10-Q 1 thff-2015630x10q.htm 10-Q THFF-2015.6.30-10Q
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, 2015
 
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 ¨
 
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 3, 2015, the registrant had outstanding 12,834,116 shares of common stock, without par value.
 



FIRST FINANCIAL CORPORATION
 
FORM 10-Q
 
INDEX 
 
 
Page No.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


2


Part I – Financial Information
Item 1.
Financial Statements
FIRST FINANCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands, except per share data)
 
June 30,
2015
 
December 31,
2014
 
   (unaudited)
ASSETS
 

 
 

Cash and due from banks
$
60,613

 
$
78,102

Federal funds sold
2,000

 
8,000

Securities available-for-sale
901,550

 
897,053

Loans:
 

 
 

Commercial
1,068,832

 
1,044,522

Residential
445,107

 
469,172

Consumer
267,884

 
266,656

 
1,781,823

 
1,780,350

(Less) plus:
 

 
 

Net deferred loan costs
1,965

 
1,078

Allowance for loan losses
(19,861
)
 
(18,839
)
 
1,763,927

 
1,762,589

Restricted stock
10,828

 
16,404

Accrued interest receivable
11,116

 
11,593

Premises and equipment, net
50,348

 
51,802

Bank-owned life insurance
81,568

 
80,730

Goodwill
39,489

 
39,489

Other intangible assets
3,572

 
3,901

Other real estate owned
3,625

 
3,965

Other assets
45,185

 
48,857

TOTAL ASSETS
$
2,973,821

 
$
3,002,485

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

Deposits:
 

 
 

Non-interest-bearing
$
525,851

 
$
556,389

Interest-bearing:
 

 
 

Certificates of deposit exceeding the FDIC insurance limits
48,893

 
53,733

Other interest-bearing deposits
1,823,830

 
1,847,075

 
2,398,574

 
2,457,197

Short-term borrowings
84,819

 
48,015

FHLB advances
10,738

 
12,886

Other liabilities
80,632

 
90,173

TOTAL LIABILITIES
2,574,763

 
2,608,271

 
 
 
 
Shareholders’ equity
 

 
 

Common stock, $.125 stated value per share;
 
 
 
Authorized shares-40,000,000
 
 
 
Issued shares-14,557,815 in 2015 and 14,538,132 in 2014
 
 
 
Outstanding shares-12,834,116 in 2015 and 12,942,175 in 2014
1,816

 
1,815

Additional paid-in capital
72,746

 
72,405

Retained earnings
386,363

 
377,970

Accumulated other comprehensive loss
(14,048
)
 
(14,529
)
Less: Treasury shares at cost-1,723,699 in 2015 and 1,595,957 in 2014
(47,819
)
 
(43,447
)
TOTAL SHAREHOLDERS’ EQUITY
399,058

 
394,214

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
2,973,821

 
$
3,002,485

See accompanying notes. 

3


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,
 
2015
 
2014
 
2015
 
2014
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
INTEREST INCOME:
 

 
 

 
 

 
 

Loans, including related fees
$
20,763

 
$
21,625

 
$
41,570

 
$
43,843

Securities:
 

 
 

 
 

 
 

Taxable
3,991

 
4,298

 
8,052

 
8,742

Tax-exempt
1,790

 
1,766

 
3,569

 
3,512

Other
433

 
426

 
864

 
842

TOTAL INTEREST INCOME
26,977

 
28,115

 
54,055

 
56,939

INTEREST EXPENSE:
 

 
 

 
 

 
 

Deposits
997

 
1,233

 
2,017

 
2,523

Short-term borrowings
19

 
22

 
32

 
36

Other borrowings
37

 
254

 
87

 
632

TOTAL INTEREST EXPENSE
1,053

 
1,509

 
2,136

 
3,191

NET INTEREST INCOME
25,924

 
26,606

 
51,919

 
53,748

Provision for loan losses
1,150

 
(356
)
 
2,600

 
1,604

NET INTEREST INCOME AFTER PROVISION
 

 
 

 
 

 
 

FOR LOAN LOSSES
24,774

 
26,962

 
49,319

 
52,144

NON-INTEREST INCOME:
 

 
 

 
 

 
 

Trust and financial services
1,253

 
1,414

 
2,745

 
2,903

Service charges and fees on deposit accounts
2,543

 
2,761

 
4,869

 
5,245

Other service charges and fees
3,000

 
2,989

 
5,838

 
5,828

Securities gains/(losses), net
10

 
(1
)
 
