Financing Receivables [Text Block] | Note 4. The Company uses a risk grading matrix to assign a risk grade to each loan in its portfolio. Loan risk ratings may ● Pass -- This grade is assigned to loans with acceptable credit quality and risk. The Company further segments this grade based on borrower characteristics that include capital strength, earnings stability, liquidity, leverage, and industry conditions. ● Special Mention -- This grade is assigned to loans that require an above average degree of supervision and attention. These loans have the characteristics of an asset with acceptable credit quality and risk; however, adverse economic or financial conditions exist that create potential weaknesses deserving of management’s close attention. If potential weaknesses are not may ● Substandard -- This grade is assigned to loans that have well defined weaknesses that may ● Doubtful -- This grade is assigned to loans that have the weaknesses inherent in substandard loans; however, the weaknesses are so severe that collection or liquidation in full is unlikely based on current facts, conditions, and values. Due to certain specific pending factors, the amount of loss cannot yet be determined. ● Loss -- This grade is assigned to loans that will be charged off or charged down when payments, including the timing and value of payments, are uncertain. This risk grade does not no not may The following tables present the recorded investment of the loan portfolio, by loan class and credit quality, as of the dates indicated. Losses on covered loans are generally reimbursable by the FDIC at the applicable loss share percentage, 80%; June 30, 2017 Special (Amounts in thousands) Pass Mention Substandard Doubtful Loss Total Non-covered loans Commercial loans Construction, development, and other land $ 55,503 $ 791 $ 2,575 $ - $ - $ 58,869 Commercial and industrial 84,033 1,496 3,926 - - 89,455 Multi-family residential 134,364 5,929 935 - - 141,228 Single family non-owner occupied 130,245 6,832 5,073 - - 142,150 Non-farm, non-residential 584,473 10,271 8,326 202 - 603,272 Agricultural 5,708 250 128 - - 6,086 Farmland 25,542 642 2,416 - - 28,600 Consumer real estate loans Home equity lines 100,238 781 1,441 - - 102,460 Single family owner occupied 473,303 4,109 23,170 - - 500,582 Owner occupied construction 46,240 - 234 400 - 46,874 Consumer and other loans Consumer loans 72,192 25 172 2 - 72,391 Other 4,296 - - - - 4,296 Total non-covered loans 1,716,137 31,126 48,396 604 - 1,796,263 Covered loans Commercial loans Construction, development, and other land 2,418 248 894 - - 3,560 Commercial and industrial 592 - 11 - - 603 Single family non-owner occupied 917 - 103 - - 1,020 Non-farm, non-residential 2,819 490 459 - - 3,768 Agricultural 24 - - - - 24 Farmland 118 - 258 - - 376 Consumer real estate loans Home equity lines 13,265 16,760 793 - - 30,818 Single family owner occupied 3,730 878 1,068 - - 5,676 Total covered loans 23,883 18,376 3,586 - - 45,845 Total loans $ 1,740,020 $ 49,502 $ 51,982 $ 604 $ - $ 1,842,108 December 31, 2016 Special (Amounts in thousands) Pass Mention Substandard Doubtful Loss Total Non-covered loans Commercial loans Construction, development, and other land $ 55,188 $ 980 $ 780 $ - $ - $ 56,948 Commercial and industrial 87,581 3,483 1,137 - 3 92,204 Multi-family residential 126,468 6,992 768 - - 134,228 Single family non-owner occupied 131,934 5,466 5,565 - - 142,965 Non-farm, non-residential 579,134 10,236 9,102 202 - 598,674 Agricultural 5,839 164 - - - 6,003 Farmland 28,887 1,223 1,619 - - 31,729 Consumer real estate loans Home equity lines 104,033 871 1,457 - - 106,361 Single family owner occupied 475,402 4,636 20,381 472 - 500,891 Owner occupied construction 43,833 - 702 - - 44,535 Consumer and other loans Consumer loans 77,218 11 216 - - 77,445 Other 3,971 - - - - 3,971 Total non-covered loans 1,719,488 34,062 41,727 674 3 1,795,954 Covered loans Commercial loans Construction, development, and other land 2,768 803 999 - - 4,570 Commercial and industrial 882 - 13 - - 895 Multi-family residential - - 8 - - 8 Single family non-owner occupied 796 63 103 - - 962 Non-farm, non-residential 6,423 537 552 - - 7,512 Agricultural 25 - - - - 25 Farmland 132 - 265 - - 397 Consumer real estate loans Home equity lines 14,283 20,763 771 - - 35,817 Single family owner occupied 4,601 928 1,200 - - 6,729 Consumer and other loans Consumer loans 79 - - - - 79 Total covered loans 29,989 23,094 3,911 - - 56,994 Total loans $ 1,749,477 $ 57,156 $ 45,638 $ 674 $ 3 $ 1,852,948 The Company identifies loans for potential impairment through a variety of means, including, but not not The following table presents the recorded investment, unpaid principal balance, and related allowance for loan losses for impaired loans, excluding PCI loans, as of the dates indicated: June 30, 2017 December 31, 2016 Unpaid Unpaid Recorded Principal Related Recorded Principal Related (Amounts in thousands) Investment Balance Allowance Investment Balance Allowance Impaired loans with no related allowance Commercial loans Construction, development, and other land $ 9 $ 9 $ - $ 33 $ 35 $ - Commercial and industrial 316 335 - 346 383 - Multi-family residential 543 639 - 294 369 - Single family non-owner occupied 3,280 3,475 - 3,084 3,334 - Non-farm, non-residential 3,308 4,047 - 3,829 4,534 - Agricultural 128 128 - - - - Farmland 1,000 1,042 - 1,161 1,188 - Consumer real estate loans Home equity lines 1,039 1,113 - 913 968 - Single family owner occupied 15,970 17,130 - 11,779 12,630 - Owner occupied construction 234 234 - 573 589 - Consumer and other loans Consumer loans 42 44 - 62 103 - Total impaired loans with no allowance 25,869 28,196 - 22,074 24,133 - Impaired loans with a related allowance Commercial loans Construction, development, and other land - - - - - - Commercial and industrial 2,324 2,324 185 - - - Single family non-owner occupied 344 344 61 351 351 31 Non-farm, non-residential 865 874 124 - - - Farmland 410 418 50 430 430 18 Consumer real estate loans Home equity lines - - - - - - Single family owner occupied 3,855 3,858 667 4,118 4,174 770 Total impaired loans with an allowance 7,798 7,818 1,087 4,899 4,955 819 Total impaired loans (1) $ 33,667 $ 36,014 $ 1,087 $ 26,973 $ 29,088 $ 819 ____________________________________ ( 1 Includes loans totaling $17.09 June 30, 2017, $16.89 December 31, 2016, not The following table presents the average recorded investment and interest income recognized on impaired loans, excluding PCI loans, for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Amounts in thousands) Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Impaired loans with no related allowance: Commercial loans Construction, development, and other land $ - $ 10 $ - $ 571 $ - $ 11 $ - $ 370 Commercial and industrial 1 321 4 1,039 3 325 4 593 Multi-family residential 3 557 - 299 3 457 - 184 Single family non-owner occupied 34 3,308 - 3,588 77 3,317 16 2,803 Non-farm, non-residential 21 3,330 171 9,893 25 3,027 242 10,814 Agricultural - 128 - - - 127 - - Farmland - 1,003 4 208 - 1,005 4 176 Consumer real estate loans Home equity lines 5 1,052 8 1,450 20 1,047 15 1,398 Single family owner occupied 93 15,943 109 13,063 180 14,074 163 12,067 Owner occupied construction 2 234 2 583 5 233 5 412 Consumer and other loans Consumer loans 2 43 - 38 2 46 - 36 Total impaired loans with no related allowance 161 25,929 298 30,732 315 23,669 449 28,853 Impaired loans with a related allowance: Commercial loans Construction, development, and other land - - - - - 214 - - Commercial and industrial 38 2,352 - - 53 1,332 - - Single family non-owner occupied 5 344 6 677 13 344 13 517 Non-farm, non-residential 5 867 82 5,307 15 1,011 170 5,333 Farmland - 411 - - - 205 - - Consumer real estate loans Home equity lines - - - - - 209 - - Single family owner occupied 33 3,393 29 4,550 68 4,883 67 4,755 Owner occupied construction - - - - - - - 173 Total impaired loans with a related allowance 81 7,367 117 10,534 149 8,198 250 10,778 Total impaired loans $ 242 $ 33,296 $ 415 $ 41,266 $ 464 $ 31,867 $ 699 $ 39,631 The following tables provide information on impaired PCI loan pools as of and for the dates indicated: June 30, 2017 December 31, 2016 (Amounts in thousands, except impaired loan pools) Unpaid principal balance $ 1,048 $ 1,086 Recorded investment 1,042 1,085 Allowance for loan losses related to PCI loan pools 4 12 Impaired PCI loan pools 1 1 Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Amounts in thousands) Interest income recognized $ 10 $ 35 $ 20 $ 118 Average recorded investment 1,053 2,666 1,064 2,728 The Company generally places a loan on nonaccrual status when it is 90 not June 30, 2017 December 31, 2016 (Amounts in thousands) Non-covered Covered Total Non-covered Covered Total Commercial loans Construction, development, and other land $ 131 $ 17 $ 148 $ 72 $ 32 $ 104 Commercial and industrial 204 - 204 332 13 345 Multi-family residential 543 11 554 294 - 294 Single family non-owner occupied 1,350 21 1,371 1,242 24 1,266 Non-farm, non-residential 3,726 27 3,753 3,295 30 3,325 Agricultural 128 - 128 - - - Farmland 1,410 - 1,410 1,591 - 1,591 Consumer real estate loans Home equity lines 838 280 1,118 705 400 1,105 Single family owner occupied 11,780 90 11,870 7,924 109 8,033 Owner occupied construction - - - 336 - 336 Consumer and other loans Consumer loans 36 - 36 63 - 63 Total nonaccrual loans $ 20,146 $ 446 $ 20,592 $ 15,854 $ 608 $ 16,462 The following tables present the aging of past due loans, by loan class, as of the dates indicated. Nonaccrual loans 30 not no 90 June 30, 2017, December 31, 2016. June 30, 2017 30 - 59 Days 60 - 89 Days 90+ Days Total Current Total (Amounts in thousands) Past Due Past Due Past Due Past Due Loans Loans Non-covered loans Commercial loans Construction, development, and other land $ 111 $ - $ - $ 111 $ 58,758 $ 58,869 Commercial and industrial 215 107 146 468 88,987 89,455 Multi-family residential 200 - 69 269 140,959 141,228 Single family non-owner occupied 1,321 25 743 2,089 140,061 142,150 Non-farm, non-residential 484 179 2,070 2,733 600,539 603,272 Agricultural - - 128 128 5,958 6,086 Farmland 142 - 343 485 28,115 28,600 Consumer real estate loans Home equity lines 128 115 300 543 101,917 102,460 Single family owner occupied 2,582 1,956 5,511 10,049 490,533 500,582 Owner occupied construction 282 - - 282 46,592 46,874 Consumer and other loans Consumer loans 367 65 3 435 71,956 72,391 Other - - - - 4,296 4,296 Total non-covered loans 5,832 2,447 9,313 17,592 1,778,671 1,796,263 Covered loans Commercial loans Construction, development, and other land - - 17 17 3,543 3,560 Commercial and industrial - - - - 603 603 Single family non-owner occupied - - - - 1,020 1,020 Non-farm, non-residential - - - - 3,768 3,768 Agricultural - - - - 24 24 Farmland - - - - 376 376 Consumer real estate loans Home equity lines 283 124 35 442 30,376 30,818 Single family owner occupied - 3 68 71 5,605 5,676 Total covered loans 283 127 120 530 45,315 45,845 Total loans $ 6,115 $ 2,574 $ 9,433 $ 18,122 $ 1,823,986 $ 1,842,108 December 31, 2016 30 - 59 Days 60 - 89 Days 90+ Days Total Current Total (Amounts in thousands) Past Due Past Due Past Due Past Due Loans Loans Non-covered loans Commercial loans Construction, development, and other land $ 33 $ 5 $ 17 $ 55 $ 56,893 $ 56,948 Commercial and industrial 174 30 149 353 91,851 92,204 Multi-family residential 163 - 281 444 133,784 134,228 Single family non-owner occupied 1,302 159 835 2,296 140,669 142,965 Non-farm, non-residential 1,235 332 2,169 3,736 594,938 598,674 Agricultural - 5 - 5 5,998 6,003 Farmland 224 343 565 1,132 30,597 31,729 Consumer real estate loans Home equity lines 78 136 658 872 105,489 106,361 Single family owner occupied 4,777 2,408 3,311 10,496 490,395 500,891 Owner occupied construction 342 336 - 678 43,857 44,535 Consumer and other loans Consumer loans 371 90 15 476 76,969 77,445 Other - - - - 3,971 3,971 Total non-covered loans 8,699 3,844 8,000 20,543 1,775,411 1,795,954 Covered loans Commercial loans Construction, development, and other land 434 - 32 466 4,104 4,570 Commercial and industrial - - - - 895 895 Multi-family residential - - - - 8 8 Single family non-owner occupied 24 - - 24 938 962 Non-farm, non-residential 32 - - 32 7,480 7,512 Agricultural - - - - 25 25 Farmland - - - - 397 397 Consumer real estate loans Home equity lines 108 146 62 316 35,501 35,817 Single family owner occupied 58 - 39 97 6,632 6,729 Owner occupied construction - - - - - - Consumer and other loans Consumer loans - - - - 79 79 Total covered loans 656 146 133 935 56,059 56,994 Total loans $ 9,355 $ 3,990 $ 8,133 $ 21,478 $ 1,831,470 $ 1,852,948 The Company may $250 $250 six not No June 30, 2017, December 31, 2016. The following table presents loans modified as TDRs, by loan class and accrual status, as of the dates indicated: June 30, 2017 December 31, 2016 (Amounts in thousands) Nonaccrual (1) Accruing Total Nonaccrual (1) Accruing Total Commercial loans Single family non-owner occupied $ 35 $ 880 $ 915 $ 38 $ 892 $ 930 Non-farm, non-residential - 295 295 - 4,160 4,160 Consumer real estate loans Home equity lines - 152 152 - 158 158 Single family owner occupied 1,559 7,023 8,582 905 7,503 8,408 Owner occupied construction - 235 235 341 239 580 Total TDRs $ 1,594 $ 8,585 $ 10,179 $ 1,284 $ 12,952 $ 14,236 Allowance for loan losses related to TDRs $ 770 $ 670 ___________________________________ ( 1 Nonaccrual TDRs are included in total nonaccrual loans disclosed in the nonaccrual table above. The following table presents interest income recognized on TDRs for the periods indicated: Three Months Ended June 30, Six Months Ended June 30, 2017 2016 2017 2016 (Amounts in thousands) Interest income recognized $ 1 $ 75 $ 85 $ 153 The following tables present loans modified as TDRs, by type of concession made and loan class, that were restructured during the periods indicated. The post-modification recorded investment represents the loan balance immediately following modification. Three Months Ended June 30, 2017 2016 (Amounts in thousands) Total Contracts Pre-modification Recorded Investment Post-modification Recorded Investment Total Contracts Pre-modification Recorded Investment Post-modification Recorded Investment Below market interest rate Single family owner occupied 1 $ 241 $ 241 - $ - $ - Below market interest rate and extended payment term Single family owner occupied 5 949 949 1 115 115 Total 6 $ 1,190 $ 1,190 1 $ 115 $ 115 Six Months Ended June 30, 2017 2016 (Amounts in thousands) Total Contracts Pre-modification Recorded Investment Post-modification Recorded Investment Total Contracts Pre-modification Recorded Investment Post-modification Recorded Investment Below market interest rate Single family owner occupied 1 $ 241 $ 241 - $ - $ - Below market interest rate and extended payment term Single family owner occupied 5 949 949 1 115 115 Total 6 $ 1,190 $ 1,190 1 $ 115 $ 115 There were no 12 June 30, 2017 2016. The following table provides information about other real estate owned (“OREO”), which consists of properties acquired through foreclosure, as of the dates indicated: June 30, 2017 December 31, 2016 (Amounts in thousands) Non-covered OREO $ 3,914 $ 5,109 Covered OREO 124 276 Total OREO $ 4,038 $ 5,385 Non-covered OREO secured by residential real estate $ 1,518 $ 1,746 Residential real estate loans in the foreclosure process (1) 5,127 2,539 _________________________________________________________________________________________ ( 1 The recorded investment in consumer mortgage loans collateralized by residential real estate that are in the process of foreclosure according to local requirements of the applicable jurisdiction. |