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Note 4 - Credit Quality
 6 Months Ended
Jun. 30, 2022
Notes to Financial Statements  
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 be upgraded or downgraded to reflect current information identified during the loan review process. The general characteristics of each risk grade are as follows:

 

●

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 corrected, the prospect of repayment may worsen.

 

●

Substandard -- This grade is assigned to loans that have well defined weaknesses that may make payment default, or principal exposure, possible. These loans will likely be dependent on collateral liquidation, secondary repayment sources, or events outside the normal course of business to meet repayment terms.

 

●

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 imply that the asset has no recovery or salvage value, but simply means that it is not practical or desirable to defer writing off, either all or a portion of, the loan balance even though partial recovery may be realized in the future.

 

The following table presents the recorded investment of the loan portfolio, by loan class and credit quality, as of the dates indicated:

 

  

June 30, 2022

 
      

Special

                 

(Amounts in thousands)

 

Pass

  

Mention

  

Substandard

  

Doubtful

  

Loss

  

Total

 

Commercial loans

                        

Construction, development, and other land

 $91,872  $417  $551  $-  $-  $92,840 

Commercial and industrial

  136,353   982   2,457   -   -   139,792 

Multi-family residential

  123,403   649   222   -   -   124,274 

Single family non-owner occupied

  184,275   2,287   8,551   -   -   195,113 

Non-farm, non-residential

  723,467   16,794   12,108   -   -   752,369 

Agricultural

  9,754   54   179   -   -   9,987 

Farmland

  10,584   603   1,646   -   -   12,833 

Consumer real estate loans

                        

Home equity lines

  75,540   430   3,029   -   -   78,999 

Single family owner occupied

  692,766   2,041   27,563   -   -   722,370 

Owner occupied construction

  17,167   -   164   -   -   17,331 

Consumer and other loans

                        

Consumer loans

  145,934   11   2,796   -   -   148,741 

Other

  5,149   -   -   -   -   5,149 

Total loans

 $2,216,264  $24,268  $59,266  $-  $-  $2,299,798 

 

  

December 31, 2021

 
      

Special

                 

(Amounts in thousands)

 

Pass

  

Mention

  

Substandard

  

Doubtful

  

Loss

  

Total

 
                         

Commercial loans

                        

Construction, development, and other land

 $64,498  $451  $857  $-  $-  $65,806 

Commercial and industrial

  128,770   1,005   3,855   -   -   133,630 

Multi-family residential

  98,457   1,090   855   -   -   100,402 

Single family non-owner occupied

  186,184   3,607   8,977   10   -   198,778 

Non-farm, non-residential

  665,559   25,624   16,323   -   -   707,506 

Agricultural

  8,758   70   513   -   -   9,341 

Farmland

  11,939   633   2,441   -   -   15,013 

Consumer real estate loans

                        

Home equity lines

  76,259   426   3,172   -   -   79,857 

Single family owner occupied

  671,459   2,420   29,985   -   -   703,864 

Owner occupied construction

  16,629   -   281   -   -   16,910 

Consumer and other loans

                        

Consumer loans

  127,514   16   2,264   -   -   129,794 

Other

  4,668   -   -   -   -   4,668 

Total loans

 $2,060,694  $35,342  $69,523  $10  $-  $2,165,569 

 

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 June 30, 2022

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Construction, development

                                

and other land

                                

Pass

 $19,079  $49,774  $10,616  $2,732  $3,037  $6,280  $354  $91,872 

Special Mention

  -   -   -   -   111   270   36   417 

Substandard

  -   -   255   36   12   248   -   551 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total construction, development, and other land

 $19,079  $49,774  $10,871  $2,768  $3,160  $6,798  $390  $92,840 

Commercial and industrial

                                

Pass

 $44,408  $28,875  $15,160  $10,273  $11,012  $8,013  $16,545  $134,286 

Special Mention

  -   25   35   601   226   -   95   982 

Substandard

  145   176   222   588   231   578   517   2,457 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total commercial and industrial

 $44,553  $29,076  $15,417  $11,462  $11,469  $8,591  $17,157  $137,725 

Paycheck Protection Loans

                                

Pass

 $-  $2,038  $29  $-  $-  $-  $-  $2,067 

Special Mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   -   - 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total Paycheck Protection Loans

 $-  $2,038  $29  $-  $-  $-  $-  $2,067 

Multi-family residential

                                

Pass

 $33,938  $10,932  $23,800  $4,354  $1,807  $47,638  $934  $123,403 

Special Mention

  -   -   -   -   -   649   -   649 

Substandard

  -   -   -   -   -   222   -   222 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total multi-family residential

 $33,938  $10,932  $23,800  $4,354  $1,807  $48,509  $934  $124,274 

Non-farm, non-residential

                                

Pass

 $134,331  $139,073  $129,979  $57,546  $39,902  $208,618  $14,018  $723,467 

Special Mention

  -   1,969   868   1,216   2,571   10,020   150   16,794 

Substandard

  -   1,144   692   2,471   722   6,851   228   12,108 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total non-farm, non-residential

 $134,331  $142,186  $131,539  $61,233  $43,195  $225,489  $14,396  $752,369 

Agricultural

                                

Pass

 $2,560  $3,779  $1,258  $601  $407  $715  $434  $9,754 

Special Mention

  -   37   17   -   -   -   -   54 

Substandard

  -   40   7   84   36   12   -   179 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total agricultural

 $2,560  $3,856  $1,282  $685  $443  $727  $434  $9,987 

Farmland

                                

Pass

 $166  $727  $1,002  $77  $903  $6,176  $1,533  $10,584 

Special Mention

  -   110   -   -   232   261   -   603 

Substandard

  -   -   13   -   257   1,376   -   1,646 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total farmland

 $166  $837  $1,015  $77  $1,392  $7,813  $1,533  $12,833 

 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at June 30, 2022

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Home equity lines

                                

Pass

 $1,026  $102  $-  $-  $62  $861  $73,489  $75,540 

Special Mention

  -   -   -   -   -   -   430   430 

Substandard

  -   -   85   36   205   1,253   1,450   3,029 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total home equity lines

 $1,026  $102  $85  $36  $267  $2,114  $75,369  $78,999 

Single family Mortgage

                                

Pass

 $92,181  $235,009  $213,126  $54,675  $39,796  $241,066  $1,188  $877,041 

Special Mention

  -   387   85   372   266   3,218   -   4,328 

Substandard

  382   1,041   715   1,082   2,172   30,722   -   36,114 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total single family owner and non-owner occupied

 $92,563  $236,437  $213,926  $56,129  $42,234  $275,006  $1,188  $917,483 

Owner occupied construction

                                

Pass

 $2,591  $11,768  $2,005  $32  $16  $755  $-  $17,167 

Special Mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   163   -   -   1   -   164 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total owner occupied construction

 $2,591  $11,768  $2,168  $32  $16  $756  $-  $17,331 

Consumer loans

                                

Pass

 $53,360  $49,325  $22,059  $11,474  $3,844  $8,796  $2,225  $151,083 

Special Mention

  -   3   -   7   -   -   1   11 

Substandard

  55   1,049   730   645   52   189   76   2,796 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total consumer loans

 $53,415  $50,377  $22,789  $12,126  $3,896  $8,985  $2,302  $153,890 

 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at June 30, 2022

 

2022

  

2021

  

2020

  

2019

  

2018

  

Prior

  

Revolving

  

Total

 

Total Loans

                                

Pass

 $383,640  $531,402  $419,034  $141,764  $100,786  $528,918  $110,720  $2,216,264 

Special Mention

  -   2,531   1,005   2,196   3,406   14,418   712   24,268 

Substandard

  582   3,450   2,882   4,942   3,687   41,452   2,271   59,266 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total loans

 $384,222  $537,383  $422,921  $148,902  $107,879  $584,788  $113,703  $2,299,798 

 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2021

 

2021

  

2020

  

2019

  

2018

  

2017

  

Prior

  

Revolving

  

Total

 

Construction, development

                                

and other land

                                

Pass

 $40,207  $10,127  $3,081  $3,704  $1,308  $5,717  $354  $64,498 

Special Mention

  -   266   -   128   -   21   36   451 

Substandard

  -   -   128   11   291   427   -   857 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total construction, development, and other land

 $40,207  $10,393  $3,209  $3,843  $1,599  $6,165  $390  $65,806 

Commercial and industrial

                                

Pass

 $34,539  $18,887  $13,679  $13,772  $4,817  $5,890  $16,544  $108,128 

Special Mention

  32   60   597   192   28   -   96   1,005 

Substandard

  184   355   706   384   842   866   518   3,855 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total commercial and industrial

 $34,755  $19,302  $14,982  $14,348  $5,687  $6,756  $17,158  $112,988 

Paycheck Protection Loans

                                

Pass

 $16,482  $4,160  $-  $-  $-  $-  $-  $20,642 

Special Mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   -   -   - 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total Paycheck Protection Loans

 $16,482  $4,160  $-  $-  $-  $-  $-  $20,642 

Multi-family residential

                                

Pass

 $11,307  $24,299  $4,644  $1,897  $8,413  $46,962  $935  $98,457 

Special Mention

  -   -   -   -   -   1,090   -   1,090 

Substandard

  -   -   -   -   -   855   -   855 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total multi-family residential

 $11,307  $24,299  $4,644  $1,897  $8,413  $48,907  $935  $100,402 

Non-farm, non-residential

                                

Pass

 $147,978  $146,381  $62,651  $50,943  $43,776  $199,812  $14,018  $665,559 

Special Mention

  397   3,334   823   2,595   9,190   9,135   150   25,624 

Substandard

  1,161   711   2,508   2,531   3,232   5,953   227   16,323 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total non-farm, non-residential

 $149,536  $150,426  $65,982  $56,069  $56,198  $214,900  $14,395  $707,506 

Agricultural

                                

Pass

 $4,564  $1,548  $998  $534  $346  $335  $433  $8,758 

Special Mention

  43   27   -   -   -   -   -   70 

Substandard

  44   11   282   39   17   120   -   513 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total agricultural

 $4,651  $1,586  $1,280  $573  $363  $455  $433  $9,341 

Farmland

                                

Pass

 $428  $1,047  $82  $1,125  $887  $6,835  $1,535  $11,939 

Special Mention

  189   -   -   240   5   199   -   633 

Substandard

  -   14   519   249   264   1,395   -   2,441 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total farmland

 $617  $1,061  $601  $1,614  $1,156  $8,429  $1,535  $15,013 

 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2021

 

2021

  

2020

  

2019

  

2018

  

2017

  

Prior

  

Revolving

  

Total

 

Home equity lines

                                

Pass

 $115  $59  $-  $25  $2  $2,168  $73,890  $76,259 

Special Mention

  -   -   -   -   -   -   426   426 

Substandard

  -   -   28   249   128   1,316   1,451   3,172 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total home equity lines

 $115  $59  $28  $274  $130  $3,484  $75,767  $79,857 

Single family Mortgage

                                

Pass

 $239,917  $225,294  $61,925  $46,716  $41,757  $240,845  $1,189  $857,643 

Special Mention

  399   510   937   269   137   3,775   -   6,027 

Substandard

  1,213   799   1,475   1,668   1,878   31,929   -   38,962 

Doubtful

  -   -   -   -   -   10   -   10 

Loss

  -   -   -   -   -   -   -   - 

Total single family owner and non-owner occupied

 $241,529  $226,603  $64,337  $48,653  $43,772  $276,559  $1,189  $902,642 

Owner occupied construction

                                

Pass

 $9,689  $4,729  $178  $22  $428  $1,583  $-  $16,629 

Special Mention

  -   -   -   -   -   -   -   - 

Substandard

  -   -   -   -   -   281   -   281 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total owner occupied construction

 $9,689  $4,729  $178  $22  $428  $1,864  $-  $16,910 

Consumer loans

                                

Pass

 $65,018  $31,065  $16,548  $4,980  $2,306  $10,040  $2,225  $132,182 

Special Mention

  -   -   16   -   -   -   -   16 

Substandard

  328   663   824   107   78   186   78   2,264 

Doubtful

  -   -   -   -   -   -   -   - 

Loss

  -   -   -   -   -   -   -   - 

Total consumer loans

 $65,346  $31,728  $17,388  $5,087  $2,384  $10,226  $2,303  $134,462 

 

(Amounts in thousands)

 

Term Loans Amortized Cost Basis by Origination Year

         

Balance at December 31, 2021

 

2021

  

2020

  

2019

  

2018

  

2017

  

Prior

  

Revolving

  

Total

 

Total Loans

                                

Pass

 $570,244  $467,596  $163,786  $123,718  $104,040  $520,187  $111,123  $2,060,694 

Special Mention

  1,060   4,197   2,373   3,424   9,360   14,220   708   35,342 

Substandard

  2,930   2,553   6,470   5,238   6,730   43,328   2,274   69,523 

Doubtful

  -   -   -   -   -   10   -   10 

Loss

  -   -   -   -   -   -   -   - 

Total loans

 $574,234  $474,346  $172,629  $132,380  $120,130  $577,745  $114,105  $2,165,569 

 

The Company generally places a loan on nonaccrual status when it is 90 days or more past due.  The following table presents nonaccrual loans, by loan class, as of the dates indicated:

 

  

June 30, 2022

  

December 31, 2021

 

(Amounts in thousands)

 

No Allowance

  

With an Allowance

  

Total

  

No Allowance

  

With an Allowance

  

Total

 

Commercial loans

                        

Construction, development, and other land

 $277  $-  $277  $409  $-  $409 

Commercial and industrial

  435   -   435   1,734   -   1,734 

Multi-family residential

  266   -   266   208   -   208 

Single family non-owner occupied

  2,132   -   2,132   2,304   -   2,304 

Non-farm, non-residential

  2,815   -   2,815   3,439   1,100   4,539 

Agricultural

  22   -   22   136   -   136 

Farmland

  133   -   133   222   -   222 

Consumer real estate loans

                        

Home equity lines

  775   -   775   767   -   767 

Single family owner occupied

  8,816   -   8,816   8,957   -   8,957 

Owner occupied construction

  -   -   -   -   -   - 

Consumer and other loans

                        

Consumer loans

  2,155   -   2,155   1,492   -   1,492 

Total nonaccrual loans

 $17,826  $-  $17,826  $19,668  $1,100  $20,768 

 

During the second quarter of 2022, $1 thousand in nonaccrual loan interest was recognized compared to $15 thousand for the same period of 2021. During the first six months of 2022  $3 thousand  in nonaccrual loan interest was recognized compared to $24 thousand for the same period of  2021 .

 

The following tables presents the aging of past due loans, by loan class, as of the dates indicated. Nonaccrual loans 30 days or more past due are included in the applicable delinquency category: 

 

  June 30, 2022 
                          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

 $231  $252  $25  $508  $92,332  $92,840  $- 

Commercial and industrial

  346   84   192   622   139,170   139,792   - 

Multi-family residential

  148   -   -   148   124,126   124,274   - 

Single family non-owner occupied

  180   327   502   1,009   194,104   195,113   - 

Non-farm, non-residential

  90   16   2,050   2,156   750,213   752,369   - 

Agricultural

  16   -   13   29   9,958   9,987   - 

Farmland

  -   -   133   133   12,700   12,833   - 

Consumer real estate loans

                            

Home equity lines

  405   123   469   997   78,002   78,999   - 

Single family owner occupied

  3,977   2,471   3,017   9,465   712,905   722,370   - 

Owner occupied construction

  -   -   -   -   17,331   17,331   - 

Consumer and other loans

                            

Consumer loans

  3,002   1,035   1,176   5,213   143,528   148,741   - 

Other

  -   -   -   -   5,149   5,149   - 

Total loans

 $8,395  $4,308  $7,577  $20,280  $2,279,518  $2,299,798  $- 

 

  

December 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

 $52  $-  $120  $172  $65,634  $65,806  $- 

Commercial and industrial

  325   35   1,394   1,754   131,876   133,630   - 

Multi-family residential

  97   -   -   97   100,305   100,402   - 

Single family non-owner occupied

  1,210   583   795   2,588   196,190   198,778   - 

Non-farm, non-residential

  1,002   441   2,333   3,776   703,730   707,506   - 

Agricultural

  73   7   101   181   9,160   9,341   - 

Farmland

  52   -   222   274   14,739   15,013   - 

Consumer real estate loans

                            

Home equity lines

  275   388   333   996   78,861   79,857   - 

Single family owner occupied

  4,740   2,584   3,880   11,204   692,660   703,864   - 

Owner occupied construction

  139   -   -   139   16,771   16,910   - 

Consumer and other loans

                            

Consumer loans

  3,469   1,182   1,049   5,700   124,094   129,794   - 

Other

  -   -   -   -   4,668   4,668   - 

Total loans

 $11,434  $5,220  $10,227  $26,881  $2,138,688  $2,165,569  $- 

 

ASC 326 prescribes that when an entity determines foreclosure is probable, the expected credit loss is required to be measured based on the fair value of the collateral. As a practical expedient, an entity may use the fair value as of the reporting date when recording the net carrying amount of the asset. For the collateral dependent asset ("CDA") a credit loss expense is recorded for loan amounts in excess of fair value of the collateral.  The table below summarizes collateral dependent loans, where foreclosure is probable, by type of collateral, and the extent to which they are collateralized during the period.

 

  

June 30, 2022

  

December 31, 2021

 

(Amounts in thousands)

 

Balance

  

Collateral Coverage

  

%

  

Balance

  

Collateral Coverage

  

%

 

Commercial Real Estate

                        

Hotel

 $-  $-   -  $-  $-   - 

Office

  -   -   -   -   -   - 

Other

  766   972   126.89%  2,216   2,312   104.33%

Retail

  -   -   -   -   -   - 

Multi-Family

                        

Industrial

  -   -   -   -   -   - 

Office

  -   -   -   -   -   - 

Other

  -   -   -   -   -   - 

Commercial and industrial

                        

Industrial

  -   -   -   -   -   - 

Other

  -   -   -   -   -   - 

Home equity loans

  -   -   -   -   -   - 

Consumer owner occupied

  -   -   -   -   -   - 

Consumer

  -   -   -   -   -   - 

Total collateral dependent loans

 $766  $972   126.89% $2,216  $2,312   104.33%

 

The Company may make concessions in interest rates, loan terms and/or amortization terms when restructuring loans for borrowers experiencing financial difficulty. Certain TDRs are classified as nonperforming at the time of restructuring and are returned to performing status after six months of satisfactory payment performance; however, these loans remain identified as impaired until full payment or other satisfaction of the obligation occurs.

 

The CARES Act included a provision allowing banks to not apply the guidance on accounting for troubled debt restructurings to loan modifications, such as extensions or deferrals, related to COVID-19 made between March 1, 2020, and the earlier of (i) December 31, 2021, or (ii) 60 days after the end of the COVID-19 national emergency. The relief can only be applied to modifications for borrowers that were not more than 30 days past due as of December 31, 2019. The Company elected to adopt this provision of the CARES Act.

 

 

The following table presents loans modified as TDRs, by loan class and accrual status, as of the dates indicated:

 

  

June 30, 2022

  

December 31, 2021

 

(Amounts in thousands)

 

Nonaccrual(1)

  

Accruing

  

Total

  

Nonaccrual(1)

  

Accruing

  

Total

 

Commercial loans

                        

Commercial and industrial

 $-  $432  $432  $396  $470  $866 

Single family non-owner occupied

  150   853   1,003   857   1,100   1,957 

Non-farm, non-residential

  -   1,963   1,963   -   2,021   2,021 

Consumer real estate loans

                        

Home equity lines

  -   61   61   -   67   67 

Single family owner occupied

  1,284   4,978   6,262   1,266   4,755   6,021 

Owner occupied construction

  -   -   -   -   212   212 

Consumer and other loans

                        

Consumer loans

  -   26   26   -   27   27 

Total TDRs

 $1,434  $8,313  $9,747  $2,519  $8,652  $11,171 
                         

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 June 30,

  

Six Months Ended June 30,

 
  

2022

  

2021

  

2022

  

2021

 

(Amounts in thousands)

                

Interest income recognized

 $97  $94  $202  $198 

 

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 June 30,

 
  

2022

  

2021

 

(Amounts in thousands)

 Total Contracts  

Pre-modification Recorded Investment

  

Post-modification Recorded Investment(1)

  Total Contracts  

Pre-modification Recorded Investment

  

Post-modification Recorded Investment(1)

 

Extended term

                        

Single family owner occupied

  2  $238  $245   -  $-  $- 

Total extended term

  2   238   245   -   -   - 

Total

  2  $238  $245   -  $-  $- 

 

(1)

Represents the loan balance immediately following modification

 

  

Six Months Ended June 30,

 
  

2022

  

2021

 

(Amounts in thousands)

 

Total Contracts

  

Pre-modification Recorded Investment

  

Post-modification Recorded Investment(1)

  

Total Contracts

  

Pre-modification Recorded Investment

  

Post-modification Recorded Investment(1)

 

Below market interest rate

                        

Single family owner occupied

  1  $31  $31   -  $-  $- 

Total below market interest rate

  1  $31  $31   -   -   - 

Extended payment term

                        

Single family owner occupied

  2   238   245   -   -   - 

Total extended payment term

  2   238   245   -   -   - 

Payment deferral

                        

Non-farm, non-residential

  -   -   -   1   1,390   1,374 

Total principal deferral

  -   -   -   1   1,390   1,374 

Total

  3  $269  $276   1  $1,390  $1,374 

 

(1)

Represents the loan balance immediately following modification

 

There  was one payment default in the amount of $39 thousand for loans modified as TDRs restructured within the previous 12 months as of June 30, 2022, and  none as of   June 30, 2021.

 

The following table provides information about other real estate owned (“OREO”), which consists of properties acquired through foreclosure, as of the dates indicated:

 

  

June 30, 2022

  

December 31, 2021

 

(Amounts in thousands)

        

OREO

 $579  $1,015 
         

OREO secured by residential real estate

 $221  $337 

Residential real estate loans in the foreclosure process(1)

 $2,741  $2,210 

 

(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