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Section 1: 10-Q (10-Q)

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
WASHINGTON, D.C. 20549
 
FORM 10-Q
 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
 
SECURITIES EXCHANGE ACT OF 1934
 
For The Quarterly Period Ended June 30, 2018
 
Commission File Number 0-16759
 
FIRST FINANCIAL CORPORATION
(Exact name of registrant as specified in its charter) 
INDIANA
35-1546989
(State or other jurisdiction
(I.R.S. Employer
incorporation or organization)
Identification No.)
 
 
One First Financial Plaza, Terre Haute, IN
47807
(Address of principal executive office)
(Zip Code)
 
 
(812)238-6000
 
(Registrant's telephone number, including area code)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x  No  ¨.
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). 
Yes x   No  ¨.
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer  ¨
Accelerated filer x
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
Smaller reporting company ¨
Emerging growth company ¨
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.   ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ¨ No x.
 
As of August 6, 2018, the registrant had outstanding 12,255,045 shares of common stock, without par value.
 


Table of Contents

FIRST FINANCIAL CORPORATION
 
FORM 10-Q
 
INDEX 
 
 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


2

Table of Contents

Part I – Financial Information
Item 1.
Financial Statements
FIRST FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)
 
June 30,
2018
 
December 31,
2017
 
   (unaudited)
ASSETS
 

 
 

Cash and due from banks
$
50,081

 
$
74,107

Securities available-for-sale
782,609

 
814,931

Loans:
 

 
 

  Commercial
1,138,255

 
1,139,490

  Residential
442,163

 
436,143

  Consumer
345,404

 
327,976

 
1,925,822

 
1,903,609

(Less) plus:
 

 
 

  Net deferred loan costs
2,750

 
3,152

  Allowance for loan losses
(20,071
)
 
(19,909
)
 
1,908,501

 
1,886,852

Restricted stock
10,390

 
10,379

Accrued interest receivable
12,345

 
12,913

Premises and equipment, net
47,372

 
48,272

Bank-owned life insurance
85,606

 
85,016

Goodwill
34,355

 
34,355

Other intangible assets
1,424

 
1,630

Other real estate owned
497

 
1,880

Other assets
34,868

 
30,333

TOTAL ASSETS
$
2,968,048

 
$
3,000,668

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

Deposits:
 

 
 

  Non-interest-bearing
$
430,382

 
$
425,001

  Interest-bearing:
 

 
 

    Certificates of deposit exceeding the FDIC insurance limits
40,279

 
43,178

    Other interest-bearing deposits
1,983,674

 
1,990,474

 
2,454,335

 
2,458,653

Short-term borrowings
32,589

 
57,686

FHLB advances
1,400

 

Other liabilities
60,029

 
70,760

TOTAL LIABILITIES
2,548,353

 
2,587,099

 
 
 
 
Shareholders’ equity
 

 
 

Common stock, $.125 stated value per share;
 
 
 
Authorized shares-40,000,000
 
 
 
Issued shares-14,612,540 in 2018 and 14,595,320 in 2017
 
 
 
Outstanding shares-12,255,045 in 2018 and 12,246,464 in 2017
1,823

 
1,822

Additional paid-in capital
75,995

 
75,624

Retained earnings
440,605

 
420,275

Accumulated other comprehensive loss
(28,889
)
 
(14,704
)
Less: Treasury shares at cost-2,357,495 in 2018 and 2,348,856 in 2017
(69,839
)
 
(69,448
)
TOTAL SHAREHOLDERS’ EQUITY
419,695

 
413,569

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
2,968,048

 
$
3,000,668

See accompanying notes. 

3

Table of Contents

FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Dollar amounts in thousands, except per share data) 
 
Three Months Ended 
 June 30,
 
Six Months Ended 
 June 30,
 
2018
 
2017
 
2018
 
2017
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
INTEREST INCOME:
 

 
 

 
 

 
 

Loans, including related fees
$
24,778

 
$
22,325

 
$
48,401

 
$
44,266

Securities:
 

 
 

 
 

 
 

Taxable
5,947

 
3,630

 
9,540

 
7,387

Tax-exempt
1,860

 
1,843

 
3,700

 
3,670

Other
318

 
330

 
639

 
651

TOTAL INTEREST INCOME
32,903

 
28,128

 
62,280

 
55,974

INTEREST EXPENSE:
 

 
 

 
 

 
 

Deposits
2,125

 
1,471

 
3,889

 
2,746

Short-term borrowings
88

 
73

 
187

 
117

Other borrowings
6

 
24

 
47

 
44

TOTAL INTEREST EXPENSE
2,219

 
1,568

 
4,123

 
2,907

NET INTEREST INCOME
30,684

 
26,560

 
58,157

 
53,067

Provision for loan losses
1,355

 
1,040

 
2,828

 
2,636

NET INTEREST INCOME AFTER PROVISION
 

 
 

 
 

 
 

FOR LOAN LOSSES
29,329

 
25,520

 
55,329

 
50,431

NON-INTEREST INCOME:
 

 
 

 
 

 
 

Trust and financial services
1,340

 
1,149

 
2,755

 
2,466

Service charges and fees on deposit accounts
2,846

 
3,004

 
5,731

 
5,781

Other service charges and fees
3,347

 
3,114

 
6,491

 
6,299

Securities gains, net
2

 
15

 
2

 
17

Recovery of security previously written down for OTTI
4,158

 

 
4,158

 
3,061

Gain on sales of mortgage loans
500

 
393

 
840

 
720

Other
768

 
438

 
1,087

 
818

TOTAL NON-INTEREST INCOME
12,961

 
8,113

 
21,064

 
19,162

NON-INTEREST EXPENSE:
 

 
 

 
 

 
 

Salaries and employee benefits
12,578

 
12,218

 
25,543

 
25,293

Occupancy expense
1,633

 
1,761

 
3,414

 
3,529

Equipment expense
1,650

 
1,835

 
3,343

 
3,632

FDIC Expense
223

 
228

 
450

 
461

Other
6,599

 
6,046

 
13,144

 
11,750

TOTAL NON-INTEREST EXPENSE
22,683

 
22,088

 
45,894

 
44,665

INCOME BEFORE INCOME TAXES
19,607

 
11,545

 
30,499

 
24,928

Provision for income taxes
4,346

 
3,193

 
6,285

 
7,207

NET INCOME
15,261

 
8,352

 
24,214

 
17,721

OTHER COMPREHENSIVE INCOME (LOSS)
 

 
 

 
 

 
 

Change in unrealized gains/(losses) on securities, net of reclassifications and taxes
(4,682
)
 
5,045

 
(11,883
)
 
8,233

Change in funded status of post retirement benefits, net of taxes
281

 
184

 
(2,302
)
 
367

COMPREHENSIVE INCOME
$
10,860

 
$
13,581

 
$
10,029

 
$
26,321

PER SHARE DATA
 

 
 

 
 

 
 

Basic and Diluted Earnings per Share
$
1.25

 
$
0.68

 
$
1.98

 
$
1.45

Weighted average number of shares outstanding (in thousands)
12,255

 
12,224

 
12,252

 
12,221

See accompanying notes.

4

Table of Contents

FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Three Months Ended
June 30, 2018, and 2017
(Dollar amounts in thousands, except per share data)
(Unaudited)
 
 
Common
Stock
 
Additional
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income/(Loss)
 
Treasury
Stock
 
Total
Balance, April 1, 2017
$
1,820

 
$
74,701

 
$
431,195

 
$
(10,793
)
 
$
(70,115
)
 
$
426,808

Net income

 

 
8,352

 

 

 
8,352

Other comprehensive income

 

 

 
5,229

 

 
5,229

Omnibus Equity Incentive Plan
1

 
176

 

 

 

 
177

Cash dividends, $.50 per share

 

 
(6,112
)
 

 

 
(6,112
)
Balance, June 30, 2017
$
1,821

 
$
74,877

 
$
433,435

 
$
(5,564
)
 
$
(70,115
)
 
$
434,454

 
 
 
 
 
 
 
 
 
 
 
 
Balance, April 1, 2018
$
1,823

 
$
75,810

 
$
431,594

 
$
(24,488
)
 
$
(69,839
)
 
$
414,900

Net income

 

 
15,261

 

 

 
15,261

Other comprehensive loss

 

 

 
(4,401
)
 

 
(4,401
)
Omnibus Equity Incentive Plan

 
185

 

 

 

 
185

Cash dividends, $.51 per share

 

 
(6,250
)
 

 

 
(6,250
)
Balance, June 30, 2018
$
1,823

 
$
75,995

 
$
440,605

 
$
(28,889
)
 
$
(69,839
)
 
$
419,695

See accompanying notes.


























5

Table of Contents

FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Six Months Ended
June 30, 2018, and 2017
(Dollar amounts in thousands, except per share data)
(Unaudited)

 
 
 
 
 
 
 
 
 
 
 
 
 
Common
Stock
 
Additional
Capital
 
Retained
Earnings
 
Accumulated
Other
Comprehensive
Income/(Loss)
 
Treasury
Stock
 
Total
Balance, January 1, 2017
$
1,820

 
$
74,525

 
$
421,826

 
$
(14,164
)
 
$
(69,612
)
 
$
414,395

Net income

 

 
17,721

 

 

 
17,721

Other comprehensive income

 

 

 
8,600

 

 
8,600

Omnibus Equity Incentive Plan
1

 
352

 

 

 

 
353

Treasury shares purchased (9,524 shares)

 

 

 

 
(503
)
 
(503
)
Cash dividends, $.50 per share

 

 
(6,112
)
 

 

 
(6,112
)
Balance, June 30, 2017
$
1,821

 
$
74,877

 
$
433,435

 
$
(5,564
)
 
$
(70,115
)
 
$
434,454

 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2018
$
1,822

 
$
75,624

 
$
420,275

 
$
(14,704
)
 
$
(69,448
)
 
$
413,569

Net income

 

 
24,214

 

 

 
24,214

Other comprehensive loss

 

 

 
(11,819
)
 

 
(11,819
)
Omnibus Equity Incentive Plan
1

 
371

 

 

 

 
372

Treasury shares purchased (8,639 shares)

 

 

 

 
(391
)
 
(391
)
ASU 2018-02 adjustment

 

 
2,366

 
(2,366
)
 

 

Cash dividends, $.51 per share

 

 
(6,250
)
 

 

 
(6,250
)
Balance, June 30, 2018
$
1,823

 
$
75,995

 
$
440,605

 
$
(28,889
)
 
$
(69,839
)
 
$
419,695

See accompanying notes.




6

Table of Contents

FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands, except per share data)  
 
Six Months Ended 
 June 30,
 
2018
 
2017
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

Net Income
$
24,214

 
$
17,721

Adjustments to reconcile net income to net cash provided by operating activities:
 

 
 

Net amortization (accretion) of premiums and discounts on investments
1,765

 
1,812

Provision for loan losses
2,828

 
2,636

Securities (gains)
(2
)
 
(17
)
(Gain) / Loss on sale of other real estate
(16
)
 
36

Recovery of security previously written down for OTTI
(4,158
)
 
(3,061
)
Restricted stock compensation
372

 
353

Depreciation and amortization
2,082

 
2,274

Other, net
(4,605
)
 
(7,796
)
NET CASH FROM OPERATING ACTIVITIES
22,480

 
13,958

CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

Proceeds from sales of securities available-for-sale

 
783

Calls, maturities and principal reductions on securities available-for-sale
80,461

