| Loans and Allowance for Loan Losses | Note 5 - Loans and Allowance for Loan Losses
Loans held for investment are stated at the amount of unpaid
principal, reduced by unearned income and an allowance for loan
losses. Interest on loans is calculated by using the simple
interest method on daily balances of the principal amounts
outstanding. The Company defers and amortizes net loan origination
fees and costs as an adjustment to yield. The allowance for loan
losses is established through a provision for loan losses charged
to expense. Loans are charged against the allowance for loan losses
when management believes the collectability of the principal is
unlikely.
The Company has certain lending policies and procedures in place
that are designed to maximize loan income with an acceptable level
of risk. Management reviews and approves these policies and
procedures on an annual basis and makes changes as appropriate.
Management receives and reviews monthly reports related to loan
originations, quality, concentrations, delinquencies, nonperforming
and potential problem loans. Diversification in the loan portfolio
is a means of managing risk associated with fluctuations in
economic conditions, both by type of loan and geographic
location.
Commercial loans are underwritten after evaluating and
understanding the borrower’s ability to operate profitably
and effectively. Underwriting standards are designed to determine
whether the borrower possesses sound business ethics and practices
and to evaluate current and projected cash flows to determine the
ability of the borrower to repay their obligations as agreed.
Commercial loans are primarily made based on the identified cash
flows of the borrower and, secondarily, on the underlying
collateral provided by the borrower. Most commercial loans are
secured by the assets being financed or other business assets, such
as accounts receivable or inventory, and include personal
guarantees.
Agricultural loans are subject to underwriting standards and
processes similar to commercial loans. These agricultural loans are
based primarily on the identified cash flows of the borrower and
secondarily on the underlying collateral provided by the borrower.
Most agricultural loans are secured by the agriculture related
assets being financed, such as farm land, cattle or equipment, and
include personal guarantees.
Real estate loans are also subject to underwriting standards and
processes similar to commercial and agricultural loans. These loans
are underwritten primarily based on projected cash flows and,
secondarily, as loans secured by real estate. The repayment of real
estate loans is generally largely dependent on the successful
operation of the property securing the loans or the business
conducted on the property securing the loan. Real estate loans may
be more adversely affected by conditions in the real estate markets
or in the general economy. The properties securing the
Company’s real estate portfolio are generally diverse in
terms of type and geographic location within Texas. This diversity
helps reduce the exposure to adverse economic events that affect
any single market or industry. Generally, real estate loans are
owner occupied which further reduces the Company’s risk.
Consumer loan underwriting utilizes methodical credit standards and
analysis to supplement the Company’s underwriting policies
and procedures. The Company’s loan policy addresses types of
consumer loans that may be originated and the collateral, if
secured, which must be perfected. The relatively smaller individual
dollar amounts of consumer loans that are spread over numerous
individual borrowers also minimize the Company’s risk.
The allowance for loan losses is an amount which represents
management’s best estimate of probable losses that are
inherent in the Company’s loan portfolio as of the balance
sheet date. The allowance for loan losses is comprised of three
elements: (i) specific reserves determined based on probable
losses on specific classified loans; (ii) a historical
valuation reserve component that considers historical loss rates;
and (iii) qualitative reserves based upon general economic
conditions and other qualitative risk factors both internal and
external to the Company. The allowance for loan losses is increased
by charges to income and decreased by charge-offs
Although we believe we use the best information available to make
loan loss allowance determinations, future adjustments could be
necessary if circumstances or economic conditions differ
substantially from the assumptions used in making our initial
determinations. A downturn in the economy and employment could
result in increased levels of non-performing assets and
charge-offs, increased loan provisions and reductions in income.
Additionally, bank regulatory agencies periodically review our
allowance for loan losses and methodology and could require, in
accordance with generally accepted accounting principles,
additional provisions to the allowance for loan losses based on
their judgment of information available to them at the time of
their examination as well as changes to our methodology.
