Real Estate Loans. Our portfolio of real estate loans includes loans secured
by residential 1-4 family, non-farm/non-residential, agricultural, construction/land
development, multifamily residential properties and other land loans. Non-farm/non-residential
loans include those secured by real estate mortgages on owner-occupied commercial
buildings of various types, leased commercial, retail and office buildings,
hospitals, nursing and other medical facilities, hotels and motels, and other
business and industrial properties. Agricultural real estate loans include loans
secured by farmland and related improvements, including some loans guaranteed
by the Farm Service Agency. Real estate construction/land development loans
include loans secured by vacant land, loans to finance land development or construction
of industrial, commercial, residential or farm buildings or additions or alterations
to existing structures. Included in our residential 1-4 family loans are home
equity lines of credit.
We offer a variety of real estate loan products that are generally amortized
over five to thirty years, payable in monthly or other periodic installments
of principal and interest, and due and payable in full (unless renewed) at a
balloon maturity generally within one to seven years. Certain loans may be structured
as term loans with adjustable interest rates (adjustable daily, monthly, semi-annually,
annually, or at other regular adjustment intervals usually not to exceed five
years). A substantial portion of our loans, including most of our real estate
loans, have adjustable interest rates and many of such adjustable rate loans
have established “floor” and “ceiling” interest rates.
Residential 1-4 family loans are underwritten primarily based on the borrower’s
ability to repay, including prior credit history, and the value of the collateral.
Other real estate loans are underwritten based on the ability of the property,
in the case of income producing property, or the borrower’s business to
generate sufficient cash flow to amortize the debt. Secondary emphasis is placed
upon collateral value, financial strength of any guarantors and other factors.
Loans collateralized by real estate have generally been originated with loan-to-appraised-value
(“LTV”) ratios of not more than 89% for residential 1-4 family,
85% for other residential and other improved property, 80% for construction
loans secured by commercial, multifamily and other non-residential properties,
75% for land development loans and 65% for raw land loans. We typically require
mortgage title insurance in the amount of the loan and hazard insurance on improvements.
Documentation requirements vary depending on loan size, type, degree of risk,
complexity and other relevant factors.
Consumer Loans. Our portfolio of consumer loans generally includes loans to
individuals for household, family and other personal expenditures. Proceeds
from such loans are used to, among other things, fund the purchase of automobiles,
recreational vehicles, boats, mobile homes and for other similar purposes. These
consumer loans are generally collateralized and have terms typically ranging
up to 72 months, depending upon the nature of the collateral, size of the loan,
and other relevant factors.
Consumer loans generally have higher interest rates. However, such loans pose
additional risks of collectability and loss when compared to certain other types
of loans. The borrower’s ability to repay is of primary importance in
the underwriting of consumer loans.
Commercial and Industrial Loans and Leases. Our commercial and industrial loan
portfolio consists of loans for commercial, industrial and professional purposes
including loans to fund working capital requirements (such as inventory, floor
plan and receivables financing), purchases of machinery and equipment and other
purposes. We offer a variety of commercial and industrial loan arrangements,
including term loans, balloon loans and lines of credit, including some loans
guaranteed by the Small Business Administration, with the purpose and collateral
supporting a particular loan determining its structure. These loans are offered
to businesses and professionals for short and medium terms on both a collateralized
and uncollateralized basis. As a general practice, we obtain as collateral a
lien on furniture, fixtures, equipment, inventory, receivables or other assets.
In 2014 we formed the Corporate Loan Specialties Group (“CLSG”)
for the purpose of acquiring Shared National Credits (“SNC”). SNC
generally include syndicated loans and loan commitments, letters of credit,
commercial leases, and other forms of credit.
We offer an array of deposit products consisting of non-interest bearing checking
accounts, interest bearing transaction accounts, business sweep accounts, savings
accounts, money market accounts, time deposits, including access to products
offered through the various CDARS® programs, and individual retirement accounts.
Rates paid on such deposits vary among banking markets and deposit categories
due to different terms and conditions, individual deposit size, services rendered
and rates paid by competitors on similar deposit products. We act as depository
for a number of state and local governments and government agencies or instrumentalities.
Such public funds deposits are often subject to competitive bid and in many
cases must be secured by pledging a portion of our investment securities or
a letter of credit.
Mortgage Lending. We offer a broad array of residential mortgage products including
long-term fixed rate and variable rate loans which are sold on a servicing-released
basis in the secondary mortgage market. These loans are originated primarily
through our larger banking offices located in Arkansas, Texas, Georgia, North
Carolina, Florida and in certain of our other acquired offices. In addition
to long-term secondary market loans, we offer a small number of fixed rate loan
products which balloon periodically, typically every eight to nine years. We
retain these loans in our loan portfolio.
Treasury Management Services. We offer treasury management services which are
designed to provide a high level of specialized support to the treasury operations
of business and public funds customers. Treasury management has four basic functions:
collection, disbursement, management of cash and information reporting. Our
treasury management services include automated clearing house services (e.g.
direct deposit, direct payment and electronic cash concentration and disbursement),
wire transfer, zero balance accounts, current and prior day transaction reporting,
wholesale lockbox services, remote deposit capture services, automated credit
line transfer, investment sweep accounts, reconciliation services, positive
pay services, and account analysis.
Online and Mobile Banking. We offer online banking services for both personal
and business customers. Through this service customers can access their account
information, pay bills, send funds electronically to other individuals, transfer
funds, view images of cancelled checks, change addresses, issue stop payment
requests, receive detailed statements, receive account alerts electronically,
make mobile deposits and handle other banking business electronically from a
laptop, desktop, tablet or smartphone. Businesses are offered more advanced
features which allow them to handle most treasury management functions electronically
and access their account information on a more timely basis, including having
the ability to download transaction history into QuickBooks® for instant
reconciliation.