10-Q

U. S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

x QUARTERLY REPORT UNDER SECTION 13 OR 15 (D) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED: March 31, 2016

OR

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

COMMISSION FILE NUMBER: 33-94288

THE FIRST BANCSHARES, INC.

(EXACT NAME OF ISSUER AS SPECIFIED IN ITS CHARTER)

MISSISSIPPI	64-0862173
(STATE OF INCORPORATION)	(I.R.S. EMPLOYER IDENTIFICATION NO.)

6480 U.S. HIGHWAY 98 WEST
HATTIESBURG, MISSISSIPPI	39402
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)	(ZIP CODE)

(601) 268-8998

(ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE)

NONE

(FORMER NAME, ADDRESS AND FISCAL YEAR, IF CHANGED SINCE LAST REPORT)

INDICATE BY CHECK MARK WHETHER THE ISSUER: (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  ¨

INDIATE 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 HE REGISTRANT WAS REQUIRED TO SUBMIT AND POST SUCH FILES).

YES x   NO  ¨

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 THE DEFINITIONS OF “LARGE ACCELERATED FILER,” “ACCELERATED FILER,” “NON-ACCELERATED FILER” AND “SMALLER REPORTING COMPANY” IN RULE 12B-2 OF THE EXCHANGE ACT.

LARGE ACCELERATED FILER	¨	ACCELERATED FILER	¨
NON-ACCELERATED FILER	x	SMALLER REPORTING COMPANY	¨

ON March 31, 2016, 5,458,508 SHARES OF THE ISSUER'S COMMON STOCK, PAR VALUE $1.00 PER SHARE WERE ISSUED AND OUTSTANDING.

TRANSITIONAL DISCLOSURE FORMAT (CHECK ONE):

YES  ¨   NO  x

INDICATE BY CHECK MARK WHETHER THE REGISTRANT IS A SHELL COMPANY (AS DEFINED IN RULE 12B-2 OF THE EXCHANGE ACT):

YES  ¨   NO  x

PART I - FINANCIAL INFORMATION

ITEM NO. 1. FINANCIAL STATEMENTS

THE FIRST BANCSHARES, INC.

CONSOLIDATED BALANCE SHEETS

($ amounts in thousands)

	(Unaudited)
	March 31,			December 31,
	2016			2015
ASSETS
Cash and due from banks	$	31,957		$	23,635
Interest-bearing deposits with banks		37,316			17,303
Federal funds sold		26,692			321
Total cash and cash equivalents		95,965			41,259
Securities held-to-maturity, at amortized cost		6,851			7,092
Securities available-for-sale, at fair value		253,126			239,732
Other securities		9,570			8,135
Total securities		269,547			254,959
Loans held for sale		6,095			3,974
Loans		797,764			772,515
Allowance for loan losses		(6,982	)		(6,747	)
Loans, net		796,877			769,742
Premises and equipment		33,353			33,623
Interest receivable		4,266			3,953
Cash surrender value of life insurance		14,971			14,872
Goodwill		13,776			13,776
Other real estate owned		4,363			3,083
Other assets		8,833			9,864
TOTAL ASSETS	$	1,241,951		$	1,145,131
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES:
Deposits:
Noninterest-bearing	$	194,433		$	189,445
Interest-bearing		846,672			727,250
TOTAL DEPOSITS		1,041,105			916,695
Interest payable		236			246
Borrowed funds		78,976			110,321
Subordinated debentures		10,310			10,310
Other liabilities		4,127			4,123
TOTAL LIABILITIES		1,134,754			1,041,695
STOCKHOLDERS’ EQUITY:
Preferred stock, no par value, $1,000 per share liquidation, 10,000,000 shares authorized; 17,123 issued and outstanding at March 31, 2016 and December 31, 2015, respectively		17,123			17,123
Common stock, par value $1 per share, 20,000,000 shares authorized and 5,458,508 shares issued at March 31,2016; and 5,403,159 shares issued at December 31, 2015, respectively		5,459			5,403
Additional paid-in capital		44,668			44,650
Retained earnings		37,939			35,625
Accumulated other comprehensive income		2,472			1,099
Treasury stock, at cost, 26,494 shares at March 31, 2016 and at December 31, 2015		(464	)		(464	)
TOTAL STOCKHOLDERS’ EQUITY		107,197			103,436
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,241,951		$	1,145,131

See Notes to Consolidated Financial Statements

THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF INCOME

($ amounts in thousands, except earnings and dividends per share)

	(Unaudited)
	Three Months Ended
	March 31,
	2016		2015
INTEREST INCOME:
Interest and fees on loans	$	9,035	$	8,148
Interest and dividends on securities:
Taxable interest and dividends		1,072		1,011
Tax exempt interest		460		501
Interest on federal funds sold		30		23
TOTAL INTEREST INCOME		10,597		9,683
INTEREST EXPENSE:
Interest on deposits		701		632
Interest on borrowed funds		221		172
TOTAL INTEREST EXPENSE		922		804
NET INTEREST INCOME		9,675		8,879
PROVISION FOR LOAN LOSSES		190		150
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		9,485		8,729
OTHER INCOME:
Service charges on deposit accounts		1,281		1,051
Other service charges and fees		1,202		799
TOTAL OTHER INCOME		2,483		1,850
OTHER EXPENSES:
Salaries and employee benefits		5,149		4,626
Occupancy and equipment		1,073		1,109
Other		2,173		2,083
TOTAL OTHER EXPENSES		8,395		7,818
INCOME BEFORE INCOME TAXES		3,573		2,761
INCOME TAXES		969		732
NET INCOME		2,604		2,029
PREFERRED STOCK ACCRETION AND DIVIDENDS		85		85
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS	$	2,519	$	1,944
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS:
BASIC	$	.47	$	.36
DILUTED		.46		.36
DIVIDENDS PER SHARE – COMMON		.0375		.0375

See Notes to Consolidated Financial Statements

THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

($ amounts in thousands)

	(Unaudited)
	Three Months Ended
	March 31,
	2016			2015
Net income per consolidated statements of income	$	2,604		$	2,029
Other Comprehensive Income:
Unrealized holding gains arising during the period on available-for-sale securities		2,071			1,124
Unrealized holding gains on loans held for sale		12			16
Income tax expense		(710	)		(388	)
Other Comprehensive Income		1,373			752
Comprehensive Income	$	3,977		$	2,781

See Notes to Consolidated Financial Statements

THE FIRST BANCSHARES, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

(unaudited)

($ in thousands)
	Common Stock			Preferred Stock		Stock Warrants		Additional Paid-in Capital			Retained Earnings			Accumulated Other Compre- hensive Income(Loss)		Treasury Stock			Total
Balance, January 1, 2015	$	5,343		$	17,123	$	284	$	44,137		$	27,975		$	1,818	$	(464	)	$	96,216
Net income		-			-		-		-			2,029			-		-			2,029
Other comprehensive income		-			-		-		-			-			752		-			752
Dividends on preferred stock		-			-		-		-			(85	)		-		-			(85	)
Dividends on common stock, $0.0375 per share		-			-		-		-			(202	)		-		-			(202	)
Repurchase of restricted stock for payment of taxes		(6	)		-		-		(86	)		-			-		-			(92	)
Restricted stock grant		67			-		-		(67	)		-			-		-			-
Compensation expense		-			-		-		184			-			-		-			184
Reversal of 2,514 common shares for BCB Holdings		(3	)		-		-		(33	)		-			-		-			(36	)
Balance, March 31, 2015	$	5,401		$	17,123	$	284	$	44,135		$	29,717		$	2,570	$	(464	)	$	98,766
Balance, January 1, 2016	$	5,403		$	17,123	$	-	$	44,650		$	35,625		$	1,099	$	(464	)	$	103,436
Net income		-			-		-		-			2,604			-		-			2,604
Other comprehensive income		-			-		-		-			-			1,373		-			1,373
Dividends on preferred stock		-			-		-		-			(85	)		-		-			(85	)
Dividends on common stock, $0.0375 per share		-			-		-		-			(205	)		-		-			(205	)
Repurchase of restricted stock for payment of taxes		(5	)		-		-		(100	)		-			-		-			(105	)
Restricted stock grant		61			-		-		(61	)		-			-		-			-
Compensation expense		-			-		-		179			-			-		-			179
Balance, March 31, 2016	$	5,459		$	17,123	$	-	$	44,668		$	37,939		$	2,472	$	(464	)	$	107,197

See Notes to Consolidated Financial Statements

THE FIRST BANCSHARES, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

($ Amounts in Thousands)

	(Unaudited)
	Three Months Ended
	March 31,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME	$	2,604		$	2,029
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion		870			871
Provision for loan losses		190			150
Loss on sale/writedown of ORE		62			94
Gain on sale of bank premises		-			(119	)
Restricted stock expense		179			184
Increase in cash value of life insurance		(99	)		(106	)
Federal Home Loan Bank stock dividends		(2	)		(1	)
Changes in:
Interest receivable		(313	)		(291	)
Loans held for sale, net		(2,109	)		462
Interest payable		(10	)		(41	)
Other, net		365			(1,650	)
NET CASH PROVIDED BY OPERATING ACTIVITIES		1,737			1,582
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities, calls and paydowns of available-for-sale and held-to-maturity securities		9,150			12,188
Purchases of securities available-for-sale and held-to-maturity securities		(20,541	)		(3,520	)
Net purchases of other securities		(1,433	)		-
Net increase in loans		(26,736	)		(12,650	)
Proceeds from sale of bank premises		-			949
Net increase in premises and equipment		(151	)		(197	)
NET CASH USED IN INVESTING ACTIVITIES		(39,711	)		(3,230	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in deposits		124,410			91,915
Net decrease in borrowed funds		(31,345	)		(40,004	)
Dividends paid on common stock		(195	)		(194	)
Dividends paid on preferred stock		(85	)		(85	)
Repurchase of restricted stock for payment of taxes		(105	)		(92	)
Repurchase of shares issued in BCB acquisition		-			(36	)
NET CASH PROVIDED BY FINANCING ACTIVITIES		92,680			51,504
NET INCREASE IN CASH		54,706			49,856
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD		41,259			44,618
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$	95,965		$	94,474
SUPPLEMENTAL DISCLOSURES:
CASH PAYMENTS FOR INTEREST		932			892
CASH PAYMENTS FOR INCOME TAXES		236			2,206
LOANS TRANSFERRED TO OTHER REAL ESTATE		1,554			506
ISSUANCE OF RESTRICTED STOCK GRANTS		61			67

See Notes to Consolidated Financial Statements

THE FIRST BANCSHARES, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE A — BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and with the instructions to Form 10-Q of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company's Form 10-K for the year ended December 31, 2015.

NOTE B — SUMMARY OF ORGANIZATION

The First Bancshares, Inc., Hattiesburg, Mississippi (the "Company"), was incorporated June 23, 1995, under the laws of the State of Mississippi for the purpose of operating as a bank holding company. The Company’s primary asset is its interest in its wholly-owned subsidiary, The First, A National Banking Association (the “Bank”).

At March 31, 2016, the Company had approximately $1.2 billion in assets, $796.9 million in net loans, $1.0 billion in deposits, and $107.2 million in stockholders' equity. For the three months ended March 31, 2016, the Company reported net income of $2.6 million ($2.5 million applicable to common stockholders).

In the first quarter of 2016, the Company declared and paid a dividend of $.0375 per common share.

NOTE C – BUSINESS COMBINATION

The Mortgage Connection

On December 14, 2015, the Company completed the acquisition of The Mortgage Connection, a Mississippi corporation, which included two loan production offices located in Madison and Brandon, Mississippi.

In connection with the acquisition, the Company recorded $1.5 million of goodwill.

The amounts of the acquired identifiable assets and liabilities as of the acquisition date were as follows (dollars in thousands):

Purchase price:
Cash	$	844
Payable		800
Total purchase price		1,644
Identifiable assets:
Intangible		100
Personal property		44
Total assets		144
Liabilities and equity:
Net assets acquired	$	144
Goodwill resulting from acquisition	$	1,500

NOTE D – PREFERRED STOCK AND WARRANT

Pursuant to the terms of the letter agreement between the Company and the United States Department of the Treasury (“Treasury”), the Company issued 17,123 CDCI Preferred Shares.

The Letter Agreement contains limitations on the payment of dividends on the common stock to no more than 100% of the aggregate per share dividend and distributions for the immediate prior fiscal year (dividends of $0.15 per share were declared and paid in 2011-2015) and on the Company’s ability to repurchase its common stock in the event of a non-payment of our dividend, and continues to subject the Company to certain of the executive compensation limitations included in the Emergency Economic Stabilization Act of 2008 (EESA), as previously disclosed by the Company. The CDCI Preferred Shares entitle the holder to an annual dividend of 2% for 8 years of the liquidation value of the shares, payable quarterly in arrears.

Pursuant to the terms of the letter agreement between the Company and the United States Department of the Treasury, the Company redeemed the warrant to purchase up to 54,705 shares of the Company’s common stock. In connection with this redemption, on May 13, 2015, the Company paid Treasury an aggregate redemption price of $302,410.

NOTE E — EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

Basic per share data is calculated based on the weighted-average number of common shares outstanding during the reporting period. Diluted per share data includes any dilution from potential common stock outstanding, such

as stock options.

	For the Three Months Ended
	March 31, 2016
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	2,519,000		5,415,339	$	0.47
Effect of dilutive shares:
Restricted stock grants				63,364
Diluted per share	$	2,519,000		5,478,703	$	0.46

	For the Three Months Ended
	March 31, 2015
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	1,944,000		5,358,576	$	0.36
Effect of dilutive shares:
Restricted stock grants				56,524
Diluted per share	$	1,944,000		5,415,100	$	0.36

The Company granted 61,247 shares of restricted stock in the first quarter of 2016.

NOTE F — FAIR VALUE OF ASSETS AND LIABILITIES

The Company groups its financial assets measured at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:

Level 1:	Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.
Level 2:	Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use 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 for substantially the full term of the assets and liabilities.
Level 3:	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying balance sheets.

Available-for-Sale Securities

The fair value of available-for-sale securities is determined by various valuation methodologies. Where quoted market prices are available in an active market, securities are classified within Level 1. If quoted market prices are not available, then fair values are estimated by using pricing models or quoted prices of securities with similar characteristics. Level 2 securities include U.S. Treasury securities, obligations of U.S. government corporations and agencies, obligations of states and political subdivisions, mortgage-backed securities and collateralized mortgage obligations. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the hierarchy in which the fair value measurements fell as of March 31, 2016 and December 31, 2015 (in thousands):

March 31, 2016

(Dollars in thousands)			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of U. S. Government Agencies	$	16,642	$	-	$	16,642	$	-
Municipal securities		97,594		-		97,594		-
Mortgage-backed securities		115,733		-		115,733		-
Corporate obligations		22,203		-		19,729		2,474
Other		954		954		-		-
Total	$	253,126	$	954	$	249,698	$	2,474

December 31, 2015

(Dollars in thousands)			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of U. S. Government Agencies	$	19,611	$	-	$	19,611	$	-
Municipal securities		97,889		-		97,889		-
Mortgage-backed securities		98,925		-		98,925		-
Corporate obligations		22,346		-		19,789		2,557
Other		961		961		-		-
Total	$	239,732	$	961	$	236,214	$	2,557

The following is a reconciliation of activity for assets measured at fair value based on significant unobservable (non-market) information.

(Dollars in thousands)	Bank-Issued Trust Preferred Securities
	2016			2015
Balance, January 1	$	2,557		$	2,801
Transfers into Level 3		-			-
Transfers out of Level 3		-			-
Other-than-temporary impairment loss included in earnings (loss)		-			-
Unrealized loss included in comprehensive income		(83	)		(244	)
Balance at March 31, 2016 and December 31, 2015	$	2,474		$	2,557

The following table presents quantitative information about recurring Level 3 fair value measurements (in thousands):

Trust Preferred Securities	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs
March 31, 2016	$	2,474	Discounted cash flow	Probability of default		1.18% - 2.96%
December 31, 2015	$	2,557	Discounted cash flow	Probability of default		1.08% - 2.77%

Following is a description of the valuation methodologies used for assets measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

Impaired Loans

Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for estimating fair value include using the fair value of the collateral for collateral dependent loans or, where a loan is determined not to be collateral dependent, using the discounted cash flow method.

If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. If the impaired loan is determined not to be collateral dependent, then the discounted cash flow method is used. This method requires the impaired loan to be recorded at the present value of expected future cash flows discounted at the loan’s effective interest rate. The effective interest rate of a loan is the contractual interest rate adjusted for any net deferred loan fees or costs, or premium or discount existing at origination or acquisition of the loan. Impaired loans are classified within Level 2 of the fair value hierarchy.

Other Real Estate Owned

Other real estate owned acquired through loan foreclosure is initially recorded at fair value less estimated costs to sell, establishing a new cost basis. The adjustment at the time of foreclosure is recorded through the allowance for loan losses. Due to the subjective nature of establishing the fair value, the actual fair value of the other real estate owned or foreclosed asset could differ from the original estimate. If it is determined the fair value declines subsequent to foreclosure, a valuation allowance is recorded through non-interest expense. Operating costs associated with the assets are also recorded as non-interest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and posted to other non-interest expense. Other real estate owned measured at fair value on a non-recurring basis at March 31, 2016, amounted to $4.4 million. Other real estate owned is classified within Level 2 of the fair value hierarchy.

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fell at March 31, 2016 and December 31, 2015.

($ in thousands)

March 31, 2016

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	8,866	$	-	$	8,866	$	-
Other real estate owned		4,363		-		4,363		-

December 31, 2015

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	10,127	$	-	$	10,127	$	-
Other real estate owned		3,083		-		3,083		-

The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value:

Cash and Cash Equivalents – For such short-term instruments, the carrying amount is a reasonable estimate of fair value.

Investment in securities available-for-sale and held-to-maturity – The fair value measurement for securities available-for-sale was discussed earlier. The same measurement approach was used for securities held-to-maturity.

Loans – The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Bank-Owned Life Insurance– The fair value of bank-owned life insurance approximates the carrying amount, because upon liquidation of these investments, the Company would receive the cash surrender value which equals the carrying amount.

Deposits – The fair values of demand deposits are, as required by ASC Topic 825, equal to the carrying value of such deposits. Demand deposits include noninterest-bearing demand deposits, savings accounts, NOW accounts, and money market demand accounts. The fair value of variable rate term deposits, those repricing within six months or less, approximates the carrying value of these deposits. Discounted cash flows have been used to value fixed rate term deposits and variable rate term deposits repricing after six months. The discount rate used is based on interest rates currently being offered on comparable deposits as to amount and term.

Short-Term Borrowings – The carrying value of any federal funds purchased and other short-term borrowings approximates their fair values.

FHLB and Other Borrowings – The fair value of the fixed rate borrowings are estimated using discounted cash flows, based on current incremental borrowing rates for similar types of borrowing arrangements. The carrying amount of any variable rate borrowing approximates its fair value.

Subordinated Debentures – The subordinated debentures bear interest at a variable rate and the carrying value approximates the fair value.

Off-Balance Sheet Instruments – Fair values of off-balance sheet financial instruments are based on fees charged to enter into similar agreements. However, commitments to extend credit do not represent a significant value until such commitments are funded or closed. Management has determined that these instruments do not have a distinguishable fair value and no fair value has been assigned.

As of March 31, 2016					Fair Value Measurements
($ in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Instruments:
Assets:
Cash and cash equivalents	$	95,965	$	95,965	$	95,965	$	-	$	-
Securities available-for-sale		253,126		253,126		954		249,698		2,474
Securities held-to-maturity		6,851		8,741		-		8,741		-
Other securities		9,570		9,570		-		9,570		-
Loans, net		796,877		814,936		-		-		814,936
Bank-owned life insurance		14,971		14,971		-		14,971		-
Liabilities:
Noninterest-bearing deposits	$	194,433	$	194,433	$	-	$	194,433	$	-
Interest-bearing deposits		846,672		846,231		-		846,231		-
Subordinated debentures		10,310		10,310		-		-		10,310
FHLB and other borrowings		78,976		78,976		-		78,976		-

As of December 31, 2015					Fair Value Measurements
($ in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Instruments:
Assets:
Cash and cash equivalents	$	41,259	$	41,259	$	41,259	$	-	$	-
Securities available-for-sale		239,732		239,732		961		236,214		2,557
Securities held-to-maturity		7,092		8,548		-		8,548		-
Other securities		8,135		8,135		-		8,135		-
Loans, net		769,742		784,113		-		-		784,113
Bank-owned life insurance		14,872		14,872		-		14,872		-
Liabilities:
Noninterest-bearing deposits	$	189,445	$	189,445	$	-	$	189,445	$	-
Interest-bearing deposits		727,250		726,441		-		726,441		-
Subordinated debentures		10,310		10,310		-		-		10,310
FHLB and other borrowings		110,321		110,321		-		110,321		-

NOTE G — LOANS

Loans typically provide higher yields than the other types of earning assets, and, thus, one of the Company's goals is for loans to be the largest category of the Company's earning assets. For the quarters ended March 31, 2016 and December 31, 2015, average loans accounted for 72.3% and 73.3% of average earning assets, respectively. The Company controls and mitigates the inherent credit and liquidity risks through the composition of its loan portfolio.

The following table shows the composition of the loan portfolio by category:

Composition of Loan Portfolio

	March 31, 2016						December 31, 2015
	Amount			Percent of Total			Amount			Percent of Total
	(Dollars in thousands)
Mortgage loans held for sale	$	6,095			0.8	%	$	3,974			0.5	%
Commercial, financial and agricultural		126,381			15.7			129,197			16.6
Real Estate:
Mortgage-commercial		270,085			33.6			253,309			32.6
Mortgage-residential		276,272			34.3			272,180			35.1
Construction		100,386			12.5			99,161			12.8
Lease financing receivable		2,645			0.3			2,650			0.3
Obligations of states and subdivisions		7,034			0.9			969			0.1
Consumer and other		14,961			1.9			15,049			2.0
Total loans		803,859			100	%		776,489			100	%
Allowance for loan losses		(6,982	)					(6,747	)
Net loans	$	796,877					$	769,742

In the context of this discussion, a "real estate mortgage loan" is defined as any loan, other than a loan for construction purposes, secured by real estate, regardless of the purpose of the loan. The Company follows the common practice of financial institutions in the Company’s market area of obtaining a security interest in real estate whenever possible, in addition to any other available collateral. This collateral is taken to reinforce the likelihood of the ultimate repayment of the loan and tends to increase the magnitude of the real estate loan portfolio component. Generally, the Company limits its loan-to-value ratio to 80%. Management attempts to maintain a conservative philosophy regarding its underwriting guidelines and believes it will reduce the risk elements of its loan portfolio through strategies that diversify the lending mix.

Loans held for sale consist of mortgage loans originated by the Bank and sold into the secondary market. Commitments from investors to purchase the loans are obtained upon origination.

Activity in the allowance for loan losses for the period was as follows:

(In thousands)

	Three Months
	Ended
	March 31, 2016
Balance at beginning of period	$	6,747
Loans charged-off:
Real Estate		(78	)
Installment and Other		(9	)
Commercial, Financial and Agriculture		(6	)
Total		(93	)
Recoveries on loans previously charged-off:
Real Estate		44
Installment and Other		18
Commercial, Financial and Agriculture		76
Total		138
Net recoveries		45
Provision for Loan Losses		190
Balance at end of period	$	6,982

The following tables represent how the allowance for loan losses is allocated to a particular loan type, as well as the percentage of the category to total loans at March 31, 2016 and December 31, 2015.

Allocation of the Allowance for Loan Losses

	March 31, 2016
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	1,020		17.3	%
Commercial Real Estate		3,410		58.7
Consumer Real Estate		1,584		21.6
Consumer		144		2.3
Unallocated		824		.1
Total	$	6,982		100	%

	December 31, 2015
	(Dollars in thousands)
	Amount		% of loans in each category to total loans
Commercial Non Real Estate	$	895		17.1	%
Commercial Real Estate		3,018		58.4
Consumer Real Estate		1,477		21.9
Consumer		141		2.5
Unallocated		1,216		.1
Total	$	6,747		100	%

The following table represents the Company’s impaired loans at March 31, 2016, and December 31, 2015.

	March 31,		December 31,
	2016		2015
	(In thousands)
Impaired Loans:
Impaired loans without a valuation allowance	$	4,776	$	6,020
Impaired loans with a valuation allowance		4,090		4,107
Total impaired loans	$	8,866	$	10,127
Allowance for loan losses on impaired loans at period end		967		957
Total nonaccrual loans		5,851		7,368
Past due 90 days or more and still accruing		628		29
Average investment in impaired loans		9,496		9,652

The following table is a summary of interest recognized and cash-basis interest earned on impaired loans:

	Three Months Ended March 31, 2016		Three Months Ended March 31, 2015
Interest income recognized during impairment	$	45	$	34
Cash-basis interest income recognized		45		34

The gross interest income that would have been recorded in the period that ended if the nonaccrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the three months ended March 31, 2016 and March 31, 2015, was $98,000 and $94,000, respectively, The Company had no loan commitments to borrowers in non-accrual status at March 31, 2016 and December 31, 2015.

The following tables provide the ending balances in the Company's loans (excluding mortgage loans held for sale) and allowance for loan losses, broken down by portfolio segment as of March 31, 2016 and December 31, 2015. The tables also provide additional detail as to the amount of our loans and allowance that correspond to individual versus collective impairment evaluation. The impairment evaluation corresponds to the Company's systematic methodology for estimating its Allowance for Loan Losses.

March 31, 2016

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	8,556	$	37	$	273	$	8,866
Collectively evaluated		637,661		15,257		135,980		788,898
Total	$	646,217	$	15,294	$	136,253	$	797,764
Allowance for Loan Losses
Individually evaluated	$	880	$	25	$	62	$	967
Collectively evaluated		4,114		943		958		6,015
Total	$	4,994	$	968	$	1,020	$	6,982

December 31, 2015

					Commercial,
			Installment		Financial
	Real Estate		and Other		and Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	9,782	$	39	$	306	$	10,127
Collectively evaluated		610,996		19,591		131,801		762,388
Total	$	620,778	$	19,630	$	132,107	$	772,515
Allowance for Loan Losses
Individually evaluated	$	882	$	25	$	50	$	957
Collectively evaluated		3,613		1,332		845		5,790
Total	$	4,495	$	1,357	$	895	$	6,747

The following tables provide additional detail of impaired loans broken out according to class as of March 31, 2016 and December 31, 2015. The recorded investment included in the following tables represent customer balances net of any partial charge-offs recognized on the loans, net of any deferred fees and costs. As nearly all of our impaired loans at March 31, 2016, are on nonaccrual status, recorded investment excludes any insignificant amount of accrued interest receivable on loans 90-days or more past due and still accruing. The unpaid balance represents the recorded balance prior to any partial charge-offs.

March 31, 2016

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	-	$	-	$	-	$	-	$	-
Commercial real estate		4,558		4,597		-		5,174		7
Consumer real estate		212		212		-		218		-
Consumer installment		6		6		-		6		-
Total	$	4,776	$	4,815	$	-	$	5,398	$	7
Impaired loans with a related allowance:
Commercial installment	$	273	$	273	$	62	$	290	$	3
Commercial real estate		2,957		2,957		452		2,942		31
Consumer real estate		829		829		428		835		4
Consumer installment		31		31		25		31		-
Total	$	4,090	$	4,090	$	967	$	4,098	$	38
Total Impaired Loans:
Commercial installment	$	273	$	273	$	62	$	290	$	3
Commercial real estate		7,515		7,554		452		8,116		38
Consumer real estate		1,041		1,041		428		1,053		4
Consumer installment		37		37		25		37		-
Total Impaired Loans	$	8,866	$	8,905	$	967	$	9,496	$	45

On January 1, 2015, the Company adopted Accounting Standards Update (ASU) 2014-4, Receivables – Troubled Debt Restructuring by Creditors. As of March 31, 2016, the Company had $1.0 million of foreclosed residential real estate property obtained by physical possession and $.5 million of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process according to local jurisdictions.

December 31, 2015

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	-	$	-	$	-	$	2	$	-
Commercial real estate		5,790		5,828		-		5,099		50
Consumer real estate		223		223		-		205		-
Consumer installment		7		7		-		8		-
Total	$	6,020	$	6,058	$	-	$	5,314	$	50
Impaired loans with a related allowance:
Commercial installment	$	306	$	306	$	50	$	264	$	14
Commercial real estate		2,927		2,927		444		2,891		132
Consumer real estate		842		842		438		1,152		15
Consumer installment		32		32		25		31		-
Total	$	4,107	$	4,107	$	957	$	4,338	$	161
Total Impaired Loans:
Commercial installment	$	306	$	306	$	50	$	266	$	14
Commercial real estate		8,717		8,755		444		7,990		182
Consumer real estate		1,065		1,065		438		1,357		15
Consumer installment		39		39		25		39		-
Total Impaired Loans	$	10,127	$	10,165	$	957	$	9,652	$	211

Loans acquired with deteriorated credit quality are those purchased in the BCB Holding Company, Inc. acquisition. These loans were recorded at estimated fair value at the acquisition date with no carryover of the related allowance for loan losses. The acquired loans were segregated as of the acquisition date between those considered to be performing (acquired non-impaired loans) and those with evidence of credit deterioration (acquired impaired loans). Acquired loans are considered impaired if there is evidence of credit deterioration and if it is probable, at acquisition, all contractually required payments will not be collected.

The following table presents information regarding the contractually required payments receivable, cash flows expected to be collected and the estimated fair value of loans acquired in the BCB acquisition as of July 1, 2014, the closing date of the transaction: 

	(In thousands)
	Commercial, financial and agricultural		Mortgage- Commercial		Mortgage- Residential		Commercial and other		Total
Contractually required payments	$	1,519	$	29,648	$	7,933	$	976	$	40,076
Cash flows expected to be collected		1,570		37,869		9,697		1,032		50,168
Fair value of loans acquired		1,513		28,875		7,048		957		38,393

Total outstanding acquired impaired loans were $2,981,011 as of March 31, 2016 and $3,039,840 as of December 31, 2015. The outstanding balance of these loans is the undiscounted sum of all amounts, including amounts deemed principal, interest, fees, penalties, and other under the loans, owed at the reporting date, whether or not currently due and whether or not any such amounts have been charged off.

Changes in the carrying amount and accretable yield for acquired impaired loans were as follows at March 31, 2016 and December 31, 2015: (in thousands)

	March 31, 2016						December 31, 2015
	Accretable Yield			Carrying Amount of Loans			Accretable Yield			Carrying Amount of Loans
Balance at beginning of period	$	1,219		$	1,821		$	1,417		$	2,063
Accretion		(21	)		21			(198	)		198
Payments received, net		-			(59	)		-			(440	)
Balance at end of period	$	1,198		$	1,783		$	1,219		$	1,821

The following tables provide detail of troubled debt restructurings (TDRs) at March 31, 2016.

For the Three Months Ending March 31, 2016

			Outstanding
	Outstanding		Recorded
	Recorded		Investment				Interest
	Investment		Post-		Number of		Income
	Pre-Modification		Modification		Loans		Recognized
Commercial installment	$	-	$	-		-	$	-
Commercial real estate		296		289		1		4
Consumer real estate		-		-		-		-
Consumer installment		-		-		-		-
Total	$	296	$	289		1	$	4

There was one TDR that was modified during the three month period ended March 31, 2016.

The balance of troubled debt restructurings (TDRs)was $6.8 million at March 31, 2016 and $6.9 million at December 31, 2015, respectively, calculated for regulatory reporting purposes. As of March 31, 2016, the company had no additional amount committed on any loan classified as troubled debt restructuring.

The following tables set forth the amounts and past due status for the Bank TDRs at March 31, 2016 and December 31, 2015:

(in thousands)

	March 31, 2016
	Current Loans		Past Due 30-89		Past Due 90 days and still accruing		Non- accrual		Total
Commercial installment	$	199	$	-	$	-	$	50	$	249
Commercial real estate		2,555		-		-		3,598		6,153
Consumer real estate		254		-		-		133		387
Consumer installment		7		-		-		28		35
Total	$	3,015	$	-	$	-	$	3,809	$	6,824
Allowance for loan losses	$	119	$	-	$	-	$	132	$	251

(in thousands)

	December 31, 2015
	Current Loans		Past Due 30-89		Past Due 90 days and still accruing		Non- accrual		Total
Commercial installment	$	206	$	-	$	-	$	50	$	256
Commercial real estate		1,823		-		-		2,934		4,757
Consumer real estate		721		-		-		1,135		1,856
Consumer installment		8		-		-		29		37
Total	$	2,758	$	-	$	-	$	4,148	$	6,906
Allowance for loan losses	$	106	$	-	$	-	$	197	$	303

The following tables summarize by class our loans classified as past due in excess of 30 days or more in addition to those loans classified as non-accrual:

	March 31, 2016
	(In thousands)
	Past Due 30 to 89 Days		Past Due 90 Days or More and Still Accruing		Non- Accrual		Total Past Due and Non- Accrual		Total Loans
Real Estate-construction	$	742	$	7	$	2,630	$	3,379	$	100,386
Real Estate-mortgage		3,215		523		2,144		5,882		276,272
Real Estate-non farm non residential		608		98		973		1,679		270,085
Commercial		50		-		74		124		126,381
Lease Financing Rec.		-		-		-		-		2,645
Obligations of states and subdivisions		-		-		-		-		7,034
Consumer		48		-		30		78		14,961
Total	$	4,663	$	628	$	5,851	$	11,142	$	797,764

	December 31, 2015
	(In thousands)
	Past Due 30 to 89 Days		Past Due 90 Days or More and Still Accruing		Non- Accrual		Total Past Due and Non- Accrual		Total Loans
Real Estate-construction	$	311	$	-	$	2,956	$	3,267	$	99,161
Real Estate-mortgage		3,339		29		2,055		5,423		272,180
Real Estate-non farm non residential		736		-		2,225		2,961		253,309
Commercial		97		-		100		197		129,197
Lease Financing Rec.		-		-		-		-		2,650
Obligations of states and subdivisions		-		-		-		-		969
Consumer		70		-		32		102		15,049
Total	$	4,553	$	29	$	7,368	$	11,950	$	772,515

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 uses the following definitions for risk ratings, which are consistent with the definitions used in supervisory guidance:

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 Company’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.