Accrual of interest is discontinued on a loan and payments are
applied to principal when management believes, after considering
economic and business conditions and collection efforts, the
borrower’s financial condition is such that collection of
interest is doubtful. Except consumer loans, generally all loans
past due greater than 90 days, based on contractual terms, are
placed on non-accrual. Loans are returned to accrual status when
all the principal and interest amounts contractually due are
brought current and future payments are reasonably assured.
Consumer loans are generally charged-off when a loan becomes past
due 90 days. For other loans in the portfolio, facts and
circumstances are evaluated in making charge-off decisions.
Loans are considered impaired when, based on current information
and events, management determines that it is probable we will be
unable to collect all amounts due in accordance with the loan
agreement, including scheduled principal and interest payments. If
a loan is impaired, a specific valuation allowance is allocated, if
necessary. Interest payments on impaired loans are typically
applied to principal unless collectability of the principal amount
is reasonably assured, in which case interest is recognized on a
cash basis. Impaired loans, or portions thereof, are charged off
when deemed uncollectable.
The Company’s policy requires measurement of the allowance
for an impaired, collateral dependent loan based on the fair value
of the collateral. Other loan impairments for non-collateral
dependent loans are measured based on the present value of expected
future cash flows or the loan’s observable market price. At
September 30, 2015 and 2014, and December 31, 2014, all
significant impaired loans have been determined to be collateral
dependent and the allowance for loss has been measured utilizing
the estimated fair value of the collateral.
From time to time, the Company modifies its loan agreement with a
borrower. A modified loan is considered a troubled debt
restructuring when two conditions are met: (i) the borrower is
experiencing financial difficulty and (ii) concessions are
made by the Company that would not otherwise be considered for a
borrower with similar credit risk characteristics. Modifications to
loan terms may include a lower interest rate, a reduction of
principal, or a longer term to maturity. For all impaired loans,
including the Company’s troubled debt restructurings, the
Company performs a periodic, well-documented credit evaluation of
the borrower’s financial condition and prospects for
repayment to assess the likelihood that all principal and interest
payments required under the terms of the agreement will be
collected in full. When doubt exists about the ultimate
collectability of principal and interest, the troubled debt
restructuring remains on non-accrual status and payments received
are applied to reduce principal to the extent necessary to
eliminate such doubt. This determination of accrual status is
judgmental and is based on facts and circumstances related to each
troubled debt restructuring. Each of these loans is individually
evaluated for impairment and a specific reserve is recorded based
on probable losses, taking into consideration the related
collateral, modified loan terms and cash flow. As of
September 30, 2015 and 2014, and December 31, 2014,
substantially all of the Company’s troubled debt restructured
loans are included in the non-accrual totals.
The Company originates certain mortgage loans for sale in the
secondary market. Accordingly, these loans are classified as
held-for-sale and are carried at the lower of cost or fair value on
an aggregate basis. The mortgage loan sales contracts contain
indemnification clauses should the loans default, generally in the
first three to six months, or if documentation is determined not to
be in compliance with regulations. The Company’s historic
losses as a result of these indemnities have been
insignificant.
Loans acquired, including loans acquired in a business combination,
are initially recorded at fair value with no valuation allowance.
Acquired loans are segregated between those considered to be credit
impaired and those deemed performing. To make this determination,
management considers such factors as past due status, non-accrual
status and credit risk ratings. The fair value of acquired
performing loans is determined by discounting expected cash flows,
both principal and interest, at prevailing market interest rates.
The difference between the fair value and principal balances at
acquisition date, the fair value discount, is accreted into
interest income over the estimated life of each loan.
Purchased credit impaired loans are those loans that showed
evidence of deterioration of credit quality since origination and
for which it is probable, at acquisition, that the Company will be
unable to collect all amounts contractually owed. Their acquisition
fair value, which includes a credit component at the acquisition
date, was based on the estimate of cash flows, both principal and
interest, expected to be collected or estimated collateral values
if cash flows are not estimable, discounted at prevailing market
rates of interest. The difference between the discounted cash flows
expected at acquisition and the investment in the loan is
recognized as interest income on a level-yield method over the life
of the loan, unless management was unable to reasonably forecast
cash flows in which case the loans were placed on nonaccrual.
Contractually required payments for interest and principal that
exceed the cash flows expected at acquisition are not recognized as
a yield adjustment. Increases in expected cash flows subsequent to
the initial investment are recognized prospectively through
adjustment of the yield on the loan over its remaining life.
Decreases in expected cash flows subsequent to acquisition are
recognized as impairment. Valuation allowances on these impaired
loans reflect only losses incurred after the acquisition. The
carrying amount of purchased credit impaired loans at
September 30, 2015 and 2014, and December 31, 2014 was
$2,422,000, $2,383,000 and $2,151,000, respectively, compared to a
contractual balance of $3,213,000, $3,525,000, and $3,275,000,
respectively. Other purchased credit impaired loan disclosures were
omitted due to immateriality.
Loans held-for-investment by class of financing receivables are as
follows (in thousands):
September 30, December 31,
2015 2014 2014
Commercial $ 698,406 $ 612,092 $ 639,954
Agricultural 99,232 86,718 105,694
Real estate 2,088,002 1,774,639 1,822,854
Consumer 381,177 354,981 360,686
Total loans held-for-investment $ 3,266,817 $ 2,828,430 $ 2,929,188
Loans held for sale totaled $21,605,000, $11,266,000 and $8,803,000
at September 30, 2015 and 2014, and December 31, 2014,
respectively, which were recorded at cost as fair value
approximated cost.
The Company’s non-accrual loans, loans still accruing and
past due 90 days or more and restructured loans are as follows (in
thousands):
September 30, December 31,
2015 2014 2014
Non-accrual loans* $ 21,788 $ 22,093 $ 20,194
Loans still accruing and past due 90 days or more 49 263 261
Troubled debt restructured loans** 204
— 226
Total $ 22,041 $ 22,356 $ 20,681
* Includes $2,422,000, $2,383,000 and
$2,151,000 of purchased credit impaired loans as of
September 30, 2015 and 2014, and December 31, 2014,
respectively.
** Troubled debt restructured loans of
$6,462,000, $10,114,000 and $9,073,000, whose interest collection,
after considering economic and business conditions and collection
efforts, is doubtful are included in non-accrual loans at
September 30, 2015 and 2014, and December 31, 2014,
respectively.
The Company’s recorded investment in impaired loans and the
related valuation allowance are as follows (in thousands):
September 30,
2015 September 30, 2014 December 31, 2014
Recorded Valuation Recorded Valuation Recorded Valuation
$ 21,788 $4,645 $22,093 $4,634 $20,194 $4,213
The average recorded investment in impaired loans for the three and
nine months ended September 30, 2015 and the year ended
December 31, 2014 was approximately $20,026,000, $19,755,000
and $24,497,000, respectively. The Company had $22,742,000,
$23,629,000 and $21,716,000 in non-accrual, past due 90 days or
more and still accruing and restructured loans and foreclosed
assets at September 30, 2015 and 2014, and December 31,
2014, respectively. Non-accrual loans at September 30, 2015
and 2014, and December 31, 2014, consisted of the following by
class of financing receivables (in thousands):
September 30, December 31,
2015 2014 2014
Commercial $ 5,077 $ 3,481 $ 3,193
Agricultural 75 102 165
Real estate 16,124 17,712 16,218
Consumer 512 798 618
Total $ 21,788 $ 22,093 $ 20,194
No significant additional funds are committed to be advanced in
connection with impaired loans as of September 30, 2015.
The Company’s impaired loans and related allowance as of
September 30, 2015 and 2014, and December 31, 2014, are
summarized in the following tables by class of financing
receivables (in thousands). No interest income was recognized on
impaired loans subsequent to their classification as impaired.
