38
increased $37 million, or 34%, due to continued strong agricultural activity. Agricultural production loans were also
up $3 million, or 10%. The commercial and industrial loan category, which also gained balances via the acquisition,
reflects an increase of $11 million, or 10%, and would have increased even more if not for the conversion-related
reclassifications. Outstanding balances on mortgage warehouse lines were up $33 million, or 44%, since utilization
on lines increased to 47% at December 31, 2014 from 26% at December 31, 2013. Mortgage lending activity is
strongly correlated to interest rates and refinancing activity and has historically been subject to significant
fluctuations, so no assurance can be provided with regard to our ability to maintain or grow mortgage warehouse
balances. Consumer loans have been trending down due to weak demand and tightened credit criteria, and this
category again experienced net runoff of $5 million, or 20%, in 2014. While not reflected in the loan totals above
and not currently comprising a material segment of our lending activities, the Company occasionally originates and
sells, or participates out portions of, loans to non-affiliated investors.
Loan and Lease Maturities
The following table shows the maturity distribution for total loans and leases outstanding as of December 31, 2014,
including non-accruing loans, grouped by remaining scheduled principal payments:
Loans andLease Maturity
(dollars in thousands)
Real Estate
29,337
$
37,412
$
84,085
$
553,396
$
704,230
$
377,402
$
260,079
$
Agricultural
4,347
19,515
1,962
1,922
27,746
1,583
2,301
Commercial and Industrial
6,270
34,245
24,414
48,842
113,771
24,112
49,144
Mortgage warehouse lines
-
106,021
-
-
106,021
-
-
Consumer Loans
1,025
1,311
5,874
10,675
18,885
899
15,650
Total
40,979
$
198,504
$
116,335
$
614,835
$
970,653
$
403,996
$
327,174
$
As of December 31, 2014
Three months
or less
Three months
to twelve
months
One to five
years
Over five years
Total
Floating rate:
due after one
year
Fixed rate: due
after one year
For a comprehensive discussion of the Company’s liquidity position, balance sheet re-pricing characteristics, and
sensitivity to interest rates changes, refer to the “Liquidity and Market Risk” section of this discussion and analysis.
Off-Balance Sheet Arrangements
The Company makes commitments to extend credit to its customers in the normal course of business, as long as there
are no violations of conditions established in contractual arrangements. The effect on the Company’s revenues,
expenses, cash flows and liquidity from unused portions of commitments to provide credit cannot be reasonably
predicted, because there is no certainty that lines of credit will ever be fully utilized. Unused commitments to extend
credit totaled $367 million at December 31, 2014, as compared to $421 million at December 31, 2013. The reduction
during 2014 was primarily due to a drop in undisbursed commitments on mortgage warehouse lines, resulting from
increased line utilization. Unused commitments fell to 38% of gross loans and leases outstanding at December 31,
2014, from 52% at December 31, 2013. In addition to unused loan commitments, the Company had undrawn letters
of credit totaling $14 million at December 31, 2014 and $17 million at December 31, 2013. Off-balance sheet
obligations pose potential credit risk to the Company, and a $304,000 reserve for unfunded commitments is reflected
as a liability in our consolidated balance sheet at December 31, 2014. For more information regarding the
Company’s off-balance sheet arrangements, see Note 11 to the consolidated financial statements in Item 8 herein.
Contractual Obligations
At the end of 2014, the Company had contractual obligations for the following payments, by type and period due:
