XML 83 R11.htm IDEA: XBRL DOCUMENT v3.20.1
Note C - Loans
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
NOTE C - LOANS:
 
The composition of the loan portfolio at
December 31, 2019
and
2018
is as follows (in thousands):
 
December 31,
  
2019
    
2018
  
                 
Gaming
   $
19,899
     $
25,767
  
                 
Hotel/motel
    
47,294
      
44,112
  
                 
Real estate, construction
    
23,209
      
28,763
  
                 
Real estate, mortgage
    
141,406
      
140,271
  
                 
Commercial and industrial
    
30,626
      
27,505
  
                 
Other
    
6,515
      
6,928
  
                 
Total
   $
268,949
     $
273,346
  
 
In the ordinary course of business, the Company’s bank subsidiary extends loans to certain officers and directors and their personal business interests at, in the opinion of Management, the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans of similar credit risk with persons
not
related to the Company or its subsidiaries. These loans do
not
involve more than normal risk of collectability and do
not
include other unfavorable features.
 
An analysis of the activity with respect to such loans to related parties is as follows (in thousands):
 
   
2019
    
2018
  
Balance, January 1
   $
9,157
     $
6,543
  
January 1 balances, loans of directors appointed during the year
    
 
      
2,142
  
New loans and advances
    
1,174
      
2,272
  
Repayments
    
(1,141
 )    
(1,800
 )
                 
Balance, December 31
   $
9,190
     $
9,157
  
 
As part of its evaluation of the quality of the loan portfolio, Management monitors the Company’s credit concentrations on a monthly basis. Total outstanding concentrations were as follows (in thousands):
 
December 31,
  
2019
    
2018
  
                 
Gaming
   $
19,899
     $
25,767
  
Hotel/motel
    
47,294
      
44,112
  
Out of area
    
13,423
      
15,244
  
 
The age analysis of the loan portfolio, segregated by class of loans, as of
December 31, 2019
and
2018
is as follows (in thousands):
 
                                                   
Loans Past
  
                                                   
Due Greater
  
   
Number of Days Past Due
                            
Than 90
  
     
 
      
 
    
Greater
    
Total
      
 
    
Total
    
Days and
  
   
30
0 -
59
9		    
60
0 -
89
9		    
Than 90
    
Past Due
    
Current
    
Loans
    
Still Accruing
  
December 31, 2019:
                                                        
Gaming
   $
 
     $
 
     $
 
     $
 
     $
19,899
     $
19,899
     $
 
  
Hotel/motel
    
 
      
 
      
 
      
 
      
47,294
      
47,294
      
 
  
Real estate, construction
    
303
      
69
      
14
      
386
      
22,823
      
23,209
      
 
  
Real estate, mortgage
    
4,150
      
343
      
5,580
      
10,073
      
131,333
      
141,406
      
 
  
Commercial and industrial
    
92
      
58
      
218
      
368
      
30,258
      
30,626
      
 
  
Other
    
50
      
12
      
 
      
62
      
6,453
      
6,515
      
 
  
                                                         
Total
   $
4,595
     $
482
     $
5,812
     $
10,889
     $
258,060
     $
268,949
     $
 
  
December 31, 2018:
                                                        
Gaming
   $
 
     $
 
     $
 
     $
 
     $
25,767
     $
25,767
     $
 
  
Hotel/motel
    
 
      
 
      
 
      
 
      
44,112
      
44,112
      
 
  
Real estate, construction
    
1,987
      
340
      
860
      
3,187
      
25,576
      
28,763
      
 
  
Real estate, mortgage
    
2,866
      
7,129
      
1,730
      
11,725
      
128,546
      
140,271
      
51
  
Commercial and industrial
    
9
      
110
      
1,661
      
1,780
      
25,725
      
27,505
      
4
  
Other
    
107
      
3
      
 
      
110
      
6,818
      
6,928
      
 
  
                                                         
Total
   $
4,969
     $
7,582
     $
4,251
     $
16,802
     $
256,544
     $
273,346
     $
55
  
