
	December 31, 2019		December 31, 2018
Loans
Construction and land development	$	591,541	$	584,440
Commercial real estate:
Nonfarm, nonresidential	944,021		754,243
Other	49,891		51,017
Residential real estate:
Closed-end 1-4 family	455,920		493,065
Other	187,681		189,817
Commercial and industrial	582,641		596,793
Consumer and other	4,769		5,568
Loans before net deferred loan fees	2,816,464		2,674,943
Deferred loan fees, net	(4,020)		(2,544)
Total loans	2,812,444		2,672,399
Allowance for loan losses	(45,436)		(23,451)
Total loans, net of allowance for loan losses	$	2,767,008	$	2,648,948


	Construction and Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
December 31, 2019
Allowance for loan losses:
Beginning balance	$	4,743	$	6,725	$	4,743	$	7,166	$	74	$	23,451
Provision for loan losses	172		1,388		(281)		30,732		36		32,047
Loans charged-off	(68)		—		(15)		(10,227)		(147)		(10,457)
Recoveries	—		—		15		286		94		395
Total ending allowance balance	$	4,847	$	8,113	$	4,462	$	27,957	$	57	$	45,436


	Construction and Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
December 31, 2018
Allowance for loan losses:
Beginning balance	$	3,802	$	5,981	$	3,834	$	7,587	$	43	$	21,247
Provision for loan losses	978		744		872		(383)		43		2,254
Loans charged-off	(38)		—		(7)		(49)		(27)		(121)
Recoveries	1		—		44		11		15		71
Total ending allowance balance	$	4,743	$	6,725	$	4,743	$	7,166	$	74	$	23,451


	Construction and Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
December 31, 2017
Allowance for loan losses:
Beginning balance	$	3,776	$	4,266	$	2,398	$	6,068	$	45	$	16,553
Provision for loan losses	(642)		1,715		1,387		1,823		30		4,313
Loans charged-off	—		—		(1)		(310)		(49)		(360)
Recoveries	668		—		50		6		17		741
Total ending allowance balance	$	3,802	$	5,981	$	3,834	$	7,587	$	43	$	21,247

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2019 and 2018. Purchased and PCI loans are also included in the table. For purposes of this disclosure, recorded investment in loans excludes accrued interest receivable and loan fees, net due to immateriality.


	Construction and Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
December 31, 2019
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	17	$	20,754	$	—	$	20,771
Collectively evaluated for impairment	4,847		8,113		4,445		7,203		57		24,665
Total ending allowance balance	$	4,847	$	8,113	$	4,462	$	27,957	$	57	$	45,436
Loans:
Individually evaluated for impairment	$	30	$	—	$	2,477	$	24,528	$	—	$	27,035
Collectively evaluated for impairment	591,511		993,912		641,124		558,113		4,769		2,789,429
Total ending loans balance	$	591,541	$	993,912	$	643,601	$	582,641	$	4,769	$	2,816,464


	Construction and Land Development		Commercial Real Estate		Residential Real Estate		Commercial and Industrial		Consumer and Other		Total
December 31, 2018
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	—	$	—	$	17	$	—	$	17
Collectively evaluated for impairment	4,743		6,725		4,743		7,149		74		23,434
Total ending allowance balance	$	4,743	$	6,725	$	4,743	$	7,166	$	74	$	23,451
Loans:
Individually evaluated for impairment	$	2,298	$	—	$	3,189	$	167	$	—	$	5,654
Collectively evaluated for impairment	582,142		805,260		679,693		596,626		5,568		2,669,289
Total ending loans balance	$	584,440	$	805,260	$	682,882	$	596,793	$	5,568	$	2,674,943

Loans collectively evaluated for impairment reported at December 31, 2019 include certain loans acquired from MidSouth and Civic. The acquired loans were recorded at estimated fair value at date of acquisition, which included estimated credit and interest rate discount components. As of December 31, 2019, these non-PCI loans had a carrying value of $58,745, comprised of contractually unpaid principal totaling $59,471 and discounts totaling $726. Management evaluated these loans for credit deterioration since acquisition and determined that a $77 allowance for loan losses was necessary at December 31, 2019.


	Unpaid Principal Balance		Recorded Investment		Allowance for Loan Losses Allocated
December 31, 2019
With no allowance recorded:
Construction and land development	$	30	$	30	$	—
Residential real estate:
Closed-end 1-4 family	319		311		—
Other	1,523		1,523		—
Commercial and industrial	11		11		—
Subtotal	1,883		1,875		—
With an allowance recorded:
Residential real estate:
Closed-end 1-4 family	643		643		17
Commercial and industrial	24,517		24,517		20,754
Subtotal	25,160		25,160		20,771
Total	$	27,043	$	27,035	$	20,771
December 31, 2018
With no allowance recorded:
Construction and land development	$	2,298	$	2,298	$	—
Residential real estate:
Closed-end 1-4 family	1,280		1,272		—
Other	1,917		1,917		—
Subtotal	5,495		5,487		—
With an allowance recorded:
Commercial and industrial	167		167		17
Subtotal	167		167		17
Total	$	5,662	$	5,654	$	17


Average Recorded Investment	2019		2018		2017
With no allowance recorded:
Construction and land development	$	301	$	378	$	921
Commercial real estate:
Nonfarm, nonresidential	13		—		1,796
Residential real estate:
Closed-end 1-4 family	587		715		649
Other	1,286		553		331
Commercial and industrial	670		655		899
Consumer and other	—		—		1
Subtotal	2,857		2,301		4,597
With an allowance recorded:
Construction and land development	147		—		—
Commercial real estate
Nonfarm, nonresidential	40		0		0
Residential real estate:
Closed-end 1-4 family	56		—		22
Commercial and industrial	4,403		993		2,480
Subtotal	4,646		993		2,502
Total	$	7,503	$	3,294	$	7,099


	Nonaccrual		Loans Past Due Over 90 Days
December 31, 2019
Construction loans	$	30	$	—
Residential real estate:
Closed-end 1-4 family	954		—
Other	1,523		—
Commercial and industrial	24,528		654
Total	$	27,035	$	654
December 31, 2018
Construction loans	$	2,298	$	—
Residential real estate:
Closed-end 1-4 family	1,273		—
Other	1,917		—
Commercial and industrial	—		208
Total	$	5,488	$	208

Nonaccrual loans and loans past due 90 days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans. Nonaccrual loans and loans past due over 90 days still on accrual increased $21,993 as of December 31, 2019, mainly due to two commercial and industrial lending relationships that were downgraded during the subsequent events period that exists between December 31, 2019 and the filing of this document.


	30-59 Days Past Due		60-89 Days Past Due		Greater Than 89 Days Past Due		Total Past Due		Loans Not Past Due		Total
December 31, 2019
Construction and land development	$	508	$	—	$	30	$	538	$	591,003	$	591,541
Commercial real estate:
Nonfarm, nonresidential	3,981		—		—		3,981		940,040		944,021
Other	—		—		—		—		49,891		49,891
Residential real estate:
Closed-end 1-4 family	2,688		224		8		2,920		453,000		455,920
Other	85		961		555		1,601		186,080		187,681
Commercial and industrial	663		7,156		735		8,554		574,087		582,641
Consumer and other	—		—		—		—		4,769		4,769
	$	7,925	$	8,341	$	1,328	$	17,594	$	2,798,870	$	2,816,464
December 31, 2018
Construction and land development	$	294	$	1,986	$	548	$	2,828	$	581,612	$	584,440
Commercial real estate:
Nonfarm, nonresidential	515		—		—		515		753,728		754,243
Other	—		—		—		—		51,017		51,017
Residential real estate:
Closed-end 1-4 family	2,390		404		228		3,022		490,043		493,065
Other	142		—		1,810		1,952		187,865		189,817
Commercial and industrial	241		252		208		701		596,092		596,793
Consumer and other	—		—		—		—		5,568		5,568
	$	3,582	$	2,642	$	2,794	$	9,018	$	2,665,925	$	2,674,943

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. This analysis includes non-homogeneous loans, such as commercial and commercial real estate loans as well as non-homogeneous residential real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings:

Special Mention. Loans classified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard. Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful. Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. The following table excludes deferred loan fees and includes PCI loans, which are included in the “Substandard” column. Based on the most recent analysis performed, the risk category of loans by class of loans is as follows as of December 31, 2019 and 2018:


	Pass		Special Mention		Substandard		Total
December 31, 2019
Construction and land development	$	591,293	$	248	$	—	$	591,541
Commercial real estate:
Nonfarm, nonresidential	941,260		997		1,764		944,021
Other	49,891		—		—		49,891
Residential real estate:
Closed-end 1-4 family	452,363		825		2,732		455,920
Other	185,170		—		2,511		187,681
Commercial and industrial	539,442		943		42,256		582,641
Consumer and other	4,769		—		—		4,769
	$	2,764,188	$	3,013	$	49,263	$	2,816,464
December 31, 2018
Construction and land development	$	580,468	$	1,416	$	2,556	$	584,440
Commercial real estate:
Nonfarm, nonresidential	739,469		14,774		—		754,243
Other	51,017		—		—		51,017
Residential real estate:
Closed-end 1-4 family	489,781		948		2,336		493,065
Other	186,485		404		2,928		189,817
Commercial and industrial	557,589		8,313		30,891		596,793
Consumer and other	5,567		1		—		5,568
	$	2,610,376	$	25,856	$	38,711	$	2,674,943

At December 31, 2019, the Bank realized a $12,291 decrease in classified and criticized loans compared to December 31, 2018. Commercial real estate nonfarm, nonresidential loans decreased $12,013, and commercial and industrial loans increased $3,995 from December 31, 2018.

As of December 31, 2019, the Company’s loan portfolio contains one loan in the amount of $311 that has been modified in a troubled debt restructuring during the year ended December 31, 2019. There was one loan in the amount of $167 that was modified in troubled debt restructurings during the year ended December 31, 2018.