Note 5 - Loans

6 Months Ended

Jun. 30, 2014

Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

5.     Loans

In the tables below, loan classes are based on FDIC classification code, and portfolio segments are an aggregation of those classes based on the methodology used to develop and document the allowance for loan losses. FDIC classification codes are based on the underlying loan collateral.

Composition

The following table summarizes gross loans, categorized by portfolio segment, at the dates indicated (dollars in thousands).

	June 30, 2014					December 31, 2013
	Total		% of total			Total		% of total
Commercial real estate	$	441,170		58.6	%	$	455,452		59.4	%
Single-family residential		177,179		23.5			178,125		23.2
Commercial and industrial		72,260		9.6			73,078		9.5
Consumer		51,849		6.9			50,099		6.5
Other		10,591		1.4			10,759		1.4
Loans, gross	$	753,049		100.0	%	$	767,513		100.0	%

Residential mortgage loans serviced for the benefit of others amounted to $385.9 million and $384.5 million at June 30, 2014 and December 31, 2013, respectively, and are excluded from the Consolidated Balance Sheets since they are not owned by the Company.

Loans included in the preceding table are net of unearned income, charge-offs and unamortized deferred fees and direct loan origination costs. Net unearned income and deferred fees totaled $635 thousand and $643 thousand at June 30, 2014 and December 31, 2013, respectively.

Pledged

The Bank, as a member of the Federal Home Loan Bank (“FHLB”), must pledge collateral to borrow from the agency and cover the various Federal Reserve services that are available for use by the Bank. Acceptable collateral includes, among other types of collateral, a variety of loans including residential, multifamily, home equity lines and second mortgages as well as qualifying commercial loans. At June 30, 2014 and December 31, 2013, $181.3 million and $205.2 million of gross loans, respectively, were pledged to collateralize FHLB advances of which $86.4 million and $90.2 million, respectively, were available as lendable collateral.

At June 30, 2014 and December 31, 2013, loans totaling $588 thousand and $794 thousand, respectively, were pledged as collateral to cover the various Federal Reserve services that are available for use by the Bank of which $498 thousand and $651 thousand, respectively, were available as lendable collateral.

Concentrations

The following table summarizes loans secured by commercial real estate, categorized by class, at June 30, 2014 (dollars in thousands).

	Total commercial real estate loans		% of gross loans			% of Bank's total regulatory capital
Secured by commercial real estate
Construction, land development and other land loans	$	71,425		9.5	%		51.9	%
Multifamily residential		9,294		1.2			6.7
Nonfarm nonresidential		360,451		47.9			261.7
Total loans secured by commercial real estate	$	441,170		58.6	%		320.3	%

The following table further categorizes loans secured by commercial real estate at June 30, 2014 (dollars in thousands).

	Total commercial real estate loans		% of gross loans			% of Bank's total regulatory capital
Development commercial real estate loans
Secured by:
Land - unimproved (commercial or residential)	$	16,314		2.1	%		11.8	%
Land development - commercial		7,288		1.0			5.3
Land development - residential		7,958		1.0			5.8
Commercial construction:
Retail		2,238		0.3			1.6
Office		5,840		0.8			4.2
Multifamily		8,900		1.2			6.5
Industrial and warehouse		659		0.1			0.5
Miscellaneous commercial		6,625		0.9			4.8
Total development commercial real estate loans		55,822		7.4			40.5
Existing and other commercial real estate loans
Secured by:
Hotel / motel		53,289		7.1			38.7
Retail		26,965		3.6			19.6
Office		8,925		1.2			6.5
Multifamily		9,294		1.2			6.8
Industrial and warehouse		6,115		0.8			4.4
Healthcare		13,555		1.8			9.8
Miscellaneous commercial		101,940		13.6			74.0
Residential construction - speculative		171		-			0.1
Total existing and other commercial real estate loans		220,254		29.3			159.9
Commercial real estate owner-occupied and residential loans
Secured by:
Commercial - owner-occupied		149,662		19.9			108.7
Commercial construction - owner-occupied		5,598		0.7			4.1
Residential construction - contract		9,834		1.3			7.1
Total commercial real estate owner-occupied and residential loans		165,094		21.9			119.9
Total loans secured by commercial real estate	$	441,170		58.6	%		320.3	%

Asset Quality

The following table summarizes various internal credit-quality indicators of gross loans, by class, at June 30, 2014 (in thousands).

	Construction, land development and other land loans		Multifamily residential		Nonfarm nonresidential		Total commercial real estate
Grade 1	$	-	$	-	$	-	$	-
Grade 2		-		-		-		-
Grade 3		10,829		157		64,867		75,853
Grade 4		30,820		1,198		170,994		203,012
Grade W		9,252		7,938		78,806		95,996
Grade 5		1,188		-		18,830		20,018
Grade 6		2,212		-		25,320		27,532
Grade 7		544		-		1,581		2,125
Not risk rated*		16,580		1		53		16,634
Total	$	71,425	$	9,294	$	360,451	$	441,170

*Consumer real estate loans, included within construction, land development and other land loans, are not risk rated in accordance with the Company's policy.

	Commercial and industrial
Grade 1	$	792
Grade 2		1,607
Grade 3		10,299
Grade 4		50,155
Grade W		5,209
Grade 5		704
Grade 6		3,037
Grade 7		410
Not risk rated		47
Total	$	72,260

	Single-family residential revolving, open-end loans		Single-family residential closed-end, first lien		Single-family residential closed-end, junior lien		Total single-family residential loans
Performing	$	73,727	$	96,889	$	3,442	$	174,058
Nonperforming		583		2,433		105		3,121
Total	$	74,310	$	99,322	$	3,547	$	177,179

	Indirect automobile		All other consumer		Total consumer
Performing	$	40,373	$	11,323	$	51,696
Nonperforming		129		24		153
Total	$	40,502	$	11,347	$	51,849

	Other
Performing	$	10,591
Nonperforming		-
Total	$	10,591

The following table summarizes various internal credit-quality indicators of gross loans, by class, at December 31, 2013 (in thousands).

	Construction, land development and other land loans		Multifamily residential		Nonfarm nonresidential		Total commercial real estate
Grade 1	$	-	$	-	$	-	$	-
Grade 2		-		-		-		-
Grade 3		10,025		259		69,954		80,238
Grade 4		34,654		887		171,585		207,126
Grade W		8,679		9,079		83,843		101,601
Grade 5		2,202		-		16,727		18,929
Grade 6		4,400		181		24,352		28,933
Grade 7		803		-		1,604		2,407
Not risk rated*		15,795		11		412		16,218
Total	$	76,558	$	10,417	$	368,477	$	455,452

*Consumer real estate loans, included within construction, land development and other land loans, are not risk rated in accordance with the Company's policy.

	Commercial and industrial
Grade 1	$	879
Grade 2		1,186
Grade 3		8,830
Grade 4		51,167
Grade W		5,151
Grade 5		2,361
Grade 6		2,923
Grade 7		494
Not risk rated		87
Total	$	73,078

	Single-family residential revolving, open-end loans		Single-family residential closed-end, first lien		Single-family residential closed-end, junior lien		Total single-family residential loans
Performing	$	69,121	$	101,100	$	3,802	$	174,023
Nonperforming		797		3,176		129		4,102
Total	$	69,918	$	104,276	$	3,931	$	178,125

	Indirect automobile		All other consumer		Total consumer
Performing	$	38,514	$	11,349	$	49,863
Nonperforming		210		26		236
Total	$	38,724	$	11,375	$	50,099

	Other
Performing	$	10,759
Nonperforming		-
Total	$	10,759

The following table summarizes delinquencies, by class, at June 30, 2014 (in thousands).

	30-89 days past due and still accruing		Greater than 90 days past due and still accruing		Greater than 90 days past due and not accruing (nonaccrual)		Total past due		Current		Loans, gross
Construction, land development and other land loans	$	338	$	731	$	1,235	$	2,304	$	69,121	$	71,425
Multifamily residential		-		-		-		-		9,294		9,294
Nonfarm nonresidential		210		-		9,285		9,495		350,956		360,451
Total commercial real estate		548		731		10,520		11,799		429,371		441,170
Single-family real estate, revolving, open-end loans		429		-		583		1,012		73,298		74,310
Single-family real estate, closed-end, first lien		534		-		2,433		2,967		96,355		99,322
Single-family real estate, closed-end, junior lien		84		-		105		189		3,358		3,547
Total single-family residential		1,047		-		3,121		4,168		173,011		177,179
Commercial and industrial		301		-		1,475		1,776		70,484		72,260
Indirect automobile		227		-		129		356		40,146		40,502
All other consumer		32		-		24		56		11,291		11,347
Total consumer		259		-		153		412		51,437		51,849
Farmland		-		-		-		-		3,502		3,502
Obligations of states and political subdivisions of the U.S.		-		-		-		-		459		459
Other		-		-		-		-		6,630		6,630
Total other		-		-		-		-		10,591		10,591
Loans, gross	$	2,155	$	731	$	15,269	$	18,155	$	734,894	$	753,049

Additional interest income of $351 thousand and $813 thousand would have been reported during the three and six months ended June 30, 2014, respectively, had loans classified as nonaccrual during the period performed in accordance with their current contractual terms. This interest income was not recorded in the Company’s Consolidated Statements of Income.