 
The Company monitors the credit quality of its loan portfolio through the use of a loan grading system. A score of
1
–
5
is assigned to the loan based on factors including repayment ability, trends in net worth and/or financial condition of the borrower and guarantors, employment stability, management ability, loan to value fluctuations, the type and structure of the loan, conformity of the loan to bank policy and payment performance. Based on the total score, a loan grade of A, B, C, S, D, E or F is applied. A grade of A will generally be applied to loans for customers that are well known to the Company and that have excellent sources of repayment. A grade of B will generally be applied to loans for customers that have excellent sources of repayment which have
no
identifiable risk of collection. A grade of C will generally be applied to loans for customers that have adequate sources of repayment which have little identifiable risk of collection. A grade of S will generally be applied to loans for customers who meet the criteria for a grade of C but also warrant additional monitoring by placement on the watch list. A grade of D will generally be applied to loans for customers that are inadequately protected by current sound net worth, paying capacity of the borrower, or pledged collateral. Loans with a grade of D have unsatisfactory characteristics such as cash flow deficiencies, bankruptcy filing by the borrower or dependence on the sale of collateral for the primary source of repayment, causing more than acceptable levels of risk. Loans
60
to
89
days past due receive a grade of D. A grade of E will generally be applied to loans for customers with weaknesses inherent in the D classification and in which collection or liquidation in full is questionable. In addition, on a monthly basis the Company determines which loans are
90
days or more past due and assigns a grade of E to them. A grade of F is applied to loans which are considered uncollectible and of such little value that their continuance in an active bank is
not
warranted. Loans with this grade are charged off, even though partial or full recovery
may
be possible in the future.
 
An analysis of the loan portfolio by loan grade, segregated by class of loans, as of
December 31, 2019
and
2018
is as follows (in thousands):
 
   
Loans With A Grade Of:
          
   
A, B or C
    
S
    
D
    
E
    
F
    
Total
  
December 31, 2019:
                                                
Gaming
   $
19,899
     $
 
     $
 
     $
 
     $       $
19,899
  
                                                 
Hotel/motel
    
47,294
      
 
      
 
      
 
              
47,294
  
                                                 
Real estate, construction
    
22,611
      
 
      
83
      
515
              
23,209
  
                                                 
Real estate, mortgage
    
123,841
      
5,338
      
3,608
      
8,619
              
141,406
  
                                                 
Commercial and industrial
    
21,609
      
8,627
      
59
      
331
              
30,626
  
                                                 
Other
    
6,501
      
 
      
12
      
2
              
6,515
  
                                                 
                                                 
Total
   $
241,755
     $
13,965
     $
3,762
     $
9,467
     $       $
268,949
  
                                                 
December 31, 2018:
                                                
Gaming
   $
21,080
     $
 
     $
4,687
     $
 
     $       $
25,767
  
                                                 
Hotel/motel
    
44,112
      
 
      
 
      
 
              
44,112
  
                                                 
Real estate, construction
    
27,096
      
 
      
217
      
1,450
              
28,763
  
                                                 
Real estate, mortgage
    
111,719
      
10,430
      
12,992
      
5,130
              
140,271
  
                                                 
Commercial and industrial
    
25,335
      
 
      
218
      
1,952
              
27,505
  
                                                 
Other
    
6,904
      
 
      
20
      
4
              
6,928
  
                                                 
                                                 
Total
   $
236,246
     $
10,430
     $
18,134
     $
8,536
     $       $
273,346
  
 
A loan
may
be impaired but
not
on nonaccrual status when the loan is well secured and in the process of collection. Total loans on nonaccrual as of
December 31, 2019
and
2018
are as follows (in thousands):
 
December 31,
  
2019
    
2018
  
                 
Real estate, construction
   $
515
     $
1,439
  
                 
Real estate, mortgage
    
8,495
      
4,954
  
                 
Commercial and industrial
    
256
      
1,855
  
                 
Other
    
 
      
2
  
                 
Total
   $
9,266
     $
8,250
  
 
Prior to
2018,
certain loans were modified by granting interest rate concessions to these customers with such loans being classified as troubled debt restructurings. During
2019
and
2018
the Company did
not
restructure any additional loans. Specific reserves of
$63,106
and
$69,000
have been allocated to troubled debt restructurings as of
December 31, 2019
and
2018,
respectively. The Bank had
no
commitments to lend additional amounts to customers with outstanding loans classified as troubled debt restructurings as of
December 31, 2019
and
2018.
 
Impaired loans, which include loans classified as nonaccrual and troubled debt restructurings, segregated by class of loans, as of
December 31, 2019
and
2018
were as follows (in thousands):
 
   
Unpaid
Principal
Balance
    
Recorded
Investment
    
Related
Allowance
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
December 31, 2019:
                                        
With no related allowance recorded:
                                        
Real estate, construction
   $
292
     $
292
     $
 
     $
312
     $
 
  
Real estate, mortgage
    
8,906
      
8,906
      
 
      
9,075
      
29
  
Commercial and industrial
    
217
      
217
      
 
      
217
      
 
  
                                         
Total
    
9,415
      
9,415
      
 
      
9,604
      
29
  
                                         
With a related allowance recorded:
                                        
Real estate, construction
    
223
      
223
      
20
      
230
      
 
  
Real estate, mortgage
    
624
      
624
      
98
      
614
      
27
  
Commercial and industrial
    
39
      
39
      
4
      
41
      
 
  
                                         
Total
    
886
      
886
      
122
      
885
      
27
  
                                         
Total by class of loans:
                                        
Real estate, construction
    
515
      
515
      
20
      
542
      
 
  
Real estate, mortgage
    
9,530
      
9,530
      
98
      
9,689
      
56
  
Commercial and industrial
    
256
      
256
      
4
      
258
      
 
  
                                         
Total
   $
10,301
     $
10,301
     $
122
     $
10,489
     $
56
  
 
   
Unpaid
Principal
Balance
    
Recorded
Investment
    
Related
Allowance
    
Average
Recorded
Investment
    
Interest
Income
Recognized
  
December 31, 2018:
                                        
With no related allowance recorded:
                                        
Real estate, construction
   $
1,171
     $
784
     $
 
     $
785
     $
 
  
Real estate, mortgage
    
5,508
      
5,474
      
 
      
5,826
      
29
  
Commercial and industrial
    
2,083
      
1,855
      
 
      
2,204
      
 
  
Other
    
2
      
2
      
 
      
3
      
 
  
                                         
Total
    
8,764
      
8,115
      
 
      
8,818
      
29
  
                                         
With a related allowance recorded:
                                        
Real estate, construction
    
742
      
655
      
283
      
633
      
 
  
Real estate, mortgage
    
574
      
574
      
101
      
589
      
25
  
                                         
Total
    
1,316
      
1,229
      
384
      
1,222
      
25
  
                                         
Total by class of loans:
                                        
Real estate, construction
    
1,913
      
1,439
      
283
      
1,418
      
 
  
Real estate, mortgage
    
6,082
      
6,048
      
101
      
6,415
      
54
  
Commercial and industrial
    
2,083
      
1,855
      
 
      
2,204
      
 
  
Other
    
2
      
2
      
 
      
3
      
 
  
                                         
Total
   $
10,080
     $
9,344
     $
384
     $
10,040
     $
54
  
 
 
Transactions in the allowance for loan losses for the years ended
December 31, 2019,
2018
and
2017,
and the balances of loans, individually and collectively evaluated for impairment, as of
December 31, 2019,
2018
and
2017
are as follows (in thousands):
 
 
   
Gaming
    
Hotel/Motel
    
Real Estate, Construction
    
Real Estate, Mortgage
    
Commercial and Industrial
    
Other
    
Total
  
December 31, 2019:
                                                        
Allowance for Loan Losses:
                                                        
Beginning Balance
   $
416
     $
1,442
     $
429
     $
2,444
     $
476
     $
133
     $
5,340
  
Charge-offs
    
 
      
 
      
(404
 )    
(63
 )    
(591
 )    
(270
 )    
(1,328
 )
Recoveries
    
 
      
 
      
25
      
4
      
55
      
111
      
195
  
Provision
    
(193
 )    
(663
 )    
52
      
69
      
613
      
122
      
 
  
Ending Balance
   $
223
     $
779
     $
102
     $
2,454
     $
553
     $
96
     $
4,207
  
                                                         
Allowance for Loan Losses:
                                                        
Ending balance: individually evaluated for impairment
   $
 
     $
 
     $
20
     $
180
     $
57
     $
4
     $
261
  
Ending balance: collectively evaluated for impairment
   $
223
     $
779
     $
82
     $
2,274
     $
496
     $
92
     $
3,946
  
                                                         
Total Loans:
                                                        
Ending balance: individually evaluated for impairment
   $
 
     $
 
     $
597
     $
12,228
     $
390
     $
15
     $
13,230
  
Ending balance: collectively evaluated for impairment
   $
19,899
     $
47,294
     $
22,612
     $
129,178
     $
30,236
     $
6,500
     $
255,719
  
 
   
Gaming
    
Hotel/Motel
    
Real Estate, Construction
    
Real Estate, Mortgage
    
Commercial and Industrial
    
Other
    
Total
  
December 31, 2018:
                                                        
Allowance for Loan Losses:
                                                        
Beginning Balance
   $
536
     $
936
     $
242
     $
3,369
     $
892
     $
178
     $
6,153
  
Charge-offs
    
 
      
 
      
 
      
(715
 )    
(372
 )    
(323
 )    
(1,410
 )
Recoveries
    
 
      
 
      
17
      
188
      
112
      
158
      
475
  
Provision
    
(120
 )    
506
      
170
      
(398
 )    
(156
 )    
120
      
122
  
Ending Balance
   $
416
     $
1,442
     $
429
     $
2,444
     $
476
     $
133
     $
5,340
  
                                                         
Allowance for Loan Losses:
                                                        
Ending balance: individually evaluated for impairment
   $
 
     $
 
     $
283
     $
322
     $
120
     $
3
     $
728
  
Ending balance: collectively evaluated for impairment
   $
416
     $
1,442
     $
146
     $
2,122
     $
356
     $
130
     $
4,612
  
                                                         
Total Loans:
                                                        
Ending balance: individually evaluated for impairment
   $
4,687
     $
 
     $
1,667
     $
18,122
     $
2,170
     $
24
     $
26,670
  
Ending balance: collectively evaluated for impairment
   $
21,080
     $
44,112
     $
27,096
     $
122,149
     $
25,335
     $
6,904
     $
246,676
  
 
 
   
Gaming
    
Hotel/Motel
    
Real Estate, Construction
    
Real Estate, Mortgage
    
Commercial and Industrial
    
Other
    
Total
  
December 31, 2017:
                                                        
Allowance for Loan Losses:
                                                        
Beginning Balance
   $
545
     $
957
     $
265
     $
2,843
     $
651
     $
205
     $
5,466
  
Charge-offs
    
 
      
 
      
 
      
(8
 )    
(36
 )    
(235
 )    
(279
 )
Recoveries
    
 
      
 
      
718
      
29
      
11
      
92
      
850
  
Provision
    
(9
 )    
(21
 )    
(741
 )    
505
      
266
      
116
      
116
  
Ending Balance
   $
536
     $
936
     $
242
     $
3,369
     $
892
     $
178
     $
6,153
  
                                                         
Allowance for Loan Losses:
                                                        
Ending balance: individually evaluated for impairment
   $
 
     $
 
     $
145
     $
1,082
     $
636
     $
6
     $
1,869
  
Ending balance: collectively evaluated for impairment
   $
536
     $
936
     $
97
     $
2,287
     $
256
     $
172
     $
4,284
  
                                                         
Total Loans:
                                                        
Ending balance: individually evaluated for impairment
   $
 
     $
4,207
     $
1,799
     $
25,160
     $
3,228
     $
18
     $
34,412
  
Ending balance: collectively evaluated for impairment
   $
26,142
     $
30,675
     $
26,061
     $
133,509
     $
23,132
     $
6,518
     $
246,037