Note 5 - Loans

3 Months Ended

Mar. 31, 2015

Receivables [Abstract]

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

5.     Loans

In the tables below, loan classes are based on FDIC classification codes, 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).

	March 31, 2015					December 31, 2014
	Total		% of total			Total		% of total
Commercial real estate	$	430,098		51.7	%	$	430,025		53.4	%
Single-family residential		217,174		26.1			204,439		25.4
Commercial and industrial		96,237		11.6			80,927		10.0
Consumer		75,921		9.1			76,984		9.6
Other		12,599		1.5			12,684		1.6
Loans, gross	$	832,029		100.0	%	$	805,059		100.0	%

Net unearned income and deferred fees totaled $591 thousand and $596 thousand at March 31, 2015 and December 31, 2014, respectively. Unamortized purchase premiums totaled $1.5 million and $1.3 million at March 31, 2015 and December 31, 2014, respectively, and are included in the applicable portfolio segment in the table above.

Residential mortgage loans serviced for the benefit of others totaled $373.5 million and $375.1 million at March 31, 2015 and December 31, 2014, respectively, and are excluded from the Consolidated Balance Sheets since they are not owned by the Company.

Pledged

The Bank, as a member of the FHLB of Atlanta, must pledge collateral to borrow from the FHLB 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 March 31, 2015 and December 31, 2014, $164.0 million and $170.6 million of gross loans, respectively, were pledged to collateralize FHLB advances of which $75.7 million and $79.1 million, respectively, were available as lendable collateral.

At March 31, 2015 and December 31, 2014, loans totaling $40.4 million and $38.2 million, respectively, were pledged as collateral to cover the various Federal Reserve services that are available for use by the Bank of which $29.5 million and $27.8 million, respectively, were available as lendable collateral.

Concentrations

The following table summarizes loans secured by commercial real estate, categorized by class, at March 31, 2015 (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	$	48,002		5.8	%		32.9	%
Multifamily residential		8,868		1.1			6.1
Nonfarm nonresidential		373,228		44.8			256.0
Total loans secured by commercial real estate	$	430,098		51.7	%		295.0	%

The following table further categorizes loans secured by commercial real estate at March 31, 2015 (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)	$	14,849		1.8	%		10.2	%
Land development - commercial		11,999		1.4			8.2
Land development - residential		5,764		0.7			4.0
Commercial construction:
Retail		2,551		0.3			1.7
Miscellaneous commercial		32		-			-
Total development commercial real estate loans		35,195		4.2			24.1
Existing and other commercial real estate loans Secured by:
Hotel / motel		39,909		4.8			27.4
Retail		36,824		4.4			25.2
Office		27,201		3.3			18.7
Multifamily		8,868		1.1			6.1
Industrial and warehouse		5,802		0.7			4.0
Healthcare		12,992		1.6			8.9
Miscellaneous commercial		100,151		12.0			68.7
Residential construction - speculative		347		-			0.2
Total existing and other commercial real estate loans		232,094		27.9			159.2
Commercial real estate owner-occupied and residential loans Secured by:
Commercial - owner-occupied		150,349		18.1			103.1
Commercial construction - owner-occupied		6,026		0.7			4.2
Residential construction - contract		6,434		0.8			4.4
Total commercial real estate owner-occupied and residential loans		162,809		19.6			111.7
Total loans secured by commercial real estate	$	430,098		51.7	%		295.0	%

Asset Quality

The following table summarizes various internal credit-quality indicators of gross loans, by class, at March 31, 2015 (in thousands).

	Construction, land development and other land loans		Multifamily residential		Nonfarm nonresidential		Total commercial real estate
Grade 1	$	-	$	-	$	-	$	-
Grade 2		-		-		-		-
Grade 3		979		138		75,334		76,451
Grade 4		23,052		1,164		186,913		211,129
Grade W		9,835		7,563		61,814		79,212
Grade 5		130		-		17,175		17,305
Grade 6		1,603		-		30,780		32,383
Grade 7		-		-		1,030		1,030
Not risk rated*		12,403		3		182		12,588
Total	$	48,002	$	8,868	$	373,228	$	430,098

      *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	$	393
Grade 2		1,685
Grade 3		13,268
Grade 4		69,543
Grade W		3,838
Grade 5		4,789
Grade 6		2,245
Grade 7		389
Not risk rated		87
Total	$	96,237

