Company Quick10K Filing
First Financial
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 12 $492
10-Q 2019-11-07 Quarter: 2019-09-30
10-Q 2019-08-07 Quarter: 2019-06-30
10-Q 2019-05-08 Quarter: 2019-03-31
10-K 2019-03-06 Annual: 2018-12-31
10-Q 2018-11-07 Quarter: 2018-09-30
10-Q 2018-08-08 Quarter: 2018-06-30
10-Q 2018-05-02 Quarter: 2018-03-31
10-K 2018-03-07 Annual: 2017-12-31
10-Q 2017-11-08 Quarter: 2017-09-30
10-Q 2017-08-02 Quarter: 2017-06-30
10-Q 2017-05-05 Quarter: 2017-03-31
10-K 2017-03-09 Annual: 2016-12-31
10-Q 2016-11-04 Quarter: 2016-09-30
10-Q 2016-08-03 Quarter: 2016-06-30
10-Q 2016-05-04 Quarter: 2016-03-31
10-K 2016-03-09 Annual: 2015-12-31
10-Q 2015-11-05 Quarter: 2015-09-30
10-Q 2015-08-05 Quarter: 2015-06-30
10-Q 2015-05-08 Quarter: 2015-03-31
10-K 2015-03-06 Annual: 2014-12-31
10-Q 2014-11-05 Quarter: 2014-09-30
10-Q 2014-08-07 Quarter: 2014-06-30
10-Q 2014-05-09 Quarter: 2014-03-31
10-K 2014-03-14 Annual: 2013-12-31
10-Q 2013-11-06 Quarter: 2013-09-30
10-Q 2013-08-08 Quarter: 2013-06-30
10-Q 2013-05-10 Quarter: 2013-03-31
10-K 2013-03-15 Annual: 2012-12-31
10-Q 2012-11-09 Quarter: 2012-09-30
10-Q 2012-08-09 Quarter: 2012-06-30
10-Q 2012-05-10 Quarter: 2012-03-31
10-K 2012-03-15 Annual: 2011-12-31
10-Q 2011-11-09 Quarter: 2011-09-30
10-Q 2011-08-09 Quarter: 2011-06-30
10-Q 2011-05-09 Quarter: 2011-03-31
10-K 2011-03-15 Annual: 2010-12-31
10-Q 2010-11-04 Quarter: 2010-09-30
10-Q 2010-08-06 Quarter: 2010-06-30
10-Q 2010-05-07 Quarter: 2010-03-31
10-K 2010-03-16 Annual: 2009-12-31
8-K 2019-11-21 Other Events, Exhibits
8-K 2019-10-25 Earnings, Exhibits
8-K 2019-07-27 M&A, Other Events, Exhibits
8-K 2019-07-23 Earnings, Exhibits
8-K 2019-06-13 Other Events, Other Events
8-K 2019-05-22 Other Events, Exhibits
8-K 2019-04-23 Earnings, Exhibits
8-K 2019-04-17 Shareholder Vote
8-K 2019-04-17 Shareholder Vote
8-K 2019-04-03 Officers, Exhibits
8-K 2019-02-05 Code of Ethics, Exhibits
8-K 2019-02-01 Earnings, Exhibits
8-K 2019-01-28 Officers, Exhibits
8-K 2019-01-07 Enter Agreement, Other Events, Exhibits, Enter Agreement
8-K 2018-12-19 Officers
8-K 2018-11-26 Other Events, Exhibits
8-K 2018-10-23 Earnings, Exhibits
8-K 2018-07-24 Earnings, Exhibits
8-K 2018-05-16 Other Events, Exhibits
8-K 2018-04-24 Earnings, Exhibits
8-K 2018-04-18 Shareholder Vote
8-K 2018-04-09 Officers, Exhibits
8-K 2018-04-02 Officers, Exhibits
8-K 2018-02-06 Earnings, Exhibits
THFF 2019-09-30
Part I - Financial Information
Item 1. Financial Statements
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings.
Item 1A. Risk Factors.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities.
Item 4. Mine Safety Disclosures
Item 5. Other Information.
Item 6. Exhibits.
EX-31.1 thff-2019930x10qexx311.htm
EX-31.2 thff-2019930x10qexx312.htm
EX-32.1 thff-2019930x10qexx321.htm

First Financial Earnings 2019-09-30

THFF 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
MBWM 530 3,576 3,176 0 0 45 84 530 6.3 1%
HTBK 528 3,108 2,720 5 0 49 84 252 0% 3.0 2%
FLIC 527 4,202 3,811 2 0 42 92 818 0% 8.9 1%
FCBC 516 2,212 1,878 0 0 38 54 359 6.6 2%
IBCP 509 3,438 3,107 27 0 42 73 454 0% 6.2 1%
MOFG 495 4,662 4,174 0 0 32 79 748 9.4 1%
THFF 492 3,064 2,586 0 0 45 67 431 6.4 1%
MBIN 485 5,287 4,772 0 0 59 153 86 0.6 1%
AROW 479 3,006 2,721 0 0 36 68 416 6.1 1%
FISI 448 4,314 3,892 0 0 41 95 487 5.1 1%

10-Q 1 thff-2019930x10q.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, 2019
 
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 ý  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 ý   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
ý
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 ý.
 
As of November 4, 2019, the registrant had outstanding 13,713,355 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,
2019
 
December 31,
2018
 
   (unaudited)
ASSETS
 

 
 

Cash and due from banks
$
80,193

 
$
74,388

Securities available-for-sale
939,944

 
784,916

Loans:
 

 
 

  Commercial
1,583,002

 
1,166,352

  Residential
708,056

 
443,670

  Consumer
373,747

 
341,041

 
2,664,805

 
1,951,063

(Less) plus:
 

 
 

  Net deferred loan costs
3,671

 
2,925

  Allowance for loan losses
(19,799
)
 
(20,436
)
 
2,648,677

 
1,933,552

Restricted stock
13,624

 
10,390

Accrued interest receivable
18,735

 
13,970

Premises and equipment, net
70,592

 
46,554

Bank-owned life insurance
97,810

 
86,186

Goodwill
75,417

 
34,355

Other intangible assets
11,261

 
1,197

Other real estate owned
3,717

 
603

Other assets
28,149

 
22,607

TOTAL ASSETS
$
3,988,119

 
$
3,008,718

 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 

 
 

Deposits:
 

 
 

  Non-interest-bearing
$
560,537

 
$
431,923

  Interest-bearing:
 

 
 

    Certificates of deposit exceeding the FDIC insurance limits
130,270

 
42,284

    Other interest-bearing deposits
2,529,315

 
1,962,520

 
3,220,122

 
2,436,727

Short-term borrowings
90,852

 
69,656

Other borrowings
55,948

 

Other liabilities
64,615

 
59,634

TOTAL LIABILITIES
3,431,537

 
2,566,017

 
 
 
 
Shareholders’ equity
 

 
 

Common stock, $.125 stated value per share;
 
 
 
Authorized shares-40,000,000
 
 
 
Issued shares-16,055,466 in 2019 and 14,612,540 in 2018
 
 
 
Outstanding shares-13,713,355 in 2019 and 12,278,295 in 2018
2,004

 
1,824

Additional paid-in capital
139,073

 
76,774

Retained earnings
484,834

 
456,716

Accumulated other comprehensive income/(loss)
145

 
(23,454
)
Less: Treasury shares at cost-2,342,111 in 2019 and 2,334,245 in 2018
(69,474
)
 
(69,159
)
TOTAL SHAREHOLDERS’ EQUITY
556,582

 
442,701

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
$
3,988,119

 
$
3,008,718

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,
 
2019
 
2018
 
2019
 
2018
 
(unaudited)
 
(unaudited)
 
(unaudited)
 
(unaudited)
INTEREST INCOME:
 

 
 

 
 

 
 

Loans, including related fees
$
33,363

 
$
25,581

 
$
87,650

 
$
73,982

Securities:
 

 
 

 
 

 
 

