Annual Report 2017 | Page 26

Credit Quality and Delinquency
We utilize the FCA Uniform Classification System to categorize loans into five credit quality categories . The categories are :
� Acceptable – loans are non-criticized loans representing the highest quality . They are expected to be fully collectible . This category is further differentiated into various probabilities of default .
� Other assets especially mentioned ( Special Mention ) – are currently collectible but exhibit some potential weakness . These loans involve increased credit risk , but not to the point of justifying a substandard classification . � Substandard – loans exhibit some serious weakness in repayment capacity , equity , and / or collateral pledged on the loan . � Doubtful – loans exhibit similar weaknesses as substandard loans . Doubtful loans have additional weaknesses in existing factors , conditions , and values that make collection in full highly questionable . � Loss – loans are considered uncollectible .
We had no loans categorized as loss at December 31 , 2017 , 2016 , or 2015 .
Credit Quality of Loans
Substandard /
( dollars in thousands )
Acceptable
Special Mention
Doubtful
Total
As of December 31 , 2017
Amount
%
Amount
%
Amount
%
Amount
%
Real estate mortgage
$ 2,051,451
95.4 %
$ 41,025
1.9 %
$ 58,691
2.7 %
$ 2,151,167
100.0 %
Production and intermediate term
669,611
87.3 %
63,232
8.2 %
34,637
4.5 %
767,480
100.0 %
Agribusiness
742,748
98.6 %
3,901
0.5 %
6,910
0.9 %
753,559
100.0 %
Other
187,570
99.9 %
--
0.0 %
112
0.1 %
187,682
100.0 %
Total
$ 3,651,380
94.6 %
$ 108,158
2.8 %
$ 100,350
2.6 %
$ 3,859,888
100.0 %
Substandard /
Acceptable
Special Mention
Doubtful
Total
As of December 31 , 2016
Amount
%
Amount
%
Amount
%
Amount
%
Real estate mortgage
$ 1,968,280
94.0 %
$ 75,085
3.6 %
$ 49,723
2.4 %
$ 2,093,088
100.0 %
Production and intermediate term
661,525
85.7 %
79,728
10.3 %
30,952
4.0 %
772,205
100.0 %
Agribusiness
635,438
98.3 %
3,193
0.5 %
7,621
1.2 %
646,252
100.0 %
Other
184,623
99.9 %
--
0.0 %
245
0.1 %
184,868
100.0 %
Total
$ 3,449,866
93.3 %
$ 158,006
4.3 %
$ 88,541
2.4 %
$ 3,696,413
100.0 %
Substandard /
Acceptable
Special Mention
Doubtful
Total
As of December 31 , 2015
Amount
%
Amount
%
Amount
%
Amount
%
Real estate mortgage
$ 1,899,872
97.5 %
$ 27,204
1.4 %
$ 22,060
1.1 %
$ 1,949,136
100.0 %
Production and intermediate term
743,698
94.4 %
35,183
4.5 %
8,803
1.1 %
787,684
100.0 %
Agribusiness
549,126
95.1 %
21,679
3.8 %
6,350
1.1 %
577,155
100.0 %
Other
168,274
97.7 %
3,868
2.2 %
102
0.1 %
172,244
100.0 %
Total
$ 3,360,970
96.4 %
$ 87,934
2.5 %
$ 37,315
1.1 %
$ 3,486,219
100.0 %
Note : Accruing loans include accrued interest receivable .
Aging Analysis of Loans
30-89
90 Days
Not Past Due
( in thousands )
Days
or More
Total
or Less Than 30
As of December 31 , 2017
Past Due
Past Due
Past Due
Days Past Due
Total
Real estate mortgage
$ 1,887
$ 1,113
$ 3,000
$ 2,148,167
$ 2,151,167
Production and intermediate term
1,324
959
2,283
765,197
767,480
Agribusiness
--
85
85
753,474
753,559
Other
112
--
112
187,570
187,682
Total
$ 3,323
$ 2,157
$ 5,480
$ 3,854,408
$ 3,859,888
30-89
90 Days
Not Past Due
Days
or More
Total
or Less Than 30
As of December 31 , 2016
Past Due
Past Due
Past Due
Days Past Due
Total
Real estate mortgage
$ 3,320
$ 366
$ 3,686
$ 2,089,402
$ 2,093,088
Production and intermediate term
1,446
247
1,693
770,512
772,205
Agribusiness
3
--
3
646,249
646,252
Other
161
--
161
184,707
184,868
Total
$ 4,930
$ 613
$ 5,543
$ 3,690,870
$ 3,696,413
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