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, 2020 Special (Amounts in thousands) Pass Mention Substandard Doubtful Loss Total Non-covered loans Commercial loans Construction, development, and other land $ 36,934 $ 4,950 $ 2,765 $ — $ — $ 44,649 Commercial and industrial 160,474 7,031 5,519 — — 173,024 Multi-family residential 103,291 8,586 3,284 — — 115,161 Single family non-owner occupied 165,146 9,602 12,838 12 — 187,598 Non-farm, non-residential 568,438 125,907 40,448 — — 734,793 Agricultural 7,724 1,686 339 — — 9,749 Farmland 13,527 2,597 3,637 — — 19,761 Consumer real estate loans — Home equity lines 85,316 1,112 3,004 — — 89,432 Single family owner occupied 622,082 3,594 33,002 — — 658,678 Owner occupied construction 17,232 201 287 — — 17,720 Consumer and other loans — Consumer loans 118,134 28 2,211 — — 120,373 Other 6,014 — — — — 6,014 Total non-covered loans 1,904,312 165,294 107,334 12 — 2,176,952 Covered loans Commercial loans Construction, development, and other land — 25 — — — 25 Single family non-owner occupied 151 34 — — — 185 Consumer real estate loans Home equity lines 6,396 376 322 — — 7,094 Single family owner occupied 1,778 265 333 — — 2,376 Total covered loans 8,325 700 655 — — 9,680 Total loans $ 1,912,637 $ 165,994 $ 107,989 $ 12 $ — $ 2,186,632 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: December 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 $ 616 $ 891 $ — $ 552 $ 768 $ — Commercial and industrial 2,341 2,392 — 576 599 — Multi-family residential 946 1,593 — 1,254 1,661 — Single family non-owner occupied 4,816 5,785 — 2,652 3,176 — Non-farm, non-residential 8,238 9,467 — 4,158 4,762 — Agricultural 218 226 — 158 164 — Farmland 1,228 1,311 — 1,437 1,500 — Consumer real estate loans Home equity lines 1,604 1,772 — 1,372 1,477 — Single family owner occupied 16,778 19,361 — 15,588 17,835 — Owner occupied construction 216 216 — 648 648 — Consumer and other loans Consumer loans 818 833 — 290 294 — Total impaired loans with no allowance 37,819 43,847 — 28,685 32,884 — Impaired loans with a related allowance Commercial loans Non-farm, non-residential 1,068 1,121 319 1,241 1,227 292 Consumer real estate loans Single family owner occupied 338 338 108 1,246 1,246 353 Total impaired loans with an allowance 1,406 1,459 427 2,487 2,473 645 Total impaired loans(1) $ 39,225 $ 45,306 $ 427 $ 31,172 $ 35,357 $ 645 ( 1 Total impaired loans include loans totaling $31.18 million as of December 31, 2020 December 31, 2019 not first 2018, 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, 2020 2019 2018 (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 $ 25 $ 935 $ 22 $ 704 $ 26 $ 921 Commercial and industrial 155 2,749 34 363 19 383 Multi-family residential 19 808 24 1,356 47 910 Single family non-owner occupied 189 4,890 123 2,979 123 2,652 Non-farm, non-residential 295 7,450 123 4,683 133 4,828 Agricultural 9 241 9 121 — 164 Farmland 63 1,569 55 1,469 64 1,172 Consumer real estate loans Home equity lines 51 1,594 46 1,439 44 1,637 Single family owner occupied 578 17,044 599 16,058 503 15,423 Owner occupied construction 10 407 29 308 8 244 Consumer and other loans Consumer loans 42 543 13 213 9 161 Total impaired loans with no related allowance 1,436 38,230 1,077 29,693 976 28,495 Impaired loans with a related allowance: Commercial loans Multi-family residential — 707 — — 2 270 Single family non-owner occupied — — — — 7 110 Non-farm, non-residential 17 1,524 48 766 2 809 Farmland — — — — — 307 Consumer real estate loans Home equity lines — — — — 3 68 Single family owner occupied 29 1,196 46 1,947 158 5,296 Total impaired loans with a related allowance 46 3,427 94 2,713 172 6,860 Total impaired loans $ 1,482 $ 41,657 $ 1,171 $ 32,406 $ 1,148 $ 35,355 There were no PCI loan pools that became impaired subsequent to the acquisition of the loans as of December 31, 2020 2019 The Company generally places a loan on nonaccrual status when it is 90 not December 31, 2020 December 31, 2019 (Amounts in thousands) Non-covered Covered Total Non-covered Covered Total Commercial loans Construction, development, and other land $ 244 $ — $ 244 $ 211 $ — $ 211 Commercial and industrial 895 — 895 530 — 530 Multi-family residential 946 — 946 1,144 — 1,144 Single family non-owner occupied 2,990 — 2,990 1,286 — 1,286 Non-farm, non-residential 6,343 — 6,343 3,400 — 3,400 Agricultural 217 — 217 158 — 158 Farmland 489 — 489 713 — 713 Consumer real estate loans Home equity lines 841 281 1,122 753 220 973 Single family owner occupied 7,960 16 7,976 7,259 24 7,283 Owner occupied construction — — — 428 — 428 Consumer and other loans Consumer loans 781 — 781 231 — 231 Total nonaccrual loans $ 21,706 $ 297 $ 22,003 $ 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 December 31, 2020 December 31, 2019 December 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 $ 1,039 $ — $ 235 $ 1,274 $ 43,375 $ 44,649 Commercial and industrial 669 230 700 1,599 171,425 173,024 Multi-family residential 103 — 946 1,049 114,112 115,161 Single family non-owner occupied 925 488 2,144 3,557 184,041 187,598 Non-farm, non-residential 601 296 3,368 4,265 730,528 734,793 Agricultural 70 189 88 347 9,402 9,749 Farmland 43 — 457 500 19,261 19,761 Consumer real estate loans Home equity lines 574 380 171 1,125 88,307 89,432 Single family owner occupied 5,283 2,265 3,891 11,439 647,239 658,678 Owner occupied construction 82 — — 82 17,638 17,720 Consumer and other loans Consumer loans 2,637 746 651 4,034 116,339 120,373 Other — — — — 6,014 6,014 Total non-covered loans 12,026 4,594 12,651 29,271 2,147,681 2,176,952 Covered loans Commercial loans Construction, development, and other land — — — — 25 25 Single family non-owner occupied — — — — 185 185 Consumer real estate loans Home equity lines 75 — 254 329 6,765 7,094 Single family owner occupied 34 — — 34 2,342 2,376 Total covered loans 109 — 254 363 9,317 9,680 Total loans $ 12,135 $ 4,594 $ 12,905 $ 29,634 $ 2,156,998 $ 2,186,632 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 six not No December 31, 2020 2019 The CARES Act included a provision allowing banks to not 19 March 1, 2020 December 31, 2020, 60 19 not 30 December 31, 2019. Through December 31, 2020, 19 not 19 not December 31, 2020, 19 June 30, 2020. The following table presents loans modified as TDRs, by loan class and accrual status, as of the dates indicated: December 31, 2020 2019 (Amounts in thousands) Nonaccrual(1) Accruing Total Nonaccrual(1) Accruing Total Commercial loans Commercial and industrial $ — $ 1,326 $ 1,326 $ — $ — $ — Single family non-owner occupied 1,585 1,265 2,850 552 595 1,147 Non-farm, non-residential — 2,407 2,407 — 307 307 Consumer real estate loans Home equity lines — 77 77 — 115 115 Single family owner occupied 229 4,927 5,156 1,790 5,305 7,095 Owner occupied construction — 216 216 — 221 221 Consumer and other loans Consumer loans — 30 30 — 32 32 Total TDRs $ 1,814 $ 10,248 $ 12,062 $ 2,342 $ 6,575 $ 8,917 Allowance for loan losses related to TDRs $ — $ 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: Year Ended December 31, 2020 2019 2018 (Amounts in thousands) Interest income recognized $ 473 $ 277 $ 264 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, 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 owner occupied 1 $ 50 $ 50 — $ — $ — Below market interest rate and extended payment term Single family owner occupied — — — 6 887 871 Principal deferral Construction, development, and other land development 3 1,708 1,708 — — — Non-farm, non-residential 3 2,115 2,115 — — — Home equity — — — 1 5 2 Single family owner occupied 5 1,085 1,054 3 331 279 Total principal deferral 11 4,908 4,877 4 336 281 Total 12 $ 4,958 $ 4,927 10 $ 1,223 $ 1,152 The following table presents loans modified as TDRs, by loan class, that were restructured within the previous 12 Year Ended December 31, 2020 2019 Total Recorded Total Recorded Contracts Investment Contracts Investment (Amounts in thousands) Single family owner occupied 1 $ 53 — $ — Total 1 $ 53 — $ — The following table provides information about OREO, which consists of properties acquired through foreclosure, as of the dates indicated: December 31, 2020 December 31, 2019 (Amounts in thousands) Non-covered OREO $ 2,083 $ 3,969 Total OREO $ 2,083 $ 3,969 Non-covered OREO secured by residential real estate $ 769 $ 2,232 Residential real estate loans in the foreclosure process(1) 4,141 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 |