10-Q 1 thff-2016930x10q.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 September 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 November 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)
 
September 30,
2016
 
December 31,
2015
 
   (unaudited)
ASSETS
 

 
 

Cash and due from banks
$
67,396

 
$
88,695

Federal funds sold
44,505

 
9,815

Securities available-for-sale
866,701

 
891,082

Loans:
 

 
 

Commercial
1,083,129

 
1,043,980

Residential
430,346

 
444,447

Consumer
304,840

 
272,896

 
1,818,315

 
1,761,323

(Less) plus:
 

 
 

Net deferred loan costs
3,210

 
2,485

Allowance for loan losses
(19,074
)
 
(19,946
)
 
1,802,451

 
1,743,862

Restricted stock
10,848

 
10,838

Accrued interest receivable
12,846

 
11,733

Premises and equipment, net
49,688

 
50,531

Bank-owned life insurance
83,377

 
82,323

Goodwill
34,355

 
39,489

Other intangible assets
2,253

 
3,178

Other real estate owned
2,772

 
3,466

Other assets
42,131

 
44,573

TOTAL ASSETS
$
3,019,323

 
$
2,979,585

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

Deposits:
 

 
 

Non-interest-bearing
$
557,185

 
$
563,302

Interest-bearing:
 

 
 

Certificates of deposit exceeding the FDIC insurance limits
44,778

 
46,753

Other interest-bearing deposits
1,877,278

 
1,832,314

 
2,479,241

 
2,442,369

Short-term borrowings
31,370

 
33,831

FHLB advances
10,132

 
12,677

Other liabilities
76,206

 
80,392

TOTAL LIABILITIES
2,596,949

 
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-12,185,737 in 2016 and 12,740,018 in 2015
1,819

 
1,817

Additional paid-in capital
73,907

 
73,396

Retained earnings
419,585

 
395,633

Accumulated other comprehensive loss
(2,412
)
 
(9,401
)
Less: Treasury shares at cost-2,393,021 in 2016 and 1,817,797 in 2015
(70,525
)
 
(51,129
)
TOTAL SHAREHOLDERS’ EQUITY
422,374

 
410,316

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
3,019,323

 
$
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 
 September 30,
 
Nine Months Ended 
 September 30,
 
2016
 
2015
 
2016
 
2015
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
INTEREST INCOME:
 

 
 

 
 

 
 

Loans, including related fees
$
21,753

 
$
21,478

 
$
64,208

 
$
63,048

Securities:
 

 
 

 
 

 
 

Taxable
3,506

 
3,918

 
11,031

 
11,970

Tax-exempt
1,826

 
1,806

 
5,466

 
5,375

Other
365

 
401

 
1,096

 
1,265

TOTAL INTEREST INCOME
27,450

 
27,603

 
81,801

 
81,658

INTEREST EXPENSE:
 

 
 

 
 

 
 

Deposits
1,016

 
963

 
3,033

 
2,980

Short-term borrowings
51

 
22

 
100

 
54

Other borrowings
32

 
42

 
101

 
129

TOTAL INTEREST EXPENSE
1,099

 
1,027

 
3,234

 
3,163

NET INTEREST INCOME
26,351

 
26,576

 
78,567

 
78,495

Provision for loan losses
1,091

 
1,050

 
2,361

 
3,650

NET INTEREST INCOME AFTER PROVISION
 

 
 

 
 

 
 

FOR LOAN LOSSES
25,260

 
25,526

 
76,206

 
74,845

NON-INTEREST INCOME:
 

 
 

 
 

 
 

Trust and financial services
1,270

 
1,382

 
3,896

 
4,127

Service charges and fees on deposit accounts
2,765

 
2,688

 
7,870

 
7,557

Other service charges and fees
3,062

 
3,080

 
9,211

 
8,918

Securities gains/(losses), net
13

 
9

 
26

 
23

Insurance commissions
35

 
1,693

 
2,340

 
5,202

Gain (loss) on sale of certain assets and liabilities of insurance brokerage operation
(199
)
 

 
12,822

 

Gain on sales of mortgage loans
522

 
611

 
1,407

 
1,512

Other
455

 
488

 
931

 
2,451

TOTAL NON-INTEREST INCOME
7,923

 
9,951

 
38,503

 
29,790

NON-INTEREST EXPENSE:
 

 
 

 
 

 
 

Salaries and employee benefits
12,883

 
14,963

 
39,620

 
45,105

Occupancy expense
1,785

 
1,756

 
5,238

 
5,322

Equipment expense
1,878

 
1,736

 
5,523

 
5,210

FDIC Expense
356

 
468

 
1,210

 
1,348

Other
5,104

 
5,229

 
16,522

 
16,470

TOTAL NON-INTEREST EXPENSE
22,006

 
24,152

 
68,113

 
73,455

INCOME BEFORE INCOME TAXES
11,177

 
11,325

 
46,596

 
31,180

Provision for income taxes
3,015

 
2,927

 
16,527

 
8,098

NET INCOME
8,162

 
8,398

 
30,069

 
23,082

OTHER COMPREHENSIVE INCOME
 

 
 

 
 

 
 

Change in unrealized gains/losses on securities, net of reclassifications and taxes
777

 
4,471

 
6,077

 
1,669

Change in funded status of post retirement benefits, net of taxes
304

 
819

 
912

 
4,102

COMPREHENSIVE INCOME
$
9,243

 
$
13,688

 
$
37,058

 
$
28,853

PER SHARE DATA
 

 
 

 
 

 
 

Basic and Diluted Earnings per Share
$
0.67

 
$
0.65

 
$
2.43

 
$
1.79

Weighted average number of shares outstanding (in thousands)
12,186

 
12,773

 
12,356

 
12,874

See accompanying notes.

4


FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Three Months Ended
September 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, July 1, 2015
$
1,816

 
$
72,746

 
$
386,363

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

Net income

 

 
8,398

 

 

 
8,398

Other comprehensive income

 

 

 
5,290

 

 
5,290

Omnibus Equity Incentive Plan
1

 
170

 

 

 

 
171

Treasury shares purchased (130,247 shares)

 

 
$

 
$

 
(4,326
)
 
(4,326
)
Cash dividends

 

 

 
$

 

 

Balance, September 30, 2015
$
1,817

 
$
72,916

 
$
394,761

 
$
(8,758
)
 
$
(52,145
)
 
$
408,591

 
 
 
 
 
 
 
 
 
 
 
 
Balance, July 1, 2016
$
1,818

 
$
73,737

 
$
411,423

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

Net income

 

 
8,162

 

 

 
8,162

Other comprehensive income

 

 

 
1,081

 

 
1,081

Omnibus Equity Incentive Plan
1

 
170

 

 

 

 
171

Treasury shares purchased (7,444 shares)

 

 

 

 
(264
)
 
(264
)
Cash dividends

 

 

 

 

 

Balance, September 30, 2016
$
1,819

 
$
73,907

 
$
419,585

 
$
(2,412
)
 
$
(70,525
)
 
$
422,374

See accompanying notes.



























5






FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Nine Months Ended
September 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

 

 
23,082

 

 

 
23,082

Other comprehensive income

 

 

 
5,771

 

 
5,771

Omnibus Equity Incentive Plan
2

 
511

 

 

 

 
513

Treasury shares purchased (257,989 shares)

 

 

 

 
(8,698
)
 
(8,698
)
Cash dividends, $.49 per share

 

 
(6,291
)
 

 

 
(6,291
)
Balance, September 30, 2015
$
1,817

 
$
72,916

 
$
394,761

 
$
(8,758
)
 
$
(52,145
)
 
$
408,591

 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2016
$
1,817

 
$
73,396

 
$
395,633

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

Net income

 

 
30,069

 

 

 
30,069

Other comprehensive income

 

 

 
6,989

 

 
6,989

Omnibus Equity Incentive Plan
2

 
511

 

 

 

 
513

Treasury shares purchased (575,224 shares)

 

 

 

 
(19,396
)
 
(19,396
)
Cash dividends, $.50 per share

 

 
(6,117
)
 

 

 
(6,117
)
Balance, September 30, 2016
$
1,819

 
$
73,907

 
$
419,585

 
$
(2,412
)
 
$
(70,525
)
 
$
422,374

See accompanying notes.



6


FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollar amounts in thousands, except per share data)  
 
Nine Months Ended 
 September 30,
 
2016
 
2015
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

Net Income
$
30,069

 
$
23,082

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

 
 

Net amortization (accretion) of premiums and discounts on investments
2,724

 
2,209

Provision for loan losses
2,361

 
3,650

Securities (gains) losses
(26
)
 
(23
)
(Gain) loss on sale of other real estate
89

 
76

Gain on sale of certain assets and liabilities of insurance brokerage operation
(12,822
)
 

Restricted stock compensation
513

 
513

Depreciation and amortization
3,685

 
4,159

Other, net
820

 
(18
)
NET CASH FROM OPERATING ACTIVITIES
27,413

 
33,648

CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

Proceeds from sales of securities available-for-sale

 
3,465

Calls, maturities and principal reductions on securities available-for-sale
114,941

 
110,221

Purchases of securities available-for-sale
(83,544
)
 
(101,766
)
Loans made to customers, net of repayment
(61,262
)
 
11,378

Redemption of restricted stock

 
5,576

Purchase of restricted stock
(10
)
 
(10
)
Purchase of customer list

 
(103
)
Proceeds from sale of certain assets and liabilities of insurance brokerage operation
16,895

 

Proceeds from sales of other real estate owned
1,031

 
1,412

Net change in federal funds sold
(34,690
)
 
8,000

Additions to premises and equipment
(2,358
)
 
(2,562
)
NET CASH FROM INVESTING ACTIVITIES
(48,997
)
 
35,611

CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

Net change in deposits
36,823

 
(38,662
)
Net change in short-term borrowings
(2,461
)
 
(24,679
)
Maturities of other borrowings
(6,672
)
 
(30,212
)
Proceeds from other borrowings
4,350

 
30,800

Purchase of treasury stock
(19,396
)
 
(8,698
)
Dividends paid
(12,359
)
 
(12,632
)
NET CASH FROM FINANCING ACTIVITIES
285

 
(84,083
)
NET CHANGE IN CASH AND CASH EQUIVALENTS
(21,299
)
 
(14,824
)
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD
88,695

 
78,102

CASH AND DUE FROM BANKS, END OF PERIOD
$
67,396

 
$
63,278

See accompanying notes.


