LOANS (Tables)

6 Months Ended

Jun. 30, 2016

(in thousands)


	6/30/2016		12/31/2015

Commercial	$	72,450	$	55,929
Real estate construction		31,197		29,320
Real estate mortgage:
1-4 family residential		242,462		230,721
Multi-family residential		39,082		38,281
Non-farm & non-residential		180,729		183,692
Agricultural		68,236		66,782
Consumer		18,894		18,880
Other		227		516
Total	$	653,277	$	624,121

Schedule of activity in the allowance for loan losses


	Six Months Ended June 30, 2016
	(in thousands)
	Beginning								Ending
	Balance		Charge-offs		Recoveries		Provision		Balance

Commercial	$	486	$	—	$	34	$	146	$	666
Real estate Construction		411		—		13		128		552
Real estate mortgage:
1-4 family residential		2,081		(64)		7		280		2,304
Multi-family residential		458		—		4		45		507
Non-farm & non-residential		1,213		—		273		(328)		1,158
Agricultural		678		—		23		100		801
Consumer		525		(163)		70		118		550
Other		60		(499)		440		49		50
Unallocated		609		—		—		62		671
	$	6,521	$	(726)	$	864	$	600	$	7,259


	Three Months Ended June 30, 2016
	(in thousands)
	Beginning								Ending
	Balance		Charge-offs		Recoveries		Provision		Balance

Commercial	$	508	$	—	$	3	$	155	$	666
Real estate construction		876		—		7		(331)		552
Real estate mortgage:
1-4 family residential		2,176		(52)		2		178		2,304
Multi-family residential		472		—		1		34		507
Non-farm & non-residential		1,181		—		7		(30)		1,158
Agricultural		727		—		12		62		801
Consumer		531		(53)		13		59		550
Other		60		(196)		143		43		50
Unallocated		616		—		—		55		671
	$	7,147	$	(301)	$	188	$	225	$	7,259


	Six Months Ended June 30, 2015
	(in thousands)
	Beginning								Ending
	Balance		Charge-offs		Recoveries		Provision		Balance

Commercial	$	339	$	(25)	$	-	$	85	$	399
Real estate Construction		446		-		2		28		476
Real estate mortgage:
1-4 family residential		1,829		(152)		5		125		1,807
Multi-family residential		495		(94)		2		39		442
Non-farm & non-residential		813		-		-		261		1,074
Agricultural		998		(242)		12		(190)		578
Consumer		520		(163)		27		150		534
Other		32		(493)		409		107		55
Unallocated		540		-		-		45		585
	$	6,012	$	(1,169)	$	457	$	650	$	5,950


	Three Months Ended June 30, 2015
	(in thousands)
	Beginning								Ending
	Balance		Charge-offs		Recoveries		Provision		Balance

Commercial	$	340	$	-	$	-	$	59	$	399
Real estate Construction		438		-		-		38		476
Real estate mortgage:
1-4 family residential		1,825		(120)		2		100		1,807
Multi-family residential		499		(94)		2		35		442
Non-farm & non-residential		1,030		-		-		44		1,074
Agricultural		723		0		11		(156)		578
Consumer		497		(82)		12		107		534
Other		34		(251)		200		72		55
Unallocated		534		-		-		51		585
	$	5,920	$	(547)	$	227	$	350	$	5,950

Schedule of allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method


	Individually		Collectively		Purchased
As of June 30, 2016	Evaluated for		Evaluated for		Credit
(in thousands)	Impairment		Impairment		Impaired		Total
Allowance for Loan Losses:
Commercial	$	—	$	666	$	—	$	666
Real estate construction		16		536		—		552
Real estate mortgage:
1-4 family residential		127		2,177		—		2,304
Multi-family residential		—		507		—		507
Non-farm & non-residential		46		1,112		—		1,158
Agricultural		427		374		—		801
Consumer		—		550		—		550
Other		—		50		—		50
Unallocated		—		671		—		671
	$	616	$	6,643	$	—	$	7,259
Loans:
Commercial	$	—	$	72,450	$	—	$	72,450
Real estate construction		180		31,017		—		31,197
Real estate mortgage:
1-4 family residential		1,301		239,243		1,918		242,462
Multi-family residential		—		39,082		—		39,082
Non-farm & non-residential		2,141		177,930		658		180,729
Agricultural		4,611		63,219		406		68,236
Consumer		—		18,894		—		18,894
Other		—		227		—		227
	$	8,233	$	642,062	$	2,982	$	653,277


	Individually		Collectively		Purchased
As of December 31, 2015	Evaluated for		Evaluated for		Credit
(in thousands)	Impairment		Impairment		Impaired		Total
Allowance for Loan Losses:
Commercial	$	—	$	486	$	—	$	486
Real estate construction		—		411		—		411
Real estate mortgage:
1-4 family residential		128		1,953		—		2,081
Multi-family residential		—		458		—		458
Non-farm & non-residential		181		1,032		—		1,213
Agricultural		339		339		—		678
Consumer		—		525		—		525
Other		—		60		—		60
Unallocated		—		609		—		609
	$	648	$	5,873	$	—	$	6,521
Loans:
Commercial	$	—	$	55,924	$	5		55,929
Real estate construction		835		28,474		11		29,320
Real estate mortgage:
1-4 family residential		1,454		226,523		2,744		230,721
Multi-family residential		—		38,281		—		38,281
Non-farm & non-residential		2,882		179,913		897		183,692
Agricultural		4,298		61,921		563		66,782
Consumer		—		18,880		—		18,880
Other		—		516		—		516
Total	$	9,469	$	610,432	$	4,220	$	624,121

Schedule of loans individually evaluated for impairment by class of loans

The following table presents loans individually evaluated for impairment by class of loans as of and for the six months ended June 30, 2016 (in thousands):


	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized

With no related allowance recorded:
Real estate mortgage:
1-4 family residential	$	238	$	238	$	—	$	304	$	4	$	4
Agricultural		654		654		—		393		25		25

With an allowance recorded:
Real estate mortgage:
Construction		180		180		16		689		20		20
1-4 family residential		1,063		1,063		127		1,067		27		27
Non-farm & non-residential		2,141		2,141		46		2,070		41		41
Agricultural		3,957		3,957		427		3,689		—		—
Total	$	8,233	$	8,233	$	616	$	8,212	$	117	$	117

The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality.

The following table presents loans individually evaluated for impairment by class of loans for the six months ended June 30, 2015:


			Year to Date		Year to Date
	Average		Interest		Cash Basis
	Recorded		Income		Interest
(in thousands):	Investment		Recognized		Recognized

With no related allowance recorded:
Real estate mortgage:
1-4 family residential	$	1,524	$	42	$	42
Agricultural		362		27		27

With an allowance recorded:
Real estate mortgage:
1-4 family residential		556		10		10
Multi-family residential		119		—		—
Non-farm & non-residential		2,940		59		59
Agricultural		5,215		—		—

Total	$	10,716	$	138	$	138

The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality.

The following table presents loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2015 (in thousands):


	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized

With no related allowance recorded:
Real estate construction	$	835	$	835	$	—	$	820	$	29	$	29
Real estate mortgage:
1-4 family residential		370		370		—		1,493		15		15
Non-farm & non-residential		—		—		—		68		—		—
Agricultural		469		469		—		335		14		14

With an allowance recorded:
Real estate mortgage
1-4 family residential		1,083		1,083		128		1,916		6		6
Multi-family residential		—		—		—		24		—		—
Non-farm & non-residential		2,882		2,882		181		2,885		29		29
Agricultural		3,830		3,830		339		4,379		—		—

Total	$	9,469	$	9,469	$	648	$	11,920	$	93	$	93

The recorded investment in loans excludes accrued interest receivable and loan origination fees, net due to immateriality.

The following tables present loans individually evaluated for impairment by class of loans for the three months ended June 30, 2016 and June 30, 2015:


	Three Months Ending June 30, 2016
	Average		Interest		Cash Basis
	Recorded		Income		Interest
(in thousands):	Investment		Recognized		Recognized

With no related allowance recorded:


Real estate mortgage:	$
1-4 family residential		947		40		2
Agricultural		292		47		3

With an allowance recorded:
Real estate mortgage:
Construction		2,394		—		32
1-4 family residential		720		1		5
Non-farm & non-residential		2,070		23		18
Agricultural		3,957		—		—
Total	$	8,849	$	60	$	60


	Three Months Ending June 30, 2015
	Average		Interest		Cash Basis
	Recorded		Income		Interest
	Investment		Recognized		Recognized

With no related allowance recorded:

Real estate mortgage:
1-4 family residential	$	1,476	$	28	$	28
Agricultural		322		17		17

With an allowance recorded:
Real estate mortgage:
1-4 family residential		556		5		5
Multi-family residential		47		—		—
Non-farm & non-residential		2,931		30		30
Agricultural		4,025		—		—
Total	$	9,357	$	80	$	80

Schedule of recorded investment in nonaccrual, loans past due over 90 days still on accrual and accruing troubled debt restructurings by class of loans


			Loans Past Due
			Over 90 Days
As of June 30, 2016			Still		Troubled Debt
(in thousands)	Nonaccrual		Accruing		Restructurings

Commercial	$	—	$	—	$	—
Real estate construction		—		—		—
Real estate mortgage:
1-4 family residential		1,165		186		461
Multi-family residential		126		—		—
Non-farm & non-residential		78		390		1,752
Agricultural		4,251		23		—
Consumer		8		15		—

Total	$	5,628	$	614	$	2,213

Loans included in totals above acquired from Madison Financial Corporation	$	642	$	—	$	—



			Loans Past Due
			Over 90 Days
As of December 31, 2015			Still		Troubled Debt
(in thousands)	Nonaccrual		Accruing		Restructurings

Commercial	$	6	$	—	$	—
Real estate construction		145		365		—
Real estate mortgage:
1-4 family residential		1,531		471		468
Multi-family residential		—		—		—
Non-farm & non-residential		481		137		1,777
Agricultural		4,171		—		—
Consumer		17		27		—
Other		—		—		—

Total	$	6,351	$	1,000	$	2,245

Loans included in totals above acquired from Madison Financial Corporation	$	1,107	$	446	$	—

Schedule of aging of the recorded investment in past due and non-accrual loans


	30–59		60–89		Greater than				Total
As of June 30, 2016	Days		Days		90 Days				Past Due &		Loans Not
(in thousands)	Past Due		Past Due		Past Due		Non-accrual		Non-accrual		Past Due

Commercial	$	350	$	4	$	—	$	—	$	354	$	72,096
Real estate construction		—		—		—		—		—		31,197
Real estate mortgage:
1-4 family residential		1,499		357		186		1,165		3,207		239,255
Multi-family residential		—		—		—		126		126		38,956
Non-farm & non-residential		244		—		390		78		712		180,017
Agricultural		64		—		23		4,251		4,338		63,898
Consumer		63		14		15		8		100		18,794
Other		—		—		—		—		—		227

Total	$	2,220	$	375	$	614	$	5,628	$	8,837	$	644,440

Loans included in totals above acquired from Madison Financial Corp.	$	161	$	—	$	—	$	642	$	803	$	44,162


	30–59		60–89		Greater than				Total
As of December 31, 2015	Days		Days		90 Days				Past Due &		Loans Not
(in thousands)	Past Due		Past Due		Past Due		Non-accrual		Non-accrual		Past Due

Commercial	$	2,323	$	99	$	—	$	6	$	2,428	$	53,501
Real estate construction		—		—		365		145		510		28,810
Real estate mortgage:
1-4 family residential		1,508		264		471		1,531		3,774		226,947
Multi-family residential		—		—		—		—		—		38,281
Non-farm & non-residential		37		121		137		481		776		182,916
Agricultural		229		251		—		4,171		4,651		62,131
Consumer		50		45		27		17		139		18,741
Other		—		—		—		—		—		516

Total	$	4,147	$	780	$	1,000	$	6,351	$	12,278	$	611,843

Loans included in totals above acquired from Madison Financial Corp.	$	5	$	84	$	446	$	1,107	$	1,642	$	55,109

Schedule of risk category of loans by class of loans


As of June 30, 2016			Special
(in thousands)	Pass		Mention		Substandard		Doubtful

Commercial	$	71,041	$	1,197	$	212	$	—
Real estate construction		28,337		2,183		677		—
Real estate mortgage:
1-4 family residential		230,497		5,169		6,770		26
Multi-family residential		34,236		3,914		932		—
Non-farm & non-residential		175,919		3,820		990		—
Agricultural		58,804		3,732		5,697		3

Total	$	598,834	$	20,015	$	15,278	$	29

Loans included in totals above acquired from Madison Financial Corporation	$	37,875	$	4,148	$	2,942	$	—


As of December 31, 2015			Special
(in thousands)	Pass		Mention		Substandard		Doubtful

Commercial	$	54,392	$	1,323	$	215	$	—
Real estate construction		26,835		1,402		1,083		—
Real estate mortgage:
1-4 family residential		216,661		6,155		7,903		—
Multi-family residential		35,221		2,916		143		—
Non-farm & non-residential		178,289		4,448		955		—
Agricultural		60,177		1,198		5,407		—

Total	$	571,575	$	17,442	$	15,706	$	—

Loans included in totals above acquired from Madison Financial Corporation	$	44,367	$	2,533	$	3,189	$	—

Madison Financial Corp

LOANS

Schedule of loans


	6/30/2016		12/31/2015
Commercial	$	1,371	$	1,505
Real estate construction		1,170		1,616
Real estate mortgage:
1-4 family residential		14,102		16,376
Multi-family residential		5,521		5,652
Non-farm & non-residential		20,630		29,029
Agricultural		1,982		2,194
Consumer		189		379
Total	$	44,965	$	56,751

Schedule of carrying amount of purchased credit impaired loans


	6/30/2016		12/31/2015

Commercial	$	—	$	4
Real estate mortgage:
Construction		—		8
1-4 family residential		1,837		2,039
Non-farm & non-residential		174		667
Agricultural		282		418
	$	2,293	$	3,136

Schedule of accretable yield or income expected to be collected


	Three Months Ended		Six Months Ended
	6/30/2016		6/30/2016

Balance, beginning of period	$	339	$	408
New loans purchased		—		—
Accretion of income		111		180
Balance, end of period	$	228	$	228