	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
Accrual	$	82,404	$	129,455	$	2,745	$	214,604
Nonaccrual		702		1,821		47		2,570
Total	$	83,106	$	131,276	$	2,792	$	217,174

	Indirect automobile		All other consumer		Total consumer
Accrual	$	65,542	$	10,243	$	75,785
Nonaccrual		113		23		136
Total	$	65,655	$	10,266	$	75,921

	Other
Accrual	$	12,599
Nonaccrual		-
Total	$	12,599

The following table summarizes various internal credit-quality indicators of gross loans, by class, at December 31, 2014 (in thousands).

	Construction, land development and other land loans		Multifamily residential		Nonfarm nonresidential		Total commercial real estate
Grade 1	$	-	$	-	$	-	$	-
Grade 2		-		-		-		-
Grade 3		3,337		144		74,966		78,447
Grade 4		17,826		1,191		183,829		202,846
Grade W		9,595		7,690		62,429		79,714
Grade 5		138		-		25,502		25,640
Grade 6		1,724		-		25,131		26,855
Grade 7		-		-		1,051		1,051
Not risk rated*		15,443		-		29		15,472
Total	$	48,063	$	9,025	$	372,937	$	430,025

      *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	$	753
Grade 2		1,534
Grade 3		12,864
Grade 4		53,171
Grade W		3,953
Grade 5		5,786
Grade 6		2,476
Grade 7		339
Not risk rated		51
Total	$	80,927

	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
Accrual	$	79,667	$	119,079	$	2,710	$	201,456
Nonaccrual		977		1,928		78		2,983
Total	$	80,644	$	121,007	$	2,788	$	204,439

	Indirect automobile		All other consumer		Total consumer
Accrual	$	66,161	$	10,673	$	76,834
Nonaccrual		116		34		150
Total	$	66,277	$	10,707	$	76,984

	Other
Accrual	$	12,684
Nonaccrual		-
Total	$	12,684

The following table summarizes delinquencies, by class, at March 31, 2015 (in thousands).

	30-89 days past due and still accruing interest		Greater than 90 days past due and still accruing interest		Greater than 90 days past due and not accruing interest (nonaccrual)		Total past due		Current		Loans, gross
Construction, land development and other land loans	$	-	$	-	$	345	$	345	$	47,657	$	48,002
Multifamily residential		-		-		-		-		8,868		8,868
Nonfarm nonresidential		1,064		-		6,842		7,906		365,322		373,228
Total commercial real estate		1,064		-		7,187		8,251		421,847		430,098
Single-family real estate, revolving, open-end loans		229		-		702		931		82,175		83,106
Single-family real estate, closed-end, first lien		754		233		1,821		2,808		128,468		131,276
Single-family real estate, closed-end, junior lien		100		-		47		147		2,645		2,792
Total single-family residential		1,083		233		2,570		3,886		213,288		217,174
Commercial and industrial		339		-		469		808		95,429		96,237
Indirect automobile		272		-		113		385		65,270		65,655
All other consumer		29		-		23		52		10,214		10,266
Total consumer		301		-		136		437		75,484		75,921
Farmland		-		-		-		-		5,897		5,897
Obligations of states and political subdivisions of the U.S.		-		-		-		-		396		396
Other		-		-		-		-		6,306		6,306
Total other		-		-		-		-		12,599		12,599
Loans, gross	$	2,787	$	233	$	10,362	$	13,382	$	818,647	$	832,029

Additional interest income of $80 thousand would have been reported during the three months ended March 31, 2015 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, 2014 (in thousands).