September 30, 2015 Unpaid Recorded Recorded Total Related Year-to-Date Three-month
Commercial $ 6,351 $ 413 $ 4,664 $ 5,077 $ 1,666 $ 4,037 $ 4,316
Agricultural 121
— 75 75 47 55 85
Real Estate 22,796 4,341 11,783 16,124 2,844 15,222 15,114
Consumer 698 343 169 512 88 441 511
Total $ 29,966 $ 5,097 $ 16,691 $ 21,788 $ 4,645 $ 19,755 $ 20,026
* Includes $2,422,000 of purchased
credit impaired loans.
September 30, 2014 Unpaid Recorded Recorded Total Related Year-to-Date Three-month
Commercial $ 3,928 $ 278 $ 3,203 $ 3,481 $ 1,160 $ 3,990 $ 3,713
Agricultural 113
— 102 102 37 113 104
Real Estate 23,559 5,546 12,166 17,712 3,256 21,510 20,212
Consumer 977 467 331 798 181 911 864
Total $ 28,577 $ 6,291 $ 15,802 $ 22,093 $ 4,634 $ 26,524 $ 24,893
* Includes $2,383,000 of purchased
credit impaired loans.
December 31, 2014 Unpaid Recorded Recorded Total Related Average
Commercial $ 3,749 $ 287 $ 2,906 $ 3,193 $ 1,171 $ 3,698
Agricultural 177
— 165 165 57 179
Real Estate 22,177 4,859 11,359 16,218 2,867 19,837
Consumer 838 420 198 618 118 783
Total $ 26,941 $ 5,566 $ 14,628 $ 20,194 $ 4,213 $ 24,497
* Includes $2,151,000 of purchased
credit impaired loans.
The Company recognized interest income on impaired loans prior to
being classified as impaired of approximately $162,000 during the
year ended December 31, 2014. Such amounts for the three-month
and nine-month periods ended September 30, 2015 and 2014 were
not significant.
From a credit risk standpoint, the Company rates its loans in one
of four categories: (i) pass, (ii) special mention,
(iii) substandard or (iv) doubtful. Loans rated as loss
are charged-off.
The ratings of loans reflect a judgment about the risks of default
and loss associated with the loan. The Company reviews the ratings
on our credits as part of our on-going monitoring of the credit
quality of our loan portfolio. Ratings are adjusted to reflect the
degree of risk and loss that are felt to be inherent in each credit
as of each reporting period. Our methodology is structured so that
specific allocations are increased in accordance with deterioration
in credit quality (and a corresponding increase in risk and loss)
or decreased in accordance with improvement in credit quality (and
a corresponding decrease in risk and loss).
Credits rated special mention show clear signs of financial
weakness or deterioration in credit worthiness, however, such
concerns are not so pronounced that the Company generally expects
to experience significant loss within the short-term. Such credits
typically maintain the ability to perform within standard credit
terms and credit exposure is not as prominent as credits rated more
harshly.
Credits rated substandard are those in which the normal repayment
of principal and interest may be, or has been, jeopardized by
reason of adverse trends or developments of a financial,
managerial, economic or political nature, or important weaknesses
exist in collateral. A protracted workout on these credits is a
distinct possibility. Prompt corrective action is therefore
required to strengthen the Company’s position, and/or to
reduce exposure and to assure that adequate remedial measures are
taken by the borrower. Credit exposure becomes more likely in such
credits and a serious evaluation of the secondary support to the
credit is performed.
Credits rated doubtful are those in which full collection of
principal appears highly questionable, and which some degree of
loss is anticipated, even though the ultimate amount of loss may
not yet be certain and/or other factors exist which could affect
collection of debt. Based upon available information, positive
action by the Company is required to avert or minimize loss.
Credits rated doubtful are generally also placed on
non-accrual.
The following summarizes the Company’s internal ratings of
its loans held-for-investment by class of financing receivables and
portfolio segments, which are the same, at September 30, 2015
and 2014, and December 31, 2014 (in thousands):
September 30, 2015 Pass Special Substandard Doubtful Total
Commercial $ 656,566 $ 19,242 $ 22,598 $
— $ 698,406
Agricultural 98,180 148 904
— 99,232
Real Estate 2,020,556 23,542 43,846 58 2,088,002
Consumer 379,397 352 1,424 4 381,177
Total $ 3,154,699 $ 43,284 $ 68,772 $ 62 $ 3,266,817
September 30, 2014 Pass Special Substandard Doubtful Total
Commercial $ 597,717 $ 3,649 $ 10,726 $
— $ 612,092
Agricultural 86,272 93 353
— 86,718
Real Estate 1,710,201 18,741 45,613 84 1,774,639
Consumer 352,850 601 1,527 3 354,981
Total $ 2,747,040 $ 23,084 $ 58,219 $ 87 $ 2,828,430
December 31, 2014 Pass Special Substandard Doubtful Total
Commercial $ 626,266 $ 3,853 $ 9,835 $
— $ 639,954
Agricultural 105,101 91 502
— 105,694
Real Estate 1,765,886 15,106 41,722 140 1,822,854
Consumer 358,953 403 1,329 1 360,686
Total $ 2,856,206 $ 19,453 $ 53,388 $ 141 $ 2,929,188
At September 30, 2015 and 2014, and December 31, 2014,
the Company’s past due loans are as follows (in
thousands):
September 30, 2015 15-59 60-89 Greater Total Past Current Total Loans 90 Days
Commercial $ 11,554 $ 1,043 $ 202 $ 12,799 $ 685,607 $ 698,406 $
—
Agricultural 169 28 33 230 99,002 99,232
—
Real Estate 19,392 1,267 2,328 22,987 2,065,015 2,088,002 21
Consumer 1,657 467 53 2,177 379,000 381,177 28
Total $ 32,772 $ 2,805 $ 2,616 $ 38,193 $ 3,228,624 $ 3,266,817 $ 49
September 30, 2014 15-59 60-89 Greater Total Past Current Total Loans 90 Days
Commercial $ 2,726 $ 110 $ 316 $ 3,152 $ 608,940 $ 612,092 $ 111
Agricultural 294 59
— 353 86,365 86,718
—
Real Estate 15,404 930 2,216 18,550 1,756,089 1,774,639 102
Consumer 1,742 292 297 2,331 352,650 354,981 50
Total $ 20,166 $ 1,391 $ 2,829 $ 24,386 $ 2,804,044 $ 2,828,430 $ 263
December 31, 2014 15-59 60-89 Greater Total Past Current Total Loans 90 Days
Commercial $ 4,611 $ 94 $ 175 $ 4,880 $ 635,074 $ 639,954 $ 24
Agricultural 437 42
— 479 105,215 105,694
—
Real Estate 12,002 707 1,868 14,577 1,808,277 1,822,854 207
Consumer 2,322 496 134 2,952 357,734 360,686 30
Total $ 19,372 $ 1,339 $ 2,177 $ 22,888 $ 2,906,300 $ 2,929,188 $ 261
* The Company monitors commercial,
agricultural and real estate loans after such loans are 15 days
past due. Consumer loans are monitored after such loans are 30 days
past due.
The following table details the allowance for loan losses at
September 30, 2015 and 2014, and December 31, 2014 by
portfolio segment (in thousands). There were no allowances for
purchased credit impaired loans at September 30, 2015 and
2014, or December 31, 2014. Allocation of a portion of the
allowance to one category of loans does not preclude its
availability to absorb losses in other categories.
