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%; March 31, 2020 Special (Amounts in thousands) Pass Mention Substandard Doubtful Loss Total Non-covered loans Commercial loans Construction, development, and other land $ 49,187 $ 358 $ 3,776 $ - $ - $ 53,321 Commercial and industrial 119,935 1,887 7,906 - - 129,728 Multi-family residential 106,147 792 3,263 - - 110,202 Single family non-owner occupied 171,010 3,032 13,729 - - 187,771 Non-farm, non-residential 679,088 10,752 36,824 - - 726,664 Agricultural 10,918 77 308 - - 11,303 Farmland 20,496 487 5,062 - - 26,045 Consumer real estate loans Home equity lines 101,261 453 3,670 - - 105,384 Single family owner occupied 565,195 3,317 35,034 - - 603,546 Owner occupied construction 13,513 - 433 - - 13,946 Consumer and other loans Consumer loans 110,080 3 2,044 - - 112,127 Other 4,573 - - - - 4,573 Total non-covered loans 1,951,403 21,158 112,049 - - 2,084,610 Covered loans Commercial loans Construction, development, and other land - 27 - - - 27 Single family non-owner occupied 194 - - - - 194 Non-farm, non-residential - - 2 - - 2 Consumer real estate loans Home equity lines 6,576 2,392 338 - - 9,306 Single family owner occupied 1,937 274 375 - - 2,586 Total covered loans 8,707 2,693 715 - - 12,115 Total loans $ 1,960,110 $ 23,851 $ 112,764 $ - $ - $ 2,096,725 December 31, 2019 Special (Amounts in thousands) Pass Mention Substandard Doubtful Loss Total Non-covered loans Commercial loans Construction, development, and other land $ 45,781 $ 2,079 $ 799 $ - $ - $ 48,659 Commercial and industrial 135,651 4,327 2,984 - - 142,962 Multi-family residential 118,045 2,468 1,327 - - 121,840 Single family non-owner occupied 149,916 7,489 5,776 - - 163,181 Non-farm, non-residential 683,481 27,160 16,620 - - 727,261 Agricultural 11,299 122 335 - - 11,756 Farmland 17,609 4,107 1,439 - - 23,155 Consumer real estate loans Home equity lines 106,246 2,014 1,818 - - 110,078 Single family owner occupied 580,580 17,001 23,116 - - 620,697 Owner occupied construction 16,341 179 721 - - 17,241 Consumer and other loans Consumer loans 108,065 1,341 621 - - 110,027 Other 4,742 - - - - 4,742 Total non-covered loans 1,977,756 68,287 55,556 - - 2,101,599 Covered loans Commercial loans Construction, development, and other land - 28 - - - 28 Single family non-owner occupied 199 - - - - 199 Non-farm, non-residential - - 3 - - 3 Consumer real estate loans Home equity lines 7,177 2,327 349 - - 9,853 Single family owner occupied 2,111 275 392 - - 2,778 Total covered loans 9,487 2,630 744 - - 12,861 Total loans $ 1,987,243 $ 70,917 $ 56,300 $ - $ - $ 2,114,460 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, 2020 December 31, 2019 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 $ 1,383 $ 1,618 $ - $ 552 $ 768 $ - Commercial and industrial 2,042 2,608 - 576 599 - Multi-family residential 606 1,042 - 1,254 1,661 - Single family non-owner occupied 4,071 4,783 - 2,652 3,176 - Non-farm, non-residential 3,697 5,388 - 4,158 4,762 - Agricultural 237 237 - 158 164 - Farmland 1,589 1,664 - 1,437 1,500 - Consumer real estate loans Home equity lines 1,427 1,570 - 1,372 1,477 - Single family owner occupied 17,030 20,254 - 15,588 17,835 - Owner occupied construction 361 368 - 648 648 - Consumer and other loans Consumer loans 410 413 - 290 294 - Total impaired loans with no allowance 32,853 39,945 - 28,685 32,884 - Impaired loans with a related allowance Commercial loans Commercial and industrial - - - - - - Multi-family residential 944 1,277 279 - - - Single family non-owner occupied - - - - - - Non-farm, non-residential 1,335 1,506 652 1,241 1,227 292 Farmland - - - - - - Consumer real estate loans Home equity lines - - - - - - Single family owner occupied 1,239 1,239 350 1,246 1,246 353 Total impaired loans with an allowance 3,518 4,022 1,281 2,487 2,473 645 Total impaired loans (1) $ 36,371 $ 43,967 $ 1,281 $ 31,172 $ 35,357 $ 645 ( 1 Total impaired loans include loans totaling $30.52 March 31, 2020, $24.64 December 31, 2019, 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, 2020 2019 (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 $ 8 $ 1,299 $ 7 $ 800 Commercial and industrial 29 2,029 3 617 Multi-family residential 11 670 9 1,618 Single family non-owner occupied 35 4,101 28 2,994 Non-farm, non-residential 43 4,674 17 4,675 Agricultural 1 206 2 53 Farmland 21 1,560 16 1,449 Consumer real estate loans Home equity lines 9 1,467 7 1,408 Single family owner occupied 168 17,550 124 15,939 Owner occupied construction 6 334 2 221 Consumer and other loans Consumer loans 4 407 1 105 Total impaired loans with no related allowance 335 34,297 216 29,879 Impaired loans with a related allowance: Commercial loans Construction, development, and other land - - - - Commercial and industrial - - - - Multi-family residential - 941 - - Single family non-owner occupied - - - - Non-farm, non-residential - 1,338 - - Farmland - - - - Consumer real estate loans Home equity lines - - - - Single family owner occupied 13 1,240 29 2,291 Owner occupied construction - - - - Total impaired loans with a related allowance 13 3,519 29 2,291 Total impaired loans $ 348 $ 37,816 $ 245 $ 32,170 The Company generally places a loan on nonaccrual status when it is 90 not March 31, 2020 December 31, 2019 (Amounts in thousands) Non-covered Covered Total Non-covered Covered Total Commercial loans Construction, development, and other land $ 908 $ - $ 908 $ 211 $ - $ 211 Commercial and industrial 1,441 - 1,441 530 - 530 Multi-family residential 1,455 - 1,455 1,144 - 1,144 Single family non-owner occupied 2,033 - 2,033 1,286 - 1,286 Non-farm, non-residential 3,724 - 3,724 3,400 - 3,400 Agricultural 237 - 237 158 - 158 Farmland 875 - 875 713 - 713 Consumer real estate loans Home equity lines 881 122 1,003 753 220 973 Single family owner occupied 8,214 23 8,237 7,259 24 7,283 Owner occupied construction 141 - 141 428 - 428 Consumer and other loans Consumer loans 354 - 354 231 - 231 Total nonaccrual loans $ 20,263 $ 145 $ 20,408 $ 16,113 $ 244 $ 16,357 The following tables present the aging of past due loans, by loan class, as of the dates indicated. Nonaccrual loans 30 not 90 $191 March 31, 2020, $144 December 31, 2019. March 31, 2020 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 $ 288 $ 74 $ 908 $ 1,270 $ 52,051 $ 53,321 Commercial and industrial 1,953 410 903 3,266 126,462 129,728 Multi-family residential 961 - 1,455 2,416 107,786 110,202 Single family non-owner occupied 2,622 866 1,511 4,999 182,772 187,771 Non-farm, non-residential 4,309 1,207 3,282 8,798 717,866 726,664 Agricultural 355 70 209 634 10,669 11,303 Farmland 289 247 663 1,199 24,846 26,045 Consumer real estate loans Home equity lines 777 446 646 1,869 103,515 105,384 Single family owner occupied 8,696 2,005 3,913 14,614 588,932 603,546 Owner occupied construction - - - - 13,946 13,946 Consumer and other loans Consumer loans 1,994 365 374 2,733 109,394 112,127 Other - - - - 4,573 4,573 Total non-covered loans 22,244 5,690 13,864 41,798 2,042,812 2,084,610 Covered loans Commercial loans Construction, development, and other land - - - - 27 27 Single family non-owner occupied - - - - 194 194 Non-farm, non-residential - - - - 2 2 Consumer real estate loans Home equity lines 120 21 50 191 9,115 9,306 Single family owner occupied 68 - - 68 2,518 2,586 Total covered loans 188 21 50 259 11,856 12,115 Total loans $ 22,432 $ 5,711 $ 13,914 $ 42,057 $ 2,054,668 $ 2,096,725 December 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 $ 63 $ 65 $ 211 $ 339 $ 48,320 $ 48,659 Commercial and industrial 1,913 238 507 2,658 140,304 142,962 Multi-family residential 375 - 1,144 1,519 120,321 121,840 Single family non-owner occupied 754 267 661 1,682 161,499 163,181 Non-farm, non-residential 917 1,949 3,027 5,893 721,368 727,261 Agricultural 86 164 - 250 11,506 11,756 Farmland 856 349 664 1,869 21,286 23,155 Consumer real estate loans Home equity lines 1,436 165 503 2,104 107,974 110,078 Single family owner occupied 7,728 2,390 3,766 13,884 606,813 620,697 Owner occupied construction 207 - 428 635 16,606 17,241 Consumer and other loans Consumer loans 1,735 439 202 2,376 107,651 110,027 Other 22 - - 22 4,720 4,742 Total non-covered loans 16,092 6,026 11,113 33,231 2,068,368 2,101,599 Covered loans Commercial loans Construction, development, and other land - - - - 28 28 Single family non-owner occupied - - - - 199 199 Non-farm, non-residential - - - - 3 3 Consumer real estate loans Home equity lines 144 28 - 172 9,681 9,853 Single family owner occupied - 50 - 50 2,728 2,778 Total covered loans 144 78 - 222 12,639 12,861 Total loans $ 16,236 $ 6,104 $ 11,113 $ 33,453 $ 2,081,007 $ 2,114,460 The Company may $500 $500 six not No March 31, 2020, December 31, 2019. The provisions of the CARES Act included an election to not 19 March 1, 2020 December 31, 2020 60 19 not 30 December 31, 2019. Through March 31, 2020, 154 $6.61 19 not 19 The following table presents loans modified as TDRs, by loan class and accrual status, as of the dates indicated: March 31, 2020 December 31, 2019 (Amounts in thousands) Nonaccrual (1) Accruing Total Nonaccrual (1) Accruing Total Commercial loans Construction, development, and other land $ - $ 63 $ 63 $ - $ - $ - Commercial and industrial - 602 - - - - Single family non-owner occupied 539 1,280 1,819 552 595 1,147 Non-farm, non-residential - 881 881 - 307 307 Consumer real estate loans Home equity lines - 87 87 - 115 115 Single family owner occupied 2,085 5,889 7,974 1,790 5,305 7,095 Owner occupied construction - 219 219 - 221 221 Consumer and other loans Consumer loans - 31 31 - 32 32 Total TDRs $ 2,624 $ 9,052 $ 11,074 $ 2,342 $ 6,575 $ 8,917 Allowance for loan losses related to TDRs $ 351 $ 353 ( 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, 2020 2019 (Amounts in thousands) Interest income recognized $ 98 $ 63 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, 2020 2019 (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 non-owner occupied 1 50 50 - $ - $ - Total below market interest rate 1 50 50 - - - Below market interest rate and extended payment term Single family non-owner occupied - - - 2 374 372 Single family owner occupied 1 304 304 Total below market interest rate and extended payment term - - - 3 678 676 Payment deferral Construction, development, and other land 1 63 63 - - - Commercial and industrial 1 602 602 - - - Single family non-owner occupied 1 529 529 - - - Non-farm, non-residential 1 577 577 - - - Single family owner occupied 2 672 672 1 66 49 Home equity lines - - - 1 4 4 Total principal deferral 6 2,443 2,443 2 70 53 Total 7 $ 2,493 $ 2,493 5 $ 748 $ 729 Payment defaults on loans modified as TDRs restructured within the previous 12 March 31, 2020 one $209 none 2019. 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, 2020 December 31, 2019 (Amounts in thousands) OREO $ 2,502 $ 3,969 Total OREO $ 2,502 $ 3,969 OREO secured by residential real estate $ 1,211 $ 2,232 Residential real estate loans in the foreclosure process (1) 2,043 1,539 ( 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 |