10-Q 1 thff-2017630x10q.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, 2017
 
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 ¨
Emerging growth company ¨
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.   ¨

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 July 31, 2017, the registrant had outstanding 12,223,750 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,
2017
 
December 31,
2016
 
   (unaudited)
ASSETS
 

 
 

Cash and due from banks
$
55,379

 
$
75,012

Federal funds sold

 
6,952

Securities available-for-sale
851,577

 
853,725

Loans:
 

 
 

Commercial
1,107,658

 
1,106,182

Residential
429,827

 
423,911

Consumer
316,542

 
305,881

 
1,854,027

 
1,835,974

(Less) plus:
 

 
 

Net deferred loan costs
3,003

 
3,206

Allowance for loan losses
(19,680
)
 
(18,773
)
 
1,837,350

 
1,820,407

Restricted stock
10,369

 
10,359

Accrued interest receivable
11,564

 
12,311

Premises and equipment, net
48,296

 
49,240

Bank-owned life insurance
84,343

 
83,737

Goodwill
34,355

 
34,355

Other intangible assets
1,857

 
2,109

Other real estate owned
2,384

 
2,531

Other assets
37,214

 
37,789

TOTAL ASSETS
$
2,974,688

 
$
2,988,527

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

Deposits:
 

 
 

Non-interest-bearing
$
415,945

 
$
564,092

Interest-bearing:
 

 
 

Certificates of deposit exceeding the FDIC insurance limits
42,820

 
43,759

Other interest-bearing deposits
1,968,958

 
1,820,675

 
2,427,723

 
2,428,526

Short-term borrowings
51,880

 
80,989

FHLB advances
132

 
132

Other liabilities
60,499

 
64,485

TOTAL LIABILITIES
2,540,234

 
2,574,132

 
 
 
 
Shareholders’ equity
 

 
 

Common stock, $.125 stated value per share;
 
 
 
Authorized shares-40,000,000
 
 
 
Issued shares-14,595,320 in 2017 and 14,578,758 in 2016
 
 
 
Outstanding shares-12,223,750 in 2017 and 12,216,712 in 2016
1,821

 
1,820

Additional paid-in capital
74,877

 
74,525

Retained earnings
433,435

 
421,826

Accumulated other comprehensive loss
(5,564
)
 
(14,164
)
Less: Treasury shares at cost-2,371,570 in 2017 and 2,362,046 in 2016
(70,115
)
 
(69,612
)
TOTAL SHAREHOLDERS’ EQUITY
434,454

 
414,395

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
2,974,688

 
$
2,988,527

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,
 
2017
 
2016
 
2017
 
2016
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
INTEREST INCOME:
 

 
 

 
 

 
 

Loans, including related fees
$
22,325

 
$
21,271

 
$
44,266

 
$
42,455

Securities:
 

 
 

 
 

 
 

Taxable
3,630

 
3,694

 
7,387

 
7,525

Tax-exempt
1,843

 
1,818

 
3,670

 
3,640

Other
330

 
367

 
651

 
731

TOTAL INTEREST INCOME
28,128

 
27,150

 
55,974

 
54,351

INTEREST EXPENSE:
 

 
 

 
 

 
 

Deposits
1,471

 
1,030

 
2,746

 
2,017

Short-term borrowings
73

 
26

 
117

 
49

Other borrowings
24

 
35

 
44

 
69

TOTAL INTEREST EXPENSE
1,568

 
1,091

 
2,907

 
2,135

NET INTEREST INCOME
26,560

 
26,059

 
53,067

 
52,216

Provision for loan losses
1,040

 
435

 
2,636

 
1,270

NET INTEREST INCOME AFTER PROVISION
 

 
 

 
 

 
 

FOR LOAN LOSSES
25,520

 
25,624

 
50,431

 
50,946

NON-INTEREST INCOME:
 

 
 

 
 

 
 

Trust and financial services
1,149

 
1,292

 
2,466

 
2,626

Service charges and fees on deposit accounts
3,004

 
2,601

 
5,781

 
5,105

Other service charges and fees
3,114

 
3,149

 
6,299

 
6,149

Securities gains/(losses), net
15

 
10

 
17

 
13

Insurance commissions
36

 
33

 
58

 
2,305

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

 

 

 
13,021

Gain on sales of mortgage loans
393

 
481

 
720

 
885

Other
402

 
648

 
3,821

 
476

TOTAL NON-INTEREST INCOME
8,113

 
8,214

 
19,162

 
30,580

NON-INTEREST EXPENSE:
 

 
 

 
 

 
 

Salaries and employee benefits
12,519

 
13,142

 
25,895

 
26,737

Occupancy expense
1,761

 
1,722

 
3,529

 
3,453

Equipment expense
1,835

 
1,808

 
3,632

 
3,645

FDIC Expense
228

 
403

 
461

 
854

Other
5,745

 
5,685

 
11,148

 
11,418

TOTAL NON-INTEREST EXPENSE
22,088

 
22,760

 
44,665

 
46,107

INCOME BEFORE INCOME TAXES
11,545

 
11,078

 
24,928

 
35,419

Provision for income taxes
3,193

 
2,846

 
7,207

 
13,512

NET INCOME
8,352

 
8,232

 
17,721

 
21,907

OTHER COMPREHENSIVE INCOME
 

 
 

 
 

 
 

Change in unrealized gains/(losses) on securities, net of reclassifications and taxes
5,045

 
1,262

 
8,233

 
5,300

Change in funded status of post retirement benefits, net of taxes
184

 
304

 
367

 
608

COMPREHENSIVE INCOME
$
13,581

 
$
9,798

 
$
26,321

 
$
27,815

PER SHARE DATA
 

 
 

 
 

 
 

Basic and Diluted Earnings per Share
$
0.68

 
$
0.68

 
$
1.45

 
$
1.76

Weighted average number of shares outstanding (in thousands)
12,224

 
12,236

 
12,221

 
12,441

See accompanying notes.

4


FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Three Months Ended
June 30, 2017, and 2016
(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, 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, $.49 per share
 
 
 
 
$
(6,117
)
 
 
 
 
 
$
(6,117
)
Balance, June 30, 2016
$
1,818

 
$
73,737

 
$
411,423

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

 
 
 
 
 
 
 
 
 
 
 
 
Balance, April 1, 2017
$
1,820

 
$
74,701

 
$
431,195

 
$
(10,793
)
 
$
(70,115
)
 
$
426,808

Net income

 

 
8,352

 

 

 
8,352

Other comprehensive income

 

 

 
5,229

 

 
5,229

Omnibus Equity Incentive Plan
1

 
176

 

 

 

 
177

Cash dividends, $.49 per share
 
 
 
 
$
(6,112
)
 
 
 
 
 
$
(6,112
)
Balance, June 30, 2017
$
1,821

 
$
74,877

 
$
433,435

 
$
(5,564
)
 
$
(70,115
)
 
$
434,454

See accompanying notes.





5


FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Six Months Ended
June 30, 2017, and 2016
(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, 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, $.49 per share

 

 
(6,117
)
 

 

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

 
$
73,737

 
$
411,423

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

 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2017
$
1,820

 
$
74,525

 
$
421,826

 
$
(14,164
)
 
$
(69,612
)
 
$
414,395

Net income

 

 
17,721

 

 

 
17,721

Other comprehensive income

 

 

 
8,600

 

 
8,600

Omnibus Equity Incentive Plan
1

 
352

 

 

 

 
353

Treasury shares purchased (9,524 shares)

 

 

 

 
(503
)
 
(503
)
Cash dividends, $.49 per share

 

 
(6,112
)
 

 

 
(6,112
)
Balance, June 30, 2017
$
1,821

 
$
74,877

 
$
433,435

 
$
(5,564
)
 
$
(70,115
)
 
$
434,454

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,
 
2017
 
2016
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

Net Income
$
17,721

 
$
21,907

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

 
 

Net amortization (accretion) of premiums and discounts on investments
1,812

 
1,746

Provision for loan losses
2,636

 
1,270

Securities (gains) losses
(17
)
 
(13
)
(Gain) loss on sale of other real estate
36

 
91

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

 
(13,021
)
Restricted stock compensation
353

 
342

Depreciation and amortization
2,274

 
2,514

Other, net
(7,796
)
 
(2,926
)
NET CASH FROM OPERATING ACTIVITIES
17,019

 
11,910

CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

Proceeds from sales of securities available-for-sale
783

 

Calls, maturities and principal reductions on securities available-for-sale
70,087

 
71,998

Purchases of securities available-for-sale
(57,468
)
 
(50,743
)
Loans made to customers, net of repayment
(20,025
)
 
(40,671
)
Purchase of restricted stock
(10
)
 
(10
)
Proceeds from sale of certain assets and liabilities of insurance brokerage operation

 
17,094

Proceeds from sales of other real estate owned
633

 
571

Net change in federal funds sold
6,952

 
4,315

Additions to premises and equipment
(1,078
)
 
(996
)
NET CASH FROM INVESTING ACTIVITIES
(126
)
 
1,558

CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

Net change in deposits
(806
)
 
(48,067
)
Net change in short-term borrowings
(29,109
)
 
28,416

Maturities of other borrowings
(50,000
)
 
(6,050
)
Proceeds from other borrowings
50,000

 
4,350

Purchase of treasury stock
(503
)
 
(19,132
)
Dividends paid
(6,108
)
 
(6,242
)
NET CASH FROM FINANCING ACTIVITIES
(36,526
)
 
(46,725
)
NET CHANGE IN CASH AND CASH EQUIVALENTS
(19,633
)
 
(33,257
)
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD
75,012

 
88,695

CASH AND DUE FROM BANKS, END OF PERIOD
$
55,379

 
$
55,438

See accompanying notes.


7


FIRST FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
The accompanying June 30, 2017 and 2016 consolidated financial statements are unaudited. The December 31, 2016 consolidated financial statements are as reported in the First Financial Corporation (the “Corporation”) 2016 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, 2016

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. At the six months ended 2017 and 2016, 16,562 and 20,943 shares were awarded, respectively. These shares had a grant date value of $773 thousand and $677 thousand for 2017 and 2016, 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, 2017
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
9,377

 
$
1,496

 
$
6,334

 
$
2,188

 
$
19,395

Provision for loan losses
 
917

 
(231
)
 
817

 
(463
)
 
1,040

Loans charged -off
 
(360
)
 
(203
)
 
(1,527
)
 

 
(2,090
)
Recoveries
 
289

 
452

 
594

 

 
1,335

Ending Balance
 
$
10,223

 
$
1,514

 
$
6,218

 
$
1,725

 
$
19,680


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



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, 2017
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
9,731

 
$
1,553

 
$
5,767

 
$
1,722

 
$
18,773

Provision for loan losses
 
403

 
(180
)
 
2,410

 
3

 
2,636

Loans charged -off
 
(778
)
 
(464
)
 
(3,122
)
 

 
(4,364
)
Recoveries
 
867

 
605

 
1,163

 

 
2,635

Ending Balance
 
$
10,223

 
$
1,514

 
$
6,218

 
$
1,725

 
$
19,680

Allowance for Loan Losses:
 
June 30, 2016
 
 
 
 
 
 
 
 
 
 
 
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


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, 2017 and December 31, 2016
Allowance for Loan Losses
 
June 30, 2017
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
$
359

 
$
48

 
$

 
$

 
$
407

Collectively evaluated for impairment
 
9,864

 
1,466

 
6,218

 
1,725

 
19,273

Acquired with deteriorated credit quality
 

 

 

 

 

Ending Balance
 
$
10,223

 
$
1,514

 
$
6,218

 
$
1,725

 
$
19,680

 
Loans:
 
June 30, 2017
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
$
6,865

 
$
506

 
$

 
 
 
$
7,371

Collectively evaluated for impairment
 
1,104,804

 
430,487

 
317,753

 
 
 
1,853,044

Acquired with deteriorated credit quality
 
1,933

 

 

 
 
 
1,933

Ending Balance
 
$
1,113,602

 
$
430,993

 
$
317,753

 
 
 
$
1,862,348


Allowance for Loan Losses:
 
December 31, 2016
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
242

 
89

 

 

 
331

Collectively evaluated for impairment
 
9,489

 
1,464

 
5,767

 
1,722

 
18,442

Acquired with deteriorated credit quality
 

 

 

 

 

Ending Balance
 
$
9,731

 
$
1,553

 
$
5,767

 
$
1,722

 
$
18,773


Loans
 
December 31, 2016
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
8,051

 
549

 

 
 
 
8,600

Collectively evaluated for impairment
 
1,101,269

 
423,099

 
307,226

 
 
 
1,831,594

Acquired with deteriorated credit quality
 
3,415

 
1,431

 

 
 
 
4,846

Ending Balance
 
$
1,112,735

 
$
425,079

 
$
307,226

 
 
 
$
1,845,040



9


In the second quarter of 2017, the Corporation revised its historical loss period from four years to seven years as the Corporation believes the longer period is more appropriate as net charge-offs have been lower in recent years. The impact of this change was not material to the overall allowance for loan losses balance, however the unallocated portion was reduced by the change.

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

 
 
 
 
 
 
June 30, 2017
 
 
 
 
 
 
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
 
$
968

 
$
968

 
$

 
$
1,079

 
$

 
$

Farmland
 
930

 
930

 

 
585

 

 

Non Farm, Non Residential
 
2,773

 
2,773

 

 
2,927

 

 

Agriculture
 

 

 

 
286

 

 

All Other Commercial
 
1,311

 
1,311

 

 
1,339

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
23

 
23

 

 
24

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
513

 
513

 
154

 
525

 

 

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 

 

 

 
219

 

 

Agriculture
 
571

 
370

 
205

 
123

 

 

All Other Commercial
 

 

 

 

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
483

 
483

 
48

 
503

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

TOTAL
 
$
7,572

 
$
7,371

 
$
407

 
$
7,610

 
$

 
$

 




10


 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
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
 
$
1,181

 
$
1,181

 
$

 
$
981

 
$

 
$

Farmland
 
826

 
826

 

 
770

 

 

Non Farm, Non Residential
 
3,368

 
2,996

 

 
3,096

 

 

Agriculture
 
622

 
487

 

 
351

 

 

All Other Commercial
 
1,367

 
1,367

 

 
1,477

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
25

 
25

 

 
27

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
537

 
537

 
36

 
819

 

 

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 
657

 
657

 
206

 
1,016

 


 

Agriculture
 

 

 

 
114

 

 

All Other Commercial
 

 

 

 
45

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
524

 
524

 
89

 
647

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

TOTAL
 
$
9,107

 
$
8,600

 
$
331

 
$
9,343

 
$

 
$

 


11


 
 
Three Months Ended 
 June 30, 2017
 
Six Months Ended 
 June 30, 2017
 
 
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
 
$
1,029

 
$

 
$

 
$
1,079

 
$

 
$

Farmland
 
465

 

 

 
585

 

 

Non Farm, Non Residential
 
2,893

 

 

 
2,927

 

 

Agriculture
 
185

 

 

 
286

 

 

All Other Commercial
 
1,325

 

 

 
1,339

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
24

 

 

 
24

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle
 

 

 

 

 

 

All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

Commercial & Industrial
 
519

 

 

 
525

 

 

Farmland
 

 

 

 

 

 

Non Farm, Non Residential
 

 

 

 
219

 

 

Agriculture
 
185

 

 

 
123

 

 

All Other Commercial
 

 

 

 

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

First Liens
 
493

 

 

 
503

 

 

Home Equity
 

 

 

 

 

 

Junior Liens
 

 

 

 

 

 

Multifamily
 

 

 

 

 

 

All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

Motor Vehicle