 
73,148

Purchases of securities available-for-sale
(62,076
)
 
(57,468
)
Loans made to customers, net of repayment
(24,656
)
 
(20,025
)
Purchase of restricted stock
(11
)
 
(10
)
Proceeds from sales of other real estate owned
1,654

 
633

Net change in federal funds sold

 
6,952

Additions to premises and equipment
(976
)
 
(1,078
)
NET CASH FROM INVESTING ACTIVITIES
(5,604
)
 
2,935

CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

Net change in deposits
(4,318
)
 
(806
)
Net change in short-term borrowings
(25,097
)
 
(29,109
)
Maturities of other borrowings
(52,800
)
 
(50,000
)
Proceeds from other borrowings
54,200

 
50,000

Purchase of treasury stock
(391
)
 
(503
)
Dividends paid
(12,496
)
 
(6,108
)
NET CASH FROM FINANCING ACTIVITIES
(40,902
)
 
(36,526
)
NET CHANGE IN CASH AND CASH EQUIVALENTS
(24,026
)
 
(19,633
)
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD
74,107

 
75,012

CASH AND DUE FROM BANKS, END OF PERIOD
$
50,081

 
$
55,379

See accompanying notes.


7

Table of Contents

FIRST FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
The accompanying June 30, 2018 and 2017 consolidated financial statements are unaudited. The December 31, 2017 consolidated financial statements are as reported in the First Financial Corporation (the “Corporation”) 2017 annual report. The information presented does not include all information and footnotes required by U.S. generally accepted accounting principles for complete financial statements. The following notes should be read together with notes to the consolidated financial statements included in the 10-K filed with the Securities and Exchange Commission for the fiscal year ended December 31, 2017

1.
Significant Accounting Policies
 
The significant accounting policies followed by the Corporation and its subsidiaries for interim financial reporting are consistent with the accounting policies followed for annual financial reporting. All adjustments which are, in the opinion of management, necessary for a fair statement of the results for the periods reported have been included in the accompanying consolidated financial statements and are of a normal recurring nature. The Corporation reports financial information for only one segment, banking. Some items in the prior year financials were reclassified to conform to the current presentation.
 
The Omnibus Equity Incentive Plan is a long-term incentive plan that was designed to align the interests of participants with the interests of shareholders. Under the plan, awards may be made based on certain performance measures. The grants are made in restricted stock units that are subject to a vesting schedule. These shares vest over 3 years in increments of 33%, 33%, and 34% respectively. At the six months ended 2018 and 2017, 17,220 and 16,562 shares were awarded, respectively. These shares had a grant date value of $784 thousand and $773 thousand for 2018 and 2017, vest over three years, and their grant is not subject to future performance measures. Outstanding shares are increased at the award date for the total shares awarded. 


2.
Allowance for Loan Losses

The following table presents the activity of the allowance for loan losses by portfolio segment for the three months
ended June 30. 
Allowance for Loan Losses:
 
June 30, 2018
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
10,152

 
$
1,389

 
$
6,781

 
$
1,920

 
$
20,242

Provision for loan losses
 
(345
)
 
109

 
1,451

 
140

 
1,355

Loans charged -off
 
(329
)
 
(255
)
 
(1,687
)
 

 
(2,271
)
Recoveries
 
20

 
139

 
586

 

 
745

Ending Balance
 
$
9,498

 
$
1,382

 
$
7,131

 
$
2,060

 
$
20,071


Allowance for Loan Losses:
 
June 30, 2017
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
9,377

 
$
1,496

 
$
6,334

 
$
2,188

 
$
19,395

Provision for loan losses
 
917

 
(231
)
 
817

 
(463
)
 
1,040

Loans charged -off
 
(360
)
 
(203
)
 
(1,527
)
 

 
(2,090
)
Recoveries
 
289

 
452

 
594

 

