XML 40 R23.htm IDEA: XBRL DOCUMENT v3.20.2
Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2020
Receivables [Abstract]  
Summary of Loans A summary of loans at September 30, 2020 and December 31, 2019 follows (in thousands):

 

 

 

September 30, 2020

 

 

December 31,

2019

 

Construction and land development

 

$

167,907

 

 

$

94,462

 

Agricultural real estate

 

 

256,619

 

 

 

240,481

 

1-4 Family residential properties

 

 

338,834

 

 

 

336,553

 

Multifamily residential properties

 

 

138,785

 

 

 

155,132

 

Commercial real estate

 

 

1,179,663

 

 

 

997,175

 

Loans secured by real estate

 

 

2,081,808

 

 

 

1,823,803

 

Agricultural loans

 

 

141,116

 

 

 

136,023

 

Commercial and industrial loans

 

 

814,218

 

 

 

528,987

 

Consumer loans

 

 

80,319

 

 

 

83,544

 

All other loans

 

 

127,330

 

 

 

126,807

 

Total Gross loans

 

 

3,244,791

 

 

 

2,699,164

 

Less: Loans held for sale

 

 

4,402

 

 

 

1,820

 

 

 

 

3,240,389

 

 

 

2,697,344

 

Less:

 

 

 

 

 

 

 

 

Net deferred loan fees, premiums and discounts

 

 

8,544

 

 

 

3,817

 

Allowance for credit losses

 

 

41,915

 

 

 

26,911

 

Net loans

 

$

3,189,930

 

 

$

2,666,616

 

 
Allowance for Credit Losses Based on Portfolio Segment

The following tables present the activity in the allowance for credit losses based on portfolio segment for the three and nine months ended September 30, 2020 (in thousands):

 

 

 

Construction

& Land

Development

 

 

Agricultural

Real Estate

 

 

1-4 Family

Residential

Properties

 

 

Commercial

Real Estate

 

 

Agricultural

Loans

 

 

Commercial

& Industrial

 

 

Consumer

Loans

 

 

Total

 

Three months ended September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

2,358

 

 

$

1,634

 

 

$

2,486

 

 

$

16,272

 

 

$

1,323

 

 

$

12,360

 

 

$

1,948

 

 

$

38,381

 

Provision for credit loss expense

 

 

(139

)

 

 

32

 

 

 

(71

)

 

 

2,463

 

 

 

(89

)

 

 

1,352

 

 

 

335

 

 

 

3,883

 

Loans charged off

 

 

13

 

 

 

—

 

 

 

48

 

 

 

0

 

 

 

0

 

 

 

368

 

 

 

127

 

 

 

556

 

Recoveries collected

 

 

—

 

 

 

—

 

 

 

24

 

 

 

73

 

 

 

—

 

 

 

28

 

 

 

82

 

 

 

207

 

Ending balance

 

$

2,206

 

 

$

1,666

 

 

$

2,391

 

 

$

18,808

 

 

$

1,234

 

 

$

13,372

 

 

$

2,238

 

 

$

41,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

1,146

 

 

$

1,093

 

 

$

1,386

 

 

$

11,198

 

 

$

1,386

 

 

$

9,273

 

 

$

1,429

 

 

$

26,911

 

Impact of adopting ASU 2016-13

 

 

(113

)

 

 

230

 

 

 

756

 

 

 

541

 

 

 

(363

)

 

 

155

 

 

 

466

 

 

 

1,672

 

Provision for credit loss expense

 

 

1,186

 

 

 

343

 

 

 

335

 

 

 

7,542

 

 

 

211

 

 

 

5,453

 

 

 

430

 

 

 

15,500

 

Loans charged off

 

 

13

 

 

 

—

 

 

 

313

 

 

 

551

 

 

 

—

 

 

 

1,651

 

 

 

414

 

 

 

2,942

 

Recoveries collected

 

 

—

 

 

 

—

 

 

 

227

 

 

 

78

 

 

 

—

 

 

 

142

 

 

 

327

 

 

 

774

 

Ending balance

 

$

2,206

 

 

$

1,666

 

 

$

2,391

 

 

$

18,808

 

 

$

1,234

 

 

$

13,372

 

 

$

2,238

 

 

$

41,915

 

21

 

Prior to the adoption of ASU 2016-13, the appropriate level of the allowance for loan losses for all non-impaired loans was based on a migration analysis of net losses over a rolling twelve quarter period by loan segment. A weighted average of the net losses was determined by assigning more weight to the most recent quarters in order to recognize current risk factors influencing the various segments of the loan portfolio more prominently than past periods. Due to weakened economic conditions during historical years, the Company established qualitative factor adjustments for each of the loan segments at levels above the historical net loss averages. Some of the economic factors included the potential for reduced cash flow for commercial operating loans from reduction in sales or increased operating costs, decreased occupancy rates for commercial buildings, reduced levels of home sales for commercial land developments, the uncertainty regarding grain prices and increased operating costs for farmers, and increased levels of unemployment and bankruptcy impacting consumer’s ability to pay. Each of these economic uncertainties was taken into consideration in developing the level of the allowance for loan losses. The following tables present the activity in the allowance for credit losses based on portfolio segment for the three and nine months ended September 30, 2019 and for the year ended December 31, 2019 (in thousands):

 

 

 

Construction

& Land

Development

 

 

Agricultural

Real Estate

 

 

1-4 Family

Residential

Properties

 

 

Commercial

Real Estate

 

 

Agricultural

Loans

 

 

Commercial

& Industrial

 

 

Consumer

Loans

 

 

Total

 

Three months ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

739

 

 

$

1,284

 

 

$

1,649

 

 

$

10,796

 

 

$

1,672

 

 

$

9,130

 

 

$

1,089

 

 

$

26,359

 

Provision for credit loss expense

 

 

759

 

 

 

(134

)

 

 

618

 

 

 

229

 

 

 

(87

)

 

 

791

 

 

 

482

 

 

 

2,658

 

Loans charged off

 

 

—

 

 

 

—

 

 

 

514

 

 

 

866

 

 

 

15

 

 

 

724

 

 

 

341

 

 

 

2,460

 

Recoveries collected

 

 

—

 

 

 

—

 

 

 

59

 

 

 

5

 

 

 

—

 

 

 

47

 

 

 

73

 

 

 

184

 

Ending balance

 

$

1,498

 

 

$

1,150

 

 

$

1,812

 

 

$

10,164

 

 

$

1,570

 

 

$

9,244

 

 

$

1,303

 

 

$

26,741

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine months ended September 30, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

561

 

 

$

1,246

 

 

$

1,504

 

 

$

11,102

 

 

$

951

 

 

$

9,893

 

 

$

932

 

 

$

26,189

 

Provision for credit loss expense

 

 

937

 

 

 

(96

)

 

 

944

 

 

 

83

 

 

 

642

 

 

 

246

 

 

 

940

 

 

 

3,696

 

Loans charged off

 

 

—

 

 

 

—

 

 

 

711

 

 

 

1,027

 

 

 

23

 

 

 

982

 

 

 

827

 

 

 

3,570

 

Recoveries collected

 

 

—

 

 

 

—

 

 

 

75

 

 

 

6

 

 

 

—

 

 

 

87

 

 

 

258

 

 

 

426

 

Ending balance

 

$

1,498

 

 

$

1,150

 

 

$

1,812

 

 

$

10,164

 

 

$

1,570

 

 

$

9,244

 

 

$

1,303

 

 

$

26,741

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve months ended December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Beginning Balance

 

$

561

 

 

$

1,246

 

 

$

1,504

 

 

$

11,102

 

 

$

951

 

 

$

9,893

 

 

$

932

 

 

$

26,189

 

Provision for credit loss expense

 

 

585

 

 

 

(153

)

 

 

1,268

 

 

 

1,827

 

 

 

459

 

 

 

1,053

 

 

 

1,394

 

 

 

6,433

 

Loans charged off

 

 

—

 

 

 

—

 

 

 

1,478

 

 

 

1,743

 

 

 

24

 

 

 

1,828

 

 

 

1,253

 

 

 

6,326

 

Recoveries collected

 

 

—

 

 

 

—

 

 

 

92

 

 

 

12

 

 

 

—

 

 

 

155

 

 

 

356

 

 

 

615

 

Ending balance

 

$

1,146

 

 

$

1,093

 

 

$

1,386

 

 

$

11,198

 

 

$

1,386

 

 

$

9,273

 

 

$

1,429

 

 

$

26,911

 
Amortized Cost Basis of Collateral-Dependent Loans by Class of Loans Individually Evaluated


22

 

The following table presents the amortized cost basis of collateral-dependent loans by class of loans that were individually evaluated to determine expected credit losses, and the related allowance for credit losses, as of September 30, 2020 (in thousands):

