PURCHASED ACCOUNTS RECEIVABLE (Notes)

3 Months Ended

Mar. 31, 2016

Accounts Receivable Additional Disclosures [Abstract]

PURCHASED ACCOUNTS RECEIVABLE

PURCHASED ACCOUNTS RECEIVABLE

The Company invests in short-term trade accounts receivable, which are purchased on an exchange, using qualified intermediaries. These receivables have repayment terms of less than one year. Income from purchased accounts receivable, which is recorded in other non-interest income, totaled $168 and $119, respectively, in the three months ended March 31, 2016 and 2015.

Purchased accounts receivable include delinquent short-term receivables of $7,900 at March 31, 2016 that are due from a U.S. bioenergy company that produces ethanol, with the debt guaranteed by its Spanish parent company. The Spanish parent company commenced pre-insolvency proceedings in Spain during November, 2015. An involuntary bankruptcy petition was filed against the U.S. subsidiary in the District of Kansas on February 11, 2016. On February 24, 2016, a related U.S. subsidiary of the Spanish parent company filed a voluntary Chapter 11 bankruptcy petition in the Eastern District of Missouri, along with various affiliates, including the U.S. subsidiary, with joint administration requested. On February 29, 2016, the Kansas case for the U.S. subsidiary was converted to a voluntary Chapter 11 case, with venue transferred to the Eastern District of Missouri on March 1, 2016. On March 10, 2016, the Spanish parent company announced the basis of a debt restructuring agreement that, among other things, will give selected financial creditors of the Spanish parent a controlling stake in the company in return for a 70 percent reduction in the Spanish parent company’s outstanding debt as well as $2,000,000 in additional loans. Under governing law, the parent company needs to present a restructuring plan to a Spanish court to avoid insolvency proceedings. Any such transaction would also require approval of at least 75 percent of creditors. On March 28, 2016, creditors consented to a standstill agreement for seven months to give the company time to complete its restructuring. At this time, management lacks sufficient information to determine the extent of loss on the investment in purchased accounts receivable in the pending bankruptcy case for the U.S. subsidiary. Management similarly lacks sufficient information to determine the extent of recovery possible on the guarantee by the Spanish parent company. There was no contingency accrual related to this potential exposure as of March 31, 2016.