10-Q 1 thff-2016630x10q.htm 10-Q Document

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, 2016
 
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 1, 2016, the registrant had outstanding 12,185,737 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,
2016
 
December 31,
2015
 
   (unaudited)
ASSETS
 

 
 

Cash and due from banks
$
55,438

 
$
88,695

Federal funds sold
5,500

 
9,815

Securities available-for-sale
876,538

 
891,082

Loans:
 

 
 

Commercial
1,082,461

 
1,043,980

Residential
430,082

 
444,447

Consumer
287,308

 
272,896

 
1,799,851

 
1,761,323

(Less) plus:
 

 
 

Net deferred loan costs
2,959

 
2,485

Allowance for loan losses
(19,504
)
 
(19,946
)
 
1,783,306

 
1,743,862

Restricted stock
10,848

 
10,838

Accrued interest receivable
10,869

 
11,733

Premises and equipment, net
49,353

 
50,531

Bank-owned life insurance
83,023

 
82,323

Goodwill
34,355

 
39,489

Other intangible assets
2,397

 
3,178

Other real estate owned
2,837

 
3,466

Other assets
43,552

 
44,573

TOTAL ASSETS
$
2,958,016

 
$
2,979,585

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

Deposits:
 

 
 

Non-interest-bearing
$
527,461

 
$
563,302

Interest-bearing:
 

 
 

Certificates of deposit exceeding the FDIC insurance limits
44,664

 
46,753

Other interest-bearing deposits
1,822,209

 
1,832,314

 
2,394,334

 
2,442,369

Short-term borrowings
62,247

 
33,831

FHLB advances
10,828

 
12,677

Other liabilities
77,383

 
80,392

TOTAL LIABILITIES
2,544,792

 
2,569,269

 
 
 
 
Shareholders’ equity
 

 
 

Common stock, $.125 stated value per share;
 
 
 
Authorized shares-40,000,000
 
 
 
Issued shares-14,578,758 in 2016 and 14,557,815 in 2015
 
 
 
Outstanding shares-12,193,181 in 2016 and 12,740,018 in 2015
1,818

 
1,817

Additional paid-in capital
73,737

 
73,396

Retained earnings
411,423

 
395,633

Accumulated other comprehensive loss
(3,493
)
 
(9,401
)
Less: Treasury shares at cost-2,385,577 in 2016 and 1,817,797 in 2015
(70,261
)
 
(51,129
)
TOTAL SHAREHOLDERS’ EQUITY
413,224

 
410,316

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
2,958,016

 
$
2,979,585

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,
 
2016
 
2015
 
2016
 
2015
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
INTEREST INCOME:
 

 
 

 
 

 
 

Loans, including related fees
$
21,271

 
$
20,763

 
$
42,455

 
$
41,570

Securities:
 

 
 

 
 

 
 

Taxable
3,694

 
3,991

 
7,525

 
8,052

Tax-exempt
1,818

 
1,790

 
3,640

 
3,569

Other
367

 
433

 
731

 
864

TOTAL INTEREST INCOME
27,150

 
26,977

 
54,351

 
54,055

INTEREST EXPENSE:
 

 
 

 
 

 
 

Deposits
1,030

 
997

 
2,017

 
2,017

Short-term borrowings
26

 
19

 
49

 
32

Other borrowings
35

 
37

 
69

 
87

TOTAL INTEREST EXPENSE
1,091

 
1,053

 
2,135

 
2,136

NET INTEREST INCOME
26,059

 
25,924

 
52,216

 
51,919

Provision for loan losses
435

 
1,150

 
1,270

 
2,600

NET INTEREST INCOME AFTER PROVISION
 

 
 

 
 

 
 

FOR LOAN LOSSES
25,624

 
24,774

 
50,946

 
49,319

NON-INTEREST INCOME:
 

 
 

 
 

 
 

Trust and financial services
1,292

 
1,253

 
2,626

 
2,745

Service charges and fees on deposit accounts
2,601

 
2,543

 
5,105

 
4,869

Other service charges and fees
3,149

 
3,000

 
6,149

 
5,838

Securities gains/(losses), net
10

 
10

 
13

 
14

Insurance commissions
33

 
1,956

 
2,305

 
3,509

Gain on sale of certain assets and liabilities of insurance brokerage operation

 

 
13,021

 

Gain on sales of mortgage loans
481

 
542

 
885

 
901

Other
648

 
474

 
476

 
1,963

TOTAL NON-INTEREST INCOME
8,214

 
9,778

 
30,580

 
19,839

NON-INTEREST EXPENSE:
 

 
 

 
 

 
 

Salaries and employee benefits
13,142

 
15,084

 
26,737

 
30,142

Occupancy expense
1,722

 
1,702

 
3,453

 
3,566

Equipment expense
1,808

 
1,702

 
3,645

 
3,474

FDIC Expense
403

 
450

 
854

 
880

Other
5,685

 
6,372

 
11,418

 
11,241

TOTAL NON-INTEREST EXPENSE
22,760

 
25,310

 
46,107

 
49,303

INCOME BEFORE INCOME TAXES
11,078

 
9,242

 
35,419

 
19,855

Provision for income taxes
2,846

 
2,319

 
13,512

 
5,171

NET INCOME
8,232

 
6,923

 
21,907

 
14,684

OTHER COMPREHENSIVE INCOME
 

 
 

 
 

 
 

Change in unrealized gains/losses on securities, net of reclassifications and taxes
1,262

 
(7,564
)
 
5,300

 
(2,802
)
Change in funded status of post retirement benefits, net of taxes
304

 
819

 
608

 
3,283

COMPREHENSIVE INCOME
$
9,798

 
$
178

 
$
27,815

 
$
15,165

PER SHARE DATA
 

 
 

 
 

 
 

Basic and Diluted Earnings per Share
$
0.68

 
$
0.54

 
$
1.76

 
$
1.14

Weighted average number of shares outstanding (in thousands)
12,236

 
12,903

 
12,441

 
12,925

See accompanying notes.

4


FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Three Months Ended
June 30, 2016, and 2015
(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, 2015
$
1,815

 
$
72,576

 
$
385,731

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

Net income

 

 
6,923

 

 

 
6,923

Other comprehensive 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

 
 
 
 
 
 
 
 
 
 
 
 
Balance, April 1, 2016
$
1,818

 
$
73,566

 
$
409,308

 
$
(5,059
)
 
$
(67,721
)
 
$
411,912

Net income

 

 
8,232

 

 

 
8,232

Other comprehensive income

 

 

 
1,566

 

 
1,566

Omnibus Equity Incentive Plan

 
171

 

 

 

 
171

Treasury shares purchased (72,174 shares)

 

 

 

 
(2,540
)
 
(2,540
)
Cash dividends, $.50 per share

 

 
(6,117
)
 

 

 
(6,117
)
Balance, June 30, 2016
$
1,818

 
$
73,737

 
$
411,423

 
$
(3,493
)
 
$
(70,261
)
 
$
413,224

See accompanying notes.



























5






FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Six Months Ended
June 30, 2016, and 2015
(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, 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

 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2016
$
1,817

 
$
73,396

 
$
395,633

 
$
(9,401
)
 
$
(51,129
)
 
$
410,316

Net income

 

 
21,907

 

 

 
21,907

Other comprehensive income

 

 

 
5,908

 

 
5,908

Omnibus Equity Incentive Plan
1

 
341

 

 

 

 
342

Treasury shares purchased (567,780 shares)

 

 

 

 
(19,132
)
 
(19,132
)
Cash dividends, $.50 per share

 

 
(6,117
)
 

 

