Credit Quality (Tables)

6 Months Ended

Jun. 30, 2016

Loans Held for Investment by Internal Credit Risk Grade

The following tables present the recorded investment of the loan portfolio, disaggregated by class and credit quality, as of the dates indicated. Losses on covered loans are generally reimbursable by the FDIC at the applicable loss share percentage, 80%; therefore, covered loans are disclosed separately.

	June 30, 2016
(Amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Non-covered loans
Commercial loans
Construction, development, and other land	$	57,254	$	976	$	741	$	—	$	—	$	58,971
Commercial and industrial		87,974		3,575		1,242		—		—		92,791
Multi-family residential		100,210		8,593		848		—		—		109,651
Single family non-owner occupied		142,725		4,328		6,255		—		—		153,308
Non-farm, non-residential		523,062		16,241		9,601		867		—		549,771
Agricultural		4,373		48		—		—		—		4,421
Farmland		25,098		1,911		506		—		—		27,515
Consumer real estate loans
Home equity lines		103,855		1,015		1,647		—		—		106,517
Single family owner occupied		477,588		6,232		19,725		512		—		504,057
Owner occupied construction		42,474		—		712		—		—		43,186
Consumer and other loans
Consumer loans		75,475		42		186		—		—		75,703
Other		7,507		—		—		—		—		7,507
Total non-covered loans		1,647,595		42,961		41,463		1,379		—		1,733,398
Covered loans
Commercial loans
Construction, development, and other land		3,163		1,237		1,087		—		—		5,487
Commercial and industrial		954		—		19		—		—		973
Multi-family residential		—		—		74		—		—		74
Single family non-owner occupied		1,488		66		312		—		—		1,866
Non-farm, non-residential		7,612		697		1,261		—		—		9,570
Agricultural		26		—		—		—		—		26
Farmland		345		—		273		—		—		618
Consumer real estate loans
Home equity lines		16,029		25,424		801		—		—		42,254
Single family owner occupied		4,132		1,910		1,390		—		—		7,432
Owner occupied construction		107		—		97		—		—		204
Consumer and other loans
Consumer loans		81		—		—		—		—		81
Total covered loans		33,937		29,334		5,314		—		—		68,585
Total loans	$	1,681,532	$	72,295	$	46,777	$	1,379	$	—	$	1,801,983

	December 31, 2015
(Amounts in thousands)	Pass		Special Mention		Substandard		Doubtful		Loss		Total
Non-covered loans
Commercial loans
Construction, development, and other land	$	46,816	$	974	$	1,106	$	—	$	—	$	48,896
Commercial and industrial		87,223		663		1,017		—		—		88,903
Multi-family residential		81,168		12,969		889		—		—		95,026
Single family non-owner occupied		139,680		3,976		5,695		—		—		149,351
Non-farm, non-residential		454,906		15,170		15,384		—		—		485,460
Agricultural		2,886		25		—		—		—		2,911
Farmland		25,855		1,427		258		—		—		27,540
Consumer real estate loans
Home equity lines		104,897		1,083		1,387		—		—		107,367
Single family owner occupied		468,155		6,686		20,368		—		—		495,209
Owner occupied construction		42,783		—		722		—		—		43,505
Consumer and other loans
Consumer loans		71,685		61		254		—		—		72,000
Other		7,338		—		—		—		—		7,338
Total non-covered loans		1,533,392		43,034		47,080		—		—		1,623,506
Covered loans
Commercial loans
Construction, development, and other land		3,908		1,261		1,134		—		—		6,303
Commercial and industrial		1,144		4		22		—		—		1,170
Multi-family residential		460		—		180		—		—		640
Single family non-owner occupied		1,808		457		409		—		—		2,674
Non-farm, non-residential		9,192		2,044		2,829		—		—		14,065
Agricultural		34		—		—		—		—		34
Farmland		364		—		279		—		—		643
Consumer real estate loans
Home equity lines		17,893		29,823		849		—		—		48,565
Single family owner occupied		5,102		1,963		1,530		—		—		8,595
Owner occupied construction		112		51		99		—		—		262
Consumer and other loans
Consumer loans		84		—		—		—		—		84
Total covered loans		40,101		35,603		7,331		—		—		83,035
Total loans	$	1,573,493	$	78,637	$	54,411	$	—	$	—	$	1,706,541

