53 / 146
37
Loan andLease Distribution
(dollars in thousands)
2015
2014
2013
2012
2011
Real Estate:
1-4 family residential construction
14,941
$
5,858
$
1,720
$
3,174
$
8,488
$
Other Construction/Land
37,359
19,908
25,531
28,002
40,060
1-4 family - closed-end
137,356
114,259
87,024
99,917
104,953
Equity Lines
44,233
49,717
53,723
61,463
66,497
Multi-family residential
27,222
18,718
8,485
5,960
8,179
Commercial RE- owner occupied
218,708
218,654
186,012
182,614
183,070
Commercial RE- non-owner occupied
165,107
132,077
106,840
92,808
105,843
Farmland
133,182
145,039
108,504
71,851
60,142
Total Real Estate
778,108
704,230
577,839
545,789
577,232
Agricultural
46,237
27,746
25,180
22,482
17,078
Commercial and Industrial
113,207
113,771
103,262
112,328
98,933
Mortgage Warehouse Lines
180,355
106,021
73,425
170,324
28,224
Consumer loans
14,949
18,885
23,536
28,872
36,124
Total Loans andLeases
1,132,856
$
970,653
$
803,242
$
879,795
$
757,591
$
Percentage of Total Loans andLeases
Real Estate:
1-4 family residential construction
1.32%
0.60%
0.21%
0.35%
1.12%
Other Construction/land
3.30%
2.05%
3.18%
3.18%
5.29%
1-4 family - closed-end
12.12%
11.77%
10.83%
11.36%
13.85%
Equity Lines
3.90%
5.12%
6.69%
6.99%
8.78%
Multi-family residential
2.40%
1.93%
1.06%
0.68%
1.08%
Commercial RE- owner occupied
19.31%
22.53%
23.16%
20.76%
24.16%
Commercial RE- non-owner occupied
14.57%
13.61%
13.30%
10.55%
13.97%
Farmland
11.76%
14.94%
13.51%
8.17%
7.94%
Total Real Estate
68.68%
72.55%
71.94%
62.04%
76.19%
Agricultural
4.08%
2.86%
3.13%
2.56%
2.25%
Commercial and Industrial
9.99%
11.72%
12.86%
12.76%
13.06%
Mortgage Warehouse Lines
15.93%
10.92%
9.14%
19.36%
3.73%
Consumer loans
1.32%
1.95%
2.93%
3.28%
4.77%
100.00% 100.00% 100.00% 100.00% 100.00%
As of December 31,
Excluding the fluctuations caused by variability in outstanding balances on mortgage warehouse lines, the Company
experienced limited growth, or in some instances runoff, in other loan and lease balances from 2011 through 2013 due
to reductions associated with the resolution of impaired loans, weak loan demand, stringent underwriting standards,
and intense competition. In 2014, however, net growth in outstanding balances totaled $167 million, or 21%, with only
$33 million of that growth coming from mortgage warehouse loans. The Company’s loan growth in 2014 includes $62
million in SCVB loans, the purchase of $33 million in residential mortgage loans, and strong organic growth in agri-
cultural real estate loans, commercial real estate loans, and commercial loans. Loan growth continued at a sturdy pace
in 2015 with a net increase of $162 million, or 17%, in gross loan balances resulting from increased utilization on
mortgage warehouse lines, the purchase of $28 million in residential mortgage loans, strong organic growth in other
non-farm real estate loans, and a solid increase in agricultural production loans.
Outstanding balances on mortgage warehouse lines were up $74 million, or 70%, as utilization on lines increased to
60% at December 31, 2015 from 47% at December 31, 2014, and certain lines were judiciously increased during 2015
to accommodate strong borrower demand. Mortgage lending activity is highly correlated with changes in 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.
Non-owner occupied commercial real estate loans increased by $33 million, or 25%, in 2015 due to focused loan orig-
ination efforts and escalating commercial real estate activity in certain markets in our footprint. Management expects