As of March 31, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk categories of loans by class of loans (excluding mortgage loans held for sale) were as follows:

($ in thousands)

March 31, 2016

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	453,767	$	170,711	$	18,078	$	137,949	$	780,505
Special Mention		794		151		-		248		1,193
Substandard		14,777		1,493		105		147		16,522
Doubtful		-		324		-		44		368
Subtotal		469,338		172,679		18,183		138,388		798,588
Less:
Unearned discount		410		64		-		350		824
Loans, net of unearned discount	$	468,928	$	172,615	$	18,183	$	138,038	$	797,764

December 31, 2015

							Commercial,
	Real Estate Commercial		Real Estate Mortgage		Installment and Other		Financial and Agriculture		Total
Pass	$	434,638	$	167,394	$	19,556	$	132,101	$	753,689
Special Mention		681		153		-		168		1,002
Substandard		16,655		1,453		75		178		18,361
Doubtful		-		327		-		-		327
Subtotal		451,974		169,327		19,631		132,447		773,379
Less:
Unearned discount		448		76		-		340		864
Loans, net of  unearned discount	$	451,526	$	169,251	$	19,631	$	132,107	$	772,515

NOTE H — SECURITIES

The following disclosure of the estimated fair value of financial instruments is made in accordance with authoritative guidance. The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is necessarily required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

A summary of the amortized cost and estimated fair value of available-for-sale securities and held-to-maturity securities at March 31, 2016, follows:

($ in thousands)

	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	16,442	$	200	$	-	$	16,642
Tax-exempt and taxable obligations of states and municipal subdivisions		94,487		3,118		11		97,594
Mortgage-backed securities		113,877		1,914		58		115,733
Corporate obligations		23,345		85		1,227		22,203
Other		1,255		-		301		954
Total	$	249,406	$	5,317	$	1,597	$	253,126
Held-to-maturity securities:
Mortgage-backed securities	$	851	$	26	$	-	$	877
Taxable obligations of states and municipal subdivisions		6,000		1,864		-		7,864
Total	$	6,851	$	1,890	$	-	$	8,741

NOTE I — ALLOWANCE FOR LOAN LOSSES

The Company has developed policies and procedures for evaluating the overall quality of its credit portfolio and the timely identification of potential problem loans. Management’s judgment as to the adequacy of the allowance is based upon a number of assumptions which it believes to be reasonable, but which may not prove to be accurate, particularly given the Company’s growth and the economy. Thus, there can be no assurance that charge-offs in future periods will not exceed the allowance for loan losses or that additional increases in the loan loss allowance will not be required.

The Company’s allowance consists of two parts. The first part is determined in accordance with authoritative guidance regarding contingencies. The Company’s determination of this part of the allowance is based upon quantitative and qualitative factors. A loan loss history based upon the most recent 72 months loss history is utilized in determining the appropriate allowance. Historical loss factors are determined by risk rated loans by loan type. These historical loss factors are applied to the loans by loan type to determine an indicated allowance. The loss factors of peer groups are considered in the determination of the allowance and are used to assist in the establishment of a long-term loss history for areas in which this data is unavailable and incorporated into the qualitative factors to be considered. The historical loss factors may also be modified based upon other qualitative factors including but not limited to local and national economic conditions, trends of delinquent loans, changes in lending policies and underwriting standards, concentrations, and management’s knowledge of the loan portfolio. These factors require judgment upon the part of management and are based upon state and national economic reports received from various institutions and agencies including the Federal Reserve Bank, United States Bureau of Economic Analysis, Bureau of Labor Statistics, meetings with the Company’s loan officers and loan committee, and data and guidance received or obtained from the Company’s regulatory authorities.

The second part of the allowance is determined in accordance with authoritative guidance regarding loan impairment. Impaired loans are determined based upon a review by internal loan review and senior management.

The sum of the two parts constitutes management’s best estimate of an appropriate allowance for loan losses. When the estimated allowance is determined, it is presented to the Company’s audit committee for review and approval on a quarterly basis.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. 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.

Impairment is measured on a loan by loan basis, and a specific allowance is assigned to each loan determined to be impaired. Impaired loans not deemed collateral dependent are analyzed according to the ultimate repayment source, whether that is cash flow from the borrower, guarantor or some other source of repayment. Impaired loans are deemed collateral dependent if, in the Company’s opinion, the ultimate source of repayment will be generated from the liquidation of collateral.

The Company discontinues accrual of interest on loans when management believes, after considering economic and business conditions and collection efforts, that a borrower’s financial condition is such that the collection of interest is doubtful. Generally, the Company will place a delinquent loan in nonaccrual status when the loan becomes 90 days or more past due. At the time a loan is placed in nonaccrual status, all interest which has been accrued on the loan but remains unpaid is reversed and deducted from earnings as a reduction of reported interest income. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain.

NOTE J – SUBSEQUENT EVENTS

Subsequent events have been evaluated by management through the date the financial statements were issued. The Company has experienced recoveries on a previously charged-off loan of $941,000. In 2015, $722,000 was recovered and a third and final installment of $219,000 is expected during 2016.

NOTE K – RECLASSIFICATION

Certain amounts in the 2015 financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation.

ITEM NO. 2 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FINANCIAL CONDITION

The following discussion contains "forward-looking statements" relating to, without limitation, future economic performance, plans and objectives of management for future operations, and projections of revenues and other financial items that are based on the beliefs of the Company's management, as well as assumptions made by and information currently available to the Company's management. The words "expect," "estimate," "anticipate," and "believe," as well as similar expressions, are intended to identify forward-looking statements. The Company's actual results may differ materially from the results discussed in the forward-looking statements, and the Company's operating performance each quarter is subject to various risks and uncertainties that are discussed in detail in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section in the Company's most recently filed Form 10-K.

The First represents the primary asset of the Company. The First reported total assets of $1.2 billion at March 31, 2016, compared to $1.1 billion at December 31, 2015, an increase of $0.1 billion. Loans increased $25.2 million, or 3.3%, during the first three months of 2016. Deposits at March 31, 2016, totaled $1.0 billion compared to $916.7 million at December 31, 2015. For the three month period ended March 31, 2016, The First reported net income of $2.9 million compared to $2.2 million for the three months ended March 31, 2015.

NONPERFORMING ASSETS AND RISK ELEMENTS. Diversification within the loan portfolio is an important means of reducing inherent lending risks. At March 31, 2016, The First had no concentrations of ten percent or more of total loans in any single industry or any geographical area outside its immediate market areas.

At March 31, 2016, The First had loans past due as follows:

	($ In Thousands)
Past due 30 through 89 days	$	4,663
Past due 90 days or more and still accruing		628

The accrual of interest is discontinued on loans which become ninety days past due (principal and/or interest), unless the loans are adequately secured and in the process of collection. Nonaccrual loans totaled $5.9 million at March 31, 2016, a decrease of $1.5 million from December 31, 2015. Any other real estate owned is carried at fair value, determined by an appraisal, less estimated costs to sell. Other real estate owned totaled $4.4 million at March 31, 2016. A loan is classified as a restructured loan when the following two conditions are present: First, the borrower is experiencing financial difficulty and second, the creditor grants a concession it would not otherwise consider but for the borrower’s financial difficulties. At March 31, 2016, the Bank had $6.8 million in loans that were modified as troubled debt restructurings, of which $3.0 million were performing as agreed with modified terms.

LIQUIDITY AND CAPITAL RESOURCES

Liquidity is adequate with cash and cash equivalents of $96.0 million as of March 31, 2016. In addition, loans and investment securities repricing or maturing within one year or less exceeded $218.7 million at March 31, 2016. Approximately $156.0 million in loan commitments could fund within the next three months and other commitments, primarily standby letters of credit, totaled $1.1 million at March 31, 2016.

There are no known trends or any known commitments or uncertainties that will result in The First’s liquidity increasing or decreasing in a significant way.

Total consolidated equity capital at March 31, 2016, was $107.2 million, or approximately 8.6% of total assets. The Company currently has adequate capital positions to meet the minimum capital requirements for all regulatory agencies. The Company’s capital ratios as of March 31, 2016, were as follows:

Tier 1 leverage	8.4	%
Tier 1 risk-based	10.7	%
Total risk-based	11.4	%
Common equity Tier 1	7.8	%

On June 30, 2006, The Company issued $4,124,000 of floating rate junior subordinated deferrable interest debentures to The First Bancshares Statutory Trust 2 in which the Company owns all of the common equity. The debentures are the sole asset of the Trust. The Trust issued $4,000,000 of Trust Preferred Securities (TPSs) to investors. The Company’s obligations under the debentures and related documents, taken together, constitute a full and unconditional guarantee by the Company of the Trust’s obligations under the preferred securities. The preferred securities are redeemable by the Company at its option. The preferred securities must be redeemed upon maturity of the debentures in 2036. Interest on the preferred securities is the three month London Interbank Offer Rate (LIBOR) plus 1.65% and is payable quarterly. The terms of the subordinated debentures are identical to those of the preferred securities. On July 27, 2007, The Company issued $6,186,000 of floating rate junior subordinated deferrable interest debentures to The First Bancshares Statutory Trust 3 in which the Company owns all of the common equity. The debentures are the sole asset of Trust 3. The Trust issued $6,000,000 of Trust Preferred Securities (TPSs) to investors. The Company’s obligations under the debentures and related documents, taken together, constitute a full and unconditional guarantee by the Company of the Trust’s obligations under the preferred securities. The preferred securities are redeemable by the Company at its option. The preferred securities must be redeemed upon maturity of the debentures in 2037. Interest on the preferred securities is the three month LIBOR plus 1.40% and is payable quarterly. The terms of the subordinated debentures are identical to those of the preferred securities. In accordance with the authoritative guidance, the trusts are not included in the consolidated financial statements.

RESULTS OF OPERATIONS

The Company had a consolidated net income of $2,604,000 for the three months ended March 31, 2016, compared with consolidated net income of $2,029,000 for the same period last year.

Net interest income increased to $9.7 million from $8.9 million for the three months ended March 31, 2016, or an increase of 9.0% as compared to the same period in 2015. Quarterly average earning assets at March 31, 2016, increased $63.2 million, or 6.2% and quarterly average interest-bearing liabilities also increased $69.6 million or 8.4% when compared to March 31, 2015.

Noninterest income for the three months ended March 31, 2016, was $2,483,000 compared to $1,850,000 for the same period in 2015, reflecting an increase of $633,000 or 34.2%. This increase consisted mainly of increased mortgage income and gain on conversion of our debit card provider.

The provision for loan losses was $190,000 for the three months ended March 31, 2016 compared with $150,000 for the same period in 2015. The allowance for loan losses of $7.0 million at March 31, 2016 (approximately .88% of total loans and 1.10% of loans including valuation accounting adjustments on acquired loans) is considered by management to be adequate to cover losses inherent in the loan portfolio. The level of this allowance is dependent upon a number of factors, including the total amount of past due loans, general economic conditions, and management’s assessment of potential losses. This evaluation is inherently subjective as it requires estimates that are susceptible to significant change. Ultimately, losses may vary from current estimates and future additions to the allowance may be necessary.

Thus, there can be no assurance that charge-offs in future periods will not exceed the allowance for loan losses or that additional increases in the loan loss allowance will not be required. Management evaluates the adequacy of the allowance for loan losses quarterly and makes provisions for loan losses based on this evaluation.

Noninterest expense increased by $0.6 million or 7.4% for the three months ended March 31, 2016, when compared with the same period in 2015. The largest increase was related to salaries and benefits of $523,000 of which $319,000 can be attributed to acquisition of The Mortgage Connection, LLC.

ITEM NO. 3. CONTROLS AND PROCEDURES

As of March 31, 2016, (the “Evaluation Date”), we carried out an evaluation, under the supervision of and with the participation of our Chief Executive Officer and our Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934, as amended. Based on this evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures are effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms.

There have been no changes, significant or otherwise, in our internal controls over financial reporting that occurred during the quarter ended March 31, 2016, that have materially affected, or are reasonably likely to affect, our internal control over financial reporting.

ITEM NO. 4. RECENT ACCOUNTING PRONOUNCEMENTS

In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) NO. 2016-09 “Compensation (Topic 718) – Improvements to Employee Share-Based Payment Accounting.” ASU 2016-09 requires all income tax effects of awards to be recognized in the income statement when the awards vest or are settled. It also allows an employer to repurchase more of an employee’s shares than it can today for tax withholding purposes without triggering liability accounting and to make a policy election for forfeitures as they occur. The guidance is effective for public business entities for fiscal years beginning after December 15, 2016, and interim periods within those years. Early adoption is permitted. The Company is assessing the impact of ASU 2016-09 on its accounting and disclosures.

In February 2016 the FASB issued ASU NO. 2016-02 “Leases (Topic 842).” ASU 2016-02 establishes a right of use model that requires a lessee to record a right of use asset and a lease liability for all leases with terms longer than 12 months. Leases will be classified as either finance or operating with classification affecting the pattern of expense recognition in the income statement. For lessors, the guidance modifies the classification criteria and the accounting for sales-type and direct financing leases. A lease will be treated as sale if it transfers all of the risks and rewards, as well as control of the underlying asset, to the lessee. If risks and rewards are conveyed without the transfer of control, the lease is treated as a financing. If the lessor doesn’t convey risks and rewards or control, an operating lease results. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years for public business entities. Entities are required to use a modified retrospective approach for leases that exist or are entered into after the beginning of the earliest comparative period in the financial statements, with certain practical expedients available. Early adoption is permitted. The Company is assessing the impact of ASU 2016-02 on its accounting and disclosures.

	PART II — OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS
	None
ITEM 1A.	RISK FACTORS
	There are no material changes in the Company’s risk factors since December 31, 2015.  Please refer to the Annual Report on Form 10-K of The First Bancshares, Inc., filed with the Securities and Exchange Commission on March 30, 2016.
ITEM 2.	DEFAULTS UPON SENIOR SECURITIES
	Not Applicable
ITEM 3.	REMOVED AND RESERVED
ITEM 4.	OTHER INFORMATION
	Not Applicable
ITEM 5.	EXHIBITS
	(a)  Exhibits

Exhibit No.
2.1	Agreement and Plan of merger, dated as of March 2, 2014, between The First Bancshares, Inc. and BCB Holding Company, Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K filed on 3-7-2014)
2.1	Acquisition Agreement, dated as of January 31, 2013, between The First Bancshares, Inc. and First Baldwin Bancshares, Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K filed on 2-1-13) and First Amendment to Acquisition Agreement, dated as of March 15, 2013, between First Bancshares, Inc. and First Baldwin Bancshares, Inc. (incorporated by reference to Exhibit 2.1 to the Company’s Form 8-K filed on 3-20-13)

3.1	Articles of Amendment and Certificate of Designation, Preferences and Rights of Series D Nonvoting Convertible Preferred Stock dated as of March 18, 2013 (incorporated by reference to Exhibit 3.1 of the Company’s Form 8-K filed on 3-21-13).
3.2	Restated Articles of Incorporation dated as of March 21, 2013 (incorporated by reference to Exhibit 3.2 of the Company’s Form 8-K filed on 3-21-13).
4.1	Certificate of Designation of Series D Nonvoting Convertible Preferred Stock, as filed with the Mississippi Secretary of State on March 20, 2013 (incorporated by reference to Exhibit 4.1 to the Company’s Form 8-K filed on March 25, 2013).
10.1	Form of Securities Purchase Agreement between the Company and each of the Purchasers, dated as of March 20, 2013 (incorporated by reference to Exhibit 10.1 to the Company’s Form 8-K filed on March 25, 2013)
10.2	Form of Registration Rights Agreement between the Company and each of the Purchasers, dated as of March 20, 2013 (incorporated by reference to Exhibit 10.2 to the Company’s Form 8-K filed on March 25, 2013)
31.1	Certification of principal executive officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of principal financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of principal 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 principal 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

(b) The Company filed two reports on Form 8-K during the quarter ended March 31, 2016.

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.

	THE FIRST BANCSHARES, INC.
	(Registrant)
	/s/ M. RAY (HOPPY)COLE, JR.
May 16, 2016	M. Ray (Hoppy) Cole, Jr.
(Date)	Chief Executive Officer
	/s/  DEEDEE LOWERY
May 16, 2016	DeeDee Lowery
(Date)	Executive Vice President and Chief Financial Officer

EX-31.1

Exhibit 31.1

Certificate pursuant to Rule 13a-14(a) or 15d-14(a) of Securities Exchange Act of 1934 as adopted pursuant to section 302 of Sarbanes-Oxley Act of 2002-Chief Executive Officer

I, M. Ray (Hoppy) Cole, Jr., certify that:

1. I have reviewed this quarterly report on Form 10-Q of The First Bancshares, 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 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 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.

Date:	May 16, 2016	/s/ M. Ray (Hoppy)Cole, Jr.
		M. Ray (Hoppy) Cole, Jr. Chief Executive Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The First Bancshares, Inc., and will be retained by The First Bancshares, Inc., and furnished to the Securities and Exchange Commission or its staff upon request.

EX-31.2

Exhibit 31.2

Certificate pursuant to Rule 13a-14(a) or 15d-14(a) of Securities Exchange Act of 1934 as adopted pursuant to section 302 of Sarbanes-Oxley Act of 2002-Principal Accounting and Financial Officer

I, DeeDee Lowery, certify that:

1. I have reviewed this quarterly report on Form 10-Q of The First Bancshares, 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 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 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.

Date:	May 16, 2016	/s/ DeeDee Lowery
		DeeDee Lowery
		Executive Vice President and Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The First Bancshares, Inc., and will be retained by The First Bancshares, Inc., and furnished to the Securities and Exchange Commission or its staff upon request.

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 on Form 10-Q, filed pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, of The First Bancshares, Inc. (the "Company") for the period ended March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, M. Ray (Hoppy) Cole, Jr., the Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; 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/ M. Ray (Hoppy) Cole, Jr.
Name:	M. Ray (Hoppy) Cole, Jr.
Title:	Chief Executive Officer
Date:	May 16, 2016

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The First Bancshares, Inc., and will be retained by The First Bancshares, Inc., and furnished to the Securities and Exchange Commission or its staff upon request.

