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, 2019 Special (Amounts in thousands) Pass Mention Substandard Doubtful Loss Total Non-covered loans Commercial loans Construction, development, and other land $ 62,395 $ 639 $ 941 $ - $ - $ 63,975 Commercial and industrial 91,320 1,852 867 - - 94,039 Multi-family residential 99,811 847 1,413 - - 102,071 Single family non-owner occupied 131,049 4,139 4,849 - - 140,037 Non-farm, non-residential 582,290 7,447 12,324 146 - 602,207 Agricultural 8,807 119 49 - - 8,975 Farmland 16,300 528 1,741 - - 18,569 Consumer real estate loans Home equity lines 87,657 641 1,702 - - 90,000 Single family owner occupied 474,928 3,925 23,206 - - 502,059 Owner occupied construction 13,570 - 297 - - 13,867 Consumer and other loans Consumer loans 78,830 11 344 - - 79,185 Other 4,921 - - - - 4,921 Total non-covered loans 1,651,878 20,148 47,733 146 - 1,719,905 Covered loans Commercial loans Construction, development, and other land - 33 - - - 33 Single family non-owner occupied 216 - 15 - - 231 Non-farm, non-residential - - 6 - - 6 Consumer real estate loans Home equity lines 8,953 4,791 332 - - 14,076 Single family owner occupied 2,393 339 397 - - 3,129 Total covered loans 11,562 5,163 750 - - 17,475 Total loans $ 1,663,440 $ 25,311 $ 48,483 $ 146 $ - $ 1,737,380 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 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, 2019 December 31, 2018 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 $ 803 $ 831 $ - $ 824 $ 840 $ - Commercial and industrial 615 641 - 386 416 - Multi-family residential 1,334 1,804 - 1,127 1,274 - Single family non-owner occupied 3,003 3,255 - 2,761 3,095 - Non-farm, non-residential 4,553 4,987 - 4,154 4,494 - Agricultural 49 51 - 86 96 - Farmland 1,464 1,548 - 1,464 1,547 - Consumer real estate loans Home equity lines 1,411 1,515 - 1,315 1,451 - Single family owner occupied 15,554 17,912 - 15,451 18,390 - Owner occupied construction 224 224 - 225 225 - Consumer and other loans Consumer loans 104 107 - 145 156 - Total impaired loans with no allowance 29,114 32,875 - 27,938 31,984 - Impaired loans with a related allowance Commercial loans Commercial and industrial - - - - - - Multi-family residential - - - 534 536 230 Single family non-owner occupied - - - - - - Non-farm, non-residential - - - 840 842 235 Farmland - - - - - - Consumer real estate loans Home equity lines - - - 65 68 65 Single family owner occupied 2,319 2,319 684 3,631 3,683 922 Total impaired loans with an allowance 2,319 2,319 684 5,070 5,129 1,452 Total impaired loans (1) $ 31,433 $ 35,194 $ 684 $ 33,008 $ 37,113 $ 1,452 ( 1 Total impaired loans include loans totaling $24.41 March 31, 2019, $25.27 December 31, 2018, 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: Three Months Ended March 31, 2019 2018 (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 $ 7 $ 800 $ 13 $ 1,116 Commercial and industrial 3 617 1 585 Multi-family residential 9 1,618 10 799 Single family non-owner occupied 28 2,994 23 2,960 Non-farm, non-residential 17 4,675 39 7,109 Agricultural 2 53 - 283 Farmland 16 1,449 9 438 Consumer real estate loans Home equity lines 7 1,408 7 1,806 Single family owner occupied 124 15,939 107 15,586 Owner occupied construction 2 221 3 227 Consumer and other loans Consumer loans 1 105 1 76 Total impaired loans with no related allowance 216 29,879 213 30,985 Impaired loans with a related allowance: Commercial loans Construction, development, and other land - - - - Commercial and industrial - - - - Single family non-owner occupied - - 7 439 Non-farm, non-residential - - - 166 Farmland - - - 404 Consumer real estate loans Home equity lines - - - 72 Single family owner occupied 29 2,291 32 5,474 Owner occupied construction - - - - Total impaired loans with a related allowance 29 2,291 39 6,555 Total impaired loans $ 245 $ 32,170 $ 252 $ 37,540 The Company generally places a loan on nonaccrual status when it is 90 not March 31, 2019 December 31, 2018 (Amounts in thousands) Non-covered Covered Total Non-covered