 
(6,117
)
Balance, June 30, 2016
$
1,818

 
$
73,737

 
$
411,423

 
$
(3,493
)
 
$
(70,261
)
 
$
413,224

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,
 
2016
 
2015
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

Net Income
$
21,907

 
$
14,684

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

 
 

Net amortization (accretion) of premiums and discounts on investments
1,746

 
1,472

Provision for loan losses
1,270

 
2,600

Securities (gains) losses
(13
)
 
(14
)
(Gain) loss on sale of other real estate
91

 
(117
)
Gain on sale of certain assets and liabilities of insurance brokerage operation
(13,021
)
 

Restricted stock compensation
342

 
342

Depreciation and amortization
2,514

 
2,810

Other, net
(2,926
)
 
(1,515
)
NET CASH FROM OPERATING ACTIVITIES
11,910

 
20,262

CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

Proceeds from sales of securities available-for-sale

 
1,900

Calls, maturities and principal reductions on securities available-for-sale
71,998

 
70,694

Purchases of securities available-for-sale
(50,743
)
 
(82,893
)
Loans made to customers, net of repayment
(40,671
)
 
(4,398
)
Redemption of restricted stock

 
5,576

Purchase of restricted stock
(10
)
 

Purchase of customer list

 
(103
)
Proceeds from sale of certain assets and liabilities of insurance brokerage operation
17,094

 

Proceeds from sales of other real estate owned
571

 
969

Net change in federal funds sold
4,315

 
6,000

Additions to premises and equipment
(996
)
 
(924
)
NET CASH FROM INVESTING ACTIVITIES
1,558

 
(3,179
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

Net change in deposits
(48,067
)
 
(58,662
)
Net change in short-term borrowings
28,416

 
36,804

Maturities of other borrowings
(6,050
)
 
(2,000
)
Proceeds from other borrowings
4,350

 

Purchase of treasury stock
(19,132
)
 
(4,372
)
Dividends paid
(6,242
)
 
(6,342
)
NET CASH FROM FINANCING ACTIVITIES
(46,725
)
 
(34,572
)
NET CHANGE IN CASH AND CASH EQUIVALENTS
(33,257
)
 
(17,489
)
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD
88,695

 
78,102

CASH AND DUE FROM BANKS, END OF PERIOD
$
55,438

 
$
60,613

See accompanying notes.


7


FIRST FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
The accompanying June 30, 2016 and 2015 consolidated financial statements are unaudited. The December 31, 2015 consolidated financial statements are as reported in the First Financial Corporation (the “Corporation”) 2015 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, 2015

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 2016 and 2015, 20,943 and 19,683 shares were awarded, respectively. These shares had a grant date value of $677 thousand and $667 thousand for 2016 and 2015, 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, 2016
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
11,168

 
$
1,769

 
$
5,106

 
$
1,883

 
$
19,926

Provision for loan losses
 
(816
)
 
(22
)
 
749

 
524

 
435

Loans charged -off
 
(555
)
 
(232
)
 
(1,055
)
 

 
(1,842
)
Recoveries
 
447

 
80

 
458

 

 
985

Ending Balance
 
$
10,244

 
$
1,595

 
$
5,258

 
$
2,407

 
$
19,504


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













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, 2016
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
11,482

 
$
1,834

 
$
4,945

 
$
1,685

 
$
19,946

Provision for loan losses
 
(1,091
)
 
103

 
1,536

 
722

 
1,270

Loans charged -off
 
(822
)
 
(471
)
 
(2,189
)
 

 
(3,482
)
Recoveries
 
675

 
129

 
966

 

 
1,770

Ending Balance
 
$
10,244

 
$
1,595

 
$
5,258

 
$
2,407

 
$
19,504

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


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, 2016 and December 31, 2015
Allowance for Loan Losses
 
June 30, 2016
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
$
786

 
$
132

 
$

 
$

 
$
918

Collectively evaluated for impairment
 
9,307

 
1,463

 
5,258

 
2,407

 
18,435

Acquired with deteriorated credit quality
 
151

 

 

 

 
151

Ending Balance
 
$
10,244

 
$
1,595

 
$
5,258

 
$
2,407

 
$
19,504

 
Loans:
 
June 30, 2016
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
$
8,967

 
$
635

 
$

 
 
 
$
9,602

Collectively evaluated for impairment
 
1,074,936

 
429,103

 
288,553

 
 
 
1,792,592

Acquired with deteriorated credit quality
 
3,878

 
1,502

 

 
 
 
5,380

Ending Balance
 
$
1,087,781

 
$
431,240

 
$
288,553

 
 
 
$
1,807,574


Allowance for Loan Losses:
 
December 31, 2015
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
953

 
206

 

 

 
1,159

Collectively evaluated for impairment
 
10,342

 
1,628

 
4,945

 
1,685

 
18,600

Acquired with deteriorated credit quality
 
187

 

 

 

 
187

Ending Balance
 
$
11,482

 
$
1,834

 
$
4,945

 
$
1,685

 
$
19,946


Loans
 
December 31, 2015
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
8,823

 
902

 

 
 
 
9,725

Collectively evaluated for impairment
 
1,037,086

 
443,224

 
274,134

 
 
 
1,754,444

Acquired with deteriorated credit quality
 
4,092

 
1,529

 

 
 
 
5,621

Ending Balance
 
$
1,050,001

 
$
445,655

 
$
274,134

 
 
 
$
1,769,790



9


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

 
 
 
 
 
 
June 30, 2016
 
 
 
 
 
 
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
 
$
529

 
$
236

 
$

 
$
841

 
$

 
$

Farmland
 
1,465

 
1,465

 

 
488

 

 

Non Farm, Non Residential
 
3,084

 
3,084

 

 
3,147

 

 

Agriculture
 
635

 
635

 

 
212

 

 

All Other Commercial
 
1,424

 
1,424

 

 
1,540

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
27

 
27

 

 
28

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
994

 
994

 
88

 
864

 

 

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 
1,129

 
1,129

 
698

 
1,240

 

 

Agriculture
 

 

 

 

 

 

All Other Commercial
 

 

 

 
75

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
608

 
608

 
132

 
722

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

TOTAL
 
$
9,895

 
$
9,602

 
$
918

 
$
9,157

 
$

 
$

 




10


 
 
 
 
 
 
December 31, 2015
 
 
 
 
 
 
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
 
$
1,516

 
$
1,223

 
$

 
$
1,796

 
$

 
$

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 
3,202

 
3,202

 

 
2,080

 

 

Agriculture
 

 

 

 

 

 

All Other Commercial
 
1,760

 
1,760

 

 
1,175

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
29

 
29

 

 
18

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
998

 
998

 
212

 
3,463

 

 

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 
1,415

 
1,415

 
741

 
3,682

 

 

Agriculture
 

 

 

 

 

 

All Other Commercial
 
225

 
225

 

 
483

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
873

 
873

 
206

 
460

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

TOTAL
 
$
10,018

 
$
9,725

 
$
1,159

 
$
13,157

 
$

 
$

 


11


 
 
Three Months Ended 
 June 30, 2016
 
Six Months Ended 
 June 30, 2016
 
 
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 & Industrial
 
$
650

 
$

 
$

 
$
841

 
$

 
$

Farmland
 
733

 

 

 
488

 

 

Non Farm, Non Residential
 
3,119

 

 

 
3,147

 

 

Agriculture
 
318

 

 

 
212

 

 

All Other Commercial
 
1,431

 

 

 
1,540

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
28

 

 

 
28

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
797

 

 

 
864

 

 

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 
1,153

 

 

 
1,240

 

 

Agriculture
 

 

 

 

 

 

All Other Commercial
 

 

 

 
75

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
646

 

 

 
722

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily