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 table presents 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, 2021 December 31, 2020, March 31, 2021 Special (Amounts in thousands) Pass Mention Substandard Doubtful Loss Total Commercial loans Construction, development, and other land $ 40,347 $ 2,440 $ 2,541 $ - $ - $ 45,328 Commercial and industrial 153,725 3,556 4,946 - - 162,227 Multi-family residential 96,018 6,215 3,359 - - 105,592 Single family non-owner occupied 166,474 8,802 12,608 12 - 187,896 Non-farm, non-residential 577,928 106,228 34,674 - - 718,830 Agricultural 7,430 1,611 682 - - 9,723 Farmland 13,893 1,333 3,788 - - 19,014 Consumer real estate loans Home equity lines 87,260 1,294 3,541 - - 92,095 Single family owner occupied 629,303 3,488 32,336 - - 665,127 Owner occupied construction 18,090 - 286 - - 18,376 Consumer and other loans Consumer loans 115,895 23 1,987 - - 117,905 Other 4,527 - - - - 4,527 Total loans $ 1,910,890 $ 134,990 $ 100,748 $ 12 $ - $ 2,146,640 December 31, 2020 Special (Amounts in thousands) Pass Mention Substandard Doubtful Loss Total Commercial loans Construction, development, and other land $ 36,934 $ 4,975 $ 2,765 $ - $ - $ 44,674 Commercial and industrial 160,625 7,065 5,519 - - 173,209 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 91,712 1,488 3,326 - - 96,526 Single family owner occupied 623,860 3,859 33,335 - - 661,054 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 loans $ 1,912,637 $ 165,994 $ 107,989 $ 12 $ - $ 2,186,632 The following tables present the amortized cost basis of the loan portfolio, by year of origination, loan class, and credit quality, as of the date indicated. (Amounts in thousands) Term Loans Amortized Cost Basis by Origination Year Balance at March 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Construction, development and other land Pass $ 3,119 $ 13,696 $ 6,642 $ 5,879 $ 2,205 $ 8,364 $ 442 $ 40,347 Special Mention - 282 - 1,179 682 251 46 2,440 Substandard - - 84 13 282 2,162 - 2,541 Doubtful - - - - - - - - Loss - - - - - - - - Total construction, development, and other land $ 3,119 $ 13,978 $ 6,726 $ 7,071 $ 3,169 $ 10,777 $ 488 $ 45,328 Commercial and industrial Pass $ 6,729 $ 28,778 $ 21,645 $ 17,695 $ 6,271 $ 7,165 $ 14,694 $ 102,977 Special Mention - 392 1,246 1,306 297 59 256 3,556 Substandard - 422 1,081 343 1,728 1,343 29 4,946 Doubtful - - - - - - - - Loss - - - - - - - - Total commercial and industrial $ 6,729 $ 29,592 $ 23,972 $ 19,344 $ 8,296 $ 8,567 $ 14,979 $ 111,479 Paycheck Protection Loans Pass $ 22,436 $ 28,312 $ - $ - $ - $ - $ - $ 50,748 Special Mention - - - - - - - - Substandard - - - - - - - - Doubtful - - - - - - - - Loss - - - - - - - - Total Paycheck Protection Loans $ 22,436 $ 28,312 $ - $ - $ - $ - $ - $ 50,748 Multi-family residential Pass $ 3,110 $ 28,363 $ 6,296 $ 2,147 $ 5,557 $ 49,593 $ 952 $ 96,018 Special Mention - - - - 2,573 3,642 - 6,215 Substandard - - - 434 673 2,252 - 3,359 Doubtful - - - - - - - - Loss - - - - - - - - Total multi-family residential $ 3,110 $ 28,363 $ 6,296 $ 2,581 $ 8,803 $ 55,487 $ 952 $ 105,592 Non-farm, non-residential Pass $ 27,998 $ 145,910 $ 57,936 $ 67,978 $ 51,626 $ 214,496 $ 11,984 $ 577,928 Special Mention - 16,810 10,453 3,338 26,743 48,797 87 106,228 Substandard 1,340 741 5,738 9,583 9,951 7,186 135 34,674 Doubtful - - - - - - - - Loss - - - - - - - - Total non-farm, non-residential $ 29,338 $ 163,461 $ 74,127 $ 80,899 $ 88,320 $ 270,479 $ 12,206 $ 718,830 Agricultural Pass $ 1,041 $ 2,506 $ 1,426 $ 590 $ 936 $ 430 $ 501 $ 7,430 Special Mention 49 128 366 650 328 30 60 1,611 Substandard - 15 214 208 33 212 - 682 Doubtful - - - - - - - - Loss - - - - - - - - Total agricultural $ 1,090 $ 2,649 $ 2,006 $ 1,448 $ 1,297 $ 672 $ 561 $ 9,723 Farmland Pass $ 649 $ 1,237 $ 216 $ 1,132 $ 472 $ 8,756 $ 1,431 $ 13,893 Special Mention - - - 372 662 299 - 1,333 Substandard - 15 943 252 255 2,323 - 3,788 Doubtful - - - - - - - - Loss - - - - - - - - Total farmland $ 649 $ 1,252 $ 1,159 $ 1,756 $ 1,389 $ 11,378 $ 1,431 $ 19,014 (Amounts in thousands) Term Loans Amortized Cost Basis by Origination Year Balance at March 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Home equity lines Pass $ 162 $ 683 $ 696 $ 303 $ 110 $ 10,643 $ 74,663 $ 87,260 Special Mention - - - 122 - 519 653 1,294 Substandard - - 23 125 188 1,808 1,397 3,541 Doubtful - - - - - - - - Loss - - - - - - - - Total home equity lines $ 162 $ 683 $ 719 $ 550 $ 298 $ 12,970 $ 76,713 $ 92,095 Single family Mortgage Pass $ 55,294 $ 241,770 $ 76,583 $ 61,791 $ 55,113 $ 304,325 $ 901 $ 795,777 Special Mention - 916 1,133 275 2,655 7,311 - 12,290 Substandard 754 748 1,935 3,634 2,548 35,325 - 44,944 Doubtful - - - - - 12 - 12 Loss - - - - - - - - Total single family owner occupied $ 56,048 $ 243,434 $ 79,651 $ 65,700 $ 60,316 $ 346,973 $ 901 $ 853,023 Owner occupied construction Pass $ 900 $ 9,816 $ 2,747 $ 1,932 $ 456 $ 2,239 $ - $ 18,090 Special Mention - - - - - - - - Substandard - - - - - 286 - 286 Doubtful - - - - - - - - Loss - - - - - - - - Total owner occupied construction $ 900 $ 9,816 $ 2,747 $ 1,932 $ 456 $ 2,525 $ - $ 18,376 Consumer loans Pass $ 15,522 $ 50,551 $ 28,501 $ 8,754 $ 3,742 $ 10,841 $ 2,511 $ 120,422 Special Mention - - 10 12 - - 1 23 Substandard - 378 978 215 162 175 79 1,987 Doubtful - - - - - - - - Loss - - - - - - - - Total consumer loans $ 15,522 $ 50,929 $ 29,489 $ 8,981 $ 3,904 $ 11,016 $ 2,591 $ 122,432 Amounts in thousands) Term Loans Amortized Cost Basis by Origination Year Balance at March 31, 2021 2021 2020 2019 2018 2017 Prior Revolving Total Total Loans Pass $ 136,960 $ 551,622 $ 202,688 $ 168,201 $ 126,488 $ 616,852 $ 108,079 $ 1,910,890 Special Mention 49 18,528 13,208 7,254 33,940 60,908 1,103 134,990 Substandard 2,094 2,319 10,996 14,807 15,820 53,072 1,640 100,748 Doubtful - - - - - 12 - 12 Loss - - - - - - - - Total loans $ 139,103 $ 572,469 $ 226,892 $ 190,262 $ 176,248 $ 730,844 $ 110,822 $ 2,146,640 Prior to the adoption of ASU 2016 13, 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 date indicated prior to the adoption of ASU 2016 13: December 31, 2020 Unpaid Recorded Principal Related (Amounts in thousands) Investment Balance Allowance Impaired loans with no related allowance Commercial loans Construction, development, and other land $ 616 $ 891 $ - Commercial and industrial 2,341 2,392 - Multi-family residential 946 1,593 - Single family non-owner occupied 4,816 5,785 - Non-farm, non-residential 8,238 9,467 - Agricultural 218 226 - Farmland 1,228 1,311 - Consumer real estate loans Home equity lines 1,604 1,772 - Single family owner occupied 16,778 19,361 - Owner occupied construction 216 216 - Consumer and other loans Consumer loans 818 833 - Total impaired loans with no allowance 37,819 43,847 - Impaired loans with a related allowance Commercial loans Commercial and industrial - - - Multi-family residential - - - Single family non-owner occupied - - - Non-farm, non-residential 1,068 1,121 319 Farmland - - - Consumer real estate loans Home equity lines - - - Single family owner occupied 338 338 108 Consumer and other loans Consumer loans - - - Total impaired loans with an allowance 1,406 1,459 427 Total impaired loans(1) $ 39,225 $ 45,306 $ 427 ( 1 Total recorded investment of impaired loans include loans totaling $31.18 million as of December 31, 2020 not Prior to the adoption of ASU 2016 13, Three Months Ended March 31, 2020 Average Interest Income Recorded (Amounts in thousands) Recognized Investment Impaired loans with no related allowance: Commercial loans Construction, development, and other land $ 8 $ 1,299 Commercial and industrial 29 2,029 Multi-family residential 11 670 Single family non-owner occupied 35 4,101 Non-farm, non-residential 43 4,674 Agricultural 1 206 Farmland 21 1,560 Consumer real estate loans Home equity lines 9 1,467 Single family owner occupied 168 17,550 Owner occupied construction 6 334 Consumer and other loans Consumer loans 4 407 Total impaired loans with no related allowance 335 34,297 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 Owner occupied construction - - Total impaired loans with a related allowance 13 3,519 Total impaired loans $ 348 $ 37,816 The Company generally places a loan on nonaccrual status when it is 90 March 31, 2021; March 31, 2021 (Amounts in thousands) No Allowance With an Allowance Total Commercial loans Construction, development, and other land $ 391 $ - $ 391 Commercial and industrial 1,781 - 1,781 Multi-family residential 854 - 854 Single family non-owner occupied 3,631 - 3,631 Non-farm, non-residential 7,295 - 7,295 Agricultural 267 - 267 Farmland 485 - 485 Consumer real estate loans - Home equity lines 1,035 - 1,035 Single family owner occupied 9,333 187 9,520 Owner occupied construction - - - Consumer and other loans - Consumer loans 847 - 847 Total nonaccrual loans $ 25,919 $ 187 $ 26,106 During the three The following table presents nonaccrual loans prior to the adoption of ASU 2016 13. not December 31, 2020; (Amounts in thousands) December 31, 2020 Commercial loans Construction, development, and other land $ 244 Commercial and industrial 895 Multi-family residential 946 Single family non-owner occupied 2,990 Non-farm, non-residential 6,343 Agricultural 217 Farmland 489 Consumer real estate loans Home equity lines 1,122 Single family owner occupied 7,976 Owner occupied construction - Consumer and other loans Consumer loans 781 Total nonaccrual loans $ 22,003 The following table presents the aging of past due loans, by loan class, as of the date indicated. Nonaccrual loans 30 90 March 31, 2021 March 31, 2021 Amortized Cost of 30 - 59 Days 60 - 89 Days 90+ Days Total Current Total > 90 Days Accruing (Amounts in thousands) Past Due Past Due Past Due Past Due Loans Loans No Allowance Commercial loans Construction, development, and other land $ 40 $ - $ 384 $ 424 $ 44,904 $ 45,328 $ - Commercial and industrial 1,116 746 550 2,412 159,815 162,227 - Multi-family residential 156 - 854 1,010 104,582 105,592 - Single family non-owner occupied 778 655 2,042 3,475 184,421 187,896 163 Non-farm, non-residential 76 283 3,916 4,275 714,555 718,830 - Agricultural 221 93 46 360 9,363 9,723 - Farmland 9 - 485 494 18,520 19,014 - Consumer real estate loans Home equity lines 493 181 557 1,231 90,864 92,095 - Single family owner occupied 4,455 1,291 4,477 10,223 654,905 665,128 - Owner occupied construction - - - - 18,376 18,376 - Consumer and other loans Consumer loans 1,394 280 417 2,091 115,813 117,904 8 Other - - - - 4,527 4,527 - Total loans $ 8,738 $ 3,529 $ 13,728 $ 25,995 $ 2,120,645 $ 2,146,640 $ 171 The following table presents the aging of past due loans, by loan class, as of the date indicated prior to the adoption of ASU 2016 13. 30 not 90 December 31, 2020 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 Commercial loans Construction, development, and other land $ 1,039 $ - $ 235 $ 1,274 $ 43,400 $ 44,674 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 3,557 184,226 187,783 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 649 380 425 1,454 95,072 96,526 Single family owner occupied 5,317 2,265 3,891 11,473 649,581 661,054 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 loans $ 12,135 $ 4,594 $ 12,905 $ 29,634 $ 2,156,998 $ 2,186,632 In estimating estimated credit losses, ASC 326 not (Amounts in thousands) March 31, 2021 Collateral Coverage % Commercial Real Estate Hotel $ - $ - - Office - - - Other 2,480 3,126 126.05 % Retail - - - Multi-Family Industrial - - - Office - - - Other 686 723 105 % Commercial and industrial Industrial - - - Other - - - Home equity loans 42 - 0.00 % Consumer owner occupied 189 - 0.00 % Consumer - - - Total collateral dependent loans $ 3,397 $ 3,849 113.31 % The Company may six The CARES Act included a provision allowing banks to not 19 March 1, 2020 December 31, 2021 60 19 not 30 December 31, 2019. From March, 2020, March 31, 2021 19 not 19 not March 31, 2021, 19 The following table presents loans modified as TDRs, by loan class and accrual status, as of the dates indicated: March 31, 2021 December 31, 2020 (Amounts in thousands) Nonaccrual(1) Accruing Total Nonaccrual(1) Accruing Total Commercial loans Construction, development, and other land $ - $ - $ - $ - $ - $ - Commercial and industrial 353 709 1,062 - 1,326 1,326 Single family non-owner occupied 1,523 1,045 2,568 1,585 1,265 2,850 Non-farm, non-residential 1,388 2,393 3,781 - 2,407 2,407 Consumer real estate loans Home equity lines - 75 75 - 77 77 Single family owner occupied 216 4,560 4,776 229 4,927 5,156 Owner occupied construction - 216 216 - 216 216 Consumer and other loans Consumer loans - 29 29 - 30 30 Total TDRs $ 3,480 $ 9,027 $ 12,507 $ 1,814 $ 10,248 $ 12,062 Allowance for credit losses related to TDRs $ - $ - ( 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, 2021 2020 (Amounts in thousands) Interest income recognized $ 104 $ 98 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, 2021 2020 Post-modification Post-modification Total Pre-modification Recorded Total Pre-modification Recorded (Amounts in thousands) Contracts Recorded Investment Investment(1) Contracts Recorded Investment Investment(1) Below market interest rate and extended payment term Single family non-owner occupied - - - 1 50 50 Single family owner occupied - - - Total below market interest rate and extended payment term - - - 1 50 50 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 1,390 1,390 1 577 577 Single family owner occupied - - - 2 672 672 Total principal deferral 1 1,390 1,390 6 2,443 2,443 Total 1 $ 1,390 $ 1,390 7 $ 2,493 $ 2,493 ( 1 Represents the loan balance immediately following modification There were no payment defaults on loans modified as TDRs restructured within the previous 12 March 31, 2021 one March 31, 2020. 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, 2021 December 31, 2020 (Amounts in thousands) OREO $ 1,740 $ 2,083 OREO secured by residential real estate $ 645 $ 769 Residential real estate loans in the foreclosure process (1) 2,900 4,141 ( 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 |