Toggle SGML Header (+)


Section 1: 10-Q (10-Q)

Document
Table of Contents

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 September 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 November 5, 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)
 
September 30,
2018
 
December 31,
2017
 
   (unaudited)
ASSETS
 

 
 

Cash and due from banks
$
50,018

 
$
74,107

Federal funds sold
7,600

 

Securities available-for-sale
785,693

 
814,931

Loans:
 

 
 

  Commercial
1,150,536

 
1,139,490

  Residential
443,264

 
436,143

  Consumer
345,132

 
327,976

 
1,938,932

 
1,903,609

(Less) plus:
 

 
 

  Net deferred loan costs
2,848

 
3,152

  Allowance for loan losses
(20,301
)
 
(19,909
)
 
1,921,479

 
1,886,852

Restricted stock
10,390

 
10,379

Accrued interest receivable
14,630

 
12,913

Premises and equipment, net
46,985

 
48,272

Bank-owned life insurance
85,901

 
85,016

Goodwill
34,355

 
34,355

Other intangible assets
1,310

 
1,630

Other real estate owned
520

 
1,880

Other assets
22,054

 
30,333

TOTAL ASSETS
$
2,980,935

 
$
3,000,668

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

Deposits:
 

 
 

  Non-interest-bearing
$
420,337

 
$
425,001

  Interest-bearing:
 

 
 

    Certificates of deposit exceeding the FDIC insurance limits
40,904

 
43,178

    Other interest-bearing deposits
1,945,820

 
1,990,474

 
2,407,061

 
2,458,653

Short-term borrowings
58,680

 
57,686

FHLB advances
35,000

 

Other liabilities
52,420

 
70,760

TOTAL LIABILITIES
2,553,161

 
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
1,824

 
1,822

Additional paid-in capital
76,181

 
75,624

Retained earnings
451,918

 
420,275

Accumulated other comprehensive loss
(32,310
)
 
(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
427,774

 
413,569

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
2,980,935

 
$
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 
 September 30,
 
Nine Months Ended 
 September 30,
 
2018
 
2017
 
2018
 
2017
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
INTEREST INCOME:
 

 
 

 
 

 
 

Loans, including related fees
$
25,581

 
$
23,119

 
$
73,982

 
$
67,385

Securities:
 

 
 

 
 

 
 

Taxable
3,601

 
3,500

 
13,141

 
10,887

Tax-exempt
1,873

 
1,859

 
5,573

 
5,529

Other
320

 
327

 
959

 
978

TOTAL INTEREST INCOME
31,375

 
28,805

 
93,655

 
84,779

INTEREST EXPENSE:
 

 
 

 
 

 
 

Deposits
2,365

 
1,561

 
6,254

 
4,307

Short-term borrowings
167

 
98

 
354

 
215

Other borrowings
16

 
38

 
63

 
82

TOTAL INTEREST EXPENSE
2,548

 
1,697

 
6,671

 
4,604

NET INTEREST INCOME
28,827

 
27,108

 
86,984

 
80,175

Provision for loan losses
1,470

 
1,185

 
4,298

 
3,821

NET INTEREST INCOME AFTER PROVISION
 

 
 

 
 

 
 

FOR LOAN LOSSES
27,357

 
25,923

 
82,686

 
76,354

NON-INTEREST INCOME:
 

 
 

 
 

 
 

Trust and financial services
1,133

 
1,194

 
3,888

 
3,660

Service charges and fees on deposit accounts
3,002

 
3,048

 
8,733

 
8,829

Other service charges and fees
3,256

 
3,070

 
9,747

 
9,369

Securities gains, net
3

 
27

 
5

 
44

Recovery of security previously written down for OTTI

 

 
4,158

 
3,061

Gain on sales of mortgage loans
618

 
535

 
1,458

 
1,255

Other
897

 
666

 
1,984

 
1,484

TOTAL NON-INTEREST INCOME
8,909

 
8,540

 
29,973

 
27,702

NON-INTEREST EXPENSE:
 

 
 

 
 

 
 

Salaries and employee benefits
12,485

 
12,489

 
38,028

 
37,780

Occupancy expense
1,894

 
1,769

 
5,308

 
5,298

Equipment expense
1,673

 
1,792

 
5,016

 
5,424

FDIC Expense
223

 
228

 
673

 
689

Other
6,022

 
6,006

 
19,166

 
17,758

TOTAL NON-INTEREST EXPENSE
22,297

 
22,284

 
68,191

 
66,949

INCOME BEFORE INCOME TAXES
13,969

 
12,179

 
44,468

 
37,107

Provision for income taxes
2,656

 
3,385

 
8,941

 
10,592

NET INCOME
11,313

 
8,794

 
35,527

 
26,515

OTHER COMPREHENSIVE INCOME (LOSS)
 

 
 

 
 

 
 

Change in unrealized gains/(losses) on securities, net of reclassifications and taxes
(3,702
)
 
(51
)
 
(16,083
)
 
8,182

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

 
184

 
843

 
551

COMPREHENSIVE INCOME
$
7,892

 
$
8,927

 
$
20,287

 
$
35,248

PER SHARE DATA
 

 
 

 
 

 
 

Basic and Diluted Earnings per Share
$
0.92

 
$
0.72

 
$
2.90

 
$
2.17

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

 
12,224

 
12,253

 
12,221

See accompanying notes.

4

Table of Contents

FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Three Months Ended
September 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, July 1, 2017
$
1,821

 
$
74,877

 
$
433,435

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

Net income

 

 
8,794

 

 

 
8,794

Other comprehensive income

 

 

 
133

 

 
133

Omnibus Equity Incentive Plan
1

 
176

 

 

 

 
177

Balance, September 30, 2017
$
1,822

 
$
75,053

 
$
442,229

 
$
(5,431
)
 
$
(70,115
)
 
$
443,558

 
 
 
 
 
 
 
 
 
 
 
 
Balance, July 1, 2018
$
1,823

 
$
75,995

 
$
440,605

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

Net income

 

 
11,313

 

 

 
11,313

Other comprehensive loss

 

 

 
(3,421
)
 

 
(3,421
)
Omnibus Equity Incentive Plan
1

 
186

 

 

 

 
187

Balance, September 30, 2018
$
1,824

 
$
76,181

 
$
451,918

 
$
(32,310
)
 
$
(69,839
)
 
$
427,774

See accompanying notes.


























5

Table of Contents

FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Nine Months Ended
September 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

 

 
26,515

 

 

 
26,515

Other comprehensive income

 

 

 
8,733

 

 
8,733

Omnibus Equity Incentive Plan
2

 
528

 

 

 

 
530

Treasury shares purchased (9,524 shares)

 

 

 

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

 

 
(6,112
)
 

 

 
(6,112
)
Balance, September 30, 2017
$
1,822

 
$
75,053

 
$
442,229

 
$
(5,431
)
 
$
(70,115
)
 
$
443,558

 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2018
$
1,822

 
$
75,624

 
$
420,275

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

Net income

 

 
35,527

 

 

 
35,527

Other comprehensive loss

 

 

 
(15,240
)
 

 
(15,240
)
Omnibus Equity Incentive Plan
2

 
557

 

 

 

 
559

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, September 30, 2018
$
1,824

 
$
76,181

 
$
451,918

 
$
(32,310
)
 
$
(69,839
)
 
$
427,774

See accompanying notes.




6

Table of Contents

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

 
 

Net Income
$
35,527

 
$
26,515

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

 
 

Net amortization (accretion) of premiums and discounts on investments
2,706

 
2,799

Provision for loan losses
4,298

 
3,821

Securities (gains)
(5
)
 
(44
)
Loss on sale of other real estate
101

 
61

Recovery of security previously written down for OTTI
(4,158
)
 
(3,061
)
Restricted stock compensation
559

 
530

Depreciation and amortization
3,126

 
3,352

Other, net
(633
)
 
1,857

NET CASH FROM OPERATING ACTIVITIES
41,521

 
35,830

CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

Proceeds from sales of securities available-for-sale

 
9,105

Calls, maturities and principal reductions on securities available-for-sale
112,287

 
106,993

Purchases of securities available-for-sale
(102,731
)
 
(87,528
)
Loans made to customers, net of repayment
(39,119
)
 
(30,771
)
Purchase of restricted stock
(11
)
 
(20
)
Proceeds from sales of other real estate owned
1,568

 
1,314

Net change in federal funds sold
(7,600
)
 
(2,446
)
Additions to premises and equipment
(1,519
)
 
(1,036
)
NET CASH FROM INVESTING ACTIVITIES
(37,125
)
 
(4,389
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

Net change in deposits
(51,592
)
 
24,880

Net change in short-term borrowings
994

 
(57,475
)
Maturities of other borrowings
(55,600
)
 
(170,132
)
Proceeds from other borrowings
90,600

 
170,000

Purchase of treasury stock
(391
)
 
(503
)
Dividends paid
(12,496
)
 
(12,220
)
NET CASH FROM FINANCING ACTIVITIES
(28,485
)
 
(45,450
)
NET CHANGE IN CASH AND CASH EQUIVALENTS
(24,089
)
 
(14,009
)
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD
74,107

 
75,012

CASH AND DUE FROM BANKS, END OF PERIOD
$
50,018

 
$
61,003

See accompanying notes.


7

Table of Contents

FIRST FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
The accompanying September 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 nine 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 September 30. 
Allowance for Loan Losses:
 
September 30, 2018
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
9,498

 
$
1,382

 
$
7,131

 
$
2,060

 
$
20,071

Provision for loan losses
 
(106
)
 
(44
)
 
1,593

 
27

 
1,470

Loans charged -off
 
(409
)
 
(158
)
 
(1,781
)
 

 
(2,348
)
Recoveries
 
354

 
160

 
594

 

 
1,108

Ending Balance
 
$
9,337

 
$
1,340

 
$
7,537

 
$
2,087

 
$
20,301


Allowance for Loan Losses:
 
September 30, 2017
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
10,223

 
$
1,514

 
$
6,218

 
$
1,725

 
$
19,680

Provision for loan losses
 
(227
)
 
14

 
1,415

 
(17
)
 
1,185

Loans charged -off
 
(281
)
 
(100
)
 
(1,583
)
 

 
(1,964
)
Recoveries
 
222

 
91

 
588

 

 
901

Ending Balance
 
$
9,937

 
$
1,519

 
$
6,638

 
$
1,708

 
$
19,802













8

Table of Contents

The following table presents the activity of the allowance for loan losses by portfolio segment for the nine months
ended September 30.
 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses:
 
September 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
 
(443
)
 
56

 
4,062

 
623

 
4,298

Loans charged -off
 
(1,053
)
 
(632
)
 
(5,007
)
 

 
(6,692
)
Recoveries
 
552

 
461

 
1,773

 

 
2,786

Ending Balance
 
$
9,337

 
$
1,340

 
$
7,537

 
$
2,087

 
$
20,301

 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses:
 
September 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
 
176

 
(166
)
 
3,825

 
(14
)
 
3,821

Loans charged -off
 
(1,059
)
 
(564
)
 
(4,705
)
 

 
(6,328
)
Recoveries
 
1,089

 
696

 
1,751

 

 
3,536

Ending Balance
 
$
9,937

 
$
1,519

 
$
6,638

 
$
1,708

 
$
19,802


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 September 30, 2018 and December 31, 2017
Allowance for Loan Losses
 
September 30, 2018
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
$
34

 
$

 
$

 
$

 
$
34

Collectively evaluated for impairment
 
9,303

 
1,340

 
7,537

 
2,087

 
20,267

Acquired with deteriorated credit quality
 

 

 

 

 

Ending Balance
 
$
9,337

 
$
1,340

 
$
7,537

 
$
2,087

 
$
20,301

 
Loans:
 
September 30, 2018
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
$
5,063

 
$
4,372

 
$

 
 
 
$
9,435

Collectively evaluated for impairment
 
1,151,707

 
440,335

 
346,583

 
 
 
1,938,625

Acquired with deteriorated credit quality
 
1,527

 

 

 
 
 
1,527

Ending Balance
 
$
1,158,297

 
$
444,707

 
$
346,583

 
 
 
$
1,949,587


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. 

 
 
 
 
 
 
September 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
 
$
652

 
$
652

 
$

 
$
725

 
$

 
$

 Farmland
 
3,083

 
3,083

 

 
1,468

 

 

 Non Farm, Non Residential
 

 

 

 
1,803

 

 

 Agriculture
 
212

 
12

 

 
61

 

 

 All Other Commercial
 
1,142

 
1,142

 

 
1,187

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 
4,372

 
4,372

 

 
3,110

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 

 

 

 
29

 

 

 Multifamily
 

 

 

 

 

 

 All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

 Motor Vehicle
 

 

 

 

 

 

 All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

 Commercial & Industrial
 
174

 
174

 
34

 
405

 

 

 Farmland
 

 

 

 
2,061

 

 

 Non Farm, Non Residential
 

 

 

 

 

 

 Agriculture
 

 

 

 
309

 

 

 All Other Commercial
 

 

 

 

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 

 

 

 
111

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 

 

 

 

 

 

 Multifamily
 

 

 

 

 

 

 All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

 Motor Vehicle
 

 

 

 

 

 

 All Other Consumer
 

 

 

 

 

 

TOTAL
 
$
9,635

 
$
9,435

 
$
34

 
$
11,269

 
$

 
$

 

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 
 September 30, 2018
 
Nine Months Ended 
 September 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
 
$
662

 
$

 
$

 
$
725

 
$

 
$

 Farmland
 
2,007

 

 

 
1,468

 

 

 Non Farm, Non Residential
 
1,165

 

 

 
1,803

 

 

 Agriculture
 
6

 

 

 
61

 

 

 All Other Commercial
 
1,156

 

 

 
1,187

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 
4,188

 

 

 
3,110

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 
39

 

 

 
29

 

 

 Multifamily
 

 

 

 

 

 

 All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

 Motor Vehicle
 

 

 

 

 

 

 All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

 Commercial & Industrial
 
323

 

 

 
405

 

 

 Farmland
 
1,081

 

 

 
2,061

 

 

 Non Farm, Non Residential
 

 

 

 

 

 

 Agriculture
 
80

 

 

 
309

 

 

 All Other Commercial
 

 

 

 

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 

 

 

 
111

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 

 

 

 

 

 

 Multifamily