Financing Receivables [Text Block] | Note 6 – Loans and the Allowance for Loan Losses – Loans receivable at March 31, 2019 December 31, 2018 March 31, December 31, 2019 2018 (Dollars in thousands) Real estate loans: Construction and land $ 211,888 $ 211,054 Farmland 44,066 45,989 1-4 family residential 275,610 270,583 Multi-family residential 39,548 39,273 Nonfarm nonresidential 550,103 518,660 Commercial 389,855 363,640 Consumer 75,112 79,270 Total loans held for investment 1,586,182 1,528,469 Less: Allowance for loan losses (11,818 ) (11,220 ) Net loans $ 1,574,364 $ 1,517,249 The performing 1 4 March 31, 2019 December 31, 2018. Net deferred loan origination fees were $2.1 $1.7 March 31, 2019 December 31, 2018, March 31, 2019 December 31, 2018, $299,000 $858,000, The Bank is the lead lender on participations sold, without recourse, to other financial institutions which amounts are not $164.2 $147.0 March 31, 2019 December 31, 2018, The Bank grants loans and extensions of credit to individuals and a variety of businesses and corporations located in its general market areas throughout 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 Loans acquired in business combinations were recorded at estimated fair value at the acquisition date with no Total loans held for investment at March 31, 2019 $288.2 March 31, 2019 310 30, Loans and Debt Securities Acquired with Deteriorated Credit Quality 310 30” $8.0 not 310 30 $283.1 $2.9 Total loans held for investment at December 31, 2018 $334.8 December 31, 2018 $10.7 $327.3 $3.2 The following tables set forth, as of March 31, 2019 December 31, 2018, not not Allowance for Credit Losses and Recorded Investment in Loans Receivable March 31, 2019 (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 $ 1,590 $ 104 $ 1,538 $ 236 $ 2,715 $ 4,453 $ 584 $ 11,220 Charge-offs (2 ) (2 ) (10 ) - (10 ) (20 ) (13 ) (57 ) Recoveries - - 7 - - 5 10 22 Provision 12 3 39 (1 ) 144 448 (12 ) 633 Ending Balance $ 1,600 $ 105 $ 1,574 $ 235 $ 2,849 $ 4,886 $ 569 $ 11,818 Ending Balance: Individually evaluated for impairment $ 2 $ 3 $ 143 $ - $ 18 $ 1,115 $ 74 $ 1,355 Collectively evaluated for impairment $ 1,598 $ 102 $ 1,431 $ 235 $ 2,831 $ 3,771 $ 495 $ 10,463 Purchased Credit Impaired (1) $ - $ - $ - $ - $ - $ - $ - $ - Loans receivable: Ending Balance $ 211,888 $ 44,066 $ 275,610 $ 39,548 $ 550,103 $ 389,855 $ 75,112 $ 1,586,182 Ending Balance: Individually evaluated for impairment $ 109 $ 202 $ 2,958 $ - $ 4,405 $ 5,865 $ 200 $ 13,739 Collectively evaluated for impairment $ 211,779 $ 43,700 $ 272,557 $ 39,548 $ 538,682 $ 383,280 $ 74,912 $ 1,564,458 Purchased Credit Impaired (1) $ - $ 164 $ 95 $ - $ 7,016 $ 710 $ - $ 7,985 ( 1 December 31, 2018 (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 $ 1,421 $ 76 $ 1,284 $ 144 $ 2,323 $ 3,147 $ 370 $ 8,765 Charge-offs (90 ) - (294 ) - - - (88 ) (472 ) Recoveries 398 - 18 - 13 28 80 537 Provision (139 ) 28 530 92 379 1,278 222 2,390 Ending Balance $ 1,590 $ 104 $ 1,538 $ 236 $ 2,715 $ 4,453 $ 584 $ 11,220 Ending Balance: Individually evaluated for impairment $ - $ - $ 96 $ - $ 47 $ 1,112 $ 25 $ 1,280 Collectively evaluated for impairment $ 1,590 $ 104 $ 1,442 $ 236 $ 2,668 $ 3,341 $ 559 $ 9,940 Purchased Credit Impaired (1) $ - $ - $ - $ - $ - $ - $ - $ - Loans receivable: Ending Balance $ 211,054 $ 45,989 $ 270,583 $ 39,273 $ 518,660 $ 363,640 $ 79,270 $ 1,528,469 Ending Balance: Individually evaluated for impairment $ 32 $ 112 $ 2,728 $ - $ 4,155 $ 5,208 $ 125 $ 12,360 Collectively evaluated for impairment $ 211,022 $ 45,713 $ 267,761 $ 39,273 $ 507,506 $ 354,985 $ 79,145 $ 1,505,405 Purchased Credit Impaired (1) $ - $ 164 $ 94 $ - $ 6,999 $ 3,447 $ - $ 10,704 ( 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 March 31, 2019 December 31, 2018, Credit Quality Indicators March 31, 2019 Pass Special Mention Substandard Doubtful Total (Dollars in thousands) Real Estate Loans: Construction and land $ 208,997 $ 1,568 $ 1,214 $ 109 $ 211,888 Farmland 43,697 152 15 202 44,066 1-4 family residential 264,981 4,956 2,714 2,959 275,610 Multi-family residential 39,513 - 35 - 39,548 Nonfarm nonresidential 526,600 12,604 4,562 6,337 550,103 Commercial 375,412 3,985 7,081 3,377 389,855 Consumer 73,743 1,024 146 199 75,112 Total $ 1,532,943 $ 24,289 $ 15,767 $ 13,183 $ 1,586,182 December 31, 2018 Pass Special Mention Substandard Doubtful Total (Dollars in thousands) Real Estate Loans: Construction and land $ 209,027 $ 718 $ 1,277 $ 32 $ 211,054 Farmland 45,563 153 161 112 45,989 1-4 family residential 260,325 4,601 2,929 2,728 270,583 Multi-family residential 39,237 - 36 - 39,273 Nonfarm nonresidential 494,698 14,421 3,510 6,031 518,660 Commercial 347,839 5,690 7,448 2,663 363,640 Consumer 77,731 1,180 234 125 79,270 Total $ 1,474,420 $ 26,763 $ 15,595 $ 11,691 $ 1,528,469 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. ● Substandard 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 with respect to the loan portfolio delinquencies by loan class and amount as of March 31, 2019 December 31, 2018. 90 Aged Analysis of Past Due Loans Receivable March 31, 2019 (Dollars in thousands) Recorded Greater Investment Over 30-59 Days 60-89 Days Than 90 Days Total Total Loans 90 Days Past Due Past Due Past Due Past Due Past Due Current Receivable and Still Accruing Real Estate Loans: Construction and land $ 480 $ - $ 30 $ 510 $ 211,378 $ 211,888 $ - Farmland 24 - - 24 44,042 44,066 - 1-4 family residential 1,646 318 1,396 3,360 272,250 275,610 - Multi-family residential 35 - - 35 39,513 39,548 - Nonfarm nonresidential 191 730 5,439 6,360 543,743 550,103 - Commercial 218 96 3,008 3,322 386,533 389,855 72 Consumer 224 32 166 422 74,690 75,112 5 Total $ 2,818 $ 1,176 $ 10,039 $ 14,033 $ 1,572,149 $ 1,586,182 $ 77 December 31, 2018 (Dollars in thousands) Recorded Greater Investment Over 30-59 Days 60-89 Days Than 90 Days Total Total Loans 90 Days Past Due Past Due Past Due Past Due Past Due Current Receivable and Still Accruing Real Estate Loans: Construction and land $ 325 $ 13 $ 89 $ 427 $ 210,627 $ 211,054 $ 60 Farmland - 96 - 96 45,893 45,989 - 1-4 family residential 1,596 588 1,400 3,584 266,999 270,583 270 Multi-family residential 36 - - 36 39,237 39,273 - Nonfarm nonresidential 2,437 - 3,967 6,404 512,256 518,660 450 Commercial 328 287 3,241 3,856 359,784 363,640 1,038 Consumer 237 89 106 432 78,838 79,270 58 Total $ 4,959 $ 1,073 $ 8,803 $ 14,835 $ 1,513,634 $ 1,528,469 $ 1,876 The following is a summary of information pertaining to impaired loans as of March 31, 2019 December 31, 2018. $69,000 $116,000 three March 31, 2019 2018, March 31, 2019 (Dollars in thousands) Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With an allowance recorded: Real Estate Loans: Construction and land $ 2 $ 2 $ 2 $ 2 Farmland 21 22 3 21 1-4 family residential 251 288 143 251 Multi-family residential - - - - Nonfarm nonresidential 559 568 18 559 Other Loans: Commercial 1,886 2,944 1,115 1,886 Consumer 74 76 74 74 Total $ 2,793 $ 3,900 $ 1,355 $ 2,793 With no allowance recorded: Real Estate Loans: Construction and land $ 107 $ 133 $ - $ 94 Farmland 181 265 - 196 1-4 family residential 2,707 4,445 - 2,818 Multi-family residential - - - - Nonfarm nonresidential 3,846 4,043 - 4,321 Other Loans: Commercial 3,979 4,830 - 5,506 Consumer 126 171 - 162 Total $ 10,946 $ 13,887 $ - $ 13,097 Total Impaired Loans: Real Estate Loans: Construction and land $ 109 $ 135 $ 2 $ 96 Farmland 202 287 3 217 1-4 family residential 2,958 4,733 143 3,069 Multi-family residential - - - - Nonfarm nonresidential 4,405 4,611 18 4,880 Other Loans: Commercial 5,865 7,774 1,115 7,392 Consumer 200 247 74 236 Total $ 13,739 $ 17,787 $ 1,355 $ 15,890 December 31, 2018 (Dollars in thousands) Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With an allowance recorded: Real Estate Loans: Construction and land $ - $ - $ - $ 22 Farmland - - - - 1-4 family residential 363 451 96 303 Multi-family residential - - - - Nonfarm nonresidential 447 501 47 367 Other Loans: Commercial 1,883 2,935 1,112 547 Consumer 25 25 25 2 Total $ 2,718 $ 3,912 $ 1,280 $ 1,241 With no allowance recorded: Real Estate Loans: Construction and land $ 32 $ 56 $ - $ 15 Farmland 112 193 - 9 1-4 family residential 2,365 3,975 - 2,708 Multi-family residential - - - - Nonfarm nonresidential 3,708 3,833 - 5,240 Other Loans: Commercial 3,325 4,198 - 5,350 Consumer 100 144 - 261 Total $ 9,642 $ 12,399 $ - $ 13,583 Total Impaired Loans: Real Estate Loans: Construction and land $ 32 $ 56 $ - $ 37 Farmland 112 193 - 9 1-4 family residential 2,728 4,426 96 3,011 Multi-family residential - - - - Nonfarm nonresidential 4,155 4,334 47 5,607 Other Loans: Commercial 5,208 7,133 1,112 5,897 Consumer 125 169 25 263 Total $ 12,360 $ 16,311 $ 1,280 $ 14,824 The Company elected to account for certain loans acquired in business combinations as acquired impaired loans under ASC 310 30 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, 2017 $ 696 Carrying amount of purchased impaired credits acquired in MBI acquisition 5,798 Carrying amount of purchased impaired credits acquired in RSBI acquisition 4,533 Payments received, net of discounts realized (507 ) Purchased impaired credit participation interest sales proceeds, net of discount realized 210 Charge-offs (26 ) Carrying amount - December 31, 2018 10,704 Payments received, net of discounts realized (2,719 ) Carrying amount - March 31, 2019 $ 7,985 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 March 31, 2019 December 31, 2018, 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 March 31, 2019 December 31, 2018. $79,000 December 31, 2018 none three March 31, 2019. Modifications as of March 31, 2019: 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 1 $ - $ - Nonfarm nonresidential 3 2,411 2,300 Other Loans: Commercial 6 5,914 3,433 Total 10 $ 8,325 $ 5,733 Modifications as of December 31, 2018: 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 1 $ - $ - Nonfarm nonresidential 3 2,412 2,308 Other Loans: Commercial 6 5,914 3,512 Total 10 $ 8,326 $ 5,820 |