 
1,335

Ending Balance
 
$
10,223

 
$
1,514

 
$
6,218

 
$
1,725

 
$
19,680













8

Table of Contents

The following table presents the activity of the allowance for loan losses by portfolio segment for the six months
ended June 30.
 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses:
 
June 30, 2018
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
10,281

 
$
1,455

 
$
6,709

 
$
1,464

 
$
19,909

Provision for loan losses
 
(337
)
 
100

 
2,469

 
596

 
2,828

Loans charged -off
 
(644
)
 
(474
)
 
(3,226
)
 

 
(4,344
)
Recoveries
 
198

 
301

 
1,179

 

 
1,678

Ending Balance
 
$
9,498

 
$
1,382

 
$
7,131

 
$
2,060

 
$
20,071

 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses:
 
June 30, 2017
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
9,731

 
$
1,553

 
$
5,767

 
$
1,722

 
$
18,773

Provision for loan losses
 
403

 
(180
)
 
2,410

 
3

 
2,636

Loans charged -off
 
(778
)
 
(464
)
 
(3,122
)
 

 
(4,364
)
Recoveries
 
867

 
605

 
1,163

 

 
2,635

Ending Balance
 
$
10,223

 
$
1,514

 
$
6,218

 
$
1,725

 
$
19,680


The following table presents the allocation of the allowance for loan losses and the recorded investment in loans by portfolio segment and based on the impairment method at June 30, 2018 and December 31, 2017
Allowance for Loan Losses
 
June 30, 2018
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
$
231

 
$

 
$

 
$

 
$
231

Collectively evaluated for impairment
 
9,267

 
1,382

 
7,131

 
2,060

 
19,840

Acquired with deteriorated credit quality
 

 

 

 

 

Ending Balance
 
$
9,498

 
$
1,382

 
$
7,131

 
$
2,060

 
$
20,071

 
Loans:
 
June 30, 2018
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
$
7,894

 
$
4,082

 
$

 
 
 
$
11,976

Collectively evaluated for impairment
 
1,134,951

 
439,444

 
346,774

 
 
 
1,921,169

Acquired with deteriorated credit quality
 
1,561

 

 

 
 
 
1,561

Ending Balance
 
$
1,144,406

 
$
443,526

 
$
346,774

 
 
 
$
1,934,706


Allowance for Loan Losses:
 
December 31, 2017
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
619

 
6

 

 

 
625

Collectively evaluated for impairment
 
9,662

 
1,449

 
6,709

 
1,464

 
19,284

Acquired with deteriorated credit quality
 

 

 

 

 

Ending Balance
 
$
10,281

 
$
1,455

 
$
6,709

 
$
1,464

 
$
19,909



9

Table of Contents

Loans
 
December 31, 2017
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
9,619

 
463

 

 
 
 
10,082

Collectively evaluated for impairment
 
1,134,701

 
436,944

 
329,435

 
 
 
1,901,080

Acquired with deteriorated credit quality
 
1,860

 

 

 
 
 
1,860

Ending Balance
 
$
1,146,180

 
$
437,407

 
$
329,435

 
 
 
$
1,913,022


The following tables present loans individually evaluated for impairment by class of loans. 

 
 
 
 
 
 
June 30, 2018
 
 
 
 
 
 
Unpaid
Principal
 
Recorded
 
Allowance
for Loan
Losses
 
Average
Recorded
 
Interest
Income
 
Cash Basis
Interest
(Dollar amounts in thousands)
 
Balance
 
Investment
 
Allocated
 
Investment
 
Recognized
 
Recognized
With no related allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

 Commercial & Industrial
 
$
671

 
$
671

 
$

 
$
749

 
$

 
$

 Farmland
 
930

 
930

 

 
930

 

 

 Non Farm, Non Residential
 
2,329

 
2,329

 

 
2,404

 

 

 Agriculture
 

 

 

 
77

 

 

 All Other Commercial
 
1,170

 
1,170

 

 
1,202

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 
4,004

 
4,004

 

 
2,689

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 
78

 
78

 

 
38

 

 

 Multifamily
 

 

 

 

 

 

 All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

 Motor Vehicle
 

 

 

 

 

 

 All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

 Commercial & Industrial
 
472

 
472

 
139

 
482

 

 

 Farmland
 
2,162

 
2,162

 
43

 
2,748

 

 

 Non Farm, Non Residential
 

 

 

 

 

 

 Agriculture
 
361

 
160

 
49

 
411

 

 

 All Other Commercial
 

 

 

 

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 

 

 

 
147

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 

 

 

 

 

 

 Multifamily
 

 

 

 

 

 

 All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

 Motor Vehicle
 

 

 

 

 

 

 All Other Consumer
 

 

 

 

 

 

TOTAL
 
$
12,177

 
$
11,976

 
$
231

 
$
11,877

 
$

 
$

 

10

Table of Contents




 
 
 
 
 
 
December 31, 2017
 
 
 
 
 
 
Unpaid
Principal
 
Recorded
 
Allowance
for Loan
Losses
 
Average
Recorded
 
Interest
Income
 
Cash Basis
Interest
Income
(Dollar amounts in thousands)
 
Balance
 
Investment
 
Allocated
 
Investment
 
Recognized
 
Recognized
With no related allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

 Commercial & Industrial
 
$
802

 
$
802

 
$

 
$
971

 
$

 
$

 Farmland
 
930

 
930

 

 
1,265

 

 

 Non Farm, Non Residential
 
2,461

 
2,461

 

 
2,781

 

 

 Agriculture
 
123

 
123

 

 
239

 

 

 All Other Commercial
 
1,238

 
1,238

 

 
1,308

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 
21

 
21

 

 
23

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 

 

 

 

 

 

 Multifamily
 

 

 

 

 

 

 All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

 Motor Vehicle
 

 

 

 

 

 

 All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

 Commercial & Industrial
 
493

 
493

 
146

 
514

 

 

 Farmland
 
3,035

 
3,035

 
268

 
669

 

 

 Non Farm, Non Residential
 

 

 

 
131

 


 

 Agriculture
 
738

 
537

 
205

 
279

 

 

 All Other Commercial
 

 

 

 

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 
442

 
442

 
6

 
483

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 

 

 

 

 

 

 Multifamily
 

 

 

 

 

 

 All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

 Motor Vehicle
 

 

 

 

 

 

 All Other Consumer
 

 

 

 

 

 

TOTAL
 
$
10,283

 
$
10,082

 
$
625

 
$
8,663

 
$

 
$

 


11

Table of Contents

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended 
 June 30, 2018
 
Six Months Ended 
 June 30, 2018
 
 
Average
Recorded
 
Interest
Income
 
Cash Basis
Interest Income
 
Average
Recorded
 
Interest
Income
 
Cash Basis
Interest Income
(Dollar amounts in thousands)
 
Investment
 
Recognized
 
Recognized
 
Investment
 
Recognized
 
Recognized
With no related allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

 Commercial & Industrial
 
$
723

 
$

 
$

 
$
749

 
$

 
$

 Farmland
 
930

 

 

 
930

 

 

 Non Farm, Non Residential
 
2,376

 

 

 
2,404

 

 

 Agriculture
 
55

 

 

 
77

 

 

 All Other Commercial
 
1,184

 

 

 
1,202

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 
4,023

 

 

 
2,689

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 
57

 

 

 
38

 

 

 Multifamily
 

 

 

 

 

 

 All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

 Motor Vehicle
 

 

 

 

 

 

 All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

 Commercial & Industrial
 
477

 

 

 
482

 

 

 Farmland
 
2,605

 

 

 
2,748

 

 

 Non Farm, Non Residential
 

 

 

 

 

 

 Agriculture
 
349

 

 

 
411

 

 

 All Other Commercial
 

 

 

 

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 

 

 

 
147

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens