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%; June 30, 2019 Special (Amounts in thousands) Pass Mention Substandard Doubtful Loss Total Non-covered loans Commercial loans Construction, development, and other land $ 60,835 $ 587 $ 733 $ - $ - $ 62,155 Commercial and industrial 89,541 1,722 1,041 - - 92,304 Multi-family residential 98,396 832 1,341 - - 100,569 Single family non-owner occupied 129,951 3,750 5,479 - - 139,180 Non-farm, non-residential 579,747 5,307 11,019 90 - 596,163 Agricultural 8,948 100 414 - - 9,462 Farmland 15,272 519 1,531 - - 17,322 Consumer real estate loans Home equity lines 85,707 636 1,751 - - 88,094 Single family owner occupied 465,864 3,814 23,877 - - 493,555 Owner occupied construction 13,134 - 621 - - 13,755 Consumer and other loans Consumer loans 87,917 10 425 - - 88,352 Other 4,497 - - - - 4,497 Total non-covered loans 1,639,809 17,277 48,232 90 - 1,705,408 Covered loans Commercial loans Construction, development, and other land - 31 - - - 31 Single family non-owner occupied 212 - 12 - - 224 Non-farm, non-residential 5 - - - - 5 Consumer real estate loans Home equity lines 8,126 3,803 325 - - 12,254 Single family owner occupied 2,289 334 383 - - 3,006 Total covered loans 10,632 4,168 720 - - 15,520 Total loans $ 1,650,441 $ 21,445 $ 48,952 $ 90 $ - $ 1,720,928 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: June 30, 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 $ 600 $ 815 $ - $ 824 $ 840 $ - Commercial and industrial 139 160 - 386 416 - Multi-family residential 1,265 1,666 - 1,127 1,274 - Single family non-owner occupied 2,980 3,495 - 2,761 3,095 - Non-farm, non-residential 4,968 5,685 - 4,154 4,494 - Agricultural 47 49 - 86 96 - Farmland 1,257 1,529 - 1,464 1,547 - Consumer real estate loans Home equity lines 1,467 1,575 - 1,315 1,451 - Single family owner occupied 15,650 17,730 - 15,451 18,390 - Owner occupied construction 223 223 - 225 225 - Consumer and other loans Consumer loans 137 141 - 145 156 - Total impaired loans with no allowance 28,733 33,068 - 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 670 670 175 840 842 235 Farmland - - - - - - Consumer real estate loans Home equity lines - - - 65 68 65 Single family owner occupied 2,981 2,981 764 3,631 3,683 922 Total impaired loans with an allowance 3,651 3,651 939 5,070 5,129 1,452 Total impaired loans (1) $ 32,384 $ 36,719 $ 939 $ 33,008 $ 37,113 $ 1,452 ( 1 Total impaired loans include loans totaling $21.52 June 30, 2019, $25.27 December 31, 2018, 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, 2019 2018 2019 2018 (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 $ 5 $ 790 $ 1 $ 823 $ 12 $ 795 $ 14 $ 969 Commercial and industrial 2 149 2 237 5 383 3 411 Multi-family residential 7 1,269 - 296 16 1,444 10 547 Single family non-owner occupied 28 3,237 25 2,307 56 3,116 48 2,634 Non-farm, non-residential 47 5,230 - 4,048 64 4,953 39 5,579 Agricultural - 48 - 175 2 51 - 229 Farmland 10 1,438 6 1,336 26 1,444 15 887 Consumer real estate loans Home equity lines 7 1,484 10 1,837 14 1,446 17 1,822 Single family owner occupied 154 15,838 86 14,247 278 15,889 193 14,917 Owner occupied construction 2 223 3 292 4 222 6 259 Consumer and other loans Consumer loans 3 137 5 207 4 121 6 141 Total impaired loans with no related allowance 265 29,843 138 25,805 481 29,864 351 28,395 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 8 553 - 1,374 8 277 - 770 Farmland - - - 409 - - - 407 Consumer real estate loans Home equity lines - - 2 68 - - 2 70 Single family owner occupied 36 2,987 59 7,040 65 2,639 91 6,257 Owner occupied construction - - - - - - - - Total impaired loans with a related allowance 44 3,540 61 8,891 73 2,916 100 7,943 Total impaired loans $ 309 $ 33,383 $ 199 $ 34,696 $ 554 $ 32,780 $ 451 $ 36,338 The Company generally places a loan on nonaccrual status when it is 90 not June 30, 2019 December 31, 2018 (Amounts in thousands) Non-covered Covered Total Non-covered Covered Total Commercial loans Construction, development, and other land $ 244 $ - $ 244 $ 413 $ - $ 413 Commercial and industrial 87 - 87 428 - 428 Multi-family residential 1,150 - 1,150 1,395 - 1,395 Single family non-owner occupied 1,392 13 1,405 1,696 15 1,711 Non-farm, non-residential 3,302 - 3,302 4,020 - 4,020 Agricultural 47 - 47 86 - 86 Farmland 519 - 519 711 - 711 Consumer real estate loans Home equity lines 719 185 904 614 271 885 Single family owner occupied 8,824 5 8,829 10,141 36 10,177 Consumer and other loans Consumer loans 84 - 84 79 - 79 Total nonaccrual loans $ 16,368 $ 203 $ 16,571 $ 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 $37 June 30, 2019, $58 December 31, 2018. June 30, 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 $ 31 $ 3 $ 241 $ 275 $ 61,880 $ 62,155 Commercial and industrial 150 241 63 454 91,850 92,304 Multi-family residential - 314 946 1,260 99,309 100,569 Single family non-owner occupied 763 426 962 2,151 137,029 139,180 Non-farm, non-residential 1,507 331 2,906 4,744 591,419 596,163 Agricultural 138 217 - 355 9,107 9,462 Farmland 297 - 469 766 16,556 17,322 Consumer real estate loans Home equity lines 623 63 513 1,199 86,895 88,094 Single family owner occupied 3,419 1,804 4,098 9,321 484,234 493,555 Owner occupied construction - - - - 13,755 13,755 Consumer and other loans Consumer loans 735 143 73 951 87,401 88,352 Other - - - - 4,497 4,497 Total non-covered loans 7,663 3,542 10,271 21,476 1,683,932 1,705,408 Covered loans Commercial loans Construction, development, and other land - - - - 31 31 Single family non-owner occupied 13 - - 13 211 224 Non-farm, non-residential - - - - 5 5 Consumer real estate loans Home equity lines 652 79 2 733 11,521 12,254 Single family owner occupied - - - - 3,006 3,006 Total covered loans 665 79 2 746 14,774 15,520 Total loans $ 8,328 $ 3,621 $ 10,273 $ 22,222 $ 1,698,706 $ 1,720,928 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 June 30, 2019, December 31, 2018. The following table presents loans modified as TDRs, by loan class and accrual status, as of the dates indicated: June 30, 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 561 604 1,165 640 309 949 Non-farm, non-residential - 312 312 - 314 314 Consumer real estate loans Home equity lines 3 119 122 - 127 127 Single family owner occupied 2,163 5,205 7,368 1,941 5,417 7,358 Owner occupied construction - 223 223 - 225 225 Consumer and other loans Consumer loans - 34 34 - 35 35 Total TDRs $ 2,727 $ 6,497 $ 9,224 $ 2,581 $ 6,427 $ 9,008 Allowance for loan losses related to TDRs $ 475 $ 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 June 30, Six Months Ended 2019 2018 2019 2018 (Amounts in thousands) Interest income recognized $ 84 $ 64 $ 147 $ 134 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 June 30, 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 1 $ 80 $ 81 - $ - $ - Single family non-owner occupied 1 185 184 - - - Total below market interest rate and extended payment term 2 265 265 - - - Total 2 $ 265 $ 265 - $ - $ - ( 1 Six Months Ended June 30, 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 3 $ 454 $ 432 - $ - $ - Single family non-owner occupied 2 489 484 - - - Total below market interest rate and extended payment term 5 943 916 - - - Payment deferral Single family owner occupied 1 66 45 - - - Home equity lines 1 4 3 - - - Total principal deferral 2 70 48 - - - Total 7 $ 1,013 $ 964 - $ - $ - ( 1 There were no 12 June 30, 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: June 30, 2019 December 31, 2018 (Amounts in thousands) Non-covered OREO $ 3,810 $ 3,806 Covered OREO 152 32 Total OREO $ 3,962 $ 3,838 Non-covered OREO secured by residential real estate $ 2,638 $ 2,303 Residential real estate loans in the foreclosure process (1) 3,564 6,349 ( 1 |