Recorded Investment Unpaid Principal Balance and Related Information for Impaired Loans Excluding Purchased Credit Impaired Loans

The following table presents the recorded investment, unpaid principal balance, and related allowance for loan losses for impaired loans, excluding PCI loans, as of the periods indicated:

	June 30, 2016						December 31, 2015
(Amounts in thousands)	Recorded Investment		Unpaid Principal Balance		Related Allowance		Recorded Investment		Unpaid Principal Balance		Related Allowance
Impaired loans with no related allowance
Commercial loans
Single family non-owner occupied	$	457	$	457	$	—	$	782	$	783	$	—
Non-farm, non-residential		4,747		4,747		—		8,427		8,427		—
Consumer real estate loans
Single family owner occupied		724		766		—		1,975		2,067		—
Owner occupied construction		343		353		—		—		—		—
Total impaired loans with no allowance		6,271		6,323		—		11,184		11,277		—
Impaired loans with a related allowance
Commercial loans
Single family non-owner occupied		678		680		108		619		623		124
Non-farm, non-residential		5,300		5,319		1,518		5,667		5,673		1,568
Consumer real estate loans
Single family owner occupied		4,549		4,593		760		4,899		4,907		672
Owner occupied construction		—		—		—		349		355		7
Total impaired loans with an allowance		10,527		10,592		2,386		11,534		11,558		2,371
Total impaired loans	$	16,798	$	16,915	$	2,386	$	22,718	$	22,835	$	2,371

Average Annual Recorded Investment and Interest Income Recognized on Impaired Loans Excluding Purchased Credit Impaired Loans

The following table presents the average recorded investment and interest income recognized on impaired loans, excluding PCI loans, for the periods indicated:

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
(Amounts in thousands)	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
Impaired loans with no related allowance
Commercial loans
Single family non-owner occupied	$	456	$	7	$	463	$	7	$	617	$	15	$	461	$	16
Non-farm, non-residential		4,757		52		8,831		63		6,374		121		8,812		146
Consumer real estate loans
Single family owner occupied		726		—		2,741		16		665		—		3,190		34
Owner occupied construction		343		—		352		5		171		—		176		5
Total impaired loans with no allowance		6,282		59		12,387		91		7,827		136		12,639		201
Impaired loans with a related allowance
Commercial loans
Single family non-owner occupied		677		6		684		10		517		13		523		17
Non-farm, non-residential		5,307		82		4,738		96		5,333		170		4,401		174
Consumer real estate loans
Single family owner occupied		4,550		29		2,754		21		4,755		67		2,564		39
Owner occupied construction		—		—		—		—		173		—		—		—
Total impaired loans with an allowance		10,534		117		8,176		127		10,778		250		7,488		230
Total impaired loans	$	16,816	$	176	$	20,563	$	218	$	18,605	$	386	$	20,127	$	431

Information on Impaired PCI Loan Pools

The following tables present information on impaired PCI loan pools as of the dates, and for the periods, indicated:

(Amounts in thousands, except impaired pools)	June 30, 2016		December 31, 2015
Unpaid principal balance	$	1,120	$	3,759
Recorded investment		1,122		2,834
Allowance for loan losses related to PCI loan pools		12		54
Impaired PCI loan pools		1		2

	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2016		2015		2016		2015
Interest income recognized	$	35	$	87	$	118	$	177
Average recorded investment		2,666		3,462		2,728		3,677

Nonaccrual Loans by Loan Class

The following table presents nonaccrual loans, by loan class, as of the dates indicated:

	June 30, 2016						December 31, 2015
(Amounts in thousands)	Non-covered		Covered		Total		Non-covered		Covered		Total
Commercial loans
Construction, development, and other land	$	19	$	20	$	39	$	39	$	54	$	93
Commercial and industrial		227		15		242		—		16		16
Multi-family residential		65		—		65		84		—		84
Single family non-owner occupied		1,172		27		1,199		1,850		29		1,879
Non-farm, non-residential		6,554		37		6,591		7,150		39		7,189
Farmland		141		—		141		234		—		234
Consumer real estate loans
Home equity lines		853		383		1,236		825		413		1,238
Single family owner occupied		7,202		198		7,400		7,245		96		7,341
Owner occupied construction		343		—		343		349		—		349
Consumer and other loans
Consumer loans		50		—		50		71		—		71
Total nonaccrual loans	$	16,626	$	680	$	17,306	$	17,847	$	647	$	18,494

Aging of Past Due Loans by Loan Class

The following tables present the aging of past due loans, by loan class, as of the dates indicated. Nonaccrual loans 30 days or more past due are included in the applicable delinquency category. Loans acquired with credit deterioration, with a discount, continue to accrue interest based on expected cash flows; therefore, PCI loans are not generally considered nonaccrual. Non-covered accruing loans contractually past due 90 days or more totaled $64 thousand as of June 30, 2016. No non-covered accruing loans were contractually past due 90 days or more as of December 31, 2015.

	June 30, 2016
(Amounts in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		90+ Days Past Due		Total Past Due		Current Loans		Total Loans
Non-covered loans
Commercial loans
Construction, development, and other land	$	39	$	15	$	—	$	54	$	58,917	$	58,971
Commercial and industrial		303		79		135		517		92,274		92,791
Multi-family residential		297		—		65		362		109,289		109,651
Single family non-owner occupied		460		202		996		1,658		151,650		153,308
Non-farm, non-residential		723		263		2,311		3,297		546,474		549,771
Agricultural		—		—		—		—		4,421		4,421
Farmland		92		69		—		161		27,354		27,515
Consumer real estate loans
Home equity lines		380		186		706		1,272		105,245		106,517
Single family owner occupied		2,406		1,436		3,485		7,327		496,730		504,057
Owner occupied construction		556		—		—		556		42,630		43,186
Consumer and other loans
Consumer loans		407		58		22		487		75,216		75,703
Other		—		—		—		—		7,507		7,507
Total non-covered loans		5,663		2,308		7,720		15,691		1,717,707		1,733,398
Covered loans
Commercial loans
Construction, development, and other land		46		41		20		107		5,380		5,487
Commercial and industrial		—		—		—		—		973		973
Multi-family residential		—		—		—		—		74		74
Single family non-owner occupied		27		—		—		27		1,839		1,866
Non-farm, non-residential		—		—		—		—		9,570		9,570
Agricultural		—		—		—		—		26		26
Farmland		—		—		—		—		618		618
Consumer real estate loans
Home equity lines		116		69		210		395		41,859		42,254
Single family owner occupied		81		40		75		196		7,236		7,432
Owner occupied construction		—		—		—		—		204		204
Consumer and other loans
Consumer loans		—		—		—		—		81		81
Total covered loans		270		150		305		725		67,860		68,585
Total loans	$	5,933	$	2,458	$	8,025	$	16,416	$	1,785,567	$	1,801,983

	December 31, 2015
(Amounts in thousands)	30 - 59 Days Past Due		60 - 89 Days Past Due		90+ Days Past Due		Total Past Due		Current Loans		Total Loans
Non-covered loans
Commercial loans
Construction, development, and other land	$	—	$	—	$	39	$	39	$	48,857	$	48,896
Commercial and industrial		281		66		—		347		88,556		88,903
Multi-family residential		302		76		84		462		94,564		95,026
Single family non-owner occupied		748		120		929		1,797		147,554		149,351
Non-farm, non-residential		347		676		4,940		5,963		479,497		485,460
Agricultural		—		—		—		—		2,911		2,911
Farmland		585		11		234		830		26,710		27,540
Consumer real estate loans
Home equity lines		668		195		468		1,331		106,036		107,367
Single family owner occupied		6,122		1,943		3,191		11,256		483,953		495,209
Owner occupied construction		—		—		—		—		43,505		43,505
Consumer and other loans
Consumer loans		278		71		23		372		71,628		72,000
Other		—		—		—		—		7,338		7,338
Total non-covered loans		9,331		3,158		9,908		22,397		1,601,109		1,623,506
Covered loans
Commercial loans
Construction, development, and other land		96		—		42		138		6,165		6,303
Commercial and industrial		—		—		16		16		1,154		1,170
Multi-family residential		—		—		—		—		640		640
Single family non-owner occupied		1,422		—		—		1,422		1,252		2,674
Non-farm, non-residential		—		—		39		39		14,026		14,065
Agricultural		—		—		—		—		34		34
Farmland		—		—		—		—		643		643
Consumer real estate loans
Home equity lines		489		37		225		751		47,814		48,565
Single family owner occupied		274		—		42		316		8,279		8,595
Owner occupied construction		—		—		—		—		262		262
Consumer and other loans
Consumer loans		—		—		—		—		84		84
Total covered loans		2,281		37		364		2,682		80,353		83,035
Total loans	$	11,612	$	3,195	$	10,272	$	25,079	$	1,681,462	$	1,706,541

Loans Modified as Troubled Debt Restructurings by Loan Class Segregated by Accrual Status

The following table presents loans modified as TDRs, by loan class, segregated by accrual status, as of the dates indicated:

	June 30, 2016						December 31, 2015
(Amounts in thousands)	Nonaccrual(1)		Accrual		Total		Nonaccrual(1)		Accrual		Total
Commercial loans
Single family non-owner occupied	$	39	$	898	$	937	$	130	$	820	$	950
Non-farm, non-residential		—		4,205		4,205		—		4,600		4,600
Consumer real estate loans
Home equity lines		—		162		162		127		43		170
Single family owner occupied		529		8,173		8,702		733		8,256		8,989
Owner occupied construction		343		239		582		349		243		592
Total TDRs	$	911	$	13,677	$	14,588	$	1,339	$	13,962	$	15,301
Allowance for loan losses related to TDRs					$	544					$	590

(1) Nonaccrual TDRs are included in total nonaccrual loans disclosed in the nonaccrual table above.

Interest Income related to TDRs

The following table presents interest income recognized on TDRs for the periods indicated:

	Three Months Ended June 30,				Six Months Ended June 30,
(Amounts in thousands)	2016		2015		2016		2015
Interest income recognized	$	75	$	160	$	153	$	308

Loans Modified as Troubled Debt Restructurings by Type of Concession Made and Loan Class

The following tables present loans modified as TDRs, by type of concession made and loan class, that were restructured during the periods indicated. The post-modification recorded investment represents the loan balance immediately following modification.

	Three Months Ended June 30,
	2016						2015
(Amounts in thousands)	Total Contracts		Pre-modification Recorded Investment		Post-modification Recorded Investment		Total Contracts		Pre-modification Recorded Investment		Post-modification Recorded Investment
Below market interest rate and extended payment term Single family owner occupied		1	$	115	$	115		1	$	35	$	35
Total		1	$	115	$	115		1	$	35	$	35

	Six Months Ended June 30,
	2016						2015
(Amounts in thousands)	Total Contracts		Pre-modification Recorded Investment		Post-modification Recorded Investment		Total Contracts		Pre-modification Recorded Investment		Post-modification Recorded Investment
Below market interest rate and extended payment term Single family owner occupied		1	$	115	$	115		1	$	35	$	35
Total		1	$	115	$	115		1	$	35	$	35

Loans Modified as Troubled Debt Restructurings by Loan Class for which there was Payment Default

The following table presents loans modified as TDRs, by loan class, that were restructured within the previous 12 months for which there was a payment default during the periods indicated:

	Three Months Ended June 30,
	2016				2015
(Amounts in thousands)	Total Contracts		Post-modification Recorded Investment		Total Contracts		Post-modification Recorded Investment
Consumer real estate loans
Single family owner occupied		—	$	—		1	$	163
Owner occupied construction		—		—		1		353
Total		—	$	—		2	$	516

	Six Months Ended June 30,
	2016				2015
(Amounts in thousands)	Total Contracts		Post-modification Recorded Investment		Total Contracts		Post-modification Recorded Investment
Consumer real estate loans
Single family owner occupied		—	$	—		1	$	163
Owner occupied construction		—		—		1		353
Total		—	$	—		2	$	516

Summary of Information for Other Real Estate Owned

The following table presents information for other real estate owned (“OREO”), which consists of properties acquired through foreclosure, as of the dates indicated:

(Amounts in thousands)	June 30, 2016		December 31, 2015
Non-covered OREO	$	4,187	$	4,873
Covered OREO		2,017		4,034
Total OREO	$	6,204	$	8,907
Non-covered OREO secured by residential real estate	$	1,821	$	2,677
Residential real estate loans in the foreclosure process(1)		2,743		2,727

(1) The recorded investment in consumer mortgage loans collateralized by residential real estate that are in the process of foreclosure according to local requirements of the applicable jurisdiction.