The following table summarizes delinquencies, by class, at December 31, 2013 (in thousands).

	30-89 days past due and still accruing		Greater than 90 days past due and not accruing (nonaccrual)		Total past due		Current		Loans, gross
Construction, land development and other land loans	$	82	$	3,872	$	3,954	$	72,604	$	76,558
Multifamily residential		-		181		181		10,236		10,417
Nonfarm nonresidential		1,199		4,832		6,031		362,446		368,477
Total commercial real estate		1,281		8,885		10,166		445,286		455,452
Single-family real estate, revolving, open-end loans		148		797		945		68,973		69,918
Single-family real estate, closed-end, first lien		1,091		3,176		4,267		100,009		104,276
Single-family real estate, closed-end, junior lien		41		129		170		3,761		3,931
Total single-family residential		1,280		4,102		5,382		172,743		178,125
Commercial and industrial		306		1,885		2,191		70,887		73,078
Indirect automobile		294		210		504		38,220		38,724
All other consumer		41		26		67		11,308		11,375
Total consumer		335		236		571		49,528		50,099
Farmland		-		-		-		3,394		3,394
Obligations of states and political subdivisions of the U.S.		-		-		-		497		497
Other		-		-		-		6,868		6,868
Total other		-		-		-		10,759		10,759
Loans, gross	$	3,202	$	15,108	$	18,310	$	749,203	$	767,513

Troubled Debt Restructurings. The following table summarizes the carrying balance of troubled debt restructurings at the dates indicated (in thousands).

	June 30, 2014		December 31, 2013
Performing	$	16,436	$	26,744
Nonperforming		5,852		2,184
Total troubled debt restructurings	$	22,288	$	28,928

Loans classified as troubled debt restructurings may be removed from this status for disclosure purposes after a specified period of time if the restructured agreement specifies an interest rate equal to or greater than the rate that the lender was willing to accept at the time of the restructuring for a new loan with comparable risk, and the loan is performing in accordance with the terms specified by the restructured agreement. The following table summarizes troubled debt restructurings removed from this classification during the periods indicated (dollars in thousands).

	For the three months ended June 30,				For the six months ended June 30,
	2014		2013		2014		2013
Carrying balance	$	6,543	$	-	$	7,499	$	5,842
Count		1		-		4		8

The following table summarizes, by class, loans that were modified resulting in troubled debt restructurings during the periods indicated (dollars in thousands).

	For the three months ended June 30,
	2014						2013
	Number of loans		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Number of loans		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Nonfarm nonresidential		1	$	883	$	883		2	$	2,619	$	2,619
Total commercial real estate		1		883		883		2		2,619		2,619
Commercial and industrial		3		2,665		1,365		-		-		-
Loans, gross		4	$	3,548	$	2,248		2	$	2,619	$	2,619

	For the six months ended June 30,
	2014						2013
	Number of loans		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Number of loans		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Construction, land development and other land loans		-	$	-	$	-		1	$	60	$	60
Nonfarm nonresidential		1		883		883		2		2,619		2,619
Total commercial real estate		1		883		883		3		2,679		2,679
Commercial and industrial		3		2,665		1,365		-		-		-
Loans, gross		4	$	3,548	$	2,248		3	$	2,679	$	2,679

The following table summarizes, by type of concession, loans that were modified resulting in troubled debt restructurings during the periods indicated (dollars in thousands).

	For the three months ended June 30,
	2014						2013
	Number of loans		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Number of loans		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Term concession		1	$	883	$	883		2	$	2,619	$	2,619
Term and principal concessions		3		2,665		1,365		-		-		-
Loans, gross		4	$	3,548	$	2,248		2	$	2,619	$	2,619

	For the six months ended June 30,
	2014						2013
	Number of loans		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment		Number of loans		Pre-modification outstanding recorded investment		Post-modification outstanding recorded investment
Rate concession		-	$	-	$	-		1	$	60	$	60
Term concession		1		883		883		2		2,619		2,619
Term and principal concessions		3		2,665		1,365		-		-		-
Loans, gross		4	$	3,548	$	2,248		3	$	2,679	$	2,679

The following table summarizes, by class, loans that were modified resulting in troubled debt restructurings within the previous 12-month period for which there was a payment default during the periods indicated (dollars in thousands).

	For the three months ended June 30,								For the six months ended June 30,
	2014				2013				2014				2013
	Number of loans		Recorded investment		Number of loans		Recorded investment		Number of loans		Recorded investment		Number of loans		Recorded investment
Construction, land development and other land loans		-	$	-		1	$	56		-	$	-		1	$	56
Nonfarm nonresidential		-		-		-		-		2		2,597		-		-
Total commercial real estate		-		-		1		56		2		2,597		1		56
Commercial and industrial		1		236		-		-		1		236		-		-
Loans, gross		1	$	236		1	$	56		3	$	2,833		1	$	56

Impaired Loans. The following tables summarize the composition of impaired loans at the dates indicated (in thousands).

	June 30, 2014		December 31, 2013
Performing troubled debt restructured loans	$	16,436	$	26,744
Nonperforming troubled debt restructured loans		5,852		2,184
Nonperforming other loans		4,244		6,580
Performing other loans		16,141		9,187
Total impaired loans	$	42,673	$	44,695

The following table summarizes the composition of and information relative to impaired loans, by class, at June 30, 2014 (in thousands).

	Loans, gross
	Recorded investment		Unpaid principal balance		Related  allowance
With no related allowance recorded:
Construction, land development and other land loans	$	710	$	4,111
Multifamily residential		-		59
Nonfarm nonresidential		22,383		27,191
Total commercial real estate		23,093		31,361
Single-family real estate, revolving, open-end loans		-		-
Single-family real estate, closed-end, first lien		912		3,007
Single-family real estate, closed-end, junior lien		26		26
Total single-family residential		938		3,033
Commercial and industrial		373		373
Consumer		-		-
Total impaired loans with no related allowance recorded	$	24,404	$	34,767
With an allowance recorded:
Construction, land development and other land loans	$	258	$	258	$	68
Multifamily residential		-		-		-
Nonfarm nonresidential		15,526		16,981		1,690
Total commercial real estate		15,784		17,239		1,758
Single-family real estate, revolving, open-end loans		404		404		83
Single-family real estate, closed-end, first lien		250		250		28
Single-family real estate, closed-end, junior lien		165		165		54
Total single-family residential		819		819		165
Commercial and industrial		1,650		2,949		99
Consumer		16		16		3
Total impaired loans with an allowance recorded	$	18,269	$	21,023	$	2,025
Total:
Construction, land development and other land loans	$	968	$	4,369	$	68
Multifamily residential		-		59		-
Nonfarm nonresidential		37,909		44,172		1,690
Total commercial real estate		38,877		48,600		1,758
Single-family real estate, revolving, open-end loans		404		404		83
Single-family real estate, closed-end, first lien		1,162		3,257		28
Single-family real estate, closed-end, junior lien		191		191		54
Total single-family residential		1,757		3,852		165
Commercial and industrial		2,023		3,322		99
Consumer		16		16		3
Total impaired loans	$	42,673	$	55,790	$	2,025

Interest income recognized on impaired loans during the three and six months ended June 30, 2014 was $171 thousand and $340 thousand, respectively. The average balance of total impaired loans was $42.9 million and $43.5 million for the same periods.

The following table summarizes the composition of and information relative to impaired loans, by class, at December 31, 2013 (in thousands).

	Loans, gross
	Recorded investment		Unpaid principal balance		Related allowance
With no related allowance recorded:
Construction, land development and other land loans	$	3,244	$	6,503
Multifamily residential		181		239
Nonfarm nonresidential		17,414		24,422
Total commercial real estate		20,839		31,164
Single-family real estate, revolving, open-end loans		-		-
Single-family real estate, closed-end, first lien		1,369		5,811
Single-family real estate, closed-end, junior lien		-		-
Total single-family residential		1,369		5,811
Commercial and industrial		753		1,150
Consumer		7		7
Total impaired loans with no related allowance recorded	$	22,968	$	38,132
With an allowance recorded:
Construction, land development and other land loans	$	260	$	260	$	68
Multifamily residential		-		-		-
Nonfarm nonresidential		18,839		18,839		1,668
Total commercial real estate		19,099		19,099		1,736
Single-family real estate, revolving, open-end loans		404		404		83
Single-family real estate, closed-end, first lien		323		323		18
Single-family real estate, closed-end, junior lien		195		195		62
Total single-family residential		922		922		163
Commercial and industrial		1,680		2,980		644
Consumer		26		26		12
Total impaired loans with an allowance recorded	$	21,727	$	23,027	$	2,555
Total:
Construction, land development and other land loans	$	3,504	$	6,763	$	68
Multifamily residential		181		239		-
Nonfarm nonresidential		36,253		43,261		1,668
Total commercial real estate		39,938		50,263		1,736
Single-family real estate, revolving, open-end loans		404		404		83
Single-family real estate, closed-end, first lien		1,692		6,134		18
Single-family real estate, closed-end, junior lien		195		195		62
Total single-family residential		2,291		6,733		163
Commercial and industrial		2,433		4,130		644
Consumer		33		33		12
Total impaired loans	$	44,695	$	61,159	$	2,555

Allowance for Loan Losses

The following tables summarize the allowance for loan losses and recorded investment in gross loans, by portfolio segment, at the dates and for the periods indicated (in thousands).

