Annual Report 2018 - Page 30

Changes in Allowance for Loan Losses and Year End Recorded Investments by Loan Type (in thousands) Real Estate Production and Mortgage Intermediate-Term Agribusiness Other Total Allowance for loan losses: Balance as of December 31, 2017 Provision for (reversal of) loan losses Loan recoveries Loan charge-offs $3,771 181 74 (15) $7,615 (1,957) 139 (126) $3,826 1,608 4 (25) $703 168 -- -- $15,915 -- 217 (166) Balance as of December 31, 2018 $4,011 $5,671 $5,413 $871 $15,966 Ending balance: individually evaluated for impairment $4 $167 $703 $ -- $874 Ending balance: collectively evaluated for impairment $4,007 $5,504 $4,710 $871 $15,092 $4,120,960 Recorded investment in loans outstanding: Ending balance as of December 31, 2018 $2,370,289 $684,067 $824,683 $241,921 Ending balance: individually evaluated for impairment $4,742 $1,892 $2,367 $ -- $9,001 Ending balance: collectively evaluated for impairment $2,365,547 $682,175 $822,316 $241,921 $4,111,959 Real Estate Production and Mortgage Intermediate-Term Agribusiness Other Total Allowance for loan losses: Balance as of December 31, 2016 Provision for (reversal of) loan losses Loan recoveries Loan charge-offs $3,907 46 46 (228) $8,057 (66) 167 (543) $3,673 108 63 (18) $791 (88) -- -- $16,428 -- 276 (789) Balance as of December 31, 2017 $3,771 $7,615 $3,826 $703 $15,915 Ending balance: individually evaluated for impairment $ -- $591 $57 $ -- $648 Ending balance: collectively evaluated for impairment $3,771 $7,024 $3,769 $703 $15,267 Recorded investment in loans outstanding: Ending balance as of December 31, 2017 $2,151,167 $767,480 $753,559 $187,682 $3,859,888 Ending balance: individually evaluated for impairment $7,065 $2,911 $85 $ -- $10,061 Ending balance: collectively evaluated for impairment $2,144,102 $764,569 $753,474 $187,682 $3,849,827 Real Estate Production and Mortgage Intermediate-Term Agribusiness Other Total Allowance for loan losses: Balance as of December 31, 2015 Provision for (reversal of) loan losses Loan recoveries Loan charge-offs $4,035 619 16 (763) $8,250 133 73 (399) $2,544 515 626 (12) $1,058 (267) -- -- $15,887 1,000 715 (1,174) Balance as of December 31, 2016 $3,907 $8,057 $3,673 $791 $16,428 Ending balance: individually evaluated for impairment $245 $202 $ -- $ -- $447 Ending balance: collectively evaluated for impairment $3,662 $7,855 $3,673 $791 $15,981 Recorded investment in loans outstanding: Ending balance as of December 31, 2016 $2,093,088 $772,205 $646,252 $184,868 $3,696,413 Ending balance: individually evaluated for impairment $4,546 $2,843 $ -- $ -- $7,389 Ending balance: collectively evaluated for impairment $2,088,542 $769,362 $646,252 $184,868 $3,689,024 The recorded investment in the loan is the unpaid principal amount increased or decreased by applicable accrued interest and unamortized premium, discount, finance charges, and acquisition costs and may also reflect a previous direct charge-off of the investment. NOTE 4: INVESTMENT IN AGRIBANK As of December 31, 2018, we were required by AgriBank to maintain an investment equal to 2.25% of the average quarterly balance of our note payable, with an additional amount required on association growth in excess of a targeted growth rate, if the District is also growing above a targeted growth rate. We are also required to hold AgriBank stock related to our participation in a pool program. Generally, this program requires us to hold 8.0% of the balance of loans in the program. The balance of our investment in AgriBank, all required stock, was $83.0 million, $79.1 million, and $77.2 million at December 31, 2018, 2017, and 2016, respectively. 27