Taxable
3,907

 
3,601

 
11,104

 
13,141

Tax-exempt
1,959

 
1,873

 
5,699

 
5,573

Other
366

 
320

 
1,017

 
959

TOTAL INTEREST INCOME
39,595

 
31,375

 
105,470

 
93,655

INTEREST EXPENSE:
 

 
 

 
 

 
 

Deposits
5,069

 
2,365

 
11,202

 
6,254

Short-term borrowings
305

 
167

 
786

 
354

Other borrowings
222

 
16

 
305

 
63

TOTAL INTEREST EXPENSE
5,596

 
2,548

 
12,293

 
6,671

NET INTEREST INCOME
33,999

 
28,827

 
93,177

 
86,984

Provision for loan losses
1,500

 
1,470

 
3,200

 
4,298

NET INTEREST INCOME AFTER PROVISION
 

 
 

 
 

 
 

FOR LOAN LOSSES
32,499

 
27,357

 
89,977

 
82,686

NON-INTEREST INCOME:
 

 
 

 
 

 
 

Trust and financial services
1,329

 
1,133

 
3,657

 
3,888

Service charges and fees on deposit accounts
3,227

 
3,002

 
8,586

 
8,733

Other service charges and fees
3,720

 
3,256

 
10,242

 
9,747

Securities gains, net
6

 
3

 
18

 
5

Recovery of security previously written down for OTTI

 

 

 
4,158

Gain on sales of mortgage loans
865

 
618

 
1,781

 
1,458

Other
599

 
897

 
2,841

 
1,984

TOTAL NON-INTEREST INCOME
9,746

 
8,909

 
27,125

 
29,973

NON-INTEREST EXPENSE:
 

 
 

 
 

 
 

Salaries and employee benefits
14,031

 
12,485

 
39,332

 
38,028

Occupancy expense
1,804

 
1,894

 
5,432

 
5,308

Equipment expense
2,117

 
1,673

 
5,685

 
5,016

FDIC Expense
155

 
223

 
494

 
673

Other
9,302

 
6,022

 
23,651

 
19,166

TOTAL NON-INTEREST EXPENSE
27,409

 
22,297

 
74,594

 
68,191

INCOME BEFORE INCOME TAXES
14,836

 
13,969

 
42,508

 
44,468

Provision for income taxes
2,579

 
2,656

 
8,000

 
8,941

NET INCOME
12,257

 
11,313

 
34,508

 
35,527

OTHER COMPREHENSIVE INCOME (LOSS)
 

 
 

 
 

 
 

Change in unrealized gains/(losses) on securities, net of reclassifications and taxes
4,124

 
(3,702
)
 
22,689

 
(16,083
)
Change in funded status of post retirement benefits, net of taxes
303

 
281

 
910

 
843

COMPREHENSIVE INCOME
$
16,684

 
$
7,892

 
$
58,107

 
$
20,287

PER SHARE DATA
 

 
 

 
 

 
 

Basic and Diluted Earnings per Share
$
0.93

 
$
0.92

 
$
2.74

 
$
2.90

Weighted average number of shares outstanding (in thousands)
13,141

 
12,255

 
12,574

 
12,253

See accompanying notes.

4


FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Three Months Ended
September 30, 2019, and 2018
(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, 2018
$
1,823

 
$
75,995

 
$
440,605

 
$
(28,889
)
 
$
(69,839
)
 
$
419,695

Net income

 

 
11,313

 

 

 
11,313

Other comprehensive loss

 

 

 
(3,421
)
 

 
(3,421
)
Omnibus Equity Incentive Plan
1

 
186

 

 

 

 
187

Balance, September 30, 2018
$
1,824

 
$
76,181

 
$
451,918

 
$
(32,310
)
 
$
(69,839
)
 
$
427,774

 
 
 
 
 
 
 
 
 
 
 
 
Balance, July 1, 2019
$
1,826

 
$
77,173

 
$
472,577

 
$
(4,282
)
 
$
(69,474
)
 
$
477,820

Net income

 

 
12,257

 

 

 
12,257

Other comprehensive income

 

 

 
4,427

 

 
4,427

Omnibus Equity Incentive Plan

 
200

 

 

 

 
200

Acquisition of HopFed, Inc. (1,423,143 shares)
178

 
61,700

 

 

 

 
61,878

Balance, September 30, 2019
$
2,004

 
$
139,073

 
$
484,834

 
$
145

 
$
(69,474
)
 
$
556,582

See accompanying notes.




























5



FIRST FINANCIAL CORPORATION
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Nine Months Ended
September 30, 2019, and 2018
(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, 2018
$
1,822

 
$
75,624

 
$
420,275

 
$
(14,704
)
 
$
(69,448
)
 
$
413,569

Net income

 

 
35,527

 

 

 
35,527

Other comprehensive loss

 

 

 
(15,240
)
 

 
(15,240
)
Omnibus Equity Incentive Plan
2

 
557

 

 

 

 
559

Treasury shares purchased (8,639 shares)

 

 

 

 
(391
)
 
(391
)
ASU 2018-02 adjustment

 

 
2,366

 
(2,366
)
 

 

Cash dividends, $.51 per share

 

 
(6,250
)
 

 

 
(6,250
)
Balance, September 30, 2018
$
1,824

 
$
76,181

 
$
451,918

 
$
(32,310
)
 
$
(69,839
)
 
$
427,774

 
 
 
 
 
 
 
 
 
 
 
 
Balance, January 1, 2019
$
1,824

 
$
76,774

 
$
456,716

 
$
(23,454
)
 
$
(69,159
)
 
$
442,701

Net income

 

 
34,508

 

 

 
34,508

Other comprehensive income

 

 

 
23,599

 

 
23,599

Omnibus Equity Incentive Plan
2

 
599

 

 

 

 
601

Treasury shares purchased (7,866 shares)

 

 

 

 
(315
)
 
(315
)
Acquisition of HopFed, Inc. (1,423,143 shares)
178

 
61,700

 

 

 

 
61,878

Cash dividends, $.52 per share

 

 
(6,390
)
 

 

 
(6,390
)
Balance, September 30, 2019
$
2,004

 
$
139,073

 
$
484,834

 
$
145

 
$
(69,474
)
 
$
556,582

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,
 
2019
 
2018
 
(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
 

 
 

Net Income
$
34,508

 
$
35,527

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

 
 

Net amortization (accretion) of premiums and discounts on investments
3,425

 
2,706

Provision for loan losses
3,200

 
4,298

Securities (gains)
(18
)
 
(5
)
(Gain) Loss on sale of other real estate
37

 
101

Recovery of security previously written down for OTTI

 
(4,158
)
Restricted stock compensation
601

 
559

Depreciation and amortization
3,121

 
3,126

Other, net
(5,734
)
 
(633
)
NET CASH FROM OPERATING ACTIVITIES
39,140

 
41,521

CASH FLOWS FROM INVESTING ACTIVITIES:
 

 
 

Calls, maturities and principal reductions on securities available-for-sale
117,532

 
112,287

Purchases of securities available-for-sale
(71,596
)
 
(102,731
)
Loans made to customers, net of repayment
(61,496
)
 
(39,119
)
Redemption of restricted stock
1,228

 

Purchase of restricted stock
(34
)
 
(11
)
Payments to acquire business
(12,629
)
 

Proceeds from sales of other real estate owned
671

 
1,568

Net change in federal funds sold

 
(7,600
)
Additions to premises and equipment
(1,537
)
 
(1,519
)
NET CASH FROM INVESTING ACTIVITIES
(27,861
)
 
(37,125
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 

 
 

Net change in deposits
26,903

 
(51,592
)
Net change in short-term borrowings
(44,414
)
 
994

Maturities of other borrowings
(192,000
)
 
(55,600
)
Proceeds from other borrowings
217,000

 
90,600

Purchase of treasury stock
(315
)
 
(391
)
Dividends paid
(12,648
)
 
(12,496
)
NET CASH FROM FINANCING ACTIVITIES
(5,474
)
 
(28,485
)
NET CHANGE IN CASH AND CASH EQUIVALENTS
5,805

 
(24,089
)
CASH AND DUE FROM BANKS, BEGINNING OF PERIOD
74,388

 
74,107

CASH AND DUE FROM BANKS, END OF PERIOD
$
80,193

 
$
50,018

See accompanying notes.


7


FIRST FINANCIAL CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
The accompanying September 30, 2019 and 2018 consolidated financial statements are unaudited. The December 31, 2018 consolidated financial statements are as reported in the First Financial Corporation (the “Corporation”) 2018 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, 2018

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. For the six months ended 2019 and 2018, 19,783 and 17,220 shares were awarded, respectively. These shares had a grant date value of $841 thousand and $784 thousand for 2019 and 2018, 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, 2019
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
9,481

 
$
1,323

 
$
7,744

 
$
1,702

 
$
20,250

Provision for loan losses
 
163

 
(10
)
 
1,691

 
(344
)
 
1,500

Loans charged -off
 
(864
)
 
(256
)
 
(2,082
)
 

 
(3,202
)
Recoveries
 
226

 
266

 
759

 

 
1,251

Ending Balance
 
$
9,006

 
$
1,323

 
$
8,112

 
$
1,358

 
$
19,799


Allowance for Loan Losses:
 
September 30, 2018
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
9,498

 
$
1,382

 
$
7,131

 
$
2,060

 
$
20,071

Provision for loan losses
 
(106
)
 
(44
)
 
1,593

 
27

 
1,470

Loans charged -off
 
(409
)
 
(158
)
 
(1,781
)
 

 
(2,348
)
Recoveries
 
354

 
160

 
594

 

 
1,108

Ending Balance
 
$
9,337

 
$
1,340

 
$
7,537

 
$
2,087

 
$
20,301













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, 2019
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
9,848

 
$
1,313

 
$
7,481

 
$
1,794

 
$
20,436

Provision for loan losses
 
5

 
145

 
3,486

 
(436
)
 
3,200

Loans charged -off
 
(1,523
)
 
(675
)
 
(5,019
)
 

 
(7,217
)
Recoveries
 
676

 
540

 
2,164

 

 
3,380

Ending Balance
 
$
9,006

 
$
1,323

 
$
8,112

 
$
1,358

 
$
19,799

 
 
 
 
 
 
 
 
 
 
 
Allowance for Loan Losses:
 
September 30, 2018
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Beginning balance
 
$
10,281

 
$
1,455

 
$
6,709

 
$
1,464

 
$
19,909

Provision for loan losses
 
(443
)
 
56

 
4,062

 
623

 
4,298

Loans charged -off
 
(1,053
)
 
(632
)
 
(5,007
)
 

 
(6,692
)
Recoveries
 
552

 
461

 
1,773

 

 
2,786

Ending Balance
 
$
9,337

 
$
1,340

 
$
7,537

 
$
2,087

 
$
20,301


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, 2019 and December 31, 2018
Allowance for Loan Losses
 
September 30, 2019
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
$
33

 
$

 
$

 
$

 
$
33

Collectively evaluated for impairment
 
8,973

 
1,323

 
8,112

 
1,358

 
19,766

Acquired with deteriorated credit quality
 

 

 

 

 

Ending Balance
 
$
9,006

 
$
1,323

 
$
8,112

 
$
1,358

 
$
19,799

 
Loans:
 
September 30, 2019
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
$
3,415

 
$
3,664

 
$

 
 
 
$
7,079

Collectively evaluated for impairment
 
1,577,863

 
705,586

 
375,303

 
 
 
2,658,752

Acquired with deteriorated credit quality
 
10,000

 
260

 

 
 
 
10,260

Ending Balance
 
$
1,591,278

 
$
709,510

 
$
375,303

 
 
 
$
2,676,091


Allowance for Loan Losses:
 
December 31, 2018
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
Unallocated
 
Total
Individually evaluated for impairment
 
737

 

 

 

 
737

Collectively evaluated for impairment
 
9,111

 
1,313

 
7,481

 
1,794

 
19,699

Acquired with deteriorated credit quality
 

 

 

 

 

Ending Balance
 
$
9,848

 
$
1,313

 
$
7,481

 
$
1,794

 
$
20,436

Loans
 
December 31, 2018
(Dollar amounts in thousands)
 
Commercial
 
Residential
 
Consumer
 
 
 
Total
Individually evaluated for impairment
 
6,101

 
4,415

 

 
 
 
10,516

Collectively evaluated for impairment
 
1,166,227

 
440,497

 
342,473

 
 
 
1,949,197

Acquired with deteriorated credit quality
 
1,495

 

 

 
 
 
1,495

Ending Balance
 
$
1,173,823

 
$
444,912

 
$
342,473

 
 
 
$
1,961,208


9


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

 
 
 
 
 
 
September 30, 2019
 
 
 
 
 
 
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
 
$
1,752

 
$
1,222

 
$

 
$
813

 
$

 
$

 Farmland
 
2,011

 
2,011

 

 
1,999

 

 

 Non Farm, Non Residential
 

 

 

 

 

 

 Agriculture
 

 

 

 

 

 

 All Other Commercial
 
29

 
29

 

 
570

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 
3,664

 
3,664

 

 
4,080

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 

 

 

 

 

 

 Multifamily
 

 

 

 

 

 

 All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

 Motor Vehicle
 

 

 

 

 

 

 All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

 Commercial & Industrial
 
153

 
153

 
33

 
1,349

 

 

 Farmland
 

 

 

 
105

 

 

 Non Farm, Non Residential
 

 

 

 

 

 

 Agriculture
 

 

 

 
173

 

 

 All Other Commercial
 

 

 

 

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 

 

 

 

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 

 

 

 

 

 

 Multifamily
 

 

 

 

 

 

 All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

 Motor Vehicle
 

 

 

 

 

 

 All Other Consumer
 

 

 

 

 

 

TOTAL
 
$
7,609

 
$
7,079

 
$
33

 
$
9,089

 
$

 
$

 




10


 
 
 
 
 
 
December 31, 2018
 
 
 
 
 
 
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
 
$
589

 
$
589

 
$

 
$
698

 
$

 
$

 Farmland
 
2,022

 
2,022

 

 
1,579

 

 

 Non Farm, Non Residential
 

 

 

 
1,443

 

 

 Agriculture
 

 

 

 
49

 

 

 All Other Commercial
 
1,114

 
1,114

 

 
1,172

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 
4,415

 
4,415

 

 
3,371

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 

 

 

 
23

 

 

 Multifamily
 

 

 

 

 

 

 All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

 Motor Vehicle
 

 

 

 

 

 

 All Other Consumer
 

 

 

 

 

 

With an allowance recorded:
 
 

 
 

 
 

 
 

 
 

 
 

Commercial
 
 

 
 

 
 

 
 

 
 

 
 

 Commercial & Industrial
 
1,819

 
1,819

 
593

 
688

 

 

 Farmland
 
211

 
211

 
44

 
1,691

 

 

 Non Farm, Non Residential
 

 

 

 

 


 

 Agriculture
 
346

 
346

 
100

 
316

 

 

 All Other Commercial
 

 

 

 

 

 

Residential
 
 

 
 

 
 

 
 

 
 

 
 

 First Liens
 

 

 

 
88

 

 

 Home Equity
 

 

 

 

 

 

 Junior Liens
 

 

 

 

 

 

 Multifamily
 

 

 

 

 

 

 All Other Residential
 

 

 

 

 

 

Consumer
 
 

 
 

 
 

 
 

 
 

 
 

 Motor Vehicle
 

 

 

 

 

 

 All Other Consumer
 

 

 

 

 

 

TOTAL
 
$
10,516

 
$
10,516

 
$
737

 
$
11,118

 
$

 
$

 


11


 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended 
 September 30, 2019
 
Nine Months Ended 
 September 30, 2019
 
 
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
 
$
904

 
$

 
$

 
$
813

 
$

 
$

 Farmland
 
2,011

 

 

 
1,999

 

 

 Non Farm, Non Residential
 

 

 

 

 

 

 Agriculture
 

 

 

 

 

 

 All Other Commercial
 
29

 

 

 
570

 

 

Residential