14

 
(1
)
Insurance commissions
1,956

 
1,852

 
3,509

 
3,765

Gain on sales of mortgage loans
542

 
457

 
901

 
833

Other
474

 
93

 
1,963

 
1,103

TOTAL NON-INTEREST INCOME
9,778

 
9,565

 
19,839

 
19,676

NON-INTEREST EXPENSE:
 

 
 

 
 

 
 

Salaries and employee benefits
15,084

 
13,887

 
30,142

 
27,983

Occupancy expense
1,702

 
1,789

 
3,566

 
3,714

Equipment expense
1,702

 
1,904

 
3,474

 
3,562

FDIC Expense
450

 
473

 
880

 
960

Other
6,372

 
5,996

 
11,241

 
11,535

TOTAL NON-INTEREST EXPENSE
25,310

 
24,049

 
49,303

 
47,754

INCOME BEFORE INCOME TAXES
9,242

 
12,478

 
19,855

 
24,066

Provision for income taxes
2,319

 
3,990

 
5,171

 
7,747

NET INCOME
6,923

 
8,488

 
14,684

 
16,319

OTHER COMPREHENSIVE INCOME
 

 
 

 
 

 
 

Change in unrealized gains/losses on securities, net of reclassifications and taxes
(7,564
)
 
4,116

 
(2,802
)
 
9,419

Change in funded status of post retirement benefits, net of taxes
819

 
115

 
3,283

 
230

COMPREHENSIVE INCOME
$
178

 
$
12,719

 
$
15,165

 
$
25,968

PER SHARE DATA
 

 
 

 
 

 
 

Basic and Diluted Earnings per Share
$
0.54

 
$
0.63

 
$
1.14

 
$
1.22

Weighted average number of shares outstanding (in thousands)
12,903

 
13,355

 
12,925

 
13,352

See accompanying notes.

4


FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Three Months Ended
June 30, 2015, and 2014
(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, 2014
$
1,812

 
$
71,315

 
$
364,914

 
$
(8,551
)
 
$
(30,161
)
 
$
399,329

Net income

 

 
8,488

 

 

 
8,488

Other comprehensive income

 

 

 
4,231

 

 
4,231

Omnibus Equity Incentive Plan

 
242

 

 

 

 
242

Cash dividends, $.49 per share
 
 
 
 
$
(6,544
)
 
 
 
 
 
$
(6,544
)
Balance, June 30, 2014
$
1,812

 
$
71,557

 
$
366,858

 
$
(4,320
)
 
$
(30,161
)
 
$
405,746

 
 
 
 
 
 
 
 
 
 
 
 
Balance, April 1, 2015
$
1,815

 
$
72,576

 
$
385,731

 
$
(7,303
)
 
$
(43,792
)
 
$
409,027

Net income

 

 
6,923

 

 

 
6,923

Other comprehensive income (loss)

 

 

 
(6,745
)
 

 
(6,745
)
Omnibus Equity Incentive Plan
1

 
170

 

 

 

 
171

Treasury shares purchased (118,053 shares)

 

 


 

 
(4,027
)
 
(4,027
)
Cash dividends, $.49 per share
 
 
 
 
$
(6,291
)
 
 
 
 
 
$
(6,291
)
Balance, June 30, 2015
$
1,816

 
$
72,746

 
$
386,363

 
$
(14,048
)
 
$
(47,819
)
 
$
399,058

See accompanying notes.





























5




FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Six Months Ended
June 30, 2015, and 2014
(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, 2014
$
1,811

 
$
71,074

 
$
357,083

 
$
(13,969
)
 
$
(29,804
)
 
$
386,195

Net income

 

 
16,319

 

 

 
16,319

Other comprehensive income

 

 

 
9,649

 

 
9,649

Omnibus Equity Incentive Plan
1

 
483

 

 

 

 
484

Treasury shares purchased (9,776 shares)

 

 

 

 
(357
)
 
(357
)
Cash dividends, $.49 per share

 

 
(6,544
)
 

 

 
(6,544
)
Balance, June 30, 2014
$
1,812

 
$
71,557

 
$
366,858

 
$
(4,320
)
 
$
(30,161
)
 
$
405,746

 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2015
$
1,815

 
$
72,405

 
$
377,970

 
$
(14,529
)
 
$
(43,447
)
 
$
394,214

Net income

 

 
14,684

 

 

 
14,684

Other comprehensive income

 

 

 
481

 

 
481

Omnibus Equity Incentive Plan
1

 
341

 

 

 

 
342

Treasury shares purchased (127,742 shares)

 

 

 


 
(4,372
)
 
(4,372
)
Cash dividends, $.49 per share

 

 
(6,291
)
 

 

 
(6,291
)
Balance, June 30, 2015
$
1,816

 
$
72,746

 
$
386,363

 
$
(14,048
)
 
$
(47,819
)
 
$
399,058

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes.


6


FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands, except per share data)  
 
Six Months Ended 
 June 30,
 
2015
 
2014
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

Net Income
$
14,684

 
$
16,319

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

 
 

Net amortization (accretion) of premiums and discounts on investments
1,472

 
1,318

Provision for loan losses
2,600

 
1,604

Securities (gains) losses
(14
)
 
1

(Gain) loss on sale of other real estate
(117
)
 
62

Restricted stock compensation
342

 
484

Depreciation and amortization
2,810

 
2,943

Other, net
(1,515
)
 
1,394

NET CASH FROM OPERATING ACTIVITIES
20,262

 
24,125

CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

Proceeds from sales of securities available-for-sale
1,900

 
355

Calls, maturities and principal reductions on securities available-for-sale
70,694

 
65,595

Purchases of securities available-for-sale
(82,893
)
 
(50,051
)
Loans made to customers, net of repayment
(4,398
)
 
(5,384
)
Redemption of restricted stock
5,576

 

Purchase of restricted stock

 
(7
)
Purchase of customer list
(103
)
 

Proceeds from sales of other real estate owned
969

 
841

Net change in federal funds sold
6,000

 
(5,094
)
Additions to premises and equipment
(924
)
 
(2,701
)
NET CASH FROM INVESTING ACTIVITIES
(3,179
)
 
3,554

CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

Net change in deposits
(58,662
)
 
(26,004
)
Net change in short-term borrowings
36,804

 
13,828

Maturities of other borrowings
(2,000
)
 
(95,000
)
Proceeds from other borrowings

 
100,000

Purchase of treasury stock
(4,372
)
 
(357
)
Dividends paid
(6,342
)
 
(6,405
)
NET CASH FROM FINANCING ACTIVITIES
(34,572
)
 
(13,938
)
NET CHANGE IN CASH AND CASH EQUIVALENTS
(17,489
)
 
13,741

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD
78,102

 
71,033

CASH AND CASH EQUIVALENTS, END OF PERIOD
$
60,613

 
$
84,774

See accompanying notes.


7


FIRST FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
The accompanying June 30, 2015 and 2014 consolidated financial statements are unaudited. The December 31, 2014 consolidated financial statements are as reported in the First Financial Corporation (the “Corporation”) 2014 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, 2014

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. In 2015 and 2014, 19,683 and 22,019 shares were awarded, respectively. These shares had a grant date value of $667 thousand and $708 thousand for 2015 and 2014, 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, 2015
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
10,818

 
$
1,622

 
$
4,494

 
$
2,417

 
$
19,351

Provision for loan losses
 
160

 
277

 
638

 
75

 
1,150

Loans charged -off
 
(272
)
 
(181
)
 
(1,026
)
 

 
(1,479
)
Recoveries
 
225

 
42

 
572

 

 
839

Ending Balance
 
$
10,931

 
$
1,760

 
$
4,678

 
$
2,492

 
$
19,861



Allowance for Loan Losses:
 
June 30, 2014
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
12,453

 
$
1,581

 
$
3,864

 
$
2,510

 
$
20,408

Provision for loan losses*
 
(1,051
)
 
(54
)
 
533

 
(248
)
 
(820
)
Loans charged -off
 
(710
)
 
(633
)
 
(982
)
 

 
(2,325
)
Recoveries
 
158

 
480

 
354

 

 
992

Ending Balance
 
$
10,850

 
$
1,374

 
$
3,769

 
$
2,262

 
$
18,255


* Provision before increase of $464 thousand in 2014 for decrease in FDIC indemnification asset









8


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, 2015
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
10,915

 
$
1,374

 
$
4,370

 
$
2,180

 
$
18,839

Provision for loan losses
 
167

 
653

 
1,468

 
312

 
2,600

Loans charged -off
 
(608
)
 
(406
)
 
(2,288
)
 

 
(3,302
)
Recoveries
 
457

 
139

 
1,128

 

 
1,724

Ending Balance
 
$
10,931

 
$
1,760

 
$
4,678

 
$
2,492

 
$
19,861



Allowance for Loan Losses:
 
June 30, 2014
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
12,450

 
$
1,585

 
$
3,650

 
$
2,383

 
$
20,068

Provision for loan losses*
 
(319
)
 
12

 
1,333

 
(121
)
 
905

Loans charged -off
 
(1,646
)
 
(805
)
 
(2,035
)
 

 
(4,486
)
Recoveries
 
365

 
582

 
821

 

 
1,768

Ending Balance
 
$
10,850

 
$
1,374

 
$
3,769

 
$
2,262

 
$
18,255


* Provision before increase of $699 thousand in 2014 for decrease in FDIC indemnification asset

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, 2015 and December 31, 2014
Allowance for Loan Losses
 
June 30, 2015
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
$
1,305

 
$
27

 
$

 
$

 
$
1,332

Collectively evaluated for impairment
 
9,411

 
1,733

 
4,678

 
2,492

 
18,314

Acquired with deteriorated credit quality
 
215

 

 

 

 
215

Ending Balance
 
$
10,931

 
$
1,760

 
$
4,678

 
$
2,492

 
$
19,861

 
Loans:
 
June 30, 2015
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
$
15,767

 
$
257

 
$

 
 
 
$
16,024

Collectively evaluated for impairment
 
1,054,233

 
444,548

 
269,039

 
 
 
1,767,820

Acquired with deteriorated credit quality
 
4,291

 
1,604

 

 
 
 
5,895

Ending Balance
 
$
1,074,291

 
$
446,409

 
$
269,039

 
 
 
$
1,789,739


Allowance for Loan Losses:
 
December 31, 2014
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
1,911

 

 

 

 
1,911

Collectively evaluated for impairment
 
8,733

 
1,365

 
4,370

 
2,180

 
16,648

Acquired with deteriorated credit quality
 
271

 
9

 

 

 
280

Ending Balance
 
$
10,915

 
$
1,374

 
$
4,370

 
$
2,180

 
$
18,839



9


Loans
 
December 31, 2014
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
14,573

 
33

 

 
 
 
14,606

Collectively evaluated for impairment
 
1,030,949

 
468,872

 
267,880

 
 
 
1,767,701

Acquired with deteriorated credit quality
 
4,887

 
1,631

 

 
 
 
6,518

Ending Balance
 
$
1,050,409

 
$
470,536

 
$
267,880

 
 
 
$
1,788,825



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

 
 
 
 
 
 
June 30, 2015
 
 
 
 
 
 
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
 
$
6,821

 
$
5,307

 
$

 
$
2,161

 
$

 
$

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 
3,955

 
3,955

 

 
1,318

 

 

Agriculture
 

 

 

 

 

 

All Other Commercial
 
1,793

 
1,793

 

 
780

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
31

 
31

 

 
10

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
2,102

 
1,809

 
294

 
4,900

 

 

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 
2,350

 
2,351

 
919

 
5,162

 

 

Agriculture
 

 

 

 

 

 

All Other Commercial
 
552

 
552

 
92

 
653

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
226

 
226

 
27

 
175

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

TOTAL
 
$
17,830

 
$
16,024

 
$
1,332

 
$
15,159

 
$

 
$


10


 



 
 
 
 
 
 
December 31, 2014
 
 
 
 
 
 
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
 
$
1,200

 
$
926

 
$

 
$
2,589

 
$

 
$

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 

 

 

 
58

 

 

Agriculture
 

 

 

 

 

 

All Other Commercial
 
292

 
292

 

 
58

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 

 

 

 
5

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
7,388

 
5,874

 
1,056

 
6,177

 

 

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 
6,654

 
6,654

 
753

 
6,698

 

 

Agriculture
 

 

 

 

 

 

All Other Commercial
 
827

 
827

 
102

 
1,112

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
33

 
33

 

 
35

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

TOTAL
 
$
16,394

 
$
14,606

 
$
1,911

 
$
16,732

 
$

 
$

 


11


 
 
Three Months Ended 
 June 30, 2015
 
Six Months Ended 
 June 30, 2015
 
 
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
 
$
2,779

 
$

 
$

 
$
2,161

 
$

 
$

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 
1,978

 

 

 
1,318

 

 

Agriculture
 

 

 

 

 

 

All Other Commercial
 
1,025

 

 

 
780

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
16

 

 

 
10

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
4,413

 

 

 
4,900

 

 

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 
4,417

 

 

 
5,162

 

 

Agriculture
 

 

 

 

 

 

All Other Commercial
 
566

 

 

 
653

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
246

 

 

 
175

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer