LOANS (Tables)

12 Months Ended

Dec. 31, 2017


	12/31/2017		12/31/2016
Commercial	$	80,070	$	77,436
Real estate construction		20,816		29,169
Real estate mortgage:
1-4 family residential		238,121		244,638
Multi-family residential		39,926		47,199
Non-farm & non-residential		192,074		176,024
Agricultural		59,176		62,491
Consumer		18,182		18,867
Other		170		183
Total	$	648,535	$	656,007

Schedule of activity in the allowance for loan losses

The following table presents the activity in the allowance for loan losses by portfolio segment for the years ending December 31, 2017, 2016 and 2015 (in thousands):


	Beginning								Ending
December 31, 2017	Balance		Charge-offs		Recoveries		Provision		Balance

Commercial	$	789	$	(35)	$	19	$	202	$	975
Real estate Construction		564		—		1		(103)		462
Real estate mortgage:
1-4 family residential		2,301		(249)		20		244		2,316
Multi-family residential		581		—		181		(122)		640
Non-farm & non-residential		1,203		(42)		—		393		1,554
Agricultural		856		—		57		(419)		494
Consumer		547		(205)		59		181		582
Other		60		(871)		744		85		18
Unallocated		640		—		—		39		679
	$	7,541	$	(1,402)	$	1,081	$	500	$	7,720


	Beginning								Ending
December 31, 2016	Balance		Charge-offs		Recoveries		Provision		Balance

Commercial	$	486	$	(5)	$	39	$	269	$	789
Real estate Construction		411		—		15		138		564
Real estate mortgage:										—
1-4 family residential		2,081		(126)		19		327		2,301
Multi-family residential		458		—		12		111		581
Non-farm & non-residential		1,213		—		454		(464)		1,203
Agricultural		678		(193)		50		321		856
Consumer		525		(298)		80		240		547
Other		60		(908)		731		177		60
Unallocated		609		—		—		31		640
	$	6,521	$	(1,530)	$	1,400	$	1,150	$	7,541


	Beginning								Ending
December 31, 2015	Balance		Charge-offs		Recoveries		Provision		Balance

Commercial	$	339	$	(30)	$	—	$	177	$	486
Real estate Construction		446		—		11		(46)		411
Real estate mortgage:										—
1-4 family residential		1,829		(284)		33		503		2,081
Multi-family residential		495		(94)		30		27		458
Non-farm & non-residential		813		—		86		314		1,213
Agricultural		998		(242)		23		(101)		678
Consumer		520		(283)		66		222		525
Other		32		(1,017)		760		285		60
Unallocated		540		—		—		69		609
	$	6,012	$	(1,950)	$	1,009	$	1,450	$	6,521

Schedule of accretable yield or income expected to be collected

Accretable yield, or income expected to be collected, is as follows (in thousands):


	Twelve months ended
	12/31/2017		12/31/2016

Balance, beginning of period	$	240	$	408
New loans purchased		—		—
Accretion of income		186		168
Balance, end of period	$	54	$	240

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

The following tables present the balance in the allowance for loan losses and the recorded investment (excluding accrued interest receivable amounting to $2.6 million and $2.4 million) in loans by portfolio segment and based on impairment method as of December 31, 2017 and December 31, 2016 (in thousands):


	Individually		Collectively		Purchased
	Evaluated for		Evaluated for		Credit
As of December 31, 2017	Impairment		Impairment		Impaired		Total
Allowance for Loan Losses:
Commercial	$	—	$	975	$	—	$	975
Real estate construction		—		462		—		462
Real estate mortgage:				—
1-4 family residential		23		2,293		—		2,316
Multi-family residential		—		640		—		640
Non-farm & non-residential		—		1,554		—		1,554
Agricultural		—		494		—		494
Consumer		—		582		—		582
Other		—		18		—		18
Unallocated		—		679		—		679
	$	23	$	7,697	$	—	$	7,720
Loans:
Commercial	$	—	$	80,070	$	—	$	80,070
Real estate construction		—		20,816		—		20,816
Real estate mortgage:
1-4 family residential		206		237,043		872		238,121
Multi-family residential		—		39,352		574		39,926
Non-farm & non-residential		1,130		190,941		3		192,074
Agricultural		284		58,708		184		59,176
Consumer		—		18,182		—		18,182
Other		—		170		—		170
	$	1,620	$	645,282	$	1,633	$	648,535


	Individually		Collectively		Purchased
	Evaluated for		Evaluated for		Credit
As of December 31, 2016	Impairment		Impairment		Impaired		Total
Allowance for Loan Losses:
Commercial	$	—	$	789	$	—	$	789
Real estate construction		—		564		—		564
Real estate mortgage:				—
1-4 family residential		99		2,202		—		2,301
Multi-family residential		—		581		—		581
Non-farm & non-residential		15		1,188		—		1,203
Agricultural		427		429		—		856
Consumer		—		547		—		547
Other		—		60		—		60
Unallocated		—		640		—		640
	$	541	$	7,000	$	—	$	7,541
Loans:
Commercial	$	97	$	77,339	$	—	$	77,436
Real estate construction		153		29,016		—		29,169
Real estate mortgage:
1-4 family residential		2,704		240,906		1,028		244,638
Multi-family residential		—		46,637		562		47,199
Non-farm & non-residential		1,725		174,154		145		176,024
Agricultural		3,315		58,998		178		62,491
Consumer		—		18,867		—		18,867
Other		—		183		—		183
Total	$	7,994	$	646,100	$	1,913	$	656,007

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 December 31, 2017:


	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
(in thousands):	Balance		Investment		Allocated		Investment		Recognized		Recognized

With no related allowance recorded:
Non-farm & non-residential	$	1,130	$	1,130	$	—	$	1,140	$	68	$	68
Agricultural		284		284		—		289		11		11
With an allowance recorded:
1-4 family residential		206		206		23		208		8		8
Total	$	1,620	$	1,620	$	23	$	1,637	$	87	$	87

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 December 31, 2016:


	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
(in thousands):	Balance		Investment		Allocated		Investment		Recognized		Recognized

With no related allowance recorded:
Commercial	$	97	$	97	$	—	$	48	$	30	$	30
Real estate construction		153		153		—		494		9		9
Real estate mortgage:
1-4 family residential		606		606		—		488		—		—
Agricultural		654		654		—		561		—		—
With an allowance recorded:
1-4 family residential		2,098		2,098		99		1,590		56		56
Non-farm & non-residential		1,725		1,725		15		2,303		71		71
Agricultural		2,661		2,661		427		3,309		25		25
Total	$	7,994	$	7,994	$	541	$	8,793	$	191	$	191

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 December 31, 2015:


	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
(in thousands):	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:
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

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

The following tables present the recorded investment in nonaccrual loans, loans past due over 89 days still accruing, and troubled debt restructurings, excluding purchase credit impaired loans, by class of loans as of December 31, 2017 and 2016 (in thousands):


			Loans Past Due
			Over 89 Days
			Still		Troubled Debt
As of December 31, 2017	Nonaccrual		Accruing		Restructurings
Commercial	$	—	$	32	$	—
Real estate construction		—		—		—
Real estate mortgage:
1-4 family residential		1,086		184		—
Non-farm & non-residential		—		—		—
Agricultural		96		—		—
Consumer		11		15		—
Total	$	1,193	$	231	$	—


			Loans Past Due
			Over 89 Days
			Still		Troubled Debt
As of December 31, 2016	Nonaccrual		Accruing		Restructurings
Commercial	$	3	$	11	$	—
Real estate construction		—		153		—
Real estate mortgage:
1-4 family residential		2,725		31		338
Multi-family residential		25		—		—
Non-farm & non-residential		272		—		1,725
Agricultural		1,541		724		—
Consumer		—		8		—
Total	$	4,566	$	927	$	2,063

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

The following tables present the aging of the recorded investment in past due and non-accrual loans as of December 31, 2017 and 2016 by class of loans (in thousands):

December 31, 2017


	30–59		60–89		Greater than				Total
	Days		Days		89 Days				Past Due &		Loans Not
(in thousands)	Past Due		Past Due		Past Due		Non-accrual		Non-accrual		Past Due

Commercial	$	678	$	44	$	32	$	—	$	754	$	79,316
Real estate construction		—		—		—		—		—		20,816
Real estate mortgage:
1-4 family residential		2,222		321		184		1,086		3,813		234,308
Multi-family residential		—		—		—		—		—		39,926
Non-farm & non-residential		162		—		—		—		162		191,912
Agricultural		249		—		—		96		345		58,831
Consumer		132		14		15		11		172		18,010
Other		—		—		—		—		—		170
Total	$	3,443	$	379	$	231	$	1,193	$	5,246	$	643,289


December 31, 2016	30–59		60–89		Greater than				Total
	Days		Days		89 Days				Past Due &		Loans Not
(in thousands)	Past Due		Past Due		Past Due		Non-accrual		Non-accrual		Past Due

Commercial	$	54	$	45	$	11	$	3	$	113	$	77,323
Real estate construction		—		—		153		—		153		29,016
Real estate mortgage:
1-4 family residential		2,310		228		31		2,725		5,294		239,344
Multi-family residential		391		3		—		25		419		46,780
Non-farm & non-residential		159		61		—		272		492		175,532
Agricultural		647		61		724		1,541		2,973		59,518
Consumer		97		37		8		—		142		18,725
Other		—		—		—		—		—		183
Total	$	3,658	$	435	$	927	$	4,566	$	9,586	$	646,421

Schedule of risk category of loans by class of loans

The following tables present the risk category of loans by class of loans, based on the most recent analysis performed, as of December 31, 2017 and 2016 (in thousands):

December 31, 2017


			Special
(in thousands)	Pass		Mention		Substandard		Doubtful

Commercial	$	78,326	$	1,703	$	41	$	—
Real estate construction		20,816		—		—		—
Real estate mortgage:
1-4 family residential		230,103		3,522		4,496		—
Multi-family residential		36,654		2,551		721		—
Non-farm & non-residential		183,230		7,240		1,604		—
Agricultural		54,765		3,682		729		—

Total	$	603,894	$	18,698	$	7,591	$	—

December 31, 2016


			Special
(in thousands)	Pass		Mention		Substandard		Doubtful

Commercial	$	76,346	$	1,078	$	12	$	—
Real estate construction		28,577		—		592		—
Real estate mortgage:
1-4 family residential		232,969		4,031		7,627		11
Multi-family residential		43,681		2,617		901		—
Non-farm & non-residential		167,451		8,185		388		—
Agricultural		58,155		1,367		2,969		—

Total	$	607,179	$	17,278	$	12,489	$	11

Schedule of analysis of the activity with respect to all director and executive officer loans

An analysis of the activity with respect to all director and executive officer loans is as follows (in thousands):


	2017		2016

Balance, beginning of year	$	1,148	$	1,673
New loans		124		74
Effect of changes in composition of related parties		—		(590)
Repayments		(342)		(9)

Balance, end of year	$	930	$	1,148

Schedule of activity for mortgage servicing rights and the related valuation allowance

Activity for mortgage servicing rights and the related valuation allowance follows (in thousands):


	2017		2016		2015
Servicing Rights:
Beginning balance	$	1,321	$	1,277	$	1,209
Additions		436		483		348
Amortization		(315)		(334)		(339)
Change in valuation allowance		69		(105)		59
Ending balance	$	1,511	$	1,321	$	1,277

Valuation Allowance:
Beginning balance	$	125	$	20	$	79
Additions expensed		5		109		—
Reductions credited to operations		(74)		(4)		(59)
Ending balance	$	56	$	125	$	20

Schedule of estimated amortization expense for each of the next five years

Estimated amortization expense for each of the next five years is (in thousands):


2018	$	214
2019		137
2020		113
2021		94
2022		78