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continued growth in commercial real estate loans based on the current pipeline of loans in the process of approval,
although no assurance can be provided in that regard. Real estate loans classified as 1-4 family closed-end loans were
also up $23 million, or 20%, during 2015 due to the aforementioned opportunistic purchase of well-underwritten, newer
vintage residential mortgage loans which had an expected average life of about seven years at the time of purchase.
Material increases are likewise evident in residential construction loans, which grew $9 million, or 155% during 2015,
non-residential construction loans, which were up $17 million, or 88%, and multi-family residential loans, which
increased almost $9 million, or 45%. Other real estate loan categories either remained static, or declined as loan payoffs
outpaced new originations. Loans secured by farmland, in particular, were down $12 million, or 8%, due in part to the
payoff of a large dairy loan subsequent to the sale of the business by the borrower.
Agricultural production loans also experienced significant growth in 2015, increasing by about $18 million, or 67%.
Consumer loans, on the other hand, were down $4 million, or 21%, due to weak demand and tightened credit criteria.
Commercial loans were roughly unchanged for the year.
Loan and Lease Maturities
The following table shows the maturity distribution for total loans and leases outstanding as of December 31, 2015,
including non-accruing loans, grouped by remaining scheduled principal payments:
Loans andLease Maturity
(dollars in thousands)
Real Estate
17,246
$
38,526
$
79,883
$
642,453
$
778,108
$
430,317
$
292,019
$
Agricultural
2,826
29,421
12,163
1,827
46,237
3,703
10,287
Commercial and Industrial
6,835
31,489
23,245
51,638
113,207
22,893
51,990
Mortgage warehouse lines
-
180,355
-
-
180,355
-
-
Consumer Loans
654
734
5,683
7,878
14,949
789
12,772
Total
27,561
$
280,525
$
120,974
$
703,796
$
1,132,856
$
457,702
$
367,068
$
As of December 31, 2015
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 sen-
sitivity 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 $355 million, or 31% of gross loans and leases outstanding at December 31, 2015, as compared to $367
million, or 38% of gross loans and leases outstanding at December 31, 2014. In addition to unused loan commitments,
the Company had undrawn letters of credit totaling $17 million at December 31, 2015 and $14 million at December 31,
2014. 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, 2015. For more information
regarding the Company’s off-balance sheet arrangements, see Note 11 to the consolidated financial statements in Item
8 herein.