Covered Total Commercial loans Construction, development, and other land $ 400 $ - $ 400 $ 413 $ - $ 413 Commercial and industrial 597 - 597 428 - 428 Multi-family residential 1,074 - 1,074 1,395 - 1,395 Single family non-owner occupied 2,166 13 2,179 1,696 15 1,711 Non-farm, non-residential 3,559 - 3,559 4,020 - 4,020 Agricultural 49 - 49 86 - 86 Farmland 717 - 717 711 - 711 Consumer real estate loans Home equity lines 699 189 888 614 271 885 Single family owner occupied 9,232 35 9,267 10,141 36 10,177 Consumer and other loans Consumer loans 51 - 51 79 - 79 Total nonaccrual loans $ 18,544 $ 237 $ 18,781 $ 19,583 $ 322 $ 19,905 The following tables present the aging of past due loans, by loan class, as of the dates indicated. Nonaccrual loans 30 not 90 $156 March 31, 2019, $58 December 31, 2018. March 31, 2019 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 $ 135 $ - $ 395 $ 530 $ 63,445 $ 63,975 Commercial and industrial 372 16 507 895 93,144 94,039 Multi-family residential - - 956 956 101,115 102,071 Single family non-owner occupied 721 638 1,149 2,508 137,529 140,037 Non-farm, non-residential 2,170 1,030 2,149 5,349 596,858 602,207 Agricultural - - - - 8,975 8,975 Farmland 510 260 457 1,227 17,342 18,569 Consumer real estate loans Home equity lines 219 278 484 981 89,019 90,000 Single family owner occupied 4,529 3,691 3,450 11,670 490,389 502,059 Owner occupied construction - - - - 13,867 13,867 Consumer and other loans Consumer loans 674 103 42 819 78,366 79,185 Other - - - - 4,921 4,921 Total non-covered loans 9,330 6,016 9,589 24,935 1,694,970 1,719,905 Covered loans Commercial loans Construction, development, and other land - - - - 33 33 Single family non-owner occupied 13 - - 13 218 231 Non-farm, non-residential - - - - 6 6 Consumer real estate loans Home equity lines 578 - - 578 13,498 14,076 Single family owner occupied 53 - - 53 3,076 3,129 Total covered loans 644 - - 644 16,831 17,475 Total loans $ 9,974 $ 6,016 $ 9,589 $ 25,579 $ 1,711,801 $ 1,737,380 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 The Company may $250 $250 six not No March 31, 2019, December 31, 2018. The following table presents loans modified as TDRs, by loan class and accrual status, as of the dates indicated: March 31, 2019 December 31, 2018 (Amounts in thousands) Nonaccrual (1) Accruing Total Nonaccrual (1) Accruing Total Commercial loans Construction, development, and other land $ - $ - $ - $ - $ - $ - Single family non-owner occupied 638 610 $ 1,248 $ 640 $ 309 $ 949 Non-farm, non-residential - 313 313 - 314 314 Consumer real estate loans Home equity lines 4 123 127 - 127 127 Single family owner occupied 2,221 5,185 7,406 1,941 5,417 7,358 Owner occupied construction - 224 224 - 225 225 Consumer and other loans Consumer loans - 34 34 - 35 35 Total TDRs $ 2,863 $ 6,489 $ 9,352 $ 2,581 $ 6,427 $ 9,008 Allowance for loan losses related to TDRs $ 481 $ 568 ( 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 2019 2018 (Amounts in thousands) Interest income recognized $ 63 $ 70 The following tables present loans modified as TDRs, by type of concession made and loan class, that were restructured during the periods indicated: Three Months Ended March 31, 2019 2018 (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 and extended payment term Single family owner occupied $ 2 $ 374 $ 372 - - - Single family non-owner occupied 1 304 304 - - - Consumer loans - - - - - - Other - - - - - - Total below market interest rate and extended payment term 3 678 676 - - - Payment deferral Single family owner occupied 1 66 49 - - - Home equity lines 1 4 4 - - - Total principal deferral 2 70 53 - - - There were no 12 March 31, 2019 2018. 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, 2019 December 31, 2018 (Amounts in thousands) Non-covered OREO $ 3,903 $ 3,806 Covered OREO 152 32 Total OREO $ 4,055 $ 3,838 Non-covered OREO secured by residential real estate $ 2,653 $ 2,303 Residential real estate loans in the foreclosure process (1) 4,152 6,349 ( 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 |