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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Mar. 31, 2019	Apr. 24, 2019
Document and Entity Information [Abstract]
Entity Registrant Name	CBTX, Inc.
Entity Central Index Key	0001473844
Document Type	10-Q
Document Period End Date	Mar. 31, 2019
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	true
Entity Common Stock, Shares Outstanding		25,999,297
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
ASSETS
Cash and due from banks	$ 54,110	$ 54,450
Interest-bearing deposits at other financial institutions	222,405	327,620
Total cash and cash equivalents	276,515	382,070
Debt securities	228,684	229,964
Equity investments	15,065	13,026
Loans held for sale	852
Loans, net of allowance for loan loss of $24,643 and $23,693 at March 31, 2019 and December 31, 2018, respectively	2,520,066	2,423,130
Premises and equipment, net of accumulated depreciation of $30,674 and $29,867 at March 31, 2019 and December 31, 2018, respectively	51,453	51,622
Goodwill	80,950	80,950
Other intangible assets, net of accumulated amortization of $15,147 and $14,915 at March 31, 2019 and December 31, 2018, respectively	5,538	5,775
Bank-owned life insurance	71,955	71,525
Operating lease right-to-use asset	12,879
Deferred tax asset, net	5,942	7,201
Other assets	13,563	13,833
Total assets	3,283,462	3,279,096
Liabilities
Noninterest-bearing deposits	1,229,172	1,183,058
Interest-bearing deposits	1,521,827	1,583,224
Total deposits	2,750,999	2,766,282
Repurchase agreements	1,600	2,498
Junior subordinated debt		1,571
Operating lease liabilities	15,134
Other liabilities	17,076	21,120
Total liabilities	2,784,809	2,791,471
Commitments and contingencies (Note 17)
Shareholders’ equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, no shares issued
Common stock, $0.01 par value, 90,000,000 shares authorized, 25,777,904 and 25,777,693 shares issued at March 31, 2019 and December 31, 2018, 24,918,476 and 24,907,421 shares outstanding at March 31, 2019 and December 31, 2018, respectively	258	258
Additional paid-in capital	344,971	344,497
Retained earnings	168,603	160,626
Treasury stock, at cost, 859,428 and 870,272 shares held at March 31, 2019 and December 31, 2018, respectively	(14,597)	(14,781)
Accumulated other comprehensive loss, net of tax of $155 and $791 at March 31, 2019 and December 31, 2018, respectively	(582)	(2,975)
Total shareholders’ equity	498,653	487,625
Total liabilities and shareholders’ equity	$ 3,283,462	$ 3,279,096

Condensed Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Mar. 31, 2019	Dec. 31, 2018
Condensed Consolidated Balance Sheets
Allowance of loan loss	$ 24,643	$ 23,693
Premises and equipment, net of accumulated depreciation	30,674	29,867
Accumulated amortization	$ 15,147	$ 14,915
Preferred stock par value	$ 0.01	$ 0.01
Preferred stock shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock par value	$ 0.01	$ 0.01
Common stock shares authorized	90,000,000	90,000,000
Common stock, shares issued	25,777,904	25,777,693
Common stock, shares outstanding	24,918,476	24,907,421
Treasury stock, shares	859,428	870,272
Accumulated other comprehensive loss, tax	$ 155	$ 791

Condensed Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Interest income
Interest and fees on loans	$ 33,793	$ 28,462
Debt securities	1,557	1,436
Federal Funds and other interest-earning assets	1,483	995
Equity investments	152	192
Total interest income	36,985	31,085
Interest expense
Deposits	3,584	1,948
Federal Home Loan Bank advances and repurchase agreements	65	1
Note payable and junior subordinated debt	8	97
Total interest expense	3,657	2,046
Net interest income	33,328	29,039
Provision for loan losses	1,147	865
Net interest income after provision for loan losses	32,181	28,174
Noninterest income
Deposit account service charges	1,629	1,478
Net gain on sale of assets	88	130
Card interchange fees	864	927
Earnings on bank-owned life insurance	430	451
Other	482	375
Total noninterest income	3,493	3,361
Noninterest expense
Salaries and employee benefits	13,822	12,695
Net occupancy expense	2,267	2,265
Regulatory fees	464	545
Data processing	714	683
Software	440	365
Printing, stationery and office	353	264
Amortization of intangibles	232	255
Professional and director fees	2,091	919
Correspondent bank and customer related transaction expenses	65	67
Loan processing costs	95	118
Advertising, marketing and business development	440	506
Repossessed real estate and other asset expense		57
Security and protection expense	323	302
Telephone and communications	378	386
Other expenses	901	857
Total noninterest expense	22,585	20,284
Net income before income tax expense	13,089	11,251
Income tax expense	2,599	2,139
Net income	$ 10,490	$ 9,112
Earnings per common share
Basic	$ 0.42	$ 0.37
Diluted	$ 0.42	$ 0.37

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidated Statements of Comprehensive Income (Unaudited)
Net income	$ 10,490	$ 9,112
Unrealized gains (losses) on debt securities available for sale arising during the period, net	3,027	(3,665)
Reclassification adjustments for net realized gains included in net income	3
Change in related deferred income tax	(637)	770
Other comprehensive income (loss), net of tax	2,393	(2,895)
Total comprehensive income	$ 12,883	$ 6,217

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Income (Loss)	Total
Beginning balance at Dec. 31, 2017	$ 257	$ 343,249	$ 118,353	$ (15,256)	$ (389)	$ 446,214
Beginning balance, shares at Dec. 31, 2017	25,731,504			(898,272)
Net income			9,112			9,112
Dividends on common stock, $0.10 and $0.05 per share for the three months ended March 31, 2019 and 2018 respectively			(1,252)			(1,252)
Stock-based compensation expense		392				392
Other comprehensive income (loss), net of tax					(2,895)	(2,895)
Ending balance at Mar. 31, 2018	$ 257	343,641	126,213	$ (15,256)	(3,284)	451,571
Ending balance, shares at Mar. 31, 2018	25,731,504			(898,272)
Beginning balance at Dec. 31, 2018	$ 258	344,497	160,626	$ (14,781)	(2,975)	487,625
Beginning balance, shares at Dec. 31, 2018	25,777,693			(870,272)
Net income			10,490			10,490
Dividends on common stock, $0.10 and $0.05 per share for the three months ended March 31, 2019 and 2018 respectively			(2,513)			(2,513)
Vesting of restricted stock, net of shares withheld for employee tax liabilities		(2)				$ (2)
Vesting of restricted stock, net of shares withheld for employee tax liabilities (in shares)	211					211
Exercise of stock options		(69)		$ 184		$ 115
Exercise of stock options (in shares)				10,844
Stock-based compensation expense		545				545
Other comprehensive income (loss), net of tax					2,393	2,393
Ending balance at Mar. 31, 2019	$ 258	$ 344,971	$ 168,603	$ (14,597)	$ (582)	$ 498,653
Ending balance, shares at Mar. 31, 2019	25,777,904			(859,428)

Condensed Consolidated Statements of Changes in Shareholders Equity (Unaudited) (Parentheticals) - $ / shares	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Condensed Consolidated Statements of Changes in Shareholders’ Equity (Unaudited)
Dividends on Common Stock	$ 0.10	$ 0.05

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 10,490,000	$ 9,112,000
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Provision for loan losses	1,147,000	865,000
Depreciation	824,000	825,000
Amortization of intangibles	232,000	255,000
Amortization of premiums on securities	256,000	291,000
Amortization of lease right-to-use assets	329,000
Accretion of lease liabilities	131,000
Earnings on bank-owned life insurance	(430,000)	(451,000)
Stock-based compensation expense	545,000	392,000
Deferred income tax provision	622,000	499,000
Net realized gains on sales of debt securities	(9,000)	(6,000)
Net gains on sales of assets	(88,000)	(130,000)
Change in operating assets and liabilities:
Loans held for sale	(820,000)	1,464,000
Other assets	303,000	2,312,000
Operating lease liabilities	(448,000)
Other liabilities	(3,069,000)	(7,726,000)
Total adjustments	(475,000)	(1,410,000)
Net cash provided by operating activities	10,015,000	7,702,000
Cash flows from investing activities:
Purchases of debt securities	(153,962,000)	(85,675,000)
Proceeds from sales, calls and maturities of debt securities	153,056,000	78,890,000
Principal repayments of debt securities	4,969,000	4,861,000
Net increase in loans	(97,639,000)	(45,514,000)
Sales of loan participations		7,500,000
Purchases of loan participations	(1,256,000)	(7,000,000)
Net contributions to equity investments	(2,039,000)	(449,000)
Proceeds from sales of U.S. Small Business Administration loans	818,000	237,000
Redemption (purchases) of bank-owned life insurance		(1,700,000)
Proceeds from sales of repossessed real estate and other assets	20,000	393,000
Net sales (purchases) of premises and equipment	(653,000)	(354,000)
Net cash used in investing activities	(96,686,000)	(48,811,000)
Cash flows from financing activities:
Net increase (decrease) in noninterest-bearing deposits	46,114,000	10,732,000
Net increase (decrease) in interest-bearing deposits	(61,397,000)	(14,002,000)
Net increase (decrease) in securities sold under agreements to repurchase	(898,000)	(664,000)
Proceeds from exercise of stock options	115,000
Payments to tax authorities for stock-based compensation	(2,000)
Redemption of trust preferred securities	(1,571,000)
Dividends paid on common stock	(1,245,000)	(1,241,000)
Net cash provided by financing activities	(18,884,000)	(5,175,000)
Net decrease in cash, cash equivalents and restricted cash	(105,555,000)	(46,284,000)
Cash, cash equivalents and restricted cash, beginning	382,070,000	326,199,000
Cash, cash equivalents and restricted cash, ending	$ 276,515,000	$ 279,915,000

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2019

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations

CBTX, Inc., or the Company, or CBTX, operates 35 branches, 19 in the Houston market area, 15 in the Beaumont/East Texas market area and one in Dallas, through its wholly-owned subsidiary, CommunityBank of Texas, N.A., or the Bank. The Bank provides relationship-driven commercial banking products and services primarily to small and mid-sized businesses and professionals with operations within the Bank’s markets. The Bank operates under a national charter and therefore is subject to regulation by the Office of the Comptroller of the Currency, or OCC, and the Federal Deposit Insurance Corporation, or FDIC. The Company is subject to regulation by the Board of Governors of the Federal Reserve.

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements include the accounts of the Company and the Bank. All material intercompany balances and transactions have been eliminated in consolidation.

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, but do not include all the information and footnotes required for complete consolidated financial statements. In management’s opinion, these interim unaudited condensed consolidated financial statements include all adjustments of a normal recurring nature necessary for a fair statement of the Company’s consolidated financial position at March 31, 2019 and December 31, 2018, consolidated results of operations for the three months ended March 31, 2019 and 2018, consolidated shareholders’ equity for the three months ended March 31, 2019 and 2018 and consolidated cash flows for the three months ended March 31, 2019 and 2018.

Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end and the results for the interim periods shown in this report are not necessarily indicative of results to be expected for the full year due in part to global economic and financial market conditions, interest rates, access to sources of liquidity, market competition and interruptions of business processes. These interim unaudited condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes thereto for the year ended December 31, 2018 included within our Annual Report on Form 10-K.

Reclassification— Within interest income, equity investment income for 2018 has been reclassified from federal funds and other interest-earning assets to a separate line and within interest expense, repurchase agreements and FHLB advance expense have been combined and notes payable and junior subordinated debt have also been combined. These reclassifications were made to conform to the 2019 financial statement presentation in the consolidated statements of income.

Accounting Standards Recently Adopted

The Company adopted Accounting Standards Update, or ASU 2016-02, Leases (Topic 842) on January 1, 2019, using the effective date as the date of initial adoption. The Company elected to apply certain practical expedients for transition, and under those expedients the Company did not reassess prior accounting decisions regarding the identification, classification and initial direct costs for leases existing at the effective date. The Company also elected to use hindsight in determining lease term when considering options to extend the lease and excluded short-term leases (defined as lease terms of 12 months or less). The Company elected to separate non-lease components from lease components in its application of ASU 2016-02. At adoption, the Company recorded right-of-use assets totaling $13.2 million, which represented the Company’s right to use, or control the use of, a specified assets for their lease terms and the Company recorded lease liabilities totaling $15.5 million, which represented the Company’s liability to make lease payments under these leases. Accrued lease obligations and lease incentive liabilities totaling $2.3 million that were in other liabilities at December 31, 2018 were reversed as part of the adoption. The ASU 2016-02 standard applied to all leases existing at the date of initial adoption. The Company’s financial statements and related footnotes were not updated for ASU 2016-02 for dates and periods before the date of adoption. See Note 16.

Accounting Standards Not Yet Adopted

ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available for sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 will be effective on January 1, 2020.

The Company is in the process of developing its process and methodology for implementing ASU 2016-13, with the assistance of an outside consultant. Existing technology is being adapted to conform to the requirements of ASU 2016-13. The adoption of ASU 2016-13 will require changes to the Company’s accounting policies and disclosures for credit losses on financial instruments. The Company is continuing to evaluate the impact of this pronouncement on the allowance for credit losses and related future provisions.

Cash Flow Reporting

Cash, cash equivalents and restricted cash include cash, interest‑bearing and noninterest‑bearing transaction accounts with other banks and federal funds sold. The Bank is required to maintain regulatory reserves with the Federal Reserve Bank and the reserve requirements for the Bank were $16.2 million and $18.5 million at March 31, 2019 and December 31, 2018, respectively. Additionally, as of March 31, 2019 and December 31, 2018, the Company had $1.6 million in cash collateral used in our interest rate swap transactions.

Supplemental disclosures of cash flow information are as follows for the periods indicated below:


	Three Months Ended March 31,
(Dollars in thousands)	2019		2018
Supplemental disclosures of cash flow information:
Cash paid for taxes	$	—	$	—
Cash paid for interest on deposits and repurchase agreements		3,536		1,960
Cash paid for interest on junior subordinated debt		63		87

Supplemental disclosures of non-cash flow information:
Dividends accrued		1,268		10
Operating lease right-to-use asset obtained in exchange for lease liabilities		13,208		—
Repossessed real estate and other assets		41		—

DEBT SECURITIES

3 Months Ended

Mar. 31, 2019

DEBT SECURITIES.

DEBT SECURITIES

NOTE 2: DEBT SECURITIES

The amortized cost and fair values of investments in debt securities as of the dates shown below were as follows:


			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses		Fair Value
March 31, 2019
Debt securities available for sale:
State and municipal securities	$	54,854	$	811	$	(194)	$	55,471
U.S. agency securities:
Debt securities		17,315		—		(255)		17,060
Collateralized mortgage obligations		66,230		158		(603)		65,785
Mortgage-backed securities		89,856		490		(1,116)		89,230
Other securities		1,135		—		(27)		1,108
Total	$	229,390	$	1,459	$	(2,195)	$	228,654
Debt securities held to maturity:
Mortgage-backed securities	$	30	$	2	$	—	$	32


			Gross		Gross
	Amortized		Unrealized		Unrealized
(Dollars in thousands)	Cost		Gains		Losses		Fair Value
December 31, 2018
Debt securities available for sale:
State and municipal securities	$	57,972	$	345	$	(626)	$	57,691
U.S. agency securities:
Debt securities		17,315		—		(434)		16,881
Collateralized mortgage obligations		66,438		98		(1,122)		65,414
Mortgage-backed securities		90,845		230		(2,216)		88,859
Other securities		1,129		—		(41)		1,088
Total	$	233,699	$	673	$	(4,439)	$	229,933
Debt securities held to maturity:
Mortgage-backed securities	$	31	$	1	$	—	$	32

The amortized cost and estimated fair value of debt securities, by contractual maturities, as of the dates shown below were as follows:


	Debt Securities Available for Sale				Debt Securities Held to Maturity
	Amortized		Fair		Amortized		Fair
(Dollars in thousands)	Cost		Value		Cost		Value
March 31, 2019
Amounts maturing in:
1 year or less	$	3,338	$	3,326	$	—	$	—
1 year through 5 years		20,086		19,846		—		—
5 years through 10 years		13,958		14,061		—		—
After 10 years		192,008		191,421		30		32
	$	229,390	$	228,654	$	30	$	32
December 31, 2018
Amounts maturing in:
1 year or less	$	3,224	$	3,188	$	—	$	—
1 year through 5 years		22,784		22,370		—		—
5 years through 10 years		13,127		13,062		—		—
After 10 years		194,564		191,313		31		32
	$	233,699	$	229,933	$	31	$	32

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Debt securities with a carrying amount of $358,000 were sold in the three months ended March 31, 2019. There were no securities sold in the three months ended March 31, 2018. At March 31, 2019 and December 31, 2018, debt securities with a carrying amount of approximately $57.5 million and $49.9 million, respectively, were pledged to secure public deposits, repurchase agreements and for other purposes required or permitted by law.

The Company held 187 debt securities at March 31, 2019 and 167 debt securities at December 31, 2018, respectively, that were in a gross unrealized loss position for 12 months or more as illustrated in the table below. The unrealized losses are attributable primarily to changes in market interest rates relative to those available when the debt securities were acquired. The fair value of these debt securities is expected to recover as the debt securities reach their maturity or re‑pricing date, or if changes in market rates for such investments decline. Management does not believe that any of the debt securities are impaired due to reasons of credit quality. Accordingly, as of March 31, 2019 and December 31, 2018, management believes the unrealized losses detailed in the table below are temporary and no impairment loss has been recorded in the Company’s condensed consolidated statements of income for the three months ended March 31, 2019 and 2018.

Debt securities with unrealized losses as of the dates shown below, aggregated by category and the length of time were as follows:



	Less Than Twelve Months				Twelve Months or More
			Gross				Gross
	Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses
March 31, 2019
Debt securities available for sale:
State and municipal securities	$	674	$	(3)	$	11,792	$	(191)
U.S. agency securities:
Debt securities		—		—		17,060		(255)
Collateralized mortgage obligations		—		—		50,194		(603)
Mortgage-backed securities		196		—		56,261		(1,116)
Other securities		—		—		1,108		(27)
	$	870	$	(3)	$	136,415	$	(2,192)
December 31, 2018
Debt securities available for sale:
State and municipal securities	$	20,892	$	(324)	$	6,584	$	(302)
U.S. agency securities:
Debt securities		—		—		16,882		(434)
Collateralized mortgage obligations		8,854		(81)		46,157		(1,041)
Mortgage-backed securities		21,745		(368)		46,183		(1,848)
Other securities		—		—		1,088		(41)
	$	51,491	$	(773)	$	116,894	$	(3,666)

EQUITY INVESTMENTS

3 Months Ended

Mar. 31, 2019

EQUITY INVESTMENTS

EQUITY INVESTMENTS

NOTE 3: EQUITY INVESTMENTS

The Company’s unconsolidated investments that are considered equity securities as they represent ownership interests such as common or preferred stock were as follows for the dates indicated below.



(Dollars in thousands)	March 31, 2019		December 31, 2018
Federal Reserve stock	$	9,271	$	9,271
Federal Home Loan Bank stock		3,289		1,250
The Independent Bankers Financial Corporation stock		141		141
Community Reinvestment Act investments		2,364		2,364
	$	15,065	$	13,026

Banks that are members of the Federal Home Loan Bank System, or FHLB, are required to maintain a stock investment in the FHLB calculated as a percentage of aggregate outstanding mortgages, outstanding FHLB advances and other financial instruments. Banks that are members of the Federal Reserve System are required to annually subscribe to Federal Reserve Bank stock in specific ratios to the Bank’s equity. Although FHLB and Federal Reserve Bank Stock are considered equity securities, they do not have readily determinable fair values because ownership is restricted and they lack a market. These investments can be sold back only at their par value of $100 per share and can only be sold to the Federal Home Loan Banks or Federal Reserve Banks or to another member institution. In addition, the equity ownership rights are more limited than would be the case for a public company, because of the oversight role exercised by regulators in the process of budgeting and approving dividends. As a result, these investments are carried at cost and evaluated for impairment.

The Company also holds an investment in the stock of The Independent Bankers Financial Corporation, or TIB. This investment has limited marketability. As a result, these investments are carried at cost and evaluated for impairment. The Company has investments in two private investment funds and a limited partnership. These investments are qualified Community Reinvestment Act, or CRA, investments under the Small Business Investment Company program of the Small Business Administration, or SBA. There are limited to no observable price changes in orderly transactions for identical investments or similar investments from the same issuers that are actively traded and as a result, these investments are stated at cost. At March 31, 2019 and December 31, 2018, the Company had $3.0 million and $3.0 million, respectively, in outstanding unfunded commitments to these funds, which are subject to call.

The Company’s equity investments are evaluated for impairment based on an assessment of qualitative indicators. Impairment indicators to be considered include, but are not limited to (i) a significant deterioration in the earnings, performance, credit rating, asset quality or business prospects of the investee, (ii) a significant adverse change in the regulatory, economic or technological environment of the investee, (iii) a significant adverse change in the general market conditions of either the geographical area or the industry in which the investee operates, (iv) a bona fide offer to purchase, an offer by the investee to sell, or completed auction process for the same or similar investment for an amount less than the carrying amount of that investment. There were no such qualitative indicators as of March 31, 2019.

LOANS

3 Months Ended

Mar. 31, 2019

LOANS

LOANS

NOTE 4: LOANS

Loans by loan class as of the dates shown below were as follows:


(Dollars in thousands)	March 31, 2019			December 31, 2018
Commercial and industrial	$	559,882	21.9%	$	519,779	21.2%
Real estate:
Commercial real estate		811,742	31.8%		795,733	32.4%
Construction and development		572,861	22.5%		515,533	21.0%
1-4 family residential		281,502	11.0%		282,011	11.5%
Multi-family residential		213,582	8.4%		221,194	9.0%
Consumer		39,072	1.5%		39,421	1.6%
Agriculture		8,915	0.4%		11,076	0.5%
Other		64,215	2.5%		68,382	2.8%
Total gross loans		2,551,771	100.0%		2,453,129	100.0%
Less deferred loan fees and unearned discounts		(6,210)			(6,306)
Less allowance for loan loss		(24,643)			(23,693)
Less loans held for sale		(852)			—
Loans, net	$	2,520,066		$	2,423,130

Accrued interest receivable for loans is $7.9 million and $6.8 million at March 31, 2019 and December 31, 2018, respectively, and is included in other assets in the condensed consolidated balance sheets.

From time to time, the Company will acquire and dispose of interests in loans under participation agreements with other financial institutions. Loan participations purchased and sold during the three months ending March 31, 2019 and 2018, by loan class, were as follows:


	Participations		Participations
	Purchased		Sold
	During the		During the
(Dollars in thousands)	Period		Period
March 31, 2019
Commercial real estate	$	1,256	$	—

March 31, 2018
Commercial and industrial	$	7,000	$	—
Commercial real estate		—		7,500
	$	7,000	$	7,500

The Company participates in the SBA loan program. When advantageous, the Company will sell the guaranteed portions of these loans with servicing retained. SBA loans that were sold with servicing retained during the three months ended March 31, 2019 and 2018 totaled $818,000 and $237,000, respectively.

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

LOAN PERFORMANCE

3 Months Ended

Mar. 31, 2019

LOAN PERFORMANCE

LOAN PERFORMANCE

NOTE 5: LOAN PERFORMANCE

Nonaccrual loans, segregated by loan class, as of the dates shown below were as follows:


	March 31,		December 31,
(Dollars in thousands)	2019		2018
Commercial and industrial	$	1,390	$	1,317
Real estate:
Commercial real estate		862		1,517
1-4 family residential		635		656
Other		47		—
Total	$	2,934	$	3,490

Interest income that would have been earned under the original terms of the nonaccrual loans was $48,000 and $99,000 for the three months ended March 31, 2019 and 2018, respectively.

The following is an aging analysis of the Company’s past due loans, segregated by loan class, as of the dates shown below:

90 days or

90 days

30 to 59 days

60 to 89 days

greater

Total past

Total current

past due and

(Dollars in thousands)

past due

due

loans

Total loans

still accruing

March 31, 2019

Commercial and industrial

468