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Note 4 - Credit Quality | 9 Months Ended
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Sep. 30, 2019
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 tables present the recorded investment of the loan portfolio, by loan class and credit quality, as of the dates indicated. Losses on covered loans are generally reimbursable by the FDIC at the applicable loss share percentage, 80%; therefore, covered loans are disclosed separately.
|  | September 30, 2019 |
|  |  |  |  |  | Special |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Amounts in thousands) |  | Pass |  |  | Mention |  |  | Substandard |  |  | Doubtful |  |  | Loss |  |  | Total |
Non-covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 60,124 |  |  | $ | 574 |  |  | $ | 652 |  |  | $ | - |  |  | $ | - |  |  | $ | 61,350 |
Commercial and industrial |  |  | 90,609 |  |  |  | 1,524 |  |  |  | 1,494 |  |  |  | - |  |  |  | - |  |  |  | 93,627 |
Multi-family residential |  |  | 94,122 |  |  |  | 822 |  |  |  | 1,330 |  |  |  | - |  |  |  | - |  |  |  | 96,274 |
Single family non-owner occupied |  |  | 126,204 |  |  |  | 3,720 |  |  |  | 5,374 |  |  |  | - |  |  |  | - |  |  |  | 135,298 |
Non-farm, non-residential |  |  | 565,732 |  |  |  | 4,687 |  |  |  | 14,478 |  |  |  | - |  |  |  | - |  |  |  | 584,897 |
Agricultural |  |  | 8,862 |  |  |  | 71 |  |  |  | 496 |  |  |  | - |  |  |  | - |  |  |  | 9,429 |
Farmland |  |  | 14,697 |  |  |  | 510 |  |  |  | 1,521 |  |  |  | - |  |  |  | - |  |  |  | 16,728 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 83,844 |  |  |  | 683 |  |  |  | 1,822 |  |  |  | - |  |  |  | - |  |  |  | 86,349 |
Single family owner occupied |  |  | 457,680 |  |  |  | 3,510 |  |  |  | 23,377 |  |  |  | - |  |  |  | - |  |  |  | 484,567 |
Owner occupied construction |  |  | 14,200 |  |  |  | - |  |  |  | 672 |  |  |  | - |  |  |  | - |  |  |  | 14,872 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 91,457 |  |  |  | 3 |  |  |  | 567 |  |  |  | - |  |  |  | - |  |  |  | 92,027 |
Other |  |  | 4,540 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,540 |
Total non-covered loans |  |  | 1,612,071 |  |  |  | 16,104 |  |  |  | 51,783 |  |  |  | - |  |  |  | - |  |  |  | 1,679,958 |
Covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  |  | - |  |  |  | 30 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 30 |
Single family non-owner occupied |  |  | 205 |  |  |  | - |  |  |  | 11 |  |  |  | - |  |  |  | - |  |  |  | 216 |
Non-farm, non-residential |  |  | - |  |  |  | - |  |  |  | 4 |  |  |  | - |  |  |  | - |  |  |  | 4 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 7,625 |  |  |  | 3,047 |  |  |  | 359 |  |  |  | - |  |  |  | - |  |  |  | 11,031 |
Single family owner occupied |  |  | 2,157 |  |  |  | 359 |  |  |  | 361 |  |  |  | - |  |  |  | - |  |  |  | 2,877 |
Total covered loans |  |  | 9,987 |  |  |  | 3,436 |  |  |  | 735 |  |  |  | - |  |  |  | - |  |  |  | 14,158 |
Total loans |  | $ | 1,622,058 |  |  | $ | 19,540 |  |  | $ | 52,518 |  |  | $ | - |  |  | $ | - |  |  | $ | 1,694,116 |
|  | December 31, 2018 |
|  |  |  |  |  | Special |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(Amounts in thousands) |  | Pass |  |  | Mention |  |  | Substandard |  |  | Doubtful |  |  | Loss |  |  | Total |
Non-covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 61,877 |  |  | $ | 661 |  |  | $ | 970 |  |  | $ | - |  |  | $ | - |  |  | $ | 63,508 |
Commercial and industrial |  |  | 102,044 |  |  |  | 2,166 |  |  |  | 653 |  |  |  | - |  |  |  | - |  |  |  | 104,863 |
Multi-family residential |  |  | 104,183 |  |  |  | 1,087 |  |  |  | 1,742 |  |  |  | - |  |  |  | - |  |  |  | 107,012 |
Single family non-owner occupied |  |  | 131,443 |  |  |  | 4,395 |  |  |  | 4,259 |  |  |  | - |  |  |  | - |  |  |  | 140,097 |
Non-farm, non-residential |  |  | 595,659 |  |  |  | 8,166 |  |  |  | 9,906 |  |  |  | 146 |  |  |  | - |  |  |  | 613,877 |
Agricultural |  |  | 8,328 |  |  |  | 131 |  |  |  | 86 |  |  |  | - |  |  |  | - |  |  |  | 8,545 |
Farmland |  |  | 16,898 |  |  |  | 538 |  |  |  | 1,469 |  |  |  | - |  |  |  | - |  |  |  | 18,905 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 91,194 |  |  |  | 649 |  |  |  | 1,623 |  |  |  | - |  |  |  | - |  |  |  | 93,466 |
Single family owner occupied |  |  | 482,794 |  |  |  | 4,355 |  |  |  | 23,814 |  |  |  | - |  |  |  | - |  |  |  | 510,963 |
Owner occupied construction |  |  | 17,872 |  |  |  | - |  |  |  | 299 |  |  |  | - |  |  |  | - |  |  |  | 18,171 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 71,240 |  |  |  | 4 |  |  |  | 308 |  |  |  | - |  |  |  | - |  |  |  | 71,552 |
Other |  |  | 5,310 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,310 |
Total non-covered loans |  |  | 1,688,842 |  |  |  | 22,152 |  |  |  | 45,129 |  |  |  | 146 |  |  |  | - |  |  |  | 1,756,269 |
Covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  |  | - |  |  |  | 35 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 35 |
Single family non-owner occupied |  |  | 223 |  |  |  | - |  |  |  | 15 |  |  |  | - |  |  |  | - |  |  |  | 238 |
Non-farm, non-residential |  |  | - |  |  |  | - |  |  |  | 6 |  |  |  | - |  |  |  | - |  |  |  | 6 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 9,511 |  |  |  | 5,244 |  |  |  | 529 |  |  |  | - |  |  |  | - |  |  |  | 15,284 |
Single family owner occupied |  |  | 2,507 |  |  |  | 355 |  |  |  | 390 |  |  |  | - |  |  |  | - |  |  |  | 3,252 |
Total covered loans |  |  | 12,241 |  |  |  | 5,634 |  |  |  | 940 |  |  |  | - |  |  |  | - |  |  |  | 18,815 |
Total loans |  | $ | 1,701,083 |  |  | $ | 27,786 |  |  | $ | 46,069 |  |  | $ | 146 |  |  | $ | - |  |  | $ | 1,775,084 |
The Company identifies loans for potential impairment through a variety of means, including, but not limited to, ongoing loan review, renewal processes, delinquency data, market communications, and public information. If the Company determines that it is probable all principal and interest amounts contractually due will not be collected, the loan is generally deemed impaired. The following table presents the recorded investment, unpaid principal balance, and related allowance for loan losses for impaired loans, excluding PCI loans, as of the dates indicated:
|  | September 30, 2019 |  |  | December 31, 2018 |
|  |  |  |  |  | Unpaid |  |  |  |  |  |  |  |  |  |  | Unpaid |  |  |  |  |
|  | Recorded |  |  | Principal |  |  | Related |  |  | Recorded |  |  | Principal |  |  | Related |
(Amounts in thousands) |  | Investment |  |  | Balance |  |  | Allowance |  |  | Investment |  |  | Balance |  |  | Allowance |
Impaired loans with no related allowance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 560 |  |  | $ | 776 |  |  | $ | - |  |  | $ | 824 |  |  | $ | 840 |  |  | $ | - |
Commercial and industrial |  |  | 63 |  |  |  | 82 |  |  |  | - |  |  |  | 386 |  |  |  | 416 |  |  |  | - |
Multi-family residential |  |  | 1,255 |  |  |  | 1,662 |  |  |  | - |  |  |  | 1,127 |  |  |  | 1,274 |  |  |  | - |
Single family non-owner occupied |  |  | 2,888 |  |  |  | 3,420 |  |  |  | - |  |  |  | 2,761 |  |  |  | 3,095 |  |  |  | - |
Non-farm, non-residential |  |  | 4,525 |  |  |  | 5,129 |  |  |  | - |  |  |  | 4,154 |  |  |  | 4,494 |  |  |  | - |
Agricultural |  |  | 217 |  |  |  | 224 |  |  |  | - |  |  |  | 86 |  |  |  | 96 |  |  |  | - |
Farmland |  |  | 1,519 |  |  |  | 1,793 |  |  |  | - |  |  |  | 1,464 |  |  |  | 1,547 |  |  |  | - |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 1,436 |  |  |  | 1,551 |  |  |  | - |  |  |  | 1,315 |  |  |  | 1,451 |  |  |  | - |
Single family owner occupied |  |  | 15,990 |  |  |  | 18,170 |  |  |  | - |  |  |  | 15,451 |  |  |  | 18,390 |  |  |  | - |
Owner occupied construction |  |  | 222 |  |  |  | 222 |  |  |  | - |  |  |  | 225 |  |  |  | 225 |  |  |  | - |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 284 |  |  |  | 317 |  |  |  | - |  |  |  | 145 |  |  |  | 156 |  |  |  | - |
Total impaired loans with no allowance |  |  | 28,959 |  |  |  | 33,346 |  |  |  | - |  |  |  | 27,938 |  |  |  | 31,984 |  |  |  | - |
Impaired loans with a related allowance |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial and industrial |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Multi-family residential |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 534 |  |  |  | 536 |  |  |  | 230 |
Single family non-owner occupied |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Non-farm, non-residential |  |  | 1,250 |  |  |  | 1,250 |  |  |  | 301 |  |  |  | 840 |  |  |  | 842 |  |  |  | 235 |
Farmland |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 65 |  |  |  | 68 |  |  |  | 65 |
Single family owner occupied |  |  | 1,251 |  |  |  | 1,251 |  |  |  | 356 |  |  |  | 3,631 |  |  |  | 3,683 |  |  |  | 922 |
Total impaired loans with an allowance |  |  | 2,501 |  |  |  | 2,501 |  |  |  | 657 |  |  |  | 5,070 |  |  |  | 5,129 |  |  |  | 1,452 |
Total impaired loans (1) |  | $ | 31,460 |  |  | $ | 35,847 |  |  | $ | 657 |  |  | $ | 33,008 |  |  | $ | 37,113 |  |  | $ | 1,452 |
( 1 ) | Total impaired loans include loans totaling $25.18 million as of September 30, 2019, and $25.27 million as of December 31, 2018, that do not meet the Company's evaluation threshold for individual impairment and are therefore collectively evaluated for impairment.
The following table presents the average recorded investment and interest income recognized on impaired loans, excluding PCI loans, for the periods indicated:
|  | Three Months Ended September 30, |  |  | Nine Months Ended September 30, |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
(Amounts in thousands) |  | Interest Income Recognized |  |  | Average Recorded Investment |  |  | Interest Income Recognized |  |  | Average Recorded Investment |  |  | Interest Income Recognized |  |  | Average Recorded Investment |  |  | Interest Income Recognized |  |  | Average Recorded Investment |
Impaired loans with no related allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 5 |  |  | $ | 570 |  |  | $ | - |  |  | $ | 910 |  |  | $ | 17 |  |  | $ | 720 |  |  | $ | 14 |  |  | $ | 950 |
Commercial and industrial |  |  | 2 |  |  |  | 66 |  |  |  | 3 |  |  |  | 311 |  |  |  | 7 |  |  |  | 277 |  |  |  | 6 |  |  |  | 378 |
Multi-family residential |  |  | 5 |  |  |  | 1,269 |  |  |  | 5 |  |  |  | 1,402 |  |  |  | 21 |  |  |  | 1,385 |  |  |  | 15 |  |  |  | 832 |
Single family non-owner occupied |  |  | 41 |  |  |  | 2,958 |  |  |  | 8 |  |  |  | 2,529 |  |  |  | 97 |  |  |  | 3,063 |  |  |  | 56 |  |  |  | 2,599 |
Non-farm, non-residential |  |  | 20 |  |  |  | 4,590 |  |  |  | - |  |  |  | 3,926 |  |  |  | 84 |  |  |  | 4,832 |  |  |  | 39 |  |  |  | 5,028 |
Agricultural |  |  | 9 |  |  |  | 223 |  |  |  | - |  |  |  | 103 |  |  |  | 11 |  |  |  | 108 |  |  |  | - |  |  |  | 187 |
Farmland |  |  | 19 |  |  |  | 1,536 |  |  |  | 23 |  |  |  | 1,425 |  |  |  | 45 |  |  |  | 1,474 |  |  |  | 38 |  |  |  | 1,066 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 17 |  |  |  | 1,463 |  |  |  | 3 |  |  |  | 1,514 |  |  |  | 31 |  |  |  | 1,452 |  |  |  | 20 |  |  |  | 1,719 |
Single family owner occupied |  |  | 176 |  |  |  | 16,593 |  |  |  | 15 |  |  |  | 15,832 |  |  |  | 454 |  |  |  | 16,123 |  |  |  | 208 |  |  |  | 15,222 |
Owner occupied construction |  |  | 3 |  |  |  | 224 |  |  |  | - |  |  |  | 229 |  |  |  | 7 |  |  |  | 223 |  |  |  | 6 |  |  |  | 249 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 6 |  |  |  | 319 |  |  |  | - |  |  |  | 210 |  |  |  | 10 |  |  |  | 187 |  |  |  | 6 |  |  |  | 164 |
Total impaired loans with no related allowance |  |  | 303 |  |  |  | 29,811 |  |  |  | 57 |  |  |  | 28,391 |  |  |  | 784 |  |  |  | 29,844 |  |  |  | 408 |  |  |  | 28,394 |
Impaired loans with a related allowance: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Commercial and industrial |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Multi-family residential |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 541 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 271 |
Single family non-owner occupied |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 849 |  |  |  | - |  |  |  | - |  |  |  | 7 |  |  |  | 644 |
Non-farm, non-residential |  |  | 20 |  |  |  | 1,254 |  |  |  | - |  |  |  | - |  |  |  | 28 |  |  |  | 602 |  |  |  | - |  |  |  | 770 |
Farmland |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 413 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 409 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | 67 |  |  |  | - |  |  |  | - |  |  |  | 3 |  |  |  | 69 |
Single family owner occupied |  |  | (30 | ) |  |  | 1,253 |  |  |  | 35 |  |  |  | 4,999 |  |  |  | 35 |  |  |  | 2,177 |  |  |  | 126 |  |  |  | 5,838 |
Owner occupied construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total impaired loans with a related allowance |  |  | (10 | ) |  |  | 2,507 |  |  |  | 36 |  |  |  | 6,869 |  |  |  | 63 |  |  |  | 2,779 |  |  |  | 136 |  |  |  | 8,001 |
Total impaired loans |  | $ | 293 |  |  | $ | 32,318 |  |  | $ | 93 |  |  | $ | 35,260 |  |  | $ | 847 |  |  | $ | 32,623 |  |  | $ | 544 |  |  | $ | 36,395 |
The Company generally places a loan on nonaccrual status when it is 90 days or more past due. PCI loans are generally not classified as nonaccrual due to the accrual of interest income under the accretion method of accounting. The following table presents nonaccrual loans, by loan class, as of the dates indicated:
|  | September 30, 2019 |  |  | December 31, 2018 |
(Amounts in thousands) |  | Non-covered |  |  | Covered |  |  | Total |  |  | Non-covered |  |  | Covered |  |  | Total |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 212 |  |  | $ | - |  |  | $ | 212 |  |  | $ | 413 |  |  | $ | - |  |  | $ | 413 |
Commercial and industrial |  |  | 14 |  |  |  | - |  |  |  | 14 |  |  |  | 428 |  |  |  | - |  |  |  | 428 |
Multi-family residential |  |  | 1,144 |  |  |  | - |  |  |  | 1,144 |  |  |  | 1,395 |  |  |  | - |  |  |  | 1,395 |
Single family non-owner occupied |  |  | 1,463 |  |  |  | 11 |  |  |  | 1,474 |  |  |  | 1,696 |  |  |  | 15 |  |  |  | 1,711 |
Non-farm, non-residential |  |  | 3,753 |  |  |  | - |  |  |  | 3,753 |  |  |  | 4,020 |  |  |  | - |  |  |  | 4,020 |
Agricultural |  |  | 217 |  |  |  | - |  |  |  | 217 |  |  |  | 86 |  |  |  | - |  |  |  | 86 |
Farmland |  |  | 789 |  |  |  | - |  |  |  | 789 |  |  |  | 711 |  |  |  | - |  |  |  | 711 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 657 |  |  |  | 227 |  |  |  | 884 |  |  |  | 614 |  |  |  | 271 |  |  |  | 885 |
Single family owner occupied |  |  | 8,236 |  |  |  | 5 |  |  |  | 8,241 |  |  |  | 10,141 |  |  |  | 36 |  |  |  | 10,177 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 216 |  |  |  | - |  |  |  | 216 |  |  |  | 79 |  |  |  | - |  |  |  | 79 |
Total nonaccrual loans |  | $ | 16,701 |  |  | $ | 243 |  |  | $ | 16,944 |  |  | $ | 19,583 |  |  | $ | 322 |  |  | $ | 19,905 |
The following tables present 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. Loans acquired with credit deterioration, with a discount, continue to accrue interest based on expected cash flows; therefore, PCI loans are not generally considered nonaccrual. Non-covered accruing loans contractually past due 90 days or more totaled $107 thousand as of September 30, 2019, compared to $58 thousand as of December 31, 2018.
|  | September 30, 2019 |
|  | 30 - 59 Days |  |  | 60 - 89 Days |  |  | 90+ Days |  |  | Total |  |  | Current |  |  | Total |
(Amounts in thousands) |  | Past Due |  |  | Past Due |  |  | Past Due |  |  | Past Due |  |  | Loans |  |  | Loans |
Non-covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | - |  |  | $ | - |  |  | $ | 212 |  |  | $ | 212 |  |  | $ | 61,138 |  |  | $ | 61,350 |
Commercial and industrial |  |  | 537 |  |  |  | 792 |  |  |  | - |  |  |  | 1,329 |  |  |  | 92,298 |  |  |  | 93,627 |
Multi-family residential |  |  | - |  |  |  | - |  |  |  | 1,144 |  |  |  | 1,144 |  |  |  | 95,130 |  |  |  | 96,274 |
Single family non-owner occupied |  |  | 848 |  |  |  | 220 |  |  |  | 740 |  |  |  | 1,808 |  |  |  | 133,490 |  |  |  | 135,298 |
Non-farm, non-residential |  |  | 418 |  |  |  | 978 |  |  |  | 2,725 |  |  |  | 4,121 |  |  |  | 580,776 |  |  |  | 584,897 |
Agricultural |  |  | 37 |  |  |  | - |  |  |  | 47 |  |  |  | 84 |  |  |  | 9,345 |  |  |  | 9,429 |
Farmland |  |  | 237 |  |  |  | - |  |  |  | 738 |  |  |  | 975 |  |  |  | 15,753 |  |  |  | 16,728 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 705 |  |  |  | 128 |  |  |  | 500 |  |  |  | 1,333 |  |  |  | 85,016 |  |  |  | 86,349 |
Single family owner occupied |  |  | 3,481 |  |  |  | 1,322 |  |  |  | 3,562 |  |  |  | 8,365 |  |  |  | 476,202 |  |  |  | 484,567 |
Owner occupied construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 14,872 |  |  |  | 14,872 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 1,013 |  |  |  | 147 |  |  |  | 144 |  |  |  | 1,304 |  |  |  | 90,723 |  |  |  | 92,027 |
Other |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4,540 |  |  |  | 4,540 |
Total non-covered loans |  |  | 7,276 |  |  |  | 3,587 |  |  |  | 9,812 |  |  |  | 20,675 |  |  |  | 1,659,283 |  |  |  | 1,679,958 |
Covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 30 |  |  |  | 30 |
Single family non-owner occupied |  |  | 11 |  |  |  | - |  |  |  | - |  |  |  | 11 |  |  |  | 205 |  |  |  | 216 |
Non-farm, non-residential |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 4 |  |  |  | 4 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 476 |  |  |  | 2 |  |  |  | - |  |  |  | 478 |  |  |  | 10,553 |  |  |  | 11,031 |
Single family owner occupied |  |  | - |  |  |  | 27 |  |  |  | - |  |  |  | 27 |  |  |  | 2,850 |  |  |  | 2,877 |
Total covered loans |  |  | 487 |  |  |  | 29 |  |  |  | - |  |  |  | 516 |  |  |  | 13,642 |  |  |  | 14,158 |
Total loans |  | $ | 7,763 |  |  | $ | 3,616 |  |  | $ | 9,812 |  |  | $ | 21,191 |  |  | $ | 1,672,925 |  |  | $ | 1,694,116 |
|  | December 31, 2018 |
|  | 30 - 59 Days |  |  | 60 - 89 Days |  |  | 90+ Days |  |  | Total |  |  | Current |  |  | Total |
(Amounts in thousands) |  | Past Due |  |  | Past Due |  |  | Past Due |  |  | Past Due |  |  | Loans |  |  | Loans |
Non-covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | 111 |  |  | $ | - |  |  | $ | 407 |  |  | $ | 518 |  |  | $ | 62,990 |  |  | $ | 63,508 |
Commercial and industrial |  |  | 306 |  |  |  | - |  |  |  | 262 |  |  |  | 568 |  |  |  | 104,295 |  |  |  | 104,863 |
Multi-family residential |  |  | 113 |  |  |  | - |  |  |  | 1,274 |  |  |  | 1,387 |  |  |  | 105,625 |  |  |  | 107,012 |
Single family non-owner occupied |  |  | 514 |  |  |  | 1,115 |  |  |  | 992 |  |  |  | 2,621 |  |  |  | 137,476 |  |  |  | 140,097 |
Non-farm, non-residential |  |  | 1,332 |  |  |  | 540 |  |  |  | 2,398 |  |  |  | 4,270 |  |  |  | 609,607 |  |  |  | 613,877 |
Agricultural |  |  | 109 |  |  |  | - |  |  |  | - |  |  |  | 109 |  |  |  | 8,436 |  |  |  | 8,545 |
Farmland |  |  | 640 |  |  |  | - |  |  |  | 392 |  |  |  | 1,032 |  |  |  | 17,873 |  |  |  | 18,905 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 408 |  |  |  | 209 |  |  |  | 334 |  |  |  | 951 |  |  |  | 92,515 |  |  |  | 93,466 |
Single family owner occupied |  |  | 5,006 |  |  |  | 3,495 |  |  |  | 4,445 |  |  |  | 12,946 |  |  |  | 498,017 |  |  |  | 510,963 |
Owner occupied construction |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 18,171 |  |  |  | 18,171 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | 507 |  |  |  | 200 |  |  |  | 59 |  |  |  | 766 |  |  |  | 70,786 |  |  |  | 71,552 |
Other |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 5,310 |  |  |  | 5,310 |
Total non-covered loans |  |  | 9,046 |  |  |  | 5,559 |  |  |  | 10,563 |  |  |  | 25,168 |  |  |  | 1,731,101 |  |  |  | 1,756,269 |
Covered loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 35 |  |  |  | 35 |
Single family non-owner occupied |  |  | 15 |  |  |  | - |  |  |  | - |  |  |  | 15 |  |  |  | 223 |  |  |  | 238 |
Non-farm, non-residential |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 6 |  |  |  | 6 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 176 |  |  |  | 38 |  |  |  | 91 |  |  |  | 305 |  |  |  | 14,979 |  |  |  | 15,284 |
Single family owner occupied |  |  | 166 |  |  |  | - |  |  |  | - |  |  |  | 166 |  |  |  | 3,086 |  |  |  | 3,252 |
Total covered loans |  |  | 357 |  |  |  | 38 |  |  |  | 91 |  |  |  | 486 |  |  |  | 18,329 |  |  |  | 18,815 |
Total loans |  | $ | 9,403 |  |  | $ | 5,597 |  |  | $ | 10,654 |  |  | $ | 25,654 |  |  | $ | 1,749,430 |  |  | $ | 1,775,084 |
The Company may make concessions in interest rates, loan terms and/or amortization terms when restructuring loans for borrowers experiencing financial difficulty. Restructured loans in excess of $250 thousand are evaluated for a specific reserve based on either the collateral or net present value method, whichever is most applicable. Restructured loans under $250 thousand are subject to the reserve calculation at the historical loss rate for classified loans. 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. PCI loans are generally not considered TDRs as long as the loans remain in the assigned loan pool. No covered loans were recorded as TDRs as of September 30, 2019, or December 31, 2018. The following table presents loans modified as TDRs, by loan class and accrual status, as of the dates indicated:
|  | September 30, 2019 |  |  | December 31, 2018 |
(Amounts in thousands) |  | Nonaccrual (1) |  |  | Accruing |  |  | Total |  |  | Nonaccrual (1) |  |  | Accruing |  |  | Total |
Commercial loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Construction, development, and other land |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
Single family non-owner occupied |  |  | 556 |  |  |  | 600 |  |  |  | 1,156 |  |  |  | 640 |  |  |  | 309 |  |  |  | 949 |
Non-farm, non-residential |  |  | - |  |  |  | 309 |  |  |  | 309 |  |  |  | - |  |  |  | 314 |  |  |  | 314 |
Consumer real estate loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Home equity lines |  |  | 3 |  |  |  | 116 |  |  |  | 119 |  |  |  | - |  |  |  | 127 |  |  |  | 127 |
Single family owner occupied |  |  | 1,963 |  |  |  | 5,023 |  |  |  | 6,986 |  |  |  | 1,941 |  |  |  | 5,417 |  |  |  | 7,358 |
Owner occupied construction |  |  | - |  |  |  | 222 |  |  |  | 222 |  |  |  | - |  |  |  | 225 |  |  |  | 225 |
Consumer and other loans |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consumer loans |  |  | - |  |  |  | 33 |  |  |  | 33 |  |  |  | - |  |  |  | 35 |  |  |  | 35 |
Total TDRs |  | $ | 2,522 |  |  | $ | 6,303 |  |  | $ | 8,825 |  |  | $ | 2,581 |  |  | $ | 6,427 |  |  | $ | 9,008 |
Allowance for loan losses related to TDRs |  |  |  |  |  |  |  |  |  | $ | 356 |  |  |  |  |  |  |  |  |  |  | $ | 568 |
( 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 September 30, |  |  | Nine Months Ended September 30 |
|  | 2019 |  |  | 2018 |  |  | 2019 |  |  | 2018 |
(Amounts in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest income recognized |  | $ | 56 |  |  | $ | 73 |  |  | $ | 203 |  |  | $ | 207 |
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 September 30, |
|  | 2019 |  |  | 2018 |
(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 |  |  | $ | 11 |  |  | $ | 11 |
Total below market interest rate |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | 11 |  |  |  | 11 |
Payment deferral |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family owner occupied |  |  | 1 |  |  |  | 33 |  |  |  | 29 |  |  |  | - |  |  |  | - |  |  |  | - |
Home equity lines |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total principal deferral |  |  | 1 |  |  |  | 33 |  |  |  | 29 |  |  |  | 0 |  |  |  | - |  |  |  | - |
Total |  |  | 1 |  |  | $ | 33 |  |  | $ | 29 |  |  |  | 1 |  |  | $ | 11 |  |  | $ | 11 |
( 1 ) Represents the loan balance immediately following modification
|  | Nine Months Ended September 30, |
|  | 2019 |  |  | 2018 |
(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 |  |  | $ | 11 |  |  | $ | 11 |
Total below market interest rate |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1 |  |  |  | 11 |  |  |  | 11 |
Below market interest rate and extended payment term |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family owner occupied |  |  | 2 |  |  | $ | 221 |  |  | $ | 218 |  |  |  | 1 |  |  | $ | 41 |  |  | $ | 41 |
Single family non-owner occupied |  |  | 2 |  |  |  | 488 |  |  |  | 480 |  |  |  | - |  |  |  | - |  |  |  | - |
Total below market interest rate and extended payment term |  |  | 4 |  |  |  | 709 |  |  |  | 698 |  |  |  | 1 |  |  |  | 41 |  |  |  | 41 |
Payment deferral |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Single family owner occupied |  |  | 1 |  |  |  | 33 |  |  |  | 29 |  |  |  | - |  |  |  | - |  |  |  | - |
Home equity lines |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |
Total principal deferral |  |  | 1 |  |  |  | 33 |  |  |  | 29 |  |  |  | - |  |  |  | - |  |  |  | - |
Total |  |  | 5 |  |  | $ | 742 |  |  | $ | 727 |  |  |  | 2 |  |  | $ | 52 |  |  | $ | 52 |
( 1 ) Represents the loan balance immediately following modification There were no payment defaults on loans modified as TDRs that were restructured within the previous 12 months as of September 30, 2019 or 2018. The following table provides information about other real estate owned (“OREO”), which consists of properties acquired through foreclosure, as of the dates indicated:
|  | September 30, 2019 |  |  | December 31, 2018 |
(Amounts in thousands) |  |  |  |  |  |  |  |
Non-covered OREO |  | $ | 2,528 |  |  | $ | 3,806 |
Covered OREO |  |  | - |  |  |  | 32 |
Total OREO |  | $ | 2,528 |  |  | $ | 3,838 |
Non-covered OREO secured by residential real estate |  | $ | 1,530 |  |  | $ | 2,303 |
Residential real estate loans in the foreclosure process (1) |  |  | 2,275 |  |  |  | 6,349 |
( 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

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