| 3. Loans Held for Investment |
Loans outstanding
at September 30, 2016 and December 31, 2015 are summarized as follows (in thousands):
| |
|
2016 |
|
|
2015 |
|
| Construction/Land Development |
|
$ |
77,478 |
|
|
$ |
69,759 |
|
| Farmland |
|
|
12,697 |
|
|
|
13,378 |
|
| Real Estate |
|
|
168,911 |
|
|
|
166,587 |
|
| Multi-Family |
|
|
6,929 |
|
|
|
7,559 |
|
| Commercial Real Estate |
|
|
143,376 |
|
|
|
128,032 |
|
| Home Equity – closed end |
|
|
10,775 |
|
|
|
9,135 |
|
| Home Equity – open end |
|
|
55,852 |
|
|
|
56,599 |
|
| Commercial & Industrial – Non-Real Estate |
|
|
28,760 |
|
|
|
27,954 |
|
| Consumer |
|
|
7,218 |
|
|
|
8,219 |
|
| Dealer Finance |
|
|
63,406 |
|
|
|
54,086 |
|
| Credit Cards |
|
|
2,687 |
|
|
|
2,745 |
|
| Total |
|
$ |
578,089 |
|
|
$ |
544,053 |
|
The following is a summary of information pertaining to impaired
loans (in thousands):
| |
|
September 30, 2016 |
|
|
December 31, 2015 |
|
| |
|
|
|
|
Unpaid |
|
|
|
|
|
|
|
|
Unpaid |
|
|
|
|
| |
|
Recorded |
|
|
Principal |
|
|
Related |
|
|
Recorded |
|
|
Principal |
|
|
Related |
|
| |
|
Investment |
|
|
Balance |
|
|
Allowance |
|
|
Investment |
|
|
Balance |
|
|
Allowance |
|
| Impaired loans without a valuation allowance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Construction/Land Development |
|
$ |
3,913 |
|
|
$ |
4,207 |
|
|
$ |
- |
|
|
$ |
1,361 |
|
|
$ |
1,499 |
|
|
$ |
- |
|
| Farmland |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Real Estate |
|
|
774 |
|
|
|
774 |
|
|
|
- |
|
|
|
1,097 |
|
|
|
1,097 |
|
|
|
- |
|
| Multi-Family |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Commercial Real Estate |
|
|
1,985 |
|
|
|
1,985 |
|
|
|
- |
|
|
|
307 |
|
|
|
307 |
|
|
|
- |
|
| Home Equity – closed end |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Home Equity – open end |
|
|
- |
|
|
|
347 |
|
|
|
- |
|
|
|
1,159 |
|
|
|
1,159 |
|
|
|
- |
|
| Commercial & Industrial – Non-Real Estate |
|
|
173 |
|
|
|
173 |
|
|
|
- |
|
|
|
181 |
|
|
|
181 |
|
|
|
- |
|
| Consumer |
|
|
15 |
|
|
|
15 |
|
|
|
- |
|
|
|
18 |
|
|
|
18 |
|
|
|
- |
|
| Credit cards |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Dealer Finance |
|
|
24 |
|
|
|
24 |
|
|
|
- |
|
|
|
4 |
|
|
|
4 |
|
|
|
- |
|
| |
|
|
6,884 |
|
|
|
7,525 |
|
|
|
|
|
|
|
4,127 |
|
|
|
4,265 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Impaired loans with a valuation allowance |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Construction/Land Development |
|
|
6,836 |
|
|
|
6,836 |
|
|
|
1,601 |
|
|
|
11,534 |
|
|
|
11,534 |
|
|
|
2,373 |
|
| Farmland |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Real Estate |
|
|
1,210 |
|
|
|
1,210 |
|
|
|
219 |
|
|
|
324 |
|
|
|
324 |
|
|
|
238 |
|
| Multi-Family |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Commercial Real Estate |
|
|
955 |
|
|
|
955 |
|
|
|
53 |
|
|
|
890 |
|
|
|
890 |
|
|
|
18 |
|
| Home Equity – closed end |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Home Equity – open end |
|
|
1,061 |
|
|
|
1,061 |
|
|
|
241 |
|
|
|
1,414 |
|
|
|
1,414 |
|
|
|
269 |
|
| Commercial & Industrial – Non-Real Estate |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Consumer |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Credit cards |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Dealer Finance |
|
|
57 |
|
|
|
57 |
|
|
|
18 |
|
|
|
68 |
|
|
|
68 |
|
|
|
17 |
|
| |
|
|
10,119 |
|
|
|
10,119 |
|
|
|
2,132 |
|
|
|
14,230 |
|
|
|
14,230 |
|
|
|
2,915 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total impaired loans |
|
$ |
17,003 |
|
|
$ |
17,644 |
|
|
$ |
2,132 |
|
|
$ |
18,357 |
|
|
$ |
18,495 |
|
|
$ |
2,915 |
|
The Recorded Investment
is defined as the principal balance less principal payments and charge-offs.
The following is a summary of the average
investment and interest income recognized for impaired loans (in thousands):
| |
|
Three Months Ended September 30, |
|
|
Nine Months Ended September 30, |
|
| |
|
2016 |
|
|
2015 |
|
|
2016 |
|
|
2015 |
|
| |
|
Average Recorded |
|
|
Interest Income |
|
|
Average Recorded |
|
|
Interest Income |
|
|
Average Recorded |
|
|
Interest Income |
|
|
Average Recorded |
|
|
Interest Income |
|
| |
|
Investment |
|
|
Recognized |
|
|
Investment |
|
|
Recognized |
|
|
Investment |
|
|
Recognized |
|
|
Investment |
|
|
Recognized |
|
| Impaired loans without a valuation allowance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Construction/Land Development |
|
$ |
2,649 |
|
|
$ |
15 |
|
|
$ |
3,423 |
|
|
$ |
18 |
|
|
$ |
2,009 |
|
|
$ |
32 |
|
|
$ |
4,153 |
|
|
$ |
110 |
|
| Farmland |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Real Estate |
|
|
778 |
|
|
|
8 |
|
|
|
1,146 |
|
|
|
7 |
|
|
|
860 |
|
|
|
28 |
|
|
|
643 |
|
|
|
43 |
|
| Multi-Family |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Commercial Real Estate |
|
|
993 |
|
|
|
77 |
|
|
|
728 |
|
|
|
(17 |
) |
|
|
674 |
|
|
|
79 |
|
|
|
1,016 |
|
|
|
13 |
|
| Home Equity – closed end |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Home Equity – open end |
|
|
964 |
|
|
|
(35 |
) |
|
|
1,553 |
|
|
|
10 |
|
|
|
1,167 |
|
|
|
8 |
|
|
|
1,601 |
|
|
|
82 |
|
| Commercial & Industrial – Non-Real Estate |
|
|
174 |
|
|
|
2 |
|
|
|
185 |
|
|
|
3 |
|
|
|
177 |
|
|
|
2 |
|
|
|
187 |
|
|
|
9 |
|
| Consumer and credit cards |
|
|
7 |
|
|
|
2 |
|
|
|
10 |
|
|
|
- |
|
|
|
12 |
|
|
|
- |
|
|
|
5 |
|
|
|
- |
|
| Dealer Finance |
|
|
24 |
|
|
|
(1 |
) |
|
|
- |
|
|
|
2 |
|
|
|
15 |
|
|
|
1 |
|
|
|
- |
|
|
|
2 |
|
| |
|
|
5,589 |
|
|
|
68 |
|
|
|
7,045 |
|
|
|
23 |
|
|
|
4,914 |
|
|
|
150 |
|
|
|
7,605 |
|
|
|
259 |
|
| Impaired loans with a valuation allowance: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Construction/Land Development |
|
|
8,429 |
|
|
|
112 |
|
|
|
12,590 |
|
|
|
29 |
|
|
$ |
9,761 |
|
|
$ |
212 |
|
|
|
13,222 |
|
|
$ |
220 |
|
| Farmland |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Real Estate |
|
|
1,214 |
|
|
|
14 |
|
|
|
663 |
|
|
|
25 |
|
|
|
994 |
|
|
|
40 |
|
|
|
793 |
|
|
|
43 |
|
| Multi-Family |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Commercial Real Estate |
|
|
958 |
|
|
|
14 |
|
|
|
887 |
|
|
|
1 |
|
|
|
944 |
|
|
|
42 |
|
|
|
902 |
|
|
|
3 |
|
| Home Equity – closed end |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Home Equity – open end |
|
|
1,234 |
|
|
|
(5 |
) |
|
|
824 |
|
|
|
58 |
|
|
|
1,322 |
|
|
|
14 |
|
|
|
412 |
|
|
|
58 |
|
| Commercial & Industrial – Non-Real Estate |
|
|
14 |
|
|
|
(1 |
) |
|
|
- |
|
|
|
- |
|
|
|
14 |
|
|
|
0 |
|
|
|
- |
|
|
|
- |
|
| Consumer and credit card |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Dealer Finance |
|
|
72 |
|
|
|
- |
|
|
|
51 |
|
|
|
- |
|
|
|
72 |
|
|
|
3 |
|
|
|
41 |
|
|
|
3 |
|
| |
|
|
11,921 |
|
|
|
134 |
|
|
|
15,015 |
|
|
|
113 |
|
|
|
13,107 |
|
|
|
311 |
|
|
|
15,370 |
|
|
|
327 |
|
| Total Impaired Loans |
|
$ |
17,510 |
|
|
$ |
202 |
|
|
$ |
22,060 |
|
|
$ |
136 |
|
|
$ |
18,021 |
|
|
$ |
461 |
|
|
$ |
22,975 |
|
|
$ |
586 |
|
|