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Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2017
Allowance for Loan Losses [Abstract]  
Summary of Changes in Allowance for Loan Losses and Allowance and Loans Individually and Collectively Evaluated for Impairment
A summary of changes in the allowance for loan losses, by loan type, for the years ended December 31, 2017, 2016 and 2015 are as follows:

 
 
As of December 31,
 
 
 
2017
  
2016
 
(in thousands)
 
Beginning
Allowance
(12/31/16)
  
Charge-offs
  
Recoveries
  
Provision
  
Ending
Allowance
(12/31/17)
  
Beginning
Allowance
(12/31/15)
  
Charge-offs
  
Recoveries
  
Provision
  
Ending
Allowance
(12/31/16)
 
Real Estate:
                              
Construction & land development
 
$
1,232
  
$
-
  
$
43
  
$
(647
)
 
$
628
  
$
962
  
$
-
  
$
4
  
$
266
  
$
1,232
 
Farmland
  
19
   
-
   
-
   
(14
)
  
5
   
54
   
-
   
-
   
(35
)
  
19
 
1-4 family
  
1,204
   
(33
)
  
92
   
(185
)
  
1,078
   
1,771
   
(244
)
  
45
   
(368
)
  
1,204
 
Multi-family
  
591
   
-
   
40
   
363
   
994
   
557
   
-
   
401
   
(367
)
  
591
 
Non-farm non-residential
  
3,451
   
(1,291
)
  
85
   
566
   
2,811
   
3,298
   
(1,373
)
  
16
   
1,510
   
3,451
 
Total Real Estate
  
6,497
   
(1,324
)
  
260
   
83
   
5,516
   
6,642
   
(1,617
)
  
466
   
1,006
   
6,497
 
Non-Real Estate:
                                        
Agricultural
  
74
   
(162
)
  
138
   
137
   
187
   
16
   
(83
)
  
113
   
28
   
74
 
Commercial and industrial
  
3,543
   
(3,629
)
  
30
   
2,433
   
2,377
   
2,527
   
(579
)
  
146
   
1,449
   
3,543
 
Consumer and other
  
972
   
(1,247
)
  
223
   
1,177
   
1,125
   
230
   
(635
)
  
183
   
1,194
   
972
 
Unallocated
  
28
   
-
   
-
   
(8
)
  
20
   
-
   
-
   
-
   
28
   
28
 
Total Non-Real Estate
  
4,617
   
(5,038
)
  
391
   
3,739
   
3,709
   
2,773
   
(1,297
)
  
442
   
2,699
   
4,617
 
Total
 
$
11,114
  
$
(6,362
)
 
$
651
  
$
3,822
  
$
9,225
  
$
9,415
  
$
(2,914
)
 
$
908
  
$
3,705
  
$
11,114
 

 
 
As of December 31,
 
 
 
2015
 
(in thousands)
 
Beginning
Allowance
(12/31/14)
  
Charge-offs
  
Recoveries
  
Provision
  
Ending
Allowance
(12/31/15)
 
Real Estate:
               
Construction & land development
 
$
702
  
$
(559
)
 
$
5
  
$
814
  
$
962
 
Farmland
  
21
   
-
   
-
   
33
   
54
 
1-4 family
  
2,131
   
(410
)
  
94
   
(44
)
  
1,771
 
Multi-family
  
813
   
(947
)
  
46
   
645
   
557
 
Non-farm non-residential
  
2,713
   
(1,137
)
  
5
   
1,717
   
3,298
 
Total Real Estate
  
6,380
   
(3,053
)
  
150
   
3,165
   
6,642
 
Non-Real Estate:
                    
Agricultural
  
293
   
(491
)
  
3
   
211
   
16
 
Commercial and industrial
  
1,797
   
(79
)
  
315
   
494
   
2,527
 
Consumer and other
  
371
   
(550
)
  
151
   
258
   
230
 
Unallocated
  
264
   
-
   
-
   
(264
)
  
-
 
Total Non-Real Estate
  
2,725
   
(1,120
)
  
