate: Real Estate: Construction Real Estate: 1-4 Family Multi-family Nonfarm and Land Farmland Residential Residential Nonresidential Commercial Consumer Total Allowance for credit losses: Beginning Balance $ 933 $ 75 $ 1,228 $ 172 $ 2,314 $ 3,039 $ 401 $ 8,162 Charge-offs (2 ) - (87 ) - (617 ) (200 ) (33 ) (939 ) Recoveries 1 - 18 - 23 34 35 111 Provision 372 12 381 (13 ) 927 228 - 1,907 Ending Balance $ 1,304 $ 87 $ 1,540 $ 159 $ 2,647 $ 3,101 $ 403 $ 9,241 Ending Balance: Individually evaluated for impairment $ 22 $ - $ 341 $ - $ 110 $ 408 $ - $ 881 Collectively evaluated for impairment $ 1,282 $ 87 $ 1,165 $ 159 $ 2,537 $ 2,693 $ 403 $ 8,326 Purchased Credit Impaired (1) $ - $ - $ 34 $ - $ - $ - $ - $ 34 Loans receivable: Ending Balance $ 121,377 $ 10,469 $ 145,911 $ 19,750 $ 331,053 $ 261,478 $ 47,738 $ 937,776 Ending Balance: Individually evaluated for impairment $ 99 $ - $ 2,837 $ - $ 6,078 $ 7,204 $ 375 $ 16,593 Collectively evaluated for impairment $ 121,265 $ 10,469 $ 142,864 $ 19,750 $ 324,470 $ 254,274 $ 47,363 $ 920,455 Purchased Credit Impaired (1) $ 13 $ - $ 210 $ - $ 505 $ - $ - $ 728 ( 1 December 31, 2016 (Dollars in thousands) Real Estate: Real Estate: Real Estate: Real Estate: Construction Real Estate: 1-4 Family Multi-family Nonfarm and Land Farmland Residential Residential Nonresidential Commercial Consumer Total Allowance for credit losses: Beginning balance $ 600 $ 30 $ 1,021 $ 101 $ 1,416 $ 3,618 $ 458 $ 7,244 Charge-offs (484 ) - (162 ) - (473 ) (667 ) (3 ) (1,789 ) Recoveries 10 - 140 - 1,258 33 46 1,487 Provision 807 45 229 71 113 55 (100 ) 1,220 Ending Balance $ 933 $ 75 $ 1,228 $ 172 $ 2,314 $ 3,039 $ 401 $ 8,162 Ending Balance: Individually evaluated for impairment $ - $ - $ 252 $ - $ 98 $ 501 $ 36 $ 887 Collectively evaluated for impairment $ 933 $ 75 $ 943 $ 172 $ 2,216 $ 2,538 $ 365 $ 7,242 Purchased Credit Impaired (1) $ - $ - $ 33 $ - $ - $ - $ - $ 33 Loans receivable: Ending Balance $ 94,426 $ 9,217 $ 129,052 $ 22,737 $ 298,057 $ 213,120 $ 44,342 $ 810,951 Ending Balance: Individually evaluated for impairment $ 143 $ - $ 3,263 $ - $ 1,073 $ 7,332 $ 198 $ 12,009 Collectively evaluated for impairment $ 94,117 $ 9,217 $ 125,573 $ 22,737 $ 295,590 $ 205,788 $ 44,144 $ 797,166 Purchased Credit Impaired (1) $ 166 $ - $ 216 $ - $ 1,394 $ - $ - $ 1,776 ( 1 Management further disaggregates the loan portfolio segments into classes of loans, which are based on the initial measurement of the loan, risk characteristics of the loan and the method for monitoring and assessing the credit risk of the loan. As of September 30, 2017 December 31, 2016, Credit Quality Indicators September 30, 2017 Pass Special Mention Substandard Doubtful Total (Dollars in thousands) Real Estate Loans: Construction and land $ 118,911 $ 1,951 $ 403 $ 112 $ 121,377 Farmland 10,469 - - - 10,469 1-4 family residential 136,338 5,387 1,864 2,322 145,911 Multi-family residential 19,709 - 41 - 19,750 Nonfarm nonresidential 318,617 4,831 3,451 4,154 331,053 Commercial 230,769 21,095 3,168 6,446 261,478 Consumer 46,693 646 164 235 47,738 Total $ 881,506 $ 33,910 $ 9,091 $ 13,269 $ 937,776 December 31, 2016 Pass Special Mention Substandard Doubtful Total (Dollars in thousands) Real Estate Loans: Construction and land $ 92,951 $ 932 $ 300 $ 243 $ 94,426 Farmland 9,217 - - - 9,217 1-4 family residential 118,891 4,782 2,658 2,721 129,052 Multi-family residential 22,685 - 52 - 22,737 Nonfarm nonresidential 280,398 14,531 1,927 1,201 298,057 Commercial 186,197 16,783 7,377 2,763 213,120 Consumer 43,414 505 225 198 44,342 Total $ 753,753 $ 37,533 $ 12,539 $ 7,126 $ 810,951 The above classifications follow regulatory guidelines and can generally be described as follows: ● Pass loans are of satisfactory quality. ● Special mention loans have an existing weakness that could cause future impairment, including the deterioration of financial ratios, past due status, questionable management capabilities and possible reduction in the collateral values. ● Substand ard loans have an existing specific and well defined weakness that may may ● Doubtful loans have specific weaknesses that are severe enough to make collection or liquidation in full highly questionable and improbable. The following tables reflect certain information wit h respect to the loan portfolio delinquencies by loan class and amount as of September 30, 2017 December 31, 2016. 90 Aged Analysis of Past Due Loans Receivable September 30, 2017 (Dollars in thousands) Recorded Investment Over 90 Days Past Due and Still Accruing Greater Than 90 Days Past Due 30-59 Days Past Due 60-89 Days Past Due Total Past Due Total Loans Receivable Current Real Estate Loans: Construction and land $ 398 $ - $ 109 $ 507 $ 120,870 $ 121,377 $ - Farmland - - - - 10,469 10,469 - 1-4 family residential 940 146 869 1,955 143,956 145,911 138 Multi-family residential - - - - 19,750 19,750 - Nonfarm nonresidential 2,283 2,147 1,433 5,863 325,190 331,053 - Commercial 300 169 5,842 6,311 255,167 261,478 56 Consumer 35 122 224 381 47,357 47,738 - Total $ 3,956 $ 2,584 $ 8,477 $ 15,017 $ 922,759 $ 937,776 $ 194 December 31, 2016 (Dollars in thousands) Recorded Investment Over 90 Days Past Due and Still Accruing Greater Than 90 Days Past Due 30-59 Days Past Due 60-89 Days Past Due Total Past Due Total Loans Receivable Current Real Estate Loans: Construction and land $ 465 $ - $ 106 $ 571 $ 93,855 $ 94,426 $ - Farmland - - - - 9,217 9,217 - 1-4 family residential 989 579 963 2,531 126,521 129,052 117 Multi-family residential - - - - 22,737 22,737 - Nonfarm nonresidential 1,370 173 532 2,075 295,982 298,057 - Commercial 45 372 262 679 212,441 213,120 51 Consumer 66 - 149 215 44,127 44,342 - Total $ 2,935 $ 1,124 $ 2,012 $ 6,071 $ 804,880 $ 810,951 $ 168 The following is a summary of information pertaining to impaired loans as of September 30, 2017 December 31, 2016. $257,000 $283,000 nine September 30, 2017 2016, September 30, 2017 (Dollars in thousands) Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With an allowance recorded: Real Estate Loans: Construction and land $ 89 $ 89 $ 22 $ 70 Farmland - - - - 1-4 family residential 751 830 340 815 Multi-family residential - - - - Nonfarm nonresidential 679 701 111 509 Other Loans: Commercial 562 587 408 485 Consumer - - - 7 Total $ 2,081 $ 2,207 $ 881 $ 1,886 With no allowance recorded: Real Estate Loans: Construction and land $ 9 $ 16 $ - $ 58 Farmland - - - - 1-4 family residential 2,087 2,444 - 2,222 Multi-family residential - - - - Nonfarm nonresidential 5,400 5,494 - 2,686 Other Loans: Commercial 6,642 7,893 - 5,975 Consumer 374 405 - 176 Total $ 14,512 $ 16,252 $ - $ 11,117 Total Impaired Loans: Real Estate Loans: Construction and land $ 98 $ 105 $ 22 $ 128 Farmland - - - - 1-4 family residential 2,838 3,274 340 3,037 Multi-family residential - - - - Nonfarm nonresidential 6,079 6,195 111 3,195 Other Loans: Commercial 7,204 8,480 408 6,460 Consumer 374 405 - 183 Total $ 16,593 $ 18,459 $ 881 $ 13,003 December 31, 2016 (Dollars in thousands) Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With an allowance recorded: Real Estate Loans: Construction and land $ - $ - $ - $ 655 Farmland - - - - 1-4 family residential 440 470 252 372 Multi-family residential - - - - Nonfarm nonresidential 368 368 98 31 Other Loans: Commercial 695 709 501 1,252 Consumer 36 36 36 12 Total $ 1,539 $ 1,583 $ 887 $ 2,322 With no allowance recorded: Real Estate Loans: Construction and land $ 143 $ 152 $ - $ 124 Farmland - - - - 1-4 family residential 2,823 3,276 - 3,296 Multi-family residential - - - - Nonfarm nonresidential 705 729 - 3,730 Other Loans: Commercial 6,637 7,826 - 3,680 Consumer 162 162 - 43 Total $ 10,470 $ 12,145 $ - $ 10,873 Total Impaired Loans: Real Estate Loans: Construction and land $ 143 $ 152 $ - $ 779 Farmland - - - - 1-4 family residential 3,263 3,746 252 3,668 Multi-family residential - - - - Nonfarm nonresidential 1,073 1,097 98 3,761 Other Loans: Commercial 7,332 8,535 501 4,932 Consumer 198 198 36 55 Total $ 12,009 $ 13,728 $ 887 $ 13,195 The Company elected to account for certain loans acquired in the AGFC merger as acquired impaired loans under ASC 310 30 no The following table presents the changes in the carrying amount of the purchased impaired credits accounted for under ASC 310 30 Purchased Impaired Credits (Dollars in thousands) Carrying amount - December 31, 2015 $ 3,634 Payments received, net of discounts realized (1,181 ) Charge-offs (352 ) Transfer to other real estate (325 ) Carrying amount - December 31, 2016 1,776 Payments received, net of discounts realized (892 ) Purchased impaired credit participation interest sales proceeds, net of discount realized 511 Charge-offs (667 ) Carrying amount - September 30, 2017 $ 728 The Bank seeks to assist customers that are experiencing financial difficulty by renegotiating loans within lending regulations and guidelines. The Bank makes loan modifications, primarily utilizing internal renegotiation programs via direct customer contact, that manage customers ’ debt exposures held only by the Bank. Additionally, the Bank makes loan modifications with customers who have elected to work with external renegotiation agencies and these modifications provide solutions to customers’ entire unsecured debt structures. During the periods ended September 30, 2017 December 31, 2016, Once modified in a troubled debt restructuring, a loan is generally considered impaired until its contractual maturity. At the time of the restructuring, the loan is evaluated for an asset-specific allowance for credit losses. The Bank continues to specifically reevaluate the loan in subsequent periods, regardless of the borrower ’s performance under the modified terms. If a borrower subsequently defaults on the loan after it is restructured, the Bank provides an allowance for credit losses for the amount of the loan that exceeds the value of the related collateral. The following tables present informative data regarding troubled debt restructurings as of September 30, 2017 December 31, 2016. Bank had $3.3 nine September 30, 2017 none December 31, 2016. Modifications as of September 30, 2017: Pre-Modification Post-Modification Number Outstanding Outstanding of Recorded Recorded Contracts Investment Investment (Dollars in thousands) Troubled Debt Restructuring Real Estate Loans: 1-4 family residential 3 $ 870 $ 582 Other Loans: Commercial 3 5,144 3,922 Total 6 $ 6,014 $ 4,504 Modifications as of December 31, 2016: Pre-Modification Post-Modification Number Outstanding Outstanding of Recorded Recorded Contracts Investment Investment (Dollars in thousands) Troubled Debt Restructuring Real Estate Loans: 1-4 family residential 3 $ 870 $ 608 Other Loans: Commercial 6 6,880 5,323 Total 9 $ 7,750 $ 5,931 |