Note 20 - Concentrations of Credit -

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Concentration Risk Disclosure [Text Block]

Note

20

– Concentrations of Credit –

The majority of the Bank’s business activities are with customers in the Bank’s market area, which consists primarily of East and West Baton Rouge, Bossier, Caddo, St. Tammany, Lafayette, Calcasieu, Terrebonne, Jefferson, Webster, Richland and adjacent parishes, and the Dallas, Texas area. The majority of such customers are depositors of the Bank. The concentrations of credit by type of loan are shown in Note

7.

The Bank, as a matter of policy, does

not

extend credit to any single borrower or group of related borrowers in excess of the Bank’s legal lending limits. Most of the Bank’s credits are to individuals and businesses secured by real estate. A substantial portion of their ability to pay on their debt is dependent on the local economy and industries in the areas.

Within the loan portfolio, the Bank has a concentration of credits secured by real estate. The Bank had extended credit secured by non-farm non-residential real estate totaling approximately

$612.6

million and

$518.7

million, which accounted for

35.8%

and

33.9%

of total loans held for investment at

December 31, 2019

and

2018,

respectively. Additionally, the Bank had extended credit secured by construction and land development totaling approximately

$244.2

million and

$211.1

million, respectively; these loans represented

14.3%

and

13.8%

of total loans held for investment at

December 31, 2019

and

2018,

respectively.

The Bank maintains amounts on deposit and federal funds sold with correspondent banks which

may

periodically exceed the federally insured amount.