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LOANS
 3 Months Ended
Mar. 31, 2020
Receivables [Abstract]  
LOANS LOANS
Loans at March 31, 2020 and December 31, 2019 were as follows:
March 31,
2020		December 31,
2019
Loans
Construction and land development$627,178  $591,541  
Commercial real estate:
Nonfarm, nonresidential955,348  944,021  
Other42,610  49,891  
Residential real estate:
Closed-end 1-4 family456,610  455,920  
Other191,976  187,681  
Commercial and industrial581,598  582,641  
Consumer and other4,454  4,769  
Loans before net deferred loan fees2,859,774  2,816,464  
Deferred loan fees, net(4,006) (4,020) 
Total loans2,855,768  2,812,444  
Allowance for loan losses(38,403) (45,436) 
Total loans, net of allowance for loan losses$2,817,365  $2,767,008  
The following table presents the activity in the allowance for loan losses by portfolio segment for the three-month periods ended March 31, 2020 and 2019:
Construction
and Land
Development		Commercial
Real
Estate		Residential
Real
Estate		Commercial
and
Industrial		Consumer
and
Other		Total
Three Months Ended March 31, 2020
Allowance for loan losses:
Beginning balance$4,847  $8,113  $4,462  $27,957  $57  $45,436  
Provision for loan losses1,570  905  312  10,222  13  13,022  
Loans charged-off—  —  (8) (20,501) (21) (20,530) 
Recoveries—  —  1  468  6  475  
Total ending allowance balance$6,417  $9,018  $4,767  $18,146  $55  $38,403  
Three Months Ended March 31, 2019
Allowance for loan losses:
Beginning balance$4,743  $6,725  $4,743  $7,166  $74  $23,451  
Provision for loan losses(1) 302  80  4,631  43  5,055  
Loans charged-off—  —  (15) (568) (70) (653) 
Recoveries—  —  2  —  2  4  
Total ending allowance balance$4,742  $7,027  $4,810  $11,229  $49  $27,857  
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of March 31, 2020 and December 31, 2019. For purposes of this disclosure, recorded investment in loans excludes accrued interest receivable and net deferred loan fees due to immateriality.
Construction
and Land
Development		Commercial
Real
Estate		Residential
Real
Estate		Commercial
and
Industrial		Consumer
and
Other		Total
March 31, 2020
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment$—  $—  $—  $6,760  $—  $6,760  
Collectively evaluated for impairment6,417  9,018  4,767  11,386  55  31,643  
Total ending allowance balance$6,417  $9,018  $4,767  $18,146  $55  $38,403  
Loans:
Individually evaluated for impairment$—  $3,460  $3,255  $20,719  $—  $27,434  
Collectively evaluated for impairment627,178  994,498  645,331  560,879  4,454  2,832,340  
Total ending loans balance$627,178  $997,958  $648,586  $581,598  $4,454  $2,859,774  
December 31, 2019
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment$—  $—  $17  $20,754  $—  $20,771  
Collectively evaluated for impairment4,847  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 impairment591,511  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  
Loans collectively evaluated for impairment reported at March 31, 2020 include certain acquired loans. At March 31, 2020, these non-purchased credit impaired (PCI) loans had a carrying value of $51,882, comprised of contractually unpaid principal totaling $52,588 and discounts totaling $706. Management evaluated these loans for credit deterioration since acquisition and determined that an allowance for loan losses of $56 was necessary at March 31, 2020.
The following table presents information related to impaired loans by class of loans as of March 31, 2020 and December 31, 2019:
Unpaid
Principal
Balance		Recorded
Investment		Allowance for
Loan Losses
Allocated
March 31, 2020
With no allowance recorded:
Commercial real estate:
Nonfarm, nonresidential$3,460  $3,460  $—  
Residential real estate:
Closed-end 1-4 family950  942  —  
Other2,313  2,313  —  
Commercial and industrial13,391  13,391  —  
Subtotal20,114  20,106  —  
With an allowance recorded:
Commercial and industrial7,328  7,328  6,760  
Subtotal7,328  7,328  6,760  
Total$27,442  $27,434  $6,760  
December 31, 2019
With no allowance recorded:
Construction and land development$30  $30  $—  
Residential real estate:
Closed-end 1-4 family319  311  —  
Other1,523  1,523  —  
Commercial and industrial11  11  —  
Subtotal1,883  1,875  —  
With an allowance recorded:
Residential real estate:
Closed-end 1-4 family643  643  17  
Commercial and industrial24,517  24,517  20,754  
Subtotal25,160  25,160  20,771  
Total$27,043  $27,035  $20,771  
The following table presents the average recorded investment of impaired loans by class of loans for the three months ended March 31, 2020 and 2019:
Three Months Ended
March 31,
Average Recorded Investment20202019
With no allowance recorded:
Construction and land development$10  $768  
Commercial real estate:
Nonfarm, nonresidential4,584  51  
Residential real estate:
Closed-end 1-4 family1,260  806  
Other2,840  1,264  
Commercial and industrial19,162  —  
Subtotal$27,856  $2,889  
With an allowance recorded:
Construction and land development$—  $183  
Commercial real estate:
Nonfarm, nonresidential156  —  
Residential real estate:
Closed-end 1-4 family213  —  
Commercial and industrial—  3,170  
Subtotal369  3,353  
Total average recorded investment$28,225  $6,242  
The impact on net interest income for these loans was not material to the Company’s results of operations for the three months ended March 31, 2020 and 2019.
The following table presents the recorded investment in nonaccrual loans and loans past due over 90 days still on accrual by class of loans as of March 31, 2020 and December 31, 2019:
NonaccrualLoans Past Due
Over 90 Days And
Still Accruing Interest
March 31, 2020
Commercial real estate:
Nonfarm, nonresidential$3,460  $—  
Residential real estate:
Closed-end 1-4 family942  —  
Other2,313  —  
Commercial and industrial20,719  —  
Total$27,434  $—  
December 31, 2019
Construction and land development$30  $—  
Residential real estate:
Closed-end 1-4 family954  —  
Other1,523  —  
Commercial and industrial24,528  654  
Total$27,035  $654  
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.
The following table presents the aging of the recorded investment in past due loans as of March 31, 2020 and December 31, 2019 by class of loans:
30-59
Days
Past Due		60-89
Days
Past Due		Greater
Than 89
Days
Past Due		Total
Past Due		Loans
Not
Past Due		Total
March 31, 2020
Construction and land development$1,753  $2,484  $—  $4,237  $622,941  $627,178  
Commercial real estate:
Nonfarm, nonresidential8,149  —  3,460  11,609  943,739  955,348  
Other—  —  —  —  42,610  42,610  
Residential real estate:
Closed-end 1-4 family4,729  2  —  4,731  451,879  456,610  
Other916  —  395  1,311  190,665  191,976  
Commercial and industrial3,857  619  15,311  19,787  561,811  581,598  
Consumer and other—  —  —  —  4,454  4,454  
$19,404  $3,105  $19,166  $41,675  $2,818,099  $2,859,774  
December 31, 2019
Construction and land development
$508  $—  $30  $538  $591,003  $591,541  
Commercial real estate:
Nonfarm, nonresidential3,981  —  —  3,981  940,040  944,021  
Other—  —  —  —  49,891  49,891  
Residential real estate:
Closed-end 1-4 family2,688  224  8  2,920  453,000  455,920  
Other85  961  555  1,601  186,080  187,681  
Commercial and industrial663  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  
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.
COVID-19 Supplemental information. The loan modifications and payment deferrals established in accordance with the CARES Act and Interagency Statements disclosed in Note 1 did not result in immediate credit risk modifications. The impacted credits will continue to be monitored and assessed as the sustained impact of COVID-19 becomes better understood.
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 March 31, 2020 and December 31, 2019:
PassSpecial
Mention		SubstandardTotal
March 31, 2020
Construction and land development$627,178  $—  $—  $627,178  
Commercial real estate:
Nonfarm, nonresidential946,120  4,012  5,216  955,348  
Other42,610  —  —  42,610  
Residential real estate:
Closed-end 1-4 family453,892  819  1,899  456,610  
Other188,830  —  3,146  191,976  
Commercial and industrial543,565  600  37,433  581,598  
Consumer and other4,454  ——  4,454  
$2,806,649  $5,431  $47,694  $2,859,774  

PassSpecial
Mention		SubstandardTotal
December 31, 2019
Construction and land development$591,293  $248  $—  $591,541  
Commercial real estate:
Nonfarm, nonresidential941,260  997  1,764  944,021  
Other49,891  —  —  49,891  
Residential real estate:
Closed-end 1-4 family452,363  825  2,732  455,920  
Other185,170  —  2,511  187,681  
Commercial and industrial539,442  943  42,256  582,641  
Consumer and other4,769  —  —  4,769  
$2,764,188  $3,013  $49,263  $2,816,464  
Troubled Debt Restructurings
As of March 31, 2020, the Company’s loan portfolio contains two loans that have been modified in troubled debt restructurings with a balance of $6,903. As of December 31, 2019, the Company’s loan portfolio contained one loan that had been modified in a troubled debt restructuring with a balance of $311.