PFBX 10-Q Quarter ended March 31, 2019

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 March 31, 2019

or

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-12103

PEOPLES FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

Mississippi		64-0709834
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
Lameuse and Howard Avenues, Biloxi, Mississippi		39533
(Address of principal executive offices)		(Zip Code)

(228) 435-5511

(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 shorter 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   ☒    No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes   ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer” , “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer		☐		Accelerated filer		☐
Non-accelerated filer		☐		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 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes   ☐    No  ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
None		PFBX		None

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the last practicable date. Peoples Financial Corporation has only one class of common stock authorized. At April 30, 2019, there were 15,000,000 shares of $1 par value common stock authorized, with 4,943,186 shares issued and outstanding.

Part 1 – Financial Information

Item 1: Financial Statements

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Condition

(in thousands except share data)

		March 31, 2019				December 31, 2018
		(unaudited)				(audited)
Assets
Cash and due from banks		$	39,087			$	17,191
Available for sale securities			222,119				222,110
Held to maturity securities, fair value of $54,512 at March 31, 2019; $53,459 at December 31, 2018			54,632				54,598
Other investments			2,751				2,811
Federal Home Loan Bank Stock, at cost			2,077				2,069
Loans			267,492				273,346
Less: Allowance for loan losses			5,376				5,340
Loans, net			262,116				268,006
Bank premises and equipment, net of accumulated depreciation			18,562				18,879
Other real estate			8,873				8,943
Accrued interest receivable			2,305				1,956
Cash surrender value of life insurance			18,982				18,841
Other assets			1,457				1,382
Total assets		$	632,961			$	616,786

2

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Condition (continued)

(in thousands except share data)

		March 31, 2019				December 31, 2018
		(unaudited)				(audited)
Liabilities and Shareholders’ Equity
Liabilities:
Deposits:
Demand, non-interest bearing		$	130,184			$	114,512
Savings and demand, interest bearing			301,044				278,772
Time, $100,000 or more			43,115				52,787
Other time deposits			46,994				27,435
Total deposits			521,337				473,506
Borrowings from Federal Home Loan Bank			1,068				36,142
Employee and director benefit plans liabilities			18,542				18,415
Other liabilities			1,329				1,789
Total liabilities			542,276				529,852
Shareholders’ Equity:
Common stock, $1 par value, 15,000,000 shares authorized, 4,943,186 shares issued and outstanding at March 31, 2019 and December 31, 2018			4,943				4,943
Surplus			65,780				65,780
Undivided profits			20,729				20,324
Accumulated other comprehensive loss			(767	)			(4,113	)
Total shareholders’ equity			90,685				86,934
Total liabilities and shareholders’ equity		$	632,961			$	616,786

See Notes to Consolidated Financial Statements.

3

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Income

(in thousands except per share data)(unaudited)

		Three Months Ended March 31,
		2019				2018
Interest income:
Interest and fees on loans		$	3,689			$	3,233
Interest and dividends on securities:
U.S. Treasuries			294				379
U.S. Government agencies			125				122
Mortgage-backed securities			822				550
Collateralized mortgage obligations			12
States and political subdivisions			460				439
Other investments			11				3
Interest on balances due from depository institutions			87				39
Total interest income			5,500				4,765
Interest expense:
Deposits			802				476
Borrowings from Federal Home Loan Bank			78				20
Total interest expense			880				496
Net interest income			4,620				4,269
Provision for allowance for loan losses			54				35
Net interest income after provision for allowance for loan losses		$	4,566			$	4,234

4

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Income (continued)

(in thousands except per share data)(unaudited)

		Three Months Ended March 31,
		2019				2018
Non-interest income:
Trust department income and fees		$	371			$	433
Service charges on deposit accounts			882				911
Increase in cash surrender value of life insurance			105				107
Other income			108				111
Total non-interest income			1,466				1,562
Non-interest expense:
Salaries and employee benefits			2,734				2,829
Net occupancy			474				440
Equipment rentals, depreciation and maintenance			833				758
FDIC and state banking assessments			102				114
Data processing			347				327
ATM expense			169				138
Other real estate expense			50				120
Loss from other investments			60				39
Other expense			858				739
Total non-interest expense			5,627				5,504
Net income		$	405			$	292
Basic and diluted earnings per share		$	.08			$	.06
Dividends declared per share		$				$

See Notes to Consolidated Financial Statements.

5

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income (Loss)

(in thousands)(unaudited)

		Three Months Ended March 31,
		2019				2018
Net income		$	405			$	292
Other comprehensive income (loss):
Net unrealized gain (loss) on available for sale securities			3,346				(2,594	)
Total other comprehensive income (loss)			3,346				(2,594	)
Total comprehensive income (loss)		$	3,751			$	(2,302	)

See Notes to Consolidated Financial Statements.

6

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Changes in Shareholders’ Equity

(in thousands except share data)

																		Accumulated
		Number of																Other
		Common				Common								Undivided				Comprehensive
		Shares				Stock				Surplus				Profits				Loss				Total
Balance, January 1, 2018			5,083,186			$	5,083			$	65,780			$	21,563			$	(2,927	)		$	89,499
Net income															292								292
Other comprehensive loss																			(2,594	)			(2,594	)
Retirement of stock			(10,392	)			(10	)							(135	)							(145	)
Balance, March 31, 2018			5,072,794			$	5,073			$	65,780			$	21,720			$	(5,521	)		$	87,052
Balance, January 1, 2019			4,943,186			$	4,943			$	65,780			$	20,324			$	(4,113	)		$	86,934
Net income															405								405
Other comprehensive income																			3,346				3,346
Balance, March 31, 2019			4,943,186			$	4,943			$	65,780			$	20,729			$	(767)			$	90,685

Note: Balances as of January 1, 2018 and 2019 were audited.

See Notes to Consolidated Financial Statements.

7

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands)(unaudited)

		Three Months Ended March 31,
		2019				2018
Cash flows from operating activities:
Net income		$	405			$	292
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation			488				480
Provision for allowance for loan losses			54				35
Writedown of other real estate							17
Loss on sales of other real estate			20				4
Loss from other investments			60				39
Amortization of available for sale securities			50				113
Amortization of held to maturity securities			66				61
Change in accrued interest receivable			(349	)			(194	)
Increase in cash surrender value of life insurance			(105	)			(107	)
Change in other assets			(75	)			(65	)
Change in other liabilities			(333	)			(483	)
Net cash provided by operating activities		$	281			$	192

8

Peoples Financial Corporation and Subsidiaries

Consolidated Statements of Cash Flows (continued)

(in thousands) (unaudited)

		Three Months Ended March 31,
		2019				2018
Cash flows from investing activities:
Proceeds from maturities of available for sale securities		$	8,104			$	13,285
Purchases of available for sale securities			(4,817	)			(10,723	)
Proceeds from maturities and calls of held to maturity securities			520				220
Purchases of held to maturity securities			(620	)
Purchases of Federal Home Loan Bank stock			(8	)			(62	)
Proceeds from sales of other real estate			419				120
Loans, net change			5,467				4,267
Acquisition of bank premises and equipment			(171	)			(247	)
Investment in cash surrender value of life insurance			(36	)			(21	)
Net cash provided by investing activities			8,858				6,839
Cash flows from financing activities:
Demand and savings deposits, net change			37,944				6,380
Time deposits, net change			9,887				2,986
Borrowings from Federal Home Loan Bank			223,250				161,400
Repayments to Federal Home Loan Bank			(258,324	)			(171,414	)
Retirement of common stock							(145	)
Net cash provided by (used in) financing activities			12,757				(793	)
Net increase in cash and cash equivalents			21,896				6,238
Cash and cash equivalents, beginning of period			17,191				25,281
Cash and cash equivalents, end of period		$	39,087			$	31,519

See Notes to Consolidated Financial Statements.

9

PEOPLES FINANCIAL CORPORATION AND SUBSIDIARIES

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

For the three Months Ended March 31, 2019 and 2018

1. Basis of Presentation:

Peoples Financial Corporation (the “Company”) is a one-bank holding company headquartered in Biloxi, Mississippi. The Company has two operating subsidiaries, PFC Service Corp., an inactive company, and The Peoples Bank, Biloxi, Mississippi (the “Bank”). The Bank provides a full range of banking, financial and trust services to state, county and local government entities and individuals and small and commercial businesses operating in those portions of Mississippi, Louisiana and Alabama which are within a fifty mile radius of the Waveland, Wiggins and Gautier branches, the Bank’s three most outlying locations (the “trade area”).

The accompanying unaudited consolidated financial statements and notes thereto contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the financial position of the Company and its subsidiaries as of March 31, 2019 and the results of their operations and their cash flows for the periods presented. The interim financial information should be read in conjunction with the annual consolidated financial statements and the notes thereto included in the Company’s 2018 Annual Report and Form 10-K.

The results of operations for the quarter ended March 31, 2019, are not necessarily indicative of the results to be expected for the full year.

Use of Estimates - The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of other real estate acquired in connection with foreclosure or in satisfaction of loans and valuation allowances associated with the realization of deferred tax assets, which are based on future taxable income.

Summary of Significant Accounting Policies - The accounting and reporting policies of the Company conform to GAAP and general practices within the banking industry. There have been no material changes or developments in the application of principles or in our evaluation of the accounting estimates and the underlying assumptions or methodologies that we believe to be Critical Accounting Policies as disclosed in our Form 10-K for the year ended December 31, 2018.

10

Accounting Standards Update 2016-13 (“ASU 2016-13”), Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , is intended to provide financial statement users with more decision-useful information related to expected credit losses on financial instruments and other commitments to extend credit by replacing the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to determine credit loss estimates. ASU 2016-13 is effective for the Company for interim and annual periods beginning after December 15, 2019 and the Company intends to adopt ASU 2016-13 during the first quarter of 2020. The Company’s Current Expected Credit Loss (CECL) Committee continues to evaluate the impact this ASU will have on the Company’s financial position, results of operations and financial statement disclosures and determine the most appropriate method of implementing this ASU. Management will continue to evaluate the impact this ASU will have on the Company’s consolidated financial statements through its effective date.

2. Earnings Per Share:

Per share data is based on the weighted average shares of common stock outstanding of 4,943,186 and 5,080,514 for the three months ended March 31, 2019 and 2018, respectively.

3. Statements of Cash Flows:

The Company has defined cash and cash equivalents as cash and due from banks. The Company paid $852,975 and $489,389 for the three months ended March 31, 2019 and 2018, respectively, for interest on deposits and borrowings. No income tax payments were made during the three months ended March 31, 2019 and 2018. Loans transferred to other real estate amounted to $369,054 and $753,674 during the three months ended March 31, 2019 and 2018, respectively.

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4. Investments:

The amortized cost and fair value of securities at March 31, 2019 and December 31, 2018, are as follows (in thousands):

March 31, 2019		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
Available for sale securities:
U.S. Treasuries		$	85,878			$	4			$	(1,554	)		$	84,328
U.S. Government agencies			12,492				34				(109	)			12,417
Mortgage-backed securities			109,218				866				(701	)			109,383
Collateralized mortgage obligations			4,821				88								4,909
States and political subdivisions			10,998				84								11,082
Total available for sale securities		$	223,407			$	1,076			$	(2,364	)		$	222,119
Held to maturity securities:
U.S. Government agencies		$	8,185			$				$	(162	)		$	8,023
States and political subdivisions			46,447				325				(283	)			46,489
Total held to maturity securities		$	54,632			$	325			$	(445	)		$	54,512
December 31, 2018		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
Available for sale securities:
U.S. Treasuries		$	85,866			$				$	(2,443	)		$	83,423
U.S. Government agencies			17,492				14				(259	)			17,247
Mortgage-backed securities			112,391				231				(2,278	)			110,344
States and political subdivisions			10,994				102								11,096
Total available for sale securities		$	226,743			$	347			$	(4,980	)		$	222,110
Held to maturity securities:
U.S. Government agencies		$	8,185			$				$	(371	)		$	7,814
States and political subdivisions			46,413				89				(857	)			45,645
Total held to maturity securities		$	54,598			$	89			$	(1,228	)		$	53,459

12

The amortized cost and fair value of debt securities at March 31, 2019 (in thousands), by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

		Amortized Cost				Fair Value
Available for sale securities:
Due in one year or less		$	24,248			$	24,136
Due after one year through five years			77,215				75,969
Due after five years through ten years			9,892				9,752
Due after ten years			2,834				2,879
Mortgage-backed securities			109,218				109,383
Totals		$	223,407			$	222,119
Held to maturity securities:
Due in one year or less		$	2,496			$	2,498
Due after one year through five years			19,493				19,461
Due after five years through ten years			18,319				18,306
Due after ten years			14,324				14,247
Totals		$	54,632			$	54,512

13

Available for sale and held to maturity securities with gross unrealized losses at March 31, 2019 and December 31, 2018, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are as follows (in thousands):

		Less Than Twelve Months								Over Twelve Months								Total
						Gross								Gross								Gross
						Unrealized								Unrealized								Unrealized
		Fair Value				Losses				Fair Value				Losses				Fair Value				Losses
March 31, 2019:
U.S. Treasuries		$				$				$	83,324			$	1,554			$	83,324			$	1,554
U.S. Government agencies											17,906				271				17,906				271
Mortgage-backed securities											57,263				701				57,263				701
States and political subdivisions			269				1				17,376				282				17,645				283
TOTAL		$	269			$	1			$	175,869			$	2,808			$	176,138			$	2,809
December 31, 2018:
U.S. Treasuries		$	999			$	1			$	82,424			$	2,442			$	83,423			$	2,443
U.S. Government agencies			4,939				61				17,608				569				22,547				630
Mortgage-backed securities			24,834				293				55,649				1,985				80,483				2,278
States and political subdivisions			8,470				122				19,678				735				28,148				857
TOTAL		$	39,242			$	477			$	175,359			$	5,731			$	214,601			$	6,208

At March 31, 2019, 17 of the 18 securities issued by the U.S. Treasury, 4 of the 5 securities issued by U.S. Government agencies, 43 of the 145 securities issued by states and political subdivisions and 24 of the 45 mortgage-backed securities contained unrealized losses.

14

Management evaluates securities for other-than-temporary impairment on a monthly basis. In performing this evaluation, the length of time and the extent to which the fair value has been less than cost, the fact that the Company’s securities are primarily issued by U.S. Treasury and U.S. Government Agencies and the cause of the decline in value are considered. In addition, the Company does not intend to sell and it is not more likely than not that it will be required to sell these securities before maturity. While some available for sale securities have been sold for liquidity purposes or for gains, the Company has traditionally held its securities, including those classified as available for sale, until maturity. As a result of the evaluation of these securities, the Company has determined that the unrealized losses summarized in the tables above are not deemed to be other-than-temporary.

There were no sales or calls of available for sale debt securities during the three months ended March 31, 2019 and 2018.

Securities with a fair value of $236,946,244 and $206,017,056 at March 31, 2019 and December 31, 2018, respectively, were pledged to secure public deposits, federal funds purchased and other balances required by law.

5. Loans:

The composition of the loan portfolio at March 31, 2019 and December 31, 2018, is as follows (in thousands):

		March 31, 2019				December 31, 2018
Gaming		$	24,375			$	25,767
Hotel/Motel			45,402				44,112
Real estate, construction			27,209				31,597
Real estate, mortgage			136,438				137,437
Commercial and industrial			27,708				27,505
Other			6,360				6,928
Total		$	267,492			$	273,346

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The age analysis of the loan portfolio, segregated by class of loans, as of March 31, 2019 and December 31, 2018, is as follows (in thousands):

																										Loans Past
																										Due Greater
		Number of Days Past Due																								Than 90
										Greater				Total								Total				Days &
		30 - 59				60 - 89				Than 90				Past Due				Current				Loans				Still Accruing
March 31, 2019:
Gaming		$				$				$				$				$	24,375			$	24,375			$
Hotel/Motel																			45,402				45,402
Real estate, construction			1,022				8				711				1,741				25,468				27,209
Real estate, mortgage			3,091				516				535				4,142				132,296				136,438
Commercial and industrial			59				27				1,145				1,231				26,477				27,708
Other			93				23								116				6,244				6,360
Total		$	4,265			$	574			$	2,391			$	7,230			$	260,262			$	267,492			$
December 31, 2018:
Gaming		$				$				$				$				$	25,767			$	25,767			$
Hotel/Motel																			44,112				44,112
Real estate, construction			1,987				340				860				3,187				28,410				31,597
Real estate, mortgage			2,866				7,129				1,730				11,725				125,712				137,437
Commercial and industrial			9				110				1,661				1,780				25,725				27,505
Other			107				3								110				6,818				6,928
Total		$	4,969			$	7,582			$	4,251			$	16,802			$	256,544			$	273,346			$

The Company monitors the credit quality of its loan portfolio through the use of a loan grading system. A score of 1 – 5 is assigned to the loan based on factors including repayment ability, trends in net worth and/or financial condition of the borrower and guarantors, employment stability, management ability, loan to value fluctuations, the type and structure of the loan, conformity of the loan to bank policy and payment performance. Based on the total score, a loan grade of A, B, C, S, D, E or F is applied. A grade of A will generally be applied to loans for customers that are well known to the Company and that have excellent sources of repayment. A grade of B will generally be applied to loans for customers that have excellent sources of repayment which have no identifiable risk of collection. A grade of C will generally be applied to loans for customers that have adequate sources of repayment which have little identifiable risk of collection. A grade of S will generally be applied to loans for customers who meet the criteria for a grade of C but who also warrant additional monitoring by placement on the watch list. A grade of D will generally be applied to loans for customers that are inadequately protected by current sound net worth, paying capacity of the borrower, or pledged collateral. Loans with a grade of D have unsatisfactory characteristics such as cash flow deficiencies, bankruptcy filing by the borrower or dependence on the sale of collateral for the primary source of repayment, causing more than acceptable levels of risk. Loans 60 to 89 days past due receive a grade of D. A grade

16

of E will generally be applied to loans for customers with weaknesses inherent in the “D” classification and in which collection or liquidation in full is questionable. In addition, on a monthly basis the Company determines which loans are 90 days or more past due and assigns a grade of E to them. A grade of F is applied to loans which are considered uncollectible and of such little value that their continuance in an active bank is not warranted. Loans with this grade are charged off, even though partial or full recovery may be possible in the future.

An analysis of the loan portfolio by loan grade, segregated by class of loans, as of March 31, 2019 and December 31, 2018, is as follows (in thousands):

		Loans With A Grade Of:
		A, B or C				S				D				E				F				Total
March 31, 2019:
Gaming		$	19,690			$				$	4,685			$				$				$	24,375
Hotel/Motel			45,402																				45,402
Real estate, construction			25,714								229				1,266								27,209
Real estate, mortgage			104,928				15,422				12,538				3,550								136,438
Commercial and industrial			17,279				8,807				162				1,460								27,708
Other			6,344								13				3								6,360
Total		$	219,357			$	24,229			$	17,627			$	6,279			$				$	267,492
December 31, 2018:
Gaming		$	21,080			$				$	4,687			$				$				$	25,767
Hotel/Motel			44,112																				44,112
Real estate, construction			29,930								217				1,450								31,597
Real estate, mortgage			108,885				10,430				12,992				5,130								137,437
Commercial and industrial			25,335								218				1,952								27,505
Other			6,904								20				4								6,928
Total		$	236,246			$	10,430			$	18,134			$	8,536			$				$	273,346

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A loan may be impaired but not on nonaccrual status when the loan is well secured and in the process of collection.    Total loans on nonaccrual as of March 31, 2019 and December 31, 2018, are as follows (in thousands):

		March 31, 2019				December 31, 2018
Real estate, construction		$	1,266			$	1,439
Real estate, mortgage			3,464				4,954
Commercial and industrial			1,369				1,855
Other			3				2
Total		$	6,102			$	8,250

Prior to 2018, certain loans were modified by granting interest rate concessions to these customers with such loans being classified as troubled debt restructurings. During 2018 and 2019, the Company did not restructure any additional loans. Specific reserves of $65,571 and $69,000 were allocated to troubled debt restructurings as of March 31, 2019 and December 31, 2018, respectively. The Bank had no commitments to lend additional amounts to customers with outstanding loans classified as troubled debt restructurings as of March 31, 2019 and December 31, 2018.

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Impaired loans, which include loans classified as nonaccrual and troubled debt restructurings, segregated by class of loans, as of March 31, 2019 and December 31, 2018, are as follows (in thousands):

		Unpaid Principal Balance				Recorded Investment				Related Allowance				Average Recorded Investment				Interest Income Recognized
March 31, 2019:
With no related allowance recorded:
Real estate, construction		$	1,004			$	617			$				$	617			$
Real estate, mortgage			3,808				3,808								3,833				7
Commercial and industrial			1,597				1,369								1,417
Other			2				2								2
Total			6,411				5,796								5,869				7
With a related allowance recorded:
Real estate, construction			736				649				255				651
Real estate, mortgage			736				736				136				704				7
Other			1				1				1				1
Total			1,473				1,386				392				1,356				7
Total by class of loans:
Real estate, construction			1,740				1,266				255				1,268
Real estate, mortgage			4,544				4,544				136				4,537				14
Commercial and industrial			1,597				1,369								1,417
Other			3				3				1				3
Total		$	7,884			$	7,182			$	392			$	7,225			$	14

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		Unpaid Principal Balance				Recorded Investment				Related Allowance				Average Recorded Investment				Interest Income Recognized
December 31, 2018:
With no related allowance recorded:
Real estate, construction		$	1,171			$	784			$				$	785			$
Real estate, mortgage			5,508				5,474								5,826				29
Commercial and industrial			2,083				1,855								2,204
Other			2				2								3
Total			8,764				8,115								8,818				29
With a related allowance recorded:
Real estate, construction			742				655				283				633
Real estate, mortgage			574				574				101				589				25
Total			1,316				1,229				384				1,222				25
Total by class of loans:
Real estate, construction			1,913				1,439				283				1,418
Real estate, mortgage			6,082				6,048				101				6,415				54
Commercial and industrial			2,083				1,855								2,204
Other			2				2								3
Total		$	10,080			$	9,344			$	384			$	10,040			$	54

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