Loans | NOTE 3—LOANS Loans at June 30, 2017 and December 31, 2016 were as follows: June 30, December 31, Loans that are not PCI loans Construction and land development $ 497,940 $ 489,562 Commercial real estate: Nonfarm, nonresidential 550,112 458,569 Other 32,307 38,571 Residential real estate: Closed-end 1-4 family 346,744 254,474 Other 156,400 150,515 Commercial and industrial 422,823 376,476 Consumer and other 3,936 3,359 Loans before net deferred loan fees 2,010,262 1,771,526 Deferred loan fees, net (889 ) (793 ) Total loans that are not PCI loans 2,009,373 1,770,733 Total PCI loans 2,582 2,859 Allowance for loan losses (18,689 ) (16,553 ) Total loans, net of allowance for loan losses $ 1,993,266 $ 1,757,039 The following table presents the activity in the allowance for loan losses by portfolio segment for the three month periods ended June 30, 2017 and 2016: Construction Commercial Residential Commercial Consumer Total Three Months Ended June 30, 2017 Allowance for loan losses: Beginning balance $ 3,837 $ 4,659 $ 2,672 $ 6,885 $ 52 $ 18,105 Provision for loan losses (41 ) 352 255 9 (2 ) 573 Loans charged-off — — (1 ) — (2 ) (3 ) Recoveries — — 13 — 1 14 Total ending allowance balance $ 3,796 $ 5,011 $ 2,939 $ 6,894 $ 49 $ 18,689 Three Months Ended June 30, 2016 Allowance for loan losses: Beginning balance $ 3,378 $ 3,564 $ 1,800 $ 3,875 $ 59 $ 12,676 Provision for loan losses 246 301 248 780 (8 ) 1,567 Loans charged-off — — — — (4 ) (4 ) Recoveries — — 12 — 2 14 Total ending allowance balance $ 3,624 $ 3,865 $ 2,060 $ 4,655 $ 49 $ 14,253 The following table presents the activity in the allowance for loan losses by portfolio segment for the six-month periods ended June 30, 2017 and 2016: Construction Commercial Residential Commercial Consumer Total Six Months Ended June 30, 2017 Allowance for loan losses: Beginning balance $ 3,776 $ 4,266 $ 2,398 $ 6,068 $ 45 $ 16,553 Provision for loan losses 20 745 517 1,126 20 2,428 Loans charged-off — — (1 ) (300 ) (25 ) (326 ) Recoveries — — 25 — 9 34 Total ending allowance balance $ 3,796 $ 5,011 $ 2,939 $ 6,894 $ 49 $ 18,689 Six Months Ended June 30, 2016 Allowance for loan losses: Beginning balance $ 3,186 $ 3,146 $ 1,861 $ 3,358 $ 36 $ 11,587 Provision for loan losses 438 719 159 1,362 25 2,703 Loans charged-off — — — (65 ) (15 ) (80 ) Recoveries — — 40 — 3 43 Total ending allowance balance $ 3,624 $ 3,865 $ 2,060 $ 4,655 $ 49 $ 14,253 As of June 30, 2017 and December 31, 2016, there was $11 and $0 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 June 30, 2017 and December 31, 2016. For purposes of this disclosure, recorded investment in loans excludes accrued interest receivable and deferred loan fees, net due to immateriality. Construction Commercial Residential Commercial Consumer Total June 30, 2017 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 933 $ — $ 933 Collectively evaluated for impairment 3,796 5,011 2,928 5,961 49 17,745 Purchased credit-impaired loans — — 11 — — 11 Total ending allowance balance $ 3,796 $ 5,011 $ 2,939 $ 6,894 $ 49 $ 18,689 Loans: Individually evaluated for impairment $ 2,250 $ 1,451 $ 639 $ 3,888 $ 7 $ 8,235 Collectively evaluated for impairment 495,690 580,968 502,505 418,935 3,929 2,002,027 Purchased credit-impaired loans — 395 192 1,995 — 2,582 Total ending loans balance $ 497,940 $ 582,814 $ 503,336 $ 424,818 $ 3,936 $ 2,012,844 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 Loans collectively evaluated for impairment reported at June 30, 2017 include certain acquired loans. At June 30, 2017, these non-PCI loans had a carrying value of $59,892, comprised of contractually unpaid principal totaling $61,550 and discounts totaling $1,658. Management evaluated these loans for credit deterioration since acquisition and determined that $6 in allowance for loan losses was necessary at June 30, 2017. The following table presents information related to impaired loans by class of loans as of June 30, 2017 and December 31, 2016: Unpaid Recorded Allowance for June 30, 2017 With no allowance recorded: Construction and land development $ 2,250 $ 2,250 $ — Commercial real estate: Nonfarm, nonresidential 3,037 1,451 — Residential real estate: Closed-end 1-4 family 399 399 — Other 248 240 — Commercial and industrial 800 800 — Consumer and other 7 7 — Subtotal 6,741 5,147 — With an allowance recorded: Commercial and industrial 3,088 3,088 933 Subtotal 3,088 3,088 933 Total $ 9,829 $ 8,235 $ 933 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 family 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 and six months ended June 30, 2017 and 2016: Three Months Ended June 30, Six Months Ended June 30, Average Recorded Investment 2017 2016 2017 2016 With no allowance recorded: Construction and land development $ 2,250 $ 121 $ 1,125 $ 510 Commercial real estate: Nonfarm, nonresidential 2,242 1,094 3,185 1,248 Residential real estate: Closed-end 1-4 family 604 413 1,202 574 Other 181 754 151 733 Commercial and industrial 568 263 705 142 Consumer and other 2 30 1 15 Subtotal 5,847 2,675 6,369 3,222 With an allowance recorded: Commercial and industrial $ 2,855 $ 163 $ 2,720 $ 125 Subtotal 2,855 163 2,720 125 Total $ 8,702 $ 2,838 $ 9,089 $ 3,347 The impact on net interest income for these loans was not material to the Company’s results of operations for the three and six months ended June 30, 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 June 30, 2017 and December 31, 2016: Nonaccrual Loans Past Due June 30, 2017 Commercial real estate: Nonfarm, nonresidential $ 835 $ — Residential real estate: Closed-end 1-4 family 39 425 Other 118 — Commercial and industrial 2,374 108 Total $ 3,366 $ 533 December 31, 2016 Construction and land development $ — $ 1,950 Commercial real estate: Nonfarm, nonresidential 835 — Residential real estate: Closed-end 1-4 family — 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 June 30, 2017 and December 31, 2016 by class of loans: 30-59 60-89 Greater Nonaccrual Total Loans PCI Total June 30, 2017 Construction and land development $ 210 $ — $ — $ — $ 210 $ 497,730 $ — $ 497,940 Commercial real estate: Nonfarm, nonresidential — — — 835 835 549,277 395 550,507 Other — — — — — 32,307 — 32,307 Residential real estate: Closed-end 1-4 family 367 1,274 425 39 2,105 344,639 192 346,936 Other — — — 118 118 156,282 — 156,400 Commercial and industrial 237 11 108 2,374 2,730 420,093 1,995 424,818 Consumer and other 13 — — — 13 3,923 — 3,936 $ 827 $ 1,285 $ 533 $ 3,366 $ 6,011 $ 2,004,251 $ 2,582 $ 2,012,844 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 family 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: 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 June 30, 2017 and December 31, 2016: Pass Special Substandard Total June 30, 2017 Construction and land development $ 495,690 $ — $ 2,250 $ 497,940 Commercial real estate: Nonfarm, nonresidential 538,447 10,098 1,962 550,507 Other 32,307 — — 32,307 Residential real estate: Closed-end 1-4 family 345,863 — 1,073 346,936 Other 155,270 — 1,130 156,400 Commercial and industrial 403,818 15,475 5,525 424,818 Consumer and other 3,924 5 7 3,936 $ 1,975,319 $ 25,578 $ 11,947 $ 2,012,844 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 family 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 June 30, 2017 and December 31, 2016, the Company’s loan portfolio contains one loan for $698 that has been modified in a troubled debt restructuring. |