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, 2018 Special (Amounts in thousands) Pass Mention Substandard Doubtful Loss Total Non-covered loans Commercial loans Construction, development, and other land $ 61,877 $ 661 $ 970 $ - $ - $ 63,508 Commercial and industrial 102,044 2,166 653 - - 104,863 Multi-family residential 104,183 1,087 1,742 - - 107,012 Single family non-owner occupied 131,443 4,395 4,259 - - 140,097 Non-farm, non-residential 595,659 8,166 9,906 146 - 613,877 Agricultural 8,328 131 86 - - 8,545 Farmland 16,898 538 1,469 - - 18,905 Consumer real estate loans Home equity lines 91,194 649 1,623 - - 93,466 Single family owner occupied 482,794 4,355 23,814 - - 510,963 Owner occupied construction 17,872 - 299 - - 18,171 Consumer and other loans Consumer loans 71,240 4 308 - - 71,552 Other 5,310 - - - - 5,310 Total non-covered loans 1,688,842 22,152 45,129 146 - 1,756,269 Covered loans Commercial loans Construction, development, and other land - 35 - - - 35 Single family non-owner occupied 223 - 15 - - 238 Non-farm, non-residential - - 6 - - 6 Consumer real estate loans Home equity lines 9,511 5,244 529 - - 15,284 Single family owner occupied 2,507 355 390 - - 3,252 Total covered loans 12,241 5,634 940 - - 18,815 Total loans $ 1,701,083 $ 27,786 $ 46,069 $ 146 $ - $ 1,775,084 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: December 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 $ 824 $ 840 $ - $ 727 $ 988 $ - Commercial and industrial 386 416 - 315 1,142 - Multi-family residential 1,127 1,274 - 499 1,010 - Single family non-owner occupied 2,761 3,095 - 2,042 3,521 - Non-farm, non-residential 4,154 4,494 - 3,022 5,955 - Agricultural 86 96 - 102 107 - Farmland 1,464 1,547 - 395 414 - Consumer real estate loans Home equity lines 1,315 1,451 - 1,621 1,770 - Single family owner occupied 15,451 18,390 - 16,633 18,964 - Owner occupied construction 225 225 - 231 231 - Consumer and other loans Consumer loans 145 156 - 141 144 - Total impaired loans with no allowance 27,938 31,984 - 25,728 34,246 - Impaired loans with a related allowance Commercial loans Commercial and industrial - - - 343 343 270 Multi-family residential 534 536 230 - - - Single family non-owner occupied - - - 446 446 62 Non-farm, non-residential 840 842 235 262 263 15 Farmland - - - 936 974 233 Consumer real estate loans Home equity lines 65 68 65 - - - Single family owner occupied 3,631 3,683 922 5,586 5,606 1,978 Total impaired loans with an allowance 5,070 5,129 1,452 7,573 7,632 2,558 Total impaired loans (1) $ 33,008 $ 37,113 $ 1,452 $ 33,301 $ 41,878 $ 2,558 ( 1 Total impaired loans include loans totaling $25.27 December 31, 2018, $20.13 December 31, 2017, not first 2018, $250 $500 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, 2018 2017 2016 (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 $ 26 $ 921 $ 56 $ 455 $ 22 $ 344 Commercial and industrial 19 383 14 556 16 646 Multi-family residential 47 910 53 523 21 308 Single family non-owner occupied 123 2,652 106 3,214 178 3,076 Non-farm, non-residential 133 4,828 122 4,052 307 8,573 Agricultural - 164 5 124 - - Farmland 64 1,172 17 853 55 437 Consumer real estate loans Home equity lines 44 1,637 50 1,365 30 1,223 Single family owner occupied 503 15,423 488 15,758 343 12,330 Owner occupied construction 8 244 8 234 9 497 Consumer and other loans Consumer loans 9 161 9 75 5 60 Total impaired loans with no related allowance 976 28,495 928 27,209 986 27,494 Impaired loans with a related allowance: Commercial loans Construction, development, and other land - - - 107 - - Commercial and industrial - - 103 1,376 - - Multi-family residential 2 270 - - - - Single family non-owner occupied 7 110 27 479 23 518 Non-farm, non-residential 2 809 15 789 215 3,831 Farmland - 307 22 442 14 108 Consumer real estate loans Home equity lines 3 68 - 104 - - Single family owner occupied 158 5,296 161 4,805 118 4,452 Owner occupied construction - - - - - 87 Total impaired loans with a related allowance 172 6,860 328 8,102 370 8,996 Total impaired loans $ 1,148 $ 35,355 $ 1,256 $ 35,311 $ 1,356 $ 36,490 There were no December 31, 2018 2017. Year Ended December 31, 2018 2017 2016 (Amounts in thousands) Interest income recognized $ - $ 20 $ 142 Average recorded investment - 528 1,929 The Company generally places a loan on nonaccrual status when it is 90 not December 31, 2018 December 31, 2017 (Amounts in thousands) Non-covered Covered Total Non-covered Covered Total Commercial loans Construction, development, and other land $ 413 $ - $ 413 $ - $ - $ - Commercial and industrial 428 - 428 211 - 211 Multi-family residential 1,395 - 1,395 498 - 498 Single family non-owner occupied 1,696 15 1,711 851 19 870 Non-farm, non-residential 4,020 - 4,020 2,448 - 2,448 Agricultural 86 - 86 102 - 102 Farmland 711 - 711 805 - 805 Consumer real estate loans Home equity lines 614 271 885 882 306 1,188 Single family owner occupied 10,141 36 10,177 13,108 17 13,125 Consumer and other loans Consumer loans 79 - 79 92 - 92 Total nonaccrual loans $ 19,583 $ 322 $ 19,905 $ 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 $58 December 31, 2018, $1 December 31, 2017. December 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 $ 111 $ - $ 407 $ 518 $ 62,990 $ 63,508 Commercial and industrial 306 - 262 568 104,295 104,863 Multi-family residential 113 - 1,274 1,387 105,625 107,012 Single family non-owner occupied 514 1,115 992 2,621 137,476 140,097 Non-farm, non-residential 1,332 540 2,398 4,270 609,607 613,877 Agricultural 109 - - 109 8,436 8,545 Farmland 640 - 392 1,032 17,873 18,905 Consumer real estate loans Home equity lines 408 209 334 951 92,515 93,466 Single family owner occupied 5,006 3,495 4,445 12,946 498,017 510,963 Owner occupied construction - - - - 18,171 18,171 Consumer and other loans Consumer loans 507 200 59 766 70,786 71,552 Other - - - - 5,310 5,310 Total non-covered loans 9,046 5,559 10,563 25,168 1,731,101 1,756,269 Covered loans Commercial loans Construction, development, and other land - - - - 35 35 Single family non-owner occupied 15 - - 15 223 238 Non-farm, non-residential - - - - 6 6 Consumer real estate loans Home equity lines 176 38 91 305 14,979 15,284 Single family owner occupied 166 - - 166 3,086 3,252 Total covered loans 357 38 91 486 18,329 18,815 Total loans $ 9,403 $ 5,597 $ 10,654 $ 25,654 $ 1,749,430 $ 1,775,084 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 December 31, 2018 2017. December 31, 2018 2017 (Amounts in thousands) Nonaccrual (1) Accruing Total Nonaccrual (1) Accruing Total Commercial loans Single family non-owner occupied $ 640 $ 309 $ 949 $ 364 $ 528 $ 892 Non-farm, non-residential - 314 314 - 295 295 Consumer real estate loans Home equity lines - 127 127 - 145 145 Single family owner occupied 1,941 5,417 7,358 1,565 6,496 8,061 Owner occupied construction - 225 225 - 233 233 Consumer and other loans Consumer loans - 35 35 - 37 37 Total TDRs $ 2,581 $ 6,427 $ 9,008 $ 1,929 $ 7,734 $ 9,663 Allowance for loan losses related to TDRs $ 568 $ 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: Year Ended December 31, 2018 2017 2016 (Amounts in thousands) Interest income recognized $ 264 $ 222 $ 424 The following table presents loans modified as TDRs, by type of concession made and loan class, that were restructured during the periods indicated. Year Ended December 31, 2018 2017 (Amounts in thousands) Total Contracts Pre-modification Recorded Investment Post-modification Recorded Investment (1) Total Contracts Pre-modification Recorded Investment Post-modification Recorded Investment (1) Below market interest rate Single family owner occupied 1 $ 11 $ 11 - $ - $ - Below market interest rate and extended payment term Single family owner occupied 1 41 41 5 207 207 Consumer loans - - - 1 36 36 Total 2 $ 52 $ 52 6 $ 243 $ 243 ( 1 The following table presents loans modified as TDRs, by loan class, that were restructured within the previous 12 Year Ended December 31, 2018 2017 Total Recorded Total Recorded Contracts Investment Contracts Investment (Amounts in thousands) Single family owner occupied 1 $ 521 1 $ 14 Total 1 $ 521 1 $ 14 The following table provides information about OREO, which consists of properties acquired through foreclosure, as of the dates indicated: December 31, 2018 December 31, 2017 (Amounts in thousands) Non-covered OREO $ 3,806 $ 2,409 Covered OREO 32 105 Total OREO $ 3,838 $ 2,514 Non-covered OREO secured by residential real estate $ 2,303 $ 2,209 Residential real estate loans in the foreclosure process (1) 6,349 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 |