Financing Receivables [Text Block] | Note 6 Loans receivable at June 30, 2019 December 31, 2018 June 30, December 31, 2019 2018 (Dollars in thousands) Real estate loans: Construction and land $ 227,102 $ 211,054 Farmland 47,245 45,989 1-4 family residential 278,610 270,583 Multi-family residential 38,698 39,273 Nonfarm nonresidential 561,149 518,660 Commercial 411,256 363,640 Consumer 78,513 79,270 Total loans held for investment 1,642,573 1,528,469 Less: Allowance for loan losses (11,603 ) (11,220 ) Net loans $ 1,630,970 $ 1,517,249 The performing 1 4 June 30, 2019 December 31, 2018. Net deferred loan origination fees were $2.2 $1.7 June 30, 2019 December 31, 2018, June 30, 2019 December 31, 2018, $292,000 $858,000, The Bank is the lead lender on participations sold, without recourse, to other financial institutions which amounts are not $168.9 $147.0 June 30, 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 June 30, 2019 $249.6 June 30, 2019 310 30, Loans and Debt Securities Acquired with Deteriorated Credit Quality 310 30” $7.8 not 310 30 $244.3 $2.6 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 June 30, 2019 December 31, 2018, not not Allowance for Credit Losses and Recorded Investment in Loans Receivable June 30, 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 ) (54 ) - (10 ) (1,540 ) (14 ) (1,622 ) Recoveries - - 9 - - 33 28 70 Provision 204 90 221 7 706 724 (17 ) 1,935 Ending Balance $ 1,792 $ 192 $ 1,714 $ 243 $ 3,411 $ 3,670 $ 581 $ 11,603 Ending Balance: Individually evaluated for impairment $ - $ 3 $ 19 $ - $ 11 $ 277 $ 23 $ 333 Collectively evaluated for impairment $ 1,792 $ 189 $ 1,695 $ 243 $ 3,400 $ 3,393 $ 558 $ 11,270 Purchased Credit Impaired (1) $ - $ - $ - $ - $ - $ - $ - $ - Loans receivable: Ending Balance $ 227,102 $ 47,245 $ 278,610 $ 38,698 $ 561,149 $ 411,256 $ 78,513 $ 1,642,573 Ending Balance: Individually evaluated for impairment $ 56 $ 192 $ 2,357 $ - $ 3,192 $ 3,792 $ 235 $ 9,824 Collectively evaluated for impairment $ 227,046 $ 46,809 $ 276,160 $ 38,698 $ 550,905 $ 407,036 $ 78,278 $ 1,624,932 Purchased Credit Impaired (1) $ - $ 244 $ 93 $ - $ 7,052 $ 428 $ - $ 7,817 ( 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 June 30, 2019 December 31, 2018, Credit Quality Indicators June 30, 2019 Pass Special Mention Substandard Doubtful Total (Dollars in thousands) Real Estate Loans: Construction and land $ 224,062 $ 1,799 $ 1,185 $ 56 $ 227,102 Farmland 46,227 812 14 192 47,245 1-4 family residential 269,416 3,718 3,136 2,340 278,610 Multi-family residential 38,664 - 34 - 38,698 Nonfarm nonresidential 538,718 12,554 4,676 5,201 561,149 Commercial 396,324 5,921 7,647 1,364 411,256 Consumer 76,882 1,283 113 235 78,513 Total $ 1,590,293 $ 26,087 $ 16,805 $ 9,388 $ 1,642,573 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 June 30, 2019 December 31, 2018. 90 Aged Analysis of Past Due Loans Receivable June 30, 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 $ 30 $ 18 $ 4 $ 52 $ 227,050 $ 227,102 $ - Farmland - - 107 107 47,138 47,245 107 1-4 family residential 1,137 319 1,011 2,467 276,143 278,610 45 Multi-family residential - - - - 38,698 38,698 - Nonfarm nonresidential 407 1,004 3,055 4,466 556,683 561,149 135 Commercial 179 633 1,223 2,035 409,221 411,256 341 Consumer 318 37 210 565 77,948 78,513 99 Total $ 2,071 $ 2,011 $ 5,610 $ 9,692 $ 1,632,881 $ 1,642,573 $ 727 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 June 30, 2019 December 31, 2018. $118,000 $83,000 six June 30, 2019 2018, June 30, 2019 (Dollars in thousands) Unpaid Average Recorded Principal Related Recorded Investment Balance Allowance Investment With an allowance recorded: Real Estate Loans: Construction and land $ - $ - $ - $ 1 Farmland 21 22 3 21 1-4 family residential 84 117 19 184 Multi-family residential - - - - Nonfarm nonresidential 155 166 11 484 Other Loans: Commercial 348 413 277 1,381 Consumer 90 94 23 88 Total $ 698 $ 812 $ 333 $ 2,159 With no allowance recorded: Real Estate Loans: Construction and land $ 56 $ 80 $ - $ 84 Farmland 171 256 - 183 1-4 family residential 2,273 3,218 - 2,674 Multi-family residential - - - - Nonfarm nonresidential 3,037 3,327 - 3,916 Other Loans: Commercial 3,444 4,301 - 4,560 Consumer 145 193 - 148 Total $ 9,126 $ 11,375 $ - $ 11,565 Total Impaired Loans: Real Estate Loans: Construction and land $ 56 $ 80 $ - $ 85 Farmland 192 278 3 204 1-4 family residential 2,357 3,335 19 2,858 Multi-family residential - - - - Nonfarm nonresidential 3,192 3,493 11 4,400 Other Loans: Commercial 3,792 4,714 277 5,941 Consumer 235 287 23 236 Total $ 9,824 $ 12,187 $ 333 $ 13,724 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 (2,887 ) Carrying amount - June 30, 2019 $ 7,817 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 June 30, 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 June 30, 2019 December 31, 2018. $79,000 December 31, 2018 none six June 30, 2019. Modifications as of June 30, 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 2 $ 17 $ 16 Nonfarm nonresidential 3 2,411 2,156 Other Loans: Commercial 6 5,914 2,878 Total 11 $ 8,342 $ 5,050 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 |