10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended:  September 30, 2015

OR

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition Period from To

Commission File Number 000-49966

COMMUNITY FIRST, INC.

(Exact Name of Registrant as Specified in its Charter)

Tennessee	04-3687717
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
501 South James M. Campbell Blvd. Columbia, Tennessee	38401
(Address of Principal Executive Offices)	(Zip Code)

(931) 380-2265

(Registrant’s Telephone Number, Including Area Code)

None

(Former Name, Address and Fiscal Year, if Changed Since Last Report)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  o

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).    Yes  x    No  o

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	o	Accelerated filer	o
Non-accelerated filer	x  (Do not check if a smaller reporting company)	Smaller reporting company	o

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x

Indicate the number of shares outstanding of each of the issuer’s classes of common stock as of the latest practicable date.  Common stock outstanding (no par value): 3,275,900 shares of common stock, no par value per share, as of November 13, 2015.

COMMUNITY FIRST, INC.

TABLE OF CONTENTS

PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Consolidated Balance Sheets September 30, 2015 (Unaudited) and December 31, 2014	3
	Consolidated Statements of Operations and Comprehensive Income Nine months and three months ended September 30, 2015 and 2014 (Unaudited)	5
	Consolidated Statement of Changes in Shareholders’ Equity Nine months ended September 30, 2015 (Unaudited)	7
	Consolidated Statements of Cash Flows Nine months ended September 30, 2015 and 2014 (Unaudited)	8
	Notes to Consolidated Financial Statements (Unaudited)	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	61
Item 4.	Controls and Procedures	62
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	63
Item 1A.	Risk Factors	63
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	63
Item 3.	Defaults Upon Senior Securities	63
Item 4.	Mine Safety Disclosures	63
Item 5.	Other Information	63
Item 6.	Exhibits	64
SIGNATURES		65
Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

Community First, Inc.

Consolidated Balance Sheets

September 30, 2015 (Unaudited) and December 31, 2014

(amounts in thousands, except share and per share data)

	September 30, 2015			December 31, 2014
Assets
Cash and due from financial institutions	$	30,304		$	38,256
Time deposits in other financial institutions		22,414			22,177
Securities available for sale, at fair value		112,072			91,440
Loans held for sale, at fair value		—			106
Loans		263,212			256,436
Allowance for loan losses		(4,354	)		(5,171	)
Net loans		258,858			251,265
Restricted equity securities, at cost		1,727			1,727
Premises and equipment, net		11,803			11,832
Accrued interest receivable		1,138			1,034
Core deposit and customer relationship intangibles, net		974			1,078
Other real estate owned, net		8,704			13,734
Bank owned life insurance		10,066			9,864
Other assets		2,598			1,042
Total Assets	$	460,658		$	443,555
Liabilities and Shareholders' Equity
Deposits:
Noninterest-bearing	$	70,508		$	60,780
Interest-bearing		338,273			337,300
Total Deposits		408,781			398,080
Subordinated debentures		23,000			23,000
Accrued interest payable		5,760			4,921
Other liabilities		9,721			6,668
Total Liabilities		447,262			432,669

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Community First, Inc.

Consolidated Balance Sheets

September 30, 2015 (Unaudited) and December 31, 2014

(Continued)

(amounts in thousands, except share and per share data)

	September 30, 2015			December 31, 2014
Shareholders’ Equity
Senior Preferred shares, no par value; 9% cumulative.  Authorized 2,500,000 shares;    17,806 issued and outstanding with liquidation value of $23,652 at September 30,    2015 and $21,849 at December 31, 2014.		17,806			17,806
Warrant Preferred shares, no par value; 9% cumulative.  890 issued and outstanding    with liquidation value of $1,343 at September 30, 2015 and $1,211 at     December 31, 2014.		890			890
Total Preferred shares		18,696			18,696
Common stock, no par value; Authorized 10,000,000 shares; 3,275,439 shares issued    and outstanding at September 30, 2015 and 3,274,946 shares issued and outstanding    at December 31, 2014		28,602			28,591
Accumulated deficit		(32,674	)		(34,957	)
Accumulated other comprehensive loss, net		(1,228	)		(1,444	)
Total Shareholders' Equity		13,396			10,886
Total Liabilities and Shareholders’ Equity	$	460,658		$	443,555

See accompanying notes to unaudited consolidated financial statements.

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Community First, Inc.

Consolidated Statements of Operations and Comprehensive Income

Nine Months and Three Months Ended September 30, 2015 and 2014

(Unaudited)

(amounts in thousands, except share and per share data)	Nine Months Ended September 30,						Three Months Ended September 30,
	2015			2014			2015			2014
Interest income
Loans, including fees	$	11,170		$	10,313		$	4,260		$	3,406
Taxable securities		1,455			1,398			540			499
Tax-exempt securities		37			62			12			15
Federal funds sold and other		266			227			89			77
Total interest income		12,928			12,000			4,901			3,997
Interest expense
Deposits		1,506			1,668			510			523
Subordinated debentures and other		756			592			356			202
Total interest expense		2,262			2,260			866			725
Net interest income		10,666			9,740			4,035			3,272
Provision for loan losses		(2,257	)		(800	)		(694	)		—
Net interest income after provision for loan losses		12,923			10,540			4,729			3,272
Noninterest income
Service charges on deposit accounts		1,327			1,290			457			436
Gain on sale of loans		71			59			22			37
Gain on sale of securities available for sale		5			213			4			173
Other		408			488			131			172
Total noninterest income		1,811			2,050			614			818
Noninterest expense
Salaries and employee benefits		5,221			4,980			1,757			1,682
Regulatory and compliance		520			797			173			265
Occupancy		725			606			248			234
Furniture and equipment		234			236			86			82
Data processing fees		917			860			316			292
Advertising and public relations		140			143			43			41
Operational expense		358			307			117			101
Other real estate owned expense		403			827			150			449
Other		1,997			2,010			675			712
Total noninterest expenses		10,515			10,766			3,565			3,858
Income before income tax expense		4,219			1,824			1,778			232

See accompanying notes to unaudited consolidated financial statements.

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Community First, Inc.

Consolidated Statements of Operations and Comprehensive Income

Nine Months and Three Months Ended September 30, 2015 and 2014

(Unaudited, Continued)

(amounts in thousands, except share and per share data)	Nine Months Ended September 30,						Three Months Ended September 30,
	2015			2014			2015			2014
Income tax expense		—			—			—			—
Net income		4,219			1,824			1,778			232
Preferred stock dividends declared		(1,936	)		(1,147	)		(1,102	)		(424	)
Accretion of preferred stock discount		—			(33	)		—			—
Net income available to common shareholders	$	2,283		$	644		$	676		$	(192	)
Income per share available to common shareholders
Basic	$	0.70		$	0.20		$	0.21		$	(0.06	)
Diluted	$	0.70			0.20		$	0.21			(0.06	)
Weighted average common shares outstanding
Basic		3,275,204			3,274,844			3,275,421			3,274,876
Diluted		3,275,204			3,274,844			3,275,421			3,274,876
Comprehensive Income
Net income	$	4,219		$	1,824		$	1,778		$	232
Reclassification adjustment for realized gains included in net    income, net of $0 income taxes		(5	)		(213	)		(4	)		(173	)
Unrealized (losses) gains on securities, net of $0 income taxes		221			930			530			(253	)
Comprehensive income	$	4,435		$	2,541		$	2,304		$	(194	)

See accompanying notes to unaudited consolidated financial statements.

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Community First, Inc.

Consolidated Statement of Changes in Shareholders’ Equity

Nine Months Ended September 30, 2015

(Unaudited)

(amounts in thousands, except share and per share data)

	Common Shares		Preferred Stock		Common Stock		Accumulated Deficit			Accumulated Other Comprehensive Loss, Net			Total Shareholders’ Equity
Balance at January 1, 2015		3,274,946	$	18,696	$	28,591	$	(34,957	)	$	(1,444	)	$	10,886
Sale of shares of common stock		493		—		11		—			—			11
Cash dividends declared on preferred stock		—		—		—		(1,936	)		—			(1,936	)
Net income		—		—		—		4,219			—			4,219
Reclassification adjustment for realized gains    included in net income, net of $0 income taxes		—		—		—		—			(5	)		(5	)
Change in unrealized loss on securities available    for sale, net of $0 income tax		—		—		—		—			221			221
Balance at September 30, 2015		3,275,439	$	18,696	$	28,602	$	(32,674	)	$	(1,228	)	$	13,396

See accompanying notes to unaudited consolidated financial statements.

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Community First, Inc.

Consolidated Statements of Cash Flows

Nine Months Ended September 30, 2015 and 2014

(Unaudited)

(amounts in thousands, except share and per share data )	Nine Months Ended September 30,
	2015			2014
Cash flows from operating activities
Net income	$	4,219		$	1,824
Adjustments to reconcile net income to net cash from operating activities
Depreciation		433			410
Amortization on securities, net		642			357
Core deposit intangible amortization		104			104
Reversal of provision for loan losses		(2,257	)		(800	)
Loans originated for sale		(2,429	)		(2,226	)
Proceeds from sale of loans		2,836			2,285
Gain on sale of loans		(71	)		(59	)
Net collected loan recoveries		1,440			—
(Increase) decrease in accrued interest receivable		(104	)		148
Increase in accrued interest payable		839			540
Increase in surrender value of bank owned life insurance		(202	)		(194	)
Gain on sale of securities		(5	)		(213	)
Net write down of other real estate owned		487			751
Other, net		(1,952	)		2,483
Net cash from operating activities		3,980			5,410
Cash flows from investing activities
Available for sale securities
Purchases:
Mortgage-backed securities		(45,596	)		(33,217	)
Other		(1,086	)		(5,133	)
Sales:
Mortgage-backed securities		3,759			5,068
Other		10,854			19,519
Maturities, prepayments, and calls:
Mortgage-backed securities		11,016			6,636
Other		—			2,060
Net (increase) decrease in loans		(5,583	)		8,892
Proceeds from sales of other real estate owned		4,672			3,321
Decrease (increase) in time deposits in other financial institutions		(237	)		(13,450	)
Additions to premises and equipment		(443	)		(1,673	)
Net cash used in investing activities		(22,644	)		(7,977	)

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Community First, Inc.

Consolidated Statements of Cash Flows

Nine Months Ended September 30, 2015 and 2014

(Unaudited, Continued)

(amounts in thousands, except share and per share data )	Nine Months Ended September 30,
	2015			2014
Cash flows from financing activities
Net increase in deposits		10,701			(14,717	)
Proceeds from issuance of common stock		11			1
Net cash from financing activities		10,712			(14,716	)
Net decrease in cash and cash equivalents		(7,952	)		(17,283	)
Cash and cash equivalents at beginning of period		38,256			49,036
Cash and cash equivalents at end of period	$	30,304		$	31,753
Supplemental disclosures of cash flow information
Cash paid during year for:
Interest	$	1,423		$	1,720
Income taxes paid		23			13
Supplemental noncash disclosures
Transfers from loans to repossessed assets		247			414
Preferred stock dividends declared but not paid		1,936			1,147
Subordinated debenture interest accrued but not paid		756			592

See accompanying notes to unaudited consolidated financial statements.

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COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

(amounts in thousands, except share and per share data)

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

The consolidated financial statements include Community First, Inc. and its wholly-owned subsidiary, Community First Bank & Trust.  Community First, Inc., together with the Bank, is referred to herein as the “Company.” The sole subsidiary of Community First Bank & Trust is Community First Properties, Inc., which was originally established as a Real Estate Investment Trust (“REIT”) but which terminated its REIT election in the first quarter of 2012.   Community First Bank & Trust together with its subsidiary is referred to herein as the “Bank.”   Intercompany transactions and balances are eliminated in consolidation.

The Bank conducts substantially all of its banking activities in Maury, Williamson and Hickman Counties, in Tennessee.  Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans.  Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate.  Commercial loans are expected to be repaid from cash flows from operations of businesses.  The significant loan concentrations that exceed 10% of total loans are as follows:  commercial real estate loans, 1-4 family residential loans, and construction loans.  The customers’ ability to repay their loans is dependent, on the real estate and general economic conditions in the Company’s market areas.  Other financial instruments, which potentially represent concentrations of credit risk, include deposit accounts in other financial institutions and federal funds sold.

The unaudited consolidated financial statements as of September 30, 2015 and for the nine-month and three-month periods ended September 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (the “SEC”) and, in the opinion of management, include all adjustments, consisting of normal recurring adjustments, necessary to present fairly the information.  They do not include all the information and footnotes required by GAAP for complete financial statements.  Operating results for interim periods are not necessarily indicative of the results that may be expected for the entire year. For further information, refer to the 2014 consolidated audited financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 27, 2015 (File No. 000-49966) (the “2014 Form 10-K”).

Critical Accounting Policies:

The consolidated financial statements in this report are prepared in conformity with GAAP and with general practices in the banking industry. As such, we are required to make certain estimates, judgments, and assumptions that we believe are reasonable based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. A summary of our significant accounting policies is described in our 2014 Form 10-K. The significant accounting policies and estimates which we believe are the most critical to aid in fully understanding and evaluating our reported financial results include the following:

Allowance for Loan Losses:  Credit risk is inherent in the business of extending loans to borrowers.  This credit risk is addressed through a valuation allowance for probable incurred credit losses.  Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed.  Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors.  Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off.

The allowance consists of specific and general components.  The specific component relates to loans that are individually classified as impaired.

A loan is identified as impaired when, based on current information and events, it is probable that the scheduled payments of principal or interest will not be collected when due according to the contractual terms of the loan agreement.  However, some loans are termed impaired because of doubt regarding collectability of interest and principal according to the contractual terms, even though such loans are both fully secured by collateral and current in their interest and principal payments.  Additionally, loans are considered troubled debt restructurings and classified as impaired if their terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties.

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COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION (Continued)

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

All loans over $150 that are unlikely to collect under existing terms are individually evaluated for impairment.  If a loan is impaired, a portion of the allowance is allocated so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral.  Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures.

Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception.  If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral.  For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

The general component of the allowance covers loans collectively evaluated for impairment and is based on historical loss experience adjusted for current factors.  The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent three years.  This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment.  These economic factors include consideration of the following:  levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations.  The following loan portfolio segments have been identified with a discussion of the risk characteristics of these portfolio segments:

Real Estate Construction loans consist of loans made for both residential and commercial construction and land development.  Residential real estate construction loans are loans secured by real estate to build 1-4 family dwellings.  These are loans made to borrowers obtaining loans in their personal name for the personal construction of their own dwellings or loans to builders for the purpose of constructing homes for resale.  These loans to builders can be for speculative homes for which there is no specific homeowner for which the home is being built, as well as loans to builders that have a pre-sale contract to another individual.

Commercial Construction loans are loans extended to borrowers secured by and to build commercial structures such as churches, retail strip centers, industrial warehouses or office buildings.  Land development loans are granted to commercial borrowers to finance the improvement of real estate by adding infrastructure so that ensuing construction can take place.  Construction and land development loans are generally short term in maturity to match the expected completion of a particular project.  These loan types are generally more vulnerable to changes in economic conditions in that they project there will be a demand for the product.  They require monitoring to ensure the project is progressing in a timely manner within the expected budgeted amount.  This monitoring is accomplished via periodic physical inspections by an outside third party.

1-4 Family Residential loans consist of both open end and closed end loans secured by first or junior liens on 1-4 family improved residential dwellings.  Open end loans are Home Equity Lines of Credit that allow the borrower to use equity in the real estate to borrow and repay as the need arises.  First and junior lien residential real estate loans are closed end loans with a specific maturity that generally does not exceed 7 years.  Economic conditions can affect the borrower’s ability to repay the loans, and the value of the real estate securing the loans can change over the life of the loan.

Commercial Real Estate loans consist of loans secured by farmland or by improved commercial property.  Farmland includes all land known to be used or usable for agricultural purposes, such as crop and livestock production, grazing, or pasture land.  Improved commercial property can be owner occupied or non-owner occupied property secured by commercial structures such as churches, retail strip centers, hotels, industrial warehouses or office buildings.  The repayment of these loans tends to depend upon the operation and management of a business or lease income from a business, and therefore adverse economic conditions can affect the ability to repay.

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COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION (Continued)

Other Real Estate Secured loans consist of loans secured by five or more multi-family dwelling units.  These loans are typically exemplified by apartment buildings or complexes.  The ability to manage and rent units affects the income that usually provides repayment for this type of loan.

Commercial, Financial, and Agricultural loans consist of loans extended for the operation of a business or a farm.  They are not secured by real estate.  Commercial loans are used to provide working capital, acquire inventory, finance the carrying of receivables, purchase equipment or vehicles, or purchase other capital assets. Agricultural loans are typically for purposes such as planting crops, acquiring livestock, or purchasing farm equipment.  The repayment of these loans comes from the cash flow of a business or farm and is generated by sales of inventory or providing of services.  The collateral tends to depreciate over time and is difficult to monitor.  Frequent statements are required from the borrower pertaining to inventory levels or receivables aging.

Consumer loans consist largely of loans extended to individuals for purposes such as to purchase a vehicle or other consumer goods. These loans are not secured by real estate but are frequently collateralized by the consumer items being acquired with the loan proceeds.  This type of collateral tends to depreciate, and therefore the term of the loan is tailored to fit the expected value of the collateral as it depreciates, along with specific underwriting policies and guidelines.

Tax Exempt loans consist of loans that are extended to entities such as municipalities.  These loans tend to be dependent on the ability of the borrowing entity to continue to collect taxes to repay the indebtedness.

Other loans consist of those loans which are not elsewhere classified in these categories and are not secured by real estate.

NOTE 2 - SECURITIES AVAILABLE FOR SALE

The following table summarizes the amortized cost and fair value of the available for sale securities portfolio at September 30, 2015 and December 31, 2014 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss), net of applicable income taxes:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2015
U.S. Government sponsored entities	$	6,870	$	4	$	(12	)	$	6,862
Mortgage-backed (residential)		101,910		537		(121	)		102,326
State and municipal		2,843		41		—			2,884
Total	$	111,623	$	582	$	(133	)	$	112,072
December 31, 2014
U.S. Government sponsored entities	$	15,618	$	—	$	(266	)	$	15,352
Mortgage-backed (residential)		73,576		530		(92	)		74,014
State and municipal		2,012		62		—			2,074
Total	$	91,206	$	592	$	(358	)	$	91,440

The proceeds from sales of securities and the associated gains and losses are listed below:

	Nine months ended September 30,						Three months ended September 30,
	2015			2014			2015			2014
Proceeds	$	14,613		$	24,587		$	10,953		$	12,825
Gross gains		80			376			59			271
Gross losses		(75	)		(163	)		(55	)		(98	)

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COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 2 - SECURITIES AVAILABLE FOR SALE (Continued)

The amortized cost and fair value of the securities portfolio are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.  Mortgage backed securities are presented separately due to varying maturity dates as a result of prepayments.

	September 30, 2015
	Amortized Cost		Fair Value
Due in one year or less	$	340	$	344
Due after one through five years		5,888		5,900
Due after five through ten years		2,401		2,403
Due after ten years		1,084		1,099
Mortgage backed (residential)		101,910		102,326
Total	$	111,623	$	112,072

At September 30, 2015 and December 31, 2014, respectively, securities totaling $48,190 and $41,829 were pledged to secure public deposits.

The Company did not hold securities of any one issuer, other than U.S. Government sponsored entities, with a face amount greater than 10% of shareholders’ equity as of September 30, 2015 or December 31, 2014.

The following table summarizes securities with unrealized losses at September 30, 2015 and December 31, 2014 aggregated by major security type and length of time in a continuous unrealized loss position:

September 30, 2015	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
U.S. Government sponsored entities	$	1,872	$	(3	)	$	2,488	$	(9	)	$	4,360	$	(12	)
Mortgage-backed (residential)		27,620		(105	)		4,822		(16	)		32,442		(121	)
Total temporarily impaired	$	29,492	$	(108	)	$	7,310	$	(25	)	$	36,802	$	(133	)

December 31, 2014	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
U.S. Government sponsored entities	$	246	$	(4	)	$	15,106	$	(262	)	$	15,352	$	(266	)
Mortgage-backed (residential)		6,869		(26	)		6,963		(66	)		13,832		(92	)
Total temporarily impaired	$	7,115	$	(30	)	$	22,069	$	(328	)	$	29,184	$	(358	)

- 13 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 2 - SECURITIES AVAILABLE FOR SALE (Continued)

Other-Than-Temporary Impairment

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments – securities in a loss position for less than 12 months and securities in a loss position for 12 months or more – and applying the appropriate OTTI model.  Securities classified as available for sale are generally evaluated for OTTI under the provisions of ASC 320-10, Investments - Debt and Equity Securities. In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery.  The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time.

When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in accumulated other comprehensive income becomes the new amortized cost basis of the investment.

As of September 30, 2015, the Company’s securities portfolio consisted of 96 securities, 21 of which were in an unrealized loss position. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company did not have at September 30, 2015 the intent to sell these securities and at that date it was likely that it would not be required to sell the securities before their anticipated recovery, the Company did not consider these securities to be other-than-temporarily impaired at September 30, 2015.

NOTE 3 - FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Investment Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on matrix pricing which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities' relationship to other benchmark quoted securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using estimates of current market rates for each type of security.

- 14 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 3 - FAIR VALUE (Continued)

During times when trading is more liquid, broker quotes are used (if available) to validate the model agency and industry research reports as well as defaults, and deferrals on individual securities are reviewed and incorporated into the calculations.

Loans Held for Sale: Generally, the fair value of loans held for sale is based on what secondary markets are currently offering for loans with similar characteristics or based on an agreed upon sales price with third party investors and typically result in a Level 2 classification of the inputs for determining fair value.

Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

Other Real Estate Owned: Real estate acquired through foreclosure on a loan or by surrender of the real estate in lieu of foreclosure is called “OREO”. OREO is initially recorded at the fair value of the property less estimated costs to sell, which establishes a new cost basis. OREO is subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Valuation adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Valuation adjustments are also required when the listing price to sell an OREO property has had to be reduced below the current carrying value. If there is a decrease in the fair value of the property from the last valuation, the decrease in value is charged to noninterest expense. All income produced from, changes in fair values in, and gains and losses on OREOs is also included in noninterest expense. During the time the property is held, all related operating and maintenance costs are expensed as incurred.

Appraisals for both collateral dependent impaired loans and OREO are performed by certified general appraisers, certified residential appraisers or state licensed appraisers whose qualifications and licenses are annually reviewed and verified by the Bank. Once received, either Bank personnel or an independent review appraiser reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value, and determines whether the appraisal is reasonable. Appraisals for collateral dependent impaired loans and OREO are updated annually. On an annual basis, the Company compares the actual selling costs of collateral that has been liquidated to the selling price to determine what additional adjustment should be made to the appraisal value to arrive at fair value. Beginning in the third quarter of 2010, the Company’s analysis indicated that a discount of 15% should be applied to properties with appraisals performed within 12 months.

Mortgage Banking Derivatives: Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on the anticipated gain from the sale of the underlying loan. Changes in the fair values of these derivatives are included in noninterest income as gain on sale of loans.

- 15 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 3 - FAIR VALUE (Continued)

Assets and Liabilities Measured on a Recurring Basis

			Fair Value Measurements at September 30, 2015 using
	Carrying Value		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Available for sale securities:
U.S. government sponsored entities	$	6,862	$	6,862	$	—
Mortgage-backed (residential)		102,326		102,326		—
State and municipals		2,884		2,782		102
Total available for sale securities		112,072		111,970		102
Loans held for sale		—		—		—

			Fair Value Measurements at December 31, 2014 using
	CarryingValue		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Available for sale securities:
U.S. government sponsored entities	$	15,352	$	15,352	$	—
Mortgage-backed (residential)		74,014		74,014		—
State and municipals		2,074		1,971		103
Total available for sale securities		91,440		91,337		103
Loans held for sale		106		106		—

There were no transfers among fair value pricing levels during the nine months ended September 30, 2015 and 2014.

The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine-month and three-month periods ended September 30, 2015 and 2014:

	FairValue Measurements Using Significant Unobservable Inputs (Level 3) State and County Municipal Securities
	Ninemonths ended September 30,						Three months ended September 30,
	2015			2014			2015		2014
Beginning balance	$	103		$	105		$	102	$	105
Change in fair value		(1	)		(1	)		—		(1	)
Ending balance	$	102		$	104		$	102	$	104

- 16 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 3 - FAIR VALUE (Continued)

The following methods and assumptions were used by the Company in generating its fair value disclosures:

U.S. Government Sponsored Entities and Mortgage-Backed Securities:

The Company uses an independent third party to value its U.S. government sponsored entities and mortgage-backed securities, which are obligations that are not backed by the full faith and credit of the United States government and consist of Government Sponsored Entities that either issue the securities or guarantee the collection of principal and interest payments thereon. The third party’s valuation approach uses relevant information generated by recently executed transactions that have occurred in the market place that involve similar assets, as well as using cash flow information when necessary. These inputs are observable, either directly or indirectly in the market place for similar assets. The Company considers these valuations to be Level 2 pricing; however, when the securities are added to the portfolio after the third party’s system-wide market value monthly update, the valuations are considered Level 3 pricing.

State and Municipal Securities:

The valuation of the Company’s state and municipal securities is supported by analysis prepared by an independent third party. Their approach to determining fair value involves using recently executed transactions for similar securities and market quotations for similar securities. For these securities that are rated by the rating agencies and have recent trades, the Company considers these valuations to be Level 2 pricing. For these securities that are not rated by the rating agencies and for which trading volumes are thin, the valuations are considered Level 3 pricing.

Corporate Securities:

For corporate securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows (Level 3) as determined by an independent third party. The significant unobservable inputs used in the valuation model include discount rates and yields or current spreads to U.S. Treasury rates.

Assets and Liabilities Measured on a Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis are summarized below:

	September 30, 2015
	Carrying Value		FairValue Measurements using other significant unobservable inputs (Level 3)
Assets:
Impaired loans:
1-4 Family residential	$	241	$	241
Commercial real estate		211		211
Commercial, financial and agricultural		103		103
Total impaired loans		555		555
Other real estate owned:
Construction and development		2,526		2,526
1-4 Family residential		665		665
Non-farm, non-residential		3,115		3,115
Total other real estate owned		6,306		6,306

- 17 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 3 - FAIR VALUE (Continued)

	December 31, 2014
	CarryingValue		Fair Value Measurements using other significant unobservable inputs (Level 3)
Assets:
Impaired loans:
Real estate construction	$	727	$	727
1-4 Family residential		244		244
Commercial real estate		1,410		1,410
Other loans		926		926
Total impaired loans		3,307		3,307
Other real estate owned:
Construction and development		4,815		4,815
1-4 Family residential		710		710
Non-farm, non-residential		3,557		3,557
Total other real estate owned		9,082		9,082

Impaired loans, with specific allocations or partial charge offs based on the fair value of the underlying collateral for collateral dependent loans, had a recorded investment of $914 at September 30, 2015, with a valuation allowance of $359, resulting in no additional provision for loan losses for the nine-month period ended September 30, 2015. No additional provision was recorded in the first nine months of 2014 on impaired loans. Impaired loans, with specific allocations or partial charge offs based on the fair value of the underlying collateral for collateral dependent loans, had a recorded investment of $3,373, with a valuation allowance of $66, resulting in no additional provision for loan losses for the year ended December 31, 2014.

Other real estate owned, measured at the lower of carrying or fair value less costs to sell, had a net carrying amount of $6,306, which is made up of the outstanding balance of $7,807, net of a valuation allowance of $1,501 at September 30, 2015, resulting in a write-down of $308 charged to expense in the nine months ended September 30, 2015, compared to a write-down of $523 charged to expense in the first nine months of 2014. Net carrying amount was $9,082 at December 31, 2014, which was made up of the outstanding balance of $10,681, net of a valuation allowance of $1,599.

- 18 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 3 - FAIR VALUE (Continued)

The following table presents quantitative information about Level 3 fair value measurements for financial instruments at fair value on a non-recurring basis at September 30, 2015:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average) (1)
Impaired Loans:
1-4 Family residential	$	241	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (0.0%) (0.0%)
Commercial real estate	$	211	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (8.5%) (7.2%)
Commercial, financial and agricultural	$	103	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (0.0%) (0.0%)
Other real estate owned:
Construction and development	$	2,526	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (9.5%) (0.3%)
1-4 Family residential	$	665	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (10.0%) (4.1%)
Non-farm, non-residential	$	3,115	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (0.0%) (0.0%)

(1) The range presented in the table reflects the discounts applied by the independent appraiser in arriving at their conclusion of market value. Management applies an additional 15% discount to the appraiser’s conclusion of market value to arrive at fair value.

Carrying amount and estimated fair values of significant financial instruments at September 30, 2015 and December 31, 2014 were as follows:

	September30, 2015
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents		30,304		30,304		30,304		—		—
Time deposits in other financial institutions		22,414		22,376		—		22,376		—
Securities available for sale		112,072		112,072		—		111,970		102
Loans held for sale, at fair value		—		—		—		—		—
Loans, net of allowance		258,858		252,556		—		—		252,556
Restricted equity securities		1,727	NA		NA		NA		NA
Accrued interest receivable		1,138		1,138		26		315		797
Financial liabilities
Deposits with stated maturities		205,372		206,334		—		206,334		—
Deposits without stated maturities		203,409		203,409		203,409		—		—
Accrued interest payable		5,760		5,760		2		483		5,275
Subordinated debentures		23,000		13,000		—		—		13,000

- 19 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 3 - FAIR VALUE (Continued)

	December 31, 2014
	Carrying Amount		Total		Level1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	38,256	$	38,256	$	38,256	$	—	$	—
Time deposits in other financial institutions		22,177		21,999		—		21,999		—
Securities available for sale		91,440		91,440		—		91,337		103
Loans held for sale		106		106		—		106		—
Loans, net of allowance		251,265		246,506		—		—		246,506
Restricted equity securities		1,727	NA		NA		NA		NA
Accrued interest receivable		1,034		1,034		21		269		744
Financial liabilities
Deposits with stated maturities		208,386		209,376		—		209,376		—
Deposits without stated maturities		189,694		189,694		189,694		—		—
Accrued interest payable		4,921		4,921		1		400		4,520
Subordinated debentures		23,000		11,500		—		—		11,500

Carrying amount is the estimated fair value for cash and cash equivalents, demand deposits, short-term debt, and variable rate loans or deposits that reprice frequently and fully resulting in a Level 1 classification. Fair value for accrued interest receivable and payable is based on the contractual terms of the facility, resulting in a Level 1, Level 2 or Level 3 classification based on the classification of the respective facility. The method for determining fair values of securities is discussed above. Restricted equity securities do not have readily determinable fair values due to their restrictions on transferability, therefore no fair value is presented. For fixed rate loans and variable rate loans with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk resulting in a Level 3 classification. For fixed and variable rate deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk resulting in a Level 2 classification. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values resulting in a Level 3 classification. Fair value of loans held for sale is based on market quotes resulting in a Level 2 classification. Fair value of subordinated debentures is based on discounted cash flows using current rates for similar financing resulting in a Level 3 classification. The fair value of off-balance-sheet items is not considered material.

- 20 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 4 - LOANS

Loans outstanding by category at September 30, 2015 and December 31, 2014 were as follows:

	September 30, 2015		December 31, 2014
Real estate construction:
Residential construction	$	10,596	$	9,382
Other construction		7,850		16,520
1-4 Family residential:
Revolving, open ended		16,169		17,147
First liens		84,361		83,618
Junior liens		1,676		1,926
Commercial real estate:
Farmland		7,702		7,495
Owner occupied		49,651		42,383
Non-owner occupied		52,580		49,455
Other real estate secured loans		7,095		5,825
Commercial, financial and agricultural:
Agricultural		828		855
Commercial and industrial		17,971		14,659
Consumer		6,634		5,641
Tax exempt		14		31
Other		85		1,499
	$	263,212	$	256,436

- 21 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 4 – LOANS (Continued)

The following tables present activity in allowance for loan losses and the outstanding loan balance by portfolio segment and are based on impairment methods as of September 30, 2015 and 2014. The balances for “recorded investment” in the following tables related to credit quality do not include approximately $797, $790 and $744 in accrued interest receivable at September 30, 2015, September 30, 2014 and December 31, 2014, respectively. Accrued interest receivable is a component of the Company’s recorded investment in loans.