September 30, 2015 Commercial Agricultural Real Estate Consumer Total
Loans individually evaluated for impairment $ 1,666 $ 47 $ 2,844 $ 88 $ 4,645
Loans collectively evaluated for impairment 10,195 867 20,954 3,759 35,775
Total $ 11,861 $ 914 $ 23,798 $ 3,847 $ 40,420
September 30, 2014 Commercial Agricultural Real Estate Consumer Total
Loans individually evaluated for impairment $ 1,160 $ 37 $ 3,256 $ 181 $ 4,634
Loans collectively evaluated for impairment 6,326 348 23,043 2,037 31,754
Total $ 7,486 $ 385 $ 26,299 $ 2,218 $ 36,388
December 31, 2014 Commercial Agricultural Real Estate Consumer Total
Loans individually evaluated for impairment $ 1,171 $ 57 $ 2,867 $ 118 $ 4,213
Loans collectively evaluated for impairment 6,819 470 23,790 1,532 32,611
Total $ 7,990 $ 527 $ 26,657 $ 1,650 $ 36,824
The tables above for 2014 have been changed to conform to the 2015
presentation.
Changes in the allowance for loan losses for the three and nine
months ended September 30, 2015 and 2014 are summarized as
follows by portfolio segment (in thousands):
Three months ended September 30, 2015 Commercial Agricultural Real Estate Consumer Total
Beginning balance $ 11,456 $ 392 $ 24,342 $ 2,809 $ 38,999
Provision for loan losses 1,283 544 (369 ) 1,206 2,664
Recoveries 52
— 65 117 234
Charge-offs (930 ) (22 ) (240 ) (285 ) (1,477 )
Ending balance $ 11,861 $ 914 $ 23,798 $ 3,847 $ 40,420
Three months ended September 30, 2014 Commercial Agricultural Real Estate Consumer Total
Beginning balance $ 6,861 $ 364 $ 26,561 $ 2,106 $ 35,892
Provision for loan losses 635 7 (80 ) 334 896
Recoveries 72 14 42 86 214
Charge-offs (82 )
— (224 ) (308 ) (614 )
Ending balance $ 7,486 $ 385 $ 26,299 $ 2,218 $ 36,388
Nine months ended September 30, 2015 Commercial Agricultural Real Estate Consumer Total
Beginning balance $ 7,990 $ 527 $ 26,657 $ 1,650 $ 36,824
Provision for loan losses 5,072 486 (2,884 ) 2,834 5,508
Recoveries 249 2 438 329 1,018
Charge-offs (1,450 ) (101 ) (413 ) (966 ) (2,930 )
Ending balance $ 11,861 $ 914 $ 23,798 $ 3,847 $ 40,420
Nine months ended September 30, 2014 Commercial Agricultural Real Estate Consumer Total
Beginning balance $ 6,440 $ 383 $ 24,940 $ 2,137 $ 33,900
Provision for loan losses 1,189 (14 ) 1,988 547 3,710
Recoveries 225 17 361 386 989
Charge-offs (368 ) (1 ) (990 ) (852 ) (2,211 )
Ending balance $ 7,486 $ 385 $ 26,299 $ 2,218 $ 36,388
The Company’s recorded investment in loans as of
September 30, 2015 and 2014, and December 31, 2014
related to the balance in the allowance for loan losses on the
basis of the Company’s impairment methodology was as follows
(in thousands). Purchased credit impaired loans of $2,422,000,
$2,383,000 and $2,151,000 at September 30, 2015 and 2014, and
December 31, 2014, respectively, are included in loans
individually evaluated for impairment.
September 30, 2015 Commercial Agricultural Real Estate Consumer Total
Loans individually evaluated for impairment $ 5,077 $ 75 $ 16,124 $ 512 $ 21,788
Loans collectively evaluated for impairment 693,329 99,157 2,071,878 380,665 3,245,029
Total $ 698,406 $ 99,232 $ 2,088,002 $ 381,177 $ 3,266,817
September 30, 2014 Commercial Agricultural Real Estate Consumer Total
Loans individually evaluated for impairment $ 3,481 $ 102 $ 17,712 $ 798 $ 22,093
Loans collectively evaluated for impairment 608,611 86,616 1,756,927 354,183 2,806,337
Total $ 612,092 $ 86,718 $ 1,774,639 $ 354,981 $ 2,828,430
December 31, 2014 Commercial Agricultural Real Estate Consumer Total
Loans individually evaluated for impairment $ 3,193 $ 165 $ 16,218 $ 618 $ 20,194
Loans collectively evaluated for impairment 636,761 105,529 1,806,636 360,068 2,908,994
Total $ 639,954 $ 105,694 $ 1,822,854 $ 360,686 $ 2,929,188
The tables above for 2014 have been changed to conform to the 2015
presentation.