469
   
699
   
2,773
 
Total
 
$
9,105
  
$
(4,173
)
 
$
619
  
$
3,864
  
$
9,415
 

A summary of the allowance and loans individually and collectively evaluated for impairment are as follows:

 
 
As of December 31, 2017
 
(in thousands)
 
Allowance
Individually
Evaluated
for Impairment
  
Allowance
Collectively Evaluated
for Impairment
  
Total Allowance
for Credit Losses
  
Loans
Individually
Evaluated
for Impairment
  
Loans
Collectively
Evaluated
for Impairment
  
Total Loans
before
Unearned Income
 
Real Estate:
                  
Construction & land development
 
$
-
  
$
628
  
$
628
  
$
-
  
$
112,603
  
$
112,603
 
Farmland
  
-
   
5
   
5
   
-
   
25,691
   
25,691
 
1-4 family
  
-
   
1,078
   
1,078
   
-
   
158,733
   
158,733
 
Multi-family
  
-
   
994
   
994
   
-
   
16,840
   
16,840
 
Non-farm non-residential
  
236
   
2,575
   
2,811
   
8,990
   
531,241
   
540,231
 
Total Real Estate
  
236
   
5,280
   
5,516
   
8,990
   
845,108
   
854,098
 
Non-Real Estate:
                        
Agricultural
  
66
   
121
   
187
   
861
   
20,653
   
21,514
 
Commercial and industrial
  
565
   
1,812
   
2,377
   
5,731
   
214,969
   
220,700
 
Consumer and other
  
-
   
1,125
   
1,125
   
-
   
55,185
   
55,185
 
Unallocated
  
-
   
20
   
20
   
-
   
-
   
-
 
Total Non-Real Estate
  
631
   
3,078
   
3,709
   
6,592
   
290,807
   
297,399
 
Total
 
$
867
  
$
8,358
  
$
9,225
  
$
15,582
  
$
1,135,915
   
1,151,497
 
Unearned Income
                      
(2,483
)
Total Loans Net of Unearned Income
                     
$
1,149,014
 

 
 
As of December 31, 2016
 
(in thousands)
 
Allowance
Individually
Evaluated
for Impairment
  
Allowance
Collectively
Evaluated
for Impairment
  
Total Allowance
for Credit Losses
  
Loans
Individually
Evaluated
for Impairment
  
Loans
Collectively
Evaluated
for Impairment
  
Total Loans
before
Unearned Income
 
Real Estate:
                  
Construction & land development
 
$
-
  
$
1,232
  
$
1,232
  
$
361
  
$
83,878
  
$
84,239
 
Farmland
  
-
   
19
   
19
   
-
   
21,138
   
21,138
 
1-4 family
  
8
   
1,196
   
1,204
   
1,130
   
134,081
   
135,211
 
Multi-family
  
164
   
427
   
591
   
5,014
   
7,436
   
12,450
 
Non-farm non-residential
  
247
   
3,204
   
3,451
   
10,803
   
406,211
   
417,014
 
Total Real Estate
  
419
   
6,078
   
6,497
   
17,308
   
652,744
   
670,052
 
Non-Real Estate:
                        
Agricultural
  
11
   
63
   
74
   
1,614
   
22,169
   
23,783
 
Commercial and industrial
  
2,375
   
1,168
   
3,543
   
8,965
   
185,004
   
193,969
 
Consumer and other
  
193
   
779
   
972
   
924
   
62,087
   
63,011
 
Unallocated
  
-
   
28
   
28
   
-
   
-
   
-
 
Total Non-Real Estate
  
2,579
   
2,038
   
4,617
   
11,503
   
269,260
   
280,763
 
Total
 
$
2,998
  
$
8,116
  
$
11,114
  
$
28,811
  
$
922,004
   
950,815
 
Unearned Income
                      
(1,894
)
Total Loans Net of Unearned Income
                     
$
948,921
 
Summary of Impaired Loans, Excluding Loans Acquired with Deteriorated Credit Quality, by Class
The following is a summary of impaired loans by class at December 31, 2017:

 
 
As of December 31, 2017
 
(in thousands)
 
Recorded
Investment
  
Unpaid
Principal Balance
  
Related
Allowance
  
Average
Recorded Investment
  
Interest Income
Recognized
  
Interest Income
Cash Basis
 
Impaired Loans with no related allowance:
                  
Real Estate:
                  
Construction & land development
 
$
-
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 
Farmland
  
-
   
-
   
-
   
-
   
-
   
-
 
1-4 family
  
-
   
-
   
-
   
-
   
-
   
-
 
Multi-family
  
-
   
-
   
-
   
-
   
-
   
-
 
Non-farm non-residential
  
5,771
   
5,771
   
-
   
5,933
   
248
   
279
 
Total Real Estate
  
5,771
   
5,771
   
-
   
5,933
   
248
   
279
 
Non-Real Estate:
                        
Agricultural
  
-
   
-
   
-
   
-
   
-
   
-
 
Commercial and industrial
  
-
   
-
   
-
   
-
   
-
   
-
 
Consumer and other
  
-
   
-
   
-
   
-
   
-
   
-
 
Total Non-Real Estate
  
-
   
-
   
-
   
-
   
-
   
-
 
Total Impaired Loans with no related allowance
  
5,771
   
5,771
   
-
   
5,933
   
248
   
279
 
 
                        
Impaired Loans with an allowance recorded:
                        
Real estate:
                        
Construction & land development
  
-
   
-
   
-
   
-
   
-
   
-
 
Farmland
  
-
   
-
   
-
   
-
   
-
   
-
 
1-4 family
  
-
   
-
   
-
   
-
   
-
   
-
 
Multi-family
  
-
   
-
   
-
   
-
   
-
   
-
 
Non-farm non-residential
  
3,219
   
3,570
   
236
   
3,555
   
183
   
127
 
Total Real Estate
  
3,219
   
3,570
   
236
   
3,555
   
183
   
127
 
Non-Real Estate:
                        
Agricultural
  
861
   
920
   
66
   
1,117
   
70
   
17
 
Commercial and industrial
  
5,731
   
9,062
   
565
   
8,121
   
65
   
84
 
Consumer and other
  
-
   
-
   
-
   
-
   
-
   
-
 
Total Non-Real Estate
  
6,592
   
9,982
   
631
   
9,238
   
135
   
101
 
Total Impaired Loans with an allowance recorded
  
9,811
   
13,552
   
867
   
12,793
   
318
   
228
 
 
                        
Total Impaired Loans
 
$
15,582
  
$
19,323
  
$
867
  
$
18,726
  
$
566
  
$
507
 

The following is a summary of impaired loans by class at December 31, 2016:

 
 
As of December 31, 2016
 
(in thousands)
 
Recorded
Investment
  
Unpaid
Principal Balance
  
Related
Allowance
  
Average
Recorded Investment
  
Interest Income
Recognized
  
Interest Income
Cash Basis
 
Impaired Loans with no related allowance:
                  
Real Estate:
                  
Construction & land development
 
$
361
  
$
823
  
$
-
  
$
363
  
$
-
  
$
-
 
Farmland
  
-
   
-
   
-
   
-
   
-
   
-
 
1-4 family
  
863
   
1,196
   
-
   
1,044
   
49
   
48
 
Multi-family
  
-
   
-
   
-
   
-
   
-
   
-
 
Non-farm non-residential
  
8,501
   
9,430
   
-
   
8,949
   
196
   
175
 
Total Real Estate
  
9,725
   
11,449
   
-
   
10,356
   
245
   
223
 
Non-Real Estate:
                        
Agricultural
  
1,603
   
1,742
   
-
   
1,377
   
30
   
-
 
Commercial and industrial
  
-
   
-
   
-
   
-
   
-
   
-
 
Consumer and other
  
686
   
685
   
-
   
724
   
18
   
12
 
Total Non-Real Estate
  
2,289
   
2,427
   
-
   
2,101
   
48
   
12
 
Total Impaired Loans with no related allowance
  
12,014
   
13,876
   
-
   
12,457
   
293
   
235
 
 
                        
Impaired Loans with an allowance recorded:
                        
Real estate:
                        
Construction & land development
  
-
   
-
   
-
   
-
   
-
   
-
 
Farmland
  
-
   
-
   
-
   
-
   
-
   
-
 
1-4 family
  
267
   
303
   
8
   
279
   
-
   
-
 
Multi-family
  
5,014
   
5,305
   
164
   
5,169
   
-
   
-
 
Non-farm non-residential
  
2,302
   
2,296
   
247
   
2,334
   
119
   
113
 
Total Real Estate
  
7,583
   
7,904
   
419
   
7,782
   
119
   
113
 
Non-Real Estate:
                        
Agricultural
  
11
   
11
   
11
   
11
   
-
   
-
 
Commercial and industrial
  
8,965
   
9,117
   
2,375
   
9,379
   
72
   
72
 
Consumer and other
  
238
   
244
   
193
   
289
   
8
   
7
 
Total Non-Real Estate
  
9,214
   
9,372
   
2,579
   
9,679
   
80
   
79
 
Total Impaired Loans with an allowance recorded
  
16,797
   
17,276
   
2,998
   
17,461
   
199
   
192
 
 
                        
Total Impaired Loans
 
$
28,811
  
$
31,152
  
$
2,998
  
$
29,918
  
$
492
  
$
427
 
Troubled Debt Restructurings
The following table is an age analysis of TDRs as of December 31, 2017 and December 31, 2016:

Troubled Debt Restructurings
 
December 31, 2017
  
December 31, 2016
 
 
 
Accruing Loans
        
Accruing Loans
       
(in thousands)
 
Current
  
30-89 Days Past
Due
  
Nonaccrual
  
Total TDRs
  
Current
  
30-89 Days Past
Due
  
Nonaccrual
  
Total TDRs
 
Real Estate:
                        
Construction & land development
 
$
-
  
$
-
  
$
334
  
$
334
  
$
-
  
$
-
  
$
361
  
$
361
 
Farmland
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
1-4 family
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Multi-family
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Non-farm non-residential
  
2,138
   
-
   
-
   
2,138
   
2,987
   
-
   
100
   
3,087
 
Total Real Estate
  
2,138
   
-
   
334
   
2,472
   
2,987
   
-
   
461
   
3,448
 
Non-Real Estate:
                                
Agricultural
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Commercial and industrial
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Consumer and other
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Total Non-Real Estate
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Total
 
$
2,138
  
$
-
  
$
334
  
$
2,472
  
$
2,987
  
$
-
  
$
461
  
$
3,448
 

The following table discloses TDR activity for the twelve months ended December 31, 2017.

 
    
Trouble Debt Restructured Loans Activity
Twelve Months Ended December 31, 2017
 
(in thousands)
 
Beginning balance
(December 31, 2016)
  
New TDRs
  
Charge-offs
post-modification
  
Transferred
to ORE
  
Paydowns
  
Construction to
permanent financing
  
Restructured
to market terms
  
Other adjustments
  
Ending balance
(December 31, 2017)
 
Real Estate:
                           
Construction & land development
 
$
361
  
$
-
  
$
-
  
$
-
  
$
(27
)
 
$
-
  
$
-
  
$
-
  
$
334
 
Farmland
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
1-4 family
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Multi-family
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Non-farm non-residential
  
3,087
   
-
   
(102
)
  
-
   
(849
)
  
-
   
-
   
2
   
2,138
 
Total Real Estate
  
3,448
   
-
   
(102
)
  
-
   
(876
)
  
-
   
-
   
2
   
2,472
 
Non-Real Estate:
                                    
Agricultural
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Commercial and industrial
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Consumer and other
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Total Non-Real Estate
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Total Impaired Loans with no related allowance
 
$
3,448
  
$
-
  
$
(102
)
 
$
-
  
$
(876
)
 
$
-
  
$
-
  
$
2
  
$
2,472