	Real Estate Construction			1-4 Family Residential			Commercial Real Estate			Other Real Estate Secured Loans			Commercial, Financial and Agricultural			Consumer			Tax Exempt		Other Loans			Unallocated			Total
Nine months ended    September 30, 2015
Activity in the allowance for loan    losses:
Beginning Balance	$	892		$	2,332		$	994		$	22		$	399		$	22		$	—	$	—		$	510		$	5,171
Charge-offs		—			(90	)		—			—			(25	)		(6	)		—		(37	)		—			(158	)
Recoveries		128			118			616			—			245			4			—		487			—			1,598
Provision		(322	)		(463	)		(920	)		(10	)		—			(2	)		—		(450	)		(90	)		(2,257	)
Total ending allowance balance		698			1,897			690			12			619			18			—		—			420			4,354
Nine months ended    September 30, 2014
Activity in the allowance for loan    losses:
Beginning Balance	$	1,249		$	3,235		$	1,273		$	33		$	704		$	24		$	—	$	929		$	592		$	8,039
Charge-offs		(103	)		(100	)		—			—			(113	)		—			—		(957	)		—			(1,273	)
Recoveries		43			24			21			—			12			3			—		36			—			139
Provision		(224	)		(602	)		(314	)		(9	)		(121	)		—			—		456			14			(800	)
Total ending allowance balance	$	965		$	2,557		$	980		$	24		$	482		$	27		$	—	$	464		$	606		$	6,105

- 22 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

	Real Estate Construction			1-4 Family Residential			Commercial Real Estate			Other Real Estate Secured Loans			Commercial, Financial and Agricultural			Consumer			Tax Exempt		Other Loans			Unallocated			Total
Three months ended    September 30, 2015
Activity in the allowance for loan    losses:
Beginning Balance	$	775		$	2,016		$	842		$	22		$	414		$	18		$	—	$	—		$	453		$	4,540
Charge-offs		—			(3	)		—			—			(4	)		(6	)		—		(22	)		—			(35	)
Recoveries		—			49			3			—			17			1			—		473			—			543
Provision		(77	)		(165	)		(155	)		(10	)		192			5			—		(451	)		(33	)		(694	)
Total ending allowance balance	$	698		$	1,897		$	690		$	12		$	619		$	18		$	—	$	—		$	420		$	4,354
Three months ended    September 30, 2014
Activity in the allowance for loan    losses:
Beginning Balance	$	997		$	2,560		$	1,134		$	14		$	575		$	24		$	—	$	465		$	537		$	6,306
Charge-offs		(103	)		—			—			—			(113	)		—			—		(14	)		—			(230	)
Recoveries		(1	)		15			4			—			3			1			—		7			—			29
Provision		72			(18	)		(158	)		10			17			2			—		6			69			—
Total ending allowance balance	$	965		$	2,557		$	980		$	24		$	482		$	27		$	—	$	464		$	606		$	6,105

- 23 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 4 – LOANS (Continued)

	Real Estate Construction		1-4 Family Residential		Commercial Real Estate		Other Real Estate Secured Loans		Commercial, Financial and Agricultural		Consumer		Tax Exempt		Other Loans		Unallocated		Total
Ending allowance balance    attributable to loans at    September 30, 2015:
Individually evaluated for    impairment	$	—	$	285	$	78	$	—	$	121	$	—	$	—	$	—	$	—	$	484
Collectively evaluated for    Impairment		698		1,612		612		12		498		18		—		—		420		3,870
Total ending allowance    balance	$	698	$	1,897	$	690	$	12	$	619	$	18	$	0	$	0	$	420	$	4,354
Ending allowance balance    attributable to loans at    December31, 2014:
Individually evaluated for    impairment	$	66	$	126	$	55	$	—	$	—	$	—	$	—	$	—	$	—	$	247
Collectively evaluated for    Impairment		826		2,206		939		22		399		22		—		—		510		4,924
Total ending allowance    balance	$	892	$	2,332	$	994	$	22	$	399	$	22	$	—	$	—	$	510	$	5,171
Loans at September 30, 2015:
Individually evaluated for    impairment	$	4	$	2,239	$	1,650	$	—	$	224	$	4	$	—	$	—			$	4,121
Collectively evaluated for    impairment		18,442		99,967		108,283		7,095		18,575		6,630		14		85				259,091
Total loans balance	$	18,446	$	102,206	$	109,933	$	7,095	$	18,799	$	6,634	$	14	$	85			$	263,212
Loans at December 31, 2014:
Individually evaluated for    impairment	$	5,250	$	1,499	$	1,778	$	—	$	—	$	7	$	—	$	1,351			$	9,885
Collectively evaluated for    impairment		20,652		101,192		97,555		5,825		15,514		5,634		31		148				246,551
Total loans balance	$	25,902	$	102,691	$	99,333	$	5,825	$	15,514	$	5,641	$	31	$	1,499			$	256,436

- 24 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the nine months ended September 30, 2015:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Income Recognized		Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Other construction	$	—	$	—	$	—	$	1,834	$	—	$	—
1-4 Family residential:
Revolving, open ended		53		53		—		54		2		2
Junior liens		—		—		—		41		—		—
Commercial real estate:
Non-owner occupied		32		32		—		630		2		2
Consumer		4		4		—		5		—		—
Other loans		—		—		—		1,013		—		—
Total with no related allowance recorded		89		89		—		3,577		4		4
With an allowance recorded:
Real estate construction:
Other construction		5		5		—		1,041		—		—
1-4 Family residential:
Revolving, open ended		33		33		33		35		2		2
First Liens		1,980		1,979		79		1,850		79		80
Junior liens		173		173		173		43		4		5
Commercial real estate:
Owner occupied		516		516		51		538		33		24
Non-owner occupied		1,102		1,102		27		691		46		46
Commercial, financial and agricultural
Commercial and industrial		224		224		121		56		12		13
Consumer		—		—		—		1		—		—
Total with an allocated allowance recorded		4,033		4,032		484		4,255		176		170
Total	$	4,122	$	4,121	$	484	$	7,832	$	180	$	174

- 25 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the three months ended September 30, 2015:

	Average Recorded Investment		Income Recognized		Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Other construction	$	—	$	—	$	—
1-4 Family residential:
Revolving, open ended		53		—		1
Commercial real estate:
Non-owner occupied		33		1		1
Consumer		5		—		—
Other loans		676		—		—
Total with no related allowance recorded		767		1		2
With an allowance recorded:
Real estate construction:
Other construction		684		—		—
1-4 Family residential:
Revolving, open ended		33		1		1
First Liens		1,984		26		22
Junior liens		87		4		5
Commercial real estate:
Owner occupied		531		17		13
Non-owner occupied		1,105		15		15
Commercial, financial and agricultural
Commercial and industrial		112		12		13
Consumer		—		—		—
Total with an allocated allowance recorded		4,536		75		69
Total	$	5,303	$	76	$	71

- 26 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the nine months ended September 30, 2014:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Income Recognized		Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Residential construction	$	—	$	—	$	—	$	821	$	—	$	—
Other construction		7,383		7,280		—		5,959		—		—
1-4 Family residential:
Revolving, open ended		35		35		—		38		2		2
First liens		705		705		—		951		6		6
Junior liens		—		—		—		42		—		—
Commercial real estate:
Owner occupied		—		—		—		353		—		—
Non-owner occupied		3,214		1,258		—		1,523		2		2
Other real estate loans		109		109		—		115		—		—
Commercial, financial and agricultural:
Agricultural		1		—		—		—		—		—
Commercial and industrial		87		24		—		34		3		4
Consumer		8		8		—		5		—		—
Total with no related allowance recorded		11,542		9,419		—		9,841		13		14
With an allowance recorded:
Real estate construction:
Residential construction		—		—		—		925		56		56
Other construction		1,419		1,419		67		2,845		1		1
1-4 Family residential:
Revolving, open ended		38		38		33		95		3		3
First Liens		1,739		1,739		196		2,583		63		60
Commercial real estate:
Owner occupied		545		545		99		734		50		47
Non-owner occupied		—		—		—		604		—		—
Commercial, financial and agricultural:
Commercial and industrial		1,119		1,119		100		372		27		32
Consumer		—		—		—		8		—		—
Other loans		6,227		926		463		1,158		—		—
Total with an allocated allowance recorded		11,087		5,786		958		9,324		200		199
Total	$	22,629	$	15,205	$	958	$	19,165	$	213	$	213

- 27 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the three months ended September 30, 2014:

	Average Recorded Investment		Income Recognized			Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Residential construction	$	478	$	—		$	—
Other construction		5,356		—			—
1-4 Family residential:
Revolving, open ended		20		2			2
First liens		777		(1	)		(2	)
Commercial real estate:
Non-owner occupied		1,417		2			2
Other real estate loans		112		—			—
Commercial, financial and agricultural:
Commercial and industrial		68		3			4
Consumer		8		—			—
Total with no related allowance recorded		8,236		6			6
With an allowance recorded:
Real estate construction:
Residential construction		592		(2	)		(2	)
Other construction		3,407		(2	)		(2	)
1-4 Family residential:
Revolving, open ended		53		2			2
First Liens		1,453		32			29
Commercial real estate:
Owner occupied		545		15			12
Non-owner occupied		18		(8	)		(8	)
Commercial, financial and agricultural:
Commercial and industrial		567		27			32
Consumer		5		—			—
Other loans		926		—			—
Total with an allocated allowance recorded		7,566		64			63
Total	$	15,802	$	70		$	69

- 28 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2014:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Income Recognized		Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Residential construction	$	—	$	—	$	—	$	821	$	—	$	—
Other construction		3,952		3,849		—		5,102		—		—
1-4 Family residential:
Revolving, open ended		54		54		—		42		3		3
First liens		—		—		—		774		6		6
Junior liens		108		108		—		69		—		(1	)
Commercial real estate:
Owner occupied		—		—		—		353		—		—
Non-owner occupied		3,188		1,233		—		1,518		3		3
Other real estate loans		—		—		—		88		—		—
Commercial, financial and agricultural:
Commercial and industrial		—		—		—		28		—		—
Consumer		4		4		—		3		—		—
Other Loans		6,652		1,351		—		676		—		—
Total with no related allowance recorded		13,958		6,599		—		9,474		12		11
With an allowance recorded:
Real estate construction:
Residential construction		—		—		—		925		55		56
Other construction		1,402		1,402		66		2,842		1		1
1-4 Family residential:
Revolving, open ended		37		37		33		94		3		4
First Liens		1,299		1,299		93		2,474		65		69
Commercial real estate:
Owner occupied		545		545		55		734		64		66
Non-owner occupied		—		—		—		604		—		—
Commercial, financial and agricultural:
Commercial and industrial		—		—		—		92		—		—
Consumer		3		3		—		9		—		—
Other loans		—		—		—		926		—		—
Total with an allocated allowance recorded		3,286		3,286		247		8,700		188		196
Total	$	17,244	$	9,885	$	247	$	18,174	$	200	$	207

Troubled Debt Restructurings

The Company has $7,753 of loans with allocated specific reserves of $278 to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2015 compared to $9,852 with allocated specific reserves of $214 at December 31, 2014.  The Company lost $40 and $107 of interest income in the nine months and $3 and $95 of interest income in the three months ended September 30, 2015 and 2014, respectively, that would have been recorded in interest income if the specific loans had not been restructured.  The Bank had no commitments to lend additional funds to loans classified as troubled debt restructurings at September 30, 2015 or December 31, 2014.

- 29 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 4 – LOANS (Continued)

During the first nine months of 2015, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or granting of amortization terms for balloon notes that are longer than the Bank’s typical practice.

Modifications involving a reduction of the stated interest rate and extension of the maturity date of the loan were for periods ranging from six months to two years.

Loans classified as troubled debt restructurings are included in impaired loans.

The following table presents loans by class modified as troubled debt restructurings that occurred during the first nine months of 2015 and 2014:

	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
September 30, 2015
Real estate construction:
Other construction		1	$	52	$	52
1-4 Family residential:
Revolving, open ended		1		4		4
First liens		2		1,677		1,677
Commercial real estate:
Owner occupied
Non-owner occupied		1		1,113		1,113
Commercial, financial and agricultural
Commercial and industrial		2		237		237
Total		7	$	3,083	$	3,083
September 30, 2014
1-4 Family residential:
Revolving, open ended		1	$	35	$	35
First liens		1		263		263
Commercial real estate:
Owner occupied		2		545		545
Non-owner occupied		1		35		35
Commercial, financial and agricultural
Commercial and industrial		3		38		38
Total		8	$	916	$	916

Troubled debt restructurings described above had an outstanding balance of $3,027 at September 30, 2015. There was no increase for the allowance for loan losses during the first nine months of 2015.  Troubled debt restructurings still accruing interest totaled $3,901 and $2,140 at September 30, 2015 and December 31, 2014, respectively.

A loan is considered to be in payment default once it is more than 90 days contractually past due under the modified terms.  There were no troubled debt restructurings for which there was a payment default within twelve months following the modification during the first nine months of 2015 or 2014.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without modification.  This evaluation is performed in

- 30 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

accordance with the Company’s internal loan policy.  Nonperforming loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

- 31 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 4 – LOANS (Continued)

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still accruing by class of loans as of September 30, 2015 and December 31, 2014:

	September 30, 2015				December 31, 2014
	Nonaccrual		Loans past due over90 days still accruing		Nonaccrual		Loans past due over 90 daysstill accruing
Real estate construction:
Other construction	$	—	$	—	$	5,236	$	—
1-4 Family residential:
Revolving, open ended		109		—		78		—
First Liens		153		—		359		—
Junior Liens		173		—		—		—
Commercial real estate:
Farmland		82		—		—		—
Owner occupied		—		—		324		—
Non-owner occupied		—		—		1,199		—
Other real estate loans		—		—		108		—
Consumer		19		—		—		—
Other loans		—		—		1,351		—
Total	$	536	$	—	$	8,655	$	—

The following table presents the aging of the recorded investment in past due loans, including nonaccrual loans as of September 30, 2015 and December 31, 2014 by class of loans:

	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater than 90Days Past Due		Total Past Due		Loans Not Past Due		Total
September 30, 2015
Real estate construction:
Residential construction	$	—	$	67	$	50	$	117	$	10,479	$	10,596
Other construction		1,065		7		—		1,072		6,778		7,850
1-4 Family residential:
Revolving, open ended		—		—		—		—		16,169		16,169
First Liens		308		253		126		687		83,674		84,361
Junior Liens		—		—		173		173		1,503		1,676
Commercial real estate:
Farmland		94		—		82		176		7,526		7,702
Owner occupied		—		348		—		348		49,303		49,651
Non-owner occupied		—		—		—		—		52,580		52,580
Other real estate secured loans		—		—		—		—		7,095		7,095
Commercial, financial and agricultural:
Agricultural		—		—		—		—		828		828
Commercial and industrial		—		21		—		21		17,950		17,971
Consumer		8		—		—		8		6,626		6,634
Tax exempt		—		—		—		—		14		14
Other loans		—		—		—		—		85		85
Total	$	1,475	$	696	$	431	$	2,602	$	260,610	$	263,212

- 32 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 4 – LOANS (Continued)

	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
December 31, 2014
Real estate construction:
Residential construction	$	—	$	—	$	—	$	—	$	9,382	$	9,382
Other construction		66		8		—		74		16,446		16,520
1-4 Family residential:
Revolving, open ended		4		74		78		156		16,991		17,147
First Liens		1,111		215		359		1,685		81,933		83,618
Junior Liens		—		—		—		—		1,926		1,926
Commercial real estate:
Farmland		—		—		—		—		7,495		7,495
Owner occupied		—		—		—		—		42,383		42,383
Non-owner occupied		72		—		—		72		49,383		49,455
Other real estate secured loans		108		—		—		108		5,717		5,825
Commercial, financial and agricultural:
Agricultural		—		—		—		—		855		855
Commercial and industrial		31		—		—		31		14,628		14,659
Consumer		35		—		—		35		5,606		5,641
Tax exempt		—		—		—		—		31		31
Other loans		—		—		926		926		573		1,499
Total	$	1,427	$	297	$	1,363	$	3,087	$	253,349	$	256,436

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually by classifying the loans as to credit risk.  The Company assigns an initial credit risk rating on every loan.  All loan relationships with aggregate debt greater than $250 are reviewed at least annually or more frequently if performance of the loan or other factors warrants review.  Smaller balance loans are reviewed and evaluated based on changes in loan performance, such as becoming past due or upon notifying the Bank of a change in the borrower’s financial status.  This analysis is performed on a monthly basis.  The Company uses the following definitions for risk ratings:

Watch.  Loans characterized by borrowers who have marginal cash flow, marginal profitability, or have experienced operating losses and declining financial condition. The borrower has satisfactorily handled debts with the Bank in the past, but in recent months has either been late, delinquent in making payments, or made sporadic payments.  While the Bank continues to be adequately secured, the borrower’s margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition.  Other characteristics of borrowers in this class include inadequate credit information and weakness of financial statement and repayment capacity, but with collateral that appears to limit the Bank’s exposure.  This classification includes loans to established borrowers that are reasonably margined by collateral, but where potential for improvement in financial capacity is limited.

Special Mention.  Loans with potential weaknesses that deserve management’s close attention.  If left uncorrected, these potential weaknesses may result in deteriorating prospects for the repayment source or in the Bank’s credit position in the future.

Substandard.  Loans inadequately protected by the payment capacity of the borrower or the pledged collateral

Doubtful.  Loans with the same characteristics as substandard loans with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently existing facts, conditions, and values.   These are poor quality loans in which neither the collateral nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time or evidence of permanent impairment in the collateral securing the loan.

- 33 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 4 – LOANS (Continued)

Impaired loans are evaluated separately from other loans in the Bank’s portfolio.  Credit quality information related to impaired loans was presented above and is excluded from the tables below.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.  As of September 30, 2015 and December 31, 2014, and based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:

	Pass		Watch		Special Mention		Substandard		Doubtful
September 30, 2015
Real estate construction:
Residential construction	$	10,366	$	230	$	—	$	—	$	—
Other construction		6,338		139		7		1,361		—
1-4 Family residential:
Revolving, open ended		15,745		32		—		305		—
First Liens		70,693		10,905		—		783		—
Junior Liens		1,503		—		—		—		—
Commercial real estate:
Farmland		5,739		186		—		1,777		—
Owner occupied		44,123		5,013		—		—		—
Non-owner occupied		49,310		1,199		—		936		—
Other real estate loans		7,095		—		—		—		—
Commercial, financial and agricultural:
Agricultural		818		10		—		—		—
Commercial and industrial		16,206		1,130		—		411		—
Consumer		6,593		4		—		33		—
Tax exempt		14		—		—		—		—
Other loans		85		—		—		—		—
Total	$	234,628	$	18,848	$	7	$	5,606	$	—

	Pass		Watch		Special Mention		Substandard		Doubtful
December 31, 2014
Real estate construction:
Residential construction	$	6,250	$	3,132	$	—	$	—	$	—
Other construction		6,673		3,756		—		840		—
1-4 Family residential:
Revolving, open ended		16,664		32		—		359		—
First Liens		66,655		11,256		—		4,408		—
Junior Liens		1,819		—		—		—		—
Commercial real estate:
Farmland		4,963		905		—		1,626		—
Owner occupied		37,204		4,634		—		—		—
Non-owner occupied		39,867		5,535		—		2,821		—
Other real estate loans		5,825		—		—		—		—
Commercial, financial and agricultural:
Agricultural		786		12		—		56		—
Commercial and industrial		13,626		978		—		56		—
Consumer		5,614		3		—		17		—
Tax exempt		31		—		—		—		—
Other loans		148		—		—		—		—
Total	$	206,125	$	30,243	$	—	$	10,183	$	—

- 34 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 5 - INCOME PER SHARE

In accordance with ASC 260-10, Earnings Per Share, basic income per share available to common shareholders is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted income per share available to common shareholders reflects the potential dilution that could occur if securities, stock options or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income of the Company.  The factors used in the income per share computation follow:

	Nine months ended September 30,						Three months ended September 30,
	2015			2014			2015			2014
Basic
Net income	$	4,219		$	1,824		$	1,778		$	232
Less: Earnings allocated to preferred stock		(1,936	)		(1,147	)		(1,102	)		(424	)
Less: Accretion of preferred stock discount		—			(33	)		—			—
Net Income available to common stock	$	2,283		$	644		$	676		$	(192	)
Weighted average common shares		3,275,204			3,274,844			3,275,421			3,274,876
Basic net income per share	$	0.70		$	0.20		$	0.21		$	(0.06	)
Diluted
Net income available to common stock	$	2,283		$	644		$	676		$	(192	)
Weighted average common shares		3,275,204			3,274,844			3,275,421			3,274,876
Add: Dilutive effects of assumed exercises of stock    options		—			—			—			—
Average common shares and dilutive potential common    shares outstanding		3,275,204			3,274,844			3,275,421			3,274,876
Diluted net income per share	$	0.70		$	0.20		$	0.21		$	(0.06	)

At September 30, 2015 and 2014, respectively, stock options for 42,400 and 55,100 shares of common stock were not considered in computing diluted net income per share for the nine-month and three-month periods ended September 30, 2015 and 2014 because they were antidilutive.

- 35 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 6 - INCOME TAXES

The Company recorded no tax expense during the first nine months of 2015.  During 2010, the Company established a valuation allowance against all of its deferred tax assets and has maintained that valuation allowance through the first nine months of 2015.  The Company intends to maintain this valuation allowance until it determines it is more likely than not that the asset can be realized through current and future taxable income.  Because the Company has recorded a valuation allowance against its deferred tax assets, any deferred tax benefit or expense will be offset by a corresponding increase or decrease, respectively, to the valuation allowance.  Until the reversal of the deferred tax valuation allowance, tax benefit or expense from current year operations is expected to be minimal.

NOTE 7 – REGULATORY MATTERS

As a result of improvements in the Bank’s financial condition and results of operations and the Bank’s compliance with the terms thereof, the written agreement that the Bank had entered into with the Tennessee Department of Financial Institutions (the “Department”) on March 14, 2013 was terminated effective October 29, 2014.  In addition, the Federal Deposit Insurance Corporation (“FDIC”) terminated the consent order that was entered into with the Bank on September 20, 2011 (the “Consent Order”), effective November 19, 2014.

In connection with the termination of the written agreement the Bank had entered into with the Department and the Consent Order, the Bank reached an understanding with the FDIC and the Department in the form of a single informal agreement with both agencies that became effective on October 27, 2014.  The informal agreement significantly reduced the restrictions that were placed on the Bank under the Consent Order and the written agreement with the Department.  

As a result of continued improvements in the Bank’s financial condition, the informal agreement was terminated by the FDIC and the Department effective September 29, 2015.  With the termination of the informal agreement, the Bank is no longer subject to any supervisory orders from its primary federal and state regulators.

Bank holding companies with total consolidated assets in excess of $1.0 billion and banks are subject to regulatory capital requirements administered by state and federal banking agencies.  Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off‑balance‑sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators.  Failure to meet minimum capital requirements can initiate regulatory actions that could have a direct material effect on the financial statements.

Prompt corrective action regulations classify banks into one of five capital categories depending on how well they meet their minimum capital requirements.  Although these terms are not used to represent the overall financial condition of a bank, the classifications are:  well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized.  If adequately capitalized or worse, or subject to a written agreement, consent order, or cease and desist order requiring higher minimum capital levels (as the Bank was prior to termination of the Consent Order), regulatory approval would be required for the Bank to accept, renew or rollover brokered deposits.  If a bank is classified as undercapitalized or worse, its capital distributions are restricted, as is its asset growth and expansion, and capital restoration plans are required.  At September 30, 2015, the Bank’s capital ratios were above those levels necessary to be considered “well capitalized” under the regulatory framework for prompt corrective action and all ratios were above those levels required by the informal agreement the Bank has entered into with the FDIC and the Department.  Because the Company’s total assets were less than $1,000,000 at September 30, 2015, the Company is not required to maintain certain capital levels.  Had the Company’s assets exceeded $1,000,000 at that date, the Company’s capital ratios would have been below what is required to be considered “adequately capitalized” under the regulatory framework.  Two of the four capital ratios would have been considered “adequate”; however, the Tier 1 to Average Assets ratio and Common Equity Tier I ratio were below the requirements to be considered “adequate”, which would have prohibited the Company from being “adequately capitalized”.

- 36 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 7 – REGULATORY MATTERS (Continued)

Under the terms of the written agreement that the Company has entered into with the Federal Reserve Bank of Atlanta (the “Written Agreement”), the Company agreed to, among other things, take the following actions:

· Take appropriate steps to fully utilize the Company’s financial and managerial resources to serve as a source of strength to the Bank, including taking steps to ensure that the Bank complies with the Consent Order while it remained in effect;

· Submit within 60 days of April 19, 2012 a written plan to maintain sufficient capital at the Company on a consolidated basis, and within 10 days of approval of the plan by the Federal Reserve Bank of Atlanta (the “FRB”), adopt the approved capital plan;

· Submit within 60 days of April 19, 2012 a written statement of the Company’s planned sources and uses of cash for debt service, operating expenses, and other purposes for 2012;

· Provide notice in compliance with applicable federal law and regulations, of any changes in directors or senior executive officer of the Company;

· Comply with applicable federal law and regulations restricting indemnification and severance payments; and

· Provide within 45 days after the end of each calendar quarter, a written progress report detailing the form and manner of all actions taken to secure compliance with the provisions of the Written Agreement.

In addition, under the terms of the Written Agreement, the Company has agreed to, among other things:

· Refrain from declaring or paying any dividends without prior approval of the FRB;

· Not directly or indirectly take dividends or any other form of payment representing a reduction in capital from the Bank without prior approval;

· Not (along with the Company’s non-bank subsidiary) make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without prior approval;

· Not (along with the Company’s non-bank subsidiary) directly or indirectly incur, increase, or guarantee any debt without prior approval; and

· Not directly or indirectly purchase or redeem any shares of its stock without prior approval.

As of September 30, 2015, all of the plans required to be submitted to the FRB have been submitted and approved.  Management believes that the Company is in compliance with the requirements of the Written Agreement as of September 30, 2015.  The Written Agreement remains in effect.

On September 20, 2011, the Bank consented to the issuance of the Consent Order.  The Consent Order, which was terminated effective November 19, 2014 in connection with the Bank’s entering into an informal agreement with the FDIC (which itself was terminated effective September 29, 2015), required the Bank to attain and achieve regulatory capital ratios higher than those required by regulatory standards, improve, among other things, its processes for identifying and classifying problem loans, and improve its overall profitability.  The Consent Order required the Bank to formulate written plans detailing how the Bank would achieve such requirements.  The Bank prepared and submitted all of the plans required by the Consent Order to the FDIC and the FDIC approved those plans as written.  In addition, the terms of the Consent Order required the Bank to provide quarterly progress reports to the FDIC.  For more information regarding the Consent Order, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.”  On March 14, 2013, the Bank entered into a written agreement with the Department, the terms of which were substantially the same as those of the Consent Order, including required minimum levels of capital that the Bank must maintain.  On September 29, 2015, the informal agreement the Bank had entered into with the FDIC and the Department was terminated.  As a result, all supervisory orders that pertain to the Bank have been terminated.

- 37 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 7 – REGULATORY MATTERS (Continued)

The Company’s principal source of funds for dividend and/or interest payments is dividends received from the Bank.  Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies.  Under these regulations, the amount of dividends that may be paid by the Bank in any calendar year is limited to the current year’s net income, combined with the retained net income of the preceding two years, subject to the capital requirements described above.  Although the Bank was profitable in each of 2012, 2013, 2014 and the first nine months of 2015, the Bank was prohibited under the terms of the Consent Order with the FDIC and the written agreement with the Department (and, following the termination of the Consent Order and the written agreement with the Department, the informal agreement with the Department and the FDIC) from paying dividends to the Company without prior approval from the FDIC and the Department. With the termination of the informal agreement on September 29, 2015, the Bank is no longer subject to these restrictions.  The Company is also restricted in the types and amounts of dividends it can pay pursuant to the terms of the preferred stock it issued to the U.S. Treasury pursuant to the U.S. Treasury’s Capital Purchase Program under the Troubled Assets Relief Program, and by the terms of the Written Agreement, which prohibits the Company from paying interest or dividends (including interest on the Company’s subordinated debentures and dividends on the Company’s preferred stock) without the FRB’s prior approval.

Following the termination of the informal agreement the Bank had entered into with the FDIC and Department, the Bank is no longer subject to restrictions from the Department on its ability to pay dividends to the Company (other than the restrictions under applicable Tennessee law limiting the amount of dividends a bank incorporated under the laws of the state of Tennessee may pay to its shareholders to the current year’s net income and any retained net income for the prior two years).  However, for so long as the Bank has negative retained earnings, as it did at September 30, 2015, the Bank must receive the prior approval of the FDIC before it may pay a dividend to the Company.  At September 30, 2015, with the approval of the FDIC, the Bank could dividend up to $10,262 to the Company, without the consent of the Commissioner of the Department.

- 38 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 7 – REGULATORY MATTERS (Continued)

Banks and bank holding companies with total assets inexcess of $1,000,000 are subject to various regulatory capital requirements administered by State and Federal banking agencies.  The Company’s and the Bank’s capital amounts and ratios at September 30, 2015 and December 31, 2014, were as follows:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Applicable Regulatory Provisions (1)					Required by terms of Regulatory Agreement (2)
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2015
Total Capital to risk weighted assets
Community First Bank & Trust	$	50,013		17.02	%	$	23,505		8.00	%	$	29,381		10.00	%	$	35,257		12.00	%
Consolidated		32,657		11.08	%		23,583		8.00	%		29,478		10.00	%	N/A		N/A
Common Equity Tier 1 Capital to risk    weighted assets
Community First Bank & Trust	$	46,332		15.77	%	$	13,222		4.50	%	$	19,098		6.50	%	N/A		N/A
Consolidated	N/A		N/A			N/A		N/A			N/A		N/A			N/A		N/A
Tier 1 Capital to risk weighted assets
Community First Bank & Trust	$	46,332		15.77	%	$	17,629		6.00	%	$	23,505		8.00	%	$	29,381		10.00	%
Consolidated		19,309		6.55	%		11,791		4.00	%		17,687		6.00	%	N/A		N/A
Tier 1 Capital to average assets
Community First Bank & Trust	$	46,332		10.17	%	$	18,229		4.00	%	$	22,786		5.00	%	$	38,736		8.50	%
Consolidated		19,309		4.22	%		18,320		4.00	%	N/A		N/A			N/A		N/A
December 31, 2014
Total Capital to risk weighted assets
Community First Bank & Trust	$	44,173		16.32	%	$	21,654		8.00	%	$	27,068		10.00	%	$	32,481		12.00	%
Consolidated		26,624		9.83	%		21,668		8.00	%		27,086		10.00	%	N/A		N/A
Tier 1 Capital to risk weighted assets
Community First Bank & Trust	$	40,768		15.06	%	$	10,827		4.00	%	$	16,241		6.00	%	$	27,068		10.00	%
Consolidated		15,477		5.71	%		10,834		4.00	%		16,251		6.00	%	N/A		N/A
Tier 1 Capital to average assets
Community First Bank & Trust	$	40,768		9.32	%	$	17,490		4.00	%	$	21,862		5.00	%	$	34,979		8.50	%
Consolidated		15,477		3.52	%		17,586		4.00	%	N/A		N/A			N/A		N/A

(1) Because the Company’s total assets were less than $1,000,000 at September 30, 2015, the Company was not, at that date, subject to capital level requirements at that level.

(2) Reflects minimum capital ratios required by the informal agreement the Bank entered into with the FDIC and the Department on October 27, 2014.  The informal agreement was terminated on September 29, 2015.

The Bank’s capital ratios at September 30, 2015 were above those levels necessary to be considered “well capitalized” under the regulatory framework for prompt corrective action.

Because the Company’s total assets were less than $1,000,000 at September 30, 2015, the Company is not required to meet certain capital level requirements.  Had the Company’s assets exceeded $1,000,000 at that date, the Company’s capital levels at September 30, 2015 would have been considered below those required to be considered “adequately capitalized” under applicable regulations because only two of the four capital ratios were above the levels necessary to be considered “adequate”. The Company’s Tier 1 to Average Assets ratio and Common Equity Tier I ratio were below the requirements to be considered “adequate”, which would have prohibited the Company from being considered “adequately capitalized”.

- 39 -

COMMUNITY FIRST, INC.

Notes to Consolidated Financial Statements

September 30, 2015

(Unaudited)

NOTE 7 – REGULATORY MATTERS (Continued)

In July 2013, the Federal banking regulators, in response to the statutory requirements of The Dodd-Frank Wall Street Reform and Consumer Protection Act, adopted new regulations implementing the Basel Capital Adequacy Accord (“Basel III”) and the related minimum capital ratios. The new capital requirements which were effective January 1, 2015 and apply to banks and bank holding companies with in excess of $1,000,000 in assets,  include a new “Common Equity Tier 1 Ratio”, which has stricter rules as to what qualifies as Common Equity Tier 1 Capital.  A summary of the changes to the regulatory capital ratios are as follows:

	Guideline in Effect At December 31, 2014						Basel III Requirements
	Adequately Capitalized			Well Capitalized			Adequately Capitalized			Well Capitalized
Common Equity Tier 1 Ratio (Common Equity to Risk    Weighted Assets)	Not Applicable			Not Applicable				4.5	%		6.5	%
Tier 1 Capital to Risk Weighted Assets		4	%		6	%		6	%		8	%
Total Capital to Risk Weighted Assets		8	%		10	%		8	%		10	%
Tier 1 Leverage Ratio		4	%		5	%		4	%		5	%

The guidelines under Basel III also establish a 2.5% capital conservation buffer requirement that is phased in over three years beginning January 1, 2016. The buffer is related to risk weighted assets. The Basel III minimum requirements for capital adequacy after giving effect to the buffer are as follows:

	2016			2017			2018			2019
Common Equity Tier 1 Ratio		5.125	%		5.75	%		6.375	%		7.0	%
Tier 1 Capital to Risk-Weighted Assets Ratio		6.625	%		7.25	%		7.875	%		8.5	%
Total Capital to Risk-Weighted Assets Ratio		8.625	%		9.25	%		9.875	%		10.5	%

As described above, because the Company’s total assets are less than $1,000,000, the Company will not be required to comply with these new capital guidelines required under Basel III until its total assets exceed $1,000,000.

In order to avoid limitations on capital distributions such as dividends and certain discretionary bonus payments to executive officers, a banking organization must maintain capital ratios above the minimum ratios including the buffer. The requirements of Basel III also place additional restrictions on the inclusion of deferred tax assets and capitalized mortgage servicing rights as a percentage of Tier 1 Capital. In addition, the risk weights assigned to certain assets such as past due loans and certain real estate loans have been increased. The requirements of Basel III allowed banks and bank holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation.  The Company and the Bank have opted out of this requirement.

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

OVERVIEW

(amounts in thousands, except share and per share data)

The following discussion compares the financial condition of the Company at September 30, 2015 to December 31, 2014, and the results of operations for the nine months and three months ended September 30, 2015 and 2014.  This discussion should be read in conjunction with the interim financial statements and footnotes included herein.

Certain of the statements made herein, including information incorporated herein by reference to other documents, are “forward-looking statements” within the meaning and subject to the protections of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).  Forward-looking statements include statements with respect to our beliefs, plans, objectives, goals, expectations, anticipations, assumptions, estimates, intentions, and future performance, and involve known and unknown risks, uncertainties and other factors, which may be beyond our control, and which may cause our actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.  All statements other than statements of historical fact are statements that could be forward-looking statements.  You can identify these forward-looking statements through our use of words such as “may,” “will,” “anticipate,” “assume,” “should,” “indicate,” “would,” “believe,” “contemplate,” “expect,” “estimate,” “continue,” “plan,” “point to,” “project,” “could,” “intend,” “target,” and other similar words and expressions of the future.

These forward-looking statements may not be realized due to a variety of factors, including, without limitation those described under Item 1A, “Risk Factors”, in our Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 27, 2015 (File No. 000-49966) (the “2014 Form 10-K”) and in other reports we file with the SEC from time to time, and the following:

· deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses;

· greater than anticipated deterioration or lack of sustained growth in the national or local economies including the Nashville-Davidson-Murfreesboro-Franklin MSA;

· changes in loan underwriting, credit review or loss reserve policies associated with economic conditions, examination conclusions or regulatory developments;

· the inability to meet the requirements of our regulatory agreements to which we are subject;

· failure to maintain capital levels above levels required by banking regulations;

· the inability to comply with regulatory capital requirements and required capital maintenance levels, including those resulting from the implementation of the Basel III capital guidelines, and to secure any required regulatory approvals for capital actions;

· the vulnerability of our network and our online banking portals to unauthorized access, computer viruses, phishing schemes, spam attacks, human errors, natural disasters, power loss and other security breaches;

· the inability to grow our loan portfolio;

· governmental monetary and fiscal policies, as well as legislative and regulatory changes, including changes in banking, securities and tax laws and regulations;

· the risks of changes in interest rates on the levels, composition and costs of deposits, loan demand, and the values of loan collateral, securities, and interest sensitive assets and liabilities;

· continuation of the historically low short-term interest rate environment;

· the ability to retain large, uninsured deposits;

· rapid fluctuations or unanticipated changes in interest rates;

· any activity that would cause us to conclude that there was impairment of any asset, including goodwill or any other intangible asset;

· our recording a further valuation allowance related to our deferred tax asset;

- 41 -

OVERVIEW (Continued)

· the effects of competition from a wide variety of local, regional, national and other providers of financial, investment, and insurance services;

· changes in state and federal legislation, regulations or policies applicable to banks and other financial service providers, including regulatory or legislative developments arising out of current unsettled conditions in the economy, including implementation of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”);

· the failure of assumptions underlying the establishment of reserves for possible loan losses and other estimates;

· further deterioration in the valuation of other real estate owned;

· changes in accounting policies, rules and practices;

· the actions of the owners of the preferred securities (the “Preferred Stock”) we sold through our participation in the United States Department of the Treasury’s (the “U.S. Treasury”) Capital Purchase Program (“CPP”);

· changes in technology or products that may be more difficult, or costly, or less effective, than anticipated;

· the effects of war or other conflict, acts of terrorism or other catastrophic events that may affect general economic conditions; and

· other circumstances, many of which may be beyond our control.

All written or oral forward-looking statements that are made by or are attributable to us are expressly qualified in their entirety by this cautionary notice.  We have no obligation and do not undertake to update, revise or correct any of the forward-looking statements after the date of this report, or after the respective dates on which such statements otherwise are made.

