Loans | NOTE 3—LOANS Loans at March 31, 2017 and December 31, 2016 were as follows: March 31, December 31, Loans that are not PCI loans Construction and land development $ 499,272 $ 489,562 Commercial real estate: Nonfarm, nonresidential 509,060 458,569 Other 39,690 38,571 Residential real estate: Closed-end 1-4 299,439 254,474 Other 151,530 150,515 Commercial and industrial 445,398 376,476 Consumer and other 3,853 3,359 Loans before net deferred loan fees 1,948,242 1,771,526 Deferred loan fees, net (971 ) (793 ) Total loans that are not PCI loans 1,947,271 1,770,733 Total PCI loans 2,444 2,859 Allowance for loan losses (18,105 ) (16,553 ) Total loans, net of allowance for loan losses $ 1,931,610 $ 1,757,039 The following table presents the activity in the allowance for loan losses by portfolio segment for the three month periods ended March 31, 2017 and 2016: Construction Commercial Residential Commercial Consumer Total Three Months Ended March 31, 2017 Allowance for loan losses: Beginning balance $ 3,776 $ 4,266 $ 2,398 $ 6,068 $ 45 $ 16,553 Provision for loan losses 61 393 262 1,117 22 1,855 Loans charged-off — — — (300 ) (23 ) (323 ) Recoveries — — 12 — 8 20 Total ending allowance balance $ 3,837 $ 4,659 $ 2,672 $ 6,885 $ 52 $ 18,105 Three Months Ended March 31, 2016 Allowance for loan losses: Beginning balance $ 3,186 $ 3,146 $ 1,861 $ 3,358 $ 36 $ 11,587 Provision for loan losses 192 418 (89 ) 582 33 1,136 Loans charged-off — — — (65 ) (11 ) (76 ) Recoveries — — 28 — 1 29 Total ending allowance balance $ 3,378 $ 3,564 $ 1,800 $ 3,875 $ 59 $ 12,676 As of March 31, 2017 and December 31, 2016, there was $1 and $0, respectively, in allowance for loan losses for PCI loans. The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2017 and December 31, 2016. For purposes of this disclosure, recorded investment in loans excludes accrued interest receivable and loan fees, net due to immateriality. Construction Commercial Residential Commercial Consumer Total March 31, 2017 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 739 $ — $ 739 Collectively evaluated for impairment 3,837 4,659 2,672 6,145 52 17,365 Purchased credit-impaired loans — — — 1 — 1 Total ending allowance balance $ 3,837 $ 4,659 $ 2,672 $ 6,885 $ 52 $ 18,105 Loans: Individually evaluated for impairment $ — $ 2,560 $ 1,464 $ 3,192 $ — $ 7,216 Collectively evaluated for impairment 499,272 546,190 449,505 442,206 3,853 1,941,026 Purchased credit-impaired loans — 408 189 1,847 — 2,444 Total ending loans balance $ 499,272 $ 549,158 $ 451,158 $ 447,245 $ 3,853 $ 1,950,686 December 31, 2016 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 1,024 $ — $ 1,024 Collectively evaluated for impairment 3,776 4,266 2,398 5,044 45 15,529 Purchased credit-impaired loans — — — — — — Total ending allowance balance $ 3,776 $ 4,266 $ 2,398 $ 6,068 $ 45 $ 16,553 Loans: Individually evaluated for impairment $ 1,275 $ 2,836 $ 2,190 $ 3,608 $ — $ 9,909 Collectively evaluated for impairment 488,287 494,304 402,799 372,868 3,359 1,761,617 Purchased credit-impaired loans — 394 496 1,969 — 2,859 Total ending loans balance $ 489,562 $ 497,534 $ 405,485 $ 378,445 $ 3,359 $ 1,774,385 The following table presents information related to impaired loans by class of loans as of March 31, 2017 and December 31, 2016: Unpaid Recorded Allowance for March 31, 2017 With no allowance recorded: Commercial real estate: Nonfarm, nonresidential $ 4,146 $ 2,560 $ — Residential real estate: Closed-end 1-4 1,344 1,344 — Other 120 120 — Commercial and industrial 802 802 — Subtotal 6,412 4,826 — With an allowance recorded: Commercial and industrial 2,390 2,390 739 Subtotal 2,390 2,390 739 Total $ 8,802 $ 7,216 $ 739 December 31, 2016 With no allowance recorded: Construction and land development $ 1,275 $ 1,275 $ — Commercial real estate: Nonfarm, nonresidential 4,423 2,836 — Residential real estate: Closed-end 1-4 2,069 2,069 — Other 121 121 — Commercial and industrial 934 934 — Subtotal 8,822 7,235 — With an allowance recorded: Commercial and industrial 2,864 2,674 1,024 Subtotal 2,864 2,674 1,024 Total $ 11,686 $ 9,909 $ 1,024 The following table presents the average recorded investment of impaired loans by class of loans for the three months ended March 31, 2017 and 2016: Three Months Ended March 31, 2017 2016 Average Recorded Investment With no allowance recorded: Construction and land development $ — $ 898 Commercial real estate: Nonfarm, nonresidential 4,128 1,402 Residential real estate: Closed-end 1-4 1,799 736 Other 120 712 Commercial and industrial — 21 Subtotal 6,047 3,769 With an allowance recorded: Commercial and industrial $ 2,585 $ 86 Subtotal 2,585 86 Total $ 8,632 $ 3,855 The impact on net interest income for these loans was not material to the Company’s results of operations for the three months ended March 31, 2017 and 2016. The following table presents the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of March 31, 2017 and December 31, 2016: Nonaccrual Loans Past Due March 31, 2017 Construction and land development $ — $ 200 Commercial real estate: Nonfarm, nonresidential 835 — Residential real estate: Closed-end 1-4 — 388 Other 120 — Commercial and industrial 2,391 102 Total $ 3,346 $ 690 December 31, 2016 Construction and land development $ — $ 1,950 Commercial real estate: Nonfarm, nonresidential 835 — Residential real estate: Closed-end 1-4 — 452 Other 121 — Commercial and industrial 2,674 150 Total $ 3,630 $ 2,552 Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. The following table presents the aging of the recorded investment in past due loans as of March 31, 2017 and December 31, 2016 by class of loans: 30-59 60-89 Greater Nonaccrual Total Loans PCI Total March 31, 2017 Construction and land development $ — $ 641 $ 200 $ — $ 841 $ 498,431 $ — $ 499,272 Commercial real estate: Nonfarm, nonresidential 2,372 — — 835 3,207 505,853 408 509,468 Other — — — — — 39,690 — 39,690 Residential real estate: Closed-end 1-4 1,665 — 388 — 2,053 297,386 189 299,628 Other — — — 120 120 151,410 — 151,530 Commercial and industrial 154 — 102 2,391 2,647 442,751 1,847 447,245 Consumer and other 7 — — — 7 3,846 — 3,853 $ 4,198 $ 641 $ 690 $ 3,346 $ 8,875 $ 1,939,367 $ 2,444 $ 1,950,686 30-59 60-89 Greater Nonaccrual Total Loans PCI Total December 31, 2016 Construction and land development $ 380 $ — $ 1,950 $ — $ 2,330 $ 487,232 $ — $ 489,562 Commercial real estate: Nonfarm, nonresidential 664 — — 835 1,499 457,070 394 458,963 Other — — — — — 38,571 — 38,571 Residential real estate: Closed-end 1-4 428 10 452 — 890 253,584 496 254,970 Other 231 — — 121 352 150,163 — 150,515 Commercial and industrial 155 39 150 2,674 3,018 373,458 1,969 378,445 Consumer and other — — — — 3,359 — 3,359 $ 1,858 $ 49 $ 2,552 $ 3,630 $ 8,089 $ 1,763,437 $ 2,859 $ 1,774,385 Credit Quality Indicators: non-homogeneous non-homogeneous Special Mention. Substandard. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table includes PCI loans, which are included in the “Substandard” column. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of March 31, 2017 and December 31, 2016: Pass Special Substandard Total March 31, 2017 Construction and land development $ 499,272 $ — $ — $ 499,272 Commercial real estate: Nonfarm, nonresidential 502,021 — 7,447 509,468 Other 39,690 — — 39,690 Residential real estate: Closed-end 1-4 297,995 — 1,633 299,628 Other 150,521 — 1,009 151,530 Commercial and industrial 442,567 — 4,678 447,245 Consumer and other 3,853 — — 3,853 $ 1,935,919 $ — $ 14,767 $ 1,950,686 Pass Special Substandard Total December 31, 2016 Construction and land development $ 488,287 $ — $ 1,275 $ 489,562 Commercial real estate: Nonfarm, nonresidential 449,373 1,847 7,743 458,963 Other 38,571 — — 38,571 Residential real estate: 1-4 251,919 — 3,051 254,970 Other 149,504 — 1,011 150,515 Commercial and industrial 373,243 — 5,202 378,445 Consumer and other 3,359 — — 3,359 $ 1,754,256 $ 1,847 $ 18,282 $ 1,774,385 Troubled Debt Restructurings As of both March 31, 2017 and December 31, 2016, the Company’s loan portfolio contains one loan for $698 that has been modified in a troubled debt restructuring. |