 

 

 

Collateral

 

 

Allowance

 

 

 

Real Estate

 

 

Business

Assets

 

 

Other

 

 

Total

 

 

for Credit

Losses

 

Construction and land development

 

$

525

 

 

$

—

 

 

$

—

 

 

$

525

 

 

$

254

 

Agricultural real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

1-4 Family residential properties

 

 

3,234

 

 

 

—

 

 

 

—

 

 

 

3,234

 

 

 

168

 

Multifamily residential properties

 

 

1,920

 

 

 

—

 

 

 

—

 

 

 

1,920

 

 

 

—

 

Commercial real estate

 

 

6,482

 

 

 

—

 

 

 

—

 

 

 

6,482

 

 

 

858

 

Loans secured by real estate

 

 

12,161

 

 

 

0

 

 

 

0

 

 

 

12,161

 

 

 

1,280

 

Agricultural loans

 

0

 

 

 

—

 

 

 

—

 

 

0

 

 

 

—

 

Commercial and industrial loans

 

301

 

 

 

3,157

 

 

 

17

 

 

 

3,475

 

 

 

341

 

Consumer loans

 

 

—

 

 

 

—

 

 

 

11

 

 

11

 

 

 

1

 

Total loans

 

$

12,462

 

 

$

3,157

 

 

$

28

 

 

$

15,647

 

 

$

1,622

 
Credit Risk Profile of Loan Portfolio on Amortized Cost Basis Based on Risk Rating Category

The following tables present the credit risk profile of the Company’s loan portfolio on amortized cost basis based on risk rating category and year of origination as of September 30, 2020 (in thousands):

 

 

 

Term Loans by Origination Year

 

 

Revolving

 

 

 

 

 

Risk Rating

 

2020

 

 

2019

 

 

2018

 

 

2017

 

 

2016

 

 

Prior

 

 

Loans

 

 

Total

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction & Land Development Loans

 

Pass

 

$

61,198

 

 

$

67,437

 

 

$

29,449

 

 

$

2,805

 

 

$

1,041

 

 

$

4,571

 

 

$

—

 

 

$

166,501

 

Special Mention

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Substandard

 

 

—

 

 

 

437

 

 

 

—

 

 

 

524

 

 

 

—

 

 

 

53

 

 

 

—

 

 

 

1,014

 

Total

 

$

61,198

 

 

$

67,874

 

 

$

29,449

 

 

$

3,329

 

 

$

1,041

 

 

$

4,624

 

 

$

—

 

 

$

167,515

 

Agricultural Real Estate Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

62,248

 

 

$

36,161

 

 

$

41,540

 

 

$

17,210

 

 

$

14,940

 

 

$

66,631

 

 

$

—

 

 

$

238,730

 

Special Mention

 

 

1,031

 

 

 

3,484

 

 

 

558

 

 

 

140

 

 

 

874

 

 

 

10,408

 

 

 

—

 

 

 

16,495

 

Substandard

 

 

—

 

 

 

—

 

 

 

487

 

 

 

214

 

 

 

57

 

 

 

247

 

 

 

—

 

 

 

1,005

 

Total

 

$

63,279

 

 

$

39,645

 

 

$

42,585

 

 

$

17,564

 

 

$

15,871

 

 

$

77,286

 

 

$

—

 

 

$

256,230

 

1-4 Family Residential Property Loans

 

Pass

 

$

67,380

 

 

$

34,022

 

 

$

41,203

 

 

$

28,441

 

 

$

31,987

 

 

$

85,889

 

 

$

30,391

 

 

$

319,313

 

Special Mention

 

 

196

 

 

 

158

 

 

 

321

 

 

 

953

 

 

 

249

 

 

 

1,176

 

 

 

310

 

 

 

3,363

 

Substandard

 

 

294

 

 

 

700

 

 

 

2,110

 

 

 

1,846

 

 

 

2,078

 

 

 

8,216

 

 

 

1,252

 

 

 

16,496

 

Total

 

$

67,870

 

 

$

34,880

 

 

$

43,634

 

 

$

31,240

 

 

$

34,314

 

 

$

95,281

 

 

$

31,953

 

 

$

339,172

 

Commercial Real Estate Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

236,928

 

 

$

220,454

 

 

$

185,898

 

 

$

189,533

 

 

$

177,598

 

 

$

255,195

 

 

$

—

 

 

$

1,265,606

 

Special Mention

 

 

1,910

 

 

 

22

 

 

 

10,785

 

 

 

1,637

 

 

 

5,141

 

 

 

2,909

 

 

 

—

 

 

 

22,404

 

Substandard

 

 

1,250

 

 

 

70

 

 

 

1,578

 

 

 

3,066

 

 

 

4,524

 

 

 

18,328

 

 

 

—

 

 

 

28,816

 

Total

 

$

240,088

 

 

$

220,546

 

 

$

198,261

 

 

$

194,236

 

 

$

187,263

 

 

$

276,432

 

 

$

—

 

 

$

1,316,826

 

Agricultural Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

77,482

 

 

$

24,639

 

 

$

7,235

 

 

$

2,487

 

 

$

800

 

 

$

2,856

 

 

$

—

 

 

$

115,499

 

Special Mention

 

 

18,818

 

 

 

5,237

 

 

 

595

 

 

 

7

 

 

 

207

 

 

 

22

 

 

 

—

 

 

 

24,886

 

Substandard

 

 

623

 

 

 

41

 

 

 

25

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

689

 

Total

 

$

96,923

 

 

$

29,917

 

 

$

7,855

 

 

$

2,494

 

 

$

1,007

 

 

$

2,878

 

 

$

—

 

 

$

141,074

 

Commercial & Industrial Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

427,402

 

 

$

134,753

 

 

$

76,051

 

 

$

80,506

 

 

$

45,685

 

 

$

127,547

 

 

$

—

 

 

$

891,944

 

Special Mention

 

 

2,790

 

 

 

31,962

 

 

 

189

 

 

 

141

 

 

 

343

 

 

 

1,111

 

 

 

—

 

 

 

36,536

 

Substandard

 

 

1,002

 

 

 

2,459

 

 

 

494

 

 

 

1,301

 

 

 

184

 

 

 

1,162

 

 

 

—

 

 

 

6,602

 

Total

 

$

431,194

 

 

$

169,174

 

 

$

76,734

 

 

$

81,948

 

 

$

46,212

 

 

$

129,820

 

 

$

—

 

 

$

935,082

 

Consumer Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

26,068

 

 

$

24,420

 

 

$

14,086

 

 

$

9,794

 

 

$

3,014

 

 

$

332

 

 

$

—

 

 

$

77,714

 

Special Mention

 

 

4

 

 

 

—

 

 

 

39

 

 

 

1

 

 

 

949

 

 

 

1,172

 

 

 

—

 

 

 

2,165

 

Substandard

 

 

—

 

 

 

32

 

 

 

113

 

 

 

107

 

 

 

81

 

 

 

136

 

 

 

—

 

 

 

469

 

Total

 

$

26,072

 

 

$

24,452

 

 

$

14,238

 

 

$

9,902

 

 

$

4,044

 

 

$

1,640

 

 

$

—

 

 

$

80,348

 

Total Loans

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pass

 

$

958,706

 

 

$

541,886

 

 

$

395,462

 

 

$

330,776

 

 

$

275,065

 

 

$

543,021

 

 

$

30,391

 

 

$

3,075,307

 

Special Mention

 

 

24,749

 

 

 

40,863

 

 

 

12,487

 

 

 

2,879

 

 

 

7,763

 

 

 

16,798

 

 

 

310

 

 

 

105,849

 

Substandard

 

 

3,169

 

 

 

3,739

 

 

 

4,807

 

 

 

7,058

 

 

 

6,924

 

 

 

28,142

 

 

 

1,252

 

 

 

55,091

 

Total

 

$

986,624

 

 

$

586,488

 

 

$

412,756

 

 

$

340,713

 

 

$

289,752

 

 

$

587,961

 

 

$

31,953

 

 

$

3,236,247

 

 

The following tables present the credit risk profile of the Company’s loan portfolio based on risk rating category as of December 31, 2019 (in thousands):

December 31, 2019

 

Pass

 

 

Special

Mention

 

 

Substandard

 

 

Total

 

Construction & land development

 

$

93,413

 

 

$

413

 

 

$

316

 

 

$

94,142

 

Agricultural real estate

 

 

231,227

 

 

 

6,902

 

 

 

2,112

 

 

 

240,241

 

1-4 Family residential property loans

 

 

314,999

 

 

 

5,743

 

 

 

15,685

 

 

 

336,427

 

Commercial real estate

 

 

1,103,543

 

 

 

14,156

 

 

 

31,951

 

 

 

1,149,650

 

Loans secured by real estate

 

 

1,743,182

 

 

 

27,214

 

 

 

50,064

 

 

 

1,820,460

 

Agricultural loans

 

 

129,811

 

 

 

3,862

 

 

 

2,451

 

 

 

136,124

 

Commercial & industrial loans

 

 

603,047

 

 

 

40,395

 

 

 

12,138

 

 

 

655,580

 

Consumer loans

 

 

82,117

 

 

 

140

 

 

 

926

 

 

 

83,183

 

Total loans

 

$

2,558,157

 

 

$

71,611

 

 

$

65,579

 

 

$

2,695,347

 

 
Loan Portfolio Aging Analysis

The following table presents the Company’s loan portfolio aging analysis at September 30, 2020 and December 31, 2019 (in

24

 

thousands):

 

 

 

30-59

Days Past

Due

 

 

60-89

Days Past

Due

 

 

90 Days or

More

Past Due

 

 

Total Past

Due

 

 

Current

 

 

Total Loans

Receivable

 

 

Total Loans

> 90 Days &

Accruing

 

September 30, 2020

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

—

 

 

$

—

 

 

$

128

 

 

$

128

 

 

$

167,387

 

 

$

167,515

 

 

$

—

 

Agricultural real estate

 

 

1,196

 

 

 

203

 

 

 

—

 

 

 

1,399

 

 

 

254,831

 

 

 

256,230

 

 

 

—

 

1-4 Family residential properties

 

 

2,299

 

 

 

584

 

 

 

2,039

 

 

 

4,922

 

 

 

334,250

 

 

 

339,172

 

 

 

—

 

Multifamily residential properties

 

 

—

 

 

 

0

 

 

 

—

 

 

 

—

 

 

 

139,255

 

 

 

139,255

 

 

 

—

 

Commercial real estate

 

 

437

 

 

 

983

 

 

 

3,075

 

 

 

4,495

 

 

 

1,173,076

 

 

 

1,177,571

 

 

 

—

 

Loans secured by real estate

 

 

3,932

 

 

 

1,770

 

 

 

5,242

 

 

 

10,944

 

 

 

2,068,799

 

 

 

2,079,743

 

 

 

—

 

Agricultural loans

 

 

2,212

 

 

 

1,284

 

 

 

528

 

 

 

4,024

 

 

 

137,050

 

 

 

141,074

 

 

 

—

 

Commercial and industrial loans

 

 

79

 

 

 

145

 

 

 

2,231

 

 

 

2,455

 

 

 

805,213

 

 

 

807,668

 

 

 

—

 

Consumer loans

 

 

138

 

 

 

75

 

 

 

153

 

 

 

366

 

 

 

79,982

 

 

 

80,348

 

 

 

—

 

All other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

127,414

 

 

 

127,414

 

 

 

—

 

Total loans

 

$

6,361

 

 

$

3,274

 

 

$

8,154

 

 

$

17,789

 

 

$

3,218,458

 

 

$

3,236,247

 

 

$

—

 

December 31, 2019

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

235

 

 

$

—

 

 

$

—

 

 

$

235

 

 

$

93,907

 

 

$

94,142

 

 

$

—

 

Agricultural real estate

 

 

1,595

 

 

 

—

 

 

 

47

 

 

 

1,642

 

 

 

238,599

 

 

 

240,241

 

 

 

—

 

1-4 Family residential properties

 

 

3,834

 

 

 

2,288

 

 

 

4,713

 

 

 

10,835

 

 

 

325,592

 

 

 

336,427

 

 

 

—

 

Multifamily residential properties

 

 

1,348

 

 

 

46

 

 

 

1,131

 

 

 

2,525

 

 

 

151,423

 

 

 

153,948

 

 

 

—

 

Commercial real estate

 

 

602

 

 

 

495

 

 

 

2,241

 

 

 

3,338

 

 

 

992,364

 

 

 

995,702

 

 

 

—

 

Loans secured by real estate

 

 

7,614

 

 

 

2,829

 

 

 

8,132

 

 

 

18,575

 

 

 

1,801,885

 

 

 

1,820,460

 

 

 

—

 

Agricultural loans

 

 

300

 

 

 

—

 

 

 

307

 

 

 

607

 

 

 

135,517

 

 

 

136,124

 

 

 

—

 

Commercial and industrial loans

 

 

767

 

 

 

855

 

 

 

5,989

 

 

 

7,611

 

 

 

521,362

 

 

 

528,973

 

 

 

—

 

Consumer loans

 

 

454

 

 

 

196

 

 

 

150

 

 

 

800

 

 

 

82,383

 

 

 

83,183

 

 

 

—

 

All other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

0

 

 

 

126,607

 

 

 

126,607

 

 

 

—

 

Total loans

 

$

9,135

 

 

$

3,880

 

 

$

14,578

 

 

$

27,593

 

 

$

2,667,754

 

 

$

2,695,347

 

 

$

—

 

 
Impaired Loans

The following tables present impaired loans as of September 30, 2020 and December 31, 2019 (in thousands):

 

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

Recorded

Balance

 

 

Unpaid

Principal

Balance

 

 

Specific

Allowance

 

 

Recorded

Balance

 

 

Unpaid

Principal

Balance

 

 

Specific

Allowance

 

Loans with a specific allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

525

 

 

$

525

 

 

$

254

 

 

$

256

 

 

$

256

 

 

$

—

 

Agricultural real estate

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

1-4 Family residential properties

 

 

4,835

 

 

 

5,069

 

 

 

168

 

 

 

5,154

 

 

 

5,351

 

 

 

182

 

Multifamily residential properties

 

 

1,920

 

 

 

1,920

 

 

 

—

 

 

 

4,254

 

 

 

4,254

 

 

 

19

 

Commercial real estate

 

 

6,485

 

 

 

6,961

 

 

 

858

 

 

 

5,904

 

 

 

6,408

 

 

 

587

 

Loans secured by real estate

 

 

13,765

 

 

 

14,475

 

 

 

1,280

 

 

 

15,568

 

 

 

16,269

 

 

 

788

 

Agricultural loans

 

 

88

 

 

 

316

 

 

 

—

 

 

 

85

 

 

 

669

 

 

 

8

 

Commercial and industrial loans

 

 

3,543

 

 

 

4,972

 

 

 

341

 

 

 

7,653

 

 

 

8,789

 

 

 

301

 

Consumer loans

 

 

129

 

 

 

129

 

 

 

1

 

 

 

134

 

 

 

134

 

 

 

1

 

Total loans

 

$

17,525

 

 

$

19,892

 

 

$

1,622

 

 

$

23,440

 

 

$

25,861

 

 

$

1,098

 

Loans without a specific allowance:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

163

 

 

$

176

 

 

$

—

 

 

$

41

 

 

$

41

 

 

$

—

 

Agricultural real estate

 

 

356

 

 

 

356

 

 

 

—

 

 

 

479

 

 

 

479

 

 

 

—

 

1-4 Family residential properties

 

 

4,172

 

 

 

4,646

 

 

 

—

 

 

 

3,719

 

 

 

4,263

 

 

 

—

 

Multifamily residential properties

 

 

276

 

 

 

276

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Commercial real estate

 

 

777

 

 

 

904

 

 

 

—

 

 

 

1,721

 

 

 

1,724

 

 

 

—

 

Loans secured by real estate

 

 

5,744

 

 

 

6,358

 

 

 

—

 

 

 

5,960

 

 

 

6,507

 

 

 

—

 

Agricultural loans

 

 

881

 

 

 

653

 

 

 

—

 

 

 

724

 

 

 

140

 

 

 

—

 

Commercial and industrial loans

 

 

1,081

 

 

 

1,484

 

 

 

—

 

 

 

916

 

 

 

3,065

 

 

 

—

 

Consumer loans

 

 

247

 

 

 

348

 

 

 

—

 

 

 

391

 

 

 

713

 

 

 

—

 

Total loans

 

$

7,953

 

 

$

8,843

 

 

$

—

 

 

$

7,991

 

 

$

10,425

 

 

$

—

 

Total loans:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Construction and land development

 

$

688

 

 

$

701

 

 

$

254

 

 

$

297

 

 

$

297

 

 

$

—

 

Agricultural real estate

 

 

356

 

 

 

356

 

 

 

—

 

 

 

479

 

 

 

479

 

 

 

—

 

1-4 Family residential properties

 

 

9,007

 

 

 

9,715

 

 

 

168

 

 

 

8,873

 

 

 

9,614

 

 

 

182

 

Multifamily residential properties

 

 

2,196

 

 

 

2,196

 

 

 

—

 

 

 

4,254

 

 

 

4,254

 

 

 

19

 

Commercial real estate

 

 

7,262

 

 

 

7,865

 

 

 

858

 

 

 

7,625

 

 

 

8,132

 

 

 

587

 

Loans secured by real estate

 

 

19,509

 

 

 

20,833

 

 

 

1,280

 

 

 

21,528

 

 

 

22,776

 

 

 

788

 

Agricultural loans

 

 

969

 

 

 

969

 

 

 

—

 

 

 

809

 

 

 

809

 

 

 

8

 

Commercial and industrial loans

 

 

4,624

 

 

 

6,456

 

 

 

341

 

 

 

8,569

 

 

 

11,854

 

 

 

301

 

Consumer loans

 

 

376

 

 

 

477

 

 

 

1

 

 

 

525

 

 

 

847

 

 

 

1

 

Total loans

 

$

25,478

 

 

$

28,735

 

 

$

1,622

 

 

$

31,431

 

 

$

36,286

 

 

$

1,098

 

 

26

 
Average Recorded Investment and Interest Income Recognized on Impaired Loans

The following tables present average recorded investment and interest income recognized on impaired loans for the three and nine months ended September 30, 2020 and 2019 (in thousands):

 

 

 

For the three months ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

 

 

Average

Investment

in Impaired

Loans

 

 

Interest

Income

Recognized

 

 

Average

Investment

in Impaired

Loans

 

 

Interest

Income

Recognized

 

Construction and land development

 

$

708

 

 

$

8

 

 

$

755

 

 

$

8

 

Agricultural real estate

 

 

830

 

 

 

—

 

 

 

932

 

 

 

—

 

1-4 Family residential properties

 

 

9,138

 

 

 

18

 

 

 

9,521

 

 

 

21

 

Multifamily residential properties

 

 

2,321

 

 

 

—

 

 

 

1,559

 

 

 

14

 

Commercial real estate

 

 

7,453

 

 

 

42

 

 

 

6,232

 

 

 

43

 

Loans secured by real estate

 

 

20,450

 

 

 

68

 

 

 

18,999

 

 

 

86

 

Agricultural loans

 

 

1,453

 

 

 

1

 

 

 

852

 

 

 

1

 

Commercial and industrial loans

 

 

4,846

 

 

 

1

 

 

 

6,479

 

 

 

4

 

Consumer loans

 

 

396

 

 

 

—

 

 

 

698

 

 

 

—

 

All other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total loans

 

$

27,145

 

 

$

70

 

 

$

27,028

 

 

$

91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For the nine months ended

 

 

 

September 30, 2020

 

 

September 30, 2019

 

 

 

Average

Investment

in Impaired

Loans

 

 

Interest

Income

Recognized

 

 

Average

Investment

in Impaired

Loans

 

 

Interest

Income

Recognized

 

Construction and land development

 

$

715

 

 

$

23

 

 

$

765

 

 

$

24

 

Agricultural real estate

 

 

831

 

 

 

—

 

 

 

935

 

 

 

—

 

1-4 Family residential properties

 

 

9,339

 

 

 

55

 

 

 

9,629

 

 

 

63

 

Multifamily residential properties

 

 

2,344

 

 

 

—

 

 

 

1,561

 

 

 

42

 

Commercial real estate

 

 

7,527

 

 

 

126

 

 

 

7,522

 

 

 

128

 

Loans secured by real estate

 

 

20,756

 

 

 

204

 

 

 

20,412

 

 

 

257

 

Agricultural loans

 

 

1,692

 

 

 

1

 

 

 

800

 

 

 

2

 

Commercial and industrial loans

 

 

5,501

 

 

 

4

 

 

 

7,897

 

 

 

7

 

Consumer loans

 

 

439

 

 

 

—

 

 

 

764

 

 

 

1

 

All other loans

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Total loans

 

$

28,388

 

 

$

209

 

 

$

29,873

 

 

$

267

 

 
Amortized Cost Basis of Loans on Nonaccrual Status and Nonaccrual Loans Individually Evaluated

The following table presents the amortized cost basis of loans on nonaccrual status and of nonaccrual loans individually evaluated for which no allowance was recorded as of September 30, 2020 and December 31, 2019 (in thousands). There were no loans past due over eighty-nine days that were still accruing.

 

 

Nonaccrual

with no

Allowance for

 

 

September 30, 2020

 

 

December 31,

2019

 

 

 

Credit Loss

 

 

Nonaccrual

 

 

Nonaccrual

 

Construction and land development

 

$

164

 

 

$

164

 

 

$

41

 

Agricultural real estate

 

 

356

 

 

 

356

 

 

 

479

 

1-4 Family residential properties

 

 

7,313

 

 

 

7,600

 

 

 

7,379

 

Multifamily residential properties

 

 

2,196

 

 

 

2,196

 

 

 

3,137

 

Commercial real estate

 

 

2,258

 

 

 

3,690

 

 

 

4,351

 

Loans secured by real estate

 

 

12,287

 

 

 

14,006

 

 

 

15,387

 

Agricultural loans

 

 

881

 

 

 

881

 

 

 

769

 

Commercial and industrial loans

 

 

1,900

 

 

 

4,545

 

 

 

8,441

 

Consumer loans

 

 

373

 

 

 

373

 

 

 

521

 

Total loans

 

$

15,441

 

 

$

19,805

 

 

$

25,118

 
Acquired Loans with Credit Deterioration The amount of these loans at December 31, 2019 was as follows (in thousands):

 

 

 

December 31,

2019

 

Construction and land development

 

$

256

 

Agricultural real estate

 

 

—

 

1-4 Family residential properties

 

 

371

 

Multifamily residential properties

 

 

2,077

 

Commercial real estate

 

 

2,247

 

Loans secured by real estate

 

 

4,951

 

Carrying amount

 

 

4,951

 

Allowance for loan losses

 

 

(365

)

Carrying amount, net of allowance

 

$

4,586

 

 
Recorded Balance of Troubled Debt Restructurings

The following table presents the Company’s recorded balance of troubled debt restructurings at September 30, 2020 and December 31, 2019 (in thousands).

Troubled debt restructurings:

 

September 30, 2020

 

 

December 31,

2019

 

1-4 Family residential properties

 

$

1,817

 

 

$

1,905

 

Commercial real estate

 

 

1,856

 

 

 

1,746

 

Loans secured by real estate

 

 

3,673

 

 

 

3,651

 

Agricultural loans

 

 

316

 

 

 

669

 

Commercial and industrial loans

 

 

2,466

 

 

 

1,349

 

Consumer loans

 

 

129

 

 

 

134

 

Total

 

$

6,584

 

 

$

5,803

 

Performing troubled debt restructurings:

 

 

 

 

 

 

 

 

1-4 Family residential properties

 

$

1,337

 

 

$

1,382

 

Commercial real estate

 

 

1,128

 

 

 

1,146

 

Loans secured by real estate

 

 

2,465

 

 

 

2,528

 

Agricultural Loans

 

 

88

 

 

 

40

 

Commercial and industrial loans

 

 

78

 

 

 

128

 

Consumer loans

 

 

3

 

 

 

5

 

Total

 

$

2,634

 

 

$

2,701

 
Loans Modified as Troubled Debt Restructurings During Period

 

The following table presents loans modified as TDRs during the nine months ended September 30, 2020, as a result of various modified loan factors (in thousands). The change in the recorded investment from pre-modification to post- modification was not material.

 

 

 

September 30, 2020

 

September 30, 2019

 

 

Number of

 

 

Recorded

 

 

Type of

 

Number of

 

 

Recorded

 

 

Type of

 

 

Modifications

 

 

Investment

 

 

Modifications

 

Modifications

 

 

Investment

 

 

Modifications

1-4 Family residential properties

 

 

—

 

 

$

—

 

 

 

 

 

1

 

 

$

44

 

 

(b)(c)

Commercial real estate

 

 

1

 

 

 

296

 

 

(b)

 

 

3

 

 

 

1,462

 

 

(b)(c)(d)

Loans secured by real estate

 

 

1

 

 

 

296

 

 

 

 

 

4

 

 

 

1,506

 

 

 

Agricultural loans

 

 

2

 

 

 

88

 

 

(b)(c)

 

 

1

 

 

 

59

 

 

(b)

Commercial and industrial loans

 

 

4

 

 

 

2,328

 

 

(b)

 

 

4

 

 

 

131

 

 

(b)(c)(d)

Consumer Loans

 

 

1

 

 

 

11

 

 

(b)

 

 

1

 

 

 

12

 

 

(c)

Total

 

 

8

 

 

$

2,723

 

 

 

 

 

10

 

 

$

1,708

 

 

 

 

Type of modifications:

(a) Reduction of stated interest rate of loan

 

(b)

Change in payment terms

 

(c)

Extension of maturity date

 

(d)

Permanent reduction of the recorded investment