7


FIRST FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
The accompanying September 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 September 30. 
Allowance for Loan Losses:
 
September 30, 2016
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
10,244

 
$
1,595

 
$
5,258

 
$
2,407

 
$
19,504

Provision for loan losses
 
571

 
40

 
1,275

 
(795
)
 
1,091

Loans charged -off
 
(1,029
)
 
(211
)
 
(1,484
)
 

 
(2,724
)
Recoveries
 
479

 
154

 
570

 

 
1,203

Ending Balance
 
$
10,265

 
$
1,578

 
$
5,619

 
$
1,612

 
$
19,074


Allowance for Loan Losses:
 
September 30, 2015
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
10,931

 
$
1,760

 
$
4,678

 
$
2,492

 
$
19,861

Provision for loan losses
 
1,338

 
158

 
1,052

 
(1,498
)
 
1,050

Loans charged -off
 
(1,874
)
 
(220
)
 
(1,201
)
 

 
(3,295
)
Recoveries
 
1,694

 
196

 
419

 

 
2,309

Ending Balance
 
$
12,089

 
$
1,894

 
$
4,948

 
$
994

 
$
19,925













8


The following table presents the activity of the allowance for loan losses by portfolio segment for the nine months
ended September 30. 
Allowance for Loan Losses:
 
September 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
 
(520
)
 
143

 
2,811

 
(73
)
 
2,361

Loans charged -off
 
(1,851
)
 
(682
)
 
(3,673
)
 

 
(6,206
)
Recoveries
 
1,154

 
283

 
1,536

 

 
2,973

Ending Balance
 
$
10,265

 
$
1,578

 
$
5,619

 
$
1,612

 
$
19,074

Allowance for Loan Losses:
 
September 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
 
1,505

 
811

 
2,520

 
(1,186
)
 
3,650

Loans charged -off
 
(2,482
)
 
(626
)
 
(3,489
)
 

 
(6,597
)
Recoveries
 
2,151

 
335

 
1,547

 

 
4,033

Ending Balance
 
$
12,089

 
$
1,894

 
$
4,948

 
$
994

 
$
19,925


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 September 30, 2016 and December 31, 2015
Allowance for Loan Losses
 
September 30, 2016
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
$
748

 
$
109

 
$

 
$

 
$
857

Collectively evaluated for impairment
 
9,369

 
1,469

 
5,619

 
1,612

 
18,069

Acquired with deteriorated credit quality
 
148

 

 

 

 
148

Ending Balance
 
$
10,265

 
$
1,578

 
$
5,619

 
$
1,612

 
$
19,074

 
Loans:
 
September 30, 2016
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
$
10,073

 
$
571

 
$

 
 
 
$
10,644

Collectively evaluated for impairment
 
1,076,103

 
429,413

 
306,065

 
 
 
1,811,581

Acquired with deteriorated credit quality
 
3,760

 
1,489

 

 
 
 
5,249

Ending Balance
 
$
1,089,936

 
$
431,473

 
$
306,065

 
 
 
$
1,827,474


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. 

 
 
 
 
 
 
September 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
 
$
1,202

 
$
1,202

 
$

 
$
931

 
$

 
$

Farmland
 
1,560

 
1,561

 

 
757

 

 

Non Farm, Non Residential
 
3,415

 
3,043

 

 
3,121

 

 

Agriculture
 
635

 
635

 

 
318

 

 

All Other Commercial
 
1,395

 
1,395

 

 
1,504

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
26

 
26

 

 
28

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
966

 
966

 
226

 
890

 

 

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 
701

 
701

 
193

 
1,105

 

 

Agriculture
 
635

 
571

 
329

 
143

 

 

All Other Commercial
 

 

 

 
56

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
544

 
544

 
109

 
677

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

TOTAL
 
$
11,079

 
$
10,644

 
$
857

 
$
9,530

 
$

 
$

 




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 
 September 30, 2016
 
Nine Months Ended 
 September 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
 
$
719

 
$

 
$

 
$
931

 
$

 
$

Farmland
 
1,513

 

 

 
757

 

 

Non Farm, Non Residential
 
3,064

 

 

 
3,121

 

 

Agriculture
 
635

 

 

 
318

 

 

All Other Commercial
 
1,410

 

 

 
1,504

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
27

 

 

 
28

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
980

 

 

 
890

 

 

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 
915

 

 

 
1,105

 

 

Agriculture
 
286

 

 

 
143

 

 

All Other Commercial
 

 

 

 
56

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
576

 

 

 
677

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily