Financing Receivables [Text Block] | Note 5. Credit Quality 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%; December 31, 2017 Special (Amounts in thousands) Pass Mention Substandard Doubtful Loss Total Non-covered loans Commercial loans Construction, development, and other land $ 57,768 $ 1,367 $ 882 $ - $ - $ 60,017 Commercial and industrial 87,181 3,721 1,286 - - 92,188 Multi-family residential 118,509 5,663 1,030 - - 125,202 Single family non-owner occupied 130,689 7,271 3,710 - - 141,670 Non-farm, non-residential 596,616 12,493 7,351 173 - 616,633 Agricultural 6,639 294 102 - - 7,035 Farmland 22,875 210 2,564 - - 25,649 Consumer real estate loans Home equity lines 100,833 618 1,754 - - 103,205 Single family owner occupied 471,382 5,480 25,824 - - 502,686 Owner occupied construction 38,947 - 231 - - 39,178 Consumer and other loans Consumer loans 70,448 13 311 - - 70,772 Other 5,001 - - - - 5,001 Total non-covered loans 1,706,888 37,130 45,045 173 - 1,789,236 Covered loans Commercial loans Construction, development, and other land 1 38 - - - 39 Single family non-owner occupied 265 - 19 - - 284 Non-farm, non-residential - - 9 - - 9 Consumer real estate loans Home equity lines 11,338 11,685 697 - - 23,720 Single family owner occupied 2,996 411 489 - - 3,896 Total covered loans 14,600 12,134 1,214 - - 27,948 Total loans $ 1,721,488 $ 49,264 $ 46,259 $ 173 $ - $ 1,817,184 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: December 31, 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 $ 727 $ 988 $ - $ 33 $ 35 $ - Commercial and industrial 315 1,142 - 346 383 - Multi-family residential 499 1,010 - 294 369 - Single family non-owner occupied 2,042 3,521 - 3,084 3,334 - Non-farm, non-residential 3,022 5,955 - 3,829 4,534 - Agricultural 102 107 - - - - Farmland 395 414 - 1,161 1,188 - Consumer real estate loans Home equity lines 1,621 1,770 - 913 968 - Single family owner occupied 16,633 18,964 - 11,779 12,630 - Owner occupied construction 231 231 - 573 589 - Consumer and other loans Consumer loans 141 144 - 62 103 - Total impaired loans with no allowance 25,728 34,246 - 22,074 24,133 - Impaired loans with a related allowance Commercial loans Commercial and industrial 343 343 270 - - - Single family non-owner occupied 446 446 62 351 351 31 Non-farm, non-residential 262 263 15 - - - Farmland 936 974 233 430 430 18 Consumer real estate loans Single family owner occupied 5,586 5,606 1,978 4,118 4,174 770 Total impaired loans with an allowance 7,573 7,632 2,558 4,899 4,955 819 Total impaired loans (1) $ 33,301 $ 41,878 $ 2,558 $ 26,973 $ 29,088 $ 819 ( 1 Includes loans totaling $20.13 December 31, 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: Year Ended December 31, 2017 2016 2015 (Amounts in thousands) 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 $ 56 $ 455 $ 22 $ 344 $ 5 $ 481 Commercial and industrial 14 556 16 646 - 324 Multi-family residential 53 523 21 308 4 269 Single family non-owner occupied 106 3,214 178 3,076 88 2,140 Non-farm, non-residential 122 4,052 307 8,573 312 11,677 Agricultural 5 124 - - - - Farmland 17 853 55 437 16 195 Consumer real estate loans Home equity lines 50 1,365 30 1,223 36 813 Single family owner occupied 488 15,758 343 12,330 356 12,708 Owner occupied construction 8 234 9 497 10 359 Consumer and other loans Consumer loans 9 75 5 60 8 98 Total impaired loans with no related allowance 928 27,209 986 27,494 835 29,064 Impaired loans with a related allowance: Commercial loans Construction, development, and other land - 107 - - - - Commercial and industrial 103 1,376 - - - - Single family non-owner occupied 27 479 23 518 25 575 Non-farm, non-residential 15 789 215 3,831 65 4,987 Farmland 22 442 14 108 - - Consumer real estate loans Home equity lines - 104 - - - - Single family owner occupied 161 4,805 118 4,452 26 3,731 Owner occupied construction - - - 87 1 178 Total impaired loans with a related allowance 328 8,102 370 8,996 117 9,471 Total impaired loans $ 1,256 $ 35,311 $ 1,356 $ 36,490 $ 952 $ 38,535 The following tables provide information on impaired PCI loan pools as of and for the dates indicated: December 31, 2017 2016 (Amounts in thousands, except impaired loan pools) Unpaid principal balance $ - $ 1,086 Recorded investment - 1,085 Allowance for loan losses related to PCI loan pools - 12 Impaired PCI loan pools - 1 Year Ended December 31, 2017 2016 2015 (Amounts in thousands) Interest income recognized $ 20 $ 142 $ 364 Average recorded investment 528 1,929 3,309 The Company generally places a loan on nonaccrual status when it is 90 not December 31, 2017 2016 (Amounts in thousands) Non-covered Covered Total Non-covered Covered Total Commercial loans Construction, development, and $ - $ - $ - $ 72 $ 32 $ 104 Commercial and industrial 211 - 211 332 13 345 Multi-family residential 498 - 498 294 - 294 Single family non-owner occupied 851 19 870 1,242 24 1,266 Non-farm, non-residential 2,448 - 2,448 3,295 30 3,325 Agricultural 102 - 102 - - - Farmland 805 - 805 1,591 - 1,591 Consumer real estate loans Home equity lines 882 306 1,188 705 400 1,105 Single family owner occupied 13,108 17 13,125 7,924 109 8,033 Owner occupied construction - - - 336 - 336 Consumer and other loans Consumer loans 92 - 92 63 - 63 Total nonaccrual loans $ 18,997 $ 342 $ 19,339 $ 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 delinquency category. Loans acquired with credit deterioration, with a discount, continue to accrue interest based on expected cash flows; therefore, PCI loans are not 90 $1 December 31, 2017. no 90 December 31, 2016. December 31, 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 $ 20 $ 365 $ - $ 385 $ 59,632 $ 60,017 Commercial and industrial 232 40 142 414 91,774 92,188 Multi-family residential 544 - 185 729 124,473 125,202 Single family non-owner occupied 223 302 331 856 140,814 141,670 Non-farm, non-residential 2,433 383 1,536 4,352 612,281 616,633 Agricultural 123 - - 123 6,912 7,035 Farmland 113 - 692 805 24,844 25,649 Consumer real estate loans Home equity lines 226 198 485 909 102,296 103,205 Single family owner occupied 6,959 2,418 8,186 17,563 485,123 502,686 Owner occupied construction 326 79 - 405 38,773 39,178 Consumer and other loans Consumer loans 439 97 17 553 70,219 70,772 Other - - - - 5,001 5,001 Total non-covered loans 11,638 3,882 11,574 27,094 1,762,142 1,789,236 Covered loans Commercial loans Construction, development, and other land - - - - 39 39 Single family non-owner occupied - - - - 284 284 Non-farm, non-residential - - - - 9 9 Consumer real estate loans Home equity lines 402 - 173 575 23,145 23,720 Single family owner occupied 70 - - 70 3,826 3,896 Total covered loans 472 - 173 645 27,303 27,948 Total loans $ 12,110 $ 3,882 $ 11,747 $ 27,739 $ 1,789,445 $ 1,817,184 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 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 December 31, 201 7, December 31, 2016. The following table presents loans modified as TDRs, by loan class and accrual status, as of the dates indicated: December 31, 2017 2016 (Amounts in thousands) Nonaccrual (1) Accruing Total Nonaccrual (1) Accruing Total Commercial loans Single family non-owner occupied $ 364 $ 528 $ 892 $ 38 $ 892 $ 930 Non-farm, non-residential - 295 295 - 4,160 4,160 Consumer real estate loans Home equity lines - 145 145 - 158 158 Single family owner occupied 1,565 6,496 8,061 905 7,503 8,408 Owner occupied construction - 233 233 341 239 580 Consumer and other loans Consumer loans - 37 37 - - - Total TDRs $ 1,929 $ 7,734 $ 9,663 $ 1,284 $ 12,952 $ 14,236 Allowance for loan losses related to TDRs $ 642 $ 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: Year Ended December 31, 2017 2016 2015 (Amounts in thousands) Interest income recognized $ 222 $ 424 $ 608 The following table presents 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. Year Ended December 31, 2017 2016 Total Pre-Modification Post-Modification Total Pre-Modification Post-Modification (Amounts in thousands) Contracts Recorded Investment Recorded Investment Contracts Recorded Investment Recorded Investment Below market interest rate and Single family owner occupied 5 $ 207 $ 207 1 $ 115 $ 115 Consumer loans 1 36 36 - - Total 6 $ 243 $ 243 1 $ 115 $ 115 The following table presents loans modified as TDRs, by loan class, that were restructured during the previous 12 Year Ended December 31, 2017 2016 Total Recorded Total Recorded Contracts Investment Contracts Investment (Amounts in thousands) Single family owner occupied 1 $ 14 - $ - Total 1 $ 14 - $ - The following table provides information about OREO, which consists of properties acquired through foreclosure, as of the dates indicated: December 31, 2017 2016 (Amounts in thousands) Non-covered OREO $ 2,409 $ 5,109 Covered OREO 105 276 Total OREO $ 2,514 $ 5,385 Non-covered OREO secured by residential real estate $ 2,209 $ 1,746 Residential real estate loans in the foreclosure process (1) 9,921 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 |