The Company’s loans that were modified in the three and nine
months ended September 30, 2015 and 2014 and considered
troubled debt restructurings are as follows (in thousands):
Three Months Ended September 30, 2015
Nine Months Ended September 30, 2015
Number Pre- Post- Number Pre- Post-
Commercial 1 $ 66 $ 66 3 $ 139 $ 139
Agricultural
—
—
— 3 129 129
Real Estate 1 149 149 2 228 228
Consumer 2 32 32 5 60 60
Total 4 $ 247 $ 247 13 $
556 $
556
Three Months Ended September 30, 2014
Nine Months Ended September 30, 2014
Number Pre- Combined Number Pre- Combined
Commercial 1 $ 158 $ 158 6 $ 557 $ 557
Agricultural
—
—
— 1 39 39
Real Estate 1 40 40 5 630 630
Consumer
—
—
— 3 11 11
Total 2 $ 198 $ 198 15 $ 1,237 $ 1,237
The balances below provide information as to how the loans were
modified as troubled debt restructured loans during the three and
nine months ended September 30, 2015 and 2014 (in
thousands):
Three Months Ended September 30, 2015
Nine Months Ended September 30, 2015
Adjusted Extended Combined Adjusted Extended Combined
Commercial $
— $ 66 $
— $
— $ 139 $
—
Agricultural
—
—
—
— 129
—
Real Estate
— 149
—
— 149 79
Consumer
— 32
—
— 36 24
Total $
— $ 247 $
— $
— $ 453 $ 103
Three Months Ended September 30, 2014
Nine Months Ended September 30, 2014
Adjusted Extended Combined Adjusted Extended Combined
Commercial $
— $ 158 $
— $
— $ 255 $ 302
Agricultural
—
—
—
—
— 39
Real Estate
—
— 40
— 118 512
Consumer
—
—
—
— 8 3
Total $
— $ 158 $ 40 $
— $ 381 $ 856
During the three months ended September 30, 2015 and 2014, no
loans were modified as troubled debt restructured loans within the
previous 12 months and for which there was a payment default.
During the nine months ended September 30, 2015 and 2014, one
loan was modified in each nine-month period as a troubled debt
restructured loan within the previous 12 months and for which there
was a payment default. A default for purposes of this disclosure is
a troubled debt restructured loan in which the borrower is 90 days
past due or more or results in the foreclosure and repossession of
the applicable collateral. The loans with payment default are as
follows (dollars in thousands):
Nine Months Ended September 30, 2015
Number Balance
Commercial 1 $ 111
Agriculture
—
—
Real Estate
—
—
Consumer
—
—
Total 1 $ 111
Nine Months Ended September 30, 2014
Number Balance
Commercial
— $
—
Agriculture
—
—
Real Estate
—
—
Consumer 1 32
Total 1 $ 32
As of September 30, 2015, the Company has no commitments to
lend additional funds to loan customers whose terms have been
modified in troubled debt restructurings.
Our subsidiary bank has established a line of credit with the
Federal Home Loan Bank of Dallas (FHLB) to provide liquidity and
meet pledging requirements for those customers eligible to have
securities pledged to secure certain uninsured deposits. At
September 30, 2015, $1,752,727,000 in loans held by our bank
subsidiary were subject to blanket liens as security for this line
of credit. At September 30, 2015, $170,028,000 in advances and
$5,000,000 in letters of credit were outstanding under this line of
credit. The letters of credit were pledged as collateral for public
funds held by our bank subsidiary. |