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 on Form 10-Q, filed pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, of The First Bancshares, Inc. (the "Company") for the period ended March 31, 2016, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, DeeDee Lowery, the Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Sec. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

1) the Report fully complies with the requirements of Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934, as amended; 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/ DeeDee Lowery
Name:	DeeDee Lowery
Title:	Executive Vice President and Chief Financial Officer
Date:	May 16, 2016

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to The First Bancshares, Inc., and will be retained by The First Bancshares, Inc., and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document And Entity Information	3 Months Ended
	Mar. 31, 2016 shares
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q1
Entity Registrant Name	FIRST BANCSHARES INC /MS/
Entity Central Index Key	0000947559
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Trading Symbol	FBMS
Entity Common Stock, Shares Outstanding	5,458,508

XML

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
ASSETS
Cash and due from banks	$ 31,957	$ 23,635
Interest-bearing deposits with banks	37,316	17,303
Federal funds sold	26,692	321
Total cash and cash equivalents	95,965	41,259
Securities held-to-maturity, at amortized cost	6,851	7,092
Securities available-for-sale, at fair value	253,126	239,732
Other securities	9,570	8,135
Total securities	269,547	254,959
Loans held for sale	6,095	3,974
Loans	797,764	772,515
Allowance for loan losses	(6,982)	(6,747)
Loans, net	796,877	769,742
Premises and equipment	33,353	33,623
Interest receivable	4,266	3,953
Cash surrender value of life insurance	14,971	14,872
Goodwill	13,776	13,776
Other real estate owned	4,363	3,083
Other assets	8,833	9,864
TOTAL ASSETS	1,241,951	1,145,131
Deposits:
Noninterest-bearing	194,433	189,445
Interest-bearing	846,672	727,250
TOTAL DEPOSITS	1,041,105	916,695
Interest payable	236	246
Borrowed funds	78,976	110,321
Subordinated debentures	10,310	10,310
Other liabilities	4,127	4,123
TOTAL LIABILITIES	1,134,754	1,041,695
Stockholders' Equity:
Preferred stock, no par value, $1,000 per share liquidation, 10,000,000 shares authorized; 17,123 issued and outstanding at March 31, 2016 and December 31, 2015, respectively	17,123	17,123
Common stock, par value $1 per share, 20,000,000 shares authorized and 5,458,508 shares issued at March 31,2016; and 5,403,159 shares issued at December 31, 2015, respectively	5,459	5,403
Additional paid-in capital	44,668	44,650
Retained earnings	37,939	35,625
Accumulated other comprehensive income	2,472	1,099
Treasury stock, at cost, 26,494 shares at March 31, 2016 and at December 31, 2015	(464)	(464)
TOTAL STOCKHOLDERS’ EQUITY	107,197	103,436
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$ 1,241,951	$ 1,145,131

XML

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Preferred stock, no par value	$ 0	$ 0
Preferred stock, per share liquidation	$ 1,000	$ 1,000
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, issued	17,123	17,123
Preferred stock, outstanding	17,123	17,123
Common stock, par value	$ 1	$ 1
Common stock, shares authorized	20,000,000	20,000,000
Common stock, shares issued	5,458,508	5,403,159
Treasury stock, shares	26,494	26,494

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
INTEREST INCOME:
Interest and fees on loans	$ 9,035	$ 8,148
Interest and dividends on securities:
Taxable interest and dividends	1,072	1,011
Tax exempt interest	460	501
Interest on federal funds sold	30	23
TOTAL INTEREST INCOME	10,597	9,683
INTEREST EXPENSE:
Interest on deposits	701	632
Interest on borrowed funds	221	172
TOTAL INTEREST EXPENSE	922	804
NET INTEREST INCOME	9,675	8,879
PROVISION FOR LOAN LOSSES	190	150
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	9,485	8,729
OTHER INCOME:
Service charges on deposit accounts	1,281	1,051
Other service charges and fees	1,202	799
TOTAL OTHER INCOME	2,483	1,850
OTHER EXPENSES:
Salaries and employee benefits	5,149	4,626
Occupancy and equipment	1,073	1,109
Other	2,173	2,083
TOTAL OTHER EXPENSES	8,395	7,818
INCOME BEFORE INCOME TAXES	3,573	2,761
INCOME TAXES	969	732
NET INCOME	2,604	2,029
PREFERRED STOCK ACCRETION AND DIVIDENDS	85	85
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS	$ 2,519	$ 1,944
NET INCOME APPLICABLE TO COMMON STOCKHOLDERS:
BASIC	$ 0.47	$ 0.36
DILUTED	0.46	0.36
DIVIDENDS PER SHARE - COMMON	$ 0.0375	$ 0.0375

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net income per consolidated statements of income	$ 2,604	$ 2,029
Other Comprehensive Income:
Unrealized holding gains arising during the period on available-for-sale securities	2,071	1,124
Unrealized holding gains on loans held for sale	12	16
Income tax expense	(710)	(388)
Other Comprehensive Income	1,373	752
Comprehensive income	$ 3,977	$ 2,781

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Common Stock	Preferred Stock	Stock Warrants	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock
Balance at Dec. 31, 2014	$ 96,216	$ 5,343	$ 17,123	$ 284	$ 44,137	$ 27,975	$ 1,818	$ (464)
Net income	2,029	0	0	0	0	2,029	0	0
Other comprehensive income	752	0	0	0	0	0	752	0
Dividends on preferred stock	(85)	0	0	0	0	(85)	0	0
Dividends on common stock, $0.0375 per share	(202)	0	0	0	0	(202)	0	0
Repurchase of restricted stock for payment of taxes	(92)	(6)	0	0	(86)	0	0	0
Restricted stock grant	0	67	0	0	(67)	0	0	0
Compensation expense	184	0	0	0	184	0	0	0
Reversal of 2,514 common shares for BCB Holdings	(36)	(3)	0	0	(33)	0	0	0
Balance at Mar. 31, 2015	98,766	5,401	17,123	284	44,135	29,717	2,570	(464)
Balance at Dec. 31, 2015	103,436	5,403	17,123	0	44,650	35,625	1,099	(464)
Net income	2,604	0	0	0	0	2,604	0	0
Other comprehensive income	1,373	0	0	0	0	0	1,373	0
Dividends on preferred stock	(85)	0	0	0	0	(85)	0	0
Dividends on common stock, $0.0375 per share	(205)	0	0	0	0	(205)	0	0
Repurchase of restricted stock for payment of taxes	(105)	(5)	0	0	(100)	0	0	0
Restricted stock grant	0	61	0	0	(61)	0	0	0
Compensation expense	179	0	0	0	179	0	0	0
Balance at Mar. 31, 2016	$ 107,197	$ 5,459	$ 17,123	$ 0	$ 44,668	$ 37,939	$ 2,472	$ (464)

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CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Dividends on common stock, per Share	$ 0.0375	$ 0.0375
Reversal of common shares		2,514

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 2,604	$ 2,029
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion	870	871
Provision for loan losses	190	150
Loss on sale/writedown of ORE	62	94
Gain on sale of bank premises	0	(119)
Restricted stock expense	179	184
Increase in cash value of life insurance	(99)	(106)
Federal Home Loan Bank stock dividends	(2)	(1)
Changes in:
Interest receivable	(313)	(291)
Loans held for sale, net	(2,109)	462
Interest payable	(10)	(41)
Other, net	365	(1,650)
NET CASH PROVIDED BY OPERATING ACTIVITIES	1,737	1,582
CASH FLOWS FROM INVESTING ACTIVITIES:
Maturities, calls and paydowns of available-for-sale and held-to-maturity securities	9,150	12,188
Purchases of securities available-for-sale and held-to-maturity securities	(20,541)	(3,520)
Net purchases of other securities	(1,433)	0
Net increase in loans	(26,736)	(12,650)
Proceeds from sale of bank premises	0	949
Net increase in premises and equipment	(151)	(197)
NET CASH USED IN INVESTING ACTIVITIES	(39,711)	(3,230)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in deposits	124,410	91,915
Net decrease in borrowed funds	(31,345)	(40,004)
Dividends paid on common stock	(195)	(194)
Dividends paid on preferred stock	(85)	(85)
Repurchase of restricted stock for payment of taxes	(105)	(92)
Repurchase of shares issued in BCB acquisition	0	(36)
NET CASH PROVIDED BY FINANCING ACTIVITIES	92,680	51,504
NET INCREASE IN CASH	54,706	49,856
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD	41,259	44,618
CASH AND CASH EQUIVALENTS AT END OF PERIOD	95,965	94,474
SUPPLEMENTAL DISCLOSURES:
CASH PAYMENTS FOR INTEREST	932	892
CASH PAYMENTS FOR INCOME TAXES	236	2,206
LOANS TRANSFERRED TO OTHER REAL ESTATE	1,554	506
ISSUANCE OF RESTRICTED STOCK GRANTS	$ 61	$ 67

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BASIS OF PRESENTATION

3 Months Ended

Mar. 31, 2016

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

NOTE A — BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and with the instructions to Form 10-Q of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended March 31, 2016, are not necessarily indicative of the results that may be expected for the year ending December 31, 2016. For further information, please refer to the consolidated financial statements and footnotes thereto included in the Company's Form 10-K for the year ended December 31, 2015.

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SUMMARY OF ORGANIZATION

3 Months Ended

Mar. 31, 2016

Summary Of Organization Abstract [Abstract]

SUMMARY OF ORGANIZATION

NOTE B — SUMMARY OF ORGANIZATION

The First Bancshares, Inc., Hattiesburg, Mississippi (the "Company"), was incorporated June 23, 1995, under the laws of the State of Mississippi for the purpose of operating as a bank holding company. The Company’s primary asset is its interest in its wholly-owned subsidiary, The First, A National Banking Association (the “Bank”).

At March 31, 2016, the Company had approximately $1.2 billion in assets, $796.9 million in net loans, $1.0 billion in deposits, and $107.2 million in stockholders' equity. For the three months ended March 31, 2016, the Company reported net income of $2.6 million ($2.5 million applicable to common stockholders).

In the first quarter of 2016, the Company declared and paid a dividend of $.0375 per common share.

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BUSINESS COMBINATION

3 Months Ended

Mar. 31, 2016

Business Combination, Description [Abstract]

BUSINESS COMBINATION

NOTE C – BUSINESS COMBINATION

The Mortgage Connection

On December 14, 2015, the Company completed the acquisition of The Mortgage Connection, a Mississippi corporation, which included two loan production offices located in Madison and Brandon, Mississippi.

In connection with the acquisition, the Company recorded $1.5 million of goodwill.

The amounts of the acquired identifiable assets and liabilities as of the acquisition date were as follows (dollars in thousands):

Purchase price:
Cash	$	844
Payable		800
Total purchase price		1,644
Identifiable assets:
Intangible		100
Personal property		44
Total assets		144
Liabilities and equity:
Net assets acquired	$	144
Goodwill resulting from acquisition	$	1,500

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PREFERRED STOCK AND WARRANT

3 Months Ended

Mar. 31, 2016

Preferred Stock And Warrant [Abstract]

PREFERRED STOCK AND WARRANT

NOTE D – PREFERRED STOCK AND WARRANT

Pursuant to the terms of the letter agreement between the Company and the United States Department of the Treasury (“Treasury”), the Company issued 17,123 CDCI Preferred Shares.

The Letter Agreement contains limitations on the payment of dividends on the common stock to no more than 100% of the aggregate per share dividend and distributions for the immediate prior fiscal year (dividends of $0.15 per share were declared and paid in 2011-2015) and on the Company’s ability to repurchase its common stock in the event of a non-payment of our dividend, and continues to subject the Company to certain of the executive compensation limitations included in the Emergency Economic Stabilization Act of 2008 (EESA), as previously disclosed by the Company. The CDCI Preferred Shares entitle the holder to an annual dividend of 2% for 8 years of the liquidation value of the shares, payable quarterly in arrears.

Pursuant to the terms of the letter agreement between the Company and the United States Department of the Treasury, the Company redeemed the warrant to purchase up to 54,705 shares of the Company’s common stock. In connection with this redemption, on May 13, 2015, the Company paid Treasury an aggregate redemption price of $302,410.

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EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

NOTE E — EARNINGS APPLICABLE TO COMMON STOCKHOLDERS

Basic per share data is calculated based on the weighted-average number of common shares outstanding during the reporting period. Diluted per share data includes any dilution from potential common stock outstanding, such

as stock options.

	For the Three Months Ended
	March 31, 2016
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	2,519,000		5,415,339	$	0.47
Effect of dilutive shares:
Restricted stock grants				63,364
Diluted per share	$	2,519,000		5,478,703	$	0.46

	For the Three Months Ended
	March 31, 2015
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	1,944,000		5,358,576	$	0.36
Effect of dilutive shares:
Restricted stock grants				56,524
Diluted per share	$	1,944,000		5,415,100	$	0.36

The Company granted 61,247 shares of restricted stock in the first quarter of 2016.

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FAIR VALUE OF ASSETS AND LIABILITIES

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

FAIR VALUE OF ASSETS AND LIABILITIES

NOTE F — FAIR VALUE OF ASSETS AND LIABILITIES

The Company groups its financial assets measured at fair value in three levels, based on the markets in which the assets are traded and the reliability of the assumptions used to determine fair value. These levels are:

Level 1:	Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.
Level 2:	Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third party pricing services for identical or comparable assets or liabilities which use 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 for substantially the full term of the assets and liabilities.
Level 3:	Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis and recognized in the accompanying balance sheets.

Available-for-Sale Securities

The fair value of available-for-sale securities is determined by various valuation methodologies. Where quoted market prices are available in an active market, securities are classified within Level 1. If quoted market prices are not available, then fair values are estimated by using pricing models or quoted prices of securities with similar characteristics. Level 2 securities include U.S. Treasury securities, obligations of U.S. government corporations and agencies, obligations of states and political subdivisions, mortgage-backed securities and collateralized mortgage obligations. In certain cases where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy.

The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the hierarchy in which the fair value measurements fell as of March 31, 2016 and December 31, 2015 (in thousands):

March 31, 2016

(Dollars in thousands)			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of U. S. Government Agencies	$	16,642	$	-	$	16,642	$	-
Municipal securities		97,594		-		97,594		-
Mortgage-backed securities		115,733		-		115,733		-
Corporate obligations		22,203		-		19,729		2,474
Other		954		954		-		-
Total	$	253,126	$	954	$	249,698	$	2,474

December 31, 2015

(Dollars in thousands)			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of U. S. Government Agencies	$	19,611	$	-	$	19,611	$	-
Municipal securities		97,889		-		97,889		-
Mortgage-backed securities		98,925		-		98,925		-
Corporate obligations		22,346		-		19,789		2,557
Other		961		961		-		-
Total	$	239,732	$	961	$	236,214	$	2,557

The following is a reconciliation of activity for assets measured at fair value based on significant unobservable (non-market) information.

(Dollars in thousands)	Bank-Issued Trust Preferred Securities
	2016		2015
Balance, January 1	$	2,557	$	2,801
Transfers into Level 3		-		-
Transfers out of Level 3		-		-
Other-than-temporary impairment loss included in earnings (loss)		-		-
Unrealized loss included in comprehensive income		(83)		(244)
Balance at March 31, 2016 and December 31, 2015	$	2,474	$	2,557

The following table presents quantitative information about recurring Level 3 fair value measurements (in thousands):

Trust Preferred Securities	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs
March 31, 2016	$	2,474	Discounted cash flow	Probability of default		1.18% - 2.96%
December 31, 2015	$	2,557	Discounted cash flow	Probability of default		1.08% - 2.77%

Following is a description of the valuation methodologies used for assets measured at fair value on a non-recurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy.

Impaired Loans

Loans for which it is probable that the Company will not collect all principal and interest due according to contractual terms are measured for impairment. Allowable methods for estimating fair value include using the fair value of the collateral for collateral dependent loans or, where a loan is determined not to be collateral dependent, using the discounted cash flow method.

If the impaired loan is identified as collateral dependent, then the fair value method of measuring the amount of impairment is utilized. This method requires obtaining a current independent appraisal of the collateral and applying a discount factor to the value. If the impaired loan is determined not to be collateral dependent, then the discounted cash flow method is used. This method requires the impaired loan to be recorded at the present value of expected future cash flows discounted at the loan’s effective interest rate. The effective interest rate of a loan is the contractual interest rate adjusted for any net deferred loan fees or costs, or premium or discount existing at origination or acquisition of the loan. Impaired loans are classified within Level 2 of the fair value hierarchy.

Other Real Estate Owned

Other real estate owned acquired through loan foreclosure is initially recorded at fair value less estimated costs to sell, establishing a new cost basis. The adjustment at the time of foreclosure is recorded through the allowance for loan losses. Due to the subjective nature of establishing the fair value, the actual fair value of the other real estate owned or foreclosed asset could differ from the original estimate. If it is determined the fair value declines subsequent to foreclosure, a valuation allowance is recorded through non-interest expense. Operating costs associated with the assets are also recorded as non-interest expense. Gains and losses on the disposition of other real estate owned and foreclosed assets are netted and posted to other non-interest expense. Other real estate owned measured at fair value on a non-recurring basis at March 31, 2016, amounted to $4.4 million. Other real estate owned is classified within Level 2 of the fair value hierarchy.

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fell at March 31, 2016 and December 31, 2015.

($ in thousands)

March 31, 2016

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	8,866	$	-	$	8,866	$	-
Other real estate owned		4,363		-		4,363		-

December 31, 2015

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	10,127	$	-	$	10,127	$	-
Other real estate owned		3,083		-		3,083		-

The following methods and assumptions were used to estimate the fair value of each class of financial instrument for which it is practicable to estimate that value:

Cash and Cash Equivalents – For such short-term instruments, the carrying amount is a reasonable estimate of fair value.

Investment in securities available-for-sale and held-to-maturity – The fair value measurement for securities available-for-sale was discussed earlier. The same measurement approach was used for securities held-to-maturity.

Loans – The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities.

Bank-Owned Life Insurance– The fair value of bank-owned life insurance approximates the carrying amount, because upon liquidation of these investments, the Company would receive the cash surrender value which equals the carrying amount.

Deposits – The fair values of demand deposits are, as required by ASC Topic 825, equal to the carrying value of such deposits. Demand deposits include noninterest-bearing demand deposits, savings accounts, NOW accounts, and money market demand accounts. The fair value of variable rate term deposits, those repricing within six months or less, approximates the carrying value of these deposits. Discounted cash flows have been used to value fixed rate term deposits and variable rate term deposits repricing after six months. The discount rate used is based on interest rates currently being offered on comparable deposits as to amount and term.

Short-Term Borrowings – The carrying value of any federal funds purchased and other short-term borrowings approximates their fair values.

FHLB and Other Borrowings – The fair value of the fixed rate borrowings are estimated using discounted cash flows, based on current incremental borrowing rates for similar types of borrowing arrangements. The carrying amount of any variable rate borrowing approximates its fair value.

Subordinated Debentures – The subordinated debentures bear interest at a variable rate and the carrying value approximates the fair value.

Off-Balance Sheet Instruments – Fair values of off-balance sheet financial instruments are based on fees charged to enter into similar agreements. However, commitments to extend credit do not represent a significant value until such commitments are funded or closed. Management has determined that these instruments do not have a distinguishable fair value and no fair value has been assigned.

As of March 31, 2016					Fair Value Measurements
($ in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Instruments:
Assets:
Cash and cash equivalents	$	95,965	$	95,965	$	95,965	$	-	$	-
Securities available-for-sale		253,126		253,126		954		249,698		2,474
Securities held-to-maturity		6,851		8,741		-		8,741		-
Other securities		9,570		9,570		-		9,570		-
Loans, net		796,877		814,936		-		-		814,936
Bank-owned life insurance		14,971		14,971		-		14,971		-
Liabilities:
Noninterest-bearing deposits	$	194,433	$	194,433	$	-	$	194,433	$	-
Interest-bearing deposits		846,672		846,231		-		846,231		-
Subordinated debentures		10,310		10,310		-		-		10,310
FHLB and other borrowings		78,976		78,976		-		78,976		-

As of December 31, 2015					Fair Value Measurements
($ in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Instruments:
Assets:
Cash and cash equivalents	$	41,259	$	41,259	$	41,259	$	-	$	-
Securities available-for-sale		239,732		239,732		961		236,214		2,557
Securities held-to-maturity		7,092		8,548		-		8,548		-
Other securities		8,135		8,135		-		8,135		-
Loans, net		769,742		784,113		-		-		784,113
Bank-owned life insurance		14,872		14,872		-		14,872		-
Liabilities:
Noninterest-bearing deposits	$	189,445	$	189,445	$	-	$	189,445	$	-
Interest-bearing deposits		727,250		726,441		-		726,441		-
Subordinated debentures		10,310		10,310		-		-		10,310
FHLB and other borrowings		110,321		110,321		-		110,321		-

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LOANS

3 Months Ended

Mar. 31, 2016

Loans Receivable, Net [Abstract]

LOANS

NOTE G — LOANS

Loans typically provide higher yields than the other types of earning assets, and, thus, one of the Company's goals is for loans to be the largest category of the Company's earning assets. For the quarters ended March 31, 2016 and December 31, 2015, average loans accounted for 72.3% and 73.3% of average earning assets, respectively. The Company controls and mitigates the inherent credit and liquidity risks through the composition of its loan portfolio.

The following table shows the composition of the loan portfolio by category:

Composition of Loan Portfolio

	March 31, 2016					December 31, 2015
			Percent					Percent
			of					of
	Amount		Total			Amount		Total
	(Dollars in thousands)
Mortgage loans held for sale	$	6,095		0.8	%	$	3,974		0.5	%
Commercial, financial and agricultural		126,381		15.7			129,197		16.6
Real Estate:
Mortgage-commercial		270,085		33.6			253,309		32.6
Mortgage-residential		276,272		34.3			272,180		35.1
Construction		100,386		12.5			99,161		12.8
Lease financing receivable		2,645		0.3			2,650		0.3
Obligations of states and subdivisions		7,034		0.9			969		0.1
Consumer and other		14,961		1.9			15,049		2.0
Total loans		803,859		100	%		776,489		100	%
Allowance for loan losses		(6,982)					(6,747)
Net loans	$	796,877				$	769,742

In the context of this discussion, a "real estate mortgage loan" is defined as any loan, other than a loan for construction purposes, secured by real estate, regardless of the purpose of the loan. The Company follows the common practice of financial institutions in the Company’s market area of obtaining a security interest in real estate whenever possible, in addition to any other available collateral. This collateral is taken to reinforce the likelihood of the ultimate repayment of the loan and tends to increase the magnitude of the real estate loan portfolio component. Generally, the Company limits its loan-to-value ratio to 80%. Management attempts to maintain a conservative philosophy regarding its underwriting guidelines and believes it will reduce the risk elements of its loan portfolio through strategies that diversify the lending mix.

Loans held for sale consist of mortgage loans originated by the Bank and sold into the secondary market. Commitments from investors to purchase the loans are obtained upon origination.

Activity in the allowance for loan losses for the period was as follows:

(In thousands)

	Three Months
	Ended
	March 31, 2016
Balance at beginning of period	$	6,747
Loans charged-off:
Real Estate		(78)
Installment and Other		(9)
Commercial, Financial and Agriculture		(6)
Total		(93)
Recoveries on loans previously charged-off:
Real Estate		44
Installment and Other		18
Commercial, Financial and Agriculture		76
Total		138
Net recoveries		45
Provision for Loan Losses		190
Balance at end of period	$	6,982

The following tables represent how the allowance for loan losses is allocated to a particular loan type, as well as the percentage of the category to total loans at March 31, 2016 and December 31, 2015.

Allocation of the Allowance for Loan Losses

	March 31, 2016
	(Dollars in thousands)
			% of loans
			in each category
	Amount		to total loans
Commercial Non Real Estate	$	1,020		17.3	%
Commercial Real Estate		3,410		58.7
Consumer Real Estate		1,584		21.6
Consumer		144		2.3
Unallocated		824		.1
Total	$	6,982		100	%

	December 31, 2015
	(Dollars in thousands)
			% of loans
			in each category
	Amount		to total loans
Commercial Non Real Estate	$	895		17.1	%
Commercial Real Estate		3,018		58.4
Consumer Real Estate		1,477		21.9
Consumer		141		2.5
Unallocated		1,216		.1
Total	$	6,747		100	%

The following table represents the Company’s impaired loans at March 31, 2016, and December 31, 2015.

	March 31,		December 31,
	2016		2015
	(In thousands)
Impaired Loans:
Impaired loans without a valuation allowance	$	4,776	$	6,020
Impaired loans with a valuation allowance		4,090		4,107
Total impaired loans	$	8,866	$	10,127
Allowance for loan losses on impaired loans at period end		967		957
Total nonaccrual loans		5,851		7,368
Past due 90 days or more and still accruing		628		29
Average investment in impaired loans		9,496		9,652

The following table is a summary of interest recognized and cash-basis interest earned on impaired loans:

	Three Months		Three Months
	Ended		Ended
	March 31, 2016		March 31, 2015
Interest income recognized during impairment	$	45	$	34
Cash-basis interest income recognized		45		34

The gross interest income that would have been recorded in the period that ended if the nonaccrual loans had been current in accordance with their original terms and had been outstanding throughout the period or since origination, if held for part of the three months ended March 31, 2016 and March 31, 2015, was $98,000 and $94,000, respectively, The Company had no loan commitments to borrowers in non-accrual status at March 31, 2016 and December 31, 2015.

The following tables provide the ending balances in the Company's loans (excluding mortgage loans held for sale) and allowance for loan losses, broken down by portfolio segment as of March 31, 2016 and December 31, 2015. The tables also provide additional detail as to the amount of our loans and allowance that correspond to individual versus collective impairment evaluation. The impairment evaluation corresponds to the Company's systematic methodology for estimating its Allowance for Loan Losses.

March 31, 2016

					Commercial,
			Installment		Financial
	Real		and		and
	Estate		Other		Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	8,556	$	37	$	273	$	8,866
Collectively evaluated		637,661		15,257		135,980		788,898
Total	$	646,217	$	15,294	$	136,253	$	797,764
Allowance for Loan Losses
Individually evaluated	$	880	$	25	$	62	$	967
Collectively evaluated		4,114		943		958		6,015
Total	$	4,994	$	968	$	1,020	$	6,982

December 31, 2015

					Commercial,
			Installment		Financial
	Real		and		and
	Estate		Other		Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	9,782	$	39	$	306	$	10,127
Collectively evaluated		610,996		19,591		131,801		762,388
Total	$	620,778	$	19,630	$	132,107	$	772,515
Allowance for Loan Losses
Individually evaluated	$	882	$	25	$	50	$	957
Collectively evaluated		3,613		1,332		845		5,790
Total	$	4,495	$	1,357	$	895	$	6,747

The following tables provide additional detail of impaired loans broken out according to class as of March 31, 2016 and December 31, 2015. The recorded investment included in the following tables represent customer balances net of any partial charge-offs recognized on the loans, net of any deferred fees and costs. As nearly all of our impaired loans at March 31, 2016, are on nonaccrual status, recorded investment excludes any insignificant amount of accrued interest receivable on loans 90-days or more past due and still accruing. The unpaid balance represents the recorded balance prior to any partial charge-offs.

March 31, 2016

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	-	$	-	$	-	$	-	$	-
Commercial real estate		4,558		4,597		-		5,174		7
Consumer real estate		212		212		-		218		-
Consumer installment		6		6		-		6		-
Total	$	4,776	$	4,815	$	-	$	5,398	$	7
Impaired loans with a related allowance:
Commercial installment	$	273	$	273	$	62	$	290	$	3
Commercial real estate		2,957		2,957		452		2,942		31
Consumer real estate		829		829		428		835		4
Consumer installment		31		31		25		31		-
Total	$	4,090	$	4,090	$	967	$	4,098	$	38
Total Impaired Loans:
Commercial installment	$	273	$	273	$	62	$	290	$	3
Commercial real estate		7,515		7,554		452		8,116		38
Consumer real estate		1,041		1,041		428		1,053		4
Consumer installment		37		37		25		37		-
Total Impaired Loans	$	8,866	$	8,905	$	967	$	9,496	$	45

On January 1, 2015, the Company adopted Accounting Standards Update (ASU) 2014-4, Receivables – Troubled Debt Restructuring by Creditors. As of March 31, 2016, the Company had $1.0 million of foreclosed residential real estate property obtained by physical possession and $.5 million of consumer mortgage loans secured by residential real estate properties for which foreclosure proceedings are in process according to local jurisdictions.

December 31, 2015

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	-	$	-	$	-	$	2	$	-
Commercial real estate		5,790		5,828		-		5,099		50
Consumer real estate		223		223		-		205		-
Consumer installment		7		7		-		8		-
Total	$	6,020	$	6,058	$	-	$	5,314	$	50
Impaired loans with a related allowance:
Commercial installment	$	306	$	306	$	50	$	264	$	14
Commercial real estate		2,927		2,927		444		2,891		132
Consumer real estate		842		842		438		1,152		15
Consumer installment		32		32		25		31		-
Total	$	4,107	$	4,107	$	957	$	4,338	$	161
Total Impaired Loans:
Commercial installment	$	306	$	306	$	50	$	266	$	14
Commercial real estate		8,717		8,755		444		7,990		182
Consumer real estate		1,065		1,065		438		1,357		15
Consumer installment		39		39		25		39		-
Total Impaired Loans	$	10,127	$	10,165	$	957	$	9,652	$	211

Loans acquired with deteriorated credit quality are those purchased in the BCB Holding Company, Inc. acquisition. These loans were recorded at estimated fair value at the acquisition date with no carryover of the related allowance for loan losses. The acquired loans were segregated as of the acquisition date between those considered to be performing (acquired non-impaired loans) and those with evidence of credit deterioration (acquired impaired loans). Acquired loans are considered impaired if there is evidence of credit deterioration and if it is probable, at acquisition, all contractually required payments will not be collected.

The following table presents information regarding the contractually required payments receivable, cash flows expected to be collected and the estimated fair value of loans acquired in the BCB acquisition as of July 1, 2014, the closing date of the transaction: 

	(In thousands)
	Commercial,
	financial
	and		Mortgage-		Mortgage-		Commercial
	agricultural		Commercial		Residential		and other		Total
Contractually required payments	$	1,519	$	29,648	$	7,933	$	976	$	40,076
Cash flows expected to be collected		1,570		37,869		9,697		1,032		50,168
Fair value of loans acquired		1,513		28,875		7,048		957		38,393

Total outstanding acquired impaired loans were $2,981,011 as of March 31, 2016 and $3,039,840 as of December 31, 2015. The outstanding balance of these loans is the undiscounted sum of all amounts, including amounts deemed principal, interest, fees, penalties, and other under the loans, owed at the reporting date, whether or not currently due and whether or not any such amounts have been charged off.

Changes in the carrying amount and accretable yield for acquired impaired loans were as follows at March 31, 2016 and December 31, 2015: (in thousands)

	March 31, 2016				December 31, 2015
			Carrying				Carrying
	Accretable		Amount of		Accretable		Amount of
	Yield		Loans		Yield		Loans
Balance at beginning of period	$	1,219	$	1,821	$	1,417	$	2,063
Accretion		(21)		21		(198)		198
Payments received, net		-		(59)		-		(440)
Balance at end of period	$	1,198	$	1,783	$	1,219	$	1,821

The following tables provide detail of troubled debt restructurings (TDRs) at March 31, 2016.

For the Three Months Ending March 31, 2016

			Outstanding
	Outstanding		Recorded
	Recorded		Investment				Interest
	Investment		Post-		Number of		Income
	Pre-Modification		Modification		Loans		Recognized
Commercial installment	$	-	$	-		-	$	-
Commercial real estate		296		289		1		4
Consumer real estate		-		-		-		-
Consumer installment		-		-		-		-
Total	$	296	$	289		1	$	4

There was one TDR that was modified during the three month period ended March 31, 2016.

The balance of troubled debt restructurings (TDRs)was $6.8 million at March 31, 2016 and $6.9 million at December 31, 2015, respectively, calculated for regulatory reporting purposes. As of March 31, 2016, the company had no additional amount committed on any loan classified as troubled debt restructuring.

The following tables set forth the amounts and past due status for the Bank TDRs at March 31, 2016 and December 31, 2015:

(in thousands)

	March 31, 2016
					Past Due
					90 days
	Current		Past Due		and still		Non-
	Loans		30-89		accruing		accrual		Total
Commercial installment	$	199	$	-	$	-	$	50	$	249
Commercial real estate		2,555		-		-		3,598		6,153
Consumer real estate		254		-		-		133		387
Consumer installment		7		-		-		28		35
Total	$	3,015	$	-	$	-	$	3,809	$	6,824
Allowance for loan losses	$	119	$	-	$	-	$	132	$	251

(in thousands)

	December 31, 2015
					Past Due
					90 days
	Current		Past Due		and still		Non-
	Loans		30-89		accruing		accrual		Total
Commercial installment	$	206	$	-	$	-	$	50	$	256
Commercial real estate		1,823		-		-		2,934		4,757
Consumer real estate		721		-		-		1,135		1,856
Consumer installment		8		-		-		29		37
Total	$	2,758	$	-	$	-	$	4,148	$	6,906
Allowance for loan losses	$	106	$	-	$	-	$	197	$	303

The following tables summarize by class our loans classified as past due in excess of 30 days or more in addition to those loans classified as non-accrual:

	March 31, 2016
	(In thousands)
			Past Due				Total
			90 Days				Past Due
	Past Due		or More				and
	30 to 89		and Still		Non-		Non-		Total
	Days		Accruing		Accrual		Accrual		Loans
Real Estate-construction	$	742	$	7	$	2,630	$	3,379	$	100,386
Real Estate-mortgage		3,215		523		2,144		5,882		276,272
Real Estate-non farm non residential		608		98		973		1,679		270,085
Commercial		50		-		74		124		126,381
Lease Financing Rec.		-		-		-		-		2,645
Obligations of states and subdivisions		-		-		-		-		7,034
Consumer		48		-		30		78		14,961
Total	$	4,663	$	628	$	5,851	$	11,142	$	797,764

	December 31, 2015
	(In thousands)
			Past Due
			90 Days				Total
			or More				Past Due
	Past Due		and				and
	30 to 89		Still		Non-		Non-		Total
	Days		Accruing		Accrual		Accrual		Loans
Real Estate-construction	$	311	$	-	$	2,956	$	3,267	$	99,161
Real Estate-mortgage		3,339		29		2,055		5,423		272,180
Real Estate-non farm non residential		736		-		2,225		2,961		253,309
Commercial		97		-		100		197		129,197
Lease Financing Rec.		-		-		-		-		2,650
Obligations of states and subdivisions		-		-		-		-		969
Consumer		70		-		32		102		15,049
Total	$	4,553	$	29	$	7,368	$	11,950	$	772,515

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 uses the following definitions for risk ratings, which are consistent with the definitions used in supervisory guidance:

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 Company’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.

As of March 31, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk categories of loans by class of loans (excluding mortgage loans held for sale) were as follows:

($ in thousands)

March 31, 2016

							Commercial,
			Real		Installment		Financial
	Real Estate		Estate		and		and
	Commercial		Mortgage		Other		Agriculture		Total
Pass	$	453,767	$	170,711	$	18,078	$	137,949	$	780,505
Special Mention		794		151		-		248		1,193
Substandard		14,777		1,493		105		147		16,522
Doubtful		-		324		-		44		368
Subtotal		469,338		172,679		18,183		138,388		798,588
Less:
Unearned discount		410		64		-		350		824
Loans, net of unearned discount	$	468,928	$	172,615	$	18,183	$	138,038	$	797,764

December 31, 2015

							Commercial,
			Real		Installment		Financial
	Real Estate		Estate		and		and
	Commercial		Mortgage		Other		Agriculture		Total
Pass	$	434,638	$	167,394	$	19,556	$	132,101	$	753,689
Special Mention		681		153		-		168		1,002
Substandard		16,655		1,453		75		178		18,361
Doubtful		-		327		-		-		327
Subtotal		451,974		169,327		19,631		132,447		773,379
Less:
Unearned discount		448		76		-		340		864
Loans, net of unearned discount	$	451,526	$	169,251	$	19,631	$	132,107	$	772,515

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SECURITIES

3 Months Ended

Mar. 31, 2016

Securities [Abstract]

SECURITIES

NOTE H — SECURITIES

The following disclosure of the estimated fair value of financial instruments is made in accordance with authoritative guidance. The estimated fair value amounts have been determined using available market information and appropriate valuation methodologies. However, considerable judgment is necessarily required to interpret market data to develop the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts that could be realized in a current market exchange. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

A summary of the amortized cost and estimated fair value of available-for-sale securities and held-to-maturity securities at March 31, 2016, follows:

($ in thousands)

	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	16,442	$	200	$	-	$	16,642
Tax-exempt and taxable obligations of states and municipal subdivisions		94,487		3,118		11		97,594
Mortgage-backed securities		113,877		1,914		58		115,733
Corporate obligations		23,345		85		1,227		22,203
Other		1,255		-		301		954
Total	$	249,406	$	5,317	$	1,597	$	253,126
Held-to-maturity securities:
Mortgage-backed securities	$	851	$	26	$	-	$	877
Taxable obligations of states and municipal subdivisions		6,000		1,864		-		7,864
Total	$	6,851	$	1,890	$	-	$	8,741

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ALLOWANCE FOR LOAN LOSSES

3 Months Ended

Mar. 31, 2016

Allowance For Loan Losses [Abstract]

ALLOWANCE FOR LOAN LOSSES

NOTE I — ALLOWANCE FOR LOAN LOSSES

The Company has developed policies and procedures for evaluating the overall quality of its credit portfolio and the timely identification of potential problem loans. Management’s judgment as to the adequacy of the allowance is based upon a number of assumptions which it believes to be reasonable, but which may not prove to be accurate, particularly given the Company’s growth and the economy. Thus, there can be no assurance that charge-offs in future periods will not exceed the allowance for loan losses or that additional increases in the loan loss allowance will not be required.

The Company’s allowance consists of two parts. The first part is determined in accordance with authoritative guidance regarding contingencies. The Company’s determination of this part of the allowance is based upon quantitative and qualitative factors. A loan loss history based upon the most recent 72 months loss history is utilized in determining the appropriate allowance. Historical loss factors are determined by risk rated loans by loan type. These historical loss factors are applied to the loans by loan type to determine an indicated allowance. The loss factors of peer groups are considered in the determination of the allowance and are used to assist in the establishment of a long-term loss history for areas in which this data is unavailable and incorporated into the qualitative factors to be considered. The historical loss factors may also be modified based upon other qualitative factors including but not limited to local and national economic conditions, trends of delinquent loans, changes in lending policies and underwriting standards, concentrations, and management’s knowledge of the loan portfolio. These factors require judgment upon the part of management and are based upon state and national economic reports received from various institutions and agencies including the Federal Reserve Bank, United States Bureau of Economic Analysis, Bureau of Labor Statistics, meetings with the Company’s loan officers and loan committee, and data and guidance received or obtained from the Company’s regulatory authorities.

The second part of the allowance is determined in accordance with authoritative guidance regarding loan impairment. Impaired loans are determined based upon a review by internal loan review and senior management.

The sum of the two parts constitutes management’s best estimate of an appropriate allowance for loan losses. When the estimated allowance is determined, it is presented to the Company’s audit committee for review and approval on a quarterly basis.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. 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.

Impairment is measured on a loan by loan basis, and a specific allowance is assigned to each loan determined to be impaired. Impaired loans not deemed collateral dependent are analyzed according to the ultimate repayment source, whether that is cash flow from the borrower, guarantor or some other source of repayment. Impaired loans are deemed collateral dependent if, in the Company’s opinion, the ultimate source of repayment will be generated from the liquidation of collateral.

The Company discontinues accrual of interest on loans when management believes, after considering economic and business conditions and collection efforts, that a borrower’s financial condition is such that the collection of interest is doubtful. Generally, the Company will place a delinquent loan in nonaccrual status when the loan becomes 90 days or more past due. At the time a loan is placed in nonaccrual status, all interest which has been accrued on the loan but remains unpaid is reversed and deducted from earnings as a reduction of reported interest income. No additional interest is accrued on the loan balance until the collection of both principal and interest becomes reasonably certain.

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SUBSEQUENT EVENTS

3 Months Ended

Mar. 31, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

NOTE J – SUBSEQUENT EVENTS

Subsequent events have been evaluated by management through the date the financial statements were issued. The Company has experienced recoveries on a previously charged-off loan of $941,000. In 2015, $722,000 was recovered and a third and final installment of $219,000 is expected during 2016.

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RECLASSIFICATION

3 Months Ended

Mar. 31, 2016

Reclassification [Abstract]

RECLASSIFICATION

NOTE K – RECLASSIFICATION

Certain amounts in the 2015 financial statements have been reclassified for comparative purposes to conform to the current period financial statement presentation.

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BUSINESS COMBINATION (Tables)

3 Months Ended

Mar. 31, 2016

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed

The amounts of the acquired identifiable assets and liabilities as of the acquisition date were as follows (dollars in thousands):

Purchase price:
Cash	$	844
Payable		800
Total purchase price		1,644
Identifiable assets:
Intangible		100
Personal property		44
Total assets		144
Liabilities and equity:
Net assets acquired	$	144
Goodwill resulting from acquisition	$	1,500

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EARNINGS APPLICABLE TO COMMON STOCKHOLDERS (Tables)

3 Months Ended

Mar. 31, 2016

Earnings Per Share [Abstract]

Weighted-Average Number of Common Shares Outstanding

Diluted per share data includes any dilution from potential common stock outstanding, such

as stock options.

	For the Three Months Ended
	March 31, 2016
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	2,519,000		5,415,339	$	0.47
Effect of dilutive shares:
Restricted stock grants				63,364
Diluted per share	$	2,519,000		5,478,703	$	0.46

	For the Three Months Ended
	March 31, 2015
	Net Income		Shares		Per
	(Numerator)		(Denominator)		Share Data
Basic per share	$	1,944,000		5,358,576	$	0.36
Effect of dilutive shares:
Restricted stock grants				56,524
Diluted per share	$	1,944,000		5,415,100	$	0.36

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FAIR VALUE OF ASSETS AND LIABILITIES (Tables)

3 Months Ended

Mar. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value Assets Measured on Recurring Basis

The following table presents the Company’s assets that are measured at fair value on a recurring basis and the level within the hierarchy in which the fair value measurements fell as of March 31, 2016 and December 31, 2015 (in thousands):

March 31, 2016

(Dollars in thousands)			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of U. S. Government Agencies	$	16,642	$	-	$	16,642	$	-
Municipal securities		97,594		-		97,594		-
Mortgage-backed securities		115,733		-		115,733		-
Corporate obligations		22,203		-		19,729		2,474
Other		954		954		-		-
Total	$	253,126	$	954	$	249,698	$	2,474

December 31, 2015

(Dollars in thousands)			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Obligations of U. S. Government Agencies	$	19,611	$	-	$	19,611	$	-
Municipal securities		97,889		-		97,889		-
Mortgage-backed securities		98,925		-		98,925		-
Corporate obligations		22,346		-		19,789		2,557
Other		961		961		-		-
Total	$	239,732	$	961	$	236,214	$	2,557

Reconciliation of Activity for Assets Measured at Fair Value based on Significant Unobservable (Non-market) Information

The following is a reconciliation of activity for assets measured at fair value based on significant unobservable (non-market) information.

(Dollars in thousands)	Bank-Issued Trust Preferred Securities
	2016		2015
Balance, January 1	$	2,557	$	2,801
Transfers into Level 3		-		-
Transfers out of Level 3		-		-
Other-than-temporary impairment loss included in earnings (loss)		-		-
Unrealized loss included in comprehensive income		(83)		(244)
Balance at March 31, 2016 and December 31, 2015	$	2,474	$	2,557

Quantitative Information About Recurring Level 3 Fair Value Measurements

The following table presents quantitative information about recurring Level 3 fair value measurements (in thousands):

Trust Preferred Securities	Fair Value		Valuation Technique	Significant Unobservable Inputs	Range of Inputs
March 31, 2016	$	2,474	Discounted cash flow	Probability of default		1.18% - 2.96%
December 31, 2015	$	2,557	Discounted cash flow	Probability of default		1.08% - 2.77%

Fair Value Assets Measured on Nonrecurring Basis

The following table presents the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fell at March 31, 2016 and December 31, 2015.

($ in thousands)

March 31, 2016

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	8,866	$	-	$	8,866	$	-
Other real estate owned		4,363		-		4,363		-

December 31, 2015

			Fair Value Measurements Using
			Quoted Prices in Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	10,127	$	-	$	10,127	$	-
Other real estate owned		3,083		-		3,083		-

Financial Instruments with No Distinguishable Fair Value

As of March 31, 2016					Fair Value Measurements
($ in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Instruments:
Assets:
Cash and cash equivalents	$	95,965	$	95,965	$	95,965	$	-	$	-
Securities available-for-sale		253,126		253,126		954		249,698		2,474
Securities held-to-maturity		6,851		8,741		-		8,741		-
Other securities		9,570		9,570		-		9,570		-
Loans, net		796,877		814,936		-		-		814,936
Bank-owned life insurance		14,971		14,971		-		14,971		-
Liabilities:
Noninterest-bearing deposits	$	194,433	$	194,433	$	-	$	194,433	$	-
Interest-bearing deposits		846,672		846,231		-		846,231		-
Subordinated debentures		10,310		10,310		-		-		10,310
FHLB and other borrowings		78,976		78,976		-		78,976		-

As of December 31, 2015					Fair Value Measurements
($ in thousands)	Carrying Amount		Estimated Fair Value		Quoted Prices (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Instruments:
Assets:
Cash and cash equivalents	$	41,259	$	41,259	$	41,259	$	-	$	-
Securities available-for-sale		239,732		239,732		961		236,214		2,557
Securities held-to-maturity		7,092		8,548		-		8,548		-
Other securities		8,135		8,135		-		8,135		-
Loans, net		769,742		784,113		-		-		784,113
Bank-owned life insurance		14,872		14,872		-		14,872		-
Liabilities:
Noninterest-bearing deposits	$	189,445	$	189,445	$	-	$	189,445	$	-
Interest-bearing deposits		727,250		726,441		-		726,441		-
Subordinated debentures		10,310		10,310		-		-		10,310
FHLB and other borrowings		110,321		110,321		-		110,321		-

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LOANS (Tables)

3 Months Ended

Mar. 31, 2016

Loans Receivable, Net [Abstract]

Composition of Loan Portfolio

The following table shows the composition of the loan portfolio by category:

Composition of Loan Portfolio

	March 31, 2016					December 31, 2015
			Percent					Percent
			of					of
	Amount		Total			Amount		Total
	(Dollars in thousands)
Mortgage loans held for sale	$	6,095		0.8	%	$	3,974		0.5	%
Commercial, financial and agricultural		126,381		15.7			129,197		16.6
Real Estate:
Mortgage-commercial		270,085		33.6			253,309		32.6
Mortgage-residential		276,272		34.3			272,180		35.1
Construction		100,386		12.5			99,161		12.8
Lease financing receivable		2,645		0.3			2,650		0.3
Obligations of states and subdivisions		7,034		0.9			969		0.1
Consumer and other		14,961		1.9			15,049		2.0
Total loans		803,859		100	%		776,489		100	%
Allowance for loan losses		(6,982)					(6,747)
Net loans	$	796,877				$	769,742

Activity in Allowance for Loan Losses

Activity in the allowance for loan losses for the period was as follows:

(In thousands)

	Three Months
	Ended
	March 31, 2016
Balance at beginning of period	$	6,747
Loans charged-off:
Real Estate		(78)
Installment and Other		(9)
Commercial, Financial and Agriculture		(6)
Total		(93)
Recoveries on loans previously charged-off:
Real Estate		44
Installment and Other		18
Commercial, Financial and Agriculture		76
Total		138
Net recoveries		45
Provision for Loan Losses		190
Balance at end of period	$	6,982

Allocation of Allowance for Loan Losses

The following tables represent how the allowance for loan losses is allocated to a particular loan type, as well as the percentage of the category to total loans at March 31, 2016 and December 31, 2015.

Allocation of the Allowance for Loan Losses

	March 31, 2016
	(Dollars in thousands)
			% of loans
			in each category
	Amount		to total loans
Commercial Non Real Estate	$	1,020		17.3	%
Commercial Real Estate		3,410		58.7
Consumer Real Estate		1,584		21.6
Consumer		144		2.3
Unallocated		824		.1
Total	$	6,982		100	%

	December 31, 2015
	(Dollars in thousands)
			% of loans
			in each category
	Amount		to total loans
Commercial Non Real Estate	$	895		17.1	%
Commercial Real Estate		3,018		58.4
Consumer Real Estate		1,477		21.9
Consumer		141		2.5
Unallocated		1,216		.1
Total	$	6,747		100	%

Impaired Loans

The following table represents the Company’s impaired loans at March 31, 2016, and December 31, 2015.

	March 31,		December 31,
	2016		2015
	(In thousands)
Impaired Loans:
Impaired loans without a valuation allowance	$	4,776	$	6,020
Impaired loans with a valuation allowance		4,090		4,107
Total impaired loans	$	8,866	$	10,127
Allowance for loan losses on impaired loans at period end		967		957
Total nonaccrual loans		5,851		7,368
Past due 90 days or more and still accruing		628		29
Average investment in impaired loans		9,496		9,652

Summary of Interest Recognized and Cash-Basis Interest Earned on Impaired Loans

The following table is a summary of interest recognized and cash-basis interest earned on impaired loans:

	Three Months		Three Months
	Ended		Ended
	March 31, 2016		March 31, 2015
Interest income recognized during impairment	$	45	$	34
Cash-basis interest income recognized		45		34

Loans and Allowance for Loan Losses Evaluated Individually and Collectively

The impairment evaluation corresponds to the Company's systematic methodology for estimating its Allowance for Loan Losses.

March 31, 2016

					Commercial,
			Installment		Financial
	Real		and		and
	Estate		Other		Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	8,556	$	37	$	273	$	8,866
Collectively evaluated		637,661		15,257		135,980		788,898
Total	$	646,217	$	15,294	$	136,253	$	797,764
Allowance for Loan Losses
Individually evaluated	$	880	$	25	$	62	$	967
Collectively evaluated		4,114		943		958		6,015
Total	$	4,994	$	968	$	1,020	$	6,982

December 31, 2015

					Commercial,
			Installment		Financial
	Real		and		and
	Estate		Other		Agriculture		Total
	(In thousands)
Loans
Individually evaluated	$	9,782	$	39	$	306	$	10,127
Collectively evaluated		610,996		19,591		131,801		762,388
Total	$	620,778	$	19,630	$	132,107	$	772,515
Allowance for Loan Losses
Individually evaluated	$	882	$	25	$	50	$	957
Collectively evaluated		3,613		1,332		845		5,790
Total	$	4,495	$	1,357	$	895	$	6,747

Troubled Debt Restructurings

The following tables provide additional detail of impaired loans broken out according to class as of March 31, 2016 and December 31, 2015. The recorded investment included in the following tables represent customer balances net of any partial charge-offs recognized on the loans, net of any deferred fees and costs. As nearly all of our impaired loans at March 31, 2016, are on nonaccrual status, recorded investment excludes any insignificant amount of accrued interest receivable on loans 90-days or more past due and still accruing. The unpaid balance represents the recorded balance prior to any partial charge-offs.

March 31, 2016

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	-	$	-	$	-	$	-	$	-
Commercial real estate		4,558		4,597		-		5,174		7
Consumer real estate		212		212		-		218		-
Consumer installment		6		6		-		6		-
Total	$	4,776	$	4,815	$	-	$	5,398	$	7
Impaired loans with a related allowance:
Commercial installment	$	273	$	273	$	62	$	290	$	3
Commercial real estate		2,957		2,957		452		2,942		31
Consumer real estate		829		829		428		835		4
Consumer installment		31		31		25		31		-
Total	$	4,090	$	4,090	$	967	$	4,098	$	38
Total Impaired Loans:
Commercial installment	$	273	$	273	$	62	$	290	$	3
Commercial real estate		7,515		7,554		452		8,116		38
Consumer real estate		1,041		1,041		428		1,053		4
Consumer installment		37		37		25		37		-
Total Impaired Loans	$	8,866	$	8,905	$	967	$	9,496	$	45

December 31, 2015

							Average		Interest
							Recorded		Income
	Recorded		Unpaid		Related		Investment		Recognized
	Investment		Balance		Allowance		YTD		YTD
	(In thousands)
Impaired loans with no related allowance:
Commercial installment	$	-	$	-	$	-	$	2	$	-
Commercial real estate		5,790		5,828		-		5,099		50
Consumer real estate		223		223		-		205		-
Consumer installment		7		7		-		8		-
Total	$	6,020	$	6,058	$	-	$	5,314	$	50
Impaired loans with a related allowance:
Commercial installment	$	306	$	306	$	50	$	264	$	14
Commercial real estate		2,927		2,927		444		2,891		132
Consumer real estate		842		842		438		1,152		15
Consumer installment		32		32		25		31		-
Total	$	4,107	$	4,107	$	957	$	4,338	$	161
Total Impaired Loans:
Commercial installment	$	306	$	306	$	50	$	266	$	14
Commercial real estate		8,717		8,755		444		7,990		182
Consumer real estate		1,065		1,065		438		1,357		15
Consumer installment		39		39		25		39		-
Total Impaired Loans	$	10,127	$	10,165	$	957	$	9,652	$	211

Certain loans acquired in transfer not accounted for as debt securities acquired

The following table presents information regarding the contractually required payments receivable, cash flows expected to be collected and the estimated fair value of loans acquired in the BCB acquisition as of July 1, 2014, the closing date of the transaction: 

	(In thousands)
	Commercial,
	financial
	and		Mortgage-		Mortgage-		Commercial
	agricultural		Commercial		Residential		and other		Total
Contractually required payments	$	1,519	$	29,648	$	7,933	$	976	$	40,076
Cash flows expected to be collected		1,570		37,869		9,697		1,032		50,168
Fair value of loans acquired		1,513		28,875		7,048		957		38,393

Schedule of certain loans acquired in transfer carrying amount and accretable yield for acquired impaired loans

Changes in the carrying amount and accretable yield for acquired impaired loans were as follows at March 31, 2016 and December 31, 2015: (in thousands)

	March 31, 2016				December 31, 2015
			Carrying				Carrying
	Accretable		Amount of		Accretable		Amount of
	Yield		Loans		Yield		Loans
Balance at beginning of period	$	1,219	$	1,821	$	1,417	$	2,063
Accretion		(21)		21		(198)		198
Payments received, net		-		(59)		-		(440)
Balance at end of period	$	1,198	$	1,783	$	1,219	$	1,821

Additional Detail of Troubled Debt Restructurings

The following tables provide detail of troubled debt restructurings (TDRs) at March 31, 2016.

For the Three Months Ending March 31, 2016

			Outstanding
	Outstanding		Recorded
	Recorded		Investment				Interest
	Investment		Post-		Number of		Income
	Pre-Modification		Modification		Loans		Recognized
Commercial installment	$	-	$	-		-	$	-
Commercial real estate		296		289		1		4
Consumer real estate		-		-		-		-
Consumer installment		-		-		-		-
Total	$	296	$	289		1	$	4

Summary of Loans Classified as Past Due in Excess of Thirty Days or More and Loans Classified as Non-Accrual

The following tables set forth the amounts and past due status for the Bank TDRs at March 31, 2016 and December 31, 2015:

(in thousands)

	March 31, 2016
					Past Due
					90 days
	Current		Past Due		and still		Non-
	Loans		30-89		accruing		accrual		Total
Commercial installment	$	199	$	-	$	-	$	50	$	249
Commercial real estate		2,555		-		-		3,598		6,153
Consumer real estate		254		-		-		133		387
Consumer installment		7		-		-		28		35
Total	$	3,015	$	-	$	-	$	3,809	$	6,824
Allowance for loan losses	$	119	$	-	$	-	$	132	$	251

(in thousands)

	December 31, 2015
					Past Due
					90 days
	Current		Past Due		and still		Non-
	Loans		30-89		accruing		accrual		Total
Commercial installment	$	206	$	-	$	-	$	50	$	256
Commercial real estate		1,823		-		-		2,934		4,757
Consumer real estate		721		-		-		1,135		1,856
Consumer installment		8		-		-		29		37
Total	$	2,758	$	-	$	-	$	4,148	$	6,906
Allowance for loan losses	$	106	$	-	$	-	$	197	$	303

The following tables summarize by class our loans classified as past due in excess of 30 days or more in addition to those loans classified as non-accrual:

	March 31, 2016
	(In thousands)
			Past Due				Total
			90 Days				Past Due
	Past Due		or More				and
	30 to 89		and Still		Non-		Non-		Total
	Days		Accruing		Accrual		Accrual		Loans
Real Estate-construction	$	742	$	7	$	2,630	$	3,379	$	100,386
Real Estate-mortgage		3,215		523		2,144		5,882		276,272
Real Estate-non farm non residential		608		98		973		1,679		270,085
Commercial		50		-		74		124		126,381
Lease Financing Rec.		-		-		-		-		2,645
Obligations of states and subdivisions		-		-		-		-		7,034
Consumer		48		-		30		78		14,961
Total	$	4,663	$	628	$	5,851	$	11,142	$	797,764

	December 31, 2015
	(In thousands)
			Past Due
			90 Days				Total
			or More				Past Due
	Past Due		and				and
	30 to 89		Still		Non-		Non-		Total
	Days		Accruing		Accrual		Accrual		Loans
Real Estate-construction	$	311	$	-	$	2,956	$	3,267	$	99,161
Real Estate-mortgage		3,339		29		2,055		5,423		272,180
Real Estate-non farm non residential		736		-		2,225		2,961		253,309
Commercial		97		-		100		197		129,197
Lease Financing Rec.		-		-		-		-		2,650
Obligations of states and subdivisions		-		-		-		-		969
Consumer		70		-		32		102		15,049
Total	$	4,553	$	29	$	7,368	$	11,950	$	772,515

Risk Category of Loans by Class of Loans

As of March 31, 2016 and December 31, 2015, and based on the most recent analysis performed, the risk categories of loans by class of loans (excluding mortgage loans held for sale) were as follows:

($ in thousands)

March 31, 2016

							Commercial,
			Real		Installment		Financial
	Real Estate		Estate		and		and
	Commercial		Mortgage		Other		Agriculture		Total
Pass	$	453,767	$	170,711	$	18,078	$	137,949	$	780,505
Special Mention		794		151		-		248		1,193
Substandard		14,777		1,493		105		147		16,522
Doubtful		-		324		-		44		368
Subtotal		469,338		172,679		18,183		138,388		798,588
Less:
Unearned discount		410		64		-		350		824
Loans, net of unearned discount	$	468,928	$	172,615	$	18,183	$	138,038	$	797,764

December 31, 2015

							Commercial,
			Real		Installment		Financial
	Real Estate		Estate		and		and
	Commercial		Mortgage		Other		Agriculture		Total
Pass	$	434,638	$	167,394	$	19,556	$	132,101	$	753,689
Special Mention		681		153		-		168		1,002
Substandard		16,655		1,453		75		178		18,361
Doubtful		-		327		-		-		327
Subtotal		451,974		169,327		19,631		132,447		773,379
Less:
Unearned discount		448		76		-		340		864
Loans, net of unearned discount	$	451,526	$	169,251	$	19,631	$	132,107	$	772,515

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SECURITIES (Tables)

3 Months Ended

Mar. 31, 2016

Securities [Abstract]

Summary of Amortized Cost and Estimated Fair Value of Available-For-Sale Securities and Held-to-Maturity Securities

A summary of the amortized cost and estimated fair value of available-for-sale securities and held-to-maturity securities at March 31, 2016, follows:

($ in thousands)

	March 31, 2016
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Available-for-sale securities:
Obligations of U.S. Government Agencies	$	16,442	$	200	$	-	$	16,642
Tax-exempt and taxable obligations of states and municipal subdivisions		94,487		3,118		11		97,594
Mortgage-backed securities		113,877		1,914		58		115,733
Corporate obligations		23,345		85		1,227		22,203
Other		1,255		-		301		954
Total	$	249,406	$	5,317	$	1,597	$	253,126
Held-to-maturity securities:
Mortgage-backed securities	$	851	$	26	$	-	$	877
Taxable obligations of states and municipal subdivisions		6,000		1,864		-		7,864
Total	$	6,851	$	1,890	$	-	$	8,741

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Summary of organization - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015	Dec. 31, 2014
Organization [Line Items]
Date of entity incorporation	Jun. 23, 1995
Entity Incorporation, State Country Name	Hattiesburg, Mississippi
Assets, Total	$ 1,241,951		$ 1,145,131
Loans, including Loans held for sale	803,859		776,489
Deposits	1,041,105		916,695
Stockholders' equity	107,197	$ 98,766	$ 103,436	$ 96,216
Net income	2,604	2,029
Net income applicable to common Stockholders	$ 2,519	$ 1,944
Dividends on common stock, per share	$ 0.0375	$ 0.0375

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Business combination - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2016 USD ($)
Business Acquisition [Line Items]
Goodwill, Acquired During Period	$ 1.5

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Summary of Acquired Identifiable Assets and Liabilities (Detail) - The Mortgage Connection [Member] $ in Thousands	Mar. 31, 2016 USD ($)
Purchase price:
Cash	$ 844
Payable	800
Total purchase price	1,644
Identifiable assets:
Intangible	100
Personal property	44
Total assets	144
Liabilities and equity:
Net assets acquired	144
Goodwill resulting from acquisition	$ 1,500

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Preferred Stock and Warrant - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012	Dec. 31, 2011	May. 13, 2016
Class of Stock [Line Items]
Limitations on payment of dividends on common stock	no more than 100% of the aggregate per share dividend
Dividend declared and paid, common stock		$ 0.15	$ 0.15	$ 0.15	$ 0.15	$ 0.15
Preferred stock, issued	17,123	17,123
Warrant Issued To Purchase Of Common Stock	54,705
Treasury Stock Redemption Amount							$ 302,410
Series CD Preferred Stock
Class of Stock [Line Items]
Preferred stock, annual dividend rate	2.00%
Capital purchase liquidation dividend term	8 years

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Earnings Applicable to Common Stockholders - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2016 shares
Earnings Per Share Basic [Line Items]
Shares of restricted stock granted	61,247

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Earnings Applicable to Common Stockholders (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share Basic [Line Items]
Net income available to common stock holders, basic	$ 2,519,000	$ 1,944,000
Net income available to common stock holders, diluted	$ 2,519,000	$ 1,944,000
Effect of dilutive shares:
Weighted average number of shares outstanding, basic	5,415,339	5,358,576
Restricted Stock	63,364	56,524
Weighted average number of shares outstanding, diluted	5,478,703	5,415,100
Basic per share	$ 0.47	$ 0.36
Diluted per share	$ 0.46	$ 0.36

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Fair Value of Assets and Liabilities - Additional Information (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Other Real Estate Owned [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured at fair value on a non recurring basis	$ 4,363	$ 3,083

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Fair Value of Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	$ 253,126	$ 239,732
Obligations of U. S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	16,642	19,611
Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	97,594	97,889
Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	115,733	98,925
Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	22,203	22,346
Other
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	954	961
Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	954	961
Quoted Prices in Active Markets for Identical Assets (Level 1) | Obligations of U. S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	954	961
Significant Other Observable Inputs (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	249,698	236,214
Significant Other Observable Inputs (Level 2) | Obligations of U. S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	16,642	19,611
Significant Other Observable Inputs (Level 2) | Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	97,594	97,889
Significant Other Observable Inputs (Level 2) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	115,733	98,925
Significant Other Observable Inputs (Level 2) | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	19,729	19,789
Significant Other Observable Inputs (Level 2) | Other
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Significant Unobservable Inputs (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	2,474	2,557
Significant Unobservable Inputs (Level 3) | Obligations of U. S. Government Agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Significant Unobservable Inputs (Level 3) | Municipal securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Significant Unobservable Inputs (Level 3) | Mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	0	0
Significant Unobservable Inputs (Level 3) | Corporate obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	2,474	2,557
Significant Unobservable Inputs (Level 3) | Other
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Securities available-for-sale, at fair value	$ 0	$ 0

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Reconciliation of Activity for Assets Measured at Fair Value based on Significant Unobservable (Non-market) Information (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Fair Value Assets Measured On Recurring Basis Unobservable Input Reconciliation [Line Items]
Balance	$ 2,557	$ 2,801
Transfers into Level 3	0	0
Transfers out of Level 3	0	0
Other-than-temporary impairment loss included in earnings (loss)	0	0
Unrealized loss included in comprehensive income	(83)	(244)
Balance	$ 2,474	$ 2,557

XML

Quantitative Information About Recurring Level 3 Fair Value Measurements (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Quantitative Information About Recurring Fair Value Measurements [Line Items]
Range of Inputs, Minimum	1.18%	1.08%
Range of Inputs, Maximum	2.96%	2.77%
Fair Value Input Level 3
Quantitative Information About Recurring Fair Value Measurements [Line Items]
Fair Value	$ 2,474	$ 2,557
Valuation Technique	Discounted cash flow	Discounted cash flow
Significant Unobservable Inputs	Probability of default	Probability of default

XML

Fair Value of Assets Measured on Nonrecurring Basis (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Impaired Loans
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	$ 8,866	$ 10,127
Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	4,363	3,083
Quoted Prices in Active Markets for Identical Assets (Level 1) | Impaired Loans
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	0	0
Significant Other Observable Inputs (Level 2) | Impaired Loans
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	8,866	10,127
Significant Other Observable Inputs (Level 2) | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	4,363	3,083
Significant Unobservable Inputs (Level 3) | Impaired Loans
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	0	0
Significant Unobservable Inputs (Level 3) | Other Real Estate Owned
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Line Items]
Assets measured at fair value on a nonrecurring basis	$ 0	$ 0

XML

Fair Values of off-Balance Sheet Financial Instruments (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014
Assets:
Cash and cash equivalents	$ 95,965	$ 41,259	$ 94,474	$ 44,618
Securities available-for-sale	253,126	239,732
Securities held-to-maturity	6,851	7,092
Other securities	9,570	8,135
Loans, net	796,877	769,742
Bank-owned life insurance	14,971	14,872
Liabilities:
Noninterest-bearing deposits	194,433	189,445
Interest-bearing deposits	846,672	727,250
Subordinated debentures	10,310	10,310
FHLB and other borrowings	78,976	110,321
Quoted Prices (Level 1)
Assets:
Cash and cash equivalents	95,965	41,259
Securities available-for-sale	954	961
Securities held-to-maturity	0	0
Other securities	0	0
Loans, net	0	0
Bank-owned life insurance	0	0
Liabilities:
Noninterest-bearing deposits	0	0
Interest-bearing deposits	0	0
Subordinated debentures	0	0
FHLB and other borrowings	0	0
Significant Other Observable Inputs (Level 2)
Assets:
Cash and cash equivalents	0	0
Securities available-for-sale	249,698	236,214
Securities held-to-maturity	8,741	8,548
Other securities	9,570	8,135
Loans, net	0	0
Bank-owned life insurance	14,971	14,872
Liabilities:
Noninterest-bearing deposits	194,433	189,445
Interest-bearing deposits	846,231	726,441
Subordinated debentures	0	0
FHLB and other borrowings	78,976	110,321
Significant Unobservable Inputs (Level 3)
Assets:
Cash and cash equivalents	0	0
Securities available-for-sale	2,474	2,557
Securities held-to-maturity	0	0
Other securities	0	0
Loans, net	814,936	784,113
Bank-owned life insurance	0	0
Liabilities:
Noninterest-bearing deposits	0	0
Interest-bearing deposits	0	0
Subordinated debentures	10,310	10,310
FHLB and other borrowings	0	0
Estimated Fair Value
Assets:
Cash and cash equivalents	95,965	41,259
Securities available-for-sale	253,126	239,732
Securities held-to-maturity	8,741	8,548
Other securities	9,570	8,135
Loans, net	814,936	784,113
Bank-owned life insurance	14,971	14,872
Liabilities:
Noninterest-bearing deposits	194,433	189,445
Interest-bearing deposits	846,231	726,441
Subordinated debentures	10,310	10,310
FHLB and other borrowings	$ 78,976	$ 110,321

XML

LOANS - Additional Information (Detail) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Percentage of loan portfolio to earning assets	72.30%		73.30%
Loan to value ratio	80.00%
Troubled debt restructurings, balance	$ 6,800,000		$ 6,900,000
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance	2,981,011		$ 3,039,840
Foreclosed Real Estate Expense	1,000,000
Mortgage Loans on Real Estate, Commercial and Consumer, Net, Total	500,000
Financing Receivable [Member]
Financing Receivable, Recorded Investment [Line Items]
Non- Accrual	$ 98,000	$ 94,000

XML

Composition of Loan Portfolio (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 797,764	$ 772,515
Total loans	803,859	776,489
Allowance for loan losses	(6,982)	(6,747)
Net loans	$ 796,877	$ 769,742
Percent of loan to total loan portfolio	100.00%	100.00%
Financing Receivable [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 2,645	$ 2,650
Percent of loan to total loan portfolio	0.30%	0.30%
Mortgage loans held for sale
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 6,095	$ 3,974
Percent of loan to total loan portfolio	0.80%	0.50%
Commercial, financial and agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 126,381	$ 129,197
Percent of loan to total loan portfolio	15.70%	16.60%
Mortgage-commercial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 270,085	$ 253,309
Percent of loan to total loan portfolio	33.60%	32.60%
Mortgage-residential
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 276,272	$ 272,180
Percent of loan to total loan portfolio	34.30%	35.10%
Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 100,386	$ 99,161
Percent of loan to total loan portfolio	12.50%	12.80%
Obligations of states and subdivisions
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 7,034	$ 969
Percent of loan to total loan portfolio	0.90%	0.10%
Consumer and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for sale	$ 14,961	$ 15,049
Percent of loan to total loan portfolio	1.90%	2.00%

XML

Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Balance at beginning of period	$ 6,747
Loans charged-off:	(93)
Recoveries on loans previously charged-off:	138
Net recoveries	45
Provision for Loan Losses	190	$ 150
Balance at end of period	6,982
Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans charged-off:	(78)
Recoveries on loans previously charged-off:	44
Installment and Other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans charged-off:	(9)
Recoveries on loans previously charged-off:	18
Commercial, Financial and Agriculture
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans charged-off:	(6)
Recoveries on loans previously charged-off:	$ 76

XML

Allocation of Allowance for Loan Losses (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	$ 6,982	$ 6,747
Allowance for loan losses, percentage of total	100.00%	100.00%
Commercial Non Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	$ 1,020	$ 895
Allowance for loan losses, percentage of total	17.30%	17.10%
Real Estate Commercial
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	$ 3,410	$ 3,018
Allowance for loan losses, percentage of total	58.70%	58.40%
Consumer Real Estate
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	$ 1,584	$ 1,477
Allowance for loan losses, percentage of total	21.60%	21.90%
Consumer
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	$ 144	$ 141
Allowance for loan losses, percentage of total	2.30%	2.50%
Unallocated
Financing Receivable, Allowance for Credit Losses [Line Items]
Allowance for loan losses	$ 824	$ 1,216
Allowance for loan losses, percentage of total	0.10%	0.10%

XML

Impaired Loans (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Impaired Loans:
Impaired loans without a valuation allowance	$ 4,776	$ 6,020
Impaired loans with a valuation allowance	4,090	4,107
Total impaired loans	8,866	10,127
Allowance for loan losses on impaired loans at period End	967	957
Total nonaccrual loans	5,851	7,368
Past due 90 days or more and still accruing	628	29
Average investment in impaired loans	$ 9,496	$ 9,652

XML

Summary of Interest Recognized and Cash-Basis Interest Earned on Impaired Loans (Detail) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Financing Receivable, Impaired [Line Items]
Interest income recognized during impairment	$ 45	$ 34
Cash-basis interest income recognized	$ 45	$ 34

XML

Loans and Allowance for Loan Losses, Broken Down by Portfolio Segment (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Loans
Individually evaluated	$ 8,866	$ 10,127
Collectively evaluated	788,898	762,388
Total	797,764	772,515
Allowance for Loan Losses
Individually evaluated	967	957
Collectively evaluated	6,015	5,790
Total	6,982	6,747
Real Estate
Loans
Individually evaluated	8,556	9,782
Collectively evaluated	637,661	610,996
Total	646,217	620,778
Allowance for Loan Losses
Individually evaluated	880	882
Collectively evaluated	4,114	3,613
Total	4,994	4,495
Installment and Other
Loans
Individually evaluated	37	39
Collectively evaluated	15,257	19,591
Total	15,294	19,630
Allowance for Loan Losses
Individually evaluated	25	25
Collectively evaluated	943	1,332
Total	968	1,357
Commercial Financial And Agriculture
Loans
Individually evaluated	273	306
Collectively evaluated	135,980	131,801
Total	136,253	132,107
Allowance for Loan Losses
Individually evaluated	62	50
Collectively evaluated	958	845
Total	$ 1,020	$ 895

XML

Additional Detail of Impaired Loans Broken Out According to Class (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Impaired [Line Items]
Impaired loans with no a valuation allowance, recorded investment	$ 4,776	$ 6,020
Impaired loans with no related allowance, unpaid balance	4,815	6,058
Impaired loans with no related allowance	0	0
Impaired loans with no related allowance, average recorded investment YTD	5,398	5,314
Impaired loans with no related allowance, interest income recognized YTD	7	50
Impaired loans with a related allowance, recorded investment	4,090	4,107
Impaired loans with a related allowance, unpaid balance	4,090	4,107
Impaired loans with a related allowance	967	957
Impaired loans with a related allowance, average recored investment YTD	4,098	4,338
Impaired loans with a related allowance, interest income recognized YTD	38	161
Recorded Investment	8,866	10,127
Unpaid Balance	8,905	10,165
Related Allowance	967	957
Average Recorded Investment YTD	9,496	9,652
Interest Income Recognized YTD	45	211
Commercial installment
Financing Receivable, Impaired [Line Items]
Impaired loans with no a valuation allowance, recorded investment	0	0
Impaired loans with no related allowance, unpaid balance	0	0
Impaired loans with no related allowance	0	0
Impaired loans with no related allowance, average recorded investment YTD	0	2
Impaired loans with no related allowance, interest income recognized YTD	0	0
Impaired loans with a related allowance, recorded investment	273	306
Impaired loans with a related allowance, unpaid balance	273	306
Impaired loans with a related allowance	62	50
Impaired loans with a related allowance, average recored investment YTD	290	264
Impaired loans with a related allowance, interest income recognized YTD	3	14
Recorded Investment	273	306
Unpaid Balance	273	306
Related Allowance	62	50
Average Recorded Investment YTD	290	266
Interest Income Recognized YTD	3	14
Real Estate Commercial
Financing Receivable, Impaired [Line Items]
Impaired loans with no a valuation allowance, recorded investment	4,558	5,790
Impaired loans with no related allowance, unpaid balance	4,597	5,828
Impaired loans with no related allowance	0	0
Impaired loans with no related allowance, average recorded investment YTD	5,174	5,099
Impaired loans with no related allowance, interest income recognized YTD	7	50
Impaired loans with a related allowance, recorded investment	2,957	2,927
Impaired loans with a related allowance, unpaid balance	2,957	2,927
Impaired loans with a related allowance	452	444
Impaired loans with a related allowance, average recored investment YTD	2,942	2,891
Impaired loans with a related allowance, interest income recognized YTD	31	132
Recorded Investment	7,515	8,717
Unpaid Balance	7,554	8,755
Related Allowance	452	444
Average Recorded Investment YTD	8,116	7,990
Interest Income Recognized YTD	38	182
Consumer real estate
Financing Receivable, Impaired [Line Items]
Impaired loans with no a valuation allowance, recorded investment	212	223
Impaired loans with no related allowance, unpaid balance	212	223
Impaired loans with no related allowance	0	0
Impaired loans with no related allowance, average recorded investment YTD	218	205
Impaired loans with no related allowance, interest income recognized YTD	0	0
Impaired loans with a related allowance, recorded investment	829	842
Impaired loans with a related allowance, unpaid balance	829	842
Impaired loans with a related allowance	428	438
Impaired loans with a related allowance, average recored investment YTD	835	1,152
Impaired loans with a related allowance, interest income recognized YTD	4	15
Recorded Investment	1,041	1,065
Unpaid Balance	1,041	1,065
Related Allowance	428	438
Average Recorded Investment YTD	1,053	1,357
Interest Income Recognized YTD	4	15
Consumer installment
Financing Receivable, Impaired [Line Items]
Impaired loans with no a valuation allowance, recorded investment	6	7
Impaired loans with no related allowance, unpaid balance	6	7
Impaired loans with no related allowance	0	0
Impaired loans with no related allowance, average recorded investment YTD	6	8
Impaired loans with no related allowance, interest income recognized YTD	0	0
Impaired loans with a related allowance, recorded investment	31	32
Impaired loans with a related allowance, unpaid balance	31	32
Impaired loans with a related allowance	25	25
Impaired loans with a related allowance, average recored investment YTD	31	31
Impaired loans with a related allowance, interest income recognized YTD	0	0
Recorded Investment	37	39
Unpaid Balance	37	39
Related Allowance	25	25
Average Recorded Investment YTD	37	39
Interest Income Recognized YTD	$ 0	$ 0

XML

Information Regarding Contractually Payments Receivable, Cash Flows (Detail) $ in Thousands	Dec. 31, 2014 USD ($)
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items]
Contractually required payments	$ 40,076
Cash flows expected to be collected	50,168
Fair value of loans acquired	38,393
Commercial Financial And Agriculture
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items]
Contractually required payments	1,519
Cash flows expected to be collected	1,570
Fair value of loans acquired	1,513
Mortgage-Commercial
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items]
Contractually required payments	29,648
Cash flows expected to be collected	37,869
Fair value of loans acquired	28,875
Mortgage-Residential
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items]
Contractually required payments	7,933
Cash flows expected to be collected	9,697
Fair value of loans acquired	7,048
Commercial and other
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items]
Contractually required payments	976
Cash flows expected to be collected	1,032
Fair value of loans acquired	$ 957

XML

Changes in the Carrying Amount and Accretable Yield for Acquired Impaired Loans (Detail) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement [Line Items]
Balance at beginning of period, Accretable Yield	$ 1,219	$ 1,417
Accretion, Accretable Yield	(21)	(198)
Payments received, net, Accretable Yield	0	0
Balance at end of period, Accretable Yield	1,198	1,219
Balance at beginning of period, Carrying Amount of Loans	1,821	2,063
Accretion, Carrying Amount of Loans	21	198
Payments received, net, Carrying Amount of Loans	(59)	(440)
Balance at end of period, Carrying Amount of Loans	$ 1,783	$ 1,821

XML

Detail of Troubled Debt Restructurings (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2016 USD ($) Loans
Financing Receivable, Modifications [Line Items]
Outstanding Recorded Investment Pre-Modification	$ 296
Outstanding Recorded Investment Post-Modification	$ 289
Number of Loans | Loans	1
Interest Income Recognized	$ 4
Commercial installment
Financing Receivable, Modifications [Line Items]
Outstanding Recorded Investment Pre-Modification	0
Outstanding Recorded Investment Post-Modification	$ 0
Number of Loans | Loans	0
Interest Income Recognized	$ 0
Real Estate Commercial
Financing Receivable, Modifications [Line Items]
Outstanding Recorded Investment Pre-Modification	296
Outstanding Recorded Investment Post-Modification	$ 289
Number of Loans | Loans	1
Interest Income Recognized	$ 4
Consumer real estate
Financing Receivable, Modifications [Line Items]
Outstanding Recorded Investment Pre-Modification	0
Outstanding Recorded Investment Post-Modification	$ 0
Number of Loans | Loans	0
Interest Income Recognized	$ 0
Consumer installment
Financing Receivable, Modifications [Line Items]
Outstanding Recorded Investment Pre-Modification	0
Outstanding Recorded Investment Post-Modification	$ 0
Number of Loans | Loans	0
Interest Income Recognized	$ 0

XML

Modifications of Loans Performing (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30-89	$ 4,663	$ 4,553
Past Due 90 days and still accuring	628	29
Non- Accrual	5,851	7,368
Total	797,764	772,515
Loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans	3,015	2,758
Past Due 30-89	0	0
Past Due 90 days and still accuring	0	0
Non- Accrual	3,809	4,148
Total	6,824	6,906
Allowance for loan losses, Current Loans	119	106
Allowance for loan losses, Past Due 30-89	0	0
Allowance for loan losses, Past Due 90 days and still accruing	0	0
Allowance for loan losses, Non-Accrual	132	197
Allowance for loan losses, Total	251	303
Loans | Commercial installment
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans	199	206
Past Due 30-89	0	0
Past Due 90 days and still accuring	0	0
Non- Accrual	50	50
Total	249	256
Loans | Real Estate Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans	2,555	1,823
Past Due 30-89	0	0
Past Due 90 days and still accuring	0	0
Non- Accrual	3,598	2,934
Total	6,153	4,757
Loans | Consumer real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans	254	721
Past Due 30-89	0	0
Past Due 90 days and still accuring	0	0
Non- Accrual	133	1,135
Total	387	1,856
Loans | Consumer installment
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current Loans	7	8
Past Due 30-89	0	0
Past Due 90 days and still accuring	0	0
Non- Accrual	28	29
Total	$ 35	$ 37

XML

Summary of Loans Classified as Past Due in Excess of Thirty Days or More and Loans Classified as Non-Accrual (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	$ 4,663	$ 4,553
Past Due 90 Days Or More and Still Accruing	628	29
Non- Accrual	5,851	7,368
Total Past Due and Non- Accrual	11,142	11,950
Total Loans	797,764	772,515
Lease Financing Rec.
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	0	0
Past Due 90 Days Or More and Still Accruing	0	0
Non- Accrual	0	0
Total Past Due and Non- Accrual	0	0
Total Loans	2,645	2,650
Real Estate-construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	742	311
Past Due 90 Days Or More and Still Accruing	7	0
Non- Accrual	2,630	2,956
Total Past Due and Non- Accrual	3,379	3,267
Total Loans	100,386	99,161
Real Estate-mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	3,215	3,339
Past Due 90 Days Or More and Still Accruing	523	29
Non- Accrual	2,144	2,055
Total Past Due and Non- Accrual	5,882	5,423
Total Loans	276,272	272,180
Real Estate-non farm non residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	608	736
Past Due 90 Days Or More and Still Accruing	98	0
Non- Accrual	973	2,225
Total Past Due and Non- Accrual	1,679	2,961
Total Loans	270,085	253,309
Commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	50	97
Past Due 90 Days Or More and Still Accruing	0	0
Non- Accrual	74	100
Total Past Due and Non- Accrual	124	197
Total Loans	126,381	129,197
Obligations of states and subdivisions
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	0	0
Past Due 90 Days Or More and Still Accruing	0	0
Non- Accrual	0	0
Total Past Due and Non- Accrual	0	0
Total Loans	7,034	969
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Past Due 30 to 89 Days	48	70
Past Due 90 Days Or More and Still Accruing	0	0
Non- Accrual	30	32
Total Past Due and Non- Accrual	78	102
Total Loans	$ 14,961	$ 15,049

XML

Risk Category of Loans by Class of Loans (Excluding Mortgage Loans Held for Sale) (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	$ 798,588	$ 773,379
Less: Unearned discount	824	864
Loans, net of unearned discount	797,764	772,515
Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	780,505	753,689
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	1,193	1,002
Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	16,522	18,361
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	368	327
Real Estate Commercial
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	469,338	451,974
Less: Unearned discount	410	448
Loans, net of unearned discount	468,928	451,526
Real Estate Commercial | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	453,767	434,638
Real Estate Commercial | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	794	681
Real Estate Commercial | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	14,777	16,655
Real Estate Commercial | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	0	0
Real Estate Mortgage
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	172,679	169,327
Less: Unearned discount	64	76
Loans, net of unearned discount	172,615	169,251
Real Estate Mortgage | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	170,711	167,394
Real Estate Mortgage | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	151	153
Real Estate Mortgage | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	1,493	1,453
Real Estate Mortgage | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	324	327
Installment and Other
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	18,183	19,631
Less: Unearned discount	0	0
Loans, net of unearned discount	18,183	19,631
Installment and Other | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	18,078	19,556
Installment and Other | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	0	0
Installment and Other | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	105	75
Installment and Other | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	0	0
Commercial,Financial and Agriculture
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	138,388	132,447
Less: Unearned discount	350	340
Loans, net of unearned discount	138,038	132,107
Commercial,Financial and Agriculture | Pass
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	137,949	132,101
Commercial,Financial and Agriculture | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	248	168
Commercial,Financial and Agriculture | Substandard
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	147	178
Commercial,Financial and Agriculture | Doubtful
Financing Receivable, Recorded Investment [Line Items]
Loans and leases receivable, gross	$ 44	$ 0

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Summary of Amortized Cost and Estimated Fair Value of Available-For-Sale Securities and Held-To-Maturity Securities (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	$ 249,406
Available-for-sale Securities, Gross Unrealized Gains	5,317
Available-for-sale Securities, Gross Unrealized Losses	1,597
Available-for-sale securities, Estimated Fair Value	253,126	$ 239,732
Held-to-Maturity, Amortized Cost	6,851
Held-to-maturity Securities, Gross Unrealized Gains	1,890
Held-to-maturity Securities, Gross Unrealized Losses	0
Held-to-Maturity, Estimated Fair Value	8,741
Obligations of U.S. Government Agencies
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	16,442
Available-for-sale Securities, Gross Unrealized Gains	200
Available-for-sale Securities, Gross Unrealized Losses	0
Available-for-sale securities, Estimated Fair Value	16,642
Tax-exempt and taxable obligations of states and municipal subdivisions
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	94,487
Available-for-sale Securities, Gross Unrealized Gains	3,118
Available-for-sale Securities, Gross Unrealized Losses	11
Available-for-sale securities, Estimated Fair Value	97,594
Held-to-Maturity, Amortized Cost	6,000
Held-to-maturity Securities, Gross Unrealized Gains	1,864
Held-to-maturity Securities, Gross Unrealized Losses	0
Held-to-Maturity, Estimated Fair Value	7,864
Mortgage-backed securities
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	113,877
Available-for-sale Securities, Gross Unrealized Gains	1,914
Available-for-sale Securities, Gross Unrealized Losses	58
Available-for-sale securities, Estimated Fair Value	115,733
Held-to-Maturity, Amortized Cost	851
Held-to-maturity Securities, Gross Unrealized Gains	26
Held-to-maturity Securities, Gross Unrealized Losses	0
Held-to-Maturity, Estimated Fair Value	877
Corporate obligations
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	23,345
Available-for-sale Securities, Gross Unrealized Gains	85
Available-for-sale Securities, Gross Unrealized Losses	1,227
Available-for-sale securities, Estimated Fair Value	22,203
Other
Schedule of Trading Securities and Other Trading Assets [Line Items]
Available-for-Sale, Amortized Cost	1,255
Available-for-sale Securities, Gross Unrealized Gains	0
Available-for-sale Securities, Gross Unrealized Losses	301
Available-for-sale securities, Estimated Fair Value	$ 954

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Subsequent Events - Additional Information (Detail) - USD ($)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Subsequent Event [Line Items]
Proceeds from Recoveries of Loans Previously Charged off	$ 219,000	$ 722,000
Receivable From Recovery of Loan Previously Charged Off	$ 941,000