FINANCIAL CONDITION

At September 30, 2015, total assets were $460,658 and total liabilities were $447,262.  Total assets increased $17,103 or 3.9% compared to $443,555 at December 31, 2014.  Total liabilities increased $14,593 or 3.4%, compared to $432,669 at December 31, 2014.  The increase in assets was caused by increases in securities available for sale and net loans offset by decreases in cash and cash equivalents and other real estate owned.  The increase in liabilities was caused primarily by an increase in noninterest-bearing deposits.  Total equity increased 23.1%, or $2,510, to $13,396 at September 30, 2015 compared to $10,886 at December 31, 2014.  The increase in equity is primarily due to net income during the first nine months of 2015.

Cash and Cash Equivalents

Cash and cash equivalents were $30,304 at September 30, 2015 compared to $38,256 at December 31, 2014.  This decrease is primarily due to the use of cash to invest in securities available for sale and to fund loan growth.

Time Deposits in Other Financial Institutions

Time deposits in other financial institutions totaled $22,414 at September 30, 2015 compared to $22,177 at December 31, 2014.  Management has begun utilizing time deposits in other financial institutions in conjunction with the Bank’s securities portfolio in order to maximize yield and maintain a reasonable total duration for the Bank’s assets outside of the loan portfolio.   Original maturities of time deposits in other financial institutions range from ten months to 5 years.   Most of the CDs with maturities beyond three years are callable with minimal early withdrawal penalties.  All of the deposits are in FDIC or National Credit Union Administration insured institutions and the amount on deposit with each individual institution does not exceed the deposit insurance limit of $250.  As of September 30, 2015, time deposits in other financial institutions had a weighted average rate of 1.05% and a weighted average remaining life of 0.837 years. 

Loans

Total loans (excluding loans held for sale) at September 30, 2015 were $263,212, compared to $256,436 at December 31, 2014, an increase of $6,776 or 2.6%.  The increase in loans during the first nine months of 2015 is due to an increased demand for new loans and decreased foreclosure activity.

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FINANCIAL CONDITION (Continued)

Loans in the portfolio at September 30, 2015 of approximately $40,265, or 15.3%, are at a variable rate of interest while $222,411, or 84.5%, are at a fixed rate, and $536, or 0.2%, are nonaccrual.  $41,161, or 15.6%, of total loans reprice within one year of September 30, 2015. As market rates dropped during the economic recession, management implemented rate floors for many variable rate loans in an effort to protect the Bank’s net interest margin.  As a result, when market rates begin to rise, loans at their floor will not reprice at higher rates until market rates rise above their contractual floor rates.  Only the loans noted above that have variable rates not at a floor rate will reprice with the first increase in market rates.  The existence of these rate floors may negatively impact our net interest margin when rates begin to rise, at least until rates rise above these floors.

On September 30, 2015, the Company’s loan to deposit ratio (including loans held for sale) was 64.4%, which is the same as it was at December 31, 2014.  Management expects loan demand to modestly improve through the remainder of 2015, though foreclosure activity could result in some additional decreases in loan balances.  Management anticipates that there will not be significant growth in loans until there are indicators of significant improvements in both the local and national economy, leading customers to begin spending more and resulting in increased demand.  If the Company’s deposit growth among core deposit customers continues to outpace its loan demand, the Company’s net interest margin may be adversely affected as the funds from these deposits may be invested in securities and other interest earning assets, like time deposits in other financial institutions, that offer lower yields than loans.

Securities Available for Sale

Set forth below is a table showing the carrying amount and breakdown of the Company’s securities available for sale at September 30, 2015 and December 31, 2014:

	September 30, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
U.S. government sponsored entities	$	6,862		6.1	%	$	15,352		16.8	%
Mortgage-backed (residential)		102,326		91.3	%		74,014		80.9	%
State and municipal		2,884		2.6	%		2,074		2.3	%
Total	$	112,072		100.0	%	$	91,440		100.0	%

The Company’s securities portfolio is used to, among other things, provide yield and for pledging purposes to secure public fund deposits.  As of September 30, 2015, the carrying value of securities increased $20,632 to $112,072, compared to $91,440 at December 31, 2014.  Securities available for sale as a percentage of total assets was 24.3% at September 30, 2015, compared to 20.6% at December 31, 2014.  Net unrealized gain on securities available for sale was $449 at September 30, 2015, compared to a net unrealized gain of $233 at December 31, 2014. Changes in interest rates in the securities market caused this fluctuation in the net unrealized loss/gain.  Management is continually monitoring the credit quality of the Bank’s investments and believes that the unrealized losses that existed in the Bank’s portfolio at September 30, 2015 are temporary based on the bond ratings and anticipated recovery of bonds held.  At September 30, 2015, the Company did not have the intent to sell these securities and it is more likely than not that it will not be required to sell the securities before their anticipated recovery.

Other Real Estate Owned

At September 30, 2015, other real estate owned (“ORE”) totaled $8,704, a decrease of $5,030 from $13,734 at December 31, 2014.  This decrease is primarily due to the sale of properties during the first three quarters of 2015.  The balance of ORE is comprised of properties acquired through or in lieu of foreclosure on real estate loans, and loans made to facilitate the sale of ORE properties that are required to be reported as ORE (“FAS 66 Loans”). The balances recorded for each individual property are based on appraisals that are not more than twelve months old, discounted by 15%.  The 15% discount was adopted by the Company beginning in the third quarter of 2010 based on an analysis of actual recoveries of ORE balances, including selling costs.  Based on that analysis, the Company recorded a valuation allowance of $346 (recognized through ORE expense) in the third quarter of 2010.  In addition, the Company began applying the 15% discount in its determination of specific reserves for impaired loans that are collateral dependent.  As a result, the majority of the financial loss incurred by the Company as a result of the 15% discount has been recognized through loan charge-offs and the provision for loan losses at the time the property is transferred to ORE, with the foreclosed property being transferred into ORE at the discounted value. The Company annually updates its analysis regarding the 15% discount.  Should such updates indicate that a change in the 15% discount is warranted, the Company would implement the change accordingly and that change would be applied to all properties that are subsequently moved into ORE.  Additional write-downs of individual properties typically occur when the results of updated appraisals and further application of the 15% discount on the value reflected in the updated appraisal indicates that the value of the respective property has declined.  The Company obtains updated appraisals for ORE properties at least every twelve months.  These write-downs are recognized in the quarterly period in which the appraisal is accepted by the Company.

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FINANCIAL CONDITION (Continued)

The Company actively markets the properties within its ORE portfolio utilizing both Bank personnel and third parties (brokers, agents, etc.). All ORE properties are classified into one of four categories: rental properties, non-rental properties, auction properties, and land. Rental properties consist of any property that can be leased or rented in order to produce income for the Company while the Company is pursuing the sale of the property.  Non-rental properties consist of improved real estate that the Company’s management has concluded would not be attractive to a renter or that management believes will be most efficiently sold unoccupied. Auction properties are typically properties of lower value that the Company is willing to accept the risk of an auction in order to sell. These properties are typically auctioned off within six to twelve months of the property being transferred into ORE; however, circumstances related to a particular property may warrant holding the property for a longer period. Auction properties are typically auctioned off in absolute auctions with no minimum reserves. Land generally consists of unimproved raw land, though some properties may have some infrastructure work completed for housing development. Properties within the land category of ORE are typically held for longer periods of time than other ORE properties as the marketing of these properties, particularly large parcels, often extends for over six months.

The following table shows a breakdown of the ORE portfolio by category as of the end of the periods indicated:

	September 30, 2015				June 30, 2015				March 31, 2015				December 31, 2014
Rental	$	4,413	50.7	%	$	4,947	48.4	%	$	5,217	41.2	%	$	5,949	43.3	%
Non-rental		940	10.8	%		941	9.2	%		1,556	12.3	%		1,904	13.9	%
Land		3,351	38.5	%		4,338	42.4	%		5,881	46.5	%		5,881	42.8	%
Total	$	8,704	100.0	%	$	10,226	100.0	%	$	12,654	100.0	%	$	13,734	100.0	%

The Company makes every effort to sell ORE as quickly as feasible while still recovering as much of the original investment as possible.  Management also considers the cost associated with holding individual properties in determining how aggressively it markets an individual property.  The Company’s ORE that is classified as rental properties generally consists of 1-4 family properties, though some are commercial real estate.  Rental income generated by this group has typically exceeded the holding costs of the respective properties.  The majority of the rental properties are listed for sale with real estate agents; however, properties in this group are not the primary focus of management’s marketing efforts given the income producing nature of the property.  The Company’s ORE that is classified as auction properties are marketed aggressively with dates set for auctions and most auction properties being allowed to sell without a reserve price.  The Company’s other ORE properties are being marketed, though there is no definite date as to when they may be expected to be sold.

The following table provides activity within the ORE portfolio in terms of individual parcels for the nine-month and three-month periods ended on the dates indicated:

	Rental		Non-rental		Auction		Land
Three Months Ended September 30, 2015
Foreclosures		—		—		—		—
Sales		2		—		—		1
Three Months Ended September 30, 2014
Foreclosures		—		—		—		—
Sales		2		1		—		4
Nine Months Ended September 30, 2015
Foreclosures		1		2		—		1
Sales		5		5		—		4
Weighted average age of properties held at period end    (months)		49.0		19.9		—		49.0
Nine Months Ended September 30, 2014
Foreclosures		2		2		—		1
Sales		12		3		3		13
Weighted average age of properties held at period end    (months)		28		17		—		36

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FINANCIAL CONDITION (Continued)

The following table sets forth information related to the largest five ORE properties held by the Company as of September 30, 2015:

Property Description	Original loan classification	Original Loan Amount			Charge-off prior to transfer into ORE		Write-down after transfer into ORE		Carrying Balance
Unimproved land	Real estate construction	$	5,000		$	905	$	536	$	2,093
Mini storage facility	Commercial real estate		3,934	(1)		—		—		848
Unimproved land	Real estate construction		1,134			402		—		799
Mixed Use Commercial Property	Commercial real estate		3,934	(1)		—		82		765
Single family residence	Residential real estate		731			—		104		627

(1) These two properties were pledged as collateral for the same loan relationship.

The following table sets forth information related to the largest five ORE properties held by the Company as of December 31, 2014:

Property Description	Original loan classification	Original Loan Amount			Charge-off prior to transfer into ORE		Write-down after transfer into ORE		Carrying Balance
Unimproved land	Real estate construction	$	5,000		$	905	$	536	$	2,949
Unimproved land	Real estate construction		3,103			1,896		204		961
Mini storage facility	Commercial real estate		3,934	(1)		—		—		848
Unimproved land	Real estate construction		1,134			402		—		799
Mixed Use Commercial Property	Commercial real estate		3,934	(1)		—		82		765

(1) These two properties were pledged as collateral for the same loan relationship.

Each of the OREO properties identified in the September 30, 2015 table above is listed with a real estate agent and is also listed as available for sale on the Bank’s website.  The two properties classified as unimproved land were, at the time the loans were made, intended to be developed.  The property carried at $2,093 is commercial property located in an area that remains significantly and negatively impacted by the downturn in the real estate market.  The property is currently under contract; however, there is a lengthy due diligence period and the sale of the property may not ultimately be consummated.  If so, the Company will continue to actively market the property.  The property carried at $799 is located in a residential area that was also negatively impacted by the downturn in the economy.  Although there are some positive indicators of improvements in the local market where the property is located, management believes it will likely require a significant amount of time to sell the property.  The single family residence property carried at $627 is currently an income producing rental property.  The Company is actively marketing the property; however, since the home is more high-end than the typical home in our market, we anticipate that it could take a significant amount of time to sell the property.  The commercial real estate properties are income producing rental properties that are being managed by a third party property manager on behalf of the Company.  The Company continues to market these rental properties, but because of the income producing nature of the properties, it is likely that management will resist selling the properties in the near term for less than the current carrying value of the properties.

Deposits

The Company relies on the Bank’s deposit growth, as well as alternative funding sources such as other borrowed money, Federal Home Loan Bank (“FHLB”) advances, and federal funds purchased from correspondent banks, to fund its operations.

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FINANCIAL CONDITION (Continued)

The following table sets forth the composition of the deposits at September 30, 2015 and December 31, 2014.

	September 30, 2015					December 31, 2014
	Amount		% of Total			Amount		% of Total
Noninterest-bearing demand accounts	$	70,508		17.2	%	$	60,780		15.3	%
Interest-bearing demand accounts		133,114		32.6	%		129,152		32.4	%
Savings accounts		28,835		7.1	%		27,709		7.0	%
Time deposits greater than $100		87,767		21.5	%		83,633		21.0	%
Other time deposits		88,557		21.7	%		96,806		24.3	%
Total	$	408,781		100.0	%	$	398,080		100.0	%

The following table sets forth all time deposits greater than $100 broken down by remaining maturity at September 30, 2015:

Three months or less	$	15,848
Over three months through six months		15,329
Over six months through one year		25,934
Over one year		30,656
Total	$	87,767

Total deposits were $408,781 at September 30, 2015, compared to $398,080 at December 31, 2014, an increase of $10,701.  The increase was primarily due to increases in noninterest-bearing demand deposits.

Shareholders’ Equity

At September 30, 2015, shareholders’ equity totaled $13,396, an increase of $2,510, or 23.1%, from $10,866 at December 31, 2014.  The increase was primarily due to net income during the first nine months of 2015.

The 17,806 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A (the “Senior Preferred Shares”) have a $23,652 liquidation value and had a cumulative dividend rate of 5% per year until May 15, 2014, and a dividend rate of 9% thereafter.  In addition, under the terms of the CPP, the Company issued warrants to the U.S. Treasury to purchase additional preferred shares equal to 5% of the investment in Senior Preferred Shares at a discounted exercise price.  The U.S. Treasury exercised the warrants immediately upon investment in the Senior Preferred Shares, which resulted in the Company’s issuance of 890 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series B (the “Warrant Preferred Shares” and together with the Senior Preferred Shares, the “Preferred Shares”).  The U.S. Treasury’s exercise of the warrants resulted in a net discount on the issuance of the Preferred Shares of $890.  The discount was amortized over a five year period, which ended on February 27, 2014.  The Warrant Preferred Shares have a cumulative dividend rate of 9% per year until redeemed.  Dividends on both Senior Preferred Shares and Warrant Preferred Shares are required to be paid quarterly.  Total required annual dividends for both Senior Preferred Shares and Warrant Preferred Shares are expected to be $1,683 per year.  The Company is permitted to redeem all or a portion of the Preferred Shares at any time after consultation with its primary federal regulator, but may not redeem the Warrant Preferred Shares until all of the Senior Preferred Shares have been redeemed.  Dividend payments on both Senior Preferred Shares and Warrant Preferred Shares would be reduced for any redemption.

On April 14, 2014, the U.S. Treasury, the holder of all the Senior Preferred Shares and Warrant Preferred Shares issued by the Company, closed on the sale of the securities in a modified Dutch auction.  The clearing price for the Senior Preferred Shares was $300.50 per share and the clearing price for the Warrant Preferred Shares was $521.75 per share. The sale was to unaffiliated third party investors as well as certain directors and executive officers of the Company.  Subsequent to the initial auction, certain of the Company’s directors and executive officers have acquired additional Senior Preferred Shares from the purchasers that acquired the shares from the U.S. Treasury, and in the second quarter of 2015 they acquired additional shares resulting in those individuals owning in the aggregate approximately 57.5% of the outstanding Senior Preferred Shares.

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FINANCIAL CONDITION (Continued)

The Company received none of the proceeds from the sale of the Preferred Shares by the U.S. Treasury, and the sale of the securities had no effect on the terms of the outstanding securities, including the Company’s obligation to satisfy accrued and unpaid dividends or the holders’ right to elect two members to the board of directors of the Company. Further, the sale of the Preferred Shares by the U.S. Treasury had no effect on the Company’s capital, regulatory capital, financial condition or results of operations. Upon the closing of the U.S. Treasury’s sale of the Preferred Shares, the Company was no longer subject to various executive compensation and corporate governance requirements to which participants in the CPP were subject while the U.S. Treasury held the securities.

At the request of the FRB, the board of directors of the Company, on January 18, 2011, adopted a board resolution agreeing that the Company would not incur additional debt, pay common or preferred dividends, or redeem treasury stock without approval from the FRB.  The board resolution was replaced by the Written Agreement that the Company entered into with the FRB on April 19, 2012, the terms of which similarly prohibit the Company from incurring debt, paying dividends or interest or redeeming shares of its capital stock without the approval of the FRB.  The Company requested permission to make dividend payments on its Preferred Shares and interest payments on its subordinated debt that were scheduled for the first quarter of 2011.  The FRB granted permission to pay the preferred dividends that were due on February 15, 2011, but denied permission to make interest payments on the Company’s subordinated debt.  As a result of the FRB’s decision, the Company was required to begin the deferral of interest payments on each of its three issuances of subordinated debentures during the first quarter of 2011.  The Company has the right to defer the payment of interest on the subordinated debentures at any time, for a period not to exceed 20 consecutive quarters.  During the period in which it is deferring the payment of interest on its subordinated debentures, the Company may not pay any dividends on its common or preferred stock, including the Preferred Shares, and the Company’s subsidiaries may not pay dividends on the subsidiaries’ common or preferred stock owned by entities other than the Company and its subsidiaries.  Accordingly, the Company was required to suspend dividend payments on the Preferred Shares beginning in the second quarter of 2011.  The Company will reach 20 consecutive quarters of deferral during the first quarter of 2016 and if the deferred interest payments are not paid in full prior to that time the Company will be in default under the related indentures.  The Company and the Bank have entered into discussions with the Company’s and the Bank’s regulators to secure permission to pay the deferred interest payments with available cash of the Company and the proceeds of a dividend from the Bank prior to the Company being in default and the Company and the Bank have received all necessary approvals to pay the deferred interest payment on the subordinated debentures and intends to make these payments in the fourth quarter of 2015.  The Company intends to utilize available cash and the proceeds of a dividend paid to the Company (for which it has received all required regulatory approvals to pay) from the Bank to fund these interest payments.  The Company expects that it may be required to begin deferring interest payments on the subordinated debentures again beginning in the first or second quarter of 2016.  At September 30, 2015, the Company has $5,276 of interest on its subordinated debentures accrued for which payment is being deferred. In addition, the Company has accumulated $6,300 in deferred dividends on the Preferred Shares as of September 30, 2015.  The Bank’s subsidiary Community First Properties, Inc. suspended the payment of dividends on its preferred stock beginning with the dividend payment due on December 31, 2011.  At September 30, 2015, Community First Properties, Inc. has $63 of preferred stock dividends accrued for which payment is being deferred.  Community First Properties intends to redeem all of the outstanding preferred shares issued by it during the fourth quarter of 2015.  The redemption price for these shares will equal the face value of these shares plus any deferred dividend payments, and the Company expects the total of these amounts to equal approximately $216.

RESULTS OF OPERATIONS

Net Income

The Company had net income of $4,219 for the nine months ended September 30, 2015 compared to net income of $1,824 for the same period in 2014, an increase in net income of $2,395. Net income available to common shareholders was $2,283 for the first nine months of 2015 compared to $644 for the same period in 2014.  This increase was due to a combination of interest income recoveries on formerly nonaccrual relationships, reversals of the provision of loan losses due to improvements in asset quality, and improved core earnings.

The Company had net income of $1,778 for the three months ended September 30, 2015 compared to net income of $232 for the same period in 2014, an increase in net income of $1,546. Net income available to common shareholders was $676 for the first three months of 2015 compared to a net loss allocated to common shareholders of $192 for the same period in 2014.  This increase was due to a combination of interest income recoveries on formerly nonaccrual relationships, reversals of the provision of loan losses due to improvements in asset quality, and improved core earnings.

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RESULTS OF OPERATIONS (Continued)

Average Balance Sheets, Net Interest Income

Changes in Interest Income and Interest Expense

The following table shows the average daily balances of each principal category of our assets, liabilities and shareholders’ equity and an analysis of net interest income for the six month periods ended September 30, 2015 and 2014. The table reflects how changes in the volume of interest earning assets and interest-bearing liabilities and changes in interest rates have affected our interest income, interest expense, and net interest income for the periods indicated.  Information is provided in each category with respect to changes attributable to (1) changes in volume (changes in volume multiplied by prior rate); (2) changes in rate (changes in rate multiplied by prior volume); and (3) changes in rate/volume (changes in rate multiplied by change in volume).  The changes attributable to the combined impact of volume and rate have all been allocated to the changes due to rate.

	September 30, 2015								September 30, 2014								Change
	Average Balance			Interest Rate			Revenue/ Expense		Average Balance			Interest Rate			Revenue/ Expense		Due to Volume (1)			Due to Rate (2) (3)			Total
Gross loans (a and b)	$	263,654			5.66	%	$	11,170	$	265,490			5.19	%	$	10,313	$	(71	)	$	928		$	857
Taxable securities available for sale		99,496			1.96	%		1,455		88,301			2.12	%		1,398		177			(120	)		57
Tax exempt securities available for sale		1,680			2.94	%		37		2,665			.11	%		62		(23	)		(2	)		(25	)
Federal funds sold and other		52,394			0.68	%		266		52,405			0.58	%		227		—			39			39
Total interest earning assets		417,224			4.14	%		12,928		408,861			3.92	%		12,000		83			845			928
Cash and due from banks		3,528								3,599
Other nonearning assets		37,004								42,597
Allowance for loan losses		(4,937	)							(6,912	)
Total assets	$	452,819							$	448,145
Deposits:
NOW & money market investments	$	130,101			0.38	%	$	374	$	127,000			0.42	%	$	397	$	10		$	(33	)	$	(23	)
Savings		28,105			0.10	%		21		26,101			0.10	%		19		1			1			2
Time deposits $100 and over		87,685			0.90	%		587		89,243			0.94	%		625		(11	)		(27	)		(38	)
Other time deposits		92,929			0.75	%		524		105,748			0.79	%		627		(76	)		(27	)		(103	)
Total interest-bearing deposits		338,820			0.59	%		1,506		348,092			0.64	%		1,668		(76	)		(86	)		(162	)
Subordinated debentures		23,000			4.39	%		756		23,000			3.44	%		592		—			164			164
Total other borrowings		23,000			4.39	%		756		23,000			3.44	%		592		—			164			164
Total interest-bearing     liabilities		361,820			0.84	%		2,262		371,092			0.81	%		2,260		(76	)		78			2
Noninterest-bearing liabilities		79,108								67,287
Total liabilities		440,928								438,379
Shareholders’ equity		11,891								9,766
Total liabilities and shareholders’    equity	$	452,819							$	448,145
Net interest income							$	10,666							$	9,740	$	159		$	767		$	926
Net interest margin					3.42	%							3.19	%

(a) Interest income includes fees on loans of $351 and $360 in 2015 and 2014, respectively.

(b) Nonaccrual loans are included in average loan balances and the associated income (recognized on a cash basis) is included in interest income.

(1) Changes in volume multiplied by prior rate

(2) Changes in rate multiplied by prior volume

(3) Changes in rate multiplied by change in volume

Net Interest Income

Net interest income for the first nine months of 2015 was $10,666, an increase of $926, or 9.5%, compared to $9,740 for the same period in 2014. The increase in net interest income is primarily due to recoveries of nonaccrual interst on problem relationships that were resolved during the period and recognition of purchase discounts on certain of those relationships.

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RESULTS OF OPERATIONS (Continued)

Total interest income for the nine months of 2015 was $12,928, an increase of $928 from $12,000 for the same period in 2014. The increase in interest income is primarily due to an increase in income from loans combined with an increase in income from federal funds sold and other and securities available for sale offset by a decrease in income from tax exempt securities available for sale and.

The average rate earned on gross loans in the first nine months of 2015 was 5.66% compared to 5.19% for the same period in 2014. The increase in income from loans is from significant interest recoveries received on loans paid off during the first nine months of 2015 that were formerly on nonaccrual status.  Two of those relationships also had purchase discounts associated with them that were recognized into income when the loans paid off.  The Bank recorded $733 of interest recoveries and purchase discounts.

The average rate earned on federal funds sold and other in the first nine months of 2015 was 0.68% compared to 0.58% for the same period in 2014. The increase in rate is due to the Company’s utilization of excess cash by investing in time deposits in financial institutions.

Interest income on taxable securities increased $57 to $1,455 in the first nine months of 2015 compared to $1,398 in the first nine months of 2014. The increase is primarily due to an increase in the average balance of taxable securities offset by a decrease in the average rate earned on taxable securities.

Total interest expense was $2,262 in the first nine months of 2015, an increase of $2 from $2,260 in the first nine months of 2014. The increase in interest expense is largely due to an increase in the rate paid on the Company’s subordinated debentures offset by a reduction in the average rate paid on deposits and the average balance of deposits in the first nine months of 2015 compared to the same period in 2014.

The increase in the rate paid on the Company’s subordinated debentures is due primarily to the compounding of interest on the accrued expense balance.

Total interest expense on deposits was $1,506 in the first nine months of 2015, a reduction of $162 from $1,668 in the first nine months of 2014. The average rate paid on deposits was 0.59% in the first nine months of 2015 compared to 0.64% for the same period in 2014. The most significant decreases in average rates were on time deposits. The reduction in average rate paid on deposits was the result of continued decreases in market rates in the Bank’s market area.

Net interest income for the three months ended September 30, 2015 was $4,035, an increase of $763, or 23.3%, compared to $3,272 for the same period in 2014. The increase in net interest income is primarily due to an increase in income from loans, similar to factors noted above for the first nine months of 2015.

Total interest income for the three months ended September 30, 2015 was $4,901, an increase of $904 from $3,997 for the same period in 2014. The increase in interest income is primarily due to an increase in income from loans, which is from significant recoveries received on two loans paid off during the quarter that were formerly on nonaccrual status.

Total interest expense was $866 in the three months ended September 30, 2015, an increase of $144 from $725 from the same period in 2014. The increase in interest expense is largely due to an increase in the average rate paid on the Company’s subordinated debentures, similar to factors noted above for the first nine months of 2015.

Provisions for Loan Losses

In the first nine months of 2015, the Bank reversed $2,257 of the allowance for loan loss as a result of improvements in asset quality and significant loan recoveries. In the first nine months of 2014, the Bank reversed $800 of the allowance for loan loss. The ratio of allowance for loan losses to gross loans was 1.65% at September 30, 2015 compared to 2.02% at December 31, 2014.

Management’s determination of the appropriate level of the provision for loan losses and the adequacy of the allowance for loan losses is based, in part, on an evaluation of specific loans, as well as the consideration of historical loss, which management believes is representative of probable incurred loan losses. Other factors considered by management include the composition of the loan portfolio, economic conditions, results of regulatory examinations, reviews of updated real estate appraisals, and the creditworthiness of the Bank’s borrowers and other qualitative factors.

Nonperforming loans decreased from $10,794 at December 31, 2014 to $4,438 at September 30, 2015. The decrease in nonperforming loans is primarily due to decreases in our nonaccrual loans. During the first nine months of 2015, a number of nonaccrual loans have been paid off. A number of these payoffs resulted in significant recoveries of loan principal, which contributed to the reversal of the

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provision for loan loss. The ratio of the allowance to nonperforming loans was 98.11% at September 30, 2015, compared to 47.91% at December 31, 2014. The portion of the allowance attributable to impaired loans was $484 at September 30, 2015 compared to $247 at December 31, 2014. Total impaired loans totaled $4,121 at September 30, 2015 compared to $9,885 at December 31, 2014. As economic conditions continue to improve, we expect that we will continue to see reductions in nonaccrual loans and we believe that we may continue to experience recoveries on certain of these loans, which recoveries may be meaningful.

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RESULTS OF OPERATIONS (Continued)

The portion of the allowance attributable to historical and environmental factors has decreased since December 31, 2014. Management’s evaluation of the allowance for loan losses, in addition to specific loan allocations, is based on volume of non-impaired loans and changes in credit quality and environmental factors. The improvement in the portion of the allowance attributable to historical and environmental factors occurred during the first nine months of 2015 due to improvement in credit quality and environmental factors.

Problem loans that are not impaired are categorized into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. The Company uses the following definitions for risk ratings:

Watch. Loans characterized by borrowers who have marginal cash flow, marginal profitability, or have experienced operating losses and declining financial condition. The borrower has satisfactorily handled debts with the Bank in the past, but in recent months has either been late, delinquent in making payments, or made sporadic payments. While the Bank continues to be adequately secured, the borrower’s margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition. Other characteristics of borrowers in this class include inadequate credit information, weakness of financial statement and repayment capacity, but with collateral that appears to limit the Bank’s exposure. This classification includes loans to established borrowers that are reasonably margined by collateral, but where potential for improvement in financial capacity is limited.

Special Mention. Loans with potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may result in deteriorating prospects for the repayment source or in the Bank’s credit position in the future.

Substandard. Loans inadequately protected by the payment capacity of the borrower or the pledged collateral.

Doubtful. Loans with the same characteristics as substandard loans with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently existing facts, conditions, and values. These are poor quality loans in which neither the collateral nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time or evidence of permanent impairment in the collateral securing the loan.

Impaired loans are evaluated separately from other loans in the Bank’s portfolio. Credit quality information related to impaired loans was presented above and is excluded from the tables below.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. As of September 30, 2015 and December 31, 2014, based on the most recent analysis performed, the risk category of loans by segment of loans is as follows:

September 30, 2015	Pass		Watch		Special Mention		Substandard		Doubtful
Real estate construction	$	16,704	$	—	$	7	$	1,361	$	—
1-4 Family residential		87,941		369		—		1,088		—
Commercial real estate		99,172		10,937		—		2,713		—
Other real estate loans		7,095		6,398		—		—		—
Commercial, financial and agricultural		17,024		—		—		411		—
Consumer		6,593		1,140		—		33		—
Tax exempt		14		4		—		—		—
Other loans		85		—		—		—		—
Total	$	234,628	$	18,848	$	7	$	5,606	$	—

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RESULTS OF OPERATIONS (Continued)

December 31, 2014	Pass		Watch		Special Mention		Substandard		Doubtful
Real estate construction	$	12,923	$	6,888	$	—	$	840	$	—
1-4 Family residential		85,138		11,288		—		4,767		—
Commercial real estate		82,034		11,074		—		4,447		—
Other real estate loans		5,825		—		—		—		—
Commercial, financial and agricultural		14,412		990		—		112		—
Consumer		5,614		3		—		17		—
Tax exempt		31		—		—		—		—
Other loans		148		—		—		—		—
Total	$	206,125	$	30,243	$	—	$	10,183	$	—

The table below illustrates changes in the AFLL ratio (the ratio, expressed as a percentage, of the allowance for loan losses to total gross loans) over the past five quarters and the changes in related risk metrics over the same periods:

Quarter Ended	September30, 2015			June30, 2015			March 31, 2015			December 31, 2014			September 30, 2014
AFLL Ratio		1.65	%		1.71	%		1.85	%		2.02	%		2.32	%
ASC 450 allowance ratio (1)		1.49	%		1.64	%		1.78	%		2.00	%		2.06	%
Specifically impaired loans (ASC 310 component)	$	484		$	289		$	377		$	247		$	983
Historical and environmental (ASC 450-10 component)		3,870			4,251			4,450			4,924			5,122
Total allowance for loan loss	$	4,354		$	4,540		$	4,827		$	5,171		$	6,105
Nonperforming loans to gross loans (2)		1.69	%		2.42	%		5.00	%		4.21	%		7.52	%
Impaired loans to gross loans		1.57	%		2.43	%		4.52	%		3.85	%		5.78	%
Allowance to nonperforming loans ratio		98.11	%		70.46	%		36.92	%		47.91	%		30.85	%
Quarter-to-date net charge offs to average gross loans (3)		(0.19	%)		(0.31	%)		(0.40	%)		0.35	%		0.08	%

(1) Historical and environmental component as a percentage of non-impaired loans.

(2) Nonaccrual loans and loans past due 90 or more days still accruing interest, and troubled debt restructurings still accruing interest as a percentage of gross loans.

(3) Annualized.

As reflected in the table above, the Company continues to make steady progress at improving its asset quality. Nonperforming loans as a percentage of gross loans are down approximately 75% year over year, and the Company anticipates that it will continue to make progress in this area throughout the remainder of 2015.

Interest income on loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in process of collection. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

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RESULTS OF OPERATIONS (Continued)

The following table presents information regarding loans included as nonaccrual and troubled debt restructurings and the gross income that would have been recorded in the nine-month and three-month periods ended September 30, 2015 and 2014 if the loans had been current:

	Nine months ended				Three months ended
	September 30, 2015		September 30, 2014		September 30, 2015		September 30, 2014
Nonaccrual interest	$	392	$	999	$	9	$	324
Troubled debt restructurings interest		40		104		3		92

Noninterest Income

Total noninterest income for the first nine months of 2015 was $1,811, a decrease of $239, or 11.7% from $2,050 for the same period in 2014. The decrease is due to a decrease in gains on sale of securities available for sale, ATM income and investment service income.

Gains on sale of securities available for sale for the first nine months of 2015 was $5, a decrease of $208, or 97.7%, from $213 for the same period in 2014. This is due to the Company choosing to sell securities at a lower net gain in order to reposition and improve overall yield of the portfolio during the first nine months of 2015 than in the same period in 2014.

ATM income for the first nine months of 2015 was $61, a decrease of $38, or 38.4%, from $99 for the same period in 2014. This is due to the ATM network in which the Bank participates adding issuers of government benefit payment cards to the network, which has led to a decrease in the number of ATM transactions for which the Bank can charge non-customer fees.

Investment service income for the first nine months of 2015 was $85, a decrease of $22, or 20.6%, from $107 for the same period in 2014.  This decrease is due to lower demand for investment advisory services.

Total noninterest income for the three months ended September 30, 2015 was $614, a decrease of $204, or 24.9% from $818 for the same period in 2014. The decrease is due to a decrease in the gain on sale of securities available for sale, mortgage banking activities, investment service income and ATM income, similar to factors noted above for the nine-month period ended September 30, 2015.

Mortgage banking activities for the three months ended September 30, 2015 was $22, a decrease of $15, or 40.5%, from $37 for the same period in 2014.  The decrease is due to fluctuations in the demand for mortgage loan originations and refinancing activity.

The table below shows noninterest income for the nine-month and three-month periods ended September 30, 2015 and 2014.

	Nine Months Ended September 30,				Three Months Ended September 30,
	2015		2014		2015		2014
Service charge on deposit accounts	$	1,327	$	1,290	$	457	$	436
Gain on sale of loans		71		59		22		37
Gain on sale of securities available for sale		5		213		4		173
Other:
Investment service income		85		107		19		33
Safe deposit box rental		21		22		7		7
Credit life insurance commissions		4		5		2		3
Bank Owned Life Insurance income		202		194		69		66
ATM income		61		99		21		33
Other customer fees		34		34		13		14
Other equity investment income		—		13		—		5
Other service charges, commissions and fees		1		14		—		11
Total noninterest income	$	1,811	$	2,050	$	614	$	818

- 53 -

RESULTS OF OPERATIONS (Continued)

Noninterest Expense

Noninterest expense for the first nine months of 2015 was $10,515, a decrease of $251 or 2.3% from $10,766 for the same period in 2014. The decrease is primarily due to decreases in other real estate expense and regulatory and compliance expense offset by an increase in salaries and employee benefits and occupancy expense.

Other real estate expense totaled $403 for the first nine months of 2015, a decrease of $424, or 51.3%, from $827 for the same period in 2014. Other real estate expense decreased during the first nine months of 2015 as a result of fewer properties being sold at a loss and fewer properties experiencing writedowns as a result of stabilization of real estate prices.

Regulatory and compliance expense totaled $520 in the first nine months of 2015, a decrease of $277, or 34.8%, from $797 for the same period in 2014. The decrease is primarily due to a reduction in the Bank’s FDIC insurance expense premium as a result of the lifting of the Consent Order.

Salaries and employee benefits totaled $5,221 in the first nine months of 2015, an increase of $241, or 4.8%, from $4,980 for the same period in 2014. This increase is primarily the result of the addition of commercial loan officers combined with cost of living salary increases.

Occupancy expense totaled $725 in the first nine months of 2015, an increase of $119, or 19.6%, from $606 for the same period in 2014. The increase is primarily due to a one-time adjustment of deferred rent expense related to a long-term lease on property utilized for one of the Bank’s branch locations that occurred during the first nine months of 2014, resulting in lower than normal expense in that period. The adjustment reduced occupancy expense by $108 in the first nine months of 2014. The Bank purchased the property from the lessor in 2014, terminating the lease.

Noninterest expense for the three months ended September 30, 2015 was $3,565, a decrease of $293, or 7.6% from $3,858 for the same period in 2014. The decrease is primarily due to decreases in other real estate expense and regulatory and compliance expense offset by an increase in salaries and employee benefits, similar to factors noted above for the nine-month period ended September 30, 2015.

- 54 -

RESULTS OF OPERATIONS (Continued)

The table below shows noninterest expense for the nine-month and three-month periods ended September 30, 2015 and 2014:

	Nine Months Ended September 30,				Three Months Ended September 30,
	2015		2014		2015		2014
Salaries and employee benefits	$	5,221	$	4,980	$	1,757	$	1,682
Regulatory and compliance		520		797		173		265
Occupancy		725		606		248		234
Furniture and equipment		234		236		86		82
Data processing fees		917		860		316		292
Advertising and public relations		140		143		43		41
Operational expense		358		307		117		101
Other real estate expense		403		827		150		449
Other:
Loan expense		59		31		14		7
Legal		94		51		48		26
Audit and accounting fees		246		248		81		92
Postage and freight		185		220		59		75
Director expense		174		187		57		63
ATM expense		525		489		181		163
Amortization of intangible asset		103		103		34		34
Insurance expense		234		294		76		98
Printing		51		55		19		19
Other employee expenses		60		72		17		21
Dues & memberships		39		35		12		11
Miscellaneous taxes and fees		35		30		12		9
Federal Reserve and other bank charges		23		28		8		7
Loss on other investment		—		5		—		5
Other		169		162		57		82
Total noninterest expense	$	10,515	$	10,766	$	3,565	$	3,858

Income Taxes

During 2010, the Company established a valuation allowance against all of its deferred tax assets and has maintained that valuation allowance through the first nine months of 2015.

Deferred income taxes, including net operating losses, arise from temporary differences between the tax and financial statement recognition of revenue and expense. In evaluating our ability to recover our deferred tax assets within the jurisdictions from which they arose, we consider all available positive and negative evidence, including scheduled reversals of deferred tax liabilities, projected future taxable income, tax planning strategies and recent financial operations. In projecting future taxable income, we begin with historical results and changes in accounting policies and incorporate assumptions including the amount of future pretax operating income, the reversal of temporary differences, and the implementation of feasible and prudent tax planning strategies. These assumptions require significant judgment about the forecasts of future taxable income and are consistent with the plans and estimates we are using to manage the underlying businesses.

The Company has received approval to pay the deferred interest payments on its subordinated debentures, which the Company anticipates it will do in the fourth quarter of 2015. If the Company makes these deferred interest payments, it is likely that it will be able to reinstate some or all of the unrecognized deferred tax assets.

- 55 -

RESULTS OF OPERATIONS (Continued)

As of September 30, 2015, we have federal and state income tax net operating loss (NOL) carryforwards of $25,268 and $53,202, which will expire at various dates from 2020 through 2032. Such NOL carryforwards expire as follows:

	Federal		State
2020-2024	$	—	$	17,294
2025-2029		—		35,908
2030-2032		25,268		—

LIQUIDITY AND CAPITAL RESOURCES

Liquidity refers to the Company’s ability to fund loan demand, meet deposit customers’ withdrawal needs and provide for operating expenses. As summarized in the Consolidated Statements of Cash Flows, the Bank’s main source of cash flow is from receiving deposits from its customers and, to a lesser extent, repayment of loan principal and interest income on loans and investments, FHLB advances, the possible sale or pledge of investment securities, and federal funds purchased.

The Bank’s primary uses of cash are lending to its borrowers and investing in securities and short-term interest-earning assets. During 2014, regular loan repayments outpaced loan demand, resulting in a decrease in gross loans and contributing to the increase in cash and cash equivalents. However, during the first nine months of 2015, loan growth has outpaced deposit growth, and management believes this trend will continue throughout the remainder of 2015. In addition to funding loan growth, management plans to continue to utilize excess liquidity to invest in securities available for sale and time deposits in other financial institutions.

On April 19, 2012, the Company entered into the Written Agreement with the FRB. The Written Agreement replaces the board resolution adopted by the Board of Directors on January 18, 2011. Under the terms of the Written Agreement, the Company has agreed to, among other things, take the following actions:

· Take appropriate steps to fully utilize the Company’s financial and managerial resources to serve as a source of strength to the Bank, including taking steps to ensure that the Bank complied with the Consent Order while it remained in effect;

· Submit within 60 days of April 19, 2012 a written plan to maintain sufficient capital at the Company on a consolidated basis, and within 10 days of approval of the plan by the FRB, adopt the approved capital plan;

· Submit within 60 days of April 19, 2012 a written statement of the Company’s planned sources and uses of cash for debt service, operating expenses, and other purposes for 2012;

· Provide notice in compliance with applicable federal law and regulations, of any changes in directors or senior executive officer of the Company;

· Comply with applicable federal law and regulations restricting indemnification and severance payments; and

· Provide within 45 days after the end of each calendar quarter, a written progress report detailing the form and manner of all actions taken to secure compliance with the provisions of the Written Agreement.

- 56 -

LIQUIDITY AND CAPITAL RESOURCES (Continued)

In addition, under the terms of the Written Agreement, the Company has agreed to, among other things, the following actions:

· Refrain from declaring or paying any dividends without prior approval;

· Not directly or indirectly take dividends or any other form of payment representing a reduction in capital from the Bank without prior approval;

· Not (along with the Company’s non-bank subsidiary) make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without prior approval;

· Not (along with the Company’s non-bank subsidiary) directly or indirectly incur, increase, or guarantee any debt without prior approval; and

· Not directly or indirectly purchase or redeem any shares of its stock without prior approval.

As of September 30, 2015 all of the plans required to be submitted to the FRB have been submitted and approved. Management believes that the Company is in compliance with the requirements of the Written Agreement as of September 30, 2015.

The Company’s principal source of liquidity for dividend payments is dividends received from the Bank. Although the Bank was profitable in each of 2012, 2013, 2014, and the first nine months of 2015, the Bank was prohibited under the terms of the Consent Order with the FDIC and the written agreement with the Department while those were in effect, and was thereafter prohibited under the terms of the informal agreement entered into by the Bank prior to its termination on September 29, 2015, from paying dividends to the Company without prior approval from the FDIC and the Department. Moreover, because the Bank has negative retained earnings, approval of the FDIC is required for the Bank to pay a dividend to the Company.

At the request of the FRB, the board of directors of the Company, on January 18, 2011, adopted a board resolution agreeing that the Company will not incur additional debt, pay common or preferred dividends, or redeem treasury stock without approval from the FRB. The terms of the Written Agreement, which replaced the board resolution, among other things, similarly prohibit the Company from incurring debt, paying dividends or interest or redeeming shares of its capital stock without the approval of the FRB. The Company requested permission to make dividend payments on the Preferred Shares and interest payments on its subordinated debt that were scheduled for the first quarter of 2011. The FRB granted permission to pay the preferred dividends that were due on February 15, 2011, but denied permission to make interest payments on the Company’s subordinated debt. As a result of the FRB’s decision, the Company was required to begin the deferral of interest payments on each of its three issuances of subordinated debentures during the first quarter of 2011. The Company has the right to defer the payment of interest on the subordinated debentures at any time, for a period not to exceed 20 consecutive quarters. During the period in which it is deferring the payment of interest on its subordinated debentures, the Company may not pay any dividends on its common stock or preferred stock, including the Preferred Shares, and the Company’s subsidiary may not pay dividends on the subsidiary’s common or preferred stock owned by entities other than the Company and its subsidiaries. Accordingly, the Company was required to suspend dividend payments on the Preferred Shares beginning in the second quarter of 2011. At September 30, 2015, the Company has $5,276 of interest accrued for which payment is being deferred. In addition, the Company has accumulated $6,300 in deferred dividends on the Preferred Shares as of September 30, 2015. The Company will reach 20 consecutive quarters of deferral of interest on its subordinated debentures during the first quarter of 2016 and if the deferred interest payments are not paid in full prior to that time the Company will be in default under the related indentures. The Company and the Bank have entered into discussions with the Company’s and the Bank’s regulators to secure permission to pay the deferred interest payments with available cash of the Company and the proceeds of a dividend from the Bank prior to the Company being in default and the Company and the Bank have received all necessary approvals to pay the deferred interest payment on the subordinated debentures and intends to make these payments in the fourth quarter of 2015.  The Company intends to utilize available cash and the proceeds of a dividend paid to the Company from the Bank (for which it has received all required regulatory approvals) to fund these interest payments. The Company expects that it may be required to begin deferring interest payments on its subordinated debentures again beginning in the first or second quarter of 2016. The Company’s subsidiary Community First Properties, Inc. suspended payment of its dividends on its preferred stock beginning with the dividend payment due December 31, 2011. At September 30, 2015, Community First Properties, Inc. has $63 of preferred stock dividends accrued for which payment is being deferred. Community First Properties intends to redeem all of the outstanding preferred shares issued by it during the fourth quarter of 2015.  The redemption price for these shares will equal the face value of these shares plus any deferred dividend payments, and the Company expects the total of these amounts to equal approximately $216.  Since the Company has deferred payment of dividends on the Preferred Shares for more than six quarters, the holders of the Preferred Shares now have the right to elect up to two directors to the Company’s board of directors. On April 14, 2014, the U.S. Treasury sold all of the Preferred Shares of it owned in a modified Dutch auction. The Company received none of the proceeds from the sale by the U.S. Treasury of the Preferred Shares.

- 57 -

LIQUIDITY AND CAPITAL RESOURCES (Continued)

Although the Bank was profitable in each of 2012, 2013, 2014, and the first nine months of 2015, the Bank was prohibited until September 30, 2015 under the terms of its formal and informal agreements with the FDIC and the Department from paying dividends to the Company without prior approval from the FDIC and the Department. The Company is also restricted in the types and amounts of dividends it can pay by the terms of the Preferred Shares and by the terms of the Written Agreement, which prohibits the Company from paying interest or dividends (including interest on the Company’s subordinated debentures and dividends on the Preferred Shares) without the FRB’s prior approval. The Company is currently considering the options available to it to increase capital levels at the Bank and the Company, including the sale of common or preferred stock of the Company. While the Preferred Shares are outstanding and entitled to the existing liquidation preference, any sale of the Company’s common stock would likely be at a price that would result in substantial dilution in ownership for the Company’s existing common shareholders and could result in a change in control of the Company. This change in control would likely qualify as a change in control under the IRS’s regulations related to the preservation of net operating loss carryforwards causing the Company to likely forfeit this benefit. The loss of this benefit would not cause the Company to recognize a cash charge, but rather would eliminate the benefit that the Company would otherwise be able to utilize to offset future year’s profits, if any, to reduce the Company’s tax liability.

Following termination of the informal agreement the Bank had entered into with the FDIC and Department, the Bank is no longer subject to restrictions from the Department on its ability to pay dividends to the Company (other than the restrictions under applicable Tennessee law limiting the amount of dividends a bank incorporated under the laws of the state of Tennessee may pay to its shareholders to the current year’s net income and any retained net income for the prior two years).  However, for so long as the Bank has negative retained earnings, as it did at September 30, 2015, the Bank must receive the prior approval of the FDIC before it may pay a dividend to the Company.  At September 30, 2015, with the prior approval of the FDIC, the Bank could dividend up to $10,262 to the Company, without the consent of the Commissioner of the Department.

In late 2010, the Basel Committee on Banking Supervision issued “Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems” (“Basel III”), a new capital framework for banks and bank holding companies. Basel III will impose a stricter definition of capital, with more focus on common equity for those banks to which it is applicable. In July 2013, the federal bank regulatory agencies, including the Federal Reserve and the FDIC, adopted final rules that would revise their risk-based and leverage capital requirements and their method for calculating risk-weighted assets to make them consistent with the agreements that were reached by the Basel Committee on Banking Supervision in Basel III and certain provisions of the Dodd-Frank Act. The rules, which became effective January 1, 2015, apply to all depository institutions, top-tier bank holding companies with total consolidated assets of $1,000,000 or more, and top-tier savings and loan holding companies (“banking organizations”). Among other things, the rules establish a new common equity Tier 1 minimum capital requirement of 4.5% and a minimum Tier 1 capital requirement of 6% (up from 4%) and assign higher risk weightings (150%) to exposures that are more than 90 days past due or are on nonaccrual status. In order to be considered “well-capitalized” beginning on January 1, 2015, the Bank must maintain at least the following minimum capital ratios: common equity Tier 1 capital of 6.5%; tier 1 risk-based capital of 8% (up from 6%); total risk-based capital of 10%; and tier 1 leverage capital of 5%. The rules limit a banking organization’s capital distributions and certain discretionary bonus payments as well as a banking organization’s ability to repurchase its own shares if the banking organization does not hold a “capital conservation buffer” consisting of an additional 2.5% of Tier 1 capital (when the buffer is fully phased in) in addition to the amount necessary to meet its minimum risk-based capital requirements. As a result, when fully phased in, the minimum capital requirements, inclusive of the capital conservation buffer, would be a Tier 1 leverage ratio of 4%, a Tier 1 common risk-based equity capital ratio of 7%, a Tier 1 equity risk-based capital ratio of 8.5% and a total risk-based capital ratio of 10.5%. Under the new rules, Tier 1 capital generally consists of common stock (plus related surplus) and retained earnings, limited amounts of minority interest in the form of additional Tier 1 capital instruments and non-cumulative preferred stock and related surplus, subject to certain eligibility standards, less goodwill and other specified intangible assets and other regulatory deductions. The Company’s cumulative stock and trust preferred securities will continue to be considered Tier 1 capital under grandfathering provisions included in the new rules. The new rules also introduce a new regulatory capital ratio, common equity Tier 1 capital, which will generally consist of common stock (plus related surplus) and retained earnings plus limited amounts of minority interest in the form of common stock, less goodwill and other specified intangible assets and other regulatory deductions. The rules allowed banks and their holding companies with less than $250,000,000 in assets a one-time opportunity to opt out of a requirement to include unrealized gains and losses in Accumulated Other Comprehensive Income, which the Bank and the Company has exercised. Because the Company’s total consolidated assets are below $1,000,000, these capital rules are not applicable to the Company on a consolidated basis. The Bank, though, is subject to these rules. Should the Company’s total consolidated assets increase to more than $1,000,000, the Company would then be subject to these rules.

At September 30, 2015, the Company had unfunded loan commitments outstanding of $33,838 and unfunded letters of credit of $1,662. Because these commitments generally have fixed expiration dates and many will expire without being drawn upon, the total commitment level does not necessarily represent future cash requirements. If the Company needed to fund these outstanding commitments, it has the ability to liquidate federal funds sold or securities available for sale or on a short-term basis to borrow and purchase federal funds from other financial institutions. Additionally, the Company could sell participations in these or other loans to correspondent banks.

- 58 -

LIQUIDITY AND CAPITAL RESOURCES (Continued)

At September 30, 2015 and December 31, 2014, the Bank’s and the Company’s risk-based capital ratios and the minimums to be considered “well-capitalized” under prompt corrective action guidelines and the ratios required by the Consent Order were as follows:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Regulatory Provisions(1)					Required by terms of Regulatory Agreements(2)
September 30, 2015	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital to risk weighted assets
Community First Bank & Trust	$	50,013		17.02	%	$	23,505		8.00	%	$	29,381		10.00	%	$	35,257		12.00	%
Consolidated		32,657		11.08	%		23,583		8.00	%		29,478		10.00	%	N/A		N/A
Common Equity Tier 1 Capital to risk    weighted assets
Community First Bank & Trust	$	46,332		15.77	%	$	13,222		4.50	%	$	19,098		6.50	%	N/A		N/A
Consolidated	N/A		N/A			N/A		N/A			N/A		N/A			N/A		N/A
Tier 1 Capital to risk weighted assets
Community First Bank & Trust	$	46,332		15.77	%	$	17,629		6.00	%	$	23,505		8.00	%	$	29,381		10.00	%
Consolidated		19,309		6.55	%		11,791		4.00	%		17,687		6.00	%	N/A		N/A
Tier 1 Capital to average assets
Community First Bank & Trust	$	46,332		10.17	%	$	18,229		4.00	%	$	22,786		5.00	%	$	38,736		8.50	%
Consolidated		19,309		4.22	%		18,321		4.00	%	N/A		N/A			N/A		N/A

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Regulatory Provisions(1)					Required by terms of Regulatory Agreements(2)
December 31, 2014	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital to risk weighted assets
Community First Bank & Trust	$	44,173		16.32	%	$	21,654		8.00	%	$	27,068		10.00	%	$	32,481		12.00	%
Consolidated		26,624		9.83	%		21,668		8.00	%		27,086		10.00	%	N/A		N/A
Tier 1 Capital to risk weighted assets
Community First Bank & Trust	$	40,768		15.06	%	$	10,827		4.00	%	$	16,241		6.00	%	$	27,068		10.00	%
Consolidated		15,477		5.71	%		10,834		4.00	%		16,251		6.00	%	N/A		N/A
Tier 1 Capital to average assets
Community First Bank & Trust	$	40,768		9.32	%	$	17,490		4.00	%	$	21,862		5.00	%	$	34,979		8.00	%
Consolidated		15,477		3.52	%		17,586		4.00	%	N/A		N/A			N/A		N/A

(1) Because the Company’s total assets were less than $1,000,000 at September 30, 2015, the Company was not, at that date, subject to capital level requirements at that level.

(2) Reflects minimum capital ratios required by the informal agreement the Bank entered into with the FDIC and the Department on October 27, 2014.  The informal agreement was terminated on September 29, 2015.

- 59 -

LIQUIDITY AND CAPITAL RESOURCES (Continued)

At its current capital ratios, the Bank is considered “well capitalized”. The Company’s capital ratios are below what is required to be considered “adequately capitalized” were the Company subject to consolidated capital maintenance requirements. Two of the four capital ratios were considered “adequate”; however, the Tier 1 Capital to average assets ratio and Common Equity Tier 1 Ratio were below the requirements to be considered “adequate”, which would prohibit the Company from being considered “adequately capitalized” if it were subject to consolidated capital maintenance requirements.

Management continually monitors the Bank’s sources and uses of cash in order to plan for future liquidity needs. The Bank’s most potentially volatile funding liabilities are national market time deposits. The Bank reduced its reliance on these funding sources during 2013 and 2014.  The Bank’s national market CDs was $7,240 at both September 30, 2015 and December 31, 2014. Management is currently utilizing national market CDs to take advantage of the favorable rates in that sector of the deposit market.

- 60 -

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 

Management uses a gap simulation model that takes cash flows into consideration. These include mortgage-backed securities, loan prepayments, and expected calls on securities. Non-maturing balances such as money markets, savings, and negotiable order of withdrawal (“NOW”) accounts have no contractual or stated maturities. A challenge in the rate risk analysis is to determine the impact of the non-maturing balances on the net interest margin as the interest rates change. Because these balances do not “mature” it is difficult to know how they will reprice as rates change. It is possible to glean some understanding by reviewing our pricing history on these categories relative to interest rates. Using the interest rate history from the Asset Liability Management software database spanning up to 20 quarters of data, we can derive the relationship between interest rates changes and the offering rates themselves. The analysis uses the T-Bill rate as an indicator of rate changes. The gap analysis uses beta factors to spread balances to reflect repricing speed. In the gap analysis the model considers deposit rate movements to determine what percentage of interest-bearing deposits that is actually repriceable within a year. Our cumulative one year gap position at September 30, 2015, was 0.74% of total assets. Our policy states that our one-year cumulative gap should not exceed 15% of total assets.

At September 30, 2015, $154,411 of $458,233 of interest earning assets will reprice or mature within one year. Loans maturing or repricing within one year totaled $93,448, or 35.5% of total loans, including loans held for sale at September 30, 2015. As of September 30, 2015, we had $125,527 in time deposits maturing or repricing within one year.

Gap analysis only shows the dollar volume of assets and liabilities that mature or reprice. It does not provide information on how frequently they will reprice. To more accurately capture the Company’s interest rate risk, we measure the actual effects the repricing opportunities have on earnings through income simulation models such as rate shocks of economic value of equity and rate shock interest income simulations.

To truly evaluate the impact of rate change on income, we believe the rate shock simulation of interest income is the best technique because variables are changed for the various rate conditions. The interest income change in each category of earning assets and liabilities is calculated as rates move up and down. In addition, the prepayment speeds and repricing speeds are changed. Rate shock is a method for stress testing the net interest margin over the next four quarters under several rate change levels. These levels span four 100 basis point increments up and down from the current interest rate. Our policy guideline is that the maximum percentage change in net interest income cannot exceed plus or minus 15% on a 200 basis point interest rate change.

Although interest rates are currently very low, the Company believes a -200 basis point rate shock is an effective and realistic test since interest rates on many of the Company's loans still have the ability to decline 200 basis points. For those loans that have floors above the -200 basis point rate shock, the interest rate would be at the floor rate. All deposit account rates would likely fall to their floors under the -200 basis point rate shock as well. This simulation analysis assumes that NOW and savings accounts have a lower correlation to changes in market interest rates than do loans, securities, and time deposits.

September 30, 2015
Basis Point Change	+200 bps			+100 bps			-100 bps			-200 bps
Increase (decrease) in net interest income		(2.44	%)		(0.57	%)		(3.27	%)		(7.62	%)

December 31, 2014
Basis Point Change	+200 bps			+100 bps			-100 bps			-200 bps
Increase (decrease) in net interest income		(8.55	%)		(3.11	%)		(1.13	%)		(5.64	%)

Our Economic Value of Equity simulation measures our long-term interest rate risk. The economic value is the difference between the market value of the assets and the liabilities and, technically, it is our liquidation.

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QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK (Continued)

The technique is to apply rate changes and compute the value. The slope of the change between shock levels is a measure of the volatility of value risk. The slope is called duration. The greater the slope, the greater the impact or rate change on our long-term performance. Our policy guideline is that the maximum percentage change on economic value of equity cannot exceed plus or minus 10% on 100bp change and 20% on 200bp change. The following illustrates our equity at risk in the economic value of equity model.

September 30, 2015
Basis Point Change	+200 bps			+100 bps			-100 bps			-200 bps
Increase (decrease) in equity at risk		(10.11	%)		(3.97	%)		0.66	%		(0.08	%)

December 31, 2014
Basis Point Change	+200 bps			+100 bps			-100 bps			-200 bps
Increase (decrease) in equity at risk		(13.33	%)		(5.53	%)		2.05	%		(0.64	%)

One of management’s objectives in managing our balance sheet for interest rate sensitivity is to reduce volatility in the net interest margin by matching, as closely as possible, the timing of the repricing of its interest rate sensitive assets with interest rate sensitive liabilities.

ITEM 4. CONTROLS AND PROCEDURES

The Company, with the participation of its management, including the Company’s Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange Act”)) as of the end of the period covered by this Report. Based on their evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that as of the end of the period covered by this report, the Company’s disclosure controls and procedures are effective to ensure that information required to be disclosed by the Company in reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.

There were no changes in the Company’s internal control over financial reporting that occurred during the period covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

- 62 -

PART II. OTHER INFORMATION 

ITEM 1. LEGAL PROCEEDINGS

Not applicable.

ITEM 1A. RISK FACTORS

There have been no material changes in our "Risk Factors" as previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2014.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Not applicable.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Because the Company is currently deferring the payment of interest on its outstanding subordinated debentures, the Company is not currently permitted to pay dividends on the Preferred Shares. The Company has not paid these dividends since the dividend payment on February 15, 2011. The total aggregate amount of dividends due but unpaid on the Preferred Shares as of the date of this report is $6,300.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

- 63 -

ITEM 6. EXHIBITS 

Exhibit Number	Description
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS	XBRL Instance Document.
101.SCH	XBRL Taxonomy Extension Schema
101.CAL	XBRL Taxonomy Extension Calculation Linkbase
101.DEF	XBRL Taxonomy Extension Definition Linkbase
101.LAB	XBRL Taxonomy Extension Label Linkbase
101.PRE	XBRL Taxonomy Extension Presentation Linkbase

- 64 -

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Community First, Inc.

(Registrant)

November 13, 2015	/s/ Louis E. Holloway
(Date)	Louis E. Holloway, President and Chief Executive Officer
November 13, 2015	/s/ Jon Thompson
(Date)	Jon Thompson, Chief Financial Officer

- 65 -

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Louis E. Holloway, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Community First, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 13 2015	/s/ Louis E. Holloway
	Louis E. Holloway
	President and Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, Jon Thompson, certify that:

1) I have reviewed this quarterly report on Form 10-Q of Community First, Inc.;

2) Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3) Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4) The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 13, 2015	/s/ Jon Thompson
	Jon Thompson
	Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Community First, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Louis E. Holloway, President and Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Louis E. Holloway

Louis E. Holloway

President and Chief Executive Officer

November 13, 2015

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Community First, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2015, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jon Thompson, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Jon Thompson

Jon Thompson

Chief Financial Officer

November 13, 2015

XML

Loans - Loans Individually Evaluated for Impairment (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Unpaid Principal Balance	$ 89	$ 11,542	$ 89	$ 11,542	$ 13,958
Total with no related allowance recorded, Recorded Investment	89	9,419	89	9,419	6,599
Total with no related allowance recorded, Average Recorded Investment	767	8,236	3,577	9,841	9,474
Total with no related allowance recorded, Income Recognized	1	6	4	13	12
Total with no related allowance recorded, Cash Basis Income Recognized	2	6	4	14	11
Total with an allocated allowance recorded, Unpaid Principal Balance	4,033	11,087	4,033	11,087	3,286
Total with an allocated allowance recorded, Recorded Investment	4,032	5,786	4,032	5,786	3,286
Total Allowance for Loan Losses Allocated	484	958	484	958	247
Total with an allocated allowance recorded, Average Recorded Investment	4,536	7,566	4,255	9,324	8,700
Total with an allocated allowance recorded, Income Recognized	75	64	176	200	188
Total with an allocated allowance recorded, Cash Basis Income Recognized	69	63	170	199	196
Total Unpaid Principal Balance	4,122	22,629	4,122	22,629	17,244
Total Recorded Investment	4,121	15,205	4,121	15,205	9,885
Total Average Recorded Investment	5,303	15,802	7,832	19,165	18,174
Total Income Recognized	76	70	180	213	200
Total Cash Basis Income Recognized	71	69	174	213	207
Other Construction [Member]
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Unpaid Principal Balance		7,383		7,383	3,952
Total with no related allowance recorded, Recorded Investment		7,280		7,280	3,849
Total with no related allowance recorded, Average Recorded Investment		5,356	1,834	5,959	5,102
Total with an allocated allowance recorded, Unpaid Principal Balance	5	1,419	5	1,419	1,402
Total with an allocated allowance recorded, Recorded Investment	5	1,419	5	1,419	1,402
Total Allowance for Loan Losses Allocated		67		67	66
Total with an allocated allowance recorded, Average Recorded Investment	684	3,407	1,041	2,845	2,842
Total with an allocated allowance recorded, Income Recognized		(2)		1	1
Total with an allocated allowance recorded, Cash Basis Income Recognized		(2)		1	1
Revolving, Open Ended [Member]
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Unpaid Principal Balance	53	35	53	35	54
Total with no related allowance recorded, Recorded Investment	53	35	53	35	54
Total with no related allowance recorded, Average Recorded Investment	53	20	54	38	42
Total with no related allowance recorded, Income Recognized		2	2	2	3
Total with no related allowance recorded, Cash Basis Income Recognized	1	2	2	2	3
Total with an allocated allowance recorded, Unpaid Principal Balance	33	38	33	38	37
Total with an allocated allowance recorded, Recorded Investment	33	38	33	38	37
Total Allowance for Loan Losses Allocated	33	33	33	33	33
Total with an allocated allowance recorded, Average Recorded Investment	33	53	35	95	94
Total with an allocated allowance recorded, Income Recognized	1	2	2	3	3
Total with an allocated allowance recorded, Cash Basis Income Recognized	1	2	2	3	4
First Liens [Member]
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Unpaid Principal Balance		705		705
Total with no related allowance recorded, Recorded Investment		705		705
Total with no related allowance recorded, Average Recorded Investment		777		951	774
Total with no related allowance recorded, Income Recognized		(1)		6	6
Total with no related allowance recorded, Cash Basis Income Recognized		(2)		6	6
Total with an allocated allowance recorded, Unpaid Principal Balance	1,980	1,739	1,980	1,739	1,299
Total with an allocated allowance recorded, Recorded Investment	1,979	1,739	1,979	1,739	1,299
Total Allowance for Loan Losses Allocated	79	196	79	196	93
Total with an allocated allowance recorded, Average Recorded Investment	1,984	1,453	1,850	2,583	2,474
Total with an allocated allowance recorded, Income Recognized	26	32	79	63	65
Total with an allocated allowance recorded, Cash Basis Income Recognized	22	29	80	60	69
Junior Liens [Member]
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Unpaid Principal Balance					108
Total with no related allowance recorded, Recorded Investment					108
Total with no related allowance recorded, Average Recorded Investment			41	42	69
Total with no related allowance recorded, Cash Basis Income Recognized					(1)
Total with an allocated allowance recorded, Unpaid Principal Balance	173		173
Total with an allocated allowance recorded, Recorded Investment	173		173
Total Allowance for Loan Losses Allocated	173		173
Total with an allocated allowance recorded, Average Recorded Investment	87		43
Total with an allocated allowance recorded, Income Recognized	4		4
Total with an allocated allowance recorded, Cash Basis Income Recognized	5		5
Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Average Recorded Investment				353	353
Total with an allocated allowance recorded, Unpaid Principal Balance	516	545	516	545	545
Total with an allocated allowance recorded, Recorded Investment	516	545	516	545	545
Total Allowance for Loan Losses Allocated	51	99	51	99	55
Total with an allocated allowance recorded, Average Recorded Investment	531	545	538	734	734
Total with an allocated allowance recorded, Income Recognized	17	15	33	50	64
Total with an allocated allowance recorded, Cash Basis Income Recognized	13	12	24	47	66
Non-Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Unpaid Principal Balance	32	3,214	32	3,214	3,188
Total with no related allowance recorded, Recorded Investment	32	1,258	32	1,258	1,233
Total with no related allowance recorded, Average Recorded Investment	33	1,417	630	1,523	1,518
Total with no related allowance recorded, Income Recognized	1	2	2	2	3
Total with no related allowance recorded, Cash Basis Income Recognized	1	2	2	2	3
Total with an allocated allowance recorded, Unpaid Principal Balance	1,102		1,102
Total with an allocated allowance recorded, Recorded Investment	1,102		1,102
Total Allowance for Loan Losses Allocated	27		27
Total with an allocated allowance recorded, Average Recorded Investment	1,105	18	691	604	604
Total with an allocated allowance recorded, Income Recognized	15	(8)	46
Total with an allocated allowance recorded, Cash Basis Income Recognized	15	(8)	46
Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Unpaid Principal Balance		87		87
Total with no related allowance recorded, Recorded Investment		24		24
Total with no related allowance recorded, Average Recorded Investment		68		34	28
Total with no related allowance recorded, Income Recognized		3		3
Total with no related allowance recorded, Cash Basis Income Recognized		4		4
Total with an allocated allowance recorded, Unpaid Principal Balance	224	1,119	224	1,119
Total with an allocated allowance recorded, Recorded Investment	224	1,119	224	1,119
Total Allowance for Loan Losses Allocated	121	100	121	100
Total with an allocated allowance recorded, Average Recorded Investment	112	567	56	372	92
Total with an allocated allowance recorded, Income Recognized	12	27	12	27
Total with an allocated allowance recorded, Cash Basis Income Recognized	13	32	13	32
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Unpaid Principal Balance	4	8	4	8	4
Total with no related allowance recorded, Recorded Investment	4	8	4	8	4
Total with no related allowance recorded, Average Recorded Investment	5	8	5	5	3
Total with an allocated allowance recorded, Unpaid Principal Balance					3
Total with an allocated allowance recorded, Recorded Investment					3
Total with an allocated allowance recorded, Average Recorded Investment		5	1	8	9
Other Loans [Member]
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Unpaid Principal Balance					6,652
Total with no related allowance recorded, Recorded Investment					1,351
Total with no related allowance recorded, Average Recorded Investment	$ 676		$ 1,013		676
Total with an allocated allowance recorded, Unpaid Principal Balance		6,227		6,227
Total with an allocated allowance recorded, Recorded Investment		926		926
Total Allowance for Loan Losses Allocated		463		463
Total with an allocated allowance recorded, Average Recorded Investment		926		1,158	926
Residential Construction [Member]
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Average Recorded Investment		478		821	821
Total with an allocated allowance recorded, Average Recorded Investment		592		925	925
Total with an allocated allowance recorded, Income Recognized		(2)		56	55
Total with an allocated allowance recorded, Cash Basis Income Recognized		(2)		56	56
Other Real Estate Loans [Member]
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Unpaid Principal Balance		109		109
Total with no related allowance recorded, Recorded Investment		109		109
Total with no related allowance recorded, Average Recorded Investment		112		115	$ 88
Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Total with no related allowance recorded, Unpaid Principal Balance		$ 1		$ 1

XML

Regulatory Matters - Company's and Bank's Capital Amounts and Ratios (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Total Capital to Risk Weighted Assets [Member] | Community First Bank and Trust [Member]
Resale Agreement Counterparty [Line Items]
Actual, Amount	$ 50,013	$ 44,173
Actual, Ratio	17.02%	16.32%
For Capital Adequacy Purposes, Amount	$ 23,505	$ 21,654
For Capital Adequacy Purposes, Ratio	8.00%	8.00%
To Be Well Capitalized Under Applicable Regulatory Provisions, Amount	$ 29,381	$ 27,068
To Be Well Capitalized Under Applicable Regulatory Provisions, Ratio	10.00%	10.00%
Required by terms of Regulatory Agreement, Amount	$ 35,257	$ 32,481
Required by terms of Regulatory Agreement, Ratio	12.00%	12.00%
Total Capital to Risk Weighted Assets [Member] | Consolidated [Member]
Resale Agreement Counterparty [Line Items]
Actual, Amount	$ 32,657	$ 26,624
Actual, Ratio	11.08%	9.83%
For Capital Adequacy Purposes, Amount	$ 23,583	$ 21,668
For Capital Adequacy Purposes, Ratio	8.00%	8.00%
To Be Well Capitalized Under Applicable Regulatory Provisions, Amount	$ 29,478	$ 27,086
To Be Well Capitalized Under Applicable Regulatory Provisions, Ratio	10.00%	10.00%
Common Equity Tier 1 Capital to Risk Weighted Assets [Member] | Community First Bank and Trust [Member]
Resale Agreement Counterparty [Line Items]
Actual, Amount	$ 46,332
Actual, Ratio	15.77%
For Capital Adequacy Purposes, Amount	$ 13,222
For Capital Adequacy Purposes, Ratio	4.50%
To Be Well Capitalized Under Applicable Regulatory Provisions, Amount	$ 19,098
To Be Well Capitalized Under Applicable Regulatory Provisions, Ratio	6.50%
Required by terms of Regulatory Agreement, Amount	$ 0
Required by terms of Regulatory Agreement, Ratio	0.00%
Common Equity Tier 1 Capital to Risk Weighted Assets [Member] | Consolidated [Member]
Resale Agreement Counterparty [Line Items]
Required by terms of Regulatory Agreement, Amount	$ 0
Required by terms of Regulatory Agreement, Ratio	0.00%
Tier 1 Capital to Risk Weighted Assets [Member] | Community First Bank and Trust [Member]
Resale Agreement Counterparty [Line Items]
Actual, Amount	$ 46,332	$ 40,768
Actual, Ratio	15.77%	15.06%
For Capital Adequacy Purposes, Amount	$ 17,629	$ 10,827
For Capital Adequacy Purposes, Ratio	6.00%	4.00%
To Be Well Capitalized Under Applicable Regulatory Provisions, Amount	$ 23,505	$ 16,241
To Be Well Capitalized Under Applicable Regulatory Provisions, Ratio	8.00%	6.00%
Required by terms of Regulatory Agreement, Amount	$ 29,381	$ 27,068
Required by terms of Regulatory Agreement, Ratio	10.00%	10.00%
Tier 1 Capital to Risk Weighted Assets [Member] | Consolidated [Member]
Resale Agreement Counterparty [Line Items]
Actual, Amount	$ 19,309	$ 15,477
Actual, Ratio	6.55%	5.71%
For Capital Adequacy Purposes, Amount	$ 11,791	$ 10,834
For Capital Adequacy Purposes, Ratio	4.00%	4.00%
To Be Well Capitalized Under Applicable Regulatory Provisions, Amount	$ 17,687	$ 16,251
To Be Well Capitalized Under Applicable Regulatory Provisions, Ratio	6.00%	6.00%
Tier 1 Capital to Average Assets [Member] | Community First Bank and Trust [Member]
Resale Agreement Counterparty [Line Items]
Actual, Amount	$ 46,332	$ 40,768
Actual, Ratio	10.17%	9.32%
For Capital Adequacy Purposes, Amount	$ 18,229	$ 17,490
For Capital Adequacy Purposes, Ratio	4.00%	4.00%
To Be Well Capitalized Under Applicable Regulatory Provisions, Amount	$ 22,786	$ 21,862
To Be Well Capitalized Under Applicable Regulatory Provisions, Ratio	5.00%	5.00%
Required by terms of Regulatory Agreement, Amount	$ 38,736	$ 34,979
Required by terms of Regulatory Agreement, Ratio	8.50%	8.50%
Tier 1 Capital to Average Assets [Member] | Consolidated [Member]
Resale Agreement Counterparty [Line Items]
Actual, Amount	$ 19,309	$ 15,477
Actual, Ratio	4.22%	3.52%
For Capital Adequacy Purposes, Amount	$ 18,320	$ 17,586
For Capital Adequacy Purposes, Ratio	4.00%	4.00%

XML

Income Taxes - Additional Information (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Income Tax Disclosure [Abstract]
Income tax expense	$ 0

XML

Fair Value - Fair Value Measurements for Financial Instruments at Fair Value on Non-Recurring Basis (Parenthetical) (Detail)	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
Additional discount applied to properties	15.00%

XML

Securities Available for Sale - Amortized Cost and Fair Value of Securities Portfolio by Contractual Maturity (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Available For Sale Securities Debt Maturities [Abstract]
Due in one year or less, Amortized Cost	$ 340
Due after one through five years, Amortized Cost	5,888
Due after five through ten years, Amortized Cost	2,401
Due after ten years, Amortized Cost	1,084
Mortgage-backed - residential, Amortized Cost	101,910
Amortized Cost	111,623	$ 91,206
Due in one year or less, Fair Value	344
Due after one through five years, Fair Value	5,900
Due after five through ten years, Fair Value	2,403
Due after ten years, Fair Value	1,099
Mortgage-backed - residential, Fair Value	102,326
Securities available for sale, at fair value	$ 112,072	$ 91,440

XML

Regulatory Matters - Summary of Base1 III Minimum Requirements After Giving Effect to the Buffer (Detail)	Sep. 30, 2015
Scenario Forecast 2016 [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier 1 Ratio	5.125%
Tier 1 Capital to Risk-Weighted Assets Ratio	6.625%
Total Capital to Risk-Weighted Assets Ratio	8.625%
Scenario Forecast 2017 [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier 1 Ratio	5.75%
Tier 1 Capital to Risk-Weighted Assets Ratio	7.25%
Total Capital to Risk-Weighted Assets Ratio	9.25%
Scenario Forecast 2018 [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier 1 Ratio	6.375%
Tier 1 Capital to Risk-Weighted Assets Ratio	7.875%
Total Capital to Risk-Weighted Assets Ratio	9.875%
Scenario Forecast 2019 [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier 1 Ratio	7.00%
Tier 1 Capital to Risk-Weighted Assets Ratio	8.50%
Total Capital to Risk-Weighted Assets Ratio	10.50%

XML

Loans - Investment in Past Due Loans, Including Nonaccrual Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Impaired [Line Items]
Total loans balance	$ 263,212	$ 256,436
Residential Construction [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	10,596	9,382
Other Construction [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	7,850	16,520
Revolving, Open Ended [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	16,169	17,147
First Liens [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	84,361	83,618
Junior Liens [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	1,676	1,926
Farmland [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	7,702	7,495
Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	49,651	42,383
Non-Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	52,580	49,455
Other Real Estate Secured Loans [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	7,095	5,825
Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	828	855
Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	17,971	14,659
Consumer [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	6,634	5,641
Tax Exempt [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	14	31
Other Loans [Member]
Financing Receivable, Impaired [Line Items]
Total loans balance	85	1,499
Aging of Recorded Investment [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	2,602	3,087
Loans Not Past Due	260,610	253,349
Total loans balance	263,212	256,436
Aging of Recorded Investment [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	1,475	1,427
Aging of Recorded Investment [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	696	297
Aging of Recorded Investment [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	431	1,363
Aging of Recorded Investment [Member] | Residential Construction [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	117
Loans Not Past Due	10,479	9,382
Total loans balance	10,596	9,382
Aging of Recorded Investment [Member] | Residential Construction [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	67
Aging of Recorded Investment [Member] | Residential Construction [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	50
Aging of Recorded Investment [Member] | Other Construction [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	1,072	74
Loans Not Past Due	6,778	16,446
Total loans balance	7,850	16,520
Aging of Recorded Investment [Member] | Other Construction [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	1,065	66
Aging of Recorded Investment [Member] | Other Construction [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	7	8
Aging of Recorded Investment [Member] | Revolving, Open Ended [Member]
Financing Receivable, Impaired [Line Items]
Loans past due		156
Loans Not Past Due	16,169	16,991
Total loans balance	16,169	17,147
Aging of Recorded Investment [Member] | Revolving, Open Ended [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due		4
Aging of Recorded Investment [Member] | Revolving, Open Ended [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due		74
Aging of Recorded Investment [Member] | Revolving, Open Ended [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due		78
Aging of Recorded Investment [Member] | First Liens [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	687	1,685
Loans Not Past Due	83,674	81,933
Total loans balance	84,361	83,618
Aging of Recorded Investment [Member] | First Liens [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	308	1,111
Aging of Recorded Investment [Member] | First Liens [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	253	215
Aging of Recorded Investment [Member] | First Liens [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	126	359
Aging of Recorded Investment [Member] | Junior Liens [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	173
Loans Not Past Due	1,503	1,926
Total loans balance	1,676	1,926
Aging of Recorded Investment [Member] | Junior Liens [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	173
Aging of Recorded Investment [Member] | Farmland [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	176
Loans Not Past Due	7,526	7,495
Total loans balance	7,702	7,495
Aging of Recorded Investment [Member] | Farmland [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	94
Aging of Recorded Investment [Member] | Farmland [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	82
Aging of Recorded Investment [Member] | Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	348
Loans Not Past Due	49,303	42,383
Total loans balance	49,651	42,383
Aging of Recorded Investment [Member] | Owner Occupied [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	348
Aging of Recorded Investment [Member] | Non-Owner Occupied [Member]
Financing Receivable, Impaired [Line Items]
Loans past due		72
Loans Not Past Due	52,580	49,383
Total loans balance	52,580	49,455
Aging of Recorded Investment [Member] | Non-Owner Occupied [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due		72
Aging of Recorded Investment [Member] | Other Real Estate Secured Loans [Member]
Financing Receivable, Impaired [Line Items]
Loans past due		108
Loans Not Past Due	7,095	5,717
Total loans balance	7,095	5,825
Aging of Recorded Investment [Member] | Other Real Estate Secured Loans [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due		108
Aging of Recorded Investment [Member] | Agricultural [Member]
Financing Receivable, Impaired [Line Items]
Loans Not Past Due	828	855
Total loans balance	828	855
Aging of Recorded Investment [Member] | Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	21	31
Loans Not Past Due	17,950	14,628
Total loans balance	17,971	14,659
Aging of Recorded Investment [Member] | Commercial and Industrial [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due		31
Aging of Recorded Investment [Member] | Commercial and Industrial [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	21
Aging of Recorded Investment [Member] | Consumer [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	8	35
Loans Not Past Due	6,626	5,606
Total loans balance	6,634	5,641
Aging of Recorded Investment [Member] | Consumer [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due	8	35
Aging of Recorded Investment [Member] | Tax Exempt [Member]
Financing Receivable, Impaired [Line Items]
Loans Not Past Due	14	31
Total loans balance	14	31
Aging of Recorded Investment [Member] | Other Loans [Member]
Financing Receivable, Impaired [Line Items]
Loans past due		926
Loans Not Past Due	85	573
Total loans balance	$ 85	1,499
Aging of Recorded Investment [Member] | Other Loans [Member] | Greater than 90 Days Past Due [Member]
Financing Receivable, Impaired [Line Items]
Loans past due		$ 926

XML

Loans - Allowance for Loan Losses and Outstanding Loan Balance by Portfolio Segment 1 (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	$ 4,540	$ 6,306	$ 5,171	$ 8,039
Charge-offs	(35)	(230)	(158)	(1,273)
Recoveries	543	29	1,598	139
Provision	(694)		(2,257)	(800)
Total ending allowance balance	4,354	6,105	4,354	6,105
Individually evaluated for impairment, Loans	4,121		4,121		$ 9,885
Collectively evaluated for impairment, Loans	259,091		259,091		246,551
Total loans balance	263,212		263,212		256,436
Real Estate Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	775	997	892	1,249
Charge-offs		(103)		(103)
Recoveries		(1)	128	43
Provision	(77)	72	(322)	(224)
Total ending allowance balance	698	965	698	965
Individually evaluated for impairment, Loans	4		4		5,250
Collectively evaluated for impairment, Loans	18,442		18,442		20,652
Total loans balance	18,446		18,446		25,902
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	2,016	2,560	2,332	3,235
Charge-offs	(3)		(90)	(100)
Recoveries	49	15	118	24
Provision	(165)	(18)	(463)	(602)
Total ending allowance balance	1,897	2,557	1,897	2,557
Individually evaluated for impairment, Loans	2,239		2,239		1,499
Collectively evaluated for impairment, Loans	99,967		99,967		101,192
Total loans balance	102,206		102,206		102,691
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	842	1,134	994	1,273
Recoveries	3	4	616	21
Provision	(155)	(158)	(920)	(314)
Total ending allowance balance	690	980	690	980
Individually evaluated for impairment, Loans	1,650		1,650		1,778
Collectively evaluated for impairment, Loans	108,283		108,283		97,555
Total loans balance	109,933		109,933		99,333
Other Real Estate Secured Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	22	14	22	33
Provision	(10)	10	(10)	(9)
Total ending allowance balance	12	24	12	24
Collectively evaluated for impairment, Loans	7,095		7,095		5,825
Total loans balance	7,095		7,095		5,825
Commercial, Financial and Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	414	575	399	704
Charge-offs	(4)	(113)	(25)	(113)
Recoveries	17	3	245	12
Provision	192	17		(121)
Total ending allowance balance	619	482	619	482
Individually evaluated for impairment, Loans	224		224
Collectively evaluated for impairment, Loans	18,575		18,575		15,514
Total loans balance	18,799		18,799		15,514
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	18	24	22	24
Charge-offs	(6)		(6)
Recoveries	1	1	4	3
Provision	5	2	(2)
Total ending allowance balance	18	27	18	27
Individually evaluated for impairment, Loans	4		4		7
Collectively evaluated for impairment, Loans	6,630		6,630		5,634
Total loans balance	6,634		6,634		5,641
Tax Exempt [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment, Loans	14		14		31
Total loans balance	14		14		31
Other Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance		465		929
Charge-offs	(22)	(14)	(37)	(957)
Recoveries	473	7	487	36
Provision	(451)	6	(450)	456
Total ending allowance balance		464		464
Individually evaluated for impairment, Loans					1,351
Collectively evaluated for impairment, Loans	85		85		148
Total loans balance	85		85		$ 1,499
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Beginning Balance	453	537	510	592
Provision	(33)	69	(90)	14
Total ending allowance balance	$ 420	$ 606	$ 420	$ 606

XML

Regulatory Matters - Additional Information (Detail) - USD ($)		9 Months Ended
	Apr. 19, 2012	Sep. 30, 2015	Jul. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Maximum limit of Total assets to meet certain capital level requirements		$ 1,000,000,000
Number of days for submission of a written plan to maintain sufficient capital	60 days
Number of days to adopt approved capital plan	10 days
Number of days to submit written statement of planned sources	60 days
Number of days for progress report		45 days
Period used to compute maximum amount of dividend		2 years
Dividends		$ 10,262,000
Description to be adequately capitalized		Had the Company’s assets exceeded $1,000,000 at that date, the Company’s capital levels at September 30, 2015 would have been considered below those required to be considered “adequately capitalized” under applicable regulations because only two of the four capital ratios were above the levels necessary to be considered “adequate”. The Company’s Tier 1 to Average Assets ratio and Common Equity Tier I ratio were below the requirements to be considered “adequate”, which would have prohibited the Company from being considered “adequately capitalized”.
Capital Conservation Buffer		2.50%
Capital conservation buffer requirement phased in years		3 years
Basel lll [Member]
Financing Receivable, Recorded Investment [Line Items]
Description to be adequately capitalized		As described above, because the Company’s total assets are less than $1,000,000, the Company will not be required to comply with these new capital guidelines required under Basel III until its total assets exceed $1,000,000
Amount of capital requirement		$ 250,000,000,000
Minimum [Member]
Financing Receivable, Recorded Investment [Line Items]
Maximum limit of Total assets to meet certain capital level requirements		1,000,000,000
Maximum [Member]
Financing Receivable, Recorded Investment [Line Items]
Maximum limit of Total assets to meet certain capital level requirements		1,000,000,000	$ 1,000,000,000
Maximum [Member] | Basel lll [Member]
Financing Receivable, Recorded Investment [Line Items]
Maximum limit of Total assets to meet certain capital level requirements		$ 1,000,000,000

XML

Organization and Basis of Presentation

9 Months Ended

Sep. 30, 2015

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization and Basis of Presentation

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION

The consolidated financial statements include Community First, Inc. and its wholly-owned subsidiary, Community First Bank & Trust.  Community First, Inc., together with the Bank, is referred to herein as the “Company.” The sole subsidiary of Community First Bank & Trust is Community First Properties, Inc., which was originally established as a Real Estate Investment Trust (“REIT”) but which terminated its REIT election in the first quarter of 2012.   Community First Bank & Trust together with its subsidiary is referred to herein as the “Bank.”   Intercompany transactions and balances are eliminated in consolidation.

The Bank conducts substantially all of its banking activities in Maury, Williamson and Hickman Counties, in Tennessee.  Its primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans.  Substantially all loans are secured by specific items of collateral including business assets, consumer assets, and commercial and residential real estate.  Commercial loans are expected to be repaid from cash flows from operations of businesses.  The significant loan concentrations that exceed 10% of total loans are as follows:  commercial real estate loans, 1-4 family residential loans, and construction loans.  The customers’ ability to repay their loans is dependent, on the real estate and general economic conditions in the Company’s market areas.  Other financial instruments, which potentially represent concentrations of credit risk, include deposit accounts in other financial institutions and federal funds sold.

The unaudited consolidated financial statements as of September 30, 2015 and for the nine-month and three-month periods ended September 30, 2015 and 2014 have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the Securities and Exchange Commission (the “SEC”) and, in the opinion of management, include all adjustments, consisting of normal recurring adjustments, necessary to present fairly the information.  They do not include all the information and footnotes required by GAAP for complete financial statements.  Operating results for interim periods are not necessarily indicative of the results that may be expected for the entire year. For further information, refer to the 2014 consolidated audited financial statements and footnotes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2014, filed with the SEC on February 27, 2015 (File No. 000-49966) (the “2014 Form 10-K”).

Critical Accounting Policies:

The consolidated financial statements in this report are prepared in conformity with GAAP and with general practices in the banking industry. As such, we are required to make certain estimates, judgments, and assumptions that we believe are reasonable based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. A summary of our significant accounting policies is described in our 2014 Form 10-K. The significant accounting policies and estimates which we believe are the most critical to aid in fully understanding and evaluating our reported financial results include the following:

Allowance for Loan Losses:  Credit risk is inherent in the business of extending loans to borrowers.  This credit risk is addressed through a valuation allowance for probable incurred credit losses.  Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed.  Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors.  Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off.

The allowance consists of specific and general components.  The specific component relates to loans that are individually classified as impaired.

A loan is identified as impaired when, based on current information and events, it is probable that the scheduled payments of principal or interest will not be collected when due according to the contractual terms of the loan agreement.  However, some loans are termed impaired because of doubt regarding collectability of interest and principal according to the contractual terms, even though such loans are both fully secured by collateral and current in their interest and principal payments.  Additionally, loans are considered troubled debt restructurings and classified as impaired if their terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties.

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION (Continued)

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

All loans over $150 that are unlikely to collect under existing terms are individually evaluated for impairment.  If a loan is impaired, a portion of the allowance is allocated so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral.  Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures.

Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception.  If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral.  For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

The general component of the allowance covers loans collectively evaluated for impairment and is based on historical loss experience adjusted for current factors.  The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent three years.  This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment.  These economic factors include consideration of the following:  levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations.  The following loan portfolio segments have been identified with a discussion of the risk characteristics of these portfolio segments:

Real Estate Construction loans consist of loans made for both residential and commercial construction and land development.  Residential real estate construction loans are loans secured by real estate to build 1-4 family dwellings.  These are loans made to borrowers obtaining loans in their personal name for the personal construction of their own dwellings or loans to builders for the purpose of constructing homes for resale.  These loans to builders can be for speculative homes for which there is no specific homeowner for which the home is being built, as well as loans to builders that have a pre-sale contract to another individual.

Commercial Construction loans are loans extended to borrowers secured by and to build commercial structures such as churches, retail strip centers, industrial warehouses or office buildings.  Land development loans are granted to commercial borrowers to finance the improvement of real estate by adding infrastructure so that ensuing construction can take place.  Construction and land development loans are generally short term in maturity to match the expected completion of a particular project.  These loan types are generally more vulnerable to changes in economic conditions in that they project there will be a demand for the product.  They require monitoring to ensure the project is progressing in a timely manner within the expected budgeted amount.  This monitoring is accomplished via periodic physical inspections by an outside third party.

1-4 Family Residential loans consist of both open end and closed end loans secured by first or junior liens on 1-4 family improved residential dwellings.  Open end loans are Home Equity Lines of Credit that allow the borrower to use equity in the real estate to borrow and repay as the need arises.  First and junior lien residential real estate loans are closed end loans with a specific maturity that generally does not exceed 7 years.  Economic conditions can affect the borrower’s ability to repay the loans, and the value of the real estate securing the loans can change over the life of the loan.

Commercial Real Estate loans consist of loans secured by farmland or by improved commercial property.  Farmland includes all land known to be used or usable for agricultural purposes, such as crop and livestock production, grazing, or pasture land.  Improved commercial property can be owner occupied or non-owner occupied property secured by commercial structures such as churches, retail strip centers, hotels, industrial warehouses or office buildings.  The repayment of these loans tends to depend upon the operation and management of a business or lease income from a business, and therefore adverse economic conditions can affect the ability to repay.

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION (Continued)

Other Real Estate Secured loans consist of loans secured by five or more multi-family dwelling units.  These loans are typically exemplified by apartment buildings or complexes.  The ability to manage and rent units affects the income that usually provides repayment for this type of loan.

Commercial, Financial, and Agricultural loans consist of loans extended for the operation of a business or a farm.  They are not secured by real estate.  Commercial loans are used to provide working capital, acquire inventory, finance the carrying of receivables, purchase equipment or vehicles, or purchase other capital assets. Agricultural loans are typically for purposes such as planting crops, acquiring livestock, or purchasing farm equipment.  The repayment of these loans comes from the cash flow of a business or farm and is generated by sales of inventory or providing of services.  The collateral tends to depreciate over time and is difficult to monitor.  Frequent statements are required from the borrower pertaining to inventory levels or receivables aging.

Consumer loans consist largely of loans extended to individuals for purposes such as to purchase a vehicle or other consumer goods. These loans are not secured by real estate but are frequently collateralized by the consumer items being acquired with the loan proceeds.  This type of collateral tends to depreciate, and therefore the term of the loan is tailored to fit the expected value of the collateral as it depreciates, along with specific underwriting policies and guidelines.

Tax Exempt loans consist of loans that are extended to entities such as municipalities.  These loans tend to be dependent on the ability of the borrowing entity to continue to collect taxes to repay the indebtedness.

Other loans consist of those loans which are not elsewhere classified in these categories and are not secured by real estate.

XML

Loans - Risk Categories of Loans by Class of Loans (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	$ 234,628	$ 206,125
Watch [Member]
Financing Receivable, Impaired [Line Items]
Total	18,848	30,243
Special Mention [Member]
Financing Receivable, Impaired [Line Items]
Total	7
Substandard [Member]
Financing Receivable, Impaired [Line Items]
Total	5,606	10,183
Residential Construction [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	10,366	6,250
Residential Construction [Member] | Watch [Member]
Financing Receivable, Impaired [Line Items]
Total	230	3,132
Other Construction [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	6,338	6,673
Other Construction [Member] | Watch [Member]
Financing Receivable, Impaired [Line Items]
Total	139	3,756
Other Construction [Member] | Special Mention [Member]
Financing Receivable, Impaired [Line Items]
Total	7
Other Construction [Member] | Substandard [Member]
Financing Receivable, Impaired [Line Items]
Total	1,361	840
Revolving, Open Ended [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	15,745	16,664
Revolving, Open Ended [Member] | Watch [Member]
Financing Receivable, Impaired [Line Items]
Total	32	32
Revolving, Open Ended [Member] | Substandard [Member]
Financing Receivable, Impaired [Line Items]
Total	305	359
First Liens [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	70,693	66,655
First Liens [Member] | Watch [Member]
Financing Receivable, Impaired [Line Items]
Total	10,905	11,256
First Liens [Member] | Substandard [Member]
Financing Receivable, Impaired [Line Items]
Total	783	4,408
Junior Liens [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	1,503	1,819
Farmland [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	5,739	4,963
Farmland [Member] | Watch [Member]
Financing Receivable, Impaired [Line Items]
Total	186	905
Farmland [Member] | Substandard [Member]
Financing Receivable, Impaired [Line Items]
Total	1,777	1,626
Owner Occupied [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	44,123	37,204
Owner Occupied [Member] | Watch [Member]
Financing Receivable, Impaired [Line Items]
Total	5,013	4,634
Non-Owner Occupied [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	49,310	39,867
Non-Owner Occupied [Member] | Watch [Member]
Financing Receivable, Impaired [Line Items]
Total	1,199	5,535
Non-Owner Occupied [Member] | Substandard [Member]
Financing Receivable, Impaired [Line Items]
Total	936	2,821
Other Real Estate Loans [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	7,095	5,825
Agricultural [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	818	786
Agricultural [Member] | Watch [Member]
Financing Receivable, Impaired [Line Items]
Total	10	12
Agricultural [Member] | Substandard [Member]
Financing Receivable, Impaired [Line Items]
Total		56
Commercial and Industrial [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	16,206	13,626
Commercial and Industrial [Member] | Watch [Member]
Financing Receivable, Impaired [Line Items]
Total	1,130	978
Commercial and Industrial [Member] | Substandard [Member]
Financing Receivable, Impaired [Line Items]
Total	411	56
Consumer [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	6,593	5,614
Consumer [Member] | Watch [Member]
Financing Receivable, Impaired [Line Items]
Total	4	3
Consumer [Member] | Substandard [Member]
Financing Receivable, Impaired [Line Items]
Total	33	17
Tax Exempt [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	14	31
Other Loans [Member] | Pass [Member]
Financing Receivable, Impaired [Line Items]
Total	$ 85	$ 148

XML

Fair Value - Assets and Liabilities Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	$ 112,072	$ 91,440
Carrying Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	112,072	91,440
Loans held for sale		106
Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	111,970	91,337
Loans held for sale		106
Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	102	103
Recurring Basis [Member] | Carrying Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	112,072	91,440
Loans held for sale		106
Recurring Basis [Member] | Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	111,970	91,337
Loans held for sale		106
Recurring Basis [Member] | Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	102	103
U.S. Government Sponsored Entities [Member] | Recurring Basis [Member] | Carrying Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	6,862	15,352
U.S. Government Sponsored Entities [Member] | Recurring Basis [Member] | Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	6,862	15,352
Mortgage-Backed (Residential) [Member] | Recurring Basis [Member] | Carrying Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	102,326	74,014
Mortgage-Backed (Residential) [Member] | Recurring Basis [Member] | Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	102,326	74,014
State and Municipals [Member] | Recurring Basis [Member] | Carrying Value [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	2,884	2,074
State and Municipals [Member] | Recurring Basis [Member] | Level 2 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	2,782	1,971
State and Municipals [Member] | Recurring Basis [Member] | Level 3 [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Total available for sale securities	$ 102	$ 103

XML

Fair Value - Additional Information (Detail) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Discount applied to properties	15.00%
Appraisals performed	12 months
Transfers between pricing levels	$ 0	$ 0
Impaired loans recorded invested amount	4,121,000	15,205,000	$ 9,885,000
Impaired loans, valuation allowance amount	484,000	958,000	247,000
Total other real estate owned	8,704,000		13,734,000
Non-Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans, valuation allowance amount	359,000		66,000
Additional provision loan losses amount	0	0	0
Level 3 [Member] | Non-Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired loans recorded invested amount	914,000		3,373,000
Total other real estate owned	6,306,000		9,082,000
Outstanding balance	7,807,000		10,681,000
Other real estate owned, valuation allowance amount	1,501,000		$ 1,599,000
Other real estate owned, write-down amount	$ 308,000	$ 523,000

XML

Income Per Share - Income Per Share Computation (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Basic
Net income	$ 1,778	$ 232	$ 4,219	$ 1,824
Cash dividends declared on preferred stock	(1,102)	(424)	(1,936)	(1,147)
Less: Accretion of preferred stock discount				(33)
Net income available to common shareholders	$ 676	$ (192)	$ 2,283	$ 644
Weighted average common shares	3,275,421	3,274,876	3,275,204	3,274,844
Basic net income per share	$ 0.21	$ (0.06)	$ 0.70	$ 0.20
Diluted
Net income available to common stock	$ 676	$ (192)	$ 2,283	$ 644
Weighted average common shares	3,275,421	3,274,876	3,275,204	3,274,844
Average common shares and dilutive potential common shares outstanding	3,275,421	3,274,876	3,275,204	3,274,844
Diluted net income per share	$ 0.21	$ (0.06)	$ 0.70	$ 0.20

XML

Fair Value - Reconciliation and Income Statement Classification of Gains and Losses (Detail) - Level 3 [Member] - Recurring Basis [Member] - State and County Municipal Securities [Member] - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Beginning balance	$ 102	$ 105	$ 103	$ 105
Change in fair value	0	(1)	(1)	(1)
Ending balance	$ 102	$ 104	$ 102	$ 104

XML

Fair Value - Assets and Liabilities Measured on Non-Recurring Basis (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Other real estate owned:
Total other real estate owned	$ 8,704	$ 13,734
Carrying Value [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans:
Total impaired loans	555	3,307
Other real estate owned:
Total other real estate owned	6,306	9,082
Level 3 [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans:
Total impaired loans	555	3,307
Other real estate owned:
Total other real estate owned	6,306	9,082
Residential Portfolio Segment [Member] | Carrying Value [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans:
Total impaired loans	241	244
Other real estate owned:
Total other real estate owned	665	710
Residential Portfolio Segment [Member] | Level 3 [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans:
Total impaired loans	241	244
Other real estate owned:
Total other real estate owned	665	710
Commercial Real Estate Portfolio Segment [Member] | Carrying Value [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans:
Total impaired loans	211	1,410
Commercial Real Estate Portfolio Segment [Member] | Level 3 [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans:
Total impaired loans	211	1,410
Commercial, Financial and Agricultural [Member] | Carrying Value [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans:
Total impaired loans	103
Commercial, Financial and Agricultural [Member] | Level 3 [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans:
Total impaired loans	103
Construction and Development [Member] | Carrying Value [Member] | Fair Value, Measurements, Nonrecurring [Member]
Other real estate owned:
Total other real estate owned	2,526	4,815
Construction and Development [Member] | Level 3 [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member]
Other real estate owned:
Total other real estate owned	2,526	4,815
Non-Farm, Non-Residential [Member] | Carrying Value [Member] | Fair Value, Measurements, Nonrecurring [Member]
Other real estate owned:
Total other real estate owned	3,115	3,557
Non-Farm, Non-Residential [Member] | Level 3 [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member]
Other real estate owned:
Total other real estate owned	$ 3,115	3,557
Real Estate Construction [Member] | Carrying Value [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans:
Total impaired loans		727
Real Estate Construction [Member] | Level 3 [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans:
Total impaired loans		727
Other Loans [Member] | Carrying Value [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans:
Total impaired loans		926
Other Loans [Member] | Level 3 [Member] | Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Nonrecurring [Member]
Impaired loans:
Total impaired loans		$ 926

XML

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from operating activities
Net income	$ 4,219	$ 1,824
Adjustments to reconcile net income to net cash from operating activities
Depreciation	433	410
Amortization on securities, net	642	357
Core deposit intangible amortization	104	104
Reversal of provision for loan losses	(2,257)	(800)
Loans originated for sale	(2,429)	(2,226)
Proceeds from sale of loans	2,836	2,285
Gain on sale of loans	(71)	(59)
Net collected loan recoveries	1,440
(Increase) decrease in accrued interest receivable	(104)	148
Increase in accrued interest payable	839	540
Increase in surrender value of bank owned life insurance	(202)	(194)
Gain on sale of securities	(5)	(213)
Net write down of other real estate owned	487	751
Other, net	(1,952)	2,483
Net cash from operating activities	3,980	5,410
Purchases:
Mortgage-backed securities	(45,596)	(33,217)
Other	(1,086)	(5,133)
Sales:
Mortgage-backed securities	3,759	5,068
Other	10,854	19,519
Maturities, prepayments, and calls:
Mortgage-backed securities	11,016	6,636
Other		2,060
Net (increase) decrease in loans	(5,583)	8,892
Proceeds from sales of other real estate owned	4,672	3,321
Decrease (increase) in time deposits in other financial institutions	(237)	(13,450)
Additions to premises and equipment	(443)	(1,673)
Net cash used in investing activities	(22,644)	(7,977)
Cash flows from financing activities
Net increase in deposits	10,701	(14,717)
Proceeds from issuance of common stock	11	1
Net cash from financing activities	10,712	(14,716)
Net decrease in cash and cash equivalents	(7,952)	(17,283)
Cash and cash equivalents at beginning of period	38,256	49,036
Cash and cash equivalents at end of period	30,304	31,753
Supplemental disclosures of cash flow information Cash paid during year for:
Interest	1,423	1,720
Income taxes paid	23	13
Supplemental noncash disclosures
Transfers from loans to repossessed assets	247	414
Preferred stock dividends declared but not paid	1,936	1,147
Subordinated debenture interest accrued but not paid	756	592
Net cash from operating activities	3,980	5,410
Net cash used in investing activities	$ (22,644)	$ (7,977)

XML

Fair Value - Fair Value Measurements for Financial Instruments at Fair Value on Non-Recurring Basis (Detail) - Non-Recurring [Member] $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Impaired Loans [Member] | Residential Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 241
Valuation Technique	Sales comparison approach
Unobservable Input	Adjustment for differences between the comparable sales
Impaired Loans [Member] | Residential Portfolio Segment [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.00%
Impaired Loans [Member] | Residential Portfolio Segment [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.00%
Impaired Loans [Member] | Residential Portfolio Segment [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.00%
Impaired Loans [Member] | Commercial Real Estate Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 211
Valuation Technique	Sales comparison approach
Unobservable Input	Adjustment for differences between the comparable sales
Impaired Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.00%
Impaired Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	8.50%
Impaired Loans [Member] | Commercial Real Estate Portfolio Segment [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	7.20%
Impaired Loans [Member] | Commercial, Financial and Agricultural [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 103
Valuation Technique	Sales comparison approach
Unobservable Input	Adjustment for differences between the comparable sales
Impaired Loans [Member] | Commercial, Financial and Agricultural [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.00%
Impaired Loans [Member] | Commercial, Financial and Agricultural [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.00%
Impaired Loans [Member] | Commercial, Financial and Agricultural [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.00%
Other Real Estate Owned [Member] | Residential Portfolio Segment [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 665
Valuation Technique	Sales comparison approach
Unobservable Input	Adjustment for differences between the comparable sales
Other Real Estate Owned [Member] | Residential Portfolio Segment [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.00%
Other Real Estate Owned [Member] | Residential Portfolio Segment [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	10.00%
Other Real Estate Owned [Member] | Residential Portfolio Segment [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	4.10%
Other Real Estate Owned [Member] | Construction and Development [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 2,526
Valuation Technique	Sales comparison approach
Unobservable Input	Adjustment for differences between the comparable sales
Other Real Estate Owned [Member] | Construction and Development [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.00%
Other Real Estate Owned [Member] | Construction and Development [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	9.50%
Other Real Estate Owned [Member] | Construction and Development [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.30%
Other Real Estate Owned [Member] | Non-Farm, Non-Residential [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 3,115
Valuation Technique	Sales comparison approach
Unobservable Input	Adjustment for differences between the comparable sales
Other Real Estate Owned [Member] | Non-Farm, Non-Residential [Member] | Minimum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.00%
Other Real Estate Owned [Member] | Non-Farm, Non-Residential [Member] | Maximum [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.00%
Other Real Estate Owned [Member] | Non-Farm, Non-Residential [Member] | Weighted Average [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range (Weighted Average)	0.00%

XML

Loans - Loans Modified as Troubled Debt Restructurings within Twelve Months (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($) Contract	Sep. 30, 2014 USD ($) Contract
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	7	8
Pre-Modification Outstanding Recorded Investment	$ 3,083	$ 916
Post-Modification Outstanding Recorded Investment	$ 3,083	$ 916
Other Construction [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	1
Pre-Modification Outstanding Recorded Investment	$ 52
Post-Modification Outstanding Recorded Investment	$ 52
Revolving, Open Ended [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	1	1
Pre-Modification Outstanding Recorded Investment	$ 4	$ 35
Post-Modification Outstanding Recorded Investment	$ 4	$ 35
First Liens [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	2	1
Pre-Modification Outstanding Recorded Investment	$ 1,677	$ 263
Post-Modification Outstanding Recorded Investment	$ 1,677	$ 263
Owner Occupied [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract		2
Pre-Modification Outstanding Recorded Investment		$ 545
Post-Modification Outstanding Recorded Investment		$ 545
Non-Owner Occupied [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	1	1
Pre-Modification Outstanding Recorded Investment	$ 1,113	$ 35
Post-Modification Outstanding Recorded Investment	$ 1,113	$ 35
Commercial and Industrial [Member]
Financing Receivable, Modifications [Line Items]
Number of Contracts | Contract	2	3
Pre-Modification Outstanding Recorded Investment	$ 237	$ 38
Post-Modification Outstanding Recorded Investment	$ 237	$ 38

XML

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Assets
Cash and due from financial institutions	$ 30,304	$ 38,256
Time deposits in other financial institutions	22,414	22,177
Securities available for sale, at fair value	112,072	91,440
Loans held for sale, at fair value		106
Loans	263,212	256,436
Allowance for loan losses	(4,354)	(5,171)
Net loans	258,858	251,265
Restricted equity securities, at cost	1,727	1,727
Premises and equipment, net	11,803	11,832
Accrued interest receivable	1,138	1,034
Core deposit and customer relationship intangibles, net	974	1,078
Other real estate owned, net	8,704	13,734
Bank owned life insurance	10,066	9,864
Other assets	2,598	1,042
Total Assets	460,658	443,555
Deposits:
Noninterest-bearing	70,508	60,780
Interest-bearing	338,273	337,300
Total Deposits	408,781	398,080
Subordinated debentures	23,000	23,000
Accrued interest payable	5,760	4,921
Other liabilities	9,721	6,668
Total Liabilities	447,262	432,669
Shareholders’ Equity
Preferred stock, value	18,696	18,696
Common stock, no par value; Authorized 10,000,000 shares; 3,275,168 shares issued and outstanding at September 30, 2015 and 3,274,946 shares issued and outstanding at December 31, 2014	28,602	28,591
Accumulated deficit	(32,674)	(34,957)
Accumulated other comprehensive loss, net	(1,228)	(1,444)
Total Shareholders' Equity	13,396	10,886
Total Liabilities and Shareholders’ Equity	460,658	443,555
Senior Preferred Stock [Member]
Shareholders’ Equity
Preferred stock, value	17,806	17,806
Warrant Preferred Stock [Member]
Shareholders’ Equity
Preferred stock, value	$ 890	$ 890

XML

Income Per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Number of shares excluded from dilutive EPS computation	42,400	55,100	42,400	55,100

XML

Consolidated Statement of Changes in Shareholders' Equity (Unaudited) - 9 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	Common Stock [Member]	Preferred Stock [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Loss, Net [Member]
Beginning balance at Dec. 31, 2014	$ 10,886	$ 28,591	$ 18,696	$ (34,957)	$ (1,444)
Beginning balance, shares at Dec. 31, 2014		3,274,946
Sale of shares of common stock	11	$ 11
Sale of shares of common stock, shares		493
Cash dividends declared on preferred stock	(1,936)			(1,936)
Net income	4,219			4,219
Reclassification adjustment for realized gains included in net income, net of $0 income taxes	(5)				(5)
Change in unrealized loss on securities available for sale, net of $0 income tax	221				221
Ending balance at Sep. 30, 2015	$ 13,396	$ 28,602	$ 18,696	$ (32,674)	$ (1,228)
Ending balance, shares at Sep. 30, 2015		3,275,439

XML

Loans - Loans Outstanding by Category (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	$ 263,212	$ 256,436
Residential Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	10,596	9,382
Other Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	7,850	16,520
Revolving, Open Ended [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	16,169	17,147
First Liens [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	84,361	83,618
Junior Liens [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	1,676	1,926
Farmland [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	7,702	7,495
Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	49,651	42,383
Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	52,580	49,455
Other Real Estate Secured Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	7,095	5,825
Agricultural [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	828	855
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	17,971	14,659
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	6,634	5,641
Tax Exempt [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	14	31
Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans balance	$ 85	$ 1,499

XML

Organization and Basis of Presentation - Additional Information (Detail) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($) Dwelling
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Significant loan concentrations limit	10.00%
Threshold for loans individually evaluated for impairment | $	$ 150
Historical loss experience period by company	3 years
Maximum period for first and junior lien residential real estate loans with specific maturity	7 years
Minimum [Member]
Organization Consolidation And Presentation Of Financial Statements Disclosure [Line Items]
Other real estate secured loans, dwelling units	5

XML

Loans - Additional Information (Detail) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Loans [Line Items]
Accrued interest not included in recorded investment	$ 797,000	$ 790,000	$ 797,000	$ 790,000	$ 744,000
Troubled debt restructurings specific reserves	9,852,000		9,852,000		214,000
Troubled debt restructuring interest income	3,000	$ 95,000	40,000	107,000
Additional funds to loans	0		0		0
Troubled debt restructurings outstanding balance	3,027,000		3,027,000
Increase allowance for loan losses			0
Accruing interest	3,901,000		$ 3,901,000		2,140,000
Default payment of loan			90 days
Troubled debt restructurings subsequently defaulted, charge offs amount			$ 0	$ 0
Minimum [Member]
Loans [Line Items]
Range			6 months
Aggregate debt			$ 250,000
Maximum [Member]
Loans [Line Items]
Range			2 years
Term Loan [Member]
Loans [Line Items]
Troubled debt restructurings specific reserves	$ 7,753,000		$ 7,753,000		$ 278,000

XML

Securities Available for Sale - Proceeds from Sales of Securities and Associated Gains and Losses (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Proceeds From Sale Of Available For Sale Securities [Abstract]
Proceeds	$ 10,953	$ 12,825	$ 14,613	$ 24,587
Gross gains	59	271	80	376
Gross losses	$ (55)	$ (98)	$ (75)	$ (163)

XML

Consolidated Statement of Changes in Shareholders' Equity (Unaudited) (Parenthetical) $ in Thousands	9 Months Ended
	Sep. 30, 2015 USD ($)
Reclassification adjustment for realized gains included in net income, income taxes	$ 0
Change in unrealized loss on securities available for sale, income tax	0
Accumulated Other Comprehensive Loss, Net [Member]
Reclassification adjustment for realized gains included in net income, income taxes	0
Change in unrealized loss on securities available for sale, income tax	$ 0

XML

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Senior Preferred stock, dividend rate	9.00%	9.00%
Warrant Preferred stock, dividend rate	9.00%	9.00%
Preferred stock, liquidation value	$ 23,652	$ 21,849
Common stock, par value
Common stock, shares authorized	10,000,000	10,000,000
Common stock, shares issued	3,275,439	3,274,946
Common stock, shares outstanding	3,275,439	3,274,946
Senior Preferred Stock [Member]
Preferred stock, par value
Preferred stock, shares Authorized	2,500,000	2,500,000
Preferred stock, shares issued	17,806	17,806
Preferred stock, shares outstanding	17,806	17,806
Warrant Preferred Stock [Member]
Preferred stock, par value
Preferred stock, shares issued	890	890
Preferred stock, shares outstanding	890	890
Preferred stock, liquidation value	$ 1,343	$ 1,211

XML

Securities Available for Sale (Tables)

9 Months Ended

Sep. 30, 2015

Investments Debt And Equity Securities [Abstract]

Amortized Cost and Fair Value of Available for Sale Securities Portfolio

The following table summarizes the amortized cost and fair value of the available for sale securities portfolio at September 30, 2015 and December 31, 2014 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss), net of applicable income taxes:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2015
U.S. Government sponsored entities	$	6,870	$	4	$	(12	)	$	6,862
Mortgage-backed (residential)		101,910		537		(121	)		102,326
State and municipal		2,843		41		—			2,884
Total	$	111,623	$	582	$	(133	)	$	112,072
December 31, 2014
U.S. Government sponsored entities	$	15,618	$	—	$	(266	)	$	15,352
Mortgage-backed (residential)		73,576		530		(92	)		74,014
State and municipal		2,012		62		—			2,074
Total	$	91,206	$	592	$	(358	)	$	91,440

Proceeds from Sales of Securities and Associated Gains and Losses

The proceeds from sales of securities and the associated gains and losses are listed below:

	Nine months ended September 30,						Three months ended September 30,
	2015			2014			2015			2014
Proceeds	$	14,613		$	24,587		$	10,953		$	12,825
Gross gains		80			376			59			271
Gross losses		(75	)		(163	)		(55	)		(98	)

Amortized Cost and Fair Value of Securities Portfolio by Contractual Maturity

The amortized cost and fair value of the securities portfolio are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.  Mortgage backed securities are presented separately due to varying maturity dates as a result of prepayments.

	September 30, 2015
	Amortized Cost		Fair Value
Due in one year or less	$	340	$	344
Due after one through five years		5,888		5,900
Due after five through ten years		2,401		2,403
Due after ten years		1,084		1,099
Mortgage backed (residential)		101,910		102,326
Total	$	111,623	$	112,072

Securities with Unrealized Losses

The following table summarizes securities with unrealized losses at September 30, 2015 and December 31, 2014 aggregated by major security type and length of time in a continuous unrealized loss position:

September 30, 2015	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
U.S. Government sponsored entities	$	1,872	$	(3	)	$	2,488	$	(9	)	$	4,360	$	(12	)
Mortgage-backed (residential)		27,620		(105	)		4,822		(16	)		32,442		(121	)
Total temporarily impaired	$	29,492	$	(108	)	$	7,310	$	(25	)	$	36,802	$	(133	)

December 31, 2014	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
U.S. Government sponsored entities	$	246	$	(4	)	$	15,106	$	(262	)	$	15,352	$	(266	)
Mortgage-backed (residential)		6,869		(26	)		6,963		(66	)		13,832		(92	)
Total temporarily impaired	$	7,115	$	(30	)	$	22,069	$	(328	)	$	29,184	$	(358	)

XML

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2015	Nov. 13, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q3
Entity Registrant Name	COMMUNITY FIRST INC
Entity Central Index Key	0001179500
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		3,275,900

XML

Fair Value (Tables)

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured on Recurring Basis

Assets and Liabilities Measured on a Recurring Basis

			Fair Value Measurements at September 30, 2015 using
	Carrying Value		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Available for sale securities:
U.S. government sponsored entities	$	6,862	$	6,862	$	—
Mortgage-backed (residential)		102,326		102,326		—
State and municipals		2,884		2,782		102
Total available for sale securities		112,072		111,970		102
Loans held for sale		—		—		—

			Fair Value Measurements at December 31, 2014 using
	CarryingValue		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Available for sale securities:
U.S. government sponsored entities	$	15,352	$	15,352	$	—
Mortgage-backed (residential)		74,014		74,014		—
State and municipals		2,074		1,971		103
Total available for sale securities		91,440		91,337		103
Loans held for sale		106		106		—

Reconciliation and Income Statement Classification of Gains and Losses

The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine-month and three-month periods ended September 30, 2015 and 2014:

	FairValue Measurements Using Significant Unobservable Inputs (Level 3) State and County Municipal Securities
	Ninemonths ended September 30,						Three months ended September 30,
	2015			2014			2015		2014
Beginning balance	$	103		$	105		$	102	$	105
Change in fair value		(1	)		(1	)		—		(1	)
Ending balance	$	102		$	104		$	102	$	104

Assets and Liabilities Measured on Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis are summarized below:

	September 30, 2015
	Carrying Value		FairValue Measurements using other significant unobservable inputs (Level 3)
Assets:
Impaired loans:
1-4 Family residential	$	241	$	241
Commercial real estate		211		211
Commercial, financial and agricultural		103		103
Total impaired loans		555		555
Other real estate owned:
Construction and development		2,526		2,526
1-4 Family residential		665		665
Non-farm, non-residential		3,115		3,115
Total other real estate owned		6,306		6,306

	December 31, 2014
	CarryingValue		Fair Value Measurements using other significant unobservable inputs (Level 3)
Assets:
Impaired loans:
Real estate construction	$	727	$	727
1-4 Family residential		244		244
Commercial real estate		1,410		1,410
Other loans		926		926
Total impaired loans		3,307		3,307
Other real estate owned:
Construction and development		4,815		4,815
1-4 Family residential		710		710
Non-farm, non-residential		3,557		3,557
Total other real estate owned		9,082		9,082

Fair Value Measurements for Financial Instruments at Fair Value on Non-Recurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments at fair value on a non-recurring basis at September 30, 2015:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average) (1)
Impaired Loans:
1-4 Family residential	$	241	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (0.0%) (0.0%)
Commercial real estate	$	211	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (8.5%) (7.2%)
Commercial, financial and agricultural	$	103	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (0.0%) (0.0%)
Other real estate owned:
Construction and development	$	2,526	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (9.5%) (0.3%)
1-4 Family residential	$	665	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (10.0%) (4.1%)
Non-farm, non-residential	$	3,115	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (0.0%) (0.0%)

(1) The range presented in the table reflects the discounts applied by the independent appraiser in arriving at their conclusion of market value. Management applies an additional 15% discount to the appraiser’s conclusion of market value to arrive at fair value.

Carrying Amount and Estimated Fair Values of Significant Financial Instruments

Carrying amount and estimated fair values of significant financial instruments at September 30, 2015 and December 31, 2014 were as follows:

	September30, 2015
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents		30,304		30,304		30,304		—		—
Time deposits in other financial institutions		22,414		22,376		—		22,376		—
Securities available for sale		112,072		112,072		—		111,970		102
Loans held for sale, at fair value		—		—		—		—		—
Loans, net of allowance		258,858		252,556		—		—		252,556
Restricted equity securities		1,727	NA		NA		NA		NA
Accrued interest receivable		1,138		1,138		26		315		797
Financial liabilities
Deposits with stated maturities		205,372		206,334		—		206,334		—
Deposits without stated maturities		203,409		203,409		203,409		—		—
Accrued interest payable		5,760		5,760		2		483		5,275
Subordinated debentures		23,000		13,000		—		—		13,000

	December 31, 2014
	Carrying Amount		Total		Level1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	38,256	$	38,256	$	38,256	$	—	$	—
Time deposits in other financial institutions		22,177		21,999		—		21,999		—
Securities available for sale		91,440		91,440		—		91,337		103
Loans held for sale		106		106		—		106		—
Loans, net of allowance		251,265		246,506		—		—		246,506
Restricted equity securities		1,727	NA		NA		NA		NA
Accrued interest receivable		1,034		1,034		21		269		744
Financial liabilities
Deposits with stated maturities		208,386		209,376		—		209,376		—
Deposits without stated maturities		189,694		189,694		189,694		—		—
Accrued interest payable		4,921		4,921		1		400		4,520
Subordinated debentures		23,000		11,500		—		—		11,500

XML

Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Interest income
Loans, including fees	$ 4,260	$ 3,406	$ 11,170	$ 10,313
Taxable securities	540	499	1,455	1,398
Tax-exempt securities	12	15	37	62
Federal funds sold and other	89	77	266	227
Total interest income	4,901	3,997	12,928	12,000
Interest expense
Deposits	510	523	1,506	1,668
Subordinated debentures and other	356	202	756	592
Total interest expense	866	725	2,262	2,260
Net interest income	4,035	3,272	10,666	9,740
Provision for loan losses	(694)		(2,257)	(800)
Net interest income after provision for loan losses	4,729	3,272	12,923	10,540
Noninterest income
Service charges on deposit accounts	457	436	1,327	1,290
Gain on sale of loans	22	37	71	59
Gain on sale of securities available for sale	4	173	5	213
Other	131	172	408	488
Total noninterest income	614	818	1,811	2,050
Noninterest expense
Salaries and employee benefits	1,757	1,682	5,221	4,980
Regulatory and compliance	173	265	520	797
Occupancy	248	234	725	606
Furniture and equipment	86	82	234	236
Data processing fees	316	292	917	860
Advertising and public relations	43	41	140	143
Operational expense	117	101	358	307
Other real estate owned expense	150	449	403	827
Other	675	712	1,997	2,010
Total noninterest expenses	3,565	3,858	10,515	10,766
Income before income tax expense	1,778	232	4,219	1,824
Income tax expense			0
Net income	1,778	232	4,219	1,824
Preferred stock dividends declared	(1,102)	(424)	(1,936)	(1,147)
Accretion of preferred stock discount				(33)
Net income available to common shareholders	$ 676	$ (192)	$ 2,283	$ 644
Income per share available to common shareholders
Basic	$ 0.21	$ (0.06)	$ 0.70	$ 0.20
Diluted	$ 0.21	$ (0.06)	$ 0.70	$ 0.20
Weighted average common shares outstanding
Basic	3,275,421	3,274,876	3,275,204	3,274,844
Diluted	3,275,421	3,274,876	3,275,204	3,274,844
Comprehensive Income
Net income	$ 1,778	$ 232	$ 4,219	$ 1,824
Reclassification adjustment for realized gains included in net income, net of $0 income taxes	(4)	(173)	(5)	(213)
Unrealized (losses) gains on securities, net of $0 income taxes	530	(253)	221	930
Comprehensive income	$ 2,304	$ (194)	$ 4,435	$ 2,541

XML

Loans

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Loans

NOTE 4 - LOANS

Loans outstanding by category at September 30, 2015 and December 31, 2014 were as follows:

	September 30, 2015		December 31, 2014
Real estate construction:
Residential construction	$	10,596	$	9,382
Other construction		7,850		16,520
1-4 Family residential:
Revolving, open ended		16,169		17,147
First liens		84,361		83,618
Junior liens		1,676		1,926
Commercial real estate:
Farmland		7,702		7,495
Owner occupied		49,651		42,383
Non-owner occupied		52,580		49,455
Other real estate secured loans		7,095		5,825
Commercial, financial and agricultural:
Agricultural		828		855
Commercial and industrial		17,971		14,659
Consumer		6,634		5,641
Tax exempt		14		31
Other		85		1,499
	$	263,212	$	256,436

NOTE 4 – LOANS (Continued)

The following tables present activity in allowance for loan losses and the outstanding loan balance by portfolio segment and are based on impairment methods as of September 30, 2015 and 2014. The balances for “recorded investment” in the following tables related to credit quality do not include approximately $797, $790 and $744 in accrued interest receivable at September 30, 2015, September 30, 2014 and December 31, 2014, respectively. Accrued interest receivable is a component of the Company’s recorded investment in loans.

	Real Estate Construction			1-4 Family Residential			Commercial Real Estate			Other Real Estate Secured Loans			Commercial, Financial and Agricultural			Consumer			Tax Exempt		Other Loans			Unallocated			Total
Nine months ended    September 30, 2015
Activity in the allowance for loan    losses:
Beginning Balance	$	892		$	2,332		$	994		$	22		$	399		$	22		$	—	$	—		$	510		$	5,171
Charge-offs		—			(90	)		—			—			(25	)		(6	)		—		(37	)		—			(158	)
Recoveries		128			118			616			—			245			4			—		487			—			1,598
Provision		(322	)		(463	)		(920	)		(10	)		—			(2	)		—		(450	)		(90	)		(2,257	)
Total ending allowance balance		698			1,897			690			12			619			18			—		—			420			4,354
Nine months ended    September 30, 2014
Activity in the allowance for loan    losses:
Beginning Balance	$	1,249		$	3,235		$	1,273		$	33		$	704		$	24		$	—	$	929		$	592		$	8,039
Charge-offs		(103	)		(100	)		—			—			(113	)		—			—		(957	)		—			(1,273	)
Recoveries		43			24			21			—			12			3			—		36			—			139
Provision		(224	)		(602	)		(314	)		(9	)		(121	)		—			—		456			14			(800	)
Total ending allowance balance	$	965		$	2,557		$	980		$	24		$	482		$	27		$	—	$	464		$	606		$	6,105

	Real Estate Construction			1-4 Family Residential			Commercial Real Estate			Other Real Estate Secured Loans			Commercial, Financial and Agricultural			Consumer			Tax Exempt		Other Loans			Unallocated			Total
Three months ended    September 30, 2015
Activity in the allowance for loan    losses:
Beginning Balance	$	775		$	2,016		$	842		$	22		$	414		$	18		$	—	$	—		$	453		$	4,540
Charge-offs		—			(3	)		—			—			(4	)		(6	)		—		(22	)		—			(35	)
Recoveries		—			49			3			—			17			1			—		473			—			543
Provision		(77	)		(165	)		(155	)		(10	)		192			5			—		(451	)		(33	)		(694	)
Total ending allowance balance	$	698		$	1,897		$	690		$	12		$	619		$	18		$	—	$	—		$	420		$	4,354
Three months ended    September 30, 2014
Activity in the allowance for loan    losses:
Beginning Balance	$	997		$	2,560		$	1,134		$	14		$	575		$	24		$	—	$	465		$	537		$	6,306
Charge-offs		(103	)		—			—			—			(113	)		—			—		(14	)		—			(230	)
Recoveries		(1	)		15			4			—			3			1			—		7			—			29
Provision		72			(18	)		(158	)		10			17			2			—		6			69			—
Total ending allowance balance	$	965		$	2,557		$	980		$	24		$	482		$	27		$	—	$	464		$	606		$	6,105

NOTE 4 – LOANS (Continued)

	Real Estate Construction		1-4 Family Residential		Commercial Real Estate		Other Real Estate Secured Loans		Commercial, Financial and Agricultural		Consumer		Tax Exempt		Other Loans		Unallocated		Total
Ending allowance balance    attributable to loans at    September 30, 2015:
Individually evaluated for    impairment	$	—	$	285	$	78	$	—	$	121	$	—	$	—	$	—	$	—	$	484
Collectively evaluated for    Impairment		698		1,612		612		12		498		18		—		—		420		3,870
Total ending allowance    balance	$	698	$	1,897	$	690	$	12	$	619	$	18	$	0	$	0	$	420	$	4,354
Ending allowance balance    attributable to loans at    December31, 2014:
Individually evaluated for    impairment	$	66	$	126	$	55	$	—	$	—	$	—	$	—	$	—	$	—	$	247
Collectively evaluated for    Impairment		826		2,206		939		22		399		22		—		—		510		4,924
Total ending allowance    balance	$	892	$	2,332	$	994	$	22	$	399	$	22	$	—	$	—	$	510	$	5,171
Loans at September 30, 2015:
Individually evaluated for    impairment	$	4	$	2,239	$	1,650	$	—	$	224	$	4	$	—	$	—			$	4,121
Collectively evaluated for    impairment		18,442		99,967		108,283		7,095		18,575		6,630		14		85				259,091
Total loans balance	$	18,446	$	102,206	$	109,933	$	7,095	$	18,799	$	6,634	$	14	$	85			$	263,212
Loans at December 31, 2014:
Individually evaluated for    impairment	$	5,250	$	1,499	$	1,778	$	—	$	—	$	7	$	—	$	1,351			$	9,885
Collectively evaluated for    impairment		20,652		101,192		97,555		5,825		15,514		5,634		31		148				246,551
Total loans balance	$	25,902	$	102,691	$	99,333	$	5,825	$	15,514	$	5,641	$	31	$	1,499			$	256,436

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the nine months ended September 30, 2015:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Income Recognized		Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Other construction	$	—	$	—	$	—	$	1,834	$	—	$	—
1-4 Family residential:
Revolving, open ended		53		53		—		54		2		2
Junior liens		—		—		—		41		—		—
Commercial real estate:
Non-owner occupied		32		32		—		630		2		2
Consumer		4		4		—		5		—		—
Other loans		—		—		—		1,013		—		—
Total with no related allowance recorded		89		89		—		3,577		4		4
With an allowance recorded:
Real estate construction:
Other construction		5		5		—		1,041		—		—
1-4 Family residential:
Revolving, open ended		33		33		33		35		2		2
First Liens		1,980		1,979		79		1,850		79		80
Junior liens		173		173		173		43		4		5
Commercial real estate:
Owner occupied		516		516		51		538		33		24
Non-owner occupied		1,102		1,102		27		691		46		46
Commercial, financial and agricultural
Commercial and industrial		224		224		121		56		12		13
Consumer		—		—		—		1		—		—
Total with an allocated allowance recorded		4,033		4,032		484		4,255		176		170
Total	$	4,122	$	4,121	$	484	$	7,832	$	180	$	174

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the three months ended September 30, 2015:

	Average Recorded Investment		Income Recognized		Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Other construction	$	—	$	—	$	—
1-4 Family residential:
Revolving, open ended		53		—		1
Commercial real estate:
Non-owner occupied		33		1		1
Consumer		5		—		—
Other loans		676		—		—
Total with no related allowance recorded		767		1		2
With an allowance recorded:
Real estate construction:
Other construction		684		—		—
1-4 Family residential:
Revolving, open ended		33		1		1
First Liens		1,984		26		22
Junior liens		87		4		5
Commercial real estate:
Owner occupied		531		17		13
Non-owner occupied		1,105		15		15
Commercial, financial and agricultural
Commercial and industrial		112		12		13
Consumer		—		—		—
Total with an allocated allowance recorded		4,536		75		69
Total	$	5,303	$	76	$	71

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the nine months ended September 30, 2014:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Income Recognized		Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Residential construction	$	—	$	—	$	—	$	821	$	—	$	—
Other construction		7,383		7,280		—		5,959		—		—
1-4 Family residential:
Revolving, open ended		35		35		—		38		2		2
First liens		705		705		—		951		6		6
Junior liens		—		—		—		42		—		—
Commercial real estate:
Owner occupied		—		—		—		353		—		—
Non-owner occupied		3,214		1,258		—		1,523		2		2
Other real estate loans		109		109		—		115		—		—
Commercial, financial and agricultural:
Agricultural		1		—		—		—		—		—
Commercial and industrial		87		24		—		34		3		4
Consumer		8		8		—		5		—		—
Total with no related allowance recorded		11,542		9,419		—		9,841		13		14
With an allowance recorded:
Real estate construction:
Residential construction		—		—		—		925		56		56
Other construction		1,419		1,419		67		2,845		1		1
1-4 Family residential:
Revolving, open ended		38		38		33		95		3		3
First Liens		1,739		1,739		196		2,583		63		60
Commercial real estate:
Owner occupied		545		545		99		734		50		47
Non-owner occupied		—		—		—		604		—		—
Commercial, financial and agricultural:
Commercial and industrial		1,119		1,119		100		372		27		32
Consumer		—		—		—		8		—		—
Other loans		6,227		926		463		1,158		—		—
Total with an allocated allowance recorded		11,087		5,786		958		9,324		200		199
Total	$	22,629	$	15,205	$	958	$	19,165	$	213	$	213

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the three months ended September 30, 2014:

	Average Recorded Investment		Income Recognized			Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Residential construction	$	478	$	—		$	—
Other construction		5,356		—			—
1-4 Family residential:
Revolving, open ended		20		2			2
First liens		777		(1	)		(2	)
Commercial real estate:
Non-owner occupied		1,417		2			2
Other real estate loans		112		—			—
Commercial, financial and agricultural:
Commercial and industrial		68		3			4
Consumer		8		—			—
Total with no related allowance recorded		8,236		6			6
With an allowance recorded:
Real estate construction:
Residential construction		592		(2	)		(2	)
Other construction		3,407		(2	)		(2	)
1-4 Family residential:
Revolving, open ended		53		2			2
First Liens		1,453		32			29
Commercial real estate:
Owner occupied		545		15			12
Non-owner occupied		18		(8	)		(8	)
Commercial, financial and agricultural:
Commercial and industrial		567		27			32
Consumer		5		—			—
Other loans		926		—			—
Total with an allocated allowance recorded		7,566		64			63
Total	$	15,802	$	70		$	69

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2014:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Income Recognized		Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Residential construction	$	—	$	—	$	—	$	821	$	—	$	—
Other construction		3,952		3,849		—		5,102		—		—
1-4 Family residential:
Revolving, open ended		54		54		—		42		3		3
First liens		—		—		—		774		6		6
Junior liens		108		108		—		69		—		(1	)
Commercial real estate:
Owner occupied		—		—		—		353		—		—
Non-owner occupied		3,188		1,233		—		1,518		3		3
Other real estate loans		—		—		—		88		—		—
Commercial, financial and agricultural:
Commercial and industrial		—		—		—		28		—		—
Consumer		4		4		—		3		—		—
Other Loans		6,652		1,351		—		676		—		—
Total with no related allowance recorded		13,958		6,599		—		9,474		12		11
With an allowance recorded:
Real estate construction:
Residential construction		—		—		—		925		55		56
Other construction		1,402		1,402		66		2,842		1		1
1-4 Family residential:
Revolving, open ended		37		37		33		94		3		4
First Liens		1,299		1,299		93		2,474		65		69
Commercial real estate:
Owner occupied		545		545		55		734		64		66
Non-owner occupied		—		—		—		604		—		—
Commercial, financial and agricultural:
Commercial and industrial		—		—		—		92		—		—
Consumer		3		3		—		9		—		—
Other loans		—		—		—		926		—		—
Total with an allocated allowance recorded		3,286		3,286		247		8,700		188		196
Total	$	17,244	$	9,885	$	247	$	18,174	$	200	$	207

Troubled Debt Restructurings

The Company has $7,753 of loans with allocated specific reserves of $278 to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2015 compared to $9,852 with allocated specific reserves of $214 at December 31, 2014.  The Company lost $40 and $107 of interest income in the nine months and $3 and $95 of interest income in the three months ended September 30, 2015 and 2014, respectively, that would have been recorded in interest income if the specific loans had not been restructured.  The Bank had no commitments to lend additional funds to loans classified as troubled debt restructurings at September 30, 2015 or December 31, 2014.

NOTE 4 – LOANS (Continued)

During the first nine months of 2015, the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or granting of amortization terms for balloon notes that are longer than the Bank’s typical practice.

Modifications involving a reduction of the stated interest rate and extension of the maturity date of the loan were for periods ranging from six months to two years.

Loans classified as troubled debt restructurings are included in impaired loans.

The following table presents loans by class modified as troubled debt restructurings that occurred during the first nine months of 2015 and 2014:

	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
September 30, 2015
Real estate construction:
Other construction		1	$	52	$	52
1-4 Family residential:
Revolving, open ended		1		4		4
First liens		2		1,677		1,677
Commercial real estate:
Owner occupied
Non-owner occupied		1		1,113		1,113
Commercial, financial and agricultural
Commercial and industrial		2		237		237
Total		7	$	3,083	$	3,083
September 30, 2014
1-4 Family residential:
Revolving, open ended		1	$	35	$	35
First liens		1		263		263
Commercial real estate:
Owner occupied		2		545		545
Non-owner occupied		1		35		35
Commercial, financial and agricultural
Commercial and industrial		3		38		38
Total		8	$	916	$	916

Troubled debt restructurings described above had an outstanding balance of $3,027 at September 30, 2015. There was no increase for the allowance for loan losses during the first nine months of 2015.  Troubled debt restructurings still accruing interest totaled $3,901 and $2,140 at September 30, 2015 and December 31, 2014, respectively.

A loan is considered to be in payment default once it is more than 90 days contractually past due under the modified terms.  There were no troubled debt restructurings for which there was a payment default within twelve months following the modification during the first nine months of 2015 or 2014.

In order to determine whether a borrower is experiencing financial difficulty, an evaluation is performed of the probability that the borrower will be in payment default on any of its debt in the foreseeable future without modification.  This evaluation is performed in accordance with the Company’s internal loan policy.  Nonperforming loans include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

NOTE 4 – LOANS (Continued)

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still accruing by class of loans as of September 30, 2015 and December 31, 2014:

	September 30, 2015				December 31, 2014
	Nonaccrual		Loans past due over90 days still accruing		Nonaccrual		Loans past due over 90 daysstill accruing
Real estate construction:
Other construction	$	—	$	—	$	5,236	$	—
1-4 Family residential:
Revolving, open ended		109		—		78		—
First Liens		153		—		359		—
Junior Liens		173		—		—		—
Commercial real estate:
Farmland		82		—		—		—
Owner occupied		—		—		324		—
Non-owner occupied		—		—		1,199		—
Other real estate loans		—		—		108		—
Consumer		19		—		—		—
Other loans		—		—		1,351		—
Total	$	536	$	—	$	8,655	$	—

The following table presents the aging of the recorded investment in past due loans, including nonaccrual loans as of September 30, 2015 and December 31, 2014 by class of loans:

	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater than 90Days Past Due		Total Past Due		Loans Not Past Due		Total
September 30, 2015
Real estate construction:
Residential construction	$	—	$	67	$	50	$	117	$	10,479	$	10,596
Other construction		1,065		7		—		1,072		6,778		7,850
1-4 Family residential:
Revolving, open ended		—		—		—		—		16,169		16,169
First Liens		308		253		126		687		83,674		84,361
Junior Liens		—		—		173		173		1,503		1,676
Commercial real estate:
Farmland		94		—		82		176		7,526		7,702
Owner occupied		—		348		—		348		49,303		49,651
Non-owner occupied		—		—		—		—		52,580		52,580
Other real estate secured loans		—		—		—		—		7,095		7,095
Commercial, financial and agricultural:
Agricultural		—		—		—		—		828		828
Commercial and industrial		—		21		—		21		17,950		17,971
Consumer		8		—		—		8		6,626		6,634
Tax exempt		—		—		—		—		14		14
Other loans		—		—		—		—		85		85
Total	$	1,475	$	696	$	431	$	2,602	$	260,610	$	263,212

NOTE 4 – LOANS (Continued)

	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
December 31, 2014
Real estate construction:
Residential construction	$	—	$	—	$	—	$	—	$	9,382	$	9,382
Other construction		66		8		—		74		16,446		16,520
1-4 Family residential:
Revolving, open ended		4		74		78		156		16,991		17,147
First Liens		1,111		215		359		1,685		81,933		83,618
Junior Liens		—		—		—		—		1,926		1,926
Commercial real estate:
Farmland		—		—		—		—		7,495		7,495
Owner occupied		—		—		—		—		42,383		42,383
Non-owner occupied		72		—		—		72		49,383		49,455
Other real estate secured loans		108		—		—		108		5,717		5,825
Commercial, financial and agricultural:
Agricultural		—		—		—		—		855		855
Commercial and industrial		31		—		—		31		14,628		14,659
Consumer		35		—		—		35		5,606		5,641
Tax exempt		—		—		—		—		31		31
Other loans		—		—		926		926		573		1,499
Total	$	1,427	$	297	$	1,363	$	3,087	$	253,349	$	256,436

Credit Quality Indicators:

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually by classifying the loans as to credit risk.  The Company assigns an initial credit risk rating on every loan.  All loan relationships with aggregate debt greater than $250 are reviewed at least annually or more frequently if performance of the loan or other factors warrants review.  Smaller balance loans are reviewed and evaluated based on changes in loan performance, such as becoming past due or upon notifying the Bank of a change in the borrower’s financial status.  This analysis is performed on a monthly basis.  The Company uses the following definitions for risk ratings:

Watch.  Loans characterized by borrowers who have marginal cash flow, marginal profitability, or have experienced operating losses and declining financial condition.  The borrower has satisfactorily handled debts with the Bank in the past, but in recent months has either been late, delinquent in making payments, or made sporadic payments.  While the Bank continues to be adequately secured, the borrower’s margins have decreased or are decreasing, despite the borrower’s continued satisfactory condition.  Other characteristics of borrowers in this class include inadequate credit information and weakness of financial statement and repayment capacity, but with collateral that appears to limit the Bank’s exposure.  This classification includes loans to established borrowers that are reasonably margined by collateral, but where potential for improvement in financial capacity is limited.

Special Mention.  Loans with potential weaknesses that deserve management’s close attention.  If left uncorrected, these potential weaknesses may result in deteriorating prospects for the repayment source or in the Bank’s credit position in the future.

Substandard.  Loans inadequately protected by the payment capacity of the borrower or the pledged collateral

Doubtful.  Loans with the same characteristics as substandard loans with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently existing facts, conditions, and values.   These are poor quality loans in which neither the collateral nor the financial condition of the borrower presently ensure collectability in full in a reasonable period of time or evidence of permanent impairment in the collateral securing the loan.

NOTE 4 – LOANS (Continued)

Impaired loans are evaluated separately from other loans in the Bank’s portfolio.  Credit quality information related to impaired loans was presented above and is excluded from the tables below.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans.  As of September 30, 2015 and December 31, 2014, and based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:

	Pass		Watch		Special Mention		Substandard		Doubtful
September 30, 2015
Real estate construction:
Residential construction	$	10,366	$	230	$	—	$	—	$	—
Other construction		6,338		139		7		1,361		—
1-4 Family residential:
Revolving, open ended		15,745		32		—		305		—
First Liens		70,693		10,905		—		783		—
Junior Liens		1,503		—		—		—		—
Commercial real estate:
Farmland		5,739		186		—		1,777		—
Owner occupied		44,123		5,013		—		—		—
Non-owner occupied		49,310		1,199		—		936		—
Other real estate loans		7,095		—		—		—		—
Commercial, financial and agricultural:
Agricultural		818		10		—		—		—
Commercial and industrial		16,206		1,130		—		411		—
Consumer		6,593		4		—		33		—
Tax exempt		14		—		—		—		—
Other loans		85		—		—		—		—
Total	$	234,628	$	18,848	$	7	$	5,606	$	—

	Pass		Watch		Special Mention		Substandard		Doubtful
December 31, 2014
Real estate construction:
Residential construction	$	6,250	$	3,132	$	—	$	—	$	—
Other construction		6,673		3,756		—		840		—
1-4 Family residential:
Revolving, open ended		16,664		32		—		359		—
First Liens		66,655		11,256		—		4,408		—
Junior Liens		1,819		—		—		—		—
Commercial real estate:
Farmland		4,963		905		—		1,626		—
Owner occupied		37,204		4,634		—		—		—
Non-owner occupied		39,867		5,535		—		2,821		—
Other real estate loans		5,825		—		—		—		—
Commercial, financial and agricultural:
Agricultural		786		12		—		56		—
Commercial and industrial		13,626		978		—		56		—
Consumer		5,614		3		—		17		—
Tax exempt		31		—		—		—		—
Other loans		148		—		—		—		—
Total	$	206,125	$	30,243	$	—	$	10,183	$	—

XML

Fair Value

9 Months Ended

Sep. 30, 2015

Fair Value Disclosures [Abstract]

Fair Value

NOTE 3 - FAIR VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

The Company used the following methods and significant assumptions to estimate the fair value of each type of financial instrument:

Investment Securities: The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on matrix pricing which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities' relationship to other benchmark quoted securities (Level 2). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3). Discounted cash flows are calculated using estimates of current market rates for each type of security.

NOTE 3 - FAIR VALUE (Continued)

During times when trading is more liquid, broker quotes are used (if available) to validate the model agency and industry research reports as well as defaults, and deferrals on individual securities are reviewed and incorporated into the calculations.

Loans Held for Sale: Generally, the fair value of loans held for sale is based on what secondary markets are currently offering for loans with similar characteristics or based on an agreed upon sales price with third party investors and typically result in a Level 2 classification of the inputs for determining fair value.

Impaired Loans: The fair value of impaired loans with specific allocations of the allowance for loan losses is generally based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

Other Real Estate Owned: Real estate acquired through foreclosure on a loan or by surrender of the real estate in lieu of foreclosure is called “OREO”. OREO is initially recorded at the fair value of the property less estimated costs to sell, which establishes a new cost basis. OREO is subsequently accounted for at the lower of cost or fair value less estimated costs to sell. Fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Valuation adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Valuation adjustments are also required when the listing price to sell an OREO property has had to be reduced below the current carrying value. If there is a decrease in the fair value of the property from the last valuation, the decrease in value is charged to noninterest expense. All income produced from, changes in fair values in, and gains and losses on OREOs is also included in noninterest expense. During the time the property is held, all related operating and maintenance costs are expensed as incurred.

Appraisals for both collateral dependent impaired loans and OREO are performed by certified general appraisers, certified residential appraisers or state licensed appraisers whose qualifications and licenses are annually reviewed and verified by the Bank. Once received, either Bank personnel or an independent review appraiser reviews the assumptions and approaches utilized in the appraisal, as well as the overall resulting fair value, and determines whether the appraisal is reasonable. Appraisals for collateral dependent impaired loans and OREO are updated annually. On an annual basis, the Company compares the actual selling costs of collateral that has been liquidated to the selling price to determine what additional adjustment should be made to the appraisal value to arrive at fair value. Beginning in the third quarter of 2010, the Company’s analysis indicated that a discount of 15% should be applied to properties with appraisals performed within 12 months.

Mortgage Banking Derivatives: Commitments to fund mortgage loans (interest rate locks) to be sold into the secondary market are accounted for as free standing derivatives. Fair values of these mortgage derivatives are estimated based on the anticipated gain from the sale of the underlying loan. Changes in the fair values of these derivatives are included in noninterest income as gain on sale of loans.

NOTE 3 - FAIR VALUE (Continued)

Assets and Liabilities Measured on a Recurring Basis

			Fair Value Measurements at September 30, 2015 using
	Carrying Value		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Available for sale securities:
U.S. government sponsored entities	$	6,862	$	6,862	$	—
Mortgage-backed (residential)		102,326		102,326		—
State and municipals		2,884		2,782		102
Total available for sale securities		112,072		111,970		102
Loans held for sale		—		—		—

			Fair Value Measurements at December 31, 2014 using
	CarryingValue		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Available for sale securities:
U.S. government sponsored entities	$	15,352	$	15,352	$	—
Mortgage-backed (residential)		74,014		74,014		—
State and municipals		2,074		1,971		103
Total available for sale securities		91,440		91,337		103
Loans held for sale		106		106		—

There were no transfers among fair value pricing levels during the nine months ended September 30, 2015 and 2014.

The table below presents a reconciliation and income statement classification of gains and losses for all assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) for the nine-month and three-month periods ended September 30, 2015 and 2014:

	FairValue Measurements Using Significant Unobservable Inputs (Level 3) State and County Municipal Securities
	Ninemonths ended September 30,						Three months ended September 30,
	2015			2014			2015		2014
Beginning balance	$	103		$	105		$	102	$	105
Change in fair value		(1	)		(1	)		—		(1	)
Ending balance	$	102		$	104		$	102	$	104

NOTE 3 - FAIR VALUE (Continued)

The following methods and assumptions were used by the Company in generating its fair value disclosures:

U.S. Government Sponsored Entities and Mortgage-Backed Securities:

The Company uses an independent third party to value its U.S. government sponsored entities and mortgage-backed securities, which are obligations that are not backed by the full faith and credit of the United States government and consist of Government Sponsored Entities that either issue the securities or guarantee the collection of principal and interest payments thereon. The third party’s valuation approach uses relevant information generated by recently executed transactions that have occurred in the market place that involve similar assets, as well as using cash flow information when necessary. These inputs are observable, either directly or indirectly in the market place for similar assets. The Company considers these valuations to be Level 2 pricing; however, when the securities are added to the portfolio after the third party’s system-wide market value monthly update, the valuations are considered Level 3 pricing.

State and Municipal Securities:

The valuation of the Company’s state and municipal securities is supported by analysis prepared by an independent third party. Their approach to determining fair value involves using recently executed transactions for similar securities and market quotations for similar securities. For these securities that are rated by the rating agencies and have recent trades, the Company considers these valuations to be Level 2 pricing. For these securities that are not rated by the rating agencies and for which trading volumes are thin, the valuations are considered Level 3 pricing.

Corporate Securities:

For corporate securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows (Level 3) as determined by an independent third party. The significant unobservable inputs used in the valuation model include discount rates and yields or current spreads to U.S. Treasury rates.

Assets and Liabilities Measured on a Non-Recurring Basis

Assets and liabilities measured at fair value on a non-recurring basis are summarized below:

	September 30, 2015
	Carrying Value		FairValue Measurements using other significant unobservable inputs (Level 3)
Assets:
Impaired loans:
1-4 Family residential	$	241	$	241
Commercial real estate		211		211
Commercial, financial and agricultural		103		103
Total impaired loans		555		555
Other real estate owned:
Construction and development		2,526		2,526
1-4 Family residential		665		665
Non-farm, non-residential		3,115		3,115
Total other real estate owned		6,306		6,306

NOTE 3 - FAIR VALUE (Continued)

	December 31, 2014
	CarryingValue		Fair Value Measurements using other significant unobservable inputs (Level 3)
Assets:
Impaired loans:
Real estate construction	$	727	$	727
1-4 Family residential		244		244
Commercial real estate		1,410		1,410
Other loans		926		926
Total impaired loans		3,307		3,307
Other real estate owned:
Construction and development		4,815		4,815
1-4 Family residential		710		710
Non-farm, non-residential		3,557		3,557
Total other real estate owned		9,082		9,082

Impaired loans, with specific allocations or partial charge offs based on the fair value of the underlying collateral for collateral dependent loans, had a recorded investment of $914 at September 30, 2015, with a valuation allowance of $359, resulting in no additional provision for loan losses for the nine-month period ended September 30, 2015. No additional provision was recorded in the first nine months of 2014 on impaired loans. Impaired loans, with specific allocations or partial charge offs based on the fair value of the underlying collateral for collateral dependent loans, had a recorded investment of $3,373, with a valuation allowance of $66, resulting in no additional provision for loan losses for the year ended December 31, 2014.

Other real estate owned, measured at the lower of carrying or fair value less costs to sell, had a net carrying amount of $6,306, which is made up of the outstanding balance of $7,807, net of a valuation allowance of $1,501 at September 30, 2015, resulting in a write-down of $308 charged to expense in the nine months ended September 30, 2015, compared to a write-down of $523 charged to expense in the first nine months of 2014. Net carrying amount was $9,082 at December 31, 2014, which was made up of the outstanding balance of $10,681, net of a valuation allowance of $1,599.

NOTE 3 - FAIR VALUE (Continued)

The following table presents quantitative information about Level 3 fair value measurements for financial instruments at fair value on a non-recurring basis at September 30, 2015:

	Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range (Weighted Average) (1)
Impaired Loans:
1-4 Family residential	$	241	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (0.0%) (0.0%)
Commercial real estate	$	211	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (8.5%) (7.2%)
Commercial, financial and agricultural	$	103	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (0.0%) (0.0%)
Other real estate owned:
Construction and development	$	2,526	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (9.5%) (0.3%)
1-4 Family residential	$	665	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (10.0%) (4.1%)
Non-farm, non-residential	$	3,115	Sales comparison approach	Adjustment for differences between the comparable sales	(0.0%) - (0.0%) (0.0%)

(1) The range presented in the table reflects the discounts applied by the independent appraiser in arriving at their conclusion of market value. Management applies an additional 15% discount to the appraiser’s conclusion of market value to arrive at fair value.

Carrying amount and estimated fair values of significant financial instruments at September 30, 2015 and December 31, 2014 were as follows:

	September30, 2015
	Carrying Amount		Total		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents		30,304		30,304		30,304		—		—
Time deposits in other financial institutions		22,414		22,376		—		22,376		—
Securities available for sale		112,072		112,072		—		111,970		102
Loans held for sale, at fair value		—		—		—		—		—
Loans, net of allowance		258,858		252,556		—		—		252,556
Restricted equity securities		1,727	NA		NA		NA		NA
Accrued interest receivable		1,138		1,138		26		315		797
Financial liabilities
Deposits with stated maturities		205,372		206,334		—		206,334		—
Deposits without stated maturities		203,409		203,409		203,409		—		—
Accrued interest payable		5,760		5,760		2		483		5,275
Subordinated debentures		23,000		13,000		—		—		13,000

NOTE 3 - FAIR VALUE (Continued)

	December 31, 2014
	Carrying Amount		Total		Level1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	38,256	$	38,256	$	38,256	$	—	$	—
Time deposits in other financial institutions		22,177		21,999		—		21,999		—
Securities available for sale		91,440		91,440		—		91,337		103
Loans held for sale		106		106		—		106		—
Loans, net of allowance		251,265		246,506		—		—		246,506
Restricted equity securities		1,727	NA		NA		NA		NA
Accrued interest receivable		1,034		1,034		21		269		744
Financial liabilities
Deposits with stated maturities		208,386		209,376		—		209,376		—
Deposits without stated maturities		189,694		189,694		189,694		—		—
Accrued interest payable		4,921		4,921		1		400		4,520
Subordinated debentures		23,000		11,500		—		—		11,500

Carrying amount is the estimated fair value for cash and cash equivalents, demand deposits, short-term debt, and variable rate loans or deposits that reprice frequently and fully resulting in a Level 1 classification. Fair value for accrued interest receivable and payable is based on the contractual terms of the facility, resulting in a Level 1, Level 2 or Level 3 classification based on the classification of the respective facility. The method for determining fair values of securities is discussed above. Restricted equity securities do not have readily determinable fair values due to their restrictions on transferability, therefore no fair value is presented. For fixed rate loans and variable rate loans with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk resulting in a Level 3 classification. For fixed and variable rate deposits with infrequent repricing or repricing limits, fair value is based on discounted cash flows using current market rates applied to the estimated life and credit risk resulting in a Level 2 classification. Fair values for impaired loans are estimated using discounted cash flow analysis or underlying collateral values resulting in a Level 3 classification. Fair value of loans held for sale is based on market quotes resulting in a Level 2 classification. Fair value of subordinated debentures is based on discounted cash flows using current rates for similar financing resulting in a Level 3 classification. The fair value of off-balance-sheet items is not considered material.

XML

Securities Available for Sale - Amortized Cost and Fair Value of Available for Sale Securities Portfolio (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	$ 111,623	$ 91,206
Gross Unrealized Gains	582	592
Gross Unrealized Losses	(133)	(358)
Fair Value	112,072	91,440
U.S. Government Sponsored Entities [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	6,870	15,618
Gross Unrealized Gains	4
Gross Unrealized Losses	(12)	(266)
Fair Value	6,862	15,352
Mortgage-Backed (Residential) [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	101,910	73,576
Gross Unrealized Gains	537	530
Gross Unrealized Losses	(121)	(92)
Fair Value	102,326	74,014
State and Municipals [Member]
Schedule Of Available For Sale Securities [Line Items]
Amortized Cost	2,843	2,012
Gross Unrealized Gains	41	62
Fair Value	$ 2,884	$ 2,074

XML

Loans (Tables)

9 Months Ended

Sep. 30, 2015

Receivables [Abstract]

Loans Outstanding by Category

Loans outstanding by category at September 30, 2015 and December 31, 2014 were as follows:

	September 30, 2015		December 31, 2014
Real estate construction:
Residential construction	$	10,596	$	9,382
Other construction		7,850		16,520
1-4 Family residential:
Revolving, open ended		16,169		17,147
First liens		84,361		83,618
Junior liens		1,676		1,926
Commercial real estate:
Farmland		7,702		7,495
Owner occupied		49,651		42,383
Non-owner occupied		52,580		49,455
Other real estate secured loans		7,095		5,825
Commercial, financial and agricultural:
Agricultural		828		855
Commercial and industrial		17,971		14,659
Consumer		6,634		5,641
Tax exempt		14		31
Other		85		1,499
	$	263,212	$	256,436

Allowance for Loan Losses and Outstanding Loan Balance by Portfolio Segment

The following tables present activity in allowance for loan losses and the outstanding loan balance by portfolio segment and are based on impairment methods as of September 30, 2015 and 2014.

	Real Estate Construction			1-4 Family Residential			Commercial Real Estate			Other Real Estate Secured Loans			Commercial, Financial and Agricultural			Consumer			Tax Exempt		Other Loans			Unallocated			Total
Nine months ended    September 30, 2015
Activity in the allowance for loan    losses:
Beginning Balance	$	892		$	2,332		$	994		$	22		$	399		$	22		$	—	$	—		$	510		$	5,171
Charge-offs		—			(90	)		—			—			(25	)		(6	)		—		(37	)		—			(158	)
Recoveries		128			118			616			—			245			4			—		487			—			1,598
Provision		(322	)		(463	)		(920	)		(10	)		—			(2	)		—		(450	)		(90	)		(2,257	)
Total ending allowance balance		698			1,897			690			12			619			18			—		—			420			4,354
Nine months ended    September 30, 2014
Activity in the allowance for loan    losses:
Beginning Balance	$	1,249		$	3,235		$	1,273		$	33		$	704		$	24		$	—	$	929		$	592		$	8,039
Charge-offs		(103	)		(100	)		—			—			(113	)		—			—		(957	)		—			(1,273	)
Recoveries		43			24			21			—			12			3			—		36			—			139
Provision		(224	)		(602	)		(314	)		(9	)		(121	)		—			—		456			14			(800	)
Total ending allowance balance	$	965		$	2,557		$	980		$	24		$	482		$	27		$	—	$	464		$	606		$	6,105

	Real Estate Construction			1-4 Family Residential			Commercial Real Estate			Other Real Estate Secured Loans			Commercial, Financial and Agricultural			Consumer			Tax Exempt		Other Loans			Unallocated			Total
Three months ended    September 30, 2015
Activity in the allowance for loan    losses:
Beginning Balance	$	775		$	2,016		$	842		$	22		$	414		$	18		$	—	$	—		$	453		$	4,540
Charge-offs		—			(3	)		—			—			(4	)		(6	)		—		(22	)		—			(35	)
Recoveries		—			49			3			—			17			1			—		473			—			543
Provision		(77	)		(165	)		(155	)		(10	)		192			5			—		(451	)		(33	)		(694	)
Total ending allowance balance	$	698		$	1,897		$	690		$	12		$	619		$	18		$	—	$	—		$	420		$	4,354
Three months ended    September 30, 2014
Activity in the allowance for loan    losses:
Beginning Balance	$	997		$	2,560		$	1,134		$	14		$	575		$	24		$	—	$	465		$	537		$	6,306
Charge-offs		(103	)		—			—			—			(113	)		—			—		(14	)		—			(230	)
Recoveries		(1	)		15			4			—			3			1			—		7			—			29
Provision		72			(18	)		(158	)		10			17			2			—		6			69			—
Total ending allowance balance	$	965		$	2,557		$	980		$	24		$	482		$	27		$	—	$	464		$	606		$	6,105

NOTE 4 – LOANS (Continued)

	Real Estate Construction		1-4 Family Residential		Commercial Real Estate		Other Real Estate Secured Loans		Commercial, Financial and Agricultural		Consumer		Tax Exempt		Other Loans		Unallocated		Total
Ending allowance balance    attributable to loans at    September 30, 2015:
Individually evaluated for    impairment	$	—	$	285	$	78	$	—	$	121	$	—	$	—	$	—	$	—	$	484
Collectively evaluated for    Impairment		698		1,612		612		12		498		18		—		—		420		3,870
Total ending allowance    balance	$	698	$	1,897	$	690	$	12	$	619	$	18	$	0	$	0	$	420	$	4,354
Ending allowance balance    attributable to loans at    December31, 2014:
Individually evaluated for    impairment	$	66	$	126	$	55	$	—	$	—	$	—	$	—	$	—	$	—	$	247
Collectively evaluated for    Impairment		826		2,206		939		22		399		22		—		—		510		4,924
Total ending allowance    balance	$	892	$	2,332	$	994	$	22	$	399	$	22	$	—	$	—	$	510	$	5,171
Loans at September 30, 2015:
Individually evaluated for    impairment	$	4	$	2,239	$	1,650	$	—	$	224	$	4	$	—	$	—			$	4,121
Collectively evaluated for    impairment		18,442		99,967		108,283		7,095		18,575		6,630		14		85				259,091
Total loans balance	$	18,446	$	102,206	$	109,933	$	7,095	$	18,799	$	6,634	$	14	$	85			$	263,212
Loans at December 31, 2014:
Individually evaluated for    impairment	$	5,250	$	1,499	$	1,778	$	—	$	—	$	7	$	—	$	1,351			$	9,885
Collectively evaluated for    impairment		20,652		101,192		97,555		5,825		15,514		5,634		31		148				246,551
Total loans balance	$	25,902	$	102,691	$	99,333	$	5,825	$	15,514	$	5,641	$	31	$	1,499			$	256,436

Loans Individually Evaluated for Impairment

Loans individually evaluated for impairment by class of loans as of and for the nine months ended September 30, 2015:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Income Recognized		Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Other construction	$	—	$	—	$	—	$	1,834	$	—	$	—
1-4 Family residential:
Revolving, open ended		53		53		—		54		2		2
Junior liens		—		—		—		41		—		—
Commercial real estate:
Non-owner occupied		32		32		—		630		2		2
Consumer		4		4		—		5		—		—
Other loans		—		—		—		1,013		—		—
Total with no related allowance recorded		89		89		—		3,577		4		4
With an allowance recorded:
Real estate construction:
Other construction		5		5		—		1,041		—		—
1-4 Family residential:
Revolving, open ended		33		33		33		35		2		2
First Liens		1,980		1,979		79		1,850		79		80
Junior liens		173		173		173		43		4		5
Commercial real estate:
Owner occupied		516		516		51		538		33		24
Non-owner occupied		1,102		1,102		27		691		46		46
Commercial, financial and agricultural
Commercial and industrial		224		224		121		56		12		13
Consumer		—		—		—		1		—		—
Total with an allocated allowance recorded		4,033		4,032		484		4,255		176		170
Total	$	4,122	$	4,121	$	484	$	7,832	$	180	$	174

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the three months ended September 30, 2015:

	Average Recorded Investment		Income Recognized		Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Other construction	$	—	$	—	$	—
1-4 Family residential:
Revolving, open ended		53		—		1
Commercial real estate:
Non-owner occupied		33		1		1
Consumer		5		—		—
Other loans		676		—		—
Total with no related allowance recorded		767		1		2
With an allowance recorded:
Real estate construction:
Other construction		684		—		—
1-4 Family residential:
Revolving, open ended		33		1		1
First Liens		1,984		26		22
Junior liens		87		4		5
Commercial real estate:
Owner occupied		531		17		13
Non-owner occupied		1,105		15		15
Commercial, financial and agricultural
Commercial and industrial		112		12		13
Consumer		—		—		—
Total with an allocated allowance recorded		4,536		75		69
Total	$	5,303	$	76	$	71

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the nine months ended September 30, 2014:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Income Recognized		Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Residential construction	$	—	$	—	$	—	$	821	$	—	$	—
Other construction		7,383		7,280		—		5,959		—		—
1-4 Family residential:
Revolving, open ended		35		35		—		38		2		2
First liens		705		705		—		951		6		6
Junior liens		—		—		—		42		—		—
Commercial real estate:
Owner occupied		—		—		—		353		—		—
Non-owner occupied		3,214		1,258		—		1,523		2		2
Other real estate loans		109		109		—		115		—		—
Commercial, financial and agricultural:
Agricultural		1		—		—		—		—		—
Commercial and industrial		87		24		—		34		3		4
Consumer		8		8		—		5		—		—
Total with no related allowance recorded		11,542		9,419		—		9,841		13		14
With an allowance recorded:
Real estate construction:
Residential construction		—		—		—		925		56		56
Other construction		1,419		1,419		67		2,845		1		1
1-4 Family residential:
Revolving, open ended		38		38		33		95		3		3
First Liens		1,739		1,739		196		2,583		63		60
Commercial real estate:
Owner occupied		545		545		99		734		50		47
Non-owner occupied		—		—		—		604		—		—
Commercial, financial and agricultural:
Commercial and industrial		1,119		1,119		100		372		27		32
Consumer		—		—		—		8		—		—
Other loans		6,227		926		463		1,158		—		—
Total with an allocated allowance recorded		11,087		5,786		958		9,324		200		199
Total	$	22,629	$	15,205	$	958	$	19,165	$	213	$	213

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the three months ended September 30, 2014:

	Average Recorded Investment		Income Recognized			Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Residential construction	$	478	$	—		$	—
Other construction		5,356		—			—
1-4 Family residential:
Revolving, open ended		20		2			2
First liens		777		(1	)		(2	)
Commercial real estate:
Non-owner occupied		1,417		2			2
Other real estate loans		112		—			—
Commercial, financial and agricultural:
Commercial and industrial		68		3			4
Consumer		8		—			—
Total with no related allowance recorded		8,236		6			6
With an allowance recorded:
Real estate construction:
Residential construction		592		(2	)		(2	)
Other construction		3,407		(2	)		(2	)
1-4 Family residential:
Revolving, open ended		53		2			2
First Liens		1,453		32			29
Commercial real estate:
Owner occupied		545		15			12
Non-owner occupied		18		(8	)		(8	)
Commercial, financial and agricultural:
Commercial and industrial		567		27			32
Consumer		5		—			—
Other loans		926		—			—
Total with an allocated allowance recorded		7,566		64			63
Total	$	15,802	$	70		$	69

NOTE 4 – LOANS (Continued)

Loans individually evaluated for impairment by class of loans as of and for the year ended December 31, 2014:

	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated		Average Recorded Investment		Income Recognized		Cash Basis Income Recognized
With no related allowance recorded:
Real estate construction:
Residential construction	$	—	$	—	$	—	$	821	$	—	$	—
Other construction		3,952		3,849		—		5,102		—		—
1-4 Family residential:
Revolving, open ended		54		54		—		42		3		3
First liens		—		—		—		774		6		6
Junior liens		108		108		—		69		—		(1	)
Commercial real estate:
Owner occupied		—		—		—		353		—		—
Non-owner occupied		3,188		1,233		—		1,518		3		3
Other real estate loans		—		—		—		88		—		—
Commercial, financial and agricultural:
Commercial and industrial		—		—		—		28		—		—
Consumer		4		4		—		3		—		—
Other Loans		6,652		1,351		—		676		—		—
Total with no related allowance recorded		13,958		6,599		—		9,474		12		11
With an allowance recorded:
Real estate construction:
Residential construction		—		—		—		925		55		56
Other construction		1,402		1,402		66		2,842		1		1
1-4 Family residential:
Revolving, open ended		37		37		33		94		3		4
First Liens		1,299		1,299		93		2,474		65		69
Commercial real estate:
Owner occupied		545		545		55		734		64		66
Non-owner occupied		—		—		—		604		—		—
Commercial, financial and agricultural:
Commercial and industrial		—		—		—		92		—		—
Consumer		3		3		—		9		—		—
Other loans		—		—		—		926		—		—
Total with an allocated allowance recorded		3,286		3,286		247		8,700		188		196
Total	$	17,244	$	9,885	$	247	$	18,174	$	200	$	207

Loans Modified as Troubled Debt Restructurings

The following table presents loans by class modified as troubled debt restructurings that occurred during the first nine months of 2015 and 2014:

	Number of Contracts		Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
September 30, 2015
Real estate construction:
Other construction		1	$	52	$	52
1-4 Family residential:
Revolving, open ended		1		4		4
First liens		2		1,677		1,677
Commercial real estate:
Owner occupied
Non-owner occupied		1		1,113		1,113
Commercial, financial and agricultural
Commercial and industrial		2		237		237
Total		7	$	3,083	$	3,083
September 30, 2014
1-4 Family residential:
Revolving, open ended		1	$	35	$	35
First liens		1		263		263
Commercial real estate:
Owner occupied		2		545		545
Non-owner occupied		1		35		35
Commercial, financial and agricultural
Commercial and industrial		3		38		38
Total		8	$	916	$	916

Investment in Nonaccrual Loans and Loans Past Due Over 90 Days

The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still accruing by class of loans as of September 30, 2015 and December 31, 2014:

	September 30, 2015				December 31, 2014
	Nonaccrual		Loans past due over90 days still accruing		Nonaccrual		Loans past due over 90 daysstill accruing
Real estate construction:
Other construction	$	—	$	—	$	5,236	$	—
1-4 Family residential:
Revolving, open ended		109		—		78		—
First Liens		153		—		359		—
Junior Liens		173		—		—		—
Commercial real estate:
Farmland		82		—		—		—
Owner occupied		—		—		324		—
Non-owner occupied		—		—		1,199		—
Other real estate loans		—		—		108		—
Consumer		19		—		—		—
Other loans		—		—		1,351		—
Total	$	536	$	—	$	8,655	$	—

Investment in Past Due Loans, Including Nonaccrual Loans

The following table presents the aging of the recorded investment in past due loans, including nonaccrual loans as of September 30, 2015 and December 31, 2014 by class of loans:

	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater than 90Days Past Due		Total Past Due		Loans Not Past Due		Total
September 30, 2015
Real estate construction:
Residential construction	$	—	$	67	$	50	$	117	$	10,479	$	10,596
Other construction		1,065		7		—		1,072		6,778		7,850
1-4 Family residential:
Revolving, open ended		—		—		—		—		16,169		16,169
First Liens		308		253		126		687		83,674		84,361
Junior Liens		—		—		173		173		1,503		1,676
Commercial real estate:
Farmland		94		—		82		176		7,526		7,702
Owner occupied		—		348		—		348		49,303		49,651
Non-owner occupied		—		—		—		—		52,580		52,580
Other real estate secured loans		—		—		—		—		7,095		7,095
Commercial, financial and agricultural:
Agricultural		—		—		—		—		828		828
Commercial and industrial		—		21		—		21		17,950		17,971
Consumer		8		—		—		8		6,626		6,634
Tax exempt		—		—		—		—		14		14
Other loans		—		—		—		—		85		85
Total	$	1,475	$	696	$	431	$	2,602	$	260,610	$	263,212

NOTE 4 – LOANS (Continued)

	30 – 59 Days Past Due		60 – 89 Days Past Due		Greater than 90 Days Past Due		Total Past Due		Loans Not Past Due		Total
December 31, 2014
Real estate construction:
Residential construction	$	—	$	—	$	—	$	—	$	9,382	$	9,382
Other construction		66		8		—		74		16,446		16,520
1-4 Family residential:
Revolving, open ended		4		74		78		156		16,991		17,147
First Liens		1,111		215		359		1,685		81,933		83,618
Junior Liens		—		—		—		—		1,926		1,926
Commercial real estate:
Farmland		—		—		—		—		7,495		7,495
Owner occupied		—		—		—		—		42,383		42,383
Non-owner occupied		72		—		—		72		49,383		49,455
Other real estate secured loans		108		—		—		108		5,717		5,825
Commercial, financial and agricultural:
Agricultural		—		—		—		—		855		855
Commercial and industrial		31		—		—		31		14,628		14,659
Consumer		35		—		—		35		5,606		5,641
Tax exempt		—		—		—		—		31		31
Other loans		—		—		926		926		573		1,499
Total	$	1,427	$	297	$	1,363	$	3,087	$	253,349	$	256,436

Risk Categories of Loans by Class of Loans

As of September 30, 2015 and December 31, 2014, and based on the most recent analysis performed, the risk categories of loans by class of loans are as follows:

	Pass		Watch		Special Mention		Substandard		Doubtful
September 30, 2015
Real estate construction:
Residential construction	$	10,366	$	230	$	—	$	—	$	—
Other construction		6,338		139		7		1,361		—
1-4 Family residential:
Revolving, open ended		15,745		32		—		305		—
First Liens		70,693		10,905		—		783		—
Junior Liens		1,503		—		—		—		—
Commercial real estate:
Farmland		5,739		186		—		1,777		—
Owner occupied		44,123		5,013		—		—		—
Non-owner occupied		49,310		1,199		—		936		—
Other real estate loans		7,095		—		—		—		—
Commercial, financial and agricultural:
Agricultural		818		10		—		—		—
Commercial and industrial		16,206		1,130		—		411		—
Consumer		6,593		4		—		33		—
Tax exempt		14		—		—		—		—
Other loans		85		—		—		—		—
Total	$	234,628	$	18,848	$	7	$	5,606	$	—

	Pass		Watch		Special Mention		Substandard		Doubtful
December 31, 2014
Real estate construction:
Residential construction	$	6,250	$	3,132	$	—	$	—	$	—
Other construction		6,673		3,756		—		840		—
1-4 Family residential:
Revolving, open ended		16,664		32		—		359		—
First Liens		66,655		11,256		—		4,408		—
Junior Liens		1,819		—		—		—		—
Commercial real estate:
Farmland		4,963		905		—		1,626		—
Owner occupied		37,204		4,634		—		—		—
Non-owner occupied		39,867		5,535		—		2,821		—
Other real estate loans		5,825		—		—		—		—
Commercial, financial and agricultural:
Agricultural		786		12		—		56		—
Commercial and industrial		13,626		978		—		56		—
Consumer		5,614		3		—		17		—
Tax exempt		31		—		—		—		—
Other loans		148		—		—		—		—
Total	$	206,125	$	30,243	$	—	$	10,183	$	—

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Regulatory Matters

9 Months Ended

Sep. 30, 2015

Banking And Thrift [Abstract]

Regulatory Matters

NOTE 7 – REGULATORY MATTERS

As a result of improvements in the Bank’s financial condition and results of operations and the Bank’s compliance with the terms thereof, the written agreement that the Bank had entered into with the Tennessee Department of Financial Institutions (the “Department”) on March 14, 2013 was terminated effective October 29, 2014.  In addition, the Federal Deposit Insurance Corporation (“FDIC”) terminated the consent order that was entered into with the Bank on September 20, 2011 (the “Consent Order”), effective November 19, 2014.

In connection with the termination of the written agreement the Bank had entered into with the Department and the Consent Order, the Bank reached an understanding with the FDIC and the Department in the form of a single informal agreement with both agencies that became effective on October 27, 2014.  The informal agreement significantly reduced the restrictions that were placed on the Bank under the Consent Order and the written agreement with the Department.  

As a result of continued improvements in the Bank’s financial condition, the informal agreement was terminated by the FDIC and the Department effective September 29, 2015.  With the termination of the informal agreement, the Bank is no longer subject to any supervisory orders from its primary federal and state regulators.

Bank holding companies with total consolidated assets in excess of $1.0 billion and banks are subject to regulatory capital requirements administered by state and federal banking agencies.  Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off‑balance‑sheet items calculated under regulatory accounting practices.  Capital amounts and classifications are also subject to qualitative judgments by regulators.  Failure to meet minimum capital requirements can initiate regulatory actions that could have a direct material effect on the financial statements.

Prompt corrective action regulations classify banks into one of five capital categories depending on how well they meet their minimum capital requirements.  Although these terms are not used to represent the overall financial condition of a bank, the classifications are:  well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized.  If adequately capitalized or worse, or subject to a written agreement, consent order, or cease and desist order requiring higher minimum capital levels (as the Bank was prior to termination of the Consent Order), regulatory approval would be required for the Bank to accept, renew or rollover brokered deposits.  If a bank is classified as undercapitalized or worse, its capital distributions are restricted, as is its asset growth and expansion, and capital restoration plans are required.  At September 30, 2015, the Bank’s capital ratios were above those levels necessary to be considered “well capitalized” under the regulatory framework for prompt corrective action and all ratios were above those levels required by the informal agreement the Bank has entered into with the FDIC and the Department.  Because the Company’s total assets were less than $1,000,000 at September 30, 2015, the Company is not required to maintain certain capital levels.  Had the Company’s assets exceeded $1,000,000 at that date, the Company’s capital ratios would have been below what is required to be considered “adequately capitalized” under the regulatory framework.  Two of the four capital ratios would have been considered “adequate”; however, the Tier 1 to Average Assets ratio and Common Equity Tier I ratio were below the requirements to be considered “adequate”, which would have prohibited the Company from being “adequately capitalized”.

NOTE 7 – REGULATORY MATTERS (Continued)

Under the terms of the written agreement that the Company has entered into with the Federal Reserve Bank of Atlanta (the “Written Agreement”), the Company agreed to, among other things, take the following actions:

· Take appropriate steps to fully utilize the Company’s financial and managerial resources to serve as a source of strength to the Bank, including taking steps to ensure that the Bank complies with the Consent Order while it remained in effect;

· Submit within 60 days of April 19, 2012 a written plan to maintain sufficient capital at the Company on a consolidated basis, and within 10 days of approval of the plan by the Federal Reserve Bank of Atlanta (the “FRB”), adopt the approved capital plan;

· Submit within 60 days of April 19, 2012 a written statement of the Company’s planned sources and uses of cash for debt service, operating expenses, and other purposes for 2012;

· Provide notice in compliance with applicable federal law and regulations, of any changes in directors or senior executive officer of the Company;

· Comply with applicable federal law and regulations restricting indemnification and severance payments; and

· Provide within 45 days after the end of each calendar quarter, a written progress report detailing the form and manner of all actions taken to secure compliance with the provisions of the Written Agreement.

In addition, under the terms of the Written Agreement, the Company has agreed to, among other things:

· Refrain from declaring or paying any dividends without prior approval of the FRB;

· Not directly or indirectly take dividends or any other form of payment representing a reduction in capital from the Bank without prior approval;

· Not (along with the Company’s non-bank subsidiary) make any distributions of interest, principal, or other sums on subordinated debentures or trust preferred securities without prior approval;

· Not (along with the Company’s non-bank subsidiary) directly or indirectly incur, increase, or guarantee any debt without prior approval; and

· Not directly or indirectly purchase or redeem any shares of its stock without prior approval.

As of September 30, 2015, all of the plans required to be submitted to the FRB have been submitted and approved.  Management believes that the Company is in compliance with the requirements of the Written Agreement as of September 30, 2015.  The Written Agreement remains in effect.

On September 20, 2011, the Bank consented to the issuance of the Consent Order.  The Consent Order, which was terminated effective November 19, 2014 in connection with the Bank’s entering into an informal agreement with the FDIC (which itself was terminated effective September 29, 2015), required the Bank to attain and achieve regulatory capital ratios higher than those required by regulatory standards, improve, among other things, its processes for identifying and classifying problem loans, and improve its overall profitability.  The Consent Order required the Bank to formulate written plans detailing how the Bank would achieve such requirements.  The Bank prepared and submitted all of the plans required by the Consent Order to the FDIC and the FDIC approved those plans as written.  In addition, the terms of the Consent Order required the Bank to provide quarterly progress reports to the FDIC.  For more information regarding the Consent Order, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Liquidity and Capital Resources.”  On March 14, 2013, the Bank entered into a written agreement with the Department, the terms of which were substantially the same as those of the Consent Order, including required minimum levels of capital that the Bank must maintain.  On September 29, 2015, the informal agreement the Bank had entered into with the FDIC and the Department was terminated.  As a result, all supervisory orders that pertain to the Bank have been terminated.

NOTE 7 – REGULATORY MATTERS (Continued)

The Company’s principal source of funds for dividend and/or interest payments is dividends received from the Bank.  Banking regulations limit the amount of dividends that may be paid without prior approval of regulatory agencies.  Under these regulations, the amount of dividends that may be paid by the Bank in any calendar year is limited to the current year’s net income, combined with the retained net income of the preceding two years, subject to the capital requirements described above.  Although the Bank was profitable in each of 2012, 2013, 2014 and the first nine months of 2015, the Bank was prohibited under the terms of the Consent Order with the FDIC and the written agreement with the Department (and, following the termination of the Consent Order and the written agreement with the Department, the informal agreement with the Department and the FDIC) from paying dividends to the Company without prior approval from the FDIC and the Department. With the termination of the informal agreement on September 29, 2015, the Bank is no longer subject to these restrictions.  The Company is also restricted in the types and amounts of dividends it can pay pursuant to the terms of the preferred stock it issued to the U.S. Treasury pursuant to the U.S. Treasury’s Capital Purchase Program under the Troubled Assets Relief Program, and by the terms of the Written Agreement, which prohibits the Company from paying interest or dividends (including interest on the Company’s subordinated debentures and dividends on the Company’s preferred stock) without the FRB’s prior approval.

Following the termination of the informal agreement the Bank had entered into with the FDIC and Department, the Bank is no longer subject to restrictions from the Department on its ability to pay dividends to the Company (other than the restrictions under applicable Tennessee law limiting the amount of dividends a bank incorporated under the laws of the state of Tennessee may pay to its shareholders to the current year’s net income and any retained net income for the prior two years).  However, for so long as the Bank has negative retained earnings, as it did at September 30, 2015, the Bank must receive the prior approval of the FDIC before it may pay a dividend to the Company.  At September 30, 2015, with the approval of the FDIC, the Bank could dividend up to $10,262 to the Company, without the consent of the Commissioner of the Department.

NOTE 7 – REGULATORY MATTERS (Continued)

Banks and bank holding companies with total assets inexcess of $1,000,000 are subject to various regulatory capital requirements administered by State and Federal banking agencies.  The Company’s and the Bank’s capital amounts and ratios at September 30, 2015 and December 31, 2014, were as follows:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Applicable Regulatory Provisions (1)					Required by terms of Regulatory Agreement (2)
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2015
Total Capital to risk weighted assets
Community First Bank & Trust	$	50,013		17.02	%	$	23,505		8.00	%	$	29,381		10.00	%	$	35,257		12.00	%
Consolidated		32,657		11.08	%		23,583		8.00	%		29,478		10.00	%	N/A		N/A
Common Equity Tier 1 Capital to risk    weighted assets
Community First Bank & Trust	$	46,332		15.77	%	$	13,222		4.50	%	$	19,098		6.50	%	N/A		N/A
Consolidated	N/A		N/A			N/A		N/A			N/A		N/A			N/A		N/A
Tier 1 Capital to risk weighted assets
Community First Bank & Trust	$	46,332		15.77	%	$	17,629		6.00	%	$	23,505		8.00	%	$	29,381		10.00	%
Consolidated		19,309		6.55	%		11,791		4.00	%		17,687		6.00	%	N/A		N/A
Tier 1 Capital to average assets
Community First Bank & Trust	$	46,332		10.17	%	$	18,229		4.00	%	$	22,786		5.00	%	$	38,736		8.50	%
Consolidated		19,309		4.22	%		18,320		4.00	%	N/A		N/A			N/A		N/A
December 31, 2014
Total Capital to risk weighted assets
Community First Bank & Trust	$	44,173		16.32	%	$	21,654		8.00	%	$	27,068		10.00	%	$	32,481		12.00	%
Consolidated		26,624		9.83	%		21,668		8.00	%		27,086		10.00	%	N/A		N/A
Tier 1 Capital to risk weighted assets
Community First Bank & Trust	$	40,768		15.06	%	$	10,827		4.00	%	$	16,241		6.00	%	$	27,068		10.00	%
Consolidated		15,477		5.71	%		10,834		4.00	%		16,251		6.00	%	N/A		N/A
Tier 1 Capital to average assets
Community First Bank & Trust	$	40,768		9.32	%	$	17,490		4.00	%	$	21,862		5.00	%	$	34,979		8.50	%
Consolidated		15,477		3.52	%		17,586		4.00	%	N/A		N/A			N/A		N/A

(1) Because the Company’s total assets were less than $1,000,000 at September 30, 2015, the Company was not, at that date, subject to capital level requirements at that level.

(2) Reflects minimum capital ratios required by the informal agreement the Bank entered into with the FDIC and the Department on October 27, 2014.  The informal agreement was terminated on September 29, 2015.

The Bank’s capital ratios at September 30, 2015 were above those levels necessary to be considered “well capitalized” under the regulatory framework for prompt corrective action.

Because the Company’s total assets were less than $1,000,000 at September 30, 2015, the Company is not required to meet certain capital level requirements.  Had the Company’s assets exceeded $1,000,000 at that date, the Company’s capital levels at September 30, 2015 would have been considered below those required to be considered “adequately capitalized” under applicable regulations because only two of the four capital ratios were above the levels necessary to be considered “adequate”. The Company’s Tier 1 to Average Assets ratio and Common Equity Tier I ratio were below the requirements to be considered “adequate”, which would have prohibited the Company from being considered “adequately capitalized”.

NOTE 7 – REGULATORY MATTERS (Continued)

In July 2013, the Federal banking regulators, in response to the statutory requirements of The Dodd-Frank Wall Street Reform and Consumer Protection Act, adopted new regulations implementing the Basel Capital Adequacy Accord (“Basel III”) and the related minimum capital ratios. The new capital requirements which were effective January 1, 2015 and apply to banks and bank holding companies with in excess of $1,000,000 in assets,  include a new “Common Equity Tier 1 Ratio”, which has stricter rules as to what qualifies as Common Equity Tier 1 Capital.  A summary of the changes to the regulatory capital ratios are as follows:

	Guideline in Effect At December 31, 2014						Basel III Requirements
	Adequately Capitalized			Well Capitalized			Adequately Capitalized			Well Capitalized
Common Equity Tier 1 Ratio (Common Equity to Risk    Weighted Assets)	Not Applicable			Not Applicable				4.5	%		6.5	%
Tier 1 Capital to Risk Weighted Assets		4	%		6	%		6	%		8	%
Total Capital to Risk Weighted Assets		8	%		10	%		8	%		10	%
Tier 1 Leverage Ratio		4	%		5	%		4	%		5	%

The guidelines under Basel III also establish a 2.5% capital conservation buffer requirement that is phased in over three years beginning January 1, 2016. The buffer is related to risk weighted assets. The Basel III minimum requirements for capital adequacy after giving effect to the buffer are as follows:

	2016			2017			2018			2019
Common Equity Tier 1 Ratio		5.125	%		5.75	%		6.375	%		7.0	%
Tier 1 Capital to Risk-Weighted Assets Ratio		6.625	%		7.25	%		7.875	%		8.5	%
Total Capital to Risk-Weighted Assets Ratio		8.625	%		9.25	%		9.875	%		10.5	%

As described above, because the Company’s total assets are less than $1,000,000, the Company will not be required to comply with these new capital guidelines required under Basel III until its total assets exceed $1,000,000.

In order to avoid limitations on capital distributions such as dividends and certain discretionary bonus payments to executive officers, a banking organization must maintain capital ratios above the minimum ratios including the buffer. The requirements of Basel III also place additional restrictions on the inclusion of deferred tax assets and capitalized mortgage servicing rights as a percentage of Tier 1 Capital. In addition, the risk weights assigned to certain assets such as past due loans and certain real estate loans have been increased. The requirements of Basel III allowed banks and bank holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation.  The Company and the Bank have opted out of this requirement.

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Income Per Share

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Income Per Share

NOTE 5 - INCOME PER SHARE

In accordance with ASC 260-10, Earnings Per Share, basic income per share available to common shareholders is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period.  Diluted income per share available to common shareholders reflects the potential dilution that could occur if securities, stock options or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income of the Company.  The factors used in the income per share computation follow:

	Nine months ended September 30,						Three months ended September 30,
	2015			2014			2015			2014
Basic
Net income	$	4,219		$	1,824		$	1,778		$	232
Less: Earnings allocated to preferred stock		(1,936	)		(1,147	)		(1,102	)		(424	)
Less: Accretion of preferred stock discount		—			(33	)		—			—
Net Income available to common stock	$	2,283		$	644		$	676		$	(192	)
Weighted average common shares		3,275,204			3,274,844			3,275,421			3,274,876
Basic net income per share	$	0.70		$	0.20		$	0.21		$	(0.06	)
Diluted
Net income available to common stock	$	2,283		$	644		$	676		$	(192	)
Weighted average common shares		3,275,204			3,274,844			3,275,421			3,274,876
Add: Dilutive effects of assumed exercises of stock    options		—			—			—			—
Average common shares and dilutive potential common    shares outstanding		3,275,204			3,274,844			3,275,421			3,274,876
Diluted net income per share	$	0.70		$	0.20		$	0.21		$	(0.06	)

At September 30, 2015 and 2014, respectively, stock options for 42,400 and 55,100 shares of common stock were not considered in computing diluted net income per share for the nine-month and three-month periods ended September 30, 2015 and 2014 because they were antidilutive.

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Income Taxes

9 Months Ended

Sep. 30, 2015

Income Tax Disclosure [Abstract]

Income Taxes

NOTE 6 - INCOME TAXES

The Company recorded no tax expense during the first nine months of 2015.  During 2010, the Company established a valuation allowance against all of its deferred tax assets and has maintained that valuation allowance through the first nine months of 2015.  The Company intends to maintain this valuation allowance until it determines it is more likely than not that the asset can be realized through current and future taxable income.  Because the Company has recorded a valuation allowance against its deferred tax assets, any deferred tax benefit or expense will be offset by a corresponding increase or decrease, respectively, to the valuation allowance.  Until the reversal of the deferred tax valuation allowance, tax benefit or expense from current year operations is expected to be minimal.

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Organization and Basis of Presentation (Policies)

9 Months Ended

Sep. 30, 2015

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Allowance for Loan Losses

Allowance for Loan Losses:  Credit risk is inherent in the business of extending loans to borrowers.  This credit risk is addressed through a valuation allowance for probable incurred credit losses.  Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed.  Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required using past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions, and other factors.  Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged off.

The allowance consists of specific and general components.  The specific component relates to loans that are individually classified as impaired.

A loan is identified as impaired when, based on current information and events, it is probable that the scheduled payments of principal or interest will not be collected when due according to the contractual terms of the loan agreement.  However, some loans are termed impaired because of doubt regarding collectability of interest and principal according to the contractual terms, even though such loans are both fully secured by collateral and current in their interest and principal payments.  Additionally, loans are considered troubled debt restructurings and classified as impaired if their terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties.

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION (Continued)

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

All loans over $150 that are unlikely to collect under existing terms are individually evaluated for impairment.  If a loan is impaired, a portion of the allowance is allocated so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral.  Large groups of smaller balance homogeneous loans, such as consumer and residential real estate loans, are collectively evaluated for impairment, and accordingly, they are not separately identified for impairment disclosures.

Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective rate at inception.  If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral.  For troubled debt restructurings that subsequently default, the Company determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

The general component of the allowance covers loans collectively evaluated for impairment and is based on historical loss experience adjusted for current factors.  The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent three years.  This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment.  These economic factors include consideration of the following:  levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations.  The following loan portfolio segments have been identified with a discussion of the risk characteristics of these portfolio segments:

Real Estate Construction loans consist of loans made for both residential and commercial construction and land development.  Residential real estate construction loans are loans secured by real estate to build 1-4 family dwellings.  These are loans made to borrowers obtaining loans in their personal name for the personal construction of their own dwellings or loans to builders for the purpose of constructing homes for resale.  These loans to builders can be for speculative homes for which there is no specific homeowner for which the home is being built, as well as loans to builders that have a pre-sale contract to another individual.

Commercial Construction loans are loans extended to borrowers secured by and to build commercial structures such as churches, retail strip centers, industrial warehouses or office buildings.  Land development loans are granted to commercial borrowers to finance the improvement of real estate by adding infrastructure so that ensuing construction can take place.  Construction and land development loans are generally short term in maturity to match the expected completion of a particular project.  These loan types are generally more vulnerable to changes in economic conditions in that they project there will be a demand for the product.  They require monitoring to ensure the project is progressing in a timely manner within the expected budgeted amount.  This monitoring is accomplished via periodic physical inspections by an outside third party.

1-4 Family Residential loans consist of both open end and closed end loans secured by first or junior liens on 1-4 family improved residential dwellings.  Open end loans are Home Equity Lines of Credit that allow the borrower to use equity in the real estate to borrow and repay as the need arises.  First and junior lien residential real estate loans are closed end loans with a specific maturity that generally does not exceed 7 years.  Economic conditions can affect the borrower’s ability to repay the loans, and the value of the real estate securing the loans can change over the life of the loan.

Commercial Real Estate loans consist of loans secured by farmland or by improved commercial property.  Farmland includes all land known to be used or usable for agricultural purposes, such as crop and livestock production, grazing, or pasture land.  Improved commercial property can be owner occupied or non-owner occupied property secured by commercial structures such as churches, retail strip centers, hotels, industrial warehouses or office buildings.  The repayment of these loans tends to depend upon the operation and management of a business or lease income from a business, and therefore adverse economic conditions can affect the ability to repay.

NOTE 1 – ORGANIZATION AND BASIS OF PRESENTATION (Continued)

Other Real Estate Secured loans consist of loans secured by five or more multi-family dwelling units.  These loans are typically exemplified by apartment buildings or complexes.  The ability to manage and rent units affects the income that usually provides repayment for this type of loan.

Commercial, Financial, and Agricultural loans consist of loans extended for the operation of a business or a farm.  They are not secured by real estate.  Commercial loans are used to provide working capital, acquire inventory, finance the carrying of receivables, purchase equipment or vehicles, or purchase other capital assets. Agricultural loans are typically for purposes such as planting crops, acquiring livestock, or purchasing farm equipment.  The repayment of these loans comes from the cash flow of a business or farm and is generated by sales of inventory or providing of services.  The collateral tends to depreciate over time and is difficult to monitor.  Frequent statements are required from the borrower pertaining to inventory levels or receivables aging.

Consumer loans consist largely of loans extended to individuals for purposes such as to purchase a vehicle or other consumer goods. These loans are not secured by real estate but are frequently collateralized by the consumer items being acquired with the loan proceeds.  This type of collateral tends to depreciate, and therefore the term of the loan is tailored to fit the expected value of the collateral as it depreciates, along with specific underwriting policies and guidelines.

Tax Exempt loans consist of loans that are extended to entities such as municipalities.  These loans tend to be dependent on the ability of the borrowing entity to continue to collect taxes to repay the indebtedness.

Other loans consist of those loans which are not elsewhere classified in these categories and are not secured by real estate.

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Fair Value - Carrying Amount and Estimated Fair Values of Significant Financial Instruments (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014	Sep. 30, 2014	Dec. 31, 2013
Financial assets
Cash and cash equivalents, carrying amount	$ 30,304	$ 38,256	$ 31,753	$ 49,036
Time deposits in other financial institutions	22,414	22,177
Fair Value	112,072	91,440
Loans, net of allowance, carrying amount	258,858	251,265
Restricted equity securities, carrying amount	1,727	1,727
Accrued interest receivable	1,138	1,034
Financial liabilities
Accrued interest payable	5,760	4,921
Subordinated debentures, carrying amount	23,000	23,000
Carrying Value [Member]
Financial assets
Cash and cash equivalents, carrying amount	30,304	38,256
Time deposits in other financial institutions	22,414	22,177
Fair Value	112,072	91,440
Loans held for sale		106
Loans, net of allowance, carrying amount	258,858	251,265
Restricted equity securities, carrying amount	1,727	1,727
Accrued interest receivable	1,138	1,034
Financial liabilities
Deposits with stated maturities, carrying amount	205,372	208,386
Deposits without stated maturities, carrying amount	203,409	189,694
Accrued interest payable	5,760	4,921
Subordinated debentures, carrying amount	23,000	23,000
Total Fair Value Measurement [Member]
Financial assets
Cash and cash equivalents, fair value	30,304	38,256
Time deposits in other financial institutions	22,376	21,999
Fair Value	112,072	91,440
Loans held for sale		106
Loans, net of allowance, fair value	252,556	246,506
Accrued interest receivable	1,138	1,034
Financial liabilities
Deposits with stated maturities, fair value	206,334	209,376
Deposits without stated maturities, fair value	203,409	189,694
Accrued interest payable	5,760	4,921
Subordinated debentures, fair value	13,000	11,500
Level 1 [Member]
Financial assets
Cash and cash equivalents, fair value	30,304	38,256
Accrued interest receivable	26	21
Financial liabilities
Deposits without stated maturities, fair value	203,409	189,694
Accrued interest payable	2	1
Level 2 [Member]
Financial assets
Time deposits in other financial institutions	22,376	21,999
Fair Value	111,970	91,337
Loans held for sale		106
Accrued interest receivable	315	269
Financial liabilities
Deposits with stated maturities, fair value	206,334	209,376
Accrued interest payable	483	400
Level 3 [Member]
Financial assets
Fair Value	102	103
Loans, net of allowance, fair value	252,556	246,506
Accrued interest receivable	797	744
Financial liabilities
Accrued interest payable	5,275	4,520
Subordinated debentures, fair value	$ 13,000	$ 11,500

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Regulatory Matters - Company's and Bank's Capital Amounts and Ratios (Parenthetical) (Detail) - USD ($)	Sep. 30, 2015	Jul. 31, 2013
Resale Agreement Counterparty [Line Items]
Total consolidated assets	$ 1,000,000,000
Maximum [Member]
Resale Agreement Counterparty [Line Items]
Total consolidated assets	$ 1,000,000,000	$ 1,000,000,000

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Regulatory Matters (Tables)

9 Months Ended

Sep. 30, 2015

Company's and Bank's Capital Amounts and Ratios

.  The Company’s and the Bank’s capital amounts and ratios at September 30, 2015 and December 31, 2014, were as follows:

	Actual					For Capital Adequacy Purposes					To Be Well Capitalized Under Applicable Regulatory Provisions (1)					Required by terms of Regulatory Agreement (2)
	Amount		Ratio			Amount		Ratio			Amount		Ratio			Amount		Ratio
September 30, 2015
Total Capital to risk weighted assets
Community First Bank & Trust	$	50,013		17.02	%	$	23,505		8.00	%	$	29,381		10.00	%	$	35,257		12.00	%
Consolidated		32,657		11.08	%		23,583		8.00	%		29,478		10.00	%	N/A		N/A
Common Equity Tier 1 Capital to risk    weighted assets
Community First Bank & Trust	$	46,332		15.77	%	$	13,222		4.50	%	$	19,098		6.50	%	N/A		N/A
Consolidated	N/A		N/A			N/A		N/A			N/A		N/A			N/A		N/A
Tier 1 Capital to risk weighted assets
Community First Bank & Trust	$	46,332		15.77	%	$	17,629		6.00	%	$	23,505		8.00	%	$	29,381		10.00	%
Consolidated		19,309		6.55	%		11,791		4.00	%		17,687		6.00	%	N/A		N/A
Tier 1 Capital to average assets
Community First Bank & Trust	$	46,332		10.17	%	$	18,229		4.00	%	$	22,786		5.00	%	$	38,736		8.50	%
Consolidated		19,309		4.22	%		18,320		4.00	%	N/A		N/A			N/A		N/A
December 31, 2014
Total Capital to risk weighted assets
Community First Bank & Trust	$	44,173		16.32	%	$	21,654		8.00	%	$	27,068		10.00	%	$	32,481		12.00	%
Consolidated		26,624		9.83	%		21,668		8.00	%		27,086		10.00	%	N/A		N/A
Tier 1 Capital to risk weighted assets
Community First Bank & Trust	$	40,768		15.06	%	$	10,827		4.00	%	$	16,241		6.00	%	$	27,068		10.00	%
Consolidated		15,477		5.71	%		10,834		4.00	%		16,251		6.00	%	N/A		N/A
Tier 1 Capital to average assets
Community First Bank & Trust	$	40,768		9.32	%	$	17,490		4.00	%	$	21,862		5.00	%	$	34,979		8.50	%
Consolidated		15,477		3.52	%		17,586		4.00	%	N/A		N/A			N/A		N/A

(1) Because the Company’s total assets were less than $1,000,000 at September 30, 2015, the Company was not, at that date, subject to capital level requirements at that level.

(2) Reflects minimum capital ratios required by the informal agreement the Bank entered into with the FDIC and the Department on October 27, 2014.  The informal agreement was terminated on September 29, 2015.

Summary of Base1 III Minimum Requirements After Giving Effect to the Buffer

The Basel III minimum requirements for capital adequacy after giving effect to the buffer are as follows

	2016			2017			2018			2019
Common Equity Tier 1 Ratio		5.125	%		5.75	%		6.375	%		7.0	%
Tier 1 Capital to Risk-Weighted Assets Ratio		6.625	%		7.25	%		7.875	%		8.5	%
Total Capital to Risk-Weighted Assets Ratio		8.625	%		9.25	%		9.875	%		10.5	%

Bank Regulatory Capital [Member]

Company's and Bank's Capital Amounts and Ratios

A summary of the changes to the regulatory capital ratios are as follows

	Guideline in Effect At December 31, 2014						Basel III Requirements
	Adequately Capitalized			Well Capitalized			Adequately Capitalized			Well Capitalized
Common Equity Tier 1 Ratio (Common Equity to Risk    Weighted Assets)	Not Applicable			Not Applicable				4.5	%		6.5	%
Tier 1 Capital to Risk Weighted Assets		4	%		6	%		6	%		8	%
Total Capital to Risk Weighted Assets		8	%		10	%		8	%		10	%
Tier 1 Leverage Ratio		4	%		5	%		4	%		5	%

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Securities Available for Sale - Additional Information (Detail) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2015 USD ($) Segment Security	Dec. 31, 2014 USD ($)
Schedule Of Available For Sale Securities [Line Items]
Securities pledged to secure public deposits | $	$ 48,190	$ 41,829
Number of security portfolio segments | Segment	2
Number of portfolio securities	96
Securities from portfolio in an unrealized loss position	21
U.S. Government Sponsored Entities [Member]
Schedule Of Available For Sale Securities [Line Items]
Minimum percentage of held securities issued by entity	10.00%	10.00%

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Regulatory Matters - Summary of Changes to the Regulatory Capital Ratios (Detail)	Dec. 31, 2014
Guideline in Effect [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Tier 1 Capital to Risk Weighted Assets, Adequately Capitalized	4.00%
Total Capital to Risk Weighted Assets, Adequately Capitalized	8.00%
Tier 1 Leverage Ratio, Adequately Capitalized	4.00%
Tier 1 Capital to Risk Weighted Assets, Well Capitalized	6.00%
Total Capital to Risk Weighted Assets, Well Capitalized	10.00%
Tier 1 Leverage Ratio, Well Capitalized	5.00%
Basel lll Requirements [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Common Equity Tier 1 Ratio (Common Equity to Risk Weighted Assets), Adequately Capitalized	4.50%
Tier 1 Capital to Risk Weighted Assets, Adequately Capitalized	6.00%
Total Capital to Risk Weighted Assets, Adequately Capitalized	8.00%
Tier 1 Leverage Ratio, Adequately Capitalized	4.00%
Common Equity Tier 1 Ratio (Common Equity to Risk Weighted Assets), Well Capitalized	6.50%
Tier 1 Capital to Risk Weighted Assets, Well Capitalized	8.00%
Total Capital to Risk Weighted Assets, Well Capitalized	10.00%
Tier 1 Leverage Ratio, Well Capitalized	5.00%

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Loans - Investment in Nonaccrual Loans and Loans Past Due Over 90 Days (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	$ 536	$ 8,655
Other Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual		5,236
Revolving, Open Ended [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	109	78
First Liens [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	153	359
Junior Liens [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	173
Farmland [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	82
Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual		324
Non-Owner Occupied [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual		1,199
Other Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual		108
Consumer [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual	$ 19
Other Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual		$ 1,351

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Consolidated Statements of Operations and Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Income Statement [Abstract]
Reclassification adjustment for realized gains (loss) included in net income, income tax	$ 0	$ 0	$ 0	$ 0
Unrealized (losses) gains on securities, income taxes	$ 0	$ 0	$ 0	$ 0

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Securities Available for Sale

9 Months Ended

Sep. 30, 2015

Investments Debt And Equity Securities [Abstract]

Securities Available for Sale

NOTE 2 - SECURITIES AVAILABLE FOR SALE

The following table summarizes the amortized cost and fair value of the available for sale securities portfolio at September 30, 2015 and December 31, 2014 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss), net of applicable income taxes:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2015
U.S. Government sponsored entities	$	6,870	$	4	$	(12	)	$	6,862
Mortgage-backed (residential)		101,910		537		(121	)		102,326
State and municipal		2,843		41		—			2,884
Total	$	111,623	$	582	$	(133	)	$	112,072
December 31, 2014
U.S. Government sponsored entities	$	15,618	$	—	$	(266	)	$	15,352
Mortgage-backed (residential)		73,576		530		(92	)		74,014
State and municipal		2,012		62		—			2,074
Total	$	91,206	$	592	$	(358	)	$	91,440

The proceeds from sales of securities and the associated gains and losses are listed below:

	Nine months ended September 30,						Three months ended September 30,
	2015			2014			2015			2014
Proceeds	$	14,613		$	24,587		$	10,953		$	12,825
Gross gains		80			376			59			271
Gross losses		(75	)		(163	)		(55	)		(98	)

NOTE 2 - SECURITIES AVAILABLE FOR SALE (Continued)

The amortized cost and fair value of the securities portfolio are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.  Mortgage backed securities are presented separately due to varying maturity dates as a result of prepayments.

	September 30, 2015
	Amortized Cost		Fair Value
Due in one year or less	$	340	$	344
Due after one through five years		5,888		5,900
Due after five through ten years		2,401		2,403
Due after ten years		1,084		1,099
Mortgage backed (residential)		101,910		102,326
Total	$	111,623	$	112,072

At September 30, 2015 and December 31, 2014, respectively, securities totaling $48,190 and $41,829 were pledged to secure public deposits.

The Company did not hold securities of any one issuer, other than U.S. Government sponsored entities, with a face amount greater than 10% of shareholders’ equity as of September 30, 2015 or December 31, 2014.

The following table summarizes securities with unrealized losses at September 30, 2015 and December 31, 2014 aggregated by major security type and length of time in a continuous unrealized loss position:

September 30, 2015	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
U.S. Government sponsored entities	$	1,872	$	(3	)	$	2,488	$	(9	)	$	4,360	$	(12	)
Mortgage-backed (residential)		27,620		(105	)		4,822		(16	)		32,442		(121	)
Total temporarily impaired	$	29,492	$	(108	)	$	7,310	$	(25	)	$	36,802	$	(133	)

December 31, 2014	Less than 12 Months					12 Months or More					Total
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
Description of Securities	Value		Loss			Value		Loss			Value		Loss
U.S. Government sponsored entities	$	246	$	(4	)	$	15,106	$	(262	)	$	15,352	$	(266	)
Mortgage-backed (residential)		6,869		(26	)		6,963		(66	)		13,832		(92	)
Total temporarily impaired	$	7,115	$	(30	)	$	22,069	$	(328	)	$	29,184	$	(358	)

NOTE 2 - SECURITIES AVAILABLE FOR SALE (Continued)

Other-Than-Temporary Impairment

Management evaluates securities for other-than-temporary impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments – securities in a loss position for less than 12 months and securities in a loss position for 12 months or more – and applying the appropriate OTTI model.  Securities classified as available for sale are generally evaluated for OTTI under the provisions of ASC 320-10, Investments - Debt and Equity Securities. In determining OTTI, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the Company has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery.  The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time.

When OTTI occurs, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss. If an entity intends to sell or it is more likely than not it will be required to sell the security before recovery of its amortized cost basis, less any current-period credit loss, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. If an entity does not intend to sell the security and it is not more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis less any current-period loss, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors. The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings. The amount of the total OTTI related to other factors is recognized in other comprehensive income, net of applicable taxes. The previous amortized cost basis less the OTTI recognized in accumulated other comprehensive income becomes the new amortized cost basis of the investment.

As of September 30, 2015, the Company’s securities portfolio consisted of 96 securities, 21 of which were in an unrealized loss position. Because the decline in fair value is attributable to changes in interest rates and illiquidity, and not credit quality, and because the Company did not have at September 30, 2015 the intent to sell these securities and at that date it was likely that it would not be required to sell the securities before their anticipated recovery, the Company did not consider these securities to be other-than-temporarily impaired at September 30, 2015.

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Securities Available for Sale - Securities with Unrealized Losses (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Schedule Of Available For Sale Securities [Line Items]
Fair value Less than 12 Months	$ 29,492	$ 7,115
Fair value more than 12 Months	7,310	22,069
Fair value Total	36,802	29,184
Unrealized loss Less than 12 Months	(108)	(30)
Unrealized loss more than 12 Months	(25)	(328)
Unrealized loss Total	(133)	(358)
U.S. Government Sponsored Entities [Member]
Schedule Of Available For Sale Securities [Line Items]
Fair value Less than 12 Months	1,872	246
Fair value more than 12 Months	2,488	15,106
Fair value Total	4,360	15,352
Unrealized loss Less than 12 Months	(3)	(4)
Unrealized loss more than 12 Months	(9)	(262)
Unrealized loss Total	(12)	(266)
Mortgage-Backed (Residential) [Member]
Schedule Of Available For Sale Securities [Line Items]
Fair value Less than 12 Months	27,620	6,869
Fair value more than 12 Months	4,822	6,963
Fair value Total	32,442	13,832
Unrealized loss Less than 12 Months	(105)	(26)
Unrealized loss more than 12 Months	(16)	(66)
Unrealized loss Total	$ (121)	$ (92)

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Loans - Allowance for Loan Losses and Outstanding Loan Balance by Portfolio Segment 2 (Detail) - USD ($) $ in Thousands	Sep. 30, 2015	Dec. 31, 2014
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment, Ending allowance balance attributable to loans	$ 484	$ 247
Collectively evaluated for impairment, Ending allowance balance attributable to loans	3,870	4,924
Total ending allowance balance	4,354	5,171
Real Estate Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment, Ending allowance balance attributable to loans		66
Collectively evaluated for impairment, Ending allowance balance attributable to loans	698	826
Total ending allowance balance	698	892
Residential Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment, Ending allowance balance attributable to loans	285	126
Collectively evaluated for impairment, Ending allowance balance attributable to loans	1,612	2,206
Total ending allowance balance	1,897	2,332
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment, Ending allowance balance attributable to loans	78	55
Collectively evaluated for impairment, Ending allowance balance attributable to loans	612	939
Total ending allowance balance	690	994
Other Real Estate Secured Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment, Ending allowance balance attributable to loans	12	22
Total ending allowance balance	12	22
Commercial, Financial and Agricultural [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Individually evaluated for impairment, Ending allowance balance attributable to loans	121
Collectively evaluated for impairment, Ending allowance balance attributable to loans	498	399
Total ending allowance balance	619	399
Consumer Portfolio Segment [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment, Ending allowance balance attributable to loans	18	22
Total ending allowance balance	18	22
Tax Exempt [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total ending allowance balance	0
Other Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Total ending allowance balance	0
Unallocated [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Collectively evaluated for impairment, Ending allowance balance attributable to loans	420	510
Total ending allowance balance	$ 420	$ 510

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Income Per Share (Tables)

9 Months Ended

Sep. 30, 2015

Earnings Per Share [Abstract]

Income Per Share Computation

The factors used in the income per share computation follow:

	Nine months ended September 30,						Three months ended September 30,
	2015			2014			2015			2014
Basic
Net income	$	4,219		$	1,824		$	1,778		$	232
Less: Earnings allocated to preferred stock		(1,936	)		(1,147	)		(1,102	)		(424	)
Less: Accretion of preferred stock discount		—			(33	)		—			—
Net Income available to common stock	$	2,283		$	644		$	676		$	(192	)
Weighted average common shares		3,275,204			3,274,844			3,275,421			3,274,876
Basic net income per share	$	0.70		$	0.20		$	0.21		$	(0.06	)
Diluted
Net income available to common stock	$	2,283		$	644		$	676		$	(192	)
Weighted average common shares		3,275,204			3,274,844			3,275,421			3,274,876
Add: Dilutive effects of assumed exercises of stock    options		—			—			—			—
Average common shares and dilutive potential common    shares outstanding		3,275,204			3,274,844			3,275,421			3,274,876
Diluted net income per share	$	0.70		$	0.20		$	0.21		$	(0.06	)