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Note 5 - Loans
6 Months Ended
Jun. 30, 2019
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
5.
Loans:
The composition of the loan portfolio at
June 30, 2019
and
December 31, 2018,
is as follows (in thousands):
 
   
June 30, 2019
   
December 31, 2018
 
                 
Gaming
  $
20,703
    $
25,767
 
Hotel/Motel
   
48,295
     
44,112
 
Real estate, construction
   
24,699
     
31,597
 
Real estate, mortgage
   
136,633
     
137,437
 
Commercial and industrial
   
28,205
     
27,505
 
Other
   
7,562
     
6,928
 
Total
  $
266,097
    $
273,346
 
 
The age analysis of the loan portfolio, segregated by class of loans, as of
June 30, 2019
and
December 31, 2018,
is as follows (in thousands):
 
                                                   
Loans Past
 
                                                   
Due Greater
 
   
Number of Days Past Due
                           
Than 90
 
     
 
     
 
   
Greater
   
Total
     
 
   
Total
   
Days &
 
     
30 - 59
     
60 - 89
   
Than 90
   
Past Due
   
Current
   
Loans
   
Still Accruing
 
June 30, 2019:
                                                       
Gaming
  $
 
   
 
    $
 
   
 
    $
20,703
    $
20,703
    $
 
 
Hotel/Motel
   
 
     
 
     
 
     
 
     
48,295
     
48,295
     
 
 
Real estate, construction
   
1,358
     
 
     
46
     
1,404
     
23,295
     
24,699
     
 
 
Real estate, mortgage
   
3,245
     
958
     
4,904
     
9,107
     
127,526
     
136,633
     
 
 
Commercial and industrial
   
239
     
5
     
789
     
1,033
     
27,172
     
28,205
     
 
 
Other
   
64
     
4
     
 
     
68
     
7,494
     
7,562
     
 
 
                                                         
Total
  $
4,906
    $
967
    $
5,739
    $
11,612
    $
254,485
    $
266,097
    $
 
 
December 31, 2018:
                                                       
Gaming
  $
 
   
 
    $
 
    $
 
    $
25,767
    $
25,767
    $
 
 
Hotel/Motel
   
 
     
 
     
 
     
 
     
44,112
     
44,112
     
 
 
Real estate, construction
   
1,987
     
340
     
860
     
3,187
     
28,410
     
31,597
     
 
 
Real estate, mortgage
   
2,866
     
7,129
     
1,730
     
11,725
     
125,712
     
137,437
     
 
 
Commercial and industrial
   
9
     
110
     
1,661
     
1,780
     
25,725
     
27,505
     
 
 
Other
   
107
     
3
     
 
     
110
     
6,818
     
6,928
     
 
 
                                                         
Total
  $
4,969
    $
7,582
    $
4,251
    $
16,802
    $
256,544
    $
273,346
    $
 
 
 
The Company monitors the credit quality of its loan portfolio through the use of a loan grading system. A score of
1
5
is assigned to the loan on factors including repayment ability, trends in net worth and/or financial condition of the borrower and guarantors, employment stability, management ability, loan to value fluctuations, the type and structure of the loan, conformity of the loan to bank policy and payment performance. Based on the total score, a loan grade of A, B, C, S, D, E or F is applied. A grade of A will generally be applied to loans for customers that are well known to the Company and that have excellent sources of repayment. A grade of B will generally be applied to loans for customers that have excellent sources of repayment which have
no
identifiable risk of collection. A grade of C will generally be applied to loans for customers that have adequate sources of repayment which have little identifiable risk of collection. A grade of S will generally be applied to loans for customers who meet the criteria for a grade of C but also warrant additional monitoring by placement on the watch list. A grade of D will generally be applied to loans for customers that are inadequately protected by current sound net worth, paying capacity of the borrower, or pledged collateral. Loans with a grade of D have unsatisfactory characteristics such as cash flow deficiencies, bankruptcy filing by the borrower or dependence on the sale of collateral for the primary source of repayment, causing more than acceptable levels of risk. Loans
60
to
89
days past due receive a grade of D. A grade of E will generally be applied to loans for customers with weaknesses inherent in the “D” classification and in which collection or liquidation in full is questionable. In addition, on a monthly basis the Company determines which loans are
90
days or more past due and assigns a grade of E to them. A grade of F is applied to loans which are considered uncollectible and of such little value that their continuance in an active bank is
not
warranted. Loans with this grade are charged off, even though partial or full recovery
may
be possible in the future.
 
An analysis of the loan portfolio by loan grade, segregated by class of loans, as of
June 30, 2019
and
December 31, 2018,
is as follows (in thousands):
 
   
Loans With A Grade Of:
         
   
A, B or C
   
S
   
D
   
E
   
F
   
Total
 
June 30, 2019:
                                               
Gaming
  $
20,703
    $
 
    $
 
    $
 
    $       $
20,703
 
Hotel/Motel
   
48,295
     
 
     
 
     
 
             
48,295
 
Real estate, construction
   
23,911
     
 
     
208
     
580
             
24,699
 
Real estate, mortgage
   
106,992
     
15,027
     
5,973
     
8,641
             
136,633
 
Commercial and industrial
   
18,084
     
8,882
     
148
     
1,091
             
28,205
 
Other
   
7,548
     
 
     
12
     
2
             
7,562
 
Total
  $
225,533
    $
23,909
    $
6,341
    $
10,314
    $       $
266,097
 
                                                 
December 31, 2018:
                                               
Gaming
  $
21,080
    $
 
    $
4,687
    $
 
    $       $
25,767
 
Hotel/Motel
   
44,112
     
 
     
 
     
 
             
44,112
 
Real estate, construction
   
29,930
     
 
     
217
     
1,450
             
31,597
 
Real estate, mortgage
   
108,885
     
10,430
     
12,992
     
5,130
             
137,437
 
Commercial and industrial
   
25,335
     
 
     
218
     
1,952
             
27,505
 
Other
   
6,904
     
 
     
20
     
4
             
6,928
 
Total
  $
236,246
    $
10,430
    $
18,134
    $
8,536
    $       $
273,346
 
 
A loan
may
be impaired but
not
on nonaccrual status when the loan is well secured and in the process of collection. Total loans on nonaccrual as of
June 30, 2019
and
December 31, 2018,
are as follows (in thousands):
 
   
June 30, 2019
   
December 31, 2018
 
                 
Real estate, construction
  $
580
    $
1,439
 
Real estate, mortgage
   
8,554
     
4,954
 
Commercial and industrial
   
1,007
     
1,855
 
Other
   
2
     
2
 
Total
  $
10,143
    $
8,250
 
 
Prior to
2018,
certain loans were modified by granting interest rate concessions to these customers with such loans being classified as troubled debt restructurings. During
2018
and
2019,
the Company did
not
restructure any additional loans. Specific reserves of
$63,106
and
$69,000
were allocated to troubled debt restructurings as of
June 30, 2019
and
December 31, 2018,
respectively. The Bank had
no
commitments to lend additional amounts to customers with outstanding loans classified as troubled debt restructurings as of
June 30, 2019
and
December 31, 2018.
 
Impaired loans, which include loans classified as nonaccrual and troubled debt restructurings, segregated by class of loans, as of
June 30, 2019
and
December 31, 2018,
are as follows (in thousands):
 
   
Unpaid
Principal
Balance
   
Recorded
Investment
   
Related
Allowance
   
Average
Recorded
Investment
   
Interest
Income
Recognized
 
June 30, 2019:
                                       
With no related allowance recorded:
                                       
Real estate, construction
  $
349
    $
349
    $
 
    $
362
    $
 
 
Real estate, mortgage
   
8,782
     
8,782
     
 
     
8,858
     
15
 
Commercial and industrial
   
1,189
     
962
     
 
     
1,120
     
 
 
Other
   
2
     
2
     
 
     
2
     
 
 
                                         
Total
   
10,322
     
10,095
     
 
     
10,342
     
15
 
                                         
With a related allowance recorded:
                                       
Real estate, construction
   
231
     
231
     
20
     
232
     
 
 
Real estate, mortgage
   
838
     
838
     
99
     
842
     
14
 
Commercial and industrial
   
45
     
45
     
4
     
40
     
 
 
                                         
Total
   
1,114
     
1,114
     
123
     
1,114
     
14
 
                                         
Total by class of loans:
                                       
Real estate, construction
   
580
     
580
     
20
     
594
     
 
 
Real estate, mortgage
   
9,620
     
9,620
     
99
     
9,700
     
29
 
Commercial and industrial
   
1,234
     
1,007
     
4
     
1,160
     
 
 
Other
   
2
     
2
     
 
     
2
     
 
 
                                         
Total
  $
11,436
    $
11,209
    $
123
    $
11,456
    $
29
 
 
 
   
Unpaid
Principal
Balance
   
Recorded
Investment
   
Related
Allowance
   
Average
Recorded
Investment
   
Interest
Income
Recognized
 
December 31, 2018:
                                       
With no related allowance recorded:
                                       
Real estate, construction
  $
1,171
    $
784
    $
 
    $
785
    $
 
 
Real estate, mortgage
   
5,508
     
5,474
     
 
     
5,826
     
29
 
Commercial and industrial
   
2,083
     
1,855
     
 
     
2,204
     
 
 
Other
   
2
     
2
     
 
     
3
     
 
 
                                         
Total
   
8,764
     
8,115
     
 
     
8,818
     
29
 
                                         
With a related allowance recorded:
                                       
Real estate, construction
   
742
     
655
     
283
     
633
     
 
 
Real estate, mortgage
   
574
     
574
     
101
     
589
     
25
 
                                         
Total
   
1,316
     
1,229
     
384
     
1,222
     
25
 
                                         
Total by class of loans:
                                       
Real estate, construction
   
1,913
     
1,439
     
283
     
1,418
     
 
 
Real estate, mortgage
   
6,082
     
6,048
     
101
     
6,415
     
54
 
Commercial and industrial
   
2,083
     
1,855
     
 
     
2,204
     
 
 
Other
   
2
     
2
     
 
     
3
     
 
 
                                         
Total
  $
10,080
    $
9,344
    $
384
    $
10,040
    $
54