LOANS (Tables)

9 Months Ended

Sep. 30, 2018

(in thousands)


	9/30/2018		12/31/2017
Commercial	$	85,214	$	80,070
Real estate construction		26,259		20,816
Real estate mortgage:
1-4 family residential		249,130		238,121
Multi-family residential		46,740		39,926
Non-farm & non-residential		194,693		192,074
Agricultural		63,275		59,176
Consumer		20,304		18,182
Other		123		170
Total	$	685,738	$	648,535

Schedule of activity in the allowance for loan losses


	Nine Months Ended September 30, 2018
	(in thousands)
	Beginning								Ending
	Balance		Charge-offs		Recoveries		Provision		Balance

Commercial	$	975	$	—	$	6	$	163	$	1,144
Real estate Construction		462		—		—		(42)		420
Real estate mortgage:
1-4 family residential		2,316		(91)		266		125		2,616
Multi-family residential		640		—		9		90		739
Non-farm & non-residential		1,554		—		—		95		1,649
Agricultural		494		—		149		(186)		457
Consumer		582		(166)		37		(33)		420
Other		18		(613)		482		173		60
Unallocated		679		—		—		15		694
	$	7,720	$	(870)	$	949	$	400	$	8,199


	Three Months Ended September 30, 2018
	(in thousands)
	Beginning								Ending
	Balance		Charge-offs		Recoveries		Provision		Balance

Commercial	$	1,183	$	—	$	—	$	(39)	$	1,144
Real estate construction		398		—		—		22		420
Real estate mortgage:
1-4 family residential		2,453		(28)		4		187		2,616
Multi-family residential		737		—		3		(1)		739
Non-farm & non-residential		1,604		—		—		45		1,649
Agricultural		475		—		3		(21)		457
Consumer		582		(73)		15		(104)		420
Other		49		(200)		141		70		60
Unallocated		703		—		—		(9)		694
	$	8,184	$	(301)	$	166	$	150	$	8,199


	Nine Months Ended September 30, 2017
	(in thousands)
	Beginning								Ending
	Balance		Charge-offs		Recoveries		Provision		Balance

Commercial	$	789	$	(35)	$	17	$	161	$	932
Real estate Construction		564		—		1		120		685
Real estate mortgage:
1-4 family residential		2,301		(203)		8		248		2,354
Multi-family residential		581		—		10		39		630
Non-farm & non-residential		1,203		(78)		—		304		1,429
Agricultural		856		—		47		(420)		483
Consumer		547		(128)		34		80		533
Other		60		(682)		573		91		42
Unallocated		640		—		—		27		667
	$	7,541	$	(1,126)	$	690	$	650	$	7,755


	Three Months Ended September 30, 2017
	(in thousands)
	Beginning								Ending
	Balance		Charge-offs		Recoveries		Provision		Balance

Commercial	$	1,006	$	(20)	$	2	$	(56)	$	932
Real estate Construction		584		—		—		101		685
Real estate mortgage:
1-4 family residential		2,575		(170)		3		(54)		2,354
Multi-family residential		645		—		3		(18)		630
Non-farm & non-residential		1,322		(78)		—		185		1,429
Agricultural		504		—		19		(40)		483
Consumer		561		(26)		6		(8)		533
Other		76		(214)		172		8		42
Unallocated		685		—		—		(18)		667
	$	7,958	$	(508)	$	205	$	100	$	7,755

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


	Individually		Collectively
As of September 30, 2018	Evaluated for		Evaluated for
(in thousands)	Impairment		Impairment		Total
Allowance for Loan Losses:
Commercial	$	191	$	953	$	1,144
Real estate construction		—		420		420
Real estate mortgage:
1-4 family residential		10		2,606		2,616
Multi-family residential		—		739		739
Non-farm & non-residential		—		1,649		1,649
Agricultural		—		457		457
Consumer		—		420		420
Other		—		60		60
Unallocated		—		694		694
	$	201	$	7,998	$	8,199
Loans:
Commercial	$	191	$	85,023	$	85,214
Real estate construction		374		25,885		26,259
Real estate mortgage:
1-4 family residential		214		248,916		249,130
Multi-family residential		685		46,055		46,740
Non-farm & non-residential		230		194,463		194,693
Agricultural		276		62,999		63,275
Consumer		—		20,304		20,304
Other		—		123		123
	$	1,970	$	683,768	$	685,738


	Individually		Collectively
As of December 31, 2017	Evaluated for		Evaluated for
(in thousands)	Impairment		Impairment		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		237,915		238,121
Multi-family residential		—		39,926		39,926
Non-farm & non-residential		1,130		190,944		192,074
Agricultural		284		58,892		59,176
Consumer		—		18,182		18,182
Other		—		170		170
Total	$	1,620	$	646,915	$	648,535

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 nine months ended September 30, 2018 (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	$	374	$	374	$	─	$	94	$	3	$	3
Real estate mortgage:
1-4 family residential		77		77		─		62		4		4
Multi-family residential		684		684		─		523		37		37
Non-farm and non-residential		230		230		─		1,061		8		8
Agricultural		277		277		─		312		11		11

With an allowance recorded:
Commercial		191		191		191		128		18		18
Real estate mortgage:
1-4 family residential		137		137		10		543		5		5
Total	$	1,970	$	1,970	$	201	$	2,723	$	86	$	86

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 nine months ended September 30, 2017:


			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:
Non-farm and non-residential	$	1,243	$	42	$	42
Agricultural		410		9		9

With an allowance recorded:
Real estate mortgage:
1-4 family residential		1,045		8		8
Total	$	2,698	$	59	$	59

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, 2017 (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:
Non-farm & non-residential	$	1,130	$	1,130	$	—	$	1,140	$	68	$	68
Agricultural		284		284		—		289		11		11

With an allowance recorded:
Real estate mortgage
1-4 family residential		206		206		23		208		8		8
Total	$	1,620	$	1,620	$	23	$	1,637	$	87	$	87

The following tables present loans individually evaluated for impairment by class of loans for the three months ended September 30, 2018 and September 30, 2017:


	Three Months Ending September 30, 2018
	Average		Interest		Cash Basis
	Recorded		Income		Interest
(in thousands):	Investment		Recognized		Recognized
With no related allowance recorded:
Real estate construction	$	374	$	—	$	—
Real estate mortgage:
1-4 family residential		78		1		1
Multi-family residential		691		13		13
Non-farm and non-residential		231		2		2
Agricultural		278		3		3

With an allowance recorded:
Commercial		257		—		—
Real estate mortgage:
1-4 family residential		138		2		2
Total	$	2,047	$	21	$	21


	Three Months Ending September 30, 2017
	Average		Interest		Cash Basis
	Recorded		Income		Interest
	Investment		Recognized		Recognized
With no related allowance recorded:
Real estate mortgage:
Non-farm and non-residential	$	2,431	$	17	$	17
Agricultural		491		2		2
With an allowance recorded:
Real estate mortgage:
1-4 family residential		455		1		1
Total	$	3,377	$	20	$	20

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 September 30, 2018			Still		Troubled Debt
(in thousands)	Nonaccrual		Accruing		Restructurings
Commercial	$	214	$	23	$	—
Real estate construction		—		374		—
Real estate mortgage:
1-4 family residential		508		129		—
Non-farm & non-residential		225		59		—
Agricultural		91		—		—
Consumer		30		23		—
Total	$	1,068	$	608	$	—


			Loans Past Due
			Over 90 Days
As of December 31, 2017			Still		Troubled Debt
(in thousands)	Nonaccrual		Accruing		Restructurings
Commercial	$	—	$	32	$	—
Real estate mortgage:
1-4 family residential		1,086		184		—
Agricultural		96		—		—
Consumer		11		15		—
Total	$	1,193	$	231	$	—

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


	30–59		60–89		Greater than				Total
As of September 30, 2018	Days		Days		90 Days				Past Due &		Loans Not
(in thousands)	Past Due		Past Due		Past Due		Non-accrual		Non-accrual		Past Due

Commercial	$	31	$	74	$	23	$	214	$	342	$	84,872
Real estate construction		1,104		—		374		—		1,478		24,781
Real estate mortgage:
1-4 family residential		1,418		313		129		508		2,368		246,762
Multi-family residential		—		—		—		—		—		46,740
Non-farm & non-residential		430		—		59		225		714		193,979
Agricultural		377		200		—		91		668		62,607
Consumer		132		41		23		30		226		20,078
Other		—		—		—		—		—		123
Total	$	3,492	$	628	$	608	$	1,068	$	5,796	$	679,942


	30–59		60–89		Greater than				Total
As of December 31, 2017	Days		Days		90 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

Schedule of risk category of loans by class of loans


As of September 30, 2018			Special
(in thousands)	Pass		Mention		Substandard		Doubtful

Commercial	$	83,873	$	867	$	283	$	191
Real estate construction		24,989		872		398		—
Real estate mortgage:
1-4 family residential		242,181		2,794		4,155		—
Multi-family residential		43,555		2,500		685		—
Non-farm & non-residential		185,713		8,308		654		18
Agricultural		58,756		3,826		693		—
Total	$	639,067	$	19,167	$	6,868	$	209


As of 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	$	—