Financing Receivables [Text Block] | Note 4 . 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%; March 31, 2018 Special (Amounts in thousands) Pass Mention Substandard Doubtful Loss Total Non-covered loans Commercial loans Construction, development, and other land $ 50,157 $ 951 $ 1,156 $ - $ - $ 52,264 Commercial and industrial 86,653 3,373 335 - - 90,361 Multi-family residential 117,038 2,583 1,035 - - 120,656 Single family non-owner occupied 131,129 6,903 4,195 - - 142,227 Non-farm, non-residential 596,704 11,750 10,245 173 - 618,872 Agricultural 8,865 198 287 - - 9,350 Farmland 20,885 205 2,477 - - 23,567 Consumer real estate loans Home equity lines 99,123 601 1,752 - - 101,476 Single family owner occupied 475,892 5,088 25,388 - - 506,368 Owner occupied construction 29,213 - 305 - - 29,518 Consumer and other loans Consumer loans 68,353 6 175 - - 68,534 Other 4,510 - - - - 4,510 Total non-covered loans 1,688,522 31,658 47,350 173 - 1,767,703 Covered loans Commercial loans Construction, development, and other land - 37 - - - 37 Single family non-owner occupied 259 - 18 - - 277 Non-farm, non-residential - - 9 - - 9 Consumer real estate loans Home equity lines 10,789 9,714 935 - - 21,438 Single family owner occupied 2,856 387 402 - - 3,645 Total covered loans 13,904 10,138 1,364 - - 25,406 Total loans $ 1,702,426 $ 41,796 $ 48,714 $ 173 $ - $ 1,793,109 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 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: March 31, 2018 December 31, 2017 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 $ 976 $ 1,160 $ - $ 727 $ 988 $ - Commercial and industrial 152 930 - 315 1,142 - Multi-family residential 663 1,172 - 499 1,010 - Single family non-owner occupied 2,406 3,642 - 2,042 3,521 - Non-farm, non-residential 5,714 8,338 - 3,022 5,955 - Agricultural 287 293 - 102 107 - Farmland 897 959 - 395 414 - Consumer real estate loans Home equity lines 1,743 1,928 - 1,621 1,770 - Single family owner occupied 15,191 17,558 - 16,633 18,964 - Owner occupied construction 230 230 - 231 231 - Consumer and other loans Consumer loans 75 77 - 141 144 - Total impaired loans with no allowance 28,334 36,287 - 25,728 34,246 - Impaired loans with a related allowance Commercial loans Construction, development, and other land - - - - - - Commercial and industrial - - - 343 343 270 Single family non-owner occupied 444 444 60 446 446 62 Non-farm, non-residential 1,378 1,378 591 262 263 15 Farmland 410 418 105 936 974 233 Consumer real estate loans Home equity lines 73 73 73 - - - Single family owner occupied 5,543 5,543 2,065 5,586 5,606 1,978 Total impaired loans with an allowance 7,848 7,856 2,894 7,573 7,632 2,558 Total impaired loans (1) $ 36,182 $ 44,143 $ 2,894 $ 33,301 $ 41,878 $ 2,558 ( 1 Includes loans totaling $25.06 March 31, 2018, $20.13 December 31, 2017, 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 March 31, 2018 2017 (Amounts in thousands) 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 $ 13 $ 1,116 $ - $ 11 Commercial and industrial 1 585 2 330 Multi-family residential 10 799 - 356 Single family non-owner occupied 23 2,960 43 3,326 Non-farm, non-residential 39 7,109 4 2,725 Agricultural - 283 - 126 Farmland 9 438 - 1,006 Consumer real estate loans Home equity lines 7 1,806 15 1,042 Single family owner occupied 107 15,586 87 12,203 Owner occupied construction 3 227 3 233 Consumer and other loans Consumer loans 1 76 - 50 Total impaired loans with no related allowance 213 30,985 154 21,408 Impaired loans with a related allowance: Commercial loans Construction, development, and other land - - - 428 Commercial and industrial - - 15 312 Single family non-owner occupied 7 439 8 343 Non-farm, non-residential - 166 10 1,154 Farmland - 404 - - Consumer real estate loans Home equity lines - 72 - 417 Single family owner occupied 32 5,474 35 6,373 Owner occupied construction - - - - Total impaired loans with a related allowance 39 6,555 68 9,027 Total impaired loans $ 252 $ 37,540 $ 222 $ 30,435 There were no March 31, 2018, December 31, 2017. Three Months Ended March 31, 2018 2017 (Amounts in thousands) Interest income recognized $ - $ 10 Average recorded investment - 1,075 The Company generally places a loan on nonaccrual status when it is 90 not March 31, 2018 December 31, 2017 (Amounts in thousands) Non-covered Covered Total Non-covered Covered Total Commercial loans Construction, development, and other land $ 382 $ - $ 382 $ - $ - $ - Commercial and industrial 124 - 124 211 - 211 Multi-family residential 663 - 663 498 - 498 Single family non-owner occupied 974 18 992 851 19 870 Non-farm, non-residential 4,839 - 4,839 2,448 - 2,448 Agricultural 287 - 287 102 - 102 Farmland 785 - 785 805 - 805 Consumer real estate loans Home equity lines 826 563 1,389 882 306 1,188 Single family owner occupied 12,741 15 12,756 13,108 17 13,125 Owner occupied construction - - - - - - Consumer and other loans Consumer loans 29 - 29 92 - 92 Total nonaccrual loans $ 21,650 $ 596 $ 22,246 $ 18,997 $ 342 $ 19,339 The following tables present the aging of past due loans, by loan class, as of the dates indicated. Nonaccrual loans 30 not 90 $27 March 31, 2018, $1 December 31, 2017. March 31, 2018 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 $ 7 $ 11 $ 382 $ 400 $ 51,864 $ 52,264 Commercial and industrial 55 77 43 175 90,186 90,361 Multi-family residential - 240 360 600 120,056 120,656 Single family non-owner occupied 753 440 323 1,516 140,711 142,227 Non-farm, non-residential 1,243 243 4,282 5,768 613,104 618,872 Agricultural 229 - 185 414 8,936 9,350 Farmland 965 - 410 1,375 22,192 23,567 Consumer real estate loans Home equity lines 653 42 412 1,107 100,369 101,476 Single family owner occupied 3,580 3,037 7,084 13,701 492,667 506,368 Owner occupied construction 96 64 - 160 29,358 29,518 Consumer and other loans Consumer loans 426 53 - 479 68,055 68,534 Other - - - - 4,510 4,510 Total non-covered loans 8,007 4,207 13,481 25,695 1,742,008 1,767,703 Covered loans Commercial loans Construction, development, and other land - - - - 37 37 Single family non-owner occupied 18 - - 18 259 277 Non-farm, non-residential - - - - 9 9 Consumer real estate loans Home equity lines 540 5 302 847 20,591 21,438 Single family owner occupied 65 - - 65 3,580 3,645 Total covered loans 623 5 302 930 24,476 25,406 Total loans $ 8,630 $ 4,212 $ 13,783 $ 26,625 $ 1,766,484 $ 1,793,109 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 The Company may $250 $250 six not No March 31, 2018, December 31, 2017. The following table presents loans modified as TDRs, by loan class and accrual status, as of the dates indicated: March 31, 2018 December 31, 2017 (Amounts in thousands) Nonaccrual (1) Accruing Total Nonaccrual (1) Accruing Total Commercial loans Single family non-owner occupied $ 348 $ 521 $ 869 $ 364 $ 528 $ 892 Non-farm, non-residential - 291 291 - 295 295 Consumer real estate loans Home equity lines - 138 138 - 145 145 Single family owner occupied 1,658 6,081 7,739 1,565 6,496 8,061 Owner occupied construction - 230 230 - 233 233 Consumer and other loans Consumer loans - 36 36 - 37 37 Total TDRs $ 2,006 $ 7,297 $ 9,303 $ 1,929 $ 7,734 $ 9,663 Allowance for loan losses related to TDRs $ 648 $ 642 ( 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 March 31, 2018 2017 (Amounts in thousands) Interest income recognized $ 70 $ 84 There were no three March 31, 2018, 2017. no 12 March 31, 2018 2017. The following table provides information about other real estate owned (“OREO”), which consists of properties acquired through foreclosure, as of the dates indicated: March 31, 2018 December 31, 2017 (Amounts in thousands) Non-covered OREO $ 4,620 $ 2,409 Covered OREO 70 105 Total OREO $ 4,690 $ 2,514 Non-covered OREO secured by residential real estate $ 2,812 $ 2,209 Residential real estate loans in the foreclosure process (1) 8,221 9,921 ( 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 |