Loans | NOTE 3—LOANS Loans at March 31, 2018 and December 31, 2017 were as follows: March 31, December 31, Loans that are not PCI loans Construction and land development $ 523,660 $ 494,818 Commercial real estate: Nonfarm, nonresidential 673,497 628,554 Other 43,110 49,684 Residential real estate: Closed-end 1-4 430,467 407,695 Other 172,216 169,640 Commercial and industrial 462,954 502,006 Consumer and other 3,899 3,781 Loans before net deferred loan fees 2,309,803 2,256,178 Deferred loan fees, net (2,225 ) (1,963 ) Total loans that are not PCI loans 2,307,578 2,254,215 Total PCI loans 2,440 2,393 Allowance for loan losses (21,738 ) (21,247 ) Total loans, net of allowance for loan losses $ 2,288,280 $ 2,235,361 The following table presents the activity in the allowance for loan losses by portfolio segment for the three month periods ended March 31, 2018 and 2017: Construction Commercial Residential Commercial Consumer Total Three Months Ended March 31, 2018 Allowance for loan losses: Beginning balance $ 3,802 $ 5,981 $ 3,834 $ 7,587 $ 43 $ 21,247 Provision for loan losses 582 (106 ) (241 ) 328 10 573 Loans charged-off (39 ) — (7 ) (49 ) (11 ) (106 ) Recoveries — — 19 — 5 24 Total ending allowance balance $ 4,345 $ 5,875 $ 3,605 $ 7,866 $ 47 $ 21,738 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 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, 2018 and December 31, 2017. 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 March 31, 2018 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 543 $ — $ 543 Collectively evaluated for impairment 4,345 5,875 3,605 7,317 47 21,189 Construction Commercial Residential Commercial Consumer Total Purchased credit-impaired loans — — — 6 — 6 Total ending allowance balance $ 4,345 $ 5,875 $ 3,605 $ 7,866 $ 47 $ 21,738 Loans: Individually evaluated for impairment $ 165 $ — $ 694 $ 2,466 $ — $ 3,325 Collectively evaluated for impairment 523,495 716,607 601,989 460,488 3,899 2,306,478 Purchased credit-impaired loans — 371 96 1,973 — 2,440 Total ending loans balance $ 523,660 $ 716,978 $ 602,779 $ 464,927 $ 3,899 $ 2,312,243 December 31, 2017 Allowance for loan losses: Ending allowance balance attributable to loans: Individually evaluated for impairment $ — $ — $ — $ 879 $ — $ 879 Collectively evaluated for impairment 3,802 5,981 3,834 6,708 43 20,368 Purchased credit-impaired loans — — — — — — Total ending allowance balance $ 3,802 $ 5,981 $ 3,834 $ 7,587 $ 43 $ 21,247 Loans: Individually evaluated for impairment $ 217 $ — $ 834 $ 3,090 $ — $ 4,141 Collectively evaluated for impairment 494,601 678,238 576,501 498,916 3,781 2,252,037 Purchased credit-impaired loans — 380 105 1,908 — 2,393 Total ending loans balance $ 494,818 $ 678,618 $ 577,440 $ 503,914 $ 3,781 $ 2,258,571 Loans collectively evaluated for impairment reported at March 31, 2018 include certain acquired loans. At March 31, 2018, these non-PCI non-PCI The following table presents information related to impaired loans by class of loans as of March 31, 2018 and December 31, 2017: Unpaid Recorded Allowance for March 31, 2018 With no allowance recorded: Construction and land development $ 203 $ 165 $ — Commercial real estate: Nonfarm, nonresidential — — — Residential real estate: Closed-end 1-4 581 581 — Other 113 113 — Commercial and industrial 92 92 — Consumer and other — — — Subtotal 989 951 — With an allowance recorded: Commercial and industrial 2,374 2,374 543 Subtotal 2,374 2,374 543 Total $ 3,363 $ 3,325 $ 543 December 31, 2017 With no allowance recorded: Construction and land development $ 217 $ 217 $ — Unpaid Recorded Allowance for Residential real estate: Closed-end 1-4 14 14 — Other 820 820 — Commercial and industrial 108 108 — Subtotal 1,159 1,159 — With an allowance recorded: Commercial and industrial 2,982 2,982 879 Subtotal 2,982 2,982 879 Total $ 4,141 $ 4,141 $ 879 The following table presents the average recorded investment of impaired loans by class of loans for the three months ended March 31, 2018 and 2017: Three Months Ended March 31, Average Recorded Investment 2018 2017 With no allowance recorded: Construction and land development $ 367 $ — Commercial real estate: Nonfarm, nonresidential — 4,128 Residential real estate: Closed-end 1-4 420 1,799 Other 372 120 Commercial and industrial 626 — Subtotal 1,785 6,047 With an allowance recorded: Commercial and industrial $ 1,785 $ 2,585 Subtotal 1,785 2,585 Total $ 3,570 $ 8,632 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, 2018 and 2017. 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, 2018 and December 31, 2017: Nonaccrual Loans Past Due March 31, 2018 Construction and land development $ 165 $ — Residential real estate: Closed-end 1-4 581 — Other 113 12 Commercial and industrial 2,466 166 Total $ 3,325 $ 178 December 31, 2017 Residential real estate: Closed-end 1-4 $ 257 $ 14 Other 114 — Commercial and industrial 2,466 191 Total $ 2,837 $ 205 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, 2018 and December 31, 2017 by class of loans: 30-59 60-89 Greater Nonaccrual Total Loans PCI Total March 31, 2018 Construction and land development $ 473 $ — $ — $ 165 $ 638 $ 523,022 $ — $ 523,660 Commercial real estate: Nonfarm, nonresidential — — — — — 673,497 371 673,868 Other 5 — — — 5 43,105 — 43,110 Residential real estate: Closed-end 1-4 610 1,060 — 581 2,251 428,216 96 430,563 Other 116 — 12 113 241 171,975 — 172,216 Commercial and industrial 440 195 166 2,466 3,267 459,687 1,973 464,927 Consumer and other — 200 — — 200 3,699 — 3,899 $ 1,644 $ 1,455 $ 178 $ 3,325 $ 6,602 $ 2,303,201 $ 2,440 $ 2,312,243 December 31, 2017 Construction and land development $ 1,918 $ 136 $ — $ — $ 2,054 $ 492,764 $ — $ 494,818 Commercial real estate: Nonfarm, nonresidential — — — — — 628,554 380 628,934 Other — — — — — 49,681 — 49,684 Residential real estate: Closed-end 1-4 — — 14 257 271 407,424 105 407,800 Other 146 719 — 114 979 168,661 — 169,640 Commercial and industrial 532 27 191 2,466 3,216 498,790 1,908 503,914 Consumer and other — — — — — 3,781 — 3,781 $ 2,596 $ 882 $ 205 $ 2,837 $ 6,520 $ 2,249,658 $ 2,393 $ 2,258,571 Credit Quality Indicators: 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, 2018 and December 31, 2017: Pass Special Substandard Total March 31, 2018 Construction and land development $ 519,831 $ 3,664 $ 165 $ 523,660 Commercial real estate: Nonfarm, nonresidential 658,683 11,098 4,087 673,868 Other 42,730 — 380 43,110 Residential real estate: Closed-end 1-4 426,856 — 3,707 430,563 Other 170,467 — 1,749 172,216 Commercial and industrial 448,395 9,003 7,529 464,927 Consumer and other 3,896 3 — 3,899 $ 2,270,858 $ 23,768 $ 17,617 $ 2,312,243 Pass Special Substandard Total December 31, 2017 Construction and land development $ 494,601 $ — $ 217 $ 494,818 Commercial real estate: Nonfarm, nonresidential 609,458 12,602 6,874 628,934 Other 49,303 — 381 49,684 Residential real estate: 1-4 404,832 615 2,353 407,800 Other 167,886 — 1,754 169,640 Commercial and industrial 485,363 10,350 8,201 503,914 Consumer and other 3,777 4 — 3,781 $ 2,215,220 $ 23,571 $ 19,780 $ 2,258,571 Troubled Debt Restructurings As of March 31, 2018 and December 31, 2017, the Company’s loan portfolio contains one loan that has been modified in a troubled debt restructuring with a balance of $165 and $608, respectively. During the first quarter of 2018 one loan was added as a troubled debt restructuring with a balance of $165, and the loan that was previously reported as a troubled debt restructuring at December 31, 2017 was paid down by $575 by the borrower, and the remaining $33 was charged off. |