	30-89 days past due and still accruing interest		Greater than 90 days past due and still accruing interest		Greater than 90 days past due and not accruing interest (nonaccrual)		Total past due		Current		Loans, gross
Construction, land development and other land loans	$	112	$	-	$	441	$	553	$	47,510	$	48,063
Multifamily residential		-		-		-		-		9,025		9,025
Nonfarm nonresidential		2,102		-		8,174		10,276		362,661		372,937
Total commercial real estate		2,214		-		8,615		10,829		419,196		430,025
Single-family real estate, revolving, open-end loans		151		-		977		1,128		79,516		80,644
Single-family real estate, closed-end, first lien		827		238		1,928		2,993		118,014		121,007
Single-family real estate, closed-end, junior lien		16		-		78		94		2,694		2,788
Total single-family residential		994		238		2,983		4,215		200,224		204,439
Commercial and industrial		361		-		715		1,076		79,851		80,927
Indirect automobile		283		-		116		399		65,878		66,277
All other consumer		33		-		34		67		10,640		10,707
Total consumer		316		-		150		466		76,518		76,984
Farmland		-		-		-		-		6,032		6,032
Obligations of states and political subdivisions of the U.S.		-		-		-		-		416		416
Other		-		-		-		-		6,236		6,236
Total other		-		-		-		-		12,684		12,684
Loans, gross	$	3,885	$	238	$	12,463	$	16,586	$	788,473	$	805,059

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

	March 31,		December 31,
	2015		2014
Accrual	$	14,255	$	15,585
Nonaccrual		4,987		4,286
Total troubled debt restructurings	$	19,242	$	19,871

The following table summarizes troubled debt restructurings removed from this classification during the periods indicated (dollars in thousands). 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.

	For the three months ended March 31,
	2015		2014
Carrying balance	$	-	$	956
Count		-		3

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 March 31,
	2015						2014
	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
Single-family real estate		1	$	52	$	52		-		-		-
Loans, gross		1	$	52	$	52		-	$	-	$	-

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 March 31,
	2015						2014
	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	$	52	$	52		-		-		-
Loans, gross		1	$	52	$	52		-	$	-	$	-

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 March 31,
	2015				2014
	Number of loans		Recorded investment		Number of loans		Recorded investment
Nonfarm nonresidential		-	$	-		2	$	2,597
Total commercial real estate		-		-		2		2,597
Loans, gross		-	$	-		2	$	2,597

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

	March 31,		December 31,
	2015		2014
Accrual troubled debt restructured loans	$	14,255	$	15,585
Nonaccrual troubled debt restructured loans		4,987		4,286
Accrual other loans		7,794		7,955
Nonaccrual other loans		1,679		3,736
Total impaired loans	$	28,715	$	31,562

The following table summarizes the composition of and information relative to impaired loans, by class, at March 31, 2015 (in thousands).

	Loans, gross
	Recorded investment		Unpaid principal balance		Related allowance
With no related allowance recorded:
Construction, land development and other land loans	$	185	$	185
Multifamily residential		-		-
Nonfarm nonresidential		18,077		19,044
Total commercial real estate		18,262		19,229
Single-family real estate, revolving, open-end loans		-		-
Single-family real estate, closed-end, first lien		564		668
Single-family real estate, closed-end, junior lien		23		23
Total single-family residential		587		691
Commercial and industrial		426		1,776
Consumer		-		-
Total impaired loans with no related allowance recorded	$	19,275	$	21,696
With an allowance recorded:
Construction, land development and other land loans	$	101	$	101	$	-
Multifamily residential		-		-		-
Nonfarm nonresidential		8,358		9,812		1,254
Total commercial real estate		8,459		9,913		1,254
Single-family real estate, revolving, open-end loans		-		-		-
Single-family real estate, closed-end, first lien		256		256		28
Single-family real estate, closed-end, junior lien		104		104		40
Total single-family residential		360		360		68
Commercial and industrial		607		607		116
Consumer		14		14		2
Total impaired loans with an allowance recorded	$	9,440	$	10,894	$	1,440
Total:
Construction, land development and other land loans	$	286	$	286	$	-
Multifamily residential		-		-		-
Nonfarm nonresidential		26,435		28,856		1,254
Total commercial real estate		26,721		29,142		1,254
Single-family real estate, revolving, open-end loans		-		-		-
Single-family real estate, closed-end, first lien		820		924		28
Single-family real estate, closed-end, junior lien		127		127		40
Total single-family residential		947		1,051		68
Commercial and industrial		1,033		2,383		116
Consumer		14		14		2
Total impaired loans	$	28,715	$	32,590	$	1,440

Interest income recognized on impaired loans during the three months ended March 31, 2015 was $256 thousand. The average balance of total impaired loans was $30.1 million for the same period.

The following table summarizes the composition of and information relative to impaired loans, by class, at December 31, 2014 (in thousands).

	Loans, gross
	Recorded investment		Unpaid principal balance		Related allowance
With no related allowance recorded:
Construction, land development and other land loans	$	283	$	805
Multifamily residential		-		-
Nonfarm nonresidential		18,534		23,055
Total commercial real estate		18,817		23,860
Single-family real estate, revolving, open-end loans		333		333
Single-family real estate, closed-end, first lien		645		750
Single-family real estate, closed-end, junior lien		24		24
Total single-family residential		1,002		1,107
Commercial and industrial		607		2,208
Consumer		-		-
Total impaired loans with no related allowance recorded	$	20,426	$	27,175
With an allowance recorded:
Construction, land development and other land loans	$	6	$	6	$	-
Multifamily residential		-		-		-
Nonfarm nonresidential		10,186		12,021		1,555
Total commercial real estate		10,192		12,027		1,555
Single-family real estate, revolving, open-end loans		-		-		-
Single-family real estate, closed-end, first lien		208		208		24
Single-family real estate, closed-end, junior lien		106		106		41
Total single-family residential		314		314		65
Commercial and industrial		616		616		115
Consumer		14		14		2
Total impaired loans with an allowance recorded	$	11,136	$	12,971	$	1,737
Total:
Construction, land development and other land loans	$	289	$	811	$	-
Multifamily residential		-		-		-
Nonfarm nonresidential		28,720		35,076		1,555
Total commercial real estate		29,009		35,887		1,555
Single-family real estate, revolving, open-end loans		333		333		-
Single-family real estate, closed-end, first lien		853		958		24
Single-family real estate, closed-end, junior lien		130		130		41
Total single-family residential		1,316		1,421		65
Commercial and industrial		1,223		2,824		115
Consumer		14		14		2
Total impaired loans	$	31,562	$	40,146	$	1,737

 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 March 31, 2015
	Commercial			Single-family			Commercial and
	real estate			residential			industrial			Consumer			Other			Total
Allowance for loan losses, beginning of period	$	7,373		$	2,856		$	1,047		$	1,338		$	306			12,920
Provision for loan losses		62			174			131			12			21			400
Loan charge-offs		398			25			73			45			164			705
Loan recoveries		(52	)		(18	)		(135	)		(17	)		(77	)		(299	)
Net loans charged-off (recovered)		346			7			(62	)		28			87			406
Allowance for loan losses, end of period	$	7,089		$	3,023		$	1,240		$	1,322		$	240		$	12,914

	March 31, 2015
	Commercial		Single-family		Commercial and
	real estate		residential		industrial		Consumer		Other		Total
Individually evaluated for impairment	$	1,254	$	68	$	116	$	2	$	-	$	1,440
Collectively evaluated for impairment		5,835		2,955		1,124		1,320		240		11,474
Allowance for loan losses, end of period	$	7,089	$	3,023	$	1,240	$	1,322	$	240	$	12,914
Individually evaluated for impairment	$	26,721	$	947	$	1,033	$	14	$	-	$	28,715
Collectively evaluated for impairment		403,377		216,227		95,204		75,907		12,599		803,314
Loans, gross	$	430,098	$	217,174	$	96,237	$	75,921	$	12,599	$	832,029

	For the three months ended March 31, 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		48			(37	)		(171	)		35			125			-
Loan charge-offs		161			104			-			56			155			476
Loan recoveries		(5	)		(91	)		(12	)		(31	)		(95	)		(234	)
Net loans charged-off (recovered)		156			13			(12	)		25			60			242
Allowance for loan losses, end of period	$	10,457		$	3,074		$	1,523		$	1,128		$	61		$	16,243

	March 31, 2014
	Commercial		Single-family		Commercial and
	real estate		residential		industrial		Consumer		Other		Total
Individually evaluated for impairment	$	1,838	$	151	$	478	$	3	$	-	$	2,470
Collectively evaluated for impairment		8,619		2,923		1,045		1,125		61		13,773
Allowance for loan losses, end of period	$	10,457	$	3,074	$	1,523	$	1,128	$	61	$	16,243
Individually evaluated for impairment	$	39,211	$	1,772	$	2,376	$	23	$	-	$	43,382
Collectively evaluated for impairment		405,942		174,682		70,101		51,296		10,475		712,496
Loans, gross	$	445,153	$	176,454	$	72,477	$	51,319	$	10,475	$	755,878