	For the three months ended June 30, 2014
	Commercial		Single-family		Commercial and
	real estate		residential		industrial			Consumer			Other		Total
Allowance for loan losses, beginning of period	$	10,457	$	3,074	$	1,523		$	1,128		$	61	$	16,243
Provision for loan losses		174		109		(307	)		(180	)		204		-
Loan charge-offs		618		85		145			54			112		1,014
Loan recoveries		246		14		12			21			74		367
Net loans charged-off		372		71		133			33			38		647
Allowance for loan losses, end of period	$	10,259	$	3,112	$	1,083		$	915		$	227	$	15,596

	For the six months ended June 30, 2014
	Commercial		Single-family		Commercial and
	real estate		residential		industrial			Consumer			Other			Total
Allowance for loan losses, beginning of period	$	10,565	$	3,124	$	1,682		$	1,118		$	(4	)	$	16,485
Provision for loan losses		222		72		(478	)		(145	)		329			-
Loan charge-offs		779		189		145			110			267			1,490
Loan recoveries		251		105		24			52			169			601
Net loans charged-off		528		84		121			58			98			889
Allowance for loan losses, end of period	$	10,259	$	3,112	$	1,083		$	915		$	227		$	15,596

	June 30, 2014
	Commercial		Single-family		Commercial and
	real estate		residential		industrial		Consumer		Other		Total
Individually evaluated for impairment	$	1,758	$	165	$	99	$	3	$	-	$	2,025
Collectively evaluated for impairment		8,501		2,947		984		912		227		13,571
Allowance for loan losses, end of period	$	10,259	$	3,112	$	1,083	$	915	$	227	$	15,596
Individually evaluated for impairment	$	38,877	$	1,757	$	2,023	$	16	$	-	$	42,673
Collectively evaluated for impairment		402,293		175,422		70,237		51,833		10,591		710,376
Loans, gross	$	441,170	$	177,179	$	72,260	$	51,849	$	10,591	$	753,049

	For the three months ended June 30, 2013
	Commercial			Single-family		Commercial and
	real estate			residential		industrial		Consumer		Other		Total
Allowance for loan losses, beginning of period	$	11,614		$	2,949	$	1,890	$	1,013	$	4	$	17,470
Provision for loan losses		(328	)		352		559		35		52		670
Loan charge-offs		294			299		335		64		135		1,127
Loan recoveries		37			16		25		41		86		205
Net loans charged-off		257			283		310		23		49		922
Allowance for loan losses, end of period	$	11,029		$	3,018	$	2,139	$	1,025	$	7	$	17,218

	For the six months ended June 30, 2013
	Commercial			Single-family		Commercial and
	real estate			residential		industrial		Consumer		Other		Total
Allowance for loan losses, beginning of period	$	12,317		$	3,140	$	1,264	$	1,093	$	11	$	17,825
Provision for loan losses		(598	)		251		1,214		18		135		1,020
Loan charge-offs		758			432		374		161		350		2,075
Loan recoveries		68			59		35		75		211		448
Net loans charged-off		690			373		339		86		139		1,627
Allowance for loan losses, end of period	$	11,029		$	3,018	$	2,139	$	1,025	$	7	$	17,218

	June 30, 2013
	Commercial		Single-family		Commercial and
	real estate		residential		industrial		Consumer		Other		Total
Individually evaluated for impairment	$	2,001	$	209	$	836	$	4	$	-	$	3,050
Collectively evaluated for impairment		9,028		2,809		1,303		1,021		7		14,168
Allowance for loan losses, end of period	$	11,029	$	3,018	$	2,139	$	1,025	$	7	$	17,218
Individually evaluated for impairment	$	40,953	$	2,797	$	2,788	$	36	$	-	$	46,574
Collectively evaluated for impairment		408,666		167,938		61,205		48,444		8,528		694,781
Loans, gross	$	449,619	$	170,735	$	63,993	